Document:

Exhibit 10.2

SEVERANCE AND CONSULTING AGREEMENT

This Severance and Consulting Agreement (the “Agreement”),
which is effective as of this 24th day of October 2006, is entered into by and
between Dr. Ruth G. Shaw (the “Executive”) and Duke Energy Corporation, a
Delaware corporation, and its subsidiaries and affiliates (collectively, “Duke”),
with the mutual exchange of promises as consideration (collectively, the “Parties”).

Recitals

A.            WHEREAS,
the Parties have agreed to the termination of the Executive’s employment
effective April 30, 2007 (the “Termination Date”); and

B.            WHEREAS, as of the
Termination Date, the Executive will become entitled to severance benefits
under the Key Employee Severance Agreement and Release entered into by and
between the Executive and Duke Energy Corporation, a North Carolina
corporation, dated August 18, 1999 (the “KESA”); and

C.            WHEREAS, Duke would
like to engage the Executive to provide certain consulting services to Duke as
well as any successors thereto.

D.            NOW, THEREFORE, Duke
and the Executive enter into the following Agreement:

Agreement

1.             KESA.  Duke agrees
to provide the Executive the severance benefits described in Section 2(c) of
the KESA contingent upon her continued compliance with the post-termination
obligations contained in the KESA, including but not limited to, the
obligations set forth in Sections 3, 4, 5 and 16 of the KESA.

2.             Consulting Arrangement. 
The Executive agrees to serve as a consultant to Duke for the period
beginning on May 1, 2007 and ending on April 30, 2009 (the “Consulting Period”).  The consulting services to be provided by the
Executive during the Consulting Period will consist of consultation with, and
advice to, the officers and managerial employees of Duke, as requested by the
Chief Executive Officer of Duke Energy Corporation (or his successor), on
matters relating to Duke’s business affairs about which the Executive has
historical knowledge and experience. 
When requested by Duke, the Executive will perform the consulting
services at reasonable times, as determined by mutual agreement between Duke
and the Executive; provided, however, that in no event will the Executive be
required, pursuant to this Agreement, to provide more than (i) 80 hours of
consulting services to Duke in any calendar month during the first twelve
months of the Consulting Period, or (ii) 25 hours of consulting services to
Duke in any calendar month during the second twelve months of the Consulting
Period, without her consent.  With
respect to the Consulting Period, the Executive will receive a consulting fee,
subject to the continuous provision of consulting services, equal to $900,000
(i.e., Executive will earn consulting fees at the rate of $37,500 per month) 

 

which amount will be paid to the Executive in equal monthly
installments over a 36-month period, with the first such payment being made in
May 2008.  All of the consulting services
to be provided by the Executive will be performed as an independent contractor,
and the Executive will not have any authority to act as an agent or
representative of Duke, except to the extent expressly authorized in writing by
Duke.  The Executive will perform her
consulting services to the best of her abilities.  The Executive will be reimbursed for all
reasonable expenses authorized by Duke and incurred by the Executive during the
Consulting Period in connection with the provision of consulting services
pursuant to this Agreement in accordance with the policies in effect from time
to time for other consultants.  Nothing
in this Agreement will prohibit the Executive from seeking or accepting other
employment, engaging in any other consulting services, or participating in any
other endeavor for profit, as she deems appropriate; provided, however, that in
so doing, she does not breach any of her other obligations under this Agreement
or the KESA; further, provided, however, that in the event the Executive
becomes employed by another employer prior to the expiration of the Consulting
Period, Duke, in its sole discretion, may terminate the consulting arrangement
outlined in this Section 2.

3.             Retention Bonus
Award.  In consideration for the
severance benefits and consulting arrangements outlined herein, the Executive
hereby waives her rights, if any, to a retention award and/or severance benefits
under the Severance and Retention Agreement entered into between the Executive
and Duke dated as of April 4, 2006 which agreement shall be null and void upon
the effective date of this Agreement as determined in accordance with Section
6, without any further action by the parties hereto.

4.             Nondisclosure of
Confidential Information.  The Executive
acknowledges that the information, observations and data obtained by her during
the Consulting Period concerning the business or affairs of Duke or any predecessor
thereof (unless and except to the extent the foregoing become generally known
to and available for use by the public other than as a result of the Executive’s
acts or omissions to act) (hereinafter defined as “Confidential Information”)
are the property of Duke and she is required to hold in a fiduciary capacity
all Confidential Information obtained by her during the Consulting Period for
the benefit of Duke.  The Executive’s
obligations under this Agreement are in addition to, and not in limitation of
or preemption of, all other obligations of confidentiality which the Executive
may have to Duke or its predecessors under the KESA general legal or equitable
principles, and federal, state or local law.

5.             Governing Law.  This Agreement shall be interpreted, enforced
and governed under the laws of the State of North Carolina, without regard to
any applicable state’s choice of law provisions.

6.             Effective
Date.  The Parties acknowledge and agree
that this Agreement shall not become effective unless and until it is approved
by the Compensation Committee of the Board of Directors of Duke Energy
Corporation.  Notwithstanding anything in
this Agreement to the contrary, this Agreement shall be null and void and of no
force or effect in the event the Executive does not execute any waiver and
release 

 

the Executive may be required to execute in order to receive severance
benefits under the KESA or timely revokes such waiver and release.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed, effective as of the date first written above.

 

	
  DUKE

  	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ James E.
  Rogers 

  	
   

  	
   

  	
  /s/ Dr. Ruth G. Shaw

  
	
  By:

  	
  James E. Rogers 

  	
   

  	
   

  	
  Dr. Ruth G. Shaw

  
	
   

  	
  President and
  Chief Executive 

  	
   

  	
   

  	
   

  
	
   

  	
  Officer of Duke
  Energy CorporationExhibit
10.1

SL GREEN REALTY CORP.

