Document:

Document

Exhibit 10.3

PUBLIC STORAGE
2021 EQUITY AND PERFORMANCE-BASED INCENTIVE COMPENSATION PLAN
PERFORMANCE-BASED STOCK UNIT AGREEMENT
THIS PERFORMANCE-BASED STOCK UNIT AGREEMENT (the “Agreement”) is made as of [Grant#Date] (the “Grant Date”), by and between Public Storage (the “Company”) and [Participant#Name] (the “Participant”).  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Company’s 2021 Equity and Performance-Based Incentive Compensation Plan (as amended and/or restated from time to time, the “Plan”).
WHEREAS, the Board of Trustees of the Company has duly adopted, and the shareholders of the Company have duly approved, the Plan, which provides for the grant to Service Providers of Stock Units relating to the Company’s common shares of beneficial interest, par value $0.10 per share (the “Stock”), which may be granted from time to time as the Committee so determines.
WHEREAS, the Company has determined that it is desirable and in its best interests to grant to the Participant, pursuant to the Plan, performance-based Stock Units (“PSUs”) relating to a certain number of shares of Stock as compensation for services rendered to the Company, and/or in order to provide the Participant with an incentive to advance the interests of the Company, all according to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual benefits hereinafter provided, and each intending to be legally bound, the Company and the Participant hereby agree as follows:
1.GRANT OF STOCK UNITS.
1.1.Units Granted.
Subject and pursuant to the terms of the Plan (which are incorporated by reference herein), the Company hereby grants to the Participant [No#of#PSUs#Granted] PSUs (the “Target Award”), on the terms and subject to the conditions set forth in this Agreement.  The number of PSUs that the Participant may earn hereunder ranges from [zero] to [200%] of the Target Award, and shall be determined based on the level of achievement of the performance metrics set forth on Exhibit A attached hereto (the “Performance Metrics”) over the period commencing on [January 1, 2022] and ending on [December 31, 2024] (the “Performance Period”), as determined by the Committee in its sole discretion.
1.2.Separate Grants.
For purposes of vesting and the right to defer provided for in this Agreement, the portion of the Earned PSUs (as defined below), if any, that vest on each separate Vesting Date (as defined below) pursuant to Section 2 shall be treated as a separate grant (a “Separate Grant”), and the Participant may make a separate deferral election with respect to each Separate Grant.
2.VESTING OF STOCK UNITS.
2.1.Generally.
As promptly as practicable (and in no event more than two and one-half (2-1/2) months) following the last day of the Performance Period, the Committee shall determine (i) whether and to what extent the Performance Metrics have been achieved (the date of such determination, the 

“Determination Date”) and (ii) the number of PSUs that shall be deemed earned, if any, based on the achievement of the Performance Metrics (the “Earned PSUs”).  Any PSUs that do not become Earned PSUs, as determined by the Committee in its sole discretion, shall be automatically forfeited by the Participant on the Determination Date.  Subject to the Participant’s continued Service from the Grant Date through each applicable vesting date (each, a “Vesting Date”), the Earned PSUs, if any, shall vest as follows: [(x) sixty percent (60%) of the Earned PSUs shall vest on the Determination Date; (y) twenty percent (20%) of the Earned PSUs shall vest on the first anniversary of the Determination Date; and (z) twenty percent (20%) of the Earned PSUs shall vest on the second anniversary of the Determination Date].  Any resulting fractional PSUs shall be rounded to the nearest whole unit and shall be rounded up or down as necessary as of the last Vesting Date; provided, in all cases, the Participant cannot vest in more than the number of Earned PSUs.  Except as provided in Section 2.2, no PSUs shall vest after the Participant’s Service has terminated for any reason.
2.2.Special Vesting Provisions.  
Notwithstanding anything to the contrary in Section 2.1:
2.2.1.Death, Disability or Leave of Absence.  If, prior to the last day of the Performance Period, the Participant’s Service terminates due to death or Disability, then 100% of the Target Award shall be deemed to be Earned PSUs and shall vest on the date that the Participant’s Service terminates.  If, on or following the last day of the Performance Period, the Participant’s Service terminates due to death or Disability, then all Earned PSUs, if any, that have not previously vested shall immediately become vested as of the date of the Participant’s termination of Service; provided, however, that if any such termination occurs on or following the last day of the Performance Period but prior to the Determination Date, then the PSUs shall remain outstanding until the Determination Date and any PSUs that become Earned PSUs on the Determination Date shall become fully vested as of the Determination Date.  For the avoidance of doubt, any PSUs that do not become Earned PSUs based on the achievement of the Performance Metrics shall be automatically forfeited by the Participant on the Determination Date.  For purposes of this Agreement, the Committee, in its sole discretion, may require that determination of the existence of a Disability be made by the Company’s insurance carrier or by an independent physician retained by the Company.
In the event the Participant takes one or more leaves of absence (or similar suspension of service while remaining an employee) during the Performance Period for an aggregate period of [275] or more days of the Performance Period, then the Participant shall not be eligible to earn PSUs pursuant to this Agreement on the Determination Date.  In the event the Participant takes one or more leaves of absence (or similar suspension of service while remaining an employee) during the Performance Period for an aggregate period of less than [275] days of the Performance Period, then the Committee, in its sole discretion, may reduce on a pro rata basis the amount of Earned PSUs that would otherwise be earned pursuant to the Award based on its assessment of the Participant’s contributions during the Performance Period.  For the avoidance of doubt, ordinary vacation and sick leave permitted under the Company's policies are not considered suspensions of service.  This paragraph shall not apply in the case of Death, Disability, or Retirement.
2.2.2.Retirement.  If, prior to the completion of the first year of the Performance Period, the Participant’s Service terminates by reason of the Participant’s Retirement, the PSUs shall be forfeited.  If, on or following the completion of the first year of the Performance Period, the Participant’s Service terminates during the Performance Period by reason of the Participant’s Retirement, then the Participant shall remain eligible to vest in the PSUs based on the actual achievement of the Performance Metrics, as determined by the Committee in its sole discretion following the end of the Performance Period.  Any PSUs that become Earned PSUs based on the 
2

