Document:

exv10w22

 

Exhibit 10.22

EXECUTION COPY

UNIT AWARD AGREEMENT

     This Unit Award Agreement (this “Agreement”), is made effective as of October 5, 2007,
(hereinafter referred to as the “Date of Grant”), between Tishman Speyer Archstone-Smith
Multifamily Parallel Guarantor II, L.L.C., a limited liability company organized under the laws of
the State of Delaware (the “Company”), and R. Scott Sellers (“Sellers”).
Capitalized terms not defined in this Agreement shall have the meaning given to them in the Limited
Liability Company Agreement of the Company, dated as of October 5, 2007 (the “LP
Agreement”).

R E C I T A L S:

     WHEREAS, Sellers is employed by Archstone-Smith Communities L.L.C. or any of its affiliates
(the “Employer”) and, through such employment, provides services to the Company and its
affiliates;

     WHEREAS, the Board of Directors of Tishman Speyer U.S. Value Added Associates VII, L.L.C. (the
“Board”), which is the general partner of Tishman Speyer Real Estate Venture VII Parallel
(Governance), L.P., which in turn is the general partner of Tishman Speyer Archstone-Smith
Multifamily Parallel (GP), L.P., which in turn is the general partner of Tishman Speyer
Archstone-Smith Multifamily Parallel Fund II JV, L.P., the managing member of the Company has
determined that it would be in the best interests of the Company and its affiliates to make the
award of Class B Units provided for herein to Sellers pursuant to the terms set forth herein.

     NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties
hereto agree as follows:

     1. Award of Class B Units.

          (a) Class B Units. Subject to the terms and conditions of this Agreement, the Company
hereby grants to Sellers an award of 100 Class B Units of the Company (such 100 units, hereinafter
called the “Class B Units”). The Class B Units shall vest in accordance with Section 2 of
this Agreement.

          (b) Adjustment.

               (i) In the event that there shall be any sale or other extraordinary distribution (whether in
the form of cash, membership units of the Company or other property), recapitalization, split or
reverse split of equity, reorganization, merger, consolidation, spin-off, combination, repurchase,
or unit exchange, or other similar transaction or event affecting the Class B Units, the Board
shall cause to be made such equitable adjustments as it, in good faith, deems necessary or
appropriate to the number and kind of units issued pursuant to this Agreement to prevent
inappropriate dilution or enlargement of the economic interest represented by such units.

 

 

               (ii) In the event that securities of the Company are redeemed in connection with the
establishment of a new Affiliate or Affiliates, the Company may cancel all or a portion of such
Class B Units and issue or cause to be issued to Sellers economically equivalent equity interests
in such new Affiliate(s) (a “Reapportionment”), containing terms and conditions that are no
less favorable than the terms and conditions set forth herein (including, but not limited to,
vesting conditions), to appropriately apportion the incentive compensation element of the Class B
Units amongst such Affiliate(s). In the event that a Reapportionment results in any negative
impact on Sellers (including, without limitation, any adverse tax impact such as the loss of
long-term capital gains treatment, the inclusion of income on the date of such Reapportionment or
the loss of basis), the Company shall indemnify and hold Sellers harmless with respect to all
economic loss associated with the transfer of the interests and shall gross-up all such payments so
that the indemnification is tax neutral to Sellers; provided, however, that Sellers shall cooperate
with the Company to minimize the extent of any adverse tax impact to the extent permissible under
applicable law.

     2. Vesting. Subject to Sellers’s continued employment with the Employer, the Class B
Units will vest and become non-forfeitable (such non-forfeitable Class B Units, the “Vested
Units,” and Class B Units prior to becoming Vested Units, “Unvested Units”) on the
three-year anniversary of the Date of Grant; provided, however, that all Class B
Units shall become Vested Units upon the earlier to occur of (i) a termination of Sellers’s
employment with the Employer by the Employer without “Cause” or by Sellers for “Good Reason” (each
as defined in, and in accordance with the terms and conditions of, the employment agreement by and
between Sellers and Archstone-Smith Communities L.L.C., dated as of October 5, 2007 (the
“Employment Agreement”)) and (ii) the date on which there is a liquidation or dissolution
of the Company if and only if the Unvested Units effectively lose any portion of their value in
connection with such liquidation or dissolution and such lost value is not replaced upon or
promptly following such liquidation or dissolution through the grant to Sellers of economically
equivalent units or interests in an Affiliate (without any negative impact to Sellers associated
with such replacement). Any Class B Units which remain Unvested Units after the application of the
preceding sentence shall be forfeited upon a termination of Sellers’s employment with the Employer.

     3. Distributions.

          (a) Vested Units. Distributions in respect of Vested Units shall be made to Sellers
in accordance with the provisions of Section 14 of the LP Agreement.

