Document:

EXHIBIT
10.6

     

      
        

      

    

     

    AMERICAN
REALTY CAPITAL HEALTHCARE TRUST, INC.

    

    FORM
OF 2011 STOCK OPTION PLAN

    

    Adopted
by Board of
Directors:             ,
2011

    

    Approved
by
Stockholders:             ,
2011

    
       

      
        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    
      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                1.

              	
                Purpose
      of the Plan.

              	
                1

              
	
                2.

              	
                Definitions.

              	
                1

              
	
                3.

              	
                Effective
      Date/Expiration of Plan.

              	
                2

              
	
                4.

              	
                Administration.

              	
                3

              
	
                5.

              	
                Shares;
      Adjustment Upon Certain Events.

              	
                4

              
	
                6.

              	
                Awards
      and Terms of Options.

              	
                6

              
	
                7.

              	
                Effect
      of Termination of Service.

              	
                9

              
	
                8.

              	
                Nontransferability
      of Options.

              	
                10

              
	
                9.

              	
                Rights
      as a Stockholder.

              	
                10

              
	
                10.

              	
                Determinations.

              	
                10

              
	
                11.

              	
                Termination,
      Amendment and Modification.

              	
                10

              
	
                12.

              	
                Non-Exclusivity.

              	
                11

              
	
                13.

              	
                Use
      of Proceeds.

              	
                11

              
	
                14.

              	
                General
      Provisions.

              	
                11

              
	
                15.

              	
                Issuance
      of Stock Certificates; Legends and Payment of Expenses.

              	
                12

              
	
                16.

              	
                Listing
      of Shares and Related Matters.

              	
                13

              
	
                17.

              	
                Governing
      Law.

              	
                13

              

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    AMERICAN
REALTY CAPITAL HEALTHCARE TRUST, INC.

    

    FORM OF
2011 STOCK OPTION PLAN

    

    Adopted
by Board of
Directors:            ,
2011

    

    Approved
by
Stockholders:              ,
2011

    

    1.  Purpose
of the Plan.

    

    The
purpose of this American Realty Capital Healthcare Trust, Inc. 2011 Stock Option
Plan is to enhance the Company’s profitability and value for the benefit of
stockholders to enable the Company to attract, retain and
motivate directors, officers, advisors, consultants and other personnel,
affiliates, personnel of affiliates, and any joint venture affiliates who
are important to the success of the Company and to create and strengthen a
mutuality of interest between the Potential Participants and the stockholders of
the Company by granting such Potential Participants options to
purchase Common Stock of the Company.

    

    2.  Definitions.

    

    (a)  
“Acquisition
Event” means a
merger or consolidation in which the Company is not the surviving entity, or any
transaction that results in the acquisition of all or substantially all of the
Company’s outstanding Common Stock by a single person or entity or by a group of
persons and/or entities in concert, or the sale or transfer of all or
substantially all of the Company’s assets.

    

    (b)  
“Act” means the Securities
Exchange Act of 1934, as amended and the rules and regulations promulgated
thereunder.

    

    (c)  
“Board” means the Board of Directors
of the Company.

    

    (d)  
“Cause” has the meaning set forth in
Section 7(b).

    

    (e)  
“Change of
Control” has the
meaning set for in Section 6(d).

    

    (f)  
“Code” means the Internal Revenue
Code of 1986, as amended.

    

    (g)  
“Committee” means the Board or a
duly appointed committee of the Board to which the Board has delegated its
powers and functions hereunder.

    

    (h)  
“Common
Stock” means the
voting common stock of the Company, par value $.01, any common stock into which
the common stock may be converted and any common stock resulting from any
reclassification of the common stock.

    

    (i)  
“Company” means American Realty
Capital Healthcare Trust, Inc., a Maryland corporation.

    

    (j)  
“Company Voting
Securities” has
the meaning set forth in Section 6(d)(i).

    
      
         

      

      
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    (k)  
“Corporate
Transaction” has
the meaning set forth in Section 6(d)(i).

    

    (l)  
“Disability” means a permanent and total
disability, as determined by the Committee in its sole discretion, provided that
in no event shall any disability that is not permanent and total disability
within the meaning of Section 22(e)(3) of the Code be treated as a
Disability.  A Disability shall be deemed to occur at the time of the
determination by the Committee of the Disability.

    

    (m)  
“Effective
Date” has the
meaning set forth in Section 3.

    

    (n)  
“Fair
Market Value”   means, for purposes of this Plan, unless
otherwise required by any applicable provision of the Code or any regulations
issued thereunder, as of any date and except as provided below, the last sales
price reported for the Common Stock on the applicable date: (i) as reported on
the principal national securities exchange in the United States on which it is
then traded or The NASDAQ Stock Market; or (ii) if not traded on any such
national securities exchange or The NASDAQ Stock Market, as quoted on an
automated quotation system sponsored by FINRA or if the Common Stock shall not
have been reported or quoted on such date, on the first day prior thereto on
which the Common Stock was reported or quoted; provided, that the Committee may
modify the definition of Fair Market Value to reflect any changes in the trading
practices of any exchange on which the Common Stock is listed or
traded.  If the Common Stock is not readily tradable on a national
securities exchange, The NASDAQ Stock Market or any automated quotation system
sponsored by FINRA, its Fair Market Value shall be set in good faith by the
Committee and in a manner that complies with Section 409A of the
Code.  For purposes of the grant of any Option, the applicable date
shall be the date on which the Stock Option is granted.

    

    (o)  
“FINRA” means the Financial Industry
Regulatory Authority, Inc.

    

    (p)  
“Incumbent
Boar” has the
meaning set forth in Section 6(d)(ii).

    

    (q)  
“Option”
means the right to purchase the number of Shares granted in the Option agreement
at a prescribed purchase price on the terms specified in the Plan and the Option
agreement.  No Option awarded under this Plan is intended to be an
“incentive stock option” within the meaning of Section 422 of the
Code.

    

    (r)  
“Participant” means a Potential
Participant who is granted an Option under the Plan, which Option has not
expired or been cancelled.

    

    (s)  
“Person” means an individual, entity
or group within the meaning of Section l3d-3 or 14d-1 of the Act.

    

    (t)  
“Plan” means this American Realty
Capital Healthcare Trust, Inc. 2011 Stock Option Plan, as amended from time to
time.

    

    (u) 
“Potential
Participants”
means the directors, officers, advisors, consultants and other personnel of the
Company, American Realty Capital Healthcare Advisors, LLC (the “Advisor”),
American Realty Capital Healthcare Properties, LLC (the “Property
Manager”), and affiliates, personnel of the Advisor, the Property Manager
and affiliates, and any joint venture affiliates of the Company.

    

    (v)  
“Purchase
Price” means the purchase price per Share.

    

    (w)  
“Securities
Act” means the
Securities Act of 1933, as amended.

    

    (x)  
“Share” means a share of Common
Stock.

    

    (y)  
“Termination of
Service” means
termination of the relationship with the Company so that an individual is no
longer a Potential Participant.

    

    3.  Effective
Date/Expiration of Plan.

    

    The Plan
w ill become effective
on                       ,
2011, subject to the receipt of stockholder approval (the “Effective
Date”).  No Option shall be granted under the Plan on or after
the tenth anniversary of the Effective Date, but Options previously granted may
extend beyond that date.

    
      
         

      

      
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    4.  Administration.

    

    (a)  
Duties of the
Committee.  The Plan shall be administered by the
Committee.  The Committee shall have full authority to interpret the
Plan and to decide any questions and settle all controversies and disputes that
may arise in connection with the Plan; to establish, amend, and rescind rules
for carrying out the Plan, to administer the Plan, subject to its provisions; to
prescribe the form or forms of instruments evidencing Options and any other
instruments required under the Plan (which need not be uniform) and to change
such forms from time to time; and to make all other determinations and to take
all such steps in connection with the Plan and the Options as the Committee, in
its sole discretion, deems necessary or desirable; provided , that all
such determinations shall be in accordance with the express provisions, if any,
contained in the Plan or Option agreement.  The Committee shall not be
bound to any standards of uniformity or similarity of action, interpretation or
conduct in the discharge of its duties hereunder, regardless of the apparent
similarity of the matters coming before it.  The determination, action
or conclusion of the Committee in connection with the foregoing shall be final,
conclusive and binding on all parties.

    

    (b)  
Advisors.  The
Committee may designate the Secretary of the Company, other officers or
employees of the Company or competent professional advisors to assist the
Committee in the administration of the Plan, and may grant authority to such
persons (other than professional advisors) to grant an Option or to execute
Option agreements or other documents on behalf of the Committee, provided that
no Participant may grant an Option or execute any Option agreement granting
Options to such Participant.  The Committee may employ such legal
counsel, consultants and agents as it may deem desirable for the administration
of the Plan, and may rely upon any opinion received from any such counsel or
consultant and any computation received from any such consultant or
agent.  Expenses incurred by the Committee in the engagement of such
counsel, consultant or agent shall be paid by the Company.

