Document:

exv10w2

 

Exhibit 10.2

Equity Office Properties Trust

[1997 Share Option and Share Award Plan]

[2003 Share Option and Share Incentive Plan]

Participant Summary and

Restricted Share Agreement for Trustees

	 	 	 
	INTRODUCTION

	 	Equity Office Properties Trust (“Equity Office”) has established the Equity
Office Properties Trust
[1997 Share Option and Share Award Plan][2003 Share Option and Share Incentive Plan], as amended (the “Plan”).
Under the Plan, certain employees, officers, trustees and consultants may receive various
rights related to common shares of beneficial interest (“Shares”) of Equity Office.
	 
	 	 
	

	 	This Summary and Agreement is intended as a guide to the terms and
conditions of the grant of an award of restricted Shares pursuant to
the Plan. In addition, this Summary and Agreement is intended to
serve as an agreement between you (the “Grantee”) and Equity Office,
governing the terms and conditions of the grant of restricted Shares
(the “Share Award”) to you on ___.
	 
	 	 
	

	 	This Summary and Agreement is subject to and governed by all the
terms and conditions of the Plan, which are hereby incorporated by
reference. In the event of any discrepancy between the terms and
conditions of this Summary and Agreement and those of the Plan, the
terms and conditions of the Plan (including amendments to the Plan)
will control. Any other rights that may be granted to you under the
Plan or rights that may be granted to other individuals will be
described in separate documents for those individuals who are
eligible to receive them.
	 
	 	 
	

	 	This Summary and Agreement includes a Glossary that defines certain
words and phrases used in this Summary.

The effective date of the agreement reflected

in this document with respect to the Share Award is ___.

     This Document Constitutes Part of a Prospectus Covering Securities that have been
Registered under the Securities Act of 1933

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The date of this Prospectus is ___________

	 	 	 
	PLAN ADMINISTRATION

	 	The Plan is administered by the Compensation Committee
(the “Committee”) of Equity Office’s Board of Trustees
(the “Board”), which consists of at least two
non-employee members of the Board. The Board selects
the Committee members and may remove Committee members
at any time.
	 
	 	 
	 

	 	The Committee designates those individuals eligible to receive Share
Awards under the Plan and determines the terms, conditions and
restrictions governing the Share Awards.
	 
	 	 
	

	 	The Committee has the power, in connection with the administration of
the Plan, to interpret the terms, conditions and restrictions of the
Plan and this Summary and Agreement and to take any actions it deems
necessary to carry out the terms and purpose of the Plan. Any
interpretation or action by the Committee with respect to the Plan is
final and binding on each participant and his or her heirs and
transferees. Members of the Committee can be reached at the address
shown below.
	 
	 	 
	 
	 
	 	 
	ADDITIONAL INFORMATION

	 	If you have any questions about the
Plan or if you would like to receive
a copy of the Plan, any additional
information relating to the Plan or
documents that have been filed by
Equity Office with the Securities
and Exchange Commission (including
Equity Office’s latest annual
report, the description of the
Shares being registered and any
other reports filed by Equity Office
pursuant to the Securities Exchange
Act of 1934, all of which are
incorporated by reference herein),
which are available without charge,
upon written or oral request, you
should contact Ms. Robin Mariella in
the legal department at:

Equity Office Properties Trust

Two North Riverside Plaza

Suite 1600

Chicago, IL 60606

(312) 466-3646

robin_mariella@equityoffice.com

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	RESTRICTED

SHARE AWARDS

	 	Q
	 	What is a restricted Share Award?
	 
	 	 	 	 
	

	 	A
	 	You were granted ___Common Shares as
a restricted Share Award. A restricted Share
Award is an issuance of Shares that you will
forfeit (see page 5 of this Summary and
Agreement) if you do not satisfy the vesting
conditions established by the Committee (see page
5 of this Summary and Agreement). As of the
“Grant Date” (as defined in the Glossary), you
will have the right to vote the Shares and to
receive an amount equal to dividends as and if
declared. Your other rights as an Equity Office
shareholder with respect to the awarded Shares
will be restricted.
	 
	 	 	 	 
	

	 	 	 	The Committee determines the terms, conditions
and restrictions that apply to each Share Award
granted under the Plan. In no event, however,
may the terms, conditions and restrictions be
inconsistent with those of the Plan. Further,
the grant of a Share Award does not confer upon
you the right to be retained in the “Service” of
Equity Office. For purposes of the Plan, your
Service ends when you no longer perform services
as an employee, officer or trustee of Equity
Office or any [“Extended Company”]
[“Subsidiary”] (as defined in
the Plan).
	 
