Document:

CONVERTIBLE NOTE

Exhibit 10.3

THE SHARES ISSUABLE UPON CONVERSION OF THIS CONVERTIBLE NOTE AND THE CONVERTIBLE NOTE HAVE NOT BEEN REGISTERED UNDER THE FEDERAL OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR HYPOTHECATED IN ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH LAWS AS MAY BE APPLICABLE OR, AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION FROM SUCH APPLICABLE LAWS EXIST.

CONVERTIBLE NOTE

		
	$1,000,000.00

	Issuance Date: July 11, 2013

	 
	Maturity Date: Five Years from the Issuance Date

FOR VALUE RECEIVED, GelTech Solutions, Inc., a Delaware corporation, (the “Company”) hereby promises to pay to the order of Michael Reger (the “Holder”), at 777 Yamato Road, Suite 3, Boca Raton, Florida 33431, or at such other office as the Holder designates in writing to the Company, the sum of One Million Dollars ($1,000,000.00), plus interest at the annual rate of 7.5%, payable annually at the Holder’s option either in cash or in the Company’s Common Stock, until the Maturity Date, unless this Note is converted into Common Stock of the Company pursuant to Section 1 hereof.  If the Holder elects to receive Common Stock as payment for interest, the Company shall issue a number of shares based on the closing price of the Company’s Common Stock on the last trading day preceding the applicable one-year anniversary date of this Note. While in default, this Note shall bear interest at the rate of 12% per annum or such maximum rate of interest allowable under the laws of the State of Florida. Payments shall be made in lawful money of the United States. 

1.

Conversion to Common Stock.  

(a)

The Holder shall have the right to convert this Note, in whole or in part, into shares of the Company’s Common Stock at the rate of $1.00 per share as adjusted (the “Conversion Price”) at any time, subject to prior prepayment.    

(b)

Conversion Formula.  The number of shares of Common Stock issuable upon a conversion of this Note shall be determined by dividing (i) the full principal amount of this Note, which includes all interest that will be accrued as of the conversion date, including default interest if converted after the Maturity Date (or the portion thereof to be converted in the event of a partial conversion), less any principal or interest that has been prepaid as of the date of conversion, by (ii) the Conversion Price. 

1

2.

Anti-Dilution Protection.  

(a)

In the event, prior to the payment of this Note, the Company shall (i) issue any of its shares of Common Stock as a stock dividend on shares of Common Stock, (ii) subdivide the number of outstanding shares of Common Stock into a greater number of shares or (iii) reduce the number of outstanding shares of Common Stock by combining such shares into a smaller number of shares, then, in such event, the Conversion Price shall be adjusted to equal the product of (A) the total number of shares of Common Stock outstanding immediately prior to such event multiplied by the Conversion Price in effect immediately prior to such event, divided by (B) the total number of shares of Common Stock outstanding immediately after such event. 

(b)

In the event, prior to the payment of this Note, the Company shall be recapitalized by reclassifying its outstanding Common Stock (other than into shares of Common Stock with a different par value, or by changing its outstanding shares of Common Stock to shares without par value), or in the event the Company or a successor corporation, partnership, limited liability company or other entity (any of which is defined as a “Corporation”) shall consolidate or merge with or convey all or substantially all of its, or of any successor Corporation’s property and assets to any other Corporation or Corporations (any such other Corporation being included within the meaning of the term “successor Corporation” used in the context of any consolidation or merger of any other Corporation with, or the sale of all or substantially all of the property of any such other Corporation to, another Corporation or Corporations), or in the event of any other material change in the capital structure of the Company or of any successor Corporation by reason of any reclassification, reorganization, recapitalization, consolidation, merger, conveyance or otherwise, then, as a condition of any such reclassification, reorganization, recapitalization, consolidation, merger or conveyance, a prompt, proportionate, equitable, lawful and adequate provision shall be made whereby the Holder of this Note shall thereafter have the right to purchase, upon the basis and the terms and conditions specified in this Note, in lieu of the securities of the Company theretofore purchasable upon the conversion of this Note, such shares, securities or assets as may be issued or payable with respect to or in exchange for the number of securities of the Company theretofore obtainable upon conversion of this Note as provided above had such reclassification, reorganization, recapitalization, consolidation, merger or conveyance not taken place; and in any such event, the rights of the Holder of this Note to any adjustment in the number of shares of Common Stock obtainable upon conversion of this Note, as provided, shall continue and be preserved in respect of any shares, securities or assets which the Holder becomes entitled to obtain.  Notwithstanding anything herein to the contrary, this Section 2 shall not apply to a merger with a subsidiary provided the Company is the continuing Corporation and provided further such merger does not result in any reclassification, capital reorganization or other change of the securities issuable under this Note.  The foregoing provisions of this Section 2(b) shall apply to successive reclassification, capital reorganizations and changes of securities and to successive consolidation, mergers, sales or conveyances.

