Document:

Exhibit 4.1

 

General Growth Properties, Inc.

2010 Equity Incentive Plan

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.

  	
  ESTABLISHMENT &
  PURPOSE

  	
  1

  
	
  1.1

  	
  Establishment

  	
  1

  
	
  1.2

  	
  Purpose
  of the Plan

  	
  1

  
	
  ARTICLE 2.

  	
  DEFINITIONS

  	
  1

  
	
  ARTICLE 3.

  	
  ADMINISTRATION

  	
  4

  
	
  3.1

  	
  Authority
  of the Committee

  	
  4

  
	
  3.2

  	
  Delegation

  	
  4

  
	
  ARTICLE 4.

  	
  ELIGIBILITY
  AND PARTICIPATION

  	
  4

  
	
  4.1

  	
  Eligibility

  	
  4

  
	
  4.2

  	
  Type
  of Awards

  	
  5

  
	
  ARTICLE 5.

  	
  SHARES
  SUBJECT TO THE PLAN AND MAXIMUM AWARDS

  	
  5

  
	
  5.1

  	
  General

  	
  5

  
	
  5.2

  	
  Annual
  Award Limits

  	
  5

  
	
  5.3

  	
  Additional
  Shares

  	
  5

  
	
  ARTICLE 6.

  	
  STOCK
  OPTIONS

  	
  5

  
	
  6.1

  	
  Grant
  of Options

  	
  5

  
	
  6.2

  	
  Terms
  of Option Grant

  	
  6

  
	
  6.3

  	
  Option
  Term

  	
  6

  
	
  6.4

  	
  Method
  of Exercise

  	
  6

  
	
  6.5

  	
  Limitations
  on Incentive Stock Options

  	
  6

  
	
  6.6

  	
  Performance
  Goals

  	
  6

  
	
  ARTICLE 7.

  	
  STOCK
  APPRECIATION RIGHTS

  	
  7

  
	
  7.1

  	
  Grant
  of Stock Appreciation Rights

  	
  7

  
	
  7.2

  	
  Terms
  of Stock Appreciation Right

  	
  7

  
	
  7.3

  	
  Tandem
  Stock Appreciation Rights and Options

  	
  7

  
	
  ARTICLE 8.

  	
  RESTRICTED
  STOCK

  	
  7

  
	
  8.1

  	
  Grant
  of Restricted Stock

  	
  7

  
	
  8.2

  	
  Terms
  of Restricted Stock Awards

  	
  7

  
	
  8.3

  	
  Voting
  and Dividend Rights

  	
  7

  
	
  8.4

  	
  Performance
  Goals

  	
  8

  
	
  8.5

  	
  Section 83(b) Election

  	
  8

  

 

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  ARTICLE 9.

  	
  OTHER
  STOCK-BASED AWARDS

  	
  8

  
	
  ARTICLE 10.

  	
  PERFORMANCE-BASED
  COMPENSATION

  	
  8

  
	
  10.1

  	
  Grant
  of Performance-Based Compensation

  	
  8

  
	
  10.2

  	
  Performance
  Measures

  	
  8

  
	
  10.3

  	
  Establishment
  of Performance Goals for Covered Employees

  	
  9

  
	
  10.4

  	
  Adjustment
  of Performance-Based Compensation

  	
  9

  
	
  10.5

  	
  Certification
  of Performance

  	
  9

  
	
  10.6

  	
  Interpretation

  	
  9

  
	
  ARTICLE 11.

  	
  COMPLIANCE
  WITH SECTION 409A OF THE CODE AND SECTION 457A OF THE CODE

  	
  9

  
	
  11.1

  	
  General

  	
  9

  
	
  11.2

  	
  Payments
  to Specified Employees

  	
  9

  
	
  11.3

  	
  Separation
  from Service

  	
  10

  
	
  11.4

  	
  Section 457A

  	
  10

  
	
  ARTICLE 12.

  	
  ADJUSTMENTS

  	
  10

  
	
  12.1

  	
  Adjustments
  in Authorized Shares

  	
  10

  
	
  12.2

  	
  Change
  of Control

  	
  10

  
	
  ARTICLE 13.

  	
  DURATION,
  AMENDMENT, MODIFICATION, SUSPENSION AND TERMINATION

  	
  11

  
	
  13.1

  	
  Duration
  of the Plan

  	
  11

  
	
  13.2

  	
  Amendment,
  Modification, Suspension and Termination of Plan

  	
  11

  
	
  ARTICLE 14.

  	
  GENERAL
  PROVISIONS

  	
  11

  
	
  14.1

  	
  No
  Right to Service

  	
  11

  
	
  14.2

  	
  Settlement
  of Awards; Fractional Shares

  	
  11

  
	
  14.3

  	
  Tax
  Withholding

  	
  12

  
	
  14.4

  	
  No
  Guarantees Regarding Tax Treatment

  	
  12

  
	
  14.5

  	
  Non-Transferability
  of Awards

  	
  12

  
	
  14.6

  	
  Conditions
  and Restrictions on Shares

  	
  12

  
	
  14.7

  	
  Compliance
  with Law

  	
  12

  
	
  14.8

  	
  Rights
  as a Shareholder

  	
  13

  
	
  14.9

  	
  Severability

  	
  13

  
	
  14.10

  	
  Unfunded
  Plan

  	
  13

  

 

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  14.11

  	
  No
  Constraint on Corporate Action

  	
  13

  
	
  14.12

  	
  Successors

  	
  13

  
	
  14.13

  	
  Governing
  Law

  	
  13

  
	
  14.14

  	
  Data
  Protection

  	
  13

  
	
  14.15

  	
  Effective
  Date

  	
  14

  

 

iii

 

General Growth Properties, Inc.

 

2010 Equity Incentive Plan

 

Article 1.               Establishment &
Purpose

 

1.1          Establishment.  New GGP, Inc., a Delaware corporation  hereby establishes the General Growth Properties, Inc. 2010 Equity
Incentive Plan (hereinafter referred to as the “Plan”) as set forth in
this document.

 

1.2          Purpose of the Plan.  The purpose of this Plan is to attract,
retain and motivate officers, employees, and non-employee directors providing
services to the Company, any of its Subsidiaries, or Affiliates and to promote
the success of the Company’s business by providing the participants of the Plan
with appropriate incentives.

 

Article 2.               Definitions

 

Whenever capitalized in the
Plan, the following terms shall have the meanings set forth below.

 

2.1          “Affiliate” means any
entity that the Company, either directly or indirectly, is in common control
with, is controlled by or controls, or any entity in which the Company has a
substantial equity interest, direct or indirect; provided, however, to the
extent that Awards must cover “service recipient stock” in order to comply with
Section 409A of the Code, “Affiliate” shall be limited to those entities
which could qualify as an “eligible issuer” under Section 409A of the
Code.

 

2.2          “Annual Award Limit” shall have the
meaning set forth in Section 5.2.

 

2.3          “Award” means any
Option, Stock Appreciation Right, Restricted Stock, Other Stock-Based Award, or
Performance-Based Compensation Award that is granted under the Plan.

 

2.4          “Award Agreement” means a
written agreement entered into by the Company and a Participant setting forth
the terms and provisions applicable to an Award granted under this Plan.

 

2.5          “Beneficial Owner” or “Beneficial Ownership” shall have the meaning
ascribed to such term in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act.

 

2.6          “Board” means the
Board of Directors of the Company.

 

2.7          “Change of Control” unless
otherwise specified in the Award Agreement, means the occurrence of any of the
following events:

 

(a)           any
consolidation, amalgamation, or merger of the Company with or into any other
Person, or any other corporate reorganization, business combination,
transaction or transfer of securities of the Company by its stockholders, or a
series of transactions (including the acquisition of capital stock of the
Company), whether or not the Company is a party thereto, in which the
stockholders of the Company immediately prior to such consolidation, merger,
reorganization, business combination or transaction, collectively have
Beneficial Ownership, directly or indirectly, of capital stock representing
directly, or indirectly through one or more entities, less than fifty percent
(50%) of the equity (measured by economic value or voting power (by contract,
share ownership or otherwise) of 

 

1

 

the Company or other
surviving entity immediately after such consolidation, merger, reorganization,
business combination or transaction;

 

(b)           the sale or
disposition, in one transaction or a series of related transactions, of all or
substantially all of the assets of the Company to any Person;

 

(c)           during any
period of twelve consecutive months commencing on or after the Effective Date
(as defined in the Joint Plan of Reorganization), individuals who as of the
beginning of such period constituted the entire Board (together with any new
directors whose election by such Board or nomination for election by the Company’s
shareholders was approved by a vote of at least two-thirds of the directors of
the Company, then still in office, who were directors at the beginning of the
period or whose election or nomination for election was previously so approved)
cease for any reason to constitute a majority thereof; or

 

(d)           approval by the
shareholders of the Company of a complete liquidation or dissolution of the
Company.

 

2.8          “Code” means the U.S.
Internal Revenue Code of 1986, as amended from time to time.

 

2.9          “Committee” means the
Compensation Committee of the Board or any other committee designated by the
Board to administer this Plan.  To the
extent applicable, the Committee shall have at least two members, each of whom
shall be (i) a Non-Employee Director, (ii) an Outside Director, and (iii) an
“independent director” within the meaning of the listing requirements of any
exchange on which the Company is listed.

 

2.10        “Company” means New GGP, Inc.,
a Delaware corporation, and any successor thereto.

 

2.11        “Covered
Employee” means for any Plan Year, a Participant designated
by the Company as a potential “covered employee” as such term is defined in Section 162(m) of
the Code.

 

2.12        “Director” means a member
of the Board who is not an Employee.

 

2.13        “Effective
Date” means the date set forth in Section 14.15.

 

2.14        “Employee” means an
officer or other employee of the Company, a Subsidiary or Affiliate, including (i) a
member of the Board who is an employee of the Company, a Subsidiary or
Affiliate and (ii) individuals who have entered into employment agreements
or have accepted a written offer of employment with the Company, a Subsidiary
or Affiliate.

 

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

 

2.16        “Fair
Market Value” means, as of any date, the per Share value
determined as follows, in accordance with applicable provisions of Section 409A
of the Code:

 

(a)           The closing price of a Share on a recognized national exchange or any
established over-the-counter trading system on which dealings take place, or if
no trades were made on any such day, the immediately preceding day on which
trades were made; or

 

2

 

(b)           In the absence
of an established market for the Shares of the type described in (a) above,
the per Share Fair Market Value thereof shall be determined by the Committee in
good faith and in accordance with applicable provisions of Section 409A of
the Code.

 

2.17        “Incentive Stock Option” means an
Option intended to meet the requirements of an incentive stock option as
defined in Section 422 of the Code and designated as an Incentive Stock
Option.

 

2.18        “Joint Plan of Reorganization” means the Third Amended Joint Plan of Reorganization of
General Growth Properties, Inc. and other debtors under Chapter 11 of the
Bankruptcy Code, as Modified [Docket No. 6232], and as may be further
modified.

 

2.19        “Non-Employee
Director” means a person defined in Rule 16b-3(b)(3) promulgated
by the Securities and Exchange Commission under the Exchange Act, or any
successor definition adopted by the Securities and Exchange Commission.

 

2.20        “Nonqualified
Stock Option” means an Option that is not an Incentive Stock
Option.

 

2.21        “Other
Stock-Based Award” means any right granted under Article 9
of the Plan.

 

2.22        “Option” means any
stock option granted under Article 6 of the Plan.

 

2.23        “Option
Price” means the purchase price per Share subject to an
Option, as determined pursuant to Section 6.2 of the Plan.

 

2.24        “Outside
Director” means a member of the Board who is an “outside
director” within the meaning of Section 162(m) of the Code and the
regulations promulgated thereunder.

