Document:

Exhibit 10.4

 

PROMISSORY NOTE

(Commercial-Single
Advance-Variable Rate)

 

DATE AND
PARTIES. The date of
this Promissory Note (Note) is February 28, 2003. The parties and their
addresses are:

 

	
   

  	
  LENDER:

  
	
   

  	
   

  	
  HOME
  FEDERAL BANK

  
	
   

  	
   

  	
  225 S MAIN AVE

  
	
   

  	
   

  	
  SIOUX FALLS, South Dakota
  57104

  
	
   

  	
   

  	
  Telephone:        (605)
  336-2470

  
	
   

  	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  	
  GREAT
  PLAINS ETHANOL LLC

  
	
   

  	
   

  	
  a South Dakota Limited
  Liability Company

  
	
   

  	
   

  	
  27716 462ND AVENUE

  
	
   

  	
   

  	
  CHANCELLOR, South Dakota
  57015

  

 

1.      DEFINITIONS. As used in this Note, the terms have the
following meanings:

 

A.  Pronouns. The pronouns “I,’ “me,” and “my” refer to
each Borrower signing this Note, individually and together with their heirs,
successors and assigns, and each other person or legal entity (including
guarantors, endorsers, and sureties) who agrees to pay this Note. “You” and
“Your” refer to the Lender, with its participants or syndicators, successors
and assigns, or any person or company that acquires an interest in the Loan.

 

B.  Note. Note refers to this document, and any
extensions, renewals, modifications and substitutions of this Note.

 

C.  Loan. Loan refers to this transaction generally,
including obligations and duties arising from the terms of all documents
prepared or submitted for this transaction such as applications, security
agreements, disclosures or notes, and this Note.

 

D.  Property. Property is any property, real, personal or
intangible, that secures my performance of the obligations of this Loan.

 

E.   Percent. Rates and rate change limitations are
expressed as annualized percentages.

 

2.      PROMISE
TO PAY. For value received, I promise to pay you or your order, at
your address, or at such other location as you may designate, the principal sum
of $1,600,000.00 (Principal) plus interest from February 28, 2003 on the unpaid
Principal balance until this Note matures or this obligation is accelerated.

 

3.      INTEREST. Interest  will accrue on the
unpaid Principal balance of this Note at the rate of 6.250 percent (Interest Rate) until March 1, 2003, after which
time it may change as described in the Variable Rate subsection.

 

A.  Post-Maturity Interest. After maturity or acceleration, interest will
accrue 150 BASIS POINTS OVER THE CURRENT INTEREST RATE.

 

B.  Maximum Interest Amount. Any amount assessed or collected as interest
under the terms of this Note or obligation will be limited to the Maximum
Lawful Amount of interest allowed by state or-federal law. Amounts collected in
excess of the Maximum Lawful Amount will be applied first to the unpaid
Principal balance. Any remainder will be refunded to me.

 

1

 

C.  Statutory Authority. The amount assessed or collected on this
Note is authorized by the South Dakota usury laws under S.D. Codified Laws Ann.
§ 54-3-13 and 54-3-14.

 

D.  Accrual. During the scheduled term of this Loan
interest accrues using an Actual/360 days counting method.

 

E.   Variable Rate. The Interest Rate may change during the
term of this transaction.

 

(1) Index. Beginning with the first Change Date, the Interest Rate will be based
on the following index: the highest base rate on corporate loans posted by at
least 75% of the nation’s 30 largest banks that The Wall Street Journal
publishes as the Prime Rate.

 

The Current Index is the
most recent index figure available on each Change Date. You do not guaranty by
selecting this Index, or the margin, that the Interest Rate on this Note will
be the same rate you charge on any other loans or class of loans you make to me
or other borrowers. If this Index is no longer available, you will substitute a
similar index. You will give me notice of your choice.

 

(2) Change Date. Each date on which the Interest Rate may change is called a Change
Date. The Interest Rate may change March 1, 2003 and daily thereafter.

 

(3) Calculation Of Change. On each Change Date, you will calculate the Interest Rate, which will
be the Current Index plus 2.000 percent. The result of this calculation will be
rounded up to the nearest .001 percent. Subject to any limitations, this will
be the Interest Rate until the next Change Date. The new Interest Rate will
become effective on each Change Date. The Interest Rate and other charges on
this Note will never exceed the highest rate or charge allowed by law for this
Note.

 

(4) Effect Of Variable Rate. A change in the Interest Rate will have the
following effect on the payments: The amount of scheduled payments and the
amount of the final payment will change.

 

4.      ADDITIONAL
CHARGES. As additional consideration, I agree to pay, or have
paid, these additional fees and charges.

 

A.  Nonrefundable Fees and Charges. The following fees are earned when collected
and will not be refunded if I prepay this Note before the scheduled maturity
date.

 

Title Insurance.
A(n) Title Insurance fee of $159.00 payable from separate funds on or before
today’s date.

 

State
Filing Fees. A(n)
State Filing Fees fee of $11.00 payable from separate funds on or before
today’s date.

 

Recording
Mortgage. A(n) Recording  Mortgage fee of $28.00 payable from separate
funds on or before today’s date.

 

Loan Fee.
A(n) Loan Fee fee of
$16,000.00 payable from separate funds on or before today’s date.

 

Flood Cert.
A(n) Flood Cert fee
of $24.50 payable from separate funds on or before today’s date.

 

I understand and agree that
some payments to third parties as part of this transaction may also involve
money retained by you or paid back to you as commissions or other remuneration.

 

5. REMEDIAL
CHARGES. In addition
to interest or other finance charges, I agree that I will pay these additional
fees based on my method and pattern of payment. Additional remedial charges may
be described elsewhere in this Note.

 

A.  Late Charge. If a payment is more than 10 days late, I
will be charged 4.000 percent of
the Amount of Payment or $25.00, whichever
is greater. However, this charge will not be greater than $25.00. I will pay this late charge
promptly but only once for each late payment.

 

6. GOVERNING AGREEMENT. This Note is further
governed by the Commercial Loan Agreement executed between you and me as part
of this Loan, as modified, amended or supplemented. Upon execution of this
Note, I represent that I have reviewed and am in compliance with the terms
contained in the Commercial Loan Agreement.

 

2

 

7. PAYMENT. I agree to pay this Note on
demand, but if no demand is made, I agree to pay this Note in installments of
accrued interest beginning April 1, 2003, and then on the 1st  day of each month thereafter. I agree to pay
the entire unpaid Principal and any accrued but unpaid interest on March 1,
2004.

 

Payments will be rounded to
the nearest $.01. With the final payment I also agree to pay any additional
fees or charges owing and the amount of any advances you have made to others on
my behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a
month that contains no such day will, instead, be made on the last day of such
month.

 

Each payment I make on this
Note will be applied first to interest that is due then to principal that is
due, and finally to any charges that I owe other than principal and interest.
If you and I agree to a different application of payments, we will describe our
agreement on this Note. The actual amount of my final payment will depend on my
payment record.

 

8. PREPAYMENT. I may prepay this Loan in full
or in part at any time. Any partial prepayment will not excuse any later
scheduled payments until I pay in full.

 

9. LOAN PURPOSE. The purpose of this Loan is NORTHWESTERN
ENERGY IRREVOCABLE LETTER OF CREDIT #1158.

 

10.    ADDITIONAL TERMS. BORROWER SHALL PROVIDE LENDER WITH ANNUAL
FINANCIAL STATEMENTS AND YEARLY TAX RETURNS.

 

BORROWER AGREES TO BE IN
COMPLIANCE WITH ALL TERMS AND CONDITIONS OF THE COMMITMENT LETTER DATED
FEBRUARY 18, 2003 TO GREAT PLAINS ETHANOL LLC AND MODIFIED ON FEBRUARY 25,
2003.

 

11.    SECURITY. This
Loan is secured by separate security instruments prepared together with this
Note as follows:

 

	
  Document Name

  	
   

  	
  Parties to
  Document

  
	
  Mortgage - 27716 462ND AVENUE

  	
   

  	
  GREAT
  PLAINS ETHANOL LLC

  
	
  Security Agreement - GREAT
  PLAINS ETHANOL LLC

  	
   

  	
  GREAT
  PLAINS ETHANOL LLC

  

 

12.    ASSUMPTIONS. Someone buying the Property cannot assume the obligation. You may
declare the entire balance of the Note to be immediately due and payable upon
the creation of, or contract for the creation of,  any lien, encumbrance, or transfer of the Property. However, I
may sell or similarly dispose of any Property that is inventory.

 

13.    WAIVERS
AND CONSENT. To the extent not prohibited by law, I waive
protest, presentment for payment, demand, notice of acceleration, notice of intent
to accelerate and notice of dishonor.

 

A.  Additional Waivers By Borrower. In addition, I, and any party to this Note
and Loan, to the extent permitted by law, consent to certain actions you may
take, and generally waive defenses that may be available based on these actions
or based on the status of a party to this Note.

 

(1)
You may renew or extend payments on this Note, regardless of the number of such
renewals or extensions.

 

(2)
You may release any Borrower, endorser, guarantor, surety, accommodation maker
or any other co-signer.

 

3

 

(3) You may release, substitute or impair any
Property securing this Note.

 

(4)
You, or any institution participating in this Note, may invoke your right of
set-off.

 

(5) You may enter into any sales, repurchases or
participations of this Note to any person in any amounts and I waive notice of
such sales, repurchases or participations.

 

(6)
I agree that any of us signing this Note as a Borrower is authorized to modify
the terms of this Note or any instrument securing, guarantying or relating to
this Note.

 

B.  No Waiver By
Lender. Your course of dealing, or your forbearance from, or delay
in, the exercise of any of your rights, remedies, privileges or right to insist
upon my strict performance of any provisions contained in this Note, or other
Loan documents, shall not be construed as a waiver by you, unless any such
waiver is in writing and is signed by you.

 

14.    APPLICABLE LAW. This Note  is governed by the laws of South Dakota, the United States of America
and to the extent required, by the laws of the jurisdiction where the Property
is located.

 

15.    JOINT AND INDIVIDUAL LIABILITY AND
SUCCESSORS. My
obligation to pay this Loan is independent of the obligation of any other person
who has also agreed to pay it. You may sue me alone, or anyone else who is
obligated on this Loan, or any number of us together, to collect this Loan.
Extending this Loan or new obligations under this Loan, will not affect my duty
under this Loan and I will still be obligated to pay this Loan. The duties and
benefits of this Loan will bind and benefit the successors and assigns of you
and me.

 

16.    AMENDMENT,
INTEGRATION AND SEVERABILITY. This Note may not be amended or
modified by oral agreement. No amendment or modification of this Note is
effective unless made in writing and executed by you and me. This Note is the
complete and final expression of the agreement. If any provision of this Note
is unenforceable, then the unenforceable provision will be severed and the
remaining provisions will still be enforceable.

 

17.    INTERPRETATION.
Whenever used, the singular includes the plural and the plural
includes the singular. The section headings are for convenience only and are
not to be used to interpret or define the terms of this Note.

 

18.    NOTICE, FINANCIAL REPORTS AND ADDITIONAL
DOCUMENTS. Unless otherwise
required by law, any notice will be given by delivering it or mailing it by
first class mail to the appropriate party’s address listed in the DATE AND PARTIES
section, or to any other address designated in writing. Notice to one party
will be deemed to be notice to all parties. I will inform you in writing of any
change in my name, address or other application information. I agree to sign,
deliver, and file any additional documents or certifications that you may
consider necessary to perfect, continue, and preserve my obligations under this
Loan and to confirm your lien status on any Property. Time is of the essence.

 

19.    CREDIT
INFORMATION. I agree to supply you with whatever information you
reasonably request. You will make requests for this information without undue
frequency, and will give me reasonable time in which to supply the information.

