Document:

Form of 2006 Long-Term Incentive Plan

 Exhibit 10.3 
 INSTITUTIONAL REIT, INC. 
 2006 LONG-TERM INCENTIVE PLAN 
 ARTICLE 1 
 ESTABLISHMENT AND PURPOSE

 Institutional REIT, Inc., a Maryland corporation (the “Company”), hereby establishes the Institutional REIT, Inc.
2006 Long-Term Incentive Plan (the “Plan”). The purposes of the Plan are to promote the long-term growth and profitability of the Company by: 
 (a) furnishing incentives to individuals chosen to receive share-based awards because the Company considers them capable of improving the Company’s operations and increasing its profits and 
 (b) encouraging selected persons to accept or continue employment with the Company or any Advisor or an Affiliate of the Company or the Advisor.

 The Plan permits the granting of stock options (including incentive stock options qualifying under Code section 422 and nonstatutory stock
options), stock appreciation rights, restricted or unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any combination of the foregoing. 
 ARTICLE 2 
 DEFINITIONS 
 Under this Plan, except where the context otherwise indicates, the following definitions apply: 
 (a) “Administrator” means the Conflicts Committee of the Board appointed by the Board that has authority to administer the Plan as
provided in Section 3 hereof. 
 (b) “Advisor” means the person or persons, if any, appointed, employed or contracted
with by the Company from time to time and responsible for directing or performing day-to-day business affairs or operations of the Company, including any person or persons to whom the Advisor subcontracts any of such functions. The initial Advisor
is Wells Capital, Inc. 
 (c) “Affiliate” means any person that controls, is controlled by, or is under common control with
another person. For this purpose, “control” shall be deemed to include ownership of 50% or more of the total combined voting power or value of al classes of stock or interests of an entity. 

 (d) “Award” means any stock option, stock appreciation right, stock award, phantom stock
award, performance award, or other stock-based award. 
 (e) “Board” means the Board of Directors of the Company.

 (f) “Change in Control” means: (i) the acquisition (other than from the Company) in one or more transactions by any
Person, as defined in this Section 2(f), of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or more of (A) the then outstanding shares of the securities
of the Company, or (B) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the “Company Voting Stock”); (ii) the closing of a sale or other
conveyance of all or substantially all of the assets of the Company; or (iii) the effective time of any merger, share exchange, consolidation, or other business combination involving the Company if immediately after such transaction persons who
hold a majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the entity owning 100% of such surviving entity) are not persons who, immediately prior to such transaction,
held the Company Voting Stock; provided, however, that for purposes of any Award or subplan that constitutes a “nonqualified deferred compensation plan,” within the meaning of Code section 409A, the Administrator, in its discretion, may
specify a different definition of Change in Control in order to comply with the provisions of Code section 409A. For purposes of this Section 2(f) only, a “Person” means any individual, entity or group within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the Company and by entities controlled by the Company or an underwriter of the Common Stock in a
registered public offering. 
 (g) “Code” means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder. 
 (h) “Common Stock” means shares of common stock of the Company, par value $0.01 per share.

 (i) “Fair Market Value” means, with respect to a share of the Company’s Common Stock for any purpose on a particular
date, the value determined by the Administrator in good faith. However, if the Common Stock is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended, and listed for trading on a national exchange or market,
“Fair Market Value” means, as applicable, (i) either the closing price or the average of the high and low sale price on the relevant date, as determined in the Administrator’s discretion, listed on the New York Stock
Exchange, the American Stock Exchange, or the Nasdaq Global Market; (ii) the last sale price on the relevant date quoted on the Nasdaq SmallCap Market; (iii) the average of the high bid and low asked prices on the relevant date quoted on
the Nasdaq OTC Bulletin Board Service or by the National Quotation Bureau, Inc. or a comparable service as determined in the Administrator’s discretion; or (iv) if the Common Stock is not listed on or quoted by any of the above, the
average of the closing bid and asked prices on the relevant date furnished by a professional market maker for the Common Stock, or by such other source, selected by the Administrator. If no public trading of the Common Stock occurs on the relevant
date but the shares are so listed, then Fair Market Value shall be determined as of the next preceding date on 
  

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 which trading of the Common Stock does occur. For all purposes under this Plan, the term “relevant date” as
used in this Section 2(i) means either the date as of which Fair Market Value is to be determined or the next preceding date on which public trading of the Common Stock occurs, as determined in the Administrator’s discretion. 

