Document:

hme10k2007ex436.htm

    Exhibit
4.36

     

    HOME
PROPERTIES, INC.

     

    DEFERRED
BONUS PLAN

     

    (Amended
and Restated as of January 1, 2008)

     

    1.           Purpose

     

    Home
Properties, Inc. (the “Company”) has adopted this Home Properties, Inc. Deferred
Bonus Plan (the “Plan”) to assist its key employees with their individual tax
and financial planning and to permit the Company to remain competitive in
attracting, retaining, motivating and rewarding key employees who can directly
influence the Company’s operating results.  The Plan permits eligible
employees to defer the receipt of annual cash bonuses which they may be entitled
to receive from the Company and the Company to contribute matching contributions
on their behalf.

     

    2.           Eligibility

     

    An
employee of the Company is eligible to participate in this Plan if he or she is
in the 3% and above bonus group, is designated by the Committee established
pursuant to section 9 as eligible to participate, is a “highly compensated
employee” as this term is defined in Section 414(q) of the Internal Revenue
Code, and is a member of a “select group of management or highly compensated
employees” as this term is defined in Title I of ERISA.

     

    3.           Contributions

     

    (a)         Participant
Contributions.

     

    
      	
               
      

            	
              (1)

            	
              Amount of
      Deferral.  A participant may elect to defer receipt of
      any whole percent (100 percent maximum) of his or her annual cash bonus
      otherwise payable to the participant by the Company during a calendar
      year.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Time for Electing
      Deferral.  Deferral elections shall be made before the
      beginning of the calendar year during which the participant will perform
      the services to which the annual bonus relates.  For example, if
      a participant wished to defer to a portion of his or her 2009 annual
      bonus, the participant’s written deferral election must be made on or
      before December 31, 2008 (before the first day of the calendar year in
      which the bonus performance period begins), even though the 2009 annual
      bonus may be actually paid in 2010.  Any election to defer shall
      be made in accordance with subsection 3
below.

            

    

     

    
      	
               
      

            	
              Notwithstanding
      the foregoing, a newly-eligible participant may make an initial deferral
      election within 30 days of the time the participant first becomes eligible
      to participate in this Plan, provided that deferrals with respect to this
      election may be made only with respect to a prorated portion of the
      participant’s annual bonus for the performance
  period

            

    

    
 

    
      
        
        

      

      
        Exhibit
4.36 - Page 1

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              currently
      in effect (i.e., the annual bonus amount multiplied by the ratio of the
      number of days remaining in the performance period after the election over
      the total number of days in the performance period).  This
      initial eligibility rule shall not apply if the participant is, or ever
      has been, eligible to participate in another deferred compensation plan
      sponsored by the Company that is an “account balance plan” under the plan
      aggregation rules of Code Section
409A.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Manner of Electing
      Deferral.   A participant shall elect a deferral by
      giving written notice to the Committee in a form prescribed by the
      Committee.  The notice shall include (1) the bonus period with
      respect to which the deferral relates; (2) the amount to be deferred; (3)
      the length of the deferral period; and (4) for deferrals relating to
      services performed in 2008 or thereafter, the form of payment as either a
      lump sum payment or annual installment payments over a specified period
      not to exceed 10 years.  A participant may designate a deferral
      period of three, five or ten years in which case payment will commence on
      the Company’s first quarterly dividend payment date following the
      applicable anniversary date measured from the date the amounts are
      deferred.

            

    

     

    If a
participant elects annual installment payments, the installment payments shall
be substantially equal in amount, provided that any hypothetical dividends
credited to the Participant Account (as described in Section 4(a) below) during
the installment payment period shall be paid with the final installment
payment.  Each such payment shall be paid on the Company’s first
quarterly dividend payment date in each designated year.

     

    For
example, a participant may elect in December 2008 to defer for three years a
bonus payable in 2010 with respect to 2009 services.  If the bonus is
otherwise payable in cash in January 2010, it will be deferred and payment will
commence on the Company’s first quarterly dividend payment date following the
anniversary date that falls in January 2013.

     

    For
deferrals made prior to 2008, notwithstanding the foregoing, in the event the
participant terminates employment, vested benefits payments shall be paid on the
Company’s first quarterly dividend payment date following termination
notwithstanding any later date specified in the participant’s election
form.  For deferrals relating to services performed in 2008 or
thereafter, a Participant may elect to receive payment of deferred amounts on
(i) a specified payment date, (ii) termination of employment, or (iii) the
earlier of a specified payment date or termination of employment.  For
purposes of the Plan, termination of employment shall mean the separation of
service with the Company (within the meaning of Section 409A), voluntarily or
involuntarily, for any reason other than an authorized leave of
absence.