 

20.    ERRORS AND OMISSIONS. I agree, if requested by you, to fully
cooperate in the correction, if necessary, in the reasonable discretion of you
of any and all loan closing documents so that all documents accurately describe
the loan between you and me. I agree to assume all costs including by way of
illustration and not limitation, actual expenses, legal fees and marketing
losses for failing to reasonably comply with your requests within thirty (30)
days.

 

4

 

21.    SIGNATURES.
By signing under seal, I agree to the
terms contained in this Note. I also acknowledge receipt of a copy of this
Note.

 

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  	
  GREAT
  PLAINS ETHANOL, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By 

  	
      /s/  Darrin Ihnen

  	
  (Seal)

  
	
   

  	
   

  	
  DARREN
  IHNEN, PRESIDENT

  

 

5Exhibit 10.1

 

 

THE MACERICH COMPANY

2003 EQUITY INCENTIVE PLAN

 

 

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  THE
  PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Purpose

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  Administration
  and Authorization; Power and Procedure.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.3

  	
  Participation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.4

  	
  Shares
  Available for Awards; Share Limits.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.5

  	
  Grant of Awards.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.6

  	
  Award Period.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.7

  	
  Limitations
  on Exercise and Vesting of Awards.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.8

  	
  No
  Transferability; Limited Exception to Transfer Restrictions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  OPTIONS.

  
	
   

  	
   

  
	
   

  	
  2.1

  	
  Grants.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Option Price.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  Limitations
  on Grant and Terms of Incentive Stock Options.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.4

  	
  Limits on 10% Holders.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.5

  	
  Option
  Repricing/Cancellation and Regrant.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.6

  	
  Effects
  of Termination of Employment or Service.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.7

  	
  Limitation
  on Exercise of Option Award

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  STOCK
  APPRECIATION RIGHTS (INCLUDING LIMITED STOCK APPRECIATION RIGHTS)

  
	
   

  	
   

  
	
   

  	
  3.1

  	
  Grants.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Exercise
  of Stock Appreciation Rights.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3

  	
  Payment.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.4

  	
  Limited Stock
  Appreciation Rights.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  RESTRICTED
  STOCK AND STOCK UNIT AWARDS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Grants.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  Restrictions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.3

  	
  Return to the
  Corporation.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  PERFORMANCE
  SHARE AWARDS, OTHER STOCK AWARDS AND DIVIDEND EQUIVALENT RIGHTS

  
	
   

  	
   

  
	
   

  	
  5.1

  	
  Grants of
  Performance Share Awards.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  Special
  Performance-Based Share Awards.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3

  	
  Grants
  of Stock Bonuses and Other Awards.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  Deferred Payments.

  	
   

  

 

i

 

	
   

  	
  5.5

  	
  Limitations on Awards.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.6

  	
  Dividend Equivalent
  Rights.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.7

  	
  Operating
  Partnership Units or other Convertible Units.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.8

  	
  Alternative Payments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  OTHER PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Rights
  of Eligible Persons, Participants and Beneficiaries.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Adjustments;
  Acceleration.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.3

  	
  Effect
  of Termination of Service on Awards.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.4

  	
  Compliance with Laws.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.5

  	
  Tax Matters.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.6

  	
  Plan
  and Award Amendments, Termination and Suspension.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.7

  	
  Privileges of
  Stock Ownership.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.8

  	
  Effective Date of the
  Plan.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.9

  	
  Term of the Plan.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.10

  	
  Governing
  Law/Construction/Severability.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.11

  	
  Captions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.12

  	
  Stock-Based
  Awards in Substitution for Stock Options or Awards Granted by Other
  Corporation.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.13

  	
  Non-Exclusivity of
  Plan.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.14

  	
  No Corporate
  Action Restriction.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.15

  	
  Other
  Company Benefit and Compensation Program.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Definitions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  NON-EMPLOYEE
  DIRECTOR FORMULA OPTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Participation.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  Annual Option Grants.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  Option Price.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  Option Period
  and Exercisability.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.5

  	
  Termination of
  Directorship.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.6

  	
  Adjustments; Acceleration.

  	
   

  

 

ii

 

THE MACERICH COMPANY

2003 EQUITY INCENTIVE PLAN

1.             THE
PLAN

 

                1.1           Purpose

 

                The
purpose of this Plan is to promote the success of the Company by providing an
additional means through the grant of Awards to attract, motivate, retain and
reward key employees (including employees who are officers) and directors of,
and certain consultants and advisors to, the Company with awards and incentives
for individual service or performance, financial performance of the Company and
market performance of the Corporation’s Common Stock. “Corporation” means The
Macerich Company, a Maryland corporation and its successors, and “Company”
means the Corporation and its Subsidiaries, collectively. These terms and other
capitalized terms are defined in Article 7.

 

                1.2           Administration
and Authorization; Power and Procedure.

 

                (a)           Committee.  This Plan shall be administered by and all
Awards to Eligible Persons shall be authorized by the Committee. Action of the
Committee with respect to the administration of this Plan shall be taken
pursuant to a majority vote or by unanimous written consent of its members.
Where the Committee authorizes the issuance of shares under this Plan, the
Committee shall adopt a resolution which sets the minimum consideration for the
shares to be issued or a formula for its determination, fairly describes any
consideration other than money and states any findings required by this Plan or
the partnership agreement of The Macerich Partnership, L.P.

 

                (b)           Plan
Awards; Interpretation; Powers of Committee.  Subject to the express provisions of this
Plan, the resolutions of the Board approving this Plan, and compliance with
Section 2-203 of the Maryland General Corporation Law, the Committee shall
have the authority:

 

                (i)            to determine eligibility and, from
among those persons determined to be eligible, the particular Eligible Persons
who will receive an Award;

 

                (ii)           to grant or approve Awards, including
Awards issued by its Subsidiaries, to Eligible Persons, determine the price at
which securities will be offered or awarded and the amount of securities to be
offered or awarded to any of such persons, and determine the other specific
terms and conditions of such Awards, including any performance criteria,
consistent with the express limits of this Plan, and establish the installments
(if any) in which such Awards shall become exercisable or shall vest, or
determine that no delayed exercisability or vesting is required, and establish
the events of termination or reversion of such Awards;

 

                (iii)          to approve the forms of Award
Agreements (which need not be identical either as to type of award or among
Participants);

 

                (iv)          to construe and interpret this Plan
and any agreements defining the rights and obligations of the Company and
Participants under this Plan, further define the terms used in this Plan, and
prescribe, amend and rescind rules and regulations relating to the
administration of this Plan;

 

                (v)           to cancel, modify, or waive the
Corporation’s rights with respect to, or modify, discontinue, suspend, or
terminate any or all outstanding Awards held by Eligible Employees, subject to
any required consent under Section 6.6 and subject to Section 2.5;

 

                (vi)          to accelerate or extend the
exercisability or extend the term of any or all such outstanding Awards within
the maximum term of Awards under Section 1.6; and

 

                (vii)         to make all other determinations and
take such other action as contemplated by this Plan or as may be necessary or
advisable for the administration of this Plan and the effectuation of its
purposes.

 

The provisions of Article 8 relating to Non-Employee
Director Options shall be formulaic and, to the maximum extent possible,
self-effectuating. Although the discretion of the Committee extends to those
Awards, Board approval or ratification shall be required for any material
amendments to any such Award.

 

                (c)           Binding
Determinations/Liability Limitation.  Any action taken by, or inaction of, the Corporation, any
Subsidiary, the Board or the Committee relating or pursuant to this Plan and

 

 

within its authority hereunder or under applicable law
shall be within the absolute discretion of that entity or body and shall be
conclusive and binding upon all persons. Neither the Board nor any Committee,
nor any member thereof or person acting at the direction thereof shall be
liable for any act, omission, interpretation, construction or determination
made in good faith in connection with this Plan (or any Award made under this
Plan), and all such persons shall be entitled to indemnification and
reimbursement by the Company in respect of any claim, loss, damage or expense
(including, without limitation, attorneys’ fees) arising or resulting therefrom
to the fullest extent permitted by law and/or under any directors and officers
liability insurance coverage that may be in effect from time to time.

 

                (d)           Reliance
on Experts.  In making any
determination or in taking or not taking any action under this Plan, the
Committee or the Board, as the case may be, may obtain and may rely upon the
advice of experts, including professional advisors to the Corporation. No
director, officer or agent of the Company shall be liable for any such action
or determination taken or made or omitted in good faith.

 

                (e)           Delegation.  The Committee may delegate ministerial, non-discretionary
functions to individuals who are officers or employees of the Company.

 

                1.3           Participation

 

                Awards
may be granted by the Committee only to those persons that the Committee
determines to be Eligible Persons. An Eligible Person who has been granted an
Award may, if otherwise eligible, be granted additional Awards if the Committee
shall so determine.

 

                1.4           Shares
Available for Awards; Share Limits.

 

                (a)           Shares
Available.  Subject to the
provisions of Section 6.2, the capital stock that may be delivered under
this Plan shall be shares of the Corporation’s authorized but unissued Common
Stock. The shares may be delivered for any lawful consideration.

 

                (b)           Share
Limits.

 

                (i)            The maximum number of shares of
Common Stock that may be delivered pursuant to Awards granted to Eligible
Persons under this Plan shall not exceed 6,000,000 shares (the “Share Limit”); provided that the maximum
number of shares of Common Stock that may be delivered pursuant to Awards other
than Options and SARs granted under this Plan shall not exceed 3,000,000
shares.

 

                (ii)           The maximum number of shares of
Common Stock that may be delivered pursuant to options qualified as Incentive
Stock Options granted under this Plan is 1,950,000 shares.

 

                (iii)          The maximum number of shares of Common
Stock in the aggregate that may be issued under Awards under this Plan (other
than Awards granted under Section 8 or shares issued in lieu of cash
compensation otherwise payable) granted to Non-Employee Directors shall be
350,000.

 

                (iv)          The maximum number of shares subject
to those Options and Stock Appreciation Rights that are granted during any
calendar year to any individual under this Plan shall be limited to 500,000 and
the maximum limit on the number of shares in the aggregate subject to all
stock-related Awards that during any calendar year are granted to any
individual under this Plan shall be 750,000.

 

                (v)           Each of the foregoing numerical
limits shall be subject to adjustment as contemplated by this Section 1.4
and Section 6.2.

 

                (c)           Calculation
of Available Shares and Replenishment.  Shares subject to outstanding Awards of derivative securities (as
defined in Rule 16a-1(c) under the Exchange Act) shall be reserved for
issuance. If any option or other right to acquire shares of Common Stock under
an Award shall expire or be cancelled or terminated without having been
exercised in full, or any Common Stock subject to a Restricted Stock Award or
other Award shall not vest or be delivered, the unpurchased, unvested or
undelivered shares subject thereto shall again be available for the purposes of
the Plan, subject to any applicable limitations under Section 162(m) of
the Code. If a

 

2

 

Stock Appreciation Right or similar right is exercised or a
Performance Share Award based on the increased market value of a specified
number of shares of Common Stock is paid in shares, only the number of shares
actually issued shall be charged against the maximum amount of Common Stock
that may be delivered pursuant to Awards under this Plan and, if applicable,
such Award. If the Corporation withholds shares of Common Stock pursuant to
Section 6.5, the number of shares that would have been deliverable with
respect to an Award but that are withheld pursuant to the provisions of
Section 6.5 may in effect not be issued, but the aggregate number of
shares issuable with respect to the applicable Award and under the Plan shall
be reduced by the number of shares withheld and such shares shall not be
available for additional Awards under this Plan. To the extent a performance
share award or dividend equivalent is paid in shares of Common Stock, the
number of shares of Common Stock (if any) subject to such Performance Share
Award or dividend equivalent shall be charged (but in the case of tandem or
substituted Awards or dividend equivalents, without duplication) against the
maximum number of shares of Common Stock that may be delivered pursuant to
Awards under this Plan. Notwithstanding the foregoing provisions, but subject
to Section 6.10(c), Awards payable solely in cash shall not reduce the
number of shares available for Awards under this Plan and any imputed charges
to the maximum number of shares deliverable under this Plan pursuant to Awards
payable in shares or cash shall be reversed to the extent the Awards are
actually paid in cash. To the extent any shares were previously reserved in
respect of such Awards payable in cash or shares, the number of shares not
issued shall (except as above expressly provided with respect to withholding
under Section 6.5) again be available for purposes of this Plan.

