Document:

Exhibit 10.1

Exhibit 10.1

Colonial Properties Trust

2009 Annual Incentive Plan

On April 21, 2009, the Compensation Committee of the Company’s Board of Trustees adopted an
annual incentive plan for 2009 and set the specific performance goals and business criteria for the
award of 2009 bonus payments to the Named Executive Officers. Such bonuses are expected to be paid
after the first quarter of 2010. The intent of the performance goals and business criteria of this
plan is to better align the Company’s executive management team to the interests of the Company’s
investors. The performance goals and business criteria for 2009 are based on the following:

	 	•	 	The “total return” for the Company for the year (the “absolute performance
measure”);
	 
	 	•	 	One-year “total return” for the Company as compared to an index of comparable
REITs (a “relative performance measure”); and
	 
	 	•	 	Two-year “total return” for the Company as compared to an index of comparable
REITs (a “relative performance measure”).

For purposes of the 2009 annual incentive plan, “total return” is equal to the share price of
the Company (or the companies in the index of comparable REITs, as the case may be) plus any
dividends reinvested in the Company (or the companies in the index of comparable REITs) calculated
based on reinvestment on the dividend pay date.

The Company’s absolute performance measure must be positive for the plan year for any payout
to occur; however, (a) if the absolute performance measure is negative but the Company’s total
return is at least at the “median” level of performance when compared to the one-year “total
return” relative performance measure, the Compensation Committee has discretion to pay up to 20% of
the payout calculated based on the relative performance measures’ results, and (b) if the absolute
performance measure is positive and the Company’s total return is at least at the “median” level of
performance when compared to the one-year “total return” relative performance measure, the
Compensation Committee has the discretion to increase the award amount up to 20% of the payout
calculated based on the relative performance measures’ results.

The first 75% of each annual incentive award is automatically paid in time-vested restricted
common shares (which vest annually over three years). The Named Executive Officers may elect to
receive any or all of the remaining 25% of their annual incentive award in restricted common
shares. However, any discretionary bonus paid if the Company’s total return is negative will be
paid solely in restricted shares, which will vest on the third anniversary of the date of grant.
One-half of the restricted shares issued under the annual incentive plan are subject to a five-year
holding period. The Named Executive Officers will receive shares having a market value on the award
date equal to 140% of the sum of the amount required to be paid in restricted shares and the cash
amount elected to be received in restricted shares (i.e., an additional 40% in restricted common
shares).

The amounts actually payable to the Named Executive Officers are determined based on whether
Company performance meets the “threshold,” “median,” “target” or “maximum” level for the relative
performance measures. For each relative performance measure, the “threshold” level is the
25th percentile, the “median” level is the 50th percentile, the “target”
level is the 75th percentile and the “maximum” level is the 90th percentile.
The relative performance measures are weighted equally, i.e., 50% of any payout is based on the
one-year relative performance measure and 50% of any payout is based on the two-year relative
performance measure. For the 2009 annual incentive plan, the performance payout thresholds were set
as follows:

	 	•	 	for the Chairman/Chief Executive Officer, the President/Chief Financial Officer
and the Chief Operating Officer, the “threshold” level pays at a maximum of 1% of base
salary, the “median” level pays at a maximum of 100% of base salary, the “target” level
pays at a maximum of 200% of base salary, and the “maximum” level pays at a maximum of
300% of base salary; and
	 
	 	•	 	for the Chief Administrative Officer, the “threshold” level pays at a maximum
of 1% of base salary, the “median” level pays at a maximum of 50% of base salary, the
“target” level pays at a maximum of 100% of base salary, and the “maximum” level pays
at a maximum of 150% of base salary.

 

 

With the Company’s shift to a multifamily-focused REIT, the Compensation Committee adopted a
peer group comprised solely of Multifamily REITs for purposes of calculating the relative
performance measures under the 2009 annual incentive plan. The following peer group was selected by
the Compensation Committee for calculating both relative performance measures:

Apartment Investment & Management

Associated Estates Realty Corp.

Avalon Bay Communities, Inc.

BRE Properties, Inc.

Camden Property Trust

Equity Residential

Essex Property Trust, Inc.

Home Properties, Inc.

Mid-America Apartment Communities, Inc.

Post Properties, Inc.

United Dominion Realty Trust, Inc.

