Document:

Exhibit 10.2

 

THE MACERICH COMPANY

 

AMENDED AND RESTATED CASH
BONUS/RESTRICTED

STOCK AND LTIP UNIT AWARD PROGRAM

 

UNDER THE 2003 EQUITY INCENTIVE
PLAN

 

(JULY 26, 2007)

 

 

THE MACERICH COMPANY

 

AMENDED AND RESTATED CASH BONUS/RESTRICTED STOCK AND LTIP UNIT

AWARD PROGRAM UNDER THE 2003 EQUITY INCENTIVE PLAN

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  TITLE, PURPOSE AND AUTHORIZED
  SHARES

  	
  1

  
	
  ARTICLE II

  	
  DEFINITIONS

  	
  1

  
	
  ARTICLE III

  	
  PARTICIPATION

  	
  3

  
	
  ARTICLE IV

  	
  RESTRICTED STOCK, LTIP UNIT OR CASH
  ELECTIONS

  	
  3

  
	
  ARTICLE V

  	
  RESTRICTED STOCK AWARDS

  	
  4

  
	
  ARTICLE VI

  	
  LTIP UNIT AWARDS

  	
  4

  
	
  ARTICLE VII

  	
  ADMINISTRATION

  	
  5

  
	
  ARTICLE VIII

  	
  MISCELLANEOUS

  	
  6

  
	
  EXHIBIT A

  	
  ELECTION FORM

  	
  8

  

 

 

THE MACERICH COMPANY

 

AMENDED AND RESTATED CASH BONUS/RESTRICTED STOCK
AND

LTIP UNIT AWARD PROGRAM UNDER THE 2003 EQUITY INCENTIVE PLAN

 

ARTICLE I

TITLE, PURPOSE AND AUTHORIZED SHARES

 

1.1          TITLE

 

This
Program shall be known as The Macerich Company Amended and Restated Cash
Bonus/Restricted Stock and LTIP Unit Award Program under the 2003 Equity
Incentive Plan.

 

1.2          PURPOSE

 

The
purpose of this Program is to promote the success of the Company and the
interest of its stockholders by providing an additional means to attract,
motivate, retain and reward key employees, including officers, by providing an
opportunity to convert cash bonus opportunities into Restricted Stock and/or
LTIP Units, enhancing compensation deferral opportunities and offering
additional incentives to increase stock ownership in the Company.

 

1.3          SHARES

 

The
aggregate number of shares of Common Stock issuable under this Program shall be
charged against and subject to the limits on the available shares under the
Plan.

 

ARTICLE II

DEFINITIONS

 

Whenever
the following terms are used in this Program they shall have the meaning
specified below unless the context clearly indicates to the contrary. Capitalized
terms not otherwise defined shall have the meaning assigned to such terms in
the Plan.

 

2.1          BONUS ELECTION DATE
means, for a Cash Bonus with respect to a Year, the September 30 of such Year. Effective
in 2008, the Bonus Election Date shall be changed to June 30 of each Year.

 

2.2          BONUS PAYMENT DATE
means the date designated by the  Committee between
January 1 and March 15 of each Year on which the Cash Bonus with respect to the
prior Year is or would otherwise be received by the Participant.

 

2.3          CASH BONUS means an
incentive award granted by the Committee, whether or not under the terms of the
Plan, that but for elections under this Program would be paid solely in cash.

 

 

2.4          COMMON STOCK means shares
of the Company’s common stock, par value $0.01 per share, either currently
existing or authorized hereafter.

 

2.5          COMMON UNITS means
the common partnership units of the Partnership.

 

2.6          CONVERSION AMOUNT
means the dollar equivalent of the Cash Bonus elected by the Participant to be
converted to a Restricted Stock and/or LTIP Unit Award under this Program.

 

2.7          EFFECTIVE DATE means,
with respect to this amended and restated Program, July 26, 2007.

 

2.8          ELIGIBLE EMPLOYEE
means, with respect to any Year, any officer or key employee of the Company or
a Subsidiary who has been designated by the Committee as potentially eligible
to receive a Restricted Stock and/or LTIP Unit Award under this Program for
such Year.

 

2.9          LTIP UNITS means
units of limited partnership interest of the Partnership designated as “LTIP
Units” in the Partnership Agreement awarded under the Plan, having the rights,
voting powers, restrictions, limitations as to distributions, qualifications
and terms and conditions of redemption set forth in the Partnership Agreement.