 

                1.5           Grant of Awards.

 

                Subject
to the express provisions of this Plan, the Committee shall determine the
number of shares of Common Stock subject to each Award, the price (if any) to
be paid for the shares or the Award and, in the case of Performance Share
Awards, in addition to matters addressed in Section 1.2(b), the specific
objectives, goals and performance criteria (such as an increase in sales,
market value, earnings or book value over a base period, the years of service
before vesting, the relevant job classification or level of responsibility or
other factors) that further define the terms of the Performance Share Award.
Each Award shall be evidenced by an Award Agreement signed by the Corporation
and, if required by the Committee, by the Participant. The Award Agreement
shall set forth the material terms and conditions of the Award established by
the Committee consistent with the specific provisions of this Plan.

 

                1.6           Award Period.

 

                Each
Award and all executory rights or obligations under the related Award Agreement
shall expire on such date (if any) as shall be determined by the Committee,
but, subject to Section 4.1(c), in the case of Options or other rights to
acquire Common Stock not later than ten (10) years after the Award Date.

 

                1.7           Limitations
on Exercise and Vesting of Awards.

 

                (a)           Provisions
for Exercise.  Unless the
Committee otherwise expressly provides or as provided in or pursuant to
Section 6.2, no Award shall be exercisable or shall vest until at least
six months after the initial Award Date, and once exercisable an Award shall
remain exercisable until the expiration or earlier termination of the Award.

 

                (b)           Procedure.  Any exercisable Award shall be deemed to be
exercised when the Secretary of the Corporation or its designee approves a
notice of such exercise in the form required by the Company from the
Participant, together with any required payment made in accordance with
Section 2.2 or 8.3, as the case may be.

 

                (c)           Fractional
Shares/Minimum Issue. 
Fractional share interests shall be disregarded, but may be accumulated.
The Committee, however, may determine in the case of Eligible Persons that
cash, other securities, or other property will be paid or transferred in lieu
of any fractional share interests. No fewer than 100 shares may be purchased on
exercise of any Award at one time unless the number purchased is the total
number at the time available for purchase under the Award.

 

3

 

                1.8           No
Transferability; Limited Exception to Transfer Restrictions.

 

                (a)           Limit
On Exercise and Transfer. 
Unless otherwise expressly provided in (or pursuant to) this
Section 1.8, by applicable law and by the Award Agreement, as the same may
be amended, (i) Awards are non-transferable and shall not be subject in
any manner to sale, transfer, anticipation, alienation, assignment, pledge,
encumbrance or charge; (ii) Awards shall be exercised only by the Participant;
and (iii) amounts payable or shares issuable pursuant to any Award shall
be delivered only to (or for the account of) the Participant.

 

                (b)           Exceptions.  The Committee may permit Awards to be
exercised by and paid to certain persons or entities related to the
Participant, including but not limited to members of the Participant’s
immediate family, or charitable institutions, trusts or other entities
controlled by or whose beneficiaries or beneficial owners are the Participant
and/or members of the Participant’s immediate family or to such other related
persons or entities as may be approved by the Committee, pursuant to such
conditions and procedures, including limitations on subsequent transfers, as
the Committee may establish. Consistent with Section 6.4, any permitted
transfer shall be subject to the condition that the Committee receive evidence
satisfactory to it that the transfer (i) is being made for essentially
donative, estate and/or tax planning purposes on a gratuitous or donative basis
and without consideration (other than nominal consideration or in exchange for
an interest in a qualified transferee), and (ii) will not compromise the
Corporation’s ability to register shares issuable under this Plan on SEC
Form S-8 under the Securities Act or a Subsidiary’s ability to rely on SEC
Rule 701 thereunder with respect to Subsidiary interests or securities.
Notwithstanding the foregoing, ISOs and Restricted Stock Awards shall be
subject to any and all additional transfer restrictions under the Code.

 

                (c)           Further
Exceptions to Limits On Transfer. 
The exercise and transfer restrictions in Section 1.8(a) shall not
apply to:

 

                (i)            transfers to the Corporation,

 

                (ii)           the designation of a beneficiary to
receive benefits in the event of the Participant’s death or, if the Participant
has died, transfers to or exercise by the Participant’s beneficiary, or, in the
absence of a validly designated beneficiary, transfers by will or the laws of
descent and distribution,

 

                (iii)          subject to any applicable ISO
limitations, transfers to a family member (or former family member) pursuant to
a domestic relations order if approved or ratified by the Committee,

 

                (iv)          if the Participant has suffered a
disability, permitted transfers or exercises on behalf of the Participant by his
or her legal representative, or

 

                (v)           the authorization by the Committee of
“cashless exercise” procedures with third parties who provide financing for the
purpose of (or who otherwise facilitate) the exercise of Awards consistent with
applicable laws and the express authorization of the Committee.

 

2.             OPTIONS.

 

                2.1           Grants.

 

                One or
more Options may be granted under this Article to any Eligible Person. Each
Option granted shall be designated in the applicable Award Agreement, by the
Committee as either an Incentive Stock Option, subject to Section 2.3, or
a Nonqualified Stock Option.

 

                2.2           Option Price.

 

                (a)           Pricing
Limits.  The purchase price
per share of the Common Stock covered by each Option shall be determined by the
Committee at the time of the Award, provided that such price shall be no less
than 100% (110% in the case of an Incentive Stock Option granted to a
Participant described in Section 2.4) of the Fair Market Value of the
Common Stock on the date of grant and in all cases shall not be less than the
par value thereof, payable in any form of lawful consideration specified by the
Committee.

 

4

 

                (b)           Payment
Provisions.  The purchase
price of any shares purchased on exercise of an Option granted under this
Article shall be paid in full at the time of each purchase in one or a
combination of the following methods: (i) in cash or by electronic funds
transfer; (ii) by check payable to the order of the Corporation; or
(iii) by the delivery of shares of Common Stock of the Corporation already
owned by the Participant, provided, however,
that the Committee may in its absolute discretion limit the Participant’s
ability to exercise an Award by delivering such shares, and provided further
that any shares delivered which were initially acquired upon exercise of a
stock option must have been owned by the Participant at least six months as of
the date of delivery. Shares of Common Stock used to satisfy the exercise price
of an Option shall be valued at their Fair Market Value on the date of
exercise. In addition to the payment methods described above and to the extent
permitted by applicable law, the Committee may provide that the Option can be
exercised and payment made by delivering a properly executed exercise notice
together with irrevocable instructions to a broker to promptly deliver to the
Corporation the amount of sale proceeds necessary to pay the exercise price
and, unless otherwise allowed by the Committee, any applicable tax withholding
under Section 6.5. The Corporation shall not be obligated to deliver the
shares unless and until it receives full payment of the exercise price therefor
and any related withholding obligations have been satisfied.

 

                2.3           Limitations
on Grant and Terms of Incentive Stock Options.

 

                (a)           $100,000
Limit.  To the extent that
the aggregate “Fair Market Value” of stock with respect to which incentive
stock options first become exercisable by a Participant in any calendar year
exceeds $100,000, taking into account both Common Stock subject to Incentive
Stock Options under this Plan and stock subject to incentive stock options
under all other plans of the Company, such options shall be treated as
Nonqualified Stock Options. For this purpose, the “Fair Market Value” of the
stock subject to options shall be determined as of the date the options were
awarded. In reducing the number of options treated as incentive stock options
to meet the $100,000 limit, the most recently granted options shall be reduced
first. To the extent a reduction of simultaneously granted options is necessary
to meet the $100,000 limit, the Committee may, in the manner and to the extent
permitted by law, designate which shares of Common Stock are to be treated as
shares acquired pursuant to the exercise of an Incentive Stock Option.

 

                (b)           Option
Period.  Each Option and all
rights thereunder shall expire no later than 10 years after the Award
Date.

 

                (c)           Other
Code Limits.  Incentive Stock
Options may only be granted to Eligible Employees of the Corporation or a Subsidiary
that qualifies as a “subsidiary corporation” pursuant to Section 424(f) of
the Code. For this purpose, a “subsidiary corporation” means any Subsidiary
that is a corporation in an unbroken chain of corporations beginning with the
Corporation if, at the time of the granting of the option, each of the
corporations other than the last corporation in the unbroken chain of
corporations owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.
There shall be imposed in any Award Agreement relating to Incentive Stock
Options such other terms and conditions as from time to time are required in
order that the Option be an “incentive stock option” as that term is defined in
Section 422 of the Code.

 

                2.4           Limits
on 10% Holders.

 

                No
Incentive Stock Option may be granted to any person who, at the time the Option
is granted, owns (or is deemed to own under Section 424(d) of the Code)
shares of outstanding Common Stock possessing more than 10% of the total
combined voting power of all classes of stock of the Corporation, unless the
exercise price of such Option is at least 110% of the Fair Market Value of the
stock subject to the Option and such Option by its terms is not exercisable after
the expiration of five years from the date such Option is granted.

 

                2.5           Option
Repricing/Cancellation and Regrant.

 

                Except
as provided in or pursuant to Section 6.2, the Committee may not
authorize, generally or in specific cases only, for the benefit of any Eligible
Person any adjustment in the exercise or purchase price or the number of shares
subject to an Award granted under Article 2 or 8 by

 

 

5

 

cancellation of an outstanding Award and a subsequent
regranting of an Award, by amendment or by substitution of an outstanding Award
without prior approval of the Corporation’s stockholders.

 

                2.6           Effects
of Termination of Employment or Service.

 

                (a)           Options.  Unless otherwise provided in, or by authorized
amendment to, the Award Agreement or provided in another applicable agreement
with the Participant:

 

                (i)            Options—Resignation
or Dismissal.  If the
Participant’s employment by (or other service specified in the Award Agreement
to) the Company terminates for any reason (the date of such termination being
referred to as the “Severance Date”)
(other than Total Disability or death, Retirement, or for Cause (as determined
in the discretion of the Committee)), the Participant shall have three months
after the Severance Date to exercise any Option to the extent it shall have
become exercisable on the Severance Date. In the case of a termination for
Cause, the Option shall terminate on the Severance Date. In other cases, the
Option, to the extent not exercisable on the Severance Date, shall terminate.

 

                (ii)           Options—Death
or Disability.  If the
Participant’s employment by (or specified service to) the Company terminates as
a result of Total Disability or death, the Participant, Participant’s Personal
Representative or his or her Beneficiary, as the case may be, shall have until
12 months after the Severance Date to exercise any Option to the extent it
shall have become exercisable by the Severance Date. Any Option to the extent
not exercisable on the Severance Date shall terminate.

 

                (iii)          Options—Retirement.  If the Participant’s employment by (or
specified service to) the Company terminates as a result of Retirement, the
Participant, Participant’s Personal Representative or his or her Beneficiary,
as the case may be, shall have until 12 months after the Severance Date to
exercise any Nonqualified Stock Option (three months after the Severance Date
in the case of an Incentive Stock Option) to the extent it shall have become
exercisable by the Severance Date. The Option, to the extent not exercisable on
the Severance Date, shall terminate.

 

                (b)           Certain
SARs.  Any SAR granted
concurrently or in tandem with an Option shall have the same post-termination
provisions and exercisability periods as the Option to which it relates, unless
the Committee otherwise provides.

