Document:

exv10w2

EXHIBIT 10.2

FORM OF REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT, dated as of      , 2011, is made and entered into
by and between Schottenstein Realty Trust, Inc., a Maryland corporation (the “Company”),
and certain holders listed on Schedule 1 hereto.

RECITALS

     WHEREAS, the Company has prepared a registration statement on Form S-11 (File No. 333-171302)
with respect to the issuance and sale of its common stock, par value $0.01 per share (the
“Common Stock”), with the Securities and Exchange Commission (the “Commission”)
under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to which the
Company intends to conduct an underwritten initial public offering of shares of the Company’s
Common Stock (the “IPO”);

     WHEREAS, in connection with the IPO, the Company and Schottenstein Realty, LP, a Delaware
limited partnership (the “OP”), have entered into that Second Amended and Restated
Contribution Agreement, dated as of      , 2011, pursuant to which the holders listed on
Schedule 2 hereof (the “Contributing Members”) of limited liability company, or
general or limited partnership interests (the “Contributing Member Interests”) in one or
more limited liability companies or partnerships (the “Existing Entities”) exchanged their
Contributing Member Interests for units of limited partnership interests of the OP (the “OP
Units”);

     WHEREAS, the OP Units are exchangeable into the Common Stock in accordance with the terms and
conditions of the Amended and Restated Agreement of Limited Partnership of the OP, dated as of
        , 2011 (the “OP Agreement”), entered into by and among the Company, as the general
partner of the OP, Schottenstein Realty LLC, as the initial limited partner, and the Contributing
Members, as limited partners thereof;

     WHEREAS, the Company has agreed to grant to the members of its senior management an aggregate
of            LTIP Units in the OP (“Management LTIP Units”) pursuant to the OP Agreement
and certain LTIP Award Agreements, dated the date hereof, between the Company and members of the
Company’s senior management listed on Schedule 3 (the “LTIP Recipients”) as an
award under the Company’s 2011 incentive compensation plan, as adopted on      , 2011 (the
“Equity Plan”);

     WHEREAS, the Company has agreed to grant to the members of its senior management an aggregate
of            shares of restricted Common Stock (the “Management Restricted Shares”)
pursuant to certain Restricted Stock Agreements dated the date hereof, between the Company and
members of the Company’s senior management listed on Schedule 4 (the “Management
Restricted Share Recipients”) as an award under the Equity Plan;

     WHEREAS, the Company has agreed to grant to its independent directors            shares of
restricted Common Stock (the “Independent Director Restricted Shares,” and together with
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Management Restricted Shares, the “Restricted Shares”) pursuant to certain Restricted
Stock Agreements, dated the date hereof, between the Company and members of the Company’s board of
directors listed on Schedule 5 (the “Independent Director Restricted Share
Recipients,” and together with the Management Restricted Share Recipients, the “Restricted
Share Recipients”) as an award under the Equity Plan;

     WHEREAS, the Company may, from time to time, grant to members of its senior management team
additional awards under the Equity Plan consisting of, or based upon, shares of Common Stock (the
“Additional Plan Shares”); and

     WHEREAS, the Company desires to enter into this Agreement with the Holders (as defined below)
in order to grant the Holders the registration rights contained herein.

     NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants
contained in this Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

     Section 1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

     “Additional Plan Shares” shall have the meaning set forth in the Recitals hereof.

     “Agreement” shall mean this Registration Rights Agreement as originally executed and
as amended, supplemented or restated from time to time.

     “Board” shall mean the Board of Directors of the Company.

     “Business Day” shall mean any day other than Saturday, Sunday or a day on which
commercial banks in New York, New York are directed or permitted to be closed.

     “Commission” shall have the meaning set forth in the Recitals hereof.

     “Common Stock” shall have the meaning set forth in the Recitals hereof.

     “Company” shall have the meaning set forth in the introductory paragraph hereof.

     “Contributing Member Interests” shall have the meaning set forth in the Recitals
hereof.

     “Contributing Members” shall have the meaning set forth in the Recitals hereof.

     “Contributor Shares” shall mean Common Stock that may be acquired by the Holders in
connection with the exercise by such Holders of the exchange rights associated with the OP Units
received in exchange for Contributing Member Interests.

     “Controlling Person” shall have the meaning set forth in Section 5(a) of this
Agreement.

     “Demand Registration” shall have the meaning set forth in Section 2.2(a) of
this Agreement.

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     “Demand Registration Notice” shall have the meaning set forth in
Section 2.2(a) of this Agreement.

     “Demand Registration Statement” shall have the meaning set forth in
Section 2.2(a) of this Agreement.

     “Depositary” shall mean The Depository Trust Company, or any other depositary
appointed by the Company, provided, however, that such depositary must have an address in the
Borough of Manhattan, in the City of New York.

     “End of Suspension Notice” shall have the meaning set forth in Section 3(a) of
this Agreement.

     “Equity Plan” shall have the meaning set forth in the Recitals hereof.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended (or any
corresponding provision of succeeding law) and the rules and regulations thereunder.

     “Exchangeable OP Units” shall mean OP Units that may be redeemable for cash or, at the
Company’s option, exchangeable for shares of Common Stock pursuant to Section 8.06 of the OP
Agreement.

     “Existing Entities” shall have the meaning set forth in the Recitals hereof.

     “FINRA” shall mean the Financial Industry Regulatory Authority, Inc.

     “Holders” shall mean (i) the Contributing Members, the LTIP Recipients and the
Restricted Share Recipients as holders of Registrable Securities and (ii) any direct or indirect
transferee, to the extent permitted under the Company’s charter and the OP Agreement, of such
Registrable Securities from a Contributor, an LTIP Recipient or a Restricted Share Recipient, as
the case may be, provided, that such transferee agrees in writing to be bound by all the provisions
hereof. For purposes of this Agreement, the Company may deem and treat the registered holder of a
Registrable Security as the Holders and absolute owner thereof, unless notified to the contrary in
writing by the registered Holders thereof.

     “Independent Director Restricted Share Recipients” shall have the meaning set forth in
the Recitals hereof.

     “Independent Director Restricted Shares” shall have the meaning set forth in the
Recitals hereof.

     “IPO” shall have the meaning set forth in the Recitals hereof.

     “Liabilities” shall have the meaning set forth in Section 5(a)(i) of this
Agreement.

     “LTIP Recipients” shall have the meaning set forth in the Recitals hereof.

     “LTIP Units” shall mean units issued by the OP classified as LTIP Units.

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     “Management LTIP Units” shall have the meaning set forth in the Recitals hereof.

     “Management Restricted Share Recipients” shall have the meaning set forth in the
Recitals hereof.

     “Management Restricted Shares” shall have the meaning set forth in the Recitals
hereof.

     “Management Shares” shall mean the Common Stock that may be acquired by the LTIP
Recipients in connection with the exercise by such LTIP Recipients of the exchange rights
associated with the Management LTIP Units.

     “OP” shall have the meaning set forth in the Recitals hereof.

     “OP Agreement” shall have the meaning set forth in the Recitals hereof.

     “OP Units” shall have the meaning set forth in the Recitals hereof.

     “Other Registration Statement” shall have the meaning set forth in
Section 2.2(a) of this Agreement.

     “Person” shall mean any individual, partnership, corporation, limited liability
company, joint venture, association, trust, unincorporated organization or other governmental or
legal entity.

     “Registrable Securities” shall mean at any time (i) the Contributor Shares, (ii) the
Management Shares, (iii) the Restricted Shares and (iv) the Additional Plan Shares, each upon
original issuance thereof and at all time subsequent thereto, including upon the transfer thereof
by the original Holders or any subsequent Holders and any securities issued in respect of such
securities by reason of or in connection with any exchange for or replacement of such securities or
any stock dividend, stock distribution, stock split, purchase in any rights offering or in
connection with any combination of shares, recapitalization, merger or consolidation, or any other
equity securities issued pursuant to any other pro rata distribution with respect to the Common
Stock, until, in the case of any such securities, the earliest to occur of (i) the date on which a
Registration Statement with respect to the sale of such Registrable Securities shall have become
effective under the Securities Act and such Registrable Securities shall have been sold,
transferred, disposed of or exchanged in accordance with such Registration Statement, (ii) the date
on which such Registrable Securities shall have ceased to be outstanding, (iii) the date on which
such Registrable Securities are eligible for sale without registration pursuant to Rule 144 (or any
successor provision) under the Securities Act or (iv) the date on which such Registrable Securities
have been sold and all transfer restrictions and restrictive legends with respect to such
Registrable Securities are removed upon the consummation of such sale.

     “Registration Statement” means any registration statement filed by the Company with
the Commission in compliance with the Securities Act (including any Demand Registration Statement
or Other Registration Statement) for a public offering and sale of the Common Stock or other
securities of the Company, including the prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits and all materials
incorporated by reference or deemed to be incorporated by reference in such Registration

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Statement (other than a registration statement (i) on Form S-4 or Form S-8 or any successor
form to Form S-4 or Form S-8 or in connection with any employee or director welfare, benefit or
compensation plan, (ii) covering only securities proposed to be issued in exchange for securities
or assets of another entity, (iii) in connection with an exchange offer or an offering of
securities exclusively to existing security holders of the Company or its subsidiaries,
(iv) relating to a transaction pursuant to Rule 145 of the Securities Act, (v) for an offering of
debt that is convertible into equity securities of the Company, or (vi) for a dividend reinvestment
plan).

     “Restricted Shares” shall have the meaning set forth in the Recitals hereof.

     “Restricted Share Recipients” shall have the meaning set forth in the Recitals hereof.

     “Securities Act” shall have the meaning set forth in the Recitals hereof.

     “Selling Holders’ Counsel” shall mean one counsel for the Holders that is selected by
the Holders holding a majority of the Registrable Securities included in a Registration Statement
and that is reasonably acceptable to the Company.

     “Shelf Registration Statement” shall have the meaning set forth in
Section 2.1(a) of this Agreement.

     “Suspension Event” shall have the meaning set forth in Section 3(a) of this
Agreement.

     “Suspension Notice” shall have the meaning set forth in Section 3(a) of this
Agreement.

     “Underwritten Offering” shall mean a sale of securities of the Company to an
underwriter or underwriters for reoffering to the public.

     Section 2. Registrations.

          2.1(a) Shelf Registration. The Company agrees to use commercially reasonable efforts
to file with the Commission no later than 12 months after the closing of the IPO and during a
period of time that the issuer of the Registrable Securities is eligible to use Form S-3 (or any
similar or successor form), a registration statement with respect to the Registrable Securities
under the Securities Act on Form S-3 (or any similar or successor form) for the offering to be made
on a continuous basis pursuant to Rule 415 under the Securities Act (the “Shelf Registration
Statement”), and will use commercially reasonable efforts to cause such Shelf Registration
Statement to be declared effective by the Commission as soon as practicable thereafter. With
respect to Holders other than Affiliates of the Company, the Company may, at its option, satisfy
its obligation in this Section 2.1(a) to register on a Shelf Registration Statement the
resale of the Registrable Securities by instead registering on a Shelf Registration Statement the
issuance of the Registrable Securities by the Company to such Holders, provided such
issuance Shelf Registration Statement is initially filed within the time period required by the
Staff of the Commission. The Shelf Registration Statement and any form of prospectus included
therein (or prospectus supplement relating thereto) shall reflect the plan of distribution or
method of sale consistent with Form S-3 (or applicable similar or successor form) as the Holders
may from time to time notify the Company.

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          (b) Shelf Registration Effectiveness. The Company shall use commercially reasonable
efforts to keep the Shelf Registration Statement continuously effective for the period beginning on
the date on which the Shelf Registration Statement is declared effective and ending on the date
that all of the Registrable Securities registered under the Shelf Registration Statement cease to
be Registrable Securities. During the period that the Shelf Registration Statement is effective,
the Company shall supplement or make amendments to the Shelf Registration Statement, if required by
the Securities Act or if reasonably requested by the Holders (whether or not required by the form
on which the securities are being registered), including to reflect any specific plan of
distribution or method of sale, and shall use its commercially reasonable efforts to have such
supplements and amendments declared effective, if required, as soon as practicable after filing.

          (c) Registration Term. The Company shall prepare and file such additional registration
statements as necessary and use its commercially reasonable efforts to cause such registration
statements to be declared effective by the Commission so that a shelf registration statement
remains continuously effective, subject to Section 3, with respect to the Registrable
Securities as and for the periods required under Section 2.1(a), such subsequent
registration statement to constitute a Shelf Registration Statement, hereunder.

          (d) Form S-3. Notwithstanding anything to the contrary contained in this Agreement,
the Company shall not be obligated to file a Shelf Registration Statement unless the Company is
eligible to file a Registration Statement on Form S-3 (or a similar or successor form).

          2.2(a) Demand Registration. Subject to Sections 2.2(c) and 3 hereof,
at any time after 14 months after the closing date of the IPO, if the Company (i) is not eligible
to use Form S-3 (or similar or successor form) or (ii) has failed to file the Shelf Registration
Statement, each Holder may deliver to the Company a written notice (a “Demand Registration
Notice”) informing the Company of such Holder’s desire to have some or all of their Registrable
Securities registered for sale by the Company (a “Demand Registration”). Each Demand
Registration Notice shall specify the number of Registrable Securities to be registered by the
Company. Upon receipt of a Demand Registration Notice from the Holders of at least 25% of the
Registrable Securities, if the Company has not already caused such Registrable Securities to be
included as part of an existing Registration Statement and related prospectus that the Company then
has on file with, and has been declared effective by, the Commission and which remains in effect
and not subject to any stop order, injunction or other order or requirement of the Commission (in
which event the Company shall be deemed to have satisfied its registration obligation under this
Section 2), then the Company will cause to be filed with the Commission as soon as
reasonably practicable after receiving the Demand Registration Notice, but in no event more than
ninety (90) days following receipt of such notice, a new Registration Statement and related
prospectus that complies as to form in all material respects with applicable Commission rules
providing for the sale by such Holder or group of Holders of the Registrable Securities (the
“Demand Registration Statement”), and agrees (subject to Section 3 hereof) to use
commercially reasonable efforts to cause the Demand Registration Statement to be declared effective
by the Commission as soon as practicable following the filing thereof (if it is not an
automatically effective Registration Statement). The Company shall give written notice of the
proposed filing of the Demand Registration Statement to all Holders of Registrable Securities as
soon as practicable, and each Holder of Registrable Securities who wishes to participate in such
Demand Registration Statement shall notify the Company in writing within five (5) Business Days
after the receipt by

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the Holder of the notice from the Company, and shall specify in such notice the number of
Registrable Securities to be included in the Demand Registration Statement. Subject to
Section 3 hereof, the Company agrees to use commercially reasonable efforts to keep the
Demand Registration Statement continuously effective (including the preparation and filing of any
amendments and supplements necessary for that purpose) until the earlier of (i) the date that is
two (2) years after the date of effectiveness of the Demand Registration Statement, (ii) the date
on which all of the Registrable Securities covered by such Demand Registration Statement are
eligible for sale without registration pursuant to Rule 144 (or any successor provision) under the
Securities Act without volume limitations or other restrictions on transfer thereunder, or
(iii) the date on which all Registrable Securities covered by such Demand Registration Statement
are no longer Registrable Securities.

