Document:

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                                                                    Exhibit 10.3

                          REGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT, dated as of June 27, 2003, is
entered into by and among Maguire Properties, Inc., a Maryland corporation (the
"Company"), Maguire Properties, L.P., a Maryland limited partnership (the
"Operating Partnership"), and each Option Entity (as defined below) and ROFO
Entity (as defined below) whose name is set forth on the signature pages hereto.

                                    RECITALS

            WHEREAS, in connection with the initial public offering of shares of
the Company's common stock, par value $.01 per share (the "Common Stock"), the
Company, the Operating Partnership and certain persons and entities engaged in
certain formation transactions (the "Formation Transactions"), whereby each such
person or entity contributed to the Operating Partnership their interests in
certain office properties and other assets (the "Properties") in exchange for
limited partnership interests ("OP Units") in the Operating Partnership and
entered into a registration rights agreement in substantially the form of this
Agreement;

            WHEREAS, in connection with the Formation Transactions, the
Operating Partnership entered into several option agreements (each, an "Option
Agreement") with entities who own interests in certain real property or
interests in entities that own real property (each, an "Option Entity") pursuant
to which each Option Entity granted the Operating Partnership the right to
acquire such interests (each, an "Option Interest") in exchange for OP Units in
the Operating Partnership;

            WHEREAS, in connection with the Formation Transactions, the
Operating Partnership entered into a Right of First Offer Agreement ("ROFO
Agreement") with each of the entities who own interests in certain real property
or interests in entities that own real property (each, a "ROFO Entity") pursuant
to which each ROFO Entity granted the Operating Partnership the right of first
offer with respect to the properties described therein (each, a "ROFO Interest")
in exchange for OP Units in the Operating Partnership;

            WHEREAS, at such time as the Operating Partnership acquires an
Option Interest or ROFO Interest, such Option Entity or ROFO Entity, as
applicable, without further action by the Option Entity or ROFO Entity, as
applicable, will become a Unit Holder (as defined below) for purposes hereof and
will have all of the rights and obligations of the Unit Holders under this
Agreement;

            WHEREAS, pursuant to the Partnership Agreement (as defined below) OP
Units owned by the Maguire Persons (as defined below) will be redeemable for
cash or exchangeable for shares of Common Stock of the Company upon the terms
and subject to the conditions contained therein; and

            WHEREAS, the Option Entities are willing to grant options to the
Operating Partnership to acquire their Option Interests and the ROFO Entities
are willing to grant the Operating Partnership a right of first offer to acquire
the ROFO Interests in consideration of receiving, among other things, the
registration rights set forth in Article II hereof.
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            NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained, and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

            SECTION 1.1. Definitions. In addition to the definitions set forth
above, the following terms, as used herein, have the following meanings:

            "Affiliate" of any Person means any other Person directly or
indirectly controlling or controlled by or under common control with such
Person. For the purposes of this definition, "control" when used with respect to
any Person, means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise; and the
terms "controlling" and "controlled" have meanings correlative to the foregoing.

            "Agreement" means this Registration Rights Agreement, as it may be
amended, supplemented or restated from time to time.

            "Articles of Incorporation" means the Amended and Restated Articles
of Incorporation of the Company as filed with the Secretary of State of the
State of Maryland on _________, 2003, as the same may be amended, modified or
restated from time to time.

            "Business Day" means any day except a Saturday, Sunday or other day
on which commercial banks in The City of New York or Los Angeles, California are
authorized by law to close.

            "Commission" means the Securities and Exchange Commission.

            "Demand Registration" means a Demand Registration as defined in
Section 2.2.

            "Exchange Act" means the Securities Exchange Act of 1934, as amended
and the rules and regulations promulgated thereunder.

            "Exchangeable OP Units" means OP Units which may be redeemable for
cash or exchangeable for Common Stock pursuant to Section 8.6 of the Partnership
Agreement (without regard to any limitations on the exercise of such exchange
right as a result of the Ownership Limit Provisions).

            "General Partner" means the Company or its successors as general
partner of the Operating Partnership.

            "Holder" means any Maguire Person who is the record or beneficial
owner of any Registrable Security or any assignee or transferee of such
Registrable Security (including assignments or transfers of Registrable
Securities to such assignees or transferees as a result of the foreclosure on
any loans secured by such Registrable Securities) to the extent (x) permitted
under the Partnership Agreement and (y) such assignee or transferee agrees in
writing to be

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bound by all the provisions hereof, unless such Registrable Security is acquired
in a public distribution pursuant to a registration statement under the
Securities Act or pursuant to transactions exempt from registration under the
Securities Act where securities sold in such transaction may be resold without
subsequent registration under the Securities Act.

            "Immediate Family" of any individual means such individual's estate
and heirs or current spouse, or former spouse, parents, parents-in-law, children
(whether natural or adoptive or by marriage), siblings and grandchildren and any
trust or estate, all of the beneficiaries of which consist of such individual or
any of the foregoing.

            "Initial Public Offering" means the offering of the Company's Common
Stock pursuant to the Form S-11 Registration Statement (No. 333-101170) filed by
the Company with the Commission under the Securities Act.

            "Maguire Persons" means (i) any Unit Holder, (ii) any partner,
member or stockholder of the Unit Holders, (iii) any Affiliates of any such
partner, member or stockholder, and (iv) the Immediate Family of any of the
foregoing.

            "Market Value" means, with respect to the Common Stock, the average
of the daily market price for the ten (10) consecutive trading days immediately
preceding the date of a written request for registration pursuant to Section
2.2(a). The market price for each such trading day shall be: (i) if the Common
Stock is listed or admitted to trading on any securities exchange or the
NASDAQ-National Market System, the closing price, regular way, on such day, or
if no such sale takes place on such day, the average of the closing bid and
asked prices on such day, in either case as reported in the principal
consolidated transaction reporting system, (ii) if the Common Stock is not
listed or admitted to trading on any securities exchange or the NASDAQ-National
Market System, the last reported sale price on such day or, if no sale takes
place on such day, the average of the closing bid and asked prices on such day,
as reported by a reliable quotation source designated by the Company, or (iii)
if the Common Stock is not listed or admitted to trading on any securities
exchange or the NASDAQ-National Market System and no such last reported sale
price or closing bid and asked prices are available, the average of the reported
high bid and low asked prices on such day, as reported by a reliable quotation
source designated by the Company, or if there shall be no bid and asked prices
on such day, the average of the high bid and low asked prices, as so reported,
on the most recent day (not more than (10) days prior to the date in question)
for which prices have been so reported; provided that if there are no bid and
asked prices reported during the ten (10) days prior to the date in question,
the Market Value of the Common Stock shall be determined by the Board of
Directors of the Company acting in good faith on the basis of such quotations
and other information as it considers, in its reasonable judgment, appropriate.

            "Ownership Limit Provisions" mean the various provisions of the
Company's Charter set forth in ARTICLE SEVENTH thereof restricting the ownership
of Common Stock by Persons to specified percentages of the outstanding Common
Stock.

            "Partnership Agreement" means the amended and restated agreement of
limited partnership of the Operating Partnership dated as of _________, 2003, as
the same may be amended, modified or restated from time to time.

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            "Person" means an individual or a corporation, partnership, limited
liability company, association, trust, or any other entity or organization,
including a government or political subdivision or an agency or instrumentality
thereof.

            "Piggy-Back Registration" means a Piggy-Back Registration as defined
in Section 2.3.

            "Registrable Securities" means shares of Common Stock of the Company
at any time owned, either of record or beneficially, by any Maguire Person and
issued upon exchange of Exchangeable OP Units received pursuant to an Option
Agreement or ROFO Agreement, as applicable, (including, without limitation,
shares of Common Stock issuable upon exchange of Exchangeable OP Units) and any
additional Common Stock issued as a dividend, distribution or exchange for, or
in respect of such shares until (i) a registration statement covering such
shares has been declared effective by the Commission and such shares have been
disposed of pursuant to such effective registration statement, (ii) such shares
are sold under circumstances in which all of the applicable conditions of Rule
144 (or any similar provisions then in force) under the Securities Act are met
or under which such shares may be sold pursuant to Rule 144(k), (iii) such
shares held by such Person may be sold pursuant to Rule 144 under the Securities
Act and could be sold in one transaction in accordance with the volume
limitations contained in Rule 144(e)(1)(i) under the Securities Act, or (iv)
such shares have been otherwise transferred in a transaction that would
constitute a sale thereof under the Securities Act, the Company has delivered a
new certificate or other evidence of ownership for such shares not bearing the
Securities Act restricted stock legend and such shares may be resold without
subsequent registration under the Securities Act.

            "Securities Act" means the Securities Act of 1933, as amended and
the rules and regulations promulgated thereunder.

            "Selling Holder" means a Holder who is selling Registrable
Securities pursuant to a registration statement under the Securities Act.

            "Shelf Registration Statement" means a Shelf Registration statement
as defined in Section 2.1.

            "Underwriter" means a securities dealer who purchases any
Registrable Securities as principal and not as part of such dealer's
market-making activities.

            "Unit Holder" means any Option Entity or ROFO Entity whose Option
Interest or ROFO Interest, as applicable, has been acquired by the Operating
Partnership in exchange for OP Units.

                                   ARTICLE II
                               REGISTRATION RIGHTS

            SECTION 2.1. Shelf Registration. Commencing on or after fourteen
months after the Operating Partnership's acquisition of each Option Interest or
ROFO Interest, as applicable, the Company shall prepare and file a "shelf"
registration statement with respect to shares of Common Stock issuable upon the
exchange of Exchangeable OP Units acquired

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pursuant to the terms of such Option Agreement or ROFO Agreement, as applicable,
on an appropriate form for an offering to be made on a continuous basis pursuant
to Rule 415 under the Securities Act (the "Shelf Registration Statement") and
shall use its best efforts to cause the Shelf Registration Statement to be
declared effective on or as soon as practicable thereafter, and to keep such
Shelf Registration Statement continuously effective for a period ending when all
shares of Common Stock covered by such Shelf Registration Statement are no
longer Registrable Securities. In the event that the Company fails to file, or
if filed fails to maintain the effectiveness of, such Shelf Registration
Statement, Holders of shares of Common Stock issuable upon the exchange of
Exchangable OP Units acquired pursuant to the Option Agreements or ROFO
Agreement, as applicable, may make a written request for a Demand Registration
(as defined below) pursuant to Section 2.2 herein or Piggy Back Registration (as
defined below) pursuant to Section 2.3 herein; provided, further, that if and so
long as a Shelf Registration Statement is on file and effective, then the
Company shall have no obligation to effect a Demand Registration or Piggy Back
Registration.

            SECTION 2.2. Demand Registration.

                  (a)   Request for Registration. Subject to Section 2.1 hereof,
commencing on or after the date which is fourteen months after the Operating
Partnership's acquisition of each Option Interest or ROFO Interest, as
applicable, Holders of Registrable Securities may make a written request for
registration under the Securities Act of all or part of its or their Registrable
Securities (a "Demand Registration"); provided, that the Company shall not be
obligated to effect more than one Demand Registration in any twelve month
period; and provided, further, that the number of shares of Registrable
Securities proposed to be sold by the Holders making such written request shall
have a Market Value of at least $5,000,000. Subject to the foregoing, the number
of Demand Registrations which may be made pursuant to this Section 2.2 shall be
unlimited. Any such request will specify the number of shares of Registrable
Securities proposed to be sold and will also specify the intended method of
disposition thereof. Within ten (10) days after receipt of such request, the
Company will give written notice of such registration request to all other
Holders of the Registrable Securities and include in such registration all such
Registrable Securities with respect to which the Company has received written
requests for inclusion therein within twenty (20) Business Days after the
receipt by the applicable Holder of the Company's notice. Each such request will
also specify the number of shares of Registrable Securities to be registered and
the intended method of disposition thereof. Unless the Holder or Holders of a
majority of the Registrable Securities to be registered in such Demand
Registration shall consent in writing, no other party, including the Company
(but excluding another Holder of a Registrable Security), shall be permitted to
offer securities under any such Demand Registration.

                  (b)   Effective Registration. A registration will not count as
a Demand Registration until it has become effective.

                  (c)   Selling Holders Become Party to Agreement. Each Holder
acknowledges that by asserting or participating in its registration rights
pursuant to this Article II, he or she may become a Selling Holder and thereby
will be deemed a party to this Agreement and will be bound by each of its terms.

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                  (d)   Priority on Demand Registrations. If the Holders of a
majority of shares of the Registrable Securities to be registered in a Demand
Registration so elect by written notice to the Company, the offering of such
Registrable Securities pursuant to such Demand Registration shall be in the form
of an underwritten offering. The Company shall select the book-running managing
Underwriter in connection with any such Demand Registration; provided that such
managing Underwriter must be reasonably satisfactory to the Holders of a
majority of the shares of the Registrable Securities. The Company may select any
additional investment banks and managers to be used in connection with the
offering; provided that such additional investment bankers and managers must be
reasonably satisfactory to a majority of the Holders making such Demand
Registration. To the extent 10% or more of the Registrable Securities so
requested to be registered are excluded from the offering in accordance with
Section 2.4, the Holders of such Registrable Securities shall have the right to
one additional Demand Registration under this Section in such twelve-month
period with respect to such Registrable Securities.

            SECTION 2.3. Piggy-Back Registration. Subject to Section 2.1 hereof,
if the Company proposes to file a registration statement under the Securities
Act with respect to an underwritten equity offering by the Company for its own
account or for the account of any of its respective securityholders of any class
of security (other than (i) any registration statement filed by the Company
under the Securities Act relating to an offering of Common Stock for its own
account as a result of the exercise of the exchange rights set forth in Section
8.6 of the Partnership Agreement, (ii) any registration statement filed in
connection with a demand registration other than a Demand Registration under
this Agreement or (iii) a registration statement on Form S-4 or S-8 (or any
substitute form that may be adopted by the Commission) or filed in connection
with an exchange offer or offering of securities solely to the Company's
existing securityholders), then the Company shall give written notice of such
proposed filing to the Holders of Registrable Securities as soon as practicable
(but in no event less than ten (10) days before the anticipated filing date),
and such notice shall offer such Holders the opportunity to register such number
of shares of Registrable Securities as each such Holder may request (a
"Piggy-Back Registration"). The Company shall use its commercially reasonable
efforts to cause the managing Underwriter or Underwriters of a proposed
underwritten offering to permit the Registrable Securities requested to be
included in a Piggy-Back Registration to be included on the same terms and
conditions as any similar securities of the Company included therein.

            SECTION 2.4. Reduction of Offering. Notwithstanding anything
contained herein, if the managing Underwriter or Underwriters of an offering
described in Section 2.2 or 2.3 deliver a written opinion to the Company and the
Holders of the Registrable Securities included in such offering that (i) the
size of the offering that the Holders, the Company and such other persons intend
to make or (ii) the kind of securities that the Holders, the Company and/or any
other persons or entities intend to include in such offering are such that the
success of the offering would be materially and adversely affected by inclusion
of the Registrable Securities requested to be included, then (A) if the size of
the offering is the basis of such Underwriter's opinion, the amount of
securities to be offered for the accounts of Holders shall be reduced pro rata
(according to the Registrable Securities proposed for registration) to the
extent necessary to reduce the total amount of securities to be included in such
offering to the amount recommended by such managing Underwriter or Underwriters;
provided that, in the case of a Piggy-Back Registration, if securities are being
offered for the account of other persons or entities as well as

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the Company, then with respect to the Registrable Securities intended to be
offered by Holders, the proportion by which the amount of such class of
securities intended to be offered by Holders is reduced shall not exceed the
proportion by which the amount of such class of securities intended to be
offered by such other persons or entities is reduced; and (B) if the combination
of securities to be offered is the basis of such Underwriter's opinion, (x) the
Registrable Securities to be included in such offering shall be reduced as
described in clause (A) above (subject to the proviso in clause (A)) or, (y) if
the actions described in clause (x) would, in the judgment of the managing
Underwriter, be insufficient to substantially eliminate the adverse effect that
inclusion of the Registrable Securities requested to be included would have on
such offering, such Registrable Securities will be excluded from such offering.