	 	 	 	 
	

	 	Q
	 	Will share certificates be issued in my name
at the time of grant?
	 
	 	 	 	 
	

	 	A
	 	No. At the time of grant, Equity Office
will reflect your ownership by book entry. Share
certificates will be issued upon your request
after you become vested in the Shares. Trustees
who elect to defer their Shares into the Equity
Office Supplemental Retirement Savings Plan
(“SERP”) by exchanging them for Phantom Share
Units under the SERP also may be issued share
certificates when Shares are distributed from the
SERP in exchange for such Phantom Share Units.
	 
	 	 	 	 
	

	 	Q
	 	Can I defer my Shares into the SERP?
	 
	 	 	 	 
	

	 	A
	 	Yes, you will have until December 31 of the
year prior to the year in which the Share Award
is made to make an election to defer receipt of
the Shares into the SERP by exchanging them for
Phantom Share Units under the SERP at the time
the Shares vest (See page 4 of this Summary and
Agreement). Notwithstanding the preceding
sentence, you will have until

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	 	 	 	March 15, 2005 to
elect to defer receipt of the Shares that are
expected to be awarded on June 1, 2005 by
exchanging them for Phantom Share Units under the
SERP at the time the Shares vest.
	 
	 	 	 	 
	

	 	Q
	 	Can I transfer my Share Award?
	 
	 	 	 	 
	

	 	A
	 	You may not sell, assign or otherwise transfer any non-vested
Shares. Any attempt to do so will be void and without effect.
However, when you become vested in the awarded Shares, you will
have the right to transfer the Shares subject to the terms and
conditions of the Equity Office’s insider trading policy. If you
elect to defer Shares into the SERP, transferability of the Phantom
Share Units credited to your account under the SERP will be
controlled by the SERP plan document.
	 
	 	 	 	 
	

	 	Q
	 	Are there times when I cannot transfer my vested Shares?
	 
	 	 	 	 
	

	 	A
	 	Yes. There may be times when Equity Office’s Chief Legal
Counsel imposes a “blackout period” because of the existence or
potential existence of significant non-public information, such as
a large acquisition or earnings that differ from stock market
expectations, or if Equity Office conducts an additional offering
to sell more Shares. During these times, you may have to
temporarily wait to sell your vested Shares, whether or not such
information is communicated to you.
In addition, while a Trustee, you are restricted to trading within
the window periods established under Equity Office’s insider
trading policy (as determined by the Chief Legal Counsel), you
cannot sell any vested Shares (or any other holdings of Equity
Office shares) outside of the window periods following the release
of quarterly financial information, or otherwise in violation of
any trading policy established by Equity Office’s Chief Legal
Counsel and applicable to you.
You are also considered an “affiliate” of Equity Office under the
federal securities laws; as such your sales of Shares must comply
with Rule 144.
	 
	 	 	 	 
	 
	 
	 	 	 	 
	VESTING

	 	Q
	 	When will I become vested in the awarded Shares?
	 
	 	 	 	 
	

	 	A
	 	___% or ___restricted shares vest on ___
	

	 	 	 	___% or ___restricted shares vest on ___

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	 	 	 	___% or ___restricted shares vest on ___

___% or ___restricted shares vest on ___
.
	 
	 	 	 	 
	

	 	Q
	 	What if there are any fractional Shares at the time of vesting?
	 
	 	 	 	 
	

	 	A
	 	Any fractional shares will be rounded down to the next whole
Share. The fractional shares shall remain unvested until, when
combined with other fractional shares that would otherwise be
vested, they equal a whole share.
	 
	 	 	 	 
	

	 	Q
	 	Are there any other circumstances under which I will vest in
the awarded Shares?
	 
	 	 	 	 
	

	 	A
	 	Yes. You will become fully vested in the Shares if your
Service with Equity Office terminates:

	 	•  	because of your death or “Disability” (as defined in the
Glossary);
	 
	 	•  	in connection with your retirement from the Board;
	 
	 	•  	in connection with your failure to be re-elected to the
Board;
	 
	 	•  	following a “Change in Control” (as defined in the
Glossary) of Equity Office; or
	 
	 	•  	under circumstances that the “Plan Administrator” (as
defined in the Glossary) deems to warrant full vesting.

	 	 	 	 	 	 	 
	FORFEITURE	 	Q	 	What happens if I leave Equity Office before I vest in the
awarded Shares?
	 
	 	 	 	 	 	 
	 	 	A	 	Unless your Service terminates because of death, Disability or
retirement or following a Change in Control of Equity Office or
under circumstances the Plan Administrator deems to warrant vesting
some or all of your non-vested Shares, you will forfeit to Equity
Office any non-vested Shares upon your termination of Service with
Equity Office.