     

    If a
participant dies before receiving all vested benefits in his or her Participant
Account, the remaining balance shall be paid to the participant’s
estate in a lump sum as soon as administratively practicable following the
participant’s death, and in no event later than March 15th of the
calendar year following the calendar year in which the death occurred,
notwithstanding any later date(s) specified in the participant’s election
form(s).

     

    
      	
               
      

            	
              (b)

            	
              Company Matching
      Contributions.  The Company shall contribute 10 percent
      of the amount each participant defers.  The Company’s
      contribution shall be made as of the same date as the participant’s
      deferral to which it relates and shall be deferred to the same payment
      date as the related participant
deferral.

            

    

     

    4.           Participant
Accounts

     

    For each
participant there shall be established a Participant Account.  The
maintenance of individual Participant Accounts is for bookkeeping purposes
only.  The Company is not obligated to make actual contributions to
fund this plan or to acquire or set aside any particular assets for the
discharge of its obligations, nor is any participant to have any property rights
in any particular assets held by the Company, whether or not held for the
purpose of funding the Company’s obligations hereunder.

     

    
      	
               
      

            	
              (a)

            	
              Valuation of
      Accounts.  A Participant’s Account shall be valued as of
      each day there occurs a transaction affecting the Account.  Each
      deferral or Company contribution shall be reflected by crediting the
      Participant Account with the number of shares of Company Common Stock that
      could be purchased at the Common Stock’s then fair market value with the
      amounts deferred by the participant, or contributed by the Company on
      behalf of a participant.  With respect to the hypothetical
      dividends payable on the Company Common Stock previously credited to a
      Participant Account, each such Participant Account shall be credited with
      the number of shares of Company Common Stock that could be purchased with
      the hypothetical dividends on the same date at the same price that shares
      are purchased for participants in the dividend reinvestment feature of the
      Company’s Dividend Reinvestment and Direct Stock purchase
      Plan.  Distributions from, or forfeiture of, the Participant
      Account shall be recorded as of the day of such distributions or
      forfeitures.  The Account shall also be adjusted as of the date
      of any transaction requiring additions to or distributions from the
      Account to reflect any gains (or losses) in the fair market value of
      Company Common Stock held in the Account.  Two subaccounts shall
      be established within the Account to track separately participant and
      Company contributions and the earnings and distributions on
      each.  The Common Stock’s fair market value shall be the
      composite closing price for a share of the Company’s Common Stock as
      listed on the New York Stock Exchange on the date before the transaction
      occurs.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Vesting.  All
      amounts credited to participant contribution subaccounts shall be fully
      vested at all times.  Except for the possible claims of the
      Company’s general creditors, they shall not be subject to forfeiture on
      account of any action by a participant or by the Company, including
      termination of employment.  Amounts credited to a participant’s
      Company contribution subaccount shall become fully vested on the third
      anniversary of the date first credited to the subaccount if the
      participant has been in continuous employment with the Company through the
      third

            

    

     

     

    
      
        
        

      

      
        Exhibit
4.36 - Page 2

        
          

        

      

      
        
        

      

    

     

    
 

    
      	
               
      

            	
              anniversary
      of the contribution date, or if the participant terminates employment on
      account of disability, death, retirement on or after age 60, or upon a
      change in control as hereinafter provided. For this purpose, “disability”
      shall mean the participant (i) is unable to engage in any substantial
      gainful activity by reason of any medically determinable physical or
      mental impairment which can be expected to result in death or can be
      expected to last for a continuous period of not less than 12 months, or
      (ii) is, by reason of any medically determinable physical or mental
      impairment which can be expected to result in death or can be expected to
      last for a continuous period of not less than 12 months, receiving income
      replacement benefits for a period of not less than 3 months under an
      accident and health plan covering employees of the
      Company.  Amounts payable under this Plan shall be paid only to
      the participant provided that in the event of his or her death payments
      shall be made to his or her estate.

            

    

     

    
      	
               
      

            	
              If
      a participant’s Company subaccount becomes forfeitable, he or she shall
      forfeit both Company contributions and the earnings
    thereon.

            

    

     

    5.           Payment of Deferred
Amounts

     

    No
withdrawal may be made from a Participant Account except as provided in this
section 5.