            SECTION 2.5. Registration Procedures; Filings; Information. In
connection with any Shelf Registration Statement under Section 2.1 or whenever
Holders request that any Registrable Securities be registered pursuant to
Section 2.2 hereof, the Company will use its best efforts to effect the
registration and the sale of such Registrable Securities in accordance with the
intended method of disposition thereof as quickly as practicable, and in
connection with any such request:

                  (a)   The Company will as expeditiously as possible prepare
and file with the Commission a registration statement on any form for which the
Company then qualifies or which counsel for the Company shall deem appropriate
and which form shall be available for the sale of the Registrable Securities to
be registered thereunder in accordance with the intended method of distribution
thereof, and use its best efforts to cause such filed registration statement to
become and remain effective for a period of not less than 270 days; provided
that if the Company shall furnish to the Holders making a request pursuant to
Section 2.2 a certificate signed by either its Chairman, Vice Chairman, Chief
Executive Officer or President stating that in his or her good faith judgment it
would be significantly disadvantageous to the Company or its shareholders for
such a registration statement to be filed as expeditiously as possible, the
Company shall have a period of not more than 180 days within which to file such
registration statement measured from the date of receipt of the request in
accordance with Section 2.2.

                  (b)   The Company will, if requested, prior to filing a
registration statement or prospectus or any amendment or supplement thereto,
furnish to each Selling Holder and each Underwriter, if any, of the Registrable
Securities covered by such registration statement copies of such registration
statement as proposed to be filed, and thereafter furnish to such Selling Holder
and Underwriter, if any, such number of conformed copies of such registration
statement, each amendment and supplement thereto (in each case including all
exhibits thereto and documents incorporated by reference therein), the
prospectus included in such registration statement (including each preliminary
prospectus) and such other documents as such Selling Holder or Underwriter may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by such Selling Holder.

                  (c)   After the filing of the registration statement, the
Company will promptly notify each Selling Holder of Registrable Securities
covered by such registration statement of any stop order issued or threatened by
the Commission and take all reasonable actions required to prevent the entry of
such stop order or to remove it if entered.

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                  (d)   The Company will use its best efforts to (i) register or
qualify the Registrable Securities under such other securities or blue sky laws
of such jurisdictions in the United States (where an exemption does not apply)
as any Selling Holder or managing Underwriter or Underwriters, if any,
reasonably (in light of such Selling Holder's intended plan of distribution)
requests and (ii) cause such Registrable Securities to be registered with or
approved by such other governmental agencies or authorities as may be necessary
by virtue of the business and operations of the Company and do any and all other
acts and things that may be reasonably necessary or advisable to enable such
Selling Holder to consummate the disposition of the Registrable Securities owned
by such Selling Holder; provided that the Company will not be required to (A)
qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph (d), (B) subject itself
to taxation in any such jurisdiction or (C) consent to general service of
process in any such jurisdiction.

                  (e)   The Company will immediately notify each Selling Holder
of such Registrable Securities, at any time when a prospectus relating thereto
is required to be delivered under the Securities Act, of the occurrence of an
event requiring the preparation of a supplement or amendment to such prospectus
so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus will not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading and promptly make available to each Selling
Holder any such supplement or amendment.

                  (f)   The Company will enter into customary agreements
(including an underwriting agreement, if any, in customary form) and take such
other actions as are reasonably required in order to expedite or facilitate the
disposition of such Registrable Securities.

                  (g)   The Company will make available for inspection by any
Selling Holder of such Registrable Securities, any Underwriter participating in
any disposition pursuant to such registration statement and any attorney,
accountant or other professional retained by any such Selling Holder or
Underwriter (collectively, the "Inspectors"), all financial and other records,
pertinent corporate documents and properties of the Company (collectively, the
"Records") as shall be reasonably necessary to enable them to exercise their due
diligence responsibility, and cause the Company's officers, directors and
employees to supply all information reasonably requested by any Inspectors in
connection with such registration statement. Records which the Company
determines, in good faith, to be confidential and which it notifies the
Inspectors are confidential shall not be disclosed by the Inspectors unless (i)
the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in such registration statement or (ii) the release of such Records
is ordered pursuant to a subpoena or other order from a court of competent
jurisdiction. Each Selling Holder of such Registrable Securities agrees that
information obtained by it as a result of such inspections shall be deemed
confidential and shall not be used by it as the basis for any market
transactions in the securities of the company or its Affiliates unless and until
such is made generally available to the public. Each Selling Holder of such
Registrable Securities further agrees that it will, upon learning that
disclosure of such Records is sought in a court of competent jurisdiction, give
notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of the Records deemed confidential.

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                  (h)   The Company will furnish to each Selling Holder and to
each Underwriter, if any, a signed counterpart, addressed to such Selling Holder
or Underwriter, of (i) an opinion or opinions of counsel to the Company and (ii)
if eligible under SAS 72, a comfort letter or comfort letters from the Company's
independent public accountants, each in customary form and covering such matters
of the type customarily covered by opinions or comfort letters, as the case may
be, as the Holders of a majority of the Registrable Securities included in such
offering or the managing Underwriter or Underwriters therefor reasonably
requests.

                  (i)   The Company will otherwise use its best efforts to
comply with all applicable rules and regulations of the Commission, and make
available to its securityholders, as soon as reasonably practicable, an earnings
statement covering a period of 12 months, beginning within three months after
the effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of
the Commission promulgated thereunder (or any successor rule or regulation
hereafter adopted by the Commission).

                  (j)   The Company will use its best efforts to cause all such
Registrable Securities to be listed on each securities exchange on which similar
securities issued by the Company are then listed.

                  The Company may require each Selling Holder of Registrable
Securities to promptly furnish in writing to the Company such information
regarding such selling Holder, the Registrable Securities held by it and the
intended method of distribution of the Registrable Securities as the Company may
from time to time reasonably request and such other information as may be
legally required in connection with such registration.

                  Each Selling Holder agrees that, upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
2.5(e) hereof, such Selling Holder will forthwith discontinue disposition of
Registrable Securities pursuant to the registration statement covering such
Registrable Securities until such Selling Holder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 2.5(e) hereof, and,
if so directed by the Company, such Selling Holder will deliver to the Company
all copies, other than permanent file copies then in such Selling Holder's
possession, of the most recent prospectus covering such Registrable Securities
at the time of receipt of such notice. Each Selling Holder of Registrable
Securities agrees that it will immediately notify the Company at any time when a
prospectus relating to the registration of such Registrable Securities is
required to be delivered under the Securities Act of the happening of an event
as a result of which information previously furnished by such Selling Holder to
the Company in writing for inclusion in such prospectus contains an untrue
statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances in which they were made. In the event the Company
shall give such notice, the Company shall extend the period during which such
registration statement shall be maintained effective (including the period
referred to in Section 2.5(a) hereof) by the number of days during the period
from and including the date of the giving of notice pursuant to Section 2.5(e)
hereof to the date when the Company shall make available to the Selling Holders
of Registrable Securities covered by such registration statement a prospectus
supplemented or amended to conform with the requirements of Section 2.5(e)
hereof.

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            SECTION 2.6. Registration Expenses. In connection with any
registration statement required to be filed hereunder, the Company shall pay the
following registration expenses incurred in connection with the registration
hereunder (the "Registration Expenses"): (i) all registration and filing fees,
(ii) fees and expenses of compliance with securities or blue sky laws (including
reasonable fees and disbursements of counsel in connection with blue sky
qualifications of the Registrable Securities), (iii) printing expenses, (iv)
internal expenses (including, without limitation, all salaries and expenses of
its officers and employees performing legal or accounting duties), (v) the fees
and expenses incurred in connection with the listing of the Registrable
Securities, (vi) reasonable fees and disbursements of counsel for the Company
and customary fees and expenses for independent certified public accountants
retained by the Company (including the expenses of any comfort letters or costs
associated with the delivery by independent certified public accountants of a
comfort letter or comfort letters requested pursuant to Section 2.5(h) hereof),
and (vii) the reasonable fees and expenses of any special experts retained by
the Company in connection with such registration. The Company shall have no
obligation to pay any underwriting fees, discounts or commissions attributable
to the sale of Registrable Securities, or any out-of-pocket expenses of the
Holders (or the agents who manage their accounts) or any transfer taxes relating
to the registration or sale of the Registrable Securities.

            SECTION 2.7. Indemnification by the Company. The Company agrees to
indemnify and hold harmless each Selling Holder of Registrable Securities, its
officers, directors and agents, and each Person, if any, who controls such
Selling Holder within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act from and against any and all losses, claims, damages and
liabilities caused by any untrue statement or alleged untrue statement of a
material fact contained in any registration statement or prospectus relating to
the Registrable Securities (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto) or any preliminary prospectus,
or caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, except
insofar as such losses, claims, damages or liabilities are caused by any such
untrue statement or omission or alleged untrue statement or omission based upon
information furnished in writing to the Company by such Selling Holder or on
such Selling Holder's behalf expressly for inclusion therein. The Company also
agrees to indemnify any Underwriters of the Registrable Securities, their
officers and directors and each Person who controls such underwriters within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act on
substantially the same basis as that of the indemnification of the Selling
Holders provided in this Section 2.7, provided that the foregoing indemnity with
respect to any preliminary prospectus shall not inure to the benefit of any
Underwriter of the Registrable Securities from whom the person asserting any
such losses, claims, damages or liabilities purchased the Registrable Securities
which are the subject thereof if such person did not receive a copy of the
prospectus (or the prospectus as supplemented) at or prior to the confirmation
of the sale of such Registrable Securities to such person in any case where such
delivery is required by the Securities Act and the untrue statement or omission
of a material fact contained in such preliminary prospectus was corrected in the
prospectus (or the prospectus as supplemented).

            SECTION 2.8. Indemnification by Holders of Registrable Securities.
Each Selling Holder agrees, severally but not jointly, to indemnify and hold
harmless the Company, its

                                       10
<PAGE>
officers, directors and agents and each Person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act to the same extent as the foregoing indemnity from the Company
to such Selling Holder, but only with respect to information relating to such
Selling Holder furnished in writing by such Selling Holder or on such Selling
Holder's behalf expressly for use in any registration statement or prospectus
relating to the Registrable Securities, or any amendment or supplement thereto,
or any preliminary prospectus. In case any action or proceeding shall be brought
against the Company or its officers, directors or agents or any such controlling
person, in respect of which indemnity may be sought against such Selling Holder,
such Selling Holder shall have the rights and duties given to the Company, and
the Company or its officers, directors or agents or such controlling person
shall have the rights and duties given to such Selling Holder, by Section 2.7.
Each Selling Holder also agrees to indemnify and hold harmless Underwriters of
the Registrable Securities, their officers and directors and each Person who
controls such Underwriters within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act on substantially the same basis as that of
the indemnification of the Company provided in this Section 2.8.

            SECTION 2.9. Conduct of Indemnification Proceedings. In case any
proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to
Section 2.7 or 2.8, such person (an "Indemnified Party") shall promptly notify
the person against whom such indemnity may be sought (an "Indemnifying Party")
in writing and the Indemnifying Party shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to such Indemnified
Party, and shall assume the payment of all fees and expenses. In any such
proceeding, any Indemnified Party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party unless (i) the Indemnifying Party and the Indemnified
Party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the Indemnified Party and the Indemnifying Party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the Indemnifying Party
shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to any local counsel) at any time for
all such Indemnified Parties, and that all such fees and expenses shall be
reimbursed as they are incurred. In the case of any such separate firm for the
Indemnified Parties, such firm shall be designated in writing by (i) in the case
of Persons indemnified pursuant to Section 2.7 hereof, the Selling Holders which
owned a majority of the Registrable Securities sold under the applicable
registration statement and (ii) in the case of Persons indemnified pursuant to
Section 2.8, the Company. The Indemnifying Party shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent, or if there be a final judgment for the plaintiff,
the Indemnifying Party shall indemnify and hold harmless such Indemnified
Parties from and against any loss or liability (to the extent stated above) by
reason of such settlement or judgment. Notwithstanding the foregoing sentence,
if at any time an Indemnified Party shall have requested an Indemnifying Party
to reimburse the Indemnified Party for fees and expenses of counsel as
contemplated by the third sentence of this paragraph, the Indemnifying Party
agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30
Business Days after receipt by such Indemnifying Party of the aforesaid

                                       11
<PAGE>
request and (ii) such Indemnifying Party shall not have reimbursed the
Indemnified Party in accordance with such request prior to the date of such
settlement. No Indemnifying Party shall, without the prior written consent of
the Indemnified Party, effect any settlement of any pending or threatened
proceeding in respect of with any Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party,
unless such settlement includes an unconditional release of such Indemnified
Party from all liability arising out of such proceeding.

            SECTION 2.10. Contribution. If the indemnification provided for in
Section 2.7 or 2.8 hereof is unavailable to an Indemnified Party or insufficient
in respect of any losses, claims, damages or liabilities referred to herein,
then each such Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages or liabilities (i) as between the
Company and the Selling Holders on the one hand and the Underwriters on the
other, in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Selling Holders on the one hand and the
Underwriters on the other from the offering of the securities, or if such
allocation is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits but also the relative
fault of the Company and the Selling Holders on the one hand and of the
Underwriters on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations and (ii) between the Company on the one hand
and each Selling Holder on the other, in such proportion as is appropriate to
reflect the relative fault of the Company and of each Selling Holder in
connection with such statements or omissions which resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Selling
Holders on the one hand and the Underwriters on the other shall be deemed to be
in the same proportion as the total proceeds from the offering (net of
underwriting discounts and commissions but before deducting expenses) received
by the Company and the Selling Holders bear to the total underwriting discounts
and commissions received by the Underwriters, in each case as set forth in the
table on the cover page of the prospectus. The relative fault of the Company and
the Selling Holders on the one hand and of the Underwriters on the other shall
be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company and the Selling
Holders or by the Underwriters. The relative fault of the Company on the one
hand and of each Selling Holder on the other shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by such party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

            The Company and the Selling Holders agree that it would not be just
and equitable if contribution pursuant to this Section 2.10 were determined by
pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to in the immediately preceding
paragraph. The amount paid or payable by an Indemnified Party as a result of the
losses, claims, damages or liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other

                                       12
<PAGE>
expenses reasonably incurred by such Indemnified Party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 2.10, no Underwriter shall be required to contribute
any amount in excess of the amount by which the total price at which the
securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such Underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission, and no Selling Holder shall be required to
contribute any amount in excess of the amount by which the total price at which
the securities of such Selling Holder were offered to the public exceeds the
amount of any damages which such Selling Holder has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The Selling
Holder's obligations to contribute pursuant to this Section 2.10 are several in
proportion to the proceeds of the offering received by such Selling Holder bears
to the total proceeds of the offering received by all the Selling Holders and
not joint.

            SECTION 2.11. Participation in Underwritten Registrations. No Person
may participate in any underwritten registration hereunder unless such Person
(a) agrees to sell such Person's securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements and these
registration rights provided for in this Article II.

            SECTION 2.12. Rule 144. The Company covenants that it will file any
reports required to be filed by it under the Securities Act and the Exchange Act
and that it will take such further action as any Holder may reasonably request,
all to the extent required from time to time to enable Holders to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144 under the Securities Act,
as such Rule may be amended from time to time, or (b) any similar rule or
regulation hereafter adopted by the Commission. Upon the request of any Holder,
the Company will deliver to such Holder a written statement as to whether it has
complied with such requirements.

            SECTION 2.13. Holdback Agreements.

                  (a)   Restrictions on Public Sale by Holder of Registrable
Securities. To the extent not inconsistent with applicable law, each Holder
whose securities are included in a registration statement agrees not to effect
any sale or distribution of the issue being registered or a similar security of
the Company, or any securities convertible into or exchangeable or exercisable
for such securities, including a sale pursuant to Rule 144 under the Securities
Act, during the 14 days prior to, and during the 90-day period beginning on, the
effective date of such registration statement (except as part of such
registration), if and to the extent requested in writing by the Company in the
case of a non-underwritten public offering or if and to the extent requested in
writing by the managing underwriter or Underwriters in the case of an
underwritten public offering.

                                       13
<PAGE>
                  (b)   Restrictions on Public Sale by the Company and Others.
The Company agrees that any agreement entered into after the date of this
Agreement pursuant to which the Company issues or agrees to issue any privately
placed securities shall contain a provision under which holders of such
securities agree not to effect any sale or distribution of any securities
similar to those being registered in accordance with Section 2.2 or Section 2.3
hereof, or any securities convertible into or exchangeable or exercisable for
such securities, during the 14 days prior to, and during the 90-day period
beginning on, the effective date of any registration statement (except as part
of such registration statement where the Holders of a majority of the
Registrable Securities to be included in such registration statement consent or
as part of registration statements filed as set forth in Section 2.3(i) or
(iii)), if and to the extent requested in writing by the Company in the case of
a non-underwritten public offering or if and to the extent requested in writing
by the managing Underwriter or Underwriters in the case of an underwritten
public offering, in each case including a sale pursuant to Rule 144 under the
Securities Act (except as part of any such registration, if permitted);
provided, however, that the provisions of this paragraph (b) shall not prevent
the conversion or exchange of any securities pursuant to their terms into or for
other securities.