2006 LONG-TERM OUTPERFORMANCE PLAN

AWARD AGREEMENT

	
  Name of Grantee:

  	
   

  	
  (“Grantee”)

  
	
  No. of LTIP Units: 

  	
   

  	
   

  
	
  Participation Percentage:

  	
   

  	
   . 

  	
   

  	
  %

  	
   

  
	
  Grant Date: October
  

  	
   

  	
  , 2006

  
									

RECITALS

A.            The
Grantee is an employee of SL Green Realty Corp. (“SL Green” or the “Company”) and its subsidiary SL
Green Operating Partnership, L.P., through which SL Green conducts
substantially all of its operations (the “Partnership”).

B.            The Company
has adopted the 2006 Long-Term Outperformance Plan (the “Outperformance Plan”) to provide the Company’s Senior
Officers with incentive compensation.  The Outperformance Plan was
adopted effective as of August 14, 2006 by the Compensation Committee (the “Committee”)
of the Board of Directors of SL Green (the “Board”) pursuant to
authority delegated to it by the Board as set forth in the Committee’s charter,
including authority to make grants of equity
interests in the Partnership which may, under certain circumstances, become
exchangeable for shares of SL Green common stock reserved for issuance under
the SL Green Realty Corp. 2005 Stock
Option and Incentive Plan (as
amended, modified or supplemented from time to time, the “Option Plan”).  This award
agreement (this “Agreement”) evidences an award to the Grantee under the
Outperformance Plan (the “Award”), which is subject to the terms and
conditions set forth herein.

C.            The Grantee was selected by the
Committee to receive the Award and effective as of October __, 2006, caused the
Partnership to (1) issue to the Grantee the number of LTIP Units (as defined
herein) set forth above and (2) to award the Grantee the percentage of the
Outperformance Pool (as defined herein) set forth above.

NOW, THEREFORE, the Company, the
Partnership and the Grantee agree as follows:

1.                  Administration.  The
Outperformance Plan and all awards thereunder, including this Award, shall be
administered by the Committee, which in the administration of the 

 

 

Outperformance Plan shall
have all the powers and authority it has in the administration of the Option
Plan as set forth in the Option Plan.

2.             Definitions.  Capitalized terms used herein without
definitions shall have the meanings given to those terms in the Option Plan. In addition, as used herein:

“Additional Share Baseline Value” means, with respect to an Additional Share, the gross proceeds
received by SL Green or the Partnership upon the issuance of such Additional
Share, which amount shall be deemed to equal the price to the public if such
Additional Share is issued in a public offering or, if such Additional Share is
issued in exchange for assets or upon the acquisition of another entity, the
cash value imputed to such Additional Share for purposes of such transaction by
the parties thereto, as determined by the Committee, or, if no such value can
be imputed, the Common Stock Price on the date of issuance.

“Additional Shares” means the sum of (A) the
number of shares of Common Stock plus (B) the product of
the Conversion Factor then in effect multiplied by the number of Units (other
than those issued to SL Green), in the case of each (A) and (B), to the
extent issued after August 1, 2006 and on or before the Valuation Date in a
capital raising transaction, in exchange for assets or upon the acquisition of
another entity, but specifically excluding, without limitation, shares of
Common Stock issued upon exercise of stock options and restricted shares of
Common Stock issued to employees or other persons or entities in exchange for
services provided to SL Green.

“Award LTIP Units” has the meaning set forth
in Section 3.

“Baseline”
means, as of the Valuation Date, an amount representing (a) the Baseline Value
multiplied by (I) the Initial Shares, and (II) the sum of 100% plus the Target
Return Percentage, plus (b) with respect to each Additional Share,
the product of (I) the Additional Share Baseline Value of such Additional
Share, multiplied by (II) the sum of (A) 100% plus (B) the product of the
Target Return Percentage multiplied by a fraction the numerator of which is the
number of days prior to and including the Valuation Date during which such
Additional Share has been outstanding and the denominator of which is the
number of days from and including August 1, 2006 to and including the
Measurement Date; provided that if the Valuation Date occurs prior to
July 31, 2009 (other than as a result of clause (iii) of the definition of the
Valuation Date), then for purposes of this definition in connection with the
calculation of the Outperformance Pool as of the Valuation Date, the
Measurement Date shall be the Valuation Date and the Target Return Percentage
shall equal 30% multiplied by the Fraction.

“Baseline Value” means $106.39.

“Change of Control” means:

(a)           any “person,” including a “group”
(as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), together
with all “affiliates” and “associates” (as such terms are defined in
Rule 12b-2 under the Exchange Act) of such person, becoming the “beneficial
owner” 

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(as such term is defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 25% or more
of either (A) the combined voting power of the Company’s then outstanding
securities having the right to vote in an election of the Board (“Voting
Securities”) or (B) the then outstanding shares of all classes of
stock of the Company (in either such case other than as a result of the
acquisition of securities directly from the Company); or

(b)           the members of the Board at
the beginning of any consecutive 24-calendar-month period commencing on or
after the initial effective date of the Outperformance Plan (the “Incumbent
Directors”) ceasing for any reason including without limitation, as a
result of a tender offer, proxy contest, merger or similar transaction, to
constitute at least a majority of the Board; provided that any person becoming
a director of the Company whose election or nomination was approved by a vote
of at least a majority of the members of the Board then still in office who
were members of the Board at the beginning of such 24-calendar-month period,
shall, for purposes hereof, be considered an Incumbent Director; or

(c)           the shareholders of the
Company approving (A) any consolidation or merger of the Company or any
subsidiary that would result in the Voting Securities of the Company
outstanding immediately prior to such merger or consolidation representing
(either by remaining outstanding or by being converted into voting securities
of the surviving entity) less than 50% of the total voting power of the voting
securities of the surviving entity outstanding immediately after such merger or
consolidation or ceasing to have the power to elect at least a majority of the
board of directors or other governing body of such surviving entity,
(B) any sale, lease, exchange or other transfer (in one transaction or a
series of transactions contemplated or arranged by any party as a single plan)
of all or substantially all of the assets of the Company or (C) any plan
or proposal for the liquidation or dissolution of the Company.

