Exhibit 4.1


 


General Growth Properties, Inc.


2010 Equity Incentive Plan


 

















 


TABLE OF CONTENTS


 


	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  	
  ESTABLISHMENT &
  PURPOSE

  	
  1

  
	
  1.1

  	
  Establishment

  	
  1

  
	
  1.2

  	
  Purpose
  of the Plan

  	
  1

  
	
  ARTICLE 2.

  	
  DEFINITIONS

  	
  1

  
	
  ARTICLE 3.

  	
  ADMINISTRATION

  	
  4

  
	
  3.1

  	
  Authority
  of the Committee

  	
  4

  
	
  3.2

  	
  Delegation

  	
  4

  
	
  ARTICLE 4.

  	
  ELIGIBILITY
  AND PARTICIPATION

  	
  4

  
	
  4.1

  	
  Eligibility

  	
  4

  
	
  4.2

  	
  Type
  of Awards

  	
  5

  
	
  ARTICLE 5.

  	
  SHARES
  SUBJECT TO THE PLAN AND MAXIMUM AWARDS

  	
  5

  
	
  5.1

  	
  General

  	
  5

  
	
  5.2

  	
  Annual
  Award Limits

  	
  5

  
	
  5.3

  	
  Additional
  Shares

  	
  5

  
	
  ARTICLE 6.

  	
  STOCK
  OPTIONS

  	
  5

  
	
  6.1

  	
  Grant
  of Options

  	
  5

  
	
  6.2

  	
  Terms
  of Option Grant

  	
  6

  
	
  6.3

  	
  Option
  Term

  	
  6

  
	
  6.4

  	
  Method
  of Exercise

  	
  6

  
	
  6.5

  	
  Limitations
  on Incentive Stock Options

  	
  6

  
	
  6.6

  	
  Performance
  Goals

  	
  6

  
	
  ARTICLE 7.

  	
  STOCK
  APPRECIATION RIGHTS

  	
  7

  
	
  7.1

  	
  Grant
  of Stock Appreciation Rights

  	
  7

  
	
  7.2

  	
  Terms
  of Stock Appreciation Right

  	
  7

  
	
  7.3

  	
  Tandem
  Stock Appreciation Rights and Options

  	
  7

  
	
  ARTICLE 8.

  	
  RESTRICTED
  STOCK

  	
  7

  
	
  8.1

  	
  Grant
  of Restricted Stock

  	
  7

  
	
  8.2

  	
  Terms
  of Restricted Stock Awards

  	
  7

  
	
  8.3

  	
  Voting
  and Dividend Rights

  	
  7

  
	
  8.4

  	
  Performance
  Goals

  	
  8

  
	
  8.5

  	
  Section 83(b) Election

  	
  8

  



 


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(continued)


 


	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
  OTHER
  STOCK-BASED AWARDS

  	
  8

  
	
  ARTICLE 10.

  	
  PERFORMANCE-BASED
  COMPENSATION

  	
  8

  
	
  10.1

  	
  Grant
  of Performance-Based Compensation

  	
  8

  
	
  10.2

  	
  Performance
  Measures

  	
  8

  
	
  10.3

  	
  Establishment
  of Performance Goals for Covered Employees

  	
  9

  
	
  10.4

  	
  Adjustment
  of Performance-Based Compensation

  	
  9

  
	
  10.5

  	
  Certification
  of Performance

  	
  9

  
	
  10.6

  	
  Interpretation

  	
  9

  
	
  ARTICLE 11.

  	
  COMPLIANCE
  WITH SECTION 409A OF THE CODE AND SECTION 457A OF THE CODE

  	
  9

  
	
  11.1

  	
  General

  	
  9

  
	
  11.2

  	
  Payments
  to Specified Employees

  	
  9

  
	
  11.3

  	
  Separation
  from Service

  	
  10

  
	
  11.4

  	
  Section 457A

  	
  10

  
	
  ARTICLE 12.

  	
  ADJUSTMENTS

  	
  10

  
	
  12.1

  	
  Adjustments
  in Authorized Shares

  	
  10

  
	
  12.2

  	
  Change
  of Control

  	
  10

  
	
  ARTICLE 13.

  	
  DURATION,
  AMENDMENT, MODIFICATION, SUSPENSION AND TERMINATION

  	
  11

  
	
  13.1

  	
  Duration
  of the Plan

  	
  11

  
	
  13.2

  	
  Amendment,
  Modification, Suspension and Termination of Plan

  	
  11

  
	
  ARTICLE 14.

  	
  GENERAL
  PROVISIONS

  	
  11

  
	
  14.1

  	
  No
  Right to Service

  	
  11

  
	
  14.2

  	
  Settlement
  of Awards; Fractional Shares

  	
  11

  
	
  14.3

  	
  Tax
  Withholding

  	
  12

  
	
  14.4

  	
  No
  Guarantees Regarding Tax Treatment

  	
  12

  
	
  14.5

  	
  Non-Transferability
  of Awards

  	
  12

  
	
  14.6

  	
  Conditions
  and Restrictions on Shares

  	
  12

  
	
  14.7

  	
  Compliance
  with Law

  	
  12

  
	
  14.8

  	
  Rights
  as a Shareholder

  	
  13

  
	
  14.9

  	
  Severability

  	
  13

  
	
  14.10

  	
  Unfunded
  Plan

  	
  13

  



 


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  14.11

  	
  No
  Constraint on Corporate Action

  	
  13

  
	
  14.12

  	
  Successors

  	
  13

  
	
  14.13

  	
  Governing
  Law

  	
  13

  
	
  14.14

  	
  Data
  Protection

  	
  13

  
	
  14.15

  	
  Effective
  Date

  	
  14

  



 


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General Growth Properties, Inc.


