Contract
Exhibit 10.8
PERFORMANCE-BASED RESTRICTED SHARE UNIT AWARD AGREEMENT
PHYSICIANS REALTY TRUST
2013 EQUITY INCENTIVE PLAN
1. Grant of Award. Pursuant to the Physicians Realty Trust 2013 Equity Incentive Plan (the
“Plan”) for Employees, Consultants, and Outside Trustees of Physicians Realty Trust, a Maryland real
estate investment trust (the “Company”), the Company grants to
_________________________________
(the “Participant”)
an Award of Restricted Share Units in accordance with Section 6.5 of the Plan. The number of Restricted
Share Units awarded under this Restricted Share Unit Award Agreement (the “Agreement”) is
_____________________ (__________) units (the “Awarded Units”). Each Restricted Share Unit
represents the right to receive one Common Share if the Restricted Share Unit becomes vested and
nonforfeitable in accordance with Sections 3 and 4 of this Agreement. The “Date of Grant” of this Award
is _____________, 20__. The Participant shall have no rights as a shareholder of the Company, no
dividend rights and no voting rights with respect to the Restricted Share Units or the Common Shares
underlying the Restricted Share Units unless and until the Restricted Share Units become vested and
nonforfeitable and such Common Shares are delivered to the Participant in accordance with Section 6 of
this Agreement. The Participant is not required to pay any cash consideration for the grant of the
Restricted Share Units.
2. Subject to Plan. This Agreement is subject to the terms and conditions of the Plan, and
the terms of the Plan shall control; provided that, in the event of any conflict among this Agreement, the
Plan and an Employment Agreement in effect between the Company and the Participant (the
“Employment Agreement”), the terms of the Employment Agreement shall control to the extent that it
results in accelerated vesting of the Restricted Share Units, and it shall not result in a delay of any vesting
or in any non-vesting of any Restricted Share Units that otherwise would occur under the terms of the
standard vesting provisions contained in Sections 3 and 4(b) and (c) of this Agreement. The capitalized
terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan.
This Agreement is subject to any rules promulgated pursuant to the Plan by the Board or the Committee
and communicated to the Participant in writing.
3. Vesting. The Participant’s rights and interest in the Awarded Units shall vest as set forth
in Exhibit A.
4. Forfeiture of Awarded Units.
a. In General. Except as otherwise provided in this Section 4, or the Employment
Agreement (if applicable), Awarded Units (and related dividend equivalents) that are not vested
in accordance with Section 3 shall be forfeited on the date of the Participant’s Termination of
Service. Upon forfeiture, all of the Participant’s rights and interest with respect to the forfeited
Awarded Units (and related dividend equivalents) shall cease and terminate, without any further
obligations on the part of the Company.
b. Death or Total and Permanent Disability. In the event that the Participant’s
Termination of Service is due to death or Total and Permanent Disability at a time that the
Participant’s Awarded Units have not yet vested, a pro rata portion of the Participant’s Awarded
Units shall vest and become nonforfeitable as follows: First, the Company shall determine the
actual level of the performance goal achieved (such determination may be by means of a good
faith estimate) as of the Company’s fiscal quarter-end coincident with or next preceding the
Participant’s Termination of Service (or, if the Participant’s Termination of Service occurs in the
first fiscal quarter of the Performance Period, then the Company’s fiscal quarter-end coincident
with or next following the Participant’s Termination of Service) and calculating, on a preliminary
basis, the resulting number of Awarded Units that would have become vested and nonforfeitable
(based on such calculation) assuming the determination date was the end of the Performance
Period and the Committee had certified such level of achievement. Second, a pro rata portion of
that number of Awarded Units will be calculated by multiplying that number by a fraction, the
numerator of which is the number of months from the Date of Grant through the date of
Termination of Service (rounding any partial month to the next whole month) and the
denominator of which is 36. No fractional Common Shares shall be issued, and subject to the
preceding limitations on the number of related Common Shares available under this Agreement
(that is, 300% of the related Common Shares), any fractional Common Share that would have
resulted from the foregoing calculations shall be rounded up to the next whole Common Share.