Notwithstanding the foregoing clause (a), an
event described in clause (a) shall not be a Change of Control if such
event occurs solely as the result of an acquisition of securities by the
Company which, by reducing the number of shares of stock or other Voting
Securities outstanding, increases (x) the proportionate number of shares
of stock of the Company beneficially owned by any “person” (as defined above)
to 25% or more of the shares of stock then outstanding or (y) the
proportionate voting power represented by the Voting Securities beneficially
owned by any “person” (as defined above) to 25% or more of the combined voting
power of all then outstanding Voting Securities; provided, however, that if any
“person” referred to in clause (x) or (y) of this sentence shall
thereafter become the beneficial owner of any additional stock of the Company
or other Voting Securities (other than pursuant to a share split, stock
dividend, or similar transaction), then a Change of Control shall be deemed to
have occurred for purposes of the foregoing clause (a).

“Class A Units” has the meaning given to that
term in the Partnership Agreement.

“Code” means the Internal
Revenue Code of 1986, as amended.

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“Common Stock” means SL Green’s Common Stock,
par value $.01 per share, either currently existing or authorized hereafter.

“Common Stock Price” means, as of a particular
date, the average of the Fair Market Value of one share of the Common Stock for
the forty-five (45) trading days ending on, and including, such date (or, if
such date is not a trading day, the most recent trading day immediately
preceding such date); provided, however, that if such date is the date upon
which a Transactional Change of Control occurs, the Common Stock Price as of
such date shall be equal to the fair market value in cash, as determined by the
Committee, of the total consideration paid or payable in the transaction
resulting in the Transactional Change of Control for one share of Common Stock.

“Conversion Factor” has
the meaning given to that term in the Partnership Agreement.

“Disability” means,
unless otherwise provided in any Employment Agreement, a disability which
renders the Grantee incapable of performing all of his or her material duties
for a period of at least 150 consecutive or non-consecutive days during any
consecutive twelve-month period.

“Dividend Unit Equivalent” has the meaning set forth in Section 3.

“Dividend Value”
means, as of a particular date, the aggregate amount of dividends and other
distributions paid on one share of Common Stock between August 1, 2006 and such
date (excluding dividends and distributions paid in the form of additional
shares of Common Stock).

“Effective Date” means August 1, 2006.

“Employment Agreement” means, as of a
particular date, the Grantee’s employment agreement with the Company in effect
as of that date.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Fair Market Value”
has the meaning given to that term in the Option Plan.

“Family Member”, of a Grantee, means the
Grantee’s child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, any person sharing the Grantee’s household (other than
a tenant of the Grantee), a trust in which these persons (or the Grantee) own
more than 50 percent of the beneficial interest, a foundation in which these
persons (or the Grantee) control the management of assets, and any other entity
in which these persons (or the Grantee) own more than 50 percent of the voting
interests.

“Fraction” means the number of whole calendar
months that have elapsed since the Effective Date divided by 36.

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“Initial Shares” means the Total Shares less
the Additional Shares.

“LTIP Units” means Partnership Units, as such
term is defined in the Partnership Agreement, issued pursuant to Award
Agreements as profits interests under the Outperformance Plan having the
rights, voting powers, restrictions, limitations as to distributions, qualifications
and terms and conditions of redemption set forth herein and in the Partnership
Agreement.

“Maximum Outperformance Pool Amount” means, as
of the Valuation Date, $60,000,000 multiplied by the Total Participation
Percentage as of the Valuation Date.

“Measurement Date” means July 31, 2009, except as otherwise defined for purposes of the
definition of Baseline in certain circumstances, as described in such
definition.

“OPP Unit Equivalent” has the meaning set forth in Section 3.

“Outperformance Pool” means, as of the
Valuation Date, a dollar amount calculated as follows: subtract the Baseline
from the Total Return, in each case as of
the Valuation Date, and multiply the resulting amount (or, if the resulting amount would be negative,
zero) by 10%; provided, however,
that in no event shall the Outperformance Pool as of the Valuation Date exceed
the Maximum Outperformance Pool Amount as of the Valuation Date.  Notwithstanding the foregoing, if the
Valuation Date as of which the Outperformance Pool is being calculated is the
date upon which a Change of Control occurs and is on or after August 1, 2007,
then the Outperformance Pool shall be increased to equal (a) the amount of the
Outperformance Pool calculated in accordance with the preceding sentence multiplied
by (b) the lesser of (i) 200% or (ii) the sum of 100% plus a fraction the
numerator of which is 36 less the number of whole calendar months that have
elapsed since the Effective Date and the denominator of which is the number of
whole calendar months that have elapsed since the Effective Date.

“Participation Percentage” means, as of the
Valuation Date, the Grantee’s share of the Outperformance Pool as set forth
above the recitals in this Agreement multiplied by a fraction, the numerator of
which is $60,000,000 and the denominator of which is the Maximum Outperformance
Pool Amount as of the Valuation Date.

“Partnership Agreement” means the First Amended
and Restated Agreement of Limited
Partnership of the Partnership dated as of August 20, 1997 among the Company
and the limited partners party thereto, as amended from time to time.

