Document:

EX-10.8 AMENDED AND RESTATED EMPLOYEE STOCK PLAN

 

Exhibit 10.8

POST PROPERTIES, INC.

EMPLOYEE STOCK PLAN

AS

AMENDED AND RESTATED

AS OF

FEBRUARY 19, 1998

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	§ 1.	 	BACKGROUND AND PURPOSE	 	 	1	 
	§ 2.	 	DEFINITIONS	 	 	1	 
	 	 	 	2.1.	 	 	Affiliate
	 	 	1	 
	 	 	 	2.2.	 	 	Board
	 	 	1	 
	 	 	 	2.3.	 	 	Change in Control
	 	 	1	 
	 	 	 	2.4.	 	 	Code
	 	 	2	 
	 	 	 	2.5.	 	 	Committee
	 	 	2	 
	 	 	 	2.6.	 	 	Director
	 	 	2	 
	 	 	 	2.7.	 	 	Executive Committee Member
	 	 	2	 
	 	 	 	2.8.	 	 	Fair Market Value
	 	 	2	 
	 	 	 	2.9.	 	 	Insider
	 	 	3	 
	 	 	 	2.10.	 	 	ISO
	 	 	3	 
	 	 	 	2.11.	 	 	Key Employee
	 	 	3	 
	 	 	 	2.12.	 	 	NQO
	 	 	3	 
	 	 	 	2.13.	 	 	Option
	 	 	3	 
	 	 	 	2.14.	 	 	Option Certificate
	 	 	3	 
	 	 	 	2.15.	 	 	Option Price
	 	 	4	 
	 	 	 	2.16.	 	 	Original Plan
	 	 	4	 
	 	 	 	2.17.	 	 	Parent Corporation
	 	 	4	 
	 	 	 	2.18.	 	 	Plan
	 	 	4	 
	 	 	 	2.19.	 	 	Post
	 	 	4	 
	 	 	 	2.20.	 	 	Restricted Stock
	 	 	4	 
	 	 	 	2.21.	 	 	Restricted Stock Certificate
	 	 	4	 
	 	 	 	2.22.	 	 	Rule 16b-3
	 	 	4	 
	 	 	 	2.23.	 	 	Stock
	 	 	4	 
	 	 	 	2.24.	 	 	Subsidiary
	 	 	4	 
	 	 	 	2.25.	 	 	Surrendered Shares
	 	 	5	 
	 	 	 	2.26.	 	 	Ten Percent Shareholder
	 	 	5	 
	§ 3.	 	SHARES RESERVED UNDER PLAN	 	 	5	 
	§ 4.	 	EFFECTIVE DATE	 	 	6	 
	§ 5.	 	COMMITTEE	 	 	6	 
	§ 6.	 	ELIGIBILITY	 	 	7	 
	§ 7.	 	OPTIONS	 	 	7	 
	 	 	 	7.1.	 	 	Committee Action
	 	 	7	 
	 	 	 	7.2.	 	 	$100,000 Limit
	 	 	8	 
	 	 	 	7.3.	 	 	Grants to Directors
	 	 	9	 
	 	 	 	 	 	 	(a)     Initial Grant
	 	 	9	 
	 	 	 	 	 	 	(b)     Ongoing Grants
	 	 	9	 
	 	 	 	 	 	 	(c)     Option Certificates
	 	 	9	 
	 	 	 	7.4.	 	 	Option Price
	 	 	10	 
	 	 	 	7.5.	 	 	Exercise Period
	 	 	11	 
	 	 	 	7.6.	 	 	Nontransferability
	 	 	11	 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	 	 	 	7.7.	 	 	Surrender of Options
	 	 	12	 
	 	 	 	 	 	 	(a)     General Rule
	 	 	12	 
	 	 	 	 	 	 	(b)     Procedure
	 	 	12	 
	 	 	 	 	 	 	(c)     Payment
	 	 	12	 
	 	 	 	 	 	 	(d)     Restrictions
	 	 	13	 
	§ 8.	 	RESTRICTED STOCK	 	 	14	 
	 	 	 	8.1.	 	 	Committee Action
	 	 	14	 
	 	 	 	8.2.	 	 	Conditions
	 	 	14	 
	 	 	 	 	 	 	(a)     Conditions to Issuance of Stock
	 	 	14	 
	 	 	 	 	 	 	(b)     Conditions to Forfeit Stock
	 	 	14	 
	 	 	 	8.3.	 	 	Dividends and Voting Rights
	 	 	16	 
	 	 	 	8.4.	 	 	Satisfaction of Forfeiture Conditions;
Provision for Income and Excise Taxes
	 	 	17	 
	 	 	 	8.5.	 	 	Director Stock
	 	 	17	 
	§ 9.	 	SECURITIES REGISTRATION	 	 	19	 
	§ 10.	 	LIFE OF PLAN	 	 	19	 
	§ 11.	 	ADJUSTMENT	 	 	20	 
	 	 	 	11.1.	 	 	Capital Structure
	 	 	20	 
	 	 	 	11.2.	 	 	Mergers
	 	 	21	 
	 	 	 	11.3.	 	 	Fractional Shares
	 	 	21	 
	§ 12.	 	SALE OR MERGER OF POST; CHANGE IN CONTROL	 	 	22	 
	 	 	 	12.1.	 	 	Sale or Merger
	 	 	22	 
	 	 	 	12.2.	 	 	Change in Control
	 	 	23	 
	§ 13.	 	AMENDMENT OR TERMINATION	 	 	23	 
	§ 14.	 	MISCELLANEOUS	 	 	24	 
	 	 	 	14.1.	 	 	Shareholder Rights
	 	 	24	 
	 	 	 	14.2.	 	 	No Contract of Employment
	 	 	25	 
	 	 	 	14.3.	 	 	Withholding
	 	 	25	 
	 	 	 	14.4.	 	 	Construction
	 	 	25	 
	 	 	 	14.5.	 	 	Other Conditions
	 	 	26	 

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1.§

BACKGROUND AND PURPOSE

     The primary purpose of this Plan is to promote the interest of Post through grants to Key
Employees and Directors of Restricted Stock and Options to purchase Stock in order (1) to attract
Key Employees and Directors, (2) to provide an additional incentive to each Key Employee or
Director to work to increase the value of Stock and (3) to provide each Key Employee or Director
with a stake in the future of Post which corresponds to the stake of each of Post’s shareholders.

2.§

DEFINITIONS

     2.1. Affiliate — means Post Apartment Homes, L.P., Post Asset Management, Inc., Post
Landscape Services, Inc. and each other organization designated as such by the Committee, which
designation shall be effective and shall terminate at the Committee’s discretion.

     2.2. Board — means the Board of Directors of Post Properties, Inc.

     2.3. Change in Control — means (1) the acquisition of the power to direct, or
cause the direction of, the management and policies of Post by a person (not previously possessing
such power), acting alone or in conjunction with others, whether through the ownership of Stock, by
contract or otherwise, or (2) the acquisition, directly or indirectly, of the power to vote more
than 20% of the outstanding Stock by any person or by two or more persons acting together,
except an acquisition from Post or by Post, Post’s management or a Post sponsored employee
benefit plan, where (3) the term “person” means a natural person, corporation, partnership, joint venture, trust,

 

 

government or instrumentality of a government, and (4) customary agreements with or
between underwriters and selling group members with respect to a bona fide public offering of Stock
shall be disregarded for purposes of this definition.

     2.4. Code — means the Internal Revenue Code of 1986, as amended.

     2.5. Committee — means the Compensation Committee of the Board or, if the
Compensation Committee at any time has less than 2 members or has a member who fails to come within
the definition of a “non-employee director” under Rule 16b-3 and an “outside director” for purposes
of § 162(m) of the Code, a committee which shall be responsible for the operation and
administration of this Plan and which shall have at least 2 members, where each member shall be
appointed by and shall serve at the pleasure of the Board and shall come within the definition of a
“non-employee director” under Rule 16b-3 and an “outside director” under § 162(m) of the Code.

     2.6. Director — means any member of the Board who is not an employee of Post or any
Subsidiary or affiliate (as such term is defined in Rule 405 of the Securities Act of 1933, as
amended) of Post.

     2.7. Executive Committee Member — means an officer of Post or any Subsidiary or
Affiliate who is designated as such by the Chairman of the Board of Directors, which designation
shall
be effective and shall terminate at the discretion of the Chairman of the Board of Directors.

     2.8. Fair Market Value — means (1) the closing price on any date for a share of Stock
as reported by The Wall Street Journal under the New York Stock Exchange Composite
Transactions quotation system (or under any successor quotation system) or, if Stock is no longer
traded on the New York Stock Exchange,

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under the quotation system under which such closing price is
reported or, if The Wall Street Journal no longer reports such closing price, such closing
price as reported by a newspaper or trade journal selected by the Committee or, if no such closing
price is available on such date, (2) such closing price as so reported or so quoted in accordance
with § 2.6(1) for the immediately preceding business day, or, if no newspaper or trade journal
reports such closing price or if no such price quotation is available, (3) the price which the
Committee acting in good faith determines through any reasonable valuation method that a share of
Stock might change hands between a willing buyer and a willing seller, neither being under any
compulsion to buy or to sell and both having reasonable knowledge of the relevant facts.

     2.9. Insider — means any individual who is subject to Section 16(a) of the Securities
Exchange Act of 1934, as amended.

     2.10. ISO — means an option granted under this Plan to purchase Stock which is
intended to satisfy the requirements of § 422 of the Code.

     2.11. Key Employee — means a full time, salaried employee of Post or any Subsidiary
or any Affiliate who, in the judgment
of the Committee acting in its absolute discretion, is key directly or indirectly to the
success of Post.

     2.12. NQO — means an option granted under this Plan to purchase Stock which is
intended to fail to satisfy the requirements of § 422 of the Code.

     2.13. Option — means an ISO or a NQO.

     2.14. Option Certificate — means the written certificate which sets forth the terms
of an Option granted to a Key Employee or Director under § 7 of this Plan.

