Document:

EX-10.1 FORM OF NON-QUALIFIED SHARE OPTION

 

Exhibit 10.1

Employee Form

Option No.:                     

COLONIAL PROPERTIES TRUST

2008 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED SHARE OPTION AGREEMENT

Colonial Properties Trust, an Alabama real estate investment trust (the “Company”), hereby grants
an option to purchase its common shares of beneficial interest, $.01 par value (each, a “Share and
collectively, the “Shares”), to the optionee named below. The terms and conditions of the option
are set forth in this cover sheet and in the attachment (collectively, the “Agreement”), and in the
Company’s 2008 Omnibus Incentive Plan (the “Plan”).

Grant Date:                                         , 200          

Name of Optionee:                                                             

Optionee’s Social Security Number:                     -                    -                    

Number of Shares Covered by Option:                     

Option Price per Share: $                    .                    

Vesting Start Date:                     , 200          

Vesting Schedule

     In the event that the Schedule set forth below would result in vesting of a fractional number
of options, the number of options that will vest will be rounded down to the nearest whole Share,
and the last scheduled vesting tranche will be rounded up, to the extent necessary, so that the
full number of options will have vested.

	 	 	 
	Vesting Date
	 	Number of options that vest, as a percentage of

the number of options granted

 

 

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also attached. You acknowledge that you
have carefully reviewed the Plan, and agree that the Plan will control in the event any provision
of this Agreement should appear to be inconsistent with the Plan.

	 	 	 	 	 	 	 
	Optionee:

	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	Company:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Attachment

This is not a share certificate or a negotiable instrument.

2

 

COLONIAL PROPERTIES TRUST

2008 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED SHARE OPTION AGREEMENT

	 	 	 
	Non-Qualified Share Option

	 	This option is not intended to be an
incentive share option under Section
422 of the Internal Revenue Code and
will be interpreted accordingly.
	 
	 	 
	Vesting

	 	This option is only exercisable
before it expires and then only with
respect to the vested portion of the
option. Subject to the preceding
sentence, you may exercise this
option, in whole or in part, to
purchase a whole number of vested
Shares by following the procedures
set forth in the Plan and below in
this Agreement.
	 
	 	 
	 

	 	Except as specifically provided in
this Agreement or as may be provided
in other agreements between you and
the Company, no additional Shares
will vest after your Service has
terminated for any reason.
	 
	 	 
	Term

	 	Your option will expire in any event
at the close of business at Company
headquarters on the day before the
10th anniversary of the Grant Date,
as shown on the cover sheet. Your
option will expire earlier if your
Service terminates, as described
below.
	 
	 	 
	Regular Termination

	 	If your Service terminates for any
reason, other than death, Disability
or Cause, then your option will
expire at the close of business at
Company headquarters on the 90th day
after your termination date.
	 
	 	 
	Termination for 

Cause

	 	If your Service is terminated for
Cause, then you shall immediately
forfeit all rights to your option
and the option shall immediately
expire.
	 
	 	 
	Death

	 	If your Service terminates because
of your death, your option will
automatically be fully vested and
your option will expire at the close
of business at Company headquarters
on the date twelve (12) months after
the date of death. During that
twelve month period, your estate or
heirs may exercise the vested
portion of your option.
	 
	 	 
	 

	 	In addition, if you die during the
90-day period described in
connection with a regular
termination (i.e., a termination of
your Service not on account of your
death, Disability or Cause), and a
vested portion of your option has
not yet been exercised, then your
option will instead expire on the
date twelve (12) months after your
termination date. In such a case,
during the period following your
death up to the date twelve (12)
months after your termination date,
your estate or heirs may exercise
the vested portion of your option.

3

 

	 	 	 
	Disability

	 	If your Service terminates because
of your Disability, then your option
will automatically be fully vested
and will expire at the close of
business at Company headquarters on
the date twelve (12) months after
your termination date.
	 
	 	 
	Leaves of Absence

	 	For purposes of this option, your
Service does not terminate when you
go on a bona fide employee leave of
absence that was approved by the
Company in writing, if the terms of
the leave provide for continued
Service crediting, or when continued
Service crediting is required by
applicable law. However, your
Service will be treated as
terminating 90 days after you went
on employee leave, unless your right
to return to active work is
guaranteed by law or by a contract.
Your Service terminates in any event
when the approved leave ends unless
you immediately return to active
employee work.
	 