For 2009, the Compensation Committee determined that long-term incentive compensation for the
Company’s Named Executive Officers would continue to be provided through a combination of share
options and restricted share awards. Amounts awarded are expected to equal 100% of the Named
Executive Office’s actual annual incentive award for the year (if any) in an equal split between
option shares (which vest on the third anniversary of the date of grant) and restricted shares
(which vest over five years, subject to a five-year holding period). All shares issued under the
2009 annual incentive plan and options or restricted shares issued as long-term incentive awards
are expected to be issued under the Company’s 2008 Omnibus Incentive Plan.Unassociated Document

 

Exhibit 4.1

 

EXECUTION VERSION

 

AMENDMENT NO. 1

 

TO

 

RIGHTS AGREEMENT

 

AMENDMENT NO. 1, dated as of August 3, 2009 (this “Amendment No. 1”), to the Rights Agreement (the “Rights Agreement”), dated as of May 18, 2009, between THE PEPSI BOTTLING GROUP, INC., a
Delaware corporation (the “Company”), and MELLON INVESTOR SERVICES LLC, a New Jersey limited liability company, as Rights Agent (the “Rights Agent”). Capitalized terms used in this Amendment No. 1 but not otherwise defined herein shall have the meanings ascribed to such terms in the Rights Agreement.

 

WHEREAS, the Company and the Rights Agent entered into the Rights Agreement specifying the terms of the Rights (as defined therein);

 

WHEREAS, the Company, PepsiCo, Inc., a North Carolina corporation (“PepsiCo”) and Pepsi-Cola Metropolitan Bottling Company, Inc., a New Jersey corporation wholly owned by PepsiCo, have proposed to enter into an Agreement and Plan of Merger to be dated the date hereof
(the “Merger Agreement”);

 

WHEREAS, the Board of Directors of the Company desires to amend the Rights Agreement to render the Rights inapplicable to the Merger (as defined in the Merger Agreement) and the other transactions contemplated by the Merger Agreement;

 

WHEREAS, the Company deems this Amendment to be advisable and in the best interests of the holders of the Rights (including, prior to the Distribution Date, registered holders of the Common Shares and the Class B Common Shares) and at a duly convened meeting the Company’s Board of Directors has duly approved this Amendment;

 

WHEREAS, pursuant to Section 26 of the Rights Agreement, at any time prior to the time any Person becomes an Acquiring Person, and subject to certain exceptions set forth therein (and the discretion of the Rights Agent in the case of amendments or supplements affecting the Agent’s own rights, duties, obligations or immunities under the
Rights Agreement), the Company may, and the Rights Agent shall if the Company so directs, supplement or amend any provision of this Rights Agreement in any manner which the Company may deem necessary or desirable (including the date on which the Expiration Date shall occur) without the approval of any holder of the Rights;

 

WHEREAS, no Person has become an Acquiring Person as of the date hereof;

 

WHEREAS, pursuant to Section 26 of the Rights Agreement, the Company has delivered to the Rights Agent a certificate signed by the Vice President, Associate General Counsel and Assistant Secretary of the Company certifying that Amendment No. 1 complies with Section 26;

 

WHEREAS, the Company desires to amend the Rights Agreement in accordance with Section 26 of the Rights Agreement as set forth herein;

 

 

 

 

 

 

 

NOW, THEREFORE, in consideration of the premises and mutual agreements set forth in the Rights Agreement and this Amendment, the parties hereby agree as follows:

 

	
1.    
	
Section 1 of the Rights Agreement is hereby amended by adding the following terms in the appropriate alphabetical order:

 

“Effective Time”  shall have the meaning ascribed to such term in the Merger Agreement.

 

“Exempted Transaction”  shall have the meaning set forth in the definition of Acquiring Person, as amended herein.

 

“Merger” shall have the meaning ascribed to such term in the Merger Agreement.

 

“Merger Agreement” shall mean the Agreement and Plan of Merger dated as of August 3, 2009 by and among the Company, PepsiCo, Inc. and Merger Subsidiary.

 

“Merger Subsidiary” shall mean Pepsi-Cola Metropolitan Bottling Company, Inc, a New Jersey corporation wholly owned by PepsiCo.

 

“Parent Group”  shall have the meaning set forth in the definition of Acquiring Person, as amended herein.

 

	
2.    
	
The definition of “Acquiring Person”, as set forth in Section 1 of the Rights Agreement is hereby amended by inserting the following at the end of such definition:

 

“Notwithstanding anything to the contrary set forth in this definition or in this Agreement, neither PepsiCo, Inc., Merger Subsidiary nor any Subsidiary (as such term is defined in the Merger Agreement) of PepsiCo, Inc. (collectively, the ‘Parent Group’) shall
be, or shall be deemed to be, an Acquiring Person, either individually or collectively, solely by virtue of (A) the approval, execution, delivery or amendment of the Merger Agreement; (B) the public announcement of the Merger Agreement or the Merger; (C) the consummation of the Merger; or (D) the consummation of the other transactions contemplated by the Merger Agreement.  Each event described in clauses (A), (B), (C) and (D) above is referred to herein as an ‘Exempted
Transaction.’”

