Document:

exv10w35

 

Exhibit 10.35

HINES REAL ESTATE INVESTMENT TRUST, INC.

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is entered into as of November 30, 2004, by
and between Hines Real Estate Investment Trust, Inc. (the “Company”), a Maryland corporation, and
Frank R. Apollo (the “Indemnitee”).

     WHEREAS, the Indemnitee is an officer or a member of the Board of Directors of the Company and
in such capacity is performing a valuable service for the Company;

     WHEREAS, the law of the Company’s state of organization permits the Company to enter into
contracts with its officers or members of its Board of Directors with respect to indemnification of
such persons; and

     WHEREAS, to induce the Indemnitee to continue to provide services to the Company as an officer
or a member of the Board of Directors, and to provide the Indemnitee with specific contractual
assurance that indemnification will be available to the Indemnitee regardless of, among other
things, any amendment to or revocation of the Company’s Amended and Restated Articles of
Incorporation (“Articles of Incorporation”), or any acquisition transaction relating to the
Company, the Company desires to provide the Indemnitee with protection against personal liability.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and the Indemnitee hereby agree as follows:

ARTICLE I

DEFINITIONS

          As used herein, the following words and terms shall have the following respective meanings:

     (A) “Change in Control” shall mean a change in the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of the Company, or any
successor in interest thereto, whether through the ownership of voting securities, by contract or
otherwise, including but not limited to a change which would be required to be reported under Item
6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934 as in
effect on the date hereof (the “Exchange Act”) or as may otherwise be determined pursuant to a
resolution of the Board of Directors. A rebuttable presumption of a Change in Control shall be
created by any of the following which first occur after the date hereof and the Company shall have
the burden of proof to overcome such presumption:

          i. the ability of any “Person” (as such term is defined in Sections 13(d) and 14(d) of the
Exchange Act) together with an “Affiliate” or “Associate” (as defined in Rule 12b-2 of the Exchange
Act) or “Group” (within the meaning of Section 13(d)(3) of the Exchange Act)

1

 

to exercise or direct the exercise of 20% or more of the combined voting power of all
outstanding shares of beneficial interest of the Company in the election of its directors
(“Interested Party”) (provided, however, “Interested Party” shall not include an agent, broker,
nominee, custodian or director, solely in their capacity as such, for one or more persons who do
not individually or as a group possess such power),

          ii. during any period of two consecutive years, 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 of each director who was not a director at the beginning of
such period has been approved in advance by the directors representing two-thirds of the directors
then in office who were the directors at the beginning of the period,

          iii. the approval of the shareholders of the Company of:

               (a) a merger or consolidation of the Company with any Interested Party,

               (b) any sale, lease, exchange, mortgage, pledge, transfer, or other disposition, to or with
any Interested Party in any transaction or series of transactions, of the Company’s assets or the
assets of any subsidiary of the Company having a market value equal to 30% or more of the aggregate
market value of all assets of the Company determined on a consolidated basis, all outstanding
shares of beneficial interest of the Company, or the earning power or net income of the Company,
determined on a consolidated basis,

               (c) the issuance or transfer by the Company, or any subsidiary thereof, to any Interested
Party in any transaction or a series of transactions, of capital securities with a value equal to
5% or more of the aggregate market value of the then outstanding voting shares of beneficial
interest of the Company other than the issuance or transfer of such shares of beneficial interest
to all the Company shareholders on a pro rata basis,

               (d) the adoption of any plan or proposal for the partial or complete liquidation or
dissolution of the Company proposed by an Interested Party or pursuant to any agreement,
arrangement or understanding, whether or not in writing, with any Interested Party,

               (e) any reclassification of securities, including, without limitation, any share split, share
dividend, or other distributions of shares, or any reverse share split, recapitalization of the
Company, or any merger or consolidation of the Company with any subsidiary thereof, or any other
transaction proposed by, or pursuant to, any agreement, arrangement, or understanding, whether or
not in writing, with any Interested Party which has the effect, directly or indirectly, of
increasing the proportionate voting shares of beneficial interest of the Company directly or
indirectly owned by any such Interested Party, or

          iv. any receipt by any Interested Party, directly or indirectly, of any loans, advances,
guarantees, pledges or other financial assistance, or any tax credits or other tax

2

 

advantages provided by or through the Company other than the receipt of such advantages which
are provided to all the Company shareholders on a pro rata basis.

     (B) “Corporate Status” describes the status of a person who is or was a director, officer,
employee, agent or fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise (whether conducted for profit or not for
profit) which such person is or was serving at the request of the Company.

     (C) “Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding (as hereinafter defined) in respect of which indemnification is sought by the
Indemnitee.

     (D) “Effective Date” means the date of this Agreement as set forth above.

     (E) “Expenses” shall include all attorney and paralegal fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.

     (F) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past two years has been, retained
to represent (i) the Company or the Indemnitee in any matter material to either such party, or (ii)
any other party to the Proceeding giving rise to a claim for indemnification hereunder.

