Document:

exv4w1

EXHIBIT 4.1

	COMMON STOCK
COMMON STOCKINCORPORATED UNDER THE LAWS OF THE STATE OF MARYLAND
Schottenstein
REALTY TRUST, INC.
SEE REVERSE FOR IMPORTANT NOTICE ON TRANSFER RESTRICTIONS AND OTHER INFORMATION
CUSIP 808040 10 9
This Certifies that is the record holder of
FULLY PAID AND NONASSESSABLE SHARES OF COMMON STOCK, $0.01 PAR VALUE PER SHARE, OF
SCHOTTEKSTBN. REALTY ifN&lTiNC,
(the “Corporation”) transferable on the books of the Coloration by the holder hereof in person
or by duly autiorfeee! attorney on surrender of this CerWteate property endorsed. This Certificate
and She shares represented hereby are issued and shal be held subject to all of the provisions of
(he charter of the Coloration (the “Charter”) and the Bylaws of the Corporation afttaay
ajatfaegfesOfesjiWptoents thereto. This Certificate shall not be wlid unlit eounters&ned and
registered by the Transfer Agent and Registrar. JH
WITNESS the facsimile seal of the Corporation and the facsimile
signatures of its duly authorized officers. Dated:
CHAIRMAN
SECRETARY

 

 

	IMPORTANT NOTICE
The Corporation will furnish to any stockholder, o
n request and without charge, a full statement of the information required by Section
2-211 (b) of the Corporations and Associations Article of the Annotated Code of Maryland
with respect to the designations and any preferences, conversion and other rights, voting
powers, restrictions, limitations as to dividends and other distributions, qualifications,
and terms and conditions of redemption of the stock of each class which the Corporation has
authority to issue and, if the Corporation is authorized to issue any preferred or special
class in series, (i) the differences in the relative rights and preferences between the
shares of each series to the extent set and (ii) the authority of the Board of Directors to
set such rights and preferences of subsequent series. The foregoing summary does not
purport to be complete and is subject to and qualified in its entirety by reference to the
Charter of the Corporation, a copy of which will be sent without charge to each stockholder
who so requests. Such request must be made to the Secretary of the Corporation at its
principal office.
The shares represented by this certificate are subject to restrictions on Beneficial
Ownership and Constructive Ownership and Transfer for the purpose, among others, of the
Corporation’s maintenance of its qualification as a Real Estate Investment Trust under the
Internal Revenue Code of 1986, as amended (the “Code”). Subject to certain further
restrictions and except as expressly provided in the Corporation’s Charter, (i) no Person
may Beneficially Own or Constructively Own shares of the Corporation’s Common Stock in
excess of 9.8 percent (in value or number of shares) of the outstanding shares of Common
Stock of the Corporation unless such Person is an Excepted Holder (in which case the
Excepted Holder Limit shall be applicable); (ii) no Person may Beneficially Own or
Constructively Own shares of Capital Stock of the Corporation in excess of 9.8 percent of
the value of the total outstanding shares of Capital Stock of the Corporation, unless such
Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable);
(ill) no Person may Beneficially Own or Constructively Own Capital Stock that would result
in the Corporation being “closely held” under Section 856(h) of the Code or otherwise cause
the Corporation to fail to qualify as a REIT; and (iv) no Person may Transfer shares of
Capital Stock if such Transfer would result in the Capital Stock of the Corporation being
owned by fewer than 100 Persons. Any Person who Beneficially Owns or Constructively Owns or
attempts to Beneficially Own or Constructively Own shares of Capital Stock which causes or
will cause a Person to Beneficially or Constructively Own shares of Capital Stock in excess
or in violation of the above limitations must immediately notify the Corporation. If any
restriction on transfer or ownership is violated, the shares of Capital Stock in excess or
in violation of the above limitations will be automatically transferred to a Trustee of a
Trust for the benefit of one or more Charitable Beneficiaries. In addition, the Corporation
may redeem shares upon the terms and conditions specified by the Board of Directors in its
sole discretion if the Board of Directors determines that ownership or a Transfer or other
event may violate the restrictions described above. Furthermore, upon the occurrence of
certain events, attempted Transfers in violation of the restrictions described above may be
void ab_ initio. All capitalized terms in this legend have the meanings defined in
the Charter of the Corporation, as the same may be amended from time to time, a copy of
which, including the restrictions on transfer and ownership, will be furnished to each
holder of Capital Stock of the Corpor
ation on request and without charge. Requests for such
a copy may be directed to the Secretary of the Corporation at its principal office.
The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full according to
applicable laws or regulations:
TEN COM as tenants in common UNIF GIFT MIN ACT — .. Custodian
TENENT —  as tenants by the entireties (Cust) (Minor)
JTTEN  —  as joint tenants with right            under Uniform Gifts to Minors
of survivorship and not as            Act
tenants in common (State)
Additional abbreviations may also be used though not in the above list.
For value received, hereby sell, assign and transfer unto
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING ZIP CODE OF ASSIGNEE
Shares
of the common stock represented by the within Certificate, and do hereby irrevocably
constitute and appoint.
Attorney
to transfer the said stock on the books of the within
-named Corporation with full power of
substitution in the premises. Dated:
NOTICE THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND
WITH nuillsc. THE NAME Ag
WRITTEN UPON THE FACE OF THE CERTIFICATE, IN
EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR
ANY CHANGE WHATSOEVER.
SIGNATURE(S) GUARANTEED:
THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE
GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND
LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN
APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT
TO S.E.C. RULE 17Ad-15.
KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, DESTROYED, STOLEN OR MUTILATED, THE
CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT
CERTIFICATE.exv10w3

EXHIBIT 10.3

SCHOTTENSTEIN REALTY TRUST, INC.

2011 INCENTIVE COMPENSATION PLAN

          Schottenstein Realty Trust, Inc., a Maryland corporation, wishes to attract officers,
Directors, key employees, consultants, advisers and other personnel to the Company and its
Subsidiaries and induce officers, Directors, key employees, consultants, advisers and other
personnel to remain with the Company and its Subsidiaries, and encourage them to increase their
efforts to make the Company’s business more successful whether directly or through its
Subsidiaries. In furtherance thereof, the Schottenstein Realty Trust, Inc. 2011 Incentive
Compensation Plan is designed to provide cash and equity-based incentives to Eligible Persons.
Awards under the Plan may be made to Eligible Persons in the form of Options, Stock Appreciation
Rights, Restricted Stock, Phantom Shares, Performance Units, Dividend Equivalent Rights and Other
Equity-Based Awards.

1. DEFINITIONS

          Whenever used herein, the following terms shall have the meanings set forth below:

          “Award,” except where referring to a particular category of grant under the Plan, shall
include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted
Stock, Phantom Shares, Performance Units, Dividend Equivalent Rights and Other Equity-Based Awards
as contemplated herein.

          “Award Agreement” means a written agreement in a form approved by the Committee to be entered
into between the Company and the Grantee as provided in Section 3.

          “Beneficiary” means the person, persons, trust or trusts that have been designated by a
Grantee in his or her most recent written beneficiary designation filed with the Committee to
receive the benefits specified under the Plan upon such Grantee’s death or to which Awards or other
rights are transferred if and to the extent permitted under the Plan and/or the Grantee’s Award
Agreement and the Partnership Agreement, if applicable. If, upon a Grantee’s death, there is no
designated Beneficiary or surviving designated Beneficiary, then the term Beneficiary means the
person, persons, trust or trusts entitled by will or the laws of descent and distribution to
receive such benefits.

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

          “Cause” shall have the meaning specified in the Grantee’s Award Agreement. In the absence of
any definition in the Award Agreement, “Cause” shall have the equivalent meaning or the same
meaning as “cause” or “for cause” set forth in any employment, consulting, or other agreement for
the performance of services between the Grantee and the Company or any Subsidiary or, in the
absence of any such agreement or any such definition in such agreement, such term shall mean (i)
the failure by the Grantee to perform, in a reasonable manner, his or her duties as assigned by the
Company or any Subsidiary, (ii) any violation or breach by the Grantee of his or her employment,
consulting or other similar agreement with the Company or its Subsidiaries, if any, (iii) any
violation or breach by the Grantee of any non-competition, non-solicitation, non-disclosure and/or
other similar agreement with the Company or its Subsidiaries, (iv) any act by the Grantee of
dishonesty or bad faith with respect to the Company or any Subsidiary, (v) use of alcohol, drugs or
other similar substances in a manner that adversely affects the Grantee’s work performance, or (vi)
the commission by the Grantee of any act, misdemeanor, or crime reflecting unfavorably upon the
Grantee or the Company or any Subsidiary.

 

 

          “Change in Control” means, unless otherwise provided in the Grantee’s Award Agreement, the
happening of any of the following:

          (i) any “person”, including a “group” (as such terms are used in Sections 13(d) and 14(d) of
Exchange Act) (but excluding the Company, any entity controlling, controlled by or under common
control with the Company, any trustee, fiduciary or other person or entity holding securities under
any employee benefit plan or trust of the Company or any such entity, and with respect to the
Grantee, the Grantee and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act)
of which the Grantee is a member) is or becomes the “beneficial owner” (as defined in Rule 13(d)(3)
under the Exchange Act), directly or indirectly, of securities of the Company representing 40% or
more of either (A) the combined voting power of the Company’s then outstanding securities or (B)
the then outstanding Shares (in either such case other than as a result of an acquisition of
securities directly from the Company); provided, however, that, in no event shall a Change in
Control be deemed to have occurred upon an Initial Public Offering of Common Stock under the
Securities Act; or

          (ii) any consolidation, merger or statutory share exchange of the Company where the
stockholders of the Company, immediately prior to the consolidation, merger or statutory share
exchange, would not, immediately after the consolidation, merger or statutory share exchange,
beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, shares representing in the aggregate 50% or more of the combined voting power of the
securities of the corporation issuing cash or securities in the consolidation, merger or statutory
share exchange (or of its ultimate parent corporation, if any); or

          (iii) there shall occur (A) any sale, lease, exchange or other transfer (in one transaction or
a series of transactions contemplated or arranged by any party as a single plan) of all or
substantially all of the assets of the Company, other than a sale or disposition by the Company of
all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting

2

 

power of the voting securities of which are owned by “persons” (as defined above) in
substantially the same proportion as their ownership of the Company immediately prior to such sale
or (B) the approval by stockholders of the Company of any plan or proposal for the liquidation or
dissolution of the Company; or

          (iv) the members of the Board at the beginning of any consecutive 24-calendar-month period
(the “Incumbent Directors”) cease for any reason other than due to death to constitute at least a
majority of the members of the Board; provided that any Director whose election, or nomination for
election by the Company’s stockholders, was approved or ratified by a vote of at least a majority
of the members of the Board then still in office who were members of the Board at the beginning of
such 24-calendar-month period, shall be deemed to be an Incumbent Director.

