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EXHIBIT 10.3

ZILLOW GROUP, INC.
2020 INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD NOTICE
Zillow Group, Inc. (the “Company”) hereby grants to you a Restricted Stock Unit Award (the “Award”).  The Award is subject to all the terms and conditions set forth in this Restricted Stock Unit Award Notice (the “Award Notice”) and the Restricted Stock Unit Award Agreement (the “Award Agreement”) and the Zillow Group, Inc. 2020 Incentive Plan (the “Plan”), which are incorporated into the Award Notice in their entirety.  Subject to the terms and conditions of the Award Notice and the Award Agreement, the Award will be settled in shares of the Company’s Class C Capital Stock upon vesting.
						
		
	Participant:
	
		
	Grant Number:	
		
	Grant Date:
	
		
	Number of Restricted Stock Units Subject to Award (the “Units”):
	
		
	Vesting Commencement Date:	
		
	Vesting Schedule (subject to continued employment or service):
	

Additional Terms/Acknowledgement:  You acknowledge receipt of, and understand and agree to, the Award Notice, the Award Agreement and the Plan.  You further acknowledge that as of the Grant Date, the Award Notice, the Award Agreement and the Plan set forth the entire understanding between you and the Company regarding the Award and supersede all prior oral and written agreements or other communications on the subject. The Award is hereby granted in full satisfaction of the Company’s obligations to grant such Award pursuant to any new hire offer letter, promotion letter, or other communication by the Company, if applicable.

Attachment
1.  Restricted Stock Unit Award Agreement (including any appendices thereto)

ZILLOW GROUP, INC.
2020 INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

Pursuant to your Restricted Stock Unit Award Notice (the “Award Notice”) and this Restricted Stock Unit Award Agreement (together, this “Award Agreement”), Zillow Group, Inc. (the “Company”) has granted to you a Restricted Stock Unit Award (the “Award”) under the Zillow Group, Inc. 2020 Incentive Plan (the “Plan”) for the number of Restricted Stock Units indicated in your Award Notice.  Capitalized terms not explicitly defined in this Award Agreement but defined in the Plan have the same definitions as in the Plan.

The details of the Award are as follows:

1.         Vesting

Subject to the terms of this Award Agreement, the Award will vest as set forth in the Award Notice (the “Vesting Schedule”).  Restricted Stock Units that have vested and are no longer subject to forfeiture according to the Vesting Schedule are referred to herein as “Vested Units.”  Restricted Stock Units that have not vested and remain subject to forfeiture under the Vesting Schedule are referred to herein as “Unvested Units.”  The Unvested Units will vest (and to the extent so vested cease to be Unvested Units remaining subject to forfeiture) in accordance with the Vesting Schedule (the Unvested and Vested Units are collectively referred to herein as the “Units”).  

As soon as practicable after Unvested Units become Vested Units, but not later than 60 days after vesting, the Company will settle the Vested Units by issuing to you, for each Vested Unit, one share of Class C Capital Stock.  If a vesting date falls on a weekend or any other date on which the Nasdaq Stock Market (“NASDAQ”) is not open, affected Units will vest on the next following NASDAQ business day.  The Award will terminate and the Unvested Units will be forfeited upon your Termination of Service as set forth in Section 2.  

2.         Termination of Service

Upon your Termination of Service for any reason, any portion of the Award that has not vested as provided in Section 1 will immediately be forfeited to the Company without payment of any consideration to you.  You will have no further rights, and the Company will have no further obligations to you, with respect to such Unvested Units.

3.         Securities Law Compliance

3.1       You represent and warrant that you have been furnished with a copy of the Plan and the plan summary for the Plan.

3.2       You hereby agree that you will in no event sell or distribute all or any part of the shares of Class C Capital Stock that you may receive pursuant to settlement of the Units (the “Shares”) unless (a) there is an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), and applicable state securities laws covering any such transaction involving the Shares, or (b) the Company receives an opinion of your legal counsel (concurred in by legal counsel for the Company) stating that such transaction is exempt from registration or the Company otherwise satisfies itself that such transaction is exempt from registration.  You understand that the Company has no obligation to you to maintain any registration of the Shares with the Securities and Exchange Commission and has not represented to you that it will so maintain registration of the Shares.  Any sale of Shares is also subject to the Company’s Insider Trading Policy. 

3.3       You hereby agree to indemnify the Company and hold it harmless from and against any loss, claim or liability, including attorneys’ fees or legal expenses, incurred by the Company as a result of any breach by you of, or any inaccuracy in, any representation, warranty or statement made by you in this Award Agreement or the breach by you of any terms or conditions of this Award Agreement.

4.         Transfer Restrictions

Units may not be sold, transferred, assigned, encumbered, pledged or otherwise disposed of, whether voluntarily or by operation of law.

5.         No Rights as Shareholder

You will not have any voting, dividend or any other rights as a shareholder of the Company with respect to the Units.

6.         Independent Tax Advice

You acknowledge that determining the actual tax consequences to you of receiving or disposing of the Units and the Shares may be complicated.  These tax consequences will depend, in part, on your specific situation and may also depend on the resolution of currently uncertain tax law and other variables not within the control of the Company.  You are aware that you should consult a competent and independent tax advisor for a full understanding of the specific tax consequences to you of receiving the Units and receiving or disposing of the Shares.  Prior to executing the Award Notice, you either have consulted with a competent tax advisor independent of the Company to obtain tax advice concerning the receipt of the Units and the receipt or disposition of the Shares in light of your specific situation or you have had the opportunity to consult with such a tax advisor but chose not to do so.