 

2.25        “Participant” means any
eligible person as set forth in Section 4.1 to whom an Award is granted.

 

2.26        “Performance-Based
Compensation” means compensation under an Award that is intended
to constitute “qualified performance-based compensation” within the meaning of
the regulations promulgated under Section 162(m) of Code or any
successor provision.

 

2.27        “Performance
Measures” means measures as described in Section 10.2 on
which the performance goals are based in order to qualify Awards as
Performance-Based Compensation.

 

2.28        “Performance
Period” means the period of time during which the
performance goals must be met in order to determine the degree of payout and/or
vesting with respect to an Award.

 

2.29        “Person” shall have the
meaning ascribed to such term in Section 3(a)(9) of the Exchange Act
and used in Sections 13(d) and 14(d) thereof, including a “group”
as defined in Section 13(d) thereof.

 

2.30        “Plan” means the
General Growth Properties, Inc. 2010 Equity Incentive Plan.

 

2.31        “Plan
Year” means the applicable fiscal year of the Company.

 

2.32        “Restricted
Stock” means any Award granted under Article 8 of
the Plan.

 

3

 

2.33        “Restriction
Period” means the period during which Restricted Stock
awarded under Article 8 of the Plan is subject to forfeiture.

 

2.34        “Service”
means service as an Employee or Director.

 

2.35        “Share” means a share
of common stock of the Company, par value $0.01 per share, or such other class
or kind of shares or other securities resulting from the application of Article 12
hereof.

 

2.36        “Stock
Appreciation Right” means any right granted under Article 7
of the Plan.

 

2.37        “Subsidiary” means any
corporation, partnership, limited liability company or other legal entity of
which the Company, directly or indirectly, owns stock or other equity interests
possessing fifty percent (50%) or more of the total combined voting power of
all classes of stock or other equity interests (as determined in a manner
consistent with Section 409A of the Code).

 

2.38        “Ten
Percent Shareholder” means a person who on any given date owns,
either directly or indirectly (taking into account the attribution rules contained
in Section 424(d) of the Code), stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or a Subsidiary or Affiliate.

 

Article 3.               Administration

 

3.1          Authority
of the Committee.  The Plan
shall be administered by the Committee, which shall have full power to
interpret and administer the Plan and Award Agreements and full authority to
select the Employees and Directors to whom Awards will be granted, and to determine
the type and amount of Awards to be granted to each such Employee or Director,
and the terms and conditions of Awards and Award Agreements.  Without
limiting the generality of the foregoing, the Committee may, in its sole
discretion but subject to the limitations in Article 13, clarify, construe
or resolve any ambiguity in any provision of the Plan or any Award Agreement,
extend the term or period of exercisability of any Awards, or waive any terms
or conditions applicable to any Award. 
Awards may, in the discretion of the Committee, be made under the Plan
in assumption of, or in substitution for, outstanding awards previously granted
by the Company or any of its Subsidiaries or Affiliates or a company acquired
by the Company or with which the Company combines.  The Committee shall have full and
exclusive discretionary power to adopt rules, forms, instruments, and
guidelines for administering the Plan as the Committee deems necessary or
proper.  All actions taken and all interpretations
and determinations made by the Committee or by the Board (or any other
committee or sub-committee thereof), as applicable, shall be final and binding
upon the Participants, the Company, and all other interested individuals.

 

3.2          Delegation.  The Committee may delegate to one or more of
its members or one or more executive officers of the Company such
administrative duties or powers as it may deem advisable; provided
that no delegation shall be permitted under the Plan that is prohibited by
applicable law.

 

Article 4.               Eligibility
and Participation

 

4.1          Eligibility.  Participants will consist of such Employees
and Directors as the Committee in its sole discretion determines and whom the
Committee may designate from time to time to receive Awards.  Designation of a Participant in any year
shall not require the Committee to designate such person to receive an Award in
any other year or, once designated, to receive the same type or amount of Award
as granted to the Participant in any other year.

 

4

 

4.2          Type of
Awards.  Awards under the Plan may be
granted in any one or a combination of:  (a) Options,
(b) Stock Appreciation Rights, (c) Restricted Stock, (d) Other
Stock-Based Awards, and (e) Performance-Based Compensation Awards.  The Plan sets forth the types of performance
goals and sets forth procedural requirements to permit the Company to design
Awards that qualify as Performance-Based Compensation, as described in Article 10
hereof.  Awards granted under the Plan
shall be evidenced by Award Agreements (which need not be identical) that
provide additional terms and conditions associated with such Awards, as
determined by the Committee in its sole discretion; provided,
however, that in the event of any
conflict between the provisions of the Plan and any such Award Agreement, the
provisions of the Plan shall prevail.

 

Article 5.               Shares
Subject to the Plan and Maximum Awards

 

5.1          General.  Subject to adjustment as provided in Article 12
hereof, the maximum number of Shares available for issuance to Participants
pursuant to Awards under the Plan shall be equal to four percent (4%) of the
outstanding fully diluted Shares of the
Company as of the effective date (as defined in the Joint Plan of
Reorganization) (including shares issuable under the Joint Plan of
Reorganization).  The number
of Shares available for granting Incentive Stock Options under the Plan shall
not exceed four percent (4%) of the outstanding fully diluted Shares of the Company as of the effective date (as defined in the Joint
Plan of Reorganization) (including shares issuable under the Joint Plan of
Reorganization), subject to Article 12 hereof and the
provisions of Sections 422 or 424 of the Code and any successor
provisions.  The Shares available for
issuance under the Plan may consist, in whole or in part, of authorized and
unissued Shares or treasury Shares.

 

5.2          Annual Award Limits.  The maximum number of Shares
with respect to Awards denominated in Shares that may be granted to any
Participant in any Plan Year shall be 4,000,000 Shares (or the equivalent
dollar value), subject to adjustments made in accordance with Article 12
hereof (the “Annual Award Limit”).

 

5.3          Additional
Shares.  In the event that any
outstanding Award expires, is forfeited, cancelled or otherwise terminated
without the issuance of Shares or is otherwise settled for cash, the Shares
subject to such Award, to the extent of any such forfeiture, cancellation,
expiration, termination or settlement for cash, shall again be available for
Awards.  If the Committee authorizes the
assumption under this Plan, in connection with any merger, consolidation,
acquisition of property or stock, or reorganization, of awards granted under
another plan, such assumption shall not (i) reduce the maximum number of
Shares available for issuance under this Plan or (ii) be subject to or
counted against a Participant’s Annual Award Limit.

 

Article 6.               Stock
Options

 

6.1          Grant
of Options.  The
Committee is hereby authorized to grant Options to Participants.  Each Option shall permit a Participant to
purchase from the Company a stated number of Shares at an Option Price
established by the Committee, subject to the terms and conditions described in
this Article 6 and to such additional terms and conditions, as established
by the Committee, in its sole discretion, that are consistent with the
provisions of the Plan.  Options shall be
designated as either Incentive Stock Options or Nonqualified Stock Options,
provided that Options granted to Directors shall be Nonqualified Stock Options.  An Option granted as an Incentive Stock
Option shall, to the extent it fails to qualify as an Incentive Stock Option,
be treated as a Nonqualified Stock Option. 
Neither the Committee, the Company, any of its Subsidiaries or
Affiliates, nor any of their employees and representatives shall be liable to
any Participant or to any other Person if it is determined that an Option
intended to be an Incentive Stock Option does not qualify as an Incentive Stock
Option.  Each option shall be evidenced
by Award Agreements which shall state the number of Shares covered by such
Option.  Such agreements 

 

5

 

shall conform to the requirements of the Plan, and
may contain such other provisions, as the Committee shall deem advisable.

 

6.2          Terms
of Option Grant.  The Option
Price shall be determined by the Committee at the time of grant, but shall not
be less than one-hundred percent (100%) of the Fair Market Value of a Share on
the date of grant.  In the case of any
Incentive Stock Option granted to a Ten Percent Shareholder, the Option Price
shall not be less than one-hundred-ten percent (110%) of the Fair Market Value
of a Share on the date of grant.

 

6.3          Option
Term.  The term of each Option shall
be determined by the Committee at the time of grant and shall be stated in the
Award Agreement, but in no event shall such term be greater than ten (10) years
(or, in the case on an Incentive Stock Option granted to a Ten Percent
Shareholder, five (5) years).

 

6.4          Method
of Exercise.  Except as
otherwise provided in the Plan or in an Award Agreement, an Option may be
exercised for all, or from time to time any part, of the Shares for which it is
then exercisable.  For purposes of this Article 6,
the exercise date of an Option shall be the later of the date a notice of
exercise is received by the Company and, if applicable, the date payment is
received by the Company pursuant to clauses (i), (ii), (iii) or (iv) of
the following sentence (including the applicable tax withholding pursuant to Section 14.3
of the Plan).  The aggregate Option Price
for the Shares as to which an Option is exercised shall be paid to the Company
in full at the time of exercise at the election of the Participant (i) in
cash or its equivalent (e.g., by cashier’s check), (ii) to the extent
permitted by the Committee, in Shares previously owned by the Participant
having a Fair Market Value equal to the aggregate Option Price for the Shares
being purchased and satisfying such other requirements as may be imposed by the
Committee, (iii) partly in cash and, to the extent permitted by the
Committee, partly in such Shares (as described in (ii) above) or (iv) if
there is a public market for the Shares at such time, subject to such
requirements as may be imposed by the Committee, through the delivery of
irrevocable instructions to a broker to sell Shares obtained upon the exercise
of the Option and to deliver promptly to the Company an amount out of the
proceeds of such sale equal to the aggregate Option Price for the Shares being
purchased.  The Committee may prescribe
any other method of payment that it determines to be consistent with applicable
law and the purpose of the Plan.

 

6.5          Limitations
on Incentive Stock Options.  Incentive Stock Options may be granted only
to employees of the Company or of a “parent corporation” or “subsidiary
corporation” (as such terms are defined in Section 424 of the Code) at the
date of grant.  The aggregate Fair Market
Value (generally determined as of the time the Option is granted) of the Shares
with respect to which Incentive Stock Options are exercisable for the first
time by a Participant during any calendar year under all plans of the Company
and of any “parent corporation” or “subsidiary corporation” shall not exceed
one hundred thousand dollars ($100,000), or the Option shall be treated as a
Nonqualified Stock Option.  For purposes
of the preceding sentence, Incentive Stock Options will be taken into
account generally in the order in which they are granted.  Each provision of the Plan and each Award
Agreement relating to an Incentive Stock Option shall be construed so that each
Incentive Stock Option shall be an incentive stock option as defined in Section 422
of the Code, and any provisions of the Award Agreement thereof that cannot be
so construed shall be disregarded.

 

6.6          Performance
Goals.  The Committee may condition the
grant of Options or the vesting of Options upon the Participant’s achievement
of one or more performance goal(s) (including the Participant’s provision
of Services for a designated time period), as specified in the Award
Agreement.  If the Participant fails to
achieve the specified performance goal(s), the Committee shall not grant the
Option to such Participant or the Option shall not vest, as applicable.

 

6

 

Article 7.               Stock
Appreciation Rights

 

7.1          Grant of Stock Appreciation
Rights.  The Committee is hereby
authorized to grant Stock Appreciation Rights to Participants, including a
grant of Stock Appreciation Rights in tandem with any Option at the same time
such Option is granted (a “Tandem SAR”). 
Stock Appreciation Rights shall be evidenced by Award Agreements that
shall conform to the requirements of the Plan and may contain such other
provisions, as the Committee shall deem advisable.  Subject to the terms of the Plan and any
applicable Award Agreement, a Stock Appreciation Right granted under the Plan
shall confer on the holder thereof a right to receive, upon exercise thereof,
the excess of (a) the Fair Market Value of a specified number of Shares on
the date of exercise over (b) the grant price of the right as specified by
the Committee on the date of the grant. 
Such payment may be in the form of cash, Shares, other property or any
combination thereof, as the Committee shall determine in its sole discretion.