          Notwithstanding the foregoing, any direct or indirect acquisition of the Beneficial Ownership
(as defined in Rule 13(d)(3) of the Exchange Act) of Common Stock by Jay Schottenstein, his spouse
and/or lineal descendants, will not be treated as an acquisition of stock of the Company for
purposes of this definition of “Change in Control”. In addition. no event or condition shall
constitute a Change in Control to the extent that, if it were, an additional tax would be imposed
upon or with respect to any amounts payable pursuant to this Plan under Section 409A of the
Code; provided that, in such a case, the event or condition shall continue to constitute a Change
in Control to the maximum extent possible (e.g., if applicable, in respect of vesting without an
acceleration of distribution) without causing the imposition of such additional tax.

          “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder.

          “Committee” means the compensation committee appointed by the Board and if no compensation
committee has been appointed or then is serving, then Committee shall refer to the Board.

          “Common Stock” means the Company’s common stock, par value $.01 per share, either currently
existing or authorized hereafter.

          “Common Units” means “Common Units”, as defined in the Partnership Agreement.

          “Company” means Schottenstein Realty Trust, Inc., a Maryland corporation.

          “Continuous Service” means the continuous service to the Company and/or its Subsidiaries,
without interruption or termination, in any capacity of an officer, member of the Board, key
employee, consultant or adviser of the Company or its Subsidiaries. An approved leave of absence
shall include sick leave, military leave, or any other authorized personal leave.

3

 

          “Director” means a non-employee director of the Company or its Subsidiaries.

          “Disability” means the Grantee’s inability, or failure, to perform the essential functions of
his or her position, with or without reasonable accommodation, for any period of ninety (90)
consecutive days or one hundred eighty (180) days, whether or not consecutive, in any twelve (12)
month period, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months.

          “Dividend Equivalent Right” means a right awarded under Section 8 of the Plan to receive (or
have credited) the equivalent value of dividends paid on Common Stock.

          “Effective
Date” means March 25, 2011.

          “Eligible Person” means an officer, Director, key employee, consultant or adviser of the
Company or its Subsidiaries or other person expected to provide significant services (of a type
expressly approved by the Committee as covered services for these purposes) to the Company or its
Subsidiaries.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Fair Market Value” per Share as of a particular date means (i) if Shares are then listed on a
national securities exchange or quoted or reported on a national quotation system, the closing
sales price per Share on the exchange or system for the applicable date or, if there are no sales
on such date, for the last preceding date on which there was a sale of Shares on such exchange or
system; (ii) if Shares are not then listed on a national securities exchange or quoted on a
national quotation system but are then traded on an over-the-counter market, the average of the
closing bid and asked prices for the Shares in such over-the-counter market for the date in
question, or, if there are no bid and asked prices on such date, for the last preceding date on
which there was a sale of such Shares in such market; or (iii) if Shares are not then listed on a
national securities exchange, quoted on a national quotation system or traded on an
over-the-counter market, such value as the Committee in its discretion may in good faith determine;
provided that, where the Shares are so listed or traded, the Committee may make such discretionary
determinations where the Shares have not been traded for 10 consecutive trading days.
Notwithstanding the foregoing, with respect to any “stock right” within the meaning of Section 409A
of the Code, Fair Market Value shall not be less than the “fair market value” of the shares of
Common Stock determined in accordance with the final regulations promulgated under Section 409A of
the Code.

          “Grantee” means an Eligible Person to whom Options, Restricted Stock, Phantom Shares,
Performance Units, Dividend Equivalent Rights or Other Equity-Based Awards are granted hereunder.

          “Good Reason” means, unless otherwise provided in the Grantee’s Award Agreement, the
occurrence of any of the following: (i) a material diminution in the Grantee’s base compensation;
(ii) a material diminution in the Grantee’s authority, duties, or responsibilities; (iii) a
material change in the geographic location at which the Grantee must perform services for the
Company or its Subsidiaries; or (iv) any other action or inaction that constitutes a material

4

 

breach by the Company or its Subsidiaries of its obligations with respect to the Grantee’s
employment with the Company or its Subsidiaries. For purposes of this
Plan, Good Reason shall
not be deemed to exist unless the Grantee’s termination of Continuous Service for Good Reason
occurs within six (6) months following the initial existence of one of the conditions specified in
clauses (i) through (iv) above, the Grantee provides the Company with written notice of the
existence of such condition within ninety (90) days after the initial existence of the condition,
and the Company fails to remedy the condition within thirty (30) days after its receipt of such
notice.

          “Initial Public Offering” or “IPO” means the consummation of the first fully underwritten,
firm commitment public offering pursuant to an effective registration statement under the
Securities Act covering the offer and sale by the Company of its equity securities, or such other
event as a result of or following which the Common Stock shall be publicly held.

          “Incentive Stock Option” means an “incentive stock option” within the meaning of Section
422(b) of the Code.

          “LTIP Unit” means an “LTIP Unit” as defined in the Partnership Agreement. An LTIP Unit
granted under this Plan represents the right to receive the benefits, payments or other rights in
respect of an LTIP Unit set forth in the Partnership Agreement, subject to the terms and conditions
of the applicable Award Agreement and the Partnership Agreement.

          “Non-Qualified Stock Option” means an Option which is not an Incentive Stock Option.

          “Option” means the right to purchase, at a price and for the term fixed by the Committee in
accordance with the Plan, and subject to such other limitations and restrictions in the Plan and
the applicable Award Agreement, a number of Shares determined by the Committee.

          “Option Price” means the price per Share, determined by the Board or the Committee, at which
an Option may be exercised.

          “Other Equity-Based Awards” means an equity-based award described in Section 10 hereof.

          “Partnership” means Schottenstein Realty LP, a Delaware limited partnership.

          “Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of
Schottenstein Realty LP, dated as of        , 2011, as it may be amended,
supplemented or restated from time to time in accordance with its terms.

          “Performance Goals” have the meaning set forth in Section 11.

          “Performance Period” means any period designated by the Committee for which Performance
Criteria (as defined in Exhibit A) shall be calculated.

          “Performance Unit” means any grant pursuant to Section 9 hereof of a unit valued by reference
to a designated amount of property (including cash) other than Shares, which value may be paid to
the Grantee by delivery of such property as the Committee shall determine,

5

 

including cash, Shares, other property, or any combination thereof, upon achievement of such
performance goals during the Performance Period as the Committee shall establish at the time of
such grant or thereafter.

          “Phantom Share” means a right, pursuant to the Plan, of the Grantee to payment of the Phantom
Share Value in accordance with Section 7.

          “Phantom Share Value,” per Phantom Share, means the Fair Market Value of a Share or, if so
provided by the Committee, such Fair Market Value to the extent in excess of a base value
established by the Committee at the time of grant (which base value may not be less than the Fair
Market Value of the underlying Shares at the date of grant).

          “Plan” means the Company’s 2011 Incentive Compensation Plan, as set forth herein and as the
same may from time to time be amended.

          “REIT” shall mean a real estate investment trust under Sections 856 through 860 of the Code.

          “REIT Requirements” means the requirements to qualify as a REIT under the Code and the rules
and regulations promulgated thereunder.

          “Restricted Stock” means an award of Shares that are subject to restrictions in accordance
with Section 6 hereunder.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Settlement Date” means the date determined under Section 7.4(c).

          “Shares” means shares of Common Stock of the Company.

          “Stock Appreciation Right” means a right described in Section 5.7.

          “Subsidiary” means any corporation (other than the Company), partnership or other entity of
which at least 50% of the economic interest in the equity or voting power is owned (directly or
indirectly) by the Company.

          “Successor of the Grantee” means the legal representative of the estate of a deceased Grantee
of an Option or the person or persons who shall acquire the right to exercise an Option by bequest
or inheritance or by reason of the death of the Grantee.

          “Termination of Service” means a Grantee’s termination of Continuous Service, as applicable,
with the Company or its Subsidiaries. Cessation of service as an officer, Director, key employee,
consultant, adviser or other personnel shall not be treated as a Termination of Service if the
Grantee continues without interruption to serve thereafter in another one (or more) of such other
capacities. With respect to any Award subject to Section 409A of the Code, Termination of Service
shall be a “separation from service” as interpreted within the meaning of Section 409A of the Code
and Treasury Regulation 1.409A-1(h).

6

 

2. EFFECTIVE DATE AND TERMINATION OF PLAN

          The
effective date of the Plan is March 25, 2011; provided, however, that the Plan shall not become
effective unless and until it is approved by the requisite percentage of the stockholders of the
Company. The Plan shall terminate on, and no Award shall be granted hereunder on or after, the
10-year anniversary of the earlier of the approval of the Plan by (a) the Board or (b) the
stockholders of the Company; provided, that the Board may at any time prior to that date terminate
the Plan.