actual achievement of the Performance Metrics shall become vested as of the Determination Date on a pro rata basis determined by multiplying the number of Earned PSUs by a fraction, the numerator of which is the number of days of Service performed by the Participant during the Performance Period and the denominator of which is the number of days in the Performance Period.  Any resulting fractional PSUs shall be rounded to the nearest whole unit.  If the Participant’s Service terminates on or following the last day of the Performance Period by reason of the Participant’s Retirement, all Earned PSUs, if any, that have not previously vested shall immediately become vested as of the Participant’s Retirement Date (or upon the Revocation Expiration Time, if applicable); provided, however, that if any such termination occurs on or following the last day of the Performance Period but prior to the Determination Date, the PSUs shall remain outstanding until the Determination Date and any PSUs that become Earned PSUs on the Determination Date shall become fully vested as of the Determination Date (or upon the Revocation Expiration Time, if applicable and later).  For the avoidance of doubt, any PSUs that do not become Earned PSUs based on the achievement of the Performance Metrics shall be automatically forfeited by the Participant on the Determination Date.  For purposes of this Agreement, “Retirement” means the Participant’s termination of Service other than due to death, Disability, or Cause if:
(a)    by the Retirement Date the Participant is at least 55 years old and has provided at least 10 years of Service as defined in the Plan and applied by the Company’s HR department (generally including service with the Company, PS Business Parks, Inc., and their Affiliates);
(b)    by the Retirement Date the sum of the Participant’s age and total years of Service equals at least 80;
(c)    the Participant provided the Company written notice of the Participant’s intention to retire at least 12 months prior to the Retirement Date;
(d)    on or within 45 days following the Retirement Date (or within such shorter period following the Retirement Date as set forth in the separation agreement), the Participant has entered into a separation agreement, in a form acceptable to the Company, which includes a full release of claims and certain restrictive covenants as of the date of Retirement, and if the execution of such separation agreement is subject to a revocation period by applicable law, the separation agreement has not been revoked and the applicable revocation period, which may not exceed 10 days, has expired (the “Revocation Expiration Time”); and
(e)    subject to the Participant’s continued Service through both the Certification Date and the Retirement Date, the Equity Awards Committee has taken separate action to establish a date of termination of Service for the Participant (the “Retirement Date”) and to approve such accelerated vesting for the Participant (the date of such action by that committee, the “Certification Date”); provided, however, that (i) the Participant shall have no right to such accelerated vesting if that committee does not take action to approve such accelerated vesting for such Participant or revokes its approval before the Retirement Date; and (ii) if the Participant’s Service is terminated for any reason other than death or Disability prior to such Retirement Date, any PSUs held by the Participant that have not vested shall terminate immediately, and the Participant shall forfeit any rights with respect to such unvested PSUs as of such termination of Service.
2.1.Restrictions on Transfer.
The Participant may not sell, transfer, assign, pledge, or otherwise encumber or dispose of the PSUs.
3

3.TERMINATION OF SERVICE.
Upon the termination of the Participant’s Service for any reason, other than by reason of death, Disability, or Retirement (pursuant to Section 2.2.2), any PSUs held by the Participant that have not vested shall terminate immediately, and the Participant shall forfeit any rights with respect to such unvested PSUs as of such termination of Service.  Any Earned PSUs that have vested and for which a deferral election has been made will continue to be outstanding in accordance with the terms of this Agreement.
4.DELIVERY OF SHARES.
4.1.Delivery Dates.  
If a Participant does not defer payment of a Separate Grant pursuant to Section 5, delivery of the shares of Stock represented by the Participant’s vested Separate Grant shall be made as soon as administratively practicable following the date on which such Separate Grant vests; provided, however, that such delivery shall occur no later than March 15th of the calendar year following the calendar year in which such Separate Grant vested.
4.2.Issuance.  
On or as promptly as is practicable after the respective delivery date(s), the Company will issue the shares of Stock registered in the name of the Participant, the Participant’s authorized assignee, or the Participant’s legal representative, as applicable.  The Company may reasonably postpone the issuance of the shares of Stock until it receives satisfactory proof that the issuance of such shares of Stock will not violate any of the provisions of the Securities Act or the Exchange Act, any rules or regulations of the Securities and Exchange Commission promulgated thereunder, or the requirements of applicable state or foreign law relating to authorization, issuance, or sale of securities, or until there has been compliance with the provisions of such acts or rules; provided that the delivery shall be made at the earliest date at which the Company reasonably anticipates that it will not cause such violation.  The Company may also reasonably postpone the issuance of the shares of Stock in the event of the Participant’s death until it receives such evidence as the Committee deems necessary to establish the validity of the issuance to the Participant’s estate.  Notwithstanding the provisions of this Section 4.2, the Company will not act in a manner as to cause the delivery of the shares of Stock to fail to be exempt from Section 409A of the Code and the related Treasury Regulations (“Section 409A”) or to comply with the requirements of Section 409A, as applicable.  Upon the issuance of the shares, Participant’s payment of the aggregate par value of the shares delivered to Participant will be deemed paid by Participant’s past Services to the Company or its Affiliates.
5.Right to Defer Payment. 
The Participant may elect to defer the payment of the shares of Stock that would otherwise be paid upon the vesting of PSUs granted hereunder on the following terms and conditions:
5.1.Election Form.
An election to defer shall be made on a form provided to the Participant by the Company. 
5.2.Election Requirements.
5.2.1.If (x) there is less than six months remaining in the Performance Period or (y) the Performance Metrics are substantially certain to be achieved as of the date of the Participant’s 
4