     (G) “Proceeding” includes any action, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing, or any other proceeding, including appeals
therefrom, whether civil, criminal, administrative, or investigative, except one initiated by the
Indemnitee pursuant to Article VIII of this Agreement to enforce such Indemnitee’s rights under
this Agreement.

ARTICLE II

INDEMNIFICATION

     (A) The Indemnitee shall be entitled to the rights of indemnification provided in this Article
II and under applicable law, the Articles of Incorporation, the Company’s Bylaws, any agreement, a
vote of shareholders or resolution of the Board of Directors or otherwise if, by reason of such
Indemnitee’s Corporate Status, such Indemnitee is, or is threatened to be made, a party to any
threatened, pending, or completed Proceeding, including a Proceeding by or in the right of the
Company. Unless prohibited by Article XIII hereof, the Indemnitee shall be indemnified against
Expenses, judgments, penalties, fines, and settlement amounts actually and reasonably incurred by
or on behalf of such Indemnitee in connection with such Proceeding or any claim, issue or matter
therein.

3

 

     (B) Notwithstanding paragraph 2(A) above, the Company shall not indemnify any Indemnitee that
is a member of the Board of Directors or an Affiliate (as such term is defined in the Articles of
Incorporation) of the Company unless all of the following conditions are met:

          i. the Indemnitee determined, in good faith, that the course of conduct which caused the loss
or liability was in the best interests of the Company; and

          ii. the Company shall not indemnify or hold harmless the Indemnitee if: (1) in the case that
the Indemnitee is a member of the Board of Directors, other than an Independent Director (as such
term is defined in the Articles of Incorporation), the loss or liability was the result of
negligence or misconduct by the Indemnitee, or (2) in the case that the Indemnitee is an
Independent Director, the loss or liability was the result of gross negligence or willful
misconduct by the Indemnitee.

     (C) Notwithstanding paragraphs 2(A) and 2(B) above, the Company shall not provide
indemnification for any loss, liability or expense arising from or out of an alleged violation of
federal or state securities laws by an Indemnitee that is a member of the Board of Directors or an
Affiliate of the Company unless at least one of the following conditions are met:

          i. there has been a successful adjudication on the merits of each count involving alleged
securities law violations as to the Indemnitee;

          ii. such claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to the Indemnitee; or

          iii. a court of competent jurisdiction approves a settlement of the claims against the
Indemnitee and finds that indemnification of the settlement and the related costs should be made,
and the court considering the request for indemnification has been advised of the position of the
Securities and Exchange Commission and of the published position of any state securities regulatory
authority in which securities of the Company were offered or sold as to indemnification for
violations of securities laws.

     (D) Any indemnification of expenses under this Agreement may be paid only out of the Net
Assets (as such term is defined in the Articles of Incorporation) of the Company and no portion may
be recoverable from the shareholders of the Company.

ARTICLE III

EXPENSES OF A SUCCESSFUL PARTY

     Without limiting the effect of any other provision of this Agreement, to the extent that the
Indemnitee is, by reason of such Indemnitee’s Corporate Status, a party to and is successful, on
the merits or otherwise, in any Proceeding pursuant to a final non-appealable order, such
Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by or on
behalf of such Indemnitee in connection therewith. If the Indemnitee is not wholly successful in
such Proceeding pursuant to a final non-appealable order but is successful, on the merits or

4

 

otherwise, as to one or more but less than all claims, issues, or matters in such Proceeding
pursuant to a final non-appealable order, the Company shall indemnify the Indemnitee against all
Expenses actually and reasonably incurred by or on behalf of such Indemnitee in connection with
each successfully resolved claim, issue or matter. For purposes of this Article III and without
limitation, the termination of any claim, issue or matter in such Proceeding by dismissal, with or
without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

ARTICLE IV

WITNESS EXPENSES

     Notwithstanding any other provision of this Agreement, to the extent that the Indemnitee is,
by reason of such Indemnitee’s Corporate Status, a witness for any reason in any Proceeding to
which such Indemnitee is not a party, such Indemnitee shall be indemnified against all Expenses
actually and reasonably incurred by or on behalf of such Indemnitee in connection therewith.

ARTICLE V

ADVANCES

     (A) The Company shall advance all reasonable Expenses incurred by or on behalf of the
Indemnitee in connection with any Proceeding within 20 days after the receipt by the Company of a
statement from the Indemnitee requesting such advance from time to time, whether prior to or after
final disposition of such Proceeding. Such statement shall reasonably evidence the Expenses
incurred by the Indemnitee.