(c)

In the event the Company, at any time while this Note shall remain outstanding, shall sell all or substantially all of its assets, dissolve, liquidate, or wind up its affairs (each a “Liquidation Event”), a prompt, proportionate, equitable, lawful and adequate provision 

2

shall be made as part of the terms of any such Liquidation Event such that the Holder of this Note may thereafter receive, upon exercise hereof, in lieu of the securities of the Company which it would have been entitled to receive, the same kind and amount of any shares, securities or assets as may be issuable, distributable or payable upon any such Liquidation Event with respect to each share of Common Stock of the Company.  Notwithstanding the preceding, in the event of any  Liquidation Event, the right to convert this Note shall terminate on a date fixed by the Company, such date so fixed to be not earlier than (i) 6:00 p.m., New York time, on the 30th day after the date on which notice of such termination of the right to convert this Note has been given by mail to the Holder of this Note at such Holder’s address as it appears on the books of the Company or (ii) the date that the Company received sufficient approval of the Liquidation Event from its shareholders and/or directors, as required by law, if later; provided, however, that if such Liquidation Event is abandoned prior to its consummation or is not otherwise consummated within 180 days from the date of notice referred to in (i) above, then the conversion right of the Holder shall be reinstated. 

3.

Event of Default.   Upon an Event of Default, the entire unpaid balance of this Note then outstanding, together with accrued interest thereon, if any, shall be and become immediately due and payable upon written notice from the Holder.  For purposes of this Note, an “Event of Default” shall consist of any of the following events: 

(a)

The Company shall fail to pay any amounts which shall become due and payable to Holder under this Note, whether at the Maturity Date or at any accelerated date of maturity or at any other date fixed for payment.

(b)

The Company shall commence any case, proceeding or other action under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to its debts; or a court shall enter an order for relief or any such adjudication or appointment, which case, proceeding or action or order, adjudication, or appointment, as the case may be, remains undismissed, undischarged or unbonded for a period of 30 days, then, or any time thereafter during the continuance of any of such events.

(c)

The Company shall fail to issue the shares of Common Stock issuable upon any conversion of this Note within five days following the conversion date, or to perform in any material respect any of the other material covenants or agreements contained in this Note and not cure, if possible to cure, such failure within 10 business days after notice thereof.

(d)

Any material representation or warranty of the Company herein shall prove to have been false in any material respect upon the date when made.

(e)

The occurrence of an event of default, subject to any applicable cure period, under the Agreement. 

3

(f)

The occurrence of a Liquidation Event.

(g)

The Company shall fail to timely pay any interest or principal pursuant to any material indebtedness of the Company which results in the acceleration of the maturity of such indebtedness. 

4.

Prepayment.  

(a)

This Note may be prepaid in whole or in part at any time for cash on 15 business days’ prior written notice, subject to the right of holder of the Note to convert into shares of Common Stock of the Company prior to any prepayment.  The Company shall honor any Conversion Notice (as defined in Section 5) delivered by the Holder up to 10 days following the notice of prepayment.  

(b)

All payments made on this Note shall be applied first to any interest accrued to the date of such payment with the remainder applied toward principal.

5.

Mechanics of Conversion.  To convert the Note into Common Stock on any date (a “Conversion Date”), the Holder shall (i) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit 1 (the “Conversion Notice”) to the Company, and (ii) surrender this Note to a common carrier for delivery to the Company as soon as practicable on or following such date (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction).  On or before the second (2nd) business day following the date of receipt of a Conversion Notice, the Company shall confirm that it has issued to the Holder the number of shares of Common Stock to which the Holder shall be entitled, and shall return to the Holder a new Note with respect to the portion of the original Note which was not converted.  The person or persons entitled to receive the Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such Common Stock on the Conversion Date.

6.

Conversion Shares.