3. ADMINISTRATION OF PLAN

          (a) The Plan shall be administered by the Committee. The Committee, upon and after such time
as it is covered in Section 16 of the Exchange Act, shall consist of at least two individuals each
of whom shall be a “non-employee director” as defined in Rule 16b-3 as promulgated by the
Securities and Exchange Commission (“Rule 16b-3”) under the Exchange Act and shall, at such
times as the Company is subject to Section 162(m) of the Code (to the extent relief from the
limitation of Section 162(m) of the Code is sought with respect to Awards), qualify as “outside
directors” for purposes of Section 162(m) of the Code; provided that no action taken by the
Committee (including, without limitation, grants) shall be invalidated because any or all of the
members of the Committee fails to satisfy the foregoing requirements of this sentence. The acts of
a majority of the members present at any meeting of the Committee at which a quorum is present, or
acts approved in writing by a majority of the entire Committee, shall be the acts of the Committee
for purposes of the Plan. If and to the extent applicable, no member of the Committee may act as
to matters under the Plan specifically relating to such member. Notwithstanding the other
foregoing provisions of this Section 3(a), any Award under the Plan to a person who is a member of
the Committee shall be made and administered by the Board. If no Committee is designated by the
Board to act for these purposes, the Board shall have the rights and responsibilities of the
Committee hereunder and under the Award Agreements.

          (b) Subject to the provisions of the Plan, the Committee shall in its discretion as reflected
by the terms of the Award Agreements (i) authorize the granting of Awards to Eligible Persons; (ii)
determine the eligibility of an Eligible Person to receive an Award (subject to the individual
participant limitations provided hereunder), as well as determine the number of Shares to be
covered under any Award Agreement, considering the position and responsibilities of the Eligible
Person, the nature and value to the Company of the Eligible Person’s present and potential
contribution to the success of the Company whether directly or through its Subsidiaries and such
other factors as the Committee may deem relevant; (iii) determine the terms, provisions and
conditions of each Award (which may not be inconsistent with the terms of the Plan); (iv) prescribe
the form of instruments evidencing such awards; (v) make recommendations to the Board with respect
to any Award that is subject to Board approval; and (vi) take such other actions as are prescribed
under the Plan, including, without limitation, Section 14 herein.

          (c) The Award Agreement shall contain such other terms, provisions and conditions not
inconsistent herewith as shall be determined by the Committee. In the event that any Award
Agreement or other agreement hereunder provides (without regard to this sentence) for the
obligation of the Company or any Subsidiary thereof to purchase or repurchase Shares from a

7

 

Grantee or any other person, then, notwithstanding the provisions of the Award Agreement or
such other agreement, such obligation shall not apply to the extent that the purchase or repurchase
would not be permitted under governing state law. The Grantee shall take whatever additional
actions and execute whatever additional documents the Committee may in its reasonable judgment deem
necessary or advisable in order to carry out or effect one or more of the obligations or
restrictions imposed on the Grantee pursuant to the express provisions of the Plan and the Award
Agreement.

4. SHARES AND UNITS SUBJECT TO THE PLAN

          4.1 In General.

          (a) Subject to Section 4.2, and subject to adjustments as provided in Section 15, the total
number of Shares subject to Options or Other Equity-Based Awards granted under the Plan, Shares of
Restricted Stock, Phantom Shares and Shares that may be delivered in settlement of Performance
Units, granted under the Plan, in the aggregate, may not exceed Two Million Seven Hundred Fifty Thousand (2,750,000) Shares. Shares distributed under the Plan may be treasury Shares or authorized
but unissued Shares. Any Shares that have been granted as Restricted Stock or that have been
reserved for distribution in payment for Options, Phantom Shares, or Other Equity-Based Awards
(including LTIP Units and Common Units) under Section 10 but are later forfeited or for any other
reason are not payable under the Plan may again be made the subject of Awards under the Plan.
Other Equity-Based Awards that are LTIP Units or Common Units shall reduce the maximum aggregate
number of Shares that may be issued under the Plan on a one-for-one basis, i.e., each such unit
shall be treated as an award of a single Share. Shares into which LTIP Units and Common Units, as
applicable, are converted shall be issued under the Plan but shall not reduce the maximum aggregate
number of Shares that may be issued under the Plan.

          (b) Shares subject to Dividend Equivalent Rights, other than Dividend Equivalent Rights based
directly on the dividends payable with respect to Shares subject to Options or the dividends
payable on a number of Shares corresponding to the number of Phantom Shares or Performance Units
awarded, shall be subject to the limitation of Section 4.1(a). If any Phantom Shares, Dividend
Equivalent Rights or Other Equity-Based Awards under Section 10 are paid out in cash, then,
notwithstanding the first sentence of Section 4.1(a) above, the underlying Shares may again be made
the subject of Awards under the Plan.

          (c) In the event that any Option or other Award granted hereunder is exercised through the
tendering of Shares (either actually or by attestation) or by the withholding of Shares by the
Company, or withholding tax liabilities arising from such Option or other Award are satisfied by
the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the
Company, then only the number of Shares issued net of the Shares tendered or

8

 

withheld shall be counted for purposes of determining the maximum number of Shares available
for grant under the Plan.

          (d) The certificates for Shares or other evidence of ownership issued hereunder may include
any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder
or under the Award Agreement, or as the Committee may otherwise deem appropriate.

          (e) Notwithstanding any provision hereunder, no Award hereunder shall be exercisable or
eligible for settlement if, as a result of either the ability to exercise or settle, or the
exercise or settlement of such Award, the Company would not satisfy the REIT Requirements in any
respect.

          4.2 Options.

          Subject to adjustments pursuant to Section 15, Two Million Seven Hundred Fifty Thousand (2,750,000)
Incentive Stock Options may be granted under the Plan.

5. PROVISIONS APPLICABLE TO STOCK OPTIONS

          5.1 Grant of Option.

          Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by
the terms of the applicable Award Agreement: (a) determine and designate from time to time those
Eligible Persons to whom Options are to be granted and the number of Shares to be optioned to each
Eligible Person; (b) determine whether to grant Options intended to be Incentive Stock Options, or
to grant Non-Qualified Stock Options, or both (to the extent that any Option does not qualify as an
Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option); (c) determine
the time or times when and the manner and condition in which each Option shall be exercisable and
the duration of the exercise period; (d) designate each Option as one intended to be an Incentive
Stock Option or as a Non-Qualified Stock Option; and (e) determine or impose other conditions to
the grant or exercise of Options under the Plan as it may deem appropriate.

          5.2 Option Price.

          The Option Price shall be determined by the Committee on the date the Option is granted and
reflected in the Award Agreement, as the same may be amended from time to time. Any particular
Award Agreement may provide for different Option Prices for specified amounts of Shares subject to
the Option; provided that the Option Price with respect to each Option shall not be less than 100%
of the Fair Market Value of a Share on the day the Option is granted.

9

 

          5.3 Period of Option and Vesting.

          (a) Unless earlier expired, forfeited or otherwise terminated, each Option shall expire in its
entirety upon the 10th anniversary of the date of grant or shall have such other term
(which may be shorter, but not longer, in the case of Incentive Stock Options) as is set forth in
the applicable Award Agreement (except that, in the case of an individual described in Section
422(b)(6) of the Code (relating to certain 10% owners) who is granted an Incentive Stock Option,
the term of such Option shall be no more than five years from the date of grant). The Option shall
also expire, be forfeited and terminate at such times and in such circumstances as otherwise
provided hereunder or under the Award Agreement.

          (b) Each Option, to the extent that the Grantee thereof has not had a Termination of Service
and the Option has not otherwise lapsed, expired, terminated or been forfeited, shall first become
exercisable (vested) according to the terms and conditions set forth in the Award Agreement, as
determined by the Committee at the time of grant. Unless otherwise provided in the Award Agreement
or herein, no Option (or portion thereof) shall ever be exercisable if the Grantee has a
Termination of Service before the time at which such Option (or portion thereof) would otherwise
have become exercisable, and any Option that would otherwise become exercisable after such
Termination of Service shall not become exercisable and shall be forfeited upon such termination.
Notwithstanding the foregoing provisions of this Section 5.3(b), Options exercisable pursuant to
the schedule set forth by the Committee at the time of grant may be fully or more rapidly
exercisable or otherwise vested at any time in the discretion of the Committee. Upon and after the
death of an Grantee, such Grantee’s Options, if and to the extent otherwise exercisable hereunder
or under the applicable Award Agreement after the Grantee’s death, may be exercised by the
Successors of the Grantee.

          5.4 Exercisability Upon and After Termination of Service of Grantee.

          (a) Subject to provisions of the Award Agreement, in the event a Grantee of an Option has a
Termination of Service other than by the Company or its Subsidiaries for Cause or other than by
reason of death or Disability, no exercise of a vested Option may occur after the expiration of the
three-month period to follow the termination, or if earlier, the expiration of the term of the
Option as provided under Section 5.3(a); provided that, if the Grantee should die after the
Termination of Service, such termination being for a reason other than Disability or Cause, but
while the Option is still in effect, the Option (if and to the extent otherwise exercisable by the
Grantee at the time of death) may be exercised until the earlier of (i) one year from the date of
the Termination of Service of the Grantee, or (ii) the date on which the term of the Option expires
in accordance with Section 5.3(a).

          (b) Subject to provisions of the Award Agreement, in the event the Grantee has a Termination
of Service on account of death or Disability, the Option to the extent vested may be exercised
until the earlier of (i) one year from the date of the Termination of Service of the Grantee, or
(ii) the date on which the term of the Option expires in accordance with Section 5.3.

          (c) Notwithstanding any other provision hereof, unless otherwise provided in the Award
Agreement, if the Grantee has a Termination of Service by the Company or a Subsidiary for Cause,
the Grantee’s Options, to the extent then unexercised, shall thereupon cease to be

10

 

exercisable and shall be forfeited forthwith (whether or not the Options were exercisable
previously).

          (d) Except as may otherwise be expressly set forth in this Section 5, and except as may
otherwise be expressly provided under the Award Agreement, no provision of this Section 5 is
intended to or shall permit the exercise of the Option to the extent the Option was not exercisable
before or upon Termination of Service.

