Document:

Exhibit
10.53

 

General
Growth Properties, Inc.

Cash
Value Added Incentive Compensation Plan

 

2009 and
2010 Subplan

 

	
  Purpose:

  	
   

  	
  The
  purpose of this Subplan is to continue to provide incentive compensation to
  Participants in order the ensure optimal employee performance and the
  achievement of certain goals deemed critical in maximizing the value of the
  Company and its assets.

  
	
   

  	
   

  	
   

  
	
  Eligibility:

  	
   

  	
  All
  full time employees of the Employer’s debtor entities, other than leasing
  representatives, will be eligible to participate. Adam Metz and Tom Nolan
  shall not participate during the 2009 Measurement Period (as defined below).

  
	
   

  	
   

  	
   

  
	
  Measurement
  Periods:

  	
   

  	
  The
  Measurement Periods are: (1) January 1, 2009—December 31,
  2009, and (2) January 1, 2010—December 31, 2010 (each, a “Measurement
  Period”).

  
	
   

  	
   

  	
   

  
	
  Performance
  Objectives:

  	
   

  	
  The
  performance objectives are (1) EBITDA for all employees participating in
  the Key Employee Incentive Plan (“KEIP”), (2) Net Operating
  Income for all employees not participating in the KEIP (each, a “Performance
  Objective”) and, (3) if applicable, individual performance.

  
	
   

  	
   

  	
   

  
	
  Net
  Operating Income:

  	
   

  	
  “Net
  Operating Income” means the aggregate operating revenues of the Company’s
  real estate properties and master planned communities less the aggregate property
  and related expenses of such properties and communities (excluding interest,
  depreciation, amortization, reorganization and extraordinary expense and
  impairment charges). In the event of any corporate event or transaction
  (including, but not limited to, an acquisition, disposition, merger,
  consolidation, separation, split up, spin-off, or other like change in
  capital structure) involving the Company, a Subsidiary and/or an Affiliate,
  the Committee may, in its sole discretion, adjust the minimum, target, and
  maximum Net Operating Income Performance Objectives in a manner consistent
  with and reflective of such corporate event or transaction.

  
	
   

  	
   

  	
   

  
	
  Target Net Operating Income:

  	
   

  	
  Target Net Operating Income for the 2009 Measurement Period shall be
  $2.326 billion. Target Net Operating Income for the 2010 Measurement Period
  shall be set by the Committee in the ordinary course following consultation
  with management; provided, however, that, once the Committee
  has set a proposed target, the Company shall provide notice of the proposed
  target and all relevant supporting information to the statutory committee of
  unsecured creditors appointed by the United States Trustee in the Company’s
  jointly administered chapter 11 cases (the “Creditors’ Committee”).

  

 

 

	
   

  	
   

  	
  If
  the Company and the Creditors’ Committee reach an agreement on the target
  within fifteen (15) business days after the date of notice, then such agreed
  target shall be adopted as the target Net Operating Income for 2010 without
  the necessity of further order of the United States Bankruptcy Court for the
  Southern District of New York, the honorable Allan L. Gropper presiding (the
  “Bankruptcy Court”). If, however, the Company and the Creditors’
  Committee are unable to reach an agreement on the proposed target within such
  fifteen (15) day period, then the Company shall seek Bankruptcy Court
  approval of the proposed target.

  
	
   

  	
   

  	
   

  
	
  EBITDA:

  	
   

  	
  “EBITDA”
  means Net Operating Income plus property management revenue less corporate
  overhead (excluding restructuring costs) and capitalized costs.