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	TAX CONSEQUENCES	 	Q	 	When do I pay tax on the restricted Share Award?
	 
	 	 	 	 	 	 
	 	 	A	 	Normally you do not recognize compensation
(ordinary) income at the time you receive a
restricted Share Award grant. However, as your
Shares vest, you will recognize ordinary income in
an amount equal to the “Fair Market Value” (as
defined in the Glossary) of the vested Shares and
you will be subject to income taxes based on that
amount.
	 
	 	 	 	 	 	 
	 	 	 	 	Alternatively, you may choose one of the following
options which means that the amount of tax you pay
and the time at which you pay it will differ as
explained below:
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Option 1
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Section 83(b) Election. Under Internal Revenue
Service (“IRS”) rules, you may elect to recognize as
ordinary income and pay tax on the Fair Market Value
of your Shares as of the Grant Date, rather than as
of the dates(s) your Shares vest. To elect this
method of recognizing income for purposes of tax
treatment, you must complete and file a §83(b)
Election (“83(b) Election”) form with the IRS within
thirty (30) days of the restricted Share Grant Date
and provide a copy to Equity Office’s human
resources department. You will also need to attach
a copy of your 83(b) Election form to your tax
return when you file for the calendar year. You
should note that an 83(b) Election is irrevocable
upon submission.
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Please be advised: If, under the terms of the
Restricted Share Agreement, you fail to vest in your
restricted shares, you will not be eligible to claim
any deduction or credit for the taxes paid pursuant
to your irrevocable 83(b) Election regarding those
shares.
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	Option 2
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	SERP Deferment. If you elect to defer receipt of
your Shares by exchanging them for Phantom Share
Units, you will recognize ordinary income (and be
subject to income taxes) in an amount equal to the
Fair Market Value of the Shares when the Shares (or
their proceeds) are distributed to you.

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	 	 	Q	 	What is the tax treatment for dividends
received under a restricted Share Award?
	 
	 	 	 	 	 	 
	 	 	A	 	Any dividends received on non-vested Shares
will be treated as dividend income. At year end, you
will receive a Form 1099-DIV from Equiserve, our
transfer agent.
	 
	 	 	 	 	 	 
	 	 	Q	 	Is any income I recognize with respect to the
awarded Shares subject to any withholding taxes and
how will I pay my taxes?
	 
	 	 	 	 	 	 
	 	 	A	 	There is no withholding on the income you
recognize with respect to the Awarded Shares. At
year end you will receive a form 1099-MISC from
Equity Office for this amount. You should consult
with your tax advisor to determine this income may
require that you file a quarterly tax payment.
	 
	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 
	ELIGIBILITY	 	Q	 	Who is eligible to participate in the Plan?
	 
	 	 	 	 	 	 
	 	 	A	 	Certain employees, officers, trustees and consultants of Equity Office and
its [Related Companies] [Subsidiaries] are eligible to receive a restricted Share Award. The
Committee designates the individuals who receive awards under the Plan.
	 
	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 
	SHARES SUBJECT TO

THE PLAN	 	 	 	The maximum aggregate number of Shares of Equity Office that may be granted for
all rights under the Plan shall not exceed
[6.8% of the outstanding Shares,
calculated on a fully diluted basis (but excluding Shares subject to options under
the Equity Office Properties Trust 2003 Share Option and Share Incentive Plan) and
determined annually on the first day of each calendar year. No more than one-half
of the maximum aggregate number of Shares shall be granted as Share Awards under
the Plan][20,000,000 shares. No more than 10,000,000 Shares may be available for issuance pursuant to Awards other than Awards of options.] To the extent that options granted under the Plan expire unexercised or
are terminated, surrendered or canceled, the Shares allocated to such options
shall again become available for future grants under the Plan, unless the Plan has
terminated.

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	 	 	 	 	In the event of any change in the outstanding Shares due to a Share dividend,
split, recapitalization, merger, consolidation, combination, exchange or similar
change, the number of Shares reserved for issuance under the Plan and Shares
subject to outstanding awards shall be proportionately adjusted by the Committee
such that the value of the Shares available for awards under the Plan remains
unchanged.
	 
	 	 	 	 	 	 
	 	 	 	 	The Committee may make this adjustment in any manner it deems equitable; however,
in no event shall:

	 	•  	the exercise price of an option be adjusted below par value of the Shares;
or
	 
	 	•  	any fractional Shares be issued upon the exercise of an option.

	 	 	 	 	 
	

	 	 
	 	If the adjustment results in fractional Shares, cash shall be issued upon the
exercise of an option in lieu of any fractional Shares.
	 