 

2.10        LTIP UNIT AWARD means
an award of LTIP Units granted by the Committee under the Plan based on the
Conversion Amount.

 

2.11        LTIP UNIT AWARD AGREEMENT
means an agreement evidencing a LTIP Unit Award approved by the Committee as it
may be revised from time to time.

 

2.12        PARTICIPANT means any
Eligible Employee who has delivered to the Company an election agreement
electing to participate in the Program.

 

2.13        PARTNERSHIP means The
Macerich Partnership, L.P.

 

2.14        PLAN means The
Macerich Company 2003 Equity Incentive Plan.

 

2.15        PROGRAM means this The
Macerich Company Amended and Restated Cash Bonus/Restricted Stock and LTIP Unit
Award Program under the 2003 Equity Incentive Plan, as from time to time
amended.

 

2.16        RESTRICTED STOCK means
shares of Common Stock awarded to a Participant pursuant to Article IV of the
Plan.

 

2.17        RESTRICTED STOCK AWARD
means an award of Restricted Stock granted by the Committee under the Plan
based on the Conversion Amount.

 

2

 

2.18        RESTRICTED STOCK AWARD
AGREEMENT means an agreement evidencing a Restricted Stock Award approved
by the Committee as it may be revised from time to time.

 

2.19        YEAR means the
applicable calendar year.

 

ARTICLE III

PARTICIPATION

 

Each
Eligible Employee designated by the Committee for any Year may elect in advance
to receive all or part (in increments and on forms authorized by the Committee)
of any Cash Bonus with respect to such Year that may be granted in the future
in the form of Restricted Stock and/or LTIP Units to the extent provided in
Article IV.

 

ARTICLE IV

RESTRICTED STOCK, LTIP UNIT OR CASH ELECTIONS

 

4.1          TIME AND TYPES OF
ELECTIONS

 

On or
before the relevant Bonus Election Date for a Year, each Eligible Employee may
make an irrevocable election to receive a percentage of the Cash Bonus that may
be granted to the Eligible Employee with respect to such Year in shares of
Restricted Stock and/or LTIP Units, if applicable. This election shall become
effective only if the Committee, in authorizing the Cash Bonus, expressly
recognizes such alternative payment opportunity in Restricted Stock and/or LTIP
Units and grants the Restricted Stock and/or LTIP Units at that time. The
Committee will have the sole discretion to determine whether Restricted Stock
and/or LTIP Units will be offered as alternative payments for the Cash Bonus. A
person who first becomes an Eligible Employee after the applicable deadline
may, within 30 days of becoming and being designated as an Eligible Employee,
make an irrevocable election to receive any Cash Bonuses granted for the
applicable Year (or remaining portion thereof, as the case may be) in
Restricted Stock and/or LTIP Units, if applicable.

 

4.2          ELECTION PROCEDURES

 

The
elections shall be made in writing on forms provided by the Company and
authorized by the Committee. These forms shall be in substantially the form of
the Election Agreement attached hereto as Exhibit A, as from time to time
amended by the Committee. Neither the distribution nor completion of election
agreements shall convey any right to receive a bonus, in cash, Restricted Stock
or LTIP Units. Failure to timely elect Restricted Stock and/or LTIP Units, if
applicable, however, will result in the payment in cash if any Cash Bonus is
awarded.

 

3

 

4.3          TIME AND MANNER OF
DISTRIBUTION

 

A
Participant shall be entitled to receive a number of shares of Restricted Stock
or a number of LTIP Units in accordance with the vesting schedule set forth in
the applicable Restricted Stock Award Agreement or LTIP Unit Award Agreement.

 

4.4          NUMBER OF SHARES/LTIP
UNITS

 

The
number of shares of Restricted Stock and/or the number of LTIP Units to be
granted under this Program shall equal a multiple of the Conversion Amount
divided by the Fair Market Value of a share of Common Stock (without regard to
any restriction) on the applicable Bonus Payment Date. The multiple shall not
be changed as to any election after it is duly made under the terms of this Program
without the consent of the Participant.

 

The
multiple for bonuses shall be 1.5 until changed by the Committee. For example,
assume that prior to September 30, 2007, a Participant elects to receive 40% of
any cash bonus in Restricted Stock or LTIP Units and, on March 31, 2008, the
Company grants him a $40,000 cash bonus. The market value of a share of Common
Stock on the Bonus Payment Date is $30. The Participant will receive $24,000 in
cash and 800 shares of Restricted Stock or 800 LTIP Units, as applicable.