          (b) Unvested Units. Sellers shall not be entitled to any distributions in respect of
Unvested Units until and unless such Unvested Units have become Vested Units. Any amounts which
would have been distributed to Sellers pursuant to the terms of the LP Agreement in respect of
Unvested Units but for the application of the preceding sentence (the “Unvested
Allocations”) shall be distributed to Sellers as soon as practicable after such Class B Units
become Vested Units, without interest. The Company shall set aside all Unvested Allocations until
such time as the Unvested Allocations are either forfeited pursuant to Section 2 above or
distributed pursuant to this Section 3(b) as provided for in Section 14 of the LP Agreement.

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     4. Rights as Holder of Class B Units. Sellers shall be the record owner of the Class
B Units unless and until such Class B Units are forfeited pursuant to Section 2 hereof or
transferred in accordance with Section 6 hereof and, except as provided in this Agreement, as
record owner shall be entitled to all rights of a holder of Class B Units of the Company;
provided, that the Class B Units shall be subject to the limitations on transfer
and encumbrance set forth in this Agreement and the LP Agreement.

     5. Representations in the LP Agreement; Purchase for Investment; Other Representations of
Sellers.

          (a) Representations in LP Agreement. Sellers hereby represents and warrants that all
representations and warranties made by Sellers in the LP Agreement are true and correct.

          (b) Investment Intent. Sellers hereby represents and warrants that the Class B Units
are being acquired for investment and not with a view to distribution thereof, and to make such
other reasonable and customary representations regarding matters relevant to compliance with
applicable securities laws as are deemed necessary by counsel to the Company.

          (c) Other Representations. Sellers hereby represents and warrants to the Company as
follows:

               (i) Access to Information. Because of Sellers’s business relationship with the
Company and with the management of the Company, Sellers has had access to all material and relevant
information concerning the Company, thereby enabling Sellers to make an informed investment
decision with respect to his investment in the Company, and all pertinent data and information
requested by Sellers from the Company or its representatives concerning the business and financial
condition of the Company and the terms and conditions of this Agreement have been furnished to
Sellers. Sellers acknowledges that he has had the opportunity to ask questions of and receive
answers and obtain additional information from the Company and its representatives concerning the
present and proposed business and financial conditions of the Company.

               (ii) Financial Sophistication. Sellers has such knowledge and experience in financial
and business matters that Sellers is capable of evaluating the merits and risks of investing in the
Class B Units.

               (iii) Understanding the Investment Risks. Sellers understands that:

          (A) An investment in the Class B Units represents a highly speculative
investment, and there can be no assurance as to the success of the Company
in its business;

                    (B) There is at present no market for the Class B Units and there can
be no assurance that a market will develop in the future;

                    (C) The Class B Units may be worthless; and

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                    (D) Ownership of the Class B Units may result in taxable income to
Sellers without a corresponding cash or in-kind distribution.

               (iv) Understanding the Nature of the Class B Units. Sellers understands and agrees
that:

                    (A) There can be no assurance that the Class B Units will be registered
under the Securities Act of 1933, as amended (the “Securities Act”),
or any applicable state securities laws and, if they are not so registered,
they will only be issued and sold in reliance upon certain exemptions
contained in the Securities Act and applicable state securities laws, and
the representations and warranties of Sellers contained herein are essential
to any claim of exemption by the Company under the Securities Act and such
state laws;

                    (B) If the Class B Units are not so registered, the Class B Units will
be “restricted securities” as that term is defined in Rule 144 promulgated
under the Securities Act;

                    (C) Sellers may not sell, transfer, assign, pledge or otherwise dispose
of or encumber the Class B Units without registration under the Securities
Act and applicable state securities laws unless the Company receives an
option of counsel acceptable to it (as to both counsel and the opinion) that
such registration is not required;

                    (D) Only the Company can register the Class B Units under the
Securities Act and applicable state securities laws;

                    (E) The Company has not made any representations to Sellers that the
Company will register the Class B Units under the Securities Act or any
applicable state securities laws, or with respect to compliance with any
exemption therefrom;

                    (F) Sellers is aware of the conditions for his obtaining an exemption
from the sale or transfer of the Class B Units under the Securities Act and
any applicable state securities laws; and

                    (G) The Company may, from time to time, make stop transfer notations in
its transfer record to ensure compliance with the Securities Act and any
applicable state securities laws, and any additional restrictions imposed by
state securities administrators.

               (v) Investment Intent. Sellers acknowledges that:

                    (A) Neither Sellers nor anyone acting on his behalf has paid or will
pay a commission or other remuneration to any person in connection with the
acquisition of the Class B Units; and

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          (B) At the time and as a condition of delivery of documents evidencing
the Class B Units, Sellers will be deemed to have made all the
representations and warranties contained in this Section 5 with respect to
such Class B Units and may be required to make other representations
concerning investment intent as condition of the delivery of such Class B
Units by the Company.