          Notwithstanding the foregoing, the Company may at any time, in its sole discretion and prior
to or after receiving a Demand Registration Notice from any Holder, include all of any Holder’s
Registrable Securities or any portion thereof in any Registration Statement, including by virtue of
adding such Registrable Securities as additional securities to an existing Registration Statement
pursuant to Rule 462(b) under the Securities Act (in which event the Company shall be deemed to
have satisfied its registration obligation under this Section 2.2(a) so long as such
Registration Statement remains effective and not the subject of any stop order, injunction or other
order of the Commission) (any such Registration Statement, an “Other Registration
Statement”). Furthermore, notwithstanding any provision of this Section 2.2(a) to the
contrary, the Company shall have the option, in its sole discretion, to register pursuant to any
Demand Registration Statement or Other Registration Statement, along with Registrable Securities
that Holders have requested to be included in such Demand Registration Statement in accordance with
this Section 2.2(a), any or all additional Registrable Securities that are outstanding.

          (b) Offers and Sales. All offers and sales by a Holder under the Demand Registration
Statement shall be completed within the period during which the Demand Registration Statement
remains effective and not the subject of any stop order, injunction or other order of the
Commission. Upon notice that such Demand Registration Statement is no longer effective, no Holder
will offer or sell the Registrable Securities under the Demand Registration Statement. If directed
in writing by the Company, each Holder will return (at the expense of the Company) all
undistributed copies of the prospectus covering the Registrable Securities in its possession, other
than permanent file copies in the possession of such Holder’s counsel, upon the expiration of such
period.

          (c) Limitations on Demand Registration Rights. The Company shall not be obligated to
effect any Demand Registration within one year after the effective date of a previous Demand
Registration Statement.

          (d) Reduction of Offering. Notwithstanding anything contained herein, if the managing
underwriter or underwriters of an Underwritten Offering of Registrable Securities advise the
Company and the Holders of the Registrable Securities included in such Underwritten Offering that,
in their judgment, the size of the Underwritten Offering that the Holders, the Company and such
other Persons intend to make are such that the marketability of the Underwritten Offering would be
adversely affected by inclusion of the Registrable Securities requested to be included, then if the
size of the offering is the basis of such underwriter’s advice,

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the amount of securities to be offered for the accounts of Holders shall be reduced pro rata
(according to the number of Registrable Securities proposed for registration) to the extent
necessary to reduce the total amount of securities to be included in such Underwritten Offering to
the amount recommended by such underwriter or underwriters; provided, that the number of
Registrable Securities to be included in such Demand Registration shall not be reduced unless all
other securities, if any, are first entirely excluded from such Underwritten Offering.

     Section 3. Black-Out Periods.

          (a) Notwithstanding the provisions of Sections 2.1(a) or 2.2(a), the Company
shall be permitted to postpone the filing of the Registration Statement, and from time to time to
require Holders not to sell under the Registration Statement or to suspend the use or effectiveness
thereof, for such times as the Company reasonably may determine is necessary and advisable (but in
no event for more than an aggregate of 120 days in any rolling 12-month period commencing on the
date of this Agreement or more than 90 consecutive days, except as a result of a refusal by the
Commission to declare any post-effective amendment to the Registration Statement effective after
the Company has used all commercially reasonable efforts to cause the post-effective amendment to
be declared effective by the Commission, in which case, the Company must terminate the black-out
period immediately following the effective date of the post-effective amendment), if any of the
following events shall occur (each such circumstance a “Suspension Event”): (i) the Company
determines in good faith that (A) the offer or sale of any Registrable Securities would materially
impede, delay or interfere with any proposed financing, offer or sale of securities, acquisition,
corporate reorganization or other material transaction involving the Company, (B) after the advice
of counsel, the offer or sale of Registrable Securities pursuant to the Registration Statement
would require disclosure of non-public material information not otherwise required to be disclosed
under applicable law, or (C) (x) the Company has a bona fide business purpose for preserving the
confidentiality of such transaction, (y) disclosure would have a material adverse effect on the
Company or the Company’s ability to consummate such transaction, or (z) such transaction renders
the Company unable to comply with Commission requirements, in each case under circumstances that
would make it impractical or inadvisable to cause the Registration Statement (or such filings) to
become effective or to promptly amend or supplement the Registration Statement on a post effective
basis, as applicable; or (ii) the Company determines in good faith, upon the advice of counsel,
that it is in the Company’s best interest or the Company is required by law, rule or regulation to
supplement the Registration Statement or file a post-effective amendment to the Registration
Statement in order to ensure that the prospectus included in the Registration Statement
(1) contains the information required under Section 10(a)(3) of the Securities Act; (2) discloses
any facts or events arising after the effective date of the Registration Statement (or of the most
recent post-effective amendment) that, individually or in the aggregate, represent a fundamental
change in the information set forth therein; or (3) discloses any material information with respect
to the plan of distribution that was not disclosed in the Registration Statement or any material
change to such information. Upon the occurrence of any such suspension, the Company shall use its
commercially reasonable efforts to cause the Registration Statement to become effective or to
promptly amend or supplement the Registration Statement on a post effective basis or to take such
action as is necessary to make resumed use of the Registration Statement as soon as possible.

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          The Company will provide written notice (a “Suspension Notice”) to the Holders and the
Selling Holders’ Counsel, if any, of the occurrence of any Suspension Event. If as a result of a
Suspension Event, the Registration Statement or related prospectus contains any untrue statement of
a material fact or omits to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were made (in the case
of the prospectus) not misleading, each Holder agrees that (i) it will immediately discontinue
offers and sales of the Registrable Securities under the Registration Statement until the Holder
receives copies of a supplemental or amended prospectus (which the Company agrees to promptly
prepare) that corrects the misstatement(s) or omission(s) referred to above and receives notice
that any post-effective amendment has become effective or unless otherwise notified by the Company
that it may resume such offers and sales, and (ii) it will maintain the confidentiality of any
information included in the written notice delivered by the Company unless otherwise required by
law or subpoena. If so directed by the Company, each Holder will deliver to the Company (at the
expense of the Company) all copies of the prospectus covering the Registrable Securities at the
time of receipt of the Suspension Notice, other than permanent file copies in the possession of
such Holder’s counsel. The Holders may recommence effecting sales of the Registrable Securities
pursuant to the Registration Statement (or such filings) following further written notice to such
effect (an “End of Suspension Notice”) from the Company, which End of Suspension Notice
shall be given by the Company to the Holders and to the Selling Holders’ Counsel, if any, promptly
following the conclusion of any Suspension Event and its effect.

          (b) In connection with any Registration Statement utilized by the Company to satisfy its
obligations under this Agreement, each Holder agrees to cooperate with the Company in connection
with the preparation of the Registration Statement, and each Holder agrees that it will (i) respond
within ten (10) Business Days to any written request by the Company to provide or verify
information regarding the Holder or the Holder’s Registrable Securities (including the proposed
manner of sale) that may be required to be included in such Registration Statement and related
prospectus pursuant to the rules and regulations of the Commission, and (ii) provide in a timely
manner information regarding the proposed distribution by the Holder of the Registrable Securities
and such other information as may be requested by the Company from time to time in connection with
the preparation of and for inclusion in the Registration Statement and related prospectus.

          (c) If all reports required to be filed by the Company pursuant to the Exchange Act have not
been filed by the required date taking into account any permissible extension, upon written notice
thereof by the Company to the Holders, the rights of the Holders to offer, sell or distribute any
Registrable Securities pursuant to any Registration Statement or to require the Company take action
with respect to the registration or sale of any Registrable Securities pursuant to any Registration
Statement shall be suspended until the date on which the Company has filed such reports, and the
Company shall notify the Holders in writing as promptly as practicable when such suspension is no
longer required.

          (d) Notwithstanding any provision herein to the contrary, if the Company shall give a
Suspension Notice with respect to any Registration Statement pursuant to Section 3(a), the
Company agrees that it shall extend the period of time during which such Registration Statement
shall be maintained effective pursuant to this Agreement by the number of days during the period

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from the date of receipt by the Holders of the Suspension Notice to and including the date of
receipt by the Holders of the End of Suspension Notice and provide copies of the supplemented or
amended prospectus necessary to resume sales, with respect to each Suspension Event; provided,
that, such period of time shall not be extended beyond the date that Common Stock covered by such
Registration Statement are no longer Registrable Securities.

     Section 4. Registration Procedures.

          (a) In connection with the filing of any Registration Statement as provided in this Agreement,
the Company shall use commercially reasonable efforts to, as expeditiously as reasonably
practicable:

          (i) prepare and file with the Commission a Registration Statement with respect to such
Registrable Securities, within the relevant time period specified in Sections 2.1(a),
and/or 2.2(a) hereof, on the appropriate form under the Securities Act, which form
(1) shall be selected by the Company, (2) shall be available for the registration and sale of
the Registrable Securities by the selling Holders thereof, (3) shall comply as to form in all
material respects with the requirements of the applicable form and include or incorporate by
reference all financial statements required by the Commission to be filed therewith or
incorporated by reference therein, and (4) shall comply in all respects with the requirements
of Regulation S-T under the Securities Act, and otherwise comply with its obligations under
Section 2 hereof;

          (ii) prepare and file with the Commission such amendments and post-effective amendments
to such Registration Statement as may be necessary under applicable law to keep such
Registration Statement effective for the applicable period; and cause each prospectus to be
supplemented by any required prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provision then in force) under the Securities Act and
comply with the provisions of the Securities Act, the Exchange Act and the rules and
regulations thereunder applicable to them with respect to the disposition of all securities
covered by such Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the selling Holders thereof;

          (iii) (1) notify each Holder of Registrable Securities, at least ten (10) Business Days
after filing, that a Registration Statement with respect to the Registrable Securities has
been filed and advising such Holder that the distribution of Registrable Securities will be
made in accordance with any method or combination of methods legally available by the Holders
of any and all Registrable Securities; (2) furnish to each Holder of Registrable Securities
and to each underwriter of an Underwritten Offering of Registrable Securities, if any, without
charge, as many copies of each prospectus, including each preliminary prospectus, and any
amendment or supplement thereto and such other documents as such Holder or underwriter may
reasonably request, including financial statements and schedules in order to facilitate the
public sale or other disposition of the Registrable Securities; and (3) hereby consent to the
use of the prospectus or any amendment or supplement thereto by the selling Holders of
Registrable Securities in connection with the offering and sale of the Registrable Securities
covered by the prospectus or any amendment or supplement thereto;

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          (iv) use its commercially reasonable efforts to register or qualify the Registrable
Securities by the time the applicable Registration Statement is declared effective by the
Commission under all applicable state securities or “blue sky” laws of such jurisdictions as
any Holder of Registrable Securities covered by the Registration Statement and each
underwriter of an Underwritten Offering of Registrable Securities shall reasonably request in
writing, and do any and all other acts and things which may be reasonably necessary or
advisable to enable each such Holder and underwriter to consummate the disposition in each
such jurisdiction of such Registrable Securities owned by such Holder; provided, however, that
the Company shall not be required to (1) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to qualify but for
this Section 4(a)(iv), or (2) take any action which would subject it to general
service of process or taxation in any such jurisdiction where it is not then so subject;

          (v) notify promptly each Holder of Registrable Securities under the Registration
Statement and, if requested by such Holder, confirm such advice in writing promptly at the
address determined in accordance with Section 8(f) of this Agreement (1) when the
Registration Statement has become effective and when any post-effective amendments and
supplements thereto become effective, (2) of any request by the Commission or any state
securities authority for post-effective amendments and supplements to the Registration
Statement and prospectus or for additional information after the Registration Statement has
become effective, (3) of the issuance by the Commission or any state securities authority of
any stop order suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose, (4) of the happening of any event or the discovery of any
facts during the period the Registration Statement is effective as a result of which the
Registration Statement or the related prospectus or any document incorporated by reference
therein contains any untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not misleading or,
in the case of the prospectus, contains any untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading (which
information shall be accompanied by an instruction to suspend the use of the Registration
Statement and the prospectus (such instruction to be provided in the same manner as a
Suspension Notice) until the requisite changes have been made, at which time notice of the end
of suspension shall be delivered in the same manner as an End of Suspension Notice), (5) of
the receipt by the Company of any notification with respect to the suspension of the
qualification of the Registrable Securities, for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose and (6) of the filing of a post-effective
amendment to the Registration Statement;

          (vi) furnish Selling Holders’ Counsel, if any, copies of any comment letters relating to
the selling Holders received from the Commission or any other request by the Commission or any
state securities authority for amendments or supplements to the Registration Statement and
prospectus or for additional information relating to the selling Holders;

          (vii) make every reasonable effort to obtain the withdrawal of any order suspending the
effectiveness of the Registration Statement at the earliest possible moment;

11

 

          (viii) furnish to each Holder of Registrable Securities, and each underwriter, if any,
without charge, at least one conformed copy of each Registration Statement and any
post-effective amendment thereto, including financial statements and schedules (without
documents incorporated therein by reference and all exhibits thereto, unless requested);

          (ix) cooperate with the selling Holders to facilitate the timely preparation and delivery
of certificates representing Registrable Securities to be sold and not bearing any restrictive
legends; and enable such Registrable Securities to be in such denominations and registered in
such names as the selling Holders or the underwriters, if any, may reasonably request at least
three (3) Business Days prior to the closing of any sale of Registrable Securities;

          (x) upon the occurrence of any event or the discovery of any facts, as contemplated by
Sections 4(a)(v)(4) hereof, as promptly as practicable after the occurrence of such an
event, use its commercially reasonable efforts to prepare a supplement or post-effective
amendment to the Registration Statement or the related prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter delivered to
the purchasers of the Registrable Securities, such prospectus will not contain at the time of
such delivery any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading, or will remain so qualified, as applicable. At such time as such public
disclosure is otherwise made or the Company determines that such disclosure is not necessary,
in each case to correct any misstatement of a material fact or to include any omitted material
fact, the Company agrees promptly to notify each Holder of such determination and to furnish
each Holder such number of copies of the prospectus as amended or supplemented, as such Holder
may reasonably request;

          (xi) within a reasonable time prior to the filing of any Registration Statement, any
prospectus, any amendment to a Registration Statement or amendment or supplement to a
prospectus, provide copies of such document to the Selling Holders’ Counsel, if any, on behalf
of such Holder;

          (xii) obtain a CUSIP number for the Registrable Securities not later than the effective
date of a Registration Statement, and provide the Company’s transfer agent with printed
certificates for the Registrable Securities, in a form eligible for deposit with the
Depositary, in each case, to the extent necessary or applicable;

          (xiii) enter into agreements (including underwriting agreements) and take all other
customary appropriate actions in order to expedite or facilitate the disposition of such
Registrable Securities whether or not an underwriting agreement is entered into and whether or
not the registration is an underwritten registration:

          (A) make such representations and warranties to the Holders of such Registrable
Securities and the underwriters, if any, in form, substance and scope as are customarily
made by issuers to underwriters in similar underwritten offerings as may be reasonably
requested by them;

12

 

          (B) obtain opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to any managing
underwriter(s) and their counsel) addressed to the underwriters, if any, covering the
matters customarily covered in opinions requested in Underwritten Offerings and such
other matters as may be reasonably requested by the underwriter(s);

          (C) obtain “comfort” letters and updates thereof from the Company’s independent
registered public accounting firm (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements are, or are required to be, included in the
Registration Statement) addressed to the underwriter(s), if any (to the extent consistent
with Statement on Auditing Standards No. 72 of the American Institute of Certified Public
Accounts), such letters to be in customary form and covering matters of the type
customarily covered in “comfort” letters to underwriters in connection with similar
Underwritten Offerings;

          (D) enter into a securities sales agreement with the Holders and an agent of the
Holders providing for, among other things, the appointment of such agent for the selling
Holders for the purpose of soliciting purchases of Registrable Securities, which
agreement shall be in form, substance and scope customary for similar offerings;

          (E) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 5 hereof with respect to the
underwriters and all other parties to be indemnified pursuant to said Section or, at the
request of any underwriters, in the form customarily provided to such underwriters in
similar types of Underwritten Offerings; and

          (F) deliver such documents and certificates as may be reasonably requested and as
are customarily delivered in similar offerings to the Holders of a majority in principal
amount of the Registrable Securities being sold and the managing underwriters, if any.

