Document:

Contract of Sale dated February 26, 2007

    

      CONTRACT
        OF SALE

      

      

       

      

      EMBASSY
        INDUSTRIES INC.

      

      Seller

      

      

      

      

      

      -
        with -

      

      

      

      TELL
        REALTY LLC

      

      

      Purchaser

      

      

      

      

      
        	
                Premises:

                 

              	
                300
                  Smith Street

                Farmingdale,
                  New York

              

      

      

      

      

      

      

      

      

      

      

      Certilman
        Balin Adler & Hyman, LLP

      90
        Merrick Avenue

      East
        Meadow, New York 11554

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      CONTRACT
        dated
        as
        of February 27, 2007, by and between EMBASSY
        INDUSTRIES, INC., a
        New
        York Corporation, having its principal office at 445 Broad Hollow Road, Suite
        100, Melville, New York, 11747 (the, “Seller”), and TELL
        REALTY LLC, a
        New
        York limited liability company, having its principal office at 58-51 Maspeth
        Avenue, Maspeth, New York, 11378, (“Purchaser”).

      

      WITNESSETH:

      

      WHEREAS,
        Seller
        owns a parcel of land with the improvements erected thereon, as
        follows:

      

      being
        in
        Farmingdale, Town of Babylon, County of Suffolk, State of New York; known
        by
        street address 300 Smith Street, Farmingdale, New York; and designated as
        District 100; Section 5; Block 1; Lot 11 on the Land and Tax Map of Suffolk
        County, as more particularly described on Schedule A annexed hereto (the
        “Property”);

      

      WHEREAS,
        Seller
        desires to sell to Purchaser and Purchaser desires to purchase from Seller,
        the
        Premises (as hereinafter defined) on the terms and conditions set forth
        herein;

      

      NOW,
        THEREFORE, in
        consideration of these premises and the mutual covenants, the parties hereby
        covenant and agree as follows:

      

      

      SECTION
        1

      SALE
        OF PREMISES AND ACCEPTABLE TITLE

       

      1.1 Seller
        shall sell to Purchaser and Purchaser shall purchase from Seller, at the
        price
        and upon the terms and conditions set forth herein: (a) the Property, (b)
        all
        buildings (the “Buildings”) and improvements, if any, situated thereon
        (collectively, the “Improvements”) (c) all right, title and interest of Seller,
        if any, in and to the land lying in the bed of any street or highway in front
        of
        or adjoining the Property to the center line thereof and to any unpaid award
        for
        any taking thereof by condemnation, or any damage to the Property by reason
        of a
        change of grade of any street or highway; (d) the appurtenances, (e) all
        right,
        title and interest of Seller, in and to the fixtures equipment and other
        personal property attached to the Buildings and/or listed on Schedule B attached
        hereto; and (f) all licenses, permits, certificates, warranties, and the
        like
        pertaining to the ownership, use and occupancy of the Property (collectively,
        the “Personal Property”). The Property, the Improvements, the Personal Property
        and the other interests being sold and purchased as provided in this subsection
        1.1 are referred to, collectively, as the “Premises”.

       

      1.2 A.
        Seller
        shall convey and Purchaser shall accept fee simple title to the Premises
        in
        accordance with the terms of this Contract, subject only to (a) the matters
        (“Permitted Exceptions”) set forth in Schedule C attached to and made a part of
        this Contract and such other matters as Purchaser has agreed to take subject
        to,
        and (b) such other matters as any other reputable title insurance company
        selected by Purchaser and licensed to do business in the State of New York
        (the
“Title Company”) shall be willing, without special premium, to omit as
        exceptions to coverage or with Purchaser's consent to except with insurance
        against collection out of, or enforcement against the Premises.

      
        
          
          

        

        
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      B. Within
        twenty (20) days after the date of this Contract, Purchaser shall order a
        title
        report and shall instruct the Title Company to deliver to Seller’s attorneys, a
        title commitment (the “Title Commitment”). Exceptions to title which are not set
        forth on Schedule "C" shall each be a "Title Defect."

       

      C. Seller
        shall be entitled to a reasonable adjournment of the Closing Date up to ninety
        (90) days, in order to give Seller an opportunity to remove any Title Defect,
        however, Seller shall not be required to bring any action or proceeding or
        otherwise incur any expense in excess of $100,000.00 ("Title Expense") to
        remove
        any Title Defect. The existence of any taxes, liens, or encumbrances, other
        than
        the Permitted Exceptions, shall not be objections to title if properly executed
        instruments necessary to satisfy the same are delivered to the Title Company
        at
        or before the Closing, together with recording and filing fees, if any, so
        that
        the Title Company may omit such taxes, liens, or encumbrances from its schedule
        of exceptions to title. If the Premises or any part thereof is subject to
        any
        lien, the amount of which has not been fixed, the same shall not be a Title
        Defect provided the Title Company shall insure Purchaser against collection
        of
        such lien from the Premises. Notwithstanding anything to the contrary, Seller
        shall pay and discharge, without limit as to amount, all mortgages, consensual
        liens, mechanic's liens, municipal liens and judgments against
        Seller.

       

      D. In
        the
        event there exists any Title Defect which Seller is unable to cure as described
        in paragraph (C) above at the time of Closing, Purchaser shall have the option
        of (i) closing title, notwithstanding such Title Defect, without any abatement
        of the Purchase Price, other than the Title Expense, or (ii) canceling this
        Contract by written notice to Seller within ten (10) days after Purchaser
        receives written notice from Seller that it will be unable to cure such Title
        Defect. In the event Purchaser elects to cancel this Contract by reason of
        the
        foregoing, the Downpayment (as hereinafter defined in Section 15) shall be
        returned promptly to Purchaser, together with the net cost of title examination,
        and neither party under this Contract shall have any further obligation to
        the
        other, except that Purchaser and Seller shall continue to remain liable under
        the provisions of subsection 3.2D and Section 12 hereof.

       

      1.3 Responsibility
        for Violations. 

       

      A. Except
        as
        provided herein, all notes or notices of violations of law or governmental
        ordinances, orders or requirements which were noted or issued prior to the
        date
        of the Investigation Period Notice Date (defined below) by any governmental
        department, agency or bureau having jurisdiction as to conditions affecting
        the
        Premises shall be removed by or complied with by Seller. If such removal
        or
        compliance has not been completed prior to the Closing, Seller shall pay
        to
        Purchaser at the Closing the reasonably estimated unpaid cost to effect or
        complete such removal or compliance, and Purchaser shall be required to accept
        title to the Premises subject thereto. Purchaser shall take title subject
        to all
        such notes or notices of violations noted or issued on or after the date
        of the
        Investigation Period Notice Date. Seller shall be responsible to pay, at
        or
        prior to Closing, any fines or penalties arising from violations arising
        prior
        to Closing.

      
        
          
          

        

        
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      B. If
        required, Seller, upon written request by Purchaser, shall promptly furnish
        to
        Purchaser written authorizations to make any necessary searches for the purposes
        of determining whether notes or notices of violations have been noted or
        issued
        with respect to the Premises.

       

      SECTION
        2

      PURCHASE
        PRICE AND DOWNPAYMENT

      

      2.1 The
        purchase price (“Purchase Price”) to be paid by Purchaser to Seller for the
        Premises is SIX MILLION THREE HUNDRED THOUSAND AND 00/100 ($6,300,000.00)
        DOLLARS. 

       

      2.2 Upon
        execution of this Contract, Purchaser shall pay to Seller THREE HUNDRED FIFTEEN
        THOUSAND AND 00/100 ($315,000.00) DOLLARS, by check, subject to collection,
        payable to the order of, or by wire transfer to, CERTILMAN BALIN ADLER &
HYMAN, LLP, AS ATTORNEY (the “Escrow Agent”), who shall hold and disburse the
        proceeds and interest earned thereon, if any, (the “Initial Payment”) in
        accordance with the provisions of Section 15 hereof.  

       

      2.3 Within
        three (3) business days following the end of the Investigation Period Notice
        Date (hereinafter defined) and failure of Purchaser to cancel this Contract
        of
        Sale, THREE HUNDRED FIFTEEN THOUSAND AND 00/100 ($315,000.00) DOLLARS, by
        check,
        subject to collection, payable to the order of, or by wire transfer to,
        CERTILMAN BALIN ADLER & HYMAN, LLP, AS ATTORNEY (the “Escrow Agent”), who
        shall hold and disburse the proceeds and interest earned thereon, if any,
        (the
“Additional Payment”) in accordance with the provisions of Section 15 hereof.
        The Initial Payment and Additional Payment shall hereinafter collectively
        be
        referred to as the "Downpayment".