(a)

The Company covenants that by December 31, 2013, the Company will hold a shareholder’s meeting seeking shareholder approval to increase the Company’s authorized capital (or effect a reverse stock split) in order to: (i) permit the Holder to convert all of the shares underlying this Note, (ii) to permit the Holder to exercise the warrants which are being issued concurrently with this Note, and (iii) to permit all of the Company’s security holders to convert or exercise their outstanding derivative securities.   The Holder covenants to vote his shares at any such meeting to approve the increase in authorized capital (or effect a reverse stock split).  After the Company’s authorized capital is increased (or the reverse stock occurs), the Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note not less than such aggregate number of shares of the Common Stock as shall be issuable (taking into account the adjustments under Section 2) upon the conversion of the Note. The Company 

4

covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable, and free of all taxes, liens and charges created by the Company. 

(b)

No fractional shares shall be issued upon a conversion. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall pay the Holder cash equal to the product of such fraction multiplied by the Common Stock’s fair market value at the time of conversion based on the closing price of a share of Common Stock at such time. 

(c)

The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge to the Holder for any documentary stamp or similar taxes or any other expense that may be payable in respect of the issue or delivery of such certificates, all of which taxes and expenses shall be paid by the Company, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note so converted and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.

7.

Negative Covenant. As long as any portion of this Note remains outstanding, the Company shall not declare or pay cash dividends or make any distributions of cash or property in respect of any equity securities of the Company, excluding dividends on the Company’s Preferred Stock. 

8.

Miscellaneous.

(a)

All makers and endorsers now or hereafter becoming parties hereto jointly and severally waive demand, presentment, notice of non-payment and protest. 

(b)

This Note may not be changed or terminated orally, but only with an agreement in writing, signed by the parties against whom enforcement of any waiver, change, modification, or discharge is sought with such agreement being effective and binding only upon attachment hereto.

(c)

This Note and the rights and obligations of the Holder and of the undersigned shall be governed and construed in accordance with the laws of the State of Florida.

(d)

Upon the occurrence of an Event of Default under this Note, the Company shall, upon demand, pay to the Holder the amount of any and all reasonable costs and expenses (including reasonable attorneys’ fees) that Holder may incur in connection with the enforcement or collection of this Note. 

5

(e)

No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies.

(f)

The Company hereby, to the fullest extent permitted by applicable law, waives presentment, demand, notice (including without limitation notice of default (except as otherwise specifically set forth herein), notice of protest, notice of intention to accelerate maturity, notice of acceleration of maturity and notice of nonpayment or dishonor), protest and all other demands and notices in connection with delivery, acceptance, performance, default, acceleration or enforcement of or under this Note, and the bringing of suit and diligence in taking any action to collect amounts owing hereunder or in proceeding against any of the rights and properties securing payment hereof, and is directly and primarily liable for the amount of all sums owing or to be owing hereon. The Company agrees that its liability on or with respect to this Note shall not be affected by any release of or change in any guaranty or security at any time or by any failure to perfect or maintain perfection of any lien against or security interest in any such security or the partial or complete unenforceability of any guaranty or other surety obligation, in each case in whole or in part, with or without notice and before or after maturity.  No extension of the time for the payment of this Note made by agreement with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change or affect the original liability of the Company under this Note.

(g)

All notices, offers, acceptance and any other acts under this Note (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by Federal Express or similar receipted next business day delivery, or by facsimile delivery followed by overnight next business day delivery to the Company at the address  set forth in the Agreement (as it may be changed pursuant to the Agreement) and to the Holder at the address set forth in the Agreement or such other address as the Holder by notice to the Company may designate from time to time.  The transmission confirmation receipt from the sender’s facsimile machine shall be evidence of successful facsimile delivery.  Time shall be counted to, or from, as the case may be, the date of delivery.

Signature Page Follows

6

IN WITNESS WHEREOF, the Company has caused this Note to be executed as of the date aforesaid.

				
	 
	By:

	 
	 

	 
	 
	Michael Cordani 

	 

	 
	 
	Chief Executive Officer

	 

7

EXHIBIT 1

CONVERSION NOTICE

Reference is made to the Convertible Note (the “Note”) issued to the undersigned by GelTech Solutions, Inc., (the “Company”).  In accordance with and pursuant to the Note, the undersigned hereby elects to convert, in whole or in part (as applicable), the principal and any accrued interest of the Note to which this notice is attached into Common Stock of the Company, as of the date specified below.