    
      
         

      

      
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    (c)  
Indemnification.  To
the maximum extent permitted by law, no officer, member or former officer or
member of the Committee or the Board shall be liable for any action or
determination made in good faith with respect to the Plan or any Option granted
under it.  To the maximum extent permitted by applicable law or the
Certificate of Incorporation or By-Laws of the Company, as may be amended from
time to time, and to the extent not covered by insurance, each officer, member
or former officer or member of the Committee or of the Board shall be
indemnified and held harmless by the Company against any cost or expense
(including reasonable fees of counsel reasonably acceptable to the Company) or
liability (including any sum paid in settlement of a claim with the approval of
the Company), and advanced amounts necessary to pay the foregoing at the
earliest time and to the fullest extent permitted, arising out of any act or
omission to act in connection with the Plan, except to the extent arising out of
such officer’s, member’s or former officer’s or member’s own fraud or bad
faith.  Such indemnification shall be in addition to any rights of
indemnification the officers, members or former officers or members may have as
directors under applicable law or under the Certificate of Incorporation or
By-Laws of the Company or otherwise.

    

    (d)  
Meetings of the
Committee.  The Committee shall select one of its members as a
Chairman and shall adopt such rules and regulations, as it shall deem
appropriate, concerning the holding of its meetings and the transaction of its
business.  Any member of the Committee may be removed at any time
either with or without cause by resolution adopted by the Board, and any vacancy
on the Committee may at any time be filled by resolution adopted by the
Board.  All determinations by the Committee shall be made by the
affirmative vote of a majority of its members.  Any such determination
may be made at a meeting duly called and held at which a majority of the members
of the Committee were in attendance in person or through telephonic
communication.  Any determination set forth in writing and signed by
all of the members of the Committee shall be as fully effective as if it had
been made by a vote of such members at a meeting duly called and
held.

    

    5.  Shares;
Adjustment Upon Certain Events.

    

    (a)  
Shares to be Delivered;
Fractional Shares.  Shares to be issued under the Plan shall be
made available, at the discretion of the Board, either from authorized but
unissued Shares or from issued Shares reacquired by the Company and held in
treasury.  No fractional Shares will be issued or transferred upon the
exercise of any Option.  In lieu thereof, the Company shall pay a cash
adjustment equal to the same fraction of the Fair Market Value of one Share on
the date of exercise.

    

    (b)  
Number of Shares.
Subject to adjustment as provided in this Section 5, the maximum aggregate
number of Shares authorized for issuance under the Plan shall be 500,000
Shares.  If an Option is for any reason canceled, or expires or
terminates unexercised, the Shares covered by such Option shall again be
available for the grant of Options, within the limits provided by the preceding
sentence.  In addition, if Common Stock has been exchanged by a
Participant as full or partial payment to the Company of the Purchase Price or
if the number of shares of Common Stock otherwise deliverable has been reduced
for full or partial payment to the Company of the Purchase Price, the number of
shares of Common Stock exchanged or reduced shall again be available under the
Plan.

    

    (c)  
Adjustments; Recapitalization,
etc.   The existence of the Plan and the Options granted
hereunder shall not affect in any way the right or power of the Board or the
stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company’s capital
structure or its business, any merger or consolidation of the Company, any issue
of bonds, debentures, preferred or prior preference stocks ahead of or affecting
Common Stock, the dissolution or liquidation of the Company or any sale or
transfer of all or part of its assets or business or any other corporate act or
proceeding.  If and whenever the Company takes any such action,
however, the following provisions, to the extent applicable, shall
govern:

    
      
         

      

      
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    (i)  If
and whenever the Company shall effect a stock split, reverse stock split, stock
dividend, subdivision, recapitalization or combination of Shares or other
changes in the Company’s Common Stock, (x) the Purchase Price per Share and the
number and class of Shares and/or other securities with respect to which
outstanding Options thereafter may be exercised, and (y) the total number and
class of Shares and/or other securities that may be issued under this Plan,
shall be appropriately adjusted by the Committee.  The Committee may
also make such other adjustments as it deems necessary to take into
consideration any other event (including, without limitation, accounting
changes) if the Committee determines that such adjustment is appropriate to
avoid distortion in the operation of the Plan.

    

    (ii)  Subject
to Section 5(c)(iii), if the Company merges or consolidates with one or more
corporations, then from and after the effective date of such merger or
consolidation, upon exercise of an Option theretofore granted, the Participant
shall be entitled to purchase under such Option, in lieu of the number of Shares
as to which such Option shall then be exercisable but on the same terms and
conditions of exercise set forth in such Option, the number and class of Shares
and/or other securities or property (including cash) to which the Participant
would have been entitled pursuant to the terms of the agreement of merger or
consolidation if, immediately prior to such merger or consolidation, the
Participant had been the holder of record of the total number of Shares
receivable upon exercise of such Option (whether or not then
exercisable).  In connection with any event described in this Section
5(c)(ii), the Committee may provide, in its sole discretion, for the
cancellation of any outstanding Options and payment in cash or other property in
exchange therefor.

    

    (iii)  In
the event of an Acquisition Event, the Committee may, in its discretion, and
without any liability to any Participant, terminate all outstanding Options as
of the consummation of the Acquisition Event by delivering notice of termination
to each Participant at least 20 days prior to the date of consummation of the
Acquisition Event; provided, however, that, during the period from the date
on which such notice of termination is delivered to the consummation of the
Acquisition Event, each Participant shall have the right to exercise in full all
the Options that are then outstanding (without regard to limitations on exercise
otherwise contained in the Options), but any such exercise shall be contingent
upon and subject to the occurrence of the Acquisition Event; provided,
however, that if the Acquisition Event does not take place within a
specified period after giving such notice for any reason whatsoever, the notice
and exercise pursuant thereto shall be null and void.  If the
Acquisition Event does take place after giving such notice, any Option not
exercised prior to the date of the consummation of such Acquisition Event shall
be forfeited simultaneous with the consummation of the Acquisition
Event.  If an Acquisition Event occurs and the Committee does not
terminate the outstanding Options pursuant to the foregoing provisions, then the
provisions of Section 5(c)(ii) shall apply.

    
      
         

      

      
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    (iv)  If,
as a result of any adjustment made pursuant to the preceding paragraphs of this
Section 5, any Participant shall become entitled upon exercise of an Option to
receive any securities other than Common Stock, then the number and class of
securities so receivable thereafter shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock set forth in this Section 5, as
determined by the Committee in its discretion.

    

    (v)  Except
as hereinbefore expressly provided, the issuance by the Company of shares of
stock of any class, or securities convertible or exercisable into shares of
stock of any class, for cash, property, labor or services, upon direct sale,
upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or other securities, and in any case whether or not for
fair value, shall not affect, and no adjustment by reason thereof shall be made
with respect to the number and class of Shares and/or other securities or
property subject to Options theretofore granted or the Purchase Price per Share.
Notwithstanding anything else herein, the Committee:  (A) shall not
make any adjustments to any Awards that would cause an Award to be subject to
Section 409A of the Code without the consent of the affected Participant; and
(B) shall adjust any Award that is subject to Code Section 409A only in a manner
that is in compliance with the requirements of Code Section 409A.

    

    6.  Awards
and Terms of Options.

    

    (a)  
Grant.  All
Options issued hereunder shall be issued in accordance with Section V.K.6. of
the Statement of Policy Regarding Real Estate Investment Trusts, as revised and
adopted by NASAA membership on May 7, 2007.

    

    (b)  
Purchase
Price.  The Purchase Price deliverable upon the exercise of an
Option shall equal 100% of the Fair Market Value on the last business day
preceding the Annual Date of Grant.  Notwithstanding the foregoing,
but subject to Section 6(a), the Purchase Price for all Options granted under
the Plan before the termination of the Company’s initial public offering will be
$10 per Share.

    

    (c)  
Exercisability.  
Except as otherwise provided herein, any Option granted to a Participant shall
vest and become exercisable on the second anniversary of the date of grant,
subject to the Participant’s continued service a s a Potential Participant
through such date.  No Option shall be exercisable after the
expiration of ten (10) years from the date of grant.

    

    (d)  
Acceleration of Exercisability
on Change of Control.   Except as otherwise provided in the
Participant's Option agreement, all  Options granted and not
previously exercisable shall become exercisable immediately upon a Change of
Control (as defined herein).  For this purpose, a “Change of Control”
shall be deemed to have occurred upon:

    

    (i)  an
acquisition by any Person of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Act) of 33% or more of either (A) the then
outstanding Shares or (B) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
directors (the “Company Voting
Securities” );
excluding, however, the following: (w) any acquisition directly from the
Company, other than an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly
from the Company; (x) any acquisition by the Company; (y) any acquisition by an
employee benefit plan (or related trust) sponsored or maintained by the Company;
or (z) any acquisition by any entity pursuant to a reorganization, merger,
consolidation or similar corporate transaction (in each case, a “Corporate
Transaction” ),
if, pursuant to such Corporate Transaction, the conditions described in clauses
(A), (B) and (C) of paragraph (iii) of this Section are satisfied;
or

    
      
         

      

      
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    (ii)  a
change in the composition of the Board such that the individuals who, as of the
Effective Date hereof, constitute the Board (the Board as of the date hereof
shall be hereinafter referred to as the “Incumbent
Board” ) cease
for any reason to constitute at least a majority of the Board; provided that for
purposes of this subsection any individual who becomes a member of the Board
subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of those
individuals who are members of the Board and who are also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be
considered as though such individual were a member of the Incumbent Board; but,
provided further, that any such individual whose initial assumption of office
occurs as a result of either an actual or threatened election contest (as such
terms are used in Rule 14a-11 of Regulation 14A promulgated under the Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board shall not be so considered as a member of the
Incumbent Board; or