     

    
      	
               
      

            	
              (a)

            	
              Commencement of
      Benefits.  Payments of vested amounts from an Account
      shall normally be made in a lump sum or annual installment payments in
      accordance with the participant’s deferral election and section 3 of the
      Plan, commencing on the Company’s first quarterly dividend payment date
      following an elected anniversary date or the participant’s termination of
      employment.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Specified
      Employees.  Notwithstanding any other provision of the
      Plan to the contrary or a Participant’s election of a payment date, a
      distribution from a Participant Account of a Specified Employee that is
      triggered by a separation from service may not be made before the date
      which is six months after the separation from service date.  For
      purposes of the Plan, the term “Specified Employee” shall have the meaning
      defined in Section 409A, as determined under rules established by the
      Committee.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Hardship
      Withdrawals.  Except for earlier payments expressly
      authorized by this Plan and Code Section 409A, no benefit may be paid
      earlier than the date specified in a deferral
      election.  Notwithstanding the payment terms set forth in a
      participant’s deferral election, however, the Committee may, in its sole
      discretion, authorize an in-service withdrawal on account of a
      participant’s Unforeseeable Financial Emergency.  A distribution
      based upon Unforeseeable Financial Emergency shall not exceed the lesser
      of the participant’s account balance, or the amount reasonably needed to
      satisfy the Unforeseeable Financial Emergency plus amounts necessary to
      pay taxes reasonably anticipated as a result of the payouts, after taking
      into account the extent to which the Unforeseeable Financial Emergency is
      or may be relieved through reimbursement or compensation by insurance or
      otherwise or by liquidation of the participant’s assets (to the extent the
      liquidation of assets would not itself cause severe financial
      hardship).  A distribution based upon Unforeseeable Financial
      Emergency shall be permitted only to the extent permitted under Section
      409A.

            

    

     

    
      
        
        

      

      
        Exhibit
4.36 - Page 3

        
          

        

      

      
        
        

      

    

     

     

    

    
      	
               
      

            	
              For
      purposes of the Plan, the term “Unforeseeable Financial Emergency” shall
      mean an unanticipated emergency that is caused by an event beyond the
      control of the participant that would result in severe financial hardship
      to the participant resulting from (i) an illness or accident of the
      participant, the participant’s spouse or a dependent of the participant,
      (ii) a loss of the participant’s property due to casualty, or (iii) such
      other extraordinary and unforeseeable circumstances arising as a result of
      events beyond the control of the participant, all as determined in the
      sole discretion of the Committee.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Subsequent Deferral
      Election.  No subsequent deferral election shall be
      permitted to extend the payment of benefits beyond the payment date set
      forth in the relevant deferral election, except for a subsequent deferral
      election that satisfies all of the following
  conditions:

            

    

     

    
      	
               
      

            	
              ·

            	
              the
      subsequent election must be made 12 months or more prior to the
      previously-selected payment date;
and

            

    

     

    
      	
               
      

            	
              ·

            	
              the
      new payment commencement date must be at least five years later than the
      previously-selected payment date;
and

            

    

     

    
      	
               
      

            	
              ·

            	
              the
      subsequent election may not be effective until at least 12 months after
      the date on which it is made.

            

    

     

    Only one
such subsequent deferral election may be made after the initial deferral
election.

     

    
      	
               
      

            	
              (e)

            	
              Code Section
      162(m).  If any scheduled payment from this Plan during a
      taxable year of the Company would, in combination with other compensatory
      payments to the participant during such year, result in the participant’s
      compensation exceeding the $1 million cap under Code Section 162(m), the
      Company shall defer benefit payments to the first subsequent year when the
      participant’s compensation will not exceed the $1 million
      cap.  Such payments shall be made in a manner as consistent as
      possible with the participant’s original deferral
  election.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Form of
      Payment.  Payments for any reason other than a change in
      control shall be made only in stock provided that any fractional shares
      from a Participant Account shall be paid in
  cash.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Change in
      Control.  In the event of a change in control, all
      account balances shall become fully and immediately vested and shall be
      paid, in cash or stock as the Committee in its sole discretion may
      determine, within five days of the change in control.  For this
      purpose, the term “change in control” means a change that is a change in
      the ownership, a change in the effective control or a change in the
      ownership of a substantial portion of the assets of the Company, all as
      defined in IRS regulations under Code Section 409A, provided that such
      change also satisfies one of the
following:

            

    

     

    
      	
               
      

            	
              i.

            	
              a
      change of a nature that would be required to be reported in response to
      Item 6(e) of Schedule 14A of Regulation 14A or to
      Item 5.01 of Form 8-K promulgated under the Securities Exchange
      Act of 1934, as amended;

            

    

     

     

    
      
        
        

      

      
        Exhibit
4.36 - Page 4

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              ii.

