Exhibit
10.2


 


FORM OF STOCK UNIT AWARD AGREEMENT


 


THE MACERICH COMPANY


 


STOCK UNIT AWARD AGREEMENT
2003 EQUITY INCENTIVE PLAN


 


	
  Participant Name:

  	
   

  	
   

  
	
  Soc. Sec. No.:

  	
   

  	
   

  
	
  No. Stock Units:

  	
   

  	
  (1)

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  [ 33 1/3% of the Stock
  Units (as defined below) on each anniversary of the Award Date, beginning
  [first anniversary] and ending [third anniversary].  ]

  
	
   

  	
   

  	
   

  
	
  Award Date:

  	
   

  	
                        ,
  20    

  



 


 


THIS AGREEMENT is
among THE
MACERICH COMPANY, a Maryland corporation (the “Corporation”), THE MACERICH
PARTNERSHIP L.P., a Delaware limited partnership (the “Operating
Partnership”), and the employee named above (the “Participant”), and is
delivered under The Macerich Company 2003 Equity Incentive Plan, which includes
any applicable programs under the Plan (the “Plan”).


 


W
I  T  N
E  S  S
E  T  H


 


WHEREAS, pursuant
to the Plan, the Corporation has granted to the Participant with reference to
services rendered and to be rendered to the Company, effective as of the Award
Date, a stock unit award (the “Stock Unit Award” or “Award”), upon the terms
and conditions set forth herein and in the Plan.


 


NOW THEREFORE, in
consideration of services rendered and to be rendered by the Participant and
the mutual promises made herein and the mutual benefits to be derived therefrom,
the parties agree as follows:


 


1.                                      Defined
Terms.  Capitalized terms used
herein and not otherwise defined herein shall have the meaning assigned to such
terms in the Plan.


 


2.                                      Grant.  Subject to the terms of this Agreement and
the Plan, the Corporation grants to the Participant a Stock Unit Award with
respect to an aggregate number of Stock Units (the “Stock Units”) set forth
above.  The consideration for the shares
issuable with respect to the Stock Units on the terms set forth in this
Agreement includes services and the rights hereunder in an amount not less than
the minimum lawful consideration under Maryland law.


 












(1) Subject to adjustment
under Section 6.2 of the Plan and the terms of this Agreement.


 


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3.                                      Vesting.  The Award shall vest and become
nonforfeitable (subject to Section 6.4 of the Plan), with respect to the
portion of the total number of Stock Units comprising the Award (subject to
adjustment under Section 6.2 of the Plan) on each of the anniversaries of
the Award Date until the Award is fully vested, as reflected in the Vesting
Schedule above, subject to earlier termination or acceleration as provided
herein or in the Plan.


 


4.                                      Continuance
of Employment Required. 
Except as otherwise provided in Sections 8(c) or 9 or pursuant to the
Plan, the Vesting Schedule requires continued service through each
applicable vesting date as a condition to the vesting of the applicable
installment and rights and benefits under this Agreement.  Partial service, even if substantial, during
any vesting period will not entitle the Participant to any proportionate
vesting or avoid or mitigate a termination of rights and benefits upon or
following a termination of employment or service as herein provided in
Section 8 below or under the Plan.


 


5.                                      Dividend
and Voting Rights.


 


(a)                                  Limitations
on Rights Associated with Units. 
The Participant shall have no rights as a stockholder of the Company, no
dividend rights (except as expressly provided in Section 5(b) with respect
to Dividend Equivalent Rights) and no voting rights, with respect to the Stock
Units and any shares of Common Stock underlying or issuable in respect of such
Stock Units until such shares of Common Stock are actually issued to and held
of record by the Participant.  No
adjustments will be made for dividends or other rights of a holder for which
the record date is prior to the date of issuance of the stock certificate.


 


(b)                                  Dividend
Equivalent Rights Distributions. 
As of any applicable dividend or distribution payment date, the
Participant shall receive a cash payment on the dividend payment date in an
amount equal to the amount of the Dividend Equivalent Rights multiplied by the
number of Units in the Account as of the applicable dividend record date.


 


6.                                      Restrictions
on Transfer.  Prior to the time
they vest, neither the Stock Units comprising the Award nor any other rights of
the Participant under this Agreement or the Plan may be transferred, except as
expressly provided in Section 1.8 and 4.1 of the Plan.  No other exceptions have been authorized by
the Committee.