 


2010 Equity Incentive Plan


 


Article 1.               Establishment &
Purpose


 


1.1          Establishment.  New GGP, Inc., a Delaware corporation  hereby establishes the General Growth Properties, Inc. 2010 Equity
Incentive Plan (hereinafter referred to as the “Plan”) as set forth in
this document.


 


1.2          Purpose of the Plan.  The purpose of this Plan is to attract,
retain and motivate officers, employees, and non-employee directors providing
services to the Company, any of its Subsidiaries, or Affiliates and to promote
the success of the Company’s business by providing the participants of the Plan
with appropriate incentives.


 


Article 2.               Definitions


 


Whenever capitalized in the
Plan, the following terms shall have the meanings set forth below.


 


2.1          “Affiliate” means any
entity that the Company, either directly or indirectly, is in common control
with, is controlled by or controls, or any entity in which the Company has a
substantial equity interest, direct or indirect; provided, however, to the
extent that Awards must cover “service recipient stock” in order to comply with
Section 409A of the Code, “Affiliate” shall be limited to those entities
which could qualify as an “eligible issuer” under Section 409A of the
Code.


 


2.2          “Annual Award Limit” shall have the
meaning set forth in Section 5.2.


 


2.3          “Award” means any
Option, Stock Appreciation Right, Restricted Stock, Other Stock-Based Award, or
Performance-Based Compensation Award that is granted under the Plan.


 


2.4          “Award Agreement” means a
written agreement entered into by the Company and a Participant setting forth
the terms and provisions applicable to an Award granted under this Plan.


 


2.5          “Beneficial Owner” or “Beneficial Ownership” shall have the meaning
ascribed to such term in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act.


 


2.6          “Board” means the
Board of Directors of the Company.


 


2.7          “Change of Control” unless
otherwise specified in the Award Agreement, means the occurrence of any of the
following events:


 


(a)           any
consolidation, amalgamation, or merger of the Company with or into any other
Person, or any other corporate reorganization, business combination,
transaction or transfer of securities of the Company by its stockholders, or a
series of transactions (including the acquisition of capital stock of the
Company), whether or not the Company is a party thereto, in which the
stockholders of the Company immediately prior to such consolidation, merger,
reorganization, business combination or transaction, collectively have
Beneficial Ownership, directly or indirectly, of capital stock representing
directly, or indirectly through one or more entities, less than fifty percent
(50%) of the equity (measured by economic value or voting power (by contract,
share ownership or otherwise) of 


 


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the Company or other
surviving entity immediately after such consolidation, merger, reorganization,
business combination or transaction;


 


(b)           the sale or
disposition, in one transaction or a series of related transactions, of all or
substantially all of the assets of the Company to any Person;


 


(c)           during any
period of twelve consecutive months commencing on or after the Effective Date
(as defined in the Joint Plan of Reorganization), individuals who as of the
beginning of such period constituted the entire Board (together with any new
directors whose election by such Board or nomination for election by the Company’s
shareholders was approved by a vote of at least two-thirds of the directors of
the Company, then still in office, who were directors at the beginning of the
period or whose election or nomination for election was previously so approved)
cease for any reason to constitute a majority thereof; or


 


(d)           approval by the
shareholders of the Company of a complete liquidation or dissolution of the
Company.


 


2.8          “Code” means the U.S.
Internal Revenue Code of 1986, as amended from time to time.


 


2.9          “Committee” means the
Compensation Committee of the Board or any other committee designated by the
Board to administer this Plan.  To the
extent applicable, the Committee shall have at least two members, each of whom
shall be (i) a Non-Employee Director, (ii) an Outside Director, and (iii) an
“independent director” within the meaning of the listing requirements of any
exchange on which the Company is listed.


 


2.10        “Company” means New GGP, Inc.,
a Delaware corporation, and any successor thereto.


 


2.11        “Covered
Employee” means for any Plan Year, a Participant designated
by the Company as a potential “covered employee” as such term is defined in Section 162(m) of
the Code.


 


2.12        “Director” means a member
of the Board who is not an Employee.


 


2.13        “Effective
Date” means the date set forth in Section 14.15.


 


2.14        “Employee” means an
officer or other employee of the Company, a Subsidiary or Affiliate, including (i) a
member of the Board who is an employee of the Company, a Subsidiary or
Affiliate and (ii) individuals who have entered into employment agreements
or have accepted a written offer of employment with the Company, a Subsidiary
or Affiliate.


 


2.15        “Exchange
Act” means the Securities Exchange Act of 1934, as
amended from time to time.


 


2.16        “Fair
Market Value” means, as of any date, the per Share value
determined as follows, in accordance with applicable provisions of Section 409A
of the Code:


 


(a)           The closing price of a Share on a recognized national exchange or any
established over-the-counter trading system on which dealings take place, or if
no trades were made on any such day, the immediately preceding day on which
trades were made; or


 


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(b)           In the absence
of an established market for the Shares of the type described in (a) above,
the per Share Fair Market Value thereof shall be determined by the Committee in
good faith and in accordance with applicable provisions of Section 409A of
the Code.


 


2.17        “Incentive Stock Option” means an
Option intended to meet the requirements of an incentive stock option as
defined in Section 422 of the Code and designated as an Incentive Stock
Option.


 


2.18        “Joint Plan of Reorganization” means the Third Amended Joint Plan of Reorganization of
General Growth Properties, Inc. and other debtors under Chapter 11 of the
Bankruptcy Code, as Modified [Docket No. 6232], and as may be further
modified.


 


2.19        “Non-Employee
Director” means a person defined in Rule 16b-3(b)(3) promulgated
by the Securities and Exchange Commission under the Exchange Act, or any
successor definition adopted by the Securities and Exchange Commission.


 


2.20        “Nonqualified
Stock Option” means an Option that is not an Incentive Stock
Option.


 


2.21        “Other
Stock-Based Award” means any right granted under Article 9
of the Plan.