            	
              any
      “person” (as such term is used in Sections 13(d) and 14(d)(2) of such
      Act) is or becomes the beneficial owner, directly or indirectly, of
      securities of the Company representing 30% or more of
      the combined voting power of the Company’s then outstanding securities;
      or

            

    

     

    
      	
               
      

            	
              iii.

            	
              during
      any period of twenty-four (24) consecutive months, individuals who at the
      beginning of such period constitute the Board of Directors of the Company
      cease for any reason to constitute at least a majority thereof unless the
      election, or the nomination for election by the Company’s shareholders, of
      each new director was approved by a vote of at least two-thirds of the
      directors then still in office who were directors at the beginning of the
      period.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Authorized
      Shares.  An aggregate of 100,000 shares of Company Common
      Stock (subject to substitution or adjustment as provided below) shall be
      available for stock payments under this Plan.  Such shares may
      be authorized and unissued shares or may be treasury shares.  In
      the event of any change in the Common Stock of the Company by reason of
      any stock dividend, recapitalization, reorganization, merger,
      consolidation, split-up, combination, or exchange of shares, or rights
      offering to purchase Common Stock at a price substantially below fair
      market value, or of any similar change affecting the Common Stock, the
      number and kind of shares which thereafter are available for stock
      payments under the Plan shall be appropriately adjusted consistent with
      such change in such manner as the Committee may deem equitable to prevent
      substantial dilution or enlargement of the rights granted to, or available
      for, participants in the Plan.

            

    

     

    6.           Participant’s Rights
Unsecured

     

    The right
of any participant or, if applicable, the participant’s estate, to receive
benefits under the provisions of this Plan shall be an unsecured claim against
the general assets of the Company.  Any amounts held in a Participant
Account, including amounts that may be set aside by the Company for the purpose
of meeting its obligations under this Plan, are a part of the Company’s general
assets and shall be reachable by the general creditors of the
Company.

     

    7.           Statement of
Account

     

    Statements
will be sent to participants no less frequently than annually setting forth the
value of their Participant Accounts.

     

    8.           Transferability

     

    The
rights of a participant under this Plan shall not be transferable other than by
will or by the laws of descent and distribution and are exercisable during the
participant’s lifetime only by the participant or by his guardian or legal
representative.

     

    9.           Plan
Administrator

     

    The
administrator of this Plan shall be a committee of the Board of Directors of the
Company as from time to time designated by the Board.  The Committee’s
members shall not be employees of the Company.  The Committee shall
have the authority to adopt rules and regulations
for carrying out the Plan and to interpret, construe and implement the
provisions of the Plan.  The Committee may delegate some or all of its
functions to another person as it may deem appropriate.

     

     

    
      
        
        

      

      
        Exhibit
4.36 - Page 5

        
          

        

      

      
        
        

      

    

     

    10.           Taxes

     

    Amounts contributed to this Plan are
subject to FICA and Medicare taxes at the time they become
vested.  Contributed amounts are not subject to income taxes until
they are paid or otherwise made available.  The Company may make
arrangements with participants to ensure that any withholding requirements are
satisfied, including withholding the number of shares needed to satisfy the
requirements, withholding on other cash payments from the Company to the
participant or receiving from the participant sufficient cash that can be used
by the Company to satisfy its withholding requirements.

     

    11.           Amendment

     

    This Plan
may at any time or from time to time be amended, modified or terminated by the
Company’s Board of Directors, provided that any such amendment, modification or
termination shall comply with the requirements of Code Section 409A
..  No amendment, modification or termination shall, without the
consent of a participant, adversely affect such participant’s accruals in his or
her Participant Account.

     

    12.           Section
409A

     

    This Plan
shall be governed by and subject to the requirements of Section 409A and shall
be interpreted and administered in accordance with that intent.  If
any provision of this Plan would otherwise conflict with or frustrate this
intent, that provision will be interpreted and deemed amended so as to avoid the
conflict.  The Committee reserves the right to take any action it
deems appropriate or necessary to comply with the requirements of Section 409A
and may take advantage of such transition rules under Section 409A as it deems
necessary or appropriate.

     

    13.           Governing
Law

     

    This Plan
and any participant elections hereunder shall be interpreted and enforced in
accordance with the laws of the State of New York.

     

    14.           Effective
Date

     

    The
original effective date of this Plan is January 1, 1998.  The
effective date of this restatement is January 1, 2008.