    

    (iii)  the
approval by the stockholders of the Company of a Corporate Transaction or, if
consummation of such Corporate Transaction is subject, at the time of such
approval by stockholders, to the consent of any government or governmental
agency, the obtaining of such consent (either explicitly or implicitly by
consummation); excluding, however, such a Corporate Transaction pursuant to
which (A) all or substantially all of the individuals and entities who are the
beneficial owners, respectively, of the outstanding Shares and Company Voting
Securities immediately prior to such Corporate Transaction will beneficially
own, directly or indirectly, more than 60% of, respectively, the outstanding
shares of common stock of the entity resulting from such Corporate Transaction
and the combined voting power of the outstanding voting securities of such
entity entitled to vote generally in the election of directors, in substantially
the same proportions as their ownership, immediately prior to such Corporate
Transaction, of the outstanding Shares and Company Voting Securities, as the
case may be, (B) no Person (other than the Company, any employee benefit plan
(or related trust) of the Company or the entity resulting from such Corporate
Transaction and any Person beneficially owning, immediately prior to such
Corporate Transaction, directly or indirectly, 33% or more of the outstanding
Shares or Company Voting Securities, as the case may be) will beneficially own,
directly or indirectly, 33% or more of, respectively, the outstanding shares of
Common Stock of the entity resulting from such Corporate Transaction or the
combined voting power of the then outstanding securities of such entity entitled
to vote generally in the election of directors, and (C) individuals who were
members of the Incumbent Board will constitute at least a majority of the
members of the board of directors of the corporation resulting from such
Corporate Transaction; notwithstanding the foregoing, no Change of Control will
occur if two-thirds (2/3rds) of the Incumbent Board approves the Corporate
Transaction; or

    
      
         

      

      
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    (iv)  the
approval of the stockholders of the Company of (A) a complete liquidation or
dissolution of the Company, or (B) the sale or other disposition of all or
substantially all of the assets of the Company; excluding; however, such a sale
or other disposition to a entity with respect to which, following such sale or
other disposition, (x) more than 60% of, respectively, the then outstanding
shares of common stock of such entity and the combined voting power of the then
outstanding voting securities of such entity entitled to vote generally in the
election of directors will be then beneficially owned, directly or indirectly,
by all or substantially all of the individuals and entities who were the
beneficial owners respectively, of the outstanding Shares and Company Voting
Securities immediately prior to such sale or other disposition in substantially
the same proportion as their ownership, immediately prior to such sale or other
disposition, of the outstanding Shares and Company Voting Securities, as the
case may be, (y) no Person (other than the Company and any employee benefit plan
(or related trust) of the Company or such entity and any Person beneficially
owning, immediately prior to such sale or other disposition, directly or
indirectly, 33% or more of the outstanding Shares or Company Voting Securities,
as the case may be) will beneficially own, directly or indirectly, 33% or more
of, respectively, the then outstanding shares of common stock of such entity and
the combined voting power of the then outstanding voting securities of such
entity entitled to vote generally in the election of directors, and (z)
individuals who were members of the Incumbent Board will constitute at least a
majority of the members of the board of directors of such entity.

    

    (e)  
Exercise of
Options.

    

    (i)  A
Participant may elect to exercise an Option by giving written notice to the
Committee of such election and of the number of Shares such Participant has
elected to purchase pursuant to the Option, accompanied by payment in full of
the aggregate Purchase Price for the number of Shares for which the Option is
being exercised.

    

    (ii)  Shares
purchased pursuant to the exercise of an Option shall be paid for at the time of
exercise as follows:

    

    (A)  in
cash or by check, bank draft or money order payable to the order of the
Company;

    

    (B)  if
so permitted by the Committee: (x) through the delivery of unencumbered Shares
(including Shares being acquired pursuant to the Option then being exercised),
provided such Shares (or such Option) have been owned by the Participant for
such period as may be required by applicable accounting standards to avoid a
charge to earnings; or (y) through a combination of Shares and cash as provided
above, provided, that, if the Shares delivered upon exercise of the Option is an
original issue of authorized Shares, at least so much of the Purchase Price as
represents the par value of such Shares shall be paid in cash or by a
combination of cash and Shares;

    

    (C) to
the extent permitted by applicable law, if the Common Stock is traded on a
national securities exchange, the NASDAQ Stock Market or quoted on a national
quotation system sponsored by FINRA, through the delivery of irrevocable
instructions to a broker to deliver promptly to the Company an amount equal to
the aggregate Purchase Price; or

    
      
         

      

      
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    (D)  on
such other terms and conditions as may be acceptable to the Committee and in
accordance with applicable law.  The Company will not issue shares in
certificated form.  The Company's transfer agent maintains a stock
ledger that contains the name and address of each stockholder and the number of
shares that the stockholder holds.  The Company shall provide the
Participant, pursuant to the Company's Articles of Amendment and Restatement,
with a notice containing information about the Shares purchased, in lieu of
issuance of a share certificate.

    

    (iii)  
REIT Status.
  Notwithstanding anything herein to the contrary, no Option granted
under this Plan may be exercised if such exercise would jeopardize the Company’s
status as a “real estate investment trust” as defined under the
Code.

    

    7.  Effect
of Termination of Service.

    

    (a)  
Death, Disability, or
Retirement. Except as otherwise provided in the Participant’s Option
agreement or in this Plan, upon a Termination of Service, all outstanding
Options then exercisable and not exercised by the Participant prior to such
Termination of Service shall remain exercisable by the Participant to the extent
not theretofore exercised for the following time periods (subject to Section
6(c)):

    

    (i)  in
the event of the Participant’s death, such Options shall remain exercisable (by
the Participant’s estate or by the person given authority to exercise such
Options by the Participant’s will or by operation of law) for a period of one
(1) year from the date of the Participant’s death; and

    

    (ii)  in
the event the Participant retires at or after age 65 (or, with the consent of
the Committee, before age 65), or, if the Participant’s services terminate due
to Disability, such Options shall remain exercisable for one (1) year from the
date of the Participant’s Termination of Service.

    

    (b)  
Cause.  Upon
the Termination of Service of a Participant for Cause (as defined herein) or if
it is discovered after a Termination of Service that such Participant had
engaged in conduct that would have justified a Termination of Service for Cause,
all outstanding Options (whether vested or unvested) shall immediately be
canceled, provided that upon any such termination the Committee may, in its
discretion, require the Participant to promptly pay to the Company (and the
Company shall have the right to recover) any gain the Participant realized as a
result of the exercise of any Option that occurred within one (1) year prior to
such Termination of Service or the discovery of conduct that would have
justified a Termination of Service for Cause.  Termination of Service
shall be deemed to be for “Cause” for purposes of this Section 7(b) if the
Participant shall have committed fraud or any felony in connection with the
Participant’s duties as a director of the Company or willful misconduct or any
act of disloyalty, dishonesty, fraud or breach of trust, confidentiality or
fiduciary duties as to the Company or the commission of any other act which
causes or may reasonably be expected to cause economic or reputational injury to
the Company or any other act or failure to act that constitutes “cause” for
removal of a director under applicable Maryland law.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (c)  
Other
Termination.  In the event of a Termination of Service for any
reason other than as provided in Sections 7(a) and 7(b), except as otherwise
provided in the Participant's Option agreement, all outstanding
Options then exercisable and not exercised by the Participant prior to such
Termination of Service shall remain exercisable (to the extent exercisable by
such Participant immediately before such termination) for a period of three (3)
months after such termination, but not beyond the original stated term of the
Option.

    

    8.  Nontransferability
of Options.

    

    No Option
shall be transferable by the Participant otherwise than by will or under
applicable laws of descent and distribution, and during the lifetime of the
holder may be exercised only by the holder or his or her guardian or legal
representative.  In addition, no Option shall be assigned, negotiated,
pledged or hypothecated in any way (whether by operation of law or otherwise),
and no Option shall be subject to execution, attachment or similar
process.  Upon any attempt to transfer, assign, negotiate, pledge or
hypothecate any Option, or in the event of any levy upon any Option by reason of
any execution, attachment or similar process contrary to the provisions hereof,
such Option shall immediately be cancelled.  Notwithstanding the
foregoing, the Committee may determine at the time of grant or thereafter, that
an Option that is otherwise non transferable is transferable in whole or in part
and in such circumstances, and under such conditions, as specified by the
Committee.

    

    9.  Rights
as a Stockholder.

    

    A holder
of an Option shall have no rights as a stockholder with respect to any Shares
covered by such holder’s Option until such holder shall have become the holder
of record of such Shares, and no adjustments shall be made for dividends in cash
or other property or distributions or other rights in respect to any such
Shares, except as otherwise specifically provided for in this Plan.

    

    10.  Determinations.

    

    Each
determination, interpretation or other action made or taken pursuant to the
provisions of this Plan by the Committee shall be final, conclusive and binding
for all purposes and upon all persons, including, without limitation, the
holders of any Options and the Potential Participants and their respective
heirs, executors, administrators, personal representatives and other successors
in interest.