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     2.15. Option Price — means the price which shall be paid to purchase one share of
Stock upon the exercise of an Option granted under this Plan.

     2.16. Original Plan — means the Post Properties, Inc. Employee Stock Plan as in
effect on February 18, 1998.

     2.17. Parent Corporation — means any corporation which is a parent of Post within the
meaning of § 424(e) of the Code.

     2.18. Plan — means this Post Properties, Inc. Employee Stock Plan, as amended and
restated effective as of February 19, 1998 and as thereafter amended or, as for any Option or
Restricted Stock granted before the effective date of this Plan, the Original Plan.

     2.19. Post — means Post Properties, Inc., a Georgia corporation, and any successor to
such corporation.

     2.20. Restricted Stock — means Stock granted to a Key Employee or Director under § 8
of this Plan.

     2.21. Restricted Stock Certificate — means the certificate which sets forth the terms
of a Restricted Stock grant to a Key Employee or Director under § 8 of this Plan.

     2.22. Rule 16b-3 — means Rule 16b-3 to Section 16(b) of the Securities Exchange Act
of 1934, as amended, or any successor to such rule.

     2.23. Stock — means $.01 par value common stock of Post.

     2.24. Subsidiary — means a corporation which is a subsidiary corporation (within the
meaning of § 424(f) of the Code) of Post.

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     2.25. Surrendered Shares — means the shares of Stock described in § 7 which (in lieu
of being purchased) are surrendered for cash or Stock, or for a combination of cash and Stock, in
accordance with § 7.

     2.26. Ten Percent Shareholder — means a person who owns (after taking into account
the attribution rules of § 424(d) of the Code) more than ten percent of the total combined voting
power of all classes of stock of either Post, a Subsidiary or a Parent Corporation.

3.§

SHARES RESERVED UNDER PLAN

     There shall be 6,000,000 shares of Stock reserved for use under this Plan (3,500,000 of which
shall be carried forward from the Original Plan), but no more than 550,000 of such 6,000,000 shares
shall be available for grants of Restricted Stock. All such shares of Stock shall be reserved to
the extent that Post deems appropriate from authorized but unissued shares of Stock and from shares
of Stock which have been reacquired by Post. Furthermore, any shares of Stock subject to an
Option which remain unissued after the cancellation, expiration or exchange of such Option and any
shares of Restricted Stock which are forfeited thereafter shall again become available for use
under this Plan, but any Surrendered Shares which remain unissued after the surrender of an Option
under § 7 and any shares of Stock used to satisfy a withholding obligation under § 14.3 shall not
again become available for use under this Plan.

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4.§

EFFECTIVE DATE

     The effective date of this Plan shall be February 19, 1998, provided the shareholders of Post
(acting at a duly called meeting of such shareholders) approve such adoption within twelve (12)
months of such effective date. Any Options and Restricted Stock granted under this Plan on or
after February 19, 1998 automatically shall be granted subject to such approval. If the
shareholders of Post fail to so approve this Plan, the Original Plan shall remain in full force and
effect.

5.§

COMMITTEE

     This Plan shall be administered by the Committee. The Committee acting in its absolute
discretion shall exercise such powers and take such action as expressly
called for under this Plan and, further, the Committee shall have the power to interpret this
Plan and (subject to § 11, § 12 and § 13) to take such other action in the administration and
operation of this Plan as the Committee deems equitable under the circumstances, which action shall
be binding on Post, on each affected Key Employee or Director and on each other person directly or
indirectly affected by such action. The Committee shall seek to grant Options (and any related
surrender rights) and to grant Restricted Stock which will qualify as performance based
compensation under § 162 of the Code except where the Committee deems that Post’s interests when
viewed broadly will be better served by a grant which is free of the conditions required to qualify
such grant as performanced based compensation under § 162(m) of the Code.

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6.§

ELIGIBILITY

     Only Key Employees who are employed by Post or a Subsidiary shall be eligible for the grant of
ISOs. Key Employees and Directors shall be eligible for the grant of NQOs and Restricted Stock
under this Plan, but Directors shall be eligible for grants of NQOs only under § 7.3 and Restricted
Stock only under § 8.5.

7.§

OPTIONS

     7.1. Committee Action. The Committee acting in its absolute discretion shall have the
right to grant Options to Key Employees under this Plan from time to time to purchase shares of
Stock subject to the following conditions:

	 	(a)	 	the Committee shall not grant a new Option in
exchange for the cancellation of an outstanding Option unless the new
Option has an Option Price which is equal to or higher than the Option
Price of the outstanding Option,
	 
	 	(b)	 	the Committee shall only grant ISOs to Key
Employees who are employed by Post or a Subsidiary, and

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	 	(c)	 	the Committee shall not grant an Option, or
more than one Option, individually or collectively, to any Key
Employee in any calendar year to purchase more than 100,000 shares of
Stock or, if such Key Employee is an Executive Committee Member in such
calendar year, more than 500,000 shares of Stock; provided, however,
that the Committee in 1998 may grant an Option to a Key Employee to
purchase up to 50,000 shares of Stock in addition to the number
described in this § 7.1(c)(1) and § 7.1(c)(2), whichever is applicable,
if the Committee deems such grant as appropriate in light of a
reduction in such Key Employee’s cash compensation for 1998.

Each grant of an Option to a Key Employee shall be evidenced by an Option Certificate, and each
Option Certificate shall set forth whether the Option is an ISO or a NQO and shall set forth such
other terms and conditions of such grant as the Committee acting in its absolute discretion deems
consistent with the terms of this Plan; however, if the Committee grants an ISO and a NQO to a Key
Employee on the same date, the right of
the Key Employee to exercise or surrender one such Option shall not be conditioned on his or her
failure to exercise or surrender the other such Option. The Committee shall have the right to
grant a NQO and Restricted Stock to a Key Employee at the same time and to condition the exercise
of the NQO on the forfeiture of the Restricted Stock grant.

     7.2. $100,000 Limit. To the extent that the aggregate Fair Market Value of Stock
(determined as of the date the ISO is granted) with respect to which ISOs first

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become exercisable
in any calendar year exceeds $100,000, such Options shall be treated as NQOs. The Fair Market
Value of Stock subject to any other option (determined as the date such option was granted) which
(1) satisfies the requirements of § 422 of the Code and (2) is granted to a Key Employee under a
plan maintained by Post, a Subsidiary or a Parent Corporation shall be treated (for purposes of
this $100,000 limitation) as if granted under this Plan. The Committee shall interpret and
administer the limitation set forth in this § 7.2 in accordance with § 422(d) of the Code.

     7.3. Grants to Directors.

     (a) Initial Grant. Each Director automatically shall be granted (without any
further action on the part of the Committee) a NQO under this Plan as of the first day he serves as
such to purchase the number of shares of Stock determined by dividing $10,000 by the Fair Market
Value of a share of Stock on the date of grant and rounding down to the nearest whole number. Such
grant shall be made at an Option Price equal to the Fair Market Value of a share of Stock on the
date of such grant.

     (b) Ongoing Grants. Each Director who is serving as such on December 31 of each
calendar year and who has served as such for more than one full year automatically shall be granted
(without any further action on the part of the Committee) a NQO under this Plan as of December 31
of such calendar year to purchase 3,000 shares of Stock. Such grant shall be made at an Option
Price equal to the Fair Market Value of a share of Stock on such date.

     (c) Option Certificates. Each NQO granted under this Plan to a Director shall be
evidenced by an Option Certificate, shall be exercisable in full upon grant and shall expire 90
days after a Director ceases to serve as such or, if earlier, on

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the tenth anniversary of the date
of the grant of the NQO. A NQO granted to a Director under this Plan shall conform in all other
respects to the terms and conditions of a NQO under this Plan, and no Director shall be eligible to
receive an Option under this Plan except as provided in this § 7.3. A grant of a NQO to a Director
under this § 7.3 is intended to allow such Director to be a “non-employee director” under Rule
16b-3 and an “outside director” under Section 162(m) of the Code, and all NQOs granted to Directors
as well as this § 7.3 shall be construed to effect such intent.

     7.4. Option Price. The Option Price for each share of Stock subject to an Option
which is granted to a Key Employee shall be no less than the Fair Market Value of a share of Stock
on the date the Option is granted; provided, however, if the Option is an ISO granted to a Key
Employee who is a Ten Percent Shareholder, the Option Price for each share of Stock subject to such
ISO shall be no less than 110% of the Fair Market Value of a share of Stock on the date such
ISO is granted. The Option Price for each share of Stock subject to a NQO which is granted to
a Director shall be determined under § 7.3. The Option Price shall be payable in full upon the
exercise of any Option. At the discretion of the Committee an Option Certificate can provide for
the payment of the Option Price either in cash, by check or in Stock which previously had been
purchased by the Key Employee or Director and which is acceptable to the Committee or in any
combination of cash, check and such Stock. Any payment made in Stock shall be treated as equal to
the Fair Market Value of such Stock on the date the properly endorsed certificate for such Stock is
delivered to the Committee or its delegate.

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     7.5. Exercise Period. Each Option granted under this Plan to a Key Employee shall be
exercisable in whole or in part at such time or times as set forth in the related Option
Certificate, but no Option Certificate shall make an Option granted to a Key Employee exercisable
on or after the earlier of

     (a) the date such Option is exercised in full, or

     (b) the date which is the fifth anniversary of the date the Option is granted, if the Option
is an ISO and the Key Employee is a Ten Percent Shareholder on the date the Option is granted, or

     (c) the date which is the tenth anniversary of the date the Option is granted, if the Option
is (a) an NQO or (b) an ISO which is granted to a Key Employee who is not a Ten Percent
Shareholder on the date the Option is granted.

An Option Certificate may provide for the exercise of an Option after the employment of a Key
Employee has terminated for any reason whatsoever, including death or disability.