	 	 	 	 
	

	 	 	 	If you receive cash or another security in exchange for a non-vested Share in
connection with any of the foregoing, any conditions and restrictions applicable
to the Share will continue to apply to the cash or property received until the
Share would have vested.

8

 

	 	 	 	 	 
	 
	 
	 	 	 	 
	MORE INFORMATION

ABOUT SHARES

	 	 
	 	Equity Office Properties Trust Shares are traded on the New
York Stock Exchange under the symbol “EOP.” Like other
publicly traded shares, the price for Shares will vary due
to many factors, such as:

	 	•  	general economic and political conditions,
	 
	 	•  	tax and interest rates,
	 
	 	•  	actual and expected changes in our earnings as
compared to past results,
	 
	 	•  	comparisons with the earnings of other public
companies, and
	 
	 	•  	other factors over which Equity Office has no
control.

	 	 	 	 	 
	 
	 
	 	 	 	 
	SECTION 16

TRUSTEES & OFFICERS

OF

EQUITY OFFICE

	 	 
	 	Rules promulgated under Section 16 of the Securities
Exchange Act of 1934 apply to Plan transactions by executive
officers and trustees of Equity Office. You must consult
Equity Office’s Chief Legal Counsel or his designee, prior
to selling any Shares acquired under the Plan.
	 
	 	 	 	 
	 
	 
	 	 	 	 
	DURATION,

MODIFICATION &

TERMINATION OF

THE PLAN

	 	 	 	Equity Office intends to continue the Plan until it issues
all of the unissued Shares reserved for the Plan.
Notwithstanding the foregoing, Equity Office reserves the
right to amend or terminate the Plan at any time, subject to
the approval of Equity Office’s shareholders as may be
required by law. Any amendment or termination of the Plan
will not alter or impair any Share Award previously granted
to you without your consent.
	 
	 	 	 	 
	 
	 
	 	 	 	 
	APPLICABLE LAWS

	 	 	 	The Plan is not subject to the Employee Retirement Income
Security Act of 1974, as amended, and is not qualified under
Section 401(a) of the Internal Revenue Code of 1986, as
amended.

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	NOTICES	 	 	 	All notices under the agreement incorporated in this Summary
and Agreement shall be in writing and sent by certified mail
or by a nationally recognized overnight delivery service,
postage or charges prepaid. All notices to Equity Office
should be addressed to the attention of the Chief Legal
Counsel and sent to the address provided on page 2 of this
Agreement. All notices to you will be sent to your last
known address on the records of Equity Office.

	 
	 	 
		 	 	 	
Any such written notice or communication given by mail will
be deemed to have been given two (2) business days after the
date the notice or communication was mailed; or, if sent by
an overnight delivery service, it shall be deemed to have
been given one (1) business day after the date sent.
	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	SIGNATURE ON

AGREEMENT	 	 	 	Your electronic acceptance of this Agreement will serve as
your execution of this Agreement. To electronically accept
this Agreement you must log on to Fidelity Investments
website, open your restricted share account and click on
“agreement acceptance”. By electronically accepting this
agreement, Equity Office and you agree that the Share Award
shall be subject to the terms, conditions and restrictions
of this Agreement and the Plan.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	EQUITY OFFICE PROPERTIES TRUST
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	By:	 	 	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Its:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	GRANTEE
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

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GLOSSARY OF TERMS

A Change in Control shall be deemed to occur upon:

	[•  	the acquisition by any entity, person or group of more than fifty
percent (50%) of the outstanding Shares of Equity Office from the
holders thereof;

	•  	a merger or consolidation of Equity Office with one (1) or more
other entities, as a result of which the holders of all
outstanding Shares immediately prior to such merger hold less than
fifty percent (50%) of the shares of beneficial ownership of the
surviving or resulting corporation; or

	•  	a direct or indirect transfer of substantially all of the property
of Equity Office other than to an entity of which Equity Office
directly or indirectly owns at least fifty percent (50%) of the
shares of beneficial ownership.]