  
	
   

  	
   

  	
   

  
	
  Target
  EBITDA:

  	
   

  	
  Target
  EBITDA for the 2009 Measurement Period shall be $2.116 billion. Target EBITDA
  for the 2010 Measurement Period shall be set by the Committee in the ordinary
  course following consultation with management; provided, however,
  that, once the Committee has set a proposed target, the Company shall provide
  notice of the proposed target and all relevant supporting information to the
  Creditors’ Committee. If the Company and the Creditors’ Committee reach an
  agreement on the target within fifteen (15) business days following the date
  of notice, then such agreed target will be adopted as the target EBITDA for
  2010 without the necessity of further order of the Bankruptcy Court. If,
  however, the Company and the Creditors’ Committee are unable to reach an
  agreement on the proposed target within such fifteen (15) day period, then
  the Company shall seek Bankruptcy Court approval of the proposed target.

  
	
   

  	
   

  	
   

  
	
  Performance Objective Payout Curve:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Percentage
  of

  Performance Objective

  Achieved

  	
   

  	
  Pool

  Amount

  	
   

  
	
   

  	
   

  	
  Maximum

  	
   

  	
  109%

  	
   

  	
  200% of Target

  	
   

  
	
   

  	
   

  	
  Target

  	
   

  	
  100%

  	
   

  	
  100% of Target

  	
   

  
	
   

  	
   

  	
  Threshold

  	
   

  	
  91%

  	
   

  	
  0% of Target

  	
   

  
	
   

  	
   

  	
  Below
  Threshold

  	
   

  	
  Below 91%

  	
   

  	
  0%
  of Target

  	
   

  
	
   

  	
   

  	
   

  
	
  Aggregate
  Pool:

  	
   

  	
  With
  respect to each Measurement Period, the “Pool” shall be the aggregate
  amount of the Annual Awards distributable to all Participants based upon the
  achievement of the Performance Objectives, which shall be calculated
  independently and in accordance with the tables above. “Annual Award”,
  for any Participant, means the award opportunity established for that
  Participant pursuant to this Subplan. The aggregate amount of the

  

 

 

	
   

  	
   

  	
  Pool
  for the applicable Measurement Period shall, if the Performance Objectives
  are achieved at the target, threshold or maximum levels, equal the sum of
  each Participant’s target, threshold or maximum Annual Award, as the case may
  be.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With
  respect to each Measurement Period, in the event the Performance Objectives
  are between the threshold and target levels, or between the target and
  maximum levels, the aggregate amount of the Pool shall be calculated on a
  straight line interpolation basis between the two applicable levels.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Annual
  Awards may be adjusted during a Measurement Period for changes in
  compensation in the ordinary course. The aggregate Pool amount shall
  (1) exclude Participants who terminate employment during the applicable
  Measurement Period and such Participants will not be eligible to receive an
  Annual Award payment, and (2) include any newly eligible Participants and
  such Participants shall be eligible to receive an Annual Award payment.

  
	
   

  	
   

  	
   

  
	
  Allocation
  of Pool:

  	
   

  	
  The distribution of the aggregate Pool will be as
  follows: (1) (a) those officers of the Company appointed to the
  Company’s executive committee from time to time (including the Chief
  Financial Officer), (the “Executive Officers”), and (b) those
  other managing employees designated by the Company’s Chief Executive Officer
  and Chief Operating Officer (with the Executive Officers, the “First Tier
  Employees”), are paid at the attained EBITDA Performance Objective level,
  unless adjusted by such Chief Executive Officer and/or Chief Operating
  Officer based on individual performance; and (2) all other Participants
  shall be paid their portion of the Pool based on their applicable Performance
  Objective pursuant to administrative procedures approved by the Company’s
  Chief Executive Officer, which may include adjustment of such amount based on
  the Participant’s individual performance.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  aggregate Annual Award payments with respect to each Measurement Period shall
  not exceed the amount of the Pool for such Measurement Period.

  
	
   

  	
   

  	
   

  
	
  Annual
  Awards:

  	
   

  	
  The
  Chief Executive Officer or such delegates as he designates in his sole
  discretion shall determine (1) the eligibility of each employee (other
  than First Tier Employees) to participate in the Plan, (2) the amount of
  the Annual Award for each Participant (other than First Tier Employees),
  (3) the individual performance objectives, if any, applicable to the Participants
  for purposes of determining their Annual Award payments, and (4) the
  adjustment in such Participants’ Annual Award payments based on their
  individual performance, in each case subject to the terms of the Plan and
  this Subplan.

  

 

 

	
  Adjustment of Annual Award Payments:

  	
   

  	
  

  A Participant’s Annual Award payment may not be increased nor decreased by
  more than 50% by reason of the Participant’s individual performance. Further,
  the Annual Award payment to a Participant with an individual performance
  objective shall not exceed in any case 200% of such Participant’s target
  Annual Award.

  
	
   

  	
   

  	
   

  
	
  Timing
  of Payment:

  	
   

  	
  Annual
  Award payments will be paid within three (3) business days after such
  amounts are determined.

  
	
   

  	
   

  	
   

  
	
  Definitions:

  	
   

  	
  All
  capitalized terms used herein shall have the same meaning ascribed to such
  term in the Plan.

  
	
   

  	
   

  	
   

  
	
  Terms
  of the Plan:

  	
   

  	
  The
  terms of the Plan, to the extent not inconsistent with this Subplan, shall
  govern the Annual Awards for 2009 and 2010, provided, however,
  that for purposes of this Subplan the term “Net Operating Income” shall be
  defined herein and not as defined in the Plan, and the Pool shall be
  determined based on Net Operating Income and EBITDA and not on Cash Value
  Added. The terms of the Subplan, to the extent they are inconsistent with the
  terms of the Plan, shall supersede the Plan.Exhibit 10.1

 

AMENDED AND RESTATED
AGREEMENT

 

THIS
AMENDED AND RESTATED AGREEMENT (this “Agreement”), dated as of  February 26, 2010 (the “Effective Date”),
is entered into by and between IAC/InterActiveCorp (“IAC”) and Victor
Kaufman (the “Executive”).

 

WITNESSETH:

 

WHEREAS,
the Executive has invaluable knowledge and expertise regarding the operations
of IAC and its subsidiaries and affiliates (the “IAC Group”);

 

WHEREAS,
due to the Executive’s knowledge and expertise, IAC wishes to have the
cooperation of, and access to, the Executive;

 

WHEREAS,
IAC and the Executive have mutually agreed that the Executive shall serve IAC
on the terms and subject to the conditions hereinafter specified; and

 

WHEREAS,
IAC and the Executive are parties to that certain Agreement, dated as of February
5, 2004 (as amended by Amendment No. 1 thereto, with an effective date as of August
9, 2005, the “Existing Agreement”), and it is the intention of the
parties to further amend and restate the terms of the Existing Agreement as set
forth herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, IAC and the Executive hereby agree as follows:

 

1.                                       Term.  This
Agreement shall commence on the Effective Date and shall continue for a period
of one (1) year.  This Agreement shall
automatically be renewed for successive one-year periods in perpetuity unless
one party hereto provides written notice to the other, at least ninety (90)
days prior to the end of the then current one-year employment period, that it
elects not to extend this Agreement (any such notice, a “Non-Renewal Notice”).  The period beginning on the date hereof and
ending on the first anniversary hereof or, if the Agreement is renewed pursuant
to the prior sentence, the last day of the last one-year renewal period, shall
be referred to hereinafter as the “Term”.

 

2.                                       Duties.  During the
Term, the Executive shall render the services described herein to IAC, on the
terms and conditions set forth in this Agreement.  The Executive’s duties shall consist of
high-level activities consistent with past practice primarily involving major
transactions and oversight of IAC Group Legal, Financial and Mergers &
Acquisitions, participation in Office of the Chairman meetings (in person or
otherwise) and providing advice to the Chairman and Chief Executive
Officer.  Executive shall continue to
serve as Vice-Chairman of IAC during the Term. 
During the Term, Executive shall devote such time, attention and efforts
as shall be necessary to fulfill his duties and responsibilities hereunder (as
reasonably requested or determined by the Chairman of IAC).  IAC acknowledges that Executive also serves
(and currently intends to continue to serve) as Vice Chairman of Expedia, Inc.
(“Expedia”) and Ticketmaster Entertainment Inc. (and any successor
thereto, “Ticketmaster”). 
Executive agrees that the Executive’s duties to the IAC Group shall be
the Executive’s first priority among his business activities.  Neither any of the activities undertaken by
Executive of behalf of Expedia

 

 

nor Ticketmaster,
as and if applicable, shall be deemed competitive with the IAC Group.  In all cases, the remainder of the Executive’s
business time shall be devoted to other personal activities and interests that
are not competitive with the IAC Group. 
During the Term, the Executive’s services shall be performed in person
at IAC’s offices only as necessary or preferable (it being understood that the
Executive shall be permitted to spend at least 50% of his time during the Term
in the Los Angeles metropolitan area).

 

3.                                       [Intentionally Omitted.]

 

4.                                       Base Salary and Annual Bonus. 
During the Term, Executive shall be eligible to receive annual base
salary, annual bonuses, equity awards and other employee benefits to be reasonably
determined by the Compensation and Human Resources Committee of the IAC Board
of Directors following consultation with the Chairman.

 

5.                                       Equity Compensation. 
In consideration for agreeing to provide the services during the Term,
each of the Executive’s options to purchase shares of IAC common stock (“IAC
Options”), IAC restricted stock unit awards (“IAC RSUs”) and any
other equity awards based on IAC common stock that are unvested as of the
Effective Date or that are granted following the Effective Date shall continue
to vest during the Term.  In the event
that the Executive resigns prior to the expiration of the Term due to a
material breach of this Agreement by IAC (or any successor to IAC) that is not
cured by IAC (or its successor) promptly after notice from the Executive (“good
reason”) or Executive is terminated by IAC without cause prior to the
expiration of the Term, then:

 

(i)                                     any IAC Options, IAC RSUs and any other
compensation awards of Executive based on, or in the form of, IAC common stock
equity that are outstanding and unvested at the time of such termination but
which would, but for a termination of employment, have vested during the one
year period following such termination of employment (the “Severance Period”)
shall vest as of the date of such termination of employment; provided, however,
that any outstanding award with a vesting schedule that would, but for a
termination of employment, have resulted in a smaller percentage (or none) of
the award being vested through the Severance Period than if it had vested
annually pro rata over its vesting period shall, for purposes of this
provision, be treated as though it vested annually pro rata over its vesting
period (e.g., if 100 RSUs were granted 2.7 years
prior to the date of termination and vested pro rata on the first five
anniversaries of the grant date and 100 RSUs were granted 1.7 years prior to
the date of termination and vested on the fifth anniversary of the grant date,
then on the date of termination, 20 RSUs from the first award and 40 RSUs from
the second award would vest); and, provided  further, that any
amounts that would vest under this provision but for the fact that outstanding
performance conditions have not been satisfied shall vest only if, and at such
point as, such performance conditions are satisfied; and

 

(ii)                                  any then-vested IAC Options of Executive
(including IAC Options vesting as a result of (i) above) shall remain
exercisable through the date that is eighteen (18) months following the date of
such termination or, if earlier, through the scheduled 

 

2

 

expiration
date of such IAC Options.

 

All
agreements evidencing IAC Options, IAC RSUs and any other equity awards based
on IAC common stock granted to Executive and covered by this Section 4 are
hereby amended to the extent necessary to effectuate the provisions of this Section
4.  In all other respects, the IAC
Options, IAC RSUs and any other equity awards based on IAC common stock granted
to Executive covered in this Section 4 shall continue to be governed in
accordance with their terms. For purposes of this Agreement, “cause” shall have
the meaning set forth in the applicable IAC stock and incentive plan pursuant
to which the IAC Options were granted.

