Document:

Exhibit 10.2

 

AVALONBAY COMMUNITIES, INC. 
 [INCENTIVE][NON-QUALIFIED] STOCK OPTION AGREEMENT
 (2009 EQUITY INCENTIVE PLAN)

 

Pursuant to the AvalonBay Communities, Inc. Second Amended and Restated 2009 Equity Incentive Plan (the “Plan”), AvalonBay Communities, Inc. (the “Company”) hereby grants to the Optionee named below an Option to purchase on or prior to the tenth anniversary of the grant date of this option award as set forth below (the “Expiration Date”) up to the number of shares of the Company’s Common Stock, par value $.01 per share (“Common Stock”), set forth below at the Exercise Price set forth below:

 

	
Optionee:
    	
 
    	
 
    
	
Grant Date:
    	
 
    	
 
    
	
Vesting Commencement   Date:
    	
 
    	
[typically March 1 of the year after the Grant   Date]
    
	
Number of Shares   Underlying Option (the “Option Shares”):
    	
 
    	
 
    

 

This option is subject to all of the terms and conditions as set forth herein, in the [Incentive][Non-Qualified] Stock Option Agreement Terms (the “Terms”) which are attached hereto and incorporated herein in their entirety, and in the Plan.  Capitalized terms used but not defined herein or in the Terms shall have the respective meanings ascribed thereto in the Plan.

 

	
Incentive Stock Option:
    	
This Option [shall be construed   in a manner to][does not] qualify it as an “incentive stock option” under   Section 422 of the Internal Revenue Code of 1986, as amended (the   “Code”).
    
	
 
    	
 
    
	
Vesting Schedule:
    	
Subject to the provisions of Section 4 and 6 of   the Terms and the discretion of the Company to accelerate the vesting   schedule, this Option shall vest as to exercisability to purchase the Option   Shares as follows:
    

 

33.3% incrementally on the Vesting Commencement Date,

 

Additional 33.3% incrementally on the first anniversary of the Vesting Commencement Date (66.6% total vested), and

 

Additional 33.4% incrementally on the second anniversary of the Vesting Commencement Date. (100.0% total vested)

 

In any event this Option shall become fully vested and exercisable with respect to all of the Option Shares on March 1 of the third year following the year of grant.

 

Additional Terms/Acknowledgements: The undersigned Optionee acknowledges receipt of, and understands and agrees to, this [Incentive][Non-Qualified] Stock Option Agreement, including, without limitation, the Terms.  Optionee further acknowledges receipt of a copy of the Plan.  Optionee further acknowledges that as of the Date of Grant, this [Incentive][Non-Qualified] Stock Option Agreement, including, without limitation, the Terms, and the Plan set forth the entire understanding between Optionee and the Company regarding the Options described herein and supersede all prior oral and written agreements on that subject.

 

1

 

ATTACHMENT:  [Incentive][Non-Qualified] Stock Option Agreement Terms

 

2

 

AVALONBAY COMMUNITIES, INC.

2009 STOCK OPTION AND INCENTIVE PLAN

 

[INCENTIVE] [NON-QUALIFIED] STOCK OPTION AGREEMENT TERMS

 

1.             Vested Option Shares.  Subject to Section 4, when this Option is vested with respect to any of the Option Shares, this Option shall continue to be exercisable with respect to such Option Shares (“Vested Option Shares”) at any time or times prior to the Expiration Date.

 

2.             Manner of Exercise.  The Optionee may exercise this Stock Option only in the following manner:  from time to time on or prior to the Expiration Date of this Option, the Optionee may give written notice to the Administrator of his or her election to purchase some or all of the Option Shares purchasable at the time of such notice.  This notice shall specify the number of Option Shares to be purchased.

 

Payment of the purchase price for the Option Shares may be made by one or more of the following methods:  (i) in cash, by certified or bank check or other instrument acceptable to the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Common Stock that have been purchased by the Optionee on the open market or that are beneficially owned by the Optionee and are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the Optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition of such payment procedure; [for ISO’s::  or (iv) a combination of (i), (ii) and (iii) above.]  [for NQSO’s:  or (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; or (v) a combination of (i), (ii) (iii) and (iv) above.]  Payment instruments will be received subject to collection.

 

The transfer to the Optionee on the records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company’s receipt from the Optionee of the full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and (iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Common Stock to be purchased pursuant to the exercise of Options under the Plan and any subsequent resale of the shares of Common Stock will be in compliance with applicable laws and regulations.  In the event the Optionee chooses to pay the purchase price by previously-owned shares of Common Stock through the attestation method, the number of shares of Common Stock transferred to the Optionee upon the exercise of the Option shall be net of the shares attested to.

 

The shares of Common Stock purchased upon exercise of this Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon compliance to the satisfaction of the Administrator with all requirements under applicable laws or regulations in connection with such issuance and with the requirements hereof and of the Plan.  The determination of the Administrator as to such compliance shall be final and binding on the Optionee.  The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to this Option unless and until this Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have transferred the shares to the Optionee, and the Optionee’s name shall have been entered as the stockholder of record on the books of the Company.  Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such shares of Common Stock.

 

The minimum number of shares with respect to which this Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to which this Option is being exercised is the total number of shares subject to exercise under this Option at the time.

 

Notwithstanding any other provision hereof or of the Plan, no portion of this Option shall be exercisable after the Expiration Date hereof.

 

3

 

3.             Non-transferability of Option.  This Option is personal to the Optionee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.  This Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s legal representative or legatee.

 

4.             Termination of Employment.  If the Optionee’s employment (or other business relationship) by the Company or a Subsidiary (as defined in the Plan) is terminated, the period within which to exercise the Option may be subject to earlier termination as set forth below.

 

(a)           Termination Due to Death.  If the Optionee’s employment (or other business relationship) terminates by reason of death, any Option held by the Optionee shall be automatically vested on the date of termination and shall be exercisable by the Optionee’s legal representative or legatee (i) for a period of twelve (12) months from the date of termination or until the fifth anniversary of the grant date of this option award, if later, or (ii) until the Expiration Date, if earlier.