 


2.22        “Option” means any
stock option granted under Article 6 of the Plan.


 


2.23        “Option
Price” means the purchase price per Share subject to an
Option, as determined pursuant to Section 6.2 of the Plan.


 


2.24        “Outside
Director” means a member of the Board who is an “outside
director” within the meaning of Section 162(m) of the Code and the
regulations promulgated thereunder.


 


2.25        “Participant” means any
eligible person as set forth in Section 4.1 to whom an Award is granted.


 


2.26        “Performance-Based
Compensation” means compensation under an Award that is intended
to constitute “qualified performance-based compensation” within the meaning of
the regulations promulgated under Section 162(m) of Code or any
successor provision.


 


2.27        “Performance
Measures” means measures as described in Section 10.2 on
which the performance goals are based in order to qualify Awards as
Performance-Based Compensation.


 


2.28        “Performance
Period” means the period of time during which the
performance goals must be met in order to determine the degree of payout and/or
vesting with respect to an Award.


 


2.29        “Person” shall have the
meaning ascribed to such term in Section 3(a)(9) of the Exchange Act
and used in Sections 13(d) and 14(d) thereof, including a “group”
as defined in Section 13(d) thereof.


 


2.30        “Plan” means the
General Growth Properties, Inc. 2010 Equity Incentive Plan.


 


2.31        “Plan
Year” means the applicable fiscal year of the Company.


 


2.32        “Restricted
Stock” means any Award granted under Article 8 of
the Plan.


 


3

















 


2.33        “Restriction
Period” means the period during which Restricted Stock
awarded under Article 8 of the Plan is subject to forfeiture.


 


2.34        “Service”
means service as an Employee or Director.


 


2.35        “Share” means a share
of common stock of the Company, par value $0.01 per share, or such other class
or kind of shares or other securities resulting from the application of Article 12
hereof.


 


2.36        “Stock
Appreciation Right” means any right granted under Article 7
of the Plan.


 


2.37        “Subsidiary” means any
corporation, partnership, limited liability company or other legal entity of
which the Company, directly or indirectly, owns stock or other equity interests
possessing fifty percent (50%) or more of the total combined voting power of
all classes of stock or other equity interests (as determined in a manner
consistent with Section 409A of the Code).


 


2.38        “Ten
Percent Shareholder” means a person who on any given date owns,
either directly or indirectly (taking into account the attribution rules contained
in Section 424(d) of the Code), stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or a Subsidiary or Affiliate.


 


Article 3.               Administration


 


3.1          Authority
of the Committee.  The Plan
shall be administered by the Committee, which shall have full power to
interpret and administer the Plan and Award Agreements and full authority to
select the Employees and Directors to whom Awards will be granted, and to determine
the type and amount of Awards to be granted to each such Employee or Director,
and the terms and conditions of Awards and Award Agreements.  Without
limiting the generality of the foregoing, the Committee may, in its sole
discretion but subject to the limitations in Article 13, clarify, construe
or resolve any ambiguity in any provision of the Plan or any Award Agreement,
extend the term or period of exercisability of any Awards, or waive any terms
or conditions applicable to any Award. 
Awards may, in the discretion of the Committee, be made under the Plan
in assumption of, or in substitution for, outstanding awards previously granted
by the Company or any of its Subsidiaries or Affiliates or a company acquired
by the Company or with which the Company combines.  The Committee shall have full and
exclusive discretionary power to adopt rules, forms, instruments, and
guidelines for administering the Plan as the Committee deems necessary or
proper.  All actions taken and all interpretations
and determinations made by the Committee or by the Board (or any other
committee or sub-committee thereof), as applicable, shall be final and binding
upon the Participants, the Company, and all other interested individuals.


 


3.2          Delegation.  The Committee may delegate to one or more of
its members or one or more executive officers of the Company such
administrative duties or powers as it may deem advisable; provided
that no delegation shall be permitted under the Plan that is prohibited by
applicable law.


 


Article 4.               Eligibility
and Participation


 


4.1          Eligibility.  Participants will consist of such Employees
and Directors as the Committee in its sole discretion determines and whom the
Committee may designate from time to time to receive Awards.  Designation of a Participant in any year
shall not require the Committee to designate such person to receive an Award in
any other year or, once designated, to receive the same type or amount of Award
as granted to the Participant in any other year.


 


4

















 


4.2          Type of
Awards.  Awards under the Plan may be
granted in any one or a combination of:  (a) Options,
(b) Stock Appreciation Rights, (c) Restricted Stock, (d) Other
Stock-Based Awards, and (e) Performance-Based Compensation Awards.  The Plan sets forth the types of performance
goals and sets forth procedural requirements to permit the Company to design
Awards that qualify as Performance-Based Compensation, as described in Article 10
hereof.  Awards granted under the Plan
shall be evidenced by Award Agreements (which need not be identical) that
provide additional terms and conditions associated with such Awards, as
determined by the Committee in its sole discretion; provided,
however, that in the event of any
conflict between the provisions of the Plan and any such Award Agreement, the
provisions of the Plan shall prevail.


 


Article 5.               Shares
Subject to the Plan and Maximum Awards


 


5.1          General.  Subject to adjustment as provided in Article 12
hereof, the maximum number of Shares available for issuance to Participants
pursuant to Awards under the Plan shall be equal to four percent (4%) of the
outstanding fully diluted Shares of the
Company as of the effective date (as defined in the Joint Plan of
Reorganization) (including shares issuable under the Joint Plan of
Reorganization).  The number
of Shares available for granting Incentive Stock Options under the Plan shall
not exceed four percent (4%) of the outstanding fully diluted Shares of the Company as of the effective date (as defined in the Joint
Plan of Reorganization) (including shares issuable under the Joint Plan of
Reorganization), subject to Article 12 hereof and the
provisions of Sections 422 or 424 of the Code and any successor
provisions.  The Shares available for
issuance under the Plan may consist, in whole or in part, of authorized and
unissued Shares or treasury Shares.