 

7.2          Terms
of Stock Appreciation Right.  Subject to the terms of the Plan and any
applicable Award Agreement, the grant price (which shall not be less than one
hundred percent (100%) of the Fair
Market Value of a Share on the date of grant), term, methods of
exercise, methods of settlement, and any other terms and conditions of any
Stock Appreciation Right shall be as determined by the Committee.  The Committee may impose such other
conditions or restrictions on the exercise of any Stock Appreciation Right as
it may deem appropriate.  No Stock
Appreciation Right shall have a term of more than ten (10) years from the
date of grant.

 

7.3          Tandem
Stock Appreciation Rights and Options.  A Tandem SAR shall be exercisable only to the
extent that the related Option is exercisable and shall expire no later than
the expiration of the related Option. 
Upon the exercise of all or a portion of a Tandem SAR, a Participant
shall be required to forfeit the right to purchase an equivalent portion of the
related Option (and, when a Share is purchased under the related Option, the
Participant shall be required to forfeit an equivalent portion of the Stock
Appreciation Right).

 

Article 8.               Restricted
Stock

 

8.1          Grant of
Restricted Stock.  An Award of Restricted Stock
is a grant by the Committee of a specified number of Shares to the Participant,
which Shares are subject to forfeiture upon the occurrence of specified events.  Restricted
Stock shall be evidenced by an Award Agreement, which shall conform to the
requirements of the Plan and may contain such other provisions, as the
Committee shall deem advisable.

 

8.2          Terms
of Restricted Stock Awards.  Each Award Agreement evidencing a Restricted
Stock grant shall specify the period(s) of restriction, the number of
Shares of Restricted Stock subject to the Award, the performance, employment or
other conditions (including the termination of a Participant’s Service whether
due to death, disability or other reason) under which the Restricted Stock may
be forfeited to the Company and such other provisions as the Committee shall
determine.  At the end of the Restriction
Period, the restrictions imposed hereunder and under the Award Agreement shall
lapse with respect to the number of Shares of Restricted Stock as determined by
the Committee, and the legend shall be removed and such number of Shares
delivered to the Participant (or, where appropriate, the Participant’s legal
representative).

 

8.3          Voting
and Dividend Rights.  Unless
otherwise provided in an Award Agreement, Participants shall have none of the
rights of a stockholder of the Company with respect to Restricted Stock until
the end of the Restricted Period; provided, that, Participants shall have the
right to vote and receive dividends on Restricted Stock during the Restriction Period.  Dividends shall be paid to Participants at
the same time that other shareholders of common stock of the Company receive
such dividends.

 

7

 

8.4          Performance
Goals.  The Committee may condition the
grant of Restricted Stock or the expiration of the Restriction Period upon the
Participant’s achievement of one or more performance goal(s) (including
the Participant’s provision of Services for a designated time period), as
specified in the Award Agreement.  If the
Participant fails to achieve the specified performance goal(s), the Committee
shall not grant the Restricted Stock to such Participant or the Participant
shall forfeit the Award of Restricted Stock to the Company, as applicable.

 

8.5          Section 83(b) Election.  If a Participant makes an election pursuant
to Section 83(b) of the Code concerning Restricted Stock, the
Participant shall be required to file promptly a copy of such election with the
Company.

 

Article 9.               Other
Stock-Based Awards

 

The Committee, in its sole
discretion, may grant Awards of Shares and Awards that are valued, in whole or
in part, by reference to, or are otherwise based on the Fair Market Value of,
Shares (the “Other Stock-Based Awards”), including without limitation, restricted stock units and other phantom
awards.  Such Other Stock-Based
Awards shall be in such form, and dependent on such conditions, as the
Committee shall determine, including, without limitation, the right to receive
one or more Shares (or the equivalent cash value of such Shares) upon the
completion of a specified period of Service, the occurrence of an event and/or
the attainment of performance objectives. 
Other Stock-Based Awards may be granted alone or in addition to any
other Awards granted under the Plan. 
Subject to the provisions of the Plan, the Committee shall determine to
whom and when Other Stock-Based Awards will be made, the number of Shares to be
awarded under (or otherwise related to) such Other Stock-Based Awards, whether
such Other Stock-Based Awards shall be settled in cash, Shares or a combination
of cash and Shares, and all other terms and conditions of such Awards
(including, without limitation, the vesting provisions thereof and provisions
ensuring that all Shares so awarded and issued shall be fully paid and
non-assessable).

 

Article 10.            Performance-Based
Compensation

 

10.1        Grant of Performance-Based
Compensation.  To the
extent permitted by Section 162(m) of the Code, the Committee is
authorized to design any Award so that the amounts or Shares payable or
distributed pursuant to such Award are treated as “qualified performance-based
compensation” within the meaning of Section 162(m) of the Code and
related regulations.

 

10.2        Performance Measures.  The vesting, crediting and/or payment of Performance-Based
Compensation shall be based on the achievement of objective performance goals
based on one or more of the following Performance Measures:  (i) consolidated earnings before or
after taxes (including earnings before interest, taxes, depreciation and
amortization); (ii) net income; (iii) operating income; (iv) earnings
per Share; (v) book value per Share; (vi) return on shareholders’
equity; (vii) expense management; (viii) return on investment; (ix) improvements
in capital structure; (x) profitability of an identifiable business unit
or product; (xi) maintenance or improvement of profit margins; (xii) stock
price; (xiii) market share; (xiv) revenues or sales; (xv) costs;
(xvi) cash flow; (xvii) working capital; (xviii) return on
assets; (xix) store openings or refurbishment plans; (xx) staff
training; and (xxi) corporate social responsibility policy implementation.

 

Any Performance Measure may
be (i) used to measure the performance of the Company and/or any of its
Subsidiaries or Affiliates as a whole, any business unit thereof or any
combination thereof against any goal including past performance or (ii) compared
to the performance of a group of comparable companies, or a published or
special index, in each case that the Committee, in its sole discretion, deems
appropriate.  Subject to Section 162(m) of
the Code, the Committee
may adjust the

 

8

 

performance goals (including to prorate goals and
payments for a partial Plan Year) in the event of the following
occurrences:  (a) non-recurring
events, including divestitures, spin-offs, or changes in accounting standards
or policies; (b) mergers and acquisitions; and (c) financing
transactions, including selling accounts receivable.

 

10.3        Establishment of Performance
Goals for Covered Employees.  No later than ninety (90) days after the
commencement of a Performance Period (but in no event after twenty-five percent
(25%) of such Performance Period has elapsed), the Committee shall establish in
writing:  (i) the performance goals
applicable to the Performance Period; (ii) the Performance Measures to be
used to measure the performance goals in terms of an objective formula or
standard; (iii) the formula
for computing the amount of compensation payable to the Participant if such
performance goals are obtained; and (iv) the Participants or class of
Participants to which such performance goals apply.  The outcome of such performance goals must be
substantially uncertain when the Committee establishes the goals.

 

10.4        Adjustment of Performance-Based
Compensation.  Awards that
are designed to qualify as Performance-Based Compensation may not be adjusted
upward.  The Committee shall retain the
discretion to adjust such Awards downward, either on a formula or discretionary
basis or any combination, as the Committee determines.

 

10.5        Certification of Performance.  Except for Awards that pay compensation
attributable solely to an increase in the value of Shares, no Award designed to
qualify as Performance-Based Compensation shall be vested, credited or paid, as
applicable, with respect to any Participant until the Committee certifies in
writing that the performance goals and any other material terms applicable to
such Performance Period have been satisfied.

 

10.6        Interpretation.  Each provision of the Plan and each Award
Agreement relating to Performance-Based Compensation shall be construed so that
each such Award  shall be “qualified
performance-based compensation” within the meaning of Section 162(m) of
the Code and related regulations, and any provisions of the Award Agreement
thereof that cannot be so construed shall be disregarded.

 

Article 11.            Compliance
with Section 409A of the Code and Section 457A of the Code

 

11.1        General.  The Company intends that any Awards be structured
in compliance with, or to satisfy an exemption from, Section 409A of the
Code and all regulations, guidance, compliance programs and other
interpretative authority thereunder (“Section 409A”),
such that there are no adverse tax consequences, interest, or penalties as a
result of the Awards.  Notwithstanding
the Company’s intention, in the event any Award is subject to Section 409A,
the Committee may, in its sole discretion and without a Participant’s prior
consent, amend the Plan and/or Awards, adopt policies and procedures, or take
any other actions (including amendments, policies, procedures and actions with
retroactive effect) as are necessary or appropriate to (i) exempt the Plan
and/or any Award from the application of Section 409A, (ii) preserve
the intended tax treatment of any such Award, or (iii) comply with the
requirements of Section 409A, including without limitation any such
regulations guidance, compliance programs and other interpretative authority
that may be issued after the date of grant of an Award.

 

11.2        Payments to Specified Employees.  Notwithstanding any contrary provision in the
Plan or Award Agreement, any payment(s) of nonqualified deferred
compensation (within the meaning of Section 409A) that are otherwise
required to be made under the Plan to a “specified employee” (as defined under Section 409A)
as a result of his or her separation from service (other than a payment that is
not subject to Section 409A) shall be delayed for the first six (6) months
following such separation from service (or, if earlier, the date of death of
the specified employee) and shall instead be paid (in a manner 

 

9

 

set
forth in the Award Agreement) on the payment date that immediately follows the
end of such six-month period or as soon as administratively practicable within
90 days thereafter, but in no event later than the end of the applicable
taxable year.

 

11.3        Separation from Service.  A termination of employment shall not be
deemed to have occurred for purposes of any provision of the Plan or any Award
Agreement providing for the payment of any amounts or benefits that are
considered nonqualified deferred compensation under Section 409A upon or
following a termination of employment, unless such termination is also a “separation
from service” within the meaning of Section 409A and the payment thereof
prior to a “separation from service” would violate Section 409A.  For purposes of any such provision of the
Plan or any Award Agreement relating to any such payments or benefits,
references to a “termination,” “termination of employment” or like terms shall
mean “separation from service.”

 

11.4        Section 457A.  In the event any Award is subject to Section 457A
of the Code (“Section 457A”), the Committee may, in its sole
discretion and without a Participant’s prior consent, amend the Plan and/or
Awards, adopt policies and procedures, or take any other actions (including
amendments, policies, procedures and actions with retroactive effect) as are
necessary or appropriate to (i) exempt the Plan and/or any Award from the
application of Section 457A, (ii) preserve the intended tax treatment
of any such Award, or (iii) comply with the requirements of Section 457A,
including without limitation any such regulations, guidance, compliance
programs and other interpretative authority that may be issued after the date
of the grant.

 

Article 12.            Adjustments

 

12.1        Adjustments in Authorized Shares.  In the event of any corporate event or
transaction involving the Company, a Subsidiary and/or an Affiliate (including,
but not limited to, a change in the Shares of the Company or the capitalization
of the Company) such as a merger, consolidation, reorganization,
recapitalization, separation, extraordinary stock dividend, stock split,
reverse stock split, split up, spin-off, combination of Shares, exchange of
Shares, dividend in kind, amalgamation, or other like change in capital
structure (other than regular cash or stock dividends to shareholders of the
Company), or any similar corporate event or transaction, the Committee, to
prevent dilution or enlargement of Participants’ rights under the Plan, shall
substitute or adjust, in its sole discretion, the number and kind of Shares or
other property that may be issued under the Plan or under particular forms of
Awards, the number and kind of Shares or other property subject to outstanding
Awards, the Option Price, grant price or purchase price applicable to
outstanding Awards, the Annual Award Limits, and/or other value determinations
applicable to the Plan or outstanding Awards.

