Document:

Exhibit
10.2

 

SECOND AMENDMENT TO EQUITY RESIDENTIAL

2002 SHARE INCENTIVE PLAN

 

THIS SECOND
AMENDMENT (the “Second Amendment”) to EQUITY RESIDENTIAL 2002 SHARE INCENTIVE
PLAN (“Plan”) is executed as of the 10th day of June 2003.

 

RECITALS

 

WHEREAS, the
Board of Trustees of Equity Residential (“the Company”) adopted the 2002 Share
Incentive Plan (“Plan”) on February 21, 2002, which was approved by the
shareholders of the Company at the 2002 annual meeting.

 

WHEREAS, the
Company entered into a First Amendment to the Plan dated as of February 7,
2003.

 

WHEREAS, the
Board of Trustees have adopted a resolution to amend the terms of all
outstanding Trustee Share Awards and Options as well as the annual grants of
Trustee Share awards and Options to be made after the date of this Second
Amendment.

 

WHEREAS, each
member of the Board of Trustees to be affected by this Second Amendment has
agreed to the terms hereof.

 

WHEREAS, the
Company desires to further amend the Plan pursuant to this Second Amendment.

 

NOW THEREFORE,
the Plan is further amended as follows:

 

AMENDMENTS

 

1.  Section 3 (b) of the Plan is hereby deleted
in its entirety and the following Section 3 (b) is substituted therefor:

 

(b) Board of Trustees.  Each member of the Board of Trustees
(excluding the Chairman of the Board and the employee trustees) will receive an
annual award (relating to the Trustee’s term as Trustee for the one-year period
following the subsequent shareholders’ meeting at which trustees are elected)
of Share Awards and Options equal to $50,000 in value on the same day as the
annual grant of Share Awards and Options to the Company’s executive
officers.  The annual $50,000 award will
be allocated between Options (valued by using the same valuation criteria
utilized by the Committee in its employee option grants made as of the same
date) and Share Awards (valued at the closing price of the Company’s common
shares on the date of grant), in the same ratio as approved by the Committee
for the annual long term incentive awards to the Company’s executive
officers.  The Share Award will vest in
full on the third anniversary of the Grant Date.  The Options will vest in equal installments six months, twelve
months and twenty-four months from the Grant Date.  The annual award of Share Awards and Options is also subject to
the Trustee receiving the grant being re-elected as a Trustee at the subsequent
shareholders’ meeting.  If an individual
first becomes a Trustee following the annual grant, the Trustee will receive a
grant of Share Awards and Options in the same ratio as the prior annual
Trustee’s grant equal to $50,000 multiplied by a fraction, the numerator of
which is the number of days left in said one year Trustee term from the date of
such Trustee’s election or appointment to the Board of Trustees, until the
anniversary of the immediately preceding shareholders’ meeting at which
trustees were re-elected, and the denominator of which is 365.  Trustees may, in addition to Options and
Share Awards awarded under this paragraph, also receive grants of Options and
Share Awards under paragraph 3(a).

 

 

2.                                       Section
5 (a) (iii) (C) is hereby deleted in its entirety and the following 5 (a) (iii)
(C) is substituted therefor, to be effective as of February 21, 2002:

 

with respect
to a Grantee who is a member of the Board (excluding employee trustees and the
Company’s Chairman of the Board) in connection with his or her retirement at or
after age 70, the Board’s decision not to renominate him or her for re-election
to the Board at any shareholders’ meeting at which Trustees are elected, or the
failure to be re-elected to the Board at any such shareholders’ meeting, or the
Trustee’s resignation from the Board by reason of either: (i) a material change
in the Trustee’s employment or job responsibilities; or (ii) the Trustee’s
disability.