          5.5 Exercise of Options.

          (a) Subject to vesting, restrictions on exercisability and other restrictions provided for
hereunder or otherwise imposed in accordance herewith, an Option may be exercised, and payment in
full of the aggregate Option Price made, by a Grantee only by written notice (in the form
prescribed by the Committee) to the Company or its designee specifying the number of Shares to be
purchased.

          (b) Without limiting the scope of the Committee’s discretion hereunder, the Committee may
impose such other restrictions on the exercise of Options (whether or not in the nature of the
foregoing restrictions) as it may deem necessary or appropriate.

          5.6 Payment.

          (a) The aggregate Option Price shall be paid in full upon the exercise of the Option. Payment
must be made by one of the following methods:

          (i) a certified or bank cashier’s check;

          (ii) subject to Section 12, the proceeds of a Company loan program or third-party sale
program or a notice acceptable to the Committee given as consideration under such a program,
in each case if permitted by the Committee in its discretion, if such a program has been
established and the Grantee is eligible to participate therein;

          (iii) if approved by the Committee in its discretion, Shares of previously owned Common
Stock having an aggregate Fair Market Value on the date of exercise equal to the aggregate
Option Price;

          (iv) other than as prohibited under Section 13(k) of the Exchange Act, if approved by
the Committee in its discretion, through the written election of the Grantee to have Shares
withheld by the Company from the Shares otherwise to be received, with such withheld Shares
having an aggregate Fair Market Value on the date of exercise equal to the aggregate Option
Price; or

          (b) by any combination of such methods of payment or any other method acceptable to the
Committee in its discretion.

          (c) Except in the case of Options exercised by certified or bank cashier’s check, the
Committee may impose limitations and prohibitions on the exercise of Options as it deems
appropriate, including, without limitation, any limitation or prohibition designed to avoid

11

 

accounting consequences which may result from the use of Common Stock as payment upon exercise
of an Option.

          (d) The Committee shall provide in the Award Agreement the extent (if any) to which an Option
may be exercised with respect to any fractional Share, including whether any fractional Shares
resulting from a Grantee’s exercise may be paid in cash.

          5.7 Stock Appreciation Rights.

          The Committee, in its discretion, may also grant a Stock Appreciation Right by permitting the
Grantee to elect to receive (taking into account, without limitation, the application of Section
409A of the Code, as the Committee may deem appropriate), upon the exercise of an Option, Shares
with an aggregate Fair Market Value equal to the excess of the Fair Market Value of the Shares with
respect to which the Option is being exercised over the aggregate Option Price, as determined as of
the day the Option is exercised; provided that, after consideration of possible accounting issues,
the Committee may permit a Stock Appreciation Right to be settled in a combination of Shares and
cash, or exclusively in cash, with an aggregate Fair Market Value (or, to the extent of payment in
cash, in an amount) equal to such excess. Without limiting the Committee’s discretion hereunder,
the Committee is expressly authorized to cause the grant of a Stock Appreciation Right (a) in
tandem with an otherwise exercisable underlying Option, by having the method of exercise under this
Section 5.7 apply in addition to other methods of exercise, as to all or a portion of any
particular Award under this Section 5, or (b) as a free-standing right, by having the method of
exercise under this Section 5.7 be the exclusive method of exercise.

          5.8 Exercise by Successors.

          An Option may be exercised, and payment in full of the aggregate Option Price made, by the
Successors of the Grantee only by written notice (as may be prescribed by the Committee) to the
Company specifying the number of Shares to be purchased. Such notice shall state that the
aggregate Option Price will be paid in full, or that the Option will be exercised as otherwise
provided hereunder, in the discretion of the Company or the Committee, if and as applicable.

          5.9 Nontransferability of Option.

          Except if otherwise provided in the applicable Award Agreement, each Option granted under the
Plan shall be nontransferable by the Grantee except by will or the laws of descent and distribution
of the state wherein the Grantee is domiciled at the time of his death; provided, however, that the
Committee may (but need not) permit other transfers, where the Committee concludes that such
transferability (a) does not result in accelerated U.S. federal income taxation, (b) does not cause
any Option intended to be an Incentive Stock Option to fail to be described in Section 422(b) of
the Code, (c) complies with applicable law, including securities laws, and (d) is otherwise
appropriate and desirable.

          5.10 Certain Incentive Stock Option Provisions.

          (a) In no event may an Incentive Stock Option be granted other than to employees of the
Company or a “subsidiary corporation” (as defined in Section 424(f) of the Code) or a

12

 

“parent corporation” (as defined in Section 424(e) of the Code) with respect to the Company.
The aggregate Fair Market Value, determined as of the date an Option is granted, of the Common
Stock for which any Grantee may be awarded Incentive Stock Options which are first exercisable by
the Grantee during any calendar year under the Plan (or any other stock option plan required to be
taken into account under Section 422(d) of the Code) shall not exceed $100,000. To the extent the
$100,000 limit referred to in the preceding sentence is exceeded, an Option will be treated as a
Non-Qualified Stock Option.

          (b) If Shares acquired upon exercise of an Incentive Stock Option are disposed of in a
disqualifying disposition within the meaning of Section 422 of the Code by an Grantee prior to the
expiration of either two years from the date of grant of such Option or one year from the transfer
of Shares to the Grantee pursuant to the exercise of such Option, or in any other disqualifying
disposition within the meaning of Section 422 of the Code, such Grantee shall notify the Company in
writing as soon as practicable thereafter of the date and terms of such disposition and, if the
Company or any Subsidiary thereupon has a tax-withholding obligation, shall pay to the Company or
any Subsidiary an amount equal to any withholding tax the Company or any Subsidiary is required to
pay as a result of the disqualifying disposition.

          (c) Without limiting the application of Section 5.2, the Option Price with respect to each
Incentive Stock Option shall not be less than 100%, or 110% in the case of an individual described
in Section 422(b)(6) of the Code (relating to certain 10% owners), of the Fair Market Value of a
Share on the day the Option is granted. In the case of an individual described in Section
422(b)(6) of the Code who is granted an Incentive Stock Option, the term of such Option shall be no
more than five years from the date of grant.

6. PROVISIONS APPLICABLE TO RESTRICTED STOCK

          6.1 Grant of Restricted Stock.

          (a) In connection with the grant of Restricted Stock, the Committee shall establish one or
more vesting periods with respect to the shares of Restricted Stock granted, the length of which
shall be determined in the discretion of the Committee and set forth in the applicable Award
Agreement, and/or whether the vesting of the Restricted Stock shall be conditioned upon the
satisfaction of Performance Goals pursuant to Section 11 or other conditions. Subject to the
provisions of this Section 6, the applicable Award Agreement and the other provisions of the Plan,
restrictions on Restricted Stock shall lapse if the Grantee satisfies all applicable employment or
other service requirements through the end of the applicable vesting period. The Committee also
may authorize the granting of Shares that are immediately vested, but otherwise subject to the
provisions of the Plan applicable to Restricted Stock.

          (b) Subject to the other terms of the Plan, the Committee may, in its discretion as reflected
by the terms of the applicable Award Agreement: (i) authorize the granting of Restricted Stock to
Eligible Persons; (ii) provide a specified purchase price for the Restricted Stock (whether or not
the payment of a purchase price is required by any state law applicable to the Company); (iii)
determine the restrictions applicable to Restricted Stock and (iv) determine or impose other
conditions, including any applicable Performance Goals, to the grant of Restricted Stock under the
Plan as it may deem appropriate.

13

 

          6.2 Certificates.

          (a) In the discretion of the Committee, each Grantee of Restricted Stock may be issued a stock
certificate in respect of Shares of Restricted Stock awarded under the Plan. Each such certificate
shall be registered in the name of the Grantee. A “book entry” (by computerized or manual entry)
shall be made in the records of the Company to evidence an award of Restricted Stock where no
certificate is issued in the name of the Grantee. Each certificate, if any, shall be registered in
the name of the Grantee and may include any legend which the Committee deems appropriate to reflect
any restrictions on transfer hereunder or under the applicable Award Agreement, or as the Committee
may otherwise deem appropriate, and, without limiting the generality of the foregoing, shall bear a
legend referring to the terms, conditions, and restrictions applicable to such Award, substantially
in the following form:

THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE
SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE SCHOTTENSTEIN REALTY
TRUST, INC. 2011 INCENTIVE COMPENSATION PLAN AND AN AWARD AGREEMENT ENTERED INTO BETWEEN THE
REGISTERED OWNER AND SCHOTTENSTEIN REALTY TRUST, INC. COPIES OF SUCH PLAN AND AWARD
AGREEMENT ARE ON FILE IN THE OFFICES OF SCHOTTENSTEIN REALTY TRUST, INC. AT 4300 EAST FIFTH
AVENUE, COLUMBUS, OHIO 43219.

          (b) The Committee shall require that any stock certificates evidencing such Shares be held in
custody by the Company or its designee until the restrictions thereon shall have lapsed, and may in
its discretion require that, as a condition of any Award of Restricted Stock, the Grantee shall
have delivered to the Company or its designee a stock power, endorsed in blank, relating to the
stock covered by such Restricted Stock Award. If and when such restrictions so lapse, any stock
certificates shall be delivered by the Company to the Grantee or his or her designee as provided in
Section 6.3 (and the stock power shall be so delivered or shall be discarded).

          6.3 Restrictions and Conditions.

          Unless otherwise provided by the Committee in an Award Agreement, the Shares of Restricted
Stock awarded pursuant to the Plan shall be subject to the following restrictions and conditions:

          (a) Subject to the provisions of the Plan and the applicable Award Agreements, during a period
commencing with the date of such Award and ending on the date the period of forfeiture with respect
to such Shares of Restricted Stock lapses, the Grantee shall not be permitted voluntarily or
involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or assign Shares of
Restricted Stock awarded under the Plan (or have such Shares attached or garnished). Subject to
the provisions of the applicable Award Agreements and clauses (c) and (d) below, the period of
forfeiture with respect to Shares of Restricted Stock granted hereunder shall lapse as provided in
the applicable Award Agreement. Notwithstanding the foregoing, unless otherwise expressly provided
by the Committee, the period of forfeiture with respect to such Shares of Restricted Stock shall
only lapse as to whole Shares.