 

12.2        Change of Control.  Upon the occurrence of a Change of Control
after the Effective Date (as defined in the Joint Plan of Reorganization),
unless otherwise specifically prohibited under applicable laws or by the rules and
regulations of any governing governmental agencies or national securities
exchanges, or unless the Committee shall determine otherwise in the Award
Agreement, the Committee shall make one or more of the following adjustments to
the terms and conditions of outstanding Awards: 
(i) continuation or assumption of such outstanding Awards under the
Plan by the Company (if it is the surviving company or corporation) or by the
surviving company or corporation or its parent; (ii) substitution by the
surviving company or corporation or its parent of awards with substantially the
same terms for such outstanding Awards; (iii) accelerated exercisability,
vesting and/or lapse of restrictions under outstanding Awards immediately prior
to the occurrence of such event; (iv) upon written notice, provide that
any outstanding Awards must be exercised, to the extent then exercisable,
during a reasonable period of time immediately prior to the scheduled
consummation of the event, or such other period as determined by the Committee
(contingent upon the consummation of the event), and at the end of such period,
such Awards shall terminate to the extent not so exercised within the relevant
period; 

 

10

 

and
(v) cancellation of all or any portion of outstanding Awards for fair
value (as determined in the sole discretion of the Committee and which may be
zero) which, in the case of Options and Stock Appreciation Rights or similar
Awards, if the Committee so determines, may equal the excess, if any, of the
value of the consideration to be paid in the Change of Control transaction to
holders of the same number of Shares subject to such Awards (or, if no such
consideration is paid, Fair Market Value of the Shares subject to such
outstanding Awards or portion thereof being canceled) over the aggregate Option
Price or grant price, as applicable, with respect to such Awards or portion
thereof being canceled (which may be zero).

 

Article 13.            Duration,
Amendment, Modification, Suspension and Termination

 

13.1        Duration
of the Plan.  Unless
sooner terminated as provided in Section 13.2, the Plan shall terminate on
the tenth (10th) anniversary of the Effective Date.

 

13.2        Amendment,
Modification, Suspension and Termination of Plan.  The Committee may amend, alter, suspend,
discontinue, or terminate (for purposes of this Section 13.2, an “Action”)
the Plan or any portion thereof or any Award (or Award Agreement) thereunder at
any time; provided that no such Action shall be
made, other than as permitted under Article 11 or 12, (i) without
shareholder approval (A) if such approval is necessary to comply with any
tax or regulatory requirement applicable to the Plan, (B) if such Action
increases the number of Shares available under the Plan (other than an increase
permitted under Article 5 absent shareholder approval), (C) if such
Action results in a material increase in benefits permitted under the Plan (but
excluding increases that are immaterial or that are minor and to benefit the
administration of the Plan, to take account of any changes in applicable law,
or to obtain or maintain favorable tax, exchange, or regulatory treatment for
the Company, a Subsidiary, and/or an Affiliate) or a change in eligibility
requirements under the Plan, or (D) for any Action that results in a
reduction of the Option Price or grant price per Share, as applicable, of any
outstanding Options or Stock Appreciation Rights or cancellation of any
outstanding Options or Stock Appreciation Rights in exchange for cash, or for
other Awards, such as other Options or Stock Appreciation Rights, with an
Option Price or grant price per Share, as applicable, that is less than such
price of the original Options or Stock Appreciation Rights, and (ii) without the written consent of the affected
Participant, if such Action would materially diminish the rights of any
Participant under any Award theretofore granted to such Participant under the
Plan; provided, further,
that the Committee may amend the Plan,
any Award or any Award Agreement without such consent of the Participant in
such manner as it deems necessary to comply with applicable laws, including
without limitation, the Dodd-Frank Wall Street Reform and Consumer
Protection Act.

 

Article 14.            General
Provisions

 

14.1        No
Right to Service.  The granting
of an Award under the Plan shall impose no obligation on the Company, any
Subsidiary or any Affiliate to continue the Service of a Participant and shall
not lessen or affect any right that the Company, any Subsidiary or any Affiliate
may have to terminate the Service of such Participant.  No Participant or other Person shall have any
claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards.  The terms and conditions of Awards and the
Committee’s determinations and interpretations with respect thereto need not be
the same with respect to each Participant (whether or not such Participants are
similarly situated).

 

14.2        Settlement
of Awards; Fractional Shares.  Each Award Agreement shall establish the form
in which the Award shall be settled.  The
Committee shall determine whether cash, Awards, other securities or other
property shall be issued or paid in lieu of fractional Shares or whether such
fractional Shares or any rights thereto shall be rounded, forfeited or
otherwise eliminated.

 

11

 

14.3        Tax
Withholding.  The Company
shall have the power and the right to deduct or withhold automatically from any
amount deliverable under the Award or otherwise, or require a Participant to
remit to the Company, the minimum statutory amount to satisfy federal, state,
and local taxes, domestic or foreign, required by law or regulation to be
withheld with respect to any taxable event arising as a result of the
Plan.  With respect to required
withholding, Participants may elect (subject to the Company’s automatic
withholding right set out above), subject to the approval of the Committee, to
satisfy the withholding requirement, in whole or in part, by having the Company
withhold Shares having a Fair Market Value on the date the tax is to be
determined equal to the minimum statutory total tax that could be imposed on
the transaction.

 

14.4        No
Guarantees Regarding Tax Treatment.  Participants (or their beneficiaries) shall
be responsible for all taxes with respect to any Awards under the Plan.  The Committee and the Company make no
guarantees to any Person regarding the tax treatment of Awards or payments made
under the Plan.  Neither the Committee
nor the Company has any obligation to take any action to prevent the assessment
of any tax on any Person with respect to any Award under Section 409A of
the Code or Section 457A of the Code or otherwise and none of the Company,
any of its Subsidiaries or Affiliates, or any of their employees or
representatives shall have any liability to a Participant with respect thereto.

 

14.5        Non-Transferability
of Awards.  Unless
otherwise determined by the Committee, an Award shall not be transferable or
assignable by the Participant except in the event of his death (subject to the
applicable laws of descent and distribution) and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and
unenforceable against the Company or any Affiliate.  No transfer shall be permitted for value or
consideration.  An award exercisable
after the death of a Participant may be exercised by the heirs, legatees,
personal representatives or distributees of the Participant.  Any permitted transfer of the Awards to
heirs, legatees, personal representatives or distributees of the Participant
shall not be effective to bind the Company unless the Committee shall have been
furnished with written notice thereof and a copy of such evidence as the
Committee may deem necessary to establish the validity of the transfer and the
acceptance by the transferee or transferees of the terms and conditions hereof.

 

14.6        Conditions and Restrictions on
Shares.  The Committee may impose such
other conditions or restrictions on any Shares received in connection with an
Award as it may deem advisable or desirable. 
These restrictions may include, but shall not be limited to, a
requirement that the Participant hold the Shares received for a specified
period of time or a requirement that a Participant represent and warrant in
writing that the Participant is acquiring the Shares for investment and without
any present intention to sell or distribute such Shares.  The certificates for Shares may include any
legend which the Committee deems appropriate to reflect any conditions and
restrictions applicable to such Shares.

 

14.7        Compliance with Law.  The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies, or any stock
exchanges on which the Shares are admitted to trading or listed, as may be
required.  The Company shall have no
obligation to issue or deliver evidence of title for Shares issued under the
Plan prior to:

 

(a)                                 Obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable; and

 

(b)                                 Completion of
any registration or other qualification of the Shares under any applicable
national, state or foreign law or ruling of any governmental body that the
Company determines to be necessary or advisable.

 

12

 

The restrictions contained
in this Section 14.7 shall be in addition to any conditions or restrictions
that the Committee may impose pursuant to Section 14.6.  The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company, its Subsidiaries and
Affiliates, and all of their employees and representatives of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

 

14.8        Rights
as a Shareholder.  Except as
otherwise provided herein or in the applicable Award Agreement, a Participant
shall have none of the rights of a shareholder with respect to Shares covered
by any Award until the Participant becomes the record holder of such Shares.

 

14.9        Severability.  If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction, or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to applicable laws, or if it cannot be
so construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction, Person, or Award, and the remainder of the
Plan and any such Award shall remain in full force and effect.

 

14.10      Unfunded
Plan.  Participants shall have no right,
title, or interest whatsoever in or to any investments that the Company or any
of its Subsidiaries or Affiliates may make to aid it in meeting its obligations
under the Plan.  Nothing contained in the
Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind, or a fiduciary relationship between
the Company and any Participant, beneficiary, legal representative, or any
other Person.  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 an unsecured general creditor of
the Company.  All payments to be made
hereunder shall be paid from the general funds of the Company and no special or
separate fund shall be established and no segregation of assets shall be made
to assure payment of such amounts.  The
Plan is not subject to the U.S. Employee Retirement Income Security Act of
1974, as amended from time to time.

 

14.11      No
Constraint on Corporate Action.  Nothing in the Plan shall be construed to (i) limit,
impair, or otherwise affect the Company’s right or power to make adjustments,
reclassifications, reorganizations, or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell, or
transfer all or any part of its business or assets, or (ii) limit the
right or power of the Company to take any action which such entity deems to be
necessary or appropriate.

 

14.12      Successors.  All obligations of the Company under the Plan
with respect to Awards granted hereunder shall be binding on any successor to
the Company, whether the existence of such successor is the result of a direct
or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business or assets of the Company.

 

14.13      Governing
Law.  The Plan and each Award
Agreement shall be governed by the laws of the State of Delaware, excluding any
conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of the Plan to the substantive law of another
jurisdiction.

 

14.14      Data
Protection.  By
participating in the Plan, the Participant consents to the collection,
processing, transmission and storage by the Company in any form whatsoever, of
any data of a professional or personal nature which is necessary for the
purposes of introducing and administering the Plan.  The Company may share such information with
any Subsidiary or Affiliate, the trustee of any employee benefit trust, its
registrars, trustees, brokers, other third party administrator or any Person
who 

 

13

 

obtains control of the Company or acquires the
Company, undertaking or part-undertaking which employs the Participant,
wherever situated.

 

14.15      Effective
Date.  The Plan shall be effective as
of October 27, 2010 (the “Effective Date”).

 

*        *        *

 

14Exhibit 10.1

 

EXECUTION
COPY

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (the “Agreement”),
dated as of October 27, 2010 (the “Effective
Date”) is entered into by and between New GGP, Inc., a Delaware
corporation (the “Company”) and
Sandeep Mathrani (the “Executive”).  The Company shall cause GGP Limited
Partnership, a Delaware limited partnership (the “Partnership” and together with the Company, the “Companies”) to become a party to this
Agreement as of the effective date of the Third Amended Joint Plan of
Reorganization of General Growth Properties, Inc. and other debtors under
Chapter 11 of the Bankruptcy Code, as Modified [Docket No. 6232], and as
may be further modified (the “Joint Plan of
Reorganization”).

 

RECITALS

 

The
Companies desires to employ the Executive upon and subject to the terms and
conditions set forth in this Agreement and to enter into an agreement embodying
the terms of such employment.

 

The
Executive desires to accept such employment upon and subject to the terms and
conditions set forth in this Agreement.

 

The
parties desire to enter into this Agreement;

 

NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

 

1.                                       Employment Period.  The Companies
hereby agree to employ the Executive, and the Executive hereby agrees to work
in the employ of the Companies, subject to the terms and conditions of this
Agreement, for the period commencing on the January 17, 2011(the “Commencement Date”) and ending, unless
terminated earlier pursuant to Section 3 hereof, on the fifth
anniversary of the Commencement Date (the “Employment
Period”).  The Employment
Period shall automatically be extended for an additional one year period on the
fifth anniversary of the Commencement Date and each subsequent anniversary of
the Commencement Date, unless either party provides written notice in
accordance with Section 11(b) hereof of such party’s intention
not to extend the Employment Period at least ninety days prior to the
applicable anniversary.