          (xiv) make available for inspection by any underwriter participating in any disposition
pursuant to a Registration Statement, Selling Holders’ Counsel and any accountant retained by
a majority in principal amount of the Registrable Securities being sold, all financial and
other records, pertinent corporate documents and properties or assets of the Company as shall
be reasonably necessary to enable them to exercise their due diligence responsibility, and
cause the respective officers, directors and any other agents of the Company to supply all
information reasonably requested by any such representative, underwriter, counsel or
accountant in connection with a Registration Statement, and make such representatives of the
Company available for discussion of such documents as shall be reasonably requested by the
Selling Holders’ Counsel; provided, however, that the Selling Holders’ Counsel, if any, and
the representatives of any underwriters will use commercially reasonable efforts, to the
extent reasonably practicable, to coordinate the foregoing inspection and information
gathering and to not materially disrupt the Company’s business

13

 

operations; information which the Company determines, in good faith, to be confidential
and which it notifies representatives of the underwriters, Selling Holders’ Counsel and any
accountant are confidential shall not be disclosed by such Persons unless (i) the disclosure
of such information is necessary to avoid or correct a misstatement or omission in such
Registration Statement or (ii) the release of such information is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction; each Selling Holder agrees
that information obtained by it as a result of such inspections shall be deemed confidential
and shall not be used by it as the basis for any market transactions in the securities of the
Company unless and until such is made generally available to the public; each Selling Holder
further agrees that it will, upon learning that disclosure of such information is sought in a
court of competent jurisdiction, give notice to the Company and allow the Company, at its
expense, to undertake appropriate action to prevent disclosure of the information deemed
confidential;

          (xv) a reasonable time prior to filing any Registration Statement, any prospectus forming
a part thereof, any amendment to such Registration Statement, or amendment or supplement to
such prospectus, provide copies of such document to the underwriter(s) of an Underwritten
Offering of Registrable Securities; within five (5) Business Days after the filing of any
Registration Statement, provide copies of such Registration Statement to Selling Holders’
Counsel; make such changes in any of the foregoing documents prior to the filing thereof, or
in the case of changes received from Selling Holders’ Counsel by filing an amendment or
supplement thereto, as the underwriter or underwriters, or in the case of changes received
from Selling Holders’ Counsel relating to the selling Holders or the plan of distribution of
Registrable Securities, as Selling Holders’ Counsel, reasonably requests; not file any such
document in a form to which any underwriter shall not have previously been advised and
furnished a copy of or to which any underwriter shall reasonably object; reasonably consider
the Selling Holders’ Counsel’s comments, if any, in preparing the Registration Statement; not
include in any amendment or supplement to such documents any information about the selling
Holders or any change to the plan of distribution of Registrable Securities that would limit
the method of distribution of the Registrable Securities unless Selling Holders’ Counsel has
been advised in advance and has approved such information or change; and make the
representatives of the Company available for discussion of such document as shall be
reasonably requested by the Selling Holders’ Counsel, if any, on behalf of such Holder,
Selling Holders’ Counsel or any underwriter;

          (xvi) furnish to each underwriter, if any, (i) an opinion or opinions of counsel to the
Company and (ii) if eligible under Statement on Auditing Standards No. 72 of the American
Institute of Certified Public Accounts, a comfort letter or comfort letters from the Company’s
independent public accountants, each in customary form and covering such matters of the type
customarily covered by opinions or comfort letters, as the case may be, as the managing
underwriter or underwriters therefor reasonably requests;

          (xvii) use its commercially reasonable efforts to cause all Registrable Securities to be
listed on any national securities exchange on which the Common Stock is then listed;

          (xviii) otherwise comply with all applicable rules and regulations of the Commission and
make available to its security holders, as soon as reasonably practicable,

14

 

an earnings statement covering at least 12 months which shall satisfy the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder;

          (xix) cooperate and assist in any filings required to be made with the FINRA and in the
performance of any due diligence investigation by any underwriter and its counsel (including
any “qualified independent underwriter” that is required to be retained in accordance with the
rules and regulations of the FINRA); and

          (xx) the Company may (as a condition to a Holder’s participation in a Registration)
require each Holder of Registrable Securities to furnish to the Company such information
regarding the Holders and the proposed distribution by such Holder of such Registrable
Securities as the Company may from time to time reasonably request in writing.

     Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event or the discovery of any facts of the type described in Section 4(a)(v) hereof, such
Holder will forthwith discontinue disposition of Registrable Securities pursuant to a Registration
Statement relating to such Registrable Securities until such Holder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 4(a)(v) hereof, and, if so
directed by the Company, such Holder will deliver to the Company (at the Company’s expense) all
copies in such Holder’s possession, other than permanent file copies then in such Holder’s
possession, of the prospectus covering such Registrable Securities current at the time of receipt
of such notice.

     Section 5. Indemnification.

        (a) Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Holder, and the respective officers, directors, partners, members, employees, representatives
and agents of any such Person, and each Person (a “Controlling Person”), if any, who
controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
any of the foregoing Persons, as follows:

          (i) against any and all loss, liability, claim, damage, judgment, actions, other
liabilities and expense whatsoever (the “Liabilities”), as incurred, arising out of
any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment or supplement thereto) pursuant to which Registrable
Securities were registered under the Securities Act, including all documents incorporated
therein by reference, or the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein not misleading, or
arising out of any untrue statement or alleged untrue statement of a material fact contained
in any prospectus (or any amendment or supplement thereto) or the omission or alleged omission
therefrom at such date of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;

          (ii) against any and all Liabilities, as incurred, to the extent of the aggregate amount
paid in settlement of any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or of any claim whatsoever based upon any such untrue
statement or omission, or any such alleged untrue statement or

15

 

omission; provided, that (subject to Section 5(d) below) any such settlement is
effected with the written consent of the Company; and

          (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by any indemnified party), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under subparagraph (i)
or (ii) above;

provided, however, that this indemnity agreement shall not apply to any Liabilities to the extent
arising out of any untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with written information furnished to the Company by or on behalf
of a Holder expressly for use in a Registration Statement (or any amendment thereto) or any
prospectus (or any amendment or supplement thereto); and provided, further, that the Company shall
not be liable to the Holders or any other Person who controls (within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act) such Holder in any such case to the extent
that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of such Person’s failure to send or give a copy of the final prospectus or
supplement to the Persons asserting an untrue statement or alleged untrue statement or omission or
alleged omission at or prior to the written confirmation of the sale of Registrable Securities to
such Person if such statement or omission was corrected in such final prospectus or supplement.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of the Holders or any such Controlling Person and shall survive the transfer of such
securities by the Holders.

        (b) Indemnification by the Holders. Each Holder severally, but not jointly, agrees to
indemnify and hold harmless the Company and the other selling Holders, and each of their respective
officers, directors, partners, members, employees, representatives and agents, and each of their
respective Controlling Persons, against any and all Liabilities described in the indemnity
contained in Section 5(a) hereof, as incurred, but only with respect to untrue statements
or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any
amendment thereto) or any prospectus included therein (or any amendment or supplement thereto) in
reliance upon and in conformity with written information with respect to such Holder furnished to
the Company by or on behalf of such Holder expressly for use in the Registration Statement (or any
amendment thereto) or such prospectus (or any amendment or supplement thereto); provided, however,
that no such Holder shall be liable for any claims hereunder in excess of the amount of net
proceeds received by such Holder from the sale of Registrable Securities pursuant to such
Registration Statement.

        (c) Notices of Claims, etc. Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action or proceeding commenced against it
in respect of which indemnity may be sought hereunder, but failure so to notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is
not materially prejudiced as a result thereof and in any event shall not relieve it from any
liability which it may have otherwise than on account of this indemnity agreement. An

16

 

indemnifying party may participate at its own expense in the defense of such action; provided,
however, that counsel to the indemnifying party shall not (except with the consent of the
indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying
party or parties be liable for the fees and expenses of more than one counsel (in addition to any
local counsel) separate from their own counsel for all indemnified parties in connection with any
one action or separate but similar or related actions in the same jurisdiction arising out of the
same general allegations or circumstances. No indemnifying party shall, without the prior written
consent of the indemnified parties, settle or compromise or consent to the entry of any judgment
with respect to any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whosoever in respect of which indemnification or
contribution could be sought under this Section 5 (whether or not the indemnified parties
are actual or potential parties thereto), unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all liability arising out of such
litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

          (d) Indemnification Payments. If at any time an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such
indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by
Section 5(a)(ii) effected without its written consent if (i) such settlement is entered
into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at least 30 days
prior to such settlement being entered into and (iii) such indemnifying party shall not have
reimbursed such indemnified party in accordance with such request prior to the date of such
settlement.

          (e) Contribution. If the indemnification provided for in this Section 5 is for
any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any
Liabilities referred to therein, then each indemnifying party shall contribute to the aggregate
amount of such Liabilities incurred by such indemnified party, as incurred, in such proportion as
is appropriate to reflect the relative fault of the Company on the one hand and the Holders on the
other hand in connection with the statements or omissions which resulted in such Liabilities, as
well as any other relevant equitable considerations.

     The relative fault of the Company on the one hand and the Holders on the other hand shall be
determined by reference to, among other things, whether any such untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact relates to information
supplied by the Company or the Holders and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

     The Company and the Holders agree that it would not be just and equitable if contribution
pursuant to this Section 5 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to above in this
Section 5. The aggregate amount of Liabilities incurred by an indemnified party and
referred to above in this Section 5 shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced

17

 

or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement
or omission or alleged omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

     Section 6. Market Stand-Off Agreement. Each Holder hereby agrees that it shall not,
directly or indirectly sell, offer to sell (including without limitation any short sale), pledge,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant for the sale of or otherwise dispose of or transfer any
Registrable Securities or other Common Stock or any securities convertible into or exchangeable or
exercisable for Common Stock then owned by such Holder (other than to permitted transferees of the
Holders who agree to be similarly bound) for up to 180 days following the date the date that is
five (5) days before the anticipated date of an underwriting agreement with respect to an
underwritten public offering of the Company’s securities; provided, however, that:

          (a) the restrictions above shall not apply to Registrable Securities sold on the Holders’
behalf to the public in an Underwritten Offering pursuant to a Registration Statement;

          (b) all executive officers and directors of the Company then holding Common Stock or
securities convertible into or exchangeable or exercisable for Common Stock enter into similar
agreements for not less than the entire time period required of the Holders hereunder; and

          (c) the Holders shall be allowed any concession or proportionate release allowed to any (i)
executive officer, (ii) director, (iii) other holder of the Company’s Common Stock that entered
into similar agreements (with such proportion being determined by dividing the number of shares
being released with respect to such executive officer, director or other holder of the Company’s
Common Stock by the total number of issued and outstanding shares held by such executive officer,
director or holder).

     In order to enforce the foregoing covenant, the Company shall have the right to place
restrictive legends on the certificates representing the securities subject to this Section
6 and to impose stop transfer instructions with respect to the Registrable Securities and such
other securities of each Holder (and the securities of every other Person subject to the foregoing
restriction) until the end of such period.

     Section 7. Termination; Survival. The rights of each Holder under this Agreement shall
terminate upon the date that such Holder ceases to hold any Registrable Securities. Notwithstanding
the foregoing, the obligations of the parties under Sections 5 and 8 of this
Agreement shall remain in full force and effect following such time.

     Section 8. Miscellaneous.

          (a) Registration Expenses. The Company shall pay all expenses incident to the
performance by the Company of its registration obligations under Section 2 above,
including, without limitation, (i) all expenses incurred in connection with the preparation,
printing and distribution of any Registration Statement and prospectus and all amendments and
supplements

18

 

thereto, (ii) all stock exchange, Commission and state securities registration, listing and
filing fees, (iii) all fees and expenses of complying with securities or “blue sky” laws, (iv) all
FINRA fees, (v) fees and disbursements of counsel for the Company and fees and expenses for the
independent certified public accountants retained by the Company (including the expenses or costs
associated with the delivery of any opinions or comfort letters), (vi) all internal expenses of the
Company (including, without limitation, all salaries and expenses of its officers performing legal
or accounting duties); and (vii) the fees and expenses of any person, including special experts,
retained by the Company in connection with the preparation of any Registration Statement. In
connection with each Demand Registration initiated hereunder, the Company shall reimburse the
Holders covered by such registration or sale for the reasonable fees and disbursements of the
Selling Holders’ Counsel. Each Holder shall be responsible for the payment of any brokerage and
sales commissions, fees and disbursements of the Holder’s counsel, accountants and other advisors,
and any transfer taxes relating to the sale or disposition of the Registrable Securities by such
Holder pursuant to this Agreement. The Company shall have no obligation to pay any other costs or
expenses in the course of the transactions contemplated hereby, including underwriting discounts or
selling commissions attributable to the Registrable Securities being sold by the Holders thereof,
which underwriting discounts or selling commissions shall be borne by such Holders. In addition, in
an Underwritten Offering, all selling stockholders and the Company shall bear the expenses of the
underwriters, pro rata, in proportion to the respective amount of shares each is selling in such
offering.

          (b) Covenants Relating To Rule 144. For so long as the Company is subject to the
reporting requirements of Section 13 or 15 of the Securities Act, the Company covenants that it
will file the reports required to be filed by it under the Securities Act and Section 13(a) or
15(d) of the Exchange Act and the rules and regulations adopted by the Commission thereunder. If
the Company ceases to be so required to file such reports, the Company covenants that it will upon
the request of any Holder of Registrable Securities (a) make publicly available such information as
is necessary to permit sales pursuant to Rule 144 under the Securities Act, (b) deliver such
information to a prospective purchaser as is necessary to permit sales pursuant to Rule 144A under
the Securities Act and it will take such further action as any Holder of Registrable Securities may
reasonably request, and (c) take such further action that is reasonable in the circumstances, in
each case to the extent required from time to time to enable such Holder to sell its Registrable
Securities without registration under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 under the Securities Act, as such Rule may be amended from time to time,
(ii) Rule 144A under the Securities Act, as such rule may be amended from time to time, or (iii)
any similar rules or regulations hereafter adopted by the Commission. Upon the request of any
Holder of Registrable Securities, the Company will deliver to such Holder a written statement as to
whether it has complied with such requirements (at any time after 90 days after the effective date
of the first Registration Statement filed by the Company for an offering of its Common Stock to the
general public) and of the Securities Act and the Exchange Act (at any time after it has become
subject to the reporting requirements of the Exchange Act), a copy of the most recent annual and
quarterly report(s) of the Company, and such other reports, documents or stockholder communications
of the Company, and take such further actions consistent with this Section 8(b), as a
Holder may reasonably request in availing itself of any rule or regulation of the Commission
allowing a Holder to sell any such Registrable Securities without registration.

19

 

          (c) Participation in Underwritten Offerings. No Person may participate in any
Underwritten Offerings hereunder unless such Person (a) agrees to sell such Person’s securities on
the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to
approve such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of
such underwriting arrangements and these registration rights provided for in this Agreement. The
Company shall select the managing underwriter or underwriters in connection with any Underwritten
Offering.