												
	Date of Conversion:

	 

	Please confirm the following information:

	Conversion Price:

	 

	Principal and accrued interest to be converted (if partial):

	 

	Number of Shares of Common Stock to be issued:

	 

	Please issue the Common Stock into which the Note is being converted in the following name and to the following address:

	Issue to:

	 

	 
	 

	 
	 

	Facsimile Number:

	 

	Authorization:

	 

	By:

	 

	Title:

	 

	Dated:

	 

	Account Number:

	 

	  (if electronic book entry transfer)

	 

	Transaction Code Number:

	 

	  (if electronic book entry transfer)

	 

8CUZ-Exhibit 10(a)(xxxi) 4Q13

Exhibit 10(a)(xxxi)
COUSINS PROPERTIES INCORPORATED
2005 Restricted Stock Unit Plan
Restricted Stock Unit Certificate for 2014-2016 Performance Period

This Restricted Stock Unit Certificate evidences that on January 30, 2014 (“Grant Date”) the key employee named below (“Key Employee”) was awarded an opportunity to receive restricted stock units (“RSUs”) pursuant to the Cousins Properties Incorporated (“CPI”)  2005 Restricted Stock Unit Plan (the “Plan”).  The number of RSUs actually payable under this Certificate depends on the extent to which CPI attains each of two separate performance goals for the Performance Period and whether the service vesting condition is met, all as described in more detail in this Certificate.  The definitions set forth in the Plan are incorporated in this Certificate, and these RSUs are subject to all of the terms and conditions set forth in the Plan (to the extent such terms are not inconsistent with the terms in the Certificate) and in this Certificate.
Terms and Conditions
		
	1.
	Name of Key Employee:  ______________________________.

		
	2.
	Target Number of RSUs.  Key Employee’s target number of RSUs payable based on CPI’s attainment of the performance goals set forth on Exhibit A (“Exhibit A RSUs”) is ____.  Key Employee’s target number RSUs payable based on CPI’s attainment of the performance goals set forth on Exhibit B (“Exhibit B RSUs) is ____.  Key Employee will be paid based on a percentage of the target number (ranging from 0% to 200%) as set forth on Exhibit A and/or Exhibit B, whichever is applicable.  

		
	3.
	Performance Period.  The Performance Period is January 1, 2014 through December 31, 2016.

		
	4.
	Service Vesting Condition and Forfeiture.  Except as set forth in § 8 of the Plan if a Change in Control is consummated or as set forth in this § 4, Key Employee will vest in the RSUs only if Key Employee remains continuously employed by CPI through the third anniversary of the Grant Date.  A transfer between or among CPI or any Subsidiary, Parent or Affiliate of CPI shall not be treated as a termination of employment with CPI.  If Key Employee’s employment is terminated for any reason except Retirement or death before the third anniversary of the Grant Date, Key Employee shall automatically forfeit the RSUs in full regardless of whether the performance goals on Exhibit A and/or Exhibit B are met.   If Key Employee’s employment terminates due to Retirement or death, Key Employee will be deemed to have satisfied this service vesting condition but not the performance goals set forth on Exhibit 

1

A and Exhibit B.  For this purpose, “Retirement” shall mean Key Employee’s termination of employment with CPI on or after the date (a) Key Employee has attained age 60 and (b) Key Employee’s age (in whole years) plus Key Employee’s whole years of employment measured since Key Employee’s most recent date of hire (disregarding any partial year of employment) equal at least 65.
		
	5.
	Cash Dividends.  If Key Employee becomes entitled to a payment for vested RSUs under § 6 and a cash dividend (whether ordinary or extraordinary) has been paid on a share of Stock during the Performance Period, CPI shall pay Key Employee a dividend equivalent payment.  The dividend equivalent payment will equal (a) the total amount of cash dividends that would have been paid to Key Employee if the vested RSUs payable under § 6 were actually shares of Stock held by Key Employee during the Performance Period plus (b) any additional cash dividends that would have been payable during the Performance Period if the cash dividends described in § 5(a) were reinvested in Stock for the remainder of the Performance Period.   Any amounts payable under this § 5 shall be made at the same time and in the same manner as the payment under § 6.