 

2.                                       Terms of Employment.

 

(a)                                  Position and Duties.

 

(i)                                     During the Employment Period, the Executive shall serve as
Chief Executive Officer of the Company and of the Partnership, with the
appropriate authority, duties and responsibilities attendant to such position
and any other duties commensurate with the position of Chief Executive Officer
of the Company and of the Partnership that may be reasonably assigned by the
Company’s Board of Directors (the “Board”).  The Executive shall report solely to the
Board.  The Company shall cause the
Executive to be nominated for election to the Board during the Employment
Period.

 

(ii)                                  During the Employment Period, and excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive
agrees to devote all of his business attention and time to the business and affairs
of the Companies, and to use the Executive’s reasonable best efforts to perform
such responsibilities.  During the
Employment Period it shall not be a violation of this Agreement for the
Executive to (A) serve on corporate boards or committees of businesses
that are not competitors of the Company, with prior written 

 

 

approval
of the Board, (B) serve on civic or charitable boards or committees, and (C) manage
personal investments, so long as such activities do not, individually or in the
aggregate, interfere with the performance of the Executive’s responsibilities
as an employee of the Companies in accordance with this Agreement; provided,
however, for greater clarity, during the Employment Period, the Executive shall
not hold any other management positions at other companies.

 

(iii)                               The Executive represents and warrants to the Companies that (A) neither
the execution nor delivery of this Agreement nor the performance of the
Executive’s duties hereunder violates or will violate the provisions of any
other agreement to which the Executive is a party or by which the Executive is
bound and (B) the Executive will not use or disclose, in connection with
his employment by the Companies, any confidential and/or trade secret
information of any of his prior employers or any other party.

 

(iv)                              Place of Performance.
The principal place of employment of Executive will be at the Company’s
principal executive offices in Chicago, Illinois.  The Executive understands that he shall
regularly be required to travel in connection with the performance of his
duties hereunder.

 

(vii)                           As of the Effective Date and continuing until the
Commencement Date the Executive agrees to provide consulting services to the
Companies, as may be mutually agreed by the parties.

 

(b)                                 Compensation.

 

(i)                                     Annual Base Salary.  During the
Employment Period, the Executive shall receive an annual base salary (“Annual Base Salary”) of $1,200,000 payable
in equal installments in accordance with the Partnership’s normal payroll
practice for its senior executives, subject to the Executive’s continued active
employment with the Company and the Partnership.

 

(ii)                                  Bonus.  Commencing with the 2011 fiscal year, the
Executive shall be eligible under the Company’s annual bonus plan in effect
from time to time for a target annual bonus opportunity of $1,500,000 (the “Target Annual Bonus”), which during the
first two years of the Employment Period shall consist of a guaranteed minimum
bonus of $1,000,000 and a discretionary bonus in the amount of $500,000 per
annum and thereafter shall consist of a discretionary bonus in the amount of
$1,500,000.  The guaranteed portion of
the Target Annual Bonus shall not be subject to any performance measures and
objectives.  The discretionary portion of
the Target Annual Bonus shall be subject to such performance measures and
objectives as may be established by the Compensation Committee of the Board (“Compensation Committee”) from time to time
in consultation with the Executive under the Company’s annual bonus plan,
including variations in amount based on the level of performance achieved.  The amount of the annual bonus that is
payable is referred to as the “Annual Bonus.”  The Annual Bonus for each year shall be paid
to the Executive as soon as reasonably practicable following the end of such
year and at the same time that other senior executives of the Company receive
bonus payments, but in no event later than March 15th following the end of
the fiscal year to which such Annual Bonus relates.  The Executive shall not be paid any Annual
Bonus with respect to a fiscal year unless the Executive is employed on the
date such Annual Bonus is paid, subject to Section 4 hereof.

 

(iii)                               Options.  On the Effective Date the Company shall grant
the Executive an option (the “Option”)
covering two million shares of the Company’s common stock (“Common Stock”), with an exercise price per
share equal to $10.25.  The Option shall
vest in four equal 

 

2

 

annual
installments each of the first four anniversaries of the Commencement Date and
shall be subject to the terms and conditions set forth in the Company’s 2010
Equity Incentive Plan and an option agreement entered into thereunder, which
shall not be inconsistent herewith.  The
Option shall immediately vest in full upon the Executive’s termination of
employment due to death or Disability, by the Company without Cause or by the
Executive for Good Reason.  After taking
into account any vesting that occurs in connection with the two preceding
sentences, upon the Executive’s termination of employment, the unvested portion
of the Option shall be immediately forfeited. 
The Option may be exercised, to the extent then vested, at any time
prior to the earliest to occur of (i) the tenth (10th) anniversary of the
date of grant, (ii) the date of the Executive’s termination of employment
by the Company for Cause, (iii) one year following the date of the
Executive’s termination of employment due to death or disability, and (iv) sixty
days following the date of the Executive’s termination of employment for any
other reason.

 

(iv)                              Restricted Stock.  As of the effective
date of the Joint Plan of Reorganization, the Company shall grant the Executive
1,500,000 shares of Common Stock (the “Restricted
Stock”).  The Restricted Stock
shall vest in three equal annual installments each of the first three
anniversaries of the Commencement Date and shall be subject to the terms and
conditions set forth in the Company’s 2010 Equity Incentive Plan and a
restricted stock agreement entered into thereunder, which shall not be
inconsistent herewith.  The Restricted
Stock Grant shall immediately vest in full upon the Executive’s death or
termination for Disability, by the Company without Cause or by the Executive
for Good Reason.

 

(v)                                 Annual Equity Awards.  Each fiscal year
during the Employment Period, commencing with the 2012 fiscal year, the
Executive shall be entitled to receive an annual equity award at the same time
that other senior executives of the Company are generally granted equity
awards.  Each such annual equity award
may be an award of stock options or an award of restricted stock, at the
election of the Executive.  If the
Executive elects to receive a stock option (“Annual
Option Award”), such option shall provide the Executive with the
right and option to purchase a number of Common Shares equal to five times the
Executive’s Annual Base Salary for the previous year divided by the price per
share of Common Stock on the date the Compensation Committee approves or
determines annual option grants for senior executives of the Company
generally.  All Annual Option Awards
shall have an exercise price per share equal to the fair market value of a
share of Common Stock on the date of grant (as determined by the Board,
consistent with Section 409A).  If
the Executive elects to receive restricted stock (“Annual Restricted Stock Award”), such award shall consist of
a number of Common Shares equal in value on the date of grant to the value of
the Annual Option Award the Executive could have elected to receive on such
date using the Black-Scholes pricing model, as determined by the Board in good
faith.  Each Annual Option Award or
Annual Restricted Stock Award shall vest in four equal annual installments each
of the first four anniversaries of the date of grant and shall be subject to
the terms and conditions set forth in the Company’s 2010 Equity Incentive Plan
and an award agreement entered into thereunder, which shall not be inconsistent
herewith.  Each outstanding Annual Option
Award and Annual Restricted Stock Award shall immediately vest in full upon the
Executive’s termination of employment due to death or Disability.  The portion of each outstanding Annual Option
Award and Annual Restricted Stock Award that would have otherwise vested had
the Executive remained employed through the second anniversary of the Date of
Termination shall immediately vest upon the Executive’s termination of
employment by the Company without Cause or by the Executive for Good Reason,
and the remainder of each outstanding Annual Option Award and Annual Restricted
Stock Award shall be immediately forfeited. 
After taking into account any vesting that occurs in connection with the
two preceding sentences, upon the Executive’s termination of employment, the
unvested portion of each Annual Option Award and Annual Restricted Stock Award
shall be immediately forfeited.  The
Annual 

 

3

 

Option
Awards may be exercised, to the extent then vested, at any time prior to the earliest
to occur of (i) the tenth (10th) anniversary of the date of grant, (ii) the
date of the Executive’s termination of employment by the Company for Cause, (iii) one
year following the date of the Executive’s termination of employment due to
death or disability, and (iv) sixty days following the date of the
Executive’s termination of employment for any other reason.  For the avoidance of doubt, in no event may
the Executive receive both an Annual Option Award and an Annual Restricted
Stock Award in a single year.

 

(vi)                              Signing Bonus.  On the Partnership’s
first payroll date following the Commencement Date the Companies shall pay to
the Executive a cash signing bonus in the amount of $1,000,000.

 

(vii)                           Relocation Allowance.  The Company shall
promptly reimburse the Executive for reasonable and properly documented
expenses relating to the Executive’s relocation from New York, New York to the
Chicago, Illinois area, which shall include the costs of moving the
Executive, his family and possessions to the Chicago, Illinois area.  In addition, for so long as the Executive’s
residence remains in New York, New York (but for no longer than the first
anniversary of the Commencement Date), the Company shall reimburse the
Executive for reasonable expenses incurred for temporary living accommodations
for the Executive in the Chicago, Illinois area, and reasonable air travel
expenses between New York, New York and Chicago, Illinois.  In no event may the aggregate amount
reimbursed pursuant to this Section 2(b)(vii) exceed $350,000.

 

(viii)                        Indemnification.  The Companies
agrees that if Executive is made a party to or threatened to be made a party to
any action, suit or proceeding, whether civil, criminal, administrative or
investigative (a “Proceeding”), by reason of the fact that Executive is
or was a trustee, director or officer of the Companies or is or was serving at
the request of the Companies, or any subsidiary or either thereof as a trustee,
director, officer, member, employee or agent of another corporation or a partnership,
joint venture, trust or other enterprise, including, without limitation,
service with respect to employee benefit plans, whether or not the basis of
such Proceeding is alleged action in an official capacity as a trustee,
director, officer, member, employee or agent while serving as a trustee,
director, officer, member, employee or agent, Executive shall be indemnified
and held harmless by the Companies to the fullest extent authorized by Delaware
law, as the same exists or may hereafter be amended, against all costs and
expenses incurred or suffered by Executive in connection therewith, and such
indemnification shall continue as to Executive even if Executive has ceased to
be an officer, director, trustee or agent, or is no longer employed by the Companies
and shall inure to the benefit of his heirs, executors and administrators.  The indemnification provided therein shall
continue for a period of 6 years following the time the Executive’s employment
is terminated, or for such longer period as may be provided in the Companies’
bylaws or permitted under applicable law.

 

(c)                                  Benefits.  During the Employment Period, except as
otherwise expressly provided herein, the Executive shall be entitled to
participate in all employee benefit and other plans, practices, policies and
programs and fringe benefits to the extent applicable generally and on a basis
no less favorable than that provided to other senior officers of the Company,
including, without limitation, health, medical, dental, long-term disability and
life insurance plans.  The Executive
shall be entitled to paid annual vacation totaling four weeks per year in
accordance with the Company’s vacation policy in effect from time to time.  During the Employment Period, the Companies
shall reimburse the Executive in the amount of the premiums paid by the 

 

4

 

Executive
on $10,000,000 worth of term life insurance coverage which shall be owned by
the Executive and be for the benefit of the beneficiaries designated by the
Executive.

 

(d)                                 Expenses.  The Company shall reimburse Executive for all
reasonable and necessary expenses actually incurred by Executive in connection
with the business affairs of the Company and the Partnership and the
performance of Executive’s duties hereunder, in accordance with Company policy,
as in effect from time to time.

 

(e)                                  Car Allowance/Automobile.  During the
Employment Period, the Company shall provide Executive with an automobile and
shall reimburse the Executive for the expenses of operating such automobile,
including gas, oil, repairs and insurance. 
During the Employment Period the Executive will receive a new car every
three years or allowance depending upon Company’s policy at the time.