 

                (c)           Committee
Discretion.  Notwithstanding
and without limiting the foregoing provisions of this Section 2.6, in the
event of, or in anticipation of, a termination of employment or service with
the Company for any reason the Committee may, in its discretion, increase the
portion of the Participant’s Award available to the Participant, or
Participant’s Beneficiary or Personal Representative, as the case may be, or,
subject to the provisions of Section 1.6, extend the exercisability
period, upon such terms as the Committee shall determine and expressly set
forth in or by amendment to the Award Agreement.

 

                (e)           Limitations
on Incentive Stock Options. 
Notwithstanding the foregoing, to the extent that the post-termination
exercise period of an Incentive Stock Option exceeds the limitations under
Section 422 the Code, such Option will cease to be treated as Incentive
Sock Option and shall be treated as a Nonqualified Stock Option at such time
that the applicable time limit is exceeded.

 

                2.7           Limitation on Exercise of Option
Award.  No Participant may receive Common Stock upon
exercise of an Option to the extent that it will cause such person to
Beneficially or Constructively Own Equity Shares in excess of the Ownership
Limit. If a Participant exercises any portion of an Option (by tendering the
exercise price to the Corporation) which upon delivery of the Common Stock
would cause the holder of the Option to Beneficially or Constructively Own
Equity Shares in excess of the Ownership Limit, the Corporation shall have the
right to deliver to the Participant, in lieu of Common Stock, a check or cash
in the amount equal to the Fair Market Value of the Common Stock otherwise
deliverable on the date of exercise (minus any amounts withheld pursuant to
Section 6.5).

 

6

 

3.             STOCK APPRECIATION RIGHTS (INCLUDING LIMITED STOCK
APPRECIATION RIGHTS).

 

                3.1           Grants.

 

                In its
discretion, the Committee may grant to any Eligible Person Stock Appreciation
Rights either concurrently with the grant of another Award or in respect of an
outstanding Award, in whole or in part, or independently of any other Award.
Any Stock Appreciation Right granted in connection with an Incentive Stock
Option shall contain such terms as may be required to comply with the
provisions of Section 422 of the Code and the regulations promulgated
thereunder, unless the holder otherwise agrees.

 

                3.2           Exercise
of Stock Appreciation Rights.

 

                (a)           Exercisability.  Unless the Award Agreement or the Committee
otherwise provides, a Stock Appreciation Right related to another Award shall
be exercisable at such time or times, and to the extent, that the related Award
shall be exercisable. The base price of any SAR related to an Option may be
less than the Fair Market Value of the Common Stock on the grant date, provided
that such price shall be no less than the exercise price of the related Option.

 

                (b)           Effect
on Available Shares.  To the
extent that a Stock Appreciation Right is exercised, only the actual number of
delivered shares shall be charged against the maximum number of shares of
Common Stock that may be delivered pursuant to Awards under this Plan. The
number of shares subject to the Stock Appreciation Right and the related Option
of the Participant shall, however, be reduced by the referenced number of
underlying shares as to which the exercise related, unless the Award Agreement
otherwise provides.

 

                (c)           Stand-Alone
SARs.  Subject to Sections
1.6 and 1.7, a Stock Appreciation Right granted independently of any other
Award shall be exercisable pursuant to the terms of the Award Agreement. The
base price of each stand-alone SAR shall be determined by the Committee at the
time of the Award, provided that such price shall be no less than 100% of the
Fair Market Value of the Common Stock on the date of grant.

 

                3.3           Payment.

 

                (a)           Amount.  Unless the Committee otherwise provides,
upon exercise of a Stock Appreciation Right and the attendant surrender of an
exercisable portion of any related Award, the Participant shall be entitled to
receive payment of an amount determined by multiplying:

 

                (i)            the difference obtained by
subtracting the exercise price per share of Common Stock under the related
Award (if applicable) or the initial share value specified in the Award from
the Fair Market Value of a share of Common Stock on the date of exercise of the
Stock Appreciation Right, by

 

                (ii)           the number of shares with respect to
which the Stock Appreciation Right shall have been exercised.

 

                (b)           Form
of Payment.  The Committee,
in its sole discretion, shall determine the form in which payment shall be made
of the amount determined under paragraph (a) above, either solely in cash,
solely in shares of Common Stock (valued at Fair Market Value on the date of
exercise of the Stock Appreciation Right), or partly in such shares and partly
in cash, provided that the Committee shall have determined that such exercise
and payment are consistent with applicable law. If the Committee permits the
Participant to elect to receive cash or shares (or a combination thereof) on
such exercise, any such election shall be subject to such conditions as the
Committee may impose. Notwithstanding anything contained herein to the
contrary, no Participant may receive Common Stock upon the exercise of a Stock
Appreciation Right to the extent it will cause such person to Beneficially or
Constructively Own Equity Shares in excess of the Ownership Limit. In

 

7

 

the event that a Participant exercises any portion of a
Stock Appreciation Right which upon delivery of Common Stock would cause such
Participant to Beneficially or Constructively Own Equity Shares in excess of
the Ownership Limit, the Corporation shall have the right, notwithstanding any
election granted to the Participant by the Committee, to deliver a check or
cash to the Participant.

 

                3.4           Limited
Stock Appreciation Rights.

 

                The
Committee may grant to any Eligible Person Stock Appreciation Rights
exercisable only upon or in respect of a change in control or any other
specified event (“Limited SARs”) and such Limited SARs may relate to or operate
in tandem or combination with or substitution for Options, other SARs or other
Awards (or any combination thereof), and may be payable in cash or shares based
on the spread between the base price of the SAR and a price based upon the Fair
Market Value of the Shares during a specified period or at a specified time
within a specified period before, after or including the date of such event.

 

4.             RESTRICTED STOCK AND STOCK UNIT AWARDS.

 

Subject to any applicable limitations under applicable law,
resolutions of the Board, other generally applicable terms and conditions of
this Plan, and such rules and procedures as the Committee may establish from
time to time:

 

                4.1           Grants.

 

                (a)           Restricted
Stock.  The Committee may, in
its discretion, grant one or more Restricted Stock Awards to any Eligible
Person. Each Restricted Stock Award Agreement shall specify the number of
shares of Common Stock to be issued to the Participant, the date of such
issuance, the consideration for such shares (but not less than the minimum
lawful consideration under applicable law) by the Participant, the extent (if
any) to which and the time (if ever) at which the Participant shall be entitled
to dividends, voting and other rights in respect of the shares prior to
vesting, and the restrictions (which may be based on performance criteria,
passage of time or other factors or any combination thereof) imposed on such
shares and the conditions of release or lapse of such restrictions. Such
restrictions shall not lapse earlier than six months after the Award Date,
except to the extent the Committee may otherwise provide, such as in the case
of Awards principally for services already rendered, or to the extent provided
in an applicable agreement with the Participant. Stock certificates or book
entries evidencing shares of Restricted Stock pending the lapse of the
restrictions (“Restricted Shares”) shall bear a legend or notation making
appropriate reference to the restrictions imposed hereunder and (if in
certificate form) shall be held by the Corporation or by a third party
designated by the Committee until the restrictions on such shares shall have
lapsed and the shares shall have vested in accordance with the provisions of
the Award and Section 1.7. Upon issuance of the Restricted Stock Award,
the Participant may be required to provide such further assurance and documents
as the Committee may require to enforce the restrictions.

 

                (b)           Stock
Units.  The Committee may, in
its discretion, authorize and grant to any Eligible Person a Stock Unit Award
or the crediting of Stock Units for services rendered or to be rendered or in
lieu of other compensation, consistent with other applicable terms of this
Plan, may permit an Eligible Person to irrevocably elect to defer by means of
Stock Units or receive in Stock Units all or a portion of any Award hereunder,
or may grant Stock Units in lieu of, in exchange for, in respect of, or in
addition to any other compensation or Award under this Plan. The specific
terms, conditions, and provisions relating to each Stock Unit grant or
election, including the applicable vesting and payout provisions of the Stock
Units and the form of payment to be made at or following the vesting thereof,
shall be set forth in or pursuant to the applicable agreement or Award and any
relevant Company bonus, performance or other service or deferred compensation
plan, in form substantially as approved by the Committee.

 

8

 

                (c)           Payouts.  The Committee in the applicable Award
Agreement or the relevant Company deferred compensation plan may permit the
Participant to elect the form and time of payout of vested Stock Units on such
conditions or subject to such procedures as the Committee may impose, and may
permit Restricted Stock or Stock Unit offsets or other provision for payment of
any applicable taxes that may be due on the crediting, vesting or payment in
respect of the Stock Units.

 

                4.2           Restrictions.

 

                (a)           Pre-Vesting
Restraints.  Except as
provided in Section 4.1 and 1.8, Restricted Shares comprising any
Restricted Stock Award and rights in respect of Stock Unit Awards may not be
sold, assigned, transferred, pledged or otherwise disposed of or encumbered,
either voluntarily or involuntarily, until the restrictions on Restricted
Shares have lapsed and the shares issuable pursuant to the Stock Unit Award
have been issued.

 

                (b)           Dividend
and Voting Rights.  Unless
otherwise provided in the applicable Award Agreement, a Participant receiving a
Restricted Stock Award shall be entitled to cash dividend and voting rights for
all shares issued even though they are not vested, provided that such rights
shall terminate immediately as to any Restricted Shares that cease to be
eligible for vesting. Restricted Stock Awards (to the extent not also entitled
to receive cash dividends) and Stock Unit Awards may include Dividend
Equivalent Rights to the extent authorized by the Committee, as provided in
Section 5.6.

 

                (c)           Cash
Payments.  If the Participant
shall have paid or received cash (including any payments in respect of
dividends) in connection with the Restricted Stock Award or Stock Unit Award,
the Award Agreement shall specify the extent (if any) to which such amounts
shall be returned (with or without an earnings factor) as to any Restricted
Shares or Stock Unit Awards which cease to be eligible for vesting.

 

                4.3           Return
to the Corporation.

 

                Unless
the Committee otherwise expressly provides, Restricted Shares or Stock Units
that remain subject to conditions to vesting upon restrictions at the time of
termination of employment or service or are subject to other conditions to
vesting that have not been satisfied by the time specified in the applicable
Award Agreement shall not vest and shall be returned to the Corporation or
cancelled, as the case may be, unless the Committee otherwise provides in or by
amendment to the applicable terms of the Award.

 

5.             PERFORMANCE SHARE AWARDS, OTHER STOCK AWARDS AND
DIVIDEND EQUIVALENT RIGHTS.

 

                5.1           Grants
of Performance Share Awards.

 

                Subject
to Section 6.4, the Committee may, in its discretion, grant Performance
Share Awards to Eligible Persons based upon such factors as the Committee shall
deem relevant in light of the specific type and terms of the award. An Award
Agreement shall specify the maximum number of shares of Common Stock (if any)
subject to the Performance Share Award, the consideration (but not less than
the minimum lawful consideration and subject to any limitations under
applicable law, resolutions of the Board, other generally applicable terms and
conditions of this Plan) to be paid for any such shares as may be issuable to
the Participant, the duration of the Award and the conditions upon which
delivery of any shares, cash or other property to the Participant shall be
based. The amount of cash or shares or other property that may be deliverable
pursuant to such Award shall be based upon the degree of attainment over a
specified period of not more than 10 years (a “performance cycle”) as may
be established by the Committee of such measure(s) of the performance of the
Company (or any part thereof) or the Participant as may be established by the
Committee. The Committee may provide for full or partial credit, prior to
completion of such

 

9

 

performance cycle or the attainment of the performance
achievement specified in the Award, in the event of the Participant’s death,
Retirement, or Total Disability, a Change in Control Event or in such other
circumstances as the Committee may determine.