                  (c)   If the Company determines in its good faith judgment
that the filing of the Shelf Registration Statement under Section 2.1 or a
Demand Registration under Section 2.2 hereof or the use of any related
prospectus would require the disclosure of material information that the Company
has a bona fide business purpose for preserving as confidential or the
disclosure of which would impede the Company's ability to consummate a
significant transaction, and that the Company is not otherwise required by
applicable securities laws or regulations to disclose, upon written notice of
such determination by the Company, the rights of the Holders to offer, sell or
distribute any Registrable Securities pursuant to the Shelf Registration
Statement or a Demand Registration or to require the Company to take action with
respect to the registration or sale of any Registrable Securities pursuant to
the Shelf Registration Statement or a Demand Registration shall be suspended
until the earlier of (i) the date upon which the Company notifies the Holders in
writing that suspension of such rights for the grounds set forth in this Section
2.12(c) is no longer necessary and (ii) 180 days. The Company agrees to give
such notice as promptly as practicable following the date that such suspension
of rights is no longer necessary.

                  (d)   If all reports required to be filed by the Company
pursuant to the Exchange Act have not been filed by the required date without
regard to any extension, or if the consummation of any business combination by
the Company has occurred or is probable for purposes of Rule 3-05 or Article 11
of Regulation S-X under the Act, upon written notice thereof by the Company to
the Holders, the rights of the Holders to offer, sell or distribute any
Registrable Securities pursuant to the Shelf Registration Statement or a Demand
Registration or to require the Company to take action with respect to the
registration or sale of any Registrable Securities pursuant to the Shelf
Registration Statement or a Demand Registration shall be suspended until the
date on which the Company has filed such reports or obtained and filed the
financial information required by Rule 3-05 or Article 11 of Regulation S-X to
be included or incorporated by reference, as applicable, in the Shelf
Registration Statement, and the Company shall notify the Holders as promptly as
practicable when such suspension is no longer required.

                                       14
<PAGE>
                                   ARTICLE III
                                  MISCELLANEOUS

            SECTION 3.1. New York Stock Exchange Listing. In the event that the
Company shall issue any Common Stock in exchange for OP Units pursuant to
Section 8.6 of the Partnership Agreement, then in any such case the Company
agrees to cause any such shares of Common Stock to be listed on the New York
Stock Exchange prior to or concurrently with the issuance thereof by the
Company.

            SECTION 3.2. Remedies. In addition to being entitled to exercise all
rights provided herein and granted by law, including recovery of damages, the
Maguire Persons shall be entitled to specific performance of the rights under
this Agreement. The Company agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions
of this Agreement and hereby agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

            SECTION 3.3. Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, in each case without the written consent of
the Company and the Holders of a majority of the Registrable Securities. No
failure or delay by any party to insist upon the strict performance of any
covenant, duty, agreement or condition of this Agreement or to exercise any
right or remedy consequent upon any breach thereof shall constitute waiver of
any such breach or any other covenant, duty, agreement or condition.

            SECTION 3.4. Notices. All notices and other communications in
connection with this Agreement shall be made in writing by hand delivery,
registered first-class mail, telex, telecopier, or air courier guaranteeing
overnight delivery:

            (1)   if to any Maguire Person, initially c/o the Operating
Partnership initially at 555 West Fifth Street, Suite 5000, Los Angeles,
California 90013 (Attention: President), or to such other address and to such
other Persons as any Maguire Person may hereafter specify in writing; and

            (2)   if to the Company, initially at 555 West Fifth Street, Suite
5000, Los Angeles, California 90013 (Attention: President), or to such other
address as the Company may hereafter specify in writing.

            All such notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; when
received if deposited in the mail, postage prepaid, if mailed; when answered
back, if telexed; when receipt acknowledged, if telecopied; and on the next
business day, if timely delivered to an air courier guaranteeing overnight
delivery.

            SECTION 3.5. Successors and Assigns. Except as expressly provided in
this Agreement the rights and obligations of the Maguire Persons under this
Agreement shall not be assignable by any Maguire Person to any Person that is
not a Maguire Person. This Agreement shall be binding upon the parties hereto
and their respective successors and assigns.

                                       15
<PAGE>
            SECTION 3.6. Counterparts. This Agreement may be executed in any
number of counterparts and by the parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Each party shall
become bound by this Agreement immediately upon affixing its signature hereto.

            SECTION 3.7. Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of California
without regard to the choice of law provisions thereof.

            SECTION 3.8. Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

            SECTION 3.9. Entire Agreement. This Agreement is intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted by the Company with
respect to the Registrable Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matter.

            SECTION 3.10. Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

            SECTION 3.11. No Third Party Beneficiaries. Nothing express or
implied herein is intended or shall be construed to confer upon any person or
entity, other than the parties hereto and their respective successors and
assigns, any rights, remedies or other benefits under or by reason of this
Agreement.

                                       16
<PAGE>
            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first written above.

                                    COMPANY

                                    MAGUIRE PROPERTIES, INC.,
                                    a Maryland corporation

                                    By:    /S/ Dallas E. Lucas
                                           -----------------------
                                           Dallas E. Lucas
                                           Executive Vice President and
                                           Chief Financial Officer

                                    OPERATING PARTNERSHIP

                                    MAGUIRE PROPERTIES L.P.,
                                    a Maryland limited partnership

                                    By:    Maguire Properties, Inc.
                                           General Partner

                                           By:      /S/ Dallas E. Lucas
                                                    -----------------------
                                                    Dallas E. Lucas
                                                    Executive Vice President and
                                                    Chief Financial Officer

                                    OPTION ENTITIES

                                    MAGUIRE PARTNERS - 1733 OCEAN AVENUE, LLC
                                    a California limited liability company

                                    By:      MP - 1733 Ocean Manager I, Inc.
                                             a California corporation
                                    Its:     Manager

                                             By: /S/ Robert F. Maguire III
                                                 -------------------------
                                                 Robert F. Maguire III
                                                 Title:

                                       S-1
       Signature Page to Registration Rights Agreement (Option Properties)
<PAGE>
                           MAGUIRE THOMAS PARTNERS - PLAZA LAS
                           FUENTES - PHASE II
                           a California limited partnership

                           By:      Maguire Partners - Pasadena, Ltd.
                                    a California limited partnership
                           Its:     General Partner

                                    By:      Maguire Partners PC, LLC
                                             a California limited liability
                                             company
                                    Its:     Managing General Partner

                                             By:      Maguire Partners SCS, Inc.
                                                      a California corporation
                                             Its:     Manager

                                             By: /S/ Robert F. Maguire III
                                                 ---------------------------
                                                 Robert F. Maguire III
                                                 President

                           MAGUIRE PARTNERS - PV INVESTOR
                           PARTNERSHIP, L.P.
                           a California limited partnership

                           By:      MP - Playa Vista Investors Partnership GP,
                                    LLC
                                    a California limited liability company
                           Its:     General Partner

                                    By:      Maguire Partners SCS, Inc.
                                             a California corporation
                                    Its:     Managing Manager

                                             By: /S/ Robert F. Maguire III
                                                 ---------------------------
                                                 Robert F. Maguire III
                                                 President

                                       S-2
       Signature Page to Registration Rights Agreement (Option Properties)
<PAGE>
                           ROFO ENTITIES

                           MAGUIRE PARTNERS - SOLANA LIMITED PARTNERSHIP
                           a Texas limited partnership

                           By:      MAGUIRE PARTNERS - SOLANA GP
                                    LIMITED LIABILITY COMPANY
                                    a Delaware limited liability company
                           Its:     General Partner

                                    By:      MAGUIRE PARTNERS -
                                             SOLANA BUSINESS TRUST
                                             a Delaware business trust
                                    Its:     sole member and manager

                                             By: /S/ Robert F. Maguire III
                                                 ---------------------------
                                                      Robert F. Maguire III
                                                      Managing Trustee

                           MAGUIRE PARTNERS - SOLANA LAND, L.P. - LAND
                           a Texas limited partnership

                           By:      MAGUIRE PARTNERS - SOLANA LAND GP, LLC
                                    a Delaware limited liability company
                           Its:     General Partner

                                    By:      MAGUIRE PARTNERS -
                                             SOLANA LAND BUSINESS TRUST
                                             a Delaware business trust
                                    Its:     sole member and manager

                                             By: /S/ Robert F. Maguire III
                                                 ---------------------------
                                                      Robert F. Maguire III
                                                      Managing Trustee

                                       S-3
       Signature Page to Registration Rights Agreement (Option Properties)<PAGE>

                                                                    EXHIBIT 10.4

                 AMENDED AND RESTATED 2003 INCENTIVE AWARD PLAN
                                       OF
                            MAGUIRE PROPERTIES, INC.,
                      MAGUIRE PROPERTIES SERVICES, INC. AND
                            MAGUIRE PROPERTIES, L.P.

                  Maguire Properties, Inc., a Maryland corporation (the
"Company"), Maguire Properties Services, Inc., a Maryland corporation (the
"Services Company "), and Maguire Properties, L.P., a Maryland limited
partnership (the "Partnership"), have adopted the Amended and Restated 2003
Incentive Award Plan of Maguire Properties, Inc., Maguire Properties Services,
Inc. and Maguire Properties, L.P. (the "Plan"), effective as of June 27, 2003,
for the benefit of their eligible employees, consultants and directors and those
of their subsidiaries. This Plan amends and restates in its entirety the 2003
Incentive Award Plan of Maguire Properties, Inc., Maguire Properties Services,
Inc. and Maguire Properties, L.P.

                  The purposes of the Plan are as follows:

                  (1)      To provide an additional incentive for directors, key
employees and consultants of the Company, the Services Company and their
subsidiaries and employees and consultants of the Partnership and its
subsidiaries to further the growth, development and financial success of the
Company by personally benefiting through the ownership of Company stock and
rights which recognize such growth, development and financial success.

                  (2)      To enable the Company, the Services Company, the
Partnership and their subsidiaries, to obtain and retain the services of
directors, key employees and consultants considered essential to the long range
success of the Company by offering them an opportunity to own stock in the
Company and rights which will reflect the growth, development and financial
success of the Company.

                                   ARTICLE I.
                                  DEFINITIONS

                  Wherever the following terms are used in the Plan they shall
have the meanings specified below, unless the context clearly indicates
otherwise. The singular pronoun shall include the plural where the context so
indicates.

                  1.1.     "Administrator" shall mean the entity that conducts
the general administration of the Plan as provided herein. With reference to the
administration of the Plan with respect to Awards granted to Independent
Directors, the term "Administrator" shall refer to the Board. With reference to
the administration of the Plan with respect to any other Award, the term
"Administrator" shall refer to the Committee unless the Board has assumed the
authority for administration of the Plan generally as provided in Section 10.1.

                  1.2.     "Award" shall mean an Option, a Restricted Stock
award, a Performance Award, a Dividend Equivalents award, a Deferred Stock
award, a Stock Payment award or a

<PAGE>

Stock Appreciation Right which may be awarded or granted under the Plan
(collectively, "Awards").

                  1.3.     "Award Agreement" shall mean a written agreement
executed by an authorized officer of the Company and the Holder which shall
contain such terms and conditions with respect to an Award as the Administrator
shall determine, consistent with the Plan.

                  1.4.     "Award Limit" shall mean one million (1,000,000)
shares of Common Stock, as adjusted pursuant to Section 11.3; provided, however,
that solely with respect to Performance Awards granted pursuant to Section
8.2(b) and Dividend Equivalents granted pursuant to Section 8.3, Award Limit
shall mean $2,000,000.

                  1.5.     "Board" shall mean the Board of Directors of the
Company.

                  1.6.     "Change in Control" shall mean the occurrence of any
of the following events:

                           (i)      the acquisition, directly or indirectly, by
         any "person" or "group" (as those terms are defined in Sections
         3(a)(9), 13(d), and 14(d) of the Exchange Act and the rules thereunder)
         of "beneficial ownership" (as determined pursuant to Rule 13d-3 under
         the Exchange Act) of securities entitled to vote generally in the
         election of directors ("voting securities") of the Company that
         represent 35% or more of the combined voting power of the Company's
         then outstanding voting securities, other than

                                    (A)      an acquisition of securities by a
                  trustee or other fiduciary holding securities under any
                  employee benefit plan (or related trust) sponsored or
                  maintained by the Company or any person controlled by the
                  Company or by any employee benefit plan (or related trust)
                  sponsored or maintained by the Company or any person
                  controlled by the Company, or

                                    (B)      an acquisition of securities by the
                  Company or a corporation owned, directly or indirectly, by the
                  stockholders of the Company in substantially the same
                  proportions as their ownership of the stock of the Company, or

                                    (C)      an acquisition of securities
                  pursuant to a transaction described in clause (iii) below that
                  would not be a Change in Control under clause (iii), or

                                    (D)      any direct or indirect acquisition
                  of securities by Robert F. Maguire III or his family, or any
                  entity controlled thereby;

                           Notwithstanding the foregoing, the following event
         shall not constitute an "acquisition" by any person or group for
         purposes of this clause (i): an acquisition of the Company's securities
         by the Company which causes the Company's voting securities
         beneficially owned by a person or group to represent 35% or more of the
         combined voting power of the Company's then outstanding voting
         securities; provided, however, that if a person or group shall become
         the beneficial owner of 35% or more of the

                                       2

<PAGE>

         combined voting power of the Company's then outstanding voting
         securities by reason of share acquisitions by the Company as described
         above and shall, after such share acquisitions by the Company, become
         the beneficial owner of any additional voting securities of the
         Company, then such acquisition shall constitute a Change in Control;

                           (ii)     individuals who, as of the date of the
         closing of the initial public offering of the Common Stock, constitute
         the Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election by the
         Company's shareholders, or nomination for election by the Board, was
         approved by a vote of at least a majority of the directors then
         comprising the Incumbent Board shall be considered as though such
         individual were a member of the Incumbent Board, but excluding, for
         this purpose, any such individual whose initial assumption of office
         occurs as a result of an actual or threatened election contest with
         respect to the election or removal of directors or other actual or
         threatened solicitation of proxies or consents by or on behalf of a
         person other than the Board;

                           (iii)    the consummation by the Company (whether
         directly involving the Company or indirectly involving the Company
         through one or more intermediaries) of (x) a merger, consolidation,
         reorganization, or business combination or (y) a sale or other
         disposition of all or substantially all of the Company's assets or (z)
         the acquisition of assets or stock of another entity, in each case,
         other than a transaction

                                    (A)      which results in the Company's
                  voting securities outstanding immediately before the
                  transaction continuing to represent (either by remaining
                  outstanding or by being converted into voting securities of
                  the Company or the person that, as a result of the
                  transaction, controls, directly or indirectly, the Company or
                  owns, directly or indirectly, all or substantially all of the
                  Company's assets or otherwise succeeds to the business of the
                  Company (the Company or such person, the "Successor Entity"))
                  directly or indirectly, at least 50% of the combined voting
                  power of the Successor Entity's outstanding voting securities
                  immediately after the transaction, and

                                    (B)      after which no person or group
                  beneficially owns voting securities representing 35% or more
                  of the combined voting power of the Successor Entity;
                  provided, however, that no person or group shall be treated
                  for purposes of this clause (B) as beneficially owning 35% or
                  more of combined voting power of the Successor Entity solely
                  as a result of the voting power held in the Company prior to
                  the consummation of the transaction; or

                           (iv)     approval by the Company's shareholders of a
         liquidation or dissolution of the Company.

                  For purposes of clause (i) above, the calculation of voting
power shall be made as if the date of the acquisition were a record date for a
vote of the Company's shareholders, and for purposes of clause (iii) above, the
calculation of voting power shall be made as if the date of the consummation of
the transaction were a record date for a vote of the Company's shareholders.

                                       3

<PAGE>

                  1.7.     "Code" shall mean the Internal Revenue Code of 1986,
as amended.

                  1.8.     "Committee" shall mean the Compensation Committee of
the Board, or another committee or subcommittee of the Board, appointed as
provided in Section 10.1.

                  1.9.     "Common Stock" shall mean the common stock of the
Company, par value $0.01 per share.

                  1.10.    "Company" shall mean Maguire Properties, Inc., a
Maryland corporation.

                  1.11.    "Company Consultant" shall mean any consultant or
adviser if: (i) the consultant or adviser renders bona fide services to the
Company or any Company Subsidiary; (ii) the services rendered by the consultant
or adviser are not in connection with the offer or sale of securities in a
capital raising transaction and do not directly or indirectly promote or
maintain a market for the Company's securities; and (iii) the consultant or
adviser is a natural person who has contracted directly with the Company or any
Company Subsidiary to render such services.