 

4.5          NO FRACTIONAL SHARE
INTERESTS

 

If an
election would result in the issuance of a fractional share, the amount of
Restricted Stock and/or LTIP Units granted shall be rounded down to the next
whole share and the cash alternative amount in lieu of the fractional interest
shall be paid in cash.

 

ARTICLE V

RESTRICTED STOCK AWARDS

 

The
grant of Restricted Stock Awards, including, but not limited to, the terms of
grant, conditions and restrictions, the consideration (other than services) to
be paid, dividend rights, vesting terms, provisions for redelivery to the
Company, and adjustments in case of changes in the Common Stock, shall be
governed by the terms of the Plan, the Program and the Restricted Stock Award
Agreement. After an election is made, the form of the Restricted Stock Award
Agreement (if applicable) may not be changed in any manner materially adverse
to the Participant without his or her consent. All Restricted Stock Awards are
subject to express prior authorization by the Committee of the terms of the
Restricted Stock Award and the specific number of shares of Restricted Stock
thereunder.

 

ARTICLE VI

LTIP UNIT AWARDS

 

The
grant of LTIP Unit Awards, including, but not limited to, the terms of grant,
conditions and restrictions, the consideration (other than services) to be
paid, dividend rights, vesting terms, provisions for redelivery to the Company,
and adjustments in case of changes in the Common Stock, shall be governed by
the terms of the Plan, the Program and the LTIP Unit Award Agreement. After an
election is made, the form of the LTIP Unit Award Agreement (if 

 

4

 

applicable) may not be changed in any manner
materially adverse to the Participant without his or her consent. All LTIP Unit
Awards are subject to express prior authorization by the Committee of the terms
of the LTIP Unit Award and the specific number of LTIP Units, Common Units and
shares of Common Stock thereunder.

 

ARTICLE VII

ADMINISTRATION

 

7.1          RIGHTS AND DUTIES.

 

This
Program shall be administered by and all Restricted Stock Awards and LTIP Unit
Awards to Eligible Employees shall be authorized by the Committee. The
Committee shall have all powers necessary to accomplish those purposes,
including, but not by way of limitation, the following:

 

(a)           to determine the
particular Eligible Employees who will receive Cash Bonuses, the extent to
which and price at which a Cash Bonus may be settled in shares of Common Stock,
Restricted Stock or LTIP Units, and the other specific terms and conditions of
Restricted Stock and LTIP Units consistent with the express limits of this
Program and the Plan;

 

(b)           to approve from time to
time the election agreement and other forms of Restricted Stock Award Agreement
and LTIP Unit Award Agreement (which need not be identical either as to type of
award or among Participants or from year to year); and

 

(c)           to resolve any
questions concerning benefits payable to a Participant and make all other
determinations and take such other action as contemplated by this Program or
the Plan or as may be necessary or advisable for the administration or
interpretation of this Program.

 

7.2          CLAIMS PROCEDURES.

 

To the
extent the Committee permits deferral elections extending to the termination of
employment or beyond, the following claims procedures shall apply:

 

(a)           The Committee shall
notify Participants and, where appropriate, the Beneficiary(ies) of their right
to claim benefits under these claims procedures, shall make forms available for
filing of such claims, and shall provide the name of the person or persons with
whom such claims should be filed.

 

(b)           The Committee shall act
upon claims as required and communicate a decision to the claimant promptly
and, in any event, not later than 90 days after the claim is received by the
Committee, unless special circumstances require an extension of time for
processing the claim. If an extension is required, notice of the extension
shall be furnished to the claimant prior to the end of the initial 90-day
period, which notice shall indicate the reasons for the extension and the
expected decision date. The extension shall not exceed 90 days. The claim may
be deemed by the claimant to have been denied for purposes of further review
described below in the event a decision is not furnished to the claimant within
the period described in the preceding three sentences. Every claim for benefits
which is denied shall be denied by written notice setting forth in a manner
calculated to be understood by the claimant (i) the specific 

 

5

 

reason or reasons for the denial, (ii) specific
reference to any provisions of this Program on which denial is based, (iii)
description of any additional material or information necessary for the
claimant to perfect his claim with an explanation of why such material or
information is necessary, and (iv) an explanation of the procedure for further
review of the denial of the claim under this Program.