14

 

          (b) Except as provided in the foregoing clause (a), below in this clause (b), in Section 15,
or as otherwise provided in the applicable Award Agreement, the Grantee shall have, in respect of
the Shares of Restricted Stock, all of the rights of a stockholder of the Company, including the
right to vote the Shares, and, except as provided below, the right to receive any cash dividends;
provided, that, if provided in an Award Agreement, cash dividends on such Shares shall be (i) held
by the Company (unsegregated as a part of its general assets) until the period of forfeiture lapses
(and forfeited if the underlying Shares are forfeited), and paid over to the Grantee (without
interest) as soon as practicable after such period lapses (if not forfeited), or (ii) treated as
may otherwise be provided in an Award Agreement. Certificates for Shares (not subject to
restrictions hereunder) shall be delivered to the Grantee or his or her designee (or where
permitted, transferee) promptly after, and only after, the period of forfeiture shall lapse without
forfeiture in respect of such Shares of Restricted Stock.

          (c) Except as otherwise provided in the Grantee’s employment, severance or other similar
agreement with the Company or any Subsidiary or Award Agreement, and subject to clause (d) below,
if the Grantee has a Termination of Service by the Company or its Subsidiaries for Cause, or by the
Grantee for any reason other than his or her death or Disability, during the applicable period of
forfeiture, then (i) all Shares still subject to restriction shall thereupon, and with no further
action, be forfeited by the Grantee, and (ii) the Company shall pay to the Grantee as soon as
practicable (and in no event more than 30 days) after such termination an amount, if any, equal to
the lesser of (A) the amount paid by the Grantee, if any, for such forfeited Restricted Stock as
contemplated by Section 6.1, and (B) the Fair Market Value on the date of termination of the
forfeited Restricted Stock.

          (d) If and only to the extent provided in the Grantee’s employment, severance or other similar
agreement with the Company or any Subsidiary or Award Agreement, in the event the Grantee has a
Termination of Service on account of his or her death or Disability, the Grantee has a Termination
of Service for Good Reason, the Grantee has a Termination of Service by the Company or its
Subsidiaries for any reason other than Cause, or in the event of a Change in Control (regardless of
whether a termination follows thereafter), during the applicable period of forfeiture, then
restrictions under the Plan will immediately lapse on all Restricted Stock granted to the
applicable Grantee.

7. PROVISIONS APPLICABLE TO PHANTOM SHARES

          7.1 Grant of Phantom Shares.

          Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by
the terms of the applicable Award Agreement: (i) authorize the granting of Phantom Shares to
Eligible Persons and (ii) determine or impose other conditions to the grant of Phantom Shares under
the Plan as it may deem appropriate.

          7.2 Term.

          The Committee may provide in an Award Agreement that any particular Phantom Share shall expire
at the end of a specified term.

15

 

          7.3 Vesting.

          (a) Subject to the provisions of an applicable Award Agreement and Section 7.3(b), Phantom
Shares shall vest upon satisfaction of those conditions as provided in the applicable Award
Agreement, which conditions may include, without limitation, the satisfaction of service
requirements and/or Performance Goals.

          (b) Unless otherwise determined by the Committee in an applicable Award Agreement, the Phantom
Shares granted pursuant to the Plan shall be subject to the following vesting conditions:

          (i) Subject to the provisions of the Award Agreement and clause (ii) below, if the
Grantee has a Termination of Service by the Company and its Subsidiaries for Cause, all of
the Grantee’s Phantom Shares (whether or not such Phantom Shares are otherwise vested) shall
thereupon, and with no further action, be forfeited and cease to be outstanding, and no
payments shall be made with respect to such forfeited Phantom Shares.

          (ii) If an only to the extent provided in the provisions of the Grantee’s employment,
severance or other similar agreement with the Company or any Subsidiary or Award Agreement,
in the event the Grantee has a Termination of Service on account of his or her death or
Disability, the Grantee has a Termination of Service for Good Reason, the Grantee has a
Termination of Service by the Company or its Subsidiaries for any reason other than Cause,
or in the event of a Change in Control (regardless of whether a termination follows
thereafter), all outstanding Phantom Shares granted to such Grantee shall become immediately
vested.

          (iii) Unless otherwise provided in this Section 7.3 or in the provisions of the
Grantee’s employment, severance or other similar agreement with the Company or any
Subsidiary or Award Agreement, in the event that a Grantee has a Termination of Service, any
and all of the Grantee’s Phantom Shares which have not vested prior to or as of such
termination shall thereupon, and with no further action, be forfeited and cease to be
outstanding and the Grantee’s vested Phantom Shares shall be settled as set forth in Section
7.4.

          7.4 Settlement of Phantom Shares.

          (a) Except as otherwise provided by the Committee, each vested and outstanding Phantom Share
shall be settled by the transfer to the Grantee of one Share; provided, however, that, the
Committee at the time of grant (or, in the appropriate case, as determined by the Committee,
thereafter) may provide that, after consideration of possible accounting issues, a Phantom Share
may be settled (i) in cash at the applicable Phantom Share Value, (ii) in cash or by transfer of
Shares as elected by the Grantee in accordance with procedures established by the Committee (if
any) or (iii) in cash or by transfer of Shares as elected by the Company.

          (b) Payment (whether of cash or Shares) in respect of Phantom Shares shall be settled with a
single-sum payment or distribution by the Company; provided that, with respect to Phantom Shares of
a Grantee which have a common Settlement Date, the Committee (taking into

16

 

account, without limitation, Section 409A of the Code, as the Committee may deem appropriate)
may permit the Grantee to elect in accordance with procedures established by the Committee to
receive installment payments over a period not to exceed 10 years. If the Grantee’s Phantom Shares
are paid out in installment payments, such installment payments shall be treated as a series of
separate payments for purposes of Section 409A of the Code.

          (c)

          (i) Unless otherwise provided in the applicable Award Agreement, the “Settlement Date”
with respect to a Phantom Share is the first day of the month to follow the date on which
the Phantom Share vests; provided, however, that a Grantee may elect at or prior to grant,
if permitted by and in accordance with procedures to be established by the Committee, that
such Settlement Date will be deferred as elected by the Grantee to the first day of the
month to follow the Grantee’s Termination of Service, or such other time as may be permitted
by the Committee. Notwithstanding the prior sentence, all initial elections to defer the
Settlement Date shall be made in accordance with the requirements of Section 409A of the
Code. In addition, unless otherwise determined by the Committee, any subsequent elections
under this Section 7.4(c)(i) must, except as may otherwise be permitted under the rules
applicable under Section 409A of the Code, (A) not be effective for at least one year after
they are made, or, in the case of payments to commence at a specific time, be made at least
one year before the first scheduled payment and (B) defer the commencement of distributions
(and each affected distribution) for at least five years.

          (ii) Notwithstanding Section 7.4(c)(i), if and to the extent permitted under the rules
applicable under Section 409A of the Code, the Committee may provide that distributions of
Phantom Shares can be elected at any time in those cases in which the Phantom Share Value is
determined by reference to the portion of the Fair Market Value that is in excess of a base
value, rather than by reference to unreduced Fair Market Value.

          (iii) Notwithstanding the foregoing, the Settlement Date, if not earlier pursuant to
this Section 7.4(c), is the date of the Grantee’s death.

          (d) Notwithstanding the other provisions of this Section 7, taking into account, without
limitation, the application of Section 409A of the Code, as the Committee may deem appropriate, in
the event of a Change in Control, the Settlement Date shall be the date of such Change in Control
and all amounts due and vested (including any amounts that become vested as a result of the Change
in Control) with respect to Phantom Shares to a Grantee hereunder shall be paid as soon as
practicable (but in no event more than 30 days) after such Change in Control, unless such Grantee
elects otherwise in accordance with procedures established by the Committee.

          (e) Notwithstanding any other provision of the Plan, taking into account, without limitation,
the application of Section 409A of the Code, as the Committee may deem appropriate, a Grantee may
receive any amounts to be paid in installments as provided in Section 7.4(b) or deferred by the
Grantee as provided in Section 7.4(c) in the event of an “Unforeseeable Emergency.” For these
purposes, an “Unforeseeable Emergency” means an event that would

17

 

cause a severe financial hardship to the Grantee resulting from (i) a sudden and unexpected
illness or accident of the Grantee or “dependent,” as defined in Section 152(a) of the Code, of the
Grantee, (ii) loss of the Grantee’s property due to casualty, or (iii) other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control of the Grantee.
The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of
each case, but, in any case, payment may not be made to the extent that such hardship is or may be
relieved:

          (A) through reimbursement or compensation by insurance or otherwise,

          (B) by liquidation of the Grantee’s assets, to the extent the liquidation of such
assets would not itself cause severe financial hardship, or

          (C) by future cessation of the making of additional deferrals with respect to Phantom
Shares.

Without limitation, the need to send a Grantee’s child to college or the desire to purchase a home
shall not constitute an Unforeseeable Emergency. Distributions of amounts because of an
Unforeseeable Emergency shall be permitted to the extent reasonably needed to satisfy the emergency
need.

          7.5 Other Phantom Share Provisions.

          (a) Except as permitted by the Committee, rights to payments with respect to Phantom Shares
granted under the Plan shall not be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, garnishment, levy, execution, or other legal
or equitable process, either voluntary or involuntary; and any attempt to anticipate, alienate,
sell, transfer, assign, pledge, encumber, attach or garnish, or levy or execute on any right to
payments or other benefits payable hereunder, shall be void.