 

	
3.    
	
The definitions of “Beneficial Owner”, “beneficially own” and “Beneficial Ownership” set forth in Section 1 of the Rights Agreement
are hereby amended by inserting the following at the end of such definitions:

 

“Notwithstanding anything to the contrary set forth in this definition or in this Agreement, the Parent Group, either individually or collectively, shall not be deemed to be a ‘Beneficial Owner’ of, to have ‘Beneficial Ownership’ of, or to ‘beneficially own’, any securities solely by virtue of or
as a result of any Exempted Transaction.”

 

 

 

2

 

 

 

	
4.    
	
The definition of “Expiration Date” set forth in Section 1 of the Rights Agreement is hereby amended to read in its entirety:

 

“‘Expiration Date’ shall mean the earlier of (a) the Close of Business on the first anniversary of the date of this Rights Agreement and (b) the point in time immediately prior to the Effective Time, but only if such Effective Time shall occur”.

 

	
5.    
	
The definition of “Distribution Date” set forth in Section 3(b) of the Rights Agreement is hereby amended to read in its entirety:

 

“the Close of Business on the earlier of such dates being the “Distribution Date, provided that, notwithstanding anything to the contrary in this Section 3(b) or in this Agreement, a Distribution Date shall not be deemed to have occurred by virtue of or as a result
of any Exempted Transaction or the public announcement thereof.”

 

	
6.    
	
Section 28 of the Rights Agreement is hereby amended to add the following sentence at the end thereof:

 

“(d)  Nothing in this Agreement shall be construed to give any holder of Rights (including, prior to the Distribution Date, registered holders of the Common Shares or Class B Common Shares) or any Person any legal or equitable right, remedy or claim under this Agreement by virtue of or in connection with any Exempted Transaction.”

 

	
7.    
	
Section 24 of the Rights Agreement is hereby amended to add the following sentence at the end thereof:

 

“(c)  At the Expiration Date, (i) this Agreement shall be terminated and be without any further force or effect, (ii) none of the parties to this Agreement will have any rights, obligations or liabilities hereunder and (iii) the holders of the Rights (including, prior to the Distribution Date, registered holders of the Common
Shares or Class B Common Shares) shall not be entitled to any benefits, rights or other interests under this Agreement, including, without limitation, the right to purchase or otherwise acquire any securities of the Company.”

 

	
8.    
	
The Company shall give the Rights Agent reasonable advance notice of the Effective Time; provided, however, that if the Company is the surviving corporation under the Merger Agreement, the Company shall give the Rights Agent prompt written notice of the Effective Time.

 

	
9.    
	
The Exhibits to the Rights Agreement shall be deemed restated to reflect this Amendment No. 1, mutatis mutandis.

 

	
10.  
	
The term “Agreement” as used in the Rights Agreement shall be deemed to refer to the Rights Agreement as amended hereby.

 

 

 

3

 

 

 

	
11.  
	
This Amendment shall be effective upon execution by the parties hereto and, except as set forth herein, the Rights Agreement shall remain in full force and effect and shall be otherwise unaffected hereby.

 

	
12.  
	
This Amendment may be executed in any number of counterparts and each of such counterpart shall for all purposes be deemed to be an original, and all such counterparts shall together constitute one and the same instrument.

 

	
13.  
	
The Rights Agent shall not be subject to, nor be required to interpret or comply with, nor determine if any Person has complied with, the Merger Agreement, even though reference thereto may be made in this Amendment No. 1 or the Rights Agreement.

 

	
14.  
	
By its execution and delivery hereof, the Company directs the Rights Agent to execute this Amendment.

 

 

 

4

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written.

 

 

 

	
THE PEPSI BOTTLING GROUP, INC.,

	 
	
by

	  	  /s/ David Yawman
	  	
Name: David Yawman

	  	
Title: V.P. Associate General Counsel & Assistant Secretary

	
MELLON INVESTOR SERVICES LLC,

	
as Rights Agent

 

	
by

	  	  /s/ Vincent C. Graffeo
	  	
Name: Vincent C. Graffeo           

	  	
Title: Vice President

 

[Amendment No. 1 to Rights Agreement]

 

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