“Target Return Percentage” means 30%, except as otherwise defined for purposes of the
definition of Baseline in certain circumstances, as described in such
definition.

“Total Participation Percentage” means the
aggregate initial participation percentage of all awards granted and not
forfeited under the Outperformance Plan (without taking into account any
adjustments to the participation percentages as a result of a decrease in the
Maximum Outperformance Pool Amount below $60,000,000).

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“Total Return” means, as of a particular date,
an amount equal to the sum of (a) the Total Shares multiplied by the Common
Stock Price as of such date plus (b) the Dividend Value, as of such date,
multiplied by the Initial Shares, plus (c) an amount equal to the total of all
dividends and other distributions in respect of Additional Shares actually paid
between August 1, 2006 and such date (excluding dividends and distributions
paid in the form of additional shares of Common Stock or Units).

“Total Shares” means the sum of (a) the number
of shares of Common Stock plus (b) the product of the Conversion Factor then in
effect multiplied by the number of Units (other than those owned by SL Green),
in the case of each (a) and (b), to the extent outstanding on the Valuation
Date.

“Total Unit Equivalent” has the meaning set
forth in Section 3.

“Transactional Change of Control” means (a) a
Change of Control described in clause (a) of the definition thereof where the “person”
or “group” makes a tender offer for Common Stock, or (b) a Change of Control
described in clauses (c)(A) or (B) of the definition thereof.

“Units” means all Class A Units, Class B Units
(as defined in the Partnership Agreement) and other Partnership Units (as
defined in the Partnership Agreement) with economic attributes substantially
similar to Class A Units or Class B Units as determined by the Committee,
outstanding or issuable upon the conversion, exercise, exchange or redemption
of any securities of any kind convertible, exercisable, exchangeable or
redeemable for Class A Units, Class B Units or such other Partnership Units
(other than LTIP Units issued under the Outperformance Plan or LTIP Units
issued under any similar outperformance program prior to the determination of
any performance based vesting hurdles with respect thereto).

“Valuation Date” means the earliest of (i) the Measurement Date,
(ii) the date upon which a Change of Control shall occur, and (iii) the
last day of a 30 consecutive calendar day period during which, on each day in
that period, the Outperformance Pool would have reached the Maximum
Outperformance Pool Amount if such day had been the Valuation Date.  For purposes of determining whether the
Valuation Date has occurred pursuant to clause (iii) above during or after a
calendar quarter in which an award under the Outperformance Plan is forfeited
(and calculating the Outperformance Pool and Participation Percentage as of
such Valuation Date), the forfeited award will be deemed to have been forfeited
as of the date that is twenty-nine calendar days prior to the first day of the
calendar quarter in which the forfeiture actually occurred.

3.             Outperformance Award.

(a)           Subject to Section 8,
the Grantee is hereby granted an Award consisting of the number of LTIP Units
set forth above (“Award LTIP Units”), which (A) will be subject to
forfeiture or increase to the extent provided in this Section 3 as set
forth below and (B) will be subject to vesting as provided in Sections 4
and 8 hereof.

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(b)           As soon as practicable
following the Valuation Date, but as of the Valuation Date, the Committee will
determine the Outperformance Pool (if any) and then perform the following
calculations with respect to this Award:

(i)            Multiply (w) the
Outperformance Pool calculated as of the Valuation Date by (x) the Grantee’s
Participation Percentage as of the Valuation Date, then divide the result by
the product of (y) the Common Stock Price calculated as of the Valuation Date
multiplied by (z) the Conversion Factor on the Valuation Date; the resulting
number is hereafter referred to as the “OPP Unit Equivalent”;

(ii)           Multiply (v) the
OPP Unit Equivalent by (w) the Conversion Factor on the Valuation Date and (x)
the Dividend Value as of the Valuation Date, then divide the result by the
product of (y) the Common Stock Price calculated as of the Valuation Date
multiplied by (z) the Conversion Factor on the Valuation Date; the resulting
number is hereafter referred to as the “Dividend Unit Equivalent”; and

(iii)          Add the OPP Unit
Equivalent to the Dividend Unit Equivalent; the resulting number is hereafter
referred to as the “Total Unit Equivalent”.

(c)           If the Total Unit Equivalent
is smaller than the number of Award LTIP Units, then the Grantee, as of the
Valuation Date, shall forfeit a number of Award LTIP Units equal to the
difference and thereafter the term Award LTIP Units will refer only to the
remaining Award LTIP Units that were not forfeited.  If the Total Unit Equivalent is greater than
the number of Award LTIP Units, then, upon the performance of such
calculation:  (A) the Grantee, as of the
Valuation Date, shall be automatically granted a number of additional LTIP
Units equal to the difference, and such additional LTIP Units shall be added to
the Award LTIP Units and thereby become part of this Award, (B) the Company and
the Partnership shall take such corporate or partnership action as is necessary
to accomplish the grant of such additional LTIP Units, (C) the Grantee shall
execute and deliver in connection with such grant such documents, comparable to
the documents executed and delivered in connection with this Agreement, as the
Company and/or the Partnership reasonably request in order to comply with all
applicable legal requirements, including, without limitation, federal and state
securities laws and (D) thereafter the term Award LTIP Units will refer
collectively to the Award LTIP Units prior to such additional grant plus such
additional LTIP Units.  If the Total Unit
Equivalent is the same as the number of Award LTIP Units, then there will be no
change to this Award.

4.             Termination
of Grantee’s Employment; Vesting; Change of Control.

(a)           If at any time the Grantee shall cease to be an employee of the
Company for any reason, then all Award LTIP
Units that remain unvested at such time shall automatically and immediately be
forfeited by the Grantee, except that in the case of the death or Disability of
the Grantee, the provisions of Section
8  shall apply, and except as
provided in Section 4(b) below.