 


5.2          Annual Award Limits.  The maximum number of Shares
with respect to Awards denominated in Shares that may be granted to any
Participant in any Plan Year shall be 4,000,000 Shares (or the equivalent
dollar value), subject to adjustments made in accordance with Article 12
hereof (the “Annual Award Limit”).


 


5.3          Additional
Shares.  In the event that any
outstanding Award expires, is forfeited, cancelled or otherwise terminated
without the issuance of Shares or is otherwise settled for cash, the Shares
subject to such Award, to the extent of any such forfeiture, cancellation,
expiration, termination or settlement for cash, shall again be available for
Awards.  If the Committee authorizes the
assumption under this Plan, in connection with any merger, consolidation,
acquisition of property or stock, or reorganization, of awards granted under
another plan, such assumption shall not (i) reduce the maximum number of
Shares available for issuance under this Plan or (ii) be subject to or
counted against a Participant’s Annual Award Limit.


 


Article 6.               Stock
Options


 


6.1          Grant
of Options.  The
Committee is hereby authorized to grant Options to Participants.  Each Option shall permit a Participant to
purchase from the Company a stated number of Shares at an Option Price
established by the Committee, subject to the terms and conditions described in
this Article 6 and to such additional terms and conditions, as established
by the Committee, in its sole discretion, that are consistent with the
provisions of the Plan.  Options shall be
designated as either Incentive Stock Options or Nonqualified Stock Options,
provided that Options granted to Directors shall be Nonqualified Stock Options.  An Option granted as an Incentive Stock
Option shall, to the extent it fails to qualify as an Incentive Stock Option,
be treated as a Nonqualified Stock Option. 
Neither the Committee, the Company, any of its Subsidiaries or
Affiliates, nor any of their employees and representatives shall be liable to
any Participant or to any other Person if it is determined that an Option
intended to be an Incentive Stock Option does not qualify as an Incentive Stock
Option.  Each option shall be evidenced
by Award Agreements which shall state the number of Shares covered by such
Option.  Such agreements 


 


5

















 


shall conform to the requirements of the Plan, and
may contain such other provisions, as the Committee shall deem advisable.


 


6.2          Terms
of Option Grant.  The Option
Price shall be determined by the Committee at the time of grant, but shall not
be less than one-hundred percent (100%) of the Fair Market Value of a Share on
the date of grant.  In the case of any
Incentive Stock Option granted to a Ten Percent Shareholder, the Option Price
shall not be less than one-hundred-ten percent (110%) of the Fair Market Value
of a Share on the date of grant.


 


6.3          Option
Term.  The term of each Option shall
be determined by the Committee at the time of grant and shall be stated in the
Award Agreement, but in no event shall such term be greater than ten (10) years
(or, in the case on an Incentive Stock Option granted to a Ten Percent
Shareholder, five (5) years).


 


6.4          Method
of Exercise.  Except as
otherwise provided in the Plan or in an Award Agreement, an Option may be
exercised for all, or from time to time any part, of the Shares for which it is
then exercisable.  For purposes of this Article 6,
the exercise date of an Option shall be the later of the date a notice of
exercise is received by the Company and, if applicable, the date payment is
received by the Company pursuant to clauses (i), (ii), (iii) or (iv) of
the following sentence (including the applicable tax withholding pursuant to Section 14.3
of the Plan).  The aggregate Option Price
for the Shares as to which an Option is exercised shall be paid to the Company
in full at the time of exercise at the election of the Participant (i) in
cash or its equivalent (e.g., by cashier’s check), (ii) to the extent
permitted by the Committee, in Shares previously owned by the Participant
having a Fair Market Value equal to the aggregate Option Price for the Shares
being purchased and satisfying such other requirements as may be imposed by the
Committee, (iii) partly in cash and, to the extent permitted by the
Committee, partly in such Shares (as described in (ii) above) or (iv) if
there is a public market for the Shares at such time, subject to such
requirements as may be imposed by the Committee, through the delivery of
irrevocable instructions to a broker to sell Shares obtained upon the exercise
of the Option and to deliver promptly to the Company an amount out of the
proceeds of such sale equal to the aggregate Option Price for the Shares being
purchased.  The Committee may prescribe
any other method of payment that it determines to be consistent with applicable
law and the purpose of the Plan.


 


6.5          Limitations
on Incentive Stock Options.  Incentive Stock Options may be granted only
to employees of the Company or of a “parent corporation” or “subsidiary
corporation” (as such terms are defined in Section 424 of the Code) at the
date of grant.  The aggregate Fair Market
Value (generally determined as of the time the Option is granted) of the Shares
with respect to which Incentive Stock Options are exercisable for the first
time by a Participant during any calendar year under all plans of the Company
and of any “parent corporation” or “subsidiary corporation” shall not exceed
one hundred thousand dollars ($100,000), or the Option shall be treated as a
Nonqualified Stock Option.  For purposes
of the preceding sentence, Incentive Stock Options will be taken into
account generally in the order in which they are granted.  Each provision of the Plan and each Award
Agreement relating to an Incentive Stock Option shall be construed so that each
Incentive Stock Option shall be an incentive stock option as defined in Section 422
of the Code, and any provisions of the Award Agreement thereof that cannot be
so construed shall be disregarded.


 


6.6          Performance
Goals.  The Committee may condition the
grant of Options or the vesting of Options upon the Participant’s achievement
of one or more performance goal(s) (including the Participant’s provision
of Services for a designated time period), as specified in the Award
Agreement.  If the Participant fails to
achieve the specified performance goal(s), the Committee shall not grant the
Option to such Participant or the Option shall not vest, as applicable.