	[•  	the acquisition by any entity, person or group of more than thirty percent (30%) of the combined
voting power of the outstanding voting securities of Equity Office;
	 
	•  	approval by shareholders of Equity Office of a merger, consolidation or reorganization of Equity
Office with one (1) or more other entities, as a result of which the holders of all outstanding
voting securities of Equity Office immediately prior to such transaction hold less than seventy
percent (70%) of the combined voting power of the outstanding voting securities of the surviving or
resulting corporation in substantially the same relative proportion as their ownership of the
outstanding voting securities of Equity Office immediately before the transaction and the incumbent
members of the Board of Trustees of Equity Office immediately before the transaction do not
constitute at least a majority of the members of the board of the resulting corporation; or
	 
	•  	approval by shareholders of Equity Office of a complete liquidation or dissolution of Equity
Office; or
	 
	•  	the rejection by the voting beneficial owners of the outstanding Shares of the entire slate of
trustees proposed by the Board at a single election of trustees; or
	 
	•  	the rejection by the voting beneficial owners of the outstanding Shares of one-half or more of the
trustees proposed by the Board over any two or more consecutive elections of trustees; or
	 
	•  	approval by shareholders of Equity Office of an agreement for the sale of substantially all of
the assets of Equity Office other than to an entity of which Equity Office directly or indirectly
owns at least seventy percent (70%) of the voting share.]

Committee means the Compensation Committee of the Board of Trustees of Equity Office.

Disability means a physical or mental condition that entitles a participant to benefits under the
employer-sponsored long-term disability plan in which he or she participates, as determined by the
Plan Administrator in its sole and absolute discretion.

Equity Office means Equity Office Properties Trust, the sponsor of the Plan.

The Fair Market Value of a Share means different things for different purposes. Please refer to
the Plan document for the applicable definition.

Grant Date means the date you receive a Share Award and, for purposes of this Summary, is
___.

Phantom Share Unit means a bookkeeping entry representing an obligation of the Company to pay the
value of Shares that vested and that you elected to defer receipt of by participating in the SERP.

Plan means the
Equity Office Properties Trust
[1997 Share Option and Share Award Plan][2003 Share Option and Share Incentive Plan], as amended
from time to time.

Plan Administrator means the President and Chief Executive Officer of the Company and any one
member of the Committee, or the full Committee. Notwithstanding the foregoing, where the affected
Grantee is a “covered employee” for purposes of Section 162(m) of the Code:

	•  	any authority of the Plan Administrator under the Plan may be exercised only if the
exercise of such authority would not cause the related Share Award, to fail to constitute
performance-based compensation on its Grant Date under Treasury Regulation Section 1.162-27;
and

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	•  	“Plan Administrator” means the full Committee only if the exercise of such authority by the
President and Chief Executive Officer and any one member of the Committee would adversely
affect the grant’s status as performance-based compensation and its exercise by the full
Committee would not so affect such status.

Service means your performance of services as an employee, officer or trustee for Equity Office or
any [Related Company] [Subsidiary] .

Share Award means the grant of an award of Shares reflected herein.

Shares means common shares of beneficial ownership of Equity Office, having a par value of $.01.

Vested means the Shares are no longer subject to any substantial restrictions, other than those
arising under federal securities laws.

12exv10w3

 

Exhibit 10.3

EQUITY OFFICE PROPERTIES TRUST

NON-QUALIFIED SHARE OPTION AGREEMENT

FOR EMPLOYEES

     This
NON-QUALIFIED SHARE OPTION AGREEMENT (this
“Agreement”) is made as of _______________
(the “Grant Date”) between Equity Office Properties Trust, a Maryland real estate investment trust
(the “Company”), and ______________________ (the “Optionee”).

W I T N E S S E T H:

     WHEREAS, the Company desires, by affording the Optionee an opportunity to purchase authorized
common shares of beneficial interest of the Company, $.01 par value per share (the “Shares”), as
hereinafter provided, to carry out the purposes of the Equity Office
Properties Trust [1997 Share
Option and Share Award Plan][2003 Share Option and Share Incentive Plan], as amended (the “Plan”);

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
hereinafter contained, the parties hereto mutually covenant and agree as follows:

     1. Grant of Share Option. The Company hereby grants to the Optionee a non-qualified
share option (the “Share Option”) to purchase all or any
part of an aggregate ________________Shares,
such number being subject to adjustment as provided in Paragraph 5 hereof, on the terms and
conditions hereinafter set forth.

     2. Term of Share Option. The term of the Share Option shall be for a period of ten
(10) years, beginning on the Grant Date and ending on
_________________ (the “Expiration Date”),
except as follows:

     (a) Notwithstanding any other provision to the contrary, the Share Option shall expire
immediately and become null and void if (i) the Optionee violates any agreement covering
non-competition with the Company or any [Related Company] [Subsidiary] (as defined in the Plan), (ii) the
Optionee’s Service (as defined below) terminates for cause (as defined below), or (iii) the Chief
Legal Counsel determines that the Optionee committed acts or omissions that would have been the
basis for a termination of the Optionee’s Service for cause had such acts or omissions been
discovered prior to termination.