     (B) Notwithstanding paragraph 5(A) above, the Company shall not advance any Expenses incurred
by or on behalf of the Indemnitee as a result of any Proceeding unless all of the following
conditions are satisfied:

          i. the Proceeding relates to acts or omissions with respect to the performance of duties or
services on behalf of the Company;

          ii. the Proceeding is initiated by a third party who is not a shareholder of the Company or
the Proceeding is initiated by a shareholder of the Company acting in his or her capacity as such
and a court of competent jurisdiction specifically approves such advancement; and

          iii. the Indemnitee undertakes to repay the advanced funds to the Company, together with the
applicable legal rate of interest thereon, in cases in which the Indemnitee is found not to be
entitled to indemnification.

5

 

ARTICLE VI

DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION

     (A) To obtain indemnification under this Agreement, the Indemnitee shall submit to the Company
a written request, including therewith such documentation and information reasonably necessary to
determine whether and to what extent the Indemnitee is entitled to indemnification.

     (B) Upon such written request pursuant to paragraph 6(A), a determination with respect to the
Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control
shall have occurred, by Independent Counsel in a written opinion to the Board of Directors, a copy
of which shall be delivered to the Indemnitee (unless the Indemnitee shall request that such
determination be made by the Board of Directors or the shareholders of the Company, in which case
by the person or persons or in the manner provided in clauses (ii) or (iii) of this paragraph (B));
(ii) if a Change in Control shall not have occurred, (A) by the Board of Directors by a majority
vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board of
Directors consisting of Disinterested Directors is not obtainable, or, even if obtainable, if such
quorum of Disinterested Directors so directs, by Independent Counsel in a written opinion to the
Board of Directors, a copy of which shall be delivered to the Indemnitee, or (C) by the
shareholders of the Company; or (iii) as provided in paragraph 7(B) of this Agreement. If it is so
determined that the Indemnitee is entitled to indemnification, payment to the Indemnitee shall be
made within 10 days after such determination.

     (C) The Indemnitee shall cooperate with the person or entity making such determination with
respect to the Indemnitee’s entitlement to indemnification, including providing upon reasonable
advance request any documentation or information which is not privileged or otherwise protected
from disclosure and which is reasonably available to the Indemnitee and reasonably necessary to
such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred
by the Indemnitee in so cooperating shall be borne by the Company (irrespective of the
determination as to the Indemnitee’s entitlement to indemnification) and the Company hereby
indemnifies and agrees to hold the Indemnitee’s harmless therefrom.

     (D) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to paragraph 6(B) hereof, the Independent Counsel shall be selected as
provided in this paragraph 6(D). If a Change in Control shall not have occurred, the Independent
Counsel shall be selected by the Board of Directors, and the Company shall give written notice to
the Indemnitee advising such Indemnitee of the identity of the Independent Counsel so selected. If
a Change in Control shall have occurred, the Independent Counsel shall be selected by the
Indemnitee (unless the Indemnitee shall request that such selection be made by the Board of
Directors, in which event the preceding sentence shall apply), and the Indemnitee shall give
written notice to the Company advising it of the identity of the Independent Counsel so selected.
In either event, the Indemnitee, or the Company, as the case may be, may, within seven days after
such written notice of selection shall have been given, deliver to the Company or to the
Indemnitee, as the case may be, a written objection to such selection. Such objection may be

6

 

asserted only on the grounds that the Independent Counsel so selected does not meet the
requirements of “Independent Counsel” as defined in Article I of this Agreement. If such written
objection is made, the Independent Counsel so selected may not serve as Independent Counsel until a
court has determined that such objection is without merit. If, within 20 days after submission by
the Indemnitee of a written request for indemnification pursuant to paragraph 6(A) hereof, no
Independent Counsel shall have been selected or, if selected, shall have been objected to, either
the Company or the Indemnitee may petition a court for resolution of any objection which shall have
been made by the Company or the Indemnitee to the other’s selection of Independent Counsel and/or
for the appointment as Independent Counsel of a person selected by the court or by such other
person as the court shall designate, and the person with respect to whom an objection is so
resolved or the person so appointed shall act as Independent Counsel under paragraph 6(B) hereof.
The Company shall pay all reasonable fees and expenses of Independent Counsel incurred in
connection with acting pursuant to paragraph 6(B) hereof, and all reasonable fees and expenses
incident to the selection of such Independent Counsel pursuant to this paragraph 6(D). In the
event that a determination of entitlement to indemnification is to be made by Independent Counsel
and such determination shall not have been made and delivered in a written opinion within 90 days
after the receipt by the Company of the Indemnitee’s request in accordance with paragraph 6(A),
upon the due commencement of any judicial proceeding in accordance with paragraph 8(A) of this
Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in
such capacity.

ARTICLE 7

PRESUMPTIONS

     (A) In making a determination with respect to entitlement or indemnification hereunder, the
person or entity making such determination shall presume that the Indemnitee is entitled to
indemnification under this Agreement and the Company shall have the burden of proof to overcome
such presumption.