 

(c)           The claimant or his or
her duly authorized representative shall have 60 days after receipt of denial
of his or her claim to request a review of such denial, the right to review all
pertinent documents and the right to submit issues and comments in writing. Upon
receipt of a request for a review of the denial of a benefit claim, the
Committee shall undertake a full and fair review of the denial.

 

(d)           The Committee shall
issue a decision not later than 60 days after receipt of a request for review
from a claimant unless special circumstances, such as the need to hold a
hearing, require a longer period of time, in which case a decision shall be
rendered as soon as possible but not later than 120 days after receipt of the
claimant’s request for review. The decision on review shall be in writing and
shall include specific reasons for the decision written in a manner calculated
to be understood by the claimant with specific reference to any provisions of
this Program on which the decision is based.

 

ARTICLE VIII

MISCELLANEOUS

 

8.1          INCORPORATION BY
REFERENCE

 

Except
where in conflict with the express terms of this Program, the terms of the Plan
govern the Program and are incorporated by reference, including, without
limitation, the following:  the
administrative powers and authority of the Committee and the effect of its decisions;
the unfunded status of benefits; provisions for non-transferability of rights;
rights (or absence of rights) of Eligible Employees, Participants and Beneficiaries;
compliance with laws; tax withholding obligation of Participants; privileges of
stock ownership; and governing law/construction/severability.

 

8.2          AMENDMENT, TERMINATION
AND SUSPENSION

 

The
Committee or the Board may, at any time, terminate or, from time to time,
amend, modify or suspend this Program, in whole or in part. No Restricted Stock
or LTIP Units may be granted under this Program during any suspension of this
Program or after termination of this Program. Termination or amendment of this
Program shall have no effect on any then outstanding Restricted Stock or LTIP
Unit Awards.

 

8.3          TERM OF THIS PROGRAM

 

The
term of this Program is indefinite, subject to the term of the Plan and Section
8.2. All authority of the Committee with respect to Restricted Stock and LTIP
Units hereunder, including its authority to amend a Restricted Stock Award
Agreement or LTIP Unit Award Agreement, shall continue during any suspension of
this Program or the Plan, in respect of 

 

6

 

outstanding Restricted Stock Awards and LTIP Unit
Awards on any such amendment or termination date.

 

8.4          NON-EXCLUSIVITY OF
PROGRAM

 

Nothing
in this Program shall limit or be deemed to limit the authority of the Board or
the Committee to grant awards or authorize any other compensation, with or
without reference to the Common Stock, under the Plan or any other plan or
authority.

 

8.5          CHANGE IN CONTROL EVENT

 

The
consequences of a termination of service, whether before or after a Change in
Control Event, in respect of any rights or benefits related to the Conversion
Amount shall be governed solely by the terms of the Restricted Stock Award
Agreement or LTIP Unit Award Agreement.

 

7

 

Exhibit A

Election Form

 

THE MACERICH COMPANY

ELECTION AGREEMENT

 

AMENDED AND RESTATED CASH BONUS/RESTRICTED STOCK
AND LTIP UNIT AWARD PROGRAM UNDER THE MACERICH COMPANY 2003 EQUITY INCENTIVE
PLAN

 

IF WITH
RESPECT TO THE YEAR                    ,
THE COMPENSATION COMMITTEE GRANTS A CASH BONUS FOR SUCH YEAR TO ME UNDER THE
PROGRAM AND IF THE COMPENSATION COMMITTEE ACCEPTS THIS ELECTION AND THEREBY
EXPRESSLY AUTHORIZES ME TO RECEIVE ALL OR PART OF ANY SUCH CASH BONUS IN THE
FORM OF A RESTRICTED STOCK [AND/OR LTIP UNIT] AWARD (AN “AWARD”):

 

I
IRREVOCABLY ELECT TO TAKE            %
OF MY CASH BONUS IN THE FORM OF A RESTRICTED STOCK AWARD [LTIP UNITS AWARD]. I
UNDERSTAND THAT THE COMMITTEE HAS THE SOLE DISCRETION TO DETERMINE THE SPECIFIC
FORM OF THE AWARD (SUBSTANTIALLY CONSISTENT WITH THE TERMS DESCRIBED).

