Company: LXP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001539497-25-001131
Chunk: 56

Company: LXP Industrial Trust
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 56
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-term capital gain
or loss, depending on whether participant holds the shares for more than one year. If a participant timely files a Section 83(b)
election, the participant will recognize ordinary income equal to the fair market value of the shares at the time of purchase or grant
less the amount paid for such shares (if any).

A participant
who receives RSUs will not have taxable income upon grant of the stock award; instead, the participant will be taxed upon settlement of
the stock award. The participant will recognize ordinary income equal to the fair market value of the shares or the amount of cash received
by the participant.

Section 409A
imposes certain restrictions on deferred compensation arrangements. Stock awards that are treated as deferred compensation under Section 409A
are intended to meet the requirements of Section 409A.

Prior to
the delivery of any shares or cash pursuant to a stock award (or exercise thereof) or prior to any time the stock award or shares are
subject to taxation or other tax-related items, we and/or the participant’s employer will have the power and the right to deduct
or withhold, or require a participant to remit to us, an amount sufficient to satisfy any tax-related items or other items that are required
to be withheld or deducted with respect to such stock award. The Committee may, at its discretion and pursuant to such procedures as it
may specify from time to time, permit a participant to satisfy such withholding or deduction obligations or any other tax-related items,
in whole or in part by (without limitation) paying cash, electing to have us withhold otherwise deliverable cash or shares, or remitting
to us proceeds from the immediate sale of shares otherwise to be delivered to the participant.

The Company
will be entitled to a tax deduction in connection with a stock award under the 2022 Amended Plan only in an amount equal to the ordinary
income realized by the participant at the time the participant recognizes the income. Section 162(m) of the Internal Revenue Code
places a limit of $1 million on the amount of compensation that we may deduct as a business expense in any year with respect
to certain of our most highly paid executive officers. While the Committee considers the deductibility of compensation as one factor in
determining executive compensation, the Committee retains the discretion to award and pay compensation that is not deductible as it believes
that it is in the best interests of our shareholders to maintain flexibility in our approach to executive compensation and to structure
a program that we consider