 

(b)           Termination Due to Disability.  If the Optionee’s employment (or other business relationship) terminates by reason of Disability (as defined below), any Option held by the Optionee shall be automatically vested on the date of termination, and shall be exercisable (i) for a period of twelve (12) months from the date of termination or until the fifth anniversary of the grant date of this option award, if later, or (ii) until the Expiration Date, if earlier.  The death of the Optionee during the period provided in this Section 4(b) shall extend such period (if it would otherwise expire) for six (6) months from the date of death or until the Expiration Date, if earlier.

 

(c)           Termination by Reason of Retirement.  If the Optionee’s employment terminates by reason of Retirement (as defined below), any Option held by the Optionee shall be automatically vested on the date of termination, and shall be exercisable (i) for a period of twelve (12) months from the date of termination or until the fifth anniversary of the grant date of this option award, if later, or (ii) until the Expiration Date, if earlier.  The death of the Optionee during the period provided in this Section 4(c) shall extend such period (if it would otherwise expire) for six (6) months from the date of death, or until the Expiration Date, if earlier.

 

(d)           Termination for Cause.  If the Optionee’s employment (or other business relationship) terminates for Cause (as defined below), any Option held by the Optionee shall immediately terminate and be of no further force and effect.

 

(e)           Termination Without Cause or for Good Reason within 24 Months of Sale Event.  If the Optionee’s employment (or other business relationship) is terminated by the Company without Cause or, as provided in the Plan, is terminated by the Optionee for Good Reason within 24 months of a Sale Event, any option held by the Optionee shall be automatically vested on the date of termination, and shall be exercisable (i) for a period of twelve (12) months from the date of termination or until the fifth anniversary of the grant date of this option award, if later, or (ii) until the Expiration Date, if earlier.  The death of the Optionee during the period provided in this Section 4(e) shall extend such period (if it would otherwise expire) for six (6) months from the date of death, or until the Expiration Date, if earlier.

 

(f)           Termination at the Election of the Optionee.  If the Optionee’s employment (or other business relationship) is voluntarily terminated at the election of the Optionee other than for Good Reason within 24 months following a Sale Event (i.e., is terminated other than for death, Disability, Retirement, or a termination at the Company’s election whether for Cause or without Cause), any option held by the Optionee may be exercised, to the extent exercisable on the date of termination, for a period of three (3) months from the date of termination, or until the Expiration Date, if earlier.  For clarification, it is noted that this means that the remaining unvested portion of the Option shall terminate immediately and be of no further force or effect.

 

Nothwithstanding the foregoing, the Company may require, as a condition to vesting of the unvested portion of the Option, that the Optionee sign and deliver a Separation Agreement (as hereinafter defined), and such Separation Agreement becomes effective (including through the passage without revocation of any revocation period provided therein) within 30 days of his or her termination of employment, provided that no Separation Agreement shall be required as a condition to accelerated vesting for (x) a termination of employment without cause or for Good Reason

 

4

 

within 24 months after a Sale Event or (y) a termination of Optionee by reason of death, or death during the thirty days following a termination of employment).

 

For this purpose, neither a transfer of employment from the Company to a Subsidiary (or from a Subsidiary to the Company) nor an approved leave of absence shall be deemed a “termination of employment.”  The Administrator’s determination of the reason for termination of the Optionee’s employment shall be conclusive and binding on the Optionee and his or her representatives or legatees except during the 24 months after a Sale Event.

 

For purposes of this Option, following terms shall have the meaning specified below:

 

“Cause” and “Good Reason” and “Sale Event” shall have the meanings set forth for such terms in the Plan.

 

“Disability” shall mean the Optionee’s inability to perform his normal required services for the Company and its Subsidiaries for a period of six consecutive months by reason of the individual’s mental or physical disability, as determined by the Committee in good faith in its sole discretion.

 

“Retirement” shall mean the termination of the Optionee’s employment (and other business relationships) with the Company and its Subsidiaries, other than for Cause, following the date on which the sum of the following equals or exceeds 70 years: (i) the number of full months of the Optionee’s employment and other business relationships with the Company and any predecessor Company and (ii) the Optionee’s age on the date of termination (i.e., a person whose age is 55 years, 6 months and who has worked at the Company for 14 years, 6 months meets the 70 years requirement); provided that:

 

(x)                                 the Optionee’s employment by (or other business relationships with) the Company and any predecessor company of the Company have continued for a period of at least 120 continuous full months at the time of termination and, on the date of termination, the Optionee is at least 50 years old;

 

(y)                                 in the case of termination of employment, the Optionee gives at least six months’ prior written notice to the Company of his or her intention to retire.

 

“Separation Agreement” means a written agreement between the Optionee and the Company, in such form as the Company may reasonably require, providing as follows:

 

·                  the Optionee provides a full release of any actual or potential claim against the Company and its current and former directors, officers, associates, agents and affiliates, under any applicable law and theory of claim, to the maximum extent permitted by law;

 

·                  the Optionee agrees to provide reasonable cooperation with respect to investigation and litigation matters;

 

·                  the Optionee acknowledges and agrees to return all Company property and not use any Company property or proprietary information;

 

·                  the Optionee agrees not to disparage the Company or its officer, directors, agents or management, subject to reasonable exceptions set forth in the agreement; and

 

·                  for a period of at least 12 months following the Optionee’s termination of employment with the Company the Optionee shall not, without the prior written consent of the Company, solicit or attempt to solicit for employment with or on behalf of any Competing Enterprise any employee of the Company or any of its affiliates or any person who was formerly employed by the Company or any of its affiliates within the preceding six months, unless such person’s employment was terminated by the Company or any of such affiliates.