Any Awarded Units (and related dividend equivalents) that were unvested at the date of
Termination of Service and that exceed the pro rata portion of the Awarded Units that become
vested and nonforfeitable under this Section 4(b) shall be forfeited.
c. Retirement. In the event that the Participant’s Termination of Service is due to
Retirement at a time that the Participant’s Awarded Units have not yet vested, the greater of: (i)
100% of the Participant’s Awarded Units or (ii) the portion of the Participant’s Awarded Units
that would otherwise vest and become nonforfeitable based on the actual level of the performance
goal achieved, shall vest and become nonforfeitable. The Company shall determine the actual
level of the performance goal achieved (such determination may be by means of a good faith
estimate) immediately prior to the Participant’s Termination of Service and shall calculate the
resulting number of Awarded Units that would have become vested and nonforfeitable (based on
such calculation) assuming the determination date was the date of the Participant’s Termination
of Service and the Committee had certified such level of achievement. No fractional Common
Shares shall be issued, and subject to the preceding limitations on the number of related Common
Shares available under this Agreement (that is, 300% of the related Common Shares), any
fractional Common Share that would have resulted from the foregoing calculations shall be
rounded up to the next whole Common Share.
5. Restrictions on Transfer of Awarded Units. Subject to the provisions of the Plan and the
terms of this Agreement, the Participant shall not be permitted to sell, transfer, pledge, hypothecate,
margin, assign or otherwise encumber any of the Awarded Units, related rights to dividend equivalents or
any other rights relating thereto, and the Awarded Units, related rights to dividend equivalents and other
rights relating thereto, shall not be subject to execution, attachment, lien, or similar process; provided,
however, the Participant will be entitled to designate a beneficiary or beneficiaries to receive any
settlement in respect of the Awarded Units upon the death of the Participant, in the manner and to the
extent permitted by the Committee. Any purported transfer or other transaction not permitted under this
Section 5 shall be deemed null and void.
6. Xxxxxx and Manner of Settlement of Awarded Units.
a. Settlement Timing. The timing of settlement of Awarded Units is set forth in
Exhibit B.
b. Manner of Settlement. The Company may make delivery of Common Shares in
settlement of Awarded Units by either delivering certificates representing such Common Shares
to the Participant (if requested by the Participant in accordance with Section 6.3(a) of the Plan
and the Company has elected, in its sole discretion, to issue certificates (as opposed to electronic
book entry form with respect to its Common Shares)) or by registering the Common Shares in the
Participant’s name. In no event will the Company issue fractional Common Shares.
c. Effect of Settlement. Neither the Participant nor any of the Participant’s
successors, heirs, assigns or personal representatives shall have any further rights or interests in
any Awarded Units that have been paid and settled. Although a settlement date or range of dates
for settlement are specified above, the Company retains discretion to determine the settlement
date, and no Participant or beneficiary of a Participant shall have any claim for damages or loss
by virtue of the fact that the market price of Common Shares was higher on a given date upon
which settlement could have been made as compared to the market price on or after the actual
settlement date (any claim relating to settlement will be limited to a claim for delivery of
Common Shares and related dividend equivalents).
7. Legend. The following legend shall be inserted on a certificate, if issued, evidencing
Common Shares issued under the Plan if the Common Shares were not issued in a transaction registered
under the applicable federal and state securities laws:
“Common Shares represented by this certificate have been acquired by
the holder for investment and not for resale, transfer or distribution, have
been issued pursuant to exemptions from the registration requirements of
applicable state and federal securities laws, and may not be offered for
sale, sold or transferred other than pursuant to effective registration
under such laws, or in transactions otherwise in compliance with such
laws, and upon evidence satisfactory to the Company of compliance with
such laws, as to which the Company may rely upon an opinion of
counsel satisfactory to the Company.”
8. Dividend Equivalents. During the period beginning on the Date of Grant and ending on
the date that Common Shares are issued in settlement of Awarded Units, the Participant will accrue
dividend equivalents equal to the cash dividend or distribution that would have been paid had the
Awarded Unit been an issued and outstanding Common Share on the record date for the dividend or
distribution. Such accrued dividend equivalents (i) will vest and become payable upon the same terms
and at the same time of settlement as the Awarded Units to which they relate; (ii) will be payable with
respect to the total number of Awarded Units that become vested and nonforfeitable; and (iii) will be
denominated and payable solely in cash. Dividend equivalent payments, at settlement, will be net of
applicable federal, state, local and social insurance withholding taxes (subject to Section 22 of this
Agreement).
9. Adjustment to Number of Awarded Units. The number of Awarded Units shall be
subject to adjustment in accordance with Articles 11 through 13 of the Plan. Any such adjustment shall
be made taking into account any crediting of cash dividend equivalents to the Participant under Section 8
in connection with such transaction or event. Restricted Share Units credited to the Participant as a result
of an adjustment shall be subject to the same forfeiture and settlement terms as applied to the related
Awarded Units prior to the adjustment.