 

3.                                       Termination of Employment.

 

(a)                                  Death or Disability.  The Executive’s
employment shall terminate automatically upon the Executive’s death during the
Employment Period.  If the Company
determines in good faith that the Disability of the Executive has occurred
during the Employment Period (pursuant to the definition of Disability set
forth below), the Company may give to the Executive written notice, in
accordance with Section 11(b), of its intention to terminate the
Executive’s employment.  In such event,
the Executive’s employment with the Company shall terminate effective on the
30th day after the Executive’s receipt of such notice by the Company (the “Disability Effective Date”), provided,
that within the 30 days after such receipt, the Executive shall not have
returned to full-time performance of the Executive’s duties.  For purposes of this Agreement, “Disability” shall mean a determination by
independent competent medical authority (selected by the Board) that the
Executive is unable to perform his duties under this Agreement and in all reasonable
medical likelihood such inability will continue for a period in excess of 180
days in any 365 day period.  The
Executive shall fully cooperate in connection with the determination of whether
Disability exists.

 

(b)                                 Cause.  The Company may terminate the Executive’s
employment during the Employment Period with or without Cause.  For purposes of this Agreement, “Cause” shall mean the Executive’s:

 

(i)                                     conviction, plea of guilty or no contest to any felony or
crime of dishonesty or moral turpitude;

 

(ii)                                  gross negligence or willful misconduct in the performance of
the Executive’s duties;

 

(iii)                               drug addiction or habitual intoxication that adversely
effects the Executive’s job performance or the reputation or best interests of
the Companies;

 

(iv)                              commission of fraud, embezzlement, misappropriation of
funds, breach of fiduciary duty or a material act of dishonesty against the
Companies;

 

(v)                                 material breach of this Agreement;

 

(vi)                              noncompliance with Company policy or code of conduct; or

 

5

 

(vii)                           willful and continued failure to substantially perform his
duties hereunder (other than such failure resulting from Executive’s incapacity
due to physical or mental illness) after demand for substantial performance is
delivered by the Company in writing that specifically identifies the manner in
which the Company believes Executive has not substantially performing his
duties;

 

unless, in
the case of clauses (ii), (v) and (vi), the event constituting Cause is
curable and has been cured by the Executive within 30 business days of his
receipt of notice from the Company that an event constituting Cause has
occurred and specifying the details of such event.

 

For
purposes of this provision, no act or omission on the part of the Executive
shall be considered “willful” unless it is done or omitted not in good faith or
without reasonable belief that the act or omission was in the best interests of
the Company.  Any act or omission based
upon a resolution duly adopted by the Board or advice of counsel for the
Company shall be conclusively presumed to have been done or omitted in good
faith and in the best interests of the Company. 
“Cause” shall not include bad judgment or failure of the Company or
Partnership to meet financial performance objectives.  This Section 3(b) shall not
prevent Executive from challenging in any court of competent jurisdiction the
Board’s determination that Cause exists or that Executive has failed to cure
any act (or failure to act) that purportedly formed the basis for the Board’s
determination.

 

(c)                                  Resignation.  The Executive may terminate the Executive’s
employment during the Employment Period for Good Reason.  For purposes of this Agreement, “Good Reason”
shall mean the occurrence of any of the following events without Executive’s
written consent:  (i) a material
adverse change in the Executive’s duties or responsibilities, (ii) a
reduction of the Executive’s salary, (iii) the relocation of the Executive’s
principal place of employment to anywhere other than the Company’s principal
office, (iv) a material breach of this Agreement by the Companies, or (v) the
failure by the Companies to obtain written assumption of this Agreement by a
purchaser or successor of the Company; provided, that, the Executive must
provide a Notice of Termination to the Company within 60 days of the occurrence
of the event constituting Good Reason, and in the event the Executive provides
notice of Good Reason pursuant to clause (i), (ii), (iv) or (v) above,
the Company shall have the opportunity to cure such event constituting Good
Reason within 30 days of receiving such notice.

 

(d)                                 Without Cause.  The Company will
have the right to terminate Executive’s employment hereunder without Cause by
providing Executive with a Notice of Termination, and such termination shall
not in and of itself be, nor shall it be deemed to be, a breach of this
Agreement.  This means that,
notwithstanding this Agreement, Executive’s employment with the Company will be
“at will.”

 

(e)                              Without Good Reason.  Executive will have
the right to terminate his employment hereunder without Good Reason by
providing the Company with a Notice of Termination, and such termination shall
not in and of itself be, nor shall it be deemed to be, a breach of this
Agreement.

 

(f)                                    Notice of Termination.  Any termination by
the Company or by the Executive shall be communicated by Notice of Termination
to the other party hereto given in accordance with Section 11(b).  For purposes of this Agreement, a “Notice of Termination” means a written
notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated 

 

6

 

and (iii) if
the Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the Date of Termination. 
The failure by the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Cause shall not waive
any right of the Company, hereunder, or preclude the Company, from asserting
such fact or circumstance in enforcing the Company’s rights hereunder.

 

(g)                                 Date of Termination.  “Date of Termination” means (i) if the
Executive’s employment is terminated by the Company other than for Disability,
the date of receipt of the Notice of Termination or any later date specified
therein within 90 days of such notice, (ii) if the Executive’s employment
is terminated by the Executive, 30 days after receipt of the Notice of
Termination (provided, that the Company may accelerate the Date of Termination
to an earlier date by providing the Executive with notice of such action) (iii) if
the Executive’s employment is terminated by reason of death or Disability, the
Date of Termination shall be the date of the Executive’s death or the
Disability Effective Date, as the case may be, and (iv) if Executive’s
employment is terminated by expiration of this Agreement, the date of
expiration of this Agreement.

 

4.                                       Obligations of the Company upon Termination.

 

(a)                                  Other Than For Cause.  If, during the
Employment Period, the Company shall terminate the Executive’s employment other
than for Cause or Disability, or if Executive shall terminate his employment
for Good Reason, or if the Executive’s employment shall terminate because of
the Company’s delivery of a notice of non-extension pursuant to Section 1
hereof, the Company shall have no further obligations to the Executive except
as follows:

 

(i)                                     the Company shall pay or provide the Executive, to the
extent not theretofore paid, (A) a lump sum in cash as soon as practicable
after the Date of Termination in an amount equal to the sum of (1) the
Annual Base Salary (which shall be the Annual Base Salary prior to reduction if
the termination is for Good Reason because of a reduction in Annual Base
Salary) through the Date of Termination, (2) and accrued vacation pay
through the Date of Termination, and (B) any other amounts or benefits
required to be paid or provided pursuant to applicable law, (the total of (A) and
(B), the “Accrued Benefits”);

 

(ii)                                  the Company shall pay the Executive a pro rata portion of
the Annual Bonus for the year in which the Date of Termination occurs, in an
amount determined by multiplying the Annual Bonus most recently paid to the
Executive prior to the Date of Termination (or if the Date of Termination
occurs prior to the payment of any Annual Bonus, $1,000,000) by a fraction, the
numerator of which is the number of days the Executive was employed during the
year in which the Date of Termination occurs and the denominator of which is
365 (the “Pro-Rata Bonus”).  The amount described in this Section 4(a)(ii) shall
be paid at the same time as the Annual Bonus for such year is paid to other
executives of the Company; provided it shall be paid no later than March 15
of the year following the year in which the Date of Termination occurs;

 

(iii)                               the Company shall pay the Executive an amount equal to 200%
of the sum of the Annual Base Salary plus the Annual Bonus most recently paid
to the Executive prior to the Date of Termination (or if the Date of
Termination occurs prior to the payment of any Annual Bonus, $1,000,000),
payable in equal monthly installments over the two year period following the
Date of Termination, in accordance with the Partnership’s normal payroll
practices;

 

7

 

(iv)                              the outstanding equity awards contemplated by Section 2(b) shall
vest in accordance with Section 2(b) hereof;

 

(v)                                 the Company shall pay any unpaid Annual Bonus for a fiscal
year ending prior to the Date of Termination, which shall be paid at the same
time as set forth in Section 2(b)(ii) hereof;

 

(vi)                              the Company shall provide coverage or pay an amount equal to
the applicable COBRA premium rate, if any, for the Executive, his spouse and
his eligible dependents (the “COBRA Benefits”)
through the second anniversary of the Date of Termination with respect to any
welfare benefits for which the Executive elects COBRA coverage; and

 

(vii)                           the Company shall transfer title to Executive, and Executive
shall be entitled to keep the Company-owned BlackBerry, i-pad, laptop computer
and cell phone used by the Executive during the Employment Period, subject to
the removal of all confidential and proprietary information of the Company.

 

(b)                                 Death; Disability.  If, during the
Employment Period, the Executive’s employment shall terminate on account of
death (other than via death after delivery of a valid Notice of Termination
with or without Cause) or Disability, the Company shall have no further
obligations to the Executive other than to provide the Executive (or his
estate) (i) the Accrued Benefits;  (ii) the
Pro-Rata Bonus, paid in a lump sum in cash as soon as practicable after the
Date of Termination; (iii) any unpaid Annual Bonus for a fiscal year
ending prior to the Date of Termination, and (iv) the Restricted Stock,
Option and any outstanding Annual Option Awards and Annual Restricted Stock
Awards shall become 100% vested in accordance with Section 2(b) hereof.

 

(c)                                  For Cause; Resignation Without Good Reason.  If, during the
Employment Period, the Company shall terminate the Executive’s employment for
Cause or the Executive terminates his employment other than for Good Reason,
the Company shall have no further obligations to the Executive other than the
obligation to pay to the Executive the Accrued Benefits.

 

(d)                                 Condition.  The Company shall not be required to make the
payments and provide the benefits specified in Section 4(a)(ii) through
(vi) unless, prior to payment, the parties hereto have entered into
a release substantially in the form attached hereto as Attachment A (for which
the applicable 7-day revocation period has expired) within 60 days following
the Date of Termination, under which the Executive releases the Company, its
affiliates and its officers, directors and employees from all liability (other
than the payments and benefits under this Agreement).  Any payments or benefits specified in Section 4(a)(ii) through
(vi) shall be withheld pending the Executive’s execution and
delivery of the release and shall be paid to the Executive on the sixtieth day
following the Executive’s termination of employment.  In the event the release is not executed and
delivered to the Company in accordance with this Section 4(d), the
payments and benefits specified in Section 4(a)(ii) through (vi) shall
be forfeited.

 

(e)                                  Resignation from Certain Directorships.  Following the
Employment Period or the termination of the Executive’s employment for any
reason, if and to the extent requested by the Board, the Executive agrees to
resign from the Board, all fiduciary positions (including as trustee) and from
all other offices and positions he holds with the Company and any of its
affiliates; provided, however, that if the Executive refuses to tender his
resignation after the 

 

8

 

Board has
made such request, then the Board shall be empowered to tender the Executive’s
resignation from such offices and positions.

 

5.                                       Full Settlement.  In no event shall
the Executive be obligated to seek other employment, or take any other action
by way of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement, and such amounts shall not be reduced whether or
not the Executive obtains other employment. 
The Company may offset any amounts that it owes to the Executive by any
amounts relating to employment matters that the Executive owes to the Company
or its affiliates; provided that in no event shall any payment under this
Agreement that constitutes “nonqualified deferred compensation” for purposes of
Section 409A be subject to offset by any other amount unless otherwise
permitted by Section 409A.