 

5

 

In addition, in connection with a termination of employment due to Retirement a Separation Agreement shall provide that, for a period of at least 12 months following the Optionee’s termination of employment with the Company the Optionee shall not, without the prior written consent of the Company, become associated with, or engage in any “Restricted Activities” with respect to any “Competing Enterprise,” as such terms are hereinafter defined, whether as an officer, employee, principal, partner, agent, consultant, independent contractor or shareholder.  “Competing Enterprise,” for purposes of this section, shall mean any person, corporation, partnership, venture or other entity which is engaged in the business of managing, owning, leasing, or joint-venturing multifamily rental real estate within 30 miles of multifamily rental real estate owned or under management by the Company or its affiliates.  “Restricted Activities,” for purposes of this section, shall mean executive, managerial, directorial, administrative, strategic, business development or supervisory responsibilities and activities relating to any aspects of multifamily rental real estate ownership, management, multifamily rental real estate franchising, and multifamily rental real estate joint-venturing.

 

It should be noted that no provision in any required Separation Agreement shall (i) preclude an Optionee from communicating with federal, state or local governmental or regulatory agencies, (ii) require an Optionee to inform the Company about any such communication, or (iii) preclude an Optionee from collecting a government program bounty to which the Optionee may be entitled.

 

5.             Option Shares.  The Option Shares are shares of the Common Stock of the Company as constituted on the date of this Option, subject to adjustment as provided in the Plan.

 

6.             Acknowledgment and Acceptance of Grant.  Optionee agrees that he or she may be required to evidence his or her acknowledgement of this award and agreement to the terms hereof by accepting this award in the Company’s stock plan administrator’s system, which acceptance may be required within a certain number of days from the grant date hereof in accordance with instructions and/or announcements provided by the Company to the Optionee and, failing to accept this award within the Company’s stock plan administrator’s system within such number of days may constitute grounds for forfeiture of this award in the Company’s sole and absolute discretion.

 

7.             No Special Employment Rights.  This Option will not confer upon the Optionee any right with respect to continuance of employment by the Company or a Subsidiary, nor will it interfere in any way with any right of the Optionee’s employer to terminate the Optionee’s employment at any time.

 

8.             Rights as a Shareholder.  The Optionee shall have no rights as a shareholder with respect to any shares of Common Stock that may be purchased upon exercise of this Option unless and until a certificate or certificates representing such shares are duly issued and delivered to the Optionee.  Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or other rights for which the record date is prior to the date such stock certificate is issued.

 

9.             [For ISO’s:  Qualification under Section 422.  It is understood and intended that the Option granted hereunder shall qualify as an “incentive stock option” as defined in Section 422 of the Code, but the Company does not represent or warrant that this Stock Option qualifies as such.  The Optionee should consult with his or her own tax advisors regarding the tax effects of this Option and the requirements necessary to obtain favorable income tax treatment under Section 422 of the Code, including, but not limited to, holding period requirements.  To the extent any portion of this Option does not so qualify as an “incentive stock option,” such portion shall be deemed to be a non-qualified stock option.  If the Optionee intends to dispose or does dispose (whether by sale, gift, transfer or otherwise) of any Option Shares within the one-year period beginning on the date after the transfer of such shares to him or her, or within the two-year period beginning on the day after the grant of this Option, he or she will so notify the Company within 30 days after such disposition.][For NQSO’s:  Omitted.]

 

10.          Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in  Section 2(b) of the Plan.  In the event of any discrepancy or inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall control.

 

6

 

11.          Withholding Taxes.  The Optionee shall, not later than the date as of which the exercise of this Option becomes a taxable event for federal income tax purposes, pay to the Company (or make arrangements satisfactory to the Company for payment of) any Federal, state and local taxes required by law to be withheld on account of such taxable event.  The Optionee may elect to have the minimum required tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due.

 

12.          Non-Solicitation.  Optionee hereby agrees that, for a period of at least 12 months following Optionee’s termination of employment with the Company for any reason, Optionee shall not, without the prior written consent of the Company, solicit or attempt to solicit for employment with or on behalf of any other person, firm or entity any employee of the Company or any of its affiliates or any person who was formerly employed by the Company or any of its affiliates within the preceding six months, unless such person’s employment was terminated by the Company or any of such affiliates.

 

13.          Recoupment Policy.  To the extent Optionee is a “Covered Officer”, as defined in the Policy for Recoupment of Incentive Compensation adopted by the Company’s Board of Directors, as amended from time to time (the “Recoupment Policy”), the Option, and shares of common Stock received pursuant to exercise of the Option, and any proceeds received in connection with any sale of shares of Common Stock shall be subject to the Recoupment Policy.

 

14.          Miscellaneous.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business, 671 North Glebe Road, Suite 800, Arlington, Virginia 22203, Attention:  Director of Compensation and Benefits, and shall be mailed or delivered to Optionee at his address set forth in the Company’s records, or in either case at such other address as one party may subsequently furnish to the other party in writing.  This Option shall be governed by the laws of the State of Maryland, except to the extent such law is preempted by federal law.

 

[End of Text]

 

7Exhibit 10.3

 

[2018-2020 TSR and Operating Metrics Awards]

 

Personal Performance Award Agreement Exhibit

for the

Three Year Performance Period Ending December 31, 2020

 

Name:  [Name - #]

Initial Target Dollar Value of Award:  [Dollar - #]

 

As an officer of Avalonbay Communities, Inc., you have been awarded two performance awards with an aggregate total target dollar value as listed above:

 

Sixty percent of such total dollar value is allocated to a performance award that employs total shareholder return metrics.  The number of target units for such award and other information about such award is set forth in Exhibit A attached hereto.

 

Forty percent of such total dollar value is allocated to a performance award that employs operating performance metrics.  The number of target units for such award and other information about such award is set forth in Exhibit B attached hereto.

 

In consideration of the receipt of such awards, you acknowledge receipt of, and agree to bound by, the two award agreements attached hereto and the Award Terms attached hereto in Exhibit C, the Plan, and any exhibits to the Award Terms (all as defined pursuant to the attached exhibits).