 

                5.2           Special
Performance-Based Share Awards.

 

                (a)           General
Provisions.  Without limiting
the generality of the foregoing, and in addition to qualifying awards granted
under other provisions of this Plan (i.e. Options or SARs granted with an
exercise price not less than Fair Market Value at the applicable date of grant
for Section 162(m) purposes to Eligible Employees (“Presumptively
Qualifying Awards”)), the Committee may authorize and grant to any Eligible
Employee, other cash or stock-related performance-based awards, including
“performance- based” awards within the meaning of Section 162(m) of the
Code (“Performance-Based Awards”), whether in the form of restricted stock,
stock appreciation rights, performance stock, phantom stock, stock units,
Dividend Equivalent Rights (“DERs”), or other rights, whether or not related to
stock values or appreciation, and whether payable in cash, Common Stock or a
combination thereof. If the Award (other than a Presumptively Qualifying Award)
is intended as performance-based compensation under Section 162(m) of the
Code, the vesting or payment thereof will depend on the performance of the
Company on a consolidated, Subsidiary, segment, division, region or property
basis with reference to performance goals relative to one or more of the
following business criteria (the “criterion”): funds from operations, EBITDA,
stock appreciation, total stockholder return, total revenue growth, net income,
occupancy gains, square footage growth, and sales per square foot growth, each
as defined in Exhibit B. These terms otherwise are used as applied under
generally accepted accounting principles or in the Company’s financial reporting.
To qualify Awards as performance-based under Section 162(m), the
applicable business criteria and specific performance goal or goals (“targets”)
must be established and approved by the Committee during the first 90 days
of the year (or before one-quarter of the performance measurement period has
elapsed, if such period exceeds one year) and while the performance relating to
such targets remains substantially uncertain within the meaning thereof.
Performance targets shall be adjusted to mitigate the unbudgeted impact of
material, unusual or nonrecurring gains and losses, accounting changes or other
extraordinary events not foreseen at the time the targets were set unless the
Committee provides otherwise at the time of establishing the targets. The applicable
performance measurement period may be not less than one nor (except as provided
in Section 1.6) more than 10 years.

 

                (b)           Maximum
Award.  Grants or awards
under this Section 5.2 may be paid in cash or stock or any combination
thereof. In no event shall grants of stock-related Awards made in any calendar
year to any Eligible Employee under this Plan relate to more than 750,000
shares, subject to adjustment pursuant to Section 6.2. In no event shall
grants made to any Eligible Employee under this Plan of Awards payable only in
cash and not related to stock provide for payment of more than (x) the
lesser of 200% of base salary as of the beginning of the applicable performance
period or $800,000, times (y) the applicable number of years (not more
than 10) to which the Awards relate in the performance periods. If an
Award pursuant to this Section 5.2 is payable in cash or restricted
shares, the lesser of the share limit or the dollar limit of this
Section 5.2(b) shall apply and, for purposes of such limits, the
restricted shares shall be deemed to have a value not less than two-thirds of
the Fair Market Value of the Common Stock on the applicable measurement date.

 

                (c)           Committee
Certification.  Except as
otherwise permitted to qualify as performance-based compensation under
Section 162(m), before any Performance-Based Award under this
Section 5.2 is paid, the Committee must certify that the performance
standard, target(s), and the other material terms of the Performance-Based
Award were in fact satisfied.

 

                (d)           Terms
and Conditions of Awards. 
The Committee will have discretion to determine the restrictions or
other limitations of the individual Awards under this Section 5.2,
including the

 

10

 

authority to reduce Awards, to determine payout schedules
and the extent of vesting or to pay no Awards, in its sole discretion, if the Committee preserves such authority
at the time of grant by language to this effect in its authorizing resolutions
or otherwise. The Committee may provide that in the event a Participant
terminates employment or service for any one or more reason during a Plan Year,
the Participant shall forfeit all rights to any Award for the Plan Year.

 

                (e)           Stock
Payout Features.  In lieu of
cash payment of an Award, the Committee may require or allow a portion of the
Award to be paid in the form of stock, Restricted Shares or an Option.

 

                5.3           Grants
of Stock Bonuses and Other Awards.

 

                Subject
to Section 6.4, the Committee may grant a Stock Bonus to any Eligible
Person to reward services, contributions or achievements, or in connection with
the deferral of compensation, the value of which shall be determined by the
Committee, in the manner and on such terms and conditions (including
restrictions on such shares, if any) as determined from time to time by the
Committee. The number of shares so awarded shall be determined by the
Committee. The Award may be granted independently or in lieu of a cash bonus.

 

                5.4           Deferred
Payments.

 

                The
Committee may authorize for the benefit of any Eligible Person the deferral of
any payment of cash or shares or other property that may become due or of cash
otherwise payable under this Plan, and provide for accretions to benefits
thereon based upon such deferment (including, but not limited to a greater
nominal value in shares than in cash or an allowance for interest, dividend
equivalents or appreciation rights) at the election or at the request of such
Participant or as a mandatory basis as a condition of the Award, subject to the
other terms of this Plan. Such deferral shall be subject to such further
conditions, restrictions or requirements as the Committee may impose, subject
to any then vested rights of Participants.

 

                5.5           Limitations
on Awards.

 

                Notwithstanding
the provisions of this Article 5, in no case may any Award of shares be
granted to the extent that it will cause an Eligible Person to Beneficially or
Constructively Own Equity Shares in excess of the Ownership Limit.

 

                5.6           Dividend
Equivalent Rights.

 

                In its
discretion, the Committee may grant to any Eligible Person DERs concurrently
with the grant of any Option, Restricted Stock, Stock Unit or other stock-based
Award, on such terms as set forth by the Committee in the Award Agreement. DERs
shall be based on all or part of the amount of dividends declared on shares of
Common Stock and shall be credited as of dividend payment dates, during the
period between the date of grant (or such later date as the Committee may set)
and the date the stock-based Award is exercised or expires (or such earlier
date as the Committee may set), as determined by the Committee. DERs shall be
payable in cash or shares, or (to the extent permitted by law) may be subject
to such conditions, not inconsistent with Section 162(m) (in the case of
Options or SARs, or other Awards intended to satisfy its conditions with
respect to deductibility), as may be determined by the Committee.

 

                5.7           Operating Partnership Units or other
Convertible Units.  The Committee may authorize for the benefit
of any Eligible Person the issuance of Common Stock or the payment of cash in
connection with, or upon exercise, conversion or exchange of, phantom units or
other interests in Subsidiaries that are issued by the Subsidiary with the
Committee’s approval and any required Board approval and that are convertible
or exchangeable into Common Stock, units or cash.

 

11

 

                5.8           Alternative
Payments

 

                The
Committee may require or allow all or a portion of an Award under this Article 5
to be paid or credited in the form of shares of Common Stock, Restricted
Shares, Stock Units, an Option or other Award.

 

6.             OTHER
PROVISIONS

 

                6.1           Rights
of Eligible Persons, Participants and Beneficiaries.

 

                (a)           Employment
Status.  Status as an Eligible
Person shall not be construed as a commitment that any Award will be made under
this Plan to an Eligible Person or to Eligible Persons generally.

 

                (b)           No
Employment/Service Agreement. 
Nothing contained in this Plan (or in any other documents under this
Plan or in any Award) shall confer upon any Eligible Employee or other
Participant any right to continue in the employ or other service of the
Company, constitute any contract or agreement of employment or other service or
affect an employee’s status as an employee at will, nor shall interfere in any
way with the right of the Company to change a person’s compensation or other
benefits, or to terminate his or her employment or other service, with or
without cause. Nothing in this Section, however, is intended to adversely
affect any express independent right of such person under a separate employment
or other agreement other than an Award Agreement.

 

                (c)           Plan
Not Funded.  Awards payable
under this Plan shall be payable in shares or from the general assets of the
Company, and (except as provided in Section 1.4(c)) no special or separate
reserve, fund or deposit shall be made to assure payment of such Awards. No
Participant, Beneficiary or other person shall have any right, title or
interest in any fund or in any specific asset (including shares of Common
Stock, except as expressly otherwise provided) of the Company by reason of any
Award hereunder. Neither the provisions of this Plan (or of any related
documents), nor the creation or adoption of this Plan, nor any action taken
pursuant to the provisions of this Plan shall create, or be construed to
create, a trust of any kind or a fiduciary relationship between the Company and
any Participant, Beneficiary or other person. To the extent that a Participant,
Beneficiary or other person acquires a right to receive payment pursuant to any
Award hereunder, such right shall be no greater than the right of any unsecured
general creditor of the Company.

 

                6.2           Adjustments;
Acceleration.

 

                (a)           Adjustments.  Upon or in contemplation of: any
reclassification, recapitalization, stock split (including a stock split in the
form of a stock dividend) or reverse stock split (“stock split”); any merger,
combination, consolidation, or other reorganization; any spin-off, split-up, or
similar extraordinary dividend distribution in respect of the Common Stock
(whether in the form of securities or property); any exchange of Common Stock
or other securities of the Corporation, or any similar, unusual or
extraordinary corporate transaction in respect of the Common Stock; or a sale
of all or substantially all the assets of the Corporation as an entirety; then
the Committee shall, in such manner, to such extent (if any) and at such time
as it deems appropriate and equitable in the circumstances:

 

                (1)           proportionately adjust any or all of
(a) the number and type of shares of Common Stock (or other securities)
that thereafter may be made the subject of Awards (including the specific share
limits, maximums and numbers of shares set forth elsewhere in this Plan),
(b) the number, amount and type of shares of Common Stock (or other
securities or property) subject to any or all outstanding Awards, (c) the
grant, purchase, or exercise price (which term includes the base price in the
case of SARs or similar rights) of any or all outstanding Awards, (d) the
securities, cash or other property deliverable upon exercise of any or all

 

12

 

outstanding Awards, or (e) (subject to limitations
under Section 6.10(c)) the performance standards appropriate to any or all
outstanding Awards, or

 

                (2)           make provision for a cash payment or
for the assumption, substitution or exchange of any or all outstanding
share-based Awards or the cash, securities or property deliverable to the
holder of any or all outstanding share-based Awards, based upon the
distribution or consideration payable to holders of the outstanding Common
Stock upon or in respect of such event.

 

The Committee may adopt such valuation methodologies for
outstanding Awards as it deems reasonable in the event of a cash or property
settlement and, in the case of Options, SARs or similar rights, but without
limitation on other methodologies, may base such settlement solely upon the excess if any of the per
share amount payable upon or in respect of such event over the exercise price
of the Award, unless otherwise provided in, or by authorized amendment to, the
Award Agreement or provided in another applicable agreement with the
Participant.

 

With respect to any Award of an Incentive Stock Option, in
the discretion of the Committee, the adjustment may be made in a manner that
would cause the Option to cease to qualify as an Incentive Stock Option.

 

In any of such events, the Committee may take such action
prior to such event to the extent that the Committee deems the action necessary
to permit the Participant to realize the benefits intended to be conveyed with
respect to the underlying shares in the same manner as is or will be available
to stockholders generally. In the case of any stock split, if no action is
taken by the Committee, the proportionate adjustments contemplated by
clause (a)(1) above shall nevertheless be made.

 

                (b)           Automatic
Termination upon Settlement. 
Without limiting the authority of the Company under Section 6.2(a)
or (c), if provision has been made by the Committee for the assumption,
substitution, exchange or other settlement (each of the foregoing, a
“settlement”) or continuation of at least the vested portion of an outstanding
Award pursuant to Section 6.2(a) upon or in anticipation of either
(i) a Change in Control Event approved by the Board, or (ii) a
reorganization event which the Company does not survive (or does not survive as
a public company in respect of its outstanding common stock) then (subject,
however, to the terms of such settlement or continuation and any specific terms
of the Award or another applicable written agreement to the contrary) the prior
outstanding Award shall terminate upon consummation of the event to the extent
so provided.