                  1.12.    "Company Employee" shall mean any officer or other
employee (as defined in accordance with Section 340l(c) of the Code) of the
Company or of any Company Subsidiary.

                  1.13.    "Company Subsidiary" shall mean (i) a corporation,
association or other business entity of which 50% or more of the total combined
voting power of all classes of capital stock is owned, directly or indirectly,
by the Company or by one or more Company Subsidiaries or by the Company and one
or more Company Subsidiaries, (ii) any partnership or limited liability company
of which 50% or more of the capital and profits interests is owned, directly or
indirectly, by the Company or by one or more Company Subsidiaries or by the
Company and one or more Company Subsidiaries, and (iii) any other entity not
described in clauses (i) or (ii) above of which 50% or more of the ownership and
the power, pursuant to a written contract or agreement, to direct the policies
and management or the financial and the other affairs thereof, are owned or
controlled by the Company or by one or more other Company Subsidiaries or by the
Company and one or more Company Subsidiaries; provided, however, that "Company
Subsidiary" shall not include the Services Company, any Services Company
Subsidiary, the Partnership, or any Partnership Subsidiary.

                  1.14.    "Consultant" shall mean any Company Consultant,
Services Company Consultant or Partnership Consultant.

                  1.15.    "Deferred Stock" shall mean Common Stock awarded
under Article VIII of the Plan.

                  1.16.    "Director" shall mean a member of the Board or a
Services Company Director.

                  1.17.    "Dividend Equivalent" shall mean a right to receive
the equivalent value (in cash or Common Stock) of dividends paid on Common
Stock, awarded under Article VIII of the Plan.

                                       4

<PAGE>

                  1.18.    "DRO" shall mean a domestic relations order as
defined by the Code or Title I of the Employee Retirement Income Security Act of
1974, as amended, or the rules thereunder.

                  1.19.    "Employee" shall mean any Company Employee, Services
Company Employee or Partnership Employee.

                  1.20.    "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended.

                  1.21.    "Fair Market Value" of a share of Common Stock as of
a given date shall be (a) the closing price of a share of Common Stock on the
principal exchange on which shares of Common Stock are then trading, if any (or
as reported on any composite index which includes such principal exchange), on
the trading day previous to such date, or if shares were not traded on the
trading day previous to such date, then on the next preceding date on which a
trade occurred, or (b) if Common Stock is not traded on an exchange but is
quoted on Nasdaq or a successor quotation system, the mean between the closing
representative bid and asked prices for the Common Stock on the trading day
previous to such date as reported by Nasdaq or such successor quotation system,
or (c) if Common Stock is not publicly traded on an exchange and not quoted on
Nasdaq or a successor quotation system, the Fair Market Value of a share of
Common Stock as established by the Administrator acting in good faith.

                  1.22.    "Holder" shall mean a person who has been granted or
awarded an Award.

                  1.23.    "Incentive Stock Option" shall mean an option which
conforms to the applicable provisions of Section 422 of the Code and which is
designated as an Incentive Stock Option by the Administrator.

                  1.24.    "Independent Director" shall mean a member of the
Board who is not an Employee.

                  1.25.    "Non-Qualified Stock Option" shall mean an Option
which is not designated as an Incentive Stock Option by the Administrator or
which is designated as an "Incentive Stock Option" but does not conform to the
applicable provisions of Section 422 of the Code.

                  1.26.    "Option" shall mean a stock option granted under
Article IV of the Plan. An Option granted under the Plan shall, as determined by
the Administrator, be either a Non-Qualified Stock Option or an Incentive Stock
Option; provided, however, that Options granted to individuals other than
Company Employees shall be Non-Qualified Stock Options.

                  1.27.    "Partnership" shall mean Maguire Properties, L.P., a
Maryland limited partnership.

                  1.28.    "Partnership Agreement" shall mean the Amended and
Restated Agreement of Limited Partnership of Maguire Properties, L.P., dated as
of_______________, 200__, as the same may be amended, modified or restated from
time to time.

                                        5

<PAGE>

                  1.29.    "Partnership Consultant" shall mean any consultant or
adviser if: (i) the consultant or adviser renders bona fide services to the
Partnership or any Partnership Subsidiary; (ii) the services rendered by the
consultant or adviser are not in connection with the offer or sale of securities
in a capital raising transaction and do not directly or indirectly promote or
maintain a market for the Company's securities; and (iii) the consultant or
adviser is a natural person who has contracted directly with the Partnership or
any Partnership Subsidiary to render such services.

                  1.30.    "Partnership Employee" shall mean any employee (as
defined in accordance with Section 3401(c) of the Code) of the Partnership or
any entity which is then a Partnership Subsidiary.

                  1.31.    "Partnership Holder Purchased Shares" shall have the
meaning set forth in Section 6.4.

                  1.32.    "Partnership Purchase Price" shall have the meaning
set forth in Section 6.4.

                  1.33.    "Partnership Purchased Shares" shall have the meaning
set forth in Section 6.4.

                  1.34.    "Partnership Subsidiary" shall mean (i) a
corporation, association or other business entity of which 50% or more of the
total combined voting power of all classes of capital stock is owned, directly
or indirectly, by the Partnership or by one or more Partnership Subsidiaries or
by the Partnership and one or more Partnership Subsidiaries, (ii) any
partnership or limited liability company of which 50% or more of the capital and
profits interests is owned, directly or indirectly, by the Partnership or by one
or more Partnership Subsidiaries or by the Partnership and one or more
Partnership Subsidiaries, and (iii) any other entity not described in clauses
(i) or (ii) above of which 50% or more of the ownership and the power, pursuant
to a written contract or agreement, to direct the policies and management or the
financial and the other affairs thereof, are owned or controlled by the
Partnership or by one or more other Partnership Subsidiaries or by the
Partnership and one or more Partnership Subsidiaries; provided, however, that
"Partnership Subsidiary" shall not include the Services Company or any Services
Company Subsidiary.

                  1.35.    "Performance Award" shall mean a cash bonus, stock
bonus or other performance or incentive award that is paid in cash, Common Stock
or a combination of both, awarded under Article VIII of the Plan.

                  1.36.    "Performance Criteria" shall mean the following
business criteria with respect to the Company, the Services Company, the
Partnership, any Subsidiary or any division or operating unit thereof: (a) net
income, (b) pre-tax income, (c) operating income, (d) cash flow, (e) earnings
per share, (f) return on equity, (g) return on invested capital or assets, (h)
cost reductions or savings, (i) funds from operations, (j) appreciation in the
Fair Market Value of Common Stock, (k) operating profit, (1) working capital and
(m) earnings before any one or more of the following items: interest, taxes,
depreciation or amortization; provided that each of the business criteria
described in subsections (a) through (m) shall be determined in accordance with

                                        6

<PAGE>

generally accepted accounting principles ("GAAP"). For each fiscal year of the
Company, the Committee may provide for objectively determinable adjustments, as
determined in accordance with GAAP, to any of the business criteria described in
subsections (a) through (m) for one or more of the items of gain, loss, profit
or expense: (i) determined to be extraordinary or unusual in nature or
infrequent in occurrence, (ii) related to the disposal of a segment of a
business, (iii) related to a change in accounting principal under GAAP, (iv)
related to discontinued operations that do not qualify as a segment of a
business under GAAP, and (v) attributable to the business operations of any
entity acquired by the Company, the Services Company or the Partnership during
the fiscal year.

                  1.37.    "Plan" shall mean the Amended and Restated 2003
Incentive Award Plan of Maguire Properties, Inc., Maguire Properties Services,
Inc. and Maguire Properties, L.P.

                  1.38.    "Public Trading Date" shall mean the first date upon
which Common Stock of the Company is listed (or approved for listing) upon
notice of issuance on any securities exchange or designated (or approved for
designation) upon notice of issuance as a national market security on an
interdealer quotation system.

                  1.39.    "REIT" shall mean a real estate investment trust
within the meaning of Sections 856 through 860 of the Code.

                  1.40.    "Restricted Stock" shall mean Common Stock awarded
under Article VII of the Plan.

                  1.41.    "Rule 16b-3" shall mean Rule 16b-3 promulgated under
the Exchange Act, as such Rule may be amended from time to time.

                  1.42.    "Section 162(m) Participant" shall mean any key
Employee designated by the Administrator as a key Employee whose compensation
for the fiscal year in which the key Employee is so designated or a future
fiscal year may be subject to the limit on deductible compensation imposed by
Section 162(m) of the Code.

                  1.43.    "Securities Act" shall mean the Securities Act of
1933, as amended.

                  1.44.    "Services Company" shall mean Maguire Properties
Services, Inc., a Maryland corporation.

                  1.45.    "Services Company Consultant" shall mean any
consultant or adviser if: (i) the consultant or adviser renders bona fide
services to the Services Company or any Services Company Subsidiary; (ii) the
services rendered by the consultant or adviser are not in connection with the
offer or sale of securities in a capital raising transaction and do not directly
or indirectly promote or maintain a market for the Company's securities; and
(iii) the consultant or adviser is a natural person who has contracted directly
with the Services Company or any Services Company Subsidiary to render such
services.

                  1.46.    "Services Company Director" shall mean a member of
the Board of Directors of the Services Company who is not (i) an employee,
officer or affiliate of the Company, the Services Company or a subsidiary or
division of the foregoing, or a relative of a

                                        7

<PAGE>

principal executive officer, and who is not an individual member of an
organization acting as an advisor, consultant or legal counsel receiving
compensation on a continuing basis from the Company or the Services Company in
addition to directors' fees, or (b) an Independent Director.

                  1.47.    "Services Company Employee" shall mean any officer or
other employee (as defined in accordance with Section 3401(c) of the Code) of
the Services Company or any corporation, partnership or limited liability
company which is then a Services Company Subsidiary.

                  1.48.    "Services Company Holder Purchased Shares" shall have
the meaning set forth in Section 6.5.

                  1.49.    "Services Company Purchase Price" shall have the
meaning set forth in Section 6.5.

                  1.50.    "Services Company Purchased Shares" shall have the
meaning set forth in Section 6.5.

                  1.51.    "Services Company Subsidiary" shall mean (i) a
corporation, association or other business of which 50% or more of the total
combined voting power of all classes of capital stock is owned, directly or
indirectly, by the Services Company or by one or more Services Company
Subsidiaries or by the Services Company and one or more Services Company
Subsidiaries, (ii) any partnership or limited liability company of which 50% or
more of the capital and profits interests is owned, directly or indirectly, by
the Services Company or by one or more Services Company Subsidiaries or by the
Services Company and one or more Services Company Subsidiaries, and (iii) any
other entity not described in clauses (i) or (ii) above of which 50% or more of
the ownership and the power, pursuant to a written contract or agreement, to
direct the policies and management or the financial and the other affairs
thereof, are owned or controlled by the Services Company or by one or more
Services Company Subsidiaries or by the Services Company and one or more
Services Company Subsidiaries.

                  1.52.    "Stock Appreciation Right" shall mean a stock
appreciation right granted under Article IX of the Plan.

                  1.53.    "Stock Payment" shall mean (a) a payment in the form
of shares of Common Stock, or (b) an option or other right to purchase shares of
Common Stock, as part of a deferred compensation arrangement, made in lieu of
all or any portion of the compensation, including without limitation, salary,
bonuses and commissions, that would otherwise become payable to a key Employee
or Consultant in cash, awarded under Article VIII of the Plan.

                  1.54.    "Subsidiary" shall mean any Company Subsidiary,
Services Company Subsidiary or Partnership Subsidiary.

                  1.55.    "Substitute Award" shall mean an Option granted under
the Plan upon the assumption of, or in substitution for, outstanding equity
awards previously granted by a company or other entity in connection with a
corporate transaction, such as a merger, combination, consolidation or
acquisition of property or stock; provided, however, that in no event shall the

                                        8

<PAGE>

term "Substitute Award" be construed to refer to an award made in connection
with the cancellation and repricing of an Option.

                  1.56.    "Termination of Consultancy" shall mean the time when
the engagement of a Holder as a Consultant to the Company, a Company Subsidiary,
the Services Company, a Services Company Subsidiary, the Partnership or a
Partnership Subsidiary is terminated for any reason, with or without cause,
including, but not by way of limitation, by resignation, discharge, death or
retirement, but excluding terminations where there is a simultaneous
commencement of employment with the Company, a Company Subsidiary, the Services
Company, a Services Company Subsidiary, the Partnership or a Partnership
Subsidiary. The Administrator, in its absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Consultancy,
including, but not by way of limitation, the question of whether a Termination
of Consultancy resulted from a discharge for good cause, and all questions of
whether a particular leave of absence constitutes a Termination of Consultancy.
Notwithstanding any other provision of the Plan, the Company, a Company
Subsidiary, the Services Company, a Services Company Subsidiary, the Partnership
or a Partnership Subsidiary has an absolute and unrestricted right to terminate
a Consultant's service at any time for any reason whatsoever, with or without
cause, except to the extent expressly provided otherwise in writing.

                  1.57.    "Termination of Directorship" shall mean the time
when a Holder who is an Independent Director or a Services Company Director
ceases to be a Director for any reason, including, but not by way of limitation,
a termination by resignation, failure to be elected, death or retirement. The
Board, in its sole and absolute discretion, shall determine the effect of all
matters and questions relating to Termination of Directorship with respect to
Independent Directors and Services Company Directors.

                  1.58.    "Termination of Employment" shall mean the time when
the employee-employer relationship between a Holder and the Company, a Company
Subsidiary, the Services Company, a Services Company Subsidiary, the Partnership
or a Partnership Subsidiary is terminated for any reason, with or without cause,
including, but not by way of limitation, a termination by resignation,
discharge, death, disability or retirement; but excluding (a) terminations where
there is a simultaneous reemployment or continuing employment of a Holder by the
Company, a Company Subsidiary, the Services Company, a Services Company
Subsidiary, the Partnership or a Partnership Subsidiary, (b) at the discretion
of the Administrator, terminations which result in a temporary severance of the
employee-employer relationship, and (c) at the discretion of the Administrator,
terminations which are followed by the simultaneous establishment of a
consulting relationship by the Company, a Company Subsidiary, the Services
Company, a Services Company Subsidiary, the Partnership or a Partnership
Subsidiary with the former employee. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions relating to
Termination of Employment, including, but not by way of limitation, the question
of whether a Termination of Employment resulted from a discharge for good cause,
and all questions of whether a particular leave of absence constitutes a
Termination of Employment; provided, however, that, with respect to Incentive
Stock Options, unless otherwise determined by the Administrator in its
discretion, a leave of absence, change in status from an employee to an
independent contractor or other change in the employee-employer relationship
shall constitute a Termination of Employment if, and to the extent that, such
leave of

                                        9

<PAGE>

absence, change in status or other change interrupts employment for the purposes
of Section 422(a)(2) of the Code and the then applicable regulations and revenue
rulings under said Section.

                                   ARTICLE II.

                             SHARES SUBJECT TO PLAN

                  2.1.     Shares Subject to Plan.

                           (a)      The shares of stock subject to Awards shall
         be Common Stock, initially shares of the Company's Common Stock.
         Subject to adjustment as provided in Section 11.3, the aggregate number
         of such shares which may be issued upon exercise of such Options or
         rights or upon any such Awards under the Plan shall not exceed
         4,816,861. The shares of Common Stock issuable upon exercise of such
         Options or rights or upon any such awards may be either previously
         authorized but unissued shares or treasury shares.

                           (b)      The maximum number of shares which may be
         subject to Awards granted under the Plan to any individual in any
         calendar year shall not exceed the Award Limit; provided, however, that
         the foregoing limitation shall not apply prior to the Public Trading
         Date and, following the Public Trading Date, the foregoing limitation
         shall not apply until the earliest of: (i) the first material
         modification of the Plan (within the meaning of Section 162(m) of the
         Code and the regulations issued thereunder); (ii) the issuance of all
         of the shares of Common Stock reserved for issuance under the Plan;
         (iii) the expiration of the Plan; (iv) the first meeting of
         stockholders at which Directors are to be elected that occurs after the
         close of the third calendar year following the calendar year in which
         occurred the first registration of an equity security of the Company
         under Section 12 of the Exchange Act; or (v) such other date required
         by Section 162(m) of the Code and the rules and regulations promulgated
         thereunder. To the extent required by Section 162(m) of the Code,
         shares subject to Options which are canceled continue to be counted
         against the Award Limit.