 

6.                                       Section 4999 of the Code.

 

(a)                                  General Rules.  Anything in this
Agreement to the contrary notwithstanding, in the event it shall be determined
that any payment, award, benefit or distribution (or any acceleration of any
payment, award, benefit or distribution) by the Company (or any of its
affiliated entities) or any entity which effectuates a change in control (or
any of its affiliated entities) to or for the benefit of Executive (whether
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 6) (the “Payments”) would be subject to the excise
tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Code”), or any
interest or penalties are incurred by Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise
Tax”), then the Company shall pay to Executive an additional payment
(a “Gross-Up Payment”) in an
amount such that after payment by Executive of all taxes (including any Excise
Tax) imposed upon the Gross-Up Payment, Executive retains an amount of the
Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the
Payments and (y) the product of any deductions disallowed because of the
inclusion of the Gross-Up Payment in Executive’s adjusted gross income and the
highest applicable marginal rate of federal income taxation for the calendar
year in which the Gross-Up Payment is to be made.  For purposes of determining the amount of the
Gross-Up Payment, the Executive shall be deemed to (i) pay federal income
taxes at the Executive’s actual marginal rates of federal income taxation for
the calendar year in which the Gross-Up Payment is to be made, (ii) pay
applicable state and local income taxes at the Executive’s actual marginal rate
of taxation for the calendar year in which the Gross-Up Payment is to be made,
net of the actual reduction in federal income taxes which could be obtained
from deduction of such state and local taxes and (iii) have otherwise
allowable deductions for federal income tax purposes at least equal to those
which could be disallowed because of the inclusion of the Gross-Up Payment in
the Executive’s adjusted gross income. 
Notwithstanding the foregoing provisions of this Section 6(a), if
it shall be determined that Executive is entitled to a Gross-Up Payment, but
that the Payments would not be subject to the Excise Tax if the Payments were
reduced by an amount that is less than 10% of the portion of the Payments that
would be treated as “parachute payments” under Section 280G of the Code,
then the amounts payable to Executive under this Agreement shall be reduced
(but not below zero) to the maximum amount that could be paid to Executive
without giving rise to the Excise Tax (the “Safe
Harbor Cap”), and no Gross-Up Payment shall be made to
Executive.  In the event that the
Payments would be reduced as provided in this Section 6(a), then such
reduction shall be determined in a manner which has the least economic cost to
Executive and, to the extent the economic cost is equivalent, the Payments will
be reduced in the inverse order of when the Payments would have been made to
Executive until the reduction specified is achieved.  If the reduction of the amounts payable
hereunder would not result in a reduction of the Payments to the

 

9

 

Safe
Harbor Cap, Payments (including acceleration of any award) pursuant to option
and restricted stock award agreements shall be reduced.

 

(b)                                 Determinations.  Subject to the
provisions of Section 6(a), all determinations required to be made under
this Section 6, including whether and when a Gross-Up Payment is required,
the amount of such Gross-Up Payment, the amount of any Option Redetermination
(as defined below), the reduction of the Payments to the Safe Harbor Cap and
the assumptions to be utilized in arriving at such determinations, shall be
made by the public accounting firm that is retained by the Company as of the
date immediately prior to the Change in Control (the “Accounting Firm”) which shall provide
detailed supporting calculations both to the Company and Executive within 15
business days of the receipt of notice from the Company or the Executive that
there has been a Payment, or such earlier time as is requested by the Company
(collectively, the “Determination”).  For the avoidance of doubt, the Accounting
Firm may use the Option Redetermination amount in determining the reduction of
the Payments to the Safe Harbor Cap. 
Notwithstanding the foregoing, in the event (i) the Board shall
determine prior to the change in control that the Accounting Firm is precluded
from performing such services under applicable auditor independence rules or
(ii) the Audit Committee of the Board determines that it does not want the
Accounting Firm to perform such services because of auditor independence
concerns or (iii) the Accounting Firm is serving as accountant or auditor
for the individual, entity or group effecting the change in control, the Board
shall appoint a nationally recognized public accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). 
All fees and expenses of the Accounting Firm shall be borne solely by
the Company and the Company shall enter into any agreement requested by the
Accounting Firm in connection with the performance of the services
hereunder.  The Gross-Up Payment under
this Section 6 with respect to any Payments shall be made no later than 30
days following such Payment.  If the
Accounting Firm determines that no Excise Tax is payable by Executive, it shall
furnish Executive with a written opinion to such effect, and to the effect that
failure to report the Excise Tax, if any, on Executive’s applicable federal
income tax return will not result in the imposition of a negligence or similar
penalty.  In the event the Accounting
Firm determines that the Payments shall be reduced to the Safe Harbor Cap, it
shall furnish Executive with a written opinion to such effect.  The Determination by the Accounting Firm
shall be binding upon the Company and Executive.  As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the Determination,
it is possible that Gross-Up Payments which will not have been made by the
Company should have been made (“Underpayment”)
or Gross-Up Payments are made by the Company which should not have been made (“Overpayment”), consistent with the
calculations required to be made hereunder. 
In the event that the Executive thereafter is required to make payment
of any Excise Tax or additional Excise Tax, the Accounting Firm shall determine
the amount of the Underpayment that has occurred and any such Underpayment
(together with interest at the rate provided in Section 1274(b)(2)(B) of
the Code) shall be promptly paid by the Company to or for the benefit of Executive.  In the event the amount of the Gross-Up
Payment exceeds the amount necessary to reimburse the Executive for his or her
Excise Tax, the Accounting Firm shall determine the amount of the Overpayment
that has been made and any such Overpayment (together with interest at the rate
provided in Section 1274(b)(2) of the Code) shall be promptly paid by
Executive (to the extent he or she has received a refund if the applicable
Excise Tax has been paid to the Internal Revenue Service) to or for the benefit
of the Company.  Executive shall
cooperate, to the extent his or her expenses are reimbursed by the Company,
with any reasonable requests by the Company in connection with any contests or
disputes with the Internal Revenue Service in connection with the Excise
Tax.  In the event that the Company makes
a Gross-Up Payment to the Executive and subsequently the Company determines
that the value of any accelerated vesting of stock options held by Executive
shall be redetermined within the context of Treasury Regulation §1.280G-1 Q/A
33 (the “Option 

 

10

 

Redetermination”),
Executive shall (i) file with the Internal Revenue Service an amended
federal income tax return that claims a refund of the overpayment of the Excise
Tax attributable to such Option Redetermination and (ii) promptly pay the
refunded Excise Tax to the Company; provided that the Company shall pay all
reasonable professional fees incurred in the preparation of Executive’s amended
federal income tax return.  In the event
that amounts payable to Executive under this Agreement were reduced pursuant to
the third sentence of Section 6(a) and subsequently Executive
determines there has been an Option Redetermination that reduces the value of
the Payments attributable to such options, the Company shall promptly pay to
Executive any amounts payable under this Agreement that were not previously
paid solely as a result of the third sentence of Section 6(a) up to
the Safe Harbor Cap.

 

7.                                       Covenants Not to Solicit Company Employees;
Confidential Information.

 

(a)                                  Non-Solicit.  During the Employment Period, and for a
twelve month period after the Executive’s employment is terminated for any
reason, the Executive shall not (except in connection with the performance of
his duties for the Companies) in any manner, directly or indirectly (without
the prior written consent of the Company) Solicit anyone who is then an
employee of the Company or its affiliates (or who was an employee of the
Company or its affiliates within the prior 12 months) to resign from the
Company or its affiliates or to apply for or accept employment with any other
business or enterprise.  For purposes of
this Agreement, “Solicit” means
any direct or indirect communication of any kind, regardless of who initiates
it, that in any way invites, advises, encourages or requests any person to take
or refrain from taking any action.

 

(b)                                 Confidential Information.  The Executive
hereby acknowledges that, as an employee of the Company, he will be making use
of, acquiring and adding to confidential information of a special and unique
nature and value relating to the Company and its affiliates and their strategic
plan and financial operations.  The
Executive further recognizes and acknowledges that all confidential information
is the exclusive property of the Company and its affiliates, is material and
confidential, and is critical to the successful conduct of the business of the
Company and its affiliates.  Accordingly,
the Executive hereby covenants and agrees that he will use confidential
information for the benefit of the Company and its affiliates only and shall
not at any time, directly or indirectly, during the term of this Agreement and
thereafter divulge, reveal or communicate any confidential information to any
person, firm, corporation or entity whatsoever, or use any confidential
information for his own benefit or for the benefit of others.  Notwithstanding the foregoing, the Executive
shall be authorized to disclose confidential information (i) as may be
required by law or legal process after providing the Company with prior written
notice and an opportunity to respond to such disclosure (unless such notice is
prohibited by law), or (ii) with the prior written consent of the Company.

 

(c)                                  Non-Competition.  During the
Employment Period the Executive shall not directly or indirectly (whether for
compensation or otherwise) own or hold any interest in, manage, operate,
control, consult with, render services for, or in any manner participate in any
business that is competitive with the business of the Companies, either as a
general or limited partner, proprietor, shareholder, officer, director, agent,
employee, consultant, trustee, affiliate or otherwise.  Nothing herein shall prohibit the Executive
from being a passive owner of (i) not more than two percent (2%) of the
outstanding securities of any publicly traded company engaged in the business
of the Companies and (ii) the limited partner interests listed on
Attachment B.

 

11

 

(d)                                 Survival.  Any termination of the Executive’s employment
or of this Agreement (or breach of this Agreement by the Executive or the
Company) shall have no effect on the continuing operation of this Section 7.

 

(e)                                  Non-disparagement.  During the
Employment Period and thereafter, the Executive shall not, in any manner,
directly or indirectly make any false or any disparaging or derogatory
statements about the Company, any of its affiliates or any of their employees,
officers or directors.  The Company, in
turn, agrees that it will not make, in any authorized corporate communications
to third parties, and it will direct the members of the Board and the Chief
Executive Officer, not to in any manner, directly or indirectly make any false
or any disparaging or derogatory statements about the Executive; provided,
however, that nothing herein shall prevent either party from giving truthful
testimony or from otherwise making good faith statements in connection with
legal investigations or other proceedings.

 

(f)                                    Enforcement.  If, at the time of enforcement of this Section 7,
a court holds that the restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the maximum period,
scope or geographical area reasonable under such circumstances shall be
substituted for the stated period, scope or area.  Because Executive’s services are unique and
because Executive has access to confidential information, the parties hereto
agree that money damages would be an inadequate remedy for any breach of this Section 5.  Therefore, in the event of a breach or
threatened breach of this Agreement, the Company or its successors or assigns
may in addition to other rights and remedies existing in their favor, apply to
any court of competent jurisdiction for specific performance and/or injunctive
or other relief in order to enforce, or prevent any violations of, the
provisions hereof.

 

8.                                       Successors.

 

(a)                                  This Agreement is personal to the Executive and without the
prior written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of
and be enforceable by the Executive’s legal representatives.

 

(b)                                 This Agreement shall inure to the benefit of and be binding
upon the Companies and their respective successors and assigns.

 

(c)                                  The Companies will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business and/or assets of the Company to assume expressly and agree
to perform this Agreement in the same manner and to the same extent that the
Companies would be required to perform it if no such succession had taken
place.  As used in this Agreement, “Company” shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid.

 

9.                                       Disputes.

 

(a)                                  Jurisdiction and Choice of Forum.  All disputes
arising under or related to the employment of the Executive or the provisions
of this Agreement shall be settled by arbitration under the rules of the
American Arbitration Association then in effect, such arbitration to be held in
Chicago, Illinois, as the sole and exclusive remedy of either party. The
arbitration shall be heard by one arbitrator mutually agreed upon by the
parties, who must be a former judge.  In
the event that the parties cannot agree upon the selection of the arbitrator
within 10 days, each party shall select one arbitrator and those arbitrators
shall select a third arbitrator who will serve as the 

 

12

 

sole
arbitrator.  The arbitrator shall have
the authority to order expedited discovery, hearing and decision, including the
ability to set outside time limits for such discovery, hearing and
decision.  The parties shall direct the
arbitrator to render a decision not later than 90 days following the
arbitration hearing.  Judgment on any
arbitration award may be entered in any court of competent jurisdiction.

