Executive Choice Share Deferral Plan for Trustees (72K)
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PRENTISS PROPERTIES EXECUTIVE CHOICE
SHARE DEFERRAL PLAN FOR TRUSTEES
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Table of Contents
EXHIBIT 10.4
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ARTICLE I. DEFINITIONS.................................................1
1.01. Account(s).......................................................1
1.02. Affiliate........................................................1
1.03. Beneficiary......................................................1
1.04. Benefit..........................................................2
1.05. Board............................................................2
1.06. Change of Control................................................2
1.07. Code.............................................................3
1.08. Committee........................................................3
1.09. Common Shares....................................................3
1.10. Company..........................................................3
1.11. Deferral Election................................................3
1.12. Disability.......................................................3
1.13. Dividend Election................................................3
1.14. Effective Date...................................................3
1.15. Eligible Person..................................................3
1.16. Employer.........................................................3
1.17. ERISA............................................................3
1.18. Incentive Plan...................................................3
1.19. Insolvent; Insolvency............................................3
1.20. Mature Common Shares.............................................4
1.21. Open Enrollment Period...........................................4
1.22. Option...........................................................4
1.23. Option Deferral Election.........................................4
1.24. Participant......................................................4
1.25. Plan.............................................................4
1.26. Plan Administrator...............................................4
1.27. Plan Year........................................................4
1.28. PPT..............................................................4
1.29. Profit Shares....................................................4
1.30. Restricted Shares................................................4
1.31. Restricted Share Deferral Election...............................4
1.32. Share Account....................................................5
1.33. Termination of Service...........................................5
1.34. Unforeseeable Emergency..........................................5
1.35. Value; Valuation.................................................5
ARTICLE II. ELIGIBILITY AND PARTICIPATION...............................5
2.01. Determination of Eligibility.....................................5
2.02. Notice of Eligibility............................................5
2.03. Enrollment in Plan...............................................6
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Table of Contents
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2.04. Minimum Deferral.................................................6
2.05. Irrevocability of Deferral Elections.............................6
2.06. Termination of Participation.....................................6
ARTICLE III. DEFERRAL ELECTIONS..........................................6
3.01. Option Deferral Elections........................................6
3.02. Restricted Share Deferral Elections..............................7
3.03. Dividend Elections...............................................8
3.04. Vesting..........................................................8
3.05. Effect on Compensation and Other Plans...........................8
ARTICLE IV. EMPLOYER CONTRIBUTIONS......................................9
4.01. Discretionary Employer Contributions.............................9
ARTICLE V. ACCOUNTING FOR DEFERRED COMMON SHARES.......................9
5.01. Tracking of Common Shares........................................9
5.02. Use of Third Party Recordkeepers.................................9
5.03. Unfunded Nature of Benefits.....................................10
ARTICLE VI. PAYMENT OF BENEFITS........................................10
6.01. Time of Payment.................................................10
6.02. Distribution of Benefits Following Termination of Service.......10
6.03. Withdrawal of Deferrals Prior to Termination of Service.........11
6.04. Form of Distribution of Benefits................................12
6.05. Transfer of Common Shares Upon Change of Control................13
6.06. Designation of Beneficiary......................................13
6.07. Loans...........................................................14
6.08. Benefit Payment on Disability or Incapacity.....................14
6.09. Suspension of Transfers During Insolvency.......................14
ARTICLE VII. ADMINISTRATION.............................................14
7.01. Powers and Responsibilities of the Company......................14
7.02. Powers and Responsibilities of the Committee....................15
7.03. Committee Procedures............................................16
7.04. Voting of Securities............................................16
7.05. Coordination with Other Executive Choice Plans..................16
7.06. Records and Statements..........................................16
7.07. Payment of Expenses.............................................16
7.08. Benefit Claims Procedure........................................16
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7.09. Claims Review Procedure.........................................17
7.10. Unclaimed Benefits..............................................17
7.11. Indemnification.................................................17
ARTICLE VIII. AMENDMENT AND ADMINISTRATION...............................17
8.01. Amendment.......................................................17
8.02. Termination.....................................................18
ARTICLE IX. MISCELLANEOUS..............................................18
9.01. Limitation of Rights; Employment Relationship...................18
9.02. Limitation on Assignment........................................18
9.03. Accounting Treatment............................................18
9.04. Representations.................................................18
9.05. Severability....................................................18
9.06. Governing Law...................................................18
9.07. Binding Effect..................................................19
9.08. Gender and Number...............................................19
9.09. Mergers, Consolidations, and Transfers..........................19
9.10. Notices.........................................................19
9.11. Binding Effect..................................................19
9.12. Adoption by Affiliates..........................................19
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PRENTISS PROPERTIES EXECUTIVE CHOICE
SHARE DEFERRAL PLAN FOR TRUSTEES
PREAMBLE
WHEREAS, the Prentiss Properties Trust and its Affiliates offer various
nonqualified deferred compensation and incentive programs to members of its
board of trustees; and
WHEREAS, the Company believes that it would be in the best interests of
the Company to provide the members of its board of trustees with additional
options regarding the manner and time of receipt of benefits under existing
programs without affecting the benefits otherwise payable to such persons.