     7.6. Nontransferability. Neither an ISO granted under this Plan nor any related
surrender rights under § 7.7 shall be transferable by a Key Employee other than by will or by the
laws of descent and distribution, and any such ISO and any such surrender rights shall be
exercisable during the lifetime of a Key Employee only by such Key Employee. However, the
Committee may allow the transfer or assignment of an NQO or Restricted Stock if the Committee
determines that such transfer or assignment is consistent with the purpose of this Plan and can be
properly effected at no additional cost to (or burden on) Post to satisfy any securities law, tax
law or other applicable requirements. The person or persons to whom an Option or any related
surrender

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rights or any Restricted Stock is transferred under this § 7.6 thereafter shall be
treated as the Key Employee or Director under this Plan.

     7.7. Surrender of Options.

     (a) General Rule. The Committee acting in its absolute discretion may as part of the
grant of an Option in addition grant a Key Employee the right to surrender such Option in
accordance with this § 7.7 in whole or in part in lieu of the exercise in whole or in part of that
Option on any date that

	 	(1)	 	the Fair Market Value of the Stock subject to
such Option exceeds the Option Price for such Stock, and
	 
	 	(2)	 	the Option to purchase such Stock is otherwise
exercisable.

Any surrender right under this § 7.7 shall be set forth in the Option Certificate for the related
Option.

     (b) Procedure. The surrender of an Option in whole or in part shall be effected under
this § 7.7 by the delivery of the Option Certificate to the Committee (or to its delegate) together
with a statement signed by the Key Employee which specifies the number of shares of Stock as to
which the Key Employee surrenders his or her Option and (at the Key Employee’s option) how he or
she desires payment be made for such Surrendered Shares.

     (c) Payment. A Key Employee in exchange for his or her Surrendered Shares shall (to
the extent consistent with the exemption under Rule 16b-3) receive a payment in cash or in Stock,
or in a combination of cash and Stock, equal in amount on the date such surrender is effected to
the excess of the Fair Market Value of the Surrendered Shares on such date over the Option Price
for the Surrendered Shares.

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The Committee acting in its absolute discretion shall determine the
form and timing of such payment, and the Committee shall have the right (1) to take into account
whatever factors the Committee deems appropriate under the circumstances, including any written
request made by the Key Employee and delivered to the Committee (or to its delegate) and (2) to
forfeit a Key Employee’s right to payment of cash in lieu of a fractional share of stock if the
Committee deems such forfeiture necessary in order for the surrender of his or her Option under
this § 7 to come within the exemption under Rule 16b-3.

     (d) Restrictions. Any Option Certificate which incorporates a provision to allow a
Key Employee to surrender his or her Option in whole or in part also shall incorporate such
additional restrictions on the exercise or
surrender of such Option as the Committee deems necessary to satisfy the conditions to the
exemption under Rule 16b-3.

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8.§

RESTRICTED STOCK

     8.1.   Committee Action. The Committee acting in its absolute discretion
shall have the right to grant Restricted Stock to Key Employees under this Plan from time to time
and, further, shall have the right to make new Restricted Stock grants in exchange for outstanding
Restricted Stock grants. Each Restricted Stock grant shall be evidenced by a Restricted Stock
Certificate, and each Restricted Stock Certificate shall set forth the conditions, if any, under
which Stock will be issued in the name of the Key Employee and the conditions, if any, under which
the Key Employee’s interest in such Stock will become nonforfeitable.

     8.2. Conditions.

     (a) Conditions to Issuance of Stock. The Committee acting in its absolute discretion
may make the issuance of Restricted Stock in the name of a Key Employee subject to the satisfaction
of one, or more than one, condition which the Committee deems appropriate under the circumstances
and the related Restricted Stock Certificate shall set forth each such condition and the deadline
for satisfying each such condition. Stock subject to a Restricted Stock grant shall be issued in
the name of a Key Employee only after each such condition, if any, has been timely satisfied, and
any Stock which is so issued shall
be held by Post pending the satisfaction of the forfeiture conditions, if any, under § 8.2(b)
for the related Restricted Stock grant.

     (b) Conditions to Forfeit Stock. The Committee acting in its absolute discretion may
make Restricted Stock which has been issued in the name of Key Employee under § 8.2(a) subject to
one, or more than one, forfeiture condition which the Committee acting in its absolute discretion
deems appropriate under the circumstances, and the related Restricted Stock Certificate shall set
forth each such forfeiture condition,

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if any, and the related deadline, if any, or satisfying each
such forfeiture condition. Stock issued in the name of Key Employee shall be forfeited unless each
such forfeiture condition, if any, has been timely satisfied.

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     8.3. Dividends and Voting Rights. If a cash dividend is declared on a share of Stock
issued in the name of a Key Employee under § 8.2(a) before the date that a Key Employee’s interest
in such Stock (1) is forfeited completely under § 8.2(b) or (2) becomes completely nonforfeitable,
Post shall pay such cash dividend directly to such Key Employee. If a Stock dividend is declared
on such a share of Stock during such period, such Stock dividend shall be treated as part of the
grant of the related Restricted Stock, and a Key Employee’s interest in such Stock dividend shall
be forfeited or shall become nonforfeitable at the same time as the Stock with respect to which the
Stock dividend was paid is forfeited or becomes nonforfeitable. The disposition of each other form
of dividend which is declared on such a share of Stock during such period shall be made in
accordance with such rules as the Committee shall adopt with respect to each such dividend. A Key
Employee also shall have the right to vote the Stock issued in his or her name during such period.

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     8.4. Satisfaction of Forfeiture Conditions; Provision for Income and Excise Taxes. A
share of Stock shall cease to be Restricted Stock at such time as a Key Employee’s interest in such
Stock becomes nonforfeitable under this Plan, and the certificate representing such share shall be
transferred to the Key Employee as soon as practicable thereafter. The Committee acting in its
absolute discretion shall have the power to authorize and direct the payment of a cash bonus (or to
provide in the terms of the Restricted Stock Certificate for Post to make such payment) to a Key
Employee to pay all, or any portion of, his or her federal, state and local income and excise tax
liability which the Committee deems attributable to his or her interest in his or her Restricted
Stock grant becoming nonforfeitable and, further, to pay any such tax liability attributable to
such cash bonus.

     8.5. Director Stock. Each Director shall the right to elect to receive Stock in lieu
of cash with respect to all or any part of his or her compensation services rendered as a Director,
and any such election shall be made in writing and shall be effective as of the date the Director
delivers such election to Post. A Director who has made an election under this § 8.5 may
subsequently amend or revoke such election and any such amendment or revocation shall be made in
writing and shall be effective as of the date the Director delivers such amendment or revocation to
Post. There shall be no limit on the number of elections which a Director can make or amend or
revoke under this § 8.5. The number of shares of Stock which a Director shall received in lieu of
cash shall be determined by Post by dividing the cash payment which the Director has elected to
receive in the form of Stock by the Fair
Market Value of a share of Stock as of the date the cash compensation otherwise would be
payable to the Director and by

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rounding down to the nearest whole share of Stock. The Director
shall receive cash in lieu of any fractional share of Stock under this § 8.5. Post shall have the
right to issue the shares of Stock which a Director receives in lieu of cash under this § 8.5
subject to a restriction that the Director have no right to transfer such Stock (except as
permissible under Rule 16b-3) for the six month period which starts on the date the Stock is issued
to the Director or to take such other action as Post deems necessary or appropriate in light of
Rule 16b-3.

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9.§

SECURITIES REGISTRATION

     Each Option Certificate and Restricted Stock Certificate shall provide that, upon the receipt
of shares of Stock as a result of the surrender or exercise of an Option or the satisfaction of the
forfeiture conditions under a Restricted Stock Certificate, the Key Employee or Director shall, if
so requested by Post, hold such shares of Stock for investment and not with a view of resale or
distribution to the public and, if so requested by Post, shall deliver to Post a written statement
satisfactory to Post to that effect. As for Stock issued pursuant to this Plan, Post at its
expense shall take such action as it deems necessary or appropriate to register the original
issuance of such Stock to a Key Employee or Director under the Securities Act of 1933, as amended,
or under any other applicable securities laws or to qualify such Stock for an exemption under any
such laws prior to the issuance of such Stock to a Key Employee or Director; however, Post shall
have no obligation whatsoever to take any such action in connection with the transfer, assignment,
resale or other disposition of such Stock by a Key Employee or Director.

10.§

LIFE OF PLAN

     No Option or Restricted Stock shall be granted under this Plan on or after the earlier of

	 	(3)	 	July 12, 2003, in which event this Plan
otherwise thereafter shall continue in effect until all outstanding
Options have been surrendered or exercised in full or no longer are
exercisable and all Restricted Stock granted under this Plan

-19-

 

	 	 	 	has been forfeited or the forfeiture conditions on such Stock have
been satisfied in full, or
	 	(4)	 	the date on which all of the Stock reserved
under § 3 of this Plan has (as a result of the surrender or exercise of
Options granted under this Plan or the satisfaction of the forfeiture
conditions on Restricted Stock) been issued or no longer is available
for use under this Plan, in which event this Plan also shall terminate
on such date.

11.§

ADJUSTMENT

     11.1. Capital Structure. The number of shares of Stock reserved under § 3 of this
Plan and the number of shares of Stock subject to Options granted under this Plan and the Option
Price of such Options as well as the number of shares of Restricted Stock granted under this Plan
shall be adjusted by the Committee in an equitable manner to reflect any change in the
capitalization of Post, including, but not limited to, such changes as stock dividends or stock
splits.