 


7.                                      Timing
and Manner of Distribution with Respect to Stock Units. Any Stock Unit
credited to a Participant’s Stock Unit Account will be distributed in shares of
Common Stock as it vests.  The
Participant or other person entitled under the Plan to receive the shares shall
deliver to the Company any representations or other documents or assurances
required pursuant to Section 6.4 of the Plan.  Pursuant to Section 1.7 of the Plan, fractional share
interests shall be disregarded, but may be accumulated.  The Committee, however, may determine that
cash, securities or other property will be paid or transferred in lieu of
fractional share interests.


 


8.                                      Effect
of Termination of Employment.


 


(a)                                  Forfeiture
after Certain Events.  Except as
provided in Sections 8(c) and 9 hereof, the Participant’s Stock Units shall be
extinguished to the extent such Stock Units have not become vested upon the
date the Participant is no longer employed by the Company for any reason,
whether with or without cause, voluntarily or involuntarily.  If an entity


 


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ceases to be a Subsidiary, such action shall be deemed to be a
termination of employment of all employees of that entity, but the Committee,
in its sole and absolute discretion, may make provision in such circumstances
for accelerated vesting of some or all of the remaining Stock Units held by
such employees, effective immediately prior to such event.


 


(b)                                  Termination
of Stock Units.  If any Stock
Units are extinguished hereunder, such unvested, extinguished Stock Units,
without payment of any consideration by the Company, shall automatically
terminate and the related Stock Unit Account shall be cancelled, without any
other action by the Participant, or the Participant’s Beneficiary or Personal
Representative, as the case may be.


 


(c)                                  Qualified
Termination Upon or Following Change in Control Event.  If the Participant upon or not later than 12
months following a Change in Control Event has a Qualified Termination (as
defined in Section 7.1(gg) of the Plan) or terminates his or her
employment for Good Reason, then any portion of the Award that has not
previously vested shall thereupon vest, subject to the provisions of Sections
6.2(a), 6.2(e), 6.4 and 6.5 of the Plan and Sections 11 and 12 of this
Agreement; provided, however, that in no event shall restrictions on the Stock
Units lapse or the Stock Units vest earlier than six months after the date
hereof.  As used in this Agreement, the
term “Good Reason” means a termination of employment by the Participant for any
one or more of the following reasons, to the extent not remedied by the Company
within a reasonable period of time after receipt by the Company of written
notice from the Participant specifying in reasonable detail such occurrence,
without the Participant’s written consent thereto: (1)  an adverse
and significant change in the Participant’s position, duties, responsibilities
or status with the Company;  (2)  a
change in the Participant’s principal office location to a location farther
away from the Participant’s home which is more than 30 miles from the
Participant’s principal office; 
(3)  the taking of any action by the Company to eliminate
benefit plans without providing substitutes therefor, to materially reduce
benefits thereunder or to substantially diminish the aggregate value of the
incentive awards or other fringe benefits; provided that if neither a surviving
entity nor its parent following a Change in Control Event is a publicly-held
company, the failure to provide stock-based benefits shall not be deemed Good
Reason if benefits of comparable value using recognized valuation methodology
are substituted therefor; and provided further that a reduction or elimination
in the aggregate of not more than 10% in aggregate benefits in connection with
across the board reductions or modifications affecting persons similarly
situated of comparable rank in the Company or a combined organization shall not
constitute Good Reason; 
(4)  any reduction in the Participant’s Base Salary; or
(5)  any material breach by the Company of any written employment or
management continuity agreement with the Participant.  For purposes of the definition of “Good Reason,” the term “Base
Salary” means the annual base rate of compensation payable as salary to the
Participant by the Company as of the Participant’s date of termination, before
deductions or voluntary deferrals authorized by the Participant or required by
law to be withheld from the Participant by the Company, and salary excludes all
other extra pay such as overtime, pensions, severance payments, bonuses, stock
incentives, living or other allowances, and other benefits and perquisites.


 


9.                                      Effect
of Total Disability, Death or Retirement.  If the Participant incurs a Total Disability or dies while
employed by the Company, then any portion of his or her Award that has not
previously vested shall thereupon vest, subject to the provisions of Sections 6.4
and 6.5 of the Plan.  If the
Participant’s employment with the Company terminates as a result


 


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of his or her Retirement, the Committee may, on a case-by-case basis
and in its sole discretion, provide for partial or complete vesting prior to
Retirement of that portion of his or her Award that has not previously vested.