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(b)           If at any time the Grantee
shall cease to be an employee of the Company due to (i) a termination without
Cause (as defined in the Employment Agreement) by the Company, or (ii) a
termination with Good Reason (as defined in the Employment Agreement), the
Grantee shall be treated for all purposes of this Agreement (including, without
limitation, the provisions of this Agreement relating to the vesting of the
Award LTIP Units) as if he had remained as an employee of the Company for 12
months after the date of termination.

(c)           Subject to Section 8, the Award LTIP Units shall become vested as
follows: (i) one-third (1/3) of the Award LTIP Units shall become vested on the
Measurement Date; and (ii) an additional one-third (1/3) of the Award LTIP
Units shall become vested on each of the first (1st) and second (2nd) anniversaries of the Measurement Date, provided that all unvested Award LTIP
Units that have not previously been forfeited shall vest immediately upon the
occurrence of a Change of Control.

5.             Payments by Award
Recipients.  No amount shall be
payable to the Company or the Partnership by the Grantee at any time in respect
of this Award.

6.             Distributions.  The holder of the Award LTIP Units shall be
entitled to receive distributions with respect to such Award LTIP Units to the
extent provided for in the Partnership Agreement.  The Distribution Participation Date (as
defined in the Partnership Agreement) with respect to Award LTIP Units in an
amount equal to the Total Unit Equivalent is the Valuation Date.

7.             Restrictions on Transfer.  None of the Award LTIP Units shall be sold,
assigned, transferred, pledged, hypothecated, given away or in any other manner
disposed of, encumbered, whether voluntarily or by operation of law (each such
action a “Transfer”), or redeemed in accordance with the Partnership
Agreement (a) prior to vesting, (b) for a period of two (2) years beginning on
the date of grant specified above other than in connection with a Change of
Control, or (c) unless such Transfer is in compliance with all applicable
securities laws (including, without limitation, the Securities Act of 1933, as
amended (the “Securities Act”)), and such Transfer is in accordance with
the applicable terms and conditions of the Partnership Agreement; provided that,
upon the approval of, and subject to the terms and conditions specified by, the
Committee, unvested Award LTIP Units that have been held for a period of at
least two (2) years beginning on the date of grant specified above may be
Transferred to the Grantee’s Family Members, provided that the transferee
agrees in writing with the Company and the Partnership to be bound by all of
the terms and conditions of this Agreement. 
In connection with any Transfer of Award LTIP Units, the Partnership may
require the Grantee to provide an opinion of counsel, satisfactory to the
Partnership, that such Transfer is in compliance with all federal and state
securities laws (including, without limitation, the Securities Act).  Any attempted Transfer of Award LTIP Units
not in accordance with the terms and conditions of this Section 7 shall
be null and void, and the Partnership shall not reflect on its records any
change in record ownership of any LTIP Units as a result of any such Transfer,
shall otherwise refuse to recognize any such Transfer and shall not in any way
give effect to any such Transfer of any LTIP Units.   This Agreement is personal to the Grantee,
is non-assignable and is not transferable 

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in any manner, by
operation of law or otherwise, other than by will or the laws of descent and
distribution.

8.             Death
or Disability.

(a)           Notwithstanding any other
provision herein, if, prior to the Valuation Date, the Grantee shall cease to
be an employee of the Company as a result of his death or Disability, then (i)
with respect to the Grantee the calculations provided in Section 3 shall
be performed with respect to this Award immediately as if a Change of Control
had occurred (with respect to the Grantee
only) on the date of his death or Disability and (ii) all of the Award LTIP
Units comprising this Award (after giving effect to the issuance of
additional LTIP Units or forfeiture of Award LTIP Units pursuant to Section
3) shall automatically and immediately vest.

(b)           Notwithstanding any other
provision herein, if, on or after the Valuation Date, the Grantee shall cease
to be an employee of the Company as a result of his death or Disability, then
all of the Grantee’s Award LTIP Units shall automatically and immediately vest.

9.             Changes in Capital
Structure.  If (i) the Company shall
at any time be involved in a merger, consolidation, dissolution, liquidation,
reorganization, exchange of shares, sale of all or substantially all of the
assets or stock of the Company or a transaction similar thereto, (ii) any stock
dividend, stock split, reverse stock split, stock combination,
reclassification, recapitalization, significant repurchases of stock or other
similar change in the capital structure of the Company, or any distribution to
holders of Common Stock other than regular cash dividends, shall occur or (iii)
any other event shall occur which in the judgment of the Committee necessitates
action by way of adjusting the terms of the Award, then the Committee shall
take such action as in its discretion shall be necessary to maintain the
Grantee’s rights hereunder so that they are substantially proportionate to the
rights existing under this Agreement prior to such event, including, without
limitation, adjustments in Award LTIP Units, Additional Shares, Baseline Value,
Dividend Value, Common Stock Price, Maximum Outperformance Pool Amount, Total
Shares and Total Return.

10.           Miscellaneous.

(a)           Amendments.  This Agreement may be amended or modified
only with the consent of the Partnership acting through the Committee; provided that any such amendment or
modification adversely affecting the rights of the Grantee hereunder must be
consented to by the Grantee to be effective
as against him.

(b)           Incorporation of Option
Plan.  The provisions of the Option
Plan are hereby incorporated by reference as if set forth herein. 
If and to the extent that any provision contained in this
Agreement is inconsistent with the Option Plan, this Agreement shall govern.