                  2.2.     Add-back of Options and Other Rights. If any Option,
or other right to acquire shares of Common Stock under any other Award under the
Plan, expires or is canceled without having been fully exercised, or is
exercised in whole or in part for cash as permitted by the Plan, the number of
shares subject to such Option or other right but as to which such Option or
other right was not exercised prior to its expiration, cancellation or exercise
may again be optioned, granted or awarded hereunder, subject to the limitations
of Section 2.1. Furthermore, any shares subject to Awards which are adjusted
pursuant to Section 11.3 and become exercisable with respect to shares of stock
of another corporation shall be considered canceled and may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. Shares
of Common Stock which are delivered by the Holder or withheld by the Company,
the Partnership or the Services Company (or any Subsidiary) upon the exercise of
any Award under the Plan, in payment of the exercise price thereof or tax
withholding thereon, may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 2.1. If any shares of Restricted Stock are
surrendered by the Holder or repurchased by the Company, the Partnership or the
Services Company (or any Subsidiary) pursuant to Section 7.4 or 7.5 hereof,

                                       10

<PAGE>

such shares may again be optioned, granted or awarded hereunder, subject to the
limitations of Section 2.1. Notwithstanding the provisions of this Section 2.2,
no shares of Common Stock may again be optioned, granted or awarded if such
action would cause an Incentive Stock Option to fail to qualify as an incentive
stock option under Section 422 of the Code.

                                   ARTICLE III

                               GRANTING OF AWARDS

                  3.1.     Award Agreement. Each Award shall be evidenced by an
Award Agreement. Award Agreements evidencing Awards intended to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the Code
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 162(m) of the Code. Award Agreements evidencing
Incentive Stock Options shall contain such terms and conditions as may be
necessary to meet the applicable provisions of Section 422 of the Code.

                  3.2.     Provisions Applicable to Section 162(m) Participants.

                           (a)      The Committee, in its discretion, may
         determine whether an Award is to qualify as performance-based
         compensation as described in Section 162(m)(4)(C)of the Code.

                           (b)      Notwithstanding anything in the Plan to the
         contrary, the Committee may grant any Award to a Section 162(m)
         Participant, including Restricted Stock the restrictions with respect
         to which lapse upon the attainment of performance goals which are
         related to one or more of the Performance Criteria and any performance
         or incentive award described in Article VIII that vests or becomes
         exercisable or payable upon the attainment of performance goals which
         are related to one or more of the Performance Criteria.

                           (c)      To the extent necessary to comply with the
         performance-based compensation requirements of Section 162(m)(4)(C) of
         the Code, with respect to any Award granted under Articles VII and VIII
         which may be granted to one or more Section 162(m) Participants, no
         later than ninety (90) days following the commencement of any fiscal
         year in question or any other designated fiscal period or period of
         service (or such other time as may be required or permitted by Section
         162(m) of the Code), the Committee shall, in writing, (i) designate one
         or more Section 162(m) Participants, (ii) select the Performance
         Criteria applicable to the fiscal year or other designated fiscal
         period or period of service, (iii) establish the various performance
         targets, in terms of an objective formula or standard, and amounts of
         such Awards, as applicable, which may be earned for such fiscal year or
         other designated fiscal period or period of service, and (iv) specify
         the relationship between Performance Criteria and the performance
         targets and the amounts of such Awards, as applicable, to be earned by
         each Section 162(m) Participant for such fiscal year or other
         designated fiscal period or period of service. Following the completion
         of each fiscal year or other designated fiscal period or period of
         service, the Committee shall certify in writing whether the applicable
         performance targets have been achieved for such fiscal year or other
         designated fiscal period or period of

                                       11

<PAGE>

         service. In determining the amount earned by a Section 162(m)
         Participant, the Committee shall have the right to reduce (but not to
         increase) the amount payable at a given level of performance to take
         into account additional factors that the Committee may deem relevant to
         the assessment of individual or corporate performance for the fiscal
         year or other designated fiscal period or period of service.

                           (d)      Furthermore, notwithstanding any other
         provision of the Plan or any Award which is granted to a Section 162(m)
         Participant and is intended to qualify as performance-based
         compensation as described in Section 162(m)(4)(C) of the Code shall be
         subject to any additional limitations set forth in Section 162(m) of
         the Code (including any amendment to Section 162(m) of the Code) or any
         regulations or rulings issued thereunder that are requirements for
         qualification as performance-based compensation as described in Section
         162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the
         extent necessary to conform to such requirements.

                  3.3.     Limitations Applicable to Section 16 Persons.
Notwithstanding any other provision of the Plan, the Plan, and any Award granted
or awarded to any individual who is then subject to Section 16 of the Exchange
Act, shall be subject to any additional limitations set forth in any applicable
exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3 of the Exchange Act) that are requirements for the application of
such exemptive rule. To the extent permitted by applicable law, the Plan and
Awards granted or awarded hereunder shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

                  3.4.     Consideration. In consideration of the granting of an
Award under the Plan, the Holder shall agree, in the Award Agreement, to remain
in the employ of (or to consult for or to serve as a Director of, as applicable)
the Company, a Company Subsidiary, the Services Company, a Services Company
Subsidiary, the Partnership or a Partnership Subsidiary for a period of at least
one year (or such shorter period as may be fixed in the Award Agreement or by
action of the Administrator following grant of the Award) after the Award is
granted (or, in the case of a Director, until the next annual meeting of
stockholders of the Company or the next election of Services Company Directors,
as applicable).

                  3.5.     At-Will Employment. Nothing in the Plan or in any
Award Agreement hereunder shall confer upon any Holder any right to continue in
the employ of, or as a Consultant for, or as a director of, the Company, a
Company Subsidiary, the Services Company, a Services Company Subsidiary, the
Partnership or a Partnership Subsidiary, or shall interfere with or restrict in
any way the rights of any such entity, which are hereby expressly reserved, to
discharge any Holder at any tune for any reason whatsoever, with or without
cause, except to the extent expressly provided otherwise in a written employment
agreement between the Holder and such entity.

                                       12
<PAGE>

                                   ARTICLE IV.

                  GRANTING OF OPTIONS TO EMPLOYEES, CONSULTANTS
                                  AND DIRECTORS

                  4.1.     Eligibility. Any Employee, Consultant or Services
Company Director selected by the Committee pursuant to Section 4.4(a)(i) shall
be eligible to be granted an Option. Each Independent Director of the Company
shall be eligible to be granted Options at the times and in the manner set forth
in Section 4.5.

                  4.2.     Disqualification for Stock Ownership. No person may
be granted an Incentive Stock Option under the Plan if such person, at the time
the Incentive Stock Option is granted, owns stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company or any
then existing "subsidiary corporation" or "parent corporation" (each within the
meaning of Section 424 of the Code) unless such Incentive Stock Option conforms
to the applicable provisions of Section 422 of the Code.

                  4.3.     Qualification of Incentive Stock Options. No
Incentive Stock Option shall be granted to any person who is not a Company
Employee, or to any Employee of a Subsidiary which does not constitute a
"subsidiary corporation" within Section 424(f) of the Code.

                  4.4.     Granting of Options to Employees. Consultants and
Directors.

                           (a)      The Committee shall from time to time, in
         its absolute discretion, and subject to applicable limitations of the
         Plan:

                                    (i)      Determine which Employees are key
                  Employees and select from among the key Employees, Consultants
                  and Services Company Directors (including Employees,
                  Consultants and Services Company Directors who have previously
                  received Awards under the Plan) such of them as in its opinion
                  should be granted Options;

                                    (ii)     Subject to the Award Limit,
                  determine the number of shares to be subject to such Options
                  granted to the selected key Employees, Consultants and
                  Services Company Directors;

                                    (iii)    Subject to Section 4.3, determine
                  whether such Options are to be Incentive Stock Options or
                  Non-Qualified Stock Options and whether such Options are to
                  qualify as performance-based compensation as described in
                  Section 162(m)(4)(C) of the Code; and

                                    (iv)     Determine the terms and conditions
                  of such Options, consistent with the Plan; provided, however,
                  that the terms and conditions of Options intended to qualify
                  as performance-based compensation as described in Section
                  162(m)(4)(C) of the Code shall include, but not be limited to,
                  such terms and conditions as may be necessary to meet the
                  applicable provisions of Section 162(m)of the Code.

                                       13

<PAGE>

                           (b)      Upon the selection of a key Employee,
         Consultant or Services Company Director to be granted an Option, the
         Committee shall instruct the Secretary of the Company to issue the
         Option and may impose such conditions on the grant of the Option as it
         deems appropriate.

                           (c)      Any Incentive Stock Option granted under the
         Plan may be modified by the Committee, with the consent of the Holder,
         to disqualify such Option from treatment as an "incentive stock option"
         under Section 422 of the Code.

                  4.5.     Granting of Options to Independent Directors. During
the term of the Plan, each person who is an Independent Director as of the
Public Trading Date automatically shall be granted (a) an Option to purchase
7,500 shares of Common Stock (subject to adjustment as provided in Section 11.3)
on the Public Trading Date, and (b) an Option to purchase 5,000 shares of Common
Stock (subject to adjustment as provided in Section 11.3) on the date of each
annual meeting of stockholders after the Public Trading Date at which the
Independent Director is reelected to the Board. During the term of the Plan, a
person who is initially elected to the Board after the Public Trading Date and
who is an Independent Director at the time of such initial election
automatically shall be granted (x) an Option to purchase 7,500 shares of Common
Stock (subject to adjustment as provided in Section 11.3) on the date of such
initial election, and (y) an Option to purchase 5,000 shares of Common Stock
(subject to adjustment as provided in Section 11.3) on the date of each annual
meeting of stockholders after such initial election at which the Independent
Director is reelected to the Board. Members of the Board who are employees of
the Company who subsequently retire from the Company and remain on the Board
will not receive an initial Option grant pursuant to clause (x) of the preceding
sentence, but to the extent that they are otherwise eligible, will receive,
after retirement from employment with the Company, Options as described in
clause (y) of the preceding sentence. All the foregoing Option grants authorized
by this Section 4.5 are subject to stockholder approval of the Plan.

                  4.6.     Options in Lieu of Cash Compensation. Options may be
granted under the Plan to Employees and Consultants in lieu of cash bonuses
which would otherwise be payable to such Employees and Consultants and to
Independent Directors and Services Company Directors in lieu of directors' fees
which would otherwise be payable to such Independent Directors and Services
Company Directors, pursuant to such policies which may be adopted by the
Administrator from time to time.

                                   ARTICLE V.

                                TERMS OF OPTIONS

                  5.1.     Option Price. The price per share of the shares
subject to each Option granted to Employees, Consultants and Services Company
Directors shall be set by the Committee; provided, however, that such price
shall be no less than 85% of the Fair Market Value of a share of Common Stock on
the date the Option is granted, and:

                           (a)      In the case of Options intended to qualify
         as performance-based compensation as described in Section 162(m)(4)(C)
         of the Code, such price shall not be

                                       14

<PAGE>

         less than 100% of the Fair Market Value of a share of Common Stock on
         the date the Option is granted;

                           (b)      In the case of Incentive Stock Options such
         price shall not be less than 100% of the Fair Market Value of a share
         of Common Stock on the date the Option is granted (or the date the
         Option is modified, extended or renewed for purposes of Section 424(h)
         of the Code);

                           (c)      In the case of Incentive Stock Options
         granted to an individual then owning (within the meaning of Section
         424(d) of the Code) more than 10% of the total combined voting power of
         all classes of stock of the Company or any "subsidiary corporation" or
         "parent corporation" thereof (each within the meaning of Section 424 of
         the Code), such price shall not be less than 110% of the Fair Market
         Value of a share of Common Stock on the date the Option is granted (or
         the date the Option is modified, extended or renewed for purposes of
         Section 424(h) of the Code).

                  5.2.     Option Term. The term of an Option granted to an
Employee, Consultant or Services Company Director shall be set by the Committee
in its discretion; provided, however. that, in the case of Incentive Stock
Options, the term shall not be more than 10 years from the date the Incentive
Stock Option is granted, or five years from the date the Incentive Stock Option
is granted if the Incentive Stock Option is granted to an individual then owning
(within the meaning of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company or any "subsidiary
corporation" or "parent corporation" thereof (each within the meaning of Section
424 of the Code). Except as limited by requirements of Section 422 of the Code
and regulations and rulings thereunder applicable to Incentive Stock Options,
the Committee may extend the term of any outstanding Option in connection with
any Termination of Employment or Termination of Consultancy of the Holder or
Termination of Directorship of the Services Company Director, or amend any other
term or condition of such Option relating to such a termination.

                  5.3.     Option Vesting.

                           (a)      The period during which the right to
         exercise, in whole or in part, an Option granted to an Employee,
         Consultant or Services Company Director vests in the Holder shall be
         set by the Committee and the Committee may determine that an Option may
         not be exercised in whole or in part for a specified period after it is
         granted; provided, however, that, unless the Committee otherwise
         provides in the terms of the Award Agreement or otherwise, no Option
         shall be exercisable by any Holder who is then subject to Section 16 of
         the Exchange Act within the period ending six months and one day after
         the date the Option is granted. At any time after grant of an Option,
         the Committee may, in its sole and absolute discretion and subject to
         whatever terms and conditions it selects, accelerate the period during
         which such Option vests.

                           (b)      No portion of an Option granted to an
         Employee, Consultant or Services Company Director which is
         unexercisable at Termination of Employment, Termination of Consultancy
         or Termination of Directorship, as applicable, shall thereafter become
         exercisable, except as may be otherwise provided by the Committee

                                       15

<PAGE>

         either in the Award Agreement or by action of the Committee following
         the grant of the Option.

                           (c)      To the extent that the aggregate Fair Market
         Value of stock with respect to which "incentive stock options" (within
         the meaning of Section 422 of the Code, but without regard to Section
         422(d) of the Code) are exercisable for the first time by a Holder
         during any calendar year (under the Plan and all other incentive stock
         option plans of the Company and any parent or subsidiary corporation,
         within the meaning of Section 422 of the Code) of the Company, exceeds
         $100,000, such Options shall be treated as Non-Qualified Stock Options
         to the extent required by Section 422 of the Code. The rule set forth
         in the preceding sentence shall be applied by taking Options into
         account in the order in which they were granted. For purposes of this
         Section 5.3(c), the Fair Market Value of stock shall be determined as
         of the time the Option with respect to such stock is granted.

                  5.4.     Terms of Options Granted to Independent Directors.
The price per share of the shares subject to each Option granted to an
Independent Director shall equal 100% of the Fair Market Value of a share of
Common Stock on the date the Option is granted; provided, however, that the
price of each share subject to each Option granted to Independent Directors on
the Public Trading Date shall equal the initial public offering price per share
of Common Stock. Options granted to Independent Directors shall become
exercisable in cumulative annual installments of 33 1/3% on each of the first,
second and third anniversaries of the date of Option grant and, subject to
Section 6.9, the term of each Option granted to an Independent Director shall be
10 years from the date the Option is granted, except that any Option granted to
an Independent Director may by its terms become immediately exercisable in full
upon the retirement of the Independent Director in accordance with the Company's
retirement policy applicable to directors. No portion of an Option which is
unexercisable at Termination of Directorship shall thereafter become
exercisable.

                  5.5.     Substitute Awards. Notwithstanding the foregoing
provisions of this Article V to the contrary, in the case of an Option that is a
Substitute Award, the price per share of the shares subject to such Option may
be less than the Fair Market Value per share on the date of grant, provided,
that the excess of:

                           (a)      The aggregate Fair Market Value (as of the
         date such Substitute Award is granted) of the shares subject to the
         Substitute Award; over

                           (b)      The aggregate exercise price thereof; does
         not exceed the excess of:

                           (c)      The aggregate fair market value (as of the
         time immediately preceding the transaction giving rise to the
         Substitute Award, such fair market value to be determined by the
         Committee) of the shares of the predecessor entity that were subject to
         the grant assumed or substituted for by the Company; over

                           (d)      The aggregate exercise price of such shares.

                                       16

<PAGE>

                                   ARTICLE VI.

                               EXERCISE OF OPTIONS

                  6.1.     Partial Exercise. An exercisable Option may be
exercised in whole or in part. However, an Option shall not be exercisable with
respect to fractional shares and the Administrator may require that, by the
terms of the Option, a partial exercise be with respect to a minimum number of
shares.

