Document:

2006 Equity Incentive Plan

 Exhibit 10.2 
  
  
 MERUELO MADDUX PROPERTIES, INC. 
 2006 EQUITY INCENTIVE PLAN 
  

			
	MERUELO MADDUX PROPERTIES, INC.	 	2006 EQUITY INCENTIVE PLAN

 TABLE OF CONTENTS 
  

					
	Section	    	 	  	Page
			
	Article I	    	 DEFINITIONS
	  	
			
	1.01.	    	 Acquiring Person
	  	
	1.02.	    	 Affiliate
	  	
	1.03.	    	 Agreement
	  	
	1.04.	    	 Associate
	  	
	1.05.	    	 Board
	  	
	1.06.	    	 Change in Control
	  	
	1.07.	    	 Code
	  	
	1.08.	    	 Committee
	  	
	1.09.	    	 Common Stock
	  	
	1.10.	    	 Company
	  	
	1.11.	    	 Continuing Director
	  	
	1.12.	    	 Control Change Date
	  	
	1.13.	    	 Corresponding SAR
	  	
	1.14.	    	 Dividend Equivalent Right
	  	
	1.15.	    	 Effective Date
	  	
	1.16.	    	 Exchange Act
	  	
	1.17.	    	 Fair Market Value
	  	
	1.18	    	 Initial Public Offering
	  	
	1.19.	    	 Initial Value
	  	
	1.20.	    	 Operating Partnership
	  	
	1.21.	    	 Option
	  	
	1.22.	    	 Other Equity-Based Award
	  	
	1.23.	    	 Participant
	  	
	1.24.	    	 Performance Shares
	  	
	1.25.	    	 Person
	  	
	1.26.	    	 Plan
	  	
	1.27.	    	 Related Entity
	  	
	1.28.	    	 SAR
	  	
	1.29.	    	 Securities Act
	  	
	1.30.	    	 Stock Award
	  	
	1.31.	    	 Ten Percent Shareholder
	  	
			
	Article II	    	 PURPOSES
	  	
			
	Article III	    	 ADMINISTRATION
	  	
			
	Article IV	    	 ELIGIBILITY
	  	
			
	Article V	    	 COMMON STOCK SUBJECT TO PLAN
	  	
			
	5.01.	    	 Common Stock Issued
	  	
	5.02.	    	 Aggregate Limit
	  	
	5.03.	    	 Reallocation of Shares
	  	
	5.04.	    	 Section 162(m) Award Limits
	  	

			
	MERUELO MADDUX PROPERTIES, INC.	 	2006 EQUITY INCENTIVE PLAN

  

					
			
	Article VI	    	 OPTIONS
	  	
			
	6.01.	    	 Award
	  	
	6.02.	    	 Option Price
	  	
	6.03.	    	 Maximum Option Period
	  	
	6.04.	    	 Nontransferability
	  	
	6.05.	    	 Transferable Options
	  	
	6.06.	    	 Employee Status
	  	
	6.07.	    	 Exercise
	  	
	6.08.	    	 Payment
	  	
	6.09.	    	 Change in Control
	  	
	6.10.	    	 Stockholder Rights
	  	
	6.11.	    	 Disposition of Shares
	  	
			
	Article VII	    	 SARS
	  	
			
	7.01.	    	 Award
	  	
	7.02.	    	 Maximum SAR Period
	  	
	7.03.	    	 Nontransferability
	  	
	7.04.	    	 Transferable SARs
	  	
	7.05.	    	 Exercise
	  	
	7.06.	    	 Change in Control
	  	
	7.07.	    	 Employee Status
	  	
	7.08.	    	 Settlement
	  	
	7.09.	    	 Stockholder Rights
	  	
			
	Article VIII	    	 STOCK AWARDS
	  	
			
	8.01.	    	 Award
	  	
	8.02.	    	 Vesting
	  	
	8.03.	    	 Employee Status
	  	
	8.04.	    	 Change in Control
	  	
	8.05.	    	 Stockholder Rights
	  	
			
	Article IX	    	 PERFORMANCE SHARE AWARDS
	  	
			
	9.01.	    	 Award
	  	
	9.02.	    	 Earning the Award
	  	
	9.03.	    	 Payment
	  	
	9.04.	    	 Stockholder Rights
	  	
	9.05.	    	 Nontransferability
	  	
	9.06.	    	 Transferable Performance Shares
	  	
	9.07.	    	 Employee Status
	  	

					
	9.08.	    	 Change in Control
	  	
	9.09.	    	 Performance Measures
	  	
			
	Article X	    	 OTHER EQUITY—BASED AWARDS
	  	
			
	10.01.	    	 Award
	  	
	10.02.	    	 Terms and Conditions
	  	
	10.03.	    	 Payment or Settlement
	  	
	10.04.	    	 Change in Control
	  	
	10.05.	    	 Employee Status
	  	
	10.06.	    	 Stockholder Rights
	  	
			
	Article XI	    	 ADJUSTMENT UPON CHANGE IN COMMON STOCK
	  	
			
	Article XII	    	 COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES
	  	
			
	Article XIII	    	 GENERAL PROVISIONS
	  	
			
	13.01.	    	 Effect on Employment and Service
	  	
	13.02.	    	 Unfunded Plan
	  	
	13.03.	    	 Rules of Construction
	  	
	13.04.	    	 Withholding Taxes
	  	
	13.05.	    	 Dividends and Dividend Equivalents
	  	
			
	Article XIV	    	 LIMITATION ON BENEFITS
	  	
			
	14.01.	    	 Impact of Change in Control
	  	
	14.02.	    	 Assumption Upon Change in Control
	  	
	14.03.	    	 Cash-Out Upon Change in Control
	  	
	14.04.	    	 Limitation of Benefits
	  	
			
	Article XV	    	 AMENDMENT
	  	
			
	Article XVI	    	 DURATION OF PLAN
	  	
			
	Article XVII	    	 EFFECTIVE DATE OF PLAN
	  	

 ARTICLE I 
 DEFINITIONS 
 1.01. Acquiring Person 
 Acquiring Person means that a Person, considered alone or as part of a “group” within the meaning of Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended, is or becomes directly or indirectly the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of securities representing at least fifty percent (50%) of either (A) the combined voting
power of the Company’s then outstanding securities or (B) the then outstanding Common Stock of the Company (in either case other than as a result of an acquisition of securities directly from the Company). 
 1.02. Affiliate 