     (B) If the person or entity making the determination whether the Indemnitee is entitled to
indemnification shall not have made a determination within 60 days after receipt by the Company of
the request therefore, the requisite determination of entitlement to indemnification shall be
deemed to have been made and the Indemnitee shall be entitled to such indemnification, absent: (i)
a misstatement by the Indemnitee of a material fact, or an omission of a material fact necessary to
make the Indemnitee’s statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable law. Such 60-day
period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or
entity making said determination in good faith requires additional time for the obtaining or
evaluating of documentation and/or information relating thereto. The foregoing provisions of this
paragraph 7(B) shall not apply: (i) if the determination of entitlement to indemnification is to
be made by the shareholders and if within 15 days after receipt by the Company of the request for
such determination the Board of Directors resolves to submit such determination to the shareholders
for consideration at an annual or special meeting thereof to be held within 75 days after such
receipt and such determination is made at such

7

 

meeting, or (ii) if the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to paragraph 6(B) of this Agreement.

     (C) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement, or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
the Indemnitee to indemnification.

ARTICLE VIII

REMEDIES

     (A) In the event that: (i) a determination is made that the Indemnitee is not entitled to
indemnification under this Agreement, or (ii) advancement of Expenses is not timely made pursuant
to this Agreement, or (iii) payment of indemnification due the Indemnitee under this Agreement is
not timely made, the Indemnitee shall be entitled to an adjudication in an appropriate court of
competent jurisdiction of such Indemnitee’s entitlement to such indemnification or advancement of
Expenses.

     (B) In the event that a determination shall have been made pursuant to this Agreement that the
Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this
Article VIII shall be conducted in all respects as a de novo trial, on the merits and the
Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial
proceeding or arbitration commenced pursuant to this Article VIII, the Company shall have the
burden of proving that the Indemnitee is not entitled to indemnification or advancement of
Expenses, as the case may be.

     (C) If a determination shall have been made or deemed to have been made pursuant to this
Agreement that the Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding commenced pursuant to this Article VIII, absent: (i) a
misstatement by the Indemnitee of a material fact, or an omission of a material fact necessary to
make the Indemnitee’s statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable law.

     (D) The Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Article VIII that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such court that the Company is bound by all the
provisions of this Agreement.

     (E) In the event that the Indemnitee, pursuant to this Article VIII, seeks a judicial
adjudication of such Indemnitee’s rights under, or to recover damages for breach of, this
Agreement, if successful in whole or in part, the Indemnitee shall be entitled to recover from the
Company, and shall be indemnified by the Company against, any and all Expenses actually and
reasonably incurred by such Indemnitee in such judicial adjudication.

8

 

ARTICLE IX

ESTABLISHMENT OF TRUST

     In the event of a Change in Control, the Company shall, upon written request by the
Indemnitee, create a trust for the benefit of the Indemnitee (“Trust”) and from time-to-time upon
written request by the Indemnitee, shall fund such Trust in an amount sufficient to satisfy any and
all Expenses, judgments, penalties, fines and settlement amounts actually and reasonably incurred
by or on behalf of such Indemnitee or claimed, reasonably anticipated or proposed to be paid in
accordance with the terms of this Agreement. The amount to be deposited in the Trust pursuant to
the foregoing funding obligation shall be determined by Independent Counsel. The terms of the
Trust shall provide that upon a Change in Control: (i) the Trust shall not be revoked or the
principal thereof invaded, without the prior written consent of the Indemnitee, (ii) the trustee of
the Trust (“Trustee”) shall advance, within two business days of a request by the Indemnitee and in
accordance with Article V of this Agreement, any and all Expenses to the Indemnitee, (iii) the
Trust shall continue to be funded by the Company in accordance with the funding obligation set
forth above, (iv) the Trustee shall promptly pay to the Indemnitee all amounts for which the
Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise, and (v)
all unexpended funds in such Trust shall revert to the Company upon a final determination by
Independent Counsel that the Indemnitee has been fully indemnified under the terms of this
Agreement. The Trustee shall be chosen by the Indemnitee and agreed to by the Company. Nothing in
this Article IX shall relieve the Company of any of its obligations under this Agreement.

ARTICLE X

NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE SUBROGATION

     (A) The rights of indemnification and to receive advancement of Expenses as provided by this
Agreement shall not be deemed exclusive of any other rights to which the Indemnitee may at any time
be entitled under applicable law, the Articles of Incorporation, the Company’s Bylaws, any
agreement, a vote of shareholders or a resolution of the Board of Directors, or otherwise. No
amendment, alteration or repeal of this Agreement or any provision hereof shall be effective as to
the Indemnitee with respect to any action taken or omitted by the Indemnitee as a member of the
Board of Directors prior to such amendment, alteration or repeal.

     (B) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors of the Company, the Indemnitee shall be covered by such policy or
policies in accordance with its or their terms to the maximum extent of the coverage available and
upon any “Change in Control” the Company shall obtain continuation and/or “tail” coverage for the
Indemnitee to the maximum extent obtainable on commercially reasonable terms at such time.