 

I ALSO
UNDERSTAND THAT:

 

•                  THE CONVERSION
RATE, OR “MULTIPLE”, FOR PURPOSES OF OR IN RESPECT OF DETERMINING THE NUMBER OF
SHARES UNDERLYING THE AWARD WILL BE 1.5.

 

•                  THE VESTING
SCHEDULE FOR THE AWARD WILL BE NOT LESS THAN AT A RATE OF          %
PER YEAR.

 

•                  THIS ELECTION IS
IRREVOCABLE AND MUST BE FILED BY                                        ,
             WITH:

 

RICHARD A. BAYER, CHIEF LEGAL OFFICER

401 WILSHIRE BOULEVARD, SUITE 700

SANTA MONICA, CALIFORNIA  90401

 

•                  IF THIS ELECTION
IS NOT TIMELY FILED, I WILL NOT HAVE AN OPPORTUNITY TO PARTICIPATE IN THE PROGRAM
FOR BONUSES GRANTED WITH RESPECT TO THE YEAR                .

 

•                  THIS ELECTION IS
SUBJECT TO THE TERMS OF THE PROGRAM, THE 2003 EQUITY INCENTIVE PLAN (INCLUDING
THE INDIVIDUAL SHARE AWARD LIMITS) AND THE AWARD AGREEMENT.

 

•                  THIS ELECTION
DOES NOT CONSTITUTE A GUARANTEE THAT I WILL RECEIVE ANY BONUS FROM THE COMPANY.

 

1

 

ACKNOWLEDGMENT
AND AGREEMENT

 

I acknowledge and agree to the foregoing terms of
this Election Agreement.

 

	
   

  	
   

  	
   

  
	
  (Participant’s
  Signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Print
  Name)

  	
  (Date)

  	
   

  

 

2Exhibit 10.3

 

FORM
OF RESTRICTED STOCK AWARD AGREEMENT

 

THE MACERICH COMPANY

 

RESTRICTED STOCK AWARD AGREEMENT

2003 EQUITY INCENTIVE PLAN

 

	
  Participant
  Name:

  	
   

  	
  «Name»

  
	
  Soc.
  Sec. No.:

  	
   

  	
  «SSN»

  
	
  No. of
  Shares:

  	
   

  	
  «Shares»  (1)

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  33 1/3% of the shares
  on each successive [March]     , beginning [March]     ,
         and ending [March]     ,      .

  
	
   

  	
   

  	
   

  
	
  Award Date:

  	
   

  	
  [March]       ,
          

  

 

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 Participant 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 restricted stock award (the “Restricted Stock 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 Restricted Stock Award with respect to an aggregate number of
shares of Common Stock, par value $.01 per share (the “Restricted Stock”) set
forth

 

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

 

 

above. The consideration for the shares issuable with respect to the
Award on the terms set forth in this Agreement includes services and other
consideration in an amount not less than the minimum lawful consideration under
Maryland law.

 

3.             Vesting. The
Award shall vest, and restrictions (other than those set forth in Section 6.4
of the Plan) shall lapse, with respect to the portion of the total number of
shares (subject to adjustment under Section 6.2 of the Plan), 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. The Participant agrees to provide services to
the Company in consideration for the conditional rights to the unvested shares
of Restricted Stock subject to the Award granted hereunder. 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 provided in Section 8 below or under the Plan.

 

5.             Dividend and Voting Rights.
After the Award Date, the Participant shall be entitled to cash dividends and
voting rights with respect to the shares of Restricted Stock subject to the
Award even though such shares are not vested, provided that such rights shall
terminate immediately as to any shares of Restricted Stock that cease to be
eligible for vesting.

 

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

 

7.             Stock Certificates.

 

(a)           Book Entry Form; Information
Statement; Power of Attorney. The Corporation shall issue the
shares of Restricted Stock subject to the Award in book entry form, registered
in the name of the Participant with notations regarding applicable restrictions
on transfer. Concurrent with the execution and delivery of this Agreement, the
Corporation shall deliver to the Participant a written information statement
with respect to such shares, and, to the extent requested, the Participant
shall deliver to the Corporation an executed stock power, in blank, with
respect to such shares. The Participant, by receipt of the Award, shall be
deemed to appoint the Corporation and each of its authorized representatives as
the Participant’s attorney(s)-in-fact to effect any transfer of unvested
forfeited shares (or shares otherwise reacquired by the Corporation hereunder)
to the Corporation as may be required pursuant to the Plan or this Agreement
and to execute such documents as the Corporation or such representatives deem
necessary or advisable in connection with any such transfer.