(c)           Effectiveness.  The Grantee shall be admitted as a partner of
the Partnership with beneficial ownership of the Award LTIP Units as of the
grant date set forth above by (i) signing and delivering to the Partnership a
copy of this Agreement, and (ii) signing, 

 9
 

 

as a Limited
Partner, and delivering to the Partnership a counterpart signature page to the
Partnership Agreement (attached hereto as Exhibit A).  The Partnership Agreement shall be amended to
reflect the issuance to the Grantee of the Award LTIP Units, whereupon the
Grantee shall have all the rights of a Limited Partner of the Partnership with
respect to the number of LTIP Units specified above, as set forth in the
Partnership Agreement, subject, however, to the restrictions and conditions
specified herein and in the Partnership Agreement.

(d)           Status of LTIP Units under
the Option Plan.  The Award LTIP
Units are not being granted as equity securities under the Option Plan insofar
as the Outperformance Plan has been established as an incentive program of the
Partnership.  The Company will have the
right, as set forth in the Partnership Agreement, to issue shares of Common
Stock in exchange for Class A Units into which such Award LTIP Units may have
been converted pursuant to the Partnership Agreement, subject to certain
limitations set forth in the Partnership Agreement, and such shares of Common
Stock may be issued under the Option Plan. 
The Grantee must be eligible to receive the Award LTIP Units in
compliance with applicable federal and state securities laws and to that effect
is required to complete, execute and deliver certain covenants, representations
and warranties (attached as Exhibit B). 
The Committee may, in its sole and absolute discretion, seek to have the
LTIP Units become part of the Option Plan at a future time, whereby this Award
may be considered an award under the Option Plan.  The Grantee acknowledges that if the
Committee so elects, in its sole discretion, the Grantee will have no right to
approve or disapprove such change.

(e)           Legend.   The records of the Partnership evidencing
the Award LTIP Units shall bear an appropriate legend, as determined by the
Partnership in its sole discretion, to the effect that such LTIP Units are
subject to restrictions as set forth herein and in the Partnership Agreement.

(f)            Compliance With Law.  The Partnership and the Grantee will make reasonable
efforts to comply with all applicable securities laws.  In addition, notwithstanding any provision of
this Agreement to the contrary, no LTIP Units will become vested or be paid at
a time that such vesting or payment would result in a violation of any such
law.

(g)           Investment Representation;
Registration.  The Grantee hereby
makes the covenants, representations and warranties and set forth on Exhibit
B attached hereto.  All of such
covenants, warranties and representations shall survive the execution and
delivery of this Agreement by the Grantee. 
The Partnership will have no obligation to register under the Securities
Act any LTIP Units or any other securities issued pursuant to this Agreement or
upon conversion or exchange of LTIP Units.

(h)           Section 83(b) Election.  The Grantee hereby agrees to make an election
to include in gross income in the year of transfer the Award LTIP Units
pursuant to Section 83(b) of the Code substantially in the form attached hereto
as Exhibit C and to supply the necessary information in accordance with
the regulations promulgated thereunder.

 10
 

 

 

(i)            Severability.  In the event that one or more of the
provisions of this Agreement may be invalidated for any reason by a court, any
provision so invalidated will be deemed to be separable from the other
provisions hereof, and the remaining provisions hereof will continue to be
valid and fully enforceable.

(j)            Governing Law.  This Agreement is made under, and will be
construed in accordance with, the laws of the State of New York, without giving
effect to the principle of conflict of laws of such State.

(k)           No Obligation to Continue
Position as an Officer or to Employ. 
Neither the Company nor any affiliate is obligated by or as a result of
this Agreement to continue to have the Grantee as an officer or to employ the
Grantee and this Agreement shall not interfere in any way with the right of the
Company or any affiliate to terminate the Grantee as an officer or employee at
any time.

(l)            Notices.  Notices hereunder shall be mailed or
delivered to the Partnership at its principal place of business and shall be
mailed or delivered to the Grantee at the address on file with the Partnership
or, in either case, at such other address as one party may subsequently furnish
to the other party in writing.

(m)          Withholding and Taxes.  No later than the date as of which an amount
first becomes includible in the gross income of the Grantee for income tax
purposes or subject to the Federal Insurance Contributions Act withholding with
respect to the Award, the Grantee will pay to the Company or, if appropriate,
any of its affiliates, or make arrangements satisfactory to the Committee
regarding the payment of, any United States federal, state or local or foreign
taxes of any kind required by law to be withheld with respect to such
amount.  The obligations of the Company
under this Agreement will be conditional on such payment or arrangements, and
the Company and its affiliates shall, to the extent permitted by law, have the
right to deduct any such taxes from any payment otherwise due to the Grantee.

(n)           Successors and Assigns.  This Agreement shall be binding upon the
Partnership’s successors and assigns, whether or not this Agreement is
expressly assumed.

[signature
page follows]

 11
 

 

 

IN WITNESS WHEREOF, the
undersigned have caused this Award Agreement to be executed as of the __ day of
October, 2006.

	
  

  	
  SL GREEN REALTY CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marc Holliday

  
	
   

  	
   

  	
  Title: 

  	
  President and Chief Executive Officer

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SL GREEN OPERATING PARTNERSHIP, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:  SL Green Realty Corp., its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marc Holliday

  
	
   

  	
   

  	
  Title: 

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
								

 

 12

 

 

EXHIBIT A

FORM OF LIMITED PARTNER
SIGNATURE PAGE

The Grantee, desiring to
become one of the within named Limited Partners of SL Green Operating
Partnership, L.P., hereby accepts all of the terms and conditions of
(including, without limitation, the provisions of Section 15.11 titled “Power
of Attorney”), and becomes a party to, the First Amended and Restated Agreement
of Limited Partnership, dated as of August 20, 1997, of SL Green Operating
Partnership, L.P., as amended through the date hereof (the “Partnership
Agreement”).  The Grantee agrees that
this signature page may be attached to any counterpart of the Partnership
Agreement.

