Document:

EXHIBIT
10.21

 

STOCK OPTION
INCENTIVE GRANT AGREEMENT

 

James Pekarsky, (the “Optionee”):

 

Monolithic System Technology, Inc., a Delaware corporation (the “Company”),
hereby grants to Optionee, an option (“Option”) to purchase a total of Three
Hundred Thousand (300,000) shares of Common Stock, $0.01 par value per share (“Shares”),
of the Company, at the price set forth herein.

 

DEFINITIONS FOR CERTAIN DEFINED TERMS ARE
AS FOLLOWS:

 

“Agreement” means this Stock Option
Incentive Grant Agreement.

 

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

 

“Code” means the Internal Revenue Code of 1986,
as amended.

 

“Common Stock” means the common stock of the
Company, par value $.01 per share.

 

“Committee” means the Compensation
Committee of the Board of Directors.

 

“Consultant” means any independent
contractor retained to perform services for the Company or a Subsidiary.

 

“Continuous Service” means the absence of any
interruption or termination of service as an Employee, Director or Consultant
by the Company, a Parent, or any Subsidiary. Continuous Service shall not be
considered interrupted during any period of (i) any leave of absence
approved by the Company or (ii) transfers between locations of the Company
or between the Company and any Parent, Subsidiary or successor of the Company.
A leave of absence approved by the Company shall include sick leave, military
leave or any other personal leave approved by an authorized representative of
the Company.

 

“Corporate Transaction” means any of the following stockholder-approved
transactions to which the Company is a party:

 

(a) 
a merger or consolidation in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the state
in which the Company is incorporated;

 

(b) 
the sale, transfer or other disposition of all or substantially all of the
assets of the Company (including the capital stock of each Subsidiary) in
connection with the complete liquidation or dissolution of the Company; or

 

(c) 
any reverse merger in which the Company is the surviving entity but in which
securities possessing 50 percent or more of the total combined voting power of
the Company’s

 

 

outstanding
securities are transferred to a person or persons different from those who held
such securities immediately prior to such merger.

 

“Director” means a director of the
Company.

 

“Employee” means any person, including
officers (whether or not they are directors), employed by the Company, a Parent
or any Subsidiary.

 

“Exchange Act” means Securities Exchange Act
of 1934, as amended.

 

“Fair Market Value” of Common Stock as of any
date is the closing price for the Common Stock as reported on the Nasdaq
National Market (or on any other national securities exchange or other
established market on which the Common Stock is then listed) for that date or,
if no closing price is reported for that date, the closing price on the next
preceding date for which a closing price was reported.

 

“Grant Date” means, with respect to the
Option, March 20, 2006.

 

“Non-Employee Director” means a Director of the
Company who qualifies as a Non-Employee Director as such term is defined in Section 240.16b-3(b)(3) of
the General Rules and Regulations promulgated under the Exchange Act.

 

“Parent” means a parent corporation of
the Company, whether now or hereafter existing, as defined by Section 424(e) of
the Code.

 

“Securities Act” means the Securities Act of
1933, as amended.

 

“Subsidiary” means a subsidiary
corporation of the Company, whether now or hereafter existing, as defined in Section 424(f) of
the Code.

 

“Termination of Service” means (a) in the case of
an Employee, a cessation of the employee-employer relationship between the
Employee and the Company or a Parent or Subsidiary for any reason, including,
but not by way of limitation, a termination by resignation, discharge, death,
disability, or the disaffiliation of a Parent or Subsidiary, but excluding any
such termination where there is a simultaneous reemployment by the Company or a
Parent or Subsidiary; (b) in the case of a Consultant, a cessation of the
service relationship between the Consultant and the Company or a Parent or
Subsidiary for any reason, including, but not by way of limitation, a
termination by resignation, discharge, death, disability, or the disaffiliation
of a Parent or Subsidiary, but excluding any such termination where there is a
simultaneous re-engagement of the Consultant by the Company or a Parent or
Subsidiary; and (c) in the case of a Director, a cessation of the Director’s
service on the Board of Directors for any reason, including, for example, but
not by way of limitation, a termination by resignation, removal, death,
disability, expiration of the term of directorship, but excluding any such
termination where there is a simultaneous reemployment by the Company or a
Parent or Subsidiary.

 

2

 

THE DETAILS OF YOUR OPTION ARE AS
FOLLOWS:

 

1.             Nature Of The Option

 

The Option is intended to be a “Nonstatutory Stock Option” subject to
the provisions of Section 1.83-7 of the Treasury Regulations promulgated
under Section 83 of the Code. Option Price

 

The Option Price is $ 7.97
for each Share.

 

2.             Vesting And Exercise Of Option

 

(a) 
During the term of this Option, it will 
vest and become exercisable during its term in accordance with the
following schedule (except as otherwise provided in this Section 3 or
Section 6(b)):

 

	
  No. of Shares Vesting

  	
   

  	
  Vesting Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  75,000

  	
   

  	
  On
  March 20, 2007

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6,250

  	
   

  	
  At the end
  of each calendar month after March 20, 2007

  	
   

  

 

(b)  In the event of the Optionee’s death,
disability or other termination of employment, the Option shall be exercisable
in the manner and to the extent provided below:

 

(i)  Termination
of Status as Employee, Director or Consultant.   If an Optionee
shall cease to be an Employee, Director or Consultant for any reason other than
permanent and total disability or death, he may, but only within 90 days after
the date of Termination of Service, exercise his Option to the extent that he
was entitled to exercise it at the date of Termination of Service, subject to
the condition that no Option shall be exercised after the expiration of the
Term (as defined in Section 7) of the Option.