 

	
 
    	
AVALONBAY   COMMUNITIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Timothy J. Naughton,
    
	
 
    	
Chairman and CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Agreed and   Acknowledged:
    
	
 
    	
 
    
	
 
    	
The recipient of this award   shall agree and acknowledge receipt of this award and its terms through acceptance   of the award via the grant acceptance functionality at the recipient’s   Merrill Lynch Benefits Online account.
    

 

 

[Note: This form of Performance Award Agreement with attached Award Terms reflects the performance vesting terms used for the 2018-2020 Performance Period Award grants made in February 2018.  The metrics, weightings between metrics, and threshold, target and maximum target achievement levels for each metric are subject to change for future performance periods or future award grants.]

 

1

 

[Exhibit A — TSR Metrics Unit Award 2018-2020]

 

Personal Performance Award Agreement Exhibit

for

Total Shareholder Return (TSR) Metrics Units

(2018 Award — Maturing December 31, 2020)

 

Name:  [Name-#]

Date of Grant:  ·

Dollar Value for TSR Units:  [A-#]

Valuation per Unit (Monte Carlo value):  ·

Number of TSR Target Units:   [B-#]

Performance Period:  January 1, 2018 – December 31, 2020

Threshold/Target/Max Multiplier:  50%/100%/200%

 

As an officer or associate of AvalonBay Communities, Inc. (“AvalonBay” or the “Company”), you have been awarded Performance-Based Restricted Stock Units (“Units”) that employ total shareholder return (TSR) metrics as outlined below.  The award described herein is subject to the “Award Terms of Performance-Based Restricted Stock Units” as most recently approved by the Board of Directors and its Compensation Committee on or before the Date of Grant, a copy of which has been distributed to you with this Award Agreement (the “Award Terms”).  Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Award Terms.

 

This Personal Performance Award Agreement Exhibit contains specific information about the awards being made this year that employ TSR metrics for the indicated Performance Period as well as information about your specific award.

 

TSR Performance Metrics:

 

Your award consists initially of the number of Target Units indicated above but you could earn less or more than that number based on the threshold/target/max multiplier above and the terms described herein.  The final number of Units you may earn shall be determined following the completion of the Performance Period based on the Total Shareholder Return of a share of AvalonBay common stock over the Performance Period, expressed as an annualized rate of return (i.e., the rate of return which, when compounded annually over the Performance Period, equals the Total Shareholder Return for the period) (“AVB Annualized Performance”).

 

You have been awarded [B-#] of Target Units that employ TSR-based Performance Metrics.  The Performance Metrics that will determine the final number of Units you may earn are as follows:

 

1.  Absolute TSR Metric:  Twenty-five percent (25%) of the Target Number of TSR Units may be earned based on comparing the AVB Annualized Performance to absolute targets as follows:

 

	
AVB Annualized Performance
    	
 
    	
Percentage of 25.0% Earned
    	
 
    
	
less than 3.00%
    	
 
    	
0
    	
%
    
	
3.00%   (threshold*)
    	
 
    	
50
    	
%
    
	
8.00 % (target*)
    	
 
    	
100
    	
%
    
	
13.00%   (maximum*)
    	
 
    	
200
    	
%
    

 

*For results between threshold and target, or between target and maximum, the percentage of twenty-five percent of the Target Number of TSR Units earned shall be based on interpolation.

 

2

 

2.  Relative Metric against the FTSE NAREIT Apartment Index:  Fifty percent (50%) of the Target Number of TSR Units may be earned based on comparing the AVB Annualized Performance to the annualized total shareholder return of the FTSE NAREIT Equity Apartments Index (FNAPTTR, FN18) (the “Apt Index”) for the Performance Period as follows:

 

	
AVB Annualized Performance below (-) or
   above (+) the Apt Index Return
    	
 
    	
Percentage of 50.0% Earned
    	
 
    
	
more than -300   basis points below
    	
 
    	
0
    	
%
    
	
-300 basis   points(threshold*)
    	
 
    	
50
    	
%
    
	
0 basis points   (target*)
    	
 
    	
100
    	
%
    
	
+300 basis   points (maximum*)
    	
 
    	
200
    	
%
    

 

*For results between threshold and target, or between target and maximum, the percentage of fifty percent of the Target Number of TSR Units earned shall be based on interpolation.

 

3.  Relative Metric against the FTSE NAREIT Equity REITs Index:  Twenty-five percent (25%) of the Target Number of TSR Units may be earned based on comparing the AVB Annualized Performance to the annualized total shareholder return of the FTSE NAREIT Equity REITs Index (FNRETR)(1) (the “REIT Equity Index”) for the Performance Period as follows:

 

	
AVB Annualized Performance below (-) or
   above (+) the REIT Equity Index Return
    	
 
    	
Percentage of 25.0% Earned
    	
 
    
	
more than -500   basis points below
    	
 
    	
0
    	
%
    
	
-500 basis   points (threshold*)
    	
 
    	
50
    	
%
    
	
0 basis points   (target*)
    	
 
    	
100
    	
%
    
	
+500 basis   points (maximum*)
    	
 
    	
200
    	
%
    

 

*For results between threshold and target, or between target and maximum, the percentage of twenty-five percent of the Target Number of Units earned shall be based on interpolation.

 

It is noted that each performance metric is independent of the others.  For example, if the threshold is not achieved for the Absolute TSR metric, but target performance is achieved for the Apt Index TSR metric and the REIT Equity Index TSR metric, the number of units earned would equal (50% x 100% x Target Number of Units) + (25% x 100% x Target Number of Units). Earned Units shall be rounded to the nearest whole value.