 

                (c)           Acceleration
of Awards Upon Change in Control. 
Subject to Sections 8.6, and unless otherwise expressly provided in the
Award or another applicable written agreement with the Participant: unless
prior to a Change in Control Event the Committee determines that, upon its
occurrence, the benefits under any or all Awards shall not be subject to
acceleration as provided below or determines that only certain or limited
benefits under any or all Awards shall be so accelerated and the extent to which
they shall be accelerated, and/or establishes a different time or circumstance
in respect of such Event for such acceleration, by the Award Agreement or
otherwise, then as to the Awards (or replacement awards) held by any
Participant immediately prior to the occurrence of a Qualified Termination upon
or not later than 12 months following a Change in Control Event:

 

                (i)            each Option and Stock Appreciation
Right shall become immediately exercisable,

 

                (ii)           Restricted Stock shall immediately
vest free of restrictions, and

 

                (iii)          each Performance Share Award shall
become payable to the Participant.

 

A “Qualified Termination” for these purposes
(i) includes any termination of employment by the Company (other than for
Cause or because of the Participant’s death or Total Disability), subject to
the

 

13

 

actual occurrence of the Change in Control Event,
(ii) may include a constructive termination by the Company (such as a
termination by the Participant for specified reasons), and (iii) may be
deemed (subject to actual occurrence of the Change in Control Event before
expiration or other termination of the Award) to include any such termination
by the Company in express contemplation of a publicly announced Change in
Control Event.

 

                The
Committee may override the provisions regarding acceleration in this
Section 6.2(c) by express provision in the Award Agreement or otherwise
and may accord any Eligible Person a right to refuse any acceleration, whether
pursuant to the Award Agreement or otherwise, in such circumstances as the
Committee may approve. Any acceleration of Awards shall comply with applicable
legal requirements and, if necessary to accomplish the purposes of the
acceleration or if the circumstances require, may be deemed by the Committee to
occur (subject to Section 6.2(d)), immediately prior to the event.

 

                (d)           Limitation
on Award Adjustments.  To the
extent limited by Section 162(m) in the case of an Award intended as a
performance-based award for purposes of Section 162(m) and necessary to
assure deductibility of the compensation payable under the Award, the Committee
shall have no discretion under this Plan (i) to increase the amount of
compensation or the number of shares that would otherwise be due upon the
attainment of the applicable performance goal or the exercise of the option or
SAR or (ii) to waive the achievement of any applicable performance goal as
a condition to receiving a benefit or right under an Award.

 

                (e)           No
Extension Beyond Expiration. 
Notwithstanding the foregoing, in no event shall an Award be reinstated
or extended beyond its final expiration date.

 

                (f)            Possible
Rescission of Acceleration. 
If the vesting of an Award has been accelerated expressly in
anticipation of an event or upon stockholder approval of an event and the
Committee or the Board later determines that the event will not occur, the
Committee may rescind the effect of the acceleration as to any then outstanding
and unexercised or otherwise unvested Awards.

 

                (g)           Terminology.  As used in this Section 6.2 and without
limiting the authority of the Board in other contexts, the term “Committee”
includes alternatively, the Board.

 

                6.3           Effect
of Termination of Service on Awards.

 

                (a)           General.  Subject to Section 2.6, the Committee
shall establish the effect of a termination of employment or service on the
rights and benefits under each Award under this Plan and in so doing may make
distinctions based upon, inter alia, the cause of termination and type of
Award. Unless otherwise provided in the Award or other provision of this Plan
or another written agreement with the Participant, the Severance Date shall be
the later of (1) the date of termination (for any reason whatsoever) of
the Participant’s employment by the Company, in the case of an Award granted to
an employee; (2) the date of termination of directorship in the case of an
Award granted to or held by a director (or former employee continuing in
service as a director); or (3) the date of termination of services to the
Company, as determined by the Committee, in the case of an Other Eligible
Person. Notwithstanding the foregoing, the Committee may authorize by express
provision in or amendment to an Award an extension of the date of termination
of the Award if a person’s status after grant changes from one eligible
category to another, or in other circumstances that the Committee deems
appropriate.

 

                (b)           Termination
of Consulting or Affiliate Services.  If the Participant is not an Eligible Employee or Non-Employee
Director and provides services as an Other Eligible Person, the Committee shall
be the sole judge of whether the Participant continues to render services to
the Company, unless a written agreement with the Participant or the Award
otherwise provides. If in these circumstances the Company notifies the
Participant in writing that a termination of services of the Participant for
purposes of this Plan has occurred, then (unless the written agreement or Award
otherwise expressly provides), the Participant’s termination of services for
purposes of

 

14

 

Section 2.6, 3, 4.3 or 5 shall be the date which is
10 days after the Company’s mailing of the notice or, in the case of a
termination for Cause, the date of the mailing of the notice.

 

                (c)           Effect
on Unvested Awards.  Unless
otherwise provided in the applicable Award Agreement and subject to the other
provisions of this Plan, a Restricted Stock Award, Stock Appreciation Right,
Performance Share Award, or Stock Unit Award, to the extent such Award has not
become exercisable, or vested, as the case may be, as of the applicable
Severance Date, shall terminate on the Severance Date without further payment
or benefit of any kind; and any Option theretofore outstanding and not exercisable
shall terminate. Vested Options and any related SARs are further subject to the
provisions of Section 2.6.

 

                (d)           Events
Not Deemed Terminations of Service. 
Unless Company policy or the Committee otherwise provides, the
employment relationship shall not be considered terminated in the case of
(i) sick leave, (ii) military leave, or (iii) any other leave of
absence authorized by the Company or the Committee; provided that unless
reemployment upon the expiration of such leave is guaranteed by contract or
law, such leave is for a period of not more than 90 days. In the case of
any Eligible Employee on an approved leave of absence, continued vesting of the
Award while on leave from the employ of the Company may be suspended until the
employee returns to service, unless the Committee otherwise provides or
applicable law otherwise requires. In no event shall an Award be exercised
after the expiration of the term set forth in the Award Agreement.

 

                (e)           Effect
of Change of Subsidiary Status. 
For purposes of this Plan and any Award, if an entity ceases to be a
Subsidiary an involuntary termination of employment or service shall be deemed
to have occurred with respect to each Eligible Person in respect of the
Subsidiary who does not continue as an Eligible Person in respect of another
entity within the Company after giving effect to the Subsidiary’s change of
status.

 

                6.4           Compliance
with Laws.

 

                This
Plan, the granting and vesting of Awards under this Plan, the offer, issuance
and delivery of shares of Common Stock, and/or the payment of money under this
Plan or under Awards are subject to compliance with all applicable federal and
state laws, rules and regulations (including but not limited to state and
federal securities law), and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be
necessary or advisable in connection therewith. The person acquiring any
securities under this Plan will, if requested by the Company, provide such
assurances and representations to the Company as the Committee may deem
necessary or desirable to assure compliance with all applicable legal and
accounting requirements.

 

                6.5           Tax Matters.

 

                Upon
any exercise, vesting, or payment of any Award or upon the disposition of
shares of Common Stock acquired pursuant to the exercise of an Incentive Stock
Option prior to satisfaction of the holding period requirements of
Section 422 of the Code, the Company shall have the right at its option to
(i) require the Participant (or Personal Representative or Beneficiary, as
the case may be) to pay or provide for payment of at least the minimum amount
of any taxes which the Company may be required to withhold with respect to such
Award event or payment or (ii) deduct from any amount payable in cash the
minimum amount of any taxes which the Company may be required to withhold with
respect to such cash payment. In any case where a tax is required to be
withheld in connection with the delivery of shares of Common Stock under this
Plan, the Committee may in its sole discretion (subject to Section 6.4)
grant (either at the time of the Award or thereafter) to the Participant the
right to elect, pursuant to such rules and subject to such conditions as the
Committee may establish, to have the Corporation reduce the number of shares to
be delivered by (or otherwise reacquire) the appropriate number of shares,
valued in a consistent manner at their Fair Market Value or at the sales price
in accordance with authorized procedures for cashless exercises, necessary to
satisfy the minimum applicable withholding obligation on exercise, vesting or
payment. Shares in no event shall be withheld in excess of the minimum number
required for tax withholding under applicable law.

 

15

 

                6.6           Plan
and Award Amendments, Termination and Suspension.

 

                (a)           Board
Authorization.  The Board
may, at any time, terminate or, from time to time, amend, modify or suspend
this Plan, in whole or in part. No Awards may be granted during any suspension
of this Plan or after termination of this Plan, but the Committee shall retain
jurisdiction as to Awards then outstanding in accordance with the terms of this
Plan.

 

                (b)           Stockholder
Approval.  To the extent then
required under Section 2.5 of the Plan, Sections 162, 422 or 424 of the
Code or any other applicable law or listing agency, or deemed necessary or
advisable by the Board, any amendment to this Plan shall be subject to
stockholder approval.

 

                (c)           Amendments
to Awards.  Without limiting
any other express authority of the Committee under (but subject to) the express
limits of this Plan, the Committee by agreement or resolution may waive
conditions of or limitations on Awards to Participants that the Committee in
the prior exercise of its discretion has imposed, without the consent of a
Participant, and (subject to the requirements of Sections 1.2(b), 1.6, 2.5 and
6.6(d) and subject to the resolutions of the Board approving the Plan) may make
other changes to the terms and conditions of Awards, including without
limitation, providing for shorter vesting periods or longer exercise periods
for Awards.

 

                (d)           Limitations
on Amendments to Plan and Awards. 
No amendment, suspension or termination of this Plan or change of or
affecting any outstanding Award shall, without written consent of the
Participant, affect in any manner materially adverse to the Participant any
rights or benefits of the Participant or obligations of the Company under any
Award granted under this Plan prior to the effective date of such change.
Changes contemplated by Section 6.2 shall not be deemed to constitute
changes or amendments for purposes of this Section 6.6.

 

                (e)           ISO
Acceleration.  The portion of
any Incentive Stock Option accelerated in connection with a Change in Control
Event or any other action permitted hereunder shall remain exercisable as an
Incentive Stock Option only to the extent the applicable $100,000 limitation is
not exceeded. To the extent exceeded, the accelerated portion of the Option
shall be exercisable as a Nonqualified Stock Option under the Code.

 

                6.7           Privileges
of Stock Ownership.

 

                Except
as otherwise expressly authorized by the Committee or this Plan, a Participant
shall not be entitled to any privilege of stock ownership as to any shares of
Common Stock not actually delivered to and held of record by the Participant.
No adjustment will be made for dividends or other rights as a stockholder for
which a record date is prior to such date of delivery.

 

                6.8           Effective
Date of the Plan.

 

                This
Plan is effective as of April 1, 2003 the date of approval by the Board.
The Plan shall be submitted for and subject to stockholder approval.

 

                6.9           Term of the Plan.

 

                No
Award will be granted under this Plan after March 31, 2013 (the
“termination date”). Unless otherwise expressly provided in this Plan or in an
applicable Award Agreement, any Award granted prior to the termination date may
extend beyond such date, and all authority of the Committee with respect to
Awards hereunder, including the authority to amend an Award, shall continue
during any suspension of this Plan and in respect of Awards outstanding on the
termination date.

 

16

 

                6.10         Governing
Law/Construction/Severability.

 

                (a)           Choice
of Law.  This Plan, the
Awards, all documents evidencing Awards and all other related documents shall
be governed by, and construed in accordance with the laws of the State of
Maryland.

 

                (b)           Severability.  If a court of competent jurisdiction holds
any provision invalid and unenforceable, the remaining provisions of this Plan
shall continue in effect.

 

                (c)           Plan
Construction.

 

                (1)           Rule 16b-3.  It is the intent of the Corporation that the
Awards and transactions permitted by Awards be interpreted in a manner that, in
the case of Participants who are or may be subject to Section 16 of the
Exchange Act, qualify, to the maximum extent compatible with the express terms
of the Award, for exemption from matching liability under Rule 16b-3.
Notwithstanding the foregoing, the Corporation shall have no liability to any
Participant for Section 16 consequences of Awards or events under Awards
or if a particular Award or event does not so qualify.