deferral election, as determined by the Company in its sole discretion, then the Participant may elect to defer the payment of the shares of Stock with respect to each Separate Grant of PSUs on the following conditions:
(a)The election to defer is made not less than 12 months prior to the vesting date of the Separate Grant to which it relates;
(b)The deferral is for a period of not less than five (5) years from the original vesting date of such Separate Grant; and
(c)Such election does not go into effect for at least 12 months from the date of the election.
5.2.2.If (x) there is at least six months remaining in the Performance Period and (y) the Performance Metrics are not substantially certain to be achieved as of the date of the Participant’s deferral election, as determined by the Company in its sole discretion, then the Participant may elect to defer the payment of the shares of Stock with respect to each Separate Grant of PSUs that has not vested.
To the extent the conditions set forth in Section 5.2.1 or Section 5.2.2, as applicable, are satisfied, the issuance of the shares of Stock relating to vested Earned PSUs for a Separate Grant shall be made at the time and in accordance with the Participant’s deferral election.
5.3.Specified Employee and Separation from Service.  
If the Participant is a “specified employee” (as defined in Section 409A and using the identification methodology selected by the Company from time to time) and the Participant’s deferral election calls for the payment to be made on a “separation from service” (as defined in Section 409A), payment to the Participant may not be made before the date that is six months after the date of the Participant’s separation from service from the Company or its Affiliates (or, if earlier, the date of the Participant’s death).
5.4.Acceleration.
The issuance of the shares of Stock for deferred Separate Grants shall be accelerated upon the Participant’s death and upon the Participant’s “disability” or a “change in control” of the Company (as such terms are defined in Section 409A) and may be accelerated by the Participant in the event of an “unforeseeable emergency” (as defined in Section 409A) experienced by the Participant to the extent payment of the shares of Stock is needed to satisfy the emergency.
6.DIVIDEND AND VOTING RIGHTS; DIVIDEND EQUIVALENTS.
The Participant shall have none of the rights of a shareholder (including, without limitation, the right to vote or receive dividends declared or paid on the Stock) with respect to the PSUs unless and until the PSUs vest and a certificate for the shares of Stock relating to such vested PSUs has been issued or an appropriate book entry has been made.  Notwithstanding the foregoing, within 60 days following the Determination Date, the Company shall pay to the Participant an amount in cash equal to the number of Earned PSUs, if any, multiplied by the aggregate amount of the cash dividends per share of Stock declared during the period commencing on the first day of the Performance Period and ending on the Determination Date (such period, the “Dividend Equivalents Period”), as if the Participant had held a number of shares of Stock equal to the number of Earned PSUs as of each dividend record date during the Dividend Equivalents Period; provided, however, that if the Participant’s Service terminates during the Performance Period due to death or Disability, then the references to the 
5

Determination Date in this sentence shall mean the date of the Participant’s termination of Service.  In addition, following the Determination Date, the Company shall pay to the Participant, in respect of each Earned PSU held by the Participant, if any, whether or not vested (including deferred Earned PSUs, if any), an amount in cash equal to the per share amount of any cash dividends declared on the shares of Stock.  The Company shall pay any such amount(s) to the Participant at the same time that the dividend is paid to holders of shares of Stock.  The Participant shall be entitled to receive such dividend equivalent payments for so long as his or her Earned PSUs remain outstanding.
7.WITHHOLDING OF TAXES.
If any event related to the PSUs (e.g., a vesting event) results in a Company or Affiliate having an obligation to pay withholding taxes of any kind, including federal, state, or local taxes, then unless the Participant has paid to the Company or its Affiliates the requisite amount necessary to satisfy such withholding obligation, as reasonably determined by the Company, including through the delivery of shares of Stock already owned by the Participant, or has made arrangements acceptable to the Company or its Affiliates for the payment of such amount (e.g., through a sell to cover arrangement with a broker) within two business days of the event, the Company shall satisfy such obligations by withholding shares of Stock otherwise deliverable.  To the extent the obligation is not or cannot be fully satisfied in this manner, the Company and any Affiliates shall have the right to deduct the requisite amount from payments of any kind otherwise due to the Participant. The Participant acknowledges that upon the vesting of any Earned PSUs for which a deferral election has been made pursuant to Section 5, the Participant will be obligated to pay at that time applicable FICA and Medicare taxes in respect of the vested Earned PSUs, even though federal, state and local income taxes may be postponed until the deferral period ends, and that this Section 7 shall apply in such case.  The shares of Stock so delivered or withheld shall have a Fair Market Value not exceeding the minimum amount of tax required to be withheld by applicable law; provided, however, that as long as Accounting Standards Update 2016-09 or a similar rule is otherwise in effect, the Committee has full discretion to choose, or to allow the Participant to elect, to withhold a number of shares of Stock having a Fair Market Value that is greater than the applicable minimum statutory amount (but such withholding may in no event be in excess of the maximum statutory withholding amount(s) in the Participant’s relevant tax jurisdictions).  The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall be determined by the Company as of the date that the amount of tax to be withheld is to be determined.  A Participant who has made an election to deliver Stock to satisfy his or her withholding obligation may only do so with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.  
8.DISCLAIMER OF RIGHTS.
No provision of this Agreement shall be construed to confer upon the Participant the right to continue in Service, or to interfere in any way with the right and authority of the Company or any Affiliate either to increase or decrease the compensation of the Participant at any time, or to terminate the Participant’s Service.
9.DATA PRIVACY.
To administer the Plan, the Company and its Affiliates may process personal data about the Participant.  Such data includes, but is not limited to, the information provided in this Agreement and any changes thereto, other appropriate personal and financial data about the Participant such as home address and business addresses and other contact information, and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan.  By accepting this grant, the Participant hereby gives express consent 
6

to the Company and its Affiliates to process any such personal data.  The Participant also gives express consent to the Company to transfer any such personal data outside the country in which Participant works, including, with respect to non-U.S. resident participants, to the United States, to transferees who will include the Company and other persons who are designated by the Company to administer the Plan.
10.CONSENT TO ELECTRONIC DELIVERY OF MATERIALS.
The Company may choose to deliver certain statutory materials relating to the Plan in electronic form.  By accepting this grant, the Participant agrees that the Company may deliver the Plan’s prospectus and any annual reports to the Participant in an electronic format.  If at any time the Participant would prefer to receive paper copies of these documents, as the Participant is entitled to, the Company would be pleased to provide copies.  The Participant may contact the Company’s Legal Department to request paper copies of these documents.
11.INTERPRETATION OF THE AGREEMENT.
All decisions and interpretations made by the Committee with regard to any question arising under the Plan or this Agreement shall be binding and conclusive on the Company and the Participant and any other person.  In the event that there is any inconsistency between the provisions of this Agreement and of the Plan, the provisions of the Plan shall govern.
12.SECTION 409A.
The grant of PSUs under this Agreement is intended to comply with Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement will be interpreted and administered to be in compliance with Section 409A.  The Company, however, will have no liability to the Participant if Section 409A is determined to apply and adversely affects the Participant.  With respect to payments under this Agreement, for purposes of Section 409A, each payment (if there is more than one payment) will be considered one of a series of separate payments.  If at the time of the Participant’s separation from service, (a) the Participant is a “specified employee” (as defined in Section 409A and using the identification methodology selected by the Company from time to time), and (b) the Company makes a good faith determination that an amount payable on account of such separation from service to the Participant constitutes “deferred compensation” (within the meaning of Section 409A), payment to the specified employee may not be made before the date that is six months after the date of the Participant’s separation from service from the Company or its Affiliates (or, if earlier, the date of the Participant’s death).
With respect to any amount payable under this Agreement to the Participant that constitutes “deferred compensation” (within the meaning of Section 409A), payment under this Agreement may not be accelerated upon a Change in Control under the Plan, unless such Change in Control is also a “change in control” (as defined in Section 409A) or unless otherwise permitted by Section 409A.  Upon a Change in Control under the Plan that is not a “change in control” (as defined in Section 409A), such payment shall be made on the next payment date permitted by Section 409A.
13.GOVERNING LAW.
This Agreement shall be governed by the laws of the State of Maryland, except that if Participant’s principal place of employment is in California, then this Agreement will be governed by the laws of the State of California, in either case without giving effect to any choice or conflict of law provision or rule.
7

14.BINDING EFFECT.
Subject to all restrictions provided for in this Agreement and by applicable law, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors, transferees, and assigns.
15.CLAWBACK.
The PSUs shall be subject to mandatory repayment by the Participant to the Company to the extent the Participant is, or in the future becomes, subject to (a) the Company’s Incentive Compensation Recoupment Policy or similar successor policy, or (b) any applicable laws which impose mandatory recoupment, under circumstances set forth in such applicable laws.
16.ENTIRE AGREEMENT.
This Agreement, the deferral elections made under Section 5 (if any), and the Plan constitute the entire agreement regarding this grant and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof.  Neither this Agreement nor any term hereof may be amended, waived, discharged, or terminated except by a written instrument signed by the Company and the Participant; provided, however, that the Company unilaterally may amend, waive, discharge, or terminate any provision hereof to the extent that such amendment, waiver, discharge, or termination does not adversely affect the interests of the Participant hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof.
* * * * *
8

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, or caused this Agreement to be duly executed on their behalf, as of the Grant Date.
															
	PARTICIPANT:		PUBLIC STORAGE
		By:
	
	[Participant#Name]		Name:	[Officer#Name]

			Title:	[Officer#Title]

					
	

ADDRESS FOR NOTICE TO PARTICIPANT:

[No#Street#Participant#Address]
[City#State#Zip#Participant#Address]
			

Signature Page to Performance-Based Stock Unit Agreement

[Participant#Name]/[Employee#ID#No]
[Grant#Date]/[Grant#Code]
Performance Vesting

EXHIBIT A
Performance Metrics
Performance Metrics.  The PSUs that may be earned under this Agreement shall be based on the Company’s achievement of the following performance metrics: (i) [60%] of the award may be earned based on the Company’s relative TSR (as defined below) as compared against the weighted average TSR of the [Self-Storage Peer Group] (as defined below) over the Performance Period (the [“Self-Storage Peer TSR Component”]); and (ii) [40%] of the award may be earned based on the Company’s relative TSR as compared against the weighted average TSR of the [S&P 500 Peer Group] (as defined below) over the Performance Period (the [“S&P 500 Peer TSR Component”]).
1.[Self-Storage Peer TSR Component].  The [Self-Storage Peer TSR Component], weighted at [60%], may be earned as set forth in the table below:
						
	[3 Year Performance Period]
	[60% TSR vs. Self-Storage
(EXR, CUBE, LIFE, NSA)
Weighted Average]
	Percentage of Target Award
	[<80%]	[0%]
	[80% to <90%]	[25%]
	[90% to <100%]	[75%]
	[100% to <106%]	[100%]
	[106% to <116%]	[125%]
	[116% to 125%]	[150%]
	[>125%]	[200%]

2.[S&P 500 Peer TSR Component].  The [S&P 500 Peer TSR Component], weighted at [40%], may be earned as set forth in the table below:
						
	[3 Year Performance Period]
	[40% TSR vs. S&P 500 REITs
Weighted Average]
	Percentage of Target Award
	[<80%]	[0%]
	[80% to <90%]	[25%]
	[90% to <100%]	[75%]
	[100% to <106%]	[100%]
	[106% to <116%]	[125%]
	[116% to 125%]	[150%]
	[>125%]	[200%]

The number of PSUs that become earned hereunder, if any, shall be equal to the sum of (i) the number of PSUs that become earned pursuant to the [Self-Storage Peer TSR Component], if any, and (ii) the number of PSUs that become earned pursuant to the [S&P 500 Peer TSR Component], if any, rounded down to the nearest whole PSU.  All determinations with respect to 

the number of PSUs that become earned hereunder, if any, shall be made by the Committee in its sole discretion.  
The Committee may adjust the TSR computations as it deems equitable and necessary, including (i) to account for significant acquisitions, dispositions, or other extraordinary or one-time events that impact the applicable TSRs, and (ii) as necessary to ensure that TSRs are computed on a consistent and equitable basis.  The Committee does not expect to exercise this discretion except in unusual circumstances.
Definitions.  For purposes of this Agreement, the following terms shall have the meanings set forth below.
•“TSR” means the cumulative total growth rate, expressed as a percentage and rounded to the nearest one decimal point, in the value of a share of the applicable company’s common stock from the closing price on the business day immediately preceding the first day of the Performance Period to the closing price on the last day of the Performance Period due to stock appreciation and dividends, assuming dividends are reinvested in common stock over the Performance Period.  The weighted average TSR of a group of companies shall be based on their respective market capitalizations as of the business day immediately preceding the first day of the Performance Period.
•[“Self-Storage Peer Group” means Extra Space Storage Inc., Cubesmart, Life Storage, Inc. and National Storage Affiliates Trust.  In the event one or more of these companies ceases to be traded on a national securities exchange or undergoes an extraordinary change in its operations, the Committee may adjust the composition of the Self-Storage Peer Group to the extent it determines it is equitable to do so.]
•[“S&P 500 Peer Group” means any REIT that is included in the S&P 500 for the entirety of the Performance Period.]
A-2Document

Exhibit 10.1

IHEARTMEDIA, INC.

DEFERRED COMPENSATION PLAN FOR DIRECTORS

Effective as of July 1, 2022

TABLE OF CONTENTS

						
		Page(s)
	ARTICLE I. DEFINITIONS	3
	ARTICLE II. PURPOSE; DEFERRAL ELECTIONS	5
	ARTICLE III. DEFERRED COMPENSATION ACCOUNTS	6
	ARTICLE IV. PAYMENT OF DEFERRED COMPENSATION	7
	ARTICLE V. ADMINISTRATION; EFFECTIVENESS, AMENDMENT AND TERMINATION OF PLAN	8
	ARTICLE VI. MISCELLANEOUS	9

2

IHEARTMEDIA, INC.

DEFERRED COMPENSATION PLAN FOR DIRECTORS

ARTICLE I.
DEFINITIONS

1.1    “Administrator” shall mean the Board or a Committee to the extent that the Board’s powers or authority under the Plan have been delegated to such Committee.

1.2    “Annual Grant Date” shall mean the date of grant of the annual Equity Award granted to Directors with respect to that Year. 

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

1.4    “Cash Fee” shall mean the quarterly cash retainer payable to a Director pursuant to the Compensation Program for services as a member of the Board, including any retainers payable under the Compensation Program solely for serving as Lead Independent Director, but excluding any retainers payable for serving on one or more committees of the Board. 

1.5    “Change in Control” shall be deemed to occur if: 

a.Any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or other fiduciary holding securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of Common Stock of the Company), becoming the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities, excluding for purposes herein, acquisitions pursuant to a Business Combination (as defined below) that does not constitute a Change in Control for purposes of the definition; or

b.A merger, reorganization, or consolidation of the Company or in which equity securities of the Company are issued (each, a “Business Combination”), other than a merger, reorganization or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity (or, as applicable, the parent of the Company or such surviving entity) outstanding immediately after such merger or consolidation; provided, however, that a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person (other than those covered by the exceptions in clause (a) herein) acquires more than 50% of the combined voting power of the Company’s then outstanding securities shall not constitute a Change in Control of the Company; or

c.A complete liquidation or dissolution of the Company or the consummation of a sale or disposition by the Company of all or substantially all of the Company’s assets other than the sale or disposition of all or substantially all of the assets of the Company to a person or persons who beneficially own, directly or indirectly, 50% or more of the combined voting power of the outstanding voting securities of the Company at the time of the sale; or

3

d.(During any period of 24 consecutive calendar months, individuals who were directors of the Company on the first day of such period (the “Incumbent Directors”) cease for any reason to constitute a majority of the Board; provided, however, that any individual becoming a director subsequent to the first day of such period whose election, or nomination for election, by the Company’s stockholders was approved by a vote of at least a majority of the Incumbent Directors will be considered as though such individual were an Incumbent Director, but excluding, for purposes of this proviso, any such individual whose initial assumption of office occurs as a result of an actual or threatened proxy contest with respect to election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a “person” (as used in Section 13(d) of the Exchange Act), in each case, other than the Board.