	 	(A)  	an Optionee’s “Service” shall continue until he or she is no
longer an employee, officer, trustee, director or consultant of the Company or
an entity that, at the time such Service terminates, is an [Extended Company] [Subsidiary] (as
such term is defined under the Plan); and
	 
	 	(B)  	“cause” shall consist of:

	 	(i)  	violations of the Company’s drug and alcohol
policy;

1

 

	 	(ii)  	illegal, dishonest or unethical conduct;
	 
	 	(iii)  	violations of the Company’s anti-harassment
policy;
	 
	 	(iv)  	threatening to commit or committing injury or
damage to customers, fellow employees, guests or company property; or
	 
	 	(v)  	any other instance where the Compensation
Committee of the Board of Trustees (the “Committee”) deems there is
sufficient cause.

	 	(b)  	Subject to paragraph 2 (a) hereof, if the Optionee’s Service terminates other
than: (i) for cause; (ii) because of the Optionee’s death, Disability (as defined under
the Plan) or retirement at or after his or her attainment of age 62; or (iii) following
a Change in Control of the Company (as defined below), the Share Option shall be
exercisable only with respect to the number of Shares that are vested and exercisable
(as determined under Paragraph 4 hereof) on the date such Service terminates and shall
expire three (3) months from the date of the termination of the Optionee’s Service.
From and after the effective date of the termination of such Service, the Optionee
shall be allowed to exercise the Share Option with respect to the Shares that are
vested and exercisable as of the effective date of the termination, but only if the
Optionee has satisfied any outstanding debts or liabilities to the Company and has
returned all Company property in his or her possession. For purposes of this Agreement
and the Plan, a “Change in Control” shall be deemed to occur upon:

	 	[(A)  	the acquisition of more than 50% of the outstanding Shares from
the holders thereof by any entity, person, or group; or
	 
	 	(B)  	a merger or consolidation of the Company with one or more
entities, as a result of which the holders of outstanding Shares immediately
prior to such merger hold less than 50% of the shares of beneficial ownership
of the surviving or resulting corporation; or

	 	(C)  	a direct or indirect transfer of substantially all of the property of the Company other than
to an entity of which the Company directly or indirectly owns at least 50% of the shares of
beneficial ownership.]

	 	[(A)  	the acquisition by any entity, person or group of more than thirty percent (30%) of the combined
voting power of the outstanding voting securities of Equity Office;
	 
	 	(B)  	approval by shareholders of Equity Office of a merger, consolidation or reorganization of Equity
Office with one (1) or more other entities, as a result of which the holders of all outstanding
voting securities of Equity Office immediately prior to such transaction hold less than seventy
percent (70%) of the combined voting power of the outstanding voting securities of the surviving or
resulting corporation in substantially the same relative proportion as their ownership of the
outstanding voting securities of Equity Office immediately before the transaction and the incumbent
members of the Board of Trustees of Equity Office immediately before the transaction do not
constitute at least a majority of the members of the board of the resulting corporation; or
	 
	 	(C)  	approval by shareholders of Equity Office of a complete liquidation or dissolution of Equity
Office; or
	 
	 	(D)  	the rejection by the voting beneficial owners of the outstanding Shares of the entire slate of
trustees proposed by the Board at a single election of trustees; or
	 
	 	(E)  	the rejection by the voting beneficial owners of the outstanding Shares of one-half or more of the
trustees proposed by the Board over any two or more consecutive elections of trustees; or
	 
	 	(F)  	approval by shareholders of Equity Office of an agreement for the sale of substantially all of
the assets of Equity Office other than to an entity of which Equity Office directly or indirectly
owns at least seventy percent (70%) of the voting share.]

	 	(c)  	If the Optionee’s Service terminates as the result of his or her death, the
Share Option shall become fully vested and will expire twelve (12) months following the
date of the Optionee’s death, but no later than the Expiration Date. The vested Share
Option shall be exercisable by the Optionee’s heirs, legatees or estate that receive
the Share Option, as determined by the Committee in accordance with the Plan and
Paragraph 6 hereof.
	 
	 	(d)  	If the Optionee’s Service terminates because of his Disability or retirement at
or after age 62 or following a Change in Control of the Company, the Share Option shall
be immediately exercisable in full and shall expire on the Expiration Date.

     3. Purchase Price. The per share purchase price of the Shares shall be $___,
subject to adjustment as provided below in Paragraph 5.

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     4. Exercise of Share Option. This Paragraph 4 describes the time and manner in which
the Share Option may be exercised.

	 	(a)  	The Share Option shall be exercisable in accordance with a vesting schedule under which
__________ (_/_) of the Share Options will vest on the __________ anniversary of the Grant Date,
and _____________ (_/_) of the Share Options will vest on each of the
_____________
anniversaries of the Grant Date. Notwithstanding the foregoing, the Share Option shall become
fully vested and immediately exercisable with respect to all of the Shares if the Optionee’s
Service terminates as a result of his or her death, Disability or retirement at or after his
or her attainment of age 62 or following a Change in Control.
	 