    

    11.  Termination,
Amendment and Modification.

    

    Notwithstanding
any other provision of this Plan, the Board or the Committee may at any time,
and from time to time, amend, in whole or in part, any or all of the provisions
of this Plan, or suspend or terminate it entirely, retroactively or otherwise;
provided, however, that, unless otherwise required by law or specifically
provided herein, the rights of a Participant with respect to Options granted
prior to such amendment, suspension or termination, may not be impaired without
the consent of such Participant; provided further, that no amendment may be made
without stockholder approval if stockholder approval is required under
applicable law.

    

    The
Committee may amend the terms of any Option theretofore granted, prospectively
or retroactively, but, subject to Section 5 or as otherwise specifically
provided herein, no such amendment or other action by the Committee shall impair
the rights of any holder without the holder’s consent.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    12.  Non-Exclusivity.

    

    Neither
the adoption of the Plan by the Board shall be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements
as it may deem desirable, including, without limitation, the granting or
issuance of Options, Shares and/or other incentives otherwise than under the
Plan, and such arrangements may be either generally applicable or limited in
application.

    

    13.  Use
of Proceeds.

    

    The
proceeds of the sale of Shares subject to Options under the Plan are to be added
to the general funds of the Company and used for its general corporate purposes
as the Board shall determine.

    

    14.  General
Provisions.

    

    (a)  
Right to Terminate
Services.  Neither the adoption of the Plan nor the grant of
Options shall impose any obligations on the Company to retain any Participant as
a director nor shall it impose any obligation on the part of any Participant to
remain a director.

    

    (b)  
Purchase for
Investment.   If the Board determines that the law so requires,
the holder of an Option granted hereunder shall, upon any exercise or conversion
thereof, execute and deliver to the Company a written statement, in form
satisfactory to the Company, representing and warranting that such Participant
is purchasing or accepting the Shares then acquired for such Participant’s own
account and not with a view to the resale or distribution thereof, that any
subsequent offer for sale or sale of any such Shares shall be made either
pursuant to (i) a registration statement on in appropriate form under the
Securities Act, which registration statement shall have become effective and
shall be current with respect to the Shares being offered and sold, or (ii) a
specific exemption from the registration requirements of the Securities Act, and
that in claiming such exemption the holder will, prior to any offer for sale or
sale of such Shares, obtain a favorable written opinion, satisfactory in form
and substance to the Company, from counsel approved by the Company as to the
availability of such exception.

    

    (c)  
Trusts,
etc.   Nothing contained in the Plan and no action taken
pursuant to the Plan (including, without limitation, the grant of any Option
thereunder) shall create or be construed to create a trust of any kind, or a
fiduciary relationship, between the Company and any Participant or the executor,
administrator or other personal representative or designated beneficiary of such
Participant, or any other persons.  Any reserves that may be
established by the Company in connection with the Plan shall continue to be part
of the general funds of the Company, and no individual or entity other than the
Company shall have any interest in such funds until paid to a
Participant.  If and to the extent that any Participant or such
Participant’s executor, administrator, or other personal representative, as the
case may be, acquires a right to receive any payment from the Company pursuant
to the Plan, such right shall be no greater than the right of an unsecured
general creditor of the Company.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (d)  
Notices. Each
Participant shall be responsible for furnishing the Committee with the current
and proper address for the mailing to such Participant of notices and the
delivery to such Participant of agreements, Shares and payments.  Any
notices required or permitted to be given shall be deemed given if directed to
the person to whom addressed at such address and mailed by regular United States
mail, first class and prepaid.  If any item mailed to such address is
returned as undeliverable to the addressee, mailing will be suspended until the
Participant furnishes the proper address.

    

    (e)  
Severability of
Provisions .  If any provisions of the Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provisions of the Plan, and the Plan shall be construed and enforced
as if such provisions had not been included.

    

    (f)  
Payment to Minors,
Etc.   Any benefit payable to or for the benefit of a minor, an
incompetent person or other person incapable of receipting therefor shall be
deemed paid when paid to such person’s guardian or to the party providing or
reasonably appearing to provide for the care of such person, and such payment
shall fully discharge the Committee, the Company and their employees, agents and
representatives with respect thereto.

    

    (g)  
Readings and
Captions.  The headings and captions herein are provided for
reference and convenience only.  They shall not be considered part of
the Plan and shall not be employed in the construction of the Plan.

    

    (h)  
Other
Benefits.  No award under this Plan shall be deemed
compensation for purposes of computing benefits under any retirement plan of the
Company or its subsidiaries nor affect any benefits under any other benefit plan
now or subsequently in effect under which the availability or amount of benefits
is related to the level of compensation.

    

    (i)  
409A.  To the
extent applicable, the Plan is intended to comply with the applicable
requirements of Section 409A of the Code and shall be limited, construed and
interpreted in a manner so as to comply therewith.  To the extent that
any Option is subject to Section 409A of the Code, it shall be paid in a manner
that will comply with Section 409A of the Code, including proposed, temporary or
final regulations or any other guidance issued by the Secretary of the Treasury
and the Internal Revenue Service with respect thereto.

    

    15.  Issuance
of Stock Certificates; Legends and Payment of Expenses.

    

    (a)  
Uncertificated
Shares.  Upon any exercise of an Option and payment of the
exercise price as provided in such Option, Shares as to which such Option has
been exercised shall be issued by the Company in the name of the person or
persons exercising such Option along with a notice to the Participant containing
information about the Shares purchased, in lieu of issuance of a share
certificate, and the Company's transfer agent maintains a stock ledger that
contains the name and address of each stockholder and the number of shares that
the stockholder holds.  The Company will not issue shares in
certificated form.

    

    (b)  
Legends. Certificates
for Shares issued upon exercise of an Option shall bear such legend or legends
as the Committee, in its discretion, determines to be necessary or appropriate
to prevent a violation of, or to perfect an exemption from, the registration
requirements of the Securities Act or to implement the provisions of any
agreements between the Company and the Participant with respect to such
Shares.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (c)  
Payment of
Expenses.  The Company shall pay all issue or transfer taxes
with respect to the issuance or transfer of Shares, as well as all fees and
expenses necessarily incurred by the Company in connection with such issuance or
transfer and with the administration of the Plan.

    

    (d)  
Section 16(b) of the
Act. All elections and transactions under the Plan by persons subject to
Section 16 of the Act involving Shares are intended to comply with any
applicable condition under Rule 16b-3, provided, however, noncompliance with the
requirements of Rule 16b-3 shall not affect the validity of an Option granted
under this Plan.  To the extent any provision of the Plan or action by
the Committee fails to so comply, it shall be deemed null and
void.  The Committee may establish and adopt written administrative
guidelines, designed to facilitate compliance with Section 16(b) of the Act, as
it may deem necessary or proper for the administration and operation of the Plan
and the transaction of business thereunder.

    

    16.  Listing
of Shares and Related Matters.

    

    If at any
time the Board shall determine in its sole discretion that the listing,
registration or qualification of the Shares covered by the Plan upon any
national securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory body, is necessary or desirable as a
condition of, or in connection with the award or sale of Shares under the Plan,
no Shares will be delivered unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained, or
otherwise provided for, free of any conditions not acceptable to the
Board.

    

    17.  Governing
Law.

    

    This Plan
shall be governed and construed in accordance with the laws of the State of
Maryland (regardless of the law that might otherwise govern under applicable
principles of conflict of laws).

    
      
         

      

      
        13Unassociated Document

    Exhibit
10.1

     

    Employment
Agreement

     

    This
Employment Agreement (this “Agreement”) is made
and entered into on January 11, 2011, by and between BRE Properties, Inc., a
Maryland corporation (the “Company”), and Scott
A. Reinert, an individual (“Executive”) and
memorializes the terms and conditions of Executive’s employment by the Company
from and after January 24, 2011 (the “Effective
Date”).

     

    Agreement

     

    In
consideration of the mutual covenants set forth in this Agreement, the parties
agree as follows:

     

    1.    Term.  Executive
shall be employed at will by the Company commencing on the Effective Date and
continuing thereafter until terminated (the “Term”).  Executive’s
at-will status means that the Executive may terminate his employment at any
time, with or without reason, subject only to the notice provisions set forth in
Sections 7.1 and 8.2(b), and that the Company may terminate Executive at any
time, with or without reason, subject only to the notice provision in Section
7.3.  The Compensation Upon Termination provisions in Section 8 do not
alter Executive’s at-will status.

     

    2.    Duties.  The Company
shall employ Executive as its Executive Vice President,
Operations.  The Chief Executive Officer (“CEO”) shall direct and
supervise the employment of Executive and shall determine the powers and duties
incident to the position of Executive Vice President,
Operations.  Executive shall perform his duties as Executive Vice
President, Operations, diligently and to the best of his ability and devote his
full business time and best efforts to the Company.  Executive shall
not, except for incidental management of his personal financial affairs, engage
in any other business, nor shall he serve in any position with or as a
consultant or adviser to any other corporation or entity (including as a member
of such entity’s board of directors or similar governing or advising body),
without the prior written consent of the Board of Directors (“Board”).

     

    3.    Compensation.  During
the Term, Executive shall be entitled to receive compensation in accordance with
this Section 3.

     

    3.1    Base
Salary.  Executive shall receive an annual base salary (“Base Salary”) of
$300,000 commencing as of the Effective Date.  The Board, in its
discretion, may review the Base Salary periodically and adjust the Base Salary
in its sole discretion based on relevant circumstances.  The Base
Salary shall be payable by the Company to Executive in equal installments on the
dates payments of salary are regularly made by the Company to its executive
employees subject to all required tax withholdings.