-20-

 

     11.2. Mergers. The Committee as part of any corporate transaction described in §
424(a) of the Code shall have the right to adjust (in any manner which the Committee in its
discretion deems consistent with § 424(a) of the Code) the number, kind or class (or any
combination thereof) of shares of Stock reserved under § 3 of this Plan. Furthermore, the
Committee as part of any corporate transaction described in § 424(a) of the Code shall have the
right to adjust (in any manner which the Committee in its discretion deems consistent with § 424(a)
of the Code) the number, kind or class (or any combination thereof) of shares of Stock underlying
any Restricted Stock grants previously made under this Plan and any related grant conditions and
forfeiture conditions, and the number, kind or class (or any combination thereof) of shares subject
to Option grants previously made under this Plan and the related Option Price and for each such
Option, and, further, shall have the right (in any manner which the Committee in its discretion
deems consistent with § 424(a) of the Code) to make Restricted Stock and Option grants to effect
the assumption of, or the substitution for, restricted stock and stock option grants previously
made under this Plan or any predecessors to this Plan or by any other corporation to the extent
that such corporate transaction calls for such substitution or assumption.

     11.3. Fractional Shares. If any adjustment under this § 11 would create a fractional
share of Stock or a right to acquire a fractional share of Stock, such fractional share shall be
disregarded and the number of shares of Stock reserved under this Plan and the number subject to
any Option grants and Restricted Stock grants shall be the next lower number of shares of Stock,
rounding all fractions downward. An adjustment

-21-

 

made under this § 11 by the Committee shall
be conclusive and binding on all affected persons.

12.§

SALE OR MERGER OF POST; CHANGE IN CONTROL

     12.1. Sale or Merger. If Post agrees to sell all or substantially all of its assets
for cash or property or for a combination of cash and property or agrees to any merger,
consolidation, reorganization, division or other corporate transaction in which Stock is converted
into another security or into the right to receive securities or property and such agreement does
not provide for the assumption or substitution of the Options and Restricted Stock granted under
this Plan in accordance with § 11 on a basis that is fair and equitable to holders of such Options
and Restricted Stock as determined by the Board, (1) each Option granted to a Key Employee at the
direction and discretion of the Board (a) may (subject to such conditions, if any, as the Board
deems appropriate under the circumstances) be canceled unilaterally by Post (i) in exchange for (A)
a transfer to such Key Employee of the number of whole shares of Stock, if any, which he or she
would have received if he or she had the right to surrender his or her outstanding Option in full
under §7.7 of this Plan and he or she exercised that right on the date set by the Board exclusively
for Stock or (B) the right to exercise his or her outstanding Option in full on any date before the
date as of which the Board unilaterally cancels such Option in full or, if the exchange described
in this § 12.1(a)(i) would result in a violation of Section 16 of the Securities Exchange Act of
1934, as amended, for a Key employee, (ii) may be canceled
unilaterally by Post after advance written notice to such Key Employee or (b) may be canceled
unilaterally by Post if the Option Price equals or

-22-

 

exceeds the Fair Market Value of a share of
Stock on a date set by the Board, (2) each Option granted to a Director shall be canceled
unilaterally by Post on a date set by the Board to the extent unexercised on such date after
advance written notice to each affected Director, and (3) the grant conditions, if any, and
forfeiture conditions on all outstanding Restricted Stock grants may be deemed completely satisfied
on the date set by the Board.

     12.2. Change in Control. If there is a Change in Control of Post or a tender or
exchange offer is made for Stock other than by Post, the Board thereafter shall have the right (1)
to take such action with respect to any unexercised Options granted to Key Employees and any grants
of Restricted Stock which are forfeitable, or all such Options and all such grants of Restricted
Stock, as the Board deems appropriate under the circumstances to protect the interest of Post in
maintaining the integrity of such grants under this Plan, including following the procedure set
forth in § 12.1 for a sale or merger of Post with respect to such Options and Restricted Stock, and
(2) to follow the procedures for Directors set forth in § 12.1 with respect to any and all
unexercised Options granted to Directors. The Board shall have the right to take different action
under this § 12.2 with respect to different Key Employees or different groups of Key Employees, as
the Board deems appropriate under the circumstances.

13.§

AMENDMENT OR TERMINATION

     This Plan may be amended by the Board from time to time to the extent that the Board deems
necessary or appropriate; provided, however,

-23-

 

	 	(5)	 	no such amendment shall be made absent the
approval of the shareholders of Post required under § 422 of the Code
(a) to increase the number of shares of stock reserved under § 3, or
(b) to change the class of employees eligible for Options or Restricted
Stock grants under § 6, and
	 
	 	(6)	 	no amendment shall be made to change the terms
and conditions of an Option which can be granted to a Director absent
the approval of the shareholders of Post.

Any amendment which specifically applies to NQOs shall not require shareholder approval. The Board
also may suspend the granting of Options and Restricted Stock under this Plan at any time and may
terminate this Plan at any time; provided, however, the Board shall not have the right unilaterally
to modify, amend or cancel any Restricted Stock grant or Option granted before such suspension or
termination unless (1) the Key Employee or Director consents in writing to such modification,
amendment or cancellation or (2) there is a dissolution or liquidation of Post or a transaction
described in § 11 or § 12 of this Plan.

14.§

MISCELLANEOUS

     14.1. Shareholder Rights. No Key Employee or Director shall have any rights as a
shareholder of Post as a result of the grant of an Option under this Plan or his or her exercise or
surrender of such Option
pending the actual delivery of the Stock subject to such Option to such Key Employee or
Director. Subject to § 8.3, a Key

-24-

 

Employee’s rights as a shareholder in the shares of Stock
underlying a Restricted Stock grant which is effective shall be set forth in the related Restricted
Stock Certificate.

     14.2. No Contract of Employment. The grant of an Option or Restricted Stock to a Key
Employee or Director under this Plan shall not constitute a contract of employment or a right to
continue to serve on the Board and shall not confer on a Key Employee or Director any rights upon
his or her termination of employment or service in addition to those rights, if any, expressly set
forth in the Option Certificate which evidences his or her Option or the Restricted Stock
Certificate related to his or her Restricted Stock.

     14.3. Withholding. The exercise or surrender of any Option granted under this Plan
and the acceptance of a Restricted Stock grant shall constitute a Key Employee’s full and complete
consent to whatever action the Committee deems necessary to satisfy the federal and state tax
withholding requirements, if any, which the Committee in its discretion deems applicable to such
exercise or surrender or such Restricted Stock. The Committee also shall have the right to
provide in an Option Certificate or Restricted Stock Certificate that a Key Employee may elect to
satisfy federal and state tax withholding requirements through a reduction in the number of shares
of Stock actually transferred to him or to her under this Plan and, if the Employee is subject to
the reporting requirements under Section 16 of the Securities Exchange Act of 1934, as amended, any
such election and any such
reduction shall be effected so as to satisfy the conditions to the exemption under Rule 16b-3.

     14.4. Construction. This Plan shall be construed under the laws of the State of
Georgia. Any reference to the singular shall include the plural, and any

-25-

 

reference to the plural
shall include the singular. Any reference to a term defined in § 2 shall include the definition of
such term under § 2, and any reference to a section (§) shall be to a section (§) of this Plan
unless otherwise set forth in such reference.

     14.5. Other Conditions. Each Option Certificate or Restricted Stock Certificate may
require that a Key Employee or Director (as a condition to the exercise of an Option or a
Restricted Stock grant) enter into any agreement or make such representations prepared by Post,
including any agreement which restricts the transfer of Stock acquired pursuant to the exercise of
an Option or Restricted Stock grant or provides for the repurchase of such Stock by Post under
certain circumstances.

     IN WITNESS WHEREOF, Post Properties, Inc. has caused its duly authorized officer to execute
this Plan to evidence its adoption of this Plan.

	 	 	 	 	 
	 	POST PROPERTIES, INC.

 	 
	 	By:  	/s/ John A. Williams
 	 
	 	Title: 	Chairman	 
		Date: 	February 19, 1998	 
	 

-26-EX-10.12 MULTI-FAMILY NOTE

 

Exhibit 10.12

FHLMC Loan No. 487782259

Post Addison Circle

MULTIFAMILY NOTE

MULTISTATE — FIXED TO FLOAT

(REVISION DATE 03-30-2006)

			
	 	 	 
	US $120,000,000.00
	 	Effective Date: As of January 25, 2008

     FOR VALUE RECEIVED, the undersigned (together with such party’s or parties’ successors and
assigns, “Borrower”), jointly and severally (if more than one) promises to pay to the order of
DEUTSCHE BANK BERKSHIRE MORTGAGE, INC., d/b/a DB Berkshire Mortgage, Inc., a Delaware corporation,
the principal sum of One Hundred Twenty Million and 00/100 Dollars (US $120,000,000.00), with
interest on the unpaid principal balance, as hereinafter provided.

	 	1.	 	Defined Terms.
	 
	 	(a)	 	As used in this Note:
	 
	 	 	 	“Adjustable Interest Rate” means the variable annual interest rate calculated for
each Interest Adjustment Period so as to equal the Index Rate for such Interest
Adjustment Period (truncated at the fifth (5th) decimal place if
necessary) plus the Margin.
	 
	 	 	 	“Amortization Period” means a period of 0 full consecutive calendar months.
	 
	 	 	 	“Base Recourse” means a portion of the Indebtedness equal to zero percent (0%) of
the original principal balance of this Note.
	 
	 	 	 	“Business Day” means any day other than a Saturday, a Sunday or any other day on
which Lender or the national banking associations are not open for business.
	 
	 	 	 	“Default Rate” means (i) during the Fixed Rate Period, an annual interest rate equal
to four (4) percentage points above the Fixed Interest Rate; and (ii) during the
Extension Period, a variable annual interest rate equal to four (4) percentage
points above the Adjustable Interest Rate in effect from time to time. However, at
no time will the Default Rate exceed the Maximum Interest Rate.
	 
	 	 	 	“Extended Maturity Date” means, if the Extension Period becomes effective pursuant
to this Note, the earlier of (i) February 1, 2016, and (ii) the date on which the
unpaid principal balance of this Note becomes due and payable by acceleration or
otherwise pursuant to the Loan Documents or the exercise by Lender of any right or
remedy thereunder.
	 
	 	 	 	“Extension Period” means the twelve (12) consecutive calendar months period
commencing on the Scheduled Initial Maturity Date.
	 