 

                (2)           Section 162(m).  It is the further intent of the Company that
(to the extent the Company or Awards under this Plan may be or become subject
to limitations on deductibility under Section 162(m) of the Code), Options
or SARs granted with an exercise or base price not less than Fair Market Value on the date of
grant and performance-based awards under Section 5.2 of this Plan that are
granted to or held by a person subject to Section 162(m) of the Code will
qualify as performance-based compensation or otherwise be exempt from
deductibility limitations under Section 162(m) of the Code, to the extent
that the authorization of the Award (or the payment thereof, as the case may
be) satisfies any applicable administrative requirements thereof.

 

                6.11         Captions.

 

                Captions
and headings are given to the sections and subsections of this Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any
way material or relevant to the construction or interpretation of this Plan or
any provision thereof.

 

                6.12         Stock-Based
Awards in Substitution for Stock Options or Awards Granted by Other
Corporation.

 

                Awards
may be granted under this Plan in substitution for or in connection with an
assumption of employee stock options, SARs, restricted stock or other
stock-based awards granted by other entities to persons who are or who will
become Eligible Persons in respect of the Company, in connection with a
distribution, merger or other reorganization by or with the granting entity or
an affiliated entity, or the acquisition by the Company, directly or
indirectly, of all or a substantial part of the stock or assets of the
employing entity. The Awards so granted need not comply with other specific
terms of this Plan, provided the Awards reflect only adjustments giving effect
to the assumption or substitution consistent with the conversion applicable to
the Common Stock in the transaction and any change in the issuer of the
security.

 

                Any
such shares that are issued and any awards that are granted by, or become
obligations of, the Company, as a result of the assumption by the Company or an
affiliate of, or in substitution for, outstanding awards previously granted by
an acquired company (or previously granted by a predecessor employer (or direct
or indirect parent thereof) in the case of persons that become employed by the
Company (or a subsidiary or affiliate) in connection with a business or asset
acquisition or similar transaction) shall not be counted against the maximum
number of shares and awards available for issuance under the Plan.

 

17

 

 

                6.13         Non-Exclusivity
of Plan.

 

                Nothing
in this Plan shall limit or be deemed to limit the authority of the Board or
the Committee to grant awards or authorize any other compensation, with or
without reference to the Common Stock, under any other plan or authority.

 

                6.14         No
Corporate Action Restriction.

 

                The
existence of the Plan, the Award Agreements and the Awards granted hereunder
shall not limit, affect or restrict in any way the right or power of the Board
or the stockholders of the Corporation to make or authorize: (a) any
adjustment, recapitalization, reorganization or other change in the
Corporation’s or any Subsidiary’s capital structure or its business,
(b) any merger, amalgamation, consolidation or change in the ownership of
the Corporation or any subsidiary, (c) any issue of bonds, debentures,
capital, preferred or prior preference stock ahead of or affecting the
Corporation’s or any Subsidiary’s capital stock or the rights thereof,
(d) any dissolution or liquidation of the Corporation or any Subsidiary,
(e) any sale or transfer of all or any part of the Corporation or any
Subsidiary’s assets or business, or (f) any other corporate act or
proceeding by the Corporation or any Subsidiary. No participant, beneficiary or
any other person shall have any claim under any Award or Award Agreement
against any member of the Board or the Committee, or the Corporation or any
employees, officers or agents of the Corporation or any Subsidiary, as a result
of any such action.

 

                6.15         Other
Company Benefit and Compensation Program.

 

                Payments
and other benefits received by a Participant under an Award made pursuant to
this Plan shall not be deemed a part of a Participant’s compensation for
purposes of the determination of benefits under any other employee welfare or
benefit plans or arrangements, if any, provided by the Corporation or any
Subsidiary, except where the Committee or the Board expressly otherwise
provides or authorizes in writing. Awards under this Plan may be made in
addition to, in combination with, as alternatives to or in payment of grants,
awards or commitments under any other plans or arrangements of the Company or
the Subsidiaries.

 

7.             DEFINITIONS.

 

                7.1           Definitions.

 

                (a)           “Award” means an award of any Option, Stock
Appreciation Right, Restricted Stock, Stock Bonus, Stock Unit, Performance
Share Award, Dividend Equivalent Right or deferred payment right, convertible
security pursuant to Section 5.7, or other right or security that would
constitute a “derivative security” under Rule 16a-1(c) of the Exchange
Act, or any combination thereof, whether alternative or cumulative, authorized
by and granted under this Plan.

 

                (b)           “Award Agreement” means any writing setting forth the
terms of an Award that has been authorized by the Committee.

 

                (c)           “Award Date” means the date upon which the
Committee took the action granting an Award or such later date as the Committee
designates as the Award Date at the time of the Award or, in the case of Awards
under Article 8, the applicable dates set forth therein.

 

                (d)           “Award Period” means the period beginning on an
Award Date and ending on the expiration date of such Award.

 

                (e)           “Beneficial Ownership” shall mean ownership of Equity
Shares by a person who would be treated as an owner of such shares either directly
or indirectly through the application of Section 544 of the Code, as
modified by Section 856(h)(1)(B) of the Code. The terms “Beneficial
Owner,” “Beneficially Owns” and “Beneficially Owned” shall have correlative
meanings.

 

18

 

                (f)            “Beneficiary” means the person, persons, trust or
trusts designated by a Participant or, in the absence of a designation,
entitled by will or the laws of descent and distribution, to receive the
benefits specified in the Award Agreement and under this Plan in the event of a
Participant’s death, and shall mean the Participant’s executor or administrator
if no other Beneficiary is designated and able to act under the circumstances.

 

                (g)           “Board” means the Board of Directors of the
Corporation.

 

                (h)           “Cause” with respect to a Participant means
(unless otherwise expressly provided in the applicable Award Agreement or
another applicable agreement with the Participant) a termination of service
based upon a finding by the Company, acting in good faith based on its
reasonable belief at the time, that the Participant:

 

                (1)           has failed to perform job duties in a
material respect without proper cause; or

 

                (2)           has materially breached a fiduciary
duty, or willfully and materially violated any other duty, law, rule,
regulation or policy of the Company in a manner injurious to the Company; or
has been convicted of a felony; or

 

                (3)           has materially breached any of the
provisions of any agreement with the Company.

 

A termination for Cause shall be deemed to occur (subject
to reinstatement upon a contrary final determination by the Committee) on the
date on which the Company first delivers written notice to the Participant of a
finding of termination for Cause.

 

                (i)            “Change in Control
Event” means any of the following:

 

                (1)           The acquisition by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act (a “Person”) of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either
(A) the then-outstanding shares of common stock of the Corporation (the
“Outstanding Company Common Stock”) or (B) the combined voting power of
the then-outstanding voting securities of the Corporation entitled to vote
generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that, for purposes of this definition), the
following acquisitions shall not constitute a Change of Control; (i) any
acquisition directly from the Corporation, (ii) any acquisition by the
Corporation, (iii) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Corporation or any affiliate of
the Corporation or successor or (iv) any acquisition by any entity
pursuant to a transaction that complies with Sections (3)(A), (3)(B) and (3)(C)
below;

 

                (2)           Individuals who, as of the date
hereof, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Corporation’s stockholders, was approved by a
vote of at least two-thirds of the directors then comprising the Incumbent
Board (including for these purposes, the new members whose election or
nomination was so approved, without counting the member and his predecessor
twice) shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board;

 

                (3)           Consummation of a reorganization,
merger, statutory share exchange or consolidation or similar corporate
transaction involving the Corporation or any of its subsidiaries, a sale or
other disposition of all or substantially all of the assets of the Corporation,
or the acquisition of assets or stock of another entity by the Corporation or
any of its subsidiaries (each, a

 

19

 

“Business Combination”), in each case unless, following
such Business Combination, (A) all or substantially all of the individuals
and entities that were the beneficial owners of the Outstanding Company Common
Stock and the Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 60% of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the entity resulting from such
Business Combination (including, without limitation, an entity that, as a
result of such transaction, owns the Corporation or all or substantially all of
the Corporation’s assets directly or through one or more subsidiaries (“Parent”))
in substantially the same proportions as their ownership immediately prior to
such Business Combination of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (B) no Person
(excluding any entity resulting from such Business Combination or a Parent or
any employee benefit plan (or related trust) of the Corporation or such entity
resulting from such Business Combination or Parent) beneficially owns, directly
or indirectly, 20% or more of, respectively, the then-outstanding shares of
common stock of the entity resulting from such Business Combination or the
combined voting power of the then-outstanding voting securities of such entity,
except to the extent that the ownership in excess of 20% existed prior to the
Business Combination, and (C) at least a majority of the members of the
board of directors or trustees of the entity resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of
the initial agreement or of the action of the Board providing for such Business
Combination; or

 

                (4)           Approval by the stockholders of the
Corporation of a complete liquidation or dissolution of the Corporation.

 

                (j)            “Code” means the Internal Revenue Code of
1986, as amended from time to time.

 

                (k)           “Commission” means the Securities and Exchange
Commission.

 

                (l)            “Committee” means the Board or one or more
committees appointed by the Board to administer all or certain aspects of this
Plan, each committee to be comprised solely of one or more directors or such
number as may be required under applicable law or the Corporation’s Articles of
Amendment and Restatement or By-Laws. Each member of a Committee in respect of
his or her participation in any decision with respect to an Award intended to
satisfy the requirements of Section 162(m) of the Code must satisfy the
requirements of “outside director” status within the meaning of
Section 162(m) of the Code; provided,
however, that the failure to satisfy such requirement shall not affect the
validity of the action of any committee otherwise duly authorized and acting in
the matter.

 

                (l)            “Common Stock” means the Common Stock of the
Corporation and such other securities or property as may become the subject of
Awards, or become subject to Awards, pursuant to an adjustment made under
Section 6.2 of this Plan.

 

                (m)          “Company” means, collectively, the Corporation
and its Subsidiaries.

 

                (n)           “Constructive
Ownership” shall mean ownership of Equity Shares by a person who
would be treated as an owner of such shares either directly or indirectly
through the application of Section 318 of the Code, as modified by
Section 856(d)(5) of the Code. The terms “Constructive Owner,”
“Constructive Owns” and “Constructively Owned” shall have correlative meanings.

 

                (o)           “Corporation” means The Macerich Company, a
Maryland corporation, and its successors.

 

                (p)           “Dividend Equivalent
Right” means a right authorized under Section 5.6 of this
Plan.

 

20

 

                (q)           “Eligible Employee” means an officer (whether or not a
director) or key employee of the Company.

 

                (r)            “Eligible Person” means an Eligible Employee, a
Non-Employee Director or any Other Eligible Person, as designated by the
Committee in its discretion.

 

                (s)           “Equity Shares” means shares that are either Common
Stock or Preferred Stock.

 

                (t)            “Exchange Act” means the Securities Exchange Act of
1934, as amended from time to time.

 

                (u)           “Fair Market Value” on any date means (1) if the
stock is listed or admitted to trade on a national securities exchange, the
closing price of the stock on the Composite Tape, as published in the Western
Edition of The Wall Street Journal, of the principal national securities
exchange on which the stock is so listed or admitted to trade, on such date,
or, if there is no trading of the stock on such date (or if the market has not
closed at the applicable time), then the closing price of the stock as quoted
on such Composite Tape on the next preceding date on which there was trading in
such shares; (2) if the stock is not listed or admitted to trade on a
national securities exchange, the last price for the stock on such date, as
furnished by the National Association of Securities Dealers, Inc. (“NASD”)
through the NASDAQ National Market Reporting System or a similar organization
if the NASD is no longer reporting such information; (3) if the stock is
not listed or admitted to trade on a national securities exchange and is not
reported on the National Market Reporting System, the mean between the bid and
asked price for the stock on such date, as furnished by the NASD or a similar
organization; or (4) if the stock is not listed or admitted to trade on a
national securities exchange, is not reported on the National Market Reporting
System and if bid and asked prices for the stock are not furnished by the NASD
or a similar organization, the value as established by the Committee at such
time for purposes of this Plan.