                  6.2.     Manner of Exercise. All or a portion of an
exercisable Option shall be deemed exercised upon delivery of all of the
following to the Secretary of the Company or his or her office:

                           (a)      A written notice complying with the
         applicable rules established by the Administrator stating that the
         Option, or a portion thereof, is exercised. The notice shall be signed
         by the Holder or other person then entitled to exercise the Option or
         such portion of the Option;

                           (b)      Such representations and documents as the
         Administrator, in its absolute discretion, deems necessary or advisable
         to effect compliance with all applicable provisions of the Securities
         Act and any other federal or state securities laws or regulations. The
         Administrator may, in its absolute discretion, also take whatever
         additional actions it deems appropriate to effect such compliance,
         including without limitation, placing legends on share certificates and
         issuing stop-transfer notices to agents and registrars;

                           (c)      In the event that the Option shall be
         exercised pursuant to Section 11.1 by any person or persons other than
         the Holder, appropriate proof of the right of such person or persons to
         exercise the Option; and

                           (d)      Full payment (in cash or by check) to the
         Secretary of the Company for the shares with respect to which the
         Option, or portion thereof, is exercised. However, the Administrator
         may, in its discretion, (i) allow payment, in whole or in part, through
         the delivery of shares of Common Stock which have been owned by the
         Holder for at least six months, duly endorsed for transfer to the
         Company with a Fair Market Value on the date of delivery equal to the
         aggregate exercise price of the Option or exercised portion thereof;
         (ii) allow payment, in whole or in part, through the surrender of
         shares of Common Stock then issuable upon exercise of the Option having
         a Fair Market Value on the date of Option exercise equal to the
         aggregate exercise price of the Option or exercised portion thereof;
         (iii) allow payment, in whole or in part, through the delivery of
         property of any kind which constitutes good and valuable consideration;
         (iv) allow payment, in whole or in part, through the delivery of a full
         recourse promissory note bearing interest (at no less than such rate as
         shall then preclude the imputation of interest under the Code) and
         payable upon such terms as may be prescribed by the Administrator; (v)
         allow payment, in whole or in part, through the delivery of a notice
         that the Holder has placed a market sell order with a broker with
         respect to shares of Common Stock then issuable upon exercise of the
         Option, and that the broker has been

                                       17

<PAGE>

         directed to pay a sufficient portion of the net proceeds of the sale to
         the Company in satisfaction of the Option exercise price, provided that
         payment of such proceeds is then made to the Company upon settlement of
         such sale; or (vi) allow payment through any combination of the
         consideration provided in the foregoing subparagraphs (i), (ii), (iii),
         (iv) and (v). In the case of a promissory note, the Administrator may
         also prescribe the form of such note and the security to be given for
         such note. The Option may not be exercised, however, by delivery of a
         promissory note or by a loan from the Company, the Services Company,
         the Partnership or any Subsidiary when or where such loan or other
         extension of credit is prohibited by law. Notwithstanding the
         foregoing, (i) in no event shall any loan that is prohibited by the
         Sarbanes-Oxley Act of 2002 or that is inconsistent with the Company's
         qualification as a REIT be permitted under the Plan and (ii) any loan
         that is made hereunder at any time which is then not prohibited by the
         Sarbanes-Oxley Act of 2002 shall become due and payable in full
         immediately before the loan would be prohibited by the Sarbanes-Oxley
         Act of 2002.

                  6.3.     Transfer of Shares to a Company Employee. Consultant
or Independent Director. As soon as practicable after receipt by the Company,
pursuant to Section 6.2(d), of payment for the shares with respect to which an
Option (which in the case of a Company Employee, Company Consultant or
Independent Director was issued to and is held by such Holder in such capacity),
or portion thereof, is exercised by a Holder who is a Company Employee,
Independent Director or Company Consultant, then, with respect to each such
exercise, the Company shall transfer to the Holder the number of shares equal to

                           (a)      The amount of the payment made by the Holder
         to the Company pursuant to Section 6.2(d), divided by

                           (b)      The price per share of the shares subject to
         the Option as determined pursuant to Section 5.1.

                  6.4.     Transfer of Shares to a Partnership Employee or
Consultant. As soon as practicable after receipt by the Company, pursuant to
Section 6.2(d), of payment for the shares with respect to which an Option (which
was issued to and is held by a Partnership Employee or Partnership Consultant in
such capacity), or portion thereof, is exercised by a Holder who is a
Partnership Employee or Partnership Consultant, then, with respect to each such
exercise:

                           (a)      the Company shall transfer to the Holder the
         number of shares equal to (A) the amount of the payment made by the
         Holder to the Company pursuant to Section 6.2(d) divided by (B) the
         Fair Market Value of a share of Common Stock at the time of exercise
         (the "Partnership Holder Purchased Shares"):

                           (b)      the Company shall sell to the Partnership
         the number of shares (the "Partnership Purchased Shares") equal to the
         excess of (i) the amount obtained by dividing (A) the amount of the
         payment made by the Holder to the Company pursuant to Section 6.2(d) by
         (B) the price per share of the shares subject to the Option as
         determined pursuant to Section 5.1, over (ii) the Partnership Holder
         Purchased Shares. The price to be paid by the Partnership to

                                       18

<PAGE>

         the Company for the Partnership Purchased Shares (the "Partnership
         Purchase Price") shall be an amount equal to the product of (x) the
         number of Partnership Purchased Shares multiplied by (y) the Fair
         Market Value of a share of Common Stock at the time of the exercise;
         and

                           (c)      as soon as practicable after receipt of the
         Partnership Purchased Shares by the Partnership, the Partnership shall
         transfer such shares to the Holder at no additional cost, as additional
         compensation.

                  6.5.     Transfer of Shares to a Services Company Employee,
Consultant or Director. As soon as practicable after receipt by the Company,
pursuant to Section 6.2(d), of payment for the shares with respect to which an
Option (which was issued to and is held by a Services Company Employee, Services
Company Director or Services Company Consultant in such capacity), or portion
thereof, is exercised by a Holder who is a Services Company Employee, Services
Company Director or Services Company Consultant, then, with respect to each such
exercise:

                           (a)      the Company shall transfer to the Holder the
         number of shares equal to (A) the amount of the payment made by the
         Holder to the Company pursuant to Section 6.2(d) divided by (B) the
         Fair Market Value of a share of Common Stock at the time of exercise
         (the "Services Company Holder Purchased Shares"):

                           (b)      the Company shall sell to the Services
         Company the number of shares (the "Services Company Purchased Shares")
         equal to the excess of (i) the amount obtained by dividing (A) the
         amount of the payment made by the Holder to the Company pursuant to
         Section 6.2(d) by (B) the price per share of the shares subject to the
         Option as determined pursuant to Section 5.1, over (ii) the Services
         Company Holder Purchased Shares. The price to be paid by the Services
         Company to the Company for the Services Company Purchased Shares (the
         "Services Company Purchase Price") shall be an amount equal to the
         product of (x) the number of Services Company Purchased Shares
         multiplied by (y) the Fair Market Value of a share of Common Stock at
         the time of the exercise; and

                           (c)      as soon as practicable after receipt of the
         Services Company Purchased Shares by the Services Company, the Services
         Company shall transfer such shares to the Holder at no additional cost,
         as additional compensation.

                  6.6.     Transfer of Payment to the Partnership. As soon as
practicable after receipt by the Company of the amounts described in Sections
6.2(d), 6.4(b) and 6.5(b), the Company shall contribute to the Partnership an
amount of cash equal to such payments and the Partnership shall issue an
additional interest in the Partnership on the terms set forth in the Partnership
Agreement.

                  6.7.     Conditions to Issuance of Stock Certificates. None of
the Company, the Partnership or the Services Company shall be required to issue
or deliver any certificate or

                                       19

<PAGE>

certificates for shares of stock purchased upon the exercise of any Option or
portion thereof prior to fulfillment of all of the following conditions:

                           (a)      The admission of such shares to listing on
         all stock exchanges on which such class of stock is then listed;

                           (b)      The completion of any registration or other
         qualification of such shares under any state or federal law, or under
         the rulings or regulations of the Securities and Exchange Commission or
         any other governmental regulatory body which the Administrator shall,
         in its absolute discretion, deem necessary or advisable;

                           (c)      The obtaining of any approval or other
         clearance from any state or federal governmental agency which the
         Administrator shall, in its absolute discretion, determine to be
         necessary or advisable;

                           (d)      The lapse of such reasonable period of time
         following the exercise of the Option as the Administrator may establish
         from time to tune for reasons of administrative convenience; and

                           (e)      The receipt by the Company, the Services
         Company or the Partnership of full payment for such shares, including
         payment of any applicable withholding tax, which in the discretion of
         the Administrator may be in the form of consideration used by the
         Holder to pay for such shares under Section 6.2(d).

                  6.8.     Rights as Stockholders. Holders shall not be, nor
have any of the rights or privileges of, stockholders of the Company in respect
of any shares purchasable upon the exercise of any part of an Option unless and
until certificates representing such shares have been issued by the Company, the
Partnership or the Services Company, as applicable, to such Holders.

                  6.9.     Exercise, Ownership and Transfer Restrictions. The
Administrator, in its absolute discretion, may impose such restrictions on the
exercise of an Option and the ownership and transferability of the shares
purchasable upon the exercise of an Option as it deems appropriate. Any such
restriction shall be set forth in the respective Award Agreement and may be
referred to on the certificates evidencing such shares. The Holder shall give
the Company prompt notice of any disposition of shares of Common Stock acquired
by exercise of an Incentive Stock Option within (a) two years from the date of
granting (including the date the Option is modified, extended or renewed for
purposes of Section 424(h) of the Code) such Option to such Holder, or (b) one
year after the transfer of such shares to such Holder.

                  6.10.    Limitations on Exercise of Options Granted to
Independent Directors. No Option granted to an Independent Director may be
exercised to any extent by anyone after the first to occur of the following
events:

                           (a)      The expiration of 12 months from the date of

         the Holder's death;

                           (b)      The expiration of 12 months from the date of
         the Holder's Termination of Directorship by reason of his or her
         permanent and total disability (within the meaning of Section 22(e)(3)
         of the Code);

                                       20

<PAGE>

                           (c)      The expiration of six months from the date
         of the Holder's Termination of Directorship for any reason other than
         such Holder's death or his or her permanent and total disability,
         unless the Holder dies within said six-month period; or

                           (d)      The expiration of 10 years from the date the
         Option was granted.

                  6.11.    Additional Limitations on Exercise of Options.
Holders may be required to comply with any timing or other restrictions with
respect to the settlement or exercise of an Option, including a window-period
limitation, as may be imposed in the discretion of the Administrator.

                                  ARTICLE VII.

                            AWARD OF RESTRICTED STOCK

                  7.1.     Eligibility. Subject to the Award Limit, Restricted
Stock may be awarded to any Employee, Director or Consultant whom the
Administrator determines should receive such an Award.

                  7.2.     Award of Restricted Stock.

                           (a)      The Administrator may from time to time, in
         its absolute discretion:

                                    (i)      Determine which Employees are key
                  Employees and select from among the key Employees, Directors
                  or Consultants (including Employees, Directors or Consultants
                  who have previously received other awards under the Plan) such
                  of them as in its opinion should be awarded Restricted Stock;
                  and

                                    (ii)     Determine the purchase price, if
                  any, and other terms and conditions (including, without
                  limitation, in the case of awards to Employees, Consultants or
                  Directors of the Services Company, any Services Company
                  Subsidiary, the Partnership or any Partnership Subsidiary, the
                  mechanism for the transfer of the Restricted Stock and payment
                  therefor, and any surrender of such Restricted Stock pursuant
                  to Section 7.4) applicable to such Restricted Stock,
                  consistent with the Plan.

                           (b)      The Administrator shall establish the
         purchase price, if any, and form of payment for Restricted Stock;
         provided, however, that such purchase price, if any, shall be no less
         than the par value of the Common Stock to be purchased, unless
         otherwise permitted by applicable state law. In all cases, legal
         consideration shall be required for each issuance of Restricted Stock.

                           (c)      Upon the selection of a key Employee,
         Director or Consultant to be awarded Restricted Stock, the
         Administrator shall instruct the Secretary of the Company to issue such
         Restricted Stock and may impose such conditions on the issuance of such
         Restricted Stock as it deems appropriate.

                                       21

<PAGE>

                  7.3.     Rights as Stockholders. Subject to Section 7.4, upon
delivery of the shares of Restricted Stock to the escrow holder pursuant to
Section 7.6, the Holder shall have, unless otherwise provided by the
Administrator, all the rights of a stockholder with respect to said shares,
subject to the restrictions in his or her Award Agreement, including the right
to receive all dividends and other distributions paid or made with respect to
the shares; provided, however, that in the discretion of the Administrator, any
extraordinary distributions with respect to the Common Stock shall be subject to
the restrictions set forth in Section 7.4.

                  7.4.     Restriction. All shares of Restricted Stock issued
under the Plan (including any shares received by holders thereof with respect to
shares of Restricted Stock as a result of stock dividends, stock splits or any
other form of recapitalization) shall, in the terms of each individual Award
Agreement, be subject to such restrictions as the Administrator shall provide,
which restrictions may include, without limitation, restrictions concerning
voting rights and transferability and restrictions based on duration of
employment or service with the Company, the Partnership, the Services Company or
a Subsidiary, performance of the Company, the Partnership, the Services Company
or a Subsidiary and individual performance; provided, however, that, unless the
Administrator otherwise provides in the terms of the Award Agreement or
otherwise, no share of Restricted Stock granted to a person subject to Section
16 of the Exchange Act shall be sold, assigned or otherwise transferred until at
least six months and one day have elapsed from the date on which the Restricted
Stock was issued; and provided, further. that, except with respect to shares of
Restricted Stock granted to Section 162(m) Participants, by action taken after
the Restricted Stock is issued, the Administrator may, on such terms and
conditions as it may determine to be appropriate, remove any or all of the
restrictions imposed by the terms of the Award Agreement. Restricted Stock may
not be sold or encumbered until all restrictions are terminated or expire. If no
cash consideration was paid by the Holder upon issuance, a Holder's rights in
unvested Restricted Stock shall lapse, and such Restricted Stock shall be
surrendered to the Company, the Partnership or the Services Company, as
applicable, without consideration, upon a Termination of Employment, Termination
of Directorship or Termination of Consultancy.

                  7.5.     Repurchase of Restricted Stock. The Administrator
shall provide in the terms of each individual Award Agreement that the Company,
the Partnership, the Services Company or their Subsidiaries shall have the right
to repurchase from the Holder the Restricted Stock then subject to restrictions
under the Award Agreement immediately upon a Termination of Employment,
Termination of Directorship or Termination of Consultancy, at a cash price per
share equal to the price paid by the Holder for such Restricted Stock.

                  7.6.     Escrow. The Secretary of the Company or such other
escrow holder as the Administrator may appoint shall retain physical custody of
each certificate representing Restricted Stock until all of the restrictions
imposed under the Award Agreement with respect to the shares evidenced by such
certificate expire or shall have been removed.

                  7.7.     Legend. In order to enforce the restrictions imposed
upon shares of Restricted Stock hereunder, the Administrator shall cause a
legend or legends to be placed on certificates representing all shares of
Restricted Stock that are still subject to restrictions under Award Agreements,
which legend or legends shall make appropriate reference to the conditions
imposed thereby.

                                       22

<PAGE>

                                  ARTICLE VIII.

                    PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS,
                         DEFERRED STOCK, STOCK PAYMENTS

                  8.1.     Eligibility. Subject to the Award Limit, one or more
Performance Awards, Dividend Equivalents, awards of Deferred Stock and/or Stock
Payments may be granted to any Employee whom the Administrator determines is a
key Employee or any Director or Consultant whom the Administrator determines
should receive such an Award.

                  8.2.     Performance Awards.

                           (a)      Any key Employee, Director or Consultant
         selected by the Administrator may be granted one or more Performance
         Awards. The value of such Performance Awards may be linked to any one
         or more of the Performance Criteria or other specific performance
         criteria determined appropriate by the Administrator, in each case on a
         specified date or dates or over any period or periods determined by the
         Administrator. In making such determinations, the Administrator shall
         consider (among such other factors as it deems relevant in light of the
         specific type of award) the contributions, responsibilities and other
         compensation of the particular key Employee, Director or Consultant.

                           (b)      Without limiting Section 8.2(a), the
         Administrator may grant Performance Awards to any 162(m) Participant in
         the form of a cash bonus payable upon the attainment of objective
         performance goals which are established by the Administrator and relate
         to one or more of the Performance Criteria, in each case on a specified
         date or dates or over any period or periods determined by the
         Administrator. Any such bonuses paid to 162(m) Participants shall be
         based upon objectively determinable bonus formulas established in
         accordance with the provisions of Section 3.2. The maximum amount of
         any Performance Award payable to a 162(m) Participant under this
         Section 8.2(b) shall not exceed the Award Limit with respect to any
         calendar year. Unless otherwise specified by the Administrator at the
         time of grant, the Performance Criteria with respect to a Performance
         Award payable to a 162(m) Participant shall be determined on the basis
         of generally accepted accounting principles.