     

    3.2    Annual Bonus.  In
addition to the Base Salary, Executive shall be eligible to receive an annual
incentive bonus (the “Annual Bonus”)
targeted at 90% of Base Salary (the “Target Bonus”) for
the achievement of the management by objective criteria established by the
Compensation Committee of the Board (the “Committee”) in its
sole discretion (the “MBO
Criteria”).  It is anticipated that, for any given year, the
amount of the Annual Bonus could range from 0% of Target Bonus (in the event of
a failure to achieve any of the MBO Criteria), to 100% of Target Bonus (in the
event of achievement of the MBO Criteria), to between 100% and 200% of Target
Bonus (in the event that a substantial number of the MBO Criteria are
significantly exceeded).  The determination of whether Executive has
achieved or significantly exceeded the MBO Criteria shall be in the Committee’s
sole discretion.  The Committee may in its discretion determine that
the MBO Criteria on balance as a whole have been met notwithstanding the fact
that certain of the MBO Criteria may not have been met if other MBO Criteria are
exceeded.  Except as otherwise specified in this Agreement, Executive
shall earn the Annual Bonus only at the end of each of the Company’s fiscal
years during the Term.  The Annual Bonus, if earned, shall be paid
within two and one-half months after the end of each fiscal year.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    3.3    Long-Term Incentive Awards.
During the Term, Executive shall be eligible to receive long-term
incentive awards at the sole discretion of the Board.  It is
contemplated that such awards will take into account financial, operating, and
other results achieved as well as future long-term performance
goals.  Such awards may be in the form of options, restricted shares
which vest over time or upon satisfaction of performance metrics, SARs, stock
grants, or any other form of long-term compensation, as determined by the Board
in its sole discretion.

     

    3.4    Recoupment.  Executive
understands and agrees that he shall be required to repay to the Company certain
previously paid compensation, whether provided under this Agreement, an
incentive compensation plan, or otherwise, if such repayment is required under
any recoupment of compensation policy that the Company is required to adopt in
order for the Company to comply with applicable laws or regulations or
requirements of the stock exchange(s) upon which the Company's securities are
listed. Any such compensation previously paid to Executive shall not be fully
and finally earned for purposes of federal or state wage and hour laws by
Executive until the applicable recoupment period has expired.  Any
failure by Executive to timely comply with the provisions of this paragraph will
be considered a material breach of this Agreement and will constitute, without
limiting the Company's other recourses or remedies, grounds for the Company to
terminate Executive's employment for Cause.  Such obligation shall
survive the termination of this Agreement and any release given by the Company
to Executive upon Executive’s termination unless such release specifically
provides that this obligation shall be released and no general release contained
in any such release shall waive this obligation.

     

    4.    Life
Insurance.  During the Term, the Company agrees to pay the
premiums on a term life insurance policy covering and for the benefit of
Executive with a face amount equal to 100% of the Base Salary.

     

    5.    Benefits.  During
the Term, Executive shall be entitled to receive such other benefits and to
participate in such benefit plans as are generally provided by the Company to
its executive employees, including parking and profit sharing and insurance
plans.  Executive shall be entitled to four weeks vacation for each
calendar year which shall accrue in accordance with the Company’s standard
policies and procedures.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

    6.    Expenses.  The
Company shall pay or reimburse Executive for all reasonable travel and other
expenses incurred by Executive in performing his duties as Executive Vice
President, Operations of the Company in accordance with the Company’s standard
policies and procedures.

     

    7.    Termination of
Agreement.  The date that Executive’s employment and this
Agreement is terminated is referred to in this Agreement as the “Termination
Date.”

     

    7.1    Termination Due to Death or
Disability; Voluntary Termination.  If at any time during the
Term, Executive shall die, suffer any Disability (as defined below), or
voluntarily terminate his employment with the Company, then, in any such event,
this Agreement shall automatically terminate on the date of death, upon any
Disability or of the Executive’s voluntary termination, as the case may
be.  As used in this Agreement, the term “Disability” shall
mean the inability of Executive to perform his duties for one hundred eighty
(180) consecutive days or for one hundred eighty (180) days in any twelve month
period because of physical or mental illness or incapacity as determined by the
Board.  If Executive shall voluntarily terminate his employment with
the Company, Executive shall provide the Company with at least 30-days’ prior
written notice of such termination, which notice period the Company may elect to
shorten.

     

    7.2    Termination by the Company for Good
Cause.  During the term, the Company may terminate this
Agreement and Executive’s employment at any time for Good Cause.  In
such event, this Agreement shall terminate on such date as shall be specified in
writing by the Company.  As used in this Agreement, the term “Good Cause” shall
mean (i) any act or omission of gross negligence, willful misconduct,
dishonesty, or fraud by Executive in the performance of his duties hereunder or
in material violation of the Company’s employment policies and practices, (ii)
the material failure or refusal of Executive to timely perform the duties or to
render the services reasonably assigned to him from time to time by the Board
(other than failures to perform duties or render services substantially due to
circumstances beyond the control of Executive, including force majeure events), (iii)
Executive’s conviction of or plea of nolo contendere to a crime
which has or reasonably would be expected to have a material adverse impact on
his ability to perform his duties as Executive Vice President, Operations of the
Company, including any crime involving dishonesty or moral turpitude or (iv) the
material breach by Executive of this Agreement or the material breach of
Executive’s fiduciary duty or duty of trust to the Company as reasonably
determined by the Company.

     

    7.3    Termination by the Company Other Than
for Good Cause.  During the Term, the Company may terminate
this Agreement and Executive’s employment for any reason other than for Good
Cause with at least 30-days’ prior written notice.

     

    7.4    Termination by the Company Incident
to a Change in Control.  Any termination of this Agreement and
the Executive's employment by the Company for any reason other than Good Cause,
death, or Disability before a Change in Control (which Change in fact
subsequently occurs), but after (a) the Company enters into an agreement, the
consummation of which would result in the occurrence of a Change in Control, or
(b) the Company or any Person publicly announces an intention to take or to
consider taking actions which, if consummated, would constitute a Change in
Control  shall be deemed conditioned on a Change in Control for
purposes of 8.2(c) below.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    8.    Compensation
upon Termination.

     

    8.1    Termination
Other Than in Connection With a Change in Control.

     

    (a)    In the
event of termination of this Agreement and Executive’s employment pursuant to
Section 7.1 or 7.2, the Company shall not be obligated, from and after the
Termination Date, to provide to Executive, and Executive shall not be entitled
to receive from the Company, any compensation (including any payments of Base
Salary, Annual Bonus, or other awards) or other benefits; except that if
termination pursuant to Section 7.1 is due to death or Disability, Executive or
his estate shall receive, within 90 days after the close of the fiscal year in
which the death or Disability occurred, a lump-sum payment equal to the
estimated Annual Bonus that Executive would have earned for the fiscal year in
question (based on actual performance relative to MBO Criteria for the fiscal
year and Executive’s contribution, in each case up to the date of death or
Disability), calculated on a pro-rated basis to the Termination
Date.  In addition, Executive shall be entitled to the vesting
benefits set forth in any performance stock award agreement or other equity
award agreement whether now in existence or entered into during the term of this
Agreement.

     

    (b)    In the
event of termination of this Agreement and Executive’s employment pursuant to
Section 7.3, the Company shall provide Executive with the following compensation
within 15 days after the Company’s receipt of the release of Executive described
in Section 8.1(c):

     

    (i)   Executive
shall be entitled to a lump-sum payment equal to the estimated Annual Bonus that
Executive would have earned for the fiscal year in question (based on actual
performance relative to MBO Criteria for the fiscal year and Executive’s
contribution, in each case up to the date of termination, calculated on a
pro-rated basis to the Termination Date.

     

    (ii)   Executive
shall be entitled to receive a lump-sum payment from the Company equal to the
sum of:  (1) his final Base Salary and (2) the average of the Annual
Bonuses awarded to Executive for the two fiscal years prior to the year in which
Executive terminates.  If Executive terminates before having been
employed for two full fiscal years, then the lump sum payment shall be equal
to:  (1) the sum of his final  Base Salary and his Target
Bonus if he terminates before his first full fiscal year of employment; or (2)
the sum of his final Base Salary and the amount of the Annual Bonus awarded in
the immediately preceding year if he terminates after his first full fiscal year
of employment but before the end of his second full fiscal year of employment;
and

     

    (iii)   Executive
shall be entitled to the vesting benefits set forth in any performance stock
award agreement or other equity award agreement whether now in existence or
entered into during the term of this Agreement.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

       

    

    (c)    Executive’s
right to receive any of the payments or other compensation to be made to
Executive pursuant to this Section 8.1 shall be contingent on Executive
providing the Company a full and complete release of all known and unknown
claims against the Company and its representatives in the form set forth on
Exhibit A to this Agreement.

