UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): June 25, 2013 (June 21, 2013)

 

TIER REIT, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Maryland

 

000-51293

 

68-0509956

(State or other jurisdiction of incorporation
or organization)

 

(Commission File Number)

 

 

(I.R.S. Employer

Identification No.)

 

17300 Dallas Parkway, Suite 1010, Dallas, Texas

74248

(Address of principal executive offices)

(Zip Code)

 

(972) 931-4300

(Registrant’s telephone number, including area code)

 

Behringer Harvard REIT I, Inc.

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 1.01.                                         Entry into a Material Definitive Agreement.

 

At meetings of the Compensation Committee of the Board of Directors (the “Committee”) and the Board of Directors (the “Board”) of TIER REIT, Inc., a Maryland corporation (which may be referred to herein as the “Company,” “we,” “our” or “us”) held on June 21, 2013, the Committee and Board adopted a form of Restricted Stock Unit Award Agreement to be used for awards of the Company’s common stock as restricted stock units to each of the Company’s independent directors as part of their annual compensation. The form of Restricted Stock Unit Award Agreement is included as Exhibit 10.1 hereto and is incorporated in this Item 1.01 by reference.

 

Grants awarded pursuant to the form of Restricted Stock Unit Award Agreement will vest 13 months following the grant date, but shares of common stock will not be issued until certain events occur or upon specified dates as set forth in the form of Restricted Stock Unit Award Agreement.

 

Item 5.03.                                         Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

 

On June 21, 2013, the Company filed Articles of Amendment to the Company’s Ninth Articles of Amendment and Restatement with the Maryland State Department of Assessments and Taxation to effect a change of its name from “Behringer Harvard REIT I, Inc.” to “TIER REIT, Inc.” The Articles of Amendment, which were effective upon filing, are included as Exhibit 3.1 hereto and are incorporated in this Item 5.03 by reference.

 

An amendment to the Second Amended and Restated Bylaws of the Company, solely to reflect the change in the Company’s name, is included as Exhibit 3.2 hereto and is incorporated in this Item 5.03 by reference.

 

Item   5.07.                                         Submission of Matters to a Vote of Security Holders.

 

On June 21, 2013, the Company held its annual meeting of stockholders.  At the annual meeting, our stockholders elected the five nominees listed below to serve on our Board of Directors until the next annual meeting of stockholders, and each will continue in office until his successor has been elected and qualified.  The votes cast with respect to each director were as follows:

 

Nominee

 

Votes For

 

Votes Withheld

 

Robert S. Aisner

 

130,571,633

 

21,602,825

 

Charles G. Dannis

 

131,052,371

 

21,122,087

 

M. Jason Mattox

 

130,924,741

 

21,249,717

 

Steven W. Partridge

 

131,195,374

 

20,979,084

 

G. Ronald Witten

 

131,007,325

 

21,067,133

 

 

The stockholders also ratified a non-binding advisory resolution approving the compensation of the Company’s named executive officers.  Stockholders cast 113,414,173 votes for and 26,846,290 against the resolution.  There were 11,913,995 abstentions.

 

The results of the stockholders vote on the frequency of the advisory vote on the compensation of the Company’s named executive officers were as follows:  125,374,312 votes for every year, 5,491,436 votes for every two years and 5,263,671 for every three years.  There were 16,045,039 abstentions.

 



 

Item 7.01 Regulation FD Disclosure

 

On June 21, 2013, the Company issued a press release announcing the change in the Company’s name. A copy of the press release is included as Exhibit 99.1 hereto. The information included in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

 

Item 9.01.                                         Financial Statements and Exhibits.

 

(d)                                  Exhibits:

 

Exhibit No.

 

Description

 

 

 

3.1

 

Articles of Amendment of the Company

 

 

 

3.2

 

Amendment to the Second Amended and Restated Bylaws of the Company

 

 

 

10.1

 

Form of Restricted Stock Unit Award Agreement under the Company’s 2005 Incentive Award Plan

 

 

 

99.1

 

Press release of TIER REIT, Inc., dated June 21, 2013

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

TIER REIT, INC.

 

 

 

 

 

Dated:   June 25, 2013

By:

/s/ Telisa Webb Schelin

 

 

Telisa Webb Schelin

 

 

Senior Vice President — Legal, General
Counsel & Secretary

 

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EXHIBIT INDEX

 

Exhibit No.

 

Description

 

 

 

3.1

 

Articles of Amendment of the Company

 

 

 

3.2

 

Amendment to the Second Amended and Restated Bylaws of the Company

 

 

 

10.1

 

Form of Restricted Stock Unit Award Agreement under the Company’s 2005 Incentive Award Plan

 

 

 

99.1

 

Press release of TIER REIT, Inc., dated June 21, 2013

 

4


Exhibit 3.1

 

BEHRINGER HARVARD REIT I, INC.

 

ARTICLES OF AMENDMENT

 

THIS IS TO CERTIFY THAT:

 

FIRST :  The charter of Behringer Harvard REIT I, Inc., a Maryland corporation (the “Corporation”), is hereby amended by deleting existing Article I in its entirety and substituting in lieu thereof a new article to read as follows:

 

ARTICLE I

 

NAME

 

The name of the corporation is TIER REIT, Inc. (the “Company”).  So far as may be practicable, the business of the Company shall be conducted and transacted under that name.  Under circumstances in which the Company’s Board of Directors determines that the use of the name “TIER REIT, Inc.” is not practicable, it may use any other designation or name for the Company.

 

SECOND :  The amendment to the charter of the Corporation as set forth above has been duly approved by at least a majority of the entire Board of Directors as required by law.  The amendment set forth herein is made without action by the stockholders of the Corporation, pursuant to Section 2-605(a)(1) of the Maryland General Corporation Law.

 

THIRD :  The undersigned acknowledges these Articles of Amendment to be the corporate act of the Corporation and as to all matters or facts required to be verified under oath, the undersigned acknowledges that to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

 

IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment to be signed in its name and on its behalf by its President and Chief Financial Officer and attested to by its Senior Vice President — Legal, General Counsel and Secretary on this 21st day of June, 2013.

 

ATTEST:

 

BEHRINGER HARVARD REIT I, INC.

 

 

 

 

 

 

/s/ Telisa Webb Schelin

 

/s/ Scott W. Fordham

Telisa Webb Schelin

 

Scott W. Fordham

Senior Vice President — Legal,

 

President and Chief Financial Officer

General Counsel and Secretary

 

 

 


Exhibit 3.2

 

AMENDMENT TO

 

THE SECOND AMENDED AND RESTATED

 

BYLAWS

 

OF

 

BEHRINGER HARVARD REIT I, INC.

 

A MARYLAND CORPORATION

 

The Second Amended and Restated Bylaws of Behringer Harvard REIT I, Inc. are hereby amended to replace all references to the name “Behringer Harvard REIT I, Inc.” with the name “TIER REIT, Inc.”

 

Effective as of June 21, 2013

 


Exhibit 10.1

 

TIER REIT, INC.

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

Name of the Grantee: [            ] (the “ Grantee ”)

No. of Restricted Stock Units Awarded: [      ]

Grant Effective Date: [                    ], 20[    ]

 

RECITALS

 

A.                                     The Grantee is a director of TIER REIT, Inc. (the “ Company ”).

 

B.                                     Pursuant to the Company’s 2005 Incentive Award Plan (as amended and supplemented from time to time, the “ Plan ”), the Company hereby grants to the Grantee the number of Restricted Stock Units specified above, subject to the terms and conditions set forth herein.  Each Restricted Stock Unit shall relate to one share of Common Stock of the Company (each, a “ Share ”).  Unless otherwise indicated, capitalized terms used herein but not defined shall have the meanings given to those terms in the Plan.

 

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

 

1.                                       Grant of Restricted Stock Units .  The Company hereby grants the Grantee the number of Restricted Stock Units specified above (the “ Award ”), subject to the following terms and conditions and subject to the provisions of the Plan.  The Plan is hereby incorporated herein by reference as though set forth herein in its entirety.

 

2.                                       Restrictions on Transfer of Award .  This Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of by the Grantee, and any Shares issuable with respect to the Award may not be sold, transferred, pledged, assigned or otherwise encumbered or disposed of until (i) the Restricted Stock Units have vested as provided in Section 3 of this Agreement and (ii) Shares have actually been issued to the Grantee pursuant to Section 5 and in accordance with the terms of the Plan and this Agreement.

 

3.                                       Vesting of Restricted Stock Units .  Except as otherwise provided below, the restrictions and conditions of Section 2(i) of this Agreement shall lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains in service as a member of the Board on such Dates.  If a series of Vesting Dates is specified, then the restrictions and conditions in Section 2 shall lapse only with respect to the number of Restricted Stock Units specified as vested on such date.

 

Incremental Number of
Restricted Stock Units Vested

 

Vesting Date

 

 

 

100%

 

[13 months after Grant Effective Date]

 



 

Notwithstanding any other term or provision of this Agreement, upon (A) termination of the Grantee’s service as a Director as a result of the Grantee’s death or disability or (B) a Change of Control (regardless of whether or not a termination of the Grantee’s service has occurred), then all Restricted Stock Units shall immediately vest.  The administrator may at any time accelerate the vesting schedule specified in this Section 3.

 

4.                                       Termination of Service .  Except as otherwise provided herein, if the Grantee’s service with the Company and its Subsidiaries terminates for any reason prior to the satisfaction of the vesting conditions set forth in Section 3, above, any Restricted Stock Units that have not vested as of such date shall automatically and without notice terminate and be forfeited, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such unvested Restricted Stock Units.

 

5.                                       Issuance of Shares; Forfeiture .  The Company shall issue to the Grantee the number of shares of Stock equal to the aggregate number of Restricted Stock Units that have vested pursuant to Section 3 of this Agreement and have not been forfeited pursuant to Section 4 of this Agreement on the earliest to occur of the following:

 

(i)                                      the Grantee’s “separation from service” from the Company (within the meaning of Section 409A of the Code and the regulations issued thereunder) for any reason other than Cause (as defined in the Plan), provided that, if the Grantee’s separation from service is for Cause (as defined in the Plan), any Restricted Stock Units (whether or not vested) that have not yet been settled in Shares shall be immediately forfeited;

 

(ii)                                   a Change of Control which also constitutes a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5);

 

(iii)                                the Grantee’s death; and

 

(iv)                               [the [    ] anniversary of the Grant Effective Date specified above] or [a specific date(s) chosen by the Grantee].

 

6.                                       Rights as Stockholder; Dividend Equivalent Right . Until such time as Shares have been issued to the Grantee pursuant to Section 5, and except as set forth in this Section 6 regarding dividends and dividend equivalents, the Grantee shall not have any rights as a holder of the Shares underlying this Award including, but not limited, to voting rights.  Notwithstanding the foregoing, until such time as Shares are issued to the Grantee pursuant to the terms of Section 5, on each dividend date of the Company, the Company shall pay to the Grantee an amount in cash equal to the amount of cash dividend or other distribution payable per Share multiplied by the number of Restricted Stock Units held by the Grantee, whether or not vested.

 

7.                                       Incorporation of Plan; Interpretation by Committee .  This Agreement is subject in all respects to the terms, conditions, limitations and definitions contained in the Plan.  In the event of any discrepancy or inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall control.  The Committee may make such rules and regulations and establish such procedures for the administration of this Agreement as it deems appropriate.  Without limiting the generality of the foregoing, the Committee may interpret the Plan and this Agreement, with such interpretations to be conclusive and binding on all persons and otherwise

 

2



 

accorded the maximum deference permitted by law, provided that the Committee’s interpretation shall not be entitled to deference on and after a Change of Control except to the extent that such interpretations are made exclusively by members of the Committee who are individuals who served as Committee members before the Change of Control and take any other actions and make any other determinations or decisions that it deems necessary or appropriate in connection with the Plan, this Agreement or the administration or interpretation thereof.  In the event of any dispute or disagreement as to interpretation of the Plan or this Agreement or of any rule, regulation or procedure, or as to any question, right or obligation arising from or related to the Plan or this Agreement, the decision of the Committee, except as provided above, shall be final and binding upon all persons.

 

[Note: If Award is for a member of the Compensation Committee, all references to “Committee” in the Agreement need to be changed to “Board”.]

 

8.                                       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 shares of Restricted Stock Units granted hereunder, the Grantee will pay to the Company or, if appropriate, any of its Subsidiaries, 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.  Notwithstanding the foregoing, the Grantee’s required minimum tax withholding obligation shall be satisfied by withholding a number of shares of Restricted Stock Units with an aggregate Fair Market Value equal to such minimum tax withholding obligation.

 

9.                                       Section 409A of the Code .  Anything in this Agreement to the contrary notwithstanding, if at the time of the Grantee’s separation from service within the meaning of Section 409A of the Code, the Company determines that the Grantee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent the shares of Stock that the Grantee becomes entitled to receive under this Agreement on account of the Grantee’s separation from service would be considered deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such shares of Stock shall not be issued until the date that is the earlier of (a) six months and one day after the Grantee’s separation from service, or (b) the Grantee’s death.  The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

 

10.                                No Obligation to Continue as a Director .  Neither the Plan nor this Award confers upon the Grantee any rights with respect to continuance as a Director.