		
	6.
	Distribution of Payment Represented by RSUs.  As soon as practical after the end of the Performance Period, the Committee will determine the extent to which the performance goals and the service vesting condition have been met and the number of vested RSUs payable under this § 6 to Key Employee.  The number of vested RSUs shall equal the sum of the Exhibit A RSUs payable pursuant to Exhibit A plus the Exhibit B RSUs payable pursuant to Exhibit B.  Payment of vested RSUs shall be made in a single payment in cash to Key Employee (or if Key Employee dies after the RSUs vest and before payment is made, his Beneficiary) as soon as practical (and no later than 90 calendar days) after the date the service vesting condition is met.  Notwithstanding the preceding sentence, for a Key Employee who terminates employment due to Retirement or death, payment of vested RSUs shall be paid no later than March 15, 2017.  Any fractional RSUs shall be rounded down.  The value of each RSU for purposes of determining the cash payment is equal to the Fair Market Value of one share of Stock on December 31, 2016. Although set forth in more detail in the Plan, Fair Market Value generally means the average of the closing price of a share of Stock on each trading day during the 30 calendar day period ending on the applicable valuation date.  Any portion of the RSUs that is not payable because the performance goals are not met shall automatically be forfeited as of December 31, 2016 or, if earlier, the date Key Employee’s employment terminates for reasons other than Retirement or death.

		
	7.
	Withholding.  CPI shall have the right to take whatever action the Committee directs to satisfy applicable federal, state and other withholding requirements.

2

		
	8.
	Nontransferability and Status as Unsecured Creditor.  Key Employee shall have no right to transfer or otherwise assign Key Employee’s interest in any opportunity to receive RSUs or the RSUs themselves.  All payments pursuant to this Certificate shall be made from the general assets of CPI, and any claim for payment shall be the same as a claim of any general and unsecured creditor of CPI.

		
	9.
	Employment and Termination.  Nothing in this Certificate shall give Key Employee the right to continue in employment with CPI or limit the right of CPI to terminate Key Employee’s employment with or without cause at any time.

		
	10.
	    No Shareholder Rights.  Key Employee shall have no rights as a shareholder of CPI as a result of any opportunity or any payment arising under this Certificate.

		
	11.
	Amendment and Termination.  The Plan and this Certificate may be modified and/or terminated as set forth in the Plan.

		
	12.
	Miscellaneous.  This Certificate shall be governed by the laws of the State of Georgia.

		
	13.
	Coordination with Plan.  During the Performance Period, the RSUs subject to this Certificate shall be treated the same as (a) outstanding Restricted Stock Units solely for purposes of the adjustment provisions in § 7 of the Plan and (b) outstanding Awards solely for purposes of the change in control provisions in § 8 of the Plan and the amendment provisions in § 9 of the Plan.

		
	14.
	Change in Control. For purposes of § 8 of the Plan, the target for the performance goals (as used in such section) shall mean the performance goal that results in 100% of the target number of RSUs being payable under § 6.

		
	15.
	Short-Term Deferral.  Any payments under this Certificate are intended to comply with the short-term deferral rule set forth in Treasury Regulation §1.409A-(b)(4), and this Certificate shall be interpreted to effect such intent.  

3

		
	16.
	Clawback.  CPI has the right to take any action which the Committee reasonably determines is required for CPI to comply with the clawback provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Cousins Properties Incorporated

By:    
Name:      

4

EXHIBIT A

If Aggregate FFO is less than 60% of the Target FFO, no Exhibit A RSUs are payable under § 6.

If Aggregate FFO is equal to 100% of the Target FFO, the actual number of Exhibit A RSUs payable under § 6 will equal 100% of the target number of such RSUs.

If Aggregate FFO is equal to or greater than 140% of the Target FFO, the actual number of Exhibit A RSUs payable under § 6 will equal 200% of the target number of such RSUs.

If Aggregate FFO falls between 60% and 100% or between 100% and 140% (but not at the 60%, 100%, or 140% level) of Target FFO, the actual number of Exhibit A RSUs payable under § 6 will be mathematically interpolated by the Committee, but in no event will the number exceed 200% of the target number of such RSUs.

Notwithstanding the foregoing, the Committee may at any time, in its sole discretion, remove or lower the performance goals described in this Exhibit A, and may, in such manner that the Committee deems equitable under the circumstances, exercise negative discretion to adjust downward any amount otherwise payable hereunder.

For purposes of this Exhibit A, the following definitions shall apply:

		
	(a)
	“Aggregate FFO” shall mean the sum of the Company’s FFO for each calendar year during the Performance Period.

		
	(b)
	“FFO” shall mean the per share funds from operations as reported in the Company’s Annual Report on Form 10-K for the year ending December 31 of each year in the Performance Period; provided, however, that the Committee may elect, in its sole discretion, to exclude from this calculation any items which the Committee deems to be non-recurring.  Unless the Committee expressly determines otherwise, which it may elect to do in its sole discretion, the exclusions identified by the Committee from the FFO calculation used in connection with the short term annual incentive compensation performance for a particular year shall automatically be excluded from FFO for such year for purposes of the calculations under this Exhibit A.  