 


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Article 7.               Stock
Appreciation Rights


 


7.1          Grant of Stock Appreciation
Rights.  The Committee is hereby
authorized to grant Stock Appreciation Rights to Participants, including a
grant of Stock Appreciation Rights in tandem with any Option at the same time
such Option is granted (a “Tandem SAR”). 
Stock Appreciation Rights shall be evidenced by Award Agreements that
shall conform to the requirements of the Plan and may contain such other
provisions, as the Committee shall deem advisable.  Subject to the terms of the Plan and any
applicable Award Agreement, a Stock Appreciation Right granted under the Plan
shall confer on the holder thereof a right to receive, upon exercise thereof,
the excess of (a) the Fair Market Value of a specified number of Shares on
the date of exercise over (b) the grant price of the right as specified by
the Committee on the date of the grant. 
Such payment may be in the form of cash, Shares, other property or any
combination thereof, as the Committee shall determine in its sole discretion.


 


7.2          Terms
of Stock Appreciation Right.  Subject to the terms of the Plan and any
applicable Award Agreement, the grant price (which shall not be less than one
hundred percent (100%) of the Fair
Market Value of a Share on the date of grant), term, methods of
exercise, methods of settlement, and any other terms and conditions of any
Stock Appreciation Right shall be as determined by the Committee.  The Committee may impose such other
conditions or restrictions on the exercise of any Stock Appreciation Right as
it may deem appropriate.  No Stock
Appreciation Right shall have a term of more than ten (10) years from the
date of grant.


 


7.3          Tandem
Stock Appreciation Rights and Options.  A Tandem SAR shall be exercisable only to the
extent that the related Option is exercisable and shall expire no later than
the expiration of the related Option. 
Upon the exercise of all or a portion of a Tandem SAR, a Participant
shall be required to forfeit the right to purchase an equivalent portion of the
related Option (and, when a Share is purchased under the related Option, the
Participant shall be required to forfeit an equivalent portion of the Stock
Appreciation Right).


 


Article 8.               Restricted
Stock


 


8.1          Grant of
Restricted Stock.  An Award of Restricted Stock
is a grant by the Committee of a specified number of Shares to the Participant,
which Shares are subject to forfeiture upon the occurrence of specified events.  Restricted
Stock shall be evidenced by an Award Agreement, which shall conform to the
requirements of the Plan and may contain such other provisions, as the
Committee shall deem advisable.


 


8.2          Terms
of Restricted Stock Awards.  Each Award Agreement evidencing a Restricted
Stock grant shall specify the period(s) of restriction, the number of
Shares of Restricted Stock subject to the Award, the performance, employment or
other conditions (including the termination of a Participant’s Service whether
due to death, disability or other reason) under which the Restricted Stock may
be forfeited to the Company and such other provisions as the Committee shall
determine.  At the end of the Restriction
Period, the restrictions imposed hereunder and under the Award Agreement shall
lapse with respect to the number of Shares of Restricted Stock as determined by
the Committee, and the legend shall be removed and such number of Shares
delivered to the Participant (or, where appropriate, the Participant’s legal
representative).


 


8.3          Voting
and Dividend Rights.  Unless
otherwise provided in an Award Agreement, Participants shall have none of the
rights of a stockholder of the Company with respect to Restricted Stock until
the end of the Restricted Period; provided, that, Participants shall have the
right to vote and receive dividends on Restricted Stock during the Restriction Period.  Dividends shall be paid to Participants at
the same time that other shareholders of common stock of the Company receive
such dividends.


 


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8.4          Performance
Goals.  The Committee may condition the
grant of Restricted Stock or the expiration of the Restriction Period upon the
Participant’s achievement of one or more performance goal(s) (including
the Participant’s provision of Services for a designated time period), as
specified in the Award Agreement.  If the
Participant fails to achieve the specified performance goal(s), the Committee
shall not grant the Restricted Stock to such Participant or the Participant
shall forfeit the Award of Restricted Stock to the Company, as applicable.


 


8.5          Section 83(b) Election.  If a Participant makes an election pursuant
to Section 83(b) of the Code concerning Restricted Stock, the
Participant shall be required to file promptly a copy of such election with the
Company.


 


Article 9.               Other
Stock-Based Awards


 


The Committee, in its sole
discretion, may grant Awards of Shares and Awards that are valued, in whole or
in part, by reference to, or are otherwise based on the Fair Market Value of,
Shares (the “Other Stock-Based Awards”), including without limitation, restricted stock units and other phantom
awards.  Such Other Stock-Based
Awards shall be in such form, and dependent on such conditions, as the
Committee shall determine, including, without limitation, the right to receive
one or more Shares (or the equivalent cash value of such Shares) upon the
completion of a specified period of Service, the occurrence of an event and/or
the attainment of performance objectives. 
Other Stock-Based Awards may be granted alone or in addition to any
other Awards granted under the Plan. 
Subject to the provisions of the Plan, the Committee shall determine to
whom and when Other Stock-Based Awards will be made, the number of Shares to be
awarded under (or otherwise related to) such Other Stock-Based Awards, whether
such Other Stock-Based Awards shall be settled in cash, Shares or a combination
of cash and Shares, and all other terms and conditions of such Awards
(including, without limitation, the vesting provisions thereof and provisions
ensuring that all Shares so awarded and issued shall be fully paid and
non-assessable).


 


Article 10.            Performance-Based
Compensation


 


10.1        Grant of Performance-Based
Compensation.  To the
extent permitted by Section 162(m) of the Code, the Committee is
authorized to design any Award so that the amounts or Shares payable or
distributed pursuant to such Award are treated as “qualified performance-based
compensation” within the meaning of Section 162(m) of the Code and
related regulations.


