Document:

<PAGE>
                                                                    Exhibit 10.3

                                     FORM OF
                 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 ____________, 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.
<PAGE>
            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 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

                                       2
<PAGE>
      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 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

                                       3
<PAGE>
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.

            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 3401(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.

                                       4
<PAGE>
            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.

            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.

                                       5
<PAGE>
            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.

            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

                                       6
<PAGE>
Common Stock, (k) operating profit, (l) 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 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.

                                       7
<PAGE>
            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 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

                                       8
<PAGE>
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 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

                                       9
<PAGE>
relationship shall constitute a Termination of Employment if, and to the extent
that, such leave of 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

                                       10
<PAGE>
Partnership or the Services Company (or any Subsidiary) pursuant to Section 7.4
or 7.5 hereof, 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

                                       11
<PAGE>
      have been achieved for such fiscal year or other designated fiscal period
      or period of 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 time 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(e) 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(e) 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
      time 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 in 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 in
            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)(1) 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 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.

      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 Employees or Consultants of Subsidiaries. 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 this __th day of ___________,
2003.

                             MAGUIRE PROPERTIES, INC.
                             a Maryland corporation

                             By:
                                ------------------------------------------------
                             Name:
                             Title:

                             MAGUIRE PROPERTIES SERVICES, INC.
                             a Maryland corporation

                             By:
                                  ----------------------------------------------
                             Name:
                             Title:

                             MAGUIRE PROPERTIES, L.P.
                             a Maryland limited partnership

                             By:
                                  ----------------------------------------------
                             Name:
                             Title:

                                       36
<PAGE>
      I hereby certify that the foregoing Plan was duly adopted by the Board of
Directors of Maguire Properties, Inc. on _____________, 2003.

               Executed on this __th day of ___________, 2003.

                             By:
                                 -----------------------------------------------
                             Name:
                             Title:

                                * * * * * * * * *

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

               Executed on this __th day of __________, 2003.

                             By:
                                 -----------------------------------------------
                             Name:
                             Title:

                                       37<PAGE>

                                                                   Exhibit 10.40

                                     FORM OF
                               SERVICES AGREEMENT

            This Services Agreement (this "Agreement") is made and entered into
as of ______________, 2003, by and between Maguire Properties, L.P., a Maryland
limited partnership (the "Company") and _____________ ("Option/Excluded
Entity")(1).

                                   RECITALS

            WHEREAS, Option/Excluded Entity will require the services of the
Company to perform certain administrative or operational functions for
Option/Excluded Entity (collectively, the "Services").

                             TERMS AND CONDITIONS

            NOW, THEREFORE, the Parties hereby agree as follows:

            1.    DEFINITIONS.  The following terms, when used in this
Agreement, shall each have the meaning set forth in this Section 1:

                  "Appendix A" shall mean Appendix A attached to this Agreement,
      as amended from time to time, detailing the Services to be provided by the
      Company to Option/Excluded Entity.

                  "Party" or "Parties" shall mean the Company and/or
      Option/Excluded Entity, as the context requires.

            2. EFFECTIVENESS OF AGREEMENT. This Agreement shall be effective as
of the date of the closing of the initial public offering of shares of the
common stock of Maguire Properties, Inc. (the "Effective Date"), and shall
continue until terminated in writing in accordance with the terms hereof. In the
event that the Effective Date does not occur, this Agreement will have no force
or effect.

            3. SERVICES. The Company agrees to provide to Option/Excluded Entity
the Services as described in Appendix A, and/or such other services as agreed
upon by the Parties pursuant to this Agreement. Any such Services shall be
provided by the Company in exchange for remuneration equal to the fair market
value of such Services, as agreed upon by the Parties.

            4. PAYMENTS. On or about the first day of each month, the Company
shall notify (each, a "Monthly Notice") Option/Excluded Entity of the total
amount due from Option/Excluded Entity with respect to the Services for the then
prior month, unless otherwise agreed upon by the Parties. Such Monthly Notice
shall include a list of each Service and all charges for each Service for the
time period covered by the Monthly Notice. Payment shall be made to the Company
by Option/Excluded Entity within 10 days after submission of such Monthly
Notice; provided, however, if Option/Excluded Entity disagrees with any charge
or claims it does not owe payment for any charge or claim listed on the Monthly
Notice, it may withhold such payment if it serves the Company with written
notice of such disagreement within 5 days after receipt of such Monthly Notice.
In any case, Option/Excluded Entity

----------

(1) The option and excluded properties for which this Agreement will be in
effect are (i) 17th & Grand Garage, (ii) 740 South Olive, (iii) Playa
Vista-Water's Edge, and (iv) Solana - the Solana Marriott Hotel

                                       1
<PAGE>
must pay the undisputed portion of the charges within 10 days after receipt of
the Monthly Notice to which the charges relate. Any disagreement over any charge
shall be resolved by the Parties within 10 days after the original due date for
such payment hereunder, or, if no resolution can be reached, submitted to
binding arbitration in accordance with Section 10.