     

    8.2    Termination Following a Change in
Control.

     

    (a)    If within
12 months after the effective date of a Change in Control (as defined below)
this Agreement and Executive’s employment is terminated due to Executive’s death
or Disability, then Executive or his estate shall receive, within 90 days after
the close of the fiscal year in which the death or Disability occurred, a
lump-sum payment equal to the average annualized Annual Bonus that Executive
received during the Term pro-rated based on the number of days between the
effective date of the Change in Control and the date of death or
Disability.  If the date of Death or Disability is before the
Executive has been employed for one full fiscal year, then the lump-sum payment
shall be equal to his Target Bonus pro-rated based on the number of days between
the effective date of the Change in Control and the date of Death or
Disability.  In addition, (i) Executive shall be entitled to a
lump-sum payment equal to the estimated Annual Bonus that Executive would have
earned for the fiscal year in question (based on actual performance relative to
MBO Criteria for the fiscal year and Executive’s contribution, in each case up
to the date of termination), calculated on a pro-rated basis to the Termination
Date; and (ii) Executive shall be entitled to the vesting benefits set forth in
any performance stock award agreement or other equity award agreement whether
now in existence or entered into during the term of this Agreement.

     

    (b)    If within
12 months after the effective date of a Change in Control, Executive terminates
his employment with the Continuing Employer without Good Reason (as defined
below), then Executive shall receive the amounts set forth in Section 8.2(a)
and, provided
if Executive gives the Company not less than 90-days’ prior written notice of
such voluntary termination and uses his reasonable efforts to assist the Company
with the necessary transition during the period between the notice of
termination and the termination itself, then the Company shall pay Executive,
within 15 days after the Company’s receipt from Executive of the release
described in Section 8.2(g), a lump-sum payment from the Company equal
to:  (i) if Executive resigns after having been employed through two
full fiscal years, the sum of his final Base Salary and the average Annual Bonus
awarded in the prior two years; (ii) if Executive resigns after having been
employed more then one but less than two full fiscal years, the sum of his final
Base Salary and the Annual Bonus he was awarded in the immediately preceding
year; or (iii) if the Executive resigns before having been employed through one
full fiscal year, the sum of his final Base Salary and his Target
Bonus.  As used in this Agreement, the term “Good Reason” means
(i) a material reduction in Executive’s target pay, duties, responsibilities, or
authority of Executive immediately prior to such Change in Control, without
Executive’s consent, or (ii) the relocation of Executive, without Executive’s
consent, to a location more than 50 miles from the Executive’s work
location as of the Termination Date, provided in each case
that, within 20 business days of the event set forth in (i) or (ii), Executive
presents the Company or the Continuing Employer, as the case may be, with at
least 30-days’ prior written notice of his termination of employment stating
that such termination was for a reason set forth in (i) or (ii) and the Company
or the Continuing Employer, as the case may be, did not cure such material
reduction or relocation within 10 business days thereafter.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

    (c)    If within
12 months after the effective date of a Change in Control, Executive terminates
his employment with the Continuing Employer for Good Reason or the Continuing
Employer terminates this Agreement and Executive’s employment without Good
Cause, then the Continuing Employer shall provide Executive with the following
compensation within 15 days after the Company’s receipt from Executive of the
release described in Section 8.2(g):

     

    (i)   In
the event of a termination after the execution date of this Agreement, the
Continuing Employer shall pay Executive a lump-sum payment equal to the
estimated Annual Bonus that Executive would have earned for the fiscal year in
question (based on actual performance relative to MBO Criteria for the fiscal
year and Executive’s contribution, in each case up to the date of termination),
calculated on a pro-rated basis to the Termination Date;

     

    (ii)   the
Continuing Employer shall pay Executive a lump-sum payment equal
to:  (a) if the termination occurs after Executive has been employed
through two full fiscal years, two times the sum of his final Base Salary and
the average of the Annual Bonuses awarded to Executive for the two fiscal years
prior to the year in which Executive terminates; (b) if the termination occurs
after Executive has been employed more then one but less than two full fiscal
years, two times the sum of his final Base Salary and the Annual Bonus he was
awarded in the immediately preceding year; or (c) if the termination occurs
before Executive has been employed through one full fiscal year, two times the
sum of his final Base Salary and his Target Bonus;

     

    (iii)   all
restrictions (except applicable federal and state securities law) on any
restricted shares or share equivalents (including, but not limited to, stock
units or performance units) of Common Stock, other securities of the Continuing
Employer or, if such shares of Common Stock or other securities shall have been
exchanged or converted into the right to receive other securities, cash or
property, such other securities, cash or property received upon such exchange or
conversion, including restrictions which lapse with the passage of time or the
satisfaction of performance criteria, to the extent there are any, would lapse
and be eliminated and such securities, cash or property would be unrestricted
(except with respect to restrictions imposed by applicable federal and state
securities law);

     

    (iv)   all
options to purchase shares of Common Stock or other securities of the Continuing
Employer that are subject to vesting shall become fully vested and exercisable
for a period of three months after the date of termination; and

     

    (d)    For
purposes of this Agreement, the term “Continuing Employer”
means (A) the Company, (B) an affiliate of the Company (as such term is
defined in the Exchange Act) or (C) such entity that the Company has merged or
consolidated with or an affiliate (as such term is defined in the Exchange Act)
of such entity that employs Executive immediately after or in connection with
such Change in Control.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

    (e)    For
purposes of this Agreement, a “Change in Control” shall be deemed to have
occurred when any of the following events occur:

     

    (i)   the
consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent, directly or indirectly, either by remaining outstanding
or by being converted into voting securities of the surviving entity, more than
fifty percent (50%) of the total voting power represented by the voting
securities of the Company or such surviving entity thereof outstanding
immediately after such merger or consolidation;  or

     

    (ii)   any
sale of substantially all of the assets of the Company, or any liquidation or
dissolution of the Company, other than as part of a transaction or series of
transactions immediately after which the beneficial holders of the voting
securities of the Company outstanding immediately prior thereto hold, directly
or indirectly, more than fifty percent (50%) of the total voting power
represented by the voting securities of any acquirer or successor corporation or
entity;  or

     

    (iii)   any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934 (the “Exchange Act”), as in effect on the Effective Date,
(a “Person”)) acquiring “beneficial ownership” (as defined in Rule 13d-3 under
the Exchange Act), of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding voting securities;
or

     

    (iv)   a
change in the Board that is the result of a proxy solicitation(s) or other
action(s) to influence voting at a shareholders’ meeting of the Company (other
than by voting one’s own stock) by a Person or group of Persons who has
Beneficial Ownership of 5% or more of the combined voting power of the
securities of the Company and which causes the Continuing Directors (as defined
below) to cease to constitute a majority of the Board;  provided,
however, that none of the events described in (i) through (iv) of this Section
8.2(e) shall be deemed to be a Change in Control if the event(s) or election(s)
causing such change shall have been approved specifically for purposes of this
Agreement by the affirmative vote of at, least a majority of the members of the
Continuing Directors.  For these purposes, a “Continuing Director”
shall mean a member of the Board (A) who is a member of the Board on the
Effective Date, or (B) who subsequently becomes a member of the Board and who
either (x) is appointed or recommended for election with the affirmative vote of
a majority of the Directors then in office who are Directors on the Effective
Date, or (y) is appointed or recommended for election with the affirmative vote
of a majority of the Directors then in office who are described in clauses (A)
and (B) (including clause (B)(y)), as applicable.

     

    (f)    In the
event that the benefits provided for in the Agreement, when aggregated with any
other payments or benefits received by Executive (the “Aggregate Benefits”),
would (i) constitute “parachute payments” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) would be
subject to the excise tax imposed by Section 4999 of the Code (the “Excise
Tax”), then Executive’s Aggregate Benefits will be either:  (a)
delivered in full, or (b) delivered as to such lesser extent as would result in
no portion of such Aggregate Benefits being subject to the Excise Tax, whichever
of the foregoing amounts, taking into account the applicable federal, state and
local income taxes and the Excise Tax, results in the receipt by Executive on an
after-tax basis of the greatest amount of Aggregate Benefits, notwithstanding
that all or some portion of such Aggregate Benefits may be taxable under Section
4999 of the Code.  Unless the Company and Executive otherwise agree in
writing, any determination required under this paragraph will be made in writing
by the independent public accountants mutually agreeable to the Company and
Executive (the “Accountants”) whose determination will be conclusive and binding
upon Executive and the Company for all purposes.  For purposes of
making the calculations required by this paragraph, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code.  The Company and Executive will
furnish to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this
paragraph.  To the extent any reduction in Aggregate Benefits is
required by this paragraph, Aggregate Benefits shall be reduced or eliminated in
reverse order of time of payment (that is, Aggregate Benefits payable later
shall be reduced or eliminated before any reduction or elimination of Aggregate
Benefits payable sooner), Aggregate Benefits payable at the same time shall be
reduced or eliminated in accordance with the Executive’s instructions provided
the Company has no reasonable objection thereto, and all reductions or
eliminations shall be based on the value of the Aggregate Benefits established
for purposes of the determination required under this paragraph.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (g) Executive’s
right to receive any of the payments or other compensation to be made to
Executive pursuant to this Section 8.2 shall be contingent on Executive
providing the Continuing Employer a full and complete release of all known and
unknown claims against the Continuing Employer and its affiliates and
representatives, in the form set forth on Exhibit A to this
Agreement.