 


10.2        Performance Measures.  The vesting, crediting and/or payment of Performance-Based
Compensation shall be based on the achievement of objective performance goals
based on one or more of the following Performance Measures:  (i) consolidated earnings before or
after taxes (including earnings before interest, taxes, depreciation and
amortization); (ii) net income; (iii) operating income; (iv) earnings
per Share; (v) book value per Share; (vi) return on shareholders’
equity; (vii) expense management; (viii) return on investment; (ix) improvements
in capital structure; (x) profitability of an identifiable business unit
or product; (xi) maintenance or improvement of profit margins; (xii) stock
price; (xiii) market share; (xiv) revenues or sales; (xv) costs;
(xvi) cash flow; (xvii) working capital; (xviii) return on
assets; (xix) store openings or refurbishment plans; (xx) staff
training; and (xxi) corporate social responsibility policy implementation.


 


Any Performance Measure may
be (i) used to measure the performance of the Company and/or any of its
Subsidiaries or Affiliates as a whole, any business unit thereof or any
combination thereof against any goal including past performance or (ii) compared
to the performance of a group of comparable companies, or a published or
special index, in each case that the Committee, in its sole discretion, deems
appropriate.  Subject to Section 162(m) of
the Code, the Committee
may adjust the


 


8

















 


performance goals (including to prorate goals and
payments for a partial Plan Year) in the event of the following
occurrences:  (a) non-recurring
events, including divestitures, spin-offs, or changes in accounting standards
or policies; (b) mergers and acquisitions; and (c) financing
transactions, including selling accounts receivable.


 


10.3        Establishment of Performance
Goals for Covered Employees.  No later than ninety (90) days after the
commencement of a Performance Period (but in no event after twenty-five percent
(25%) of such Performance Period has elapsed), the Committee shall establish in
writing:  (i) the performance goals
applicable to the Performance Period; (ii) the Performance Measures to be
used to measure the performance goals in terms of an objective formula or
standard; (iii) the formula
for computing the amount of compensation payable to the Participant if such
performance goals are obtained; and (iv) the Participants or class of
Participants to which such performance goals apply.  The outcome of such performance goals must be
substantially uncertain when the Committee establishes the goals.


 


10.4        Adjustment of Performance-Based
Compensation.  Awards that
are designed to qualify as Performance-Based Compensation may not be adjusted
upward.  The Committee shall retain the
discretion to adjust such Awards downward, either on a formula or discretionary
basis or any combination, as the Committee determines.


 


10.5        Certification of Performance.  Except for Awards that pay compensation
attributable solely to an increase in the value of Shares, no Award designed to
qualify as Performance-Based Compensation shall be vested, credited or paid, as
applicable, with respect to any Participant until the Committee certifies in
writing that the performance goals and any other material terms applicable to
such Performance Period have been satisfied.


 


10.6        Interpretation.  Each provision of the Plan and each Award
Agreement relating to Performance-Based Compensation shall be construed so that
each such Award  shall be “qualified
performance-based compensation” within the meaning of Section 162(m) of
the Code and related regulations, and any provisions of the Award Agreement
thereof that cannot be so construed shall be disregarded.


 


Article 11.            Compliance
with Section 409A of the Code and Section 457A of the Code


 


11.1        General.  The Company intends that any Awards be structured
in compliance with, or to satisfy an exemption from, Section 409A of the
Code and all regulations, guidance, compliance programs and other
interpretative authority thereunder (“Section 409A”),
such that there are no adverse tax consequences, interest, or penalties as a
result of the Awards.  Notwithstanding
the Company’s intention, in the event any Award is subject to Section 409A,
the Committee may, in its sole discretion and without a Participant’s prior
consent, amend the Plan and/or Awards, adopt policies and procedures, or take
any other actions (including amendments, policies, procedures and actions with
retroactive effect) as are necessary or appropriate to (i) exempt the Plan
and/or any Award from the application of Section 409A, (ii) preserve
the intended tax treatment of any such Award, or (iii) comply with the
requirements of Section 409A, including without limitation any such
regulations guidance, compliance programs and other interpretative authority
that may be issued after the date of grant of an Award.


 


11.2        Payments to Specified Employees.  Notwithstanding any contrary provision in the
Plan or Award Agreement, any payment(s) of nonqualified deferred
compensation (within the meaning of Section 409A) that are otherwise
required to be made under the Plan to a “specified employee” (as defined under Section 409A)
as a result of his or her separation from service (other than a payment that is
not subject to Section 409A) shall be delayed for the first six (6) months
following such separation from service (or, if earlier, the date of death of
the specified employee) and shall instead be paid (in a manner 


 


9

















 


set
forth in the Award Agreement) on the payment date that immediately follows the
end of such six-month period or as soon as administratively practicable within
90 days thereafter, but in no event later than the end of the applicable
taxable year.


 


11.3        Separation from Service.  A termination of employment shall not be
deemed to have occurred for purposes of any provision of the Plan or any Award
Agreement providing for the payment of any amounts or benefits that are
considered nonqualified deferred compensation under Section 409A upon or
following a termination of employment, unless such termination is also a “separation
from service” within the meaning of Section 409A and the payment thereof
prior to a “separation from service” would violate Section 409A.  For purposes of any such provision of the
Plan or any Award Agreement relating to any such payments or benefits,
references to a “termination,” “termination of employment” or like terms shall
mean “separation from service.”


 


11.4        Section 457A.  In the event any Award is subject to Section 457A
of the Code (“Section 457A”), the Committee may, in its sole
discretion and without a Participant’s prior consent, amend the Plan and/or
Awards, adopt policies and procedures, or take any other actions (including
amendments, policies, procedures and actions with retroactive effect) as are
necessary or appropriate to (i) exempt the Plan and/or any Award from the
application of Section 457A, (ii) preserve the intended tax treatment
of any such Award, or (iii) comply with the requirements of Section 457A,
including without limitation any such regulations, guidance, compliance
programs and other interpretative authority that may be issued after the date
of the grant.