     (C) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all
papers required and take all actions necessary to secure such rights, including

9

 

execution of such documents as are necessary to enable the Company to bring suit to enforce
such rights.

     (D) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that the Indemnitee has otherwise actually
received such payment under any insurance policy, contract, agreement, or otherwise.

ARTICLE XI

CONTINUATION OF INDEMNITY

     All agreements and obligations of the Company contained herein shall continue during the
period the Indemnitee is an officer or a member of the Board of Directors of the Company and shall
continue thereafter so long as the Indemnitee shall be subject to any threatened, pending or
completed Proceeding by reason of such Indemnitee’s Corporate Status and during the period of
statute of limitations for any act or omission occurring during the Indemnitee’s term of Corporate
Status. No legal action shall be brought and no cause of action shall be asserted by or on behalf
of the Company against the Indemnitee, the Indemnitee’s spouse, heirs, executors or personal or
legal representatives after the expiration of two years from the date of accrual of such cause of
action, and any claim or cause of action of the Company shall be extinguished and deemed released
unless asserted by the timely filing of a legal action within such two-year period; provided,
however, that if any shorter period of limitations is otherwise applicable to any such cause of
action such shorter period shall govern. This Agreement shall be binding upon the Company and its
successors and assigns and shall inure to the benefit of the Indemnitee and such Indemnitee’s
heirs, executors and administrators.

ARTICLE XII

SEVERABILITY

     If any provision or provisions of this Agreement shall be held to be invalid, illegal, or
unenforceable for any reason whatsoever, (i) the validity, legality, and enforceability of the
remaining provisions of this Agreement (including, without limitation, each portion of any Article
of this Agreement containing any such provision held to be invalid, illegal, or unenforceable, that
is not itself invalid, illegal, or unenforceable) shall not in any way be affected or impaired
thereby, and (ii) to the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any Article of this Agreement containing any such provision
held to be invalid, illegal, or unenforceable, that is not itself invalid, illegal, or
unenforceable) shall be construed so as to give effect to the intent manifested by the provisions
held invalid, illegal, or unenforceable.

10

 

ARTICLE XIII

EXCEPTIONS TO RIGHT OF INDEMNIFICATION OR ADVANCEMENT OF EXPENSES

     Notwithstanding any other provisions of this Agreement, the Indemnitee shall not be entitled
to indemnification or advancement of Expenses under this Agreement: (i) with respect to any
Proceeding initiated by such Indemnitee against the Company other than a proceeding commenced
pursuant to Article VIII, or (ii) with respect to any Proceeding in which such Indemnitee’s act or
omission was material to the cause of action adjudicated and was committed in bad faith or was the
result of active and deliberate dishonesty, (iii) if the Indemnitee actually received an improper
personal benefit in money, property, or services, or (iv) as otherwise required by paragraphs 2(B)
and 2(C) of this Agreement.

ARTICLE XIV

HEADINGS

     The headings of the articles of this Agreement are inserted for convenience only and shall not
be deemed to constitute part of this Agreement or to affect the construction thereof.

ARTICLE XV

MODIFICATION AND WAIVER

     No supplement, modification, or amendment of this Agreement shall be binding unless executed
in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

ARTICLE XVI

NOTICE BY THE INDEMNITEE

     The Indemnitee agrees promptly to notify the Company in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information, or other document relating to any
Proceeding or matter which may be subject to indemnification or advancement of Expenses covered
hereunder.

ARTICLE XVII

NOTICES

     All notices, requests, demands, and other communications hereunder shall be in writing and
shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to
whom said notice or other communication shall have been directed, or (ii) mailed by

11

 

     certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed, if so delivered or mailed, as the case may be, to the following addresses:

     If to the Indemnitee, to the address set forth in the records of the Company.

	 	 	 	 	 
	 	If to the Company, to:

	 	Hines Real Estate Investment Trust, Inc.
	

	 	 	 	2800 Post Oak Boulevard, Suite 5000
	

	 	 	 	Houston, Texas 77056-6118
	

	 	 	 	Attn: President

or to such other address as may have been furnished to the Indemnitee by the Company or to the
Company by the Indemnitee, as the case may be.

ARTICLE XVIII

GOVERNING LAW

     The parties agree that this Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Maryland.

[signature page follows]

12

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
written above.

	 	 	 	 	 
	 	HINES REAL ESTATE INVESTMENT TRUST, INC.

 	 
	 	By:  	/s/ Charles N. Hazen 	 
	 	Name:  	Charles N. Hazen	 
	 	Title:  	President	 

	 	 	 	 	 
	 	INDEMNITEE

 	 
	 	/s/ Frank R. Apollo
 	 
	 	Name:  	Frank R. Apollo 	 
	 	 	 

13exv10w2

 

Exhibit 10.2

PERFICIENT, INC.