Notwithstanding the foregoing, for purposes of the Plan, in no event will a Change in Control be deemed to have occurred if such transaction or event does not constitute a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).

1.6     “Committee” shall mean one or more committees or subcommittees of the Board, which may include one or more Directors or executive officers of the Company, to the extent permitted by applicable laws and Rule 16b-3 promulgated under the Exchange Act.  

1.7    “Common Stock” shall mean the Class A common stock of the Company.

1.8    “Company” shall mean iHeartMedia, Inc. and any corporate successors.

1.9    “Compensation Program” shall mean the compensation paid to Directors, as determined by the Board from time to time. 

1.10    “Code” shall mean the Internal Revenue Code of 1986, as amended and any successor statute thereto.

1.11    “Deferred Compensation Account” shall mean an account maintained for each participating Director who makes a Deferral Election as described in Articles II and III.

1.12    “Deferred Stock Unit” shall mean a notional unit representing the right to receive one share of Common Stock, that is received by a participating Director pursuant to this Plan and provides for the deferred receipt of Eligible Compensation.

1.13    “Director” shall mean a non-employee member of the Board.

1.14    “Disability” shall mean, with respect to a participating Director, that such Director has become “disabled” within the meaning of Section 409A, as determined by the Administrator in good faith.

1.15    “Effective Date” shall mean the date the Plan is adopted by the Board.

1.16    “Eligible Compensation” shall mean, with respect to any Year, any Cash Fee earned or Equity Award granted during such Year.

1.17    “Equity Awards” shall mean, as applicable, any equity-based compensation award granted to a Director pursuant to the Incentive Plan. 

1.18    “Equity Restructuring” shall mean, as determined by the Administrator, a non-reciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, 
4

spin-off or recapitalization through a large, nonrecurring cash dividend, or other large, nonrecurring cash dividend, that affects the shares of Common Stock (or other securities of the Company) or the share price of Common Stock (or other securities of the Company) and causes a change in the per share value of the Common Stock underlying outstanding Deferred Stock Units.

1.19    “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

1.20    “Fair Market Value” shall mean, as of any date, the value of a share of Common Stock determined as follows: (a) if the Common Stock is listed on any established stock exchange, its Fair Market Value will be the closing sales price for such Common Stock as quoted on such exchange for such date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; (b) if the Common Stock is not traded on a stock exchange but is quoted on a national market or other quotation system, the closing sales price on such date, or if no sales occurred on such date, then on the last date preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems reliable; or (c) without an established market for the Common Stock, the Administrator will determine the Fair Market Value in its discretion.

1.21    “Incentive Plan” shall mean the iHeartMedia, Inc. 2021 Long-Term Incentive Award Plan, as it may be amended and/or amended and restated from time to time or any other applicable Company equity incentive plan then-maintained by the Company..

1.22    “Plan” shall mean this Deferred Compensation Plan for Directors, as it may be amended and/or amended and restated from time to time. 

1.23    “Year” shall mean any calendar year.

1.24    “Section 409A” shall mean Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder.

1.25    “Separation from Service” shall mean a “separation from service” (within the meaning of Section 409A).  

1.26    “Subsidiary” shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing at least 50% of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

ARTICLE II.
PURPOSE; DEFERRAL ELECTIONS

2.1    Purpose. The purpose of this Plan is to provide the Directors with an opportunity to defer payment of all or a portion of their Eligible Compensation, as set forth herein.  

2.2    Deferral Elections. A Director may elect to defer payment of all or a specified portion of any Eligible Compensation by filing a written election with the Company on a form prescribed by the Company as follows (such an election, a “Deferral Election”):

a.On or before December 31 of any Year, the Director may elect to defer all or any portion of any Eligible Compensation earned by or granted to (as applicable) such Director during 
5

any Year following the Year in which the Deferral Election was made, subject to Section 2.2(b) and (c) below.  

b.Notwithstanding Section 2.2(a), with respect to any Year in which a Director is initially elected or appointed to serve on the Board, such Director may elect no later than 30 days after the Director’s commencement of services as a member of the Board to defer all or any portion of any Eligible Compensation earned by or granted to (as applicable) such Director following the later of (i) the date of the Director’s commencement of services as a Director and (ii) the date such Director’s irrevocable Deferral Election is filed with the Company.  

c.Notwithstanding Section 2.2(a), any Director who is first eligible to participate in this Plan on the Effective Date may make an initial Deferral Election no later than 30 days after the Effective Date to defer all or any portion of any Eligible Compensation earned by or granted to (as applicable) such Director following the later of (i) the Effective Date and (ii) the date such Director’s irrevocable Deferral Election is filed with the Company.

d.In each applicable Deferral Election form, the Director shall specify (i) with respect to each participating Director’s Cash Fees, the portion of any such Cash Fees which will be subject to deferral hereunder and (ii) with respect to each participating Director’s Equity Award(s), whether all or none of any such Equity Award(s) will be subject to deferral hereunder (any such deferred compensation, together, the “Deferred Compensation”).

2.3    Duration of Deferral Elections. Each Deferral Election shall continue in effect from Year to Year unless otherwise terminated in accordance with Article V or by the applicable Director by delivery of a written notice to the Administrator prior to January 1 of the Year in which such termination is first to become effective.

ARTICLE III.
DEFERRED COMPENSATION ACCOUNTS

3.1    Deferred Compensation Accounts. The Company shall maintain a bookkeeping Deferred Compensation Account for the Deferred Compensation of each participating Director.  With respect to any Deferred Compensation deferred by Director hereunder, such Deferred Compensation shall be denominated in Deferred Stock Units.  