 


Article 12.            Adjustments


 


12.1        Adjustments in Authorized Shares.  In the event of any corporate event or
transaction involving the Company, a Subsidiary and/or an Affiliate (including,
but not limited to, a change in the Shares of the Company or the capitalization
of the Company) such as a merger, consolidation, reorganization,
recapitalization, separation, extraordinary stock dividend, stock split,
reverse stock split, split up, spin-off, combination of Shares, exchange of
Shares, dividend in kind, amalgamation, or other like change in capital
structure (other than regular cash or stock dividends to shareholders of the
Company), or any similar corporate event or transaction, the Committee, to
prevent dilution or enlargement of Participants’ rights under the Plan, shall
substitute or adjust, in its sole discretion, the number and kind of Shares or
other property that may be issued under the Plan or under particular forms of
Awards, the number and kind of Shares or other property subject to outstanding
Awards, the Option Price, grant price or purchase price applicable to
outstanding Awards, the Annual Award Limits, and/or other value determinations
applicable to the Plan or outstanding Awards.


 


12.2        Change of Control.  Upon the occurrence of a Change of Control
after the Effective Date (as defined in the Joint Plan of Reorganization),
unless otherwise specifically prohibited under applicable laws or by the rules and
regulations of any governing governmental agencies or national securities
exchanges, or unless the Committee shall determine otherwise in the Award
Agreement, the Committee shall make one or more of the following adjustments to
the terms and conditions of outstanding Awards: 
(i) continuation or assumption of such outstanding Awards under the
Plan by the Company (if it is the surviving company or corporation) or by the
surviving company or corporation or its parent; (ii) substitution by the
surviving company or corporation or its parent of awards with substantially the
same terms for such outstanding Awards; (iii) accelerated exercisability,
vesting and/or lapse of restrictions under outstanding Awards immediately prior
to the occurrence of such event; (iv) upon written notice, provide that
any outstanding Awards must be exercised, to the extent then exercisable,
during a reasonable period of time immediately prior to the scheduled
consummation of the event, or such other period as determined by the Committee
(contingent upon the consummation of the event), and at the end of such period,
such Awards shall terminate to the extent not so exercised within the relevant
period; 


 


10

















 


and
(v) cancellation of all or any portion of outstanding Awards for fair
value (as determined in the sole discretion of the Committee and which may be
zero) which, in the case of Options and Stock Appreciation Rights or similar
Awards, if the Committee so determines, may equal the excess, if any, of the
value of the consideration to be paid in the Change of Control transaction to
holders of the same number of Shares subject to such Awards (or, if no such
consideration is paid, Fair Market Value of the Shares subject to such
outstanding Awards or portion thereof being canceled) over the aggregate Option
Price or grant price, as applicable, with respect to such Awards or portion
thereof being canceled (which may be zero).


 


Article 13.            Duration,
Amendment, Modification, Suspension and Termination


 


13.1        Duration
of the Plan.  Unless
sooner terminated as provided in Section 13.2, the Plan shall terminate on
the tenth (10th) anniversary of the Effective Date.


 


13.2        Amendment,
Modification, Suspension and Termination of Plan.  The Committee may amend, alter, suspend,
discontinue, or terminate (for purposes of this Section 13.2, an “Action”)
the Plan or any portion thereof or any Award (or Award Agreement) thereunder at
any time; provided that no such Action shall be
made, other than as permitted under Article 11 or 12, (i) without
shareholder approval (A) if such approval is necessary to comply with any
tax or regulatory requirement applicable to the Plan, (B) if such Action
increases the number of Shares available under the Plan (other than an increase
permitted under Article 5 absent shareholder approval), (C) if such
Action results in a material increase in benefits permitted under the Plan (but
excluding increases that are immaterial or that are minor and to benefit the
administration of the Plan, to take account of any changes in applicable law,
or to obtain or maintain favorable tax, exchange, or regulatory treatment for
the Company, a Subsidiary, and/or an Affiliate) or a change in eligibility
requirements under the Plan, or (D) for any Action that results in a
reduction of the Option Price or grant price per Share, as applicable, of any
outstanding Options or Stock Appreciation Rights or cancellation of any
outstanding Options or Stock Appreciation Rights in exchange for cash, or for
other Awards, such as other Options or Stock Appreciation Rights, with an
Option Price or grant price per Share, as applicable, that is less than such
price of the original Options or Stock Appreciation Rights, and (ii) without the written consent of the affected
Participant, if such Action would materially diminish the rights of any
Participant under any Award theretofore granted to such Participant under the
Plan; provided, further,
that the Committee may amend the Plan,
any Award or any Award Agreement without such consent of the Participant in
such manner as it deems necessary to comply with applicable laws, including
without limitation, the Dodd-Frank Wall Street Reform and Consumer
Protection Act.


 


Article 14.            General
Provisions


 


14.1        No
Right to Service.  The granting
of an Award under the Plan shall impose no obligation on the Company, any
Subsidiary or any Affiliate to continue the Service of a Participant and shall
not lessen or affect any right that the Company, any Subsidiary or any Affiliate
may have to terminate the Service of such Participant.  No Participant or other Person shall have any
claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards.  The terms and conditions of Awards and the
Committee’s determinations and interpretations with respect thereto need not be
the same with respect to each Participant (whether or not such Participants are
similarly situated).


 


14.2        Settlement
of Awards; Fractional Shares.  Each Award Agreement shall establish the form
in which the Award shall be settled.  The
Committee shall determine whether cash, Awards, other securities or other
property shall be issued or paid in lieu of fractional Shares or whether such
fractional Shares or any rights thereto shall be rounded, forfeited or
otherwise eliminated.