 

(ii)  Disability
of the Optionee.   Subject to the provisions of Section 6(b),
if an Optionee shall cease to be an Employee, Director or Consultant due to
disability, and such Optionee was in Continuous Service as an Employee,
Director or Consultant from the Grant Date until the date of Termination of
Service, the Option may be exercised at any time within twelve months following the date of
Termination of Service, but only to the extent of the accrued right to exercise
at the time of Termination of Service, subject to the condition that no option
shall be exercised after the expiration of the Term of the Option.

 

(iii)  Death
of the Optionee.   In the event of the death of the Optionee
during the Term of the Option while the Optionee is an Employee, Non-Employee
Director or Consultant and in Continuous Service as such from the Grant Date
until the date of death, the Option may be exercised at any time within
six months following the date of death by the Optionee’s estate or by a person
who acquired the right to exercise the Option by bequest, inheritance or
otherwise as a result of

 

3

 

the Optionee’s death, but only to the
extent of the accrued right to exercise at the time of death, subject to the
condition that no option shall be exercised after the expiration of the Term of
the Option.

 

(c) 
No fraction of a Share shall be purchasable or deliverable upon exercise, but
in the event any adjustment of the number of Shares covered by the Option shall
cause such number to include a fraction of a Share, such number of Shares shall
be adjusted to the nearest smaller whole number of Shares.

 

(d)  In order to exercise any portion of this
Option which has vested, the Optionee shall notify the Company in writing of
the election to exercise the Option and the number of Shares in respect of
which the Option is being exercised, by executing and delivering the Notice of
Exercise of Stock Option in the form attached hereto as Appendix I. The certificate or
certificates representing Shares as to which this Option has been exercised
shall be registered in the name of the Optionee. Or, the optionee shall notify
the Company through his broker if he chooses to exercises the Option through a
brokerage firm.

 

3.             Non-Transferability Of Option

 

As approved by the Committee, any vested portion of the Option may be
transferred by the Optionee through a gift or domestic relations order in
settlement of marital property rights to the following donees or transferees:

 

(a) 
any “family member,” which includes 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,
sister-in-law, including adoptive relations, and any person sharing the
employee’s household (other than a tenant or employee);

 

(b) 
a trust in which “family members” have more than 50% of the beneficial
interest;

 

(c) 
a foundation in which “family members” or the employee control the management
of assets; and

 

(d) 
any other entity in which the “family members” (or the employee) own more than
50% of the voting interests;

 

provided that (x) there may be
no consideration for any such transfer, (y) this Agreement, and any amendment
hereto, must be approved by the Committee, and must expressly provide for
transferability in a manner consistent with this Section 4, and (z)
subsequent transfers of transferred Options shall be prohibited except those in
accordance with this Section 4. Following transfer, any such Options shall
continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer, provided that the term Optionee shall be deemed
to refer to the transferee. The events of termination hereof shall continue to
be applied with respect to the original 
Optionee, following which the Options shall be exercisable by the
transferee only to the extent, and for the periods specified in this Agreement.

 

4

 

Otherwise, this Option may only be transferred by will or by the
law of descent and distribution. The terms of this Option shall be binding upon
the executors, administrators, heirs and successors of the Optionee.

 

4.             Method Of Payment

 

Payment of the exercise price shall be by any of the following, or a
combination thereof, at the election of the Optionee:

 

(a) 
cash;

 

(b) 
check, cashier’s check, certified check or wire transfer;

 

(c) 
in the event there exists a public market for the Company’s Common Stock on the
date of exercise, by delivery of a sell order to a broker for the shares being
purchased and an agreement to pay (or have the broker remit payment for) the
purchase price of the shares being purchased on or before the settlement date
for the sale of such shares to the broker; or

 

(d) 
in the event there exists a public market for the Company’s Common Stock on the
date of exercise, by surrender of shares of the Company’s Common Stock. In this
case payment shall be made as follows:

 

(i)  The
Optionee shall deliver to the Secretary of the Company a written notice which
shall set forth the portion of the purchase price the Optionee wishes to pay
with Common Stock, and the number of shares of such Common Stock the Optionee
intends to surrender pursuant to the exercise of this Option, which shall be
determined by dividing the aforementioned portion of the purchase price by the
closing price per share of the Common Stock of the Company, as reported on the
Nasdaq National Market (or on any other national securities exchange or other
established market on which the Common Stock is then listed), on the last
business day immediately preceding the date of exercise of the Option, as
determined by the Committee;

 

(ii) 
Fractional shares shall be disregarded and the Optionee shall pay in cash an
amount equal to such fraction multiplied by the price determined under
subparagraph i above;

 

(iii) 
The written notice shall be accompanied by a duly endorsed blank stock power
with respect to the number of Shares set forth in the notice, and the
certificate(s) representing said Shares shall be delivered to the Company at
its principal offices within three working days from the date of the notice of
exercise;

 

(iv)  The
Optionee hereby authorizes and directs the Secretary of the Company to transfer
so many of the Shares represented by such certificate(s) as are necessary to
pay the purchase price in accordance with the provisions herein; and

 

(v) 
Notwithstanding any other provision herein, the Optionee shall only be
permitted to pay the purchase price with Shares of the Company’s Common

 

5

 

Stock owned by him as of the exercise date
in the manner and within the time periods allowed under 17 CFR Section 240.16b-3
promulgated under the Exchange Act, as such regulation is presently
constituted, as it is amended from time to time, and as it is interpreted now
or hereafter by the Securities and Exchange Commission.