    

    IN
WITNESS WHEREOF, the Company has caused its duly authorized officer to execute
this Plan document on its behalf this 14th  day
of December, 2007.

     

    
      	 
      	 
      	
              HOME
      PROPERTIES, INC

               

            
	 
      	
              By:

            	
              /s/
      Ann M. McCormick

            
	 
      	
              Its:

            	
              Executive
      Vice President

            

    

     

     

    
      
         

      

      
        Exhibit
4.36 - Page 6hmt10k2007ex437.htm

    Exhibit
4.37

     

    HOME
PROPERTIES, INC.

     

    DIRECTOR
DEFERRED COMPENSATION PLAN

     

    (Amended
and Restated as of January 1, 2008)

     

    1.            Purpose

     

          
Home Properties, Inc. (the “Company”) adopted its Home Properties, Inc.Home
Properties, Inc. Director Deferred Compensation Plan effective January 1, 1999
(the “Plan”) to assist its independent directors with their individual tax and
financial planning and to permit the Company to remain competitive in attracting
and retaining its independent directors.  The Plan permits eligible
directors to defer the receipt of annual compensation which they may be entitled
to receive from the Company and, with respect to cash compensation, the Company
to contribute matching contributions on their behalf.

     

    2.            Eligibility

     

          
Any member of the Board of Directors of the Company who is not otherwise an
employee of the Company or any subsidiary is eligible to participate in this
Plan.

     

    3.            Contributions

     

    
      	
               
      

            	
              (a)

            	
              Participant
      Contributions.

            

    

     

    
      	
               
      

            	
              (1)

            	
              Amount of
      Deferral.  A participant may elect to defer receipt of
      any whole percent (100 percent maximum) of his or her
      annual  compensation otherwise payable or, in the case of
      restricted stock, granted to the participant by the Company during a
      calendar year.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Time for Electing
      Deferral.  Deferral elections shall be made before the
      beginning of the calendar year during which the participant will perform
      the services to which the compensations relates.  Any election
      to defer shall be made in accordance with subsection 3
    below.

            

    

     

    Notwithstanding
the foregoing, a newly-eligible participant may make an initial deferral
election within 30 days of the time the participant first becomes eligible to
participate in this Plan, provided that deferrals with respect to this election
may be made only with respect to compensation for services to be performed
subsequent to the election.  This initial eligibility rule shall not
apply if the participant is, or ever has been, eligible to participate in
another deferred compensation plan sponsored by the Company that is an “account
balance plan” under the plan aggregation rules of Code Section
409A.

     

    
      
        
        

      

      
        Exhibit
4.37 - Page 1

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (3)

            	
              Manner of Electing
      Deferral.  A participant shall elect a deferral by giving
      written notice to the Company in a form prescribed by the Committee
      established pursuant to Section 9 (the “Committee”).  The notice
      shall include (1) the year to which the deferral relates; (2) the
      percentage and type of compensation to be deferred; (3)
      the  period with respect to which the deferral relates; (4) the
      length of the deferral period; and (5) for deferrals relating to services
      performed in 2008 or thereafter, the form of payment as either a lump sum
      payment or annual installment payments over a specified period not to
      exceed 10 years.  A participant may designate a deferral period
      of three, five or ten years for cash deferrals and a deferral period of
      five or ten years for restricted stock deferrals.  If a
      participant elects annual installment payments, the installment payments
      shall be substantially equal in amount, provided that any hypothetical
      dividends credited to the Participant Account (as described in Section
      4(a) below) during the installment payment period shall be paid with the
      final installment payment.  Payment of cash deferrals and
      issuance of stock for restricted stock deferrals will commence on the
      first quarterly dividend payment date occuring after the applicable
      anniversary date of the latest date any compensation is deferred in any
      applicable year.

            

    

     

    For
example, a participant may elect in December 2008 to defer for three years
compensation payable in 2009 with respect to 2009
services.  Compensation deferred in 2009 will be paid on the first
Dividend Payment Date occurring after the third anniversary date of the latest
compensation deferred in 2009.

     

    For
deferrals made prior to 2008, notwithstanding the foregoing, in the event the
participant retires or otherwise ceases to be a member of the Board of
Directors, vested benefits payments shall be paid on the Company’s first
quarterly dividend payment date following retirement or such cessation
notwithstanding any later date specified in the participant’s election
form.  For deferrals relating to services performed in 2008 or
thereafter, a Participant may elect to receive payment of deferred amounts on
(i) a specified payment date, (ii) termination of directorship, or (iii) the
earlier of a specified payment date or termination of
directorship.  For purposes of the Plan, retiring or terminating as a
Director shall mean a separation from service with the Company (within the
meaning of Section 409A).