(j) “Grant Agreement” means a written document memorializing the terms and conditions of an Award granted pursuant to the Plan, which
document shall incorporate the terms of the Plan. 
 ARTICLE 3 
 ADMINISTRATION 
 (a) Administration of the Plan. The Plan shall be
administered by the Conflicts Committee of the Board as may be appointed by the Board from time to time. To the extent allowed by applicable state law, the Board by resolution may authorize an officer or officers to grant Awards (other than Stock
Awards) to other persons, and, to the extent of such authorization, such officer or officers shall be the Administrator. 
 (b) Powers of
the Administrator. The Administrator shall have all the powers vested in it by the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing
such Awards and establish programs for granting Awards. 
 The Administrator shall have full power and authority to take all other actions
necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to: (i) determine the eligible persons to whom, and the time or times at which Awards shall be granted; (ii) determine the types of
Awards to be granted; (iii) determine the number of shares to be covered by or used for reference purposes for each Award; (iv) impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator shall deem
appropriate; (v) modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided however, that, except as provided in Section 6 or 7(a) of the Plan, any modification that
would materially adversely affect any outstanding Award shall not be made without the consent of the holder); (vi) accelerate or otherwise change the time in which an Award may be exercised or becomes payable and waive or accelerate the lapse,
in whole or in part, of any restriction or condition with respect to such Award, including, but not limited to, any restriction or condition with respect to the vesting or exercisability of an Award following termination of any grantee’s
employment or other relationship with the Company; (vii) establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid with respect to a performance period; and (viii) for any purpose,
including but not limited to, qualifying for preferred tax treatment under foreign tax laws or otherwise complying with the regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer or terminate sub-plans,
and prescribe, amend and rescind rules and regulations relating to such sub-plans. 
  

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 The Administrator shall have full power and authority, in its sole and absolute discretion, to
administer, construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind and interpret such rules, regulations, agreements, guidelines and instruments for
the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the
extent the Administrator shall deem it desirable to carry it into effect. 
 (c) Non-Uniform Determinations. The Administrator’s
determinations under the Plan (including without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards) need
not be uniform and may be made by the Administrator selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated. 
 (d) Limited Liability. To the maximum extent permitted by law, no member of the Administrator shall be liable for any action taken or decision
made in good faith relating to the Plan or any Award thereunder. 
 (e) Indemnification. To the maximum extent permitted by law and by
the Company’s charter and by-laws, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan. 
 (f) Effect of Administrator’s Decision. All actions taken and decisions and determinations made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall
be in the Administrator’s sole and absolute discretion and shall be conclusive and binding on all parties concerned, including but not limited to the Company, its stockholders, any participants in the Plan, and their respective successors in
interest. 
 ARTICLE 4 
 SHARES AVAILABLE FOR THE PLAN; MAXIMUM AWARDS 
 On any given date, the maximum number of shares of Common Stock with respect
to which Awards may be made pursuant to the Plan shall be equal to the number of shares of Common Stock which, when added to the number of shares of Common Stock subject to other Awards outstanding as of such date and the number of shares of Common
Stock previously issued with respect to Awards granted under the Plan, shall not exceed 10% of the Company’s outstanding shares of Common Stock on a fully diluted basis as of such date; provided, however, that such number of shares may not
exceed 750,000 shares of Common Stock, subject to adjustments as provided in Section 7(a) of the Plan; and provided further, that no more than an aggregate of 750,000 shares of Common Stock may be issued pursuant to incentive stock options
intended to qualify under Code section 422. The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(a) of the Plan. If any Award, or portion of an Award, under the Plan expires
or terminates unexercised, becomes 
  

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 unexercisable, is settled in cash without delivery of shares of Common Stock, or is forfeited or otherwise terminated,
surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to the Company in connection with any Award (whether or not such surrendered shares were acquired pursuant to any Award), or if any shares
are withheld by the Company, the shares subject to such Award and the repurchased, surrendered and withheld shares shall thereafter be available for further Awards under the Plan; provided, however, that any such shares that are surrendered to or
repurchased or withheld by the Company in connection with any Award or that are otherwise forfeited after issuance shall not be available for purchase pursuant to incentive stock options intended to qualify under Code section 422. 
 Subject to adjustments as provided in Section 7(d) of the Plan, the maximum number of shares of Common Stock subject to Awards of any combination
that may be granted during any one fiscal year of the Company to any one individual under this Plan shall be limited to 750,000 shares. Such per-individual limit shall not be adjusted to effect a restoration of shares of Common Stock with respect to
which the related Award is terminated, surrendered or canceled. 
 ARTICLE 5 
 PARTICIPATION 
 The Administrator, in its sole discretion, may grant Awards
under the Plan to (a) employees of the Company, the Advisor, any Affiliate of the Company or the Advisor, or any entity that provides services to the Company, (b) managers or directors of the Advisor or of entities that provide services to
the Company or any Affiliate of the Company, and (c) persons who perform bona fide consulting or advisory services for the Company, the Advisor, any Affiliate or the Company. The Administrator may also grant Awards to a person in connection
with hiring, retention or otherwise, prior to the date the person first becomes eligible to participate in the Plan, provided that such Awards shall not become vested or exercisable, and no shares shall be issued to such person, prior to the date
the person first becomes eligible to participate in the Plan. 
 ARTICLE 6 
 TYPES OF AWARDS 
 The Administrator, in its sole discretion, establishes the
terms of all Awards granted under the Plan. Awards may be granted individually or in tandem with other types of Awards, concurrently with or with respect to outstanding Awards. All Awards are subject to the terms and conditions provided in the Grant
Agreement. The Administrator may permit or require a recipient of an Award to defer such individual’s receipt of the payment of cash or the delivery of Common Stock that would otherwise be due to such individual by virtue of the exercise of,
payment of, or lapse or waiver of restrictions respecting, any Award. If any such payment deferral is required or permitted, the Administrator shall, in its sole discretion, establish rules and procedures for such payment deferrals. 
  

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 (a) Stock Options. The Administrator may from time to time grant to eligible
participants Awards of incentive stock options as that term is defined in Code section 422 or nonstatutory stock options; provided, however, that Awards of incentive stock options shall be limited to employees of the Company or of any current
or hereafter existing “parent corporation” or “subsidiary corporation,” as defined in Code sections 424(e) and (f), respectively, of the Company and any other individuals who are eligible
to receive incentive stock options under the provisions of Code section 422. Options intended to qualify as incentive stock options under Code section 422 must have an exercise price at least equal to Fair Market Value as of the date of grant, but
nonstatutory stock options may be granted with an exercise price less than Fair Market Value. No stock option shall be an incentive stock option unless so designated by the Administrator at the time of grant or in the Grant Agreement evidencing such
stock option. The exercise price per Share under a Stock Option shall be determined by the Administrator, provided that the per share exercise price for any Stock Option shall not be less than the greater of (i) $11.00 or (ii) the Fair
Market Value as of the Grant Date. The term of each Stock Option shall be for the period as determined by the Administrator, provided that in no event shall the term of any Stock Option exceed a period of five years from the Grant Date.

 (b) Stock Appreciation Rights. The Administrator may from time to time grant to eligible participants Awards of Stock
Appreciation Rights (“SAR”). A SAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of (i) the excess of (A) the Fair
Market Value on the exercise date of one share of Common Stock over (B) the base price per share specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or portion thereof, which is exercised. The base price
per share specified in the Grant Agreement shall not be less than the lower of the Fair Market Value on the grant date or the exercise price of any tandem stock option Award to which the SAR is related. Payment by the Company of the amount
receivable upon any exercise of a SAR may be made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator. If upon settlement of the exercise of a SAR a grantee
is to receive a portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date. No fractional shares shall be used for
such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated. 
 (c) Stock Awards. The Administrator may from time to time grant restricted or unrestricted stock Awards to eligible participants in such amounts, on such terms and conditions, and for such consideration,
including no consideration or such minimum consideration as may be required by law, as it shall determine. A stock Award may be paid in Common Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion of the
Administrator. 
 (d) Phantom Stock. The Administrator may from time to time grant Awards to eligible participants denominated in
stock-equivalent units (“phantom stock”) in such amounts and on such terms and conditions as it shall determine. Phantom stock units granted to a participant shall be credited to a bookkeeping reserve account solely for accounting
purposes and shall not require 
  

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 a segregation of any of the Company’s assets. An Award of phantom stock may be settled in Common Stock, in cash, or
in a combination of Common Stock and cash, as determined in the sole discretion of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee shall not have the rights of a stockholder with respect to any shares
of Common Stock represented by a phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee. 
 (e)
Performance Awards. The Administrator may, in its discretion, grant performance awards which become payable on account of attainment of one or more performance goals established by the Administrator. Performance awards may be paid by the
delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator. Performance goals established by the Administrator may be based on the Company’s operating income or one
or more other business criteria selected by the Administrator that apply to an individual or group of individuals, a business unit, or the Company as a whole, over such performance period as the Administrator may designate. 
 (f) Profits Interest Units. The Administrator may from time to time grant an award of an interest in the profits and gains of Institutional
Operating Partnership, L.P., (“Institutional OP”) the Company’s operating partnership (such awards, “Profits Interest Units”), to eligible participants in such amount and subject to such terms and conditions as may be
determined by the Administrator; provided, however, that Profits Interest Units may only be issued to a participant for the performance of services to or for the benefit of Institutional OP in the participant’s capacity as a partner of
Institutional OP or in anticipation of such participant’s becoming a partner of Institutional OP. 
 (g) Other Stock-Based
Awards. The Administrator may from time to time grant other stock-based awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be
required by law, as it shall determine. Other stock-based awards may be denominated in cash, in Common Stock or other securities, in stock-equivalent units, in stock appreciation units, in securities or debentures convertible into Common Stock, or
in any combination of the foregoing and may be paid in Common Stock or other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the sole discretion of the Administrator. 
 ARTICLE 7 
 CHANGES IN CAPITAL
STRUCTURE 
 (a) Adjustments for Corporate Transactions and Other Events. 
 (i) Stock Dividend, Stock Split and Reverse Stock Split. In the event of a stock dividend of, or stock split or reverse stock split affecting, the
Common Stock, (A) the maximum number of shares of such Common Stock as to which Awards may be granted under this Plan and the maximum number of shares with respect to which Awards may be granted during any one fiscal year of the Company to any
individual, as provided in Section 4 of the Plan, and (B) the number of shares covered by and the exercise price and other terms of outstanding Awards, 
  

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 shall, without further action of the Board, be adjusted to reflect such event. The Administrator may make adjustments, in
its discretion, to address the treatment of fractional shares and fractional cents that arise with respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock split. 
 (ii) Non-Change in Control Transactions. Except with respect to the transactions set forth in Section 7(a)(i), in the event of any change
affecting the Common Stock, the Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in
Control of the Company, the Administrator, in its discretion and without the consent of the holders of the Awards, may make (A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which
Awards may be granted under the Plan, in the aggregate and with respect to any individual during any one fiscal year of the Company, as provided in Section 4 of the Plan; and (B) any adjustments in outstanding Awards, including but not
limited to modifying the number, kind and price of securities subject to Awards. 
 (iii) Change in Control Transactions. In the event
of any transaction resulting in a Change in Control of the Company, outstanding stock options and other Awards that are payable in or convertible into Common Stock under this Plan will terminate upon the effective time of such Change in Control
unless provision is made in connection with the transaction for the continuation or assumption of such Awards by, or for the substitution of the equivalent awards of, the surviving or successor entity or a parent thereof. In the event of such
termination, (A) the outstanding stock options and other Awards that will terminate upon the effective time of the Change in Control shall become fully vested immediately before the effective time of the Change in Control, and (B) the
holders of stock options and other Awards under the Plan will be permitted, immediately before the Change in Control, to exercise or convert all portions of such stock options or other Awards under the Plan that are then exercisable or convertible
or which become exercisable or convertible upon or prior to the effective time of the Change in Control. If, immediately before the Change in Control, no stock of the Company is readily tradeable on an established securities market or otherwise, and
the vesting of an Award or Awards pursuant to this Section 7(a)(iii) would be treated as a “parachute payment” (as defined in section 280G of the Code), then such Award or Awards shall not vest unless the requirements of the
shareholder approval exemption of section 280G(b)(5) of the Code have been satisfied with respect to such Award or Awards. 
 (iv) Unusual
or Nonrecurring Events. The Administrator is authorized to make, in its discretion and without the consent of holders of Awards, adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or
nonrecurring events affecting the Company, or the financial statements of the Company or of changes in applicable laws, regulations, or accounting principles, whenever the Administrator determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 
 (b) Substitution of
Awards in Mergers and Acquisitions. Awards may be granted under the Plan from time to time in substitution for awards held by employees, officers, consultants, 
  

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 directors, managers or general partners of entities who become or are about to become employees, officers, consultants or
directors of the Company or an Affiliate of the Company as the result of a merger or consolidation of the employing entity with the Company or an Affiliate of the Company, or the acquisition by the Company or an Affiliate of the Company of the
assets or stock of the employing entity. The terms and conditions of any substitute Awards so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to conform the
substitute Awards to the provisions of the awards for which they are substituted. 
 ARTICLE 8 
 AMENDMENT, MODIFICATION AND TERMINATION 
 Amendment, Modification and Termination of the Plan. The Board may terminate, amend or modify the Plan or any portion thereof at any time. Except as otherwise determined by the Board, termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 
 ARTICLE 9 
 GENERAL PROVISIONS 
 (a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company, the Advisor or an Affiliate or either, or make provision
satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company, the Advisor or an Affiliate of either may, to the
extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award. In the event that payment to the Company, the Advisor or an Affiliate of such tax obligations is made in shares
of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such purposes and shall not exceed in amount the minimum statutory tax withholding obligation. 
 (b) Loans. To the extent otherwise permitted by law, the Company, the Advisor or an Affiliate of either may make or guarantee loans to grantees to
assist grantees in exercising Awards and satisfying any withholding tax obligations. 
 (c) Transferability. Except as otherwise
determined by the Administrator, and in any event in the case of an incentive stock option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan shall be transferable by a grantee otherwise
than by will or the laws of descent and distribution. Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during the lifetime of the grantee, only by the
grantee or, during the period the grantee is under a legal disability, by the grantee’s guardian or legal representative. 
  

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 (d) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement
thereunder shall confer any right on an individual to continue in the service of the Company or shall interfere in any way with the right of the Company to terminate such service at any time with or without cause or notice and whether or not such
termination results in (i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individual’s interests under the Plan. 
 (e) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company and a grantee or any other person. To the extent that any grantee or other person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of
any unsecured general creditor of the Company. 
 (f) Governing Law. The validity, construction and effect of the Plan, of Grant
Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have any
interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the State of Maryland, without regard to its conflict of laws principles. 
 (g) Effective Date; Termination Date. The Plan is effective as of the date on which the Plan is adopted by the Board, subject to approval of the
stockholders within twelve months before or after such date. No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth anniversary of the effective date of the Plan, or if earlier, the tenth
anniversary of the date this Plan is approved by the stockholders. Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall remain in effect until such Awards have been satisfied
or terminated in accordance with the Plan and the terms of such Awards. 
 The foregoing is hereby acknowledged as being the Institutional REIT, Inc. 2006
Long-Term Incentive Plan as adopted by the Board of Directors of the Company on                          , 2006 and
approved by the sole stockholder on                          , 2006. 
  

			
	Institutional REIT, Inc.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 10Form of 2006 Independent Director Stock Option Plan

 Exhibit 10.4 
 INSTITUTIONAL REIT, INC. 
 2006 INDEPENDENT DIRECTOR STOCK OPTION PLAN 
 1. PURPOSE. The purpose of the Institutional REIT, Inc. 2006 Independent Director Stock Option Plan is to foster and promote the long-term financial
success of Institutional REIT, Inc. (the “Company”) by attracting and retaining outstanding non-employee directors by enabling them to participate in the Company’s growth through the granting of Options which entitle them to purchase
shares of the Company’s common stock, par value $0.01 per share. 
 2. DEFINED TERMS. Unless the context
clearly indicates otherwise, the following terms shall have the following meanings: 
 “Affiliate” of another person or entity (a
“Person”) includes only the following: (i) any Person directly or indirectly controlling, controlled by, or under common control with such other Person; (ii) any Person directly or indirectly owning, controlling, or holding with
the power to vote 10% or more of the outstanding voting securities of such other Person; (iii) any legal entity for which such Person acts as an executive officer, director, trustee, or general partner; (iv) any Person 10% or more of whose
outstanding voting securities are directly or indirectly owned, controlled, or held, with power to vote, by such other Person; and (v) any executive officer, director, trustee, or general partner of such other Person. An entity shall not be
deemed to control or be under common control with a Wells Capital, Inc.-sponsored program unless (i) it owns 10% or more of the voting equity interests of such program or (ii) a majority of the board (or equivalent governing body) of such
program is comprised of Affiliates of such entity. 
 “Board” means the Board of Directors of the Company.

 “Cause” shall mean any of the following acts by the Independent Director, as determined by the Committee: gross neglect of duty, prolonged
absence from duty without the consent of the Company, intentionally engaging in any activity that is in conflict with or adverse to the business or other interests of the Company, or willful misconduct, misfeasance or malfeasance of duty which is
reasonably determined to be detrimental to the Company. 
 “Code” means the Internal Revenue Code of 1986, as
amended. 
 “Committee” means the committee of the Board described in Section 3. 
 “Company” means Institutional REIT, Inc., a Maryland corporation. 
 “Common Stock” means the common stock, par value $0.01 per share, of the Company. 
 “Disability” means any illness or other physical or mental condition of an Independent Director that renders him or her incapable of performing as a director
of the Company, or any medically 
  

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 determinable illness or other physical or mental condition resulting from a bodily injury, disease or mental disorder
which, in the judgment of the Board, is permanent and continuous in nature. The Board may require such medical or other evidence as it deems necessary to judge the nature and permanency of an Independent Director’s condition. 
 “Effective Date” has the meaning set forth in Section 9(a) of the Plan. 
 “Fair Market Value,” on any date, means (i) if the Stock is listed on a securities exchange or is traded over the Nasdaq Global Market, the closing sales
price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange or traded over the Nasdaq Global Market, the mean between the bid and offered prices as quoted by Nasdaq for such
immediately preceding trading date, provided that if it is determined that the fair market value is not properly reflected by such Nasdaq quotations or if the Stock is not quoted on Nasdaq, Fair Market Value will be determined by such other method
as the Committee determines in good faith to be reasonable. 
 “Independent Director,” for purposes of this Plan, means each member of the Board
who is not associated and has not been associated within the last two years, directly or indirectly, with the Sponsor (as defined in the Charter) or Advisor (as defined in the Charter) of the Company. 
 (a) A director shall be deemed to be associated with the Sponsor or Advisor if he or she: 
 (i) owns an interest in the Sponsor, Advisor or any of their Affiliates; 
 (ii) is employed by the Sponsor,
Advisor or any of their Affiliates; 
 (iii) is an officer or director of the Sponsor, Advisor or any of their Affiliates; 
 (iv) performs services, other than as a director, for the Company; 
 (v) is a director for more than three REITs organized by the Sponsor or advised by the Advisor; or 
 (vi) has
any material business or professional relationship with the Sponsor, Advisor or any of their Affiliates. 
 (b) Notwithstanding the foregoing, and consistent
with (a)(v) above, serving as a director of or receiving director fees from or owning an interest in a REIT or other real estate program organized by the Sponsor or advised or managed by the Advisor or its Affiliates shall not, by itself, cause a
director to be deemed associated with the Sponsor or the Advisor. 
 (c) For purposes of determining whether or not a business or professional relationship
is material pursuant to (a)(vi) above, the gross revenue derived by the director from the Sponsor, Advisor and their Affiliates (excluding fees for serving as a director of the Company or other REIT or real estate program organized or advised or
merged by the Advisor or its Affiliates) shall be deemed material per se if it exceeds 5% of the director’s (i) annual gross revenue, derived from all sources, during either of the last two years, or (ii) net worth, on a fair market
value basis. 
  

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 (d) An indirect relationship shall include circumstances in which a director’s spouse, parent, child, sibling,
mother- or father-in-law, son- or daughter-in-law or brother- or sister-in-law is or has been associated with the Sponsor, Advisor any of their Affiliates or the Company. 
 “Option” means an option to purchase Common Stock granted under Section 6 of the Plan. Options granted under the Plan are not incentive stock options within the meaning of Section 422 of the
Internal Revenue Code. 
 “Plan” means the Institutional REIT, Inc. 2006 Independent Director Stock Option Plan,
as amended from time to time. 
 “Shares” means shares of the Company’s Common Stock. If there has been an adjustment or substitution pursuant
to Section 8, the term “Shares” shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted pursuant to Section 8. 
 3. ADMINISTRATION. The Plan shall be administered by the Company’s Conflicts Committee (as defined in the Company’s Charter). Subject to the
provisions of the Plan, the Committee shall be authorized to interpret the Plan, to establish, amend, and rescind any rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of
the Plan. The Committee’s interpretation of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it hereunder, shall be conclusive and binding. The Committee may appoint a plan administrator
to carry out the ministerial functions of the Plan. 
 4. ELIGIBILITY. All active Independent Directors shall
automatically be participants in the Plan. 
 5. SHARES SUBJECT TO THE PLAN. The Shares subject to the Plan may be in whole or in part from
authorized but unissued Shares or treasury Shares of the Company. Subject to adjustment in Section 8, a maximum of 100,000 Shares may be issued for all purposes under the Plan, and the initial adoption of the Plan by the Board of Directors of
the Company shall constitute a reservation of 100,000 authorized but unissued, or reacquired, Shares for issuance only upon the exercise of options granted under the Plan. In the event that any outstanding option granted under the Plan for any
reason expires or is terminated prior to the end of the period during which options may be granted under the Plan, the Shares allocable to the unexercised portion of such option may again be subject in whole or in part to any option granted under
the Plan. Options for fractional Shares shall not be granted. 
  

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 6. TERMS AND CONDITIONS OF OPTIONS. Options granted pursuant to the Plan shall be evidenced by Stock Option
Agreements in such form as approved by the Committee and which shall comply with and be subject to the following terms and conditions: 
 (a)
Grant. 
 (i) Initial Option. Effective on the later of (i) the date on which an Independent Director becomes a member of the
Board of Directors of the Company or (ii) the date this Plan is adopted by the shareholders of the Company, each Independent Director will automatically be awarded a stock option (an “Initial Option”) under the Plan to purchase 2,500
Shares. 
 (ii) Subsequent Options. Effective on the date of each annual meeting of shareholders of the Company, commencing with the
Company’s annual meeting in 2007, each Independent Director then in office will automatically be awarded a stock option (a “Subsequent Option”) to purchase 1,000 Shares. 
 The Options are not intended to qualify as “incentive stock options” as defined in Section 422 of the Code. 

(b) Limitations. Notwithstanding any other provision of this Plan, no Options shall be issued pursuant to Section 6(a) to the extent that the issuance of
such Options would (i) enable the Independent Directors as a group to hold more than 10% of the outstanding Shares if such Options were exercised; (ii) result in the Company being “closely-held” within the meaning of Code
Section 856(h); (iii) cause the Company to own, directly or constructively, 10% or more of the ownership interests in a tenant of the property of the Company (or of the property of one or more partnerships in which the Company is a
partner), within the meaning of Code Section 856(d)(2)(B); or (iv) cause, in the opinion of counsel to the Company, the Company to fail to qualify (or create, in the opinion of counsel to the Company, a material risk that the Company would
no longer qualify) as a real estate investment trust within the meaning of Code Section 856. In addition, no Option may be granted if the grant, when combined with Shares issuable upon exercise of outstanding options or warrants granted to the
Company’s Advisor, the Company’s directors and officers, or any of their Affiliates, would exceed 10% of the Company’s issued and outstanding Shares. To the extent that the issuance of Options pursuant to Section 5(a) would
violate any of these limitations, the number of Shares that may be purchased under the Options to be issued to each of the Independent Directors shall be reduced pro rata; provided, however, that no Option shall be granted under this Plan for less
than 1,000 shares. To the extent that the number of Shares which may be purchased under Options issued to an Independent Director is reduced in any year, or if any such Option is not granted in any year due to the fact that the number of Shares
subject to such Option would be reduced to a number less than 1,000, as a result of the application of these limitations, Options to purchase such Shares shall be issued to the Independent Director in any subsequent year in which issuance of such
Options, after taking into account the Options to be issued to the Independent Directors in such subsequent year under Section 6(a), would not violate the limitations imposed by this Section 6. To the extent that the issuance of an Option
is delayed until a subsequent year under this Section 6, the Option shall be treated for all purposes under this Plan as having been issued in such subsequent year, but such Option shall retain its character as an Initial Option or a Subsequent
Option for purposes of this Section 6. 
  

 4 

 (c) Exercise Price. The exercise price for each Initial Option granted shall be $12.00 per Share. The exercise
price for each Subsequent Option granted shall be the greater of (i) $12.00 per Share, or (ii) the Fair Market Value of a share on the last business day preceding the date of any annual meeting of shareholders of the Company. 

(d) Medium and Time of Payment. The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, including,
without limitation, cash, Shares, or other property (including “cashless exercise” arrangements), and the methods by which Shares shall be delivered or deemed to be delivered to Participants; provided, however, that if Shares are used to
pay the exercise price of an Option, such Shares must have been held by the Participant for at least six months. 
 (e) Term. Each option granted
under the Plan shall, to the extent not previously exercised, terminate and expire on the date ten (10) years after the date of grant of the option, unless earlier terminated as provided hereinafter in Section 6(g). 
 (f) Exercisability. Initial Options shall vest and become exercisable as follows: (i) 20% of the Shares on the date of grant, (ii) an additional 20% of
the Shares on each anniversary following the date of grant for a period of four (4) years until 100% of the Shares become exercisable. Subsequent Options shall become fully exercisable on the second (2nd) anniversary of the date on which
each such Subsequent Option was granted. 
 (g) Lapse of Options. Unless otherwise determined by the Committee, any Options which are unvested at the
time an Independent Director ceases to be a Director will lapse immediately upon such termination of directorship. Options granted hereunder shall lapse on the first to occur of (i) the tenth (10th) anniversary of the date of grant,
(ii) the removal for Cause of the Independent Director as a Director of the Company, or (iii) three (3) months following the date the Independent Director ceases to be a Director of the Company for any reason, except death or
Disability. In the event that an Independent Director ceases to be a Director of the Company due to his or her death or Disability, Options granted to such Independent Director under this Plan shall continue to be exercisable for a period of one
(1) year after death or the disabling event, provided that the death or disabling event occurs while the person is an Independent Director and prior to his or her removal for Cause, resignation or ceasing to be a Director of the Company for any
other reason and the Option is otherwise exercisable on the date of the death or disabling event. 
 (h) Notwithstanding any other terms or provisions herein
to the contrary, no Option may be exercised if, in the opinion of the Company’s counsel, such exercise would jeopardize the Company’s status as a real estate investment trust under the Code. 
  

 5 

 7. NONTRANSFERABILITY; BENEFICIARIES. No Option awarded under the Plan shall be transferable by the
Independent Director otherwise than by will or, if the Independent Director dies intestate, by the laws of descent and distribution. All Options exercised during the Independent Director’s lifetime shall be exercised only by the Independent
Director or his legal representative; provided, however, that in the case of the Independent Director’s Disability, the Option may be exercised by the Independent Director’s guardian or legal representative. Any transfer contrary to this
Section 6 will nullify the Option. Each Independent Director may name, from time to time, any beneficiary or beneficiaries (who may be named contingently or successively) who may exercise such Options in the event of the Independent
Director’s death, subject to Section 6(g). 
 8. ADJUSTMENT UPON CERTAIN CHANGES. In the event of a corporate event or transaction
involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares), the authorization
limits under Sections 5 and 6 shall be adjusted proportionately, and the Committee may adjust Options to preserve the benefits or potential benefits of the Options. Action by the Committee may include: (i) adjustment of the number and kind of
shares which may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Options; (iii) adjustment of the exercise price under Section 6(c), the exercise price of outstanding Options, or
the measure to be used to determine the amount of the benefit payable on an Option; and (iv) any other adjustments that the Committee determines to be equitable. In addition, in the event of the Company’s dissolution, liquidation,
reorganization, merger or consolidation as a result of which the Company is not the surviving corporation or upon the sale of all or substantially all of the Company’s properties, the Plan will terminate, and any outstanding Options will
terminate and be forfeited. In such an event, the Committee may, in its sole discretion, provide (i) that Options will be assumed by another party to a transaction or otherwise be equitably converted or substituted with options covering the
stock of the successor corporation (or a parent corporation thereof) in connection with such transaction, (ii) that the Plan and the Options will be continued under their original terms, or (iii) that outstanding Options may be settled by
payment in cash, cash equivalents, or shares of common stock equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise price of the Option. The Committee’s
determination need not be uniform and may be different for different participants whether or not such participants are similarly situated. Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a
declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits under Sections 5 and 6 shall automatically be adjusted proportionately, and the Shares
then subject to each Option shall automatically be adjusted proportionately without any change in the aggregate purchase price therefor. 
 9.
EFFECTIVE DATE AND TERMINATION OF PLAN. 
 (a) Effective Date. The Plan became effective as of
                         , 2006, the date upon which it was approved by the Board and shareholders of the Company
(the “Effective Date”). 
  

 6 

 (b) Termination. The Plan shall terminate on the tenth anniversary of the Effective Date. The termination of the
Plan on such date shall not affect the validity of any Option outstanding on the date of termination. 
 10. AMENDMENT. The Committee may, at
any time and from time to time, amend, modify, suspend or terminate the Plan or any portion thereof in such respects as the Committee may deem advisable in order that any Options thereunder shall conform to or otherwise reflect any change in
applicable laws or regulations, or to permit the Company or the Independent Directors to enjoy the benefits of any change in applicable laws or regulations, or in any other respect the Committee may deem to be in the best interests of the Company;
provided, however, that no such amendment shall without shareholder approval to the extent required by law, or any agreement or the rules of any national stock exchange upon which the Shares may be listed or of any national market system on which
Shares may be traded: (a) except as provided in Section 8, materially increase the number of Shares which may be issued under the Plan; (b) materially modify the requirements as to eligibility for participation in the Plan;
(c) materially increase the benefits accruing to Independent Directors under the Plan; or (d) extend the termination date of the Plan. No such amendment, suspension or termination shall impair the rights of Independent Directors affected
thereby. 
 11. TAX WITHHOLDING. The Company shall have the power to withhold, or require an Independent Director to remit to the Company, an
amount sufficient to satisfy federal, state, and local taxes required by law to be withheld with respect to any exercise or other taxable event arising as a result of the Plan. If Shares are surrendered to the Company to satisfy withholding
obligations in excess of the minimum required withholding obligation, such Shares must have been held by the Independent Director for at least six months. With respect to withholding required upon any taxable event under the Plan, the Committee may,
at the time the Option is granted or thereafter, require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the Option Shares having a fair market value on the date of withholding equal to the
minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. 
 12. LISTING, REGISTRATION AND LEGAL COMPLIANCE. Each Option shall be subject to the requirement that if at any time counsel to the Company shall determine that the listing, registration or qualification thereof or of any
shares or other property subject thereto upon any securities exchange or under any foreign, federal or state securities or other law or regulation, or the consent or approval of any governmental body or the taking of any other action to comply with
or otherwise, with respect to any such law or regulation, is necessary or desirable as a condition to or in connection with the aware of such Option or the issue, delivery or purchase of shares or other property thereunder, no such Option may be
exercised or paid in shares or other property unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained free of any conditions not acceptable to the Company, and the holder of the award
will supply the Company with such certificates, representations and 
  

 7 

 information as the Company shall request and shall otherwise cooperate with the Company in effecting or obtaining such
listing, registration, qualification, consent, approval or other action. If the Company, as part of an offering of securities or otherwise, finds it desirable because of foreign, federal or state legal or regulatory requirements to reduce the period
during which Options may be exercised, the Committee may, without the holders’ consent, so reduce such period on not less than 15 days written notice to the holders thereof. 
 13. RIGHTS OF INDEPENDENT DIRECTORS. Nothing in the Plan shall confer upon any Independent Director any right to serve as an Independent Director for any period of time or to continue serving at his
present or any other rate of compensation. 
 14. GENDER AND NUMBER. Except when otherwise indicated by the context, words in the masculine
gender when used in the Plan shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular. 
 15.
REQUIREMENTS OF LAW; GOVERNING LAW. The granting of Options under this Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be
required. The Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Maryland. 
 The foregoing
is hereby acknowledged as being the Institutional REIT, Inc. 2006 Independent Director Stock Option Plan as adopted by the Board of Directors of the Company on
                         , 2006. 
  

			
	Institutional REIT, Inc.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 8

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