7.         Book Entry Registration of Shares

The Company will issue the Shares by registering the Shares in book entry form with the Company’s transfer agent in your name and any applicable restrictions will be noted in the records of the Company’s transfer agent and in the book entry system.

8.         Withholding
8.1       You are ultimately responsible for all taxes owed in connection with the Award (e.g., upon vesting and/or upon receipt of the Shares), including any federal, state, provincial, local or foreign taxes of any kind required by law to be withheld by the Company or a Related Company in connection with the Award, including FICA or any other tax obligation (the “Tax Withholding Obligation”), regardless of any action the Company or any Related Company takes with respect to any such Tax Withholding Obligation.  The Company makes no representation or undertaking regarding the adequacy of any tax withholding made in connection with the Award.  The Company has no obligation to deliver Shares pursuant to the Award until you have satisfied the Tax Withholding Obligation.

8.2       In order to satisfy your obligations set forth in Section 8.1, you previously have or now hereby irrevocably appoint any brokerage firm acceptable to the Company for such purpose (the “Agent”) as your Agent, and authorize the Agent, to: 
						
	     (a)	Sell on the open market at the then prevailing market price(s), on your behalf, as soon as practicable on or after the settlement date for any Vested Units, the minimum number of Shares (rounded up to the next whole number) sufficient to generate proceeds to cover the amount of any Tax Withholding Obligation and all applicable fees and commissions due to, or required to be collected by, the Agent; 

		
	(b)	Remit directly to the Company the cash amount necessary to cover the payment of such Tax Withholding Obligation, as of such date;
		
	(c)	Retain the amount required to cover all applicable brokerage fees, commissions and other costs of sale due to, or required to be collected by, the Agent, relating directly to the sale of Shares referred to in clause (a) above; and

		
	(d)	Remit any remaining funds to you.

Any prior written agreement by you to the foregoing terms with respect to the Units is referred to as the “Tax Withholding Agreement.”  As of the date of execution of the Tax Withholding Agreement or the Award Notice, as applicable, you represent and warrant that you are not aware of any material nonpublic information with respect to the Company or any securities of the Company; are not subject to any legal, regulatory or contractual restriction that would prevent the Agent from conducting sales as provided herein; do not have, and will not attempt to exercise, authority, influence or control over any sales of Shares effected pursuant to this Section 8.2; and are entering into this Section 8.2 of this Award Agreement in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 (regarding trading of the Company’s securities on the basis of material nonpublic information) under the Exchange Act.  It is the intent of the parties that this Section 8.2 comply with the requirements of Rule 10b5-1(c)(1)(i)(B) under the Exchange Act and this Award Agreement will be interpreted to comply with the requirements of Rule 10b5-1(c) of the Exchange Act.

You understand that the Agent may effect sales as provided in clause (a) above jointly with sales for other employees of the Company and that the average price for executions resulting from bunched orders will be assigned to your account.  You acknowledge that neither the Company nor the Agent is under any obligation to arrange for such sales at any particular price, and that the proceeds of any such sales may not be sufficient to satisfy your Tax Withholding Obligation.  In addition, you acknowledge that it may not be possible to sell Shares as provided by this Section 8.2 due to (i) a legal or contractual restriction applicable to you or the Agent, (ii) a market disruption, or (iii) rules governing order execution priority on the NASDAQ Stock Market or other exchange where the Shares may be traded.  In the event of the Agent’s inability to sell any Shares or that number of Shares sufficient to cover your personal tax withholding obligation, you will continue to be responsible for payment to the Company of all federal, state, local and foreign taxes that are required by applicable laws and regulations to be withheld.

You acknowledge that regardless of any other term or condition of this Award Agreement, neither the Agent nor the Company will be liable to you for (a) special, indirect, punitive, exemplary, or consequential damages, or incidental losses or damages of any kind, or (b) any failure to perform or for any delay in performance that results from a cause or circumstance that is beyond the Agent’s reasonable control.  

You hereby agree to execute and deliver to the Agent any other agreements or documents as the Agent or the Company reasonably deems necessary or appropriate to carry out the purposes and intent of this Section 8.2.  The Agent is a third party beneficiary of this Section 8.2.

Notwithstanding the foregoing terms of this Section 8.2, if you are subject to “blackout trading periods” under the Company’s Insider Trading Policy, your agreement to the terms of this Section 8.2 (whether pursuant to a Tax Withholding Agreement or execution of the Award Notice, as applicable) will only be effective if you agree to the terms of this Section 8.2 at a time that is outside of a “blackout period.”

8.3       Notwithstanding the foregoing, to the maximum extent permitted by law, the Company has the right to retain without notice from Shares issuable under the Award or from salary or other amounts payable to you, a number of whole Shares or cash having a value sufficient to satisfy the Tax Withholding Obligation (which Shares may be withheld up to the applicable minimum required tax withholding rate or up to such other applicable rate permitted by the Company that avoids adverse treatment for financial accounting purposes).  