 Affiliate means the Operating Partnership and any “subsidiary” or “parent”
corporation (as such terms are defined in Section 424 of the Code) of the Company. 
 1.03. Agreement 
 Agreement means a written agreement (including any amendment or supplement thereto) between the Company and a Participant specifying the terms and
conditions of a Stock Award, an award of Performance Shares, an Option, SAR or Other Equity-Based Award granted to such Participant. 
 1.04.
Associate 
 Associate, with respect to any Person, is defined in Rule 12b-2 of the General Rules and Regulations under
the Exchange Act. An Associate does not include the Company or a majority-owned subsidiary of the Company. 
 1.05. Board 
 Board means the Board of Directors of the Company. 
 1.06.
Change in Control 
 “Change in Control” means (i) a Person is or becomes an Acquiring Person; provided,
however, that in no event shall a Change in Control be deemed to have occurred upon an initial public offering or a subsequent public offering of the Common Stock under the Securities Act; (ii) the closing of any agreement with a Person that
involves the sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the Company’s total assets on a consolidated basis, as
reported in the Company’s consolidated financial statements, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least 50% (fifty percent) of the combined voting power
of the voting securities of which are owned by Persons in substantially the same proportion as their ownership of the Company immediately prior to such sale; (iii) consummation of a transaction pursuant to which the Company will undergo a
merger, consolidation, or statutory share exchange with a Person, regardless of whether the Company is intended to be the surviving or resulting entity after the merger, consolidation, or statutory share exchange, other than a transaction
that results in the voting securities of the Company carrying the right to vote in elections of persons to the Board outstanding immediately prior to the closing of the transaction continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least 50% (fifty percent) of the Company’s voting securities carrying the right to vote in elections of persons to the Company’s Board, or such securities of such surviving
entity or its ultimate parent corporation, if any, outstanding immediately after the closing of such transaction; (iv) the Continuing Directors cease for any reason to constitute a majority of the Board; (v) holders of the securities of
the Company entitled to vote thereon approve a plan of complete liquidation of the Company or an agreement for the liquidation by the Company of all or substantially all of the Company’s assets (or, if such approval is not required by
applicable law and is not solicited by the Company, the commencement of actions constituting such a plan or the closing of such an agreement); or (vi) the Board adopts a resolution to the effect that, in its judgment, as a consequence of any
one or more transactions or events or series of transactions or events, a Change in Control of the Company has effectively occurred. The Board shall be entitled to exercise its sole and absolute discretion in exercising its judgment and in the
adoption of such resolution, whether or not any such transaction(s) or event(s) might be deemed, individually or collectively, to satisfy any of the criteria set forth in subparagraphs (i) through (v) above. 
 1.07. Code 
 Code means the Internal Revenue
Code of 1986, and any amendments thereto. 
 1.08. Committee 
 Committee means the Compensation Committee of the Board. During any period in which awards under this Plan are subject to Section 16 of the Exchange Act, the Compensation Committee will be comprised of at least
two members who are non-employee directors under Rule 16b-3 under the Exchange Act. During any period in which the Company is subject to Code section 162(m), the Compensation Committee will be comprised of members 

 
who are outside directors under Code Section 162(m). No action of the Compensation Committee will be invalidated because any member of the Compensation
Committee fails to satisfy the non-employee director or outside director requirements of Rule 16b-3 or Code Section 162(m), respectively. The Board or a committee appointed by the Board shall serve as the Committee during any period in
which there is no Compensation Committee. 
 1.09. Common Stock 
 Common Stock means the common stock, par value $0.01 per share, of the Company. 
 1.10. Company 
 Company means Meruelo Maddux Properties, Inc., a Delaware corporation. 
 1.11. Continuing Director 
 Continuing Director means any member of the Board, while a member
of the Board and (i) who was a member of the Board on the Effective Date or (ii) whose nomination for or election to the Board was recommended or approved by a majority of the Continuing Directors. 
 1.12. Control Change Date 
 Control Change
Date means the date on which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions, the “Control Change Date” is the date of the last of such transactions. 
 1.13. Corresponding SAR 
 Corresponding SAR
means an SAR that is granted in relation to a particular Option and that can be exercised only upon the surrender to the Company, unexercised, of that portion of the Option to which the SAR relates. 
 1.14. Dividend Equivalent Right 
 Dividend
Equivalent Right means the right, subject to the terms and conditions prescribed by the Committee, of a Participant to receive (or have credited) cash, stock or other property in amounts equivalent to the cash, stock or other property dividends
declared on shares of Common Stock with respect to the specified shares of Common Stock (“Dividend Equivalents”) subject to an Option, SAR, an Other Equity-Based Award or a Performance Share award, as determined by the Committee, in its
sole discretion. The Committee may provide that such Dividend Equivalents (if any) shall be deemed to have been reinvested in additional shares of Common Stock or otherwise reinvested. 
 1.15. Effective Date 
 Effective Date has the meaning set forth in Article XVII of this
Plan. 
 1.16. Exchange Act 
 Exchange Act means the Securities Exchange Act of 1934, as amended. 
 1.17. Fair Market Value 
 Fair Market Value means, on any given date, the reported “closing” price of a share of Common Stock on the principal exchange on which the
Common Stock is listed for trading. If, on any given date, the Common Stock is not listed for trading on an exchange, then Fair Market Value shall be determined by the Committee using any reasonable method in good faith. 
  

 1.18. Initial Public Offering 
 Initial Public Offering means our offering of Common Stock to the public, including shares of Common Stock that may be issued pursuant to the exercise of
the underwriters’ over-allotment option, as described in our registration statement on Form S-11, as amended, originally filed with the Securities and Exchange Commission on September 19, 2006. 
 1.19. Initial Value 
 Initial Value means,
with respect to a Corresponding SAR, the option price per share of the related Option and, with respect to an SAR granted independently of an Option, the price per share of Common Stock as determined by the Committee on the date of grant; provided,
however, that the price shall not be less than the Fair Market Value on the date of grant. 
 1.20. Operating Partnership 
 Operating Partnership means Meruelo Maddux Properties, L.P. 
 1.21. Option 
 Option means a stock option that entitles the holder to purchase from the Company a stated number of
shares of Common Stock at the price set forth in an Agreement. 
 1.22. Other Equity-Based Award 
 Other Equity-Based Award means any award other than an Option, SAR, a Performance Share Award or a Stock Award which, subject to such terms and
conditions as may be prescribed by the Committee, entitles a Participant to receive shares of Common Stock or rights or units valued in whole or in part by reference to, or otherwise based on, shares of Common Stock (including SARs or securities
convertible into shares of Common Stock) or dividends on shares of Common Stock or on other equity interests including interests in the Operating Partnership. Other Equity Based Awards include, but are not limited to, Long Term Incentive Plan Units
(“LTIP Units”). LTIP Units represent an equity interest in the Operating Partnership. 
 1.23. Participant 
 Participant means an employee of the Company or an Affiliate, a member of the Board, or a person or entity that provides significant services to the
Company or an Affiliate and who satisfies the requirements of Article IV and is selected by the Committee to receive an award of Performance Shares, Stock Award, Option, SAR, Other Equity-Based Award or a combination thereof. 
 1.24. Performance Shares 
 Performance Shares
means an award, in the amount determined by the Committee, stated with reference to a specified number of shares of Common Stock, that in accordance with the terms of an Agreement entitles the holder to receive a payment for each specified share
equal to the Fair Market Value of Common Stock on the date of payment or such other amount as provided in the Agreement. 
 1.25. Person

 “Person” means any human being, firm, corporation, partnership, or other entity. “Person” also includes any human
being, firm, corporation, partnership, or other entity as defined in sections 13(d)(3) and 14(d)(2) of the Exchange Act. The term “Person” does not include the Company or any Related Entity, and the term Person does not include any
employee-benefit plan maintained by the Company or any Related Entity, or any person or entity organized, appointed, or established by the Company or any Related Entity for or pursuant to the terms of any such employee-benefit plan, unless the Board
determines that such an employee-benefit plan or such person or entity is a “Person.” 

 1.26. Plan 
 Plan means this Meruelo Maddux Properties, Inc. 2006 Equity Incentive Plan. 
 1.27. Related Entity 

Related Entity means any entity that is part of a controlled group of corporations or is under common control with the Company within the meaning of
Sections 1563(a), 414(b) or 414(c) of the Code. 
 1.28. SAR 
 SAR means a stock appreciation right that in accordance with the terms of an Agreement entitles the holder to receive, with respect to each share of
Common Stock encompassed by the exercise of the SAR, the excess, if any, of the Fair Market Value at the time of exercise over the Initial Value. References to “SARs” include both Corresponding SARs and SARs granted independently of
Options, unless the context requires otherwise. 
 1.29. Securities Act 
 Securities Act means the Securities Act of 1933, as amended. 
 1.30. Stock Award 
 Stock Award means shares of Common Stock awarded to a Participant under Article VIII.