 

The Optionee may elect to pay the exercise price
by authorizing a third party to sell Shares subject to the Option and remit to
the Company a sufficient portion of the sale proceeds to pay the entire
exercise price and any tax withholding resulting from such exercise.

 

5.             Adjustments Upon Changes In
Capitalization

 

(a) 
Recapitalization.   Subject to any required action by the
stockholders of the Company, the number of Shares covered by each outstanding
Option and the per share exercise price of each such Option, shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split,
combination, reclassification, the payment of a stock dividend on the Common
Stock or any other increase or decrease in the number of such shares of Common
Stock effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not
be deemed to have been effected without receipt of consideration. Such
adjustment shall be made by the Board of Directors, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided
herein, no issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an Option.

 

(b) 
Corporate Transaction.   In the event of a proposed Corporate
Transaction, the Board of Directors shall notify the Optionee at least 10
calendar days prior to such proposed Corporate Transaction. To the extent it
has not been previously exercised, the Option will terminate immediately prior
to the consummation of such proposed Corporate Transaction, unless the Option
is assumed or an equivalent option is substituted by the successor corporation
or a parent or subsidiary of such successor corporation. For the purposes of
this subsection, the Option shall be considered assumed if, following the
Corporate Transaction, the Option confers the right to purchase, for each Share
subject to the Option immediately prior to the Corporate Transaction, the
consideration (whether stock, cash, or other securities or property) received
in the Corporate Transaction by holders of Common Stock for each Share subject
to the Option held on the effective date of the Corporate 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 Corporate Transaction was not
solely common stock of the successor corporation or its parent or subsidiary,
the Board of Directors may, with the consent of the successor corporation,
provide for the consideration to be received upon the exercise of the Option
for each Share subject to the Option to be solely common stock of the successor
corporation or its parent or subsidiary equal in fair market value to the per
share consideration received by holders of Common Stock in the Corporate
Transaction.

 

6

 

In the event a Corporate Transaction is subject to the
Change-in-Control Agreement, by and between Optionee and the Company, dated as
of March 20, 2006 (the “Change-in-Control Agreement”), in which the
successor corporation or a parent or subsidiary of such successor corporation
fails to assume the Option or substitute an equivalent option, then the Option
shall vest immediately prior to the consummation of such proposed Corporate
Transaction in accordance with and to the extent provided Sections 1(e)(6) and
3(b) of the Change-in-Control Agreement.

 

6.             Term Of Option

 

This Option may not be exercised more than ten years from the date of grant of this Option (the “Term”), as
set forth below, and may be exercised during such term only in accordance
with the terms of this Option.

 

7.             Not Employment Contract

 

Nothing in this Agreement shall confer upon the Optionee any right to
continue in the employ or other service with the Company or any Parent or
Subsidiary or shall interfere with or restrict in any way the rights of the
Company (or any Parent or Subsidiary), which are hereby expressly reserved, to
discharge the Optionee at any time for any reason whatsoever, with or without
cause, subject to the provisions of applicable law. This is not an employment
contract.

 

8.             Income Tax Withholding

 

(a) 
Whenever Shares are issued or to be issued pursuant to the Option, the Company
shall have the right to require the recipient to remit to the Company an amount
sufficient to satisfy federal, state, local or other withholding tax
requirements if, when, and to the extent required by law (whether so required
to secure for the Company an otherwise available tax deduction or otherwise)
prior to the delivery of any certificate or certificates for such shares. The
obligations of the Company under this Agreement shall be conditional on
satisfaction of all such withholding obligations and the Company shall, to the
extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the Optionee. However, in such cases the
Optionee may elect, subject to the approval of the Board of Directors, to
satisfy an applicable withholding requirement, in whole or in part, by having
the Company withhold shares to satisfy their tax obligations. The Optionee may only
elect to have shares withheld having a Fair Market Value on the date the tax is
to be determined equal to the minimum statutory total tax which could be
imposed on the transaction. All elections shall be irrevocable, made in writing,
signed by the Optionee, and shall be subject to any restrictions or limitations
that the Board of Directors deems appropriate.

 

In the event
of any determination that the Company has failed to withhold a sum sufficient
to pay all withholding taxes due in connection with the exercise of this
Option, the Optionee agrees to pay the Company the amount of such deficiency in
cash within five days after receiving a written demand from the Company to do
so, whether or not Optionee is an employee of the Company at that time.