          (b) A Grantee may designate in writing, on forms to be prescribed by the Committee, a
Beneficiary or Beneficiaries to receive any payments payable after his or her death and may amend
or revoke such designation at any time. If a Grantee with a vested Phantom Share dies, such
Phantom Share shall be settled and the Phantom Share Value in respect of such Phantom Shares paid,
and any payments deferred pursuant to an election under Section 7.4(c) shall be accelerated and
paid, as soon as practicable (but no later than 60 days) after the date of death to such Grantee’s
Beneficiary or estate, as applicable.

          (c) The Committee may, taking into account, without limitation, the application of Section
409A of the Code, as the Committee may deem appropriate, establish a program under which
distributions with respect to Phantom Shares may be deferred for periods in addition to those
otherwise contemplated by the foregoing provisions of this Section 7. Such program may include,
without limitation, provisions for the crediting of earnings and losses on unpaid amounts, and, if
permitted by the Committee, provisions under which Grantees may select from among hypothetical
investment alternatives for such deferred amounts in accordance with procedures established by the
Committee.

18

 

          (d) Notwithstanding any other provision of this Section 7, any fractional Phantom Share will
be paid out in cash at the Phantom Share Value as of the Settlement Date.

          (e) No Phantom Share shall be construed to give any Grantee any rights with respect to Shares
or any ownership interest in the Company. Except as may be provided in accordance with Section 8,
no provision of the Plan shall be interpreted to confer upon any Grantee of a Phantom Share any
voting, dividend or derivative or other similar rights with respect to any Phantom Share.

          7.6 Claims Procedures.

          (a) To the extent that the Plan is determined by the Committee to be subject to the Employee
Retirement Income Security Act of 1974, as amended, the Grantee, or his Beneficiary hereunder or
authorized representative, may file a claim for payments with respect to Phantom Shares under the
Plan by written communication to the Committee or its designee. A claim is not considered filed
until such communication is actually received. Within 90 days (or, if special circumstances
require an extension of time for processing, 180 days, in which case notice of such special
circumstances should be provided within the initial 90-day period) after the filing of the claim,
the Committee will either:

          (i) approve the claim and take appropriate steps for satisfaction of the claim; or

          (ii) if the claim is wholly or partially denied, advise the claimant of such denial by
furnishing to him a written notice of such denial setting forth (A) the specific reason or
reasons for the denial; (B) specific reference to pertinent provisions of the Plan on which
the denial is based and, if the denial is based in whole or in part on any rule of
construction or interpretation adopted by the Committee, a reference to such rule, a copy of
which shall be provided to the claimant; (C) a description of any additional material or
information necessary for the claimant to perfect the claim and an explanation of the
reasons why such material or information is necessary; and (D) a reference to this Section
7.6 as the provision setting forth the claims procedure under the Plan.

          (b) The claimant may request a review of any denial of his claim by written application to the
Committee within 60 days after receipt of the notice of denial of such claim. Within 60 days (or,
if special circumstances require an extension of time for processing, 120 days, in which case
notice of such special circumstances should be provided within the initial 60-day period) after
receipt of written application for review, the Committee will provide the claimant with its
decision in writing, including, if the claimant’s claim is not approved, specific reasons for the
decision and specific references to the Plan provisions on which the decision is based.

8. PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS

          8.1 Grant of Dividend Equivalent Rights.

          Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by
the terms of the Award Agreements, authorize the granting of Dividend Equivalent Rights to

19

 

Eligible Persons based on the regular cash dividends declared on Common Stock, to be credited
as of the dividend payment dates, during the period between the date an Award is granted, and the
date such Award is exercised, vests, is settled or expires, as determined by the Committee. Such
Dividend Equivalent Rights shall be converted to cash or additional Shares by such formula and at
such time and subject to such limitation as may be determined by the Committee. Dividend
Equivalent Rights granted with respect to Options shall be payable regardless of whether such
Option is exercised. If a Dividend Equivalent Right is granted in respect of another Award
hereunder, then, unless otherwise stated in the Award Agreement, or, in the appropriate case, as
determined by the Committee, in no event shall the Dividend Equivalent Right be in effect for a
period beyond the time during which the applicable portion of the underlying Award is in effect.

          8.2 Certain Terms.

          (a) The term of a Dividend Equivalent Right shall be set by the Committee in its discretion.

          (b) Unless otherwise determined by the Committee, except as contemplated by Section 8.4, a
Dividend Equivalent Right is exercisable or payable only while the Grantee is an Eligible Person.

          (c) Payment of the amount determined in accordance with Section 8.1 shall be in cash, in
Common Stock or a combination of both, as determined by the Committee.

          (d) The Committee may impose such employment-related conditions on the grant of a Dividend
Equivalent Right as it deems appropriate in its discretion.

          8.3 Other Types of Dividend Equivalent Rights.

          The Committee may establish a program under which Dividend Equivalent Rights of a type whether
or not described in the foregoing provisions of this Section 8 may be granted to Grantees. For
example, and without limitation, the Committee may grant a Dividend Equivalent Right in respect of
each Share subject to an Option or with respect to a Phantom Share, which right would consist of
the right (subject to Section 8.4) to receive a cash payment in an amount equal to the dividend
distributions paid on a Share from time to time.

          8.4 Deferral.

          The Committee may establish a program or programs (taking into account, without limitation,
the possible application of Section 409A of the Code, as the Committee may deem appropriate) under
which Grantees (a) will have Phantom Shares credited, subject to the terms of Sections 7.4 and 7.5
as though directly applicable with respect thereto, upon the granting of Dividend Equivalent
Rights, or (b) will have payments with respect to Dividend Equivalent Rights deferred. In the case
of the foregoing clause (b), such program may include, without limitation, provisions for the
crediting of earnings and losses on unpaid amounts, and, if permitted by the Committee, provisions
under which Grantees may select from among hypothetical investment alternatives for such deferred
amounts in accordance with procedures established by the Committee.

20

 

9. PROVISIONS APPLICABLE TO PERFORMANCE UNITS

          9.1 Grant of Performance Units

          The Committee is authorized to grant Performance Units to any Eligible Person payable in cash,
Shares, other property, or any combination thereof, on terms and conditions established by the
Committee, subject to the provisions of Section 11 if and to the extent that the Committee shall,
in its sole discretion, determine that an Award of Performance Units shall be subject to those
provisions.

          9.2 Certain Terms

          The Performance Goals to be achieved during any Performance Period and the length of the
Performance Period shall be determined by the Committee upon the grant of each Performance Unit.

          9.3 Settlement of Performance Units

          Except as provided in Section 15(d) or as may be provided in the Grantee’s employment,
severance or other similar agreement with the Company or any Subsidiary or Award Agreement,
Performance Units shall be distributed only after the end of the relevant Performance Period. The
Performance Goals to be achieved for each Performance Period shall be conclusively determined by
the Committee and may be based upon the criteria set forth in Exhibit A hereto, or in the
case of an Award that the Committee determines shall not be subject to Section 11 hereof, any other
criteria that the Committee, in its sole discretion, shall determine should be used for that
purpose. The amount of the Award to be distributed shall be conclusively determined by the
Committee. Performance Units may be paid in a lump sum or in installments following the close of
the Performance Period or, in accordance with procedures established by the Committee and taking
into account the requirements of Section 409A of the Code, on a deferred basis.

10. OTHER EQUITY-BASED AWARDS

          10.1 Grant of Other Equity-Based Awards

          The Committee shall have the right to grant other Awards based upon the Common Stock having
such terms and conditions as the Committee may determine, including, without limitation, an Award
granted or denominated in Shares or units of Shares based upon certain conditions or denominated in
other equity interests, including, without limitation, equity interests of the Partnership, such as
LTIP units or Common Units, that are convertible or exchangeable into Shares; provided, however,
that the grant of LTIP Units or Common Units must satisfy the requirements of the Partnership
Agreement as in effect on the date of grant.

          10.2 Settlement of Other Equity-Based Awards

          Other Equity-Based Awards valued in whole or in part by reference to, or otherwise based on,
Common Stock shall be payable or settled in Shares, cash or a combination of Shares and cash, as
determined by the Committee in its discretion. Other Equity-Based Awards denominated as equity
interests other than Shares may be paid or settled in shares or units of

21

 

such equity interests or cash or a combination of both as determined by the Committee in its
discretion.

          10.3 Equity Holder Rights

          Except as may be provided in accordance with Section 8, a Grantee, as a result of receiving an
Other Equity-Based Award, shall not have any rights as an equity interest holder of the entity to
which such Other Equity-Based Award is denominated until, and then only to the extent that, the
Other Equity-Based Award is earned and settled in shares or units of such equity interest.

11. PERFORMANCE GOALS

          The Committee, in its discretion, may, in the case of any Awards that are potentially subject
to the deduction limitations imposed by Section 162(m) of the Code but that the Committee intends
to qualify for an exception from the limitation imposed by Section 162(m) of the Code at any time
that Section 162(m) applies to the Company, or otherwise (“Performance-Based Awards”), (a)
establish one or more Performance Goals (“Performance Goals”) as a precondition to the
issuance or vesting of Awards, and (b) provide, in connection with the establishment of the
Performance Goals, for predetermined Awards to those Grantees (who continue to meet all applicable
eligibility requirements) with respect to whom the applicable Performance Goals are satisfied. The
Performance Goals shall be based upon the criteria set forth in Exhibit A hereto which is
hereby incorporated herein by reference as though set forth in full. The Performance Goals shall
be established in a timely fashion such that they are considered pre-established for purposes of
the rules governing performance-based compensation under Section 162(m) of the Code at any time
that Section 162(m) applies to the Company, and compliance with such rules is sought. Prior to the
award or vesting, as applicable, of affected Awards hereunder, the Committee shall have certified
that any applicable Performance Goals, and other material terms of the Award, have been satisfied.
Performance Goals which do not satisfy the foregoing provisions of this Section 11 may be
established by the Committee with respect to Awards not intended to qualify for an exception from
the limitations imposed by Section 162(m) of the Code.