 

3.                                       Section
6 (e) (iii) is hereby deleted in its entirety and the following 6 (e) (iii) is
substituted therefor, to be effective as of February 21, 2002:

 

with respect
to a Grantee who is a member of the Board (excluding employee trustees and the
Company’s Chairman of the Board) in connection with his or her retirement at or
after age 70, the Board’s decision not to renominate him or her for re-election
to the Board at any shareholders’ meeting at which Trustees are elected, or the
failure to be re-elected to the Board at any such shareholders’ meeting, or the
Trustee’s resignation from the Board by reason of either: (i) a material change
in the Trustee’s employment or job responsibilities; or (ii) the Trustee’s
disability, in which case it shall be exercisable until its Expiration Date.

 

4.                                       PLAN IN FULL FORCE AND EFFECT.  After giving effect
to this Second Amendment, the Plan remains in full force and effect.

 

IN
WITNESS WHEREOF, this Second Amendment has been executed as of the date first
written above.

 

 

	
   

  	
  EQUITY
  RESIDENTIAL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  Bruce C. Strohm

  	
   

  
	
   

  	
   

  	
  Bruce
  C. Strohm

  
	
   

  	
   

  	
  Executive
  Vice President and General Counsel

  

 

2Exhibit
4.1

 

CONTRIBUTION
AGREEMENT

 

This CONTRIBUTION AGREEMENT  (this “Agreement”) dated as of
                
    , 200  , by and between Warren Resources,
Inc., a Delaware corporation (“Warren”), and [name of LLC], a Delaware limited
liability company (the “Company”) (Warren and the Company individually a
“Party,” and collectively the “Parties”).

 

W I T N
E S S E T H

 

WHEREAS, the Company was organized to be
the successor to [insert name of the limited partnership], a Delaware limited
partnership (the “Partnership”); and

 

WHEREAS, the Company’s Amended and Restated
Limited Liability Agreement, dated
                
    , 200   (the “LLC Agreement”), provides for
two classes of membership interests, one class being “Standard Membership
Interests” to be held by “Standard Members,” and the second class being
“Preferred Membership Interests” to be held by “Preferred Members” (as those
terms are defined in the LLC Agreement); and

 

WHEREAS, pursuant to a conversion under the
laws of the State of Delaware, Warren (the general partner of the Partnership)
exchanged its general partnership interest in the Partnership for a Standard
Membership Interest, thereby making a capital contribution to the Company and
becoming a Standard Member of the Company, and each limited partner of the
Partnership exchanged its limited partnership interest in the Partnership for
either a Standard Membership Interest or a Preferred Membership Interest,
thereby making a capital contribution to the Company and becoming a Standard
Member of the Company or a Preferred Member of the Company, as the case may be;
and

 

WHEREAS, pursuant to this Agreement, Warren
shall issue to the Company
           shares of Warren
Series A 8% Cumulative Convertible Preferred Stock (the “Preferred Stock”) as
an additional capital contribution (the “Warren Additional Capital
Contribution”) in exchange for an additional Standard Membership Interest in
the Company (the “Warren Additional Standard Membership Interest”);

 

NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Parties, intending to be legally bound by the terms hereof applicable to each
of them, hereby agree as follows:

 

ARTICLE I

 

The Issuances by Warren
and the Company

 

SECTION 1.01. The Warren Additional Capital
Contribution. Warren shall make the Warren Additional Capital Contribution
by issuing to the Company the Preferred Stock, which Preferred Stock shall have
a stated value of $12 per share, and a total value of
$              ,
and which total value shall be equal to the fair market value of all of the
Preferred Membership Interests held by the Preferred Members.

 

 

SECTION 1.02. The Warren Additional Membership
Interest. In exchange for the Warren Additional Capital Contribution, the
Company shall issue to Warren the Warren Additional Standard Membership
Interest.

 

SECTION 1.03.  Terms
of the Preferred Stock. The Preferred Stock shall have the rights, preferences,
terms and conditions in accordance with the Certificate of Designation attached
hereto as Exhibit A and made a part hereof.

 

ARTICLE
II

 

The Closing

 

SECTION 2.01. The Closing. The closing
hereunder (the “Closing”) shall take place at the offices of Warren, 489 Fifth
Avenue, New York, NY 10017.