 


10.                               Adjustments
Upon Specified Events.  Upon the
occurrence of certain events relating to the Corporation’s stock contemplated
by Section 6.2 of the Plan, the Committee shall make adjustments as it
deems appropriate in the number and kind of securities or other consideration
that may become payable with respect to the Award.  If any adjustment shall be made under Section 6.2 of the
Plan or a Change in Control Event shall occur and the Stock Unit Award is not
fully vested upon such Event or prior thereto, the amount payable in respect of
the Stock Unit Award may be made payable in the securities or other
consideration (the “Restricted Property”) payable in respect of the Common
Stock.  Such Restricted Property shall
become payable at such times and in such proportion as the Stock Unit Award
vests.  Notwithstanding the foregoing,
to the extent that the Restricted Property includes any cash, the commitment
hereunder shall become an unsecured promise to pay an amount equal to such cash
(with earnings attributable thereto as if such amount had been invested,
pursuant to policies established by the Committee, in interest bearing, FDIC
insured (subject to applicable insurance limits) deposits of a depository
institution selected by the Committee) at such times and in such proportions as
the Stock Unit Award vests. 
Notwithstanding the foregoing, the Stock Unit Award and any Common Stock
payable in respect of the Stock Unit Award shall continue to be subject to such
proportionate and equitable adjustments (if any) under Section 6.2 of the
Plan consistent with the effect of such event on stockholders generally, as the
Committee determines to be necessary or appropriate, in the number, kind and/or
character of shares of Common Stock or other securities, property and/or rights
payable in respect of Stock Units and Stock Unit Accounts credited under the
Plan.  All rights of the Participant hereunder
are subject to those adjustments.


 


11.                               Possible
Early Termination of Award.  As
permitted by Section 6.2(b) of the Plan, and without limiting the
authority of the Committee under other provisions of Section 6.2 of the
Plan or Section 8 of this Agreement, the Committee retains the right to terminate
the Award, to the extent it has not vested, upon a dissolution of the
Corporation or a reorganization event or transaction which the Corporation does
not survive (or does not survive as a public company in respect of its
outstanding common stock).  This
Section 11 is not intended to prevent future vesting of the Award if it
(or a substituted award) remains outstanding following a Change in Control
Event.


 


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12.                               Limitations
on Acceleration and Reduction in Benefits in Event of Tax Limitations.


 


(a)                                  Limitation
on Acceleration. 
Notwithstanding anything contained herein or in the Plan or any other
agreement to the contrary, in no event shall the vesting of any Stock Unit be
accelerated pursuant to Section 6.3 of the Plan or Section 8(c)
hereof to the extent that the Company would be denied a federal income tax
deduction for such vesting or the distribution of shares of Common Stock in
respect of the Award because of Section 280G of the Code and, in such
circumstances, the Stock Units not subject to acceleration will continue to
vest in accordance with and subject to the other provisions hereof.


 


(b)                                  Reduction
in Benefits.  If the Participant
would be entitled to benefits, payments or coverage hereunder and under any
other plan, program or agreement which would constitute “parachute payments,”
then notwithstanding any other provision hereof or of any other existing
agreement to the contrary, the Participant may by written notice to the
Secretary of the Corporation designate the order in which such “parachute
payments” shall be reduced or modified so that the Company is not denied
federal income tax deductions for any “parachute payments” because of
Section 280G of the Code.


 


(c)                                  Determination
of Limitations.  The term
“parachute payments” shall have the meaning set forth in and be determined in
accordance with Section 280G of the Code and regulations issued
thereunder.  All determinations required
by this Section 12, including without limitation the determination of
whether any benefit, payment or coverage would constitute a parachute payment,
the calculation of the value of any parachute payment and the determination of
the extent to which any parachute payment would be nondeductible for federal
income tax purposes because of Section 280G of the Code, shall be made by
an independent accounting firm (other than the Corporation’s outside auditing
firm) having nationally recognized expertise in such matters selected by the
Committee.  Any such determination by such
accounting firm shall be binding on the Corporation, its Subsidiaries and the
Participant.


 


13.                               Tax
Withholding.  Upon payment of
Dividend Equivalent Rights and/or the distribution of shares of Common Stock in
respect of a Participant’s Stock Unit Account, the entity within the Company
last employing the Participant shall have the right at its option to (a)
require the Participant (or the Participant’s Personal Representative or
Beneficiary, as the case may be) to pay or provide for payment in cash of the
amount of any taxes which the Company may be required to withhold with respect
to such payment or distribution or (b) deduct from any amount or property
payable to the Participant the amount of any taxes which the Company may be
required to withhold with respect to such payment or distribution.  In any case where a tax is required to be
withheld in connection with the delivery of shares of Common Stock under this
Agreement, the Committee may permit the Participant to elect, pursuant to such
rules and subject to such conditions as the Committee may establish, to have
the Company reduce the number of shares to be delivered by (or otherwise
reacquire) the appropriate number of shares valued at their then Fair Market
Value, to satisfy such withholding obligation.