     

    If a
participant dies before receiving all vested benefits in his or her Participant
Account, the remaining balance shall be paid to the participant’s estate in a
lump sum as soon as administratively practicable following the participant’s
death, and in no event later than March 15th of the calendar year following the
calendar year in which the death occurred, notwithstanding any later date(s)
specified in the participant’s election form(s).

     

     

    
      
        
        

      

      
        Exhibit
4.37 - Page 2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                 
      

              	
                (b)

              	
                Company Matching
      Contributions.  The Company shall contribute 10 percent
      of the cash amount each participant defers.  The Company’s
      contribution  shall be made as of the same date as the
      participant’s deferral to which it relates and shall be deferred to the
      same payment date as the related participant deferral.  The
      Company shall not contribute any additional amounts with respect to any
      participant’s election to defer the recognition of income on restricted
      stock.

              

      

       
 4.            Participant
Accounts

     

    For each
participant there shall be established a Participant Account (the
“Account”).  The maintenance of individual Participant Accounts is for
bookkeeping purposes only.  The Company is not obligated to make
actual contributions to fund this Plan or to acquire or set aside any particular
assets for the discharge of its obligations, nor is any participant to have any
property rights in any particular assets held by the Company, whether or not
held for the purpose of funding the Company’s obligations
hereunder.

     

    
      	
               
      

            	
              (a)

            	
              Valuation of
      Accounts.  A participant’s Account shall be valued as of
      each day there occurs a transaction affecting the Account. Each cash
      deferral or Company contribution shall be reflected by crediting the
      Account with the number of shares of Company Common Stock that could be
      purchased at the Common Stock’s then fair market value with the amounts
      deferred by the participant, or contributed by the Company on behalf of a
      participant.  With respect to the deferral of the recognition of
      income on restricted stock, a participant’s Account shall be credited with
      the same number of shares of the Company Common Stock as the number of
      shares of restricted stock the recognition of income on which has been
      deferred.  For purposes of making these credits:  (a)
      the participant’s quarterly compensation and meeting fees will be deemed
      to have been made on the Dividend Payment Date occurring during the
      quarter for which the quarterly payment is made and during which the
      meeting date(s) occurred; and (b) restricted stock will be deemed to have
      been granted on the date that it is actually granted.  In
      addition, each Account will be credited with the number of shares of
      Company Common Stock that could be purchased with hypothetical dividends
      that would be paid with respect to all shares previously allocated to the
      Account on the same date and at the same price that shares are purchased
      for participants in the dividend reinvestment feature of the Company’s
      Dividend Reinvestment and Direct Stock Purchase
      Plan.  Distributions from, or forfeiture of, the Account shall
      be recorded as of the day of such distributions or
      forfeitures.  The Account shall also be adjusted as of the date
      of any transaction requiring additions to or distributions from the
      Account to reflect any gains (or losses) in the fair market value of
      Company Common Stock held in the Account.  Three subaccounts
      shall be established within the Account to track separately participant
      cash contributions, Company cash contributions and participant restricted
      stock contributions and the earnings and distributions on
      each.  The Common Stock’s fair market value shall be the
      composite closing price for a share of the Company’s Common Stock as
      listed on the New York Stock Exchange on the date before the transaction
      occurs.

            

    

     

     

    
      
        
        

      

      
        Exhibit
4.37 - Page 3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Vesting.  All
      amounts credited to participant cash contribution subaccounts shall be
      fully vested at all times.  Except for the possible claims of
      the Company’s general creditors, they shall not be subject to forfeiture
      on account of any action

            

    

     

    
      	
               
      

            	
              by
      a participant or by the Company, including termination of the
      participant’s directorship.  Amounts credited to a participant’s
      Company cash contribution subaccount shall become fully vested on the
      first Dividend Payment Date occurring after the third anniversary of the
      date first credited to the subaccount if the participant
      has  continuously been a director of the Company through the
      third anniversary of the contribution date, or if the participant ceases
      to be a director on account of disability, death or retirement or upon a
      change in control as hereinafter provided.  For this purpose,
      “disability” shall mean the participant is unable to engage in any
      substantial gainful activity by reason of any medically determinable
      physical or mental impairment which can be expected to result in death or
      can be expected to last for a continuous period of not less than 12
      months.  A participant’s restricted stock subaccount shall
      become vested in accordance with the vesting provisions of the restricted
      stock grant.  Amounts payable under this Plan shall be paid only
      to the participant provided that in the event of his or her death payments
      shall be made to his or her estate.