12. TAX WITHHOLDING

          12.1 In General.

          The Company, or a properly designated paying agent, shall be entitled to withhold from any
payments or deemed payments any amount of tax withholding determined by the Committee to be
required by law. Without limiting the generality of the foregoing, the Committee may, in its
discretion, require the Grantee to pay to the Company at such time as the Committee determines the
amount that the Committee deems necessary to satisfy the Company’s obligation to withhold federal,
state or local income or other taxes incurred by reason of (a) the exercise of any Option, (b) the
lapsing of any restrictions applicable to any Restricted Stock, (c) the receipt of a distribution
in respect of Phantom Shares, Performance Units or Dividend Equivalent Rights or (d) any other
applicable income-recognition event (for example, an election under Section 83(b) of the Code).

22

 

          12.2 Share Withholding.

          (a) Upon exercise of an Option, the Grantee may, if approved by the Committee in its
discretion, make a written election to have Shares then issued withheld by the Company from the
Shares otherwise to be received, or to deliver previously owned Shares, in order to satisfy the
liability for such withholding taxes. In the event that the Grantee makes, and the Committee
permits, such an election, the number of Shares so withheld or delivered shall have an aggregate
Fair Market Value on the date of exercise sufficient to satisfy the applicable withholding taxes.
Where the exercise of an Option does not give rise to an obligation by the Company to withhold
federal, state or local income or other taxes on the date of exercise, but may give rise to such an
obligation in the future, the Committee may, in its discretion, make such arrangements and impose
such requirements as it deems necessary or appropriate.

          (b) Upon lapsing of restrictions on Restricted Stock (or other income-recognition event), the
Grantee may, if approved by the Committee in its discretion, make a written election to have Shares
withheld by the Company from the Shares otherwise to be released from restriction, or to deliver
previously owned whole Shares (not subject to restrictions hereunder) (for which such holder has
good title, free and clear of all liens and encumbrances), in order to satisfy the liability for
such withholding taxes. In the event that the Grantee makes, and the Committee permits, such an
election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value
on the date of exercise sufficient to satisfy the applicable withholding taxes.

          (c) Upon the making of a distribution in respect of Phantom Shares, Performance Units or
Dividend Equivalent Rights, the Grantee may, if approved by the Committee in its discretion, make a
written election to have amounts (which may include Shares) withheld by the Company from the
distribution otherwise to be made, or to deliver previously owned whole Shares (not subject to
restrictions hereunder) (for which such holder has good title, free and clear of all liens and
encumbrances), in order to satisfy the liability for such withholding taxes. In the event that the
Grantee makes, and the Committee permits, such an election, any Shares so withheld or delivered
shall have an aggregate Fair Market Value on the date of exercise or settlement, as applicable,
sufficient to satisfy the applicable withholding taxes.

          12.3 Withholding Required.

          Notwithstanding anything contained in the Plan or the Award Agreement to the contrary, the
Grantee’s satisfaction of any tax-withholding requirements imposed by the Committee shall be a
condition precedent to the Company’s obligation as may otherwise be provided hereunder to provide
Shares to the Grantee and to the release of any restrictions as may otherwise be provided
hereunder, as applicable; and the applicable Option, Restricted Stock, Phantom Shares, Performance
Units or Dividend Equivalent Rights shall be forfeited upon the failure of the Grantee to satisfy
such requirements with respect to, as applicable, (a) the exercise of the Option, (b) the lapsing
of restrictions on the Restricted Stock (or other income-recognition event) or (c) distributions in
respect of any Phantom Share, Performance Unit or Dividend Equivalent Right.

23

 

13. REGULATIONS AND APPROVALS

          (a) The obligation of the Company to sell Shares with respect to an Award granted under the
Plan shall be subject to all applicable laws, rules and regulations, including all applicable
federal and state securities laws, and the obtaining of all such approvals by governmental agencies
as may be deemed necessary or appropriate by the Committee.

          (b) The Committee may make such changes to the Plan as may be necessary or appropriate to
comply with the rules and regulations of any government authority or to obtain tax benefits
applicable to an Award.

          (c) Each grant of Options, Restricted Stock, Phantom Shares (or issuance of Shares in respect
thereof), Performance Units (or issuance of Shares in respect thereof), Dividend Equivalent Rights
(or issuance of Shares in respect thereof), or Other Equity-Based Awards (or issuance of Shares in
respect thereof), is subject to the requirement that, if at any time the Committee determines, in
its discretion, that the listing, registration or qualification of Shares issuable pursuant to the
Plan is required by any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the issuance of Options, Shares of Restricted Stock, Phantom Shares, Performance
Units, Dividend Equivalent Rights, Other Equity-Based Awards or other Shares, no payment shall be
made, or Phantom Shares, or Shares issued or grant of Restricted Stock or other Award made, in
whole or in part, unless listing, registration, qualification, consent or approval has been
effected or obtained free of any conditions in a manner acceptable to the Committee.

          (d) In the event that the disposition of stock acquired pursuant to the Plan is not covered by
a then current registration statement under the Securities Act, and is not otherwise exempt from
such registration, such Shares shall be restricted against transfer to the extent required under
the Securities Act (and an appropriate legend to that effect shall be placed on stock certificates
evidencing such Shares), and the Committee may require any individual receiving Shares pursuant to
the Plan, as a condition precedent to receipt of such Shares, to represent to the Company in
writing that such Shares are acquired for investment only and not with a view to distribution and
that such Shares will be disposed of only if registered for sale under the Securities Act or if
there is an available exemption for such disposition.

          (e) Notwithstanding any other provision of the Plan, the Company shall not be required to take
or permit any action under the Plan or any Award Agreement which, in the good-faith determination
of the Company, would result in a material risk of a violation by the Company of Section 13(k) of
the Exchange Act.

14. INTERPRETATION AND AMENDMENTS; OTHER RULES

          The Committee may make such rules and regulations and establish such procedures for the
administration of the Plan as it deems appropriate. Without limiting the generality of the
foregoing, the Committee may (a) determine the extent, if any, to which Options, Phantom Shares,
Performance Units, or Shares (whether or not Shares of Restricted Stock), Dividend Equivalent
Rights or Other Equity-Based Awards shall be forfeited (whether or not such

24

 

forfeiture is expressly contemplated hereunder); (b) interpret the Plan and the Award
Agreements hereunder, with such interpretations to be conclusive and binding on all persons and
otherwise accorded the maximum deference permitted by law, provided that the Committee’s
interpretation shall not be entitled to deference on and after a Change in Control except to the
extent that such interpretations are made exclusively by members of the Committee who are
individuals who served as Committee members before the Change in Control; and (c) take any other
actions and make any other determinations or decisions that it deems necessary or appropriate in
connection with the Plan or the administration or interpretation thereof. In the event of any
dispute or disagreement as to the interpretation of the Plan or of any rule, regulation or
procedure, or as to any question, right or obligation arising from or related to the Plan, the
decision of the Committee, except as provided in clause (b) of the foregoing sentence, shall be
final and binding upon all persons. Unless otherwise expressly provided hereunder, the Committee,
with respect to any grant, may exercise its discretion hereunder at the time of the Award or
thereafter. Notwithstanding any provision in the Plan to the contrary, no Option or Stock
Appreciation Right (granted pursuant to Section 5.7) issued under the Plan may be amended to reduce
the Option Price or the exercise price of such Stock Appreciation Right below the Option Price or
exercise price as of the date the Option or Stock Appreciation Right was granted. The Board may
amend the Plan as it shall deem advisable, except that no amendment may adversely affect a Grantee
with respect to an Award previously granted without such Grantee’s written consent unless such
amendments are required in order to comply with applicable laws; provided, however, that the Plan
may not be amended without stockholder approval in any case in which amendment in the absence of
stockholder approval would cause the Plan to fail to comply with any applicable legal requirement
or applicable exchange or similar rule.

15. CHANGES IN CAPITAL STRUCTURE

          (a) If (i) the Company or its Subsidiaries shall at any time be involved in a merger,
consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or
substantially all of the assets or stock of the Company or its Subsidiaries or a transaction
similar thereto, (ii) any stock dividend, stock split, reverse stock split, stock combination,
reclassification, recapitalization or other similar change in the capital structure of the Company
or its Subsidiaries, or any distribution to holders of Common Stock other than cash dividends,
shall occur or (iii) any other event shall occur which in the judgment of the Committee
necessitates action by way of adjusting the terms of the outstanding Awards, then, subject to the
requirements of Section 409A of the Code:

     (A) the maximum aggregate number and kind of Shares which may be made subject to
Options and Dividend Equivalent Rights under the Plan, the maximum aggregate number and kind
of Shares of Restricted Stock that may be granted under the Plan, and the maximum aggregate
number of Phantom Shares, Performance Units and Other Equity-Based Awards which may be
granted under the Plan may be appropriately adjusted by the Committee in its discretion; and

     (B) the Committee shall take any such action as shall be necessary to maintain each
Grantees’ rights hereunder (including under their Award Agreements) with respect to Options,
Phantom Shares, Performance Units and Dividend Equivalent Rights and, as appropriate, Other
Equity-Based Awards under the Plan, so that they are substantially

25

 

proportionate to the rights existing in such Options, Phantom Shares, Performance Units
and Dividend Equivalent Rights and Other Equity-Based Awards under the Plan prior to such
event, including, without limitation, adjustments in (1) the number of Options, Phantom
Shares, Performance Units and Dividend Equivalent Rights and Other Equity-Based Awards under
the Plan granted, (2) the number and kind of shares or other property to be distributed in
respect of Options, Phantom Shares, Performance Units and Dividend Equivalent Rights and
Other Equity-Based Awards under the Plan, as applicable, (3) the Option Price and Phantom
Share Value, and (4) performance-based criteria established in connection with Awards (to
the extent consistent with Section 162(m) of the Code, as applicable); provided that, in the
discretion of the Committee, the foregoing clause (4) may also be applied in the case of any
event relating to a Subsidiary if the event would have been covered under this Section 15(a)
had the event related to the Company.