	 	 	 	“Fixed Interest Rate” means the annual interest rate of four and eighty-eight
hundredths percent (4.88%).

 

PAGE 1

 

	 	 	 	“Fixed Rate Period” means the period beginning on the date of this Note and
continuing through January 31, 2015.
	 
	 	 	 	“Index Rate” means, for any Interest Adjustment Period, the Reference Billâ
Index Rate for such Interest Adjustment Period.
	 
	 	 	 	“Initial Maturity Date” means the earlier of (i) February 1, 2015 (the “Scheduled
Initial Maturity Date”), and (ii) the date on which the unpaid principal balance of
this Note becomes due and payable by acceleration or otherwise pursuant to the Loan
Documents or the exercise by Lender of any right or remedy thereunder.
	 
	 	 	 	“Installment Due Date” means, for any monthly installment of interest only or
principal and interest, the date on which such monthly installment is due and
payable pursuant to Section 3 of this Note. The “First Installment Due Date” under
this Note is March 1, 2008.
	 
	 	 	 	“Interest Adjustment Period” means each successive one calendar month period during
the Extension Period and until the entire Indebtedness is paid in full.
	 
	 	 	 	“Lender” means the holder from time to time of this Note.
	 
	 	 	 	“LIBOR Index” means the British Bankers Association’s (BBA) one (1) month LIBOR Rate
for United States Dollar deposits, as displayed on the LIBOR Index Page used to
establish the LIBOR Index Rate.
	 
	 	 	 	“LIBOR Index Rate” means, for any Interest Adjustment Period after the first
Interest Adjustment Period, the BBA’s LIBOR Rate for the LIBOR Index released by the
BBA most recently preceding the first day of such Interest Adjustment Period, as
such LIBOR Rate is displayed on the LIBOR Index Page. The LIBOR Index Rate for the
first Interest Adjustment Period means the British Bankers Association’s (BBA) LIBOR
Rate for the LIBOR Index released by the BBA most recently preceding the first day
of the month in which the first Interest Adjustment Period begins, as such LIBOR
Rate is displayed on the LIBOR Index Page. “LIBOR Index Page” is the Bloomberg
L.P., page “BBAM”, or such other page for the LIBOR Index as may replace page BBAM
on that service, or at the option of Lender (i) the applicable page for the LIBOR
Index on another service which electronically transmits or displays BBA LIBOR Rates,
or (ii) any publication of LIBOR rates available from the BBA. In the event the BBA
ceases to set or publish a LIBOR rate/interest settlement rate for the LIBOR Index,
Lender will designate an alternative index, and such alternative index shall
constitute the LIBOR Index Page.
	 
	 	 	 	“Loan” means the loan evidenced by this Note.
	 
	 	 	 	“Margin” means two and one-half (2.5) percentage points (250 basis points).
	 
	 	 	 	“Maturity Date” means the Extended Maturity Date unless pursuant to Section 3(e) of
this Note the Extension Period does not or cannot become effective, in which case
the Maturity Date means the Initial Maturity Date.
	 
	 	 	 	“Maximum Interest Rate” means the rate of interest that results in the maximum
amount of interest allowed by applicable law.

 

PAGE 2

 

	 	 	 	“Prepayment Premium Period” means the period during which, if a prepayment of
principal occurs, a prepayment premium will be payable by Borrower to Lender. The
Prepayment Premium Period is the period from and including the date of this Note
until but not including the first day of the Window Period. For this Note, the
Prepayment Premium Period equals the Yield Maintenance Period.
	 
	 	 	 	“Reference Billsâ” means the unsecured general obligations of the Federal Home
Loan Mortgage Corporation (“Freddie Mac”) designated by Freddie Mac as “Reference
Billsâ Securities” and having original durations to maturity most comparable
to the term of the Reference Bill Index, and issued by Freddie Mac at regularly
scheduled auctions. In the event Freddie Mac shall at any time cease to designate
any unsecured general obligations of Freddie Mac as “Reference Bills Securities”,
then at the option of Lender (i) Lender may select from time to time another
unsecured general obligation of Freddie Mac having original durations to maturity
most comparable to the term of the Reference Bill Index and issued by Freddie Mac at
regularly scheduled auctions, and the term “Reference Bills” as used in this Note
shall mean such other unsecured general obligations as selected by Lender; or (ii)
for any one or more Interest Adjustment Periods, Lender may use the applicable LIBOR
Index Rate as the Index Rate for such Interest Adjustment Period(s).
	 
	 	 	 	“Reference Bill Index” means the one-month Reference Bills. One-month reference
bills have original durations to maturity of approximately 30 days.
	 
	 	 	 	“Reference Bill Index Rate” means, for any Interest Adjustment Period after the
first Interest Adjustment Period, the Money Market Yield for the Reference Bills as
established by the Reference Bill auction conducted by Freddie Mac most recently
preceding the first day of such Interest Adjustment Period, as displayed on the
Reference Bill Index Page. The Reference Bill Index Rate for the first Interest
Adjustment Period means the Money Market Yield for the Reference Bills as
established by the Reference Bill auction conducted by Freddie Mac most recently
preceding the first day of the month in which the first Interest Adjustment Period
begins, as displayed on the Reference Bill Index Page. The “Reference Bill Index
Page” is the Freddie Mac Debt Securities Web Page (accessed via the Freddie Mac
internet site at www.freddiemac.com), or at the option of Lender, any publication of
Reference Bills auction results available from Freddie Mac. However, if Freddie Mac
has not conducted a Reference Bill auction within the 60-calendar day period prior
to the first day of an Interest Adjustment Period, the Reference Bill Index Rate for
such Interest Adjustment Period will be the LIBOR Index Rate for such Interest
Adjustment Period.
	 
	 	 	 	“Remaining Amortization Period” means, at any point in time, the number of
consecutive calendar months equal to the number of months in the Amortization Period
minus the number of scheduled monthly installments of principal and interest
that have elapsed since the date of this Note.
	 
	 	 	 	“Security Instrument” means the multifamily mortgage, deed to secure debt or deed of
trust effective as of the effective date of this Note, from Borrower to or for the
benefit of Lender and securing this Note.
	 
	 	 	 	“Treasury Security” means the 4.125% U.S. Treasury Security due May 15, 2015.
	 
	 	 	 	“Window Period” means the Extension Period.

 

PAGE 3

 

	 	 	 	“Yield Maintenance Period” means the period from and including the date of this Note
until but not including the Scheduled Initial Maturity Date.

     (b) Other capitalized terms used but not defined in this Note shall have the meanings given to
such terms in the Security Instrument.

     2. Address for Payment. All payments due under this Note shall be payable at One Beacon
Street, 14th Floor, Boston, Massachusetts 02108, or such other place as may be designated by Notice
to Borrower from or on behalf of Lender.

     3. Payments.

     (a) During the Fixed Rate Period, interest will accrue on the outstanding principal balance of
this Note at the Fixed Interest Rate, subject to the provisions of Section 8 of this Note. During
the Extension Period, interest will accrue on the outstanding principal balance of this Note at the
Adjustable Interest Rate, subject to the provisions of Section 8 of this Note.

     (b) Interest under this Note shall be computed, payable and allocated on the basis of an
actual/360 interest calculation schedule (interest is payable for the actual number of days in each
month, and each month’s interest is calculated by multiplying the unpaid principal amount of this
Note as of the first day of the month for which interest is being calculated by the Fixed Interest
Rate (during the Fixed Rate Period) or the applicable Adjustable Interest Rate (during the
Extension Period), dividing the product by 360, and multiplying the quotient by the number of days
in the month for which interest is being calculated). For convenience in determining the amount of
a monthly installment of principal and interest under this Note, Lender will use a 30/360 interest
calculation payment schedule (each year is treated as consisting of twelve 30-day months).
However, as provided above, the portion of the monthly installment actually payable as and
allocated to interest will be based upon an actual/360 interest calculation schedule, and the
amount of each installment attributable to principal and the amount attributable to interest will
vary based upon the number of days in the month for which such installment is paid. Each monthly
payment of principal and interest will first be applied to pay in full interest due, and the
balance of the monthly payment paid by Borrower will be credited to principal.

     (c) Unless disbursement of principal is made by Lender to Borrower on the first day of a
calendar month, interest for the period beginning on the date of disbursement and ending on and
including the last day of such calendar month shall be payable by Borrower simultaneously with the
execution of this Note. If disbursement of principal is made by Lender to Borrower on the first
day of a calendar month, then no payment will be due from Borrower at the time of the execution of
this Note. The Installment Due Date for the first monthly installment payment under Section 3(d)
of interest only or principal and interest, as applicable, will be the First Installment Due Date
set forth in Section 1(a) of this Note. Except as provided in this Section 3(c) and in Section 10,
accrued interest will be payable in arrears.

     (d) Beginning on the First Installment Due Date, and continuing until and including the
monthly installment due on the Initial Maturity Date, accrued interest only shall be payable by
Borrower in consecutive monthly installments due and payable on the first day of each calendar
month. The amount of each monthly installment of interest only payable pursuant to this Section
3(d) on an Installment Due Date shall vary, and shall equal $16,266.67 multiplied by the number of
days in the month prior to the Installment Due Date.

     (e) Except as otherwise provided in this Section 3(e), all remaining Indebtedness, including
all principal and interest, shall be due and payable by Borrower on the Initial Maturity Date.
However, so long as (i) the Initial Maturity Date has not occurred prior to the Scheduled Initial
Maturity Date, and (ii) no Event of Default or event or circumstance which, with the giving of
notice or passage of time or both, could constitute an Event of Default exists on the

 

PAGE 4

 

Scheduled Initial Maturity Date, then the Extension Period automatically will become effective
and the date for full payment of the Indebtedness automatically shall be extended until the
Extended Maturity Date. If the Extension Period becomes effective, monthly installments of
principal and interest or interest only will be payable during the Extension Period as provided in
Section 3(f). Anything in Section 21 of the Security Instrument to the contrary notwithstanding,
during the Extension Period, Borrower will not request that Lender consent to, and Lender will not
consent to, a Transfer that, absent such consent, would constitute an Event of Default.