       

      2.4 On
        the
        Closing Date (as such term is defined herein), Purchaser shall pay to Seller
        or
        its designees the balance of the Purchase Price, in the amount of FIVE MILLION
        SIX HUNDRED SEVENTY THOUSAND AND 00/100 ($5,670,000.00) DOLLARS, after receiving
        credit for the Downpayment. 

       

      2.5 All
        sums
        which are to be paid to Seller under this Contract shall be paid by unendorsed
        certified or cashier’s checks drawn on a bank which is a member of the New York
        Clearinghouse, or by wire transfer. Upon three (3) business days’ written notice
        from Seller (which may be by e-mail or facsimile to Purchaser's attorneys),
        Purchaser shall deliver separate checks at Closing or make separate wire
        transfers in the number and amounts requested by Seller as designated in
        such
        notice.

      
        
          
          

        

        
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      SECTION
        3

      INVESTIGATION
        PERIOD AND CLOSING DATE

      

      3.1 A.
        Purchaser shall have a period of forty-five (45) days from the date of full
        execution (the “Investigation Period”) within which it may conduct
        investigations and studies concerning the Premises. (Such investigations
        and
        studies are hereinafter referred to as the “Purchaser’s Investigation Period
        Permitted Activities”). Any report prepared by a party other than Purchaser in
        performing such investigations shall hereinafter be referred to as a “Report”.
        Purchaser’s Investigation Period Permitted Activities shall be performed
        pursuant to the provisions of subsection 3.2 below.

       

      B. During
        the Investigation Period, Purchaser shall have the opportunity to inspect
        the
        Premises which inspection may include, but shall not be limited to (i) an
        environmental survey and/or assessment (inclusive of a Phase II assessment)
        to
        determine the existence of pollutants and/or contaminants and/or hazardous
        and/or toxic substances, materials and/or chemicals as defined in Environmental
        Laws (defined in subsection 16.2) (hereinafter referred to collectively or
        individually as “Hazardous Substances”), (ii) inspection of any underground
        storage tanks, (iii) compliance with all applicable laws, statutes, rules
        and
        regulations imposed by any relevant governmental authority having jurisdiction
        over the Premises, (iv) inquiries as to any existing tenancies or occupancies
        (if any), and (v) all other matters reasonably affecting or reasonably related
        to the transaction as may be appropriate. 

       

      C. If,
        at or
        prior to the expiration of the Investigation Period, Purchaser shall not
        be
        fully satisfied, in Purchaser’s sole discretion for any or no reason, as to the
        suitability of the Premises and all factors concerning same, then, in such
        event, Purchaser shall have the right to cancel this Contract by notice to
        Seller on or before the last day of the Investigation Period (such date
        hereinafter referred to as the “Investigation Period Notice Date”), time being
“of the essence”. In such event, any Report prepared in connection therewith
        shall be delivered to Seller. Any notice purporting to cancel this Contract
        pursuant to the provisions of this subsection 3.1C after the Investigation
        Period Notice Date shall be void and of no force and effect. In the event
        Purchaser cancels this Contract, as provided herein, the sole liability of
        Seller shall be to cause the Escrow Agent to refund the Downpayment within
        ten
        (10) days after receipt of Purchaser’s cancellation notice. Upon such
        reimbursement, this Contract shall be null and void and the parties hereto
        shall
        be relieved of all further obligations and liabilities other than any arising
        under subsection 3.2D and Section 12 hereof.

       

      D. In
        the
        event Purchaser does not cancel this Contract as provided in subsection 3.1C,
        then, in such event, Seller and Purchaser shall proceed with the transaction
        contemplated herein in accordance with the terms hereof.

       

      3.2 A.
         “Purchaser’s
        Investigation Period Permitted Activities” shall be performed and conducted at
        Purchaser’s sole cost and expense and in all respects in a commercially
        reasonable manner by Purchaser, its employees, agents, and independent
        contractors and Seller shall cooperate in such activities, and provide Purchaser
        with all plans, reports, warranties, relative to the Building and/or Premises
        to
        the extent same are in Seller's possession (at no cost to Seller). In connection
        with the foregoing, and for the purpose of conducting and performing Purchaser’s
        Permitted Activities, Purchaser and its employees, agents, and independent
        contractors shall have the right and license, during the Investigation Period,
        to enter onto the Premises as described in Section B below.

      
        
          
          

        

        
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      B. In
        order
        to obtain entry to the Premises where necessary to perform Purchaser's
        Investigation Period Permitted Activities, Purchaser and its employees, agents
        and independent contractors and representatives shall notify by telephone
        JOSEPH
        GIACALONE, a representative of Seller, at (631) 694-9800 of the identity
        of each
        of the parties intending to enter the Premises and the approximate period
        of
        time during which they will be located on the Premises. Seller shall coordinate
        each and every entry by Purchaser and/or its agents upon the
        Premises.

       

      C. Prior
        to
        any entry upon the Premises to conduct any inspection, Purchaser shall furnish,
        or cause its contractors or agents to furnish, to Seller, evidence of insurance
        insuring Seller from and against liability resulting from injury to or death
        of
        any person or persons and damage to or destruction of property, in an amount
        not
        less than THREE MILLION ($3,000,000.00) DOLLARS, combined single limits,
        of
        which TWO MILLION ($2,000,000.00) DOLLARS may be by means of an umbrella
        policy.

       

      D. Purchaser
        shall indemnify, protect, save, defend and hold forever harmless Seller from
        and
        against all liabilities, obligations, claims, damages, judgments, awards,
        penalties, costs, and expenses including, without limitation, reasonable
        attorney’s fees and court costs at all levels of proceedings, which Seller may
        incur, suffer or sustain, or for which Seller may become obligated or liable
        by
        reason of any act or omission on the part of Purchaser, its employees, agents,
        and/or independent contractors in the performance of conduct of Purchaser’s
        Investigation Period Permitted Activities or by reason of any injury to or
        death
        of persons or loss of or damage to property in connection with, or as a result
        of, any such entry or entries upon or use of the Premises by Purchaser, its
        employees, agents, and/or independent contractors in connection with Purchaser’s
        Investigation Period Permitted Activities or as a result of any liens for
        labor
        or services performed and/or materials furnished by or for the account of
        Purchaser in respect of the Premises. In the event this Contract terminates
        for
        any reason, Purchaser shall also be obligated to restore the Premises to
        substantially the same condition in which it existed prior to the commencement
        of Purchaser’s activities thereon. The provisions of this subsection D shall
        survive any termination of this Contract.

       

      3.3 Except
        as
        otherwise provided in this Contract, the closing of title pursuant to this
        Contract (the "Closing") shall take place at the office of Seller's counsel
        or
        at the offices of Purchaser's lender or such lender's attorneys, provided
        such
        offices are in Nassau, Suffolk, Queens or New York counties on or about
        forty-five (45) days following the Investigation Period Notice Date. (The
        actual
        date of the Closing is hereinafter referred to as the "Closing
        Date").

      
        
          
          

        

        
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      SECTION
        4

      REPRESENTATIONS
        AND WARRANTIES OF SELLER

      

      Seller
        warrants and represents to Purchaser as follows:

      

      4.1 Neither
        the execution of this Contract nor the consummation by Seller of the
        transactions contemplated by this Contract will (a) conflict with, or result
        in
        a breach of, the terms, conditions or provisions of, or constitute a default,
        or
        result in a termination of, any agreement or instrument to which Seller is
        a
        party, (b) violate any restriction to which Seller is subject, or (c) result
        in
        the creation of any lien, charge or encumbrance upon the Premises or any
        part
        thereof.

       

      4.2 Seller
        is
        a corporation, duly organized, validly existing and in good standing under
        the
        laws of the State of New York, authorized to conduct business in the State
        of
        New York, and is the sole owner of the Premises.

       

      4.3 Seller
        has all requisite power and authority, has taken all actions required by
        its
        organizational documents and applicable law, and has obtained all consents
        which
        are necessary to authorize or enable it to execute and deliver this Contract
        and
        to consummate the transactions contemplated in this Contract. The individual
        executing this Contract on Seller’s behalf has been duly authorized and is
        empowered to bind Seller to this Contract.

       

      4.4 Seller
        has not filed for relief as a debtor under any state receivership laws or
        federal bankruptcy laws.