STOCK OPTION AGREEMENT

RECITALS

     A. Optionee is to render valuable services to the Corporation (or a Parent or
Subsidiary), and this Agreement is executed pursuant to the Corporation’s grant of an option to
Optionee.

     B. All capitalized terms in this Agreement shall have the meaning assigned to them
in the attached Appendix.

               NOW, THEREFORE, it is hereby agreed as follows:

               1. Grant of Option. The Corporation hereby grants to Optionee, as of the
Grant Date, an option to purchase up to the number of Option Shares specified in the Grant Notice.
The Option Shares shall be purchasable from time to time during the option term specified in
Paragraph 2 at the Exercise Price.

               2. Option Term. This option shall have a term of ten (10) years measured
from the Grant Date and shall accordingly expire at the close of business on the Expiration Date,
unless sooner terminated in accordance with Paragraph 5 or 6.

               3. Limited Transferability. Except as otherwise provided below, this option
shall be neither transferable nor assignable by Optionee other than by will or by the laws of
descent and distribution following Optionee’s death and may be exercised, during Optionee’s
lifetime, only by Optionee. This option may be assigned in whole or in part during Optionee’s
lifetime either as (i) as a gift to one or more members of Optionee’s Immediate Family, to a trust
in which Optionee and/or one or more such family members hold more than fifty percent (50%) of the
beneficial interest or an entity in which more than fifty percent (50%) of the voting interests are
owned by Optionee and/or one or more such family members, or (ii) pursuant to a domestic relations
order. The assigned portion shall be exercisable only by the person or persons who acquire a
proprietary interest in the option pursuant to such assignment. The terms applicable to the
assigned portion shall be the same as those in effect for this option immediately prior to such
assignment and shall be set forth in such documents issued to the assignee as the Board may deem
appropriate.

               4. Exercisability/Vesting. This option shall become exercisable for the
Option Shares in one or more installments as specified in the Grant Notice. As the option becomes
exercisable for such installments, those installments shall accumulate, and the option shall remain
exercisable for the accumulated installments until the Expiration Date or sooner termination of the
option term under Paragraph 5 or 6.

               5. Cessation of Service. The option term specified in Paragraph 2 shall
terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any
of the following provisions become applicable:

 

 

                         (i) Should Optionee cease to remain in Service for any reason (other than
death, Permanent Disability or Misconduct) while this option is outstanding, then
the period for exercising this option shall be limited to a three (3)-month period
measured from the date of such cessation of Service but in no event shall this
option be exercisable at any time after the Expiration Date.

                         (ii) Should Optionee die while holding this option, then the personal
representative of Optionee’s estate or the person or persons to whom the option is
transferred pursuant to Optionee’s will or in accordance with the laws of descent
and distribution shall have the right to exercise this option. Such right shall
lapse, and this option shall cease to be outstanding, upon the earlier of the expiration of the twelve
(12)-month period measured from the date of Optionee’s death or the Expiration Date.

                         (iii) Should Optionee cease Service by reason of Permanent Disability while
this option is outstanding, then the period for exercising this option shall be
limited to a twelve (12)-month period measured from the date of such cessation of
Service. In no event shall this option be exercisable at any time after the
Expiration Date.

                         (iv) Should Optionee’s Service be terminated for Misconduct, then this option
shall terminate immediately and cease to remain outstanding.

                         (v) During the limited period of post-Service exercisability, this option may
not be exercised in the aggregate for more than the number of Option Shares for
which this option is, at the time of Optionee’s cessation of Service, exercisable in
accordance with the Exercise Schedule specified in the Grant Notice or the special
acceleration provisions of Paragraph 6. Upon the expiration of such limited
exercise period or (if earlier) upon the Expiration Date, this option shall
terminate and cease to be outstanding for any Option Shares for which the option has
not been exercised. To the extent this option is not exercisable at the time of
Optionee’s cessation of Service, this option shall immediately terminate and cease
to be outstanding

                         (vi) In the event of a Corporate Transaction, the provisions of Paragraph 6
shall govern the period for which this option is to remain exercisable following
Optionee’s cessation of Service and shall supersede any provisions to the contrary
in this Paragraph.

               6. Special Acceleration and Termination of Option.

                    (a) Immediately prior to the effective date of a Corporate Transaction, the exercisability of
this option shall automatically accelerate so that this option shall become exercisable for all of
the Option Shares as fully-vested shares of Common Stock and may be exercised for any or all of
those Option Shares. No such accelerated exercisability of this option, however, shall occur if
and to the extent: (i) this option is, in connection with the Corporate

2.

 

Transaction, either to be
assumed by the successor corporation (or parent thereof) in the Corporate Transaction or (ii) this
option is to be replaced with a cash incentive program of the successor corporation which preserves
the spread existing on the Option Shares for which this option is not exercisable at the time of
the Corporate Transaction (the excess of the Fair Market Value of those Option Shares over the
Exercise Price payable for such shares) and provides for subsequent payout in accordance with the
Exercise Schedule.