		
	(c)
	“Target FFO” shall mean $___ per common share. 

5

EXHIBIT B
If TSR is below the 25th percentile when compared to the total shareholder return for the Performance Period (as reasonably determined by the Committee or its delegate) of each of the Companies, no Exhibit B RSUs are payable under § 6.
If TSR is at the 25th percentile when compared to the total shareholder return for the Performance Period (as reasonably determined by the Committee or its delegate) of each of the Companies, the actual number of Exhibit B RSUs payable under § 6 will equal 35% of the target number of such RSUs.
If TSR is at the 50th percentile when compared to the total shareholder return for the Performance Period (as reasonably determined by the Committee or its delegate) of each of the Companies, the actual number of Exhibit B RSUs payable under § 6 will equal 100% of the target number of such RSUs.
If TSR is at or above the 75th percentile when compared to the total shareholder return for the Performance Period (as reasonably determined by the Committee or its delegate) of each of the Companies, the actual number of Exhibit B RSUs payable under § 6 will equal 200% of the target number of such RSUs.
If TSR falls between the 25th and 50th percentiles or between the 50th and 75th percentiles when compared to the total shareholder return for the Performance Period of each of the Companies, but not at the 25th, 50th, or 75th percentile levels, the actual number of Exhibit B RSUs payable under § 6 will be mathematically interpolated by the Committee, but in no event will the number exceed 200% of the target number of such RSUs.
In determining total shareholder return of each of the Companies, the Committee (or its delegate) will use the same methodology used to compute TSR to the extent practical, with the starting Fair Market Value being the average of the closing price of a share on each trading day during the 30 calendar day period ending on December 31, 2013, and the ending Fair Market Value being the average of the closing price of a share on each trading day during the 30 calendar day period ending on December 31, 2016. 
Notwithstanding the foregoing, the Committee may at any time, in its sole discretion, remove or lower the performance goals described in this Exhibit B,  and may, in such manner that the Committee deems equitable under the circumstances, exercise negative discretion to adjust downward any amount otherwise payable hereunder.
For purposes of this Exhibit B, the following definitions shall apply: 
(a)    “Companies” shall mean all companies represented in the SNL US REIT Office Index on January 2, 2014 (as set forth on Schedule 1 hereto) which remain publicly traded on an established exchange for the entire Performance Period, 

6

except as described in this paragraph (a).  For the avoidance of doubt, in calculating the TSR percentile rank of CPI, CPI will be included with the Companies.  
“Companies” shall exclude a company which is acquired or completes a “going private” transaction pursuant to Rule 13e-3 of the Securities Exchange Act of 1934 after January 2, 2014.  “Companies” shall include a company which has filed for bankruptcy protection in accordance with the U.S. Bankruptcy Code or is otherwise involuntarily de-listed from an established exchange (other than as the result of being acquired or completing a “going private” transaction) after January 2, 2014, with such bankrupt or de-listed companies having a TSR percentile ranking of 0%.
(b)    “TSR” shall mean total shareholder return on a share of Stock for the Performance Period (generally appreciation in the Fair Market Value of a share of Stock plus dividends treated as reinvested in Stock), as reasonably determined by the Committee or its delegate.

7

SCHEDULE 1

SNL US REIT Office Index 
Component Companies as of January 2, 2014

	
		
	Company
	Trading Symbol

	Alexandria Real Estate
	ARE-US

	BioMed Realty Trust Inc.
	BMR-US

	Boston Properties Inc.
	BXP-US

	Brandywine Realty Trust
	BDN-US

	Columbia Property Trust
	CXP-US

	CommonWealth REIT
	CWH-US

	Corporate Office Properties Trust
	OFC-US

	Cousins Properties Incorporated
	CUZ-US

	Douglas Emmett Inc.
	DEI-US

	Empire State Realty Trust Inc.
	ESRT-US

	First Potomac Realty Trust
	FPO-US

	Franklin Street Properties
	FSP-US

	Government Properties Incm Tr
	GOV-US

	Highwoods Properties Inc.
	HIW-US

	Hudson Pacific Properties Inc.
	HPP-US

	Kilroy Realty Corp.
	KRC-US

	Mack-Cali Realty Corp.
	CLI-US

	Parkway Properties Inc.
	PKY-US

	Piedmont Office Realty Trust
	PDM-US

	SL Green Realty Corp.
	SLG-US

	 
	 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]