 

(b) 
At such time as the Optionee is required to pay to the Company an amount with
respect to tax withholding obligations as set forth in Section 9(a), the
Optionee may elect prior to the date the amount of such withholding tax is
determined to make such payment, or

 

7

 

such increased
payment as the Optionee elects to make up to the maximum federal, state and
local marginal tax rates (including any related FICA obligation) applicable to
the Optionee and the particular transaction in accordance with the provisions
of Section 9(a).

 

(c) 
Any adverse consequences incurred by an Optionee with respect to the use of
shares of Common Stock to pay any part of the Option Price or of any tax
in connection with the exercise of an Option shall be the sole responsibility
of the Optionee.

 

9.             Conditions Upon Issuance of
Shares.

 

Shares shall not be issued with respect to the Option unless the
exercise of the Option and the issuance and delivery of such Shares pursuant
thereto shall comply with all relevant provisions of law, including, without
limitation, the Securities Act, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
or public trading market upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with
respect to such compliance. As a condition to the exercise of the Option, the
Company may require the Optionee to represent and warrant at the time of
any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

 

10.          Notices and Other
Communications.

 

Any notice, demand, request or other communication hereunder to any
party shall be deemed to be sufficient if contained in a written instrument
delivered in person or duly sent by first class registered, certified or
overnight mail, postage prepaid, or telecopied with a confirmation copy by
regular, certified or overnight mail, addressed or telecopied, as the case may be,
(i) if to the Optionee, at his residence address last filed with the
Company and (ii) if to the Company, at its principal place of business,
addressed to the attention of its Chief Executive Officer, or to such other
address or telecopier number or electronic mail address, as the case may be,
as the addressee may have designated by notice to the addressor. All such
notices, requests, demands and other communications shall be deemed to have
been received: (i) in the case of personal delivery, on the date of such
delivery; (ii) in the case of mailing, when received by the addressee; (iii) in
the case of facsimile transmission, when confirmed by facsimile machine report;
and (iv) in the case of electronic mail, when directed to an electronic
mail address at which the receiving party has consented to receive notice, provided,
that such consent is deemed revoked if the sender is unable to deliver by
electronic transmission two consecutive notices and such inability becomes
known to the secretary or assistant secretary of the Company or to the transfer
agent, or other person responsible for giving notice.

 

8

 

Dated as of
the 4th day of April 2006

 

 

	
   

  	
  MONOLITHIC SYSTEM TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  \s\ Chet Silvestri

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its: 

  	
  CEO

  	
   

  
					

 

 

The Optionee acknowledges receipt of copies of the Agreement and represents that he is familiar with
the terms and provisions thereof, and hereby accepts this Option subject to all
of the terms and provisions of the Agreement. The Optionee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Board of Directors upon any questions arising under the Agreement.

 

	
   

  	
  \s\ Jim Pekarsky

  	
   

  
	
   

  	
  Optionee

  

 

Date:  April 4, 2006

 

 

CONSENT OF
SPOUSE/DOMESTIC PARTNER

 

I,                                                 ,
spouse/domestic partner of the Optionee who executed the foregoing Agreement,
hereby agree that my spouse’s/domestic partner’s interest in the shares of
Common Stock subject to said Agreement shall be irrevocably bound by the
Agreement’s terms. I further agree that my community property interest in such
shares, if any, shall similarly be bound by said Agreement and that such
consent is binding upon my executors, administrators, heirs and assigns. I
agree to execute and deliver such documents as may be necessary to carry
out the intent of said Agreement and this consent.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Spouse/Domestic Partner

  

 

9

 

APPENDIX I

 

MONOLITHIC
SYSTEM TECHNOLOGY, INC.

 

NOTICE
OF EXERCISE OF STOCK OPTION

 

I                                                                                        
(print legibly) hereby elect to exercise the following stock options(s) granted
to me by MONOLITHIC SYSTEM TECHNOLOGY, INC. (the “Company”). All
shares being purchased are fully vested and exercisable pursuant to Section 3
of the listed Option Agreement.

 

1.                               
Shares at $                  
per share (Grant date):                         
)

2.                               
Shares at $                  
per share (Grant date):                         
)

3.                               
Shares at $                  
per share (Grant date):                         
)

4.                               
Shares at $                   per
share (Grant date):                         
)

 

Cash exercise in the amount of $

Shares should be issued to me as follows:

Name: 

 

If you choose to include your spouse, you must designate below how you
wish your shares to be registered by checking the appropriate box. If we
receive no designation, the shares will be designated as Joint Tenants.

 

	
  o

  	
  Joint Tenants

  	
  o

  	
  Community Property

  
	
  o

  	
  Tenants in Common

  	
  o

  	
  Tenancy by Entirety

  

 

Verification by                                                                                               Stock
Administration

 

Certificate to be delivered to (complete item
1 or 2 below)

1.     Employee                                          Home
Address: 

 

2.     (Insert Name of Second Broker)

Acct #:

Contact Name & Number:

 

	
  Signature:

  	
   

  	
   Date:

  	
   

  	
   

  
	
  Social
  Security No.:

  	
   

  	
   

  
	
  [For Company Use Only]

  	
   

  
							

 

As of the date set
forth above, the above named person has the vested right to exercise the number
of shares set forth above.

 

	
  Date: 

  	
   

  	
   

  	
   

  	
   

  

 

Amount due Company: $

 

Monolithic System Technology, Inc.
Stock Administration

755 N. Mathilda Avenue

Sunnyvale, California 94085

(408) 731-1800Exhibit 10.1

New Plan Excel Realty Trust, Inc.