 

	
  

  	
  Signature Line for Limited Partner:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Date: October __, 2006

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address of Limited Partner:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

 

EXHIBIT B

GRANTEE’S
COVENANTS, REPRESENTATIONS AND WARRANTIES

The Grantee hereby
represents, warrants and covenants as follows:

(a)           The Grantee has received and had an
opportunity to review the following documents (the “Background Documents”):

(i)            The Company’s latest Annual Report
to Stockholders;

(ii)           The Company’s Proxy Statement for its
most recent Annual Meeting of Stockholders;

(iii)          The Company’s Report on Form 10-K for
the fiscal year most recently ended;

(iv)          The Company’s Form 10-Q for the most recently
ended quarter filed by the Company with the Securities and Exchange Commission
since the filing of the Form 10-K described in clause (iii) above;

(v)           Each of the Company’s Current
Report(s) on Form 8-K, if any, filed since the end of the fiscal year most
recently ended for which a Form 10-K has been filed by the Company;

(vi)          The Partnership Agreement;

(vii)         The Option Plan; and

(viii)        The Company’s Certificate of
Incorporation, as amended.

The
Grantee also acknowledges that any delivery of the Background Documents and
other information relating to the Company and the Partnership prior to the
determination by the Partnership of the suitability of the Grantee as a holder
of LTIP Units shall not constitute an offer of LTIP Units until such determination
of suitability shall be made.

(b)           The Grantee hereby represents and
warrants that

(i)            The Grantee either (A) is an “accredited
investor” as defined in Rule 501(a) under the Securities Act of 1933, as
amended (the “Securities Act”), or (B) by reason of the business
and financial experience of the Grantee, together with the business and
financial experience of those persons, if any, retained by the Grantee to
represent or advise him with respect to the grant to him of LTIP Units, the
potential conversion of LTIP Units into Class A Units of the Partnership (“Common
Units”) and the potential redemption of such Common Units for shares of
Common Stock (“REIT Shares”), has such knowledge, sophistication and
experience in financial and business matters and in making investment decisions
of this type that the Grantee (I) is capable of evaluating the merits and risks
of an investment in the Partnership and potential investment in the Company and
of making an informed investment decision, (II) is 

 

 

capable of protecting his
own interest or has engaged representatives or advisors to assist him in
protecting his interests, and (III) is capable of bearing the economic risk of
such investment.

(ii)           The Grantee understands that (A) the
Grantee is responsible for consulting his own tax advisors with respect to the
application of the U.S. federal income tax laws, and the tax laws of any state,
local or other taxing jurisdiction to which the Grantee is or by reason of the
award of LTIP Units may become subject, to his particular situation; (B) the
Grantee has not received or relied upon business or tax advice from the
Company, the Partnership or any of their respective employees, agents,
consultants or advisors, in their capacity as such; (C) the Grantee provides
services to the Partnership on a regular basis and in such capacity has access
to such information, and has such experience of and involvement in the business
and operations of the Partnership, as the Grantee believes to be necessary and
appropriate to make an informed decision to accept this Award of LTIP Units;
and (D) an investment in the Partnership and/or the Company involves
substantial risks.  The Grantee has been
given the opportunity to make a thorough investigation of  matters relevant to the LTIP Units and has
been furnished with, and has reviewed and understands, materials relating to
the Partnership and the Company and their respective activities (including, but
not limited to, the Background Documents). 
The Grantee has been afforded the opportunity to obtain any additional
information (including any exhibits to the Background Documents) deemed
necessary by the Grantee to verify the accuracy of information conveyed to the
Grantee.  The Grantee confirms that all
documents, records, and books pertaining to his receipt of LTIP Units which
were requested by the Grantee have been made available or delivered to the
Grantee.  The Grantee has had an
opportunity to ask questions of and receive answers from the Partnership and
the Company, or from a person or persons acting on their behalf, concerning the
terms and conditions of the LTIP Units. The Grantee has relied
upon, and is making its decision solely upon, the Background Documents and
other written information provided to the Grantee by the Partnership or the
Company.

(iii)          The LTIP Units to be issued, the
Common Units issuable upon conversion of the LTIP Units and any REIT Shares
issued in connection with the redemption of any such Common Units will be
acquired for the account of the Grantee for investment only and not with a
current view to, or with any intention of, a distribution or resale thereof, in
whole or in part, or the grant of any participation therein, without prejudice,
however, to the Grantee’s right (subject to the terms of the LTIP Units, the
Option Plan and this Agreement) at all times to sell or otherwise dispose of
all or any part of his LTIP Units, Common Units or REIT Shares in compliance
with the Securities Act, and applicable state securities laws, and subject,
nevertheless, to the disposition of his assets being at all times within his
control.