8.4       Furthermore, you acknowledge that the Company (a) makes no representations or undertakings regarding the treatment of any Tax Withholding Obligations or tax treatment in connection with any aspect of the Award, including but not limited to, the grant, vesting, the issuance of Shares upon vesting, the subsequent sale of Shares acquired pursuant to the Award and the receipt of any dividends, and (b) does not commit to and is under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax Withholding Obligations or achieve any particular tax result.  Further, if you have become subject to tax in more than one jurisdiction, you acknowledge that the Company (or your employer, as applicable) may be required to withhold or account for Tax Withholding Obligations in more than one jurisdiction.

9.         General Provisions

9.1       No Right to Damages.  You will have no right to bring a claim or to receive damages if any portion of the Award is cancelled or expires unvested.  The loss of existing or potential profit in the Award will not constitute an element of damages in the event of your Termination of Service for any reason even if the termination is in violation of an obligation of the Company or a Related Company to you.

9.2       Recovery of Compensation.  In accordance with Section 17.6 of the Plan, the Award is subject to the requirements of (a) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder, (b) similar rules under the laws of any other jurisdiction, (c) any compensation recovery or clawback policies adopted by the Company to implement any such requirements or (d) any other compensation recovery or clawback policies as may be adopted from time to time by the Company, all to the extent determined by the Committee in its discretion to be applicable to you and/or required by applicable law.

9.3       Assignment.  The Company may assign its rights under this Award Agreement at any time, whether or not such rights are then exercisable, to any person or entity selected by the Company’s Board of Directors.

9.4       No Waiver.  No waiver of any provision of this Award Agreement will be valid unless in writing and signed by the person against whom such waiver is sought to be enforced, nor will failure to enforce any right hereunder constitute a continuing waiver of the same or a waiver of any other right hereunder.

9.5       Undertaking.  You hereby agree to take whatever additional action and execute whatever additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either you or the Units pursuant to the express provisions of this Award Agreement.

9.6       Agreement Is Entire Contract.  This Award Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof and supersede all prior oral or written agreements on the subject.  This Award Agreement is made pursuant to the provisions of the Plan and will in all respects be construed in conformity with the express terms and provisions of the Plan.

9.7       Successors and Assigns.  The provisions of this Award Agreement will inure to the benefit of, and be binding on, the Company and its successors and assigns and you and your legal representatives, heirs, legatees, distributees, assigns and transferees by operation of law, whether or not any such person will have become a party to this Award Agreement and agreed in writing to join herein and be bound by the terms and conditions hereof. 

9.8       No Employment or Service Contract.  Nothing in the Plan or this Award Agreement will be deemed to constitute an employment contract or confer or be deemed to confer any right for you to continue in the employ of, or to continue any other relationship with, the Company or any Related Company or limit in any way the right of the Company or any Related Company to terminate your employment or other service relationship at any time, with or without cause. 

9.9       Section 409A Compliance.  This Award and any Shares issuable thereunder are intended to qualify for an exemption from or comply with Section 409A of the Code.  Notwithstanding any other provision in this Award Agreement and the Plan to the contrary, the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but will not be required, to unilaterally amend or modify this Award Agreement so that the Award qualifies for exemption from or complies with Section 409A of the Code; provided, however, that the Company makes no representations that the Award will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to the Award.  No provision of this Award Agreement will be interpreted or construed to transfer any liability for failure to comply with Section 409A of the Code from you or any other individual to the Company.  By executing the Award Notice, you agree that you will be deemed to have waived any claim against the Company with respect to any such tax consequences.   

APPENDIX TO ZILLOW GROUP, INC.  2020 INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT
(For Canadian Residents)

This Appendix includes country-specific terms that apply if you are residing and/or working in Canada.  This Appendix is part of the Award Agreement.  Unless otherwise provided below, capitalized terms not explicitly defined in this Appendix but defined in the Plan have the same definitions as in the Plan.

1.         Termination of Service.  This provision supplements Section 2 of the Award Agreement.

For purposes of the Award, notwithstanding anything to the contrary in the Plan or the Award Agreement, and subject to any express minimum requirements pursuant to employment standards legislation (or any other applicable legislation) in the jurisdiction where you are employed, “Termination of Service” means the later of (a) the date you receive written notice of termination from or provide written notice of resignation to the Company or a Related Company, which date will not be extended by any notice period or period of pay in lieu of such notice that may be applicable to you, whether statutory, contractual or otherwise, and (b) the date you are no longer actively providing services to the Company or a Related Company (regardless of the reason for such cessation of employment and whether or not later found to be invalid or in breach of the employment laws in the jurisdiction where you are employed).  For greater clarity, including with respect to Section 9.1 of the Award Agreement, you are not entitled to damages in lieu of loss of ongoing vesting or loss of Unvested Units arising from the cessation of your employment, including, without limitation, during any period of payment in lieu of notice of termination that may be applicable to you and regardless of whether such period of pay in lieu of notice arises from statute, contract, or otherwise.

2.         Tax Reporting.  You are required to report the value of any securities you hold, such as shares, stock options and restricted stock units, to Canada Revenue Agency in accordance with applicable tax laws.Document

        

PREFERRED APARTMENT COMMUNITIES, INC.
2019 STOCK INCENTIVE PLAN
RESTRICTED STOCK UNIT GRANT NOTICE
(Performance Vesting)
Pursuant to the terms and conditions of the Preferred Apartment Communities, Inc. 2019 Stock Incentive Plan, as amended from time to time (the “Plan”), Preferred Apartment Communities, Inc. (the “Company”) hereby grants to the individual listed below (“you” or the “Participant”) the number of performance-based restricted stock units (the “PSUs”) set forth below.  This award of PSUs (this “Award”) is subject to the terms and conditions set forth herein and in the Restricted Stock Unit Agreement attached hereto as Exhibit A (the “Agreement”) and the Plan, each of which is incorporated herein by reference.  Capitalized terms used but not defined herein shall have the meanings set forth in the Plan.
						