 1.31. Ten Percent Shareholder 
 Ten Percent Shareholder means any individual owning (directly or indirectly within the meaning of Code Section 422) more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of an
Affiliate. An individual shall be considered to own any voting stock owned (directly or indirectly) by or for his or her brothers, sisters, spouse, ancestors or lineal descendants and shall be considered to own proportionately any voting stock owned
(directly or indirectly) by or for a corporation, partnership, estate or trust of which such individual is a shareholder, partner or beneficiary. 
  
 ARTICLE II 
 PURPOSES

 The Plan is intended to assist the Company and its Affiliates in recruiting and retaining individuals and other service providers
with ability and initiative by enabling such persons or entities to participate in the future success of the Company and its Affiliates and to associate their interests with those of the Company and its stockholders. The Plan is intended to permit
the grant of both Options qualifying under Section 422 of the Code (“incentive stock options”) and Options not so qualifying, and the grant of SARs, Stock Awards, Performance Shares, and Other Equity-Based Awards in accordance with
the Plan and any procedures that may be established by the Committee. No Option that is intended to be an incentive stock option shall be invalid for failure to qualify as an incentive stock option. The proceeds received by the Company from the sale
of shares of Common Stock pursuant to this Plan shall be used for general corporate purposes. 
  
 ARTICLE III 
 ADMINISTRATION 
 The Plan shall be administered by the Committee. The Committee shall have authority to grant SARs, Stock Awards, Performance Shares, Options and Other
Equity-Based Awards upon such terms (not inconsistent with the provisions of this Plan), as the Committee may consider appropriate. Such terms may include conditions (in addition to those contained in this Plan), on the exercisability of all or any
part of an Option or SAR or on the 

 
transferability or forfeitability of a Stock Award, an award of Performance Shares or an Other Equity-Based Award. Notwithstanding any such conditions, the
Committee may, in its discretion, accelerate the time at which any Option or SAR may be exercised, or the time at which a Stock Award or Other Equity-Based Award may become transferable or nonforfeitable or the time at which an Other Equity-Based
Award or an award of Performance Shares may be settled. In addition, the Committee shall have complete authority to interpret all provisions of this Plan; to prescribe the form of Agreements; to adopt, amend, and rescind rules and regulations
pertaining to the administration of the Plan; and to make all other determinations necessary or advisable for the administration of this Plan. The express grant in the Plan of any specific power to the Committee shall not be construed as limiting
any power or authority of the Committee. Any decision made, or action taken, by the Committee in connection with the administration of this Plan shall be final and conclusive. The members of the Committee shall not be liable for any act done in good
faith with respect to this Plan or any Agreement, Option, SAR, Stock Award, Other Equity-Based Award or award of Performance Shares. All expenses of administering this Plan shall be borne by the Company. 
 ARTICLE IV 
 ELIGIBILITY

 Any employee of the Company or an Affiliate (including a corporation that becomes an Affiliate after the adoption of this Plan)
and any member of the Board is eligible to participate in this Plan. In addition, any other person or entity that provides significant services to the Company or an Affiliate is eligible to participate in this Plan if the Committee, in its sole
discretion, determines that the participation of such person or entity is in the best interest of the Company. 
 ARTICLE V 

COMMON STOCK SUBJECT TO PLAN 
 5.01.
Common Stock Issued 
 Upon the award of shares of Common Stock pursuant to a Stock Award, an Other Equity-Based Award or in
settlement of an award of Performance Shares, the Company may deliver to the Participant shares of Common Stock from its treasury shares or from its authorized but unissued Common Stock. Upon the exercise of any Option, SAR or Other Equity-Based
Award denominated in shares of Common Stock, the Company may deliver to the Participant (or the Participant’s broker if the Participant so directs), shares of Common Stock from its treasury shares or from its authorized but unissued Common
Stock. 
 5.02. Aggregate Limit 
 (a) The maximum aggregate number of shares of Common Stock that may be issued under this Plan pursuant to the exercise of Options and SARs, the grant of Stock Awards or Other Equity-Based Awards and the settlement of Performance Shares is
equal to five percent of the number of shares of Common Stock sold in our Initial Public Offering. Other Equity-Based Awards covering Operating Partnership units that are convertible (directly or indirectly) into Common Stock shall reduce the
maximum aggregate number of shares of Common Stock that may be issued under this Plan on a one-for-one basis, i.e. , each such unit shall be treated as an award of Common Stock. Awards settled in cash will not reduce the maximum aggregate
number of shares of Common Stock that may be issued under the Plan. 
 (b) The maximum number of shares of Common Stock that may be issued
under this Plan in accordance with Section 5.02(a) shall be subject to adjustment as provided in Article XI. 
 5.03. Reallocation of
Shares 
 If (i) any award or grant under the Plan expires or is terminated without having been exercised or paid (whether in
cash or Common Stock) or (ii) any shares of Common Stock are tendered by a Participant to pay the exercise price of, or are withheld or delivered to satisfy tax obligations in respect of, any award or grant under this Plan, then any shares of
Common Stock covered by such lapsed, cancelled, expired or settled portion of such award 

 or grant and any such withheld or tendered shares of Common Stock shall be available for the grant of other Options,
SARs, Stock Awards, Other Equity-Based Awards and settlement of Performance Shares under this Plan. 
 5.04. Section 162(m) Award Limits.

 The following limits shall apply to the grant of any award under the Plan if, at the time of grant, the Company is a “publicly held
corporation” within the meaning of Section 162(m) of the Code. 
 (a) Options and Stock Agreement Rights. Subject to
adjustment as provided in Article XI, no employee shall be granted within any fiscal year of the Company one or more Options or SARs which in the aggregate are for more than one-third (1/3) of the shares of Common Stock for issuance under the
Plan. 
 (b) Other Awards. Subject to adjustment as provided in Article XI, no employee shall be granted within any fiscal year of the
Company one or more awards (other than options or SARs) subject to vesting based on the attainment of performance goals as described in Section 9.09, for more than one-third (1/3) of the shares of Common Stock in the aggregate under the
Plan. 
 ARTICLE VI 
 OPTIONS 
 6.01. Award 
 In accordance with the provisions of Article IV, the Committee will designate each individual to whom an Option is to be granted and will specify the number of shares of Common Stock covered by such awards.

 6.02. Option Price 
 The price
per share of Common Stock purchased on the exercise of an Option shall be determined by the Committee on the date of grant, but shall not be less than the Fair Market Value on the date the Option is granted. Notwithstanding the preceding sentence,
the price per share for Common Stock purchased on the exercise of any Option that is an incentive stock option granted to an individual who is a Ten Percent Shareholder on the date such option is granted, shall not be less than one hundred ten
percent (110%) of the Fair Market Value on the date the Option is granted. Except as provided in Article XI, the price per share of an outstanding Option may not be reduced (by amendment, cancellation and new grant or otherwise) without
the approval of shareholders. 
 6.03. Maximum Option Period 
 The maximum period in which an Option may be exercised shall be determined by the Committee on the date of grant, except that no Option shall be exercisable after the expiration of ten years from the date such Option
was granted. In the case of an incentive stock option granted to a Participant who is a Ten Percent Shareholder on the date of grant, such Option shall not be exercisable after the expiration of five years from the date of grant. The terms of any
Option may provide that it is exercisable for a period less than such maximum period. 
 6.04. Nontransferability 
 Except as provided in Section 6.05, each Option granted under this Plan shall be nontransferable except by will or by the laws of descent and
distribution. In the event of any transfer of an Option (by the Participant or his transferee), the Option and any Corresponding SAR that relates to such Option must be transferred to the same person or persons or entity or entities. Except as
provided in Section 6.05, during the lifetime of the Participant to whom the Option is granted, the Option may be exercised only by the Participant. No right or interest of a Participant in any Option shall be liable for, or subject to, any
lien, obligation, or liability of such Participant. 
 6.05. Transferable Options 
 Section 6.04 to the contrary notwithstanding, if the Agreement provides, an Option that is not an incentive stock option may be transferred by a
Participant to the Participant’s children, grandchildren, spouse, one or more 

 
trusts for the benefit of such family members or a partnership in which such family members are the only partners, on such terms and conditions as may be
permitted under the rules of Form S-8 as in effect from time to time. The holder of an Option transferred pursuant to this Section shall be bound by the same terms and conditions that governed the Option during the period that it was held by the
Participant; provided, however, that such transferee may not transfer the Option except by will or the laws of descent and distribution. In the event of any transfer of an Option (by the Participant or his transferee), the Option and any
Corresponding SAR that relates to such Option must be transferred to the same person or persons or entity or entities. 
 6.06. Employee Status