10. Specific Performance. The parties acknowledge that remedies at law will be inadequate
remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable
by specific performance. The remedy of specific performance shall be cumulative of all of the rights and
remedies at law or in equity of the parties under this Agreement.
11. Participant’s Acknowledgments. The Participant acknowledges that a copy of the Plan
has been made available for his review by the Company, and represents that he is familiar with the terms
and provisions thereof, and hereby accepts this Award subject to all the terms and provisions thereof. The
Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the
Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement.
The Participant acknowledges and agrees that (i) sales of Common Shares delivered in settlement of the
Awarded Units will be subject to the Company’s policies regulating trading by Employees, Consultants
and Outside Trustees, including any applicable “blackout” or other designated periods in which sales of
Common Shares are not permitted, and (ii) Common Shares delivered in settlement will be subject to any
recoupment or “clawback” policy applied with prospective or retroactive effect.
12. Law Governing. This Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of Maryland (excluding any conflict of laws rule or principle of
Maryland law that might refer the governance, construction, or interpretation of this agreement to the
laws of another state).
13. No Right to Continue Service or Employment. Nothing herein shall be construed to
confer upon the Participant the right to continue in the employ or to provide services to the Company or
any Subsidiary, whether as an Employee or as a Consultant or as an Outside Trustee, or interfere with or
restrict in any way the right of the Company or any Subsidiary to discharge the Participant as an
Employee, Consultant, or Outside Trustee at any time.
14. Legal Construction. In the event that any one or more of the terms, provisions, or
agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be
invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or unenforceable term,
provision, or agreement shall not affect any other term, provision, or agreement that is contained in this
Agreement and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable
term, provision, or agreement had never been contained herein.
15. Covenants and Agreements as Independent Agreements. Each covenant and agreement
that is set forth in this Agreement shall be construed as a covenant and agreement independent of any
other provision of this Agreement. The existence of any claim or cause of action of the Participant
against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to
the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.
16. Entire Agreement. This Agreement, together with the Plan and the Employment
Agreement (if applicable), supersede any and all other prior understandings and agreements, either oral or
in writing, between the parties with respect to the subject matter hereof and constitute the sole and only
agreements between the parties with respect to the said subject matter. All prior negotiations and
agreements between the parties with respect to the subject matter hereof are merged into this Agreement.
Each party to this Agreement acknowledges that no representations, inducements, promises, or
agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party,
which are not embodied in this Agreement or the Plan or the Employment Agreement (if applicable) and
that any agreement, statement or promise that is not contained in this Agreement or the Plan or the
Employment Agreement (if applicable) shall not be valid or binding or of any force or effect.
17. Parties Bound. The terms, provisions, and agreements that are contained in this
Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective
heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the
limitation on assignment expressly set forth herein.
18. Modification. No change or modification of this Agreement shall be valid or binding
upon the parties unless the change or modification is in writing and signed by the parties.
Notwithstanding the preceding sentence, the Company may amend the Plan or this Agreement to the
extent permitted by the Plan.
19. Headings. The headings that are used in this Agreement are used for reference and
convenience purposes only and do not constitute substantive matters to be considered in construing the
terms and provisions of this Agreement.
20. Gender and Number. Words of any gender used in this Agreement shall be held and
construed to include any other gender, and words in the singular number shall be held to include the
plural, and vice versa, unless the context requires otherwise.
21. Notice. Any notice required or permitted to be delivered hereunder shall be deemed to be
delivered only when actually received by the Company or by the Participant, as the case may be, at the
addresses set forth below, or at such other addresses as they have theretofore specified by written notice
delivered in accordance herewith:
a. Notice to the Company shall be addressed and delivered as follows:
Physicians Realty Trust
000 X. Xxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxx, Xxxxxxxxx 00000
Attn: Corporate Secretary
Fax: (000) 000-0000
Notice to the Participant shall be addressed and delivered as set forth on the
signature page.