	Participant:	_____________________
	Date of Grant:	_____________________
	Award Type and Description:	The PSU is a Restricted Stock Unit Award granted as a Performance Restricted Stock Unit pursuant to Section 4.5 of the Plan. This Award represents the right to receive shares of Stock in an amount up to 200% of the Target PSUs (defined below), subject to the terms and conditions set forth herein and in the Agreement. 
Your right to receive settlement of this Award in an amount ranging from 0% to 200% of the Target PSUs shall vest and become earned and nonforfeitable upon (i) the Committee’s certification of the level of achievement of the Performance Goal (defined below) (“Earned PSUs”), and (ii) your satisfaction of the continued employment or service requirements described below under “Service Requirements.”  The portion of the Target PSUs actually earned upon satisfaction of both of the foregoing requirements is referred to herein as the “Vested PSUs.”

	Target Number of PSUs:	

_____________________ (the “Target PSUs”). 

	Performance Period:	July 1, 2020 (the “Performance Period Commencement Date”) through June 30, 2023 (the “Performance Period End Date”) (such period, the “Performance Period”).

US 7175666

						
	Service Requirements:

	Except as expressly provided in Section 3 of the Agreement, you must remain continuously employed by, or be in Continuous Service with, the Company or an Affiliate, as applicable, from the Date of Grant through: (a) the date the Committee certifies the level of achievement of the Performance Goal (the date of such certification, which is expected to occur within 5 days following the Performance Period End Date, the “Payout Determination Date”) with respect to 50% of the Award, and (b) the first anniversary of the Performance Period End Date with respect to the remaining 50% of the Award (each such date, the “Service Vesting Date” with respect to the relevant portion of the Award) to be eligible to receive payment of this Award, which is also based on the level of achievement with respect to the Performance Goal (as defined below).

	Performance Goal:
	Subject to the terms and conditions set forth in the Plan, the Agreement and herein, the number of Target PSUs, if any, that become Earned PSUs during the Performance Period will be determined in accordance with the following table:

*The percentage of Target PSUs that become Earned PSUs for performance between the threshold, target and maximum achievement levels shall be calculated  using linear interpolation.
The “Performance Goal” for the Performance Period is based on the Company’s achievement with respect to relative total shareholder return, as described in Exhibit B attached hereto.

	Settlement:	Settlement of the Vested PSUs shall be made solely in shares of Stock, which shall be delivered to you in accordance with Section 5 of the Agreement. 

You shall forfeit this Award if you do not execute this Restricted Stock Unit Grant Notice (this “Grant Notice”) within a period of 5 days from the date of receipt (or such other period as the Committee shall provide).  By your signature below, you acknowledge and agree to be bound by the terms and conditions of the Plan, the Agreement and this Restricted Stock Unit Grant Notice.  You acknowledge that you have received a copy of the Plan and the Agreement and have reviewed the Agreement, the Plan and this Grant Notice in their entirety and fully understand all provisions of the Agreement, the Plan and this Grant Notice.  You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee regarding any questions or determinations that arise under the Agreement, the Plan or this Grant Notice.  This Grant Notice may be executed in one or more counterparts (including portable document format (.pdf) and facsimile counterparts), each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement.
[Signature Page Follows]

2

IN WITNESS WHEREOF, the Company has caused this Grant Notice to be executed by an officer thereunto duly authorized, and the Participant has executed this Grant Notice, effective for all purposes as provided above.
        PREFERRED APARTMENT COMMUNITIES, INC.

        By:        
        Name:
        Title:

        PARTICIPANT

               
        Name:

Signature Page to
Restricted Stock Unit Grant Notice

EXHIBIT A
RESTRICTED STOCK UNIT AGREEMENT
This Restricted Stock Unit Agreement (together with the Grant Notice to which this Agreement is attached, this “Agreement”) is made as of the Date of Grant set forth in the Grant Notice to which this Agreement is attached, by and between Preferred Apartment Communities, Inc., a Maryland corporation (the “Company”), and ______________ (the “Participant”). Capitalized terms used but not specifically defined herein shall have the meanings specified in the Plan or the Grant Notice.
1.Award.  In consideration of the Participant’s past and/or continued employment with, or service to, the Company or its Affiliates and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the Date of Grant set forth in the Grant Notice (the “Date of Grant”), the Company hereby grants to the Participant the target number of PSUs set forth in the Grant Notice on the terms and conditions set forth in the Grant Notice, this Agreement and the Plan, which is incorporated herein by reference as a part of this Agreement. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.  To the extent vested, each PSU represents the right to receive one share of Stock, subject to the terms and conditions set forth in the Grant Notice, this Agreement and the Plan; provided, however, that, depending on the level of performance determined to be attained with respect to the Performance Goal, the number of shares of Stock that may be earned hereunder in respect of this Award may range from 0% to 200% of the Target PSUs.  Unless and until the PSUs have become vested in the manner set forth in the Grant Notice, the Participant will have no right to receive any Stock or other payments in respect of the PSUs.  Prior to settlement of this Award, the PSUs and this Award represent an unsecured obligation of the Company, payable only from the general assets of the Company.
2.Vesting of PSUs.  Except as otherwise set forth in Section 3, the PSUs shall vest and become Vested PSUs in accordance with the Participant’s satisfaction of the service-based vesting schedule set forth in the Grant Notice (the “Service Requirement”), and based on the extent to which the Company has satisfied the Performance Goal set forth in the Grant Notice, which shall be determined by the Committee in its sole discretion following the end of the Performance Period on the Payout Determination Date (and any PSUs that do not become Earned PSUs shall be automatically forfeited).  Unless and until the PSUs have vested and become Vested PSUs as described in the preceding sentence, the Participant will have no right to receive any dividends or other distribution with respect to the PSUs. 
3.Effect of Termination of Employment or Service; Change in Control. 
(a)Termination of Employment or Service due to Disability or Death. Notwithstanding anything in the Grant Notice, this Agreement or the Plan to the contrary, subject to Section 10, if your employment or Continuous Service relationship with the Company and any of its Subsidiaries is terminated as a result of your death or Disability prior to a Service Vesting Date, then you shall vest in a percentage of your unvested Earned PSUs that is equal to the number of days of employment served during the Performance Period, divided by the total 
Exhibit A-1

number of days in the Performance Period.  For purposes of determining the Performance Goal achievement level resulting in the amount of Earned PSUs for the foregoing calculation, if the date of your termination of employment or Continuous Service occurs prior to the Performance Period End Date, the Performance Period End Date shall be accelerated such that the Performance Period shall be deemed to end on the date of your termination of employment or Continuous Service Relationship, and such date shall be used as the Payout Determination Date; provided however, that if the Performance Goal achievement is not readily calculable as of the date of such termination of employment or Continuous Service, the Committee may base its determination upon such audited or unaudited financial information then available or may extend the Payout Determination Date until the date of the Company’s public release of earnings for the relevant period, in each case as the Committee deems relevant and/or appropriate.  Such pro-rated number of Earned PSUs shall be settled in the payment form described in Section 5 within 60 days following the date of your termination of employment or Continuous Service due to death or Disability.
(b)Other Termination of Employment or Service. Except as otherwise provided in Section 3(a), if the Participant has not satisfied the Service Requirements, then upon the termination of the Participant’s employment or other Continuous Service relationship with the Company or an Affiliate for any reason, any unvested PSUs (and all rights arising from such PSUs and from being a holder thereof) will terminate automatically without any further action by the Company and will be forfeited without further notice and at no cost to the Company.
(c)Change in Control.
(i)Except to the extent otherwise provided under any separate written change in control or severance plan that may be established by the Company and applicable to the Participant, the PSUs will become vested in connection with a Change in Control (as such term is defined in the Plan) only as provided under Article 6 of the Plan.  More specifically, in the event of a Change in Control, to the extent this Award remains subject to future vesting based all or in part on future achievement of Performance Goals, (A) the incomplete Performance Period shall be deemed to end on the date of the Change in Control, and the Committee shall determine the extent to which the Performance Goals have been met during the deemed Performance Period, based upon such audited or unaudited financial information then available that it deems relevant, (or if the Committee determines that the degree of achievement of the Performance Goals is not determinable, based on the assumption that the applicable target levels of the Performance Goal have been attained, or if the concept of target level of Performance Goals does not apply, on such other basis as may be determined by the Committee), and (B) the Award shall be settled to the Participant within ten days following the date of the Change in Control, based on the Committee’s determination of the degree of attainment of the Performance Goals and multiplying such Earned PSUs by a percentage based on the number of days elapsed during the deemed Performance Period, divided by the total number of days in the original Performance Period.  To the extent the original Performance Period under this Award has been completed prior to the occurrence of a Change in Control but the Award or portions of the Award remain outstanding on the date of the Change in Control, then the Award shall become immediately 
A-2