 

Settlement in Unrestricted AvalonBay Common Stock and Payment of Cash Equal to Accrued Dividends Thereon:  Following the end of the Performance Period and the effectiveness of the Compensation Committee’s final determination of (i) the Company’s Total Shareholder Return for the Performance Period and how it compared to the TSR Performance Metrics and goals set forth in this award, and (ii) the number of Units earned by you on account thereof, the earned portion of this Award (i.e., the earned Units) shall be settled with the issuance to you of unrestricted shares of AvalonBay Common Stock effective March 1 of the year following the end of the Performance Period or, if not a business day, the next business day.  I.e., for a Performance Period ending December 31, 2020, your shares of unrestricted stock will be issued Monday, March 1, 2021.  On or about the time of the issuance of such shares of unrestricted stock to you (but in no event later than March 15 of such year), the Company will pay to you, as additional compensation and subject to tax withholding, cash equal in amount to the dividends that would have been payable on such number of shares during the Performance Period based on New York Stock Exchange ex-dividend dates (and not dividend payment dates) that

 

(1)  Note:  The FTSE NAREIT Equity REITs index (FNRETR) is described by FTSE as spanning the commercial real estate space across the U.S. economy and contains all equity REITs not designated as timber REITs or infrastructure REITs.

 

3

 

occurred during the Performance Period, without any supplement thereto in the nature of interest or compounding thereon.

 

Forfeiture of Units; Sale Event:  As provided in the Award Terms, no Units may be earned if your employment terminates for any reason prior to the completion of the first year of the Performance Period.  Thereafter, you may vest in a portion of the award, to be earned and settled in unrestricted shares of AvalonBay common stock and a cash payment equal in amount to the accrued dividends thereon as described above, if your employment terminates due to death, Disability, Retirement, or termination without cause at a time when you meet the age and service requirements for Retirement eligibility.  The Award terms describe special rules that apply in the event of a Sale Event.

 

[End of Text]

 

4

 

[ Exhibit B — Operating Metrics Unit Award 2018-2020]

 

Personal Performance Award Agreement Exhibit

For

Operating Metrics

(2018 Award – Maturing December 31, 2020)

 

Name:  [Name-#]

Date of Grant:  ·

Dollar Value for Operating Metrics Units:  [C-#]

Valuation per Unit (Based on Stock Price):  ·

Number of Operating Metrics Target Units: [D-#]

Performance Period: January 1, 2018 – December 31, 2020

Threshold/Target/Max Multiplier:  50%/100%/200%

 

As an officer or associate of AvalonBay Communities, Inc. (“AvalonBay” or the “Company”), you have been awarded Performance-Based Restricted Stock Units (“Units”) that employ operating performance metrics as outlined below.  The award described herein is subject to the “Award Terms of Performance-Based Restricted Stock Units” as most recently approved by the Board of Directors and its Compensation Committee on or before the Date of Grant, a copy of which has been distributed to you with this Award Agreement (the “Award Terms”).  Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Award Terms.

 

This Personal Performance Award Agreement Exhibit contains specific information about the awards being made this year that employ operating performance metrics for the indicated Performance Period as well as information about your specific award.

 

Operating Performance Metrics:

 

Your award consists initially of the number of Target Units indicated above but you could earn less or more than that number based on the threshold/target/max multiplier above and the terms described herein.  The final number of Units you may earn shall be determined following the completion of the Performance Period based on (AvalonBay’s performance on two operating performance metrics measured over the Performance Period.

 

You have been awarded [D-#] of Target Units that employ operating performance metrics.   The Performance Metrics that will determine the final number of Units you may earn are as follows:

 

1.  Core Funds from Operations (“Core FFO”) per share growth, measured over the Performance Period and expressed as a compound annual growth rate, as compared against the peer group.   A percentage of 66.7% of the Target Number of Operating Metric Units may be earned based on comparing AvalonBay’s Core FFO(2) growth as compared to the peer group(3):

 

(2)  The determination of Core FFO and Core FFO per share growth rates for AvalonBay and the Peer Group shall be approved  by the Compensation Committee taking into account published Core FFO/share amounts and adjustments deemed appropriate to derive comparable results between the Core FFO and Core FFO per share growth of the Company and its peers, which may include adjustments deemed appropriate in the event of special dividends and distributions to shareholders as a result, for example, of portfolio sales.  Core FFO is calculated (before such adjustments, if any) as presented in the Company’s earnings releases.

(3)  The peer group consists of the following companies, identified by their stock symbols (the “Peer Group”), and may be adjusted as the Compensation Committee of the Board of Directors reasonably deems necessary to take into account unanticipated events, such as merger or acquisition or going private activity by a constituent member:  AIV, CPT, EQR, ESS, MAA, and UDR.

 

5

 

	
AVB Performance Period Core FFO/share
   growth below (-) or above (+) the Peer Group
   OFF/share growth
    	
 
    	
Percentage of 66.7% Earned
    	
 
    
	
more than -300   basis points below
    	
 
    	
0
    	
%
    
	
-300 basis   points (threshold*)
    	
 
    	
50
    	
%
    
	
0 basis points   (target*)
    	
 
    	
100
    	
%
    
	
+300 basis   points (maximum*)
    	
 
    	
200
    	
%
    

 

*For results between threshold and target, or between target and maximum, the percentage of 66.7% of the Target Number of Operating Metric Units earned shall be based on interpolation.

 

2.  Net Debt (i.e., outstanding indebtedness less cash on the balance sheet) divided by Core Earnings before Interest, Depreciation and Amortization (EBITDA), measured at the end of each quarter during the Performance Period and averaged, as compared against the simple average of the same calculation done for the Peer Group companies over the performance period.   A percentage of 33.3% of the Target Number of Operating Metric Units may be earned based on comparing AvalonBay’s Net Debt/EBITDA(4) during the performance period as compared to the Peer Group:

 

	
AVB Performance Period Net Debt/Core EBITDA
   more than or less than the Peer Group average
    	
 
    	
Percentage of 33.3% Earned
    	
 
    
	
(AVB Net   Debt/Core EBITDA calculation minus Peer Group calculation) is more than 1.5
    	
 
    	
0
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
(AVB Net   Debt/Core EBITDA calculation minus Peer Group calculation) equals 1.5   (threshold*)
    	
 
    	
50
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
(AVB Net   Debt/Core EBITDA calculation minus Peer Group calculation) equals 0 (target*)
    	
 
    	
100
    	
%
    
	
 
    	
 
    	
 
    	
 
    
	
(AVB Net   Debt/Core EBITDA calculation minus Peer Group calculation) is -1.5 (negative   1.5) or less (i.e., a larger negative number) (maximum*)
    	
 
    	
200
    	
%
    

 

*For results between threshold and target, or between target and maximum, the percentage of 33.3% of the Target Number of Operating Metric Units earned shall be based on interpolation.