     (f) If the Extension Period becomes effective, beginning on March 1, 2015, and continuing
until and including the monthly installment due on the Extended Maturity Date, accrued interest
only shall be payable by Borrower in consecutive monthly installments due and payable on the first
day of each calendar month. The amount of the monthly installment of interest only payable pursuant
to this Section 3(f) on an Installment Due Date shall equal the product of (i) annual interest on
the unpaid principal balance of this Note as of the first day of the Interest Adjustment Period
immediately preceding the Installment Due Date (annual interest being such principal balance of
this Note multiplied by the Adjustable Interest Rate in effect for such Interest Adjustment
Period), divided by 360, multiplied by (ii) the number of days in such Interest Adjustment Period.

     (g) During the Extension Period, Lender shall provide Borrower with Notice, given in the
manner specified in the Security Instrument, of the amount of each monthly installment due under
this Note. However, if Lender has not provided Borrower with prior notice of the monthly payment
due on any Installment Due Date, then Borrower shall pay on that Installment Due Date an amount
equal to the monthly installment payment for which Borrower last received notice. If Lender at any
time determines that Borrower has paid one or more monthly installments in an incorrect amount
because of the operation of the preceding sentence, or because Lender has miscalculated the
Adjustable Interest Rate or has otherwise miscalculated the amount of any monthly installment, then
Lender shall give notice to Borrower of such determination. If such determination discloses that
Borrower has paid less than the full amount due for the period for which the determination was
made, Borrower, within 30 calendar days after receipt of the notice from Lender, shall pay to
Lender the full amount of the deficiency. If such determination discloses that Borrower has paid
more than the full amount due for the period for which the determination was made, then the amount
of the overpayment shall be credited to the next installment(s) of interest only or principal and
interest, as applicable, due under this Note (or, if an Event of Default has occurred and is
continuing, such overpayment shall be credited against any amount owing by Borrower to Lender).

     (h) All payments under this Note shall be made in immediately available U.S. funds.

     (i) Any regularly scheduled monthly installment of interest only or principal and interest
payable pursuant to this Section 3 that is received by Lender before the date it is due shall be
deemed to have been received on the due date for the purpose of calculating interest due.

     (j) Any accrued interest remaining past due for 30 days or more, at Lender’s discretion, may
be added to and become part of the unpaid principal balance of this Note and any reference to
“accrued interest” shall refer to accrued interest which has not become part of the unpaid
principal balance. Any amount added to principal pursuant to the Loan Documents shall bear
interest at the applicable rate or rates specified in this Note and shall be payable with such
interest upon demand by Lender and absent such demand, as provided in this Note for the payment of
principal and interest.

     (k) In accordance with Section 14, interest charged under this Note cannot exceed the Maximum
Interest Rate. If the Adjustable Interest Rate at any time exceeds the Maximum Interest Rate,
resulting in the charging of interest hereunder to be limited to the Maximum Interest Rate, then
any subsequent reduction in the Adjustable Interest Rate shall not reduce the rate at which
interest under this Note accrues below the Maximum Interest Rate until the total

 

PAGE 5

 

amount of interest accrued hereunder equals the amount of interest which would have accrued
had the Adjustable Interest Rate at all times been in effect.

     4. Application of Payments. If at any time Lender receives, from Borrower or otherwise, any
amount applicable to the Indebtedness which is less than all amounts due and payable at such time,
Lender may apply the amount received to amounts then due and payable in any manner and in any order
determined by Lender, in Lender’s discretion. Borrower agrees that neither Lender’s acceptance of
a payment from Borrower in an amount that is less than all amounts then due and payable nor
Lender’s application of such payment shall constitute or be deemed to constitute either a waiver of
the unpaid amounts or an accord and satisfaction.

     5. Security. The Indebtedness is secured by, among other things, the Security Instrument, and
reference is made to the Security Instrument for other rights of Lender as to collateral for the
Indebtedness.

     6. Acceleration. If an Event of Default has occurred and is continuing, the entire unpaid
principal balance, any accrued interest, any prepayment premium payable under Section 10, and all
other amounts payable under this Note and any other Loan Document, shall at once become due and
payable, at the option of Lender, without any prior notice to Borrower (except if notice is
required by applicable law, then after such notice). Lender may exercise this option to accelerate
regardless of any prior forbearance. For purposes of exercising such option, Lender shall
calculate the prepayment premium as if prepayment occurred on the date of acceleration. If
prepayment occurs thereafter, Lender shall recalculate the prepayment premium as of the actual
prepayment date.

     7. Late Charge.

     (a) If any monthly installment of interest or principal and interest or other amount payable
under this Note or under the Security Instrument or any other Loan Document is not received in full
by Lender (i) during the Fixed Rate Period, within ten (10) days after the installment or other
amount is due, or (ii) during the Extension Period, within five (5) days after the installment or
other amount is due, counting from and including the date such installment or other amount is due
(unless applicable law requires a longer period of time before a late charge may be imposed, in
which event such longer period shall be substituted), Borrower shall pay to Lender, immediately and
without demand by Lender, a late charge equal to five percent (5%) of such installment or other
amount due (unless applicable law requires a lesser amount be charged, in which event such lesser
amount shall be substituted).

     (b) Borrower acknowledges that its failure to make timely payments will cause Lender to incur
additional expenses in servicing and processing the Loan and that it is extremely difficult and
impractical to determine those additional expenses. Borrower agrees that the late charge payable
pursuant to this Section represents a fair and reasonable estimate, taking into account all
circumstances existing on the date of this Note, of the additional expenses Lender will incur by
reason of such late payment. The late charge is payable in addition to, and not in lieu of, any
interest payable at the Default Rate pursuant to Section 8.

     8. Default Rate.

     (a) So long as (i) any monthly installment under this Note remains past due for thirty (30)
days or more or (ii) any other Event of Default has occurred and is continuing, then
notwithstanding anything in Section 3 of this Note to the contrary, interest under this Note shall
accrue on the unpaid principal balance from the Installment Due Date of the first such unpaid
monthly installment or the occurrence of such other Event of Default, as applicable, at the Default
Rate.

 

PAGE 6

 

     (b) From and after the Maturity Date, the unpaid principal balance shall continue to bear
interest at the Default Rate until and including the date on which the entire principal balance is
paid in full.

     (c) Borrower acknowledges that (i) its failure to make timely payments will cause Lender to
incur additional expenses in servicing and processing the Loan, (ii) during the time that any
monthly installment under this Note is delinquent for thirty (30) days or more, Lender will incur
additional costs and expenses arising from its loss of the use of the money due and from the
adverse impact on Lender’s ability to meet its other obligations and to take advantage of other
investment opportunities; and (iii) it is extremely difficult and impractical to determine those
additional costs and expenses. Borrower also acknowledges that, during the time that any monthly
installment under this Note is delinquent for thirty (30) days or more or any other Event of
Default has occurred and is continuing, Lender’s risk of nonpayment of this Note will be materially
increased and Lender is entitled to be compensated for such increased risk. Borrower agrees that
the increase in the rate of interest payable under this Note to the Default Rate represents a fair
and reasonable estimate, taking into account all circumstances existing on the date of this Note,
of the additional costs and expenses Lender will incur by reason of the Borrower’s delinquent
payment and the additional compensation Lender is entitled to receive for the increased risks of
nonpayment associated with a delinquent loan.

     9. Limits on Personal Liability.

     (a) Except as otherwise provided in this Section 9, Borrower shall have no personal liability
under this Note, the Security Instrument or any other Loan Document for the repayment of the
Indebtedness or for the performance of any other obligations of Borrower under the Loan Documents
and Lender’s only recourse for the satisfaction of the Indebtedness and the performance of such
obligations shall be Lender’s exercise of its rights and remedies with respect to the Mortgaged
Property and to any other collateral held by Lender as security for the Indebtedness. This
limitation on Borrower’s liability shall not limit or impair Lender’s enforcement of its rights
against any guarantor of the Indebtedness or any guarantor of any other obligations of Borrower.

     (b) Borrower shall be personally liable to Lender for the amount of the Base Recourse, plus
any other amounts for which Borrower has personal liability under this Section 9.

     (c) In addition to the Base Recourse, Borrower shall be personally liable to Lender for the
repayment of a further portion of the Indebtedness equal to any loss or damage suffered by Lender
as a result of the occurrence of any of the following events:

	 	(i)	 	Borrower fails to pay to Lender upon demand after an Event of
Default all Rents to which Lender is entitled under Section 3(a) of the
Security Instrument and the amount of all security deposits collected by
Borrower from tenants then in residence. However, Borrower will not be
personally liable for any failure described in this subsection (i) if Borrower
is unable to pay to Lender all Rents and security deposits as required by the
Security Instrument because of a valid order issued in a bankruptcy,
receivership, or similar judicial proceeding.
	 
	 	(ii)	 	Borrower fails to apply all insurance proceeds and condemnation
proceeds as required by the Security Instrument. However, Borrower will not be
personally liable for any failure described in this subsection (ii) if Borrower
is unable to apply insurance or condemnation proceeds as required by the
Security Instrument because of a valid order issued in a bankruptcy,
receivership, or similar judicial proceeding.

 

PAGE 7

 

	 	(iii)	 	Borrower fails to comply with Section 14(g) or (h) of the
Security Instrument relating to the delivery of books and records, statements,
schedules and reports.
	 
	 	(iv)	 	Borrower fails to pay when due in accordance with the terms of
the Security Instrument the amount of any item below marked “Deferred”;
provided however, that if no item is marked “Deferred”, this Section 9(c)(iv)
shall be of no force or effect.