 

SECTION 2.02. Transactions To Be Effected at the
Closing. At the Closing, Warren shall deliver to the Company a certificate
for the Preferred Stock registered in the name of the Company, and the Company
shall deliver to Warren a certificate for the Warren Additional Standard
Membership Interest registered in the name of Warren.

 

ARTICLE
III

 

Representations and Warranties of
Warren

 

Warren hereby represents and warrants to the Company
as of the date of this Agreement, as follows:

 

SECTION 3.01 Experience. Warren is experienced
in evaluating companies such as the Company, is able to fend for itself in
transactions such as the one contemplated by this Agreement, has such knowledge
and experience in financial and business matters that it is capable of
evaluating the merits and risks of its prospective investment in the Warren
Additional Standard Membership Interest, and has the ability to bear the
economic risks of such investment.

 

SECTION 3.02 Nature of Investment. Warren is
acquiring the Warren Additional Standard Membership Interest for investment for
its own account and not with the view to, or for resale in connection with, any
distribution thereof. Warren understands that the Warren Additional Standard
Membership Interest has not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), or any state securities law, by reason of a
specific exemption from the registration provisions of the Securities Act and
the state securities laws, respectively, which depends upon, among other
things, the bona fide nature of the investment intent as expressed herein.
Warren further represents that it does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant
participation to any third person with respect to any part of the Warren
Additional Standard Membership Interest. Warren understands and acknowledges
that the offering of the Warren Additional Standard Membership Interest
pursuant to this Agreement will not be registered under the Securities Act or
under the state securities laws on the ground that the sale provided for in
this Agreement and the issuance of securities hereunder is exempt from the
registration requirements of the Securities Act and any applicable state
securities laws.

 

SECTION 3.03. Rule 144. Warren acknowledges
that the Warren Additional Standard Membership Interest must be held
indefinitely unless subsequently registered under the Securities

 

2

 

Act and any applicable state securities laws or an exemption from such
registration is available and the transfer thereof is otherwise permitted under
the LLC Agreement. Warren is aware of the provisions of Rule 144 promulgated
under the Securities Act that permit limited resale of shares purchased in a
private placement subject to the satisfaction of certain conditions. Warren
covenants that, in the absence of an effective registration statement covering
the Warren Additional Standard Membership Interest, Warren will sell, transfer,
distribute or otherwise dispose of the Warren Additional Standard Membership
Interest only in a manner consistent with its representations and covenants set
forth in this Section 3 and those set forth in the LLC Agreement. In connection
therewith, Warren acknowledges that the Company will make a notation on its
books regarding the restrictions on transfer set forth in this Section 3 and
will transfer Warren Additional Standard Membership Interest on the books of Company
only to the extent not inconsistent therewith.

 

SECTION 3.04. No Public Market. Warren
understands that no public market now exists for the Warren Additional Standard
Membership Interest, and that there may never be a public market for the Warren
Additional Standard Membership Interest.

 

SECTION 3.05. Accredited Investor. Warren is an
“accredited investor” as defined in Rule 501 of Regulation D as promulgated by
the Securities and Exchange Commission under the Securities Act and shall
submit to the Company such further assurances of such status as may be
reasonably requested by the Company.

 

ARTICLE IV

 

Representations and Warranties of the
Company

 

The Company hereby represents and warrants to Warren
as of the date of this Agreement, as follows:

 

SECTION 4.01. Experience. The Company is
experienced in evaluating companies such as Warren, is able to fend for itself
in transactions such as the one contemplated by this Agreement, has such
knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of its prospective investment in the
Preferred Stock, and has the ability to bear the economic risks of such
investment.