       

      4.5 Seller,
        to the best of its knowledge and except as set forth on the attached Schedule
        "D", does not know of, and has not received any written notice of, the presence
        of environmentally hazardous conditions and/or substances emanating from
        the
        Premises.

       

      4.6 To
        the
        best of Seller's knowledge, there are no underground storage tanks at the
        Premises that have not been legally abandoned.

       

      4.7 Seller
        is
        not currently insolvent, and the execution and delivery of this Contract
        by
        Seller, nor Seller’s performance of Seller’s obligations hereunder will render
        the Seller insolvent.

       

      4.8 There
        are
        no outstanding contracts made by Seller for any improvements to the Premises
        which have not been fully paid for. This provision shall survive
        Closing.

       

      4.9 Seller
        shall cause to be discharged all mechanic’s or materialmen’s liens arising from
        work or materials furnished to the Premises prior to the Closing.

       

      4.10 Except
        as
        set forth on Schedule "E" annexed hereto, there are currently no outstanding
        service or maintenance contracts with respect to the Premises ("Service
        Contracts") to which the Seller is party relating to the ownership, operation
        or
        use of the Premises which will impose an obligation on Purchaser, and with
        respect to these Schedule "E" agreements, each may be cancelled on thirty
        (30)
        days notice without penalty. Purchaser shall be under no obligation to assume
        any such contract for service or maintenance to the Premises from and after
        Closing. except as set forth on Schedule "E". This provision shall survive
        Closing.

      
        
          
          

        

        
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      4.11 Seller
        has not heretofore conveyed any easements, or air rights or other development
        rights affecting or appurtenant to the Premises. This provision shall survive
        Closing.

       

      4.12 Seller
        agrees that it has not, and shall not, without obtaining Purchaser’s prior
        written consent in each instance: 

       

      (a) enter
        into any contract to sell any rights affecting or appurtenant to the Premises;
        

       

      (b)
         initiate,
        join in or consent to any change in any private restrictive covenant, easement
        or zoning or land use ordinance limited the uses which may be made of the
        Premises or any part thereof; 

       

      (c)
         structurally
        alter the Premises except as may be necessary to (i) keep the Premises in
        reasonably safe and secure condition, or (ii) as required by law;

       

      (d)
         Mortgage
        or otherwise encumber the Premises other than those mortgages and encumbrances
        presently affecting the Premises as of the date of this Contract; but
        nevertheless, nothing herein shall diminish Seller’s obligations to deliver
        title in accordance with the terms of this Contract; and

       

      (e) Seller
        shall not enter into any new lease, license or occupancy agreement with respect
        to any portion of the Premises.

       

      4.13 Seller
        shall maintain the fire and liability insurance policies covering the Premises;
        and shall maintain the same in full force and effect (or replace the same
        with
        equivalent or better coverage) between now and the date of Closing.

       

      4.14 There
        are
        no leases, subleases, licenses or other occupancy agreements affecting the
        Premises nor are there any Unfunded Leasing Costs (hereafter defined) as
        respect
        the Premises. The term Unfunded Leasing Costs means brokerage commissions,
        free
        rent or rent credits, tenant improvement or work letter allowances and/or
        any
        other costs to be paid or incurred as a result of an occupancy at the Premises
        or any termination of an occupancy at the Premises. This provision shall
        survive
        Closing.

       

      4.15 There
        are
        no persons employed by Seller at the Premises for whom Purchaser shall have
        any
        responsibility for subsequent to Closing. This provision shall survive
        Closing.

       

      4.16 Seller
        is
        not a foreign person as defined in Section 1445 of the Internal Revenue Code
        and
        the regulations promulgated thereunder.

       

      4.17 At
        Closing, Seller shall deliver to Purchaser blueprints, drawings, plans and
        specifications in respect to the Premises to the extent in the possession
        or
        control of Seller, together with any unexpired warranties for the roof and
        other
        mechanical systems, including HVAC and Seller’s books and records relating to
        the maintenance, upkeep and repair of the Premises during Seller’s
        ownership.

      
        
          
          

        

        
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      SECTION
        5

      REPRESENTATIONS
        AND WARRANTIES OF PURCHASER

      

      5.1 Purchaser
        warrants and represents to Seller that as of the date hereof:

       

      A.
        Neither the execution of this Contract nor the consummation by Purchaser
        of the
        transaction contemplated by this Contract will (i) conflict with, or result
        in a
        breach of, the terms, conditions or provisions of, or constitute a default,
        or
        result in a termination of, any agreement or instrument to which Purchaser
        is a
        party, (ii) violate any restriction to which Purchaser is subject or (iii)
        constitute a violation of any applicable code, resolution, law, statute,
        regulation, ordinance, judgment, rule, decree or order.

       

      5.2 Purchaser
        is a limited liability company duly organized, validly existing and in good
        standing under the laws of the State of New York.

       

      5.3 Purchaser
        has, or will have at Closing, all requisite authority, has taken all actions
        required by its organizational documents and applicable law, and has obtained
        all consents which are necessary to authorize or enable it to execute and
        deliver this Contract and to consummate the transactions contemplated in
        this
        Contract. The individuals executing this Contract on Purchaser’s behalf have
        been duly authorized and are empowered to bind Purchaser to this
        Contract.

       

      SECTION
        6

      SELLER’S
        OBLIGATIONS AS TO LEASES

      

      6.1 Seller
        shall deliver possession of the Premises to Purchaser at the Closing vacant
        and
        free from any leases, agreements, licenses or other rights of
        possession.

       

      SECTION
        7

      CONDITIONS
        PRECEDENT

      

      7.1 Purchaser’s
        obligation to close title pursuant to the terms of this Contract is subject
        to
        and conditioned upon the following:

       

      A. Each
        of
        the representations and warranties made by Seller in Section 5 hereof being
        true
        and complete in all material respects on the Closing Date as if made on and
        as
        of such date. At the Closing, Seller shall deliver to Purchaser a certification
        to this effect; and

       

      
        
          
          

        

        
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        B. Seller
          shall have performed all obligations which it is required to perform pursuant
          to
          the provisions of this Contract.

         

        7.2 Seller’s
          obligation to consummate the sale of the Premises pursuant to the terms
          of this
          Contract is subject to and conditioned upon the following:

         

      

      A.
         Each
        of
        the representations and warranties made by Purchaser in Section 5 hereof
        being
        true and complete on the Closing Date as if made on and as of such date.
        At the
        Closing, Purchaser shall deliver to Seller a certification to this
        effect.

       

      B. Purchaser
        shall have performed all obligations which it is required to perform pursuant
        to
        the provisions of this Contract.

       

      7.3 Seller
        covenants that between the date of the Contract and the Closing:

       

      A. Seller
        shall not modify or amend any existing contracts regarding the operation
        and
        maintenance of the buildings, including the Service Contracts or enter into
        any
        new service contract. 

       

      B.
         Seller
        shall maintain the Premises consistent with its past course of maintenance,
        such
        that it is, as of Closing, in substantially the same condition existing as
        of
        the expiration of the Investigation Period, reasonable wear and tear
        excepted.

       

      C.
         Seller
        shall maintain in full force and effect until the Closing, all insurance
        policies on the Premises which exist as of the date of the
        Contract.

       

      D.
         No
        fixtures, equipment or personal property included in this sale shall be removed
        from the Premises unless the same are replaced with similar items of at least
        equal quality prior to the Closing.

       

      E.
         Seller
        shall not intentionally place any lien or other encumbrance upon or otherwise
        affecting the Premises, nor shall Seller enter into any lease or other occupancy
        agreement for any part of the Premises.

       

      

      SECTION
        8

      SELLER’S
        CLOSING OBLIGATIONS

      

      At
        the
        Closing, Seller shall deliver the following to Purchaser:

       

      8.1 A
        statutory form of Bargain and Sale Deed With Covenants against Grantor's
        Acts,
        containing the covenant required by Section 13 of the Lien Law, and properly
        executed in proper form for recording so as to convey to Purchaser fee simple
        title to the Premises, subject only to the Permitted Exceptions.

       

      
        
          
          

        

        
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        8.2 A
          form
          TP-584 duly executed by Seller, a New York State Equalization Form (RP-5217)
          executed by Seller, and any other instruments, affidavits and/or tax returns
          as
          are customarily executed by the seller of an interest in real property
          in
          connection with the recording of a deed.

         

        8.3 The
          Service Contracts, which shall be initialed by Purchaser, to the extent
          same are
          assignable by Seller to Purchaser as set forth on Schedule "E".