 

(b)           Certificates to be Held by
Corporation; Legend. Any certificates representing Restricted
Stock that the Participant may be entitled to receive from the Corporation
prior to vesting shall be redelivered to the Corporation to be held by the
Corporation until the restrictions on such shares shall have lapsed and the
shares shall thereby have become

 

2

 

vested or the shares represented thereby have been forfeited hereunder.
Such certificates shall bear the following legend:

 

“The
transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions contained in an Agreement entered into
between the registered owner, The Macerich Partnership L.P. and The Macerich
Company. A copy of such Agreement is on file in the office of the Secretary of
The Macerich Company, 401 Wilshire Boulevard, Suite 700, Santa Monica,
California 90401.”

 

(c)           Delivery of Certificates Upon
Vesting. Promptly after the lapse or other release of
restrictions, a certificate or certificates evidencing the number of shares of
Common Stock as to which the restrictions have lapsed or been released or such
lesser number as may be permitted pursuant to Section 6.5 of the Plan shall be
delivered to the Participant or other person entitled under the Plan to receive
the shares. The Participant or such other person shall deliver to the
Corporation any representations or other documents or assurances required
pursuant to Section 6.4 of the Plan. The shares so delivered shall no longer be
restricted shares hereunder. 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 shares
of Restricted Stock shall be forfeited to the extent such shares 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 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 restricted shares under
any Awards held by such employees, effective immediately prior to such event.

 

(b)           Return of Shares. Upon
the occurrence of any forfeiture of shares of Restricted Stock hereunder, such
unvested, forfeited shares shall, without payment of any consideration by the
Corporation for such transfer, be automatically transferred to the Corporation,
without any other action by the Participant, or the Participant’s Beneficiary
or Personal Representative, as the case may be. The Corporation may exercise
its powers under Section 7(a) hereof and take any other action necessary or
advisable to evidence such transfer. The Participant, or the Participant’s
Beneficiary or Personal Representative, as the case may be, and the Operating
Partnership shall deliver any additional documents of transfer that the
Corporation may request to confirm the transfer of such unvested, forfeited
shares to the Corporation.

 

(c)           Qualified Termination Upon or
Following Change in Control Event. Subject to Section 18, 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) 

 

3

 

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. 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 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 vested under an Award. If any adjustment shall be
made under Section 6.2 of the Plan or a Change in Control Event shall occur and
the shares of Restricted Stock are not fully vested upon such Event or prior
thereto, the restrictions applicable to such shares of Restricted Stock shall
continue in effect with respect to any consideration or other securities (the “Restricted
Property” and, for the purposes of this Agreement, “Restricted Stock” shall
include “Restricted Property,” unless the context otherwise requires) received
in respect of such Restricted Stock. Such Restricted Property shall vest at
such times and in such

 

4

 

proportion as the shares of Restricted Stock to which the Restricted
Property is attributable vest, or would have vested pursuant to the terms
hereof if such shares of Restricted Stock had remained outstanding. 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 Restricted Stock would have vested.

 

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 in 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.

 

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

 

(a)           Limitation on Acceleration.
Notwithstanding anything contained herein (except as otherwise provided in
Section 18 hereof) or in the Plan or any other agreement to the contrary, in no
event shall the vesting of any share of Restricted Stock 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
because of Section 280G of the Code and, in such circumstances, the restricted
shares 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 (except
as otherwise provided in Section 18 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

 

5

 

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. The
entity within the Company last employing the Participant shall be entitled to
require a cash payment by or on behalf of the Participant and/or to deduct from
other compensation payable to the Participant any sums required by federal,
state or local tax law to be withheld with respect to the payment of dividends
or the vesting of any Restricted Stock, but, in the alternative the Participant
or other person in whom the Restricted Stock vests may irrevocably elect, in
such manner and at such time or times prior to any applicable tax date as may
be permitted or required under Section 6.5 of the Plan and rules established by
the Committee, to have the entity last employing the Participant withhold and
reacquire shares of Restricted Stock at their Fair Market Value at the time of
vesting to satisfy any minimum withholding obligations of the Company with
respect to such vesting. Any election to have shares so held back and
reacquired shall be subject to such rules and procedures, which may include
prior approval of the Committee, as the Committee may impose, and shall not be
available if the Participant makes or has made an election pursuant to Section
83(b) of the Code with respect to such Award.

 

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
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
expressly set forth herein or 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

 

6

 

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.
This Award 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.

 

18.          Other
Agreements. If any provision of this Agreement is
inconsistent with any provision of the Management Continuity Agreement dated as
of October 26, 2006 between the Corporation and Participant and as it may be
amended from time-to-time (the “MCA”), the provisions of the MCA shall control
and shall be deemed incorporated herein by reference.

 

7

 

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, Chief Legal Officer & Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE
  MACERICH PARTNERSHIP, L.P.

  
	
  (a Delaware
  limited partnership)

  
	
   

  
	
  By:

  	
  The Macerich
  Company

  
	
   

  	
  (its general
  partner)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Richard A. Bayer

  
	
   

  	
   

  	
  Executive Vice
  President, Chief Legal Officer & Secretary

  
						

 

 

	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  «Name»

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (City, State, Zip Code)

  	
   

  

 

8

 

CONSENT
OF SPOUSE

 

In
consideration of the execution of the foregoing Restricted Stock 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 Restricted Stock 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

  

 

9

 

IRREVOCABLE
POWER OF ATTORNEY

(Coupled with an
interest)

 

KNOW ALL MEN BY THESE
PRESENTS, that I hereby constitute and appoint Thomas E. O’Hern and Richard A.
Bayer and their respective successors in office as Chief Financial Officer and
Secretary of The Macerich Company (the “Company”), my true and lawful
attorneys-in-fact and agents, each acting alone, with full powers of
substitution and resubstitution, for me and in my name, place and stead, in any
and all capacities, to sign any documents and to take any other action to
effect the transfer and delivery of up to                   
shares (the “Shares”) of Common Stock of the Company issued in my name back to
the Company in the event of any occurrence that requires the return to the
Company of any or all of the Shares under the terms of the Company’s 2003
Equity Incentive Plan (the “Plan”) and the related Restricted Stock Award
Agreement to me thereunder dated as of                             
(the “Award”), each as amended from time to time. I further hereby grant unto
said attorneys-in-fact and agents, each acting alone, full power and authority
to do and perform each and every act and thing whatsoever requisite and
necessary to be done in and about the premises, as fully to all intents and
purposes as I might or could do in person, hereby ratifying, confirming and
approving all of the acts which said attorneys-in-fact and agents, each acting
alone, or their respective substitute or substitutes, may lawfully do or cause
to be done by virtue hereof.

 

By this document I intend
to create a power of attorney coupled with an interest in the Shares to be held
by the Company pending satisfaction of conditions to vesting under the terms of
the Award and the Plan for an indefinite period of time not less than 10 years.
This power of attorney is a durable power of attorney and shall not be affected
by my subsequent incapacity or disability or death. I understand that the Award
and any continued benefits thereunder is subject to the condition that I grant
and the Company or its agents hold an effective power of attorney to the effect
set forth herein.

 

This power of attorney is
irrevocable by me at any time prior to the vesting of all of the Shares in
accordance with the terms of the Award and the release of all restrictions on
the Shares thereunder.

 

	
   

  	
   

  	
  Signature:

  	
   

  
	
  Date

  	
  Name:

  	
  «Name»

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Place

  	
   

  	
   

  
					

 

10

 

ASSIGNMENT
SEPARATE FROM CERTIFICATE

 

For Value Received,                              
hereby sells[s], assign[s] and transfer[s] unto The Macerich Company (the “Corporation”)
                              
Shares of the Common Stock of the Corporation standing in his/her name on the
books of the Corporation and do hereby irrevocably constitute and appoint
Richard A. Bayer, attorney-in-fact, with full power of substitution to transfer
said shares on the books of the Corporation.

 

 

	
   

  	
  Dated:                         ,
  20   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
  Name:

  	
  «Name»

  
					

 

11

 

THE
MACERICH COMPANY

 

RESTRICTED
STOCK AWARD

INFORMATION
STATEMENT

 

General Information

 

This information
statement has been provided to «Name»
(the “Participant”) in connection with a Restricted Stock Award granted to the
Participant by The Macerich Company, a Maryland corporation (the “Corporation”),
pursuant to a Restricted Stock Award Agreement dated as of [March]       ,
            among the
Participant, the Corporation and The Macerich Partnership, L.P. (the “Award
Agreement”) under the Corporation’s 2003 Equity Incentive Plan (the “Plan”). Capitalized
terms used herein as not otherwise defined herein shall have the meanings
assigned to them in the Agreement and the Plan.