	 	 
	 

	 	The Company determines, in its sole
discretion, which leaves count for
this purpose, and when your Service
terminates for all purposes under
the Plan.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this
option, you must notify the Company
by filing the proper “Notice of
Exercise” form at the address given
on the form. Your notice must
specify how many Shares you wish to
purchase. Your notice must also
specify how your Shares should be
registered (in your name only or in
your and your spouse’s names as
joint tenants with right of
survivorship). The notice will be
effective when it is received by the
Company.
	 
	 	 
	 

	 	If someone else wants to exercise
this option after your death, that
person must prove to the Company’s
satisfaction that he or she is
entitled to do so.
	 
	 	 
	Form of Payment

	 	When you submit your notice of
exercise, you must include payment
of the option price for the Shares
you are purchasing. Payment may be
made in one (or a combination) of
the following forms:
	 
	 	 
	 

	 	•       Cash, your personal check, a
cashier’s check, a money order or
another cash equivalent acceptable
to the Company.
	 
	 	 
	 

	 	•       Shares withheld by the
Company from the Shares otherwise to
be received, with such withheld
Shares having an aggregate Fair
Market Value on the date of exercise
equal to the aggregate option price.

4

 

	 	 	 
	 

	 	•       Shares which have already
been owned by you and which are
surrendered to the Company. The Fair
Market Value of the shares,
determined as of the effective date
of the option exercise, will be
applied to the option price.
	 
	 	 
	 

	 	•       By delivery (on a form
prescribed by the Company) of an
irrevocable direction to a licensed
securities broker acceptable to the
Company to sell the Shares subject
to the option and to deliver all or
part of the sale proceeds to the
Company in payment of the aggregate
option price and any withholding
taxes.
	 
	 	 
	Withholding Taxes

	 	You will not be allowed to exercise
this option unless you make
acceptable arrangements to pay any
withholding or other taxes that may
be due as a result of the option
exercise or sale of Shares acquired
under this option. Any of the
methods described under “Form of
Payment” will be considered
acceptable arrangements for paying
such taxes.
	 
	 	 
	Transfer of Option

	 	During your lifetime, only you (or,
in the event of your legal
incapacity or incompetency, your
guardian or legal representative)
may exercise the option. You cannot
transfer or assign this option. For
instance, you may not sell this
option or use it as security for a
loan. If you attempt to do any of
these things, this option will
immediately become invalid. You
may, however, dispose of this option
in your will or it may be
transferred upon your death by the
laws of descent and distribution.
	 
	 	 
	 

	 	Regardless of any marital property
settlement agreement, the Company is
not obligated to honor a notice of
exercise from your spouse, nor is
the Company obligated to recognize
your spouse’s interest in your
option in any other way.
	 
	 	 
	Retention Rights

	 	Neither your option nor this
Agreement give you the right to be
retained by the Company (or any of
its Affiliates) in any capacity.
The Company (and any of its
Affiliates) reserves the right to
terminate your Service at any time
and for any reason.
	 
	 	 
	Shareholder Rights

	 	You, or your estate or heirs, have
no rights as a shareholder of the
Company until a certificate for your
option’s Shares has been issued (or
an appropriate book entry has been
made). No adjustments are made for
dividends or other rights if the
applicable record date occurs before
your share certificate is issued (or
an appropriate book entry has been
made), except as described in the
Plan.
	 
	 	 
	Forfeiture of Rights

	 	If it is ever determined by the
Board, as recommended by the Audit
Committee of the Company, that your
actions have constituted wrongdoing
that contributed to any material
misstatement or

5

 

	 	 	 
	 

	 	omission from any
report or statement filed by the
Company with the U.S. Securities and
Exchange Commission, gross
misconduct, breach of fiduciary duty
to the Company, or fraud, then your
option shall be immediately
forfeited and thereupon your option
shall be cancelled; provided,
however, that if you have exercised
your option within two years prior
to the Board determination, you
shall be required to pay to the
Company an amount equal to the
difference between the aggregate
value of the Shares acquired upon
such exercise of the option at the
date of the Board determination and
the aggregate exercise price paid by
you. In addition, your option and
gains resulting from the exercise of
the option, shall be subject to
forfeiture in accordance with the
Company’s standard policies relating
to such forfeitures and clawbacks,
as such policies are in effect at
the time of grant of the option.
	 