         

      

      8.4 To
        the
        extent they are then in Seller’s possession and not posted at the Premises,
        certificates, licenses, permits, authorizations and approvals issued for
        or with
        respect to the Premises by governmental and quasi-governmental authorities
        having jurisdiction.

       

      8.5 An
        assignment to Purchaser, without recourse or warranty, of all of the interest
        of
        Seller in those Service Contracts, insurance policies, certificates, permits
        and
        other documents to be delivered to Purchaser at the Closing which are then
        in
        effect and are assignable by Seller to Purchaser.

       

      8.6 A
        Non-foreign affidavit with respect to Seller as required by IRC Section
        1445(b)(2) of the Internal Revenue Code of 1986, as amended (“Code”) and the
        regulations issued thereunder, and Purchaser shall not deduct or withhold
        any
        portion of the Purchase Price pursuant to Section 1445 of the Code.

       

      8.7 Such
        affidavits as the Title Company may reasonably require in order to omit from
        its
        title insurance policy all exceptions for judgments, bankruptcies or other
        returns against persons or entities whose names are the same or similar to
        Seller’s name; and other documents as the Title Company may reasonably
        require.

       

      8.8 Checks
        to
        the appropriate officers in payment of all applicable real property transfer
        taxes and copies of any required tax returns therefor executed by Seller,
        unless
        Seller elects to have Purchaser pay any of such taxes and credit Purchaser
        with
        the amount thereof.

       

      8.9 To
        the
        extent that they are then in Seller’s possession, copies of current maintenance
        records. Seller shall make all other Building files available to Purchaser
        for
        copying.

       

      8.10 A
        resolution of Seller authorizing the sale and delivery of the deed and setting
        forth facts showing that the transfer complies with all applicable
        law.

       

      8.11 Letter
        authorizing the Escrow Agent to disburse the Downpayment to Seller.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      
        8.12 Exclusive
          possession of the Premises in the condition required by this Contract,
          and keys
          for the Building and any fences and/or gates to the extent that same are
          in
          Seller’s possession. 

         

        8.13 A
          Bill of
          Sale for the Personal Property.

         

        SECTION
          9

        PURCHASER’S
          CLOSING OBLIGATIONS

        

        At
          the
          Closing, Purchaser shall:

         

        9.1 Deliver
          the balance of the Purchase Price, subject to adjustment as provided in
          this
          Contract, by immediately available federal funds transferred by wire to
          such
          account(s) in such bank(s) as Seller shall designate; or by certified or
          official bank check(s) to Seller and/or its designees, at Seller’s
          option.

         

      

      9.2 Deliver
        to Seller, a letter authorizing the Escrow Agent to disburse the Downpayment
        to
        Seller.

       

      9.3 Deliver
        to Seller the certification referred to in subsection 7.2A.

       

      9.4 Deliver
        to Seller a form 1099B prepared by Seller.

       

      9.5 Cause
        the
        deed to be recorded, duly complete all required real property transfer tax
        returns and cause all such returns and checks in payment of such taxes to
        be
        delivered to the Title Company for filing with the appropriate offices promptly
        after the Closing.

       

      9.6 Deliver
        to Seller such other documents as are required by this Contract to be delivered
        by Purchaser or as reasonably requested by Seller in order to effectuate
        the
        provisions of this Contract.

       

      9.7 Execute
        and deliver to Seller an assumption of Service Contracts to be assumed by
        Purchaser.

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
        

        SECTION
          10

        APPORTIONMENTS
          AND OTHER PAYMENTS

        

        10.1 The
          following apportionments shall be made between the parties at the Closing
          as of
          the close of business on the day immediately prior to the Closing
          Date:

         

        A.
          real
          estate taxes, water charges and sewer rents, if any, on the basis of the
          lien
          period for which assessed, except if there is a water meter on the Premises,
          apportionment at Closing shall be based on the actual reading, which shall
          be
          taken no more than thirty (30) days prior to Closing, subject to adjustment
          after Closing when the next reading is available;

         

        If
          the
          Closing shall occur before a new tax rate is fixed, the apportionment of
          taxes
          at the Closing shall be based upon the tax rate for the immediately preceding
          period applied to the latest assessed valuation. Installments for assessments
          noted against the Premises prior to Closing shall be the responsibility
          of the
          Seller;

         

        B. value
          of
          fuel stored on the Premises, if any, at the price then charged by Seller’s
          supplier, including any taxes, based upon a statement of such supplier
          dated
          within the week of Closing;

         

        C. charges
          under any transferrable Service Contracts; and

         

        D. any
          other
          sums required to be paid by either party to the other at the Closing pursuant
          to
          the provisions of this Contract. 

         

        10.2 In
          the
          event the net apportionment or payment is required to be made by Purchaser,
          the
          amount due shall be added to the payment due at the Closing and paid either
          by
          wire transfer or by certified check or official bank check; or, in the
          event the
          net apportionment or payment is required to be made by Seller, the amount
          due
          shall be applied, as a credit against the amount due at the Closing. Adjustments
          may be made by personal check up to $5,000.00.

         

      

      10.3 The
        parties hereto agree that any errors or omissions in computing apportionments
        at
        the Closing shall be corrected promptly after discovery, but in no event
        later
        than six (6) months after the Closing.

       

      10.4 Seller
        shall pay the New York State transfer tax on the deed of conveyance. Purchaser
        shall pay the following costs: any transfer taxes imposed upon a Purchaser
        by
        statute, if any, the title insurance premium and the services charged by
        the
        Title Company (if any), the cost of all recording charges in connection with
        the
        Closing other than charges and costs incurred to record documents in connection
        with the clearing of title by Seller pursuant to this Contract (which recording
        charges and costs and Title Company service fees shall be paid by Seller),
        except as otherwise provided herein.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
        10.5 Seller
          agrees to cooperate with Purchaser, at no cost to Seller, with regard to
          any
          request by Purchaser to take an assignment to its lender of any existing
          mortgages encumbering the Premises.

         

        10.6 The
          provisions of this Section 10 shall survive the Closing in accordance with
          the
          terms
          hereof.

         

        SECTION
          11

        TERMINATION
          AND REMEDIES

        

        11.1 In
          the
          event that on the Closing Date or after any permitted adjournment of the
          Closing
          Date, if Seller shall have been unable to perform any material covenant
          and/or
          agreement contained herein which is to be performed by Seller, or if any
          of the
          conditions precedent to Purchaser’s obligation to consummate the transactions
          contemplated hereby shall have failed to occur due to Seller's inability
          to
          perform same, Purchaser may, at its option (i) terminate this Contract
          by giving
          written notice of termination to Seller, in which event Purchaser shall
          (a)
          receive a refund of the Downpayment and (b) Purchaser shall receive from
          Seller
          the net costs of Purchaser's title search and survey fees, and thereafter
          neither party under this Contract shall have any further obligation to
          the
          other, or (ii) close title to the Premises without any abatement of the
          Purchase
          Price, in which event Purchaser shall be deemed to have waived any rights
          it may
          have had on account of such untruth, failure to perform or failure to occur.
          Notwithstanding the foregoing, if Seller defaults under the terms of the
          Contract, Purchaser shall have all rights and remedies available to it
          in law or
          equity, including specific performance.

         

        11.2 If
          Purchaser defaults and fails to cure said default within five (5) days
          after
          receipt of written notice, the entire damages which Seller will thereby
          sustain
          cannot be exactly determined; therefore, it is agreed that in the event
          of any
          default by Purchaser, all amounts paid by Purchaser as a deposit pursuant
          to
          this Contract shall be considered as liquidated damages for such default
          by
          Purchaser, and shall become the exclusive property of, and be permanently
          retained by Seller as Seller’s sole remedy and Purchaser’s sole obligation in
          any and all events. Seller shall retain such amounts as liquidated damages
          and
          no further rights or causes of action shall remain against Purchaser, nor
          shall
          Purchaser have any further rights under this Contract or otherwise, with
          respect
          to Seller, except that Purchaser and Seller shall continue to remain liable
          under the provisions of subsection 3.2 D and Section 12 hereof.