          (d) No Inconsistent Agreements. The Company has not entered into and the Company will
not after the date of this Agreement enter into any agreement which is inconsistent with the rights
granted to the Holders of Registrable Securities pursuant to this Agreement or otherwise conflicts
with the provisions of this Agreement. The rights granted to the Holders hereunder do not and will
not for the term of this Agreement in any way conflict with the rights granted to the holders of
the Company’s other issued and outstanding securities under any such agreements.

          (e) Amendments and Waivers. The provisions of this Agreement may be amended or waived
at any time only by the written agreement of the Company and the Holders of a majority of the
Registrable Securities; provided, however, that the provisions of this Agreement may not be amended
or waived without the consent of the Holders of all the Registrable Securities adversely affected
by such amendment or waiver if such amendment or waiver adversely affects a portion of the
Registrable Securities but does not so adversely affect all of the Registrable Securities;
provided, further, that the provisions of the preceding provision may not be amended or waived
except in accordance with this sentence. Any waiver, permit, consent or approval of any kind or
character on the part of any such Holder of any provision or condition of this Agreement must be
made in writing and shall be effective only to the extent specifically set forth in writing. Any
amendment or waiver effected in accordance with this paragraph shall be binding upon each Holder of
Registrable Securities and the Company.

          (f) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail, facsimile, electronic
communication, or any courier guaranteeing overnight delivery.

If to the Company, to:

Schottenstein Realty Trust, Inc.

4300 East Fifth Avenue

Columbus, Ohio 43219

Attention: Tod H. Friedman, Esq.

Fax No.: (614) 340-7226

If to the Holder:

To the address indicated for such Holder in Schedule 1 hereto

     If to a transferee Holder, to the address of such Holder set forth in the transfer
documentation provided to the Company.

20

 

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two (2) Business Days after being deposited in the
mail, postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party) and on the next Business Day if timely delivered to an air courier guaranteeing
overnight delivery.

          (g) Successor and Assigns. This Agreement and the rights, duties and obligations of
the Holders hereunder may be freely assigned or delegated by such Holder in conjunction with and to
the extent of any transfer of Registrable Securities held by any such Holder. This Agreement and
the provisions hereof shall inure to the benefit of and be binding upon all of the parties hereto
and their respective heirs, executors, personal and legal representatives, successors and permitted
assigns, including, without limitation, any successor of the Company by merger, acquisition,
reorganization, recapitalization or otherwise; provided, however, that no such transfer or
assignment shall be binding upon or obligate the Company to any such assignee unless and until the
Company shall have received written notice of such transfer or assignment as herein provided and a
written agreement of the assignee to be bound by the provisions of this Agreement. This Agreement
is not intended to confer any rights or benefits on any Persons that are not party hereto other
than as expressly set forth in Section 5 and this Section 8(g).

          (h) Specific Enforcement. Without limiting the remedies available to the Holders, the
Company acknowledges that any failure by the Company to comply with its obligations under
Section 2 hereof may result in material irreparable injury to the Holders for which there
is no adequate remedy at law, that it would not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, a Holder may obtain such relief as may be
required to specifically enforce the Company’s obligations under Section 2 hereof.

          (i) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

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

          (k) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

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

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date
first written above.

	 	 	 	 	 
	 	SCHOTTENSTEIN REALTY TRUST, INC.

a Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	HOLDERS:

 	 
	 	By:  	 	 
	 	 	*           , Authorized Representative for the 	 
	 	 	Holders listed on Schedule 1 hereto 	 
	 

Signature Page to Registration Rights Agreement

 

 

Schedule 1

HOLDERS

 

 

Schedule 2

CONTRIBUTING MEMBERS

 

 

Schedule 3

LTIP RECIPIENTS

 

 

Schedule 4

MANAGEMENT RESTRICTED SHARE RECIPIENTS

 

 

Schedule 4

INDEPENDENT DIRECTOR RESTRICTED SHARE RECIPIENTS

CHI 60,766,814v5 3-13-11

27exv10w3

EXHIBIT 10.3

SCHOTTENSTEIN REALTY TRUST, INC.

2011 INCENTIVE COMPENSATION PLAN

          Schottenstein Realty Trust, Inc., a Maryland corporation, wishes to attract officers,
Directors, key employees, consultants, advisers and other personnel to the Company and its
Subsidiaries and induce officers, Directors, key employees, consultants, advisers and other
personnel to remain with the Company and its Subsidiaries, and encourage them to increase their
efforts to make the Company’s business more successful whether directly or through its
Subsidiaries. In furtherance thereof, the Schottenstein Realty Trust, Inc. 2011 Incentive
Compensation Plan is designed to provide cash and equity-based incentives to Eligible Persons.
Awards under the Plan may be made to Eligible Persons in the form of Options, Stock Appreciation
Rights, Restricted Stock, Phantom Shares, Performance Units, Dividend Equivalent Rights and Other
Equity-Based Awards.

1. DEFINITIONS

          Whenever used herein, the following terms shall have the meanings set forth below:

          “Award,” except where referring to a particular category of grant under the Plan, shall
include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted
Stock, Phantom Shares, Performance Units, Dividend Equivalent Rights and Other Equity-Based Awards
as contemplated herein.

          “Award Agreement” means a written agreement in a form approved by the Committee to be entered
into between the Company and the Grantee as provided in Section 3.

          “Beneficiary” means the person, persons, trust or trusts that have been designated by a
Grantee in his or her most recent written beneficiary designation filed with the Committee to
receive the benefits specified under the Plan upon such Grantee’s death or to which Awards or other
rights are transferred if and to the extent permitted under the Plan and/or the Grantee’s Award
Agreement and the Partnership Agreement, if applicable. If, upon a Grantee’s death, there is no
designated Beneficiary or surviving designated Beneficiary, then the term Beneficiary means the
person, persons, trust or trusts entitled by will or the laws of descent and distribution to
receive such benefits.

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

          “Cause” shall have the meaning specified in the Grantee’s Award Agreement. In the absence of
any definition in the Award Agreement, “Cause” shall have the equivalent meaning or the same
meaning as “cause” or “for cause” set forth in any employment, consulting, or other agreement for
the performance of services between the Grantee and the Company or any Subsidiary or, in the
absence of any such agreement or any such definition in such agreement, such term shall mean (i)
the failure by the Grantee to perform, in a reasonable manner, his or her duties as assigned by the
Company or any Subsidiary, (ii) any violation or breach by the Grantee of his or her employment,
consulting or other similar agreement with the Company or its Subsidiaries, if any, (iii) any
violation or breach by the Grantee of any non-competition, non-solicitation, non-disclosure and/or
other similar agreement with the Company or its Subsidiaries, (iv) any act by the Grantee of
dishonesty or bad faith with respect to the Company or any Subsidiary, (v) use of alcohol, drugs or
other similar substances in a manner that adversely affects the Grantee’s work performance, or (vi)
the commission by the Grantee of any act, misdemeanor, or crime reflecting unfavorably upon the
Grantee or the Company or any Subsidiary.

 

 

          “Change in Control” means, unless otherwise provided in the Grantee’s Award Agreement, the
happening of any of the following:

          (i) any “person”, including a “group” (as such terms are used in Sections 13(d) and 14(d) of
Exchange Act) (but excluding the Company, any entity controlling, controlled by or under common
control with the Company, any trustee, fiduciary or other person or entity holding securities under
any employee benefit plan or trust of the Company or any such entity, and with respect to the
Grantee, the Grantee and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act)
of which the Grantee is a member) is or becomes the “beneficial owner” (as defined in Rule 13(d)(3)
under the Exchange Act), directly or indirectly, of securities of the Company representing 40% or
more of either (A) the combined voting power of the Company’s then outstanding securities or (B)
the then outstanding Shares (in either such case other than as a result of an acquisition of
securities directly from the Company); provided, however, that, in no event shall a Change in
Control be deemed to have occurred upon an Initial Public Offering of Common Stock under the
Securities Act; or

          (ii) any consolidation, merger or statutory share exchange of the Company where the
stockholders of the Company, immediately prior to the consolidation, merger or statutory share
exchange, would not, immediately after the consolidation, merger or statutory share exchange,
beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, shares representing in the aggregate 50% or more of the combined voting power of the
securities of the corporation issuing cash or securities in the consolidation, merger or statutory
share exchange (or of its ultimate parent corporation, if any); or

          (iii) there shall occur (A) any sale, lease, exchange or other transfer (in one transaction or
a series of transactions contemplated or arranged by any party as a single plan) of all or
substantially all of the assets of the Company, other than a sale or disposition by the Company of
all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting

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power of the voting securities of which are owned by “persons” (as defined above) in
substantially the same proportion as their ownership of the Company immediately prior to such sale
or (B) the approval by stockholders of the Company of any plan or proposal for the liquidation or
dissolution of the Company; or

          (iv) the members of the Board at the beginning of any consecutive 24-calendar-month period
(the “Incumbent Directors”) cease for any reason other than due to death to constitute at least a
majority of the members of the Board; provided that any Director whose election, or nomination for
election by the Company’s stockholders, was approved or ratified by a vote of at least a majority
of the members of the Board then still in office who were members of the Board at the beginning of
such 24-calendar-month period, shall be deemed to be an Incumbent Director.

          Notwithstanding the foregoing, any direct or indirect acquisition of the Beneficial Ownership
(as defined in Rule 13(d)(3) of the Exchange Act) of Common Stock by Jay Schottenstein, his spouse
and/or lineal descendants, will not be treated as an acquisition of stock of the Company for
purposes of this definition of “Change in Control”. In addition. no event or condition shall
constitute a Change in Control to the extent that, if it were, an additional tax would be imposed
upon or with respect to any amounts payable pursuant to this Agreement under Section 409A of the
Code; provided that, in such a case, the event or condition shall continue to constitute a Change
in Control to the maximum extent possible (e.g., if applicable, in respect of vesting without an
acceleration of distribution) without causing the imposition of such additional tax.

          “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder.

          “Committee” means the compensation committee appointed by the Board and if no compensation
committee has been appointed or then is serving, then Committee shall refer to the Board.

          “Common Stock” means the Company’s common stock, par value $.01 per share, either currently
existing or authorized hereafter.

          “Common Units” means “Common Units”, as defined in the Partnership Agreement.

          “Company” means Schottenstein Realty Trust, Inc., a Maryland corporation.

          “Continuous Service” means the continuous service to the Company and/or its Subsidiaries,
without interruption or termination, in any capacity of an officer, member of the Board, key
employee, consultant or adviser of the Company or its Subsidiaries. An approved leave of absence
shall include sick leave, military leave, or any other authorized personal leave.

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          “Director” means a non-employee director of the Company or its Subsidiaries.

          “Disability” means the Grantee’s inability, or failure, to perform the essential functions of
his or her position, with or without reasonable accommodation, for any period of ninety (90)
consecutive days or one hundred eighty (180) days, whether or not consecutive, in any twelve (12)
month period, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months.

          “Dividend Equivalent Right” means a right awarded under Section 8 of the Plan to receive (or
have credited) the equivalent value of dividends paid on Common Stock.

          “Effective Date” means [•], 2011.

          “Eligible Person” means an officer, Director, key employee, consultant or adviser of the
Company or its Subsidiaries or other person expected to provide significant services (of a type
expressly approved by the Committee as covered services for these purposes) to the Company or its
Subsidiaries.

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

          “Fair Market Value” per Share as of a particular date means (i) if Shares are then listed on a
national securities exchange or quoted or reported on a national quotation system, the closing
sales price per Share on the exchange or system for the applicable date or, if there are no sales
on such date, for the last preceding date on which there was a sale of Shares on such exchange or
system; (ii) if Shares are not then listed on a national securities exchange or quoted on a
national quotation system but are then traded on an over-the-counter market, the average of the
closing bid and asked prices for the Shares in such over-the-counter market for the date in
question, or, if there are no bid and asked prices on such date, for the last preceding date on
which there was a sale of such Shares in such market; or (iii) if Shares are not then listed on a
national securities exchange, quoted on a national quotation system or traded on an
over-the-counter market, such value as the Committee in its discretion may in good faith determine;
provided that, where the Shares are so listed or traded, the Committee may make such discretionary
determinations where the Shares have not been traded for 10 consecutive trading days.
Notwithstanding the foregoing, with respect to any “stock right” within the meaning of Section 409A
of the Code, Fair Market Value shall not be less than the “fair market value” of the shares of
Common Stock determined in accordance with the final regulations promulgated under Section 409A of
the Code.

          “Grantee” means an Eligible Person to whom Options, Restricted Stock, Phantom Shares,
Performance Units, Dividend Equivalent Rights or Other Equity-Based Awards are granted hereunder.

          “Good Reason” means, unless otherwise provided in the Grantee’s Award Agreement, the
occurrence of any of the following: (i) a material diminution in the Grantee’s base compensation;
(ii) a material diminution in the Grantee’s authority, duties, or responsibilities; (iii) a
material change in the geographic location at which the Grantee must perform services for the
Company or its Subsidiaries; or (iv) any other action or inaction that constitutes a material

4

 

breach by the Company or its Subsidiaries of its obligations with respect to the Grantee’s
employment with the Company or its Subsidiaries. For purposes of this Agreement, Good Reason shall
not be deemed to exist unless the Grantee’s termination of Continuous Service for Good Reason
occurs within six (6) months following the initial existence of one of the conditions specified in
clauses (i) through (iv) above, the Grantee provides the Company with written notice of the
existence of such condition within ninety (90) days after the initial existence of the condition,
and the Company fails to remedy the condition within thirty (30) days after its receipt of such
notice.

          “Initial Public Offering” or “IPO” means the consummation of the first fully underwritten,
firm commitment public offering pursuant to an effective registration statement under the
Securities Act covering the offer and sale by the Company of its equity securities, or such other
event as a result of or following which the Common Stock shall be publicly held.

          “Incentive Stock Option” means an “incentive stock option” within the meaning of Section
422(b) of the Code.

          “LTIP Unit” means an “LTIP Unit” as defined in the Partnership Agreement. An LTIP Unit
granted under this Plan represents the right to receive the benefits, payments or other rights in
respect of an LTIP Unit set forth in the Partnership Agreement, subject to the terms and conditions
of the applicable Award Agreement and the Partnership Agreement.

          “Non-Qualified Stock Option” means an Option which is not an Incentive Stock Option.

          “Option” means the right to purchase, at a price and for the term fixed by the Committee in
accordance with the Plan, and subject to such other limitations and restrictions in the Plan and
the applicable Award Agreement, a number of Shares determined by the Committee.

          “Option Price” means the price per Share, determined by the Board or the Committee, at which
an Option may be exercised.

          “Other Equity-Based Awards” means an equity-based award described in Section 10 hereof.

          “Partnership” means Schottenstein Realty LP, a Delaware limited partnership.

          “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of
Schottenstein Realty LP, dated as of March        , 2011, as it may be amended,
supplemented or restated from time to time in accordance with its terms.

          “Performance Goals” have the meaning set forth in Section 11.

          “Performance Period” means any period designated by the Committee for which Performance
Criteria (as defined in Exhibit A) shall be calculated.

          “Performance Unit” means any grant pursuant to Section 9 hereof of a unit valued by reference
to a designated amount of property (including cash) other than Shares, which value may be paid to
the Grantee by delivery of such property as the Committee shall determine,

5

 

including cash, Shares, other property, or any combination thereof, upon achievement of such
performance goals during the Performance Period as the Committee shall establish at the time of
such grant or thereafter.

          “Phantom Share” means a right, pursuant to the Plan, of the Grantee to payment of the Phantom
Share Value in accordance with Section 7.

          “Phantom Share Value,” per Phantom Share, means the Fair Market Value of a Share or, if so
provided by the Committee, such Fair Market Value to the extent in excess of a base value
established by the Committee at the time of grant (which base value may not be less than the Fair
Market Value of the underlying Shares at the date of grant).