22. Tax Requirements. The Participant is hereby advised to consult immediately with his
or her own tax advisor regarding the tax consequences of this Agreement. The Company or, if
applicable, any Subsidiary (for purposes of this Section 22, the term “Company” shall be deemed to
include any applicable Subsidiary) shall have the right to deduct from all amounts paid in cash or other
form in connection with the Plan, any federal, state, local, or other taxes required by law to be withheld in
connection with this Award. The Company may, in its sole discretion, also require the Participant
receiving Common Shares in settlement of Awarded Units pay the Company the amount of any taxes that
the Company is required to withhold in connection with the Participant’s income arising with respect to
this Award. Such payments shall be required to be made when requested by the Company and may be
required to be made prior to the delivery of any certificate representing Common Shares, if such
certificate is requested by the Participant in accordance with Section 6.3(a) of the Plan. Such payment
may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the
issuance of fractional shares under (iii) below) the required tax withholding obligations of the Company;
(ii) if the Company, in its sole discretion, so consents in writing, the actual delivery by the Participant to
the Company of Common Shares, other than (A) Restricted Shares, or (B) Common Shares that the
Participant has acquired from the Company within six (6) months prior thereto, which shares so delivered
have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares
under (iii) below) the required tax withholding payment; (iii) if the Company, in its sole discretion, so
consents in writing, the Company’s withholding of a number of shares to be delivered upon the vesting of
this Award, which shares so withheld have an aggregate Fair Market Value that equals (but does not
exceed) the required tax withholding payment; or (iv) any combination of (i), (ii), or (iii). The Company
may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by
the Company to the Participant.
23. REIT Status. This Agreement shall be interpreted and construed in a manner consistent
with the Company’s status as a real estate investment trust.
24. Unfunded Plan. The Participant acknowledges and agrees that any rights of the
Participant to the Participant’s Awarded Units and related dividend equivalents and any other related
rights shall constitute bookkeeping entries on the books of the Company and shall not create in the
Participant any right to or claim against any specific assets of the Company or any Subsidiary, nor result
in the creation of any trust or escrow account for the Participant. With respect to the Participant’s
entitlement to any payment hereunder, the Participant shall be a general creditor of the Company.
25. Code Section 409A. Payments made pursuant to this Agreement are intended to be
exempt from, or to otherwise comply with, Section 409A of the Code and the Treasury regulations and
guidance issued thereunder (collectively, “Code Section 409A”). Accordingly, other provisions of the
Plan or this Agreement notwithstanding, the provisions of this Section 25 will apply in order that the
Awarded Units, and related dividend equivalents and any other related rights, will be exempt from or
otherwise comply with Code Section 409A. In addition, the Company and the Committee reserve the
right, to the extent the Company or the Committee deems necessary or advisable in its sole discretion, to
unilaterally amend or modify the Plan and/or this Agreement to ensure that all Awarded Units, and related
dividend equivalents and any other related rights, are exempt from or otherwise comply, and in operation
comply, with Code Section 409A (including, without limitation, the avoidance of penalties thereunder).
Other provisions of the Plan and this Agreement notwithstanding, the Company makes no representations
that the Awarded Units, and related dividend equivalents and any other related rights, will be exempt
from or avoid any penalties that may apply under Code Section 409A, makes no undertaking to preclude
Code Section 409A from applying to the Awarded Units and related dividend equivalents and any other
related rights, and will not indemnify or provide a gross up payment to a Participant (or his beneficiary)
for any taxes, interest or penalties imposed under Code Section 409A. The settlement of Awarded Units
that constitute nonqualified deferred compensation within the meaning of Code Section 409A (“409A
Awarded Units”) may not be accelerated by the Company except to the extent permitted under Code
Section 409A. The Company may, however, accelerate the vesting of 409A Awarded Units, without
changing the settlement terms of such 409A Awarded Units. In the case of any settlement of 409A
Awarded Units during a specified period following any date triggering a right to settlement, the
Participant shall have no influence on any determination as to the tax year in which the settlement will be
made. Notwithstanding any other provision in this Agreement, if the Participant is a “specified
employee” for purposes of Code Section 409A as of the date of the Participant’s Termination of Service,
then to the extent any amount payable under this Agreement (i) constitutes the payment of nonqualified
deferred compensation, within the meaning of Code Section 409A, (ii) is payable upon the Participant’s
Termination of Service for a reason other than death, and (iii) under the terms of this Agreement would be
payable prior to the six-month anniversary of the Participant’s Termination of Service, such payment
shall be delayed and paid to the Participant on the day that is six months and one day following the
Participant’s Termination of Service or, if earlier, within ninety (90) days following the Participant’s
death.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer, and the Participant, to evidence his or her consent and approval of all the terms hereof,
has duly executed this Agreement, as of the date specified in Section 1 hereof.
COMPANY:
PHYSICIANS REALTY TRUST
By:
Name:
Title:
PARTICIPANT:
[____________]
Signature
Name:
Address: