Document:

Exhibit 10.3

 

	

    	
CLIFFORD CHANCE US LLP
    

EXECUTION VERSION

 

BANK OF SCOTLAND PLC
 as Security Trustee and Agent

 

THE FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 HERETO
 as Lead Managers

 

WHITNEY LEASING LIMITED
 as Borrower

 

AIRCRAFT SPC-12, INC.
 as Borrower Parent

 

INTERNATIONAL LEASE FINANCE CORPORATION
 as Guarantor and Subordinated Lender

 

 

DEED OF AMENDMENT
 relating to
 AIRCRAFT FACILITY AGREEMENT
 Dated 18 May 2004

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 1.
    	
Interpretation
    	
2
    
	
 
    	
 
    	
 
    
	
Section 2.
    	
Amendment
    	
2
    
	
 
    	
 
    	
 
    
	
Section 3.
    	
Transaction Document/Confirmations
    	
3
    
	
 
    	
 
    	
 
    
	
Section 4.
    	
Counterparts
    	
3
    
	
 
    	
 
    	
 
    
	
Section 5.
    	
Benefit of Agreement
    	
3
    
	
 
    	
 
    	
 
    
	
Section 6.
    	
Governing Law and Jurisdiction
    	
3
    
	
 
    	
 
    	
 
    
	
Schedule 1
    	
The Lead Managers
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule 2
    	
Amendment Effective Date Notice
    	
 
    

 

 

THIS DEED OF AMENDMENT (this “Deed”) is made by way of deed on  8 May  2013.

 

BETWEEN:

 

(1)                                 BANK OF SCOTLAND PLC, a banking institution established under the laws of Scotland acting for the purposes of this Agreement through its offices at Level 6, 33 Old Broad Street, London EC2N 1HZ, England as security trustee for and on behalf of itself, the Lenders, the Lead Managers and the Agent (in such capacity the “Security Trustee”);

 

(2)                                 BANK OF SCOTLAND PLC, a banking institution established under the laws of Scotland acting for the purposes of this Agreement through its offices at Level 6, 33 Old Broad Street, London EC2N 1HZ, England as agent  for and on behalf of itself and the Lenders (in such capacity the “Agent”);

 

(3)                                 THE FINANCIAL INSTITUTIONS LISTED IN PART A OF SCHEDULE 1 HERETO, in their capacity as lead managers for the Lenders (the “Lead Managers”);

 

(4)                                 WHITNEY LEASING LIMITED, a company incorporated under the laws of Bermuda and having its registered office at The Chartis Building, 29 Richmond Road, Pembroke HM 08, Bermuda (the “Borrower”);

 

(5)                                 AIRCRAFT SPC-12, INC., a company incorporated under the laws of the State of California and having its principal place of business at c/o International Lease Finance Corporation, 10250 Constellation Boulevard, 34th Floor, Los Angeles, CA 90067, United States of America (the “Borrower Parent”);

 

(6)                                 INTERNATIONAL LEASE FINANCE CORPORATION, a corporation incorporated under the laws of the State of California and having its principal place of business at 10250 Constellation Boulevard, 34th Floor, Los Angeles, CA 90067, United States of America, as guarantor under the Aircraft Facility Agreement (in such capacity, the “Guarantor”); and

 

(7)                                 INTERNATIONAL LEASE FINANCE CORPORATION, a corporation incorporated under the laws of the State of California and having its principal place of business at 10250 Constellation Boulevard, 34th Floor, Los Angeles, CA 90067, United States of America, as subordinated lender under the Aircraft Facility Agreement (in such capacity, the “Subordinated Lender”).

 

WHEREAS:

 

The parties hereto have previously entered into the Aircraft Facility Agreement as defined below and have agreed to enter into this Deed for the purposes of amending certain terms thereof relating to the Guarantor.

 

NOW THEREFORE THIS DEED WITNESSES as follows:

 

1

 

Section 1.                                           Interpretation.

 

1.1                               Capitalised words and expressions used in this Deed but not expressly defined therein shall have the respective meanings ascribed thereto in the Aircraft Facility Agreement.

 

In this Deed:

 

“Aircraft Facility Agreement” means the aircraft facility agreement dated 18 May 2004 entered into between the Agent, the Lenders, the Lead Managers, the Security Trustee, the Borrower, the Borrower Parent, the Subordinated Lender and the Guarantor in respect of the financing of certain Airbus aircraft, as amended and supplemented from time to time.

 

“Amendment Effective Date” means the date determined in accordance with Clause 2.1 (Amendment Effective Date).

 

“Amendment Effective Date Notice” means a notice substantially in the form of Schedule 2 (Amendment Effective Date Notice).

 

1.2                               Any reference in this Deed to:

 

a “Clause” or “Schedule” shall, subject to any contrary indication, be construed as a reference to a clause or schedule hereof;

 

“dollar” and “$” means the lawful currency of the United States of America;

 

the “Agent”, the “Security Trustee” or any “Lender” shall be construed so as to include tits respective successors and assigns and transferees in accordance with their respective interests.

 

1.3                               Save where the contrary is indicated, any reference in this Deed to this Deed or any other agreement or document shall be construed as a reference to this Deed or, as the case may be, such other agreement or document as the same may have been, or may from time to time be, amended, varied, novated or supplemented in accordance with the provisions hereof and thereof.

 

1.4                               Clause, Part and Schedule headings are for ease of reference only.

 

1.5                               A statute shall be construed as a reference to such statute as the same may have been, or may from time to time be amended or re-enacted.

 

Section 2.                                           Amendments.

 

2.1                               The Amendment Effective Date shall be the date upon which the Guarantor, the Agent and Security Trustee issue the Amendment Effective Date Notice to the other Parties.

 

2.2                               On and with effect from the Amendment Effective Date, each of the parties hereto agrees that Clause 2.9 of Schedule 6 (Guarantor Covenants) of the Aircraft Facility Agreement

 

2

 

and the definition of Consolidated Tangible Net Worth in Clause 1 of Schedule 6 (Guarantor Covenants) of the Aircraft Facility Agreement are hereby deleted in their entirety.

 

2.3                               On and with effect from the Amendment Effective Date, each of the parties hereto agrees that, notwithstanding any rise in the ratings of the long term debt obligations of the Guarantor, a First Trigger Event and a Second Trigger Event shall nevertheless be deemed to remain in effect until the entire principal amount of the outstanding Advances and all other Secured Obligations then due and payable have been paid in full.

 

Section 3.                                           Transaction Document/Confirmations.

 

3.1                               Each of the parties hereto agrees that this Deed shall be a Transaction Document (as such term is defined in the Aircraft Facility Agreement) for the purposes of the Aircraft Facility Agreement.

 

3.2                               Each of the parties hereto agrees and acknowledges that the provisions of the Aircraft Facility Agreement and the other Transaction Documents (in each case as amended by this Deed) shall continue in force and effect, notwithstanding the amendments contemplated hereby.

 

3.3                               The Guarantor hereby agrees and acknowledges that, notwithstanding the amendments contemplated hereby, its guarantee obligations under the Aircraft Facility Agreement remain in full force and effect and extend to include the obligations under this Deed.

 

Section 4.                                           Counterparts.  This Deed may be executed in any number of counterparts and by the different parties hereto on separate counterparts each of which when executed and delivered shall constitute an original, but all the counterparts shall together constitute but one and the same instrument.

 

Section 5.                                           Benefit of Agreement.  This Deed shall enure for the benefit of each party hereto and their respective successors and assigns and transferees permitted in accordance with the relevant Transaction Documents but subject to the same restrictions as to assignments and transfers.

 

Section 6.                                           Governing Law and Jurisdiction.  The provisions of Clause 23 of the Aircraft Facility Agreement shall apply to this Deed and are incorporated herein by reference mutatis mutandis as if references therein to “this Agreement” or “any other Transaction Document” were to this Deed.

 

3

 

IN WITNESS WHEREOF this Deed has been duly executed as a deed and is, and is intended to be, delivered by the parties the day and year first above written.

 

 

	
EXECUTION PAGES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
THE AGENT AND SECURITY TRUSTEE
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
)
    	
/s/ Clare Gardner
    	
 
    
	
BANK OF SCOTLAND PLC
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Laura Sinclair
    	
 
    	
 
    	
 
    
	
Signature of   Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Laura Sinclair
    	
 
    	
 
    	
 
    

 

 

	
THE LEAD MANAGERS
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
)
    	
/s/ Mike Gear
    	
 
    
	
BANK OF SCOTLAND PLC
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
(as British Lead Manager)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Carl Irvine
    	
 
    	
 
    	
 
    
	
Signature of Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Carl Irvine
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
)
    	
/s/ Mike Gear
    	
 
    
	
BANK OF SCOTLAND PLC
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
(as French Lead Manager)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Carl Irvine
    	
 
    	
 
    	
 
    
	
Signature of Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Carl Irvine
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
)
    	
/s/ Mike Gear
    	
 
    
	
BANK OF SCOTLAND PLC
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
(as German Lead Manager)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Carl Irvine
    	
 
    	
 
    	
 
    
	
Signature of Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Carl Irvine
    	
 
    	
 
    	
 
    

 

 

	
THE BORROWER
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
THE COMMON SEAL of
    	
)
    	
/s/ Patrick Ross
    	
 
    
	
WHITNEY LEASING LIMITED
    	
)
    	
 
    
	
was hereunto affixed
    	
)
    	
/s/ Pamela S. Hendry
    	
 
    
	
in the presence of:
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Natasha Messer
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
Natasha Messer
    	
Director/Secretary
    
	
 
    	
 
    	
 
    
	
International Lease   Finance Corporation
    	
 
    	
 
    
	
10250 Constellation   Blvd Suite 3400
    	
 
    	
 
    
	
Los Angeles, CA   90067
    	
 
    	
 
    
					

 

 

	
THE BORROWER PARENT
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED by
    	
)
    	
/s/ Patrick Ross
    	
 
    
	
AIRCRAFT SPC-12, INC.
    	
)
    	
Patrick Ross
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Natasha Messer
    	
 
    	
 
    	
 
    
	
Signature of Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Natasha Messer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
International Lease Finance Corporation
    	
 
    	
 
    
	
10250 Constellation Blvd Suite 3400
    	
 
    	
 
    
	
Los Angeles, CA 90067
    	
 
    	
 
    
							

 

 

	
THE SUBORDINATED LENDER
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED by
    	
)
    	
 
    
	
INTERNATIONAL LEASE
    	
)
    	
/s/ Patrick Ross
    	
 
    
	
FINANCE CORPORATION
    	
)
    	
Patrick Ross
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Natasha Messer
    	
 
    	
 
    	
 
    
	
Signature of Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Natasha Messer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
International Lease Finance Corporation
    	
 
    	
 
    
	
10250 Constellation Blvd Suite 3400
    	
 
    	
 
    
	
Los Angeles, CA 90067
    	
 
    	
 
    
							

 

 

	
THE GUARANTOR
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED by
    	
)
    	
 
    
	
INTERNATIONAL LEASE
    	
)
    	
/s/ Patrick Ross
    	
 
    
	
FINANCE CORPORATION
    	
)
    	
Patrick Ross
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Natasha Messer
    	
 
    	
 
    	
 
    
	
Signature of Witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Natasha Messer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
International Lease Finance Corporation
    	
 
    	
 
    
	
10250 Constellation Blvd Suite 3400
    	
 
    	
 
    
	
Los Angeles, CA 90067
    	
 
    	
 
    
							

 

 

SCHEDULE 1

 

THE LEAD MANAGERS

 

Bank of Scotland plc (British Lead Manager)

 

Bank of Scotland plc (French Lead Manager)

 

Bank of Scotland plc (German Lead Manager)

 

 

SCHEDULE 2

 

AMENDMENT EFFECTIVE DATE NOTICE

 

To:                             THE LEAD MANAGERS, BORROWER, BORROWER PARENT, GUARANTOR AND SUBORDINATED LENDER

 

From:               BANK OF SCOTLAND PLC, as Agent and Security Trustee, and INTERNATIONAL LEASE FINANCE CORPORATION, as Guarantor

 

Date:      8 May 2013

 

Ladies and Gentlemen,

 

Re:          deed of amendment dated the date hereof, between each of the addressees of this Notice and Bank of Scotland PLC, as Agent and Security Trustee, relating to that certain aircraft facility agreement dated 18 May 2004 (the “Deed of Amendment”)

 

We refer to the Deed of Amendment and notify you that the Amendment Effective Date (as defined in the Deed of Amendment) is the date hereof.

 

This notice and any non contractual obligations arising out of or in connection with it are governed by English law.

 

Yours faithfully,

 

	
BANK OF SCOTLAND PLC, AS AGENT AND SECURITY TRUSTEE
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Clare Gardner
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Clare Gardner
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Manager
    	
 
    	
 
    
	
 
    	
 
    
	
INTERNATIONAL LEASE FINANCE CORPORATION, AS GUARANTOR
    
	
 
    	
 
    
	
By:
    	
/s/ Patrick Ross
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Patrick Ross
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Vice PresidentQuickLinks
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  Exhibit 10.2    
    

 
    CERTIFICATE OF DESIGNATION
  OF
  SERIES 2013 LTIP UNITS
  OF
  SIMON PROPERTY GROUP, L.P.    
    

        WHEREAS, Simon Property Group, L.P. (the "Partnership"), is authorized to issue
LTIP Units to executives of Simon Property Group, Inc., the General Partner of the Partnership (the "General Partner"), pursuant to
Section 9.3(a) of the Eighth Amended and Restated Limited Partnership Agreement of the Partnership (the "Partnership Agreement"). 

        WHEREAS,
the General Partner has determined that it is in the best interests of the Partnership to designate a series of LTIP units that are subject to the provisions of this Designation
and the related Award Agreement (as defined below); and 

        WHEREAS,
Sections 7.3 and 9.3(c) of the Partnership Agreement authorize the General Partner, without the approval of the Limited Partners, to set forth in an LTIP Unit Designation
(as defined in the Partnership Agreement) the performance conditions and economic rights including distribution and conversion rights of each class or series of LTIP Units. 

        NOW,
THEREFORE, the General Partner hereby designates the powers, preferences, economic rights and performance conditions of the Series 2013 LTIP Units. 

 
 

ARTICLE I
Definitions

        1.1    Definitions Applicable to LTIP Units.    Except as otherwise expressly provided herein, each capitalized term
shall have the meaning ascribed to it in the Partnership Agreement. In addition, as used herein: 

        "Adjustment Events" has the meaning provided in Section 2.2 hereof. 

        "Award Agreement" means the Series 2013 LTIP Unit Award Agreement approved by the Compensation Committee of the Board of Directors
of the General Partner and entered into with the holder of the number of Award LTIP Units specified therein. 

        "Award Date" means February 25, 2013. 

        "Award LTIP Units" means the number of LTIP Units issued pursuant to an Award Agreement and does not include the Earned LTIP Units or
Vested LTIP Units that the Award LTIP Units may become. 

        "Conversion Date" has the meaning provided in Section 4.3 hereof. 

        "Conversion Notice" has the meaning provided in Section 4.3 hereof. 

        "Earned LTIP Units" means the number of Award LTIP Units that are determined by the Committee to have been earned pursuant to an Award
Agreement. 

        "Economic Capital Account Balance" means, with respect to a holder of LTIP Units, (i) his Capital Account balance, plus the amount
of his or her share of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to his or her ownership of LTIP Units, divided by (ii) the number of LTIP
Units held by such holder. 

        "Full Conversion Date" means with respect to a holder of the LTIP Units, the date on which the Economic Capital Account Balance of such
holder first equals or exceeds the Target Balance. 

        "Liquidating Gain" means one hundred percent (100%) of the Profits of the Partnership realized from a transaction or series of
transactions that constitute a sale of substantially all of the assets of the 

 

Partnership
and one hundred percent (100%) of the Profits realized from a restatement of the Partnership's Capital Accounts in accordance with Treas. Reg.
§1.704-1(b)(2)(iv)(f). 

        "LTIP Units" means the Series 2013 LTIP Units created by this Designation. 

        "LTIP Unitholder" means a person that holds LTIP Units. 

        "Other LTIP Units" means "LTIP Units" (as defined in the Partnership Agreement) other than the Series 2013 LTIP Units designated
hereby. 

        "Partnership Unit Economic Balance" shall mean (i) the Capital Account balance of the General Partner plus the amount of the
General Partner's share of any Partner Minimum Gain or Partnership Minimum
Gain, in each case to the extent attributable to the General Partner's Partnership Units divided by (ii) the number of the General Partner's Partnership Units. 

        "Partnership Units" or "Units" has the meaning set forth in the Partnership Agreement. 

        "Special Distributions" means distributions designated as a capital gain dividend within the meaning of Section 875(b)(3)(C) of the
Code and any other distribution that the General Partner determines is not made in the ordinary course. 

        "Target Balance" means (i) $158.56, which is equal to the Partnership Unit Economic Balance as of the Award Date as determined
after Capital Accounts have been adjusted in accordance with Treas. Reg. §1.704-1(b)(2)(iv)(f), reduced by (ii) the amount of Special Distributions per Partnership Unit
attributable to the sale of assets subsequent to the Award Date, to the extent that such Special Distributions are not made with respect to the LTIP Units. 

        "Vested LTIP Units" means Earned LTIP Units that have satisfied the time-based or accelerated vesting requirements of an Award
Agreement. 

        1.2    Definitions Applicable to Other LTIP Units.    In determining the rights of the holder of the LTIP Units  vis-à-vis
the holders of Other LTIP Units, the foregoing definitions shall apply to the Other LTIP Units except
as expressly provided otherwise in a Certificate of Designation applicable to such Other LTIP Units. 

 
 

ARTICLE II
Economic Terms and Voting Rights

        2.1    Designation and Issuance.    The General Partner hereby designates a series of LTIP Units entitled the
Series 2013 LTIP Units. The number of Series 2013 LTIP Units that may be issued pursuant to this Designation is the total number of Award LTIP Units issued on the Award Date. The holders
of Award LTIP Units shall be deemed admitted as a Limited Partner of the Partnership on the Award Date. 

        2.2    Unit Equivalence.    Except as otherwise provided in this Designation, the Partnership shall maintain, at all
times, a one-to-one correspondence between the LTIP Units and Partnership Units, for conversion, distribution and other purposes, including without limitation complying with
the following procedures. If an Adjustment Event (as defined below) occurs, then the General Partner shall make a corresponding adjustment to the LTIP Units to maintain a
one-to-one conversion and economic equivalence ratio between the LTIP Units and the Partnership Units. The following shall be "Adjustment
Events": (A) the Partnership makes a distribution of Partnership Units or other equity interests in the Partnership on all outstanding Partnership Units (provided that
with respect to Award LTIP Units any adjustment as the result of a distribution made concurrently with a stock dividend paid by the General Partner in accordance with Rev. Proc. 2010-12 or
any similar policy or pronouncement of the Internal Revenue Service shall be made only to the extent that the Award LTIP Units do not receive ten percent 1(0%) of the distribution),
(B) the Partnership subdivides the outstanding Partnership Units into a greater number of units or combines the outstanding Partnership Units into a smaller number of units, or 

2

 

(C) the
Partnership issues any Partnership Units or other equity in the Partnership in exchange for its outstanding Partnership Units by way of a reclassification or recapitalization of its
Partnership Units. If more than one Adjustment Event occurs, the adjustment to the LTIP Units need be made only once using a single formula that takes into account each and every Adjustment Event as
if all Adjustment Events occurred simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events: (x) the issuance of Partnership Units from the Partnership's sale of
securities or in a financing, reorganization, acquisition or other business transaction, (y) the issuance of Partnership Units or Other LTIP Units pursuant to any employee benefit or
compensation plan or distribution reinvestment plan, or (z) the issuance of any Partnership Units to the General Partner in respect of a capital contribution to the Partnership of proceeds from
the sale of securities by the General Partner. If the Partnership takes an action affecting the Partnership Units other than actions specifically described above as constituting Adjustment Events and,
in the opinion of the General Partner, such action would require an adjustment to the LTIP Units to maintain the one-to-one correspondence described above, the General Partner
shall have the right to make such adjustment to the LTIP Units, to the extent permitted by law, in such manner and at such time as the General Partner, in its sole discretion, may determine to be
appropriate under the circumstances. If an adjustment is made to the LTIP Units as hereby provided, the Partnership shall promptly file in the books and records of the Partnership a certificate
setting forth such adjustment and a brief statement of facts requiring such adjustment, which certificate shall be conclusive evidence of the correctness of such adjustment absent manifest error.
Promptly after filing such certificate, the Partnership shall mail a notice to each LTIP Unitholder setting forth the adjustment to his or her LTIP Units and the effective date of such adjustment. 

        2.3    Distributions of Net Operating Cash Flow.    Award LTIP Units shall be treated as one-tenth of a
Partnership Unit for purposes of Sections 6.2(a) and (b)(iii) of the Partnership Agreement, except that Award LTIP Units shall not be entitled to any Special Distributions except as provided in
Section 2.4. Distributions with respect to an Award LTIP Unit issued during a fiscal quarter shall be prorated as provided in Section 6.2(c)(ii) of the Partnership Agreement. Earned LTIP
Units shall be entitled to the same rights to receive distributions as the Partnership Units. 

        2.4    Special Distributions.    Until the Economic Capital Account Balance of a holder's LTIP Units is equal to the
Target Balance, such holder shall be entitled to Special Distributions attributable to the sale of an asset of the Partnership only to the extent the Partnership determines that such asset has
appreciated in value subsequent to the Award Date. 

        2.5    Liquidating Distributions.    In the event of the dissolution, liquidation and winding up of the Partnership,
distributions to holders of LTIP Units shall be made in accordance with Section 8.2(d) of the Partnership Agreement. 

        2.6    Forfeiture.    Any Award LTIP Units and Earned LTIP Units that are forfeited pursuant to the terms of an Award
Agreement shall immediately be null and void and shall cease to be outstanding or to have any rights except as otherwise provided in the Award Agreement. 

        2.7    Voting Rights.    Holders of Award LTIP Units and Earned LTIP Units shall not be entitled to vote on any other
matter submitted to the Limited Partners for their approval unless and until such units constitute Vested LTIP Units. Vested LTIP Units will be entitled to be voted on an equal basis with the
Partnership Units. 

 
 

ARTICLE III
Tax Provisions

        3.1    Special Allocations of Profits.    Liquidating Gain shall be allocated as follows: (a) first, to the
holders of Preferred Units as provided in the Partnership Agreement, (b) second, if applicable, to the holders of Partnership Units as provided in by the Partnership Agreement until the
Partnership Unit Economic Balance is equal to the Target Balance and (c) third, to (i) the holders of the LTIP Units until 

3

 

their
Economic Capital Account Balance is equal to the Target Balance and (ii) the holders of Other LTIP Units until their economic capital account balances are equal to their target balances.
If an allocation of Liquidating Gain is not sufficient to achieve the objectives of the foregoing sentence in
full, Liquidating Gain, after giving effect to clauses (a) and (b) in such sentence, shall be allocated first, to the holders of the Vested LTIP Units and vested Other LTIP Units and,
second, to the holders of Unvested LTIP Units and non-vested Other LTIP Units, in each case, in proportion to the amounts necessary for such units to achieve the objectives of the
foregoing sentence; provided, that the holders of Other LTIP Units shall not receive an allocation of Liquidating Gain that they are not entitled to receive under the applicable certificate of
designation. A certificate of designation for Other LTIP Units may provide for a different allocation among such Other LTIP Units, but such different allocation shall not affect the amount allocated
to the LTIP Units vis-à-vis the Other LTIP Units. Notwithstanding the foregoing, Liquidating Gain shall not be
allocated to the holders of the LTIP Units to the extent such allocation would cause the LTIP Units to fail to qualify as a "profits interest" when granted. Once the Economic Capital Account Balance
has been increased to the Target Balance, no further allocations shall be made pursuant to this Section 3.1. Thereafter, LTIP Units shall be treated as Partnership Units with respect to the
allocation of Profits and Losses pursuant to Section 3.2. 

        If
any Unvested LTIP Units to which gain has been previously allocated under this Section are forfeited, the Capital Account associated with the forfeited Unvested LTIP Units will be
reallocated to the remaining LTIP Units at the time of forfeiture to the extent necessary to cause the Economic Capital Account Balance of such remaining LTIP Units to equal the Target Balance. To the
extent any gain is not reallocated in accordance with the foregoing sentence, such gain shall be forfeited. 

        3.2    Allocations with Respect to Award LTIP Units.    The following provisions apply to allocation of Profits and
Losses with respect to Award LTIP Units: 

        (a)   Except
to the extent to which a holder of the LTIP Units is entitled to a Distribution pursuant to Section 2.4, no Profits that the General Partner determines are
attributable to a Special Distribution or the sale of an asset shall be allocated to Award LTIP Units. 

        (b)   Except
as provided in Section 3.2(a), each Award LTIP Unit shall be treated as one-tenth of a Partnership Unit for purposes of allocation of Profits
and Losses pursuant to Section 6.1(b)(3) of the Partnership Agreement. 

        3.3    Allocations with Respect to Earned LTIP Units.    Earned LTIP Units shall be treated as Partnership Units with
respect to the allocation of Profits and Losses; provided, that Profits from the sale of assets shall be allocated to each holder of the LTIP Units as provided in Section 3.1 until his Economic
Capital Account Balance has been increased to the Target Balance. 

        3.4    Safe Harbor Election.    To the extent provided for in Regulations, revenue rulings, revenue procedures and/or
other IRS guidance issued after the date of this Designation, the Partnership is hereby authorized to, and at the direction of the General Partner shall, elect a safe harbor under which the fair
market value of any LTIP Units issued after the effective date of such Regulations (or other guidance) will be treated as equal to the liquidation value of such LTIP Units
(i.e., a value equal to the
total amount that would be distributed with respect to such interests if the Partnership sold all of its assets for the fair market value immediately after the issuance of such LTIP Units, satisfied
its liabilities (excluding any non-recourse liabilities to the extent the balance of such liabilities exceed the fair market value of the assets that secure them) and distributed the net
proceeds to the LTIP Unitholders under the terms of this Agreement). In the event that the Partnership makes a safe harbor election as described in the preceding sentence, each LTIP Unitholder hereby
agrees to comply with all safe harbor requirements with respect to transfers of such LTIP Units while the safe harbor election remains effective. In addition, upon a forfeiture of any LTIP Units by
any LTIP Unitholder, gross items of income, gain, loss or deduction shall be allocated to such LTIP Unitholder if and to the extent required by final Regulations promulgated after the effective 

4

 

date
of this Designation to ensure that allocations made with respect to all unvested LTIP Units are recognized under Code Section 704(b). 

 
 

ARTICLE IV
Conversion

        4.1    Conversion Right.    On and after the Full Conversion Date, the holder shall have the right to convert Vested
LTIP Units to Partnership Units on a one-to-one basis by giving notice to the Partnership as provided in Section 4.3 hereof. Prior to the Full Conversion Date, the
conversion of Vested LTIP Units shall be subject to the limitation set forth in Section 4.2. 

        4.2    Limitation on Conversion Rights Until the Full Conversion Date.    The maximum number of Vested LTIP Units that
may be converted prior to the Full Conversion Date is equal to the product of (a) the result obtained by dividing (1) the Economic Capital Account Balance of the Vested LTIP Units by
(2) the Target Balance of the Vested LTIP Units, in each case determined as of the effective date of the conversion and (b) the number of Vested LTIP Units. Immediately after each
conversion of Vested LTIP Units, the aggregate Economic Capital Account Balance of the remaining Vested LTIP Units shall be equal to (a) the aggregate Economic Capital Account Balance of all of
the holder's Vested LTIP Units immediately prior to conversion, minus (b) the aggregate Economic Capital Account Balance immediately prior to
conversion of the number of the holder's Vested LTIP Units that were converted. 

        4.3    Exercise of Conversion Right.    In order to exercise the right to convert a Vested LTIP Unit, the holder shall
give notice (a "Conversion Notice") in the form attached hereto as Exhibit A to the General
Partner not less than sixty (60) days prior to the date specified in the Conversion Notice as the effective date of the conversion (the "Conversion
Date"). The conversion shall be effective as of 12:01 a.m. on the Conversion Date without any action on the part of the holder or the Partnership. The holder may give a
Conversion Notice with respect to Unvested LTIP Units, provided that such Unvested LTIP Units become Vested LTIP Units on or prior to the Conversion Date. 

        4.4    Exchange for Shares.    An LTIP Unitholder may also exercise his right to exchange the Partnership Units to be
received pursuant to the Conversion Notice to Shares or cash, as selected by the General Partner, in accordance with Article XI of the Partnership Agreement; provided, however, such right shall
be subject to the terms and conditions of Article II of the Partnership Agreement and may not be effective until six (6) months from the date the Vested LTIP Units that were converted
into Partnership Units became fully vested. 

        4.5    Forced Conversion.    In addition, the General Partner may, upon not less than ten (10) days' notice to
an LTIP Unitholder, require any holder of Vested LTIP Units to convert them into Units subject to the limitation set forth in Section 4.2, and only if, at the time the General Partner acts,
there is a one-to-one conversion right between the LTIP Units and Partnership Units for conversion, distribution and all other purposes. The conversion shall be effective as of
12:01 a.m. on the date specified in the notice from the General Partner. 

        4.6    Notices.    Notices pursuant to this Article shall be given in the same manner as notices given pursuant to the
Partnership Agreement. 

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  EXHIBIT A    
    

 
    Conversion Notice    
    

        The undersigned hereby gives notice pursuant to Section 4.3 of the Certificate of Designation of Series 2013 LTIP Units
of Simon Property Group, L.P. (the "Designation") that he elects to convert      Vested LTIP Units (as defined in the Designation) into
an equivalent number of Partnership Units (as defined in the Eighth Amended and Restated Limited Partnership Agreement of Simon Property Group, L.P. (the "Partnership
Agreement")). The conversion is to be effective on                    , 20    . 

        IN
WITNESS WHEREOF, this Conversion Notice is given this    day of                    , 20    , to Simon Property
Group, Inc. in accordance with
Section 12.2 of the Partnership Agreement. 

QuickLinks

Exhibit 10.2

CERTIFICATE OF DESIGNATION OF SERIES 2013 LTIP UNITS OF SIMON PROPERTY GROUP, L.P.

ARTICLE I Definitions

ARTICLE II Economic Terms and Voting Rights

ARTICLE III Tax Provisions

ARTICLE IV Conversion

EXHIBIT A

Conversion Notice

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