vested and payable as of the date of the Change in Control unless the acquirer in the Change in Control maintains the Award in accordance with the terms specified in Section 6.1 of the Plan.
(ii)Nothing within this Section 3(c) is intended to modify Section 3(a) above regarding the pro-rata acceleration of your PSUs upon a termination of employment or Continuous Service due to death or Disability.  The provisions of Section 3(a) shall apply to a termination of your employment or Continuous Service for death or Disability, as applicable, whether or not such a termination of employment or Continuous Service were to occur in connection with a Change in Control. 
4.Dividend Equivalents.  In the event that the Company declares and pays a dividend in respect of its outstanding shares of Stock and, on the record date for such dividend, the Participant holds PSUs granted pursuant to this Agreement that have not been settled, the Company shall record the amount of such dividend in a bookkeeping account and pay to the Participant an amount in cash equal to the cash dividends the Participant would have received if the Participant was the holder of record, as of such record date, of a number of shares of Stock equal to the number of PSUs held by the Participant that have not been settled as of such record date but which become Vested PSUs, such payment to be made on the date on which any Vested PSUs are settled in accordance with Section 5.  For purposes of clarity, if the PSUs (or any portion thereof) are forfeited by the Participant pursuant to the terms of this Agreement, then the Participant shall also forfeit the Dividend Equivalents, if any, accrued with respect to such forfeited PSUs.  No interest will accrue on the Dividend Equivalents between the declaration and payment of the applicable dividends and the settlement of the Dividend Equivalents. 
5.Settlement of PSUs.  
(a)Settlement.  Except as otherwise provided in Section 3 above, as soon as administratively practicable following the satisfaction of the Service Requirement, but in no event later than March 15 of the calendar year following the year in which all vesting restrictions lapse, the Company shall deliver to the Participant (or the Participant’s permitted transferee, if applicable), a number of shares of Stock equal to the Earned PSUs.  In the event that any fractional PSU becomes earned hereunder, that PSU shall be rounded down at the time of settlement of such PSU. No fractional shares of Stock, nor the cash value of any fractional shares of Stock, shall be issuable or payable to the Participant pursuant to this Agreement. All shares of Stock, if any, issued hereunder shall be delivered either by delivering one or more certificates for such shares to the Participant or by entering such shares in book-entry form, as determined by the Committee in its sole discretion.  The value of shares of Stock shall not bear any interest owing to the passage of time.  Neither this Section 5 nor any action taken pursuant to or in accordance with this Agreement shall be construed to create a trust or a funded or secured obligation of any kind.
(b)Delivery Delay.  Notwithstanding any provision of this Agreement to the contrary, the issuance of shares of Stock hereunder may be postponed by the Company for such period as may be required for it to comply with any applicable federal or state securities law, or any national securities exchange listing requirements, and the Company is not obligated to issue or deliver any securities if, in the opinion of counsel for the Company, the issuance of the Shares 
A-3

shall constitute a violation by the Participant or the Company of any provisions of any applicable federal or state law or of any regulations of any governmental authority or any national securities exchange.
6.Tax Withholding.  To the extent that the receipt, vesting or settlement of this Award results in compensation income or wages to the Participant for federal, state, local and/or foreign tax purposes, the Company shall withhold from the cash and from the shares of Stock otherwise to be delivered to the Participant an amount necessary to satisfy the Company’s obligation to withhold the amounts the Participant owes under applicable law unless the Participant delivers to the Company at the time such withholding obligation is due (either by tendering a cash payment or by delivering previously owned and unencumbered shares of Stock) such amount as the Company may require to meet such withholding obligations.  The maximum number of shares of Stock that may be so withheld shall be the number of shares of Stock that have an aggregate Fair Market Value (as such term is defined in the Plan) on the date of withholding equal to the aggregate amount of such tax liabilities determined based on the greatest withholding rates for federal, state, local and/or foreign tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment for the Company with respect to this Award, as determined by the Committee. The Participant acknowledges that there may be adverse tax consequences upon the receipt, vesting or settlement of this Award or disposition of the underlying shares and that the Participant has been advised, and hereby is advised, to consult a tax advisor. The Participant represents that the Participant is in no manner relying on the Board of Directors, the Committee, the Company or any of its Affiliates or any of their respective managers, directors, officers, employees or authorized representatives (including, without limitation, attorneys, accountants, consultants, bankers, lenders, prospective lenders and financial representatives) for tax advice or an assessment of such tax consequences.
7.Non-Transferability.  Except as otherwise set forth in the Plan or this Agreement, the Participant shall not sell, transfer, pledge, hypothecate, assign or otherwise dispose of the Award nor any interest or right therein unless and until the shares of Stock underlying the PSUs have been issued, and all restrictions applicable to such shares have lapsed.  Any attempted sale, transfer, pledge, hypothecation, assignment or other disposition of the Award or any related interest in violation of the Plan or this Agreement shall be void and of no effect. 
8.Legends.  If a stock certificate is issued with respect to shares of Stock issued hereunder, such certificate shall bear such legend or legends as the Committee deems appropriate in order to reflect the restrictions set forth in this Agreement and to ensure compliance with the terms and provisions of this Agreement, the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable laws or the requirements of any stock exchange on which the Stock is then listed.  If the shares of Stock issued hereunder are held in book-entry form, then such entry will reflect that the shares are subject to the restrictions set forth in this Agreement.
9.Securities Acknowledgment.  Participant recognizes that if the Participant is an “affiliate” within the meaning of Rule 144 under the Securities Act of 1933, as amended, that 
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any sales of the shares of Stock deliverable under this Award may be made only in compliance with Rule 144.
10.Execution of Receipts and Releases.  Any issuance or transfer of shares of Stock or other property to the Participant or the Participant’s legal representative, heir, legatee or distributee, in accordance with this Agreement shall be in full satisfaction of all claims of such Person hereunder.  As a condition precedent to such payment or issuance, the Company may require the Participant or the Participant’s legal representative, heir, legatee or distributee to execute (and not revoke within any time provided to do so) a release and receipt therefor in such form as it shall determine appropriate; provided, however, that any review period under such release will not modify the date of settlement with respect to Vested PSUs.
11.No Obligation to Continue Employment or Awards.   This Agreement is not an agreement of employment.  This Agreement does not guarantee that the Participant will continue as an employee or officer of the Company or any Affiliate during the entire, or any portion of the, term of this Agreement, including, but not limited to, any period during which the Award is outstanding, nor does it modify in any respect the right of the Company to terminate such employment or service relationship at any time.  The grant of this Award is a one-time benefit that does not create any contractual or other right to receive a grant of any other awards or benefits in lieu of awards in the future.  Any future awards will be granted at the sole discretion of the Company.
12.Rights as a Stockholder. The Participant shall have no rights as a stockholder of the Company with respect to any shares of Stock that may become deliverable hereunder unless and until the Participant has become the holder of record of such shares of Stock, whether the shares of Stock are represented by a certificate or through book entry or another similar method, and no adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of any Shares, except as otherwise specifically provided for in the Plan or this Agreement.
13.Entire Agreement; Amendment.  
(a)This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the PSUs granted hereby; provided ̧ however, that the terms of this Agreement shall not modify and shall be subject to the terms and conditions of any employment, severance, change in control or other agreement or plan governing the Participant’s service relationship with the Company or any Affiliate that is in effect as of the date a determination is to be made under this Agreement.  Without limiting the scope of the preceding sentence, except as provided therein, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.  
(b)The Committee may, in its sole discretion, amend this Agreement from time to time in any manner that is not inconsistent with the Plan; provided, however, that except as otherwise provided in the Plan or this Agreement, any such amendment that materially 
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reduces the rights of the Participant shall be effective only if it is in writing and signed by both the Participant and an authorized officer of the Company.
14.Notices.  Any notice or communication given hereunder (each, a “Notice”) shall be in writing and shall be sent by personal delivery, by courier or by regular United States mail, first class and prepaid, to the appropriate party at the address set forth below: 
If to the Company, to:
Preferred Apartment Communities, Inc.
3284 Northside Parkway NW, Suite 150
Atlanta, GA 30327
Attention: General Counsel