          “Plan” means the Company’s 2011 Incentive Compensation Plan, as set forth herein and as the
same may from time to time be amended.

          “REIT” shall mean a real estate investment trust under Sections 856 through 860 of the Code.

          “REIT Requirements” means the requirements to qualify as a REIT under the Code and the rules
and regulations promulgated thereunder.

          “Restricted Stock” means an award of Shares that are subject to restrictions in accordance
with Section 6 hereunder.

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

          “Settlement Date” means the date determined under Section 7.4(c).

          “Shares” means shares of Common Stock of the Company.

          “Stock Appreciation Right” means a right described in Section 5.7.

          “Subsidiary” means any corporation (other than the Company), partnership or other entity of
which at least 50% of the economic interest in the equity or voting power is owned (directly or
indirectly) by the Company.

          “Successor of the Grantee” means the legal representative of the estate of a deceased Grantee
of an Option or the person or persons who shall acquire the right to exercise an Option by bequest
or inheritance or by reason of the death of the Grantee.

          “Termination of Service” means a Grantee’s termination of Continuous Service, as applicable,
with the Company or its Subsidiaries. Cessation of service as an officer, Director, key employee,
consultant, adviser or other personnel shall not be treated as a Termination of Service if the
Grantee continues without interruption to serve thereafter in another one (or more) of such other
capacities. With respect to any Award subject to Section 409A of the Code, Termination of Service
shall be a “separation from service” as interpreted within the meaning of Section 409A of the Code
and Treasury Regulation 1.409A-1(h).

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2. EFFECTIVE DATE AND TERMINATION OF PLAN

          The effective date of the Plan is [•], 2011; provided, however, that the Plan shall not become
effective unless and until it is approved by the requisite percentage of the stockholders of the
Company. The Plan shall terminate on, and no Award shall be granted hereunder on or after, the
10-year anniversary of the earlier of the approval of the Plan by (a) the Board or (b) the
stockholders of the Company; provided, that the Board may at any time prior to that date terminate
the Plan.

3. ADMINISTRATION OF PLAN

          (a) The Plan shall be administered by the Committee. The Committee, upon and after such time
as it is covered in Section 16 of the Exchange Act, shall consist of at least two individuals each
of whom shall be a “non-employee director” as defined in Rule 16b-3 as promulgated by the
Securities and Exchange Commission (“Rule 16b-3”) under the Exchange Act and shall, at such
times as the Company is subject to Section 162(m) of the Code (to the extent relief from the
limitation of Section 162(m) of the Code is sought with respect to Awards), qualify as “outside
directors” for purposes of Section 162(m) of the Code; provided that no action taken by the
Committee (including, without limitation, grants) shall be invalidated because any or all of the
members of the Committee fails to satisfy the foregoing requirements of this sentence. The acts of
a majority of the members present at any meeting of the Committee at which a quorum is present, or
acts approved in writing by a majority of the entire Committee, shall be the acts of the Committee
for purposes of the Plan. If and to the extent applicable, no member of the Committee may act as
to matters under the Plan specifically relating to such member. Notwithstanding the other
foregoing provisions of this Section 3(a), any Award under the Plan to a person who is a member of
the Committee shall be made and administered by the Board. If no Committee is designated by the
Board to act for these purposes, the Board shall have the rights and responsibilities of the
Committee hereunder and under the Award Agreements.

          (b) Subject to the provisions of the Plan, the Committee shall in its discretion as reflected
by the terms of the Award Agreements (i) authorize the granting of Awards to Eligible Persons; (ii)
determine the eligibility of an Eligible Person to receive an Award (subject to the individual
participant limitations provided hereunder), as well as determine the number of Shares to be
covered under any Award Agreement, considering the position and responsibilities of the Eligible
Person, the nature and value to the Company of the Eligible Person’s present and potential
contribution to the success of the Company whether directly or through its Subsidiaries and such
other factors as the Committee may deem relevant; (iii) determine the terms, provisions and
conditions of each Award (which may not be inconsistent with the terms of the Plan); (iv) prescribe
the form of instruments evidencing such awards; (v) make recommendations to the Board with respect
to any Award that is subject to Board approval; and (vi) take such other actions as are prescribed
under the Plan, including, without limitation, Section 14 herein.

          (c) The Award Agreement shall contain such other terms, provisions and conditions not
inconsistent herewith as shall be determined by the Committee. In the event that any Award
Agreement or other agreement hereunder provides (without regard to this sentence) for the
obligation of the Company or any Subsidiary thereof to purchase or repurchase Shares from a

7

 

Grantee or any other person, then, notwithstanding the provisions of the Award Agreement or
such other agreement, such obligation shall not apply to the extent that the purchase or repurchase
would not be permitted under governing state law. The Grantee shall take whatever additional
actions and execute whatever additional documents the Committee may in its reasonable judgment deem
necessary or advisable in order to carry out or effect one or more of the obligations or
restrictions imposed on the Grantee pursuant to the express provisions of the Plan and the Award
Agreement.

4. SHARES AND UNITS SUBJECT TO THE PLAN

          4.1 In General.

          (a) Subject to Section 4.2, and subject to adjustments as provided in Section 15, the total
number of Shares subject to Options or Other Equity-Based Awards granted under the Plan, Shares of
Restricted Stock, Phantom Shares and Shares that may be delivered in settlement of Performance
Units, granted under the Plan, in the aggregate, may not exceed 10% of the issued and outstanding
Shares as of the later of the date of the IPO or the last closing date of any Shares sold solely to
cover over-allotments in connection with the IPO (on a fully diluted basis (assuming, if
applicable, the exercise of all outstanding options, the conversion of all warrants and convertible
securities into Shares and the exchange of all outstanding Common Units of the Partnership into
Shares) and including Shares solely to cover over-allotments, but excluding any Shares issued or
issuable under the Plan). Shares distributed under the Plan may be treasury Shares or authorized
but unissued Shares. Any Shares that have been granted as Restricted Stock or that have been
reserved for distribution in payment for Options, Phantom Shares, or Other Equity-Based Awards
(including LTIP Units and Common Units) under Section 10 but are later forfeited or for any other
reason are not payable under the Plan may again be made the subject of Awards under the Plan.
Other Equity-Based Awards that are LTIP Units or Common Units shall reduce the maximum aggregate
number of Shares that may be issued under the Plan on a one-for-one basis, i.e., each such unit
shall be treated as an award of a single Share. Shares into which LTIP Units and Common Units, as
applicable, are converted shall be issued under the Plan but shall not reduce the maximum aggregate
number of Shares that may be issued under the Plan.

          (b) Shares subject to Dividend Equivalent Rights, other than Dividend Equivalent Rights based
directly on the dividends payable with respect to Shares subject to Options or the dividends
payable on a number of Shares corresponding to the number of Phantom Shares or Performance Units
awarded, shall be subject to the limitation of Section 4.1(a). If any Phantom Shares, Dividend
Equivalent Rights or Other Equity-Based Awards under Section 10 are paid out in cash, then,
notwithstanding the first sentence of Section 4.1(a) above, the underlying Shares may again be made
the subject of Awards under the Plan.

          (c) In the event that any Option or other Award granted hereunder is exercised through the
tendering of Shares (either actually or by attestation) or by the withholding of Shares by the
Company, or withholding tax liabilities arising from such Option or other Award are satisfied by
the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the
Company, then only the number of Shares issued net of the Shares tendered or

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withheld shall be counted for purposes of determining the maximum number of Shares available
for grant under the Plan.

          (d) The certificates for Shares or other evidence of ownership issued hereunder may include
any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder
or under the Award Agreement, or as the Committee may otherwise deem appropriate.

          (e) Notwithstanding any provision hereunder, no Award hereunder shall be exercisable or
eligible for settlement if, as a result of either the ability to exercise or settle, or the
exercise or settlement of such Award, the Company would not satisfy the REIT Requirements in any
respect.

          4.2 Options.

          Subject to adjustments pursuant to Section 15, Incentive Stock Options with respect to an
aggregate of no more than 10% of the total Shares issued and outstanding as of the later of the
date of the IPO or the last closing date of any Shares sold solely to cover over-allotments in
connection with the IPO (on a fully diluted basis (assuming, if applicable, the exercise of all
outstanding options, the conversion of all warrants and convertible securities into Shares and the
exchange of all outstanding Common Units of the Partnership into Shares) and including Shares
solely to cover over-allotments, but excluding any Shares issued or issuable under the Plan) may be
granted under the Plan.

5. PROVISIONS APPLICABLE TO STOCK OPTIONS

          5.1 Grant of Option.

          Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by
the terms of the applicable Award Agreement: (a) determine and designate from time to time those
Eligible Persons to whom Options are to be granted and the number of Shares to be optioned to each
Eligible Person; (b) determine whether to grant Options intended to be Incentive Stock Options, or
to grant Non-Qualified Stock Options, or both (to the extent that any Option does not qualify as an
Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option); (c) determine
the time or times when and the manner and condition in which each Option shall be exercisable and
the duration of the exercise period; (d) designate each Option as one intended to be an Incentive
Stock Option or as a Non-Qualified Stock Option; and (e) determine or impose other conditions to
the grant or exercise of Options under the Plan as it may deem appropriate.

          5.2 Option Price.

          The Option Price shall be determined by the Committee on the date the Option is granted and
reflected in the Award Agreement, as the same may be amended from time to time. Any particular
Award Agreement may provide for different Option Prices for specified amounts of Shares subject to
the Option; provided that the Option Price with respect to each Option shall not be less than 100%
of the Fair Market Value of a Share on the day the Option is granted.

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          5.3 Period of Option and Vesting.

          (a) Unless earlier expired, forfeited or otherwise terminated, each Option shall expire in its
entirety upon the 10th anniversary of the date of grant or shall have such other term
(which may be shorter, but not longer, in the case of Incentive Stock Options) as is set forth in
the applicable Award Agreement (except that, in the case of an individual described in Section
422(b)(6) of the Code (relating to certain 10% owners) who is granted an Incentive Stock Option,
the term of such Option shall be no more than five years from the date of grant). The Option shall
also expire, be forfeited and terminate at such times and in such circumstances as otherwise
provided hereunder or under the Award Agreement.

          (b) Each Option, to the extent that the Grantee thereof has not had a Termination of Service
and the Option has not otherwise lapsed, expired, terminated or been forfeited, shall first become
exercisable (vested) according to the terms and conditions set forth in the Award Agreement, as
determined by the Committee at the time of grant. Unless otherwise provided in the Award Agreement
or herein, no Option (or portion thereof) shall ever be exercisable if the Grantee has a
Termination of Service before the time at which such Option (or portion thereof) would otherwise
have become exercisable, and any Option that would otherwise become exercisable after such
Termination of Service shall not become exercisable and shall be forfeited upon such termination.
Notwithstanding the foregoing provisions of this Section 5.3(b), Options exercisable pursuant to
the schedule set forth by the Committee at the time of grant may be fully or more rapidly
exercisable or otherwise vested at any time in the discretion of the Committee. Upon and after the
death of an Grantee, such Grantee’s Options, if and to the extent otherwise exercisable hereunder
or under the applicable Award Agreement after the Grantee’s death, may be exercised by the
Successors of the Grantee.

          5.4 Exercisability Upon and After Termination of Service of Grantee.

          (a) Subject to provisions of the Award Agreement, in the event a Grantee of an Option has a
Termination of Service other than by the Company or its Subsidiaries for Cause or other than by
reason of death or Disability, no exercise of a vested Option may occur after the expiration of the
three-month period to follow the termination, or if earlier, the expiration of the term of the
Option as provided under Section 5.3(a); provided that, if the Grantee should die after the
Termination of Service, such termination being for a reason other than Disability or Cause, but
while the Option is still in effect, the Option (if and to the extent otherwise exercisable by the
Grantee at the time of death) may be exercised until the earlier of (i) one year from the date of
the Termination of Service of the Grantee, or (ii) the date on which the term of the Option expires
in accordance with Section 5.3(a).

          (b) Subject to provisions of the Award Agreement, in the event the Grantee has a Termination
of Service on account of death or Disability, the Option to the extent vested may be exercised
until the earlier of (i) one year from the date of the Termination of Service of the Grantee, or
(ii) the date on which the term of the Option expires in accordance with Section 5.3.

          (c) Notwithstanding any other provision hereof, unless otherwise provided in the Award
Agreement, if the Grantee has a Termination of Service by the Company or a Subsidiary for Cause,
the Grantee’s Options, to the extent then unexercised, shall thereupon cease to be

10

 

exercisable and shall be forfeited forthwith (whether or not the Options were exercisable
previously).

          (d) Except as may otherwise be expressly set forth in this Section 5, and except as may
otherwise be expressly provided under the Award Agreement, no provision of this Section 5 is
intended to or shall permit the exercise of the Option to the extent the Option was not exercisable
before or upon Termination of Service.

          5.5 Exercise of Options.

          (a) Subject to vesting, restrictions on exercisability and other restrictions provided for
hereunder or otherwise imposed in accordance herewith, an Option may be exercised, and payment in
full of the aggregate Option Price made, by a Grantee only by written notice (in the form
prescribed by the Committee) to the Company or its designee specifying the number of Shares to be
purchased.

          (b) Without limiting the scope of the Committee’s discretion hereunder, the Committee may
impose such other restrictions on the exercise of Options (whether or not in the nature of the
foregoing restrictions) as it may deem necessary or appropriate.

          5.6 Payment.

          (a) The aggregate Option Price shall be paid in full upon the exercise of the Option. Payment
must be made by one of the following methods:

          (i) a certified or bank cashier’s check;

          (ii) subject to Section 12, the proceeds of a Company loan program or third-party sale
program or a notice acceptable to the Committee given as consideration under such a program,
in each case if permitted by the Committee in its discretion, if such a program has been
established and the Grantee is eligible to participate therein;

          (iii) if approved by the Committee in its discretion, Shares of previously owned Common
Stock having an aggregate Fair Market Value on the date of exercise equal to the aggregate
Option Price;

          (iv) other than as prohibited under Section 13(k) of the Exchange Act, if approved by
the Committee in its discretion, through the written election of the Grantee to have Shares
withheld by the Company from the Shares otherwise to be received, with such withheld Shares
having an aggregate Fair Market Value on the date of exercise equal to the aggregate Option
Price; or

          (b) by any combination of such methods of payment or any other method acceptable to the
Committee in its discretion.

          (c) Except in the case of Options exercised by certified or bank cashier’s check, the
Committee may impose limitations and prohibitions on the exercise of Options as it deems
appropriate, including, without limitation, any limitation or prohibition designed to avoid

11

 

accounting consequences which may result from the use of Common Stock as payment upon exercise
of an Option.

          (d) The Committee shall provide in the Award Agreement the extent (if any) to which an Option
may be exercised with respect to any fractional Share, including whether any fractional Shares
resulting from a Grantee’s exercise may be paid in cash.

          5.7 Stock Appreciation Rights.

          The Committee, in its discretion, may also grant a Stock Appreciation Right by permitting the
Grantee to elect to receive (taking into account, without limitation, the application of Section
409A of the Code, as the Committee may deem appropriate), upon the exercise of an Option, Shares
with an aggregate Fair Market Value equal to the excess of the Fair Market Value of the Shares with
respect to which the Option is being exercised over the aggregate Option Price, as determined as of
the day the Option is exercised; provided that, after consideration of possible accounting issues,
the Committee may permit a Stock Appreciation Right to be settled in a combination of Shares and
cash, or exclusively in cash, with an aggregate Fair Market Value (or, to the extent of payment in
cash, in an amount) equal to such excess. Without limiting the Committee’s discretion hereunder,
the Committee is expressly authorized to cause the grant of a Stock Appreciation Right (a) in
tandem with an otherwise exercisable underlying Option, by having the method of exercise under this
Section 5.7 apply in addition to other methods of exercise, as to all or a portion of any
particular Award under this Section 5, or (b) as a free-standing right, by having the method of
exercise under this Section 5.7 be the exclusive method of exercise.