 

11.                                Amendment; Modification .  This Agreement may only be modified or amended in a writing signed by the parties hereto, provided that the Grantee acknowledges that the Plan may be amended or discontinued in accordance with Section 12 thereof and that this Agreement may be amended or canceled by the Committee, on behalf of the Company, for the purpose of satisfying changes in law or for any other lawful purpose, so long as no such action shall adversely affect the Grantee’s rights under this Agreement without the Grantee’s written consent.  No promises, assurances, commitments, agreements, undertakings or representations, whether

 

3



 

oral, written, electronic or otherwise, and whether express or implied, with respect to the subject matter hereof, have been made by the parties which are not set forth expressly in this Agreement.  The failure of the Grantee or the Company to insist upon strict compliance with any provision of this Agreement, or to assert any right the Grantee or the Company, respectively, may have under this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

 

12.                                Complete Agreement .  This Agreement (together with those agreements and documents expressly referred to herein, for the purposes referred to herein) embodies the complete and entire agreement and understanding between the parties with respect to the subject matter hereof, and supersede any and all prior promises, assurances, commitments, agreements, undertakings or representations, whether oral, written, electronic or otherwise, and whether express or implied, which may relate to the subject matter hereof in any way.

 

13.                                No Limit on Other Compensation Arrangements .  Nothing contained in this Agreement shall preclude the Company from adopting or continuing in effect other or additional compensation plans, agreements or arrangements, and any such plans, agreements and arrangements may be either generally applicable or applicable only in specific cases or to specific persons.

 

14.                                Severability .  If any term or provision of this Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or under any applicable law, rule or regulation, then such provision shall be construed or deemed amended to conform to applicable law (or if such provision cannot be so construed or deemed amended without materially altering the purpose or intent of this Agreement and the grant of shares of Restricted Stock Units hereunder, such provision shall be stricken as to such jurisdiction and the remainder of this Agreement and the award hereunder shall remain in full force and effect).

 

15.                                Law Governing .  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS.

 

16.                                Headings .  Section, paragraph and other headings and captions are provided solely as a convenience to facilitate reference.  Such headings and captions shall not be deemed in any way material or relevant to the construction, meaning or interpretation of this Agreement or any term or provision hereof.

 

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

 

18.                                Counterparts .  This Agreement may be executed in two or more separate counterparts, each of which shall be an original, and all of which together shall constitute one and the same agreement.

 

4



 

19.                                Successors and Assigns .  The rights and obligations created hereunder shall be binding on the Grantee and his heirs and legal representatives and on the successors and assigns of the Company.

 

[Signature Page Follows]

 

5



 

IN WITNESS WHEREOF, the undersigned have caused this Award to be executed on the [                          ] day of [                ], 20[    ].

 

 

TIER REIT, INC.

 

 

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

 

 

 

 

GRANTEE:

 

 

 

 

 

Name:

 

 

Address:

 

 

6


Exhibit 99.1

 

 

Behringer Harvard REIT I, Inc. Announces New Name

 

DALLAS, Texas, June 21, 2013 — Behringer Harvard REIT I, Inc., a Dallas-based real estate investment trust, has announced a new name — TIER REIT, Inc.

 

TIER REIT owns 44 commercial office properties comprising 19.1 million square feet throughout the United States with significant assets in Houston, Austin and Dallas/Ft. Worth, Texas; Chicago, Illinois; Philadelphia, Pennsylvania; Washington, D.C.; Charlotte, North Carolina and select other markets.  The company is headquartered at 17300 Dallas Parkway, Dallas, Texas, and has 55 employees with offices located in Dallas, Atlanta, Chicago and Louisville.

 

Beginning in 2008, Behringer Harvard, the company’s former sponsor, began assembling TIER REIT’s current management team with individuals possessing significant REIT, office and public company experience to focus exclusively on the company.  In September 2012, the company internalized this management team making TIER REIT a self-managed, independent company, resulting in substantial cost savings.

 

“We are excited to begin this new chapter for the company as TIER REIT,” said president Scott Fordham. “The internalization was a major milestone for the company, and as part of it, we put significant thought into who we are and how we want to approach our key stakeholders going forward.”  The name TIER was chosen to mirror the acronym REIT and symbolizes how the company reflects the goals and objectives of its tenants and stockholders in everything it does.

 

TIER REIT is focused on leveraging its expertise, long-term focus and innovative tools to create exceptional working environments for its tenants and deliver value to its stockholders.  “Following the internalization, we believe that our new name, together with $3 billion in office assets, will enhance our ability to maximize long-term stockholder value,” said Mr. Fordham.

 



 

About TIER REIT, Inc.

 

TIER REIT, Inc. is a Dallas, Texas-based real estate investment trust focused on providing quality, attractive, well-managed commercial office properties in dynamic markets throughout the United States, including Houston, Austin and Dallas/Ft. Worth, Texas; Chicago, Illinois; Philadelphia, Pennsylvania; Washington, D.C.; Charlotte, North Carolina and select other markets.  For more information on TIER REIT, please visit tierreit.com or call 972.931.4300.