Under its incentive plans, ProLogis had stock options and full value awards (restricted share units (“RSUs”) and performance share awards (“PSAs”)) outstanding as of the date the Merger was completed. Pursuant to the Merger, each outstanding stock award of ProLogis was converted into 0.4464 of a newly issued award of the REIT. Additionally, the exercise prices of stock options acquired and the grant date fair values of full value awards have been adjusted to reflect the conversion of the underlying award. Stock options, restricted stock and RSUs granted under AMB's incentive plans were revalued pursuant to the Merger. The portion related to unvested awards will be amortized over the remaining service period.

The activity for the six months ended June 30, 2011, with respect to our stock options, was as follows:

	Options Outstanding
	Number of Options	Weighted Average Exercise Price		Options Exercisable
Balance at December 31, 2010	1,438,514		$ 66.89
AMB awards	9,052,566		30.66
Settled	(124,278)		71.64
Exercised	(18,678)		18.55
Forfeited	(58,317)		97.09
Balance at June 30, 2011	10,289,807		$ 34.87	8,278,170

The activity for the six months ended June 30, 2011, with respect to unvested restricted stock grants, was as follows:

	Number of	Weighted Average
	Shares	Original Value
Balance at December 31, 2010	-
AMB awards	1,228,944
Vested	(8,913)
Forfeited	(1,877)
Balance at June 30, 2011	1,218,154	$ 34.07

The activity for the six months ended June 30, 2011, with respect to our full value awards, was as follows:

	Number of	Weighted Average	Number of
	Shares	Original Value	Shares Vested
Balance at December 31, 2010	1,863,420
AMB awards	89,864
Granted	980,051
Settled	(149,053)
Distributed	(526,693)
Forfeited	(147,109)
Balance at June 30, 2011	2,110,480	$ 30.84	48,735

In 2011, we granted 674,050 RSUs and 280,525 target PSAs. The PSAs were granted to certain employees of the company, vest over three years and may be earned based on the attainment of certain individual and company goals for 2011. The ultimate number of PSAs that may be earned and issued to each employee can be between from 0 – 200% of their target award.