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): January 26, 2016

 

TIER REIT, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Maryland

 

001-37512

 

68-0509956

(State or other jurisdiction
of incorporation or
organization)

 

(Commission File Number)

 

(I.R.S. Employer
Identification No.)

 

5950 Sherry Lane, Suite 700, Dallas, Texas

75225

(Address of principal executive offices) (Zip Code)

 

(972) 483-2400
(Registrant’s telephone number, including area code)

 

None

(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 5.02      Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

(e)           Approval of TIER REIT, Inc. Long-Term Incentive Program

 

On January 26, 2016, the Compensation Committee (the “Compensation Committee”) of the Board of Directors of TIER REIT, Inc. (the “Company”) approved the general terms of the Company’s Long-Term Incentive Program (the “Program”), a multi-year performance-based and time-based equity compensation program.  The purpose of the Program is to further align the interests of the Company’s stockholders with those of management by encouraging the Company’s executive officers to create stockholder value in a pay-for-performance structure.

 

Under the Program, 60% of a participant’s annual equity award will be in the form of restricted stock units (“RSUs”) that are subject to performance-based vesting over a three-year period, and 40% of a participant’s annual equity award will be in the form of shares of restricted stock that are subject to time-based vesting over a three-year period with the first vesting for awards granted in 2016 to occur on December 30, 2016.

 

The performance-based RSUs are subject to vesting based on the Company’s annualized total return to stockholders (“TSR”) over a three-year performance measurement period on both an absolute and relative basis.  For example, the performance measurement period for RSUs granted in 2016 will begin on January 1, 2016 and continue through December 31, 2018.  The vesting of one-third of the RSU award will be based on the Company achieving a predetermined absolute TSR, the vesting of one-third of the RSU award will be based on the Company’s TSR relative to the TSR of the constituent companies of the NAREIT Office Index (unweighted), and the vesting of one-third of the RSU award will be based on the Company’s TSR relative to the TSR of a select peer group of companies.

 

With respect to each of the three metrics described above, the number of RSUs that vest over a performance measurement period will be based on a predetermined threshold, target and maximum level of performance of the Company’s TSR determined by the Compensation Committee at the time of each RSU grant.  The RSUs granted annually under the Program will not vest if the Company’s TSR during the performance measurement period does not meet the minimum thresholds determined by the Compensation Committee for such grant.  The number of RSUs that vest if performance is between the threshold and target levels or between the target and maximum levels with respect to any of the metrics described above will be determined based on linear interpolation.

 

After the performance measurement period, the Company will issue to participants a number of shares of common stock of the Company under the Company’s 2015 Equity Incentive Plan based on the number of RSUs that vested.  In addition, participants would receive additional shares to cover the dividends that would have been paid with respect to the vested RSUs if the RSUs were outstanding shares during the performance period and prior to the issuance date of the shares.

 

All determinations, interpretations and assumptions relating to the vesting and calculation of the performance awards will be made by the Compensation Committee.

 

In connection with the approval of the Program, the Compensation Committee also approved the form of Restricted Stock Unit Award Agreement with respect to awards under the Program (the “Award Agreement”), which updates the form of Restricted Unit Award Agreement previously filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on December 3, 2015.  The Award Agreement is attached hereto as Exhibit 10.1 and incorporated herein by reference.  The summary of the Program set forth above is qualified in its entirety by reference to the Award Agreement.

 

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Amendment to Employment Agreement with James E. Sharp

 

Effective as of January 26, 2016, the Company and Tier Operating Partnership LP, the Company’s operating partnership, entered into a Fourth Amendment to Employment Agreement with James E. Sharp (the “Amendment”).  The Amendment provides that Mr. Sharp’s target annual cash incentive award will be 50% of his then-current base salary and Mr. Sharp’s target annual long-term equity incentive award will be 50% of his combined then-current base salary and target annual cash incentive compensation attributable to such calendar year.  The foregoing description of the Amendment is qualified in its entirety by reference to the Amendment, which is attached hereto as Exhibit 10.2 and incorporated herein by reference.

 

Item 9.01.                                         Financial Statements and Exhibits.

 

(d)           Exhibits

 

Exhibit No.

 

Description

 

 

 

10.1

 

Form of Restricted Stock Unit Award Agreement with respect to performance-based vesting under the TIER REIT, Inc. 2015 Equity Incentive Plan

 

 

 

10.2

 

Fourth Amendment to Employment Agreement, effective as of January 26, 2016, by and between TIER REIT, Inc. and Tier Operating Partnership LP and James E. Sharp

 

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SIGNATURE

 

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

 

 

TIER REIT, INC.

 

 

 

 

Date: January 26, 2016

By:

/s/ Telisa Webb Schelin

 

 

Telisa Webb Schelin

 

 

Chief Legal Officer, Executive Vice President

 

 

and Secretary

 

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Exhibit Index

 

Exhibit No.

 

Description

 

 

 

10.1

 

Form of Restricted Stock Unit Award Agreement with respect to performance-based vesting under the TIER REIT, Inc. 2015 Equity Incentive Plan

 

 

 

10.2

 

Fourth Amendment to Employment Agreement, effective as of January 26, 2016, by and between TIER REIT, Inc. and Tier Operating Partnership LP and James E. Sharp

 

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Exhibit 10.1

 

TIER REIT, INC.

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

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

Total number of Restricted Stock Units at 100% Attainment:  [         ] (the “ Target Award ”)

Absolute TSR Target: [         ]

Index Relative TSR Target: [         ]

Peer Relative TSR Target: [         ]

Baseline Value: [         ]

Grant Effective Date: [         ], 20[     ]

 

RECITALS

 

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

 

B.                                     Pursuant to the Company’s 2015 Equity Incentive Plan (as may be 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 6 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 as follows:

 

(i)                                      The Administrator shall determine during the first 60 days following the end of the Performance Period the number of Restricted Stock Units that shall vest on account of the Company’s Annualized TSR Percentage in accordance with the following table:

 



 

Annualized TSR Percentage

 

Percentage of
Absolute TSR Target Vested

 

 

 

 

 

Greater than or equal to [    ]%
but less than [    ]%

 

50

%

 

 

 

 

Greater than or equal to [    ]%
but less than [    ]%

 

100

%

 

 

 

 

Greater than or equal to [    ]%

 

200

%

 

In the event that the Annualized TSR Percentage shall fall between two levels in the above table, linear interpolation shall be used to determine such number of vested Restricted Stock Units.

 

(ii)                                   The Administrator shall determine during the first 60 days following the end of the Performance Period the number of Restricted Stock Units that shall vest on account of the Company’s Index Relative TSR Return in accordance with the following table:

 

Index Relative TSR Return

 

Percentage of
Index Relative TSR Target Vested

 

 

 

 

 

[    ] Percentile or higher

 

50

%

 

 

 

 

[    ] Percentile or higher

 

100

%

 

 

 

 

[    ] Percentile or higher

 

200

%

 

In the event that the Index Relative TSR Return shall fall between two levels in the above table, linear interpolation shall be used to determine such number of vested Restricted Stock Units.

 

(iii)                                The Administrator shall determine during the first 60 days following the end of the Performance Period the number of Restricted Stock Units that shall vest on account of the Company’s Peer Relative TSR Return in accordance with the following table:

 

Peer Relative TSR Return

 

Percentage of
Peer Relative TSR Target Vested

 

 

 

 

 

[    ] Percentile or higher

 

50

%

 

 

 

 

[    ] Percentile or higher

 

100

%

 

 

 

 

[    ] Percentile or higher

 

200

%

 

In the event that the Peer Relative TSR Return shall fall between two levels in the above table, linear interpolation shall be used to determine such number of vested Restricted Stock Units.

 

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(iv)                               In the event that a Sale Event (as defined in the Plan) occurs prior to the end of the Performance Period, the Grantee will be deemed to have earned the number of Restricted Stock Units based on the attainment level resulting from the Annualized TSR Percentage, Index Relative TSR Return and Peer Relative TSR Return, each calculated from the first day of the Performance Period through the end of the calendar month immediately preceding the date of the Sale Event pursuant to Sections 3(i), 3(ii) and 3(iii) above, multiplied by (a) in the event such Sale Event is consummated prior to the one-year anniversary of [           ], 20[     ], a fraction, the numerator of which shall be the number of calendar days from [           ], 20[     ] to the date of the Sale Event and the denominator of which shall be 365, and (b) in the event such Sale Event is consummated on or after the one-year anniversary of [           ], 20[     ], the number one.  All such earned Restricted Stock Units shall become fully vested upon the consummation of the Sale Event.  The foregoing treatment supersedes the treatment of performance awards upon a Sale Event in the Grantee’s Employment Agreement.

 

4.                                       Adjustments .  Without duplication with the provisions of Section 3 of the Plan, 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 shares of Common Stock of the Company or a transaction similar thereto, (ii) any stock dividend, stock split, reverse stock split, stock combination, reclassification, recapitalization, or other similar change in the capital structure of the Company, or any distribution to holders of Stock other than ordinary cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the Administrator necessitates action by way of adjusting the terms of this Award, then and in that event, the Administrator shall take such action as shall be necessary in the discretion of the Administrator to maintain the Grantee’s rights hereunder.

 

5.                                       Termination of Service .

 

(i)                                      Except as otherwise provided herein, if the Grantee’s employment 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.

 

(ii)                                   If the Grantee’s employment is terminated by the Company for reasons other than Cause, the Grantee’s employment terminates on account of death or Disability or the Grantee resigns for Good Reason prior to the end of the Performance Period, subject to the effectiveness of a release in favor of the Company (except in the case of death), the Administrator shall determine the amount of Restricted Stock Units deemed earned based on the Company’s Annualized TSR Percentage, Index Relative TSR Return and Peer Relative TSR Return through the date the Grantee’s employment relationship with the Company is terminated (the “Termination Date”), and the Grantee shall vest in the greater of (x) the number of Restricted Stock Units underlying the Target Award or (y) the number of Restricted Stock Units deemed earned based on the Company’s Annualized TSR Percentage, Index Relative TSR Return and Peer Relative TSR Return through the Termination Date, and if the Termination Date is prior to the one-year anniversary of [            ], 20[     ], further multiplied by a fraction,

 

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the numerator of which shall be the number of calendar days from the Grant Effective Date to the Termination Date and the denominator of which shall be 365.

 

6.                                       Issuance of Shares; Forfeiture .  The Company shall issue to the Grantee the number of Shares equal to the aggregate number of Restricted Stock Units that have vested pursuant to Section 3 of this Agreement within 30 days thereafter (such date of issuance, the “ Issuance Date ”).  On the Issuance Date, the Company shall also issue to the Grantee a number of Shares determined by multiplying the Dividend Shares by the number of Shares issued to the Grantee pursuant to the first sentence of this Section 6.

 

7.                                       Defined Terms .  The following terms shall have the following respective meanings:

 

(i)                                      Absolute TSR Target ” means one-third of the Target Award, as indicated above.  Such Restricted Stock Units shall be earned based on the Company’s Annualized TSR Percentage during the Performance Period.

 

(ii)                                   Annualized TSR Percentage ” means the compounded annual growth rate, expressed as a percentage (rounded down to the nearest tenth of a percent (0.1%)), in the value per Share during the Performance Period due to the appreciation in the price per Share and dividends paid during such period, assuming dividends are reinvested.  Where “D” is the amount of dividends paid to a shareholder of record with respect to one Share during the Performance Period and N is the number of 12 month periods that have elapsed between the first day of the Performance Period and the last day of the Performance Period (which may not be a full integer if computed in connection with a Sale Event or a termination of employment under Section 5(ii)) the Annualized TSR Percentage is calculated as follows:

 

 

(iii)                                Baseline Value ” for each of the Company, the Peer Companies and the Index Companies, means the dollar amount representing the Fair Market Value of one share of common stock of such company on [         ], 20[     ].

 

(iv)                               Cause ” shall mean, unless otherwise provided in an Employment Agreement between the Company and the Grantee, a determination by the Administrator that the Grantee shall be dismissed as a result of (a) any material breach by the Grantee of any agreement between the Grantee and the Company; (b) the conviction of, indictment for or plea of nolo contendere by the Grantee to a felony or a crime involving moral turpitude; or (c) any material misconduct or willful and deliberate non-performance (other than by reason of disability) by the Grantee of the Grantee’s duties to the Company.

 

(v)                                  Disability ” shall mean, unless otherwise provided in an Employment Agreement between the Company and the Grantee, the occurrence of an event which would entitle the Grantee to the payment of disability income under the Company’s long-term disability plan.

 

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(vi)                               Dividend Shares ” means a number of Shares equal to the sum of the quotients obtained by dividing each Performance Period Dividend by the Fair Market Value of one Share of Stock on the date each such Performance Period Dividend is paid.

 

(vii)                            Employment Agreement ” shall mean any applicable agreement between the Grantee and the Company governing employment matters.

 

(viii)                         Ending Share Value ” means, for each of the Company, the Peer Companies and the Index Companies, the average of the closing price of one share of common stock of such company over the 20 consecutive trading days ending on, and including the Valuation Date (or if such date is not a trading day, the most recent trading day immediately preceding such date); provided that if the Valuation Date is the date upon which a Sale Event occurs, the Ending Share Value as of such date shall be equal to the fair value, as determined by the Administrator, of the total consideration paid or payable in the transaction resulting in the Sale Event for one Share, and if one of the 20 consecutive trading days is an ex-dividend date for the Company, or any of the Peer Companies and the Index Companies, the Administrator shall make fair and appropriate adjustments.

 

(ix)                               Fair Market Value ” means, as of any given date, the fair market value of a security which shall be the closing sale price reported for such security on the principal stock exchange or, if applicable, any other national exchange on which the security is traded or admitted to trading on such date on which a sale was reported.  If there are no market quotations for such date, the determination shall be made by reference to the last date preceding such date for which there are market quotations.

 

(x)                                  Good Reason ” shall mean, unless otherwise provided in an Employment Agreement between the Company and the Grantee, a determination by the Administrator of the occurrence of one of the following events: (a) a material adverse change in the nature or scope of the Grantee’s responsibilities, authorities, powers, functions or duties; (b) a material reduction in the Grantee’s annual base salary except for across-the-board salary reductions similarly affecting all or substantially all similarly-situated employees; or (c) the relocation of the offices at which the Grantee is principally employed to a location more than 50 miles from such offices.

 

(xi)                               Index Companies ” means the companies included in the NAREIT Office Index (unweighted), but specifically excluding the Company, throughout the Performance Period.

 

(xii)                            Index Relative TSR Return ” means the Company’s Total Shareholder Return during the Performance Period relative to the Total Shareholder Return of the Index Companies during the Performance Period.  Relative Performance will be determined by ranking the Company and the Index Companies from highest to lowest according to their respective Total Shareholder Return.  After this ranking, the percentile performance of the Company relative to the Index Companies will be determined as follows:

 

 

5



 

where:  “P” represents the percentile performance which will be rounded, if necessary, to the nearest whole percentile by application of regular rounding.

 

“N” represents the number of Index Companies.

 

“R” represents the Company’s ranking among the Index  Companies.

 

(xiii)                         Index Relative TSR Target ” means one-third of the Target Award, as indicated above.  Such Restricted Stock Units shall be earned based on the Company’s Index Relative TSR Return during the Performance Period.

 

(xiv)                        Peer Companies ” means each of Brandywine Realty Trust (BDN), Cousins Properties, Inc. (CUZ), Columbia Property Trust, Inc. (CXP), Highwoods Properties, Inc. (HIW), Kilroy Realty Corp. (KRC), Mack Cali Realty Corp. (CLI), Piedmont Office Realty Trust, Inc. (PDM), and Parkway Properties, Inc. (PKY).

 

(xv)                           Peer Relative TSR Return ” means the Company’s Total Shareholder Return during the Performance Period relative to the Total Shareholder Return of the Peer Companies during the Performance Period.  Relative Performance will be determined by ranking the Company and the Peer Companies from highest to lowest according to their respective Total Shareholder Return.  After this ranking, the percentile performance of the Company relative to the Peer Companies will be determined as follows:

 

 

where:  “P” represents the percentile performance which will be rounded, if necessary, to the nearest whole percentile by application of regular rounding.

 

“N” represents the number of Peer Companies.

 

“R” represents the Company’s ranking among the Peer Companies.

 

(xvi)                        Peer Relative TSR Target ” means one-third of the Target Award, as indicated above.  Such Restricted Stock Units shall be earned based on the Company’s Peer Relative TSR Return during the Performance Period.

 

(xvii)                     Performance Period ” means the period commencing on [         ], 20[     ] and concluding on the Valuation Date.

 

(xviii)                  Performance Period Dividend ” shall mean each dividend or other distribution paid on one Share for which the record date occurred on or after the first day of the Performance Period and prior to the Issuance Date for the Performance Period (excluding dividends and distributions paid in the form of additional Shares).

 

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(xix)                        Total Shareholder Return ” or “ TSR ” means for each of the Company, the Index Companies and the Peer Companies, with respect to the Performance Period, the total return (expressed as a percentage) that would have been realized by a shareholder who (a) bought one share of common stock of such company at the Baseline Value on the Grant Effective Date, (b) reinvested each dividend and other distribution declared during the Performance Period with respect to such share (and any other shares, or fractions thereof, previously received upon reinvestment of dividends or other distributions or on account of stock dividends), without deduction for any taxes with respect to such dividends or other distributions or any charges in connection with such reinvestment, in additional shares of common stock of such company at a price per share equal to (i) the Fair Market Value on the trading day immediately preceding the ex-dividend date for such dividend or other distribution less (ii) the amount of such dividend or other distribution, and (c) sold such shares on the Valuation Date at the Ending Share Value of such shares on the Valuation Date, without deduction for any taxes with respect to any gain on such sale or any charges in connection with such sale.  As set forth in, and pursuant to, Section 4 of this Agreement, appropriate adjustments to the Total Shareholder Return shall be made to take into account all stock dividends, stock splits, reverse stock splits and the other events set forth in Section 4 for each of the Company, the Index Companies, and the Peer Companies that occur during the Performance Period.

 

(xx)                           Valuation Date ” means the earlier of (a) [     ], 20[     ], or (b) the date upon which a Sale Event shall occur.

 

8.                                       Incorporation of Plan; Interpretation by Administrator .  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 Administrator 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 Administrator may interpret the Plan and this Agreement, with such interpretations to be conclusive and binding on all persons and otherwise accorded the maximum deference permitted by law, provided that the Administrator’s interpretation shall not be entitled to deference on and after a Sale Event except to the extent that such interpretations are made exclusively by members of the board of directors of the Company or relevant committee, who are individuals who served as members of such board or committee, as applicable, before the Sale Event 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 Administrator, except as provided above, shall be final and binding upon all persons.

 

9.                                       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 granted hereunder, the Grantee will pay to the Company or, if appropriate, any of its Subsidiaries, or make arrangements satisfactory to the Administrator regarding the payment of,

 

7



 

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 with an aggregate Fair Market Value equal to such minimum tax withholding obligation.

 

10.                                No Obligation to Continue Employment Relationship .  Neither the Plan nor this Award confers upon the Grantee any rights with respect to continued employment.

 

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 19 thereof and that this Agreement may be amended or canceled by the Administrator, 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 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 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

 

8



 

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.

 

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]

 

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IN WITNESS WHEREOF, the undersigned have caused this Award to be executed on the [             ] day of [        ], 201[    ].

 

 

TIER REIT, INC.

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

Grantee

 

 

 

 

 

 

 

Name:

 

 

 

Address:

 

10


Exhibit 10.2

 

FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT

 

This FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”) is made as of the 26th day of January 2016, between James E. Sharp (the “Executive”) and TIER REIT, Inc. (formerly known as Behringer Harvard REIT I, Inc.), a Maryland corporation (the “Company”), and Tier Operating Partnership LP (formerly known as Behringer Harvard Operating Partnership I LP), a Texas limited partnership (the “Operating Partnership” and together with the Company, the “Employers”).

 

WHEREAS, the Executive and the Employers entered into that certain Employment Agreement, dated September 1, 2012, as amended (the “Agreement”), pursuant to which the Executive is currently employed by the Employers; and

 

WHEREAS, the Executive and the Employers mutually desire to amend the Term of the Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.                                       Recitals .  The recitals contained in this Amendment are hereby incorporated into, and made an integral part of, this Amendment.  All defined terms used herein that are not otherwise defined shall have the same meaning ascribed to them in the Agreement.

 

2.                                       Cash Incentive Compensation .  The second sentence of Section 2(b) is hereby amended and restated as follows:

 

“(b)  The Executive’s target annual cash incentive compensation shall be 50% of his Base Salary.”

 

3.                                       Long-Term Incentive Awards .  The second sentence of Section 2(c) is hereby amended and restated as follows:

 

“(c)  The Executive’s target annual long-term incentive award shall be equal to at least 50% of his combined Base Salary and target annual cash incentive compensation attributable to such calendar year during the Term.”

 

4.                                       Binding Effect of Amendment .  This Amendment shall be binding on all successors and permitted assigns of the parties hereof.

 

5.                                       Severability .  The enforceability or invalidity of any provision of this Amendment shall not affect the enforceability or validity of any other provision.

 

6.                                       Headings .  The headings have been inserted solely as a matter of convenience to the parties and shall not affect the construction or meaning thereof.

 



 

7.                                       Ratification .  The Executive and the Employers hereby ratify and confirm their respective obligations under the Agreement, as modified by this Amendment.  If any inconsistency exists or arises between the terms of the Agreement and the terms of this Amendment, the terms of this Amendment shall prevail.

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first set forth above.

 

 

 

TIER REIT, INC.

 

 

 

 

 

/s/ Scott W. Fordham

 

By: Scott W. Fordham

 

Its:  Chief Executive Officer and President

 

 

 

 

 

TIER OPERATING PARTNERSHIP LP

 

 

 

 

 

/s/ Scott W. Fordham

 

By: Scott W. Fordham

 

Its:  Chief Executive Officer and President

 

 

 

 

 

EXECUTIVE:

 

 

 

 

 

/s/ James E. Sharp

 

James E. Sharp

 

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