                  8.3.     Dividend Equivalents.

                           (a)      Any key Employee, Director or Consultant
         selected by the Administrator may be granted Dividend Equivalents based
         on the dividends declared on Common Stock, to be credited as of
         dividend payment dates, during the period between the date a Stock
         Appreciation Right, Deferred Stock or Performance Award is granted, and
         the date such Stock Appreciation Right, Deferred Stock or Performance
         Award is exercised, vests or expires, as determined by the
         Administrator. Such Dividend Equivalents shall be converted to cash or
         additional shares of Common Stock by such formula and at such time and
         subject to such limitations as may be determined by the Administrator.

                                       23

<PAGE>

                           (b)      Any Holder of an Option who is an Employee
         or Consultant selected by the Committee may be granted Dividend
         Equivalents based on the dividends declared on Common Stock, to be
         credited as of dividend payment dates, during the period between the
         date an Option is granted, and the date such Option is exercised, vests
         or expires, as determined by the Committee. Such Dividend Equivalents
         shall be converted to cash or additional shares of Common Stock by such
         formula and at such time and subject to such limitations as may be
         determined by the Committee.

                           (c)      Any Holder of an Option who is an
         Independent Director selected by the Board may be granted Dividend
         Equivalents based on the dividends declared on Common Stock, to be
         credited as of dividend payment dates, during the period between the
         date an Option is granted and the date such Option is exercised, vests
         or expires, as determined by the Board. Such Dividend Equivalents shall
         be converted to cash or additional shares of Common Stock by such
         formula and at such time and subject to such limitations as may be
         determined by the Board.

                           (d)      Dividend Equivalents granted with respect to
         Options intended to be qualified performance-based compensation for
         purposes of Section 162(m) of the Code shall be payable, with respect
         to pre-exercise periods, regardless of whether such Option is
         subsequently exercised.

                  8.4.     Stock Payments. Any key Employee, Director or
Consultant selected by the Administrator may receive Stock Payments in the
manner determined from time to time by the Administrator. The number of shares
shall be determined by the Administrator and may be based upon the Performance
Criteria or other specific performance criteria determined appropriate by the
Administrator, determined on the date such Stock Payment is made or on any date
thereafter.

                  8.5.     Deferred Stock. Any key Employee, Director or
Consultant selected by the Administrator may be granted an award of Deferred
Stock in the manner determined from time to time by the Administrator. The
number of shares of Deferred Stock shall be determined by the Administrator and
may be linked to the Performance Criteria or other specific performance criteria
determined to be appropriate by the Administrator, in each case on a specified
date or dates or over any period or periods determined by the Administrator.
Common Stock underlying a Deferred Stock award will not be issued until the
Deferred Stock award has vested, pursuant to a vesting schedule or performance
criteria set by the Administrator. Unless otherwise provided by the
Administrator, a Holder of Deferred Stock shall have no rights as a Company
stockholder with respect to such Deferred Stock until such time as the Award has
vested and the Common Stock underlying the Award has been issued.

                  8.6.     Term. The term of a Performance Award, Dividend
Equivalent, award of Deferred Stock and/or Stock Payment shall be set by the
Administrator in its discretion.

                  8.7.     Exercise or Purchase Price. The Administrator may
establish the exercise or purchase price of a Performance Award, shares of
Deferred Stock or shares received as a Stock Payment; provided, however, that
such price shall not be less than the par value of a share of Common Stock,
unless otherwise permitted by applicable state law.

                                       24

<PAGE>

                  8.8.     Exercise Upon Termination of Employment, Termination
of Consultancy or Termination of Directorship. A Performance Award, Dividend
Equivalent, award of Deferred Stock and/or Stock Payment is exercisable or
payable only while the Holder is an Employee, Consultant or Director, as
applicable; provided, however, that, except with respect to Performance Awards
granted to Section 162(m) Participants, the Administrator in its sole and
absolute discretion may provide that the Performance Award, Dividend Equivalent,
award of Deferred Stock and/or Stock Payment may be exercised or paid subsequent
to a Termination of Employment, Termination of Directorship or Termination of
Consultancy without cause, or following a Change in Control of the Company, or
because of the Holder's retirement, death or disability, or otherwise.

                  8.9.     Form of Payment. Payment of the amount determined
under Section 8.2 or 8.3 above shall be in cash, in Common Stock or a
combination of both, as determined by the Administrator. To the extent any
payment under this Article VIII is effected in Common Stock, it shall be made
subject to satisfaction of all provisions of Section 6.7.

                                   ARTICLE IX.

                            STOCK APPRECIATION RIGHTS

                  9.1.     Grant of Stock Appreciation Rights. A Stock
Appreciation Right may be granted to any key Employee, Director or Consultant
selected by the Administrator. A Stock Appreciation Right may be granted (a) in
connection and simultaneously with the grant of an Option, (b) with respect to a
previously granted Option, or (c) independent of an Option. A Stock Appreciation
Right shall be subject to such terms and conditions (including, without
limitation, in the case of awards to Employees, Directors or Consultants of the
Services Company, any Services Company Subsidiary, the Partnership or any
Partnership Subsidiary, the mechanism for the transfer or rights under such
awards) not inconsistent with the Plan as the Administrator shall impose and
shall be evidenced by an Award Agreement.

                  9.2.     Coupled Stock Appreciation Rights.

                           (a)      A Coupled Stock Appreciation Right ("CSAR")
         shall be related to a particular Option and shall be exercisable only
         when and to the extent the related Option is exercisable.

                           (b)      A CSAR may be granted to the Holder for no
         more than the number of shares subject to the simultaneously or
         previously granted Option to which it is coupled.

                           (c)      A CSAR shall entitle the Holder (or other
         person entitled to exercise the Option pursuant to the Plan) to
         surrender to the Company unexercised a portion of the Option to which
         the CSAR relates (to the extent then exercisable pursuant to its terms)
         and to receive from the Company in exchange therefor an amount
         determined by multiplying the difference obtained by subtracting the
         Option exercise price from the Fair Market Value of a share of Common
         Stock on the date of exercise of the CSAR by the number of shares of
         Common Stock with respect to which the CSAR

                                       25

<PAGE>

         shall have been exercised, subject to any limitations the Committee may
         impose.

                  9.3.     Independent Stock Appreciation Rights.

                           (a)      An Independent Stock Appreciation Right
         ("ISAR") shall be unrelated to any Option and shall have a term set by
         the Administrator. An ISAR shall be exercisable in such installments as
         the Administrator may determine. An ISAR shall cover such number of
         shares of Common Stock as the Administrator may determine; provided,
         however, that unless the Administrator otherwise provides hi the terms
         of the ISAR or otherwise, no ISAR granted to a person subject to
         Section 16 of the Exchange Act shall be exercisable until at least six
         months have elapsed from (but excluding) the date on which the Option
         was granted. The exercise price per share of Common Stock subject to
         each ISAR shall be set by the Administrator. An ISAR is exercisable
         only while the Holder is an Employee, Director or Consultant; provided,
         that the Administrator may determine that the ISAR may be exercised
         subsequent to Termination of Employment, Termination of Directorship or
         Termination of Consultancy without cause, or following a Change in
         Control of the Company, or because of the Holder's retirement, death or
         disability, or otherwise.

                           (b)      An ISAR shall entitle the Holder (or other
         person entitled to exercise the ISAR pursuant to the Plan) to exercise
         all or a specified portion of the ISAR (to the extent then exercisable
         pursuant to its terms) and to receive from the Company an amount
         determined by multiplying the difference obtained by subtracting the
         exercise price per share of the ISAR from the Fair Market Value of a
         share of Common Stock on the date of exercise of the ISAR by the number
         of shares of Common Stock with respect to which the ISAR shall have
         been exercised, subject to any limitations the Administrator may
         impose.

                  9.4.     Payment and Limitations on Exercise.

                           (a)      Payment of the amounts determined under
         Section 9.2(c) and 9.3(b) above shall be in cash, in Common Stock
         (based on its Fair Market Value as of the date the Stock Appreciation
         Right is exercised) or a combination of both, as determined by the
         Administrator. To the extent such payment is effected in Common Stock
         it shall be made subject to satisfaction of all provisions of Section
         6.7 above pertaining to Options.

                           (b)      Holders of Stock Appreciation Rights may be
         required to comply with any timing or other restrictions with respect
         to the settlement or exercise of a Stock Appreciation Right, including
         a window-period limitation, as may be imposed in the discretion of the
         Administrator.

                                       26

<PAGE>

                                   ARTICLE X.

                                 ADMINISTRATION

                  10.1.    Compensation Committee. Prior to the Public Trading
Date, the Compensation Committee shall consist of the entire Board. Following
the Public Trading Date, the Compensation Committee (or another committee or a
subcommittee of the Board assuming the functions of the Committee under the
Plan) shall consist solely of two or more Independent Directors appointed by and
holding office at the pleasure of the Board, each of whom is both a
"non-employee director" as defined by Rule 16b-3 and an "outside director" for
purposes of Section 162(m) of the Code. Appointment of Committee members shall
be effective upon acceptance of appointment. Committee members may resign at any
time by delivering written notice to the Board. Vacancies in the Committee may
be filled by the Board.

                  10.2.    Duties and Powers of Committee. It shall be the duty
of the Committee to conduct the general administration of the Plan in accordance
with its provisions. The Committee shall have the power to interpret the Plan
and the Award Agreements, and to adopt such rules for the administration,
interpretation and application of the Plan as are consistent therewith, to
interpret, amend or revoke any such rules. Interpretations and rules with
respect to Incentive Stock Options shall be consistent with the provisions of
Section 422 of the Code. The Committee shall have the power to amend any Award
Agreement provided that the rights or obligations of the Holder of the Award
that is the subject of any such Award Agreement are not affected adversely;
provided, however, that without the approval of the stockholders of the Company,
neither the Committee nor the Board shall authorize the amendment of any
outstanding Option or Stock Appreciation Right to reduce its exercise price.
Notwithstanding anything contained herein, no Option or Stock Appreciation Right
shall be canceled and replaced with the grant of an Option or Stock Appreciation
Right having a lower exercise price without the approval of the stockholders of
the Company. Grants or Awards under the Plan need not be the same with respect
to each Holder. In its absolute discretion, the Board may at any time and from
time to time exercise any and all rights and duties of the Committee under the
Plan except with respect to matters which under Rule 16b-3 or Section 162(m) of
the Code, or any regulations or rules issued thereunder, are required to be
determined in the sole discretion of the Committee. Notwithstanding the
foregoing, the full Board, acting by a majority of its members in office, shall
conduct the general administration of the Plan with respect to Awards granted to
Independent Directors.

                  10.3.    Majority Rule; Unanimous Written Consent. The
Committee shall act by a majority of its members in attendance at a meeting at
which a quorum is present or by a memorandum or other written instrument signed
by all members of the Committee.

                  10.4.    Compensation; Professional Assistance; Good Faith
Actions. Members of the Committee shall receive such compensation, if any, for
their services as members as may be determined by the Board. All expenses and
liabilities which members of the Committee incur in connection with the
administration of the Plan shall be borne by the Company. The Committee may,
with the approval of the Board, employ attorneys, consultants, accountants,
appraisers, brokers, or other persons. The Committee, the Company and the
Company's officers and Directors shall be entitled to rely upon the advice,
opinions or valuations of any such persons.

                                       27

<PAGE>

All actions taken and all interpretations and determinations made by the
Committee or the Board in good faith shall be final and binding upon all
Holders, the Company and all other interested persons. No members of the
Committee or Board shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or Awards, and all
members of the Committee and the Board shall be fully protected by the Company
in respect of any such action, determination or interpretation.

                  10.5.    Delegation of Authority to Grant Awards. The
Committee may, but need not, delegate from time to time some or all of its
authority to grant Awards under the Plan to a committee consisting of one or
more members of the Committee or of one or more officers of the Company;
provided, however, that the Committee may not delegate its authority to grant
Awards to individuals (a) who are subject on the date of the grant to the
reporting rules under Section 16(a) of the Exchange Act, (b) who are Section
162(m) Participants, or (c) who are officers of the Company who are delegated
authority by the Committee hereunder. Any delegation hereunder shall be subject
to the restrictions and limits that the Committee specifies at the time of such
delegation of authority and may be rescinded at any time by the Committee. At
all times, any committee appointed under this Section 10.5 shall serve in such
capacity at the pleasure of the Committee.

                                   ARTICLE XI.

                            MISCELLANEOUS PROVISIONS

                  11.1.    Transferability of Awards.

                           (a)      Except as otherwise provided in Section 11.1
         (b):

                                    (i)      No Award under the Plan may be
                  sold, pledged, assigned or transferred in any manner other
                  than by will or the laws of descent and distribution or,
                  subject to the consent of the Administrator, pursuant to a
                  DRO, unless and until such Award has been exercised, or the
                  shares underlying such Award have been issued, and all
                  restrictions applicable to such shares have lapsed;

                                    (ii)     No Award or interest or right
                  therein shall be liable for the debts, contracts or
                  engagements of the Holder or his or her successors in interest
                  or shall be subject to disposition by transfer, alienation,
                  anticipation, pledge, encumbrance, assignment or any other
                  means whether such disposition be voluntary or involuntary or
                  by operation of law by judgment, levy, attachment, garnishment
                  or any other legal or equitable proceedings (including
                  bankruptcy), and any attempted disposition thereof shall be
                  null and void and of no effect, except to the extent that such
                  disposition is permitted by the preceding sentence; and

                                    (iii)    During the lifetime of the Holders,
                  only he or she may exercise an Option or other Award (or any
                  portion thereof) granted to him or her under the Plan, unless
                  it has been disposed of pursuant to a DRO; after the death of
                  the Holder, any exercisable portion of an Option or other
                  Award may, prior to the time when such portion becomes
                  unexercisable under the Plan or the applicable Award
                  Agreement, be exercised by his or her personal representative

                                       28

<PAGE>

                  or by any person empowered to do so under the deceased
                  Holder's will or under the then applicable laws of descent and
                  distribution.

                           (b)      Notwithstanding Section 11.1 (a), the
         Administrator, in its sole discretion, may determine to permit a Holder
         to transfer a Non-Qualified Stock Option to any one or more Permitted
         Transferees (as defined below), subject to the following terms and
         conditions: (i) a Non-Qualified Stock Option transferred to a Permitted
         Transferee shall not be assignable or transferable by the Permitted
         Transferee other than by will or the laws of descent and distribution;
         (ii) any Non-Qualified Stock Option which is transferred to a Permitted
         Transferee shall continue to be subject to all the terms and conditions
         of the Non-Qualified Stock Option as applicable to the original Holder
         (other than the ability to further transfer the Non-Qualified Stock
         Option); and (iii) the Holder and the Permitted Transferee shall
         execute any and all documents requested by the Administrator,
         including, without limitation documents to (A) confirm the status of
         the transferee as a Permitted Transferee, (B) satisfy any requirements
         for an exemption for the transfer under applicable federal and state
         securities laws and (C) evidence the transfer. For purposes of this
         Section 11.1(b), "Permitted Transferee" shall mean, with respect to a
         Holder, any child, stepchild, grandchild, parent, stepparent,
         grandparent, spouse, former spouse, sibling, niece, nephew,
         mother-in-law, father-in-law, son-in-law, daughter-in-law,
         brother-in-law, or sister-in-law, including adoptive relationships, any
         person sharing the Holder's household (other than a tenant or
         employee), a trust hi which these persons (or the Holder) control the
         management of assets, and any other entity in which these persons (or
         the Holder) own more than fifty percent of the voting interests, or any
         other transferee specifically approved by the Administrator after
         taking into account any state or federal tax or securities laws
         applicable to transferable Non-Qualified Stock Options.

                  11.2.    Amendment, Suspension or Termination of the Plan.
Except as otherwise provided in this Section 11.2, the Plan may be wholly or
partially amended or otherwise modified, suspended or terminated at any time or
from time to time by the Administrator. However, without approval of the
Company's stockholders given within 12 months before or after the action by the
Administrator, no action of the Administrator may, except as provided in Section
11.3, increase the limits imposed in Section 2.1 on the maximum number of shares
which may be issued under the Plan, and no action of the Administrator may be
taken that would otherwise require stockholder approval as a matter of
applicable law, regulation or rule. No amendment, suspension or termination of
the Plan shall, without the consent of the Holder, alter or impair any rights or
obligations under any Award theretofore granted or awarded, unless the Award
itself otherwise expressly so provides. No Awards may be granted or awarded
during any period of suspension or after termination of the Plan, and in no
event may any Incentive Stock Option be granted under the Plan after the first
to occur of the following events:

                           (a)      The expiration of 10 years from the date the
         Plan is adopted by the Board; or

                           (b)      The expiration of 10 years from the date the
         Plan is approved by the Company's stockholders under Section 11.4.