 

It is noted that each performance metric is independent of the others.  For example, if the threshold is not achieved for the Core FFO metric but target performance is achieved for the Net Debt/Core EBITDA metric, the number of units earned would equal (33.3% x 100% x Target Number of Operating Metric Units). Earned Units shall be rounded to the nearest whole value.

 

Settlement in Unrestricted AvalonBay Common Stock and Payment of Cash Equal to Accrued Dividends Thereon:  Following the end of the Performance Period and the effectiveness of the Compensation 

 

(4)  The determination of Net Debt/Core EBITDA for AvalonBay and the Peer Group shall be approved by the Compensation Committee taking into account published debt and Core EBITDA amounts and adjustments deemed appropriate to derive comparable results between the Net Debt/Core EBITDA of the Company and its peers.  Net Debt/Core EBITDA is calculated (before such adjustments, if any) as presented in the Company’s earning releases.

 

6

 

Committee’s final determination of (i) the Company’s performance for the Performance Period and how it compared to the Operating Performance Metrics and goals set forth in this award, and (ii) the number of Units earned by you on account thereof, the earned portion of this Award (i.e., the earned Units) shall be settled with the issuance to you of unrestricted shares of AvalonBay Common Stock effective March 1 of the year following the end of the Performance Period or, if not a business day, the next business day.  I.e., for a Performance Period ending December 31, 2020, your shares of unrestricted stock will be issued Monday, March 1, 2021.  On or about the time of the issuance of such shares of unrestricted stock to you (but in no event later than March 15 of such year), the Company will pay to you, as additional compensation and subject to tax withholding, cash equal in amount to the dividends that would have been payable on such number of shares during the Performance Period based on New York Stock Exchange ex-dividend dates (and not dividend payment dates) that occurred during the Performance Period, without any supplement thereto in the nature of interest or compounding thereon.

 

Forfeiture of Units; Sale Event:  As provided in the Award Terms, no Units may be earned if your employment terminates for any reason prior to the completion of the first year of the Performance Period.  Thereafter, you may vest in a portion of the award, to be earned and settled in unrestricted shares of AvalonBay common stock and a cash payment equal in amount to the accrued dividends thereon as described above, if your employment terminates due to death, Disability, Retirement, or termination without cause at a time when you meet the age and service requirements for Retirement eligibility.  The Award terms describe special rules that apply in the event of a Sale Event.

 

[End of Text]

 

7

 

 

[ Exhibit C – Award Terms Distributed with 2018-2020 Performance Award]

 

AWARD TERMS OF

PERFORMANCE-BASED RESTRICTED STOCK UNITS

 

GRANTED UNDER THE

AVALONBAY COMMUNITIES, INC.

SECOND AMENDED AND RESTATED 2009 EQUITY  INCENTIVE PLAN

 

(As most recently approved by the Board of Directors and its Compensation Committee on or before the Date of Grant)

 

	
Introduction
    	
 
    	
You have been granted performance-based restricted   stock units under the AvalonBay Communities, Inc. Second Amended and   Restated 2009 Equity Incentive Plan (as the same has or may be amended, the   “Plan”), subject to the following Award Terms. This grant is also subject to   the terms of (i) your Personal Performance Award Agreement   Exhibit(s) (“Personal Exhibit”), as further explained herein, and   (ii) the Plan, which is hereby incorporated by reference. To the extent   that an Award Term conflicts with the Plan, the Plan shall govern.
    
	
 
    	
 
    	
 
    
	
Type of Award
    	
 
    	
You are being awarded performance-based restricted   stock units (the “Units”). Units are bookkeeping entries only, and you shall   have no rights as a stockholder of the Company, and no dividend and voting   rights, with respect to the Units, nor shall a notional amount be reinvested   in respect of “phantom dividends” for the purpose of crediting your account   with additional Units.
    
	
 
    	
 
    	
 
    
	
Certain Principal Terms
    	
 
    	
Your Personal Exhibit sets forth certain   principal terms about the Units awarded for the applicable Performance   Period, such as the performance metrics which will apply to determine the   final number of Units earned. The terms included in your Personal   Exhibit include the following:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·                  Date   of Grant
    
	
 
    	
 
    	
·                  Number   of Target Units Awarded
    
	
 
    	
 
    	
·                  Performance   Period
    
	
 
    	
 
    	
·                  Total   Shareholder Return and/or Operating Performance Metrics
    
	
 
    	
 
    	
 
    
	
No Transfers
    	
 
    	
You may not sell, gift, or otherwise transfer or   dispose of any of the Units.
    
	
 
    	
 
    	
 
    
	
Performance Metrics
    	
 
    	
If you remain an active employee of AvalonBay from   the Date of Grant through the last day of the Performance Period, then the   number of Units you will earn at the end of the Performance Period will be   based upon the performance of (i) the Company’s Total Shareholder   Return, and/or (ii) the Company’s performance as measured against certain   metrics of operating performance, in each case over the Performance Period   and as described in your Personal Exhibit.
    