2006 Long-Term Out-Performance Compensation Plan

 

New Plan Excel
Realty Trust, Inc.

2006 Long-Term Out-Performance Compensation Plan

ARTICLE 1

GENERAL

1.1                                 Background; Purpose. New Plan Excel Realty Trust, Inc. (the “Company”)
maintains the New Plan Excel Realty Trust, Inc. 2003 Stock Incentive Plan
(as amended, modified or supplemented from time to time, the “SIP”). Among the
forms of awards contemplated by the SIP are grants of Restricted Stock and
Unrestricted Stock. This 2006 Long-Term Out-Performance Compensation Plan (this
“Plan”)
is adopted in furtherance of the authority to make such grants, and it provides
for Awards of Restricted Stock and Unrestricted Stock to certain senior
executives of the Company, based on the Company’s total stockholder return over
specified periods of time, either on a stand-alone basis or in comparison to
that of a specified peer group. This Plan is intended to enhance the Company’s
ability to retain senior executives and to motivate such senior executives to
serve the Company and expend maximum effort to improve the business results and
earnings of the Company. The Awards shall be subject to the terms and
conditions set forth in this Plan and the right of a Participant to receive an
Award under this Plan shall be evidenced by a Notification of Plan Award
substantially in the form of Exhibit A
attached hereto.

1.2                                 Administration. The Plan and the Awards shall be administered
by the Executive Compensation and Stock Option Committee (the “Committee”) of the Board of Directors of the Company (the “Board”) in accordance with Section 3 of the SIP.

1.3                                 Definitions. This Section 1.3 sets forth certain
definitions applicable under this Plan. Capitalized terms used in this Plan
without definitions in the text or in this Section 1.3 shall have the
meaning given to those terms in the SIP.

“Annual New Plan Total Return” means the average annual total return on the
Stock over the applicable measurement period, taking into account regular and
special dividends paid on the Stock as well as appreciation in the price of the
Stock (based on the Fair Market Value of the Stock as of each measurement
date).

“Annual Peer Group Total Return” means, with respect to the companies listed
on Exhibit B as attached to this
Plan, the average of the average annual total return on the common stock of
each such company (hereinafter, “Peer Stock”)
over the applicable measurement period, taking into account regular and special
dividends paid on the Peer Stock as well as appreciation in the price of the
Peer Stock (based on the Fair Market Value of the Peer Stock as of each
measurement date).

“Award” means a Participant’s
receipt of an award of Restricted Stock and Unrestricted Stock in accordance
with the terms of this Agreement, and prior to receipt of the award, the
Participant’s right to receive such an award.

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

“Change in
Control” means the occurrence of one of the events described in
paragraph (i), (ii), (iii) or (iv) as follows:

(i) individuals who, on the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at
least a majority of the Board, provided that any person becoming a director
subsequent to the Effective Date whose election or nomination for election was
approved by a vote of a majority of the Incumbent Directors then on the Board
(either by a specific vote or by

 1
 

 

approval of the proxy statement of the Company in which such person is named as
a nominee for director, without objection to such nomination) shall be an
Incumbent Director; provided, however, that no individual initially elected or
nominated as a director of the Company as a result of an actual or threatened
election contest with respect to directors or as a result of any other actual
or threatened solicitation of proxies by or on behalf of any person other than
the Board shall be an Incumbent Director;

(ii) any “person” (as such term is defined in Section 3(a)(9) of
the Securities Exchange Act of 1934 (the “Exchange Act”)
and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is
or becomes, after the Effective Date, a “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing
30% or more of the combined voting power of the Company’s then outstanding
securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that an
event described in this paragraph (ii) shall not be deemed to be a Change
in Control if any of following becomes such a beneficial owner: (A) the
Company or any entity that is majority-owned by the Company (provided,
that this exclusion applies solely to the ownership levels of the Company or
the majority-owned entity), (B) any tax-qualified, broad-based
employee benefit plan sponsored or maintained by the Company or any majority-owned
entity, (C) any underwriter temporarily holding securities pursuant to an
offering of such securities, or (D) the Participant or any group of
persons including the Participant (or any entity controlled by the Participant
or any group of persons including Executive);

(iii) the consummation of a merger, consolidation, share exchange
or similar form of transaction involving the Company or any of its
subsidiaries, or the sale of all or substantially all of the Company’s assets
(a “Business Transaction”), unless
immediately following such Business Transaction (A) more than 50% of the
total voting power of the entity resulting from such Business Transaction or
the entity acquiring the Company’s assets in such Business Transaction (the “Surviving Corporation”) is beneficially owned, directly or
indirectly, by the Company’s shareholders immediately prior to any such
Business Transaction, and (B) no person (other than the persons set forth
in clauses (A), (B), or (C) of paragraph (ii) above or any tax-qualified,
broad-based employee benefit plan of the Surviving Corporation or its
Affiliates) beneficially owns, directly or indirectly, 30% or more of the total
voting power of the Surviving Corporation; or

(iv) Board and, to the extent necessary, shareholder approval of a
liquidation or dissolution of the Company, unless the voting common equity
interests of an ongoing entity (other than a liquidating trust) are
beneficially owned, directly or indirectly, by the Company’s shareholders in
substantially the same proportions as such shareholders owned the Company’s
outstanding voting common equity interests immediately prior to such liquidation
and such ongoing entity assumes all existing obligations of the Company to the
Participant under all agreements.