          5.8 Exercise by Successors.

          An Option may be exercised, and payment in full of the aggregate Option Price made, by the
Successors of the Grantee only by written notice (as may be prescribed by the Committee) to the
Company specifying the number of Shares to be purchased. Such notice shall state that the
aggregate Option Price will be paid in full, or that the Option will be exercised as otherwise
provided hereunder, in the discretion of the Company or the Committee, if and as applicable.

          5.9 Nontransferability of Option.

          Except if otherwise provided in the applicable Award Agreement, each Option granted under the
Plan shall be nontransferable by the Grantee except by will or the laws of descent and distribution
of the state wherein the Grantee is domiciled at the time of his death; provided, however, that the
Committee may (but need not) permit other transfers, where the Committee concludes that such
transferability (a) does not result in accelerated U.S. federal income taxation, (b) does not cause
any Option intended to be an Incentive Stock Option to fail to be described in Section 422(b) of
the Code, (c) complies with applicable law, including securities laws, and (d) is otherwise
appropriate and desirable.

          5.10 Certain Incentive Stock Option Provisions.

          (a) In no event may an Incentive Stock Option be granted other than to employees of the
Company or a “subsidiary corporation” (as defined in Section 424(f) of the Code) or a

12

 

“parent corporation” (as defined in Section 424(e) of the Code) with respect to the Company.
The aggregate Fair Market Value, determined as of the date an Option is granted, of the Common
Stock for which any Grantee may be awarded Incentive Stock Options which are first exercisable by
the Grantee during any calendar year under the Plan (or any other stock option plan required to be
taken into account under Section 422(d) of the Code) shall not exceed $100,000. To the extent the
$100,000 limit referred to in the preceding sentence is exceeded, an Option will be treated as a
Non-Qualified Stock Option.

          (b) If Shares acquired upon exercise of an Incentive Stock Option are disposed of in a
disqualifying disposition within the meaning of Section 422 of the Code by an Grantee prior to the
expiration of either two years from the date of grant of such Option or one year from the transfer
of Shares to the Grantee pursuant to the exercise of such Option, or in any other disqualifying
disposition within the meaning of Section 422 of the Code, such Grantee shall notify the Company in
writing as soon as practicable thereafter of the date and terms of such disposition and, if the
Company or any Subsidiary thereupon has a tax-withholding obligation, shall pay to the Company or
any Subsidiary an amount equal to any withholding tax the Company or any Subsidiary is required to
pay as a result of the disqualifying disposition.

          (c) Without limiting the application of Section 5.2, the Option Price with respect to each
Incentive Stock Option shall not be less than 100%, or 110% in the case of an individual described
in Section 422(b)(6) of the Code (relating to certain 10% owners), of the Fair Market Value of a
Share on the day the Option is granted. In the case of an individual described in Section
422(b)(6) of the Code who is granted an Incentive Stock Option, the term of such Option shall be no
more than five years from the date of grant.

6. PROVISIONS APPLICABLE TO RESTRICTED STOCK

          6.1 Grant of Restricted Stock.

          (a) In connection with the grant of Restricted Stock, the Committee shall establish one or
more vesting periods with respect to the shares of Restricted Stock granted, the length of which
shall be determined in the discretion of the Committee and set forth in the applicable Award
Agreement, and/or whether the vesting of the Restricted Stock shall be conditioned upon the
satisfaction of Performance Goals pursuant to Section 11 or other conditions. Subject to the
provisions of this Section 6, the applicable Award Agreement and the other provisions of the Plan,
restrictions on Restricted Stock shall lapse if the Grantee satisfies all applicable employment or
other service requirements through the end of the applicable vesting period. The Committee also
may authorize the granting of Shares that are immediately vested, but otherwise subject to the
provisions of the Plan applicable to Restricted Stock.

          (b) Subject to the other terms of the Plan, the Committee may, in its discretion as reflected
by the terms of the applicable Award Agreement: (i) authorize the granting of Restricted Stock to
Eligible Persons; (ii) provide a specified purchase price for the Restricted Stock (whether or not
the payment of a purchase price is required by any state law applicable to the Company); (iii)
determine the restrictions applicable to Restricted Stock and (iv) determine or impose other
conditions, including any applicable Performance Goals, to the grant of Restricted Stock under the
Plan as it may deem appropriate.

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          6.2 Certificates.

          (a) In the discretion of the Committee, each Grantee of Restricted Stock may be issued a stock
certificate in respect of Shares of Restricted Stock awarded under the Plan. Each such certificate
shall be registered in the name of the Grantee. A “book entry” (by computerized or manual entry)
shall be made in the records of the Company to evidence an award of Restricted Stock where no
certificate is issued in the name of the Grantee. Each certificate, if any, shall be registered in
the name of the Grantee and may include any legend which the Committee deems appropriate to reflect
any restrictions on transfer hereunder or under the applicable Award Agreement, or as the Committee
may otherwise deem appropriate, and, without limiting the generality of the foregoing, shall bear a
legend referring to the terms, conditions, and restrictions applicable to such Award, substantially
in the following form:

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE
SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE SCHOTTENSTEIN REALTY
TRUST, INC. 2011 INCENTIVE COMPENSATION PLAN AND AN AWARD AGREEMENT ENTERED INTO BETWEEN THE
REGISTERED OWNER AND SCHOTTENSTEIN REALTY TRUST, INC. COPIES OF SUCH PLAN AND AWARD
AGREEMENT ARE ON FILE IN THE OFFICES OF SCHOTTENSTEIN REALTY TRUST, INC. AT 4300 EAST FIFTH
AVENUE, COLUMBUS, OHIO 43219.

          (b) The Committee shall require that any stock certificates evidencing such Shares be held in
custody by the Company or its designee until the restrictions thereon shall have lapsed, and may in
its discretion require that, as a condition of any Award of Restricted Stock, the Grantee shall
have delivered to the Company or its designee a stock power, endorsed in blank, relating to the
stock covered by such Restricted Stock Award. If and when such restrictions so lapse, any stock
certificates shall be delivered by the Company to the Grantee or his or her designee as provided in
Section 6.3 (and the stock power shall be so delivered or shall be discarded).

          6.3 Restrictions and Conditions.

          Unless otherwise provided by the Committee in an Award Agreement, the Shares of Restricted
Stock awarded pursuant to the Plan shall be subject to the following restrictions and conditions:

          (a) Subject to the provisions of the Plan and the applicable Award Agreements, during a period
commencing with the date of such Award and ending on the date the period of forfeiture with respect
to such Shares of Restricted Stock lapses, the Grantee shall not be permitted voluntarily or
involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or assign Shares of
Restricted Stock awarded under the Plan (or have such Shares attached or garnished). Subject to
the provisions of the applicable Award Agreements and clauses (c) and (d) below, the period of
forfeiture with respect to Shares of Restricted Stock granted hereunder shall lapse as provided in
the applicable Award Agreement. Notwithstanding the foregoing, unless otherwise expressly provided
by the Committee, the period of forfeiture with respect to such Shares of Restricted Stock shall
only lapse as to whole Shares.

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          (b) Except as provided in the foregoing clause (a), below in this clause (b), in Section 15,
or as otherwise provided in the applicable Award Agreement, the Grantee shall have, in respect of
the Shares of Restricted Stock, all of the rights of a stockholder of the Company, including the
right to vote the Shares, and, except as provided below, the right to receive any cash dividends;
provided, that, if provided in an Award Agreement, cash dividends on such Shares shall be (i) held
by the Company (unsegregated as a part of its general assets) until the period of forfeiture lapses
(and forfeited if the underlying Shares are forfeited), and paid over to the Grantee (without
interest) as soon as practicable after such period lapses (if not forfeited), or (ii) treated as
may otherwise be provided in an Award Agreement. Certificates for Shares (not subject to
restrictions hereunder) shall be delivered to the Grantee or his or her designee (or where
permitted, transferee) promptly after, and only after, the period of forfeiture shall lapse without
forfeiture in respect of such Shares of Restricted Stock.

          (c) Except as otherwise provided in the Grantee’s employment, severance or other similar
agreement with the Company or any Subsidiary or Award Agreement, and subject to clause (d) below,
if the Grantee has a Termination of Service by the Company or its Subsidiaries for Cause, or by the
Grantee for any reason other than his or her death or Disability, during the applicable period of
forfeiture, then (i) all Shares still subject to restriction shall thereupon, and with no further
action, be forfeited by the Grantee, and (ii) the Company shall pay to the Grantee as soon as
practicable (and in no event more than 30 days) after such termination an amount, if any, equal to
the lesser of (A) the amount paid by the Grantee, if any, for such forfeited Restricted Stock as
contemplated by Section 6.1, and (B) the Fair Market Value on the date of termination of the
forfeited Restricted Stock.

          (d) If and only to the extent provided in the Grantee’s employment, severance or other similar
agreement with the Company or any Subsidiary or Award Agreement, in the event the Grantee has a
Termination of Service on account of his or her death or Disability, the Grantee has a Termination
of Service for Good Reason, the Grantee has a Termination of Service by the Company or its
Subsidiaries for any reason other than Cause, or in the event of a Change in Control (regardless of
whether a termination follows thereafter), during the applicable period of forfeiture, then
restrictions under the Plan will immediately lapse on all Restricted Stock granted to the
applicable Grantee.

7. PROVISIONS APPLICABLE TO PHANTOM SHARES

          7.1 Grant of Phantom Shares.

          Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by
the terms of the applicable Award Agreement: (i) authorize the granting of Phantom Shares to
Eligible Persons and (ii) determine or impose other conditions to the grant of Phantom Shares under
the Plan as it may deem appropriate.

          7.2 Term.

          The Committee may provide in an Award Agreement that any particular Phantom Share shall expire
at the end of a specified term.

15

 

          7.3 Vesting.

          (a) Subject to the provisions of an applicable Award Agreement and Section 7.3(b), Phantom
Shares shall vest upon satisfaction of those conditions as provided in the applicable Award
Agreement, which conditions may include, without limitation, the satisfaction of service
requirements and/or Performance Goals.

          (b) Unless otherwise determined by the Committee in an applicable Award Agreement, the Phantom
Shares granted pursuant to the Plan shall be subject to the following vesting conditions:

          (i) Subject to the provisions of the Award Agreement and clause (ii) below, if the
Grantee has a Termination of Service by the Company and its Subsidiaries for Cause, all of
the Grantee’s Phantom Shares (whether or not such Phantom Shares are otherwise vested) shall
thereupon, and with no further action, be forfeited and cease to be outstanding, and no
payments shall be made with respect to such forfeited Phantom Shares.

          (ii) If an only to the extent provided in the provisions of the Grantee’s employment,
severance or other similar agreement with the Company or any Subsidiary or Award Agreement,
in the event the Grantee has a Termination of Service on account of his or her death or
Disability, the Grantee has a Termination of Service for Good Reason, the Grantee has a
Termination of Service by the Company or its Subsidiaries for any reason other than Cause,
or in the event of a Change in Control (regardless of whether a termination follows
thereafter), all outstanding Phantom Shares granted to such Grantee shall become immediately
vested.

          (iii) Unless otherwise provided in this Section 7.3 or in the provisions of the
Grantee’s employment, severance or other similar agreement with the Company or any
Subsidiary or Award Agreement, in the event that a Grantee has a Termination of Service, any
and all of the Grantee’s Phantom Shares which have not vested prior to or as of such
termination shall thereupon, and with no further action, be forfeited and cease to be
outstanding and the Grantee’s vested Phantom Shares shall be settled as set forth in Section
7.4.

          7.4 Settlement of Phantom Shares.

          (a) Except as otherwise provided by the Committee, each vested and outstanding Phantom Share
shall be settled by the transfer to the Grantee of one Share; provided, however, that, the
Committee at the time of grant (or, in the appropriate case, as determined by the Committee,
thereafter) may provide that, after consideration of possible accounting issues, a Phantom Share
may be settled (i) in cash at the applicable Phantom Share Value, (ii) in cash or by transfer of
Shares as elected by the Grantee in accordance with procedures established by the Committee (if
any) or (iii) in cash or by transfer of Shares as elected by the Company.

          (b) Payment (whether of cash or Shares) in respect of Phantom Shares shall be settled with a
single-sum payment or distribution by the Company; provided that, with respect to Phantom Shares of
a Grantee which have a common Settlement Date, the Committee (taking into

16

 

account, without limitation, Section 409A of the Code, as the Committee may deem appropriate)
may permit the Grantee to elect in accordance with procedures established by the Committee to
receive installment payments over a period not to exceed 10 years. If the Grantee’s Phantom Shares
are paid out in installment payments, such installment payments shall be treated as a series of
separate payments for purposes of Section 409A of the Code.

          (c)

          (i) Unless otherwise provided in the applicable Award Agreement, the “Settlement Date”
with respect to a Phantom Share is the first day of the month to follow the date on which
the Phantom Share vests; provided, however, that a Grantee may elect at or prior to grant,
if permitted by and in accordance with procedures to be established by the Committee, that
such Settlement Date will be deferred as elected by the Grantee to the first day of the
month to follow the Grantee’s Termination of Service, or such other time as may be permitted
by the Committee. Notwithstanding the prior sentence, all initial elections to defer the
Settlement Date shall be made in accordance with the requirements of Section 409A of the
Code. In addition, unless otherwise determined by the Committee, any subsequent elections
under this Section 7.4(c)(i) must, except as may otherwise be permitted under the rules
applicable under Section 409A of the Code, (A) not be effective for at least one year after
they are made, or, in the case of payments to commence at a specific time, be made at least
one year before the first scheduled payment and (B) defer the commencement of distributions
(and each affected distribution) for at least five years.

          (ii) Notwithstanding Section 7.4(c)(i), if and to the extent permitted under the rules
applicable under Section 409A of the Code, the Committee may provide that distributions of
Phantom Shares can be elected at any time in those cases in which the Phantom Share Value is
determined by reference to the portion of the Fair Market Value that is in excess of a base
value, rather than by reference to unreduced Fair Market Value.

          (iii) Notwithstanding the foregoing, the Settlement Date, if not earlier pursuant to
this Section 7.4(c), is the date of the Grantee’s death.

          (d) Notwithstanding the other provisions of this Section 7, taking into account, without
limitation, the application of Section 409A of the Code, as the Committee may deem appropriate, in
the event of a Change in Control, the Settlement Date shall be the date of such Change in Control
and all amounts due and vested (including any amounts that become vested as a result of the Change
in Control) with respect to Phantom Shares to a Grantee hereunder shall be paid as soon as
practicable (but in no event more than 30 days) after such Change in Control, unless such Grantee
elects otherwise in accordance with procedures established by the Committee.