 

8

 

	
 
    	
 
    	
The Company’s Total Shareholder Return represents the   change in the value of an investment in one share of AvalonBay common stock   over the Performance Period, expressed as a percentage, assuming the   following:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Beginning Stock Price:   average closing price of a share of AvalonBay common stock over the 20   trading days immediately prior to the first day of the Performance Period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Ending Stock Price:   average closing price of a share of AvalonBay common stock over the last 20   trading days of the Performance Period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dividends reinvested in   additional shares of AvalonBay common stock on the ex dividend date for such   dividend at the closing price of a share of AvalonBay common stock.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If the Company’s Total Shareholder Return is   measured on a relative basis against an index, the Total Shareholder Return   of the index will be measured by using a 20 trading day average of the   beginning and ending price or level of the index.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Compensation Committee of the Board of Directors   (the “Compensation Committee”), as promptly as practicable (but in no event   later than 60 days) following the conclusion of the Performance Period, shall   determine (i) the performance of the Company’s Total Shareholder Return   over the Performance Period as compared against the Performance Metrics   established for the period and/or the achievement of other operating metrics   by the Company, and (ii)  the actual number of Units that are earned by   you, which shall be a percentage (from zero to 200%) of the Target Units you   are awarded at the beginning of the Performance Period. You shall forfeit any   portion of this Award that is not earned upon the conclusion of the   Performance Period (i.e., any Target Units you are awarded that are in excess   of the number of Units earned at the end of the Performance Period, as determined   by the Compensation Committee, shall be forfeited).
    
	
 
    	
 
    	
 
    
	
Forfeiture for Termination of Employment During   First Year of Measurement Period; Vesting Provisions After First Year
    	
 
    	
In the event your employment terminates for any   reason before the completion of the first year of a Performance Period (i.e.,   for a Performance Period beginning on January 1, 20xx, if your last day   of employment is before December 31, 20xx), whether with or without   cause, or by reason of death or disability or your voluntary departure or   retirement, you shall forfeit all Units and none of the Units shall be   earned.
    

 

9

 

	
 
    	
 
    	
In the event your employment terminates on or after   the completion of the first year of employment (i.e, on or after   December 31, 20xx for a Performance Period beginning on January 1,   20xx), then the following shall apply:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(A)       In the event your   employment terminates on account of any of the following (each, a “Qualifying   Termination”):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·                  death,
    
	
 
    	
 
    	
·                  Disability (as defined in the   Company’s standard form of Restricted Stock Agreement as in effect on   March 1 of the first year of the Performance Period (the “Restricted   Stock Agreement Form” or, if not defined therein, as defined in the Plan),
    
	
 
    	
 
    	
·                  Retirement (as defined in the   Restricted Stock Agreement Form or, if not defined therein, as defined   in the Plan), or
    
	
 
    	
 
    	
·                  termination without cause at a time   when the age and service requirements for Retirement are met,(5)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
then you shall vest in   a percentage of the Performance Award (carried out to the nearest hundredth   percentage point), such percentage (the “Percentage”) equaling the number of   days of employment served during the Performance Period divided by the total   number of days in the Performance Period. Thereafter, when the Performance   Period ends, you shall earn the Percentage of Units that otherwise would have   been earned by you had your employment continued through to the end of the   Performance Period, and all the shares issued to you at the completion of the   Performance Period on account of such pro rated number of earned Units shall   be fully vested (unrestricted). The Company may require, as a condition to   your retaining an interest in the Performance Award following a termination   of employment, that you sign and deliver, and do not revoke, a Separation   Agreement (as defined in the Restricted Stock Agreement Form or, if not   defined therein, as defined in the Plan) within 30 days of the termination of   your employment. For example, with respect to a Performance Award with 1000   target Units, if
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)                                     your   employment terminates in a Qualifying Termination after the completion of one   year of service during the Performance Period and you sign a Separation   Agreement as described above,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)                                  you   served for 45% of the Performance Period, and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(iii)                               it   is determined that 150% of target is achieved for that award,
    

 

(5)  Note:  In summary, and subject to the full definition of Retirement, the age and service requirements for Retirement are:  employment with the Company for at least 10 years, age is at least 50, and number of months of employment plus age equals at least 70 years.  Additional requirements to qualify for Retirement include at least six months notice given and signing of a non-compete and non-solicitation agreement.

 

10

 

	
 
    	
 
    	
then after the   Performance Period is completed you would receive 675 fully vested and   unrestricted shares of Company common stock (1000 target Units x 150%   achievement x 45% vesting = 675),
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
To meet the age and   service requirements of Retirement eligibility you must meet the minimum age   and the required months of service required for Retirement, and your age plus   number of months of service must sum to at least the required number of years   required for Retirement.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(B)       In the event your   employment terminates on account of any reason other than those listed in   (A) immediately above (and thus including a termination with cause, a   termination without cause at a time when you do not meet the age and service   requirements for Retirement, or a resignation by you that is not by reason of   Retirement), then you shall forfeit all Units and none of the Units shall be   earned.
    
	
 
    	
 
    	
 
    
	
Leaves of Absence
    	
 
    	
In the event that you take a leave of absence during   the Performance Period, then, unless prohibited by law, the Company may   adjust, in its sole discretion and up to a full forfeiture, the percentage of   Units that are earned hereunder to equitably reflect (in the sole discretion   of the Company) such absence. Without limiting the foregoing, it is noted   that such adjustment may be made, in the sole discretion of the Company, by   prorating the number of Units that would otherwise be earned without a leave   of absence by:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i)                                     the   portion of the year worked without a leave of absence during the last year of   the Performance Period (e.g., if nine months are worked during the last year   of the Performance Period, there may be a 25% downward adjustment in the   percentage of Units that are earned (3 months absence divided by 12 months in   the last year of the performance period), or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii)                                  the   portion of the Performance Period worked without a leave of absence (e.g., if   three months are missed due to a leave of absence during a 36 month   Performance Period there may be an 8.33% downward adjustment in the   percentage of Units that are earned (3 months absence divided by 36 months in   the Performance Period)).
    
	
 
    	
 
    	
 
    
	
Sale Event
    	
 
    	
If a Sale Event occurs during the Performance   Period, then all outstanding Performance Awards shall vest at their target   value (i.e., target number of units) and one unrestricted share of AvalonBay   Common Stock shall be issued to you as of the date of the Sale Event for each   Unit so earned, and the Company shall promptly pay to you, subject to tax   withholding, an amount of cash equal to the dividends that would have been   payble on such number of shares during the Performance Period up until the   date of the Sale Event based on New York Stock Exchange ex-dividend dates   (and not dividend payment dates) that occurred during the Performance Period,   without any
    

 

11

 

	
 
    	
 
    	
supplement thereto in the nature of interest or   compounding thereon.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(It is noted that in the event that you acquired a   vested interest in a Performance Award on account of a Qualifying   Termination, and thereafter a Sale Event is completed, then only the   percentage of the award that vested upon the Qualifying Termination shall   convert at target into shares of unrestricted stock, and the cash payment   related to dividend accrual shall be based on such number).
    