“Disability” means the Participant is incapacitated due
to physical or mental illness, the Participant is substantially unable to
perform his or her duties for an entire period of one hundred twenty (120)
days, and, within thirty (30) days after written notice of termination is given
after such one hundred twenty (120) day period, the Participant is not able to
return to the substantial performance of his or her duties on a full-time
basis.

“Effective
Date” means February 27, 2006.

“Fair Market
Value” means,
with respect to a share of Stock or a share of Peer Stock on any measurement
date, the average of the closing price of a share of Stock or a share of Peer
Stock, as applicable, on the New York Stock Exchange for each of the twenty
consecutive business days immediately preceding the applicable measurement
date.

 2
 

 

“Initial
Performance Period” means the period commencing on January 1,
2006 and ending on December 31, 2009.

“Out-Performance
Value” means (i) with respect to the Initial Performance
Period, $7 million at the Minimum Performance Threshold, and increased,
but not above $12 million in total, by an amount equal to (A) $416,666
for each 25 basis points that the Annual New Plan Total Return exceeds 10% or (B) $250,000
for each 25 basis points over 110% that the Annual New Plan Total Return
exceeds the Annual Peer Group Total Return, and (ii) with respect to the
Supplemental Performance Period, a dollar value equal to (X) minus
(Y), where (X) is the Out-Performance Value that would be produced from
the application of the criteria under (i) for the Supplemental Performance
Period, and (Y) is the Out-Performance Value, if any, actually produced for
the Initial Performance Period. In no event shall the total Out-Performance
Value for the Initial Performance Period and the Supplemental Performance
Period exceed $12 million in the aggregate.

“Participant” means each Service
Provider set forth in Exhibit C.

“Severance Triggering Event” means, with respect to
a Participant, the termination of employment of such Participant where such
termination constitutes or would have constituted either a termination by the
Company without “Cause” or a termination by the Participant for “Good Reason”
as determined by such Participant’s employment agreement with the Company in
effect as of the Effective Date of this Plan, even if such employment agreement
is no longer in effect as of the date of such Participant’s termination. Notwithstanding
the preceding, for purposes of this Plan, a Change in Control shall not
constitute a Severance Triggering Event and shall be governed by the provisions
of this Plan dealing with Change of Control.

“Share Pool” means (i) with
respect to the Initial Performance Period, the number of shares produced by
applying the provisions of Section 2.1.1 and the limitation in Section 2.1.3,
and (ii) with respect to the Supplemental Performance Period, the number
of shares produced by applying the provisions of Section 2.1.2 and the
limitation in Section 2.1.3.

“Supplemental
Performance Period” means the period commencing January 1, 2006
and ending December 31, 2010.

“Valuation
Date” means, with respect to a Participant, the earlier of (i) the
date of consummation of a Change in Control and (ii) the date the
Participant’s Service terminates on account of death, Disability or a Severance
Triggering Event.

“Vesting Date” means the date on which
a Participant’s Award vests in accordance with Section 3.1.

ARTICLE 2

OUT-PERFORMANCE AWARDS

2.1                                 Establishment
of Share Pool.

2.1.1                        Initial Performance Period. If at the end of the Initial Performance Period the
Annual New Plan Total Return is at least 10% or the Annual New Plan Total
Return is at least 110% of the Annual Peer Group Total Return (in each case, a “Minimum
Performance Threshold”), a Share Pool shall be established for the Initial Performance
Period consisting of the total number of shares of Stock determined by dividing
the Out-Performance Value by the Fair Market Value of a share of Stock on the
end date of the Initial Performance Period. If both of the Minimum Performance
Thresholds are achieved, establishment of the Share Pool for the Initial
Performance Period shall be based on the achievement of the criteria that
produces the larger Share Pool for the Initial Performance Period.

 3
 

 

2.1.2                        Supplemental Performance Period. If at the end of the Initial Performance Period neither
Minimum Performance Threshold is achieved or the Out-Performance Value achieved
for the Initial Performance Period is less than $12 million, then performance
shall again be measured at the end of the Supplemental Performance Period. If
for the Supplemental Performance Period a Minimum Performance Threshold is
achieved, a Share Pool shall be established for the Supplemental Performance
Period consisting of the total number of shares of Stock determined by dividing
the Out-Performance Value for the Supplemental Performance Period by the Fair
Market Value of a share of Stock on the end date of the Supplemental
Performance Period. If applicable, establishment of the Share Pool for the
Supplemental Performance Period shall be based on achievement of the criteria
that produces the larger Share Pool for the Supplemental Performance Period.

2.1.3                        Reduction of Share Pool. The number of shares of Stock allocated to the Share Pool
for the Initial Performance Period under Section 2.1.1 or for the
Supplemental Performance Period under Section 2.1.2 will be reduced to the
extent that the number of such shares exceeds the number of shares of Stock available for issuance under the SIP.