     6. Restriction on Transfer/LP Agreement. Unvested Units may not be transferred,
pledged, assigned, hypothecated or otherwise disposed of in any way by Sellers. Vested Units may
not be transferred, pledged, assigned, hypothecated or otherwise disposed of in any way by Sellers,
except (a) if and as permitted by the LP Agreement, (b) by will or the laws of descent and
distribution, (c) to or for the benefit of any spouse, child or grandchild of Sellers, or to a
trust or partnership for the benefit of any of the foregoing individuals, or (d) if and as
permitted by the Board. The Class B Units shall not be subject to execution, attachment or similar
process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of the
Class B Units contrary to the provisions of this Agreement or the LP Agreement shall be null and
void and without effect.

     7. Designation of Beneficiary. Sellers may appoint any individual or legal entity in
writing as his beneficiary to receive any Class B Unit (to the extent not previously terminated or
forfeited) under this Agreement upon Sellers’s death or Disability (as defined in the Employment
Agreement). Sellers may revoke his designation of a beneficiary at any time and appoint a new
beneficiary in writing. To be effective, Sellers must complete the designation of a beneficiary or
revocation of a beneficiary by written notice to the Company under Section 8 of this Agreement
before the date of Sellers’s death. In the absence of a beneficiary designation, the legal
representative of Sellers’s estate shall be deemed the beneficiary. Notwithstanding the foregoing,
in the event that any beneficiary appointed by Sellers (or deemed to be as such pursuant to the
preceding sentence) does not expressly become party to the LP Agreement and expressly assume all
restrictions on the Class B Units to which Sellers was subject at the time of his death or
Disability, such appointment (and any purported transfer of Class B Units thereunder) shall be null
and void and without effect.

     8. Notices. Any notice necessary under this Agreement shall be addressed to the
Company at the principal executive office of the Employer and to Sellers at the address appearing
in the personnel records of the Employer for Sellers or to either party at such other address as
either party hereto may hereafter designate in writing to the other. Any such notice shall be
deemed effective upon receipt thereof by the addressee.

     9. Tax Withholding. The Company and Sellers acknowledge and agree that Sellers is an
employee of the Company for all purposes hereunder, including, without limitation, for purposes of
calculating the Company’s withholding tax obligations in connection with any Class B Units becoming
Vested Units. The Company shall reasonably determine the amount of any Federal, state, local or
other income, employment, or other taxes which the Company or any of its subsidiaries or affiliates
may reasonably be obligated to withhold (giving effect to the immediately preceding sentence) with
respect to the grant, vesting or other event with respect to the Class B Units. In connection with
any Class B Units becoming Vested Units, the Company shall withhold from delivery to Sellers a
number of Class B Units that are otherwise becoming

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Vested Units having a fair market value equal to the taxes payable by Sellers in connection
with such vesting; provided, however, that the foregoing shall only apply as to any
amounts in excess of the minimum withholding required by applicable law (after giving effect to the
first sentence of this Section 9) only to the extent such withholding would not result in
accounting charges to the Company or any of its affiliates in excess of the accounting charges
which would have applied in the absence of such withholding.

     10. Choice of Law; Forum. This Agreement will be governed by and construed in
accordance with the laws of the State of Delaware, without giving effect to any choice of law or
conflicting provision or rule (whether of the State of Delaware or any other jurisdiction) that
would cause the laws of any jurisdiction other than the State of Delaware to be applied. In
furtherance of the foregoing, the internal law of the State of Delaware will control the
interpretation and construction of this Agreement, even if under such jurisdiction’s choice of law
or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.
Any proceeding arising out of or relating to this Agreement shall be adjudicated in accordance
with the procedures described in Section 11(g) of the Employment Agreement.

     11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     12. Class B Units Subject to LP Agreement. By entering into this Agreement Sellers
agrees and acknowledges that (i) Sellers has received and read a copy of the LP Agreement and (ii)
the Class B Units are subject to the LP Agreement, the terms and provisions of which are hereby
incorporated herein by reference. In the event of a conflict between any term or provision
contained herein and a term or provision of the LP Agreement, the applicable terms and provisions
of this Agreement will govern and prevail. The grant of Class B Units pursuant to this Agreement
shall not restrict in any way the adoption of any amendment to the LP Agreement in accordance with
the terms of such agreement. Notwithstanding anything herein to the contrary, the grant of Class B
Units pursuant to this Agreement is subject to Sellers taking actions required by the Company to
become a party to the LP Agreement.