            5.    TERMINATION OF AGREEMENT.

                  (a) Termination of Agreement. Any Party may terminate this
      Agreement, with or without cause, upon 30 days written notice to the other
      Party.

                  (b) Date of Termination. Within 30 days (or such other period
      as may be reasonable under the circumstances) after the effective date of
      termination of this Agreement, the Company shall submit to Option/Excluded
      Entity a written statement that contains all outstanding charges due under
      this Agreement to the Company from Option/Excluded Entity.

                  (c) Continuation of Payments. To the extent any amounts due
      under Section 4 are outstanding after the date of termination of this
      Agreement, Option/Excluded Entity shall continue to make payments to the
      Company in accordance with such Section.

            6.    AMENDMENTS.  The Parties may at any time by written
agreement amend this Agreement, including, without limitation, additions
to or deletions from, or changes to the Services set forth on Appendix A.

            7. WAIVERS. No waiver by any Party, whether written or oral, of any
right under or arising from this Agreement given on one occasion shall
constitute a waiver of any other right or any right on any subsequent occasion
and no concession by any Party shall be treated as a variation of this Agreement
unless specifically agreed to in writing.

            8. NOTICES. All notices or other communications made pursuant hereto
shall be in writing and shall be deemed received when personally delivered
against receipted copy, or three business days after being mailed by certified
or registered mail, postage prepaid, to the Parties at the following addresses:

The Company:                  Maguire Properties, L.P.
                              555 West Fifth Street, Suite 5000
                              Los Angeles, CA  90013-1010
                              Attention: Richard I. Gilchrist
                                       Mark Lammas

Option/Excluded Entity:       Maguire Partners Option/Excluded
Entity, Ltd.                  Address
                              Address

            9.    GOVERNING LAW.  This Agreement shall be governed by the
laws of the State of California without regard to the conflict of laws
principles thereof.

            10. ARBITRATION. Except as otherwise expressly provided herein, any
disagreement, dispute, controversy or claim arising out of or relating to this
Agreement or the interpretation of this Agreement or the breach, termination or
invalidity thereof shall be settled by final and binding arbitration
administered by JAMS/Endispute in Los Angeles, California in accordance with the
then existing JAMS/Endispute Arbitration Rules and Procedures. In the event of
such an arbitration

                                        2
<PAGE>
proceeding, the Parties shall select a mutually acceptable neutral arbitrator
from among the JAMS/Endispute panel of arbitrators. In the event the Parties
cannot agree on an arbitrator, the Administrator of JAMS/Endispute will appoint
an arbitrator. Neither Party nor the arbitrator shall disclose the existence,
content, or results of any arbitration hereunder without the prior written
consent of the other Party. Except as provided herein, the Federal Arbitration
Act shall govern the interpretation, enforcement and all proceedings. The
arbitrator shall apply the substantive law (and the law of remedies, if
applicable) of the state of California, or federal law, or both, as applicable,
and the arbitrator is without jurisdiction to apply any different substantive
law. The arbitrator shall have the authority to entertain a motion to dismiss
and/or a motion for summary judgment by either Party and shall apply the
standards governing such motions under the Federal Rules of Civil Procedure. The
arbitrator shall render an award and a written, reasoned opinion in support
thereof. Judgment upon the award may be entered in any court having jurisdiction
thereof. The prevailing party in any such dispute shall be entitled to recover
from the other Party its reasonable attorneys' fees and costs in connection
therewith.

            11. NO ASSIGNMENT. Neither Party shall, without the prior written
consent of the other Party (which consent may be withheld arbitrarily), sell,
assign, pledge, hypothecate or transfer all or any part of its interest in this
Agreement voluntarily or permit such a transfer by operation of law; provided,
however, that the foregoing shall not extend to assignments by the Company to
any affiliate of Maguire Properties, Inc. If any purported transfer of interest
by a Party is not permitted as provided herein, such transfer shall be null and
void and of no effect whatsoever. Except as specifically provided for herein, a
Party's respective rights hereunder may not be transferred, conveyed, or
encumbered without the consent of the other Party and except as so provided, the
covenants, terms, provisions and agreements hereof shall be binding upon and
inure to the benefit of the representatives, successors and assigns of the
respective Parties hereto.

            12.   INTEGRATION.  This Agreement comprises the complete and
integrated agreement of the Parties regarding the subject matter hereof
and supersedes all prior agreements, written or oral, on the subject
matter hereof.

            13.   SEVERABILITY.  Every provision of this Agreement is
intended to be severable.  If any term or provision hereof is illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not
affect the validity or legality of the remainder of this Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       3
<PAGE>
            IN WITNESS WHEREOF, the Parties have executed this Agreement
effective as of the date first above written.

                              THE "COMPANY"

                              MAGUIRE PROPERTIES, L.P., a Maryland limited
                              partnership

                              By:   MAGUIRE PROPERTIES, INC.
                                    a Maryland Corporation
                                    Its General Partner

                                    By: _______________________________
                                    Name:
                                    Title:

                              "OPTION/EXCLUDED ENTITY"

                                  [Signature Block]

                                       S-1
<PAGE>
                                   APPENDIX A

                                    SERVICES

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]