 For purposes of determining the applicability of Section 422 of the Code (relating to incentive stock options), or in the event that
the terms of any Option provide that it may be exercised only during employment or continued service or within a specified period of time after termination of employment or continued service, the Committee may decide to what extent leaves of absence
for governmental or military service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service. 
 6.07. Exercise 
 Subject to the provisions of this Plan and the applicable Agreement, an Option may be exercised in
whole at any time or in part from time to time at such times and in compliance with such requirements as the Committee shall determine; provided, however, that incentive stock options (granted under the Plan and all plans of the Company and its
Affiliates) may not be first exercisable in a calendar year for shares of Common Stock having a Fair Market Value (determined as of the date an Option is granted) exceeding $100,000; any excess will be treated as a nonstatutory stock option. An
Option granted under this Plan may be exercised with respect to any number of whole shares less than the full number for which the Option could be exercised. A partial exercise of an Option shall not affect the right to exercise the Option from time
to time in accordance with this Plan and the applicable Agreement with respect to the remaining shares subject to the Option. The exercise of an Option shall result in the termination of any Corresponding SAR to the extent of the number of shares
with respect to which the Option is exercised. 
 6.08. Payment 
 Subject to rules established by the Committee and unless otherwise provided in an Agreement, payment of all or part of the Option price may be made in cash, certified check, by tendering shares of Common Stock (or for
other lawful consideration), by a broker-assisted cashless exercise. If shares of Common Stock are used to pay all or part of the Option price, the sum of the cash and cash equivalent and the Fair Market Value (determined as of the day preceding the
date of exercise) of the shares surrendered must not be less than the Option price of the shares for which the Option is being exercised. 
 6.09.
Change in Control 
 Section 6.07 to the contrary notwithstanding, the Committee shall have the authority to cause any or
all of the Options outstanding as of any Control Change Date to become fully exercisable on and after such Control Change Date. 
 6.10. Stockholder
Rights 
 No Participant shall have any rights as a stockholder with respect to shares subject to an Option until the date of
exercise of such Option. Notwithstanding the foregoing, the Committee may provide in an Agreement that the holder of an Option is entitled to Dividend Equivalents during the period beginning on the date of the award and ending on the date the Option
is exercised. 
 6.11. Disposition of Shares 
 A Participant shall notify the Company of any sale or other disposition of shares of Common Stock acquired pursuant to an Option that was an incentive stock option if such sale or disposition occurs (i) within
two years of the grant of an Option or (ii) within one year of the issuance of shares of Common Stock to the Participant. Such notice shall be in writing and directed to the Secretary of the Company. 
  

 ARTICLE VII 
 SARS 
 7.01. Award 
 In accordance with the provisions of Article IV, at the time of grant, the Committee will designate each individual to whom SARs are to be granted,
will specify the number of shares of Common Stock covered by such awards and will specify whether each SAR is to be settled in shares of Common Stock or in cash. No Participant may be granted Corresponding SARs (under the Plan and all plans of the
Company and its Affiliates) that are related to incentive stock options which are first exercisable in any calendar year for shares of Common Stock having an aggregate Fair Market Value (determined as of the date the related Option is granted) that
exceeds $100,000. 
 7.02. Maximum SAR Period 
 The term of each SAR shall be determined by the Committee on the date of grant, except that no SAR shall have a term of more than ten years from the date of grant. In the case of a Corresponding SAR that is related to
an incentive stock option and is granted to a Participant who is a Ten Percent Shareholder on the date of grant, such Corresponding SAR shall not be exercisable after the expiration of five years from the date of grant. The terms of any SAR may
provide that it has a term that is less than such maximum period. 
 7.03. Nontransferability 
 Except as provided in Section 7.04, each SAR granted under this Plan shall be nontransferable except by will or by the laws of descent and
distribution. In the event of any such transfer, a Corresponding SAR and the related Option must be transferred to the same person or persons or entity or entities. Except as provided in Section 7.04, during the lifetime of the Participant to
whom the SAR is granted, the SAR may be exercised only by the Participant. No right or interest of a Participant in any SAR shall be liable for, or subject to, any lien, obligation, or liability of such Participant. 
 7.04. Transferable SARs 
 Section 7.03 to
the contrary notwithstanding, if the Agreement provides, an SAR, other than a Corresponding SAR that is related to an incentive stock option, may be transferred by a Participant to the Participant’s children, grandchildren, spouse, one or more
trusts for the benefit of such family members or a partnership in which such family members are the only partners, on such terms and conditions as may be permitted under the rules of Form S-8 as in effect from time to time. The holder of an SAR
transferred pursuant to this Section shall be bound by the same terms and conditions that governed the SAR during the period that it was held by the Participant; provided, however, that such transferee may not transfer the SAR except by will or the
laws of descent and distribution. In the event of any transfer of a Corresponding SAR (by the Participant or his transferee), the Corresponding SAR and the related Option must be transferred to the same person or person or entity or entities.

 7.05. Exercise 
 Subject to the
provisions of this Plan and the applicable Agreement, an SAR may be exercised in whole at any time or in part from time to time at such times and in compliance with such requirements as the Committee shall determine; provided, however, that a
Corresponding SAR that is related to an incentive stock option may be exercised only to the extent that the related Option is exercisable and only when the Fair Market Value exceeds the option price of the related Option. An SAR granted under this
Plan may be exercised with respect to any number of whole shares less than the full number for which the SAR could be exercised. A partial exercise of an SAR shall not affect the right to exercise the SAR from time to time in accordance with this
Plan and the applicable Agreement with respect to the remaining shares subject to the SAR. The exercise of a Corresponding SAR shall result in the termination of the related Option to the extent of the number of shares with respect to which the SAR
is exercised. 
  

 7.06. Change in Control 
 Section 7.05 to the contrary notwithstanding, the Committee shall have the authority to cause any or all of the SARs outstanding as of any Control Change Date to become fully exercisable on and after such Control
Change Date. 
 7.07. Employee Status 
 If the terms of any SAR provide that it may be exercised only during employment or continued service or within a specified period of time after termination of employment or continued service, the Committee may decide to what extent leaves
of absence for governmental or military service, illness, temporary disability or other reasons shall not be deemed interruptions of continuous employment or service. 
 7.08. Settlement 
 At the Committee’s discretion, the amount payable as a result of the
exercise of an SAR may be settled in cash, shares of Common Stock, or a combination of cash and Common Stock. No fractional share will be deliverable upon the exercise of an SAR but a cash payment will be made in lieu thereof. 
 7.09. Stockholder Rights 
 No Participant
shall, as a result of receiving an SAR, have any rights as a stockholder of the Company or any Affiliate until the date that the SAR is exercised and then only to the extent that the SAR is settled by the issuance of Common Stock. Notwithstanding
the foregoing, the Committee may provide in an Agreement that the holder of an SAR is entitled to Dividend Equivalents during the period beginning on the date of the award and ending on the date the SAR is exercised. 
  