     13. No Right to Continued Service. This Agreement shall not be construed as giving
Sellers the right to be retained in the employ of, or in any other continuing relationship with,
the Employer or any of its affiliates.

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     14. Cooperation. The parties shall cooperate to resolve any disputes as to the
interpretation of this Agreement and the dispute resolution mechanisms set forth in Section 11(g)
of the Employment Agreement shall remain applicable.

     15. No Limit on Other Compensation Arrangements. Nothing contained in this Agreement
shall prevent the Company, the Employer or any of their affiliates from adopting or continuing in
effect other compensation arrangements, which may, but need not, provide for the award of Class B
Units, securities and other types of awards, and such arrangements may be either generally
applicable or applicable only in specific cases.

     16. Amendments. The provisions of this Agreement may not be amended, modified or
supplemented unless consented to in writing by the Company and Sellers.

     17. Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon
the same instrument.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

	 	 	 
	/s/ R. Scott Sellers
 

R. Scott Sellers

	 	 

	 	 	 	 	 
	TISHMAN SPEYER ARCHSTONE-SMITH

MULTIFAMILY PARALLEL GUARANTOR II, L.L.C.	 	 
	 
	 	 	 	 
	 

	 	/s/ Michael B. Benner
 

	 	 
	By:

	 	Michael B. Benner	 	 
	Title:

	 	Authorized Signatory	 	 

-8-exv10w23

 

Exhibit 10.23

SEPARATION AND GENERAL RELEASE AGREEMENT

     This Separation and General Release Agreement (the “Agreement”), is made as of April 2,
2007and will be effective as of December 31, 2007, by and between J. Lindsay Freeman (“Freeman”),
an individual, Archstone-Smith Operating Trust, a Maryland real estate investment trust (the
“Operating Trust”) and Archstone-Smith Trust, a Maryland real estate investment trust (the “ASN”)
(Operating Trust and ASN are collectively referred to as the “Company”).

     WHEREAS, Freeman is currently the Chief Operating Officer (the “COO”) of the Company, and

     WHEREAS, the Company and the Executive desire to establish the terms and conditions of
Freeman’s resignation as COO, continued employment with the Company during 2008 and subsequent
retirement from the Company Agreement on the terms and conditions contained herein,

     NOW, THEREFORE, for and in consideration of the mutual promises and covenants herein contained
and for good and valuable consideration, the sufficiency of which is hereby acknowledged, Freeman
and the Company (the “Parties”) hereby agree as follows:

     1. Officer Resignation. Freeman shall take all necessary and appropriate actions to resign
his position as COO of the Company and as an officer and/or director of all subsidiaries of the
Company effective December 31, 2007 (the “Resignation Date”). Following the resignation as Chief
Operating Officer, Freeman shall remain employed through December 31, 2008.

     2. Termination Date/Salary. Freeman’s employment with the Company shall be continued through
December 31, 2008 (the “Termination Date”). During the term of Freeman’s employment, the Company
shall continue to pay to Freeman his base salary at the rate of $450,000, less applicable
withholdings and deductions for the period beginning with the Resignation Date and ending on the
Termination Date. The salary payments shall be made in bi-weekly payments in accordance with the
Company’s usual payroll practices.

     3. Restricted Stock Units. Provided that Freeman complies with the terms of this Agreement,
executes a release containing terms substantially similar to those contained in Section 17 within
30 days following his Termination Date (the “Termination Release”), and does not rescind or seek to
have overturned or declared invalid the Termination Release, and subject to the other terms,
conditions and limitations of the Archstone-Smith Trust 2001 Long-Term Incentive Plan (the “LTIP”)
and the applicable Restricted Share Unit Agreement, all unvested restricted share units awarded
prior to Freeman’s Resignation Date shall continue to vest following the Resignation Date in
accordance with their terms without requiring Freeman’s continued employment by the Company. The
provisions of this Section shall constitute an amendment of any Restricted Share Unit Agreement
pursuant to which restricted share units would vest after December 31, 2008.

     4. Long-Term Incentive Plan. As an additional severance payment, upon Freeman’s Termination
Date, and provided Freeman complies with the terms of this Agreement and execute and does not seek
to invalidate the Termination Release, Freeman shall be entitled to an amount of cash equal to 2/3
of the value of the performance units to which he would be entitled had he remained employed
through the entire performance period described in the Performance Unit Agreement between Freeman
and ASN dated as of May 2, 2007 (the “Unit Agreement”). Freeman acknowledges that the
determination of the amount shall not be made until 2009 in accordance with the procedures
established for making LTIP awards to other executives of the Company, shall not be made until at
least 6 months following the Termination Date, and shall only be made in the event no award is
made under the Unit Agreement.