2.2                              Awards.

2.2.1                       Initial Performance Period Awards. If a Share Pool is established as of the end of the
Initial Performance Period in accordance with Section 2.1.1, then each
Participant who is a Service Provider on the Grant Date shall receive an Award
of Restricted Stock equal to twenty percent (20%) of the Share Pool for the
Initial Performance Period; provided, however, that the Award shall not give
effect to any fractional share of Stock resulting from application of the 20%
Award percentage to the Share Pool. Any Award of Restricted Stock with respect
to the Initial Performance Period shall have a Grant Date of December 31,
2009, and upon receipt of the Award of Restricted Stock but prior to the
vesting of such Award, as provided in Section 3.1, the Participant shall
be entitled to vote the shares of Restricted Stock and to receive payment of
any dividends paid on the shares of Restricted Stock and shall otherwise have
all rights of a shareholder of the Stock.

2.2.2                        Supplemental Performance Period Award. If a Share Pool is established as of the end of the
Supplemental Performance Period in accordance with Section 2.1.2, then
each Participant who is a Service Provider on the Grant Date shall receive an
Award of Unrestricted Stock equal to twenty percent (20%) of the Share Pool;
provided, however, that the Award shall not give effect to any fractional share
of Stock resulting from application of the 20% Award percentage to the Share
Pool. Any Award of Unrestricted Stock with respect to the Supplemental
Performance Period shall have a Grant Date of December 31, 2010 and shall
vest immediately upon receipt thereof. An Award of Unrestricted Stock pursuant
to this Section 2.2.2 shall be in addition to, but not duplicative of, the
Award of Restricted Stock, if any, received for the Initial Performance Period by the Participant.

2.2.3                        No New Participants; Cancellation of
Rights; No Reallocation. Following the Effective Date, no new Participants shall be eligible to
participate in the Plan and the allocations to the Participants as set forth
herein may not be increased or decreased. In addition, to the extent that a
Participant’s Award is cancelled in accordance with Article 3, such
Participant’s Award shall be eliminated and shall not become available for
reallocation to other Participants.

ARTICLE 3

VESTING, EMPLOYMENT TERMINATION AND CHANGE IN CONTROL

3.1                                 Vesting. An Award of Restricted Stock granted pursuant to Section 2.2.1
shall become fully vested and non-forfeitable on December 31, 2010 so long
as the Participant is a Service Provider on that date, without regard to any
performance over the period commencing January 1, 2010 and ending 

 4
 

 

December 31, 2010. An Award of Unrestricted Stock granted pursuant to Section 2.2.2
shall become fully vested and non-forfeitable on the Grant Date. Except as
provided in Sections 3.2 or 3.3, if a Participant’s Service terminates prior to
the Vesting Date, any Award of Restricted Stock shall immediately be cancelled
and forfeited.

3.2                                 Termination
of Employment. If a Participant’s Service terminates prior to December 31, 2010
on account of death, Disability or, after December 31, 2006 but prior to December 31,
2010, a Participant’s Service terminates on account of a Severance Triggering
Event, then (i) any Award of Restricted Stock previously received pursuant
to Section 2.2.1 shall immediately become fully vested and non-forfeitable
as of such Valuation Date and (ii) the Participant shall receive an
additional Award of Unrestricted Stock determined pursuant to Sections 2.1.2
and 2.2.2 as if the Out-Performance Value and the Share Pool were calculated on
the Valuation Date as opposed to the end of the Supplemental Performance
Period, after taking into account any Restricted Stock received under clause (i) of
this Section 3.2.

3.3                                 Change
in Control. If a Change in
Control is consummated prior to December 31, 2010, then (i) any Award
of Restricted Stock previously received pursuant to Section 2.2.1 shall
immediately become fully vested and non-forfeitable as of such Valuation Date
and (ii) the Participant shall receive an additional Award of Unrestricted
Stock determined pursuant to Sections 2.1.2 and 2.2.2 as if the Out-Performance
Value and the Share Pool were calculated on the Valuation Date as opposed to
the end of the Supplemental Performance Period, after taking into account any
Restricted Stock received under clause (i) of this Section 3.3.

ARTICLE 4

ADDITIONAL GENERAL PROVISIONS

4.1                                 Stockholder Rights. A Participant shall have none of the rights of a stockholder (for example, the right
to receive cash or dividend payments or the right to vote) until the shares of
Restricted Stock or Unrestricted Stock, as applicable, are received pursuant to
the terms of Article 2. Any forfeiture of previously granted
Restricted Stock under Section 3.1 shall void all stockholder rights
relating to the Restricted Stock as of the date of forfeiture.

4.2                                 Duration of Plan and Amendments.

4.2.1                        Term and Termination. The Plan shall
terminate automatically upon January 1, 2011.

4.2.2                        Amendment of the Plan. The Committee may, at
any time and from time to time, amend the Plan. No amendment of the Plan shall,
without the consent of the Participant, impair rights or obligations of
Participants under this Plan or under any Award theretofore awarded pursuant to
the Plan.