 

In no event shall Executive’s resignation be for “good
reason” unless (x) Executive provides the Company with written notice of
its material breach of this Agreement thereof within thirty (30) days after
Executive has knowledge of the occurrence or existence of the events or
circumstances constituting such material breach, which notice shall
specifically identify the events or circumstances that Executive believes
constitutes Good Reason, (y) the Company fails to correct the events or
circumstances so identified within thirty (30) days after the receipt of such
notice and (z) Executive resigns within ninety (90) days after the date of
delivery of the notice referred to in clause (x) above.

 

6.                                       Breach of Agreement by Executive and
Notice of Non-Renewal.  In the event that the Company
determines that Executive is in breach of the Agreement, he shall be provided
notice and a reasonable opportunity to cure. If the Company delivers a
Non-Renewal Notice to Executive then, provided Executive’s employment hereunder
continues through the expiration date then in effect, effective as of such
expiration date the Company and Executive shall have the same rights and
obligations hereunder as they would if the Company had terminated Executive’s
employment hereunder prior to the end of the Term without cause.

 

7.                                       Miscellaneous.

 

(a)                                  Successors and Assigns. 
This Agreement will be binding upon, inure to the benefit of and be
enforceable by, as applicable, IAC and the Executive and their respective
personal or legal representatives, executors, administrators, successors,
assigns, heirs, distributees and legatees. 
This Agreement is personal in nature and the Executive shall not,
without the written consent of IAC, assign, transfer or delegate this Agreement
or any rights or obligations hereunder.

 

(b)                                 Governing Law.  This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware without
giving effect to such state’s laws and principles regarding the conflict of
laws.

 

(c)                                  Amendment.  No provision
of this Agreement may be amended, modified, waived or discharged unless such
amendment, waiver, modification or discharge is agreed to in writing and such
writing is signed by the Executive and IAC.

 

(d)                                 Notice.  All notices
and other communications under this Agreement shall be in writing and shall be
given by first-class mail, certified or registered with return receipt 

 

3

 

requested or hand
delivery acknowledged in writing by the recipient personally, and shall be
deemed to have been duly given three days after mailing or immediately upon
duly acknowledged hand delivery to the respective persons named below:

 

	
  If
  to IAC:

  	
   

  	
  IAC/InterActiveCorp

  
	
   

  	
   

  	
  555 West 18th Street

  
	
   

  	
   

  	
  New York, NY
  10011

  
	
   

  	
   

  	
  Attention: General
  Counsel

  
	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
  Wachtell,
  Lipton, Rosen & Katz

  
	
   

  	
   

  	
  51 West 52nd Street

  
	
   

  	
   

  	
  New York, New York,
  10019

  
	
   

  	
   

  	
  Attention: Pamela
  Seymon, Esq.

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
  At the most recent address on record for Executive
  at the Company.

  

 

Either party may change such
party’s address for notices by notice duly given pursuant hereto.

 

(e)                                  Headings. The headings of this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

 

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

 

(g)                                 Entire Agreement. 
This Agreement together with the IAC Option agreements dated December 18,
2000, April 25, 2001, December 16, 2001, January 31, 2008 and December 17, 2008
and the IAC RSU agreements dated February 6, 2006, February 17, 2007 and January
31, 2008, each as amended hereby, set forth the entire agreement of the parties
hereto in respect to the subject matter contained herein and supersedes any
prior agreements, promises, covenants, arrangements, and communications.

 

[Remainder of page intentionally left blank]

 

4

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the date first above written.

 

	
   

  	
  IAC/InterActiveCorp

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregg Winiarski

  
	
   

  	
   

  	
  Name: Gregg Winiarski

  
	
   

  	
   

  	
  Title: SVP &
  General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Victor Kaufman

  
	
   

  	
   

  	
  Victor Kaufman

  

 

5

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