 

 

     5. Benefits. Following Freeman’s resignation as COO, Freeman shall remain eligible for all
benefits generally available to employees of the Company; provided, however, that Freeman shall not
be entitled to any bonus, LTIP award or restricted stock unit or other stock based award with
respect to services performed during 2008.

     (a) Upon the Termination Date, Freeman shall be entitled to those benefits provided
under the terms, conditions and limitations of the Company’s retirement and welfare benefit
plans or programs (excluding any severance program) subject to the provisions of the
applicable plan or program.

     (b) Except as expressly provided in this Agreement, the Company will not provide to
Freeman any other compensation, whether or not accrued, directly or indirectly, in
connection with Freeman’s termination of employment with the Company.

     (c) The Company shall continue to indemnify and hold harmless Freeman for all actions
taken by Freeman during his employment in accordance with Freeman’s existing terms of
employment.

     6. Change in Control Agreement. The parties agree that the Change in Control Agreement
between Freeman and the Company dated August 12, 2002 shall expire as of the Resignation Date.

     7. Representations.

     (a) Freeman represents and warrants that he has brought no charges, complaints, claims,
actions or proceedings against the Company as of the date of this Agreement. Freeman
further agrees that he will not commence any lawsuit or, to the fullest extent permitted by
law, other proceedings against the Company with respect to any cause, matter, claim, act or
omission occurring thereafter, provided, however, that this shall not limit Freeman from
enforcing his rights under this Agreement.

     (b) Freeman represents and warrants that as of the Termination Date he will return to
the Company all property of the Company in whatever form retained, including any copies
thereof, in the possession of or under the control of Freeman, including, but without
limitation, all budget information and all notes, memoranda and meeting details regarding
operations of the Company, all of which shall be delivered to the Chief Operating Officer of
the Company on or immediately after the Termination Date.

     (c)
Freeman will not disparage the Company or any of its shareholders, trustees, officers, employees or agents. The Company will not disparage Freeman.

     8. Non-Disclosure.

     (a) Confidential Information Defined. Freeman has created, has had contact
with, use of, and received confidential information and/or trade secrets of Company,
including, but not limited to, data concerning existing or proposed advertising proposals or
campaigns, marketing and sales research, techniques, manuals, programs, systems, designs,
computer programs, formulas, pricing, bidding methods, innovations, inventions, discoveries,
improvements, research and development, specifications, data, know-how, formats, marketing
plans, business plans and strategies, investment and disposition strategies, information
regarding the skills and compensation of other employees of Company, forecasts, financial
information, budgets, projections, and customer and/or supplier identities,
characteristics, preferences and agreements (collectively “Confidential Information”).
Confidential Information may be contained

 

 

in materials including, but not limited to,
customer lists, supplier lists and price lists, reports or computer programs, as well as be constituted by unwritten information, techniques, processes,
practices or knowledge. Confidential Information includes all information disclosed by
Company to Freeman and information developed or learned by Freeman while a shareholder,
officer and/or employee of Company. Confidential Information includes all information that
has or could have commercial value or other utility in the business in which Company has
been engaged or in which it is contemplated engaging. Confidential Information also
includes all information of which the unauthorized disclosure could be detrimental to the
interests of Company, whether or not such information is identified as Confidential
Information by Company.

     (b) Scope. For the “Restricted Period” (as hereinafter defined) Freeman will
not, either directly or indirectly, for Freeman’s own benefit or for the benefit of any
third party, use, divulge, disclose, or communicate to any third party, any of the
Confidential Information in any manner whatsoever, unless the Company otherwise consents to
the disclosure or use of any of the Confidential Information in writing prior to such
disclosure or use. With respect to each particular item of Confidential Information, the
“Restricted Period” shall mean: (a) the period ending on March 31, 2011, if the item of
Confidential Information at issue does not constitute a trade secret, or (b) indefinitely,
if the item of Confidential Information at issue constitutes a trade secret, until such item
of Confidential Information at issue ceases to be a trade secret, but in no event earlier
than March 31, 2011 if the item continues to be Confidential Information. Notwithstanding
the foregoing, Confidential Information does not include information (i) in the public
domain, (ii) received by Freeman outside of Freeman’s relationship with Company as a
shareholder, director, officer and/or employee, from a party not under an obligation of
confidentiality to Company, directly or indirectly, or (iii) that later becomes public,
unless such information is made public by Freeman in breach of this Agreement or any other
agreement by which Freeman is bound or by any other party directly or indirectly under an
obligation of confidentiality to Company.