         

      

      SECTION
        12

      BROKER

      

      12.1 Seller
        and Purchaser each represent and warrant to the other that no broker, finder
        or
        similar persons other than CLEVA/PHILIPS and OXFORD & SIMPSON (collectively,
“Broker”) was involved in or connected with this transaction. Purchaser further
        represents that no other broker, finder or similar person other than
        CLEVA/PHILIPS brought the Premises to the attention of Purchaser. Purchaser
        and
        Seller each hereby indemnify and agree to defend, save and hold the other
        harmless of and from all loss, cost, liability and expense, including, without
        limitation, reasonable attorneys’ fees, which may be incurred by the other in
        connection with any claim for commission or other compensation asserted against
        such party, whether based on a claim of brokerage, or based on a contract,
        quasi-contract or tort, made by any person, firm or corporation other than
        Broker who claims to have dealt with the other party, i.e., Seller or Purchaser,
        as the case may be, in connection with this transaction. Seller shall pay
        Broker
        pursuant to a separate agreement between Seller and Broker, and shall hold
        Purchaser harmless from and indemnify it against any claims made by such
        Broker
        by reason of Seller's non-payment of such commission due Broker.

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      The
        representations and obligations under this Section 12 shall survive the Closing
        or, if the Closing does not occur for any reason, shall survive the termination
        of this Contract. 

       

      

      SECTION
        13

      NOTICES

      

      13.1 Any
        notice required to be given hereunder shall be given in writing by depositing
        such notice in a post-paid wrapper, in an official depository under the
        exclusive care and custody of the United States Postal Service within New
        York
        State, or by Express Mail, Federal Express or messenger service (with proper
        receipt therefor), addressed to the party at the address hereinabove set
        forth
        with a copy of any such notice by a similar method of delivery or by fax
        transmission (with proper receipt therefor and a copy sent by mail)
        simultaneously to the attorney for such party as follows:

       

      
        	
                IF
                  TO SELLER:

              	
                Embassy
                  Industries, Inc.

                445
                  Broad Hollow Road, Suite 100

                Melville,
                  New York 1747

                Attention:
                  Richard Horowitz 

                Tel.
                  (631) 694-9800:

              
	 	 
	
                WITH
                  A COPY:

              	
                Certilman
                  Balin Adler & Hyman, LLP

                90
                  Merrick Avenue

                East
                  Meadow, New York 11554

                Attention:
                  Jodi S. Hoffman, Esq.

                Tel.
                  (516) 296-7058

                Fax
                  (516) 296-7111

                E-Mail:
                  jhoffman@certilmanbalin.com

              
	 	 
	
                 IF
                  TO PURCHASER: 

              	
                Tell
                  Realty LLC

                c/o
                  Sam Tell and Son, Inc.

                58-51
                  Maspeth Avenue

                Maspeth,
                  New York 11378

                Tel.
                  (718) 386-0707

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      
        	
                WITH
                  A COPY:

              	
                Glen
                  Edelman, Esq.

                Mandell,
                  Mandell, Okin & Edelman

                3000
                  Marcus Avenue

                New
                  Hyde Park, New York 11040

                Tel.
                  (516) 354-2800

                Fax
                  (516) 354-2803

                E-mail:
                  gedelman@mmoelaw.com

              

      

      

          Any
        notice
        hereunder may be given by the attorney for a party and shall have the same
        force
        and effect as if given by the party. Either party may by notice change the
        address at which notices are to be given hereunder. Notices shall be deemed
        given upon receipt or first refusal thereof.

      

      SECTION
        14

      CONDEMNATION
        AND CASUALTY

      

      14.1 In
        the
        event of condemnation of the Premises or any portion thereof, between the
        date
        hereof and the Closing Date, which would materially interfere with or adversely
        affect the Premises or Purchaser's intended use, Purchaser shall have the
        option
        to terminate this Contract by written notice to Seller, in which event the
        sole
        liability of Seller shall be to cause the Escrow Agent to refund the Downpayment
        to Purchaser. Upon such reimbursement, this Contract shall be null and void
        and
        the parties hereto shall be relieved of all further obligations and liabilities
        other than any arising under subsection 3.2 and Section 12 hereof. In the
        event
        there is a condemnation and Purchaser does not elect to terminate this Contract,
        Seller shall assign to Purchaser any condemnation award it may be entitled
        to
        receive and Seller and Purchaser shall proceed with the transaction contemplated
        herein in accordance with the terms hereof.

       

      14.2 With
        respect to a casualty at the Premises, the provisions of Section 5-1311 of
        the
        General Obligations Law shall apply to the sale and purchase provided for
        in the
        Contract.

       

      

      SECTION
        15

      ESCROW
        OF DOWNPAYMENT

      

      15.1 Escrow
        Agent shall hold the proceeds of the checks delivered to Escrow Agent for
        the
        Downpayment, in escrow, in an interest-bearing account maintained at M&T
        Bank. 350 Park Avenue, New York, New York.

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      15.2 The
        Downpayment shall be held by the Escrow Agent until the Closing or sooner
        termination of this Contract and Escrow Agent shall pay over the interest
        or
        income earned thereon, if any, to the party entitled to the Downpayment.
        The
        party receiving such interest or income shall pay any income taxes due thereon.
        If for any reason the Closing does not occur pursuant to the provisions of
        this
        Contract and either party makes a written demand upon Escrow Agent, in the
        manner required for notices, for payment of the Downpayment, then Escrow
        Agent
        shall give written notice, in accordance with the provisions of subsection
        13.1
        to the other party of such demand. If Escrow Agent does not receive a written
        objection from the other party to the proposed payment of the Downpayment
        pursuant to the aforesaid demand within ten (10) business days after the
        delivery of such notice by Escrow Agent, Escrow Agent is hereby authorized
        to
        make such payment in accordance with the aforesaid demand. If Escrow Agent
        receives written objection from the other party to the proposed payment of
        the
        Downpayment pursuant to the aforesaid demand within such ten (10) business
        day
        period or if for any other reason Escrow Agent in good faith shall elect
        not to
        make such payment, Escrow Agent shall continue to hold the Downpayment until
        otherwise directed by written instructions from Seller and Purchaser or a
        final
        judgment of a court of competent jurisdiction. Escrow Agent, however, shall
        have
        the right at anytime to deposit the Downpayment with the Clerk of any Court
        of
        competent jurisdiction in the State of New York, with a venue of Suffolk
        County
        or Nassau County, and Escrow Agent shall give written notice of such deposit
        to
        the Seller and the Purchaser, and upon such deposit being made, Escrow Agent
        shall be discharged from all obligations and responsibilities hereunder.
        The
        parties acknowledge that Escrow Agent is acting solely as a stakeholder at
        their
        request and for their convenience, that Escrow Agent may act upon any writing
        believed by it in good faith to be genuine and to be signed and presented
        by the
        proper person and the Escrow Agent shall not be deemed to be the agent of
        either
        of the parties, and that the Escrow Agent shall not be liable to either of
        the
        parties for any act or omission on its part unless taken or suffered in bad
        faith, or in willful disregard of this Contact or involving gross negligence.
        Seller and Purchaser shall jointly and severally indemnify, defend and hold
        Escrow Agent harmless from and against all costs, claims and expenses, including
        reasonable attorneys’ fees, incurred in connection with the performance of
        Escrow Agent’s duties hereunder, except with respect to actions or omissions
        taken or suffered by Escrow Agent in bad faith, in willful disregard of this
        Contract or involving gross negligence. As between Purchaser and Seller,
        the
        losing party shall pay all such costs, claims, expenses and fees. If the
        Downpayment shall not earn any interest, or no interest be paid thereon by
        reason of the withdrawal of the proceeds, or part thereof, under the provisions
        of this Contract or before interest shall be earned or credited, or during
        any
        period of reasonable delay in opening an account, Escrow Agent shall not
        be
        liable by reason thereof. Notwithstanding anything contained herein to the
        contrary, Escrow Agent may represent Seller as Seller’s counsel in any action,
        suit or other proceeding between Seller and Purchaser or in which Seller
        and
        Purchaser may be involved. Escrow Agent shall have no duties or responsibilities
        except as set forth herein. Escrow Agent shall not be bound by any modification
        of the Contract unless the same is in writing and signed by Purchaser and
        Seller
        and, if Escrow Agent’s duties hereunder are not affected, unless Escrow Agent
        shall have given prior written consent thereto. The provisions relating to
        the
        indemnification of Escrow Agent shall survive the Closing or, if the Closing
        does not occur for any reason, shall survive the termination of this
        Contract.

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      SECTION
        16

      INTENTIONALLY
        DELETED

      

       

      SECTION
        17

      CONDITION
        OF PREMISES

      

      17.1 A.
        Purchaser acknowledges that it has fully examined the Premises or will, if
        applicable, have fully examined the Premises during the Inspection Period
        and is
        purchasing the Premises in an “as is” condition “with all faults” and
        specifically and expressly without any warranties, representations or
        guarantees, from or on behalf of the Seller and its agents, other than as
        set
        forth elsewhere in this Contract. Purchaser has not relied, and is not relying,
        upon any information, document, sales brochures or other literature, maps
        or
        sketches, projection, proforma, statement, representation, guarantee or warranty
        (whether express or implied, or oral or written, or material or immaterial)
        that
        may have been given by or made by or on behalf of the Seller, other than
        as set
        forth elsewhere in this Contract.