 ARTICLE VIII 
 STOCK AWARDS 
 8.01. Award 
 In accordance with the provisions of Article IV, the Committee will designate each individual to whom a Stock Award is to be made and will specify
the number of shares of Common Stock covered by such awards. 
 8.02. Vesting 
 The Committee, on the date of the award, may prescribe that a Participant’s rights in a Stock Award shall be forfeitable or otherwise restricted for
a period of time or subject to such conditions as may be set forth in the Agreement. By way of example and not of limitation, the Committee may prescribe that a Participant’s rights in a Stock Award shall be forfeitable or otherwise restricted
subject to the attainment of objectives stated with reference to the Company’s, an Affiliate’s or a business unit’s attainment of objectives stated with respect to performance criteria established by the Committee. 
 8.03. Employee Status 
 In the event that the
terms of any Stock Award provide that shares may become transferable and nonforfeitable thereunder only after completion of a specified period of employment or continuous service, the Committee may decide in each case to what extent leaves of
absence for governmental or military service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service. 
 8.04. Change in Control 
 Sections 8.02 and 8.03 to the contrary notwithstanding, the
Committee shall have the authority to cause any or all of the Stock Awards outstanding as of any Control Change Date to become nonforfeitable and transferable on and after such Control Change Date. 
  

 8.05. Stockholder Rights 
 Unless otherwise specified in accordance with the applicable Agreement, while the shares of Common Stock granted pursuant to the Stock Award may be forfeited or are nontransferable, a Participant will have all rights
of a stockholder with respect to a Stock Award, including the right to receive dividends and vote the shares; provided, however, that during such period (i) a Participant may not sell, transfer, pledge, exchange, hypothecate, or otherwise
dispose of shares granted pursuant to a Stock Award, (ii) the Company shall retain custody of the certificates evidencing shares granted pursuant to a Stock Award, and (iii) the Participant will deliver to the Company a stock power,
endorsed in blank, with respect to each Stock Award. The limitations set forth in the preceding sentence shall not apply after the shares granted under the Stock Award are transferable and are no longer forfeitable. 
  
 ARTICLE IX 
 PERFORMANCE SHARE AWARDS 
 9.01. Award 
 In accordance with the provisions of Article IV, the Committee will designate each individual to whom an award of Performance Shares is to be made
and will specify the number of shares of Common Stock covered by such awards. 
 9.02. Earning the Award 
 The Committee, on the date of the grant of an award, shall prescribe that the Performance Shares will be earned, and the Participant will be entitled to
receive payment pursuant to the award of Performance Shares, only upon the satisfaction of performance objectives and such other criteria as may be prescribed by the Committee, including those described in Section 9.09. 
 9.03. Payment 
 In the discretion of the
Committee as set forth in the Agreement at time of grant, the amount payable when an award of Performance Shares is earned may be settled in cash, by the issuance of shares of Common Stock, or a combination thereof. A fractional share of Common
Stock shall not be deliverable when an award of Performance Shares is earned, but a cash payment will be made in lieu thereof. Performance Awards may be paid in a lump sum or in installments following the close of the performance measuring period
or, in accordance with procedures established by the Committee, on a deferred basis. 
 9.04. Stockholder Rights 
 A Participant, as a result of receiving an award of Performance Shares, shall not have any rights as a stockholder until, and then only to the extent
that, the award of Performance Shares is earned and settled in shares of Common Stock. After an award of Performance Shares is earned and settled in shares, a Participant will have all the rights of a stockholder as described in Section 8.05.
Notwithstanding the foregoing, the Committee may provide in an Agreement that the holder of an award of Performance Shares is entitled to Dividend Equivalents beginning on the date of the award and ending on the date the Performance Shares are
earned and settled. 
 9.05. Nontransferability 
 Except as provided in Section 9.06, Performance Shares granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution. No right or interest of a Participant in any
Performance Shares shall be liable for, or subject to, any lien, obligation, or liability of such Participant. 
  

 9.06. Transferable Performance Shares 
 Section 9.05 to the contrary notwithstanding, if the Agreement provides, an award of Performance Shares may be transferred by a Participant to the
Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or a partnership in which such family members are the only partners, on such terms and conditions as may be permitted under Rule 16b-3
under the Exchange Act as in effect from time to time. The holder of Performance Shares transferred pursuant to this Section shall be bound by the same terms and conditions that governed the Performance Shares during the period that they were held
by the Participant; provided, however that such transferee may not transfer Performance Shares except by will or the laws of descent and distribution. 
 9.07. Employee Status 
 In the event that the terms of any Performance Share award provide that no payment will be
made unless the Participant completes a stated period of employment or continued service, the Committee may decide to what extent leaves of absence for government or military service, illness, temporary disability, or other reasons shall not be
deemed interruptions of continuous employment or service. 
 9.08. Change in Control 
 Section 9.02 to the contrary notwithstanding, on and after a Control Change Date, the Committee shall have the authority to cause any or all of the
Stock Awards outstanding as of any Control Change Date to become nonforfeitable on such Control Change Date and settled with nonforfeitable and transferable shares of Common Stock. 
 9.09. Performance Measures. 
 The Committee may make the vesting of awards, including
Performance Share Awards, subject to performance goals. The committee, in its discretion, may base performance goals on one or more of the following such measures with respect to the Company or any business unit of the Company: gross margin,
operating margin, operating income, pre-tax profit, earnings before stock-based compensation expense, interest, taxes, depreciation and amortization, net income, funds from operations, expenses, the market price of our common stock, earnings per
share, return on stockholder equity, return on capital, return on net assets, economic value added, market share, customer service, customer satisfaction, total stockholder return, free cash flow, net operating income, operating cash flow, return on
investment, employee satisfaction, employee retention, balance of cash, cash equivalents and marketable securities, completion of an identified development or redevelopment project, completion of a joint venture or other corporate transaction, or
other measures as determined by the Committee. The target levels with respect to these performance measures may be expressed on an absolute basis or relative to a standard specified by the Committee. The degree of attainment of performance measures
will be calculated in accordance with generally accepted accounting principles, but prior to the accrual or payment of any performance award for the same performance period, and, according to criteria established by the Committee, excluding the
effect (whether positive or negative) of changes in accounting standards or any extraordinary, unusual or nonrecurring item occurring after the establishment of the performance goals applicable to a performance award. 
  
 ARTICLE X 
 OTHER EQUITY–BASED AWARDS 
 10.01. Award 
 In accordance with the provisions of Article IV, the Committee will designate each individual to whom an Other Equity-Based Award is to be made and
will specify the number of shares of Common Stock or other equity interests (including interests in the Operating Partnership) covered by such awards. 
 10.02. Terms and Conditions 
 The Committee, at the time an Other Equity-Based Award is made, shall specify the terms
and conditions which govern the award; provided, however, that the terms and conditions of an Other Equity-Based Award that is an SAR shall be consistent with the terms and conditions set forth in Article VII. The terms and conditions of an
Other Equity-Based Award may prescribe that a Participant’s rights in the Other Equity-Based Award shall be 