	 	 
	Adjustments

	 	In the event of a share split, a
share dividend or a similar change
in the Shares, the number of Shares
covered by this option and the
option price per Share shall be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan. Your option shall be
subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Maryland, other than any
conflicts or choice of law rule or
principle that might otherwise refer
construction or interpretation of
this Agreement to the substantive
law of another jurisdiction.
	 
	 	 
	Arbitration

	 	Any disputes between you and the
Company in any way concerning this
Agreement shall be submitted at the
initiative of either you or the
Company to mandatory arbitration
before a single arbitrator in
Birmingham, Alabama pursuant to the
Commercial Arbitration Rules of the
American Arbitration Association, or
its successor, then in effect. The
decision of the arbitrator shall be
rendered in writing, shall be final
and may be entered as a judgment in
any court in the State of Alabama.
You and the Company irrevocably
consent to the jurisdiction of the
federal and state courts located in
Alabama for this purpose. Each
party shall be responsible for its
or his own costs incurred in such
arbitration and in enforcing any
arbitration award, including
attorney’s fees.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated
in this Agreement by reference.
Certain capitalized terms used in
this Agreement are defined in the
Plan, and have the meaning set forth
in the Plan.
	 
	 	 
	 

	 	This Agreement and the Plan
constitute the entire understanding
between you and the Company
regarding this option. Any prior

6

 

	 	 	 
	 

	 	agreements, commitments or
negotiations concerning this option
are superseded.
	 
	 	 
	Data Privacy

	 	In order to administer the Plan, the
Company may process personal data
about you. Such data includes but
is not limited to the information
provided in this Agreement and any
changes thereto, other appropriate
personal and financial data about
you such as home address and
business addresses and other contact
information, payroll information and
any other information that might be
deemed appropriate by the Company to
facilitate the administration of the
Plan.
	 
	 	 
	 

	 	By accepting this option, you give
explicit consent to the Company to
process any such personal data. You
also give explicit consent to the
Company to transfer any such
personal data outside the country in
which you work or are employed,
including, with respect to non-U.S.
resident Optionees, to the United
States, to transferees who shall
include the Company and other
persons who are designated by the
Company to administer the Plan.
	 
	 	 
	Consent to Electronic Delivery

	 	The Company may choose to deliver
certain statutory materials relating
to the Plan in electronic form. By
accepting this option grant you
agree that the Company may deliver
the Plan prospectus and the
Company’s annual report to you in an
electronic format. If at any time
you would prefer to receive paper
copies of these documents, as you
are entitled to, the Company would
be pleased to provide copies.
Please contact                      at
                     to request paper copies
of these documents.

By signing the cover sheet of this Agreement, you agree to all of the terms and
conditions described above and in the Plan.

7EX-10.2 FORM OF NON-QUALIFIED SHARE OPTION

 

Exhibit 10.2

Trustee Form

Option No.: _______

COLONIAL PROPERTIES TRUST

2008 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED SHARE OPTION AGREEMENT

Colonial Properties Trust, an Alabama real estate investment trust (the “Company”), hereby grants
an option to purchase its common shares of beneficial interest, $.01 par value, (each, a “Share and
collectively, the “Shares”) to the optionee named below. The terms and conditions of the option
are set forth in this cover sheet and in the attachment (collectively, the “Agreement”), and in the
Company’s 2008 Omnibus Incentive Plan (the “Plan”).

Grant Date:                     , 200__

Name of Optionee:                                                             

Number of Shares Covered by Option:                     

Option Price per Share: $                    .___

Vesting Start Date:                     , 200___

Vesting Schedule

     In the event that the Schedule set forth below would result in vesting of a fractional number
of options, the number of options that will vest will be rounded down to the nearest whole Share,
and the last scheduled vesting tranche will be rounded up, to the extent necessary, so that the
full number of options will have vested.

	 	 	 
	Vesting Date

	 	Number of options that vest, as a percentage of 

the number of
options granted

 

 

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also attached. You acknowledge that you
have carefully reviewed the Plan, and agree that the Plan will control in the event any provision
of this Agreement should appear to be inconsistent with the Plan.