       

      B. Purchaser
        hereby acknowledges that it shall not be entitled to, and should not, rely
        on
        Seller or its agents as to: (i) the quality, nature, adequacy or physical
        condition of the Premises including, but not limited to, the structural
        elements, foundation, roof, appurtenances, access, landscaping, parking
        facilities or the electrical, mechanical, HVAC, plumbing, sewerage or utility
        systems, facilities or appliances at the Premises, if any; (ii) the quality,
        existence, nature, adequacy or physical condition of soils, sub-surface support
        or ground water at the Premises; (iii) the existence, quality, nature, adequacy
        or physical condition of any utilities serving the Premises; (iv) the existence,
        quality, nature or adequacy of any ability to access utilities, including,
        but
        not limited to, electricity, natural gas, water and sewer; (v) the existence,
        quality, nature, adequacy, physical condition, or ability to access any rights
        of way or roads of any kind; (vi) the development potential of the Premises,
        its
        habitability, merchantability or fitness, suitability or adequacy of the
        Premises for any particular purpose; (vii) the zoning classification, use
        or
        other legal status of the Premises; (viii) the existence, applicability,
        quality
        or nature of any setback requirements; (ix) the Premises’ or its operations’
compliance with any applicable codes, laws, regulations, statutes, ordinances,
        covenants, conditions or restrictions or any governmental or quasi-governmental
        entity or of any other person or entity; (x) the quality of any labor or
        materials relating in any way to the Premises; or (xi) compliance with any
        environmental or occupational protection, pollution, subdivision or land
        use
        laws, rules, regulations, orders or requirements including, but not limited
        to,
        those pertaining to the handling, generating, treating, storing or disposing
        of
        any hazardous waste, material or substance. The provisions of this paragraph
        shall survive the closing.

       

      C. Notwithstanding
        anything contained herein to the contrary, including Paragraph 17.1A and
        B
        above, the Premises shall be delivered vacant and broom clean at Closing
        with
        all systems, including, but not limited to, electrical, heating, plumbing,
        air
        conditioning, if any, in working order, and the roof shall be delivered free
        of
        leaks.

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      SECTION
        18

      ASSIGNMENT
        OF CONTRACT

      

      18.1 Purchaser
        shall not assign this Contract or the rights and obligations hereunder without
        the prior written consent of Seller. Provided such consent is given, no such
        assignment of Purchaser’s interest in this Contract, however, shall be valid or
        binding upon Seller unless and until (a) a duplicate original thereof, in
        form
        satisfactory to Seller, assigning to the assignee all of Purchaser’s right,
        title and interest in this Contract, including the Downpayment, shall be
        delivered to Seller and (b) an agreement, in form reasonably satisfactory
        to
        Seller, in which the assignee shall assume and agree to perform and be bound
        by
        all of the terms, covenants and conditions of this Contract, shall be delivered
        to Seller. The aforesaid documents shall be delivered to Seller within three
        (3)
        days of such assignment. Notwithstanding the aforesaid assignment, the
        obligations of Purchaser named herein under this Contract shall not be
        discharged, released or impaired by such assignment. For purposes of this
        paragraph, any transfer of a majority of the beneficial ownership of the
        Purchaser entity shall be deemed an assignment prohibited
        hereunder.

       

      Notwithstanding
        the foregoing, Purchaser shall have the right to assign this Contract to
        another
        entity with one or more of the same principal(s) as Sam Tell and Sons,
        Inc.

      

      

      SECTION
        19

      TAX
        DEFERRED EXCHANGE

      

      19.1 Seller
        and Purchaser may desire to exchange, for other property of like kind and
        qualifying use within the meaning of Section 1031 of the Internal Revenue
        Code
        of 1986, as amended and the Regulations promulgated thereunder, fee title
        in the
        property which is the subject of this Contract. Seller and Purchaser expressly
        reserve the right to assign its rights, but not its obligations, hereunder
        to a
        Qualified Intermediary as provided in IRC Reg. 1.1031(k)-1(g)(4) on or before
        the Closing Date. Seller and Purchaser shall cooperate with each other in
        connection therewith.

       

      

      SECTION
        20

      MISCELLANEOUS

      

      20.1 If
        the
        provisions of any schedule or rider to this Contract are inconsistent with
        the
        provisions of this Contract, the provisions of such schedule or rider shall
        prevail.

       

      20.2 The
        Section headings are inserted for convenience of reference only and in no
        way
        define, describe or limit the scope or intent of this Contract or any of
        the
        provisions hereof. 

       

      20.3 This
        Contract embodies and constitutes the entire understanding between the parties
        with respect to the transaction contemplated herein, and all prior agreements,
        understandings, representations and statements, oral or written, are merged
        into
        this Contract. Neither this Contract nor any provisions hereof may be waived,
        modified, amended, discharged or terminated except by an instrument signed
        by
        the party against whom the enforcement of such waiver, modification, amendment,
        discharge or termination is sought, and then only to the extent set forth
        in
        such instrument.

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      20.4 The
        acceptance of a deed by Purchaser shall be deemed to be a full performance
        and
        discharge of every agreement and obligation on the part of Seller to be
        performed pursuant to the provisions of this Contract, except those, if any,
        which are herein specifically stated to survive the Closing. No representation,
        warranty or obligation of either party to this Contract shall survive the
        delivery of such deed except as otherwise expressly set forth in this
        Contract.

       

      20.5 This
        Contract and the terms and provisions hereof shall inure to the benefit of
        and
        be binding upon the parties hereto and their respective heirs, executors,
        personal representatives, successors and permitted assigns.

       

      20.6 This
        Contract shall not be binding or effective until properly executed and delivered
        by Seller and Purchaser to each other.

       

      20.7 In
        the
        event of any dispute with respect to the reasonableness of any failure or
        refusal of Seller to grant its consent or approval or to act reasonably in
        connection with any provisions of this Contract where Seller has agreed not
        to
        unreasonably withhold its consent or approval or has agreed to act in a
        reasonable manner, Purchaser may, as its exclusive remedy, seek specific
        performance of such consent or approval or act. In no event, however, will
        Seller be liable for money damages whatsoever by reason of such
        actions.

       

      20.8 Seller
        represents that its Federal Employer Identification Number is 11-2111421;
        and
        Purchaser represents that its Federal Employer Identification Number is
        pending.

       

      20.9 In
        the
        event any portion of this Contract shall be declared by any court of competent
        jurisdiction to be invalid, illegal or unenforceable, such portion shall
        be
        deemed severed from this Contract and the remaining parts hereof shall remain
        in
        full force and effect, as fully as though such invalid, illegal or unenforceable
        portion had never been part of this Contract, provided that no material rights
        of either party shall be impaired.

       

      20.10 As
        used
        in this Contract, the masculine shall include the feminine and neuter, the
        singular shall include the plural and the plural shall include the singular,
        as
        the context may require.

       

      20.11 The
        parties agree that this Contract shall be governed by, and construed in
        accordance with the laws of the State of New York.

       

      20.12 This
        Contract may be executed in any number of counterparts which together shall
        constitute the agreement of the parties. 

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      
        20.13 Purchaser
          shall have a vendee’s lien against the Premises for the amount of the
          Downpayment, but such lien shall not continue after default by Purchaser
          under
          this Contract. Purchaser agrees that it shall not record this Contract
          or any
          memorandum or assignment thereof. Should Purchaser violate the provisions
          of the
          foregoing sentence, this Contract, at Seller’s option, shall become null and
          void, whereupon all rights of the Purchaser shall cease and terminate and
          Seller
          shall have the right to retain the Downpayment as and for liquidated damages
          on
          account of such default by Purchaser.

         

      

      20.14 Purchaser
        and Seller hereby waive trial by jury in any action, proceeding or counterclaim
        arising out of this Contract, provided such waiver is not prohibited by any
        laws
        of the State of New York. Any action or proceeding brought by either party
        hereto against the other, directly or indirectly, arising out of this Contract,
        shall be instituted in a court in Suffolk County and all motions in any such
        action shall be made in Suffolk County. This paragraph shall survive the
        delivery of the Deed.