 
forfeitable, nontransferable or otherwise restricted for a period of time or subject to such other conditions as may be determined by the Committee, in its
discretion and set forth in the Agreement. Other Equity-Based Awards may be granted to Participants, either alone or in addition to other awards granted under the Plan, and Other Stock-Based Awards may be granted in the settlement of other Awards
granted under the Plan. 
 10.03. Payment or Settlement 
 Other Equity-Based Awards valued in whole or in part by reference to, or otherwise based on, shares of Common Stock, shall be payable or settled in shares of Common Stock, cash or a combination of Common Stock and
cash, as determined by the Committee in its discretion. Other Equity-Based Awards denominated as equity interests other than shares of Common Stock may be paid or settled in shares or units of such equity interests or cash or a combination of both
as determined by the Committee in its discretion. 
 10.04. Change in Control 
 Section 10.02 to the contrary notwithstanding, the Committee shall have the authority to cause any or all of the Other Equity-Based Awards
outstanding as of any Control Change Date to be earned in full, nonforfeitable and transferable on and after such Control Change Date. 
 10.05.
Employee Status 
 If the terms of any Other Equity-Based Award provides that it may be earned or exercised only during
employment or continued service or within a specified period of time after termination of employment or continued service, the Committee may decide to what extent leaves of absence for governmental or military service, illness, temporary disability
or other reasons shall not be deemed interruptions of continuous employment or service. 
 10.06. Stockholder Rights 
 A Participant, as a result of receiving an Other Equity-Based Award, shall not have any rights as a stockholder until, and then only to the extent that,
the Other Equity-Based Award is earned and settled in shares of Common Stock. 
 ARTICLE XI 
 ADJUSTMENT UPON CHANGE IN COMMON STOCK 
 The maximum number of shares as to which Options, SARs, Performance Shares, Stock Awards and Other Equity-Based Awards may be granted and the terms, including the exercise price per share, of outstanding Stock Awards, Options, SARs,
Performance Shares and Other Equity-Based Awards; shall be adjusted as the Board shall determine to be equitably required in the event that (i) the Company (a) effects one or more stock dividends, stock split-ups, subdivisions or
consolidations of shares or (b) engages in a transaction to which Section 424 of the Code applies or (ii) there occurs any other event which, in the judgment of the Board necessitates such action. Any determination made under this
Article XI by the Board shall be final and conclusive. 
 The issuance by the Company of stock of any class, or securities convertible
into stock of any class, for cash or property, or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of stock or obligations of the Company convertible into such stock
or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the maximum number of shares as to which Options, SARs, Performance Shares, Stock Awards and Other Equity-Based Awards may be granted or the
terms of outstanding Stock Awards, Options, SARs, Performance Shares or Other Equity-Based Awards. 
 The Committee may make Stock Awards and
may grant Options, SARs, Performance Shares or Other Equity-Based Awards in substitution for performance shares, phantom shares, stock awards, stock options, stock appreciation rights, or similar awards held by an individual who becomes an employee
of the Company or an Affiliate in connection with a transaction described in the first paragraph of this Article XI. Notwithstanding any 

 
provision of the Plan (other than the limitation of Section 5.02), the terms of such substituted Stock Awards, SARs, Other Equity-Based Awards, Options
or Performance Shares shall be as the Committee, in its discretion, determines is appropriate. 
 ARTICLE XII 
 COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES 
 No Option or SAR shall be exercisable, no shares of Common Stock shall be issued, no certificates for shares of Common Stock shall be delivered, and no payment shall be made under this Plan except in compliance with
all applicable federal and state laws and regulations (including, without limitation, withholding tax requirements), any listing agreement to which the Company is a party, and the rules of all domestic stock exchanges on which the Company’s
shares may be listed. The Company shall have the right to rely on an opinion of its counsel as to such compliance. Any stock certificate issued to evidence shares of Common Stock when a Stock Award is granted, a Performance Share or Other
Equity-Based Award is settled or for which an Option or SAR is exercised may bear such legends and statements as the Committee may deem advisable to assure compliance with federal and state laws and regulations. No Option or SAR shall be
exercisable, no Stock Award or Performance Share shall be granted, no shares of Common Stock shall be issued, no certificate for shares of Common Stock shall be delivered, and no payment shall be made under this Plan until the Company has obtained
such consent or approval as the Committee may deem advisable from regulatory bodies having jurisdiction over such matters.
 ARTICLE XIII

 GENERAL PROVISIONS 
 13.01.
Effect on Employment and Service 
 Neither the adoption of this Plan, its operation, nor any documents describing or referring
to this Plan (or any part thereof), shall confer upon any individual or entity any right to continue in the employ or service of the Company or an Affiliate or in any way affect any right and power of the Company or an Affiliate to terminate the
employment or service of any individual or entity at any time with or without assigning a reason therefor. 
 13.02. Unfunded Plan 

This Plan, insofar as it provides for grants, shall be unfunded, and the Company shall not be required to segregate any assets that may at any time be
represented by grants under this Plan. Any liability of the Company to any person with respect to any grant under this Plan shall be based solely upon any contractual obligations that may be created pursuant to this Plan. No such obligation of the
Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company. 
 13.03. Rules of Construction

 Headings are given to the articles and sections of this Plan solely as a convenience to facilitate reference. The reference to any
statute, regulation, or other provision of law shall be construed to refer to any amendment to or successor of such provision of law. 
 13.04.
Withholding Taxes 
 Each Participant shall be responsible for satisfying any income and employment tax withholding obligations
attributable to participation in the Plan. Unless otherwise provided by the Agreement, any such withholding tax obligations may be satisfied in cash (including from any cash payable in settlement of an award of Performance Shares, SARs or Other
Equity-Based Award) or a cash equivalent acceptable to the Committee. Any withholding tax obligations also may be satisfied (a) by surrendering to the Company shares of Common Stock previously acquired by the Participant; (b) by
authorizing the Company to withhold or reduce the number of shares of Common Stock otherwise issuable to the Participant upon the exercise of an Option or SAR, the settlement of a Performance Share award or an Other Equity-Based Award (if
applicable) or the grant or vesting of a Stock Award; 

 
or (c) by any other method as may be approved by the Committee. If shares of Common Stock are used to pay all or part of such withholding tax
obligation, the Fair Market Value of the shares surrendered, withheld or reduced shall be determined as of the day the tax liability arises. 
 13.05.
Dividends and Dividend Equivalents 
 At the discretion of the Committee, a grant of an Option, SAR or Performance Shares may
include Dividend Equivalent rights, payable in cash or shares of Common Stock on a current or deferred basis. All Dividend Equivalents which are not paid currently may, at the Committee’s discretion, accrue interest, be reinvested in additional
shares of Common Stock and paid if, when, and to the extent that the underlying awards are earned and paid. The total number of shares of Common Stock available for grant under the Plan shall not be reduced on account of any Dividend Equivalents
that are reinvested and credited as additional Stock Awards, Performance Share awards, SARs or Other Equity-Based Awards, as applicable. 
 ARTICLE XIV 
 LIMITATION ON BENEFITS 
 14.01. Impact of Change in Control. 
 Upon a Change in Control, the Committee may, in its
discretion, cause (i) outstanding Options and SARs to become fully exercisable thereafter, (ii) outstanding Stock Awards to become transferable and nonforfeitable thereafter and (iii) outstanding Performance Units and Other
Equity-Based Awards to become earned in their entirety. 
 14.02. Assumption Upon Change in Control. 
 In the event of a Change in Control the Committee, in its discretion and without the need for a Participant’s consent, may provide that an
outstanding Option, SAR, Stock Award, Performance Unit or Other Equity-Based Award shall be assumed or continued by, or a substitute award granted by, the surviving entity in the Change in Control. Such assumed or substituted award shall be of the
same type of award as the original Option, SAR, Stock Award, Performance Unit or Other Equity-Based Award being assumed or substituted. The assumed or substituted award shall have a value, as of the Control Change Date, that is substantially equal
to the value of the original award (or the difference between the Fair Market Value and the option price or Initial Value in the case of Options and SARs) as the Committee determines is equitably required and such other terms and conditions as may
be prescribed by the Committee. To the extent an award is not assumed, continued or substituted for, such award will terminate immediately prior to the Change in Control. 
 14.03. Cash-Out Upon Change in Control. 
 In the event of a Change in Control the Committee,
in its discretion and without the need of a Participant’s consent, may provide that each Option, SAR, Stock Award and Performance Share award and Other Equity-Based Award shall be cancelled in exchange for a payment. The payment may be in cash,
shares of Common Stock or other securities or consideration received by stockholders in the Change in Control transaction. The amount of the payment shall be an amount that is substantially equal to (i) the amount by which the price per share
received by stockholders in the Change in Control exceeds the Option price or Initial Value in the case of an Option and SAR, or (ii) the price per share received by stockholders for each share of Common Stock subject to a Stock Award,
Performance Share award or Other Equity-Based Award or (iii) the value of the other securities or property in which the Performance Share or Other Equity-Based award is denominated. 
 14.04. Limitation of Benefits 
 The benefits that a Participant may be entitled to receive
under this Plan and other benefits that a Participant is entitled to receive under other plans, agreements and arrangements (which, together with the benefits 