 


14.                               Notices.  Any notice to be given under the terms of
this Agreement shall be in writing and addressed to the Corporation at its
principal office located at 401 Wilshire Boulevard, Suite 700, Santa Monica,
California 90401, to the attention of the Corporate


 


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Secretary and to the Participant at the address given beneath the
Participant’s signature hereto, or at such other address as either party may
hereafter designate in writing to the other.


 


15.                               Plan.  The Award and all rights of the Participant
with respect thereto are subject to, and the Participant agrees to be bound by,
all of the terms and conditions of the provisions of the Plan, incorporated
herein by reference, to the extent such provisions are applicable to Awards
granted to Eligible Persons.  The
Participant acknowledges receipt of a copy of the Plan which is made a part
hereof by this reference, and agrees to be bound by the terms thereof.  Unless otherwise expressly provided in other
Sections of this Agreement, provisions of the Plan that confer discretionary
authority on the Committee do not (and shall not be deemed to) create any
rights in the Participant unless such rights are otherwise in the sole
discretion of the Committee specifically so conferred by appropriate action of
the Committee under the Plan after the date hereof.


 


16.                               No Service Commitment by Company.  Nothing contained in this Agreement or the
Plan constitutes an employment or service commitment by the Company, affects the
Participant’s status as an employee at will who is subject to termination
without cause, confers upon the Participant any right to remain employed by the
Company, interferes in any way with the right of the Company at any time to
terminate such employment, or affects the right of the Company to increase or
decrease the Participant’s other compensation or benefits.  Nothing in this Section, however, is
intended to adversely affect any independent contractual right of the
Participant without his or her consent thereto.  Employment for any period of time (including a substantial period
of time) after the Award Date will not entitle the Participant to any
proportionate vesting or avoid or mitigate a termination of rights and benefits
upon or following a termination of employment as provided in Section 3 or
8 above if the express conditions to vesting set forth in such Sections have
not been satisfied.


 


17.                               Limitation
on Participant’s Rights.  Participation
in this Plan  confers no  rights or interests other than as herein
provided.  This Agreement creates only a
contractual obligation on the part of the Company as to amounts payable and
shall not be construed as creating a trust. 
Neither the Plan nor any underlying program, in and of itself, has any
assets.  The Participant shall have only
the rights of a general unsecured creditor of the Company (or applicable
Subsidiary) with respect to amounts credited and benefits payable in cash, if
any, on Stock Unit Account(s), and rights no greater than the right to receive
the Common Stock (or equivalent value) as a general unsecured creditor with
respect to Stock Units, as and when payable thereunder.


 


[  18.                     Other
Agreements.  If any provision of
this Agreement is inconsistent with any provision of the Management Continuity
Agreement dated as of March 15, 2002 between the Corporation and
Participant and as it may be amended from time-to-time (the “MCA”), the
provisions of the MCA shall control.  ]  [  This
provision is to be included only in agreements with Participants subject to the
MCA.  ]


 


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IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first above
written.  By the Participant’s execution
of this Agreement, the Participant agrees to the terms and conditions of this
Agreement and of the Plan.


 


THE MACERICH COMPANY


(a Maryland corporation)


 


 


	
  By

  	
   

  	
   

  
	
   

  	
  Richard A. Bayer

  
	
   

  	
  Executive Vice
  President, General Counsel & Secretary

  



 


 


	
  THE MACERICH PARTNERSHIP, L.P.

  (a Delaware limited partnership)

  
	
   

  
	
  By:

  	
  The Macerich Company

  (its general partner)

  
	
   

  
	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Richard A. Bayer

  	
   

  
	
   

  	
   

  	
  Executive Vice
  President, General Counsel & Secretary

  
	
   

  
	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print
  Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (City,
  State, Zip Code)

  	
   

  
						



 


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CONSENT OF SPOUSE


 


In
consideration of the execution of the foregoing Stock Unit Award Agreement by
The Macerich Company and The Macerich Partnership L.P., I,
                        ,
the spouse of the Participant therein named, do hereby join with my spouse in
executing the foregoing Stock Unit Award Agreement and do hereby agree to be
bound by all of the terms and provisions thereof and of the Plan.


 


	
  Dated: 
                         ,
         .

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature of Spouse

  



 


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