       

      20.15 Purchaser
        shall accept unacknowledged receipts, checks, letters, statements or other
        proof
        as to the amount of any liens on the property in the event that said liens
        are
        less than the record amounts and similar proof will be acceptable as to the
        payment of such liens, provided that the Title Company omits any exception
        as to
        such liens from Purchaser’s title policy. 

       

      20.16 No
        failure or delay of either party in the exercise of any right given to such
        party hereunder or the waiver by any party of any condition hereunder for
        its
        benefit (unless the time specified herein for exercise of such right, or
        satisfaction of such condition, has expired) shall constitute a waiver of
        any
        other or further right nor shall any single or partial exercise of any right
        preclude other or further exercise thereof or any other right. The waiver
        of any
        breach hereunder shall not be deemed to be a waiver of any other or any
        subsequent breach hereof.

       

      20.17 This
        Contract is completely non-recourse as to Seller, and as such, only Seller’s
        interest in the Premises shall be subject to execution, attachment or any
        other
        claim or proceeding on account of any obligation of Seller
        hereunder.

       

      20.18 The
        personal property referred to in this Contract shall be deemed conveyed by
        the
        Deed, and no part of the Purchase Price shall be deemed allocated to such
        personal property.

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      20.19 IDA
        Contingency.
        This
        Contract is subject to and conditioned upon the adoption by the Town of Babylon
        Industrial Development Agency (the "Town IDA") of an Inducement Resolution
        evidencing the intention of the Town IDA to provide certain financial assistance
        with respect to the Premises. Purchaser shall promptly submit its application
        for the Inducement Resolution and diligently pursue same during the
        Investigation Period. In the event Purchaser has not received the Inducement
        Resolution by the last day of the Investigation Period, Purchaser may terminate
        this Contract by notifying Seller of same before the Investigation Period
        Notice
        Date, time being "of the essence". In such event, the sole liability of Seller
        shall be to cause the Escrow Agent to refund the Downpayment within ten (10)
        days after receipt of Purchaser's cancellation notice. Upon reimbursement,
        this
        Contract shall be null and void and the parties shall be relieved of all
        further
        obligations and liabilities, other than any arising under Subsection 3.2D
        and
        Section 12 hereof.

       

      

       

      BALANCE
        OF PAGE INTENTIONALLY LEFT BLANK

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, the
        parties hereto have executed this Contract as of the date first above
        written.

      

      SELLER:

      

      EMBASSY
        INDUSTRIES, INC.

       

      BY: /s/
        Joseph A. Molino, Jr.      

      Name:
        Joseph A. Molino, Jr.

      Title:
        Vice President

       

      

      PURCHASER:

       

      TELL
        REALTY LLC

      

      BY: /s/
        Marc Tell          

      Name:
        Marc Tell

      Title:
        Managing Partner

      

      

      

        Read
          and
          Agreed:

        For
          Purposes of §§ 2.2, 2.3 and 15

        

        CERTILMAN
          BALIN ADLER & HYMAN, LLP

        

        By: /s/
          Jodi Hoffman        

        Escrow
          Agent

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

      

      SCHEDULE
        A

      

      LEGAL
        DESCRIPTION

       

      SEE
        ANNEXED

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        SCHEDULE
          A

         

        

        ALL
          THAT
          CERTAIN PLOT, PIECE OR PARCEL OF LAND, SITUATE, LYING AND BEING AT PINELAWN,
          EAST FARMINGDALE, TOWN OF BABYLON, COUNTY OF SUFFOLK AND STATE OF NEW YORK,
          ON
          THE EASTERLY SIDE OF SMITH STREET AND MORE PARTICULARLY BOUNDED AND DESCRIBED
          AS
          FOLLOWS:

        

        BEGINNING
          AT A POINT ON THE EASTERLY SIDE OF SMITH STREET, DISTANT 788.25 FEET
          NORTHEASTERLY AS MEASURED ALONG THE SOUTHERLY AND THEN EASTERLY SIDE OF
          SMITH
          STREET FROM THE EXTREME NORTHEASTERLY END OF A LINE HAVING LENGTH OF 28.28
          FEET,
          WHICH SAID LINE CONNECTS THE SOUTHERLY SIDE OF SMITH STREET AND THE EASTERLY
          SIDE OF NEW HIGHWAY, WHICH SAID POINT OF BEGINNING IS ALSO THE SOUTHWESTERLY
          CORNER OF THE PREMISES HEREIN DESCRIBED;

        

        RUNNING
          THENCE ALONG THE SAID EASTERLY SIDE OF SMITH STREET IN AN NORTHERLY DIRECTION
          AND ALONG A CURVE BEARING TO THE LEFT HAVING A RADIUS OF 110 FEET AN ARC
          DISTANCE OF 63.04 FEET TO A POINT;

        

        THENCE
          STILL ALONG THE EASTERLY SIDE OF SMITH STREET, NORTH 4 DEGREES 54 MINUTES
          30
          SECONDS EAST, 240.49 FEET TO A POINT;

        

        THENCE
          SOUTH 85 DEGREES 05 MINUTES 30 SECONDS EAST, 575.83 FEET TO A
          POINT;

        

        THENCE
          SOUTH 37 DEGREES 12 MINUTES 05 SECONDS WEST, 169.81 FEET TO A
          POINT;

        

        THENCE
          SOUTH 02 DEGREES 08 MINUTES 10 SECONDS WEST, 200.18 FEET TO A

        POINT;

        

        THENCE
          NORTH 85 DEGREES 27 MINUTES WEST, 434.90 FEET TO A POINT;

        

        THENCE
          NORTH 54 DEGREES 20 MINUTES 56 SECONDS WEST, 90.14 FEET TO A POINT IN THE
          EASTERLY SIDE OF SMITH STREET, THE POINT OR PLACE OF BEGINNING.

        

        FOR
          INFORMATION ONLY: DISTRICT 0100 SECTION 005.00 BLOCK 01.00 LOT
          011.000

        
          	Having
                  Street Address:	 

                  300
                    Smith St.

                  Farmingdale,
                    NY

                

        

         

      

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        B

      

      PERSONAL
        PROPERTY

      

      

      

      NONE

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        C

      

      PERMITTED
        EXCEPTIONS

      

      

      a.
         Zoning
        and subdivision laws, regulations and ordinances and landmark, historic or
        wetlands designation.

       

      b.
         State
        of
        facts shown on the survey of the Premises made by George R. Haubenreich,
        dated
        March 27, 1996 and updated December 27, 2002, and any additional facts as
        would
        be shown by an updated survey provided title is not rendered unmarketable
        at
        regular rates.

       

      c.
         General
        real estate taxes and special assessments, water and sewer charges and all
        other
        liens and charges of every description which are a lien but are not then
        due and
        payable or delinquent or are the subject of apportionment pursuant to Section
        10
        of this Contract.

       

      d.
         Standard
        printed exceptions contained in the form jacket of fee title policy then
        issued
        by the title insurance company insuring the fee title with regard to taxes
        or
        assessments which are not shown as existing liens by the records of any taxing
        authority that levies taxes or assessments on real property or by the public
        records.

       

      e. Non-material
        variations between fences, walls, hedges and the record lines of the Premises
        of
        up to one (1) foot.

       

      f. Rights
        of
        utilities, if any, to maintain and operate lines, wires, cables, poles and
        distribution boxes in, over and upon said Premises for service to the
        Premises.

       

      g. Covenants,
        easements, agreements, declarations, licenses and reservations presently
        of
        record, if any, provided the same do not prohibit the present use and
        maintenance of existing structures on the Premises.

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        D

      

      HAZARDOUS
        SUBSTANCES

      

      

      1. "No
        Further Action" Letter from the County of Suffolk Department of Health Services
        dated May 30, 2006.

       

      2. New
        York
        State Department of Environmental Conservation Letter dated June 16,
        2006.

       

      3. Clarification
        Letter from County of Suffolk Department of Health Services dated June 26,
        2006.

       

      4. E-mail
        correspondence from New York State Department of Environmental Conservation
        dated August 11, 2006 removing the Premises from the database as a source
        of
        contamination.

      
        
           

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        E

      

      SERVICE
        CONTRACTS

      

      

      1. ADT
        Fire
        and Security Alarm Service

       

      2. Phone
        service - designated lines for fire alarm and security alarm.QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.1.9    
    

 
 

TENTH
  AMENDMENT
  TO
  AMENDED AND RESTATED
  LIMITED PARTNERSHIP AGREEMENT
  OF
  THE MACERICH PARTNERSHIP, L.P.    
    