                    (b) Immediately following the Corporate Transaction, this option shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation (or parent thereof) in
connection with the Corporate Transaction.

                    (c) If this option is assumed in connection with a Corporate Transaction, then this option
shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the
number and class of securities which would have been issuable to Optionee in consummation of such
Corporate Transaction had the option been exercised immediately prior to such Corporate
Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided
the aggregate Exercise Price shall remain the same.

                    (d) This Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

               7. Adjustment in Option Shares. Should any change be made to the Common
Stock by reason of any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding Common Stock as a class without the
Corporation’s receipt of consideration, appropriate
adjustments shall be made to (i) the total number and/or class of securities subject to this
option and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution
or enlargement of benefits hereunder.

               8. Stockholder Rights. The holder of this option shall not have any
stockholder rights with respect to the Option Shares until such person shall have exercised the
option, paid the Exercise Price and become the record holder of the purchased shares.

               9. Manner of Exercising Option.

                    (a) In order to exercise this option with respect to all or any part of the Option Shares for
which this option is at the time exercisable, Optionee (or any other person or persons exercising
the option) must take the following actions:

                         (i) Execute and deliver to the Corporation a Purchase Agreement for the Option
Shares for which the option is exercised.

                         (ii) Pay the aggregate Exercise Price for the purchased shares in one or more
of the following forms:

3.

 

                         (A) cash or check made payable to the Corporation; or

                         (B) a promissory note payable to the Corporation, but only to the
extent authorized by the Board in accordance with Paragraph 14.

               Should the Common Stock be registered under Section 12 of the 1934 Act
at the time the option is exercised, then the Exercise Price may also be
paid as follows:

                         (C) in shares of Common Stock held by Optionee (or any other person or
persons exercising the option) for the requisite period necessary to avoid a
charge to the Corporation’s earnings for financial reporting purposes and
valued at Fair Market Value on the Exercise Date; or

                         (D) through a special sale and remittance procedure pursuant to which
Optionee (or any other person or persons exercising the option) shall
concurrently provide irrevocable instructions to a Corporation-designated
brokerage firm to effect the immediate sale of the purchased shares and
remit to the Corporation, out of the sale proceeds available on the
settlement date, sufficient funds to cover the aggregate Exercise Price
payable for the purchased shares plus all applicable Federal, state and
local income and employment taxes required to be withheld by the Corporation
by reason of such exercise and to the Corporation to deliver the
certificates for the purchased shares directly to such brokerage firm in
order to complete the sale.

               Except to the extent the sale and remittance procedure is utilized in
connection with the option exercise, payment of the Exercise Price must
accompany the Purchase Agreement delivered to the Corporation in connection
with the option exercise.

                         (iii) Furnish to the Corporation appropriate documentation that the person or
persons exercising the option (if other than Optionee) have the right to exercise
this option.

                         (iv) Execute and deliver to the Corporation such written representations as may
be requested by the Corporation in order for it to comply with the applicable
requirements of Federal and state securities laws.

                         (v) Make appropriate arrangements with the Corporation (or Parent or Subsidiary
employing or retaining Optionee) for the satisfaction of all Federal, state and
local income and employment tax withholding requirements applicable to the option
exercise.

4.

 

                    (b) As soon as practical after the Exercise Date, the Corporation shall issue to or on behalf
of Optionee (or any other person or persons exercising this option) a certificate for the purchased
Option Shares, with the appropriate legends affixed thereto.

                    (c) In no event may this option be exercised for any fractional shares.

               10. TRANSFER RESTRICTIONS. ALL OPTION SHARES ACQUIRED UPON THE EXERCISE OF
THIS OPTION SHALL BE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER IN ACCORDANCE WITH THE TERMS
SPECIFIED IN THE PURCHASE AGREEMENT.

               11. Compliance with Laws and Regulations.

                    (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall
be subject to compliance by the Corporation and Optionee with all applicable requirements of law
relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National
Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and issuance.

                    (b) The inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Corporation of any liability with respect to the
non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such approvals.

               12. Successors and Assigns. Except to the extent otherwise provided in
Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit of, and be binding
upon, the Corporation and its successors and assigns and Optionee, Optionee’s assigns and the legal
representatives, heirs and legatees of Optionee’s estate.

               13. Notices. Any notice required to be given or delivered to the
Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation
at its principal corporate offices. Any notice required to be given or delivered to Optionee shall
be in writing and addressed to Optionee at the address indicated below Optionee’s signature line on
the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in
the U.S. mail, postage prepaid and properly addressed to the party to be notified.

               14. Financing. The Board may, in its absolute discretion and without any
obligation to do so, permit Optionee to pay the Exercise Price for the purchased Option Shares by
delivering a full-recourse, interest-bearing promissory note secured by those Option Shares. The
payment schedule in effect for any such promissory note shall be established by the Board in its
sole discretion.