 

(b)                                 Governing Law.  This Agreement will
be governed by and construed in accordance with the law of the State of
Illinois applicable to contracts made and to be performed entirely within that
State.

 

(c)                                  Costs.  The Company shall reimburse all reasonable
legal fees and expenses in connection with the negotiation of this Agreement,
up to a maximum of $20,000.

 

10.                                 Section 409A of the Code.

 

(a)                                  Compliance.  The intent of the parties is that payments
and benefits under this Agreement are either exempt from or comply with Section 409A
of the Internal Revenue Code (“Section 409A”)
and, accordingly, to the maximum extent permitted, the Agreement shall be
interpreted to that end.  The Parties
acknowledge and agree that the interpretation of Section 409A and its
application to the terms of this Agreement is uncertain and may be subject to
change as additional guidance and interpretations become available.  In no event whatsoever shall the Company be
liable for any tax, interest or penalties that may be imposed on the Executive
by Section 409A or any damages for failing to comply with Section 409A.

 

(b)                                 Six Month Delay for Specified Employees.  If any payment,
compensation or other benefit provided to the Executive in connection with his
employment termination is determined, in whole or in part, to constitute “nonqualified
deferred compensation” within the meaning of Section 409A and the
Executive is a “specified employee” as defined in Section 409A, no part of
such payments shall be paid before the day that is six (6) months plus one
(1) day after the Executive’s date of termination or, if earlier, the
Executive’s death (the “New  Payment Date”).  The aggregate of any payments that otherwise
would have been paid to the Executive during the period between the date of
termination and the New Payment Date shall be paid to the Executive in a lump
sum on such New Payment Date. 
Thereafter, any payments that remain outstanding as of the day
immediately following the New Payment Date shall be paid without delay over the
time period originally scheduled, in accordance with the terms of this
Agreement.

 

(c)                                  Termination as a Separation from Service.  A termination of
employment shall not be deemed to have occurred for purposes of any provision
of this Agreement providing for the payment of any amounts or benefits subject
to Section 409A upon or following a termination of employment until such
termination is also a “separation from service” within the meaning of Section 409A
and for purposes of any such provision of this Agreement, references to a “resignation,”
“termination,” “terminate,” “termination of employment” or like terms shall
mean separation from service.

 

(d)                                 Payments for Reimbursements and In-Kind Benefits.  All reimbursements
for costs and expenses under this Agreement shall be paid in no event later
than the end of the calendar year following the calendar year in which the
Executive incurs such expense.  With
regard to any provision herein that provides for reimbursement of costs and
expenses or in-kind benefits, except as permitted by Section 409A, (i) the
right to reimbursement or in-kind benefits shall not be subject to liquidation
or exchange for another benefit, and (ii) the amount of expenses 

 

13

 

eligible for
reimbursements or in-kind benefits provided during any taxable year shall not
affect the expenses eligible for reimbursement or in-kind benefits to be
provided in any other taxable year.

 

(e)                                  Payments within Specified Number of Days.  Whenever a payment
under this Agreement specifies a payment period with reference to a number of
days (e.g., “payment shall be made within thirty (30) days following the date
of termination”), the actual date of payment within the specified period shall
be within the sole discretion of the Company.

 

(f)                                    Installments as Separate Payment.  If under this
Agreement, an amount is paid in two or more installments, for purposes of Section 409A,
each installment shall be treated as a separate payment.

 

11.                                 Miscellaneous.

 

(a)                                  Amendment.  This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

 

(b)                                 Notices.  All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

 

If
to the Executive:

 

at
the Executive’s primary residential address

as
shown on the records of the Company

 

If
to the Company:

 

General
Growth Properties, Inc.

110
North Wacker Drive

Chicago, IL  60606

Telecopy
Number:  312-960-5485

Attention:  Office of the General Counsel

 

or to such
other address as either party shall have furnished to the other in writing in
accordance herewith.  Notice and
communications shall be effective when actually received by the addressee.

 

(c)                                  Severability.  The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

 

(d)                                 Tax Withholding.  The Company may
withhold from any amounts payable under this Agreement such federal, state,
local or foreign taxes as shall be required to be withheld pursuant to any
applicable law or regulation.

 

(e)                                  Compliance with Dodd-Frank.  All payments under
this Agreement, if and to the extent subject to the Dodd-Frank Wall Street
Reform and Consumer Protection Act, shall be subject to any incentive
compensation policy established from time to time by the Company to comply with
such Act.

 

14

 

(f)                                    No Waiver.  The Executive’s or the Company’s failure to
insist upon strict compliance with any provision of this Agreement or the
failure to assert any right the Executive or the Company may have hereunder,
including, without limitation, the Company’s right to terminate the Executive
for Cause pursuant to Section 3(b) (subject to the limitation in the
last sentence of Section 3(b)), shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement.

 

(g)                                 No Strict Construction.  It is the parties’
intention that this Agreement not be construed more strictly with regard to the
Executive or the Company.

 

(h)                                 Entire Agreement.  From and after the
Effective Date, this Agreement shall supersede any other employment or
severance agreement or similar arrangements between the parties, and shall
supersede any prior understandings, agreements or representations by or among
the parties, written or oral, whether in term sheets, presentations or
otherwise, relating to the subject matter hereof.

 

(i)                                     Counterparts.  This Agreement may
be signed in counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.

 

(j)                                     Section References; Captions.  Any reference to a Section herein
is a reference to a section of this Agreement unless otherwise stated.  The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect.

 

15

 

IN WITNESS WHEREOF,
the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from their respective Boards of Directors or other duly
authorized governing body, the Companies have caused these presents to be
executed in its name on their behalf, all as of the Effective Date.

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Sandeep Mathrani

  
	
   

  	
  Sandeep Mathrani

  
	
   

  	
   

  
	
   

  	
  NEW GGP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Ronald L. Gern

  
	
   

  	
   

  	
  Name:

  	
  Ronald L. Gern

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  GGP LIMITED PARTNERSHIP

  
	
   

  	
  By:General Growth
  Properties, Inc., its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  

 

16

 

ATTACHMENT A

 

WAIVER AND RELEASE AGREEMENT

 

This
Waiver and Release Agreement (hereinafter “Release”) is entered into among
Sandeep Mathrani (hereinafter “Executive”), General Growth Properties, Inc.,
a Delaware corporation (the “Company”), and GGP Limited Partnership, a Delaware
limited partnership (the “Partnership” and collectively, the “Companies”).

 

The
parties previously entered into an employment agreement dated October 27,
2010 pursuant to which Executive is entitled to certain payments and benefits
upon termination of employment subject to the execution and non-revocation of
this Release.  Executive has had a
termination of employment pursuant to such employment agreement.

 

NOW
THEREFORE, in consideration of certain payments and benefits under his
employment agreement, Executive and the Companies agree as follows:

 

1.                                       Executive expressly waives and releases the Companies, their
respective affiliates and related entities, parent corporations and
subsidiaries, and all current and former directors, administrators, supervisors,
managers, agents, officers, partners, stockholders, attorneys, insurers and
employees of the Companies and their affiliates, related entities, parent
corporations and subsidiaries, and their successors and assigns, from any and
all claims, actions and causes of action, at law or in equity, known or
unknown, including those directly or indirectly relating to or connected with
Executive’s employment with the Companies or termination of such employment,
including but not limited to any and all claims under the Illinois Human Rights
Act, the Employee Retirement Income Security Act of 1974, Title VII of the
Civil Rights Act of 1964, the Age Discrimination in Employment Act (“ADEA”),
the Americans with Disabilities Act, as such Acts have been amended, and all
other forms of employment discrimination whether under federal, state or local
statute or ordinance, wrongful termination, retaliatory discharge, breach of
express, implied, or oral contract, interference with contractual relations,
defamation, intentional infliction of emotional distress and any other tort or
contract claim under common law of any state or for attorneys’ fees, based on
any act, transaction, circumstance or event arising up to and including the
date of Executive’s execution of this Release; provided, however, nothing
herein shall limit or impede Executive’s right to file or pursue an
administrative charge with, or participate in, any investigation before the
Equal Employment Opportunity Commission (“EEOC”), or any similar local, state
or federal agency, or, to file a claim for unemployment compensation benefits,
and/or any causes of action which by law Executive may not legally waive.  Executive agrees, however, that if Executive
or anyone acting on Executive’s behalf, brings any action concerning or related
to any cause of action or liability released in this Agreement, Executive
waives any right to, and will not accept, any payments, monies, damages, or
other relief, awarded in connection therewith.

 

2.                                       Executive acknowledges: 
(a) that Executive has been advised in writing hereby to consult
with an attorney before signing this Release, and (b) that Executive has
had at least twenty-one (21) days after receipt of this information and Release
to consider whether to accept or reject this Release.  Executive understands that Executive may sign
this Release prior to the end of such twenty-one (21) day period, but is not
required to do so.  In addition,
Executive has seven (7) days after Executive signs this Release to revoke
it.  Such revocation must be in writing
and delivered either by hand or mailed and postmarked within the seven (7) day
revocation period. If sent by mail, it is requested that it be sent by
certified mail, return receipt requested to the Company, in care of the office
of the General Counsel.  If Executive
revokes this Release as provided herein, it shall be null and void.  If Executive does not revoke 

 

17

 

this Release within seven (7) days
after signing it, this Release shall become enforceable and effective on the
eighth (8th) day after the Executive signs this Release (“Effective Date”).

 

3.                                       Executive and the Companies agree that neither this Release
nor the performance hereunder constitutes an admission by either the Company or
the Partnership of any violation of any federal, state or local law,
regulation, or common law, or any breach of any contract or any other
wrongdoing of any type.

 

4.                                       This Release shall be construed and enforced pursuant to the
laws of the State of Illinois as to substance and procedure, including all
questions of conflicts of laws.

 

5.                                       This Release constitutes the entire agreement between the
parties concerning the subject matter hereof and supersedes all prior and
contemporaneous agreements, if any, between the parties relating to the subject
matter thereof; provided that this Release does not apply to: (a) any
claims under employee benefit plans subject to the Employee Retirement Income
Security Act of 1974 (“ERISA”) in accordance with the terms of the applicable
employee benefit plan, or any option agreement or other agreement pursuant to
which Executive may exercise rights after termination of employment to acquire
stock or other equity of the Company or the Partnership, (b) any claim
under or based on a breach of this Release or Sections 4, 5, 8, or 9 of the
Employment Agreement after the date that Executive signs this release; (c) rights
or claims that may arise under the Age Discrimination in Employment Act or
otherwise after the date that Executive signs this Release; or (d) any
right to indemnification or directors and officers liability insurance coverage
to with the Executive is otherwise entitled in accordance with Executive’s
Employment Agreement.

 

6.                                       EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS FULLY READ AND
FULLY UNDERSTANDS THIS RELEASE; AND THAT EXECUTIVE ENTERED INTO IT FREELY AND
VOLUNTARILY AND WITHOUT COERCION OR PROMISES NOT CONTAINED IN THIS RELEASE.

 

 

	
  EXECUTIVE

  	
   

  
	
   

  	
   

  
	
  Sandeep Mathrani

  	
   

  
	
   

  	
   

  
	
  NEW GGP, INC.

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
  General Counsel

  	
   

  
	
   

  	
   

  
	
  GGP LIMITED PARTNERSHIP

  	
   

  
	
  By: General Growth
  Properties, Inc., its general partner

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
  General Counsel

  	
   

  

 

18

 

ATTACHMENT B

 

TREECO/25 East Limited Partnership

TREECO/Hylan Limited Partnership

Wappingers Associates, L.P.

Portsmouth Associates, L.P.

Masipe Limited Partnership

The New Master Limited Partnership

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