(iv)          The Grantee acknowledges that (A)
neither the LTIP Units to be issued, nor the Common Units issuable upon
conversion of the LTIP Units, have been registered under the Securities Act or
state securities laws by reason of a specific exemption or exemptions from
registration under the Securities Act and applicable state securities laws and,
if such LTIP Units or Common Units are represented by certificates, such
certificates will bear a legend to such effect, (B) the reliance by the
Partnership and 

 

 

the Company on such
exemptions is predicated in part on the accuracy and completeness of the
representations and warranties of the Grantee contained herein, (C) such LTIP
Units, or Common Units, therefore, cannot be resold unless registered under the
Securities Act and applicable state securities laws, or unless an exemption
from registration is available, (D) there is no public market for such LTIP
Units and Common Units and (E) neither the Partnership nor the Company has any
obligation or intention to register such LTIP Units or the Common Units
issuable upon conversion of the LTIP Units under the Securities Act or any
state securities laws or to take any action that would make available any
exemption from the registration requirements of such laws, except, that, upon
the redemption of the Common Units for REIT Shares, the Company may issue such
REIT Shares under the Option Plan and pursuant to a Registration Statement on
Form S-8 under the Securities Act, to the extent that (I) the Grantee is
eligible to receive such REIT Shares under the Option Plan at the time of such
issuance, (II) the Company has filed a Form S-8 Registration Statement with the
Securities and Exchange Commission registering the issuance of such REIT Shares
and (III) such Form S-8 is effective at the time of the issuance of such REIT
Shares.  The Grantee hereby acknowledges
that because of the restrictions on transfer or assignment of such LTIP Units
acquired hereby and the Common Units issuable upon conversion of the LTIP Units
which are set forth in the Partnership Agreement or this Agreement, the Grantee
may have to bear the economic risk of his ownership of the LTIP Units acquired
hereby and the Common Units issuable upon conversion of the LTIP Units for an
indefinite period of time.

(v)           The Grantee has determined that the
LTIP Units are a suitable investment for the Grantee.

(vi)          No representations or warranties have
been made to the Grantee by the Partnership or the Company, or any officer,
director, shareholder, agent, or affiliate of any of them, and the Grantee has
received no information relating to an investment in the Partnership or the
LTIP Units except the information specified in Paragraph (b) above.

(c)           So long as the Grantee holds any LTIP
Units, the Grantee shall disclose to the Partnership in writing such
information as may be reasonably requested with respect to ownership of LTIP
Units as the Partnership may deem reasonably necessary to ascertain and to
establish compliance with provisions of the Code, applicable to the Partnership
or to comply with requirements of any other appropriate taxing authority.

(d)           The Grantee hereby agrees to make an
election under Section 83(b) of the Code with respect to the LTIP Units
awarded hereunder, and has delivered with this Agreement a completed, executed
copy of the election form attached hereto as Exhibit C.  The Grantee agrees to file the election (or
to permit the Partnership to file such election on the Grantee’s behalf) within
thirty (30) days after the award of the LTIP Units hereunder with the IRS
Service Center at which such Grantee files his personal income tax returns, and
to file a copy of such election with the Grantee’s U.S. federal income tax
return for the taxable year in which the LTIP Units are awarded to the Grantee.

 

 

(e)           The address set forth on the
signature page of this Agreement is the address of the Grantee’s principal
residence, and the Grantee has no present intention of becoming a resident of
any country, state or jurisdiction other than the country and state in which
such residence is sited.

 

EXHIBIT C

ELECTION TO
INCLUDE IN GROSS INCOME IN YEAR OF

TRANSFER OF PROPERTY PURSUANT TO SECTION 83(B)

OF THE INTERNAL REVENUE CODE

The undersigned hereby
makes an election pursuant to Section 83(b) of the Internal Revenue Code with
respect to the property described below and supplies the following information
in accordance with the regulations promulgated thereunder:

	
  

  	
  1.

  	
  The name, address and taxpayer identification number
  of the undersigned are:

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Name:

  	
   

  	
    (the “Taxpayer”)

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  Social Security No./Taxpayer Identification No.:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  2.

  	
  Description of property with respect to which the
  election is being made:

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  The election is being made with respect to

  	
   

  	
  LTIP 

  	 

	
   

  	
   

  	
  Units in SL Green Operating Partnership, L.P. (the “Partnership”).

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  3.

  	
  The date on which the LTIP Units were transferred is
  October __, 2006. The taxable year to which this election relates is calendar
  year 2006.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  4.

  	
  Nature of restrictions to which the LTIP Units are
  subject:

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  (a)

  	
  With limited exceptions, until the LTIP Units vest,
  the Taxpayer may not transfer in any manner any portion of the LTIP Units
  without the consent of the Partnership.

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  (b)

  	
  The Taxpayer’s LTIP Units vest in accordance with
  the vesting provisions described in the Schedule attached hereto. Unvested
  LTIP Units are forfeited in accordance with the vesting provisions described
  in the Schedule attached hereto.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  5.

  	
  The fair market value at time of transfer
  (determined without regard to any restrictions other than restrictions which
  by their terms will never lapse) of the LTIP Units with respect to which this
  election is being made was $0 per LTIP Unit.

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  6.

  	
  The amount paid by the Taxpayer for the LTIP Units
  was $0 per LTIP Unit.

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  7.

  	
  A copy of this statement has been furnished to the
  Partnership and SL Green Realty Corp.

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  Dated:

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
  Name:

  	 

																	

 

 

SCHEDULE
A

Vesting
Provisions of LTIP Units

The LTIP Units are
subject to time-based and performance-based vesting with the final vesting
percentage equaling the product of the time-based vesting percentage and the
performance-based vesting percentage.  Performance-based
vesting will be from 0-100% based on SL Green Realty Corp.’s (the “Company’s”)
per-share total return to shareholders for the period from August 1, 2006 to
July 31, 2009 (or earlier in certain circumstances).  Under the time-based vesting hurdles,
one-third of the LTIP Units will vest on the last day of the performance period
and on each of the first and second anniversaries thereof, provided that the
Taxpayer remains an employee of the Company through such dates, subject to
acceleration in the event of certain extraordinary transactions or termination
of the Taxpayer’s status as an employee under specified circumstances.  Unvested LTIP Units are subject to forfeiture
in the event of failure to vest based on the passage of time or the determination
of the performance-based percentage.

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