 
provided under this Plan, are referred to as “Payments”), may constitute Parachute Payments that are subject to Code Sections 280G and 4999.
As provided in this Article XI, the Parachute Payments will be reduced if, and only to the extent that, a reduction will allow a Participant to receive a greater Net After Tax Amount than a Participant would receive absent a reduction. 

The Accounting Firm (as defined below) will first determine the amount of any Parachute Payments that are payable to a Participant. The Accounting
Firm also will determine the Net After Tax Amount attributable to the Participant’s total Parachute Payments. 
 The Accounting Firm
will next determine the largest amount of Payments that may be made to the Participant without subjecting the Participant to tax under Code Section 4999 (the “Capped Payments”). Thereafter, the Accounting Firm will determine the Net
After Tax Amount attributable to the Capped Payments. 
 The Participant will receive the total Parachute Payments or the Capped Payments,
whichever provides the Participant with the higher Net After Tax Amount. If the Participant will receive the Capped Payments, the total Parachute Payments will be adjusted by first reducing the amount of any noncash benefits under this Plan or any
other plan, agreement or arrangement (with the source of the reduction to be directed by the Participant) and then by reducing the amount of any cash benefits under this Plan or any other plan, agreement or arrangement (with the source of the
reduction to be directed by the Participant). The Accounting Firm will notify the Participant and the Company if it determines that the Parachute Payments must be reduced to the Capped Payments and will send the Participant and the Company a copy of
its detailed calculations supporting that determination. 
 As a result of the uncertainty in the application of Code Sections 280G and
4999 at the time that the Accounting Firm makes its determinations under this Article XIV, it is possible that amounts will have been paid or distributed to the Participant that should not have been paid or distributed under this
Article XIV (“Overpayments”), or that additional amounts should be paid or distributed to the Participant under this Article XIV (“Underpayments”). If the Accounting Firm determines, based on either the assertion of a
deficiency by the Internal Revenue Service against the Company or the Participant, which assertion the Accounting Firm believes has a high probability of success or controlling precedent or substantial authority, that an Overpayment has been made,
the Participant must repay to the Company, without interest; provided, however, that no loan will be deemed to have been made and no amount will be payable by the Participant to the Company unless, and then only to the extent that, the deemed loan
and payment would either reduce the amount on which the Participant is subject to tax under Code Section 4999 or generate a refund of tax imposed under Code Section 4999. If the Accounting Firm determines, based upon controlling precedent
or substantial authority, that an Underpayment has occurred, the Accounting Firm will notify the Participant and the Company of that determination and the amount of that Underpayment will be paid to the Participant promptly by the Company.

 For purposes of this Article XIV, the term “Accounting Firm” means the independent accounting firm engaged by the Company
immediately before the Control Change Date. For purposes of this Article XIV, the term “Net After Tax Amount” means the amount of any Parachute Payments or Capped Payments, as applicable, net of taxes imposed under Code Sections 1,
3101(b) and 4999 and any State or local income taxes applicable to the Participant on the date of payment. The determination of the Net After Tax Amount shall be made using the highest combined effective rate imposed by the foregoing taxes on income
of the same character as the Parachute Payments or Capped Payments, as applicable, in effect on the date of payment. For purposes of this Article XIV, the term “Parachute Payment” means a payment that is described in Code
Section 280G(b)(2), determined in accordance with Code Section 280G and the regulations promulgated or proposed thereunder. 
 Notwithstanding any other provision of this Article XIV, the limitations and provisions of this Article XIV shall not apply to any Participant who, pursuant to an agreement with the Company or the terms of another plan maintained
by the Company, is entitled to indemnification for any liability that the Participant may incur under Code Section 4999. 
  

 ARTICLE XV 
 AMENDMENT 
 The Board may amend or terminate this Plan at any time; provided, however, that no
amendment may adversely impair the rights of Participants with respect to outstanding awards. In addition, an amendment will be contingent on approval of the Company’s stockholders, to the extent that the absence of such approval would cause
the Plan to fail to comply with any applicable legal requirement or the rules of any exchange on which the Common Stock is listed. 
 ARTICLE XVI 
 DURATION OF PLAN 
 No Stock Award, Performance Share Award, Option, SAR or Other Equity-Based Award may be granted under this Plan after the tenth anniversary of the date that the Plan is adopted by the Board of Directors. Stock Awards,
Performance Share awards, Options, SARs and Other Equity-Based Awards granted before such date shall remain valid in accordance with their terms. 
 ARTICLE XVII 
 EFFECTIVE DATE OF PLAN 
 Options, Stock Awards, Performance Shares and Other Equity-Based Awards may be granted under this Plan on and after the Effective Date, provided that,
this Plan shall not be effective unless approved by a majority of the stockholders of Common Stock entitled to vote and present or represented by properly executed and delivered proxies at a duly held stockholders’ meeting at which a quorum is
present or by unanimous consent of the stockholders, within twelve months of the Effective Date. The Effective Date is             , 2006.Form of Restricted Stock Agreement

 Exhibit 10.4 
  
 MERUELO MADDUX PROPERTIES, INC. 
 FORM OF 
 2006 EQUITY INCENTIVE PLAN 
 RESTRICTED STOCK AWARD AGREEMENT 
  
 THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”), dated as of                     , 2006, is
entered into between MERUELO MADDUX PROPERTIES, INC., a Delaware corporation (the “Company”), and
                                        
(“Grantee”). Capitalized terms used herein but not defined shall have the meanings assigned to those terms in the Meruelo Maddux Properties, Inc. 2006 Equity Incentive Plan (the “Plan”). 
  
 1. Grant of Shares. The Company hereby grants to Grantee, as a
Participant in the Plan, shares                  (the “Shares”) of the Company’s common stock, par value $0.01 per share (“Common
Stock”), subject to the restrictions and the other terms and conditions set forth in the Plan and this Agreement. 
  
 2. Date of Grant. The effective date of the grant of the Shares is
                    , 2006 (the “Date of Grant”). 
  
 3. Restrictions on Transfer. The Shares may not be transferred, sold, pledged, exchanged, assigned or otherwise
encumbered or disposed of by Grantee unless and until they have become nonrestricted and nonforfeitable in accordance with Section 4 hereof; provided, however, that Grantee’s interest in the Shares may be transferred by will or the laws of
descent and distribution. Any purported transfer, encumbrance or other disposition of the Shares that is in violation of this Section 3 shall be null and void, and the other party to any such purported transaction shall not obtain any rights to or
interest in the Shares. 
  
 4. Lapse of Restrictions.

  
 (a) Subject to the restrictions set forth in
Section 5 hereof, the Shares shall become nonrestricted and nonforfeitable on the              anniversary of the Date of Grant. 
  