     

    9.    Confidentiality.  It
is specifically understood and agreed that the Company possesses trade secrets,
data and information regarding customers, suppliers and stockholders,
development, acquisition and other business plans, strategies and records,
methods of business and operations, “know-how,” property and financial analyses
and reports, techniques, processes and other confidential or proprietary
information of the Company and other persons (all such information, “Proprietary
Information”).  All Proprietary Information is and shall be the
sole property of the Company for its own exclusive use and benefit, and
Executive agrees that upon termination of his employment for any reason
whatsoever, he shall return to the Company all Proprietary Information in his
possession or under his control.  Executive further agrees that he
shall hold all Proprietary Information in strictest confidence and shall not at
any time, either during or after his employment by the Company, use or disclose,
or permit the use or disclosure of, the same for his own benefit or for the
benefit of others, unless authorized to do so by the Company’s written consent
or by a contract or agreement to which the Company is a party or by which it is
bound.  The provisions of this Section 9 shall perpetually survive the
termination of the Agreement, and Executive shall likewise be bound by all other
agreements between his and the Company relating in any way to the protection of
Proprietary Information.

     

    10.    Non-Solicitation.  For
a period of one year following any termination of this Agreement, Executive
shall not directly or indirectly recruit, attempt to hire, direct, assist others
in recruiting- or hiring, or encourage any employee of or consultant to the
Company to terminate his or her employment or consulting relationship with the
Company or to accept employment or enter into a consulting relationship with any
subsequent employer or business with whom Executive is affiliated in any
way.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

       

    

    11.    Arbitration.

     

    11.1    In
consideration of the Company employing Executive and the wages and benefits
provided under this Agreement, Executive and the Company each agree that all
claims arising out of or relating to Executive’s employment, including its
termination, shall be resolved by binding arbitration in San Francisco,
California.  This agreement does not prohibit either party from
seeking provisional injunctive relief, pursuant to California Code of Civil
Procedure Section 1281.8.

     

    11.2    The
dispute will be arbitrated in accordance with the then-current rules of the
American Arbitration Association applicable to employment disputes. The Company
agrees to pay the fees and expenses for the arbitration, except those related to
Executive’s legal fees and costs.  If either party prevails on a
statutory claim which affords the prevailing party attorneys’ fees and costs,
the arbitrator may award reasonable fees and costs to the prevailing party,
under the standards for an award of fees and costs provided by
law.  The parties agree to file any demand for arbitration within the
time limit established by the applicable statute of limitations for the asserted
claims or within one year of the conduct that forms the basis of the claim if
the claim asserts a breach of express or implied contract. The failure to demand
arbitration within the prescribed time period shall result in waiver of said
claims.

     

    11.3    This
arbitration agreement will cover all matters directly or indirectly related to
Executive’s recruitment, employment or termination of employment by the Company,
including but not limited to claims involving laws against any form of
discrimination whether brought under federal or state law, and claims involving
present and former Executives, officers and directors of the Company, but
excluding workers’ compensation and unemployment insurance
claims.  THE PARTIES UNDERSTAND AND AGREE THAT THEY ARE WAIVING THEIR
RIGHTS TO BRING SUCH CLAIMS TO COURT, INCLUDING THE RIGHT TO A JURY
TRIAL.

    

    12.    Taxes;
Withholdings.  All compensation payable by the Company to
Executive under this Agreement which is or may become subject to withholding
under the Code or other pertinent provisions of laws or regulation shall be
reduced for all applicable income and/or employment taxes required to be
withheld whether with respect to amounts payable under this Agreement or
otherwise.  If any payment otherwise due hereunder would be, when
otherwise due, subject to additional taxes and interest under Section 409A of
the United States Internal Revenue Code of 1986, as amended (the "Code"), for
example, and not by way of limitation, because of the prohibition under Section
409A against the payment of deferred compensation on account of separation of
service within six months of separation in the case of any key employee of a
public company, then such payment shall be deferred to the extent required to
avoid such additional taxes and interest.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    13.    Upon Termination of the
Term.  The Company shall have the right, without any notice to
Executive, to offset any amounts payable to the Company against any amount
payable to Executive pursuant to this Agreement.

     

    14.    Miscellaneous.

     

    14.1    Notices.  All
notices and other communications required by this Agreement shall be in writing
and shall be deemed given if properly addressed:  (i) if delivered
personally or via a nationally recognized commercial delivery service, on the
day of delivery; or (ii) if delivered by registered or certified mail (return
receipt requested), three business days after mailing.  Notices shall
be deemed to be properly addressed if addressed to the following addresses (or
at such other address for a party as shall be specified by like
notice):

     

    
      
        
          	 	If
      to the Company: 	      
                  BRE
      Properties, Inc.

                  525
      Market Street, Fourth Floor

                  San
      Francisco, CA 94105

                  Attn:
      General Counsel

                
	 	 	 
	
                   
      

                	
                  If
      to Executive:

                	
                  To
      the contact address of Executive maintained in the Company’s Human
      Resources records

                

        

      

    

    

    14.2    Entire
Agreement.  This Agreement contains the full and complete
understanding of the parties and supersedes all prior representations, promises,
agreements, and warranties, whether oral or written, on the subject matters
covered herein.

     

    14.3    Governing Law.  This
Agreement shall be governed by and interpreted according to the laws of the
State of California.

     

    14.4    Successors and
Assigns.  With respect to the Company, this Agreement shall
inure to the benefit of and be binding upon any successors or assigns of the
Company.  With respect to Executive, this Agreement shall not be
assignable but shall inure to the benefit of estate of Executive or his legal
successor upon death or disability.

     

    14.5    Headings.  The
captions of the various sections of this Agreement are inserted only for
convenience and shall not be considered in construing this
Agreement.

     

    14.6    Amendments.  Except
with respect to adjustments to the Base Salary or Executive’s duties pursuant to
the terms of Sections 2 and 3.1, this Agreement may be modified or amended only
by a writing signed by both parties.

     

    14.7    Waivers. No failure on the
part of either party to exercise any right or remedy under this Agreement, and
no delay on the part of either party in exercising any right or remedy under
this Agreement, shall operate as a waiver of such right or remedy; and no single
or partial exercise of any such right or remedy shall preclude any other or
further exercise thereof or of any other right or remedy.  Neither
party shall be deemed to have waived any claim arising out of this Agreement, or
any right, condition or remedy under this Agreement, unless the waiver of such
right, condition or remedy is expressly set forth in a written instrument
executed by such party and any such waiver shall only be applicable and
effective in the specific instance in which it is given.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    14.8    Severability.  If
any provision of this Agreement shall be held invalid, illegal, or
unenforceable, the remaining provisions of the Agreement shall remain in full
force and effect, and the invalid, illegal, or unenforceable provision shall be
limited or eliminated only to the extent necessary to remove such invalidity,
illegality, or unenforceability in accordance with the applicable law at that
time.

     

    14.9    Attorneys’
Fees.  Without limiting the provisions of Section 11, if either
party institutes arbitration proceedings pursuant to Section 11 or an action to
enforce the terms of this Agreement, the prevailing party in such proceeding or
action shall be entitled to recover reasonable attorneys’ fees, costs, and
expenses except as otherwise required by law.

     

    14.10   Non-Exclusivity of
Remedies.  No remedy made available to the Company by any of
the provisions of this Agreement is intended to be exclusive of, any other
remedy.  Each and every remedy shall be cumulative and shall be in
addition to every other remedy given hereunder as well as those remedies,
existing at law, in equity, by statute, or otherwise.

     

    14.11   Interpretation and Advice of
Counsel.  Executive was advised to seek the advice of counsel
in connection with the negotiation of this Agreement.  Executive has
done so.  Any uncertainty or ambiguity shall not be construed for or
against any party based on attribution of drafting to any party.

     

    14.12   Survival.  Sections
9, 10, 11, 12, 13 and 14 and Section 7 or 8, as the case may be, if this
Agreement shall be terminated pursuant to Section 7, shall survive the
termination of this Agreement and remain in full force and effect.

     

    14.13   No
Conflict.  Executive represents that the execution of this
Agreement by Executive will not violate any other agreement to which Executive
is a party.

     

    IN
WITNESS WHEREOF, this Agreement has been executed as of the Effective
Date.

    
       

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        BRE Properties,
    Inc.

                                      	 	
                                        Executive

                                      	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	      
                                        Constance
      B. Moore

                                        Chief
      Executive Officer 

                                      	 	      
                                        Scott
      A. Reinert 

                                      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        
           

          
            
               

            

            
              16

              
                

              

            

            
               

            

          

        

      

    

     

    EXHIBIT
A

    

    RELEASE

    

    THIS
RELEASE (“Release”), is entered into by and
between                                                                                                                                                     
(referred to herein as “Executive”), and BRE Properties, Inc., a Maryland
corporation (the “Company”), as of this, day of,.

    

    RECITALS

    WHEREAS,
the Executive and the Company are parties to an Amended and Restated Employment
Agreement (“Agreement”) entered on;

    

    WHEREAS,
the provisions in the Agreement are incorporated into this Release as if fully
re-written herein;

    

    NOW,
THEREFORE, in consideration of the foregoing promises, the mutual covenants and
promises contained herein and in the Agreement, the releases set forth herein,
other good and valuable consideration, receipt of which is hereby acknowledged,
it is hereby agreed by the Executive and the Company as follows:

    

    AGREEMENT

    

    1.           Release
Of Claims.

    

    A.           Executive’s
Release Of Claims.  In consideration of the benefits under
Section 9 of the Employment Agreement and any reference to rights or benefits
set forth therein, the Executive hereby waives all rights under Section 1542 of
the Civil Code of the State of California.  Section 1542
provides:

    

    A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of  executing the
release, which if known by him or her must have materially affected his or her
settlement with the debtor.