     9. Covenant Not-To-Compete. To protect the Company’s proprietary interest in the Confidential
Information and to protect the goodwill and value of the Business of Company (hereafter defined),
Freeman shall not, except with the prior written consent of the Company, for the Non-Compete Term
(as hereafter defined) anywhere in the United States of America, its respective territories,
possessions and protectorates, engage, directly or indirectly, individually or in association or in
combination with any other person or entity, as proprietor or owner, officer, director or
shareholder (other than as a passive investor in and holder of less than five percent (5%) of the
common stock of any publicly traded corporation), member or manager of any limited liability
company, or as an employee, agent, independent contractor, consultant, advisor, joint venturer,
trustee, licensee, principal, partner or otherwise, whether or not for monetary benefit, in (a) any
business that competes with the Company or any entity in which the Operating Trust or ASN has a 25%
or greater direct or indirect ownership interest (the “Company Related Entity”) or (b) otherwise
includes the business of the acquisition, disposition, operation, development, management or
financing of multifamily apartment communities (the “Business of Company”). Freeman agrees that
the Company has, is and intends to conduct the Business of Company throughout the United States of
America. Consequently, Freeman and Company agree that it is not possible to limit the geographic
scope of this non-competition covenant contained in this Section to particular cities, provinces or
other geographic subdivisions of these specified jurisdictions. For purposes of this Agreement,
the “Non-Compete Term” shall mean the period ending on March 31, 2011.

     10. Nonsolicitation of Employees. To protect Company’s proprietary interest in the
Confidential Information and in Company’s relationships with its employees and contractors, and to
protect the goodwill and value of the Business of Company, during the Employee Non-Solicitation
Term (as hereinafter defined), Freeman will not, except with the prior written consent of Company,
individually or in association or combination with or through any other person or entity, directly
or indirectly, encourage, induce or entice any employee or independent contractor of Company to
terminate or modify 

 

 

such person’s or entity’s employment, engagement or business relationship with
Company. For purposes of this Agreement, the “Employee Non-Solicitation Term” shall mean the period ending on March 31,
2011.

     11. Covenant Not to Hire Employees. To protect Company’s proprietary interest in the
Confidential Information and in Company’s relationships with its employees and contractors, and to
protect the goodwill and value of the Business of Company, during the Non-Hire Term (as hereinafter
defined), Freeman will not, except with the prior written consent of Company, individually or in
association or combination with or through any other person or entity, directly or indirectly, hire
or attempt to hire, whether as an employee, consultant or otherwise, any person who at such time is
an employee or contractor of Company to perform the same or substantially similar services as such
employee or contractor performed or supplied for or on behalf of Company. For purposes of this
Agreement, the “Non-Hire Term” shall mean the period ending on March 31, 2011. During the Non-Hire
Term, Freeman also agrees that he will not, except on behalf of Company, directly or indirectly
hire or attempt to hire, whether as an employee, consultant or otherwise, any person who at any
time in the six (6) month period prior to such time had been employed by Company.

     12. Nondisruption; Other Matters. For twenty-four (24) consecutive months from the
Termination Date, Freeman agrees that he will not directly or indirectly interfere with, disrupt or
attempt to disrupt any past, present or prospective relationship, contractual or otherwise, between
Company, on the one hand, and any of its customers, suppliers or employees, on the other hand.

     13. Equitable Relief. Freeman acknowledges and agrees that Company’s remedies at law for
breach of any of the provisions of this Agreement would be inadequate and, in recognition of this
fact, Freeman agrees that, in the event of such breach, in addition to any remedies at law it may
have, without posting any bond, shall be entitled to obtain equitable relief in the form of
specific performance, a temporary restraining order, a temporary or permanent injunction or any
other equitable remedy that may be available. Freeman further acknowledges that should Freeman
violate any of the provisions of this Agreement, it will be difficult to determine the amount of
damages resulting to Company and that in addition to any other remedies they may have, Company
shall be entitled to temporary and permanent injunctive relief without the necessity of proving
damages.

     14. Acknowledgement. Each of Freeman and Company acknowledges and agrees that the covenants
and agreements contained in this Agreement have been negotiated in good faith by the parties, are
reasonable and are not more restrictive or broader than necessary to protect the interests of the
parties thereto, and would not achieve their intended purpose if they were on different terms or
for periods of time shorter than the periods of time provided herein or applied in more restrictive
geographical areas than are provided herein.

     15. Separate Covenants. The covenants contained in this Agreement shall be construed as a
series of separate covenants, one for each of the counties in each of the states of the United
States of America, one for each geographic subdivision of each country in Europe in which the
Company has operations, and their respective territories, possessions and protectorates.