 

Restricted Stock issued
to the Participant pursuant to the Award Agreement will be represented in book
entry form. This information statement is provided to the Participant pursuant
to §2-210 of the Maryland General Corporation Law.

 

Award Summary

 

	
  Participant Name:

  	
   

  	
  «Name»

  
	
  Issuer Name:

  	
   

  	
  The Macerich Company

  
	
  Class of Security:

  	
   

  	
  Common Stock, par value
  $.01 per share

  
	
  Number of Securities:

  	
   

  	
  «Shares»
  shares

  

 

No Security

 

THIS STATEMENT IS MERELY
A RECORD OF THE RIGHTS OF THE ADDRESSEE AS OF THE TIME OF ITS ISSUANCE. DELIVERY
OF THIS STATEMENT, OF ITSELF, DOES NOT CONFER ANY RIGHTS UPON THE RECIPIENT. THE
STATEMENT IS NEITHER A NEGOTIABLE INSTRUMENT NOR A SECURITY.

 

Availability of Further
Information Concerning the Capital Stock of the Corporation

 

The Corporation is
authorized to issue three classes of capital stock which are designated as Common
Stock, Preferred Stock and Excess Stock. The Corporation will furnish to any
stockholder on request and without charge a full statement of the designations
and any preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends, qualifications and terms and conditions of
redemption of the stock of each class which the Corporation is authorized to
issue, and the differences in the relative rights and preferences between the
shares of each series to the extent they have been set, and the authority of
the Board of Directors to set the relative rights and preferences of subsequent
series. Such request may be made to the Secretary of the Corporation or to its
transfer agent.

 

12

 

Restrictions on Transfer

 

The transferability of
Restricted Stock is subject to the terms and conditions contained in the Award
Agreement and the Plan. A copy of the Award Agreement is on file in the office
of the Secretary of the Corporation.

 

The securities
represented by this certificate are also subject to restrictions on ownership
and transfer for the purpose of the Corporation’s maintenance of its status as
a real estate investment trust under the Internal Revenue Code of 1986, as
amended (the “Code”). Except as otherwise provided pursuant to the charter of
the Corporation, no Person may (1) Beneficially Own shares of Equity Stock in
excess of 5.0% (or such greater percentage as may be provided in the charter of
the Corporation) of the number or value of the outstanding Equity Stock of the
Corporation (unless such Person is an Excluded Participant), or (2)
Beneficially Own Equity Stock that would result in the Corporation being “closely
held” under Section 856(h) of the Code (determined without regard to Code
Section 856(h)(2) and by deleting the words “the last half of” in the first
sentence of Code Section 542(a)(2) in applying Code Section 856(h)), or (3)
Beneficially Own Equity Stock that would result in Common Stock and Preferred
Stock being beneficially owned by fewer than 100 Persons (determined without
reference to any rules of attribution). Any Person who attempts to Beneficially
Own shares of Equity Stock in excess of the above limitations must immediately
notify the Corporation. All capitalized terms in this paragraph have the
meanings defined in the Corporation’s charter, as the same may be further
amended from time to time, a copy of which, including the restrictions on
ownership or transfer, will be sent without charge to each stockholder who so
requests. Transfers or other events in violation of the restrictions described
above shall be null and void ab initio, and
the purported transferee or purported owner shall acquire or retain no rights
to, or economic interest in, any Equity Stock held in violation of these
restrictions. The Corporation may redeem such shares upon the terms and
conditions specified by the Board of Directors in its sole discretion if the
Board of Directors determines that a Transfer or other event would violate the
restrictions described above. In addition, if the restrictions on ownership or
transfer are violated, the shares of Equity Stock represented hereby shall be
automatically exchanged for shares of Excess Stock which will be held in trust
for the benefit of a Beneficiary. Excess Stock may not be transferred at a
profit. The Corporation has an option to acquire Excess Stock under certain
circumstances. The foregoing restrictions may also delay, defer or prevent a
change of control of the Corporation or other transaction which could be in the
best interests of stockholders.

 

The Corporation will
furnish information about all of the restrictions on transferability of these
securities to the stockholder, on request and without charge.

 

13

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