To the extent that such action shall include an increase or decrease in the number of Shares (or
units of other property then available) subject to all outstanding Awards, the number of Shares (or
units) available under Section 4 shall be increased or decreased, as the case may be,
proportionately, as may be determined by the Committee in its discretion.

          (b) Any Shares or other securities distributed to a Grantee with respect to Restricted Stock
or otherwise issued in substitution of Restricted Stock shall be subject to the restrictions and
requirements imposed by Section 6, including depositing the certificates therefor with the Company
together with a stock power and bearing a legend as provided in Section 6.2(a).

          (c) If the Company shall be consolidated or merged with another corporation or other entity,
each Grantee who has received Restricted Stock that is then subject to restrictions imposed by
Section 6.3(a) may be required to deposit with the successor corporation the certificates, if any,
for the stock or securities or the other property that the Grantee is entitled to receive by reason
of ownership of Restricted Stock in a manner consistent with Section 6.2(b), and such stock,
securities or other property shall become subject to the restrictions and requirements imposed by
Section 6.3(a), and the certificates therefor or other evidence thereof shall bear a legend similar
in form and substance to the legend set forth in Section 6.2(a).

          (d) If a Change in Control shall occur, then the Committee, as constituted immediately before
the Change in Control, may make such adjustments as it, in its discretion, determines are necessary
or appropriate in light of the Change in Control, provided that the Committee determines that such
adjustments do not have an adverse economic impact on the Grantee as determined at the time of the
adjustments. The Committee’s authority shall include, but not be limited to, having the discretion
to provide that upon a Change in Control, (i) all or a portion of any outstanding Options and Stock
Appreciation Rights shall become fully exercisable, (ii) all or a portion of any outstanding Awards
shall become vested and transferable, and all or a portion of any outstanding Performance Units and
incentive awards will be earned, (iii) all or a portion of any outstanding Awards may be
cancelled in exchange for a payment of cash, or all or a portion of any outstanding Awards may be
substituted for Awards that will substantially preserve the otherwise applicable terms of any
affected Awards previously granted under the Plan, or (iv) all or a portion of any outstanding Awards that are not vested (and are not required to vest
as a result of the Change in Control, pursuant to the terms of any Award Agreement or other
agreement with the Company or any Subsidiary) may be cancelled without any payment.

26

 

          (e) The judgment of the Committee with respect to any matter referred to in this Section 15
shall be conclusive and binding upon each Grantee without the need for any amendment to the Plan.

16. MISCELLANEOUS

          16.1 No Rights to Employment or Other Service.

          Nothing in the Plan or in any grant made pursuant to the Plan shall confer on any individual
any right to continue in the employ or other service of the Company or its Subsidiaries or
interfere in any way with the right of the Company or its Subsidiaries and its stockholders to
terminate the individual’s employment or other service at any time.

          16.2 No Fiduciary Relationship.

          Nothing contained in the Plan (including without limitation Sections 7.5(c) and 8.4), and no
action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a
trust of any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their
officers or the Committee, on the one hand, and the Grantee, the Company, its Subsidiaries or any
other person or entity, on the other.

          16.3 Compliance with Section 409A of the Code.

          (a) Any Award Agreement issued under the Plan that is subject to Section 409A of the Code may
include such additional terms and conditions as the Committee determines are required to satisfy
the requirements of Section 409A of the Code.

          (b) With respect to any Award issued under the Plan that is subject to Section 409A of the
Code, and with respect to which a payment or distribution is to be made upon a Termination of
Service, if the Grantee is determined by the Company to be a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code and any of the Company’s stock is publicly traded
on an established securities market or otherwise, such payment or distribution, to the extent it
would constitute a payment of nonqualified deferred compensation within the meaning of Section 409A
of the Code that is ineligible for an exemption from treatment as such, may not be made before the
date which is six months after the date of Termination of Service (to the extent required under
Section 409A of the Code). Any payments or distributions delayed in accordance with the prior
sentence shall be paid to the Grantee on the first day of the seventh month following the Grantee’s
Termination of Service.

          (c) To the extent compliance with Section 409A of the Code is intended, the Board and the
Committee shall administer the Plan, and exercise authority and discretion under the Plan,
consistent with the requirements of Section 409A of the Code or any exemption thereto.

          (d) The Company makes no representation or warranty and shall have no liability to any Grantee
or any other person if any provisions of this Plan or any Award Agreement issued pursuant hereto
are determined to constitute deferred compensation subject to Section 409A of the Code but do not
satisfy an exemption from, or the conditions of, such Section.

27

 

          16.4 No Fund Created.

          Any and all payments hereunder to any Grantee under the Plan shall be made from the general
funds of the Company (or, if applicable, a participating Subsidiary), no special or separate fund
shall be established or other segregation of assets made to assure such payments, and the Phantom
Shares (including for purposes of this Section 16.4 any accounts established to facilitate the
implementation of Section 7.4(c)) and any other similar devices issued hereunder to account for
Plan obligations do not constitute Common Stock and shall not be treated as (or as giving rise to)
property or as a trust fund of any kind; provided, however, that the Company (or a participating
Subsidiary) may establish a mere bookkeeping reserve to meet its obligations hereunder or a trust
or other funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes
or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The
obligations of the Company (or, if applicable, a participating Subsidiary) under the Plan are
unsecured and constitute a mere promise by the Company (or, if applicable, a participating
Subsidiary) to make benefit payments in the future and, to the extent that any person acquires a
right to receive payments under the Plan from the Company (or, if applicable, a participating
Subsidiary), such right shall be no greater than the right of a general unsecured creditor of the
Company (or, if applicable, a participating Subsidiary). Without limiting the foregoing, Phantom
Shares and any other similar devices issued hereunder to account for Plan obligations are solely a
device for the measurement and determination of the amounts to be paid to a Grantee under the Plan,
and each Grantee’s right in the Phantom Shares and any such other devices is limited to the right
to receive payment, if any, as may herein be provided.

          16.5 Notices.

          All notices under the Plan shall be in writing, and if to the Company, shall be delivered to
the Committee or mailed to its principal office, addressed to the attention of the Committee; and
if to the Grantee, shall be delivered personally, sent by facsimile transmission or mailed to the
Grantee at the address appearing in the records of the Company. Such addresses may be changed at
any time by written notice to the other party given in accordance with this Section 16.5.

          16.6 Indemnification.

          The Company shall indemnify the members of the Board and the members of the Committee in
connection with the performance of such person’s duties, responsibilities and obligations under the
Plan, to the maximum extent permitted by Maryland law.

          16.7 Captions.

          The use of captions in this Plan is for convenience. The captions are not intended to provide
substantive rights.

          16.8 Governing Law.

          THIS PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF OHIO
WITHOUT REGARD TO ANY PRINCIPLES

28

 

OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER
THAN THE STATE OF OHIO.

          16.9 Gender Neutral.

          Wherever used herein, a pronoun in the masculine gender shall be considered as including the
feminine gender unless the context clearly indicates otherwise.

29

 

EXHIBIT A

PERFORMANCE CRITERIA

          Awards intended to qualify as “performance-based” compensation under Section 162(m) of the
Code, may be payable upon the attainment of objective Performance Goals that are established by the
Committee and relate to one or more Performance Criteria, in each case on specified date or over
any period, up to 10 years, as determined by the Committee. Performance Criteria for
Performance-Based Compensation that the Committee determines shall be subject to Section 11 hereof
shall be based on the achievement of the specified levels of performance under one or more of the
measures set out below relative to the performance of one or more other corporations or indices.

          “Performance Criteria” includes the following business criteria (or any combination thereof)
with respect to one or more of the Company, any participating company or any division or operating
unit thereof:

          (i) pre-tax income,

          (ii) after-tax income,

          (iii) net income (meaning net income as reflected in the Company’s financial reports for the
applicable period, on an aggregate, diluted and/or per share basis),

          (iv) operating income,

          (v) cash flow,

          (vi) earnings per share,

          (vii) return on equity,

          (viii) return on invested capital or assets,

          (ix) cash and/or funds available for distribution,

          (x) appreciation in the fair market value of the Common Stock,

          (xi) return on investment,

          (xii) total return to stockholders (meaning the aggregate Common Stock price appreciation and
dividends paid (assuming full reinvestment of dividends) during the applicable period),

          (xiii) net earnings growth,

          (xiv) stock appreciation (meaning an increase in the price or value of the Common Stock after
the date of grant of an award and during the applicable period),

Exhibit A-1

 

          (xv) related return ratios,

          (xvi) increase in revenues,

          (xvii) net earnings,

          (xviii) changes (or the absence of changes) in the per share or aggregate market price of the
Company’s Common Stock,

          (xix) number of securities sold,

          (xx) earnings before any one or more of the following items: interest, taxes, depreciation or
amortization for the applicable period, as reflected in the Company’s financial reports for the
applicable period,

          (xxi) total revenue growth (meaning the increase in total revenues after the date of grant of
an award and during the applicable period, as reflected in the Company’s financial reports for the
applicable period),

          (xxii) the Company’s published ranking against its peer group of real estate investment trusts
based on total stockholder return,

          (xxiii) funds from operations, and

          (xxiv) adjusted or modified funds from operations.

          Performance Goals may be absolute amounts or percentages of amounts, may be relative to the
performance of other companies or of indexes or may be based upon absolute values or values
determined on a per-share basis.

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

          To the extent permitted by Section 162(m) of the Code, unless the Committee provides otherwise
at the time of establishing the Performance Goals, for each fiscal year of the Company, there shall
be objectively determinable adjustments, as determined in accordance with GAAP, to any of the
Performance Criteria described above for one or more of the items of gain, loss, profit or expense:
(A) determined to be extraordinary or unusual in nature or infrequent in occurrence, (B) related to
the disposal of a segment of a business, (C) related to a change in accounting principle under
GAAP, (D) related to discontinued operations that do not qualify as a segment of a business under
GAAP, and (E) attributable to the business operations of any entity acquired by the Company during
the fiscal year.

Exhibit A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]