    

    Notwithstanding
the provisions of Section 1542 of the Civil Code of the State of California, the
Executive hereby irrevocably and unconditionally releases and forever discharges
the Company, and each and all of its related entities and its officers,
directors, employees, agents, and representatives and their successors and
assigns, and all persons acting by, through, under, or in concert with any of
them, from any and all charges, complaints, claims, and liabilities of any kind
or nature whatsoever, known or unknown, suspected or unsuspected (hereinafter
referred to as “Executive Claims”), which the Executive at any time had or
claims to have or which the Executive at any time may have or claim to have
regarding incidents that have occurred as of the date of this Release,
including, without limitation, any and all Executive Claims relating to the
Executive’s employment or the termination of the Executive’s employment with the
Company.  It is expressly understood by the Executive that among the
various rights and claims being waived in this Release are those arising under
the Age Discrimination in Employment Act of 1967, the United States and
California Constitutions, California common law, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act,
state and federal family leave acts, the California Fair Employment and Housing
Act, the Employee Retirement Income Security Act, and any and all federal and
state executive orders and other statutes and regulations.  The
parties understand that the waived Executive Claims include all actions, claims
and grievances, whether actual or potential, known or unknown, and specifically
but not exclusively, all claims regarding offenses that have occurred as of the
date of this Release, including claims arising out of the Executive’s employment
and the termination of that employment with the Company.  All such
claims (including related attorneys’ fees and costs) are forever barred by this
Release without regard to whether those claims are based on any alleged breach
of a duty arising in contract or tort, or any alleged unlawful act, including,
without limitation, discrimination or harassment, any other claim or cause of
action, and regardless of the forum in which it might be brought.  The
foregoing notwithstanding, the parties understand and agree that the following
Executive Claims are not released: (a) claims for indemnification due under
Section 7237 of the California Corporations Code; (b) claims for indemnification
due under Section 2802 of the California Labor Code; (c) claims for
indemnification under the Company’s By-Laws, or otherwise; (d) any rights to
coverage under any Company Director’s and Officers liability policy; (e) claims
for workers’ compensation benefits; (f) claims for unemployment insurance
benefits; (g) claims for vested retirement benefits; and (h) claims for any
benefits that the Executive has under the Employment Agreement. .

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    B.           Company’s
Release Of Claims.  The Company hereby waives all rights under
Section 1542 of the Civil Code of the State of California.  Section
1542 provides:

    

    A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of  executing the
release, which if known by him or her must have materially affected his or her
settlement with the debtor.

    

    Notwithstanding
the provisions of Section 1542 of the Civil Code of the State of California, the
Company hereby irrevocably and unconditionally releases and forever discharges
the Executive, and each of the Executive’s agents, representatives, successors
and assigns, from any and all charges, complaints, claims, and liabilities of
any kind or nature whatsoever, known or unknown, suspected or unsuspected
excluding any claims that may hereafter arise pursuant to Section 3.4 of the
Agreement requiring Executive to repay any incentive compensation to be recouped
by Company or any similar provision in any other agreement between Company and
Executive relating to incentive compensation that the Company is required to
recoup under a compensation policy that the Company is required to adopt in
order for the Company to comply with applicable laws or regulations or
requirements of the stock exchange(s) upon which the Company’s securities are
listed (hereinafter referred to as “Company Claims”), which the Company at any
time had or claims to have or which the Company at any time may have or claim to
have regarding incidents that have occurred as of the date of this Release,
including, without limitation, any and all charges relating to the Executive’s
employment relationship with the Company.  The released Company Claims
include all actions, claims and grievances, whether actual or potential, known
or unknown, and specifically but not exclusively, all claims regarding offenses
that have occurred as of the date of this Release, including Company Claims
arising out of the Executive’s employment relationship with the
Company.  All such Company Claims (including related attorneys’ fees
and costs) are forever barred by this Release without regard to whether those
claims are based on any alleged breach of a duty arising in contract or tort,
any alleged unlawful act, any other claim or cause of action, and regardless of
the forum in which it might be brought.

    

    2.     Knowing
And Voluntary Release.

    

    The
Executive understands and agrees that the Executive:

    

    A.         Is
entitled to, but need not take, a full twenty-one (21) days within which to
consider this Release before executing it;

    

    B.         Has
carefully read and fully understands all the provisions of this
Release;

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

       

    

    C.         Is,
through this Release, releasing the Company, its related entities, and each and
all of its officers, directors, employees, agents, and representatives, of any
and all claims the Executive may have against them;

    

    D.         Knowingly
and voluntarily agrees to all the terms set forth in this Release;

    

    E.         Knowingly
and voluntarily intends to be legally bound to this Release;

    

    F.         Was
advised and hereby is advised in writing to consider the terms of this Release
and consult with an attorney of the Executive’s choice prior to execution of
this Release;

    

    G.         Has
a full seven (7) days following the execution of this Release to revoke this
Release and has been advised in writing that the Release shall not become
effective or enforceable until the revocation period has expired;
and

    

    H.         Understands
that rights or claims under the Age Discrimination in Employment Act of 1967
that may arise after the date of this Release is executed are not
waived.

    

    3.           Miscellaneous.

    

    3.1           No
effect.  This Release shall not affect any claim which cannot
be waived by private agreement.

    

    3.2           Binding
Effective Agreement.  This Release shall be binding on the
Executive, and upon the Executive’s heirs, administrators, representatives,
executors, successors and permitted assigns, and shall inure to the benefit of
the Company, its related entities, and its officers, directors, employees,
agents, and representatives, and to its administrators, executors, successors
and assigns.  The Executive expressly warrants that the Executive has
not transferred to any person or entity any rights, causes of action, or claims
released in the Release.

    

    3.3.           Entire
Agreement.  The Agreement and
this Release set forth the entire agreement between the parties and fully
supersede any and all prior agreements or understandings, written or oral,
between the parties pertaining to the subject matter of the Agreement and this
Release.  This Release may not be modified or amended.  If
any provision of this Release or the application thereof is held invalid, the
invalidity shall not affect the other provisions or applications of this Release
which can be given effect without the invalid provisions or applications, and to
this end the provisions of this Release are declared to be
severable.  This Release may not be assigned without the express
written consent of the non-assigning party.  In the event any dispute
arises in regard to the interpretation of this Release, the parties agree this
Release shall not be deemed to have been drafted by one or the other, and that
any rules of construction to the affect that any ambiguities are to be resolved
against the drafting party shall not be applicable.

    

    4.           Proprietary
And Confidential Information.

    

    Any agreements the Executive may have
signed with the Company concerning trade secrets, secrecy, new products, ideas,
inventions, business plans, inventions, and confidential data will remain in
full force and effect.  The Executive shall return to the Company on
or before the Executive’s final date of employment with the Company, and not
take, copy, use, or distribute in an form or manner, Company documents or
information which is proprietary and/or confidential, including, but not limited
to, lists of customers or potential customers, lists of investors or potential
investors, financial information, business and strategic plans, software
programs and codes, access codes, and other similar confidential materials or
information.  The Executive further agrees to return all Company
property by the Executive’s final date of employment.  It is
understood and agreed that any unauthorized use of Company proprietary or
confidential information under this provision voids the Company’s obligation to
provide Compensation Upon Termination as described in Section 8 of the
Agreement.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    5.           Cooperation.

    

    The Executive agrees to assist the
Company in defending or prosecuting any claim which arose or may arise or
continue after the Executive’s cessation of employment with the
Company.  Such assistance shall include, but not be limited to the
Executive being reasonably available as a witness for the Company regardless of
the location of the deposition or trial, being reasonably prepared for
testimony, and providing the Company and its counsel with information or
materials within the Executive’s knowledge related to the Executive’s employment
or pertinent to the claim.  The Company agrees to reimburse the
Executive only for out-of-pocket expenses (including travel) actually incurred
by the Executive in providing assistance at the Company’s request pursuant to
this provision.

    

    6.           Arbitration.

     

    6.1         Executive
and the Company each agree that any and all controversy pertaining to the
subject matter of this Release, including but not limited to, those involving
construction or application or performance of any terms, provisions, or
conditions of this Release, shall be resolved by binding arbitration in San
Francisco, California.  This Release does not prohibit either party
from seeking provisional injunctive relief, pursuant to California Code of Civil
Procedure Section 1281.8.

     

    6.2         The
dispute will be arbitrated in accordance with the then-current rules of the
American Arbitration Association applicable to employment disputes. The Company
agrees to pay the fees and expenses for the arbitration, except those related to
the Executive’s legal fees and costs.  The parties agree to file any
demand for arbitration within the time limit established by the applicable
statute of limitations for the asserted claims or within one year of the conduct
that forms the basis of the claim if the claim asserts a breach of express or
implied contract. The failure to demand arbitration within the prescribed time
period shall result in waiver of said claims. THE PARTIES UNDERSTAND AND AGREE
THAT THEY ARE WAIVING THEIR RIGHTS TO BRING SUCH CLAIMS TO COURT, INCLUDING THE
RIGHT TO A JURY TRIAL.

     

    IN WITNESS WHEREOF, this Release has
been executed as of the date first above written.

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          BRE Properties,
    Inc.

                                        	 	
                                          Executive

                                        	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        
           

          
            
               

            

            
              20

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