	 	 	 	 	 	 	 
	Optionee:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	Company:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Attachment

This is not a share certificate or a negotiable instrument.

2

 

COLONIAL PROPERTIES TRUST

2008 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED SHARE OPTION AGREEMENT

	 	 	 
	Non-Qualified Share Option

	 	This option is not intended to be an
incentive share option under Section
422 of the Internal Revenue Code and
will be interpreted accordingly.
	 
	 	 
	Vesting

	 	This option is only exercisable
before it expires and then only with
respect to the vested portion of the
option. Subject to the preceding
sentence, you may exercise this
option, in whole or in part, to
purchase a whole number of vested
Shares by following the procedures
set forth in the Plan and below in
this Agreement. 

Except as specifically provided in
this Agreement or as may be provided
in other agreements between you and
the Company, no additional Shares
will vest after your Service has
terminated for any reason.
	 
	 	 
	Term

	 	Your option will expire in any event
at the close of business at Company
headquarters on the day before the
10th anniversary of the Grant Date,
as shown on the cover sheet. Your
option will expire earlier if your
Service terminates, as described
below.
	 
	 	 
	Regular Termination

	 	If your Service terminates for any
reason, other than death, Disability
or Cause, then your option will
expire at the close of business at
Company headquarters on the 90th day
after your termination date.
	 
	 	 
	Termination for
Cause

	 	If your Service is terminated for
Cause, then you shall immediately
forfeit all rights to your option
and the option shall immediately
expire.
	 
	 	 
	Death

	 	If your Service terminates because
of your death, your option will
automatically be fully vested and
your option will expire at the close
of business at Company headquarters
on the date twelve (12) months after
the date of death. During that
twelve month period, your estate or
heirs may exercise the vested
portion of your option.
	 
	 	 
	 

	 	In addition, if you die during the
90-day period described in
connection with a regular
termination (i.e., a termination of
your Service not on account of your
death, Disability or Cause), and a
vested portion of your option has
not yet been exercised, then your
option will instead expire on the
date twelve (12) months after your
termination date. In such a case,
during the period following your
death up to the date twelve (12)
months after your termination date,

3

 

	 	 	 
	 

	 	your estate or heirs may exercise
the vested portion of your option.
	 
	 	 
	Disability

	 	If your Service terminates because
of your Disability, then your option
will automatically be fully vested
and will expire at the close of
business at Company headquarters on
the date twelve (12) months after
your termination date.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this
option, you must notify the Company
by filing the proper “Notice of
Exercise” form at the address given
on the form. Your notice must
specify how many Shares you wish to
purchase. Your notice must also
specify how your Shares should be
registered (in your name only or in
your and your spouse’s names as
joint tenants with right of
survivorship). The notice will be
effective when it is received by the
Company. 

If someone else wants to exercise
this option after your death, that
person must prove to the Company’s
satisfaction that he or she is
entitled to do so.
	 
	 	 
	Form of Payment

	 	When you submit your notice of
exercise, you must include payment
of the option price for the Shares
you are purchasing. Payment may be
made in one (or a combination) of
the following forms:
	 
	 	 
	 

	 	•      Cash, your personal check, a
cashier’s check, a money order or
another cash equivalent acceptable
to the Company.
	 
	 	 
	 

	 	•     Shares withheld by the
Company from the Shares otherwise to
be received, with such withheld
Shares having an aggregate Fair
Market Value on the date of exercise
equal to the aggregate option price.
	 
	 	 
	 

	 	•     Shares which have already
been owned by you and which are
surrendered to the Company. The Fair
Market Value of the shares,
determined as of the effective date
of the option exercise, will be
applied to the option price.
	 
	 	 
	 

	 	•     By delivery (on a form
prescribed by the Company) of an
irrevocable direction to a licensed
securities broker acceptable to the
Company to sell the Shares subject
to the option and to deliver all or
part of the sale proceeds to the
Company in payment of the aggregate
option price and any withholding
taxes.
	 
	Withholding Taxes

[To be inserted in award agreement 

if applicable]

	 	You will not be allowed to exercise
this option unless you make
acceptable arrangements to pay any
applicable withholding or other
taxes that may be due as a result of
the option exercise or sale of
Shares acquired under this option.
Any of the methods described

4

 

	 	 	 
	 

	 	under “Form of Payment” will be considered
acceptable arrangements for paying
such taxes.
	 