	 	 	 
	[Deferred]

	 	Hazard Insurance premiums or other insurance premiums,
	[Deferred]

	 	Taxes,
	[Deferred]

	 	water and sewer charges (that could become a lien on the Mortgaged Property),
	[N/A]

	 	ground rents,
	[Deferred]

	 	assessments or other charges (that could become a lien on the Mortgaged Property)

     (d) In addition to the Base Recourse, Borrower shall be personally liable to Lender for:

     (i) the performance of all of Borrower’s obligations under Section 18
of the Security Instrument (relating to environmental matters);

     (ii) the costs of any audit under Section 14(g) of the Security
Instrument; and

     (iii) any costs and expenses incurred by Lender in connection with the
collection of any amount for which Borrower is personally liable under this
Section 9, including Attorneys’ Fees and Costs and the costs of conducting
any independent audit of Borrower’s books and records to determine the
amount for which Borrower has personal liability.

     (e) All payments made by Borrower with respect to the Indebtedness and all amounts received by
Lender from the enforcement of its rights under the Security Instrument and the other Loan
Documents shall be applied first to the portion of the Indebtedness for which Borrower has no
personal liability.

     (f) Notwithstanding the Base Recourse, Borrower shall become personally liable to Lender for
the repayment of all of the Indebtedness upon the occurrence of any of the following Events of
Default:

     (i) Borrower’s ownership of any property or operation of any business
not permitted by Section 33 of the Security Instrument;

     (ii) a Transfer (including, but not limited to, a lien or encumbrance)
that is an Event of Default under Section 21 of the Security Instrument,
other than a Transfer consisting solely of the involuntary removal or
involuntary withdrawal of a general partner in a limited partnership or a
manager in a limited liability company; or

     (iii) fraud or written material misrepresentation by Borrower or any
officer, director, partner, member or employee of Borrower in connection
with the application for or creation of the Indebtedness or any request for
any action or consent by Lender.

 

PAGE 8

 

     (g) To the extent that Borrower has personal liability under this Section 9, Lender may
exercise its rights against Borrower personally without regard to whether Lender has exercised any
rights against the Mortgaged Property or any other security, or pursued any rights against any
guarantor, or pursued any other rights available to Lender under this Note, the Security
Instrument, any other Loan Document or applicable law. To the fullest extent permitted by
applicable law, in any action to enforce Borrower’s personal liability under this Section 9,
Borrower waives any right to set off the value of the Mortgaged Property against such personal
liability.

     10. Voluntary and Involuntary Prepayments.

     (a) Any receipt by Lender of principal due under this Note prior to the Maturity Date, other
than principal required to be paid in monthly installments pursuant to Section 3, constitutes a
prepayment of principal under this Note. Without limiting the foregoing, any application by
Lender, prior to the Maturity Date, of any proceeds of collateral or other security to the
repayment of any portion of the unpaid principal balance of this Note constitutes a prepayment
under this Note.

     (b) Borrower may voluntarily prepay all of the unpaid principal balance of this Note on an
Installment Due Date so long as Borrower designates the date for such prepayment in a Notice from
Borrower to Lender given at least 30 days prior to the date of such prepayment. If an Installment
Due Date (as defined in Section 1(a)) falls on a day which is not a Business Day, then with respect
to payments made under this Section 10 only, the term “Installment Due Date” shall mean the
Business Day immediately preceding the scheduled Installment Due Date.

     (c) Notwithstanding subsection (b) above, Borrower may voluntarily prepay all of the unpaid
principal balance of this Note on a Business Day other than an Installment Due Date if Borrower
provides Lender with the Notice set forth in subsection (b) and meets the other requirements set
forth in this subsection. Borrower acknowledges that Lender has agreed that Borrower may prepay
principal on a Business Day other than an Installment Due Date only because Lender shall deem any
prepayment received by Lender on any day other than an Installment Due Date to have been received
on the Installment Due Date immediately following such prepayment and Borrower shall be responsible
for all interest that would have been due if the prepayment had actually been made on the
Installment Due Date immediately following such prepayment.

     (d) Unless otherwise expressly provided in the Loan Documents, Borrower may not voluntarily
prepay less than all of the unpaid principal balance of this Note. In order to voluntarily prepay
all or any part of the principal of this Note, Borrower must also pay to Lender, together with the
amount of principal being prepaid, (i) all accrued and unpaid interest due under this Note, plus
(ii) all other sums due to Lender at the time of such prepayment, plus (iii) any prepayment premium
calculated pursuant to Section 10(e).

     (e) Except as provided in Section 10(f), a prepayment premium shall be due and payable by
Borrower in connection with any prepayment of principal under this Note during the Prepayment
Premium Period. The prepayment premium shall be whichever is the greater of subsections (A) and
(B) below:

	 	(A)	 	1.0% of the amount of principal being prepaid;
or
	 
	 	(B)	 	the product obtained by multiplying:

	 	(1)	 	the amount of principal being
prepaid or accelerated,
	 
	 	 	 	by

 

PAGE 9

 

	 	(2)	 	the excess (if any) of the
Monthly Note Rate over the Assumed Reinvestment Rate,
	 
	 	 	 	by
	 
	 	(3)	 	the Present Value Factor.

For purposes of subsection (B), the following definitions shall apply:

     Monthly Note Rate: one-twelfth (1/12) of the Fixed Interest Rate,
expressed as a decimal calculated to five digits.

     Prepayment Date: in the case of a voluntary prepayment, the date on
which the prepayment is made; in the case of the application by Lender of
collateral or security to a portion of the principal balance, the date of
such application.

     Assumed Reinvestment Rate: one-twelfth (1/12) of the yield rate, as of
the date 5 Business Days before the Prepayment Date, on the Treasury
Security, as reported in The Wall Street Journal, expressed as a decimal
calculated to five digits. In the event that no yield is published on the
applicable date for the Treasury Security, Lender, in its discretion, shall
select the non-callable Treasury Security maturing in the same year as the
Treasury Security with the lowest yield published in The Wall Street Journal
as of the applicable date. If the publication of such yield rates in The
Wall Street Journal is discontinued for any reason, Lender shall select a
security with a comparable rate and term to the Treasury Security. The
selection of an alternate security pursuant to this Section shall be made in
Lender’s discretion.

     Present Value Factor: the factor that discounts to present value the
costs resulting to Lender from the difference in interest rates during the
months remaining in the Yield Maintenance Period, using the Assumed
Reinvestment Rate as the discount rate, with monthly compounding, expressed
numerically as follows:

     n = the number of months remaining in Yield Maintenance Period;
provided, however, if a prepayment occurs on an Installment Due Date, then
the number of months remaining in the Yield Maintenance Period shall be
calculated beginning with the month in which such prepayment occurs and if
such prepayment occurs on a Business Day other than an Installment Due Date,
then the number of months remaining in the Yield Maintenance Period shall be
calculated beginning with the month immediately following the date of such
prepayment.

     ARR = Assumed Reinvestment Rate

 

PAGE 10

 

     (f) Notwithstanding any other provision of this Section 10, no prepayment premium shall be
payable with respect to (i) any prepayment made during the Window Period, or (ii) any prepayment
occurring as a result of the application of any insurance proceeds or condemnation award under the
Security Instrument.

     (g) Unless Lender agrees otherwise in writing, a permitted or required prepayment of less than
the unpaid principal balance of this Note shall not extend or postpone the due date of any
subsequent monthly installments or change the amount of such installments.

     (h) Borrower recognizes that any prepayment of any of the unpaid principal balance of this
Note, whether voluntary or involuntary or resulting from an Event of Default by Borrower, will
result in Lender’s incurring loss, including reinvestment loss, additional expense and frustration
or impairment of Lender’s ability to meet its commitments to third parties. Borrower agrees to pay
to Lender upon demand damages for the detriment caused by any prepayment, and agrees that it is
extremely difficult and impractical to ascertain the extent of such damages. Borrower therefore
acknowledges and agrees that the formula for calculating prepayment premiums set forth in this Note
represents a reasonable estimate of the damages Lender will incur because of a prepayment.
Borrower further acknowledges that any lockout and the prepayment premium provisions of this Note
are a material part of the consideration for the Loan, and that the terms of this Note are in other
respects more favorable to Borrower as a result of the Borrower’s voluntary agreement to the
lockout and prepayment premium provisions.

     11. Costs and Expenses. To the fullest extent allowed by applicable law, Borrower shall pay
all expenses and costs, including Attorneys’ Fees and Costs incurred by Lender as a result of any
default under this Note or in connection with efforts to collect any amount due under this Note, or
to enforce the provisions of any of the other Loan Documents, including those incurred in
post-judgment collection efforts and in any bankruptcy proceeding (including any action for relief
from the automatic stay of any bankruptcy proceeding) or judicial or non-judicial foreclosure
proceeding.

     12. Forbearance. Any forbearance by Lender in exercising any right or remedy under this Note,
the Security Instrument, or any other Loan Document or otherwise afforded by applicable law, shall
not be a waiver of or preclude the exercise of that or any other right or remedy. The acceptance
by Lender of any payment after the due date of such payment, or in an amount which is less than the
required payment, shall not be a waiver of Lender’s right to require prompt payment when due of all
other payments or to exercise any right or remedy with respect to any failure to make prompt
payment. Enforcement by Lender of any security for Borrower’s obligations under this Note shall
not constitute an election by Lender of remedies so as to preclude the exercise of any other right
or remedy available to Lender.

     13. Waivers. Borrower and all endorsers and guarantors of this Note and all other third party
obligors waive presentment, demand, notice of dishonor, protest, notice of acceleration, notice of
intent to demand or accelerate payment or maturity, presentment for payment, notice of nonpayment,
grace, and diligence in collecting the Indebtedness.