     16. Severability. The parties agree that construction of this Agreement shall be in favor of
its reasonable nature, legality and enforceability, and that any construction causing
unenforceability shall yield to a construction permitting enforceability. It is agreed that the
noncompetition, nonsolicitation, and nonhiring covenants and provisions of this Agreement are
severable, and that if any single covenant or provision or multiple covenants or provisions should
be found unenforceable, the entire Agreement and remaining covenants and provisions shall not fail
but shall be construed as enforceable without any severed covenant or provision in accordance with
the tenor of this Agreement. The parties specifically agree that no covenant or provision of this
Agreement shall be invalidated because of overbreadth insofar as the parties acknowledge the scope
of the covenants and provisions contained herein to be reasonable

 

 

and necessary for the protection
of Company and not unduly restrictive upon Freeman. However, should a court or any other trier of
fact or law determine not to enforce any covenant or provision of this Agreement as written due to overbreadth, then the parties agree that said covenant or
provision shall be enforced to the extent reasonable, with the court or such trier to make any
necessary revisions to said covenant or provision to permit its enforceability and that any such
limitation on the enforceability of any such covenant or provision shall not affect the
enforceability of any other covenant or provision of this Agreement.

     17. Releases.

     (a) In consideration of this Agreement and the monies and other good and valuable
consideration provided by the Company pursuant to this Agreement, except for claims arising
out of the obligations of the parties under this Agreement, any claim for indemnification
that Freeman has against the Company pursuant to any Company document or insurance policy
(which shall remain in effect with respect to all actions arising in connection with his
employment to the same extent as such claims existed prior to the termination of employment)
or any claims as a shareholder of the Company, Freeman hereby irrevocably and
unconditionally releases, waives and forever discharges the Company, its successors and
assigns, and its past and present officers, trustees, and employees, including all
employees, directors and officers of any of the Company’s affiliates (collectively,
“Company Releasees”), from any and all actions, causes of action, claims, counterclaims,
demands, damages, rights, remedies and liabilities of whatever kind or character, in law or
equity, suspected or unsuspected, past or present, that he has ever had, may now have, or
may later assert against the Company Releasees, including without limitation for statutory
interest or attorneys’ fees, and arising at anytime from the beginning of time to the
Effective Date of this Agreement (hereinafter collectively referred to as “Freeman’s
Claims”), and including, without limitation, any claims arising out of, in connection with,
or relating to Freeman’s recruitment, employment and termination of employment, and any
claims arising out of or related to any federal, state and/or local labor or civil rights
laws including, without limitation, the federal Civil Right Acts of 1866, 1871, 1964 and
1991, the Age Discrimination in Employment Act of 1967, as amended by, inter alia, the Older
Workers’ Benefit Protection Act of 1990, the Consolidated Omnibus Reconciliation Act of
1985, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993,
the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, as well
as any other applicable local and/or state employment, civil rights, human rights and
discrimination laws, as each may have been amended from time to time. Except as limited
above or by this Agreement, execution of this Agreement by Freeman operates as a complete
bar and defense against any and all of Freeman’s Claims against the Company Releasees.

     (b) In consideration of this Agreement, except for claims arising out of the
obligations of the parties under this Agreement, the Company hereby irrevocably and
unconditionally releases, waives and forever discharges Freeman, his successors and assigns
from any and all actions, causes of action, claims, counterclaims, demands, damages, rights,
remedies and liabilities of whatever kind or character, in law or equity, suspected or
unsuspected, past or present, that it has ever had, may now have, or may later assert
against Freeman, including without limitation for statutory interest or attorneys’ fees, and
arising at anytime from the beginning of time to the Effective Date of this Agreement
(hereinafter collectively referred to as “Company’s Claims”), and including, without
limitation, any claims arising out of, in connection with, or relating to the Employment
Agreement, and/or Freeman’s recruitment, employment and termination of employment, as each
may have been amended from time to time. Execution of this Agreement by the Company
operates as a complete bar and defense against any and all of Company’s Claims against
Freeman.

 

 

     18. Miscellaneous Provisions.

     (a) This Agreement contains the entire agreement between and among the Parties and
supersedes any and all prior agreements, arrangements, negotiations, discussions or
understandings between and among the parties relating to the subject matter hereof. No
oral understanding, statements, promises or inducements contrary to the terms of this
Agreement exist. This Agreement cannot be changed or terminated orally. Should any
provisions of this Agreement be held invalid, illegal or unenforceable, it shall be deemed
to be modified so that its purpose can lawfully be effectuated and the balance of this
Agreement shall remain in full force and effect.

     (b) Freeman and the Company agree that, except as contemplated by this Agreement, any
prior agreements and understandings between them, if any, whether oral or written and of
whatever nature, are hereby cancelled, terminated and superseded by this Agreement and shall
be of no further force or effect.

     (c) This Agreement shall extend to, be binding upon, and inure to the benefit of the
Parties and their respective successors, executors, heirs and assigns.

     (d) This Agreement shall be governed by and construed in accordance with the laws of
the State of Colorado, the site of the Company’s principal place of business.