               15. Construction. All decisions of the Board with respect to any question
or issue arising under this Agreement shall be conclusive and binding on all persons having an
interest in this option.

5.

 

               16. Governing Law. The interpretation, performance and enforcement of this
Agreement shall be governed by the laws of the State of Texas without resort to that State’s
conflict-of-laws rules.

6.

 

APPENDIX

     The following definitions shall be in effect under the Agreement:

     A. Agreement shall mean this Stock Option Agreement.

     B. Board shall mean the Corporation’s Board of Directors.

     C. Code shall mean the Internal Revenue Code of 1986, as amended.

     D. Common Stock shall mean the Corporation’s common stock.

     E. Corporate Transaction shall mean either of the following stockholder-approved
transactions to which the Corporation is a party:

          (i) a merger or consolidation in which securities possessing more than fifty
percent (50%) of the total combined voting power of the Corporation’s outstanding
securities are transferred to a person or persons different from the persons
holding those securities immediately prior to such transaction, or

          (ii) the sale, transfer or other disposition of all or substantially all of
the Corporation’s assets in complete liquidation or dissolution of the Corporation.

     F. Corporation shall mean Perficient, Inc., a Delaware corporation.

     G. Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.

     H. Exercise Date shall mean the date on which the option shall have been exercised in
accordance with Paragraph 9 of the Agreement.

     I. Exercise Price shall mean the exercise price payable per Option Share as specified
in the Grant Notice.

     J. Exercise Schedule shall mean the exercise schedule specified in the Grant Notice
pursuant to which this option is to become exercisable in a series of installments over Optionee’s
period of Service.

     K. Expiration Date shall mean the date on which the option expires as specified in the
Grant Notice.

     L. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

A-1.

 

          (i) If the Common Stock is at the time traded on the Nasdaq National Market,
then the Fair Market Value shall be the closing selling price per share of Common
Stock on the date in question, as the price is reported by the National Association
of Securities Dealers on the Nasdaq National Market. If there is no closing
selling price for the Common Stock on the date in question, then the Fair Market
Value shall be the closing selling price on the last preceding date for which such
quotation exists.

          (ii) If the Common Stock is at the time listed on any Stock Exchange, then the
Fair Market Value shall be the closing selling price per share of Common Stock on
the date in question on the Stock Exchange determined by the Board to be the
primary market for the Common Stock, as such price is officially quoted in the
composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the
date in question, then the Fair Market Value shall be the closing selling price on
the last preceding date for which such quotation exists.

          (iii) If the Common Stock is at the time neither listed on any Stock Exchange
nor traded on the Nasdaq National Market, then the Fair Market Value shall be
determined by the Board after taking into account such factors as the Board shall
deem appropriate.

     M. Grant Date shall mean the date of grant of the option as specified in the Grant
Notice.

     N. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the
Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced
hereby.

     O. Immediate Family of Optionee shall mean Optionee’s child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive
relationships.

     P. Involuntary Termination shall mean the termination of Optionee’s Service which
occurs by reason of:

          (i) Optionee’s involuntary dismissal or discharge by the Corporation for
reasons other than Misconduct, or

          (ii) Optionee’s voluntary resignation following (A) a change in Optionee’s
position with the Corporation (or Parent or Subsidiary employing Optionee) which
materially reduces Optionee’s duties and responsibilities or the level of
management to which he or she reports (B) a reduction in Optionee’s level of
compensation (including base salary, fringe benefits and target bonus under any
corporate performance-based bonus or incentive programs) by more than fifteen
percent (15%) or (C) a relocation of Optionee’s place of employment

A-2.

 

by more than fifty (50) miles, provided and only if such change, reduction or relocation is
effected without Optionee’s consent.

     Q. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by Optionee, any unauthorized use or disclosure by Optionee of confidential information
or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional
misconduct by Optionee adversely affecting the business or affairs of the Corporation (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be
inclusive of all the acts or omissions which the Corporation (or any Parent or Subsidiary) may
consider as grounds for the dismissal or discharge of Optionee or any other individual in the
Service of the Corporation (or any Parent or Subsidiary).

     R. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

     S. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

     T. Option Shares shall mean the number of shares of Common Stock subject to the option
as specified in the Grant Notice.

     U. Optionee shall mean the person to whom the option is granted as specified in the
Grant Notice.

     V. Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

     W. Permanent Disability shall mean the inability of Optionee to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which is expected to result in death or has lasted or can be expected to last for a continuous
period of twelve (12) months or more.

     X. Purchase Agreement shall mean the stock purchase agreement in substantially the
form of Exhibit B to the Grant Notice.

     Y. Service shall mean Optionee’s performance of services for the Corporation (or any
Parent or Subsidiary) in the capacity of an Employee, a non-employee member of the board of
directors or a consultant or independent advisor.

     Z. Stock Exchange shall mean the American Stock Exchange or the New York Stock
Exchange.

     AA. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock

A-3.

 

possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

A-4.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]