 

                (v)           “Incentive Stock
Option” means an Option which is intended, as evidenced by its
designation, as an incentive stock option within the meaning of
Section 422 of the Code, the award of which contains such provisions
(including but not limited to the receipt of stockholder approval of this Plan,
if the Award is made prior to such approval) and is made under such
circumstances and to such persons as may be necessary to comply with that
section.

 

                (w)          “Nonqualified Stock
Option” means an Option that is designated as a Nonqualified
Stock Option and shall include any Option intended as an Incentive Stock Option
that fails to meet the applicable legal requirements thereof. Any Option
granted hereunder that is not designated as an incentive stock option shall be
deemed to be designated a nonqualified stock option under this Plan and not an
incentive stock option under the Code.

 

                (x)            “Non-Employee
Director” means a member of the Board of Directors of the
Corporation who is not an officer or employee of the Company.

 

                (y)           “Option” means an option to purchase Common
Stock granted under this Plan. The Committee shall designate any Option granted
to an Eligible Person as a Nonqualified Stock Option or an Incentive Stock
Option.

 

                (z)            “Other Eligible
Person” means any individual consultant or advisor who renders or
has rendered bona fide services
(other than services in connection with the offering or sale of securities of
the Company in a capital raising transaction or as a market maker or promoter
of the Company’s securities) to the Company, and who is selected to participate
in this Plan by the Committee. An advisor or consultant may be selected as an
Other Eligible Person only if such person’s participation in this Plan would
not adversely affect (1) the Corporation’s eligibility to use
Form S-8 to register under the Securities Act of 1933, as amended, the
offering of shares issuable

 

21

 

under this Plan by the Company or (2) the
Corporation’s or any Subsidiary’s compliance with any other laws applicable to
transactions or determinations under this Plan.

 

                (aa)“Ownership Limit” means 9.8% of the lesser of the
number or value of the outstanding Equity Shares of the Corporation, except as
otherwise permitted under the charter of the Corporation.

 

                (bb)“Participant” means an Eligible Person who has been
granted an Award under this Plan.

 

                (cc)“Performance Share
Award” means an Award of a right to receive shares of Common
Stock under Section 5.1, or to receive shares of Common Stock or other
compensation (including cash) under Section 5.2, the issuance or payment
of which is contingent upon, among other conditions, the attainment of
performance objectives specified by the Committee.

 

                (dd)“Personal
Representative” means the person or persons who, upon the disability or
incompetence of a Participant, shall have acquired on behalf of the
Participant, by legal proceeding or otherwise, the power to exercise the rights
or receive benefits under this Plan and who shall have become the legal
representative of the Participant.

 

                (ee)“Plan” means this 2003 Equity Incentive
Plan, as it may be amended from time to time.

 

                (ff)“Preferred Stock” means the Preferred Stock of the
Corporation.

 

                (gg)“Qualified
Termination” is defined in Section 6.2(c).

 

                (hh)“Restricted Shares” or “Restricted
Stock” means shares of Common Stock awarded to a Participant under
this Plan, subject to payment of such consideration, if any, and such
conditions on vesting (which may include, among others, the passage of time,
specified performance objectives or other factors) and such transfer and other
restrictions as are established in or pursuant to this Plan and the related
Award Agreement, for so long as such shares remain unvested under the terms of
the applicable Award Agreement.

 

                (ii)“Retirement” means retirement with the consent of
the Company, from active service as an employee or officer of the Company or,
in the case of a Non-Employee Director, a retirement or resignation as a
director, in each case only on or after attaining age 55 with 10 or more years
of service or after attaining age 65.

 

                (jj)“Rule 16b-3” means Rule 16b-3 as promulgated
by the Commission pursuant to the Exchange Act, as amended from time to time.

 

                (kk)“Section 16
Person” means a person subject to Section 16(a) of the
Exchange Act.

 

                (ll)“Securities Act” means the Securities Act of 1933, as
amended from time to time.

 

                (mm)“Severance Date” means the date of termination of
employment or service as further defined in Section 6.3.

 

                (nn)“Stock Appreciation
Right” means a right authorized under this Plan to receive a number
of shares of Common Stock or an amount of cash, or a combination of shares and
cash, the aggregate amount or value of which is determined by reference to a
change in the Fair Market Value of the Common Stock.

 

                (oo)“Stock Bonus” means an Award of shares of Common
Stock granted under this Plan for no consideration other than past services and
without restriction other than such transfer or other restrictions as the
Committee may deem advisable to assure compliance with law.

 

                (pp)“Stock Unit” means a bookkeeping entry which
serves as a unit of measurement relative to a share of Common Stock for
purposes of determining the payment, in Common Stock or cash, of an Award,
including a deferred benefit or right under this Plan. Stock Units are not
outstanding

 

22

 

shares and do not entitle a Participant to any dividend,
voting or other rights in respect of any Common Stock represented thereby or
acquirable thereunder. Stock Units, may, however, by express provision in the
applicable Award Agreement, entitle a Participant to dividend equivalent
rights, as defined by the Committee.

 

                (qq)“Subsidiary” means The Macerich Partnership,
L.P., Macerich Management Company, Macerich Property Management Company, LLC,
Westcor Partners, LLC, Westcor Partners Properties, LLC, Macerich Westcor
Management, LLC and Westcor Partners of Colorado, LLC, Macerich Queens Limited
Partnership, Macerich Queens Expansion, LLC, or any corporation or other entity
controlled (by stock ownership or otherwise), directly or indirectly by, or
under common control with, the Corporation.

 

                (rr)“Total Disability” means a “permanent and total
disability” within the meaning of Section 22(e)(3) of the Code and such
other disabilities, infirmities, afflictions or conditions as the Committee by
rule may include.

 

8.             NON-EMPLOYEE DIRECTOR FORMULA OPTIONS

 

                8.1           Participation.

 

                Awards
under this Article 8 shall be made only to Non-Employee Directors and
shall be evidenced by Award Agreements approved by the Board or the Committee.

 

                8.2           Annual
Option Grants.

 

                (a)           Time
of Initial Award.  After
approval of this Plan by the stockholders of the Corporation, if any person who
is not then an officer or employee of the Company shall become a director of
the Corporation, there shall be granted automatically to such person (without
any action by the Board or Committee) a Nonqualified Stock Option (the Award
Date of which shall be the date such person takes office) to purchase 2,500
shares of Common Stock.

 

                (b)           Subsequent
Annual Awards.  On
December 31 in each year during the term of the Plan commencing 2003,
there shall be granted automatically (without any action by the Committee or
the Board) a Nonqualified Stock Option (the Award Date of which shall be such
date) to each Non-Employee Director then continuing in office to purchase 5,000
shares of Common Stock.

 

                (c)           Maximum
Number of Shares.  Annual
grants that would otherwise exceed the maximum number of shares under
Section 1.4(a) shall be prorated within such limitation. A Non-Employee
Director shall not receive more than one Nonqualified Stock Option under this
Section 8.2 in any calendar year.

 

                8.3           Option Price.

 

                The
purchase price per share of the Common Stock covered by each Option granted
pursuant to Section 8.2 hereof shall be 100 percent of the Fair
Market Value of the Common Stock on the Award Date. The exercise price of any
Option granted under this Article shall be paid in full at the time of each
purchase in cash or by check or in shares of Common Stock valued at their Fair
Market Value on the date of exercise of the Option, or partly in such shares
and partly in cash, provided that any
such shares used in payment shall have been owned by the Participant at least
six months prior to the date of exercise. In addition to the payment methods
described above and to the extent permitted by applicable law, the Option may
be exercised and payment made by delivering a properly executed exercise notice
together with irrevocable instructions to a broker to promptly deliver to the
Corporation the amount of sale proceeds necessary to pay the exercise price.
The Corporation shall not be obligated to deliver the shares unless and until
it receives full payment of the exercise price therefor.

 

23

 

                8.4           Option
Period and Exercisability.

 

                Each
Option granted under this Article 8 and all rights or obligations
thereunder shall expire ten years after the Award Date and shall be subject to
earlier termination as provided below. Each Option granted under
Section 8.2 shall become exercisable upon the date which is six months
after the Award Date.

 

                8.5           Termination
of Directorship.

 

                (a)           If a Non-Employee Director’s services
as a member of the Board of Directors terminate due to death or Total
Disability, any Option granted pursuant to this Article 8 held by such
Participant shall immediately become and shall remain exercisable for one year
after the date of such termination and no longer, or until the expiration of
the stated term of such Option, whichever first occurs.

 

                (b)           If a Non-Employee Director’s services
as a member of the Board of Directors terminate for any reason other than due
to death, Total Disability or for cause, then any Option granted pursuant to
this Article 8 which is not then exercisable shall terminate and any
Option which is then exercisable shall remain exercisable for one year after
the date of such termination and no longer, or until the expiration of the
stated term of such Option, whichever first occurs.

 

                (c)           If a Non-Employee Director’s services
as a member of the Board of Directors terminate for cause (as determined under
applicable law), the Option shall terminate on the date of such termination.

 

                8.6           Adjustments;
Acceleration.

 

                Options
granted under this Article 8 shall be subject to adjustment as provided in
Section 6.2, but only to the extent that such adjustment is generally
consistent with adjustments to Options held by persons other than executive
officers or directors of the Corporation. Upon the occurrence of a Change in
Control Event, each Option granted under Section 8.2 hereof shall become
immediately exercisable in full. To the extent that any Option granted under
this Article 8 is not exercised prior to (a) a dissolution of the
Corporation or (b) a merger or other corporate event that the Corporation
does not survive, and no provision is (or consistent with the provisions of
Section 6.2 can be) made for the assumption, conversion, substitution or
exchange of the Option, the Option shall terminate upon the occurrence of such
event.

 

24

 

EXHIBIT A

 

PERFORMANCE-BASED
BUSINESS CRITERIA

 

                Funds From Operations means Funds from
Operations, as defined by The National Association of Real Estate Investment
Trusts at the time of the grant of an Award, for the applicable period, as
reflected in the Corporation’s periodic financial reports for the period, on an
aggregate, diluted and/or per share basis.

 

                Stock Appreciation means an increase in
the price or value of the Common Stock of the Corporation after the date of
grant of an Award and during the applicable period.

 

                Total Stockholder Return means the
aggregate Common Stock price appreciation and dividends paid (assuming full
reinvestment of dividends) during the applicable period.

 

                Occupancy Gains means increases in the
occupancy level (leased and occupied areas) of malls and freestanding store
area (excluding Anchors) (owned at both the beginning and end of the applicable
period) during the period, measured as a percentage of the gross
leasable/occupiable area of such properties, as reported to the Committee for
inclusion in the Corporation’s reports to the SEC for the applicable period.

 

                EBITDA means earnings before interest,
taxes, depreciation and amortization for the applicable period, as reflected in
the Corporation’s financial reports for the applicable period.

 

                Total Revenue Growth means the increase in
total revenues after the date of grant of an Award and during the applicable
period, as reflected in the Corporation’s financial reports for the applicable
period.

 

                Net Income means net income as reflected
in the Corporation’s financial reports for the applicable period, on an
aggregate, diluted and/or per share basis.

 

                Square Footage Growth means the increase,
between the beginning and end of the applicable period, in the square feet of
gross leasable mall and free standing stores area (excluding Anchors), as
reported to the Committee for inclusion in the Corporation’s reports to the SEC
for the applicable period.

 

                Sales Per Square Foot Growth means the
increase in the average sales per square foot of leased space by retailers
leasing mall and freestanding stores with 10,000 square feet or less (excluding
theaters) that occupied their space during the entire year or other applicable
period over the average sales per square foot of leased space by such retailers
that occupied their space for the entire preceding year or other preceding
applicable period, as reported to the Committee for inclusion in the
Corporation’s reports to the SEC for the applicable periods.

 

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

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