     14. Loan Charges (Texas Only). Borrower and Lender intend at all times to comply with the law
of the State of Texas governing the Maximum Interest Rate or maximum amount of interest payable on
or in connection with this Note and the Indebtedness (or applicable United States federal law to
the extent that it permits Lender to contract for, charge, take, reserve or receive a greater
amount of interest than under Texas law). If the applicable law is ever judicially interpreted so
as to render usurious any amount payable under this Note or under any other Loan Document, or
contracted for, charged, taken, reserved or received with respect to the Indebtedness, or as a
result of acceleration of the maturity of this Note, or if any prepayment by Borrower results in
Borrower having paid any interest in excess of that permitted by any applicable law, then Borrower
and Lender expressly intend that all excess amounts collected by Lender shall be applied to reduce
the unpaid principal balance of this Note (or, if this Note has

 

PAGE 11

 

been or would thereby be paid in full, shall be refunded to Borrower), and the provisions of
this Note, the Security Instrument and any other Loan Documents immediately shall be deemed
reformed and the amounts thereafter collectible under this Note or any other Loan Document reduced,
without the necessity of the execution of any new documents, so as to comply with any applicable
law, but so as to permit the recovery of the fullest amount otherwise payable under this Note or
any other Loan Document. The right to accelerate the Maturity Date of this Note does not include
the right to accelerate any interest, which has not otherwise accrued on the date of such
acceleration, and Lender does not intend to collect any unearned interest in the event of
acceleration. All sums paid or agreed to be paid to Lender for the use, forbearance or detention
of the Indebtedness shall, to the extent permitted by any applicable law, be amortized, prorated,
allocated and spread throughout the full term of the Indebtedness until payment in full so that the
rate or amount of interest on account of the Indebtedness does not exceed the applicable usury
ceiling. Notwithstanding any provision contained in this Note, the Security Instrument or any
other Loan Document that permits the compounding of interest, including any provision by which any
accrued interest is added to the principal amount of this Note, the total amount of interest that
Borrower is obligated to pay and Lender is entitled to receive with respect to the Indebtedness
shall not exceed the amount calculated on a simple (i.e., non-compounded) interest basis at
the maximum rate on principal amounts actually advanced to or for the account of Borrower,
including all current and prior advances and any advances made pursuant to the Security Instrument
or other Loan Documents (such as for the payment of taxes, insurance premiums and similar expenses
or costs).

     15. Commercial Purpose. Borrower represents that Borrower is incurring the Indebtedness
solely for the purpose of carrying on a business or commercial enterprise, and not for personal,
family, household, or agricultural purposes.

     16. Counting of Days. Except where otherwise specifically provided, any reference in this
Note to a period of “days” means calendar days, not Business Days.

     17. Governing Law. This Note shall be governed by the law of the Property Jurisdiction.

     18. Captions. The captions of the Sections of this Note are for convenience only and shall be
disregarded in construing this Note.

     19. Notices; Written Modifications.

     (a) All Notices, demands and other communications required or permitted to be given pursuant
to this Note shall be given in accordance with Section 31 of the Security Instrument.

     (b) Any modification or amendment to this Note shall be ineffective unless in writing signed
by the party sought to be charged with such modification or amendment; provided, however, that in
the event of a Transfer under the terms of the Security Instrument that requires Lender’s consent,
any or some or all of the Modifications to Multifamily Note set forth in Exhibit A to this Note may
be modified or rendered void by Lender at Lender’s option, by Notice to Borrower and the
transferee, as a condition of Lender’s consent.

     20. Consent to Jurisdiction and Venue. Borrower agrees that any controversy arising under or
in relation to this Note may be litigated in the Property Jurisdiction. The state and federal
courts and authorities with jurisdiction in the Property Jurisdiction shall have jurisdiction over
all controversies that shall arise under or in relation to this Note. Borrower irrevocably
consents to service, jurisdiction, and venue of such courts for any such litigation and waives any
other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise.
However, nothing in this Note is intended to limit any right that Lender may have to bring any
suit, action or proceeding relating to matters arising under this Note in any court of any other
jurisdiction.

 

PAGE 12

 

     21. WAIVER OF TRIAL BY JURY. BORROWER AND LENDER EACH (A) AGREES NOT TO ELECT A TRIAL BY JURY
WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE PARTIES AS
LENDER AND BORROWER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY
WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS
WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH
THE BENEFIT OF COMPETENT LEGAL COUNSEL.

     22. State-Specific Provisions. N/A.

     ATTACHED EXHIBIT. The Exhibit noted below, if marked with an “X” in the space provided, is
attached to this Note:

	 	 	 	 	 
	x

	 	Exhibit A
	 	Modifications to Multifamily Note

     IN WITNESS WHEREOF, and in consideration of the Lender’s agreement to lend Borrower the
principal amount set forth above, Borrower has signed and delivered this Note under seal or has
caused this Note to be signed and delivered under seal by its duly authorized representative.
Borrower intends that this Note shall be deemed to be signed and delivered as a sealed instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

PAGE 13

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	POST ADDISON CIRCLE LIMITED
	 	 	PARTNERSHIP, a Georgia limited partnership
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Post Addison Circle GP, LLC, a Georgia limited
	 	 	 	 	liability company, its sole general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Post Apartment Homes, L.P., a Georgia
	 	 	 	 	 	 	limited partnership, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Post GP Holdings, Inc., a Georgia
	 	 	 	 	 	 	 	 	corporation, its sole general partner
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	/s/ Christopher J. Papa	 	(SEAL)
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name:
	 	Christopher J. Papa	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:
	 	Executive Vice	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	President and Chief	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	Borrower’s Social Security/Employer ID Number	 	 

 

PAGE 14

 

Endorsement page to that Multifamily Note dated as of January 25, 2008 in the amount of
$120,000,000.00

	 	 	 	 	 	 	 
	PAY TO THE ORDER OF FEDERAL HOME LOAN
	MORTGAGE CORPORATION, WITHOUT
	RECOURSE.
	 
	 	 	 	 	 	 
	DEUTSCHE BANK BERKSHIRE
	 	 	MORTGAGE, INC., d/b/a DB Berkshire
	 	 	Mortgage, Inc., a Delaware corporation
	 
	 	 	 	 	 	 
	By:	 	/s/ Denis G. Leger	 	(SEAL)
	 	 	 	 	 
	 

	 	Name:
	 	Denis G. Leger	 	 
	 

	 	Title:
	 	Officer	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Steven B. Wendel	 	(SEAL)
	 	 	 	 	 
	 

	 	Name:
	 	Steven B. Wendel	 	 
	 

	 	Title:
	 	Officer	 	 

FHLMC Loan No. 487782259

 

PAGE 15

 

EXHIBIT A

MODIFICATIONS TO MULTIFAMILY NOTE

The following modifications are made to the text of the Note that precedes this Exhibit.

	1.	 	Section 9(c) is amended by the addition of the following new Section 9(c)(v):

“(v) Borrower fails to comply with the requirements of Section 10 of the Security
Instrument with respect to the litigation pending in the United States Court for the
District of Columbia captioned “Equal Rights Center vs. Post Properties, Inc., Post
GP Holdings, Inc. and Post Apartment Homes, L.P. No. 1:06CV1991 (D.DC)” (“ERC
Litigation”).”

	2.	 	Section 7(a) of the Note shall be amended as follows:

     (a) If any monthly installment of interest or principal and interest or other
amount payable under this Note or under the Security Instrument or any other Loan
Document is not received in full by Lender (i) during the Fixed Rate Period, within ten
(10) days after the installment or other amount is due, or (ii) during the Extension
Period, within five (5) days after the installment or other amount is due, counting from
and including the date such installment or other amount is due (unless applicable law
requires a longer period of time before a late charge may be imposed, in which event
such longer period shall be substituted), Borrower shall pay to Lender, immediately and
without demand by Lender, a late charge equal to five percent (5%) of such installment
or other amount due, but excluding principal due upon maturity or upon acceleration of
the Indebtedness (unless applicable law requires a lesser amount be charged, in which
event such lesser amount shall be substituted). As the Amortization Period is zero
months and the monthly payments required by Section 3 do not provide for payments of
principal, late charges will be calculated only on the actual amount of any interest
only payment not paid within the period specified in this Section 7(a).

	3.	 	Section 1 is revised to insert the words “as identified on the Freddie Mac Debt Securities Web
Page (accessed via the Freddie Mac internet site at www.freddiemac.com)” after the words “Money
Market Yield” in the definition of “Reference Bill Index Rate”.
	 
	4.	 	Section 3(i) is revised to insert the word “solely” after the words “due date”.
	 
	5.	 	Section 3(e) is revised to delete the words “or event or circumstance which, with the giving of
notice or passage of time or both, could constitute an Event of Default”.
	 
	6.	 	Section 13 is revised to insert the following at the beginning of the Section:

 

PAGE A-1

 

	 	 	“Except as otherwise expressly provided in the Loan Documents with respect to notices of
defaults and cure periods where applicable,”
	 
	7.	 	Section 9(a) is amended by (i) deleting from the first line the phrase “Borrower shall have
no” and inserting in its place the following:
	 
	 	 	“neither Borrower, Borrower’s partners or members nor any of the foregoing parties’
shareholders, officers, directors, principals, agents or employees, other than under any
guaranty or other agreement(s) with Lender to which any such party is bound, shall have any”
	 
	 	 	and (ii) inserting in the last sentence thereof the following phrase immediately after
“Borrower’s” and immediately prior to “liability”:
	 
	 	 	“and such other aforementioned parties’”.
	 
	8.	 	Section 9(c)(i) is amended (i) by deleting from the end of the first sentence the phrase
“then in residence” and inserting in its place the phrase “under Leases which remain
refundable to such tenants as of the date of Lender’s demand, (ii) by inserting in the second
sentence after “security deposits” the phrase “under Leases”, (iii) by deleting from the
second sentence the words “a valid” and inserting in their place the word “an”, and (iv) by
inserting the following at the end of the second sentence, immediately after “proceeding” and
before the period (.):
	 
	 	 	“or if Borrower is prevented from collecting the Rents by Lender’s revocation of Borrower’s
license to collect the Rents”
	 
	9.	 	Section 9(c)(iv) is amended by inserting in the first sentence thereof the following phrase
immediately after the word “Deferred” and immediately prior to the semi-colon (;):
	 
	 	 	“at any time while Lender is not collecting Imposition Deposits for such amounts”.

 

PAGE A-2

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