If to the Participant, to the address of the Participant on file with the Company; or such other address or to the attention of such other person as a party shall have specified by prior Notice to the other party.  Each Notice shall only be given and effective upon actual receipt (or refusal of receipt).

15.Waiver of Jury Trial.  Each of the parties hereto waives any right it may have to trial by jury in respect of any litigation based on, arising out of, under or in connection with this agreement or any course of conduct, course of dealing, verbal or written statement or action of any party hereto.
16.Adjustments.  If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the shares of Stock subject to this Award shall be adjusted or terminated in any manner as contemplated by Section 7.2 of the Plan.
17.Agreement to Furnish Information.  The Participant agrees to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirement imposed upon the Company by or under any applicable statute or regulation.
18.Clawback.  The provisions of Section 7.10 of the Plan regarding clawbacks shall apply to this Award.
19.Section 409A. Notwithstanding anything herein or in the Plan to the contrary, the PSUs granted pursuant to this Agreement are intended to be exempt from the applicable limitations and requirements of Code Section 409A, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance, and regulations thereto (“Section 409A”) and shall be construed and interpreted in accordance with such intent. Nevertheless, to the extent that the Committee determines that the PSUs may not be exempt from Section 409A, then (a) for purposes of any payment scheduled to be made upon a Participant’s termination of employment, the Participant shall be considered to have terminated from employment only when the Participant incurs a “separation from service” within the meaning of section 409A(a)(2)(A)(i) of the Code, and (b) if the Participant is deemed to be a “specified employee” within the meaning of Section 409A, as determined by the Committee, at a 
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time when the Participant becomes eligible for settlement of the PSUs upon his “separation from service” within the meaning of Section 409A, then to the extent necessary to prevent any accelerated or additional tax under Section 409A, such settlement will be delayed until the earlier of: (i) the date that is six months following the Participant’s separation from service and (ii) the Participant’s death.  Notwithstanding the foregoing, the Company and its Affiliates make no representations that the PSUs provided under this Agreement are exempt from or compliant with Section 409A, and in no event shall the Company or any Affiliate be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A.
20.Miscellanous.
(a)Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns.
(b)Governing Law.  All questions concerning the construction, validity and interpretation of this Agreement will be governed by, and construed in accordance with, the domestic laws of the State of Maryland, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Maryland or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Maryland.
(c)Dispute Resolution.  In the event of any dispute, controversy or claim between the Company or any Affiliate and the Participant in any way concerning, arising out of or relating to the Plan or this Agreement (a “Dispute”), including without limitation any Dispute concerning, arising out of or relating to the interpretation, application or enforcement of the Plan or this Agreement, the parties hereby (i) agree and consent to the personal jurisdiction of the courts of the State of Georgia located in Fulton County and/or the Federal courts of the United States of America located in the Northern District of Georgia (collectively, the “Agreed Venue”) for resolution of any such Dispute, (ii) agree that those courts in the Agreed Venue, and only those courts, shall have exclusive jurisdiction to determine any Dispute, including, without limitation, any appeal, and (iii) agree that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of Georgia.  The parties also hereby irrevocably (A) submit to the jurisdiction of any competent court in the Agreed Venue (and of the appropriate appellate courts therefrom), (B) to the fullest extent permitted by law, waive any and all defenses the parties may have on the grounds of lack of jurisdiction of any such court and any other objection that such parties may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court (including without limitation any defense that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum), and (C) consent to service of process in any such suit, action or proceeding, anywhere in the world, whether within or without the jurisdiction of any such court, in any manner provided by applicable law.  Without limiting the foregoing, each party agrees that service of process on such party pursuant to a notice as provided in Section 14 shall be deemed effective service of process on such party.  Any action for enforcement or recognition of 
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any judgment obtained in connection with a Dispute may enforced in any competent court in the Agreed Venue or in any other court of competent jurisdiction.
(d)Waivers; Performance.  The failure of any party hereto at any time to require performance by another party of any provision of this Agreement shall not affect the right of such party to require performance of that provision, and any waiver by any party of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right under this Agreement.
(e)Consent to Electronic Delivery; Electronic Signature.  In lieu of receiving documents in paper format, the Participant agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports and all other forms of communications) in connection with this Award and any other award made or offered by the Company. Electronic delivery may be via a Company electronic mail system or by reference to a location on a Company intranet to which the Participant has access.  The Participant hereby consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may be required to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature.
(f)Effect of Award on Other Compensation.  The value of the Participant’s Award is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.
(g)Headings. Headings are for convenience only and are not deemed to be part of this Agreement.
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EXHIBIT B
PERFORMANCE GOAL FOR PSUs
        The performance goal for the PSUs shall be the relative total shareholder return (“TSR”) percentile ranking of the Company as compared to the Performance Peer Group (as defined below) during the Performance Period.  The number of Earned PSUs will be determined in accordance with table set forth below under the heading “Company Performance Ranking and Payout Schedule.”  On the Payout Determination Date, the Committee will review, analyze and certify the achievement of the Company’s relative TSR percentile ranking for the Performance Period as compared to the Performance Peer Group and will determine the number of Earned PSUs in accordance with the terms of this Agreement, the Grant Notice and the Plan.  
Company Performance Ranking and Payout Schedule
									