 

SECTION 4.02. Nature of Investment. The Company
is obtaining the Preferred Stock investment for its own account and not with
the view to, or for resale in connection with, any distribution thereof. The
Company understands that the Preferred Stock has not been registered under the
Securities Act or any state securities law, by reason of a specific exemption
from the registration provisions of the Securities Act and the state securities
laws, respectively, which depends upon, among other things, the bona fide
nature of the investment intent as expressed herein. The Company further
represents that it does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to any
third person with respect to any part of the Preferred Stock. The Company
understands and acknowledges that the offering of the Preferred Stock pursuant
to this Agreement will not be registered under the Securities Act or under the
state securities laws on the ground that the sale provided for in this
Agreement and the issuance of securities hereunder is exempt from the registration
requirements of the Securities Act and any applicable state securities laws.

 

3

 

SECTION 4.03. Investment Purposes.  The Company acknowledges its understanding
that the issuance of the Preferred Stock is intended to be exempt from
registration under the Securities Act, and the rules and regulations in effect
thereunder.  In furtherance thereof, the
Company has no intention of engaging in a public distribution of any of the
Preferred Stock. The Company understands that no public market now exists for
the Preferred Stock, and that there may never be a public market for the
Preferred Stock.

 

SECTION 4.04. Accredited Investor. The Company
was not formed for the specific purpose of making this investment in Warren and
is an “accredited investor” as defined in Rule 501 of Regulation D as
promulgated by the Securities and Exchange Commission under the Securities Act
and shall submit to Warren such further assurances of such status as may be
reasonably requested by Warren.

 

SECTION 4.05. Restrictive Legend.  Each certificate representing the Preferred
Stock (and any common stock issuable upon conversion of the Preferred Stock)
shall bear a legend substantially in the following form:

 

THE SECURITIES EVIDENCED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION,
UNLESS THE TRANSFEROR DELIVERS TO THE COMPANY AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER OR
OTHER DISPOSITION MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE ACT AND
UNDER APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS.

 

ARTICLE V

 

Covenants

 

SECTION 5.01. Reasonable Best Efforts. Each
Party shall, and shall cause its affiliates to, use its reasonable best efforts
(at its own expense) to obtain, and to cooperate in obtaining, all consents
from third persons necessary or appropriate to permit the Warren Additional
Capital Contribution to be completed.

 

SECTION 5.02.  Post-Closing
Cooperation. The Parties shall cooperate with each other, and shall cause
their respective officers, employees, agents, auditors and representatives to
cooperate with each other after the Closing, and each Party shall reimburse the
other Party for reasonable out-of-pocket costs and expenses incurred in
assisting such other Party pursuant to this Article V.

 

SECTION 5.03. Further Assurances. From time to
time, as and when requested by any party,

 

4

 

each Party shall execute and deliver, or cause to be executed and
delivered, all such documents and instruments and shall take, or cause to be
taken, all such further or other actions (subject to Section 5.01 hereof), as
such other Party may reasonably deem necessary or desirable to consummate the
transactions contemplated by this Agreement, including, in the case of Warren,
executing and delivering to the Company such assignments, deeds, bills of sale,
consents and other instruments as the Company or its counsel may reasonably
request as necessary or desirable for such purpose.

 

ARTICLE
VI

 

General Provisions

 

SECTION 6.01. Assignment. This Agreement and
the rights and obligations hereunder shall not be assignable or transferable by
Warren or the Company without the prior written consent of the other Party;
provided, however, that Warren may assign this Agreement and its rights and
obligations hereunder to any entity controlling, controlled by or under common
control with, Warren, or to any entity that acquires Warren by purchase of
stock or by merger or otherwise, or by acquiring all or substantially all of
Warren’s assets, provided that any such assignee succeeds to all of the rights
and is subject to all of the obligations of Warren under this Agreement. Any
attempted assignment in violation of this Section 6.01 shall be null and void
ab initio.

 

SECTION 6.02. No Third-Party Beneficiaries.
This Agreement is for the sole benefit of the Parties and their permitted
assigns and nothing herein expressed or implied shall give or be construed to
give to any person, other than the Parties and such assigns, any legal or
equitable rights hereunder.