	 	(b)  	Once the Share Option becomes exercisable, the Optionee or such other persons
as are entitled to exercise the Share Option (as described in Paragraphs 2(c) and 6
hereof) may exercise the Share Option by providing written notice to exercise prior to
the Expiration Date to the attention of Fidelity Investments, or such other broker as
the Company shall identify in a written notice to Optionee as the Company’s designated
broker for the Plan (the “Designated Broker”). Such written notice to exercise or
electronic transmission of notice to exercise shall be in a form acceptable to the
Designated Broker and may state that the Share Option is being exercised thereby and
the number of Shares in respect of which it is being exercised. Such written notice
shall be signed by the person or persons so exercising the Share Option and shall be
accompanied by payment in full of the purchase price for such Shares, together with any
required state, federal and payroll withholding taxes. Payments under this Paragraph 4
may be made (i) in cash, (ii) in Shares to be valued at the Fair Market Value thereof
(as defined under the Plan) on the date of such exercise, (iii) with other
consideration deemed to be acceptable by the Committee, or (iv) with a combination of
any of the foregoing means. If the Share Option shall be exercised by any person or
entity other than the Optionee, such written notice and payment must also be
accompanied by appropriate proof of the right of such person or entity to exercise the
Share Option. As soon as practicable following its receipt of sufficient written
notice, payment and any other required documentation, the Designated Broker shall
register, in the name of the person or entity exercising the Share Option, the Shares
purchased under the Share Option.
	 
	 	(c)  	Notwithstanding any provision of this Agreement or the Plan to the contrary,
the Optionee or such other persons as are entitled to exercise the Share Option (as
described in Paragraphs 2(c) and 6 hereof) will be prohibited from exercising the Share
Option to the extent that the Chief Legal Counsel of the Company has determined that
purchases and sales of Company securities should be restricted because of the existence
or potential existence of material nonpublic information concerning the Company,
whether or not such determination has been communicated to the Optionee or such other
persons. If the Chief Legal Counsel of the Company has made such a determination and
the Optionee or such other persons give notice of an intent to exercise the Share
Option (and satisfy all other conditions to the exercise of the Share Option), the
Chief Legal Counsel shall advise the Optionee or such other persons concerning such
restrictions, and unless such notice is withdrawn, the effective time of the Optionee’s
exercise shall be postponed to the earlier of the date that the Chief Legal Counsel
determines that such restriction is no longer necessary with respect to exercises of
the Share Option or the day before the date

3

 

	 	   	that the Share Option expires.

     5. Adjustment of Shares Subject to the Share Option. In the event of any change in
the number of outstanding Shares by reason of any Share dividend, split, recapitalization, merger,
consolidation, combination, exchange of Shares or other similar corporate change, the aggregate
number and kind of Shares subject to the Share Option shall be proportionately adjusted by the
Committee so that the aggregate value of such Shares shall remain unchanged, and the terms of this
Agreement may be adjusted by the Committee in such manner as it deems equitable. If the foregoing
adjustment results in a fractional number of Shares being subject to the Share Option, then upon
any exercise of the Share Option, the Company or its agent shall pay cash to the Optionee (or such
other person or entity exercising the Share Option) in an amount equal to the excess of the Fair
Market Value (as defined under the Plan) of such fractional Share over its exercise price. All
adjustments under this Paragraph 5 shall be made in the sole discretion of the Committee as it
deems necessary and appropriate and shall be effective as of the day such action necessitating such
adjustment becomes effective. Notwithstanding the foregoing, in no event shall the price per Share
provided under this Agreement be adjusted below the par value of any such Share.

     6. Transferability. The Share Option shall not be transferable other than:

	 	(a)  	by will or the laws of descent and distribution;
	 
	 	(b)  	pursuant to a “qualified domestic relations order” (as such term is defined
under the Internal Revenue Code (the “Code”)), to the extent not inconsistent with the
applicable provisions of the Code; or
	 
	 	(c)  	pursuant to a transfer made by the Optionee during his or her lifetime to his
or her spouse, child or children, grandchild or grandchildren, or other family member
or to a trust for the benefit of one (1) or more of such family members, provided that:
(i) the transferee thereof shall hold such Share Option subject to all of the
conditions and restrictions contained herein and in the Plan; and (ii) as a condition
of such transfer, the Company may require the transferee to agree in writing (in a form
acceptable to the Committee) that the grant is subject to such conditions and
restrictions.