NOW, THEREFORE, on behalf of the Employers, Prentiss Properties
Acquisition Partners, L.P. does hereby adopt the Plan as set forth in the
following pages.
ARTICLE I.
DEFINITIONS
The following terms when used herein shall have the following meaning,
unless a different meaning is clearly required by the context.
1.01. Account(s). "Account(s)" means the separate record of each
Participant's interest in the Plan at any time. Each Participant may have a
Share Account and such other Accounts or subaccounts as the Committee deems
appropriate. Unless and until other Accounts are established, "Account" shall
have the same meaning as "Share Account." The maintenance of Accounts is solely
for the purpose of tracking the number of Common Shares transferable to a
Participant at any time and does not require that amounts deferred by any
Participant be segregated from the amounts deferred by other Participants, that
Common Shares deferred hereunder actually be deposited or maintained in a trust
or otherwise segregated from the Employers' general assets.
1.02. Affiliate. "Affiliate" means any entity under common control
with the Company, within the meaning of Code section 414(b), (c) or (m) and any
"subsidiary" or "parent" corporation (within the meaning of Section 424 of the
Code) of the Company, including an entity that becomes an Affiliate after the
adoption of this Plan, or any other entity that the Committee determines is
otherwise controlled by, in control of, or under common control with the
Company. Without limiting the foregoing, Prentiss Properties Trust, Prentiss
Properties Limited, Inc., and Prentiss Properties Management, L.P. shall be
considered Affiliates.
1.03. Beneficiary. "Beneficiary" means the person(s) or estate
entitled to receive benefits under this Plan after the death of a Participant.
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1.04. Benefit. "Benefit" means as of any specific date, the then
current Value of the Participant's Accounts derived from the Participant's
Deferral Elections and the Value of the vested portion of the Participant's
Accounts derived from Employer contributions (if any) made under Article IV.
1.05. Board. "Board" means the board of trustees of PPT, as
constituted from time to time.
1.06. Change of Control. "Change of Control" means the occurrence of
any one or more of the following events:
(a) PPT enters into any agreement with a person or entity
that involves the transfer of ownership of PPT or of more than fifty
percent (50%) of PPT's total assets or earnings power on a consolidated
basis, as reported in PPT's consolidated financial statements filed with
the Securities and Exchange Commission (including an agreement for the
acquisition of PPT by merger, consolidation, or statutory share
exchange--regardless of whether PPT is intended to be the surviving or
resulting entity after the merger, consolidation, or statutory share
exchange--or for the sale of substantially all of PPT's assets to the
person or entity);
(b) As a direct or indirect result of, or in connection
with, a cash tender or exchange offer, a merger or other business
combination (or any combination of such transactions), the persons who
were members of the Board before such transactions cease to constitute a
majority of the Board, or any successor's board, within two years of the
last such transaction.
(c) Any person or entity is or becomes an "Acquiring
Person." For purposes of the preceding sentence an "Acquiring Person"
means (i) a person who, considered alone or together with all affiliates
and associates of that person or entity, becomes directly or indirectly
the beneficial owner of securities representing at least twenty percent
(20%) of PPT's outstanding securities entitled to vote generally in the
election of the Board, or (ii) a person or entity enters into an
agreement that would result in that person or entity satisfying the
conditions in subsection (i) or, in the case of a grantee employed by an
Affiliate when a person or entity becomes an Acquiring Person, that
would result in that Affiliate's failure to be an Affiliate.
(d) During any period of two consecutive calendar years, the
Continuing Members of the Board cease for any reason to constitute a
majority of the Board. For purposes of the preceding sentence,
"Continuing Member" means any member of the Board, while a member of the
Board and (i) who was a member of the Board prior to the adoption of the
Plan or (ii) whose subsequent nomination or election to the Board was
recommended or approved by a majority of the Continuing Members.
(e) The foregoing provisions of this Section 1.06 shall not
apply to any event or condition that would otherwise constitute a Change
of Control if such event or condition occurs between the Effective Date
and March 1, 2004. Nor shall the continuation after March 1, 2004 of
such event or condition occurring between the
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Effective Date and March 1, 2004 be deemed to constitute a Change of
Control for purposes of the Plan.
1.07. Code. "Code" means the Internal Revenue code of 1986, as
amended, and the regulations adopted thereunder.
1.08. Committee. "Committee" means a committee of two or more persons
appointed by the Company to assist in the administration of the Plan.
1.09. Common Shares. "Common Shares" means the Common Shares of PPT.
1.10. Company. "Company" means Prentiss Properties Acquisition
Partners, L.P., or any successor entity thereto.
1.11. Deferral Election. "Deferral Election" means any one or more of
the Deferral Elections available to Participants under Article III.
1.12. Disability. "Disability" means a physical or mental condition
which, in the opinion of the Committee based upon appropriate medical advice and
examination and in accordance with rules applied consistently to all Eligible
Person, totally and presumably permanently prevents the Participant, from
performing the customary duties of his regular job with the Company.
1.13. Dividend Election. "Dividend Deferral Election" means an
election by the Participant to receive in cash an amount equal to any dividends
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