          (e) Notwithstanding any other provision of the Plan, taking into account, without limitation,
the application of Section 409A of the Code, as the Committee may deem appropriate, a Grantee may
receive any amounts to be paid in installments as provided in Section 7.4(b) or deferred by the
Grantee as provided in Section 7.4(c) in the event of an “Unforeseeable Emergency.” For these
purposes, an “Unforeseeable Emergency” means an event that would

17

 

cause a severe financial hardship to the Grantee resulting from (i) a sudden and unexpected
illness or accident of the Grantee or “dependent,” as defined in Section 152(a) of the Code, of the
Grantee, (ii) loss of the Grantee’s property due to casualty, or (iii) other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control of the Grantee.
The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of
each case, but, in any case, payment may not be made to the extent that such hardship is or may be
relieved:

          (A) through reimbursement or compensation by insurance or otherwise,

          (B) by liquidation of the Grantee’s assets, to the extent the liquidation of such
assets would not itself cause severe financial hardship, or

          (C) by future cessation of the making of additional deferrals with respect to Phantom
Shares.

Without limitation, the need to send a Grantee’s child to college or the desire to purchase a home
shall not constitute an Unforeseeable Emergency. Distributions of amounts because of an
Unforeseeable Emergency shall be permitted to the extent reasonably needed to satisfy the emergency
need.

          7.5 Other Phantom Share Provisions.

          (a) Except as permitted by the Committee, rights to payments with respect to Phantom Shares
granted under the Plan shall not be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, garnishment, levy, execution, or other legal
or equitable process, either voluntary or involuntary; and any attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber, attach or garnish, or levy or execute on any right to
payments or other benefits payable hereunder, shall be void.

          (b) A Grantee may designate in writing, on forms to be prescribed by the Committee, a
Beneficiary or Beneficiaries to receive any payments payable after his or her death and may amend
or revoke such designation at any time. If a Grantee with a vested Phantom Share dies, such
Phantom Share shall be settled and the Phantom Share Value in respect of such Phantom Shares paid,
and any payments deferred pursuant to an election under Section 7.4(c) shall be accelerated and
paid, as soon as practicable (but no later than 60 days) after the date of death to such Grantee’s
Beneficiary or estate, as applicable.

          (c) The Committee may, taking into account, without limitation, the application of Section
409A of the Code, as the Committee may deem appropriate, establish a program under which
distributions with respect to Phantom Shares may be deferred for periods in addition to those
otherwise contemplated by the foregoing provisions of this Section 7. Such program may include,
without limitation, provisions for the crediting of earnings and losses on unpaid amounts, and, if
permitted by the Committee, provisions under which Grantees may select from among hypothetical
investment alternatives for such deferred amounts in accordance with procedures established by the
Committee.

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          (d) Notwithstanding any other provision of this Section 7, any fractional Phantom Share will
be paid out in cash at the Phantom Share Value as of the Settlement Date.

          (e) No Phantom Share shall be construed to give any Grantee any rights with respect to Shares
or any ownership interest in the Company. Except as may be provided in accordance with Section 8,
no provision of the Plan shall be interpreted to confer upon any Grantee of a Phantom Share any
voting, dividend or derivative or other similar rights with respect to any Phantom Share.

          7.6 Claims Procedures.

          (a) To the extent that the Plan is determined by the Committee to be subject to the Employee
Retirement Income Security Act of 1974, as amended, the Grantee, or his Beneficiary hereunder or
authorized representative, may file a claim for payments with respect to Phantom Shares under the
Plan by written communication to the Committee or its designee. A claim is not considered filed
until such communication is actually received. Within 90 days (or, if special circumstances
require an extension of time for processing, 180 days, in which case notice of such special
circumstances should be provided within the initial 90-day period) after the filing of the claim,
the Committee will either:

          (i) approve the claim and take appropriate steps for satisfaction of the claim; or

          (ii) if the claim is wholly or partially denied, advise the claimant of such denial by
furnishing to him a written notice of such denial setting forth (A) the specific reason or
reasons for the denial; (B) specific reference to pertinent provisions of the Plan on which
the denial is based and, if the denial is based in whole or in part on any rule of
construction or interpretation adopted by the Committee, a reference to such rule, a copy of
which shall be provided to the claimant; (C) a description of any additional material or
information necessary for the claimant to perfect the claim and an explanation of the
reasons why such material or information is necessary; and (D) a reference to this Section
7.6 as the provision setting forth the claims procedure under the Plan.

          (b) The claimant may request a review of any denial of his claim by written application to the
Committee within 60 days after receipt of the notice of denial of such claim. Within 60 days (or,
if special circumstances require an extension of time for processing, 120 days, in which case
notice of such special circumstances should be provided within the initial 60-day period) after
receipt of written application for review, the Committee will provide the claimant with its
decision in writing, including, if the claimant’s claim is not approved, specific reasons for the
decision and specific references to the Plan provisions on which the decision is based.

8. PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS

          8.1 Grant of Dividend Equivalent Rights.

          Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by
the terms of the Award Agreements, authorize the granting of Dividend Equivalent Rights to

19

 

Eligible Persons based on the regular cash dividends declared on Common Stock, to be credited
as of the dividend payment dates, during the period between the date an Award is granted, and the
date such Award is exercised, vests, is settled or expires, as determined by the Committee. Such
Dividend Equivalent Rights shall be converted to cash or additional Shares by such formula and at
such time and subject to such limitation as may be determined by the Committee. Dividend
Equivalent Rights granted with respect to Options shall be payable regardless of whether such
Option is exercised. If a Dividend Equivalent Right is granted in respect of another Award
hereunder, then, unless otherwise stated in the Award Agreement, or, in the appropriate case, as
determined by the Committee, in no event shall the Dividend Equivalent Right be in effect for a
period beyond the time during which the applicable portion of the underlying Award is in effect.

          8.2 Certain Terms.

          (a) The term of a Dividend Equivalent Right shall be set by the Committee in its discretion.

          (b) Unless otherwise determined by the Committee, except as contemplated by Section 8.4, a
Dividend Equivalent Right is exercisable or payable only while the Grantee is an Eligible Person.

          (c) Payment of the amount determined in accordance with Section 8.1 shall be in cash, in
Common Stock or a combination of both, as determined by the Committee.

          (d) The Committee may impose such employment-related conditions on the grant of a Dividend
Equivalent Right as it deems appropriate in its discretion.

          8.3 Other Types of Dividend Equivalent Rights.

          The Committee may establish a program under which Dividend Equivalent Rights of a type whether
or not described in the foregoing provisions of this Section 8 may be granted to Grantees. For
example, and without limitation, the Committee may grant a Dividend Equivalent Right in respect of
each Share subject to an Option or with respect to a Phantom Share, which right would consist of
the right (subject to Section 8.4) to receive a cash payment in an amount equal to the dividend
distributions paid on a Share from time to time.

          8.4 Deferral.

          The Committee may establish a program or programs (taking into account, without limitation,
the possible application of Section 409A of the Code, as the Committee may deem appropriate) under
which Grantees (a) will have Phantom Shares credited, subject to the terms of Sections 7.4 and 7.5
as though directly applicable with respect thereto, upon the granting of Dividend Equivalent
Rights, or (b) will have payments with respect to Dividend Equivalent Rights deferred. In the case
of the foregoing clause (b), such program may include, without limitation, provisions for the
crediting of earnings and losses on unpaid amounts, and, if permitted by the Committee, provisions
under which Grantees may select from among hypothetical investment alternatives for such deferred
amounts in accordance with procedures established by the Committee.

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9. PROVISIONS APPLICABLE TO PERFORMANCE UNITS

          9.1 Grant of Performance Units

          The Committee is authorized to grant Performance Units to any Eligible Person payable in cash,
Shares, other property, or any combination thereof, on terms and conditions established by the
Committee, subject to the provisions of Section 11 if and to the extent that the Committee shall,
in its sole discretion, determine that an Award of Performance Units shall be subject to those
provisions.

          9.2 Certain Terms

          The Performance Goals to be achieved during any Performance Period and the length of the
Performance Period shall be determined by the Committee upon the grant of each Performance Unit.

          9.3 Settlement of Performance Units

          Except as provided in Section 15(d) or as may be provided in the Grantee’s employment,
severance or other similar agreement with the Company or any Subsidiary or Award Agreement,
Performance Units shall be distributed only after the end of the relevant Performance Period. The
Performance Goals to be achieved for each Performance Period shall be conclusively determined by
the Committee and may be based upon the criteria set forth in Exhibit A hereto, or in the
case of an Award that the Committee determines shall not be subject to Section 11 hereof, any other
criteria that the Committee, in its sole discretion, shall determine should be used for that
purpose. The amount of the Award to be distributed shall be conclusively determined by the
Committee. Performance Units may be paid in a lump sum or in installments following the close of
the Performance Period or, in accordance with procedures established by the Committee and taking
into account the requirements of Section 409A of the Code, on a deferred basis.

10. OTHER EQUITY-BASED AWARDS

          10.1 Grant of Other Equity-Based Awards

          The Committee shall have the right to grant other Awards based upon the Common Stock having
such terms and conditions as the Committee may determine, including, without limitation, an Award
granted or denominated in Shares or units of Shares based upon certain conditions or denominated in
other equity interests, including, without limitation, equity interests of the Partnership, such as
LTIP units or Common Units, that are convertible or exchangeable into Shares; provided, however,
that the grant of LTIP Units or Common Units must satisfy the requirements of the Partnership
Agreement as in effect on the date of grant.

          10.2 Settlement of Other Equity-Based Awards

          Other Equity-Based Awards valued in whole or in part by reference to, or otherwise based on,
Common Stock shall be payable or settled in Shares, cash or a combination of Shares and cash, as
determined by the Committee in its discretion. Other Equity-Based Awards denominated as equity
interests other than Shares may be paid or settled in shares or units of

21

 

such equity interests or cash or a combination of both as determined by the Committee in its
discretion.

          10.3 Equity Holder Rights

          Except as may be provided in accordance with Section 8, a Grantee, as a result of receiving an
Other Equity-Based Award, shall not have any rights as an equity interest holder of the entity to
which such Other Equity-Based Award is denominated until, and then only to the extent that, the
Other Equity-Based Award is earned and settled in shares or units of such equity interest.

11. PERFORMANCE GOALS

          The Committee, in its discretion, may, in the case of any Awards that are potentially subject
to the deduction limitations imposed by Section 162(m) of the Code but that the Committee intends
to qualify for an exception from the limitation imposed by Section 162(m) of the Code at any time
that Section 162(m) applies to the Company, or otherwise (“Performance-Based Awards”), (a)
establish one or more Performance Goals (“Performance Goals”) as a precondition to the
issuance or vesting of Awards, and (b) provide, in connection with the establishment of the
Performance Goals, for predetermined Awards to those Grantees (who continue to meet all applicable
eligibility requirements) with respect to whom the applicable Performance Goals are satisfied. The
Performance Goals shall be based upon the criteria set forth in Exhibit A hereto which is
hereby incorporated herein by reference as though set forth in full. The Performance Goals shall
be established in a timely fashion such that they are considered pre-established for purposes of
the rules governing performance-based compensation under Section 162(m) of the Code at any time
that Section 162(m) applies to the Company, and compliance with such rules is sought. Prior to the
award or vesting, as applicable, of affected Awards hereunder, the Committee shall have certified
that any applicable Performance Goals, and other material terms of the Award, have been satisfied.
Performance Goals which do not satisfy the foregoing provisions of this Section 11 may be
established by the Committee with respect to Awards not intended to qualify for an exception from
the limitations imposed by Section 162(m) of the Code.

12. TAX WITHHOLDING

          12.1 In General.

          The Company, or a properly designated paying agent, shall be entitled to withhold from any
payments or deemed payments any amount of tax withholding determined by the Committee to be
required by law. Without limiting the generality of the foregoing, the Committee may, in its
discretion, require the Grantee to pay to the Company at such time as the Committee determines the
amount that the Committee deems necessary to satisfy the Company’s obligation to withhold federal,
state or local income or other taxes incurred by reason of (a) the exercise of any Option, (b) the
lapsing of any restrictions applicable to any Restricted Stock, (c) the receipt of a distribution
in respect of Phantom Shares, Performance Units or Dividend Equivalent Rights or (d) any other
applicable income-recognition event (for example, an election under Section 83(b) of the Code).

22

 

          12.2 Share Withholding.

          (a) Upon exercise of an Option, the Grantee may, if approved by the Committee in its
discretion, make a written election to have Shares then issued withheld by the Company from the
Shares otherwise to be received, or to deliver previously owned Shares, in order to satisfy the
liability for such withholding taxes. In the event that the Grantee makes, and the Committee
permits, such an election, the number of Shares so withheld or delivered shall have an aggregate
Fair Market Value on the date of exercise sufficient to satisfy the applicable withholding taxes.
Where the exercise of an Option does not give rise to an obligation by the Company to withhold
federal, state or local income or other taxes on the date of exercise, but may give rise to such an
obligation in the future, the Committee may, in its discretion, make such arrangements and impose
such requirements as it deems necessary or appropriate.

          (b) Upon lapsing of restrictions on Restricted Stock (or other income-recognition event), the
Grantee may, if approved by the Committee in its discretion, make a written election to have Shares
withheld by the Company from the Shares otherwise to be released from restriction, or to deliver
previously owned whole Shares (not subject to restrictions hereunder) (for which such holder has
good title, free and clear of all liens and encumbrances), in order to satisfy the liability for
such withholding taxes. In the event that the Grantee makes, and the Committee permits, such an
election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value
on the date of exercise sufficient to satisfy the applicable withholding taxes.

          (c) Upon the making of a distribution in respect of Phantom Shares, Performance Units or
Dividend Equivalent Rights, the Grantee may, if approved by the Committee in its discretion, make a
written election to have amounts (which may include Shares) withheld by the Company from the
distribution otherwise to be made, or to deliver previously owned whole Shares (not subject to
restrictions hereunder) (for which such holder has good title, free and clear of all liens and
encumbrances), in order to satisfy the liability for such withholding taxes. In the event that the
Grantee makes, and the Committee permits, such an election, any Shares so withheld or delivered
shall have an aggregate Fair Market Value on the date of exercise or settlement, as applicable,
sufficient to satisfy the applicable withholding taxes.

          12.3 Withholding Required.

          Notwithstanding anything contained in the Plan or the Award Agreement to the contrary, the
Grantee’s satisfaction of any tax-withholding requirements imposed by the Committee shall be a
condition precedent to the Company’s obligation as may otherwise be provided hereunder to provide
Shares to the Grantee and to the release of any restrictions as may otherwise be provided
hereunder, as applicable; and the applicable Option, Restricted Stock, Phantom Shares, Performance
Units or Dividend Equivalent Rights shall be forfeited upon the failure of the Grantee to satisfy
such requirements with respect to, as applicable, (a) the exercise of the Option, (b) the lapsing
of restrictions on the Restricted Stock (or other income-recognition event) or (c) distributions in
respect of any Phantom Share, Performance Unit or Dividend Equivalent Right.

23

 

13. REGULATIONS AND APPROVALS

          (a) The obligation of the Company to sell Shares with respect to an Award granted under the
Plan shall be subject to all applicable laws, rules and regulations, including all applicable
federal and state securities laws, and the obtaining of all such approvals by governmental agencies
as may be deemed necessary or appropriate by the Committee.

          (b) The Committee may make such changes to the Plan as may be necessary or appropriate to
comply with the rules and regulations of any government authority or to obtain tax benefits
applicable to an Award.

          (c) Each grant of Options, Restricted Stock, Phantom Shares (or issuance of Shares in respect
thereof), Performance Units (or issuance of Shares in respect thereof), Dividend Equivalent Rights
(or issuance of Shares in respect thereof), or Other Equity-Based Awards (or issuance of Shares in
respect thereof), is subject to the requirement that, if at any time the Committee determines, in
its discretion, that the listing, registration or qualification of Shares issuable pursuant to the
Plan is required by any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the issuance of Options, Shares of Restricted Stock, Phantom Shares, Performance
Units, Dividend Equivalent Rights, Other Equity-Based Awards or other Shares, no payment shall be
made, or Phantom Shares, or Shares issued or grant of Restricted Stock or other Award made, in
whole or in part, unless listing, registration, qualification, consent or approval has been
effected or obtained free of any conditions in a manner acceptable to the Committee.