     The Share Option may not be assigned, transferred, pledged or hypothecated in any way, shall
not be assignable by operation of law, nor subject to execution, attachment or similar process,
except as provided in this Paragraph 6. Any attempted assignment, transfer, pledge, hypothecation
or other disposition of the Share Option contrary to the provisions of this Paragraph 6 and of the
Plan, and the levy of any execution, attachment or similar process upon the Share Option, shall be
null and void and without effect.

     7. Withholding Taxes. If at any time the Company is required to withhold taxes on
ordinary income recognized by the Optionee or other person or entity with respect to Shares
received under the Share Option, the Company shall have the right to withhold from amounts payable
to such person an amount necessary to satisfy all federal, state and local payroll tax withholding
requirements.

     Without limiting the generality of the foregoing:

4

 

	 	(a)  	the person or entity exercising the Share Option may elect to satisfy all or
part of the foregoing tax withholding requirements by delivery of unrestricted Shares
having a Fair Market Value (as defined under the Plan) equal to the amount of taxes to
be so withheld; and
	 
	 	(b)  	the Committee may permit any such delivery of Shares to be made by withholding Shares
otherwise issuable pursuant to the Share Option (in which event the date of delivery shall be
deemed to be the date the Share Option is exercised) having a Fair Market Value (as defined in the
Plan) equal to the amount of taxes to be withheld.

     8. Service Rights of Optionee. This Agreement shall not constitute a contract of
continued Service, and the Optionee’s receipt of the Share Option does not give him or her the
right to be retained in the Service of the Company or any [Extended Company] [Subsidiary].

     9. Shareholder Rights. The Optionee or other person or entity exercising the Share
Option shall have no rights as a shareholder with respect to Shares to be acquired by the exercise
of the Share Option until the earlier of the date of issuance of such Shares or the date the
Optionee becomes entitled to such Shares. 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
earlier of the date such Shares are issued and the date the Optionee becomes entitled to such
Shares. All Shares purchased upon the exercise of the Share Option as provided herein shall be
fully paid and non-assessable.

     10. Availability of Shares. The Company shall at all times during the term of the
Share Option reserve and keep available such number of Shares as will be sufficient to satisfy the
requirements of this Agreement, pay all original issue taxes, if any, with respect to the issuance
of Shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in
connection therewith, and, from time to time, use its best efforts to comply with all laws and
regulations which, in the opinion of counsel for the Company, shall be applicable thereto.

     11. Notices. Each notice relating to this Agreement shall be given in writing and
shall be sufficiently given if sent by registered or certified mail, or by nationally recognized
overnight delivery service, postage or charges prepaid, to the address as hereinafter provided. Any
such written notice or communication given by mail shall be deemed to have been given two (2)
business days after the date so mailed, and such written notice or communication given by overnight
delivery service shall be deemed to have been given one (1) business day after the date so sent.
Each written notice to the Company shall be addressed to it at its offices at Two North Riverside
Plaza, Suite 2100, Chicago, Illinois 60606, Attention: Chief Legal Counsel (or, in the case of
notices pursuant to Paragraph 4(b) hereof, Attention: Fidelity Investments, P.O. Box 770001,
Cincinnati, Ohio 45277-0003) or such other address identified in a written notice from the Company
to the Optionee delivered in the manner prescribed in this Paragraph 11. Each written notice to
the Optionee or other person or entity then entitled to exercise the Share Option shall be
addressed to the Optionee or such other person or entity at the Optionee’s last known address on
the records of the Company.

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     12. Incorporation of the Plan. Notwithstanding the terms and conditions contained
herein, this Agreement shall be subject to and governed by all of the terms and conditions of the
Plan (including amendments to the Plan). A copy of the Plan has been delivered to the Optionee and
is hereby incorporated by reference. In the event of any discrepancy or inconsistency between the
terms and conditions of this Agreement and those of the Plan, the terms and conditions of the Plan
shall control.

     13. Interpretation. The interpretation and construction by the Committee of any terms
or conditions of the Plan, this Agreement or other matters related to the Plan shall be final and
conclusive.

     14. Enforceability. This Agreement shall be binding upon the Optionee and his or her
estate, assignee, transferee, personal representative and beneficiaries. 

     15. Electronic Acceptance of this Agreement. Your electronic acceptance of this
Agreement will serve as your execution of this Agreement. To electronically accept this Agreement
you must log on to Fidelity Investments’ website, open your share option account and click on
“agreement acceptance.” By electronically accepting this Agreement, Equity Office and you agree
that the Share Option shall be subject to the terms, conditions and restrictions of this Agreement
and the Plan.

6

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