 (b) Notwithstanding the provisions of Section 4(a) above,
all the Shares shall become immediately nonrestricted and nonforfeitable upon the occurrence of a Change in Control, as defined in the Plan. 
  
 (c) Notwithstanding the provisions in Section 4(a) above, the Board, in its sole discretion, may determine that any or all the Shares
shall become immediately nonrestricted and nonforfeitable (i) if Grantee becomes permanently disabled (as determined by the Board), (ii) if Grantee dies while in the employ of the Company, an affiliate or a subsidiary, (iii) if Grantee retires at or
after the earliest voluntary retirement age permitted by his or her employer or with the consent of the Board, or (iv) under other special circumstances. 
  
 5. Forfeiture of the Shares. 
  
 (a) Any of the Shares that remain forfeitable in accordance with Section 4 hereof shall be forfeited if Grantee ceases for any reason to
be employed by the Company, an affiliate or a subsidiary at any time prior to such shares becoming nonforfeitable, unless the Board determines to provide otherwise in accordance with Section 4(c) or Section 5(b). For the purposes of this Agreement,
the Grantee’s employment with the Company, an affiliate or a subsidiary shall not be deemed to have been interrupted, and Grantee shall not be deemed to have ceased to be an employee of the Company, an 
  

 1 

 affiliate or a subsidiary by reason of (i) the transfer of Grantee’s employment among the Company
and its affiliates and subsidiaries, (ii) an approved leave of absence of not more than 90 days, or (iii) the period of any leave of absence required to be granted by the Company under any law, rule, regulation or contract applicable to
Grantee’s employment with the Company or any affiliate or subsidiary. 
  
 (b) Notwithstanding the provisions of Section 5(a) above, in the event that any Grantee ceases for any reason to be employed by the Company but remains a director of the Company or is engaged within 10 days of such
Grantee’s termination as a consultant to the Company pursuant to a written agreement, then the restrictions on such Grantee’s Shares shall continue to lapse, uninterrupted, pursuant to Section 4(a) above until such time as Grantee is no
longer a director of the Company or engaged as a consultant to the Company at which time all remaining restricted and forfeitable Shares shall be forfeited by such Grantee. 
  
 (c) In the event of a forfeiture, the certificate(s) representing the Shares that have been forfeited shall
be cancelled. 
  
 6. Stock Certificate Legends. The Shares
shall be represented by a certificate or certificates registered in the name of Grantee. Certificates evidencing the Shares, and any certificates for Common Shares issued as dividends on, in exchange of, or as replacements for, certificates
evidencing the Shares, shall bear the following legend referring to the restrictions set forth herein and any other restrictive legends as the Company may deem necessary or advisable: 
  

	
	THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO FORFEITURE IN FAVOR OF THE COMPANY AND MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A RESTRICTED STOCK AWARD AGREEMENT
BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

  
 Until such time as all restrictions
have lapsed and the Shares have become nonforfeitable, the Company shall retain possession of the certificates evidencing the same. 
  
 7. Adjustment for Stock Split. All references to the number of Shares in this Agreement shall be appropriately adjusted to reflect any stock split,
reverse stock split or stock dividend or other similar change in the Shares which may be made by the Company after the date of this Agreement. 
  
 8. Taxes. Notwithstanding anything to the contrary in this Agreement, the Company shall be entitled to require payment to the Company, the
Operating Partnership or any of their subsidiaries in cash or deduction from other compensation payable to the Participant of any sums required by federal, state or local tax law to be withheld with respect to the issuance or lapsing of restrictions
on the Shares. The Company shall not be obligated to deliver any new certificate representing vested Shares to the Participant or his legal representative unless and until the Participant or his legal representative shall have paid or otherwise
satisfied in full the amount of all federal, state or local taxes applicable to the taxable income of the Participant resulting from the grant of the Shares or the lapse or removal of the forfeiture restriction. 
  
 9. Section 83(b). Participant may make an election under Section 83(b)
of the Code with respect to the receipt of any of the Shares with advance written notice to the Committee. 
  

 2 

 10. Dividend, Voting and Other Rights. Grantee shall have all of the rights of a stockholder with
respect to the Shares, including the right to vote the Shares and receive any dividends that may be paid thereon; provided, however, that any additional Common Shares that Grantee may become entitled to receive pursuant to a share dividend or a
merger or reorganization in which the Company is the surviving corporation or any other change in the capital structure of the Company shall be subject to the same restrictions as the Shares. 
  
 11. Employment Rights. This Agreement shall not confer on Grantee any
right with respect to the continuance of employment or other services with the Company or any affiliate or subsidiary. No provision of this Agreement shall limit in any way whatsoever any right that the Company or any affiliate or subsidiary may
otherwise have to terminate the employment of Grantee at any time. 
  
 12. Communications. All notices, demands and other communications required or permitted hereunder or designated to be given with respect to the rights or interests covered by this Agreement shall be deemed to have been properly given
or delivered when delivered personally or sent by certified or registered mail, return receipt requested, U.S. mail or reputable overnight carrier, with full postage prepaid and addressed to the parties as follows: 
  

							
	         If to the Company:
	 	761 Terminal Street	  	 
	 	 	Building 1, Second Floor	  	 
	 	 	Los Angeles, California 90021	  	 
	 	 	Attention: Corporate Secretary	  	 
		
	         If to Grantee:
	 	Grantee’s address provided by Grantee on the last page
	 	 	hereof or as listed in the Company’s records	  	 

  
 Either the Company or Grantee may
change the above designated address by notice to the other specifying such new address. 
  
 13. Interpretation. The interpretation and construction of this Agreement by the Board shall be final and conclusive. No member of the Board shall be liable for any such action or determination made in good
faith. 
  
 14. Amendments. The Plan may be amended,
suspended or terminated and this Agreement may be amended by the Board for purposes of satisfying changes in the law or for any other lawful purposes, provided that (i) no such action shall adversely affects Grantee’s rights under this
Agreement without Grantee’s consent, and (ii) all such amendments shall be in writing. 
  
 15. Integration. The Shares are granted pursuant to the Plan. Notwithstanding anything in this Agreement to the contrary, this Agreement is subject to all of the terms and conditions of the Plan, a copy of
which has been made available to Grantee and is available upon request to the Corporate Secretary at the address specified in Section 12 herein and which is incorporated herein by reference. As such, this Agreement and the Plan embody the entire
agreement and understanding of the Company and Grantee and supersede any prior understandings or agreements, whether written or oral, with respect to the Shares. 
  
 16. Severance. In the event that one or more of the provisions of this Agreement shall be invalidated for any reason
by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof and the remaining provisions hereof shall continue to be valid and fully enforceable. 
  
 17. Governing Law. This Agreement is made under, and shall be
construed in accordance with, the laws of the State of Delaware, without regard to conflict of laws principles thereof. 
  

 3 

 18. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original and all of which together shall constitute one and the same instrument. 
  

 4 

 IN WITNESS WHEREOF, this Agreement is executed by a duly authorized representative of the Company on the
day and year first above written. 
  

			
	 MERUELO MADDUX PROPERTIES, INC.

		
	By:	 	 
	Name:
	Title:

  
 The undersigned Grantee
acknowledges receipt of an executed original of this Agreement and accepts the Shares subject to the applicable terms and conditions of the Plan and the terms and conditions hereinabove set forth. 
  

			
	Date: _______________________________________________	  	_____________________________________________
	 	  	Grantee

  
 GRANTEE: Please complete/update the
following information, as applicable. 
  
 Name: _________________________________________________ 
  
 Home
Address: __________________________________________ 
  
 ______________________________________________________ 
  
 Social Security Number: ___________________________________ 
  

 5

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