 

SECTION 6.03. Interpretation; Exhibits and
Schedules; Certain Definitions. The headings contained in this Agreement
and in any Exhibit or Schedule hereto are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement. Any
Exhibits and Schedules annexed hereto or referred to herein are hereby
incorporated in and made a part of this Agreement as if set forth in full
herein. Any capitalized terms used in any Exhibit or Schedule, but not
otherwise defined therein, shall have the meaning as defined in this Agreement.
When a reference is made in this Agreement to a Section, Exhibit or Schedule,
such reference shall be to a Section of, or an Exhibit or Schedule to, this
Agreement unless otherwise indicated.

 

SECTION 6.04. Counterparts. This Agreement may be
executed in one or more counterparts, all of which shall be considered one and
the same agreement, and shall become effective when one or more such
counterparts have been signed by each Party and delivered to each of the other
Party.

 

SECTION 6.05. Entire Agreement. This Agreement
and the LLC Agreement contain the entire agreement and understanding between
the Parties with respect to the subject matter hereof and supersede all prior
agreements and understandings relating to such subject matter. Neither Party
shall be liable or bound to any other party in any manner by any
representations, warranties or covenants relating to such subject matter except
as specifically set forth herein or in the LLC Agreement.

 

SECTION 6.06. Severability. If any provision of
this Agreement (or any portion thereof) or the application of any such
provision (or any portion thereof) to any person or circumstance shall be held
invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision hereof (or the remaining portion thereof) or the
application of such provision to any other persons or circumstances.

 

5

 

SECTION 6.07. Amendments and Waivers. This
Agreement may not be amended except by an instrument in writing signed on
behalf of each Party. By an instrument in writing, either Party may waive
compliance by the other Party with any term or provision of this Agreement that
such other Party was or is obligated to comply with or perform.

 

SECTION 6.08. Consent to Jurisdiction. Each
Party irrevocably submits to the exclusive jurisdiction of the Supreme Court of
the State of New York, New York County, and the United States District Court
for the Southern District of New York, for the purposes of any suit, action or
other proceeding arising out of this Agreement, or any transaction contemplated
hereby or thereby. Each Party may commence any such action, suit or proceeding
only in either in the United States District Court for the Southern District of
New York or if such suit, action or other proceeding may not be brought in such
court for jurisdictional reasons, in the Supreme Court of the State of New
York, New York County. Service of any process, summons, notice or document by
U.S. registered mail to such Party’s respective address set forth Section 6.09
hereof shall be effective service of process for any action, suit or proceeding
in New York with respect to any matters to which it has submitted to
jurisdiction in this Section 6.08. Each Party irrevocably and unconditionally
waives any objection to the laying of venue of any action, suit or proceeding
arising out of this Agreement, or the transactions contemplated hereby and
thereby in the Supreme Court of the State of New York, New York County, or the
United States District Court for the Southern District of New York, and further
irrevocably and unconditionally waives the right to plead or claim, in any such
court, that any such action, suit or proceeding brought in any such court has
been brought in an inconvenient forum.

 

SECTION 6.09. Addresses. The address of Warren
is 489 Fifth Avenue, 32nd Floor, New York, NY 10017, and the address
of the Company is Suite 23, 801 East 4th, Gillette, Wyoming 82716.

 

SECTION 6.10. Governing Law. This Agreement
shall be governed by and construed in accordance with the internal laws of the
State of New York applicable to agreements made and to be performed entirely
within such State, without regard to the conflicts of law principles of such
State.

 

IN WITNESS WHEREOF, Warren and the Company have duly
executed this Agreement as of the date first written above.

 

	
   

  	
  [Name of the LLC]

  
	
   

  	
  By: Warren Resources,
  Inc.,

  
	
   

  	
  its
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   Norman F. Swanton

  
	
   

  	
  Title:

  	
  Chairman & Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  WARREN RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Norman F. Swanton

  
	
   

  	
  Title:

  	
    Chairman & Chief Executive Officer

  
								

 

6

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