	 	 
	Transfer of Option

	 	During your lifetime, only you (or,
in the event of your legal
incapacity or incompetency, your
guardian or legal representative),
may exercise your option, except
that, all or a portion of your
option may be transferred by you in
a “not for value” transfer (as
defined in Section 8.10 of the Plan)
to (i) Family Members, or (ii) an
entity in which more than fifty
percent of the voting interests are
owned by Family Members in exchange
for an interest in that entity.
Except as noted in the preceding
sentence, transfer of your option is
prohibited except by will or the
laws of descent and distribution.
Following transfer, your option
shall continue to be subject to the
same terms and conditions as were
applicable immediately prior to
transfer, provided that the term
“you” or “your” shall be deemed to
refer to the transferee. The option
may not be pledged or hypothecated
(by law or otherwise) or subject to
execution, attachment or similar
processes.
	 
	 	 
	Retention Rights

	 	Neither your option nor this
Agreement give you the right to be
retained by the Company (or any of
its Affiliates) in any capacity.
The Company (and any of its
Affiliates) reserves the right to
terminate your Service at any time
and for any reason.
	 
	 	 
	Shareholder Rights

	 	You, or your estate or heirs, have
no rights as a shareholder of the
Company until a certificate for your
option’s Shares has been issued (or
an appropriate book entry has been
made). No adjustments are made for
dividends or other rights if the
applicable record date occurs before
your share certificate is issued (or
an appropriate book entry has been
made), except as described in the
Plan.
	 
	 	 
	Adjustments

	 	In the event of a share split, a
share dividend or a similar change
in the Shares, the number of Shares
covered by this option and the
option price per Share shall be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan. Your option shall be
subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Maryland, other than any
conflicts or choice of law rule or
principle that might otherwise refer
construction or interpretation of
this Agreement to the substantive
law of another jurisdiction.
	 
	Arbitration

	 	Any disputes between you and the
Company in any way concerning this
Agreement shall be submitted at the
initiative of either you or

5

 

	 	 	 
	 

	 	the
Company to mandatory arbitration
before a single arbitrator in
Birmingham, Alabama pursuant to the
Commercial Arbitration Rules of the
American Arbitration Association, or
its successor, then in effect. The
decision of the arbitrator shall be
rendered in writing, shall be final
and may be entered as a judgment in
any court in the State of Alabama.
You and the Company irrevocably
consent to the jurisdiction of the
federal and state courts located in
Alabama for this purpose. Each
party shall be responsible for its
or his own costs incurred in such
arbitration and in enforcing any
arbitration award, including
attorney’s fees.
	 
	 	 
	The Plan

	 	The text of the Plan is incorporated
in this Agreement by reference.
Certain capitalized terms used in
this Agreement are defined in the
Plan, and have the meaning set forth
in the Plan. 

This Agreement and the Plan
constitute the entire understanding
between you and the Company
regarding this option. Any prior
agreements, commitments or
negotiations concerning this option
are superseded.
	 
	 	 
	Data Privacy

	 	In order to administer the Plan, the
Company may process personal data
about you. Such data includes but
is not limited to the information
provided in this Agreement and any
changes thereto, other appropriate
personal and financial data about
you such as home address and
business addresses and other contact
information, payroll information and
any other information that might be
deemed appropriate by the Company to
facilitate the administration of the
Plan.

By accepting this option, you give
explicit consent to the Company to
process any such personal data. You
also give explicit consent to the
Company to transfer any such
personal data outside the country in
which you work or are employed,
including, with respect to non-U.S.
resident Optionees, to the United
States, to transferees who shall
include the Company and other
persons who are designated by the
Company to administer the Plan.
	 
	 	 
	Consent to Electronic Delivery

	 	The Company may choose to deliver
certain statutory materials relating
to the Plan in electronic form. By
accepting this option grant you
agree that the Company may deliver
the Plan prospectus and the
Company’s annual report to you in an
electronic format. If at any time
you would prefer to receive paper
copies of these documents, as you
are entitled to, the Company would
be pleased to provide copies.
Please contact                      at
                     to request paper copies
of these documents.

6

 

By signing the cover sheet of this Agreement, you agree to all of the terms and
conditions described above and in the Plan.

7

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