	Level	Relative TSR Performance 
(Percentile Rank vs. Peers)
	Earned PSUs 
(% of Target)*

	< Threshold	< 35th Percentile
	0%
	Threshold	35th Percentile
	50%
	Target	55th Percentile
	100%
	Maximum	≥ 75th Percentile
	200%

*The percentage of Target PSUs that become Earned PSUs for performance between the threshold, target and maximum achievement levels shall be calculated using linear interpolation. For purposes of clarity, no portion of the PSUs will become Earned PSUs if the Company does not attain at least the threshold level of relative TSR performance. Any PSUs that do not become Earned PSUs in accordance with the Agreement, including this Exhibit B, and all rights arising from such PSUs and from being a holder thereof will terminate automatically on the Payout Determination Date without further action by the Company and will be forfeited without further notice and at no cost to the Company.

Performance Peer Group
The following companies will be deemed to be the Company’s “Performance Peer Group” for purposes of this Agreement:
Exhibit B-1

						
	Ticker Symbol	Company Name
	ACC	American Campus Communities, Inc.
	BRG	Bluerock Residential Growth REIT, Inc.
	CXP	Columbia Property Trust, Inc.
	CUZ	Cousins Properties Incorporated
	IRT	Independence Realty Trust, Inc.
	IRET	Investors Real Estate Trust
	JBGS	JBG SMITH Properties
	CLI	Mack-Cali Realty Corporation
	PDM	Piedmont Office Realty Trust, Inc.
	PSB	PS Business Parks,Inc.
	WRE	Washington Real Estate Investment Trust
	WRI	Weingarten Realty Investors

Determination of Relative TSR Rank
The TSR for the Company and each member of the Performance Peer Group shall be equal to:
(“X” plus “Y”) divided by “Z”, where:
“X” is the difference between (i) the volume-weighted average closing price (the “VWAP”) of such entity’s common stock (or other equity securities as may be appropriate and as determined by the Compensation Committee (“Other Equity Securities”) for the 20 consecutive trading days immediately preceding the Performance Period End Date], minus (ii) the VWAP of such entity’s common stock or Other Equity Securities for the 20 consecutive trading days immediately preceding the Performance Period Commencement Date;
“Y” is the cumulative amount of dividends and distributions (whether in the form of cash or equity) paid in respect of such entity’s common stock or Other Equity 
Securities during the Performance Period, assuming such dividends and distributions are reinvested in additional shares of such entity’s common stock or Other Equity Securities when paid; and 
“Z” is the VWAP of such entity’s common stock or Other Equity Securities for the 20 consecutive trading days immediately preceding the Performance Period Commencement Date. 
Notwithstanding the foregoing, the Committee may add or delete companies from the Performance Peer Group (and if deleting a company, the Committee may also substitute a new company in the Performance Peer Group) and provide a related adjustment in the rankings at any time during the Performance Period, wherever such deletion or adjustment is appropriate to reflect that such peer company is no longer publicly traded or is determined by the Committee to no longer be a peer of the Company (for example, due to a member no longer being publicly traded) or to reflect any other significant event.  For the sake of clarity, any such deletion or adjustment made by the Committee may be effectuated without the Participant’s consent and will 
B-2

not be treated (for purposes of the Plan or this Award) as an amendment to this Award that adversely affects the rights of the Participant under this Award without his or her consent
To determine the Company’s applicable percentile ranking for the Performance Period, TSR will be calculated for the Company and each entity in the Performance Peer Group as of the Performance Period End Date.  The entities in the Performance Peer Group will be arranged by their respective TSR (highest to lowest) excluding the Company. The Company’s percentile rank will be interpolated between the entity with the next highest TSR and the entity with the next lowest TSR based on the differential between the Company’s TSR and the TSR of such entities. Notwithstanding the foregoing, in the event the Company’s TSR for the Performance Period is negative, unless the Committee determines there are circumstances justifying otherwise, the percentage of Target PSUs that become Earned PSUs shall not exceed 100%, regardless of Company’s actual percentile ranking for the Performance Period.

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