	
 
    	
 
    	
 
    
	
Notices
    	
 
    	
Any notice to be given under the terms of this Award   Agreement to the Company shall be addressed to the Company in care of its   Secretary, and any notice to be given to you shall be addressed to you at   your address as set forth in the Company’s records. Either party may   hereafter designate a different address for notices to be given to it or him   or her.
    
	
 
    	
 
    	
 
    
	
Titles
    	
 
    	
Titles and captions are provided herein for   convenience only and are not to serve as a basis for interpretation or   construction of this Award Agreement. Capitalized terms used but not defined   herein shall have the respective meanings ascribed thereto in the Plan or as   the context otherwise reasonably indicates.
    
	
 
    	
 
    	
 
    
	
Amendment
    	
 
    	
This Award Agreement may be amended only by a   writing executed by the parties hereto which specifically states that it is   amending this Award Agreement.
    
	
 
    	
 
    	
 
    
	
Governing Law
    	
 
    	
The laws of the State of Maryland shall govern the   interpretation, validity, administration, enforcement and performance of the   terms of this Award Agreement regardless of the law that might be applied   under principles of conflicts of laws.
    
	
 
    	
 
    	
 
    
	
Data Privacy Consent
    	
 
    	
In order to administer the Plan and this Award   Agreement and to implement or structure future equity grants, the Company,   its subsidiaries and affiliates and certain agents thereof (together, the   “Relevant Companies”) may process any and all personal or professional data,   including but not limited to Social Security or other identification number,   home address and telephone number, date of birth and other information that   is necessary or desirable for the administration of the Plan and/or this   Award Agreement (the “Relevant Information”). By entering into this Award   Agreement, you (i) authorize the Company to collect, process, register   and transfer to the Relevant Companies all Relevant Information;   (ii) waive any privacy rights you may have with respect to the Relevant   Information; (iii) authorize the Relevant Companies to store and   transmit such information in electronic form; and (iv) authorize the   transfer of the Relevant Information to any jurisdiction in which the   Relevant Companies consider appropriate. You shall have access to, and the   right to change, the Relevant Information. Relevant Information will only be   used in accordance with applicable law.
    
	
 
    	
 
    	
 
    
	
Electronic Delivery
    	
 
    	
The Company may, in its sole discretion, decide to   deliver any documents related to
    

 

12

 

	
 
    	
 
    	
current or future participation in the Plan by   electronic means.  You hereby consent   to receive such documents by electronic delivery and agree to participate in   the Plan through an on-line or electronic system established and maintained   by the Company or a third party designated by the Company.  By electronically accepting the Award   Agreement and participating in the Plan, you agree to be bound by the terms   and conditions in the Plan and this Award Agreement.
    
	
 
    	
 
    	
 
    
	
Non-Solicitation
    	
 
    	
By accepting an award of Units, you agree that, for   a period of at least 12 months following your termination of employment with   the Company for any reason, you will not, without the prior written consent   of the Company, solicit or attempt to solicit for employment with or on   behalf of any other person, firm or entity any employee of the Company or any   of its affiliates or any other person who was formerly employed by the   Company or any of its affiliates within the preceding six months, unless such   person’s employment was terminated by the Company or such affiliates.
    
	
 
    	
 
    	
 
    
	
Recoupment Policy
    	
 
    	
The Company’s Board of Directors has adopted a Policy   for Recoupment of Incentive Compensation (the “Recoupment Policy”), which may   be amended from time to time and is available on the Company’s website at   www.AvalonBay.com/investors under “Corporate Governance Documents”. By   accepting an award of Units, you agree that you have had an opportunity to   review the Recoupment Policy and further agree to be bound by the terms of   the Recoupment Policy, including without limitation all provisions relating   to the recoupment of Incentive Compensation as defined in the Recoupment   Policy.
    
	
 
    	
 
    	
 
    
	
Tax Withholding
    	
 
    	
The Company’s obligation (i) to issue or   deliver to you any certificate or certificates for unrestricted shares of   AvalonBay Common Stock (“Stock”) in settlement of earned Units or   (ii) to pay to you any dividends or make any distributions with respect   to the shares of Stock issued in settlement of earned Units, is in each case   expressly conditioned on the Company’s satisfaction of its obligation, if   any, to withhold taxes. You shall, not later than the date as of which the   receipt of shares of Stock in settlement of earned Units becomes a taxable   event for Federal income tax purposes, pay to the Company or make   arrangements satisfactory to the Administrator for payment of any Federal,   state, and local taxes required by law to be withheld on account of such   taxable event. The Company shall satisfy any required minimum tax withholding   obligation (or such greater tax withholding as the Administrator may approve)   by withholding, from shares of Stock to be issued or released by the transfer   agent in connection with the settlement of Units, a number of shares of Stock   with an aggregate Fair Market Value that would satisfy the withholding amount   due (with the resulting number being rounded up to the nearest whole share of   Stock). In addition, by acceptance of this Award, you agrees that for all   outstanding Awards not yet vested under the Plan, the Company shall satisfy   any required minimum tax withholding obligation (or such greater tax   withholding as the Administrator may approve) by withholding from shares of   Stock to be issued under such awards a number of shares of Stock with an   aggregate Fair Market Value that would satisfy the minimum tax withholding   amount due (with the resulting number being rounded up to the nearest whole   share of Stock).
    

 

13

 

	
Counterparts
    	
 
    	
This Award Agreement may be executed in one or more   counterparts, each of which shall be deemed an original, but all of which   together shall constitute one and the same instrument.
    

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]