3.2    Crediting of Cash Fees. A participating Director’s Cash Fees that are deferred hereunder shall be credited to his or her Deferred Compensation Account in the form of Deferred Stock Units on the Annual Grant Date.  On such date, the Company shall credit to the Deferred Compensation Account a number of Deferred Stock Units determined by dividing (i) the portion of the Cash Fees that the participating Director elected to defer, by (ii) the Fair Market Value of a share of Common Stock on such date, rounded down to the nearest whole Deferred Stock Unit.  A participating Director will be fully vested in each Deferred Stock Unit that relates to deferred Cash Fees.

3.3    Crediting of Equity Awards. A participating Director’s Equity Awards that are deferred hereunder shall be credited to his or her Deferred Compensation Account in an equal number of Deferred Stock Units.  The Deferred Stock Units related to such deferred Equity Award shall be subject to the same vesting or other forfeiture restrictions that would have otherwise applied to such Equity Award.  In the event the participating Director forfeits Deferred Stock Units in accordance with the foregoing, his or her Deferred Compensation Account shall be debited for the number of Deferred Stock Units forfeited.

3.4    Dividend Equivalents. Each Deferred Stock Unit credited to a Director’s Deferred Compensation Account shall carry with it a right to receive dividend equivalents in respect of the share of 
6

Common Stock underlying such Deferred Stock Unit.  On the date on which any dividend is paid to shareholders of the Company, the Company shall credit such Director’s Deferred Compensation Account, with respect to each Deferred Stock Unit credited to such account, with an additional number of Deferred Stock Units equal to the per share value of the dividend so paid divided by the Fair Market Value per share of Common Stock on the date such dividend was paid.  To the extent required by the applicable Award Agreement (as defined in the Incentive Plan) evidencing an Equity Award deferred hereunder, the Deferred Stock Units credited with respect to such dividend equivalent shall be subject to the same vesting or other forfeiture restrictions that applies to such Equity Award. 

3.5    Adjustments. If adjustments are made to the outstanding shares of Common Stock as a result of an Equity Restructuring, an appropriate adjustment also will be made in the number of Deferred Stock Units credited to each participating Director’s Deferred Compensation Account and/or to the number and kind of shares for which such Deferred Stock Units are outstanding.

ARTICLE IV.
PAYMENT OF DEFERRED COMPENSATION

4.1    Payment Events. Subject to Section 4.5, payment of any Deferred Stock Units shall be made to a participating Director in one lump sum on the earliest to occur of the following events (the “Payment Event”):  (i) the date of an In-Service Distribution; (ii) the Director’s Separation from Service; (iii) a Change in Control; (iv) the Director’s death; or (v) the Director’s Disability.  Unless otherwise determined by the Administrator in connection with a Deferral Election, each Deferral Election shall permit a Director to elect to receive payment of the Deferred Stock Units while the Director is still a member of the Board (an “In-Service Distribution”) in a lump sum within 45 days following the date that is one, three, five or ten years following the last day of the applicable Plan Year.

4.2    Timing and Form of Payment.  

a.Amounts contained in a participating Director’s Deferred Compensation Account will, subject to Section 4.5 below, be distributed in a lump sum within 45 days following the applicable Payment Event (in any case, such payment date, the “Payment Date”), in accordance with the terms and conditions set forth herein.  Notwithstanding anything to the contrary contained herein, the exact Payment Date shall be determined by the Company in its sole discretion (and the participating Director shall not have the right to designate the time of payment).  

b.Amounts credited to a Deferred Compensation Account shall be paid in the form of one whole share of Common Stock for each Deferred Stock Unit that has vested in accordance with its terms as of the applicable Payment Date; provided, that, (i) the Company may choose in its discretion to pay the participating Director cash in lieu of all or a portion of the shares of Common Stock and (ii) no fractional shares of Common Stock shall be issued and the Administrator shall determine, in its sole discretion, whether cash shall be given in lieu of fractional shares of Common Stock or whether such fractional shares of Common Stock shall be rounded up or down.  Deferred Stock Units issued to and shares of Common Stock paid to Directors under the Plan shall be issued and paid from the Incentive Plan.  

4.3    Designation of Beneficiary. Each Director shall have the right to designate a beneficiary who is to succeed to his right to receive payments hereunder in the event of the Director’s death (each, a “Designated Beneficiary”).  Any Designated Beneficiary will receive payments in the same manner as the applicable Director if he had lived.  In the event of a Director failing to designate a beneficiary under this Section 4.3 or upon the death of a Designated Beneficiary without a designated successor, the balance of the amounts contained in the Director’s Deferred Compensation Account, if any, shall be payable in 
7

accordance with Section 4.2 to the Director’s estate in full.  No designation of a beneficiary or change in beneficiary shall be valid unless in writing signed by the Director and filed with the Administrator.  A Designated Beneficiary may be changed without the consent of any prior beneficiary.

4.4    Permissible Acceleration. Notwithstanding Sections 4.1 and 4.2, all or a portion of a Director’s Deferred Compensation Account may be distributed prior to the applicable Payment Date upon the occurrence of one or more of the events specified in Treasury Regulation Section 1.409A-3(j)(4), as determined by the Administrator.