4.3                                 General Provisions.

4.3.1                        Disclaimer of Rights. No provision in the
Plan shall be construed to confer upon any individual the right to remain in
the employ or service of the Company or any Affiliate, or to interfere in any
way with any contractual or other right or authority of the Company either to
increase or decrease the compensation or other payments to any individual at
any time, or to terminate any employment or other relationship between any individual and
the Company. The obligation of the Company to pay any benefits pursuant to this
Plan shall be interpreted as a contractual obligation to pay only those amounts
described herein, in the manner and under the conditions prescribed herein. The
Plan shall in no way be interpreted to require the Company to transfer any
amounts to a third party trustee or otherwise hold any amounts in trust or
escrow for payment to any Participant under the terms of the Plan.

 5
 

 

4.3.2                        Committee Governance. The Committee shall have the right to make
equitable adjustments as it deems necessary or appropriate with respect to the
Minimum Performance Thresholds used to determine a Participant’s entitlement to
an Award pursuant to the Plan to take into account any transaction by the
Company or companies listed on Exhibit B,
such as a merger, consolidation, acquisition, reorganization, reclassification,
stock split, stock dividend, distribution (other than regular dividends) or other
similar transactions, including a going private transaction. The reasonable
determinations of the Committee shall be final, binding and conclusive.

4.3.3                        Deferral of Awards. Subject to the terms of the New Plan Excel
Realty Trust, Inc. Deferred Compensation Plan (as amended, or any
successor thereto), a Participant may elect to defer all or a portion of any
Award under this Plan in accordance with the terms of such deferred
compensation plan.

4.3.4                        Restrictive Legends. The stock certificates evidencing an Award
of Restricted Stock or Unrestricted Stock shall contain any restrictive or
other legends that the Committee determines to be necessary and appropriate.

4.3.5                        Nonexclusivity of the Plan. The adoption of the
Plan shall not be construed as creating any limitations upon the right and
authority of the Board or the Committee to adopt such other incentive
compensation arrangements (which arrangements may be applicable either
generally to a class or classes of individuals or specifically to a particular
individual or particular individuals) as the Board or Compensation Committee in
its discretion determines desirable.

4.3.6                        Withholding Taxes. The Company shall have the right to deduct
from payments of any kind otherwise due to a Participant any Federal, state, or
local taxes of any kind required by law to be withheld with respect to an Award.
At the time an Award vests, the Participant shall pay to the Company any amount
that the Company may reasonably determine to be necessary to satisfy such
withholding obligation, or, in the sole discretion of the Committee, may
request that Stock be withheld in an amount sufficient to cover the minimum
withholding obligation based on the then fair market value (as defined under
the SIP) of such Stock. The Company may withhold an Award (or require its
transfer agent to withhold issuance of the stock certificate) until taxes have
been satisfied.

4.3.7                        Incorporation of SIP. The provisions of the SIP are hereby
incorporated by reference as if set forth in this Plan.

4.3.8                        Captions. The use of captions in this Plan is for the
convenience of reference only and shall not affect the meaning of any provision
of the Plan.

4.3.9                        Number And Gender. With respect to words
used in this Plan, the singular form shall include the plural form, the
masculine gender shall include the feminine gender, etc., as the context
requires.

4.3.10                  Severability. If any provision of the Plan shall be determined
to be illegal or unenforceable by any court of law in any jurisdiction, the
remaining provisions hereof and thereof shall be severable and enforceable in
accordance with their terms, and all provisions shall remain enforceable in any
other jurisdiction.

4.3.11                  Governing Law. The
validity and construction of this Plan and the instruments evidencing the Award
hereunder shall be governed by the laws of the State of Maryland, other than
any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of this Plan and the instruments
evidencing the Awards granted hereunder to the substantive laws of any other
jurisdiction.

 6
 

 

ARTICLE 5

EXECUTION

To reflect the adoption of
the Plan as of the Effective Date, the Company has caused its authorized
officer to execute the Plan.

	
  

  	
  NEW PLAN EXCEL REALTY TRUST, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Glenn J.
  Rufrano

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

 7

 

 

Exhibit A

Notification of Plan Award

[LETTERHEAD OF NEW PLAN EXCEL
REALTY TRUST, INC.]

                    ,
2006

Dear
[     ]:

In consideration of your dedicated service to New
Plan Excel Realty Trust, Inc. (the “Company”),
we are pleased to announce that you have been granted an Award under the
Company’s 2006 Long-Term Out-Performance Compensation Plan (“Plan”) which consists of the right
to receive an award of Restricted Stock and Unrestricted Stock (each an “Award”). The Plan permits you to
receive an award of restricted and/or unrestricted common stock of the Company
based upon the achievement over specified periods of time of certain minimum
performance thresholds related to total stockholder return, either on a
stand-alone basis or in comparison to a specified peer group. The Plan
document, a copy of which is attached to this letter, sets forth your rights
with respect to the Award. Your Award percentage under the Plan is 20%.

Please acknowledge the receipt of this letter by
signing in the space provided below and return the signed letter to the
attention of Steven Siegel.

	
  NEW PLAN EXCEL REALTY TRUST, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  

 

 A-1

 

 

Exhibit B

Peer Group Companies

Developers Diversified Realty Corporation

Federal Realty Investment Trust

Kimco Realty Corporation

Pan Pacific Retail Properties Inc.

Regency Centers Corporation

Weingarten Realty Investors

 

 B-1

 

 

Exhibit C

Participants

Dean R. Bernstein

Leonard I. Brumberg

Michael A. Carroll

John B. Roche

Steven F. Siegel

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