                                       29

<PAGE>

                  11.3.    Changes in Common Stock or Assets of the Company.
Acquisition or Liquidation of the Company and Other Corporate Events.

                           (a)      Subject to Section 11.3(e), in the event
         that the Administrator determines that any dividend or other
         distribution (whether in the form of cash, Common Stock, other
         securities, or other property), recapitalization, reclassification,
         stock split, reverse stock split, reorganization, merger,
         consolidation, split-up, spin-off, combination, repurchase,
         liquidation, dissolution, or sale, transfer, exchange or other
         disposition of all or substantially all of the assets of the Company,
         or exchange of Common Stock or other securities of the Company,
         issuance of warrants or other rights to purchase Common Stock or other
         securities of the Company, or other similar corporate transaction or
         event, in the Administrator's sole discretion, affects the Common Stock
         such that an adjustment is determined by the Administrator to be
         appropriate in order to prevent dilution or enlargement of the benefits
         or potential benefits intended to be made available under the Plan or
         with respect to an Award, then the Administrator shall, in such manner
         as it may deem equitable, adjust any or all of

                                    (i)      The number and kind of shares of
                  Common Stock (or other securities or property) with respect to
                  which Awards may be granted or awarded (including, but not
                  limited to, adjustments of the limitations in Section 2.1 on
                  the maximum number and kind of shares which may be issued and
                  adjustments of the Award Limit);

                                    (ii)     The number and kind of shares of
                  Common Stock (or other securities or property) subject to
                  outstanding Awards; and

                                    (iii)    The grant or exercise price with
                  respect to any Award.

                           (b)      Subject to Sections 11.3(c) and 11.3(e), in
         the event of any transaction or event described in Section 11.3(a) or
         any unusual or nonrecurring transactions or events affecting the
         Company, any affiliate of the Company, or the financial statements of
         the Company or any affiliate, or of changes in applicable laws,
         regulations, or accounting principles, the Administrator in its sole
         and absolute discretion, and on such terms and conditions as it deems
         appropriate, either by the terms of the Award or by action taken prior
         to the occurrence of such transaction or event and either automatically
         or upon the Holder's request, is hereby authorized to take any one or
         more of the following actions whenever the Administrator determines
         that such action is appropriate in order to prevent dilution or
         enlargement of the benefits or potential benefits intended to be made
         available under the Plan or with respect to any Award under the Plan,
         to facilitate such transactions or events or to give effect to such
         changes in laws, regulations or principles:

                                    (i)      To provide for either the purchase
                  of any such Award for an amount of cash equal to the amount
                  that could have been attained upon the exercise of such Award
                  or realization of the Holder's rights had such Award been
                  currently exercisable or payable or fully vested or the
                  replacement of such Award with other rights or property
                  selected by the Administrator in its sole discretion;

                                       30

<PAGE>

                                    (ii)     To provide that the Award cannot
                  vest, be exercised or become payable after such event;

                                    (iii)    To provide that such Award shall be
                  exercisable as to all shares covered thereby, notwithstanding
                  anything to the contrary in Section 5.3 or 5.4 or the
                  provisions of such Award;

                                    (iv)     To provide that such Award be
                  assumed by the successor or survivor corporation, or a parent
                  or subsidiary thereof, or shall be substituted for by similar
                  options, rights or awards covering the stock of the successor
                  or survivor corporation, or a parent or subsidiary thereof,
                  with appropriate adjustments as to the number and kind of
                  shares and prices;

                                    (v)      To make adjustments in the number
                  and type of shares of Common Stock (or other securities or
                  property) subject to outstanding Awards, and in the number and
                  kind of outstanding Restricted Stock or Deferred Stock and/or
                  in the terms and conditions of (including the grant or
                  exercise price), and the criteria included in, outstanding
                  options, rights and awards and options, rights and awards
                  which may be granted in the future; and

                                    (vi)     To provide that, for a specified
                  period of time prior to such event, the restrictions imposed
                  under an Award Agreement upon some or all shares of Restricted
                  Stock or Deferred Stock may be terminated, and, in the case of
                  Restricted Stock, some or all shares of such Restricted Stock
                  may cease to be subject to repurchase under Section 7.5 or
                  forfeiture under Section 7.4 after such event.

                           (c)      Notwithstanding any other provision of the
         Plan, in the event of a merger of the Company with or into another
         corporation, the sale of substantially all of the assets of the Company
         or a Change in Control of the Company, each outstanding Option shall be
         assumed or an equivalent option substituted by the successor
         corporation or a parent or subsidiary of the successor corporation. In
         the event that the successor corporation refuses to assume or
         substitute for the Option, the optionee shall have the right to
         exercise the Option as to all of the optioned stock, including shares
         as to which it would not otherwise be exercisable. If an Option is
         exercisable in lieu of assumption or substitution in the event of a
         merger or sale of assets, the Administrator shall notify the optionee
         that the Option shall be fully exercisable for a period of 15 days from
         the date of such notice, and the Option shall terminate upon the
         expiration of such period. For the purposes of this Section 11.3(c),
         the Option shall be considered assumed if, following the merger or sale
         of assets, the option confers the right to purchase or receive, for
         each share of optioned stock subject to the Option immediately prior to
         the merger or sale of assets, the consideration (whether stock, cash,
         or other securities or property) received in the merger or sale of
         assets by holders of Common Stock for each share held on the effective
         date of the transaction (and if holders were offered a choice of
         consideration, the type of consideration chosen by the holders of a
         majority of the outstanding shares); provided, however, that if such
         consideration received in the merger or sale of assets was not solely
         common stock of the successor corporation or its parent, the
         Administrator may, with the

                                       31

<PAGE>

         consent of the successor corporation, provide for the consideration to
         be received upon the exercise of the Option, for each share of optioned
         stock subject to the Option, to be solely common stock of the successor
         corporation or its parent equal in fair market value to the per share
         consideration received by holders of Common Stock in the merger or sale
         of assets.

                           (d)      Subject to Sections 3.2, 3.3 and 11.3(e),
         the Administrator may, in its discretion, include such further
         provisions and limitations in any Award, agreement or certificate, as
         it may deem equitable and in the best interests of the Company.

                           (e)      With respect to Awards which are granted to
         Section 162(m) Participants and are intended to qualify as
         performance-based compensation under Section 162(m)(4)(C), no
         adjustment or action described in this Section 11.3 or in any other
         provision of the Plan shall be authorized to the extent that such
         adjustment or action would cause such Award to fail to so qualify under
         Section 162(m)(4)(C), or any successor provisions thereto. No
         adjustment or action described in this Section 11.3 or in any other
         provision of the Plan shall be authorized to the extent that such
         adjustment or action would cause the Plan to violate Section 422(b)(l)
         of the Code. Furthermore, no such adjustment or action shall be
         authorized to the extent such adjustment or action would result in
         short-swing profits liability under Section 16 or violate the exemptive
         conditions of Rule 16b-3 unless the Administrator determines that the
         Award is not to comply with such exemptive conditions. The number of
         shares of Common Stock subject to any Award shall always be rounded to
         the next whole number.

                           (f)      The existence of the Plan, the Award
         Agreement and the Awards granted hereunder shall not affect or restrict
         in any way the right or power of the Company or the shareholders of the
         Company to make or authorize any adjustment, recapitalization,
         reorganization or other change in the Company's capital structure or
         its business, any merger or consolidation of the Company, any issue of
         stock Or of options, warrants or rights to purchase stock or of bonds,
         debentures, preferred or prior preference stocks whose rights are
         superior to or affect the Common Stock or the rights thereof or which
         are convertible into or exchangeable for Common Stock, or the
         dissolution or liquidation of the company, or any sale or transfer of
         all or any part of its assets or business, or any other corporate act
         or proceeding, whether of a similar character or otherwise.

                  11.4.    Approval of Plan by Stockholders. The Plan will be
submitted for the approval of the Company's stockholders within 12 months after
the date of the Board's initial adoption of the Plan, and any amendment to the
Plan increasing the aggregate number of shares of Common Stock issuable under
the Plan will be submitted for the approval of the Company's stockholders after
the date of the Board's adoption of such amendment. Awards may be granted or
awarded prior to such stockholder approval, provided that such Awards shall not
be exercisable nor shall such Awards vest prior to the time when the Plan is
approved by the stockholders, and provided further that if such approval is not
obtained, all Awards previously granted or awarded under the Plan shall
thereupon be canceled and become null and void. In addition, if the Board
determines that Awards other than Options or Stock Appreciation Rights which may
be granted to Section 162(m) Participants should continue to be eligible to
qualify as

                                       32

<PAGE>

performance based compensation under Section 162(m)(4)(C) of the Code, the
Performance Criteria must be disclosed to and approved by the Company's
stockholders no later than the first stockholder meeting that occurs in the
fifth year following the year in which the Company's stockholders previously
approved the Performance Criteria.

                  11.5.    Tax Withholding. The Company, the Operating
Partnership or the Services Company, as applicable, shall be entitled to require
payment in cash or deduction from other compensation payable to each Holder of
any sums required by federal, state or local tax law to be withheld with respect
to the issuance, vesting, exercise or payment of any Award. The Administrator
may in its discretion and in satisfaction of the foregoing requirement allow
such Holder to elect to have the Company, the Operating Partnership or the
Services Company, as applicable, withhold shares of Common Stock otherwise
issuable under such Award (or allow the return of shares of Common Stock) having
a Fair Market Value equal to the sums required to be withheld. Notwithstanding
any other provision of the Plan, the number of shares of Common Stock which may
be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased from the Holder of such Award within six
months after such shares of Common Stock were acquired by the Holder from the
Company) in order to satisfy the Holder's federal and state income and payroll
tax liabilities with respect to the issuance, vesting, exercise or payment of
the Award shall be limited to the number of shares which have a Fair Market
Value on the date of withholding or repurchase equal to the aggregate amount of
such liabilities based on the minimum statutory withholding rates for federal
and state tax income and payroll tax purposes that are applicable to such
supplemental taxable income.

                  11.6.    Loans. The Committee may, in its discretion, extend
one or more loans to Employees in connection with the exercise or receipt of an
Award granted or awarded under the Plan, or the issuance of Restricted Stock or
Deferred Stock awarded under the Plan. The terms and conditions of any such loan
shall be set by the Committee. Notwithstanding the foregoing, (i) in no event
shall any loan that is prohibited by the Sarbanes-Oxley Act of 2002 or that is
inconsistent with the Company's qualification as a REFT be permitted under the
Plan and (ii) any loan that is made hereunder at any time which is then not
prohibited by the Sarbanes-Oxley Act of 2002 shall become due and payable in
full immediately before the loan would be prohibited by the Sarbanes-Oxley Act
of 2002.

                  11.7.    Forfeiture Provisions. Pursuant to its general
authority to determine the terms and conditions applicable to Awards under the
Plan, the Administrator shall, to the extent permitted by applicable law, have
the right to provide, in the terms of Awards made under the Plan, or to require
a Holder to agree by separate written instrument, that (a)(i) any proceeds,
gains or other economic benefit actually or constructively received by the
Holder upon any receipt or exercise of the Award, or upon the receipt or resale
of any Common Stock underlying the Award, must be paid to the Company, the
Partnership, the Services Company or a Subsidiary and (ii) the Award shall
terminate and any unexercised portion of the Award (whether or not vested) shall
be forfeited, if (b)(i) a Termination of Employment, Termination of Consultancy
or Termination of Directorship occurs prior to a specified date, or within a
specified time period following receipt or exercise of the Award, or (ii) the
Holder at any time, or during a specified time period, engages in any activity
in competition with the Company, the Partnership, the Services Company or a
Subsidiary or which is inimical, contrary or harmful to the interests of the
Company, the Partnership, the Services Company or a Subsidiary as further
defined by the

                                       33
<PAGE>

Administrator or (iii) the Holder incurs a Termination of Employment,
Termination of Consultancy or Termination of Directorship for cause.

                  11.8.    Effect of Plan Upon Options and Compensation Plans.
The adoption of the Plan shall not affect any other compensation or incentive
plans in effect for the Company, the Partnership, the Services Company or any
Subsidiary. Nothing in the Plan shall be construed to limit the right of the
Company (a) to establish any other forms of incentives or compensation for
Employees, Directors or Consultants of the Company, the Services Company, the
Partnership or any Subsidiary or (b) to grant or assume options or other rights
or awards otherwise than under the Plan in connection with any proper corporate
purpose including but not by way of limitation, the grant or assumption of
options in connection with the acquisition by purchase, lease, merger,
consolidation or otherwise, of the business, stock or assets of any corporation,
partnership, limited liability company, firm or association.

                  11.9.    Section 83(b) Election Prohibited. No Holder may make
an election under Section 83(b) of the Code with respect to any award or grant
under the Plan without the consent of the Company, which the Company may grant
or withhold in its sole discretion.

                  11.10    Grant of Awards to Certain Employees or Consultants.
The Company and the Partnership, the Services Company or any Subsidiary may
provide through the establishment of a formal written policy or otherwise for
the method by which shares of Common Stock and/or payment therefor may be
exchanged or contributed between the Company and such other party, or may be
returned to the Company upon any forfeiture of Common Stock by the Holder, for
the purpose of ensuring that the relationship between the Company and the
Partnership, the Services Company or such Subsidiary remains at arm's-length.

                  11.11    Restrictions on Awards. This Plan shall be
interpreted and construed in a manner consistent with the Company's status as a
REIT. No Award shall be granted or awarded, and with respect to an Option
already granted under the Plan, such Option shall not be exercisable:

                           (a)      to the extent such Award or Option exercise
         could cause the Holder to be in violation of the Ownership Limit; or

                           (b)      if, in the discretion of the Administrator,
         such Award or Option exercise could impair the Company's status as a
         REIT.

                  11.12.   Compliance with Laws. The Plan, the granting and
vesting of Awards under the Plan and the issuance and delivery of shares of
Common Stock and the payment of money under the Plan or under Awards granted or
awarded hereunder are subject to compliance with all applicable federal and
state laws, rules and regulations (including but not limited to state and
federal securities law and federal margin requirements) and to such approvals by
any listing, regulatory or governmental authority as may, in the opinion of
counsel for the Company, be necessary or advisable in connection therewith. Any
securities delivered under the Plan shall be subject to such restrictions, and
the person acquiring such securities shall, if requested by the Company, provide
such assurances and representations to the Company as the Company may deem
necessary or desirable to assure compliance with all applicable legal
requirements. To the

                                       34

<PAGE>

extent permitted by applicable law, the Plan and Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such
laws, rules and regulations.

                  11.13.   Titles. Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of the
Plan.

                  11.14.   Governing Law. This Plan and any agreements hereunder
shall be administered, interpreted and enforced under the internal laws of the
State of California without regard to conflicts of laws thereof.

                  11.15.   Conflicts with Company's Articles of Incorporation.
Notwithstanding any other provision of the Plan, no Holder shall acquire or have
any right to acquire any Common Stock, and shall not have other rights under the
Plan, which are prohibited under the Company's Articles of Incorporation, as
amended from time to time.

                                       35

<PAGE>

                  IN WITNESS WHEREOF, the parties below have caused the
foregoing Plan to be approved by their officers duly authorized on the date and
year first set forth above.

                                MAGUIRE PROPERTIES, INC.
                                a Maryland corporation

                                By: /s/ Richard I. Gilchrist
                                    --------------------------------------------
                                    Richard I. Gilchrist
                                    President and Co-Chief Executive Officer

                                MAGUIRE PROPERTIES SERVICES, INC.
                                a Maryland corporation

                                By: /s/ Richard I. Gilchrist
                                    --------------------------------------------
                                    Richard I. Gilchrist
                                    President

                                MAGUIRE PROPERTIES, L.P.
                                a Maryland limited partnership

                                By: Maguire Properties, Inc.
                                    a Maryland corporation
                                    Its General Partner

                                    By: /s/ Richard I. Gilchrist
                                        ----------------------------------------
                                        Richard I. Gilchrist
                                        President and Co-Chief Executive Officer

                                       36

<PAGE>

                  I hereby certify that the foregoing Plan was duly adopted by
the Board of Directors of Maguire Properties, Inc. on June 2,2003.

                  Executed on this____*th day of June, 2003.

                                 By: /s/ Mark T. Lammas
                                     ------------------------------------------
                                     Mark T. Lammas
                                     Secretary

                                * * * * * * * * *

                  I hereby certify that the foregoing Plan was duly adopted by
the stockholders of Maguire Properties, Inc. on June 2,2003.

                  Executed on this ___*th day of June, 2003.

                                 By: /s/ Mark T. Lammas
                                     ------------------------------------------
                                     Mark T. Lammas
                                     Secretary

                                       37

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