 


11

















 


14.3        Tax
Withholding.  The Company
shall have the power and the right to deduct or withhold automatically from any
amount deliverable under the Award or otherwise, or require a Participant to
remit to the Company, the minimum statutory amount to satisfy federal, state,
and local taxes, domestic or foreign, required by law or regulation to be
withheld with respect to any taxable event arising as a result of the
Plan.  With respect to required
withholding, Participants may elect (subject to the Company’s automatic
withholding right set out above), subject to the approval of the Committee, to
satisfy the withholding requirement, in whole or in part, by having the Company
withhold Shares having a Fair Market Value on the date the tax is to be
determined equal to the minimum statutory total tax that could be imposed on
the transaction.


 


14.4        No
Guarantees Regarding Tax Treatment.  Participants (or their beneficiaries) shall
be responsible for all taxes with respect to any Awards under the Plan.  The Committee and the Company make no
guarantees to any Person regarding the tax treatment of Awards or payments made
under the Plan.  Neither the Committee
nor the Company has any obligation to take any action to prevent the assessment
of any tax on any Person with respect to any Award under Section 409A of
the Code or Section 457A of the Code or otherwise and none of the Company,
any of its Subsidiaries or Affiliates, or any of their employees or
representatives shall have any liability to a Participant with respect thereto.


 


14.5        Non-Transferability
of Awards.  Unless
otherwise determined by the Committee, an Award shall not be transferable or
assignable by the Participant except in the event of his death (subject to the
applicable laws of descent and distribution) and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company or any Affiliate.  No transfer shall be permitted for value or
consideration.  An award exercisable
after the death of a Participant may be exercised by the heirs, legatees,
personal representatives or distributees of the Participant.  Any permitted transfer of the Awards to
heirs, legatees, personal representatives or distributees of the Participant
shall not be effective to bind the Company unless the Committee shall have been
furnished with written notice thereof and a copy of such evidence as the
Committee may deem necessary to establish the validity of the transfer and the
acceptance by the transferee or transferees of the terms and conditions hereof.


 


14.6        Conditions and Restrictions on
Shares.  The Committee may impose such
other conditions or restrictions on any Shares received in connection with an
Award as it may deem advisable or desirable. 
These restrictions may include, but shall not be limited to, a
requirement that the Participant hold the Shares received for a specified
period of time or a requirement that a Participant represent and warrant in
writing that the Participant is acquiring the Shares for investment and without
any present intention to sell or distribute such Shares.  The certificates for Shares may include any
legend which the Committee deems appropriate to reflect any conditions and
restrictions applicable to such Shares.


 


14.7        Compliance with Law.  The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies, or any stock
exchanges on which the Shares are admitted to trading or listed, as may be
required.  The Company shall have no
obligation to issue or deliver evidence of title for Shares issued under the
Plan prior to:


 


(a)                                 Obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable; and


 


(b)                                 Completion of
any registration or other qualification of the Shares under any applicable
national, state or foreign law or ruling of any governmental body that the
Company determines to be necessary or advisable.


 


12

















 


The restrictions contained
in this Section 14.7 shall be in addition to any conditions or restrictions
that the Committee may impose pursuant to Section 14.6.  The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company, its Subsidiaries and
Affiliates, and all of their employees and representatives of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.


 


14.8        Rights
as a Shareholder.  Except as
otherwise provided herein or in the applicable Award Agreement, a Participant
shall have none of the rights of a shareholder with respect to Shares covered
by any Award until the Participant becomes the record holder of such Shares.


 


14.9        Severability.  If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction, or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to applicable laws, or if it cannot be
so construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction, Person, or Award, and the remainder of the
Plan and any such Award shall remain in full force and effect.


 


14.10      Unfunded
Plan.  Participants shall have no right,
title, or interest whatsoever in or to any investments that the Company or any
of its Subsidiaries or Affiliates may make to aid it in meeting its obligations
under the Plan.  Nothing contained in the
Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind, or a fiduciary relationship between
the Company and any Participant, beneficiary, legal representative, or any
other Person.  To the extent that any Person
acquires a right to receive payments from the Company under the Plan, such
right shall be no greater than the right of an unsecured general creditor of
the Company.  All payments to be made
hereunder shall be paid from the general funds of the Company and no special or
separate fund shall be established and no segregation of assets shall be made
to assure payment of such amounts.  The
Plan is not subject to the U.S. Employee Retirement Income Security Act of
1974, as amended from time to time.


 


14.11      No
Constraint on Corporate Action.  Nothing in the Plan shall be construed to (i) limit,
impair, or otherwise affect the Company’s right or power to make adjustments,
reclassifications, reorganizations, or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell, or
transfer all or any part of its business or assets, or (ii) limit the
right or power of the Company to take any action which such entity deems to be
necessary or appropriate.


 


14.12      Successors.  All obligations of the Company under the Plan
with respect to Awards granted hereunder shall be binding on any successor to
the Company, whether the existence of such successor is the result of a direct
or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business or assets of the Company.


 


14.13      Governing
Law.  The Plan and each Award
Agreement shall be governed by the laws of the State of Delaware, excluding any
conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of the Plan to the substantive law of another
jurisdiction.


 


14.14      Data
Protection.  By
participating in the Plan, the Participant consents to the collection,
processing, transmission and storage by the Company in any form whatsoever, of
any data of a professional or personal nature which is necessary for the
purposes of introducing and administering the Plan.  The Company may share such information with
any Subsidiary or Affiliate, the trustee of any employee benefit trust, its
registrars, trustees, brokers, other third party administrator or any Person
who 


 


13

















 


obtains control of the Company or acquires the
Company, undertaking or part-undertaking which employs the Participant,
wherever situated.


 


14.15      Effective
Date.  The Plan shall be effective as
of October 27, 2010 (the “Effective Date”).


 


*        *        *


 


14