4.5    Section 409A Delay. Notwithstanding any contrary provision in the Plan, any payment required to be made hereunder to a Director who is a “specified employee” (as defined under Section 409A and as the Administrator determines) upon his or her Separation from Service will, to the extent necessary to avoid taxes under Section 409A(a)(2)(B)(i) of the Code, be delayed for the six-month period immediately following such Separation from Service (or, if earlier, until the specified employee’s death) and will instead be paid (as set forth herein) on the day immediately following such six-month period or death or as soon as administratively practicable thereafter (without interest).  Notwithstanding any contrary provision of the Plan, any payment of “nonqualified deferred compensation” under the Plan that may be made in installments shall be treated as a right to receive a series of separate and distinct payments.

4.6    Election to Further Defer Payment. To the extent all or a portion of a participating Director’s Deferred Compensation is or may become payable on or in connection with an In-Service Distribution, as set forth in the applicable Deferral Election, such Director may change such In-Service Distribution to a later date by completing and delivering a new, written Deferral Election to the Administrator, subject to the following limitations (a “Subsequent Deferral Election”):

a.The Subsequent Deferral Election shall not take effect until at least 12 months after the date on which the Subsequent Deferral Election is made in accordance with Section 409A(a)(4)(C)(i) of the Code and the Treasury Regulations thereunder;

b.The Director’s new In-Service Distribution set forth in the Subsequent Deferral Election may not be less than five years from the Payment Date otherwise applicable to the prior In-Service Distribution, as determined in accordance with Section 409A(a)(4)(C)(ii) of the Code and the Treasury Regulations thereunder;

c.The Subsequent Deferral Election shall not be made less than 12 months prior to the Payment Date otherwise applicable to the prior In-Service Distribution in accordance with Section 409A(a)(4)(C)(iii) of the Code and the Treasury Regulations thereunder; and

d.The Subsequent Deferral Election shall be made in accordance with Section 409A(a)(4)(C) of the Code and the Treasury Regulations thereunder.

ARTICLE V.
ADMINISTRATION; EFFECTIVENESS, AMENDMENT AND TERMINATION OF PLAN

5.1    Plan Administrator. The Plan will be administered by the Administrator.  The books and records to be maintained for the purpose of the Plan shall be maintained by the Company at its expense.  All expenses of administering the Plan shall be paid by the Company. 

5.2    Effective Date. The Plan was adopted by the Board effective as of the Effective Date.

8

5.3    Plan Amendment; Termination. The Board may amend, suspend, or terminate the Plan at any time and for any reason.  No amendment, suspension, or termination will, without the consent of the Director, materially impair rights or obligations under any Deferred Stock Units previously awarded to the Director under the Plan, except as provided below.  The Board may terminate the Plan and distribute the Deferred Compensation Accounts to participants in accordance with and subject to the rules of Treasury Regulation Section 1.409A-3(j)(4)(ix), or successor provisions, and any generally applicable guidance issued by the Internal Revenue Service permitting such termination and distribution.

ARTICLE VI.
MISCELLANEOUS

6.1    Limitations on Transferability. Except to the extent required by law, the right of any Director or any beneficiary thereof to any benefit or to any payment hereunder shall not be subject in any manner to attachment or other legal process for the debts of such Director or beneficiary; and any such benefit or payment shall not be subject to alienation, sale, transfer, assignment or encumbrance.

6.2    Limitations on Liability. No member of the Board and no officer or employee of the Company shall be liable to any person for any action taken or omitted in connection with the administration of the Plan unless attributable to his own fraud or willful misconduct, and the Company shall not be liable to any person for any such action unless attributable to fraud or willful misconduct on the part of a Director, officer or employee of the Company.

6.3    Rights as a Stockholder. Deferred Stock Units shall not entitle any Director or other person to rights of a stockholder of the Company or any of its affiliates with respect to such Deferred Stock Units unless and until any shares of Common Stock have been issued to the holder thereof in respect of such Deferred Stock Units pursuant to Article IV hereof.  

6.4    Limitation on Participant’s Rights. 

a.The Company shall not be required to acquire, reserve, segregate or otherwise set aside any shares of its Common Stock for the payment of its obligations under the Plan, but shall make available as and when required a sufficient number of shares of its Common Stock to meet the needs of the Plan, subject to the terms and conditions of the Incentive Plan.

b.Nothing contained herein shall be deemed to create a trust of any kind or any fiduciary relationship.  To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall be no greater than the right of any unsecured general creditor of the Company.

6.5    Severability. If any portion of the Plan or any action taken under it is held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the illegal or invalid provisions had been excluded, and the illegal or invalid action will be null and void.

6.6    Governing Documents. If any contradiction occurs between the Plan and any Deferral Election or other written agreement between a participating Director and the Company that the Administrator has approved, the Plan will govern, unless it is expressly specified in such agreement or other written document that a specific provision of the Plan will not apply.

6.7    Governing Law. The Plan will be governed by and interpreted in accordance with the laws of the State of Delaware, disregarding any state’s choice-of-law principles requiring the application of a jurisdiction’s laws other than the State of Delaware.  The Plan is intended to be construed so that 
9

participation in the Plan will be exempt from Section 16(b) of the Securities Exchange Act of 1934, as amended, pursuant to regulations and interpretations issued from time to time by the Securities and Exchange Commission.

6.8    Titles and Headings. The titles and headings in the Plan are for convenience of reference only and, if any conflict, the Plan’s text, rather than such titles or headings, will control.

6.9    Conformity to Securities Laws. Each participating Director acknowledges that the Plan is intended to conform to the extent necessary with applicable laws.  Notwithstanding anything herein to the contrary, the Plan will be administered only in conformance with applicable laws.  To the extent applicable laws permit, the Plan will be deemed amended as necessary to conform to applicable laws (subject to Section 409A).

6.10    Relationship to Other Benefits. No payment under the Plan will be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company except as expressly provided in writing in such other plan or an agreement thereunder.

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]