     (e) This Agreement may be executed in any number of counterparts each of which when so
executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same agreement.

     (f) In the event of any ambiguity, this Agreement or any of its provisions shall not be
construed for or against either party on the basis of which party drafted the particular
language at issue.

     19. Effective Date/Revocation. Freeman may revoke this Agreement in writing at any time
during a period of seven (7) calendar days after the execution of this Agreement by both of the
Parties (the “Revocation Period”). This Agreement shall be effective and enforceable automatically
on the date Freeman executes the Certificate of Non-Revocation of Separation Agreement and General
Release, in the form attached as Exhibit A. The certificate should be executed and dated by
Freeman at least one (1) day after expiration of the Revocation Period (the “Effective Date”).

     20. Notices. Any notices or requests under this Agreement shall be in writing and addressed
as follows:

     If to Freeman:

At his address as reflected on the records of the Company;

     If to the Company:

Archstone-Smith Trust

Attn: General Counsel

9200 East Panorama Circle

Suite 400

Englewood CO 80112

     IN SIGNING THIS SEPARATION AND GENERAL RELEASE AGREEMENT, FREEMAN ACKNOWLEDGES THAT HE HAS
BEEN INFORMED OF THE FOLLOWING RIGHTS AVAILABLE TO HIM UNDER THE AGE DISCRIMINATION IN EMPLOYMENT
ACT (ADEA):

 

 

     (A) HE HAS READ AND UNDERSTANDS THIS AGREEMENT AND IS HEREBY ADVISED IN WRITING HE HAS THE
RIGHT TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT;

     (B) HE HAS SIGNED THIS AGREEMENT VOLUNTARILY AND UNDERSTANDS THAT THIS AGREEMENT CONTAINS A
FULL AND FINAL RELEASE OF ALL OF FREEMAN’S CLAIMS;

     (C) HE HAS BEEN OFFERED AT LEAST TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS AGREEMENT;

     (D) THIS AGREEMENT IS NOT MADE IN CONNECTION WITH AN EXIT INCENTIVE OR OTHER EMPLOYEE
TERMINATION PROGRAM OFFERED TO A GROUP OR CLASS OF EMPLOYEES; AND

     (E) HE DOES NOT WAIVE RIGHTS OR CLAIMS UNDER THE ADEA THAT MIGHT ARISE AFTER THE DATE THIS
WAIVER IS EXECUTED.

	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	/s/ J. Lindsay Freeman	 	 
	 	 	 
	J. Lindsay Freeman	 	 
	 
	 	 	 	 
	Archstone-Smith Trust	 	 
	 
	 	 	 	 
	By:
	 	/s/ R. Scott Sellers	 	 
	 

	 	 

Name: R. Scott Sellers

Title: CEO
	 	 

 

 

ACKNOWLEDGMENT

STATE OF COLORADO

COUNTY OF JEFFERSON

     On
Aug 22, 2007 before me the undersigned, personally appeared J. Lindsay Freeman,
personally known to me or proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the person, or the person upon behalf of
which the individual acted, executed the instrument.

	 	 	 	 	 
	 
	 
	 	/s/ Barbara W. Rolfes	 	 
	 

	 	 

Notary Public
	 	 

ACKNOWLEDGMENT

STATE OF COLORADO

COUNTY OF
JEFFERSON

     On
Aug 22, 2007 before me the undersigned, personally appeared R. Scott Sellers,
personally known to me or proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged to me that he executed the same in his
capacity as an officer of Archstone-Smith Trust, and that by his signature on the instrument,
Archstone-Smith Trust, upon behalf of which the individual acted, executed the instrument.

	 	 	 	 	 
	 
	 
	 	/s/ Barbara W. Rolfes	 	 
	 

	 	 

Notary Public
	 	 

 

 

EXHIBIT A

CERTIFICATION OF NON-REVOCATION OF

SEPARATION AND GENERAL RELEASE AGREEMENT

     I hereby certify and represent that seven (7) calendar days have passed since the Parties
signed the Settlement Agreement and General Release (the “Agreement”) and that I have NOT exercised
my right to revoke that Agreement pursuant to the Older Workers Benefit Protection Act of 1990. I
understand that Archstone-Smith Trust, and the other Releasees, in providing me with benefits under
the Agreement, are relying on this Certificate, and that I can no longer revoke the Agreement.

	 	 	 	 	 	 	 
	 

	 	 
	 	 

	,	 2007
	J. Lindsay Freeman

	 	 	 	Date of Execution	 	 

IMPORTANT:

     This Certificate should be signed, dated and returned to the Company no earlier than on the
eighth (8th) calendar day after the Agreement is executed by both parties.

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