            

    

     

    If a
participant’s Company subaccount becomes forfeitable, he or she shall forfeit
both Company contributions and the earnings thereon.

     

    5.            Payment of Deferred
Amounts

     

    No
withdrawal may be made from an Account except as provided in this section
5.

     

    
      	
               
      

            	
              (a)

            	
              Commencement of
      Benefits.  Payments of vested amounts from an Account
      shall normally be made in a lump sum or annual installment payments,
      commencing on on the first quarterly dividend payment date occuring after
      the applicable anniversary date of the latest date any compensation is
      deferred in any applicable year.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Hardship
      Withdrawals.  Except for earlier payments expressly
      authorized by this Plan and Code Section 409A, no benefit may be paid
      earlier than the date specified in a deferral
      election.  Notwithstanding the payment terms set forth in a
      participant’s deferral election, however, the Committee may, in its sole
      discretion, authorize an in-service withdrawal on account of a
      participant’s Unforeseeable Financial Emergency.  A distribution
      based upon Unforeseeable Financial Emergency shall not exceed the lesser
      of the participant’s account balance, or the amount reasonably needed to
      satisfy the Unforeseeable Financial Emergency plus amounts necessary to
      pay taxes reasonably anticipated as a result of the payouts, after taking
      into account the extent to which the Unforeseeable Financial Emergency is
      or may be relieved through reimbursement or compensation by insurance or
      otherwise or by liquidation of the participant’s assets (to the extent the
      liquidation of assets would not itself cause severe financial
      hardship).  A distribution based upon Unforeseeable Financial
      Emergency shall be permitted only to the extent permitted under Section
      409A.

            

    

     

    
      
        
        

      

      
        Exhibit
4.37 - Page 4

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              For
      purposes of the Plan, the term “Unforeseeable Financial Emergency” shall
      mean an unanticipated emergency that is caused by an event beyond the
      control of the participant that would result in severe financial hardship
      to the participant resulting from (i) an illness or accident of the
      participant, the participant’s spouse or a dependent of the participant,
      (ii) a loss of the participant’s property due to casualty, or (iii) such
      other extraordinary and unforeseeable circumstances arising as a result of
      events beyond the control of the participant, all as determined in the
      sole discretion of the Committee.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Subsequent Deferral
      Election.  No subsequent deferral election shall be
      permitted to extend the payment of benefits beyond the payment date set
      forth in the relevant deferral election, except for a subsequent deferral
      election that satisfies all of the following
  conditions:

            

    

     

    
      	
               
      

            	
              ·

            	
              the
      subsequent election must be made 12 months or more prior to the
      previously-selected payment date;
and

            

    

     

    
      	
               
      

            	
              ·

            	
              the
      new payment commencement date must be at least five years later than the
      previously-selected payment date;
and

            

    

     

    
      	
               
      

            	
              ·

            	
              the
      subsequent election may not be effective until at least 12 months after
      the date on which it is made.

            

    

     

    Only one
such subsequent deferral election may be made after the initial deferral
election.

     

    
      	
               
      

            	
              (d)

            	
              Form of
      Payment.  Payments for any reason other than a change in
      control shall be made only in stock provided that any fractional shares
      from an Account shall be paid in
cash.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Change in
      Control.  In the event of a change in control, all
      account balances shall become fully and immediately vested and shall be
      paid, in cash or stock as the Committee in its sole discretion may
      determine, within five days of the change in control. For this purpose,
      the term “change in control” means a change that is a change in the
      ownership, a change in the effective control or a change in the ownership
      of a substantial portion of the assets of the Company, all as defined in
      IRS regulations under Code Section 409A, provided that such change also
      satisfies one of the following:

            

    

     

    
      	
               
      

            	
              i.

            	
              a
      change of a nature that would be required to be reported in response to
      Item 6(e) of Schedule 14A of Regulation 14A or to
      Item 5.01 of Form 8-K promulgated under the Securities Exchange
      Act of 1934, as amended;

            

    

     

    
      	
               
      

            	
              ii.

            	
              any
      “person” (as such term is used in Sections 13(d) and 14(d)(2) of such
      Act) is or becomes the beneficial owner, directly or indirectly, of
      securities of the Company representing 30% or more of the combined voting
      power of the Company’s then outstanding securities;
  or

            

    

     

    
      
        
        

      

      
        Exhibit
4.37 - Page 5

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              iii.