          (d) In the event that the disposition of stock acquired pursuant to the Plan is not covered by
a then current registration statement under the Securities Act, and is not otherwise exempt from
such registration, such Shares shall be restricted against transfer to the extent required under
the Securities Act (and an appropriate legend to that effect shall be placed on stock certificates
evidencing such Shares), and the Committee may require any individual receiving Shares pursuant to
the Plan, as a condition precedent to receipt of such Shares, to represent to the Company in
writing that such Shares are acquired for investment only and not with a view to distribution and
that such Shares will be disposed of only if registered for sale under the Securities Act or if
there is an available exemption for such disposition.

          (e) Notwithstanding any other provision of the Plan, the Company shall not be required to take
or permit any action under the Plan or any Award Agreement which, in the good-faith determination
of the Company, would result in a material risk of a violation by the Company of Section 13(k) of
the Exchange Act.

14. INTERPRETATION AND AMENDMENTS; OTHER RULES

          The Committee may make such rules and regulations and establish such procedures for the
administration of the Plan as it deems appropriate. Without limiting the generality of the
foregoing, the Committee may (a) determine the extent, if any, to which Options, Phantom Shares,
Performance Units, or Shares (whether or not Shares of Restricted Stock), Dividend Equivalent
Rights or Other Equity-Based Awards shall be forfeited (whether or not such

24

 

forfeiture is expressly contemplated hereunder); (b) interpret the Plan and the Award
Agreements hereunder, with such interpretations to be conclusive and binding on all persons and
otherwise accorded the maximum deference permitted by law, provided that the Committee’s
interpretation shall not be entitled to deference on and after a Change in Control except to the
extent that such interpretations are made exclusively by members of the Committee who are
individuals who served as Committee members before the Change in Control; and (c) take any other
actions and make any other determinations or decisions that it deems necessary or appropriate in
connection with the Plan or the administration or interpretation thereof. In the event of any
dispute or disagreement as to the interpretation of the Plan or of any rule, regulation or
procedure, or as to any question, right or obligation arising from or related to the Plan, the
decision of the Committee, except as provided in clause (b) of the foregoing sentence, shall be
final and binding upon all persons. Unless otherwise expressly provided hereunder, the Committee,
with respect to any grant, may exercise its discretion hereunder at the time of the Award or
thereafter. Notwithstanding any provision in the Plan to the contrary, no Option or Stock
Appreciation Right (granted pursuant to Section 5.7) issued under the Plan may be amended to reduce
the Option Price or the exercise price of such Stock Appreciation Right below the Option Price or
exercise price as of the date the Option or Stock Appreciation Right was granted. The Board may
amend the Plan as it shall deem advisable, except that no amendment may adversely affect a Grantee
with respect to an Award previously granted without such Grantee’s written consent unless such
amendments are required in order to comply with applicable laws; provided, however, that the Plan
may not be amended without stockholder approval in any case in which amendment in the absence of
stockholder approval would cause the Plan to fail to comply with any applicable legal requirement
or applicable exchange or similar rule.

15. CHANGES IN CAPITAL STRUCTURE

          (a) If (i) the Company or its Subsidiaries shall at any time be involved in a merger,
consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or
substantially all of the assets or stock of the Company or its Subsidiaries or a transaction
similar thereto, (ii) any stock dividend, stock split, reverse stock split, stock combination,
reclassification, recapitalization or other similar change in the capital structure of the Company
or its Subsidiaries, or any distribution to holders of Common Stock other than cash dividends,
shall occur or (iii) any other event shall occur which in the judgment of the Committee
necessitates action by way of adjusting the terms of the outstanding Awards, then, subject to the
requirements of Section 409A of the Code:

     (A) the maximum aggregate number and kind of Shares which may be made subject to
Options and Dividend Equivalent Rights under the Plan, the maximum aggregate number and kind
of Shares of Restricted Stock that may be granted under the Plan, and the maximum aggregate
number of Phantom Shares, Performance Units and Other Equity-Based Awards which may be
granted under the Plan may be appropriately adjusted by the Committee in its discretion; and

     (B) the Committee shall take any such action as shall be necessary to maintain each
Grantees’ rights hereunder (including under their Award Agreements) with respect to Options,
Phantom Shares, Performance Units and Dividend Equivalent Rights and, as appropriate, Other
Equity-Based Awards under the Plan, so that they are substantially

25

 

proportionate to the rights existing in such Options, Phantom Shares, Performance Units
and Dividend Equivalent Rights and Other Equity-Based Awards under the Plan prior to such
event, including, without limitation, adjustments in (1) the number of Options, Phantom
Shares, Performance Units and Dividend Equivalent Rights and Other Equity-Based Awards under
the Plan granted, (2) the number and kind of shares or other property to be distributed in
respect of Options, Phantom Shares, Performance Units and Dividend Equivalent Rights and
Other Equity-Based Awards under the Plan, as applicable, (3) the Option Price and Phantom
Share Value, and (4) performance-based criteria established in connection with Awards (to
the extent consistent with Section 162(m) of the Code, as applicable); provided that, in the
discretion of the Committee, the foregoing clause (4) may also be applied in the case of any
event relating to a Subsidiary if the event would have been covered under this Section 15(a)
had the event related to the Company.

To the extent that such action shall include an increase or decrease in the number of Shares (or
units of other property then available) subject to all outstanding Awards, the number of Shares (or
units) available under Section 4 shall be increased or decreased, as the case may be,
proportionately, as may be determined by the Committee in its discretion.

          (b) Any Shares or other securities distributed to a Grantee with respect to Restricted Stock
or otherwise issued in substitution of Restricted Stock shall be subject to the restrictions and
requirements imposed by Section 6, including depositing the certificates therefor with the Company
together with a stock power and bearing a legend as provided in Section 6.2(a).

          (c) If the Company shall be consolidated or merged with another corporation or other entity,
each Grantee who has received Restricted Stock that is then subject to restrictions imposed by
Section 6.3(a) may be required to deposit with the successor corporation the certificates, if any,
for the stock or securities or the other property that the Grantee is entitled to receive by reason
of ownership of Restricted Stock in a manner consistent with Section 6.2(b), and such stock,
securities or other property shall become subject to the restrictions and requirements imposed by
Section 6.3(a), and the certificates therefor or other evidence thereof shall bear a legend similar
in form and substance to the legend set forth in Section 6.2(a).

          (d) If a Change in Control shall occur, then the Committee, as constituted immediately before
the Change in Control, may make such adjustments as it, in its discretion, determines are necessary
or appropriate in light of the Change in Control, provided that the Committee determines that such
adjustments do not have an adverse economic impact on the Grantee as determined at the time of the
adjustments. The Committee’s authority shall include, but not be limited to, having the discretion
to provide that upon a Change in Control, (i) all or a portion of any outstanding Options and Stock
Appreciation Rights shall become fully exercisable, (ii) all or a portion of any outstanding Awards
shall become vested and transferable, and all or a portion of any outstanding Performance Units and
incentive awards will be earned, (iii) all or a portion of any outstanding Awards may be
cancelled in exchange for a payment of cash, or all or a portion of any outstanding Awards may be
substituted for Awards that will substantially preserve the otherwise applicable terms of any
affected Awards previously granted under the Plan, or (iv) all or a portion of any outstanding Awards that are not vested (and are not required to vest
as a result of the Change in Control, pursuant to the terms of any Award Agreement or other
agreement with the Company or any Subsidiary) may be cancelled without any payment.

26

 

          (e) The judgment of the Committee with respect to any matter referred to in this Section 15
shall be conclusive and binding upon each Grantee without the need for any amendment to the Plan.

16. MISCELLANEOUS

          16.1 No Rights to Employment or Other Service.

          Nothing in the Plan or in any grant made pursuant to the Plan shall confer on any individual
any right to continue in the employ or other service of the Company or its Subsidiaries or
interfere in any way with the right of the Company or its Subsidiaries and its stockholders to
terminate the individual’s employment or other service at any time.

          16.2 No Fiduciary Relationship.

          Nothing contained in the Plan (including without limitation Sections 7.5(c) and 8.4), and no
action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a
trust of any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their
officers or the Committee, on the one hand, and the Grantee, the Company, its Subsidiaries or any
other person or entity, on the other.

          16.3 Compliance with Section 409A of the Code.

          (a) Any Award Agreement issued under the Plan that is subject to Section 409A of the Code may
include such additional terms and conditions as the Committee determines are required to satisfy
the requirements of Section 409A of the Code.

          (b) With respect to any Award issued under the Plan that is subject to Section 409A of the
Code, and with respect to which a payment or distribution is to be made upon a Termination of
Service, if the Grantee is determined by the Company to be a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code and any of the Company’s stock is publicly traded
on an established securities market or otherwise, such payment or distribution, to the extent it
would constitute a payment of nonqualified deferred compensation within the meaning of Section 409A
of the Code that is ineligible for an exemption from treatment as such, may not be made before the
date which is six months after the date of Termination of Service (to the extent required under
Section 409A of the Code). Any payments or distributions delayed in accordance with the prior
sentence shall be paid to the Grantee on the first day of the seventh month following the Grantee’s
Termination of Service.

          (c) To the extent compliance with Section 409A of the Code is intended, the Board and the
Committee shall administer the Plan, and exercise authority and discretion under the Plan,
consistent with the requirements of Section 409A of the Code or any exemption thereto.

          (d) The Company makes no representation or warranty and shall have no liability to any Grantee
or any other person if any provisions of this Plan or any Award Agreement issued pursuant hereto
are determined to constitute deferred compensation subject to Section 409A of the Code but do not
satisfy an exemption from, or the conditions of, such Section.

27

 

          16.4 No Fund Created.

          Any and all payments hereunder to any Grantee under the Plan shall be made from the general
funds of the Company (or, if applicable, a participating Subsidiary), no special or separate fund
shall be established or other segregation of assets made to assure such payments, and the Phantom
Shares (including for purposes of this Section 16.4 any accounts established to facilitate the
implementation of Section 7.4(c)) and any other similar devices issued hereunder to account for
Plan obligations do not constitute Common Stock and shall not be treated as (or as giving rise to)
property or as a trust fund of any kind; provided, however, that the Company (or a participating
Subsidiary) may establish a mere bookkeeping reserve to meet its obligations hereunder or a trust
or other funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes
or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The
obligations of the Company (or, if applicable, a participating Subsidiary) under the Plan are
unsecured and constitute a mere promise by the Company (or, if applicable, a participating
Subsidiary) to make benefit payments in the future and, to the extent that any person acquires a
right to receive payments under the Plan from the Company (or, if applicable, a participating
Subsidiary), such right shall be no greater than the right of a general unsecured creditor of the
Company (or, if applicable, a participating Subsidiary). Without limiting the foregoing, Phantom
Shares and any other similar devices issued hereunder to account for Plan obligations are solely a
device for the measurement and determination of the amounts to be paid to a Grantee under the Plan,
and each Grantee’s right in the Phantom Shares and any such other devices is limited to the right
to receive payment, if any, as may herein be provided.

          16.5 Notices.

          All notices under the Plan shall be in writing, and if to the Company, shall be delivered to
the Committee or mailed to its principal office, addressed to the attention of the Committee; and
if to the Grantee, shall be delivered personally, sent by facsimile transmission or mailed to the
Grantee at the address appearing in the records of the Company. Such addresses may be changed at
any time by written notice to the other party given in accordance with this Section 16.5.

          16.6 Indemnification.

          The Company shall indemnify the members of the Board and the members of the Committee in
connection with the performance of such person’s duties, responsibilities and obligations under the
Plan, to the maximum extent permitted by Maryland law.

          16.7 Captions.

          The use of captions in this Plan is for convenience. The captions are not intended to provide
substantive rights.

          16.8 Governing Law.

          THIS PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF OHIO
WITHOUT REGARD TO ANY PRINCIPLES

28

 

OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER
THAN THE STATE OF OHIO.

          16.9 Gender Neutral.

          Wherever used herein, a pronoun in the masculine gender shall be considered as including the
feminine gender unless the context clearly indicates otherwise.

29

 

EXHIBIT A

PERFORMANCE CRITERIA

          Awards intended to qualify as “performance-based” compensation under Section 162(m) of the
Code, may be payable upon the attainment of objective Performance Goals that are established by the
Committee and relate to one or more Performance Criteria, in each case on specified date or over
any period, up to 10 years, as determined by the Committee. Performance Criteria for
Performance-Based Compensation that the Committee determines shall be subject to Section 11 hereof
shall be based on the achievement of the specified levels of performance under one or more of the
measures set out below relative to the performance of one or more other corporations or indices.

          “Performance Criteria” includes the following business criteria (or any combination thereof)
with respect to one or more of the Company, any participating company or any division or operating
unit thereof:

          (i) pre-tax income,

          (ii) after-tax income,

          (iii) net income (meaning net income as reflected in the Company’s financial reports for the
applicable period, on an aggregate, diluted and/or per share basis),

          (iv) operating income,

          (v) cash flow,

          (vi) earnings per share,

          (vii) return on equity,

          (viii) return on invested capital or assets,

          (ix) cash and/or funds available for distribution,

          (x) appreciation in the fair market value of the Common Stock,

          (xi) return on investment,

          (xii) total return to stockholders (meaning the aggregate Common Stock price appreciation and
dividends paid (assuming full reinvestment of dividends) during the applicable period),

          (xiii) net earnings growth,

          (xiv) stock appreciation (meaning an increase in the price or value of the Common Stock after
the date of grant of an award and during the applicable period),

Exhibit A-1

 

          (xv) related return ratios,

          (xvi) increase in revenues,

          (xvii) net earnings,

          (xviii) changes (or the absence of changes) in the per share or aggregate market price of the
Company’s Common Stock,

          (xix) number of securities sold,

          (xx) earnings before any one or more of the following items: interest, taxes, depreciation or
amortization for the applicable period, as reflected in the Company’s financial reports for the
applicable period,

          (xxi) total revenue growth (meaning the increase in total revenues after the date of grant of
an award and during the applicable period, as reflected in the Company’s financial reports for the
applicable period),

          (xxii) the Company’s published ranking against its peer group of real estate investment trusts
based on total stockholder return,

          (xxiii) funds from operations, and

          (xxiv) adjusted or modified funds from operations.

          Performance Goals may be absolute amounts or percentages of amounts, may be relative to the
performance of other companies or of indexes or may be based upon absolute values or values
determined on a per-share basis.

          Except as otherwise expressly provided, all financial terms that are defined under Generally
Accepted Accounting Principles (“GAAP”) shall have the meanings used under GAAP and all
determinations shall be made in accordance with GAAP, as applied by the Company in the preparation
of its periodic reports to stockholders.

          To the extent permitted by Section 162(m) of the Code, unless the Committee provides otherwise
at the time of establishing the Performance Goals, for each fiscal year of the Company, there shall
be objectively determinable adjustments, as determined in accordance with GAAP, to any of the
Performance Criteria described above for one or more of the items of gain, loss, profit or expense:
(A) determined to be extraordinary or unusual in nature or infrequent in occurrence, (B) related to
the disposal of a segment of a business, (C) related to a change in accounting principle under
GAAP, (D) related to discontinued operations that do not qualify as a segment of a business under
GAAP, and (E) attributable to the business operations of any entity acquired by the Company during
the fiscal year.

Exhibit A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]