            	
              during
      any period of twenty-four (24) consecutive months, individuals who at the
      beginning of such period constitute the Board of Directors of the Company
      cease for any reason to constitute at least a majority thereof unless the
      election, or the nomination for election by the Company’s shareholders, of
      each new director was approved by a vote of at least two-thirds of the
      directors then still in office who were directors at the beginning of the
      period.

            

    

     

    

    
      	
               
      

            	
              (f)

            	
              Authorized
      Shares.  An aggregate of 100,000 shares of Company Common
      Stock (subject to substitution or adjustment as provided below) shall be
      available for stock payments under this Plan.  Such shares may
      be authorized and unissued shares or may be treasury shares. In the event
      of any change in the Common Stock of the Company by reason of any stock
      dividend, recapitalization, reorganization, merger, consolidation,
      split-up, combination, or exchange of shares, or rights offering to
      purchase Common Stock at a price substantially below fair market value, or
      of any similar change affecting the Common Stock, the number and kind of
      shares which thereafter are available for stock payments under the Plan
      shall be appropriately adjusted consistent with such change in such manner
      as the Committee may deem equitable to prevent substantial dilution or
      enlargement of the rights granted to, or available for, participants in
      the Plan.

            

    

     

    6.            Participant’s Rights
Unsecured

     

    The right
of any participant or, if applicable, the participant’s estate, to receive
benefits under the provisions of this Plan shall be an unsecured claim against
the general assets of the Company.  Any amounts held in an Account,
including amounts that may be set aside by the Company for the purpose of
meeting its obligations under this Plan, are a part of the Company’s general
assets and shall be reachable by the general creditors of the
Company.

     

    7.            Statement of
Account

     

    Statements
will be sent to participants no less frequently than annually setting forth the
value of their Accounts.

     

    8.            Transferability

     

    The
rights of a participant under this Plan shall not be transferable other than by
will or by the laws of descent and distribution and are exercisable during the
participant’s lifetime only by the participant or by his guardian or legal
representative.

     

    
      
        
        

      

      
        Exhibit
4.37 - Page 6

        
          

        

      

      
        
        

      

    

     

    9.            Plan
Administrator

     

    The
administrator of this Plan shall be a Committee of the Board of Directors of the
Company from time to time designated by the Board.  The Committee’s
members shall not be employees of the Company.  The Committee shall
have the authority to adopt rules and regulations for carrying out the Plan and
to interpret, construe and implement the provisions of the Plan.  The
Committee may delegate some or all of its functions to another person as it may
deem appropriate.  The Board of Directors has designated the
Management and Directors Committee of the Board of Directors as administrator of
the Plan until further notice.

     

    10.            Amendment

     

    This Plan
may at any time or from time to time be amended, modified or terminated by the
Company’s Board of Directors, , provided that any such amendment, modification
or termination shall comply with the requirements of Code Section
409A.  No amendment, modification or termination shall, without the
consent of a participant, adversely affect such participant’s accruals in his or
her Account.

     

    11.           Dividend Payment
Date

     

    In the
event that the Company does not pay a dividend on the Common Stock in any
calendar quarter, the Dividend Payment Date in that quarter for purposes of this
Plan shall be deemed to be the last day of February, May, August or November in
the relevant quarter, or if such date is not a business day, the next succeeding
business day.

     

    12.            Section
409A

     

    This Plan
shall be governed by and subject to the requirements of Section 409A and shall
be interpreted and administered in accordance with that intent.  If
any provision of this Plan would otherwise conflict with or frustrate this
intent, that provision will be interpreted and deemed amended so as to avoid the
conflict.  The Committee reserves the right to take any action it
deems appropriate or necessary to comply with the requirements of Section 409A
and may take advantage of such transition rules under Section 409A as it deems
necessary or appropriate.

     

    13.            Governing
Law

     

    This Plan
and any participant elections hereunder shall be interpreted and enforced in
accordance with the laws of the State of New York.

     

    
      
        
        

      

      
        Exhibit
4.37 - Page 7

        
          

        

      

      
        
        

      

    

     

    14.            Effective
Date

     

    The
effective date of this Amended and Restated Plan is January 1,
2008.

     

    IN
WITNESS WHEREOF, the Company has caused its duly authorized officer to execute
this Plan document on its behalf this 14th  day of December,
2007.

     

    
      	 
      	 
      	
              HOME
      PROPERTIES, INC.

               

            
	 
      	
              By:

            	
              /s/
      Ann M. McCormick

            
	 
      	
              Its:

            	
              Executive
      Vice President

            

    

     

    
      
         

      

      
        Exhibit
4.37 - Page 8

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