 
 

Dated as of October 26, 2006    
    

        THIS TENTH AMENDMENT (the "Amendment") TO THE AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT DATED AS OF MARCH
16, 1994, AMENDED AS OF AUGUST 14, 1995, FURTHER AMENDED AS OF JUNE 27, 1997, FURTHER AMENDED AS OF NOVEMBER 16, 1997, FURTHER AMENDED AS OF FEBRUARY 25, 1998, FURTHER AMENDED AS OF FEBRUARY 26, 1998,
FURTHER AMENDED AS OF JUNE 17, 1998, FURTHER AMENDED AS OF DECEMBER 23, 1998, FURTHER AMENDED AS OF NOVEMBER 9, 2000, AND FURTHER AMENDED AS OF JULY 26, 2002 (the
"Agreement") OF THE MACERICH PARTNERSHIP, L.P. (the "Partnership"), dated as of October 26, 2006,
is hereby adopted by The Macerich Company, a Maryland corporation (the "Company"), as the general partner of The Macerich Partnership, L.P., a Delaware
limited partnership. For ease of reference, capitalized terms used herein and not otherwise defined have the meanings assigned to them in the Agreement. 

        WHEREAS,
the General Partner desires to establish and set forth the terms of a new class of Partnership Interests designated as LTIP Units; 

        WHEREAS,
the LTIP Units shall have the terms set forth in Exhibit B to this Amendment; 

        WHEREAS,
Section 3.3(a)(i) of the Agreement authorizes the General Partner to cause the Partnership to issue additional interests in the Partnership in one or more classes,
or one or more series of any of such classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties
senior to those of the Limited Partners, all as shall be determined by the General Partner in its sole and absolute discretion and without the approval of any of the Limited Partners; 

        WHEREAS,
Section 12.1(b)(iii) of the Agreement provides that the General Partner has the power, without the consent of the Limited Partners of the Partnership, to amend the
Agreement as may be required to facilitate or implement setting forth the designations, rights, powers, duties, and preferences of the holders of any additional interests in the Partnership issued
pursuant to Section 3.3; and 

        WHEREAS,
the General Partner has made the determination pursuant to Section 12.1(b)(iii) of the Agreement that consent of the Limited Partners of the Partnership is not
required with respect to the matters set forth in this Amendment. 

        NOW,
THEREFORE, the General Partner hereby amends the Agreement as follows: 

        1.     Section 2.2
of the Agreement is hereby supplemented by adding the following paragraphs (f), (g) and (h) to the end thereof: 

        (f)    Reserved.

        (g)   Reserved.

        (h)   Issuance of LTIP Units. From and after the date hereof the Partnership shall be authorized to issue LTIP Units. From time
to time the General Partner may issue LTIP Units to Persons providing services to or for the benefit of the Partnership. LTIP Units are intended to 

 

qualify
as profits interests in the Partnership. LTIP Units shall have the terms set forth in Exhibit B to the Tenth Amendment to this Agreement. 

        2.     New
Section 4.1A of the Agreement is hereby added to read as follows: 

        For
purposes of the foregoing calculations of Section 4.1, issued and outstanding LTIP Units with an associated LTIP Unit Distribution Participation Date that falls on or before
the Partnership Record Date for a particular distribution shall be treated as outstanding Common Units. LTIP Units for which the LTIP Unit Distribution Participation Date has not occurred as of the
Partnership Record Date for a particular distribution shall not be entitled to any of such distribution. 

        3.     In
making distributions pursuant to Section 4.1 of the Agreement and allocations pursuant to Sections 2.1 and 2.2 of the Allocations Exhibit, the General Partner
of the Partnership shall take into account the provisions of Exhibit B to the Tenth Amendment to this Agreement. 

        4.     Section 5.5
of the Partnership Agreement is amended by designating the existing text of Section 5.5 as Section 5.5(a), and by appending the following
new Section 5.5(b): 

        (b)   To
the extent provided for in Regulations, revenue rulings, revenue procedures and/or other IRS guidance issued after the date hereof, the Partnership is hereby
authorized to, and at the direction of the General Partner shall, elect a safe harbor under which the fair market value of any Partnership Interests issued after the effective date of such Regulations
(or other guidance) will be treated as equal to the liquidation value of such Partnership Interests (i.e., a value equal to the total amount that would be distributed with respect to such interests if
the Partnership sold all of its assets for their fair market value immediately after the issuance of such Partnership Interests, satisfied its liabilities (excluding any non-recourse
liabilities to the extent the balance of such liabilities exceed the fair market value of the assets that secure them) and distributed the net proceeds to the Partners under the terms of this
Agreement). In the event that the Partnership makes a safe harbor election as described in the preceding sentence, each Partner hereby agrees to comply with all safe harbor requirements with respect
to transfers of such Partnership Interests while the safe harbor election remains effective. 

        5.     Article IX
of the Agreement is hereby supplemented by adding the following paragraphs (f), (g), (h) and (i) at the end of Section 9.1 thereof: 

        (f)    Reserved. 

        (g)   Reserved. 

        (h)   Reserved. 

        (i)    Holders
of LTIP Units shall not be entitled to the Redemption Rights provided for in Section 9.1 of this Agreement, unless and until such LTIP Units have been
converted into Common Units (or any other class or series of Partnership Units entitled to such Redemption Rights). Notwithstanding the foregoing, and except as otherwise permitted by the award, plan
or other agreement pursuant to which an LTIP Unit was issued, the Redemption Rights shall not be exercisable with respect to any Common Unit issued upon conversion of an LTIP Unit until two years
after the date on which the LTIP Unit was issued, provided however, that the foregoing restriction shall not apply if the right of Redemption is exercised by an LTIP Unit holder in connection with a
transaction that falls within the definition of a "change of control" under the agreement or agreements pursuant to which the LTIP Units were issued to such holder. 

2

 

        6.     The
following definitions contained in the Glossary of Defined Terms of the Agreement are amended as follows: 

        (a)   The
definition of the term "Common Unit" contained in the Glossary of Defined Terms of the Agreement is hereby amended and restated in its entirety as follows: 

"Common
Unit" shall mean Partnership Interests other than Preferred Units, Series A Preferred Units, Series B Preferred Units, Series D Preferred Units, Series N Preferred
Units, Series P Preferred Units and LTIP Units. 

        (b)   The
definition of the term "Partnership Interest" contained in the Glossary of Defined Terms of the Agreement is hereby amended and restated in its entirety as follows: 

"Partnership
Interest" shall mean an ownership interest of a Partner in the Partnership from time to time, including, as applicable, such Partner's Common Units, Preferred Units, Series A
Preferred Units, Series B Preferred Units, Series D Preferred Units, Series N Preferred Units, Series P Preferred Units, LTIP Units and Percentage Interest and such
Partner's Capital Account, and any and all other benefits to which the holder of such Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person
to comply with the terms of this Agreement. 

        (c)   The
definition of the term "Partnership Unit" contained in the Glossary of Defined Terms of the Agreement is hereby amended and restated in its entirety as follows: 

"Partnership
Unit" shall mean a Common Unit, Preferred Unit, Series A Preferred Unit, Series B Preferred Unit, Series D Preferred Unit, Series N Preferred Unit,
Series P Preferred Unit or LTIP Unit and shall constitute a fractional, undivided share of the Partnership Interests corresponding to that particular class of Units. 

        (d)   The
definition of the term "Percentage Interest" contained in the Glossary of Defined Terms of the Agreement is hereby amended and restated in its entirety as follows: 

"Percentage
Interest" shall mean, with respect to any Partner, the percentage ownership interest of such Partner in the Partnership from time to time, represented by a fraction (expressed as a
percentage), the numerator of which is the number of Partnership Units then owned by such Partner, and the denominator of which is the total number of Partnership Units then owned by all of the
Partners. For purposes of calculations of Percentage Interests at any time, the Percentage Interest of any LTIP Unit Limited Partner and the total number of Partnership Units shall exclude any LTIP
Units for which the LTIP Unit Distribution Participation Date has not occurred as of such time. 

        7.     The
Glossary of Defined Terms of the Agreement is amended by inserting the following definitions in alphabetical order: 

"2006 LTIP Plan" has the meaning set forth in Section 3.B of Exhibit B to the Tenth Amendment to this Agreement. 

"Book-Up Target" has the meaning set forth in Section 3.10 of the Allocations Exhibit. 

"Common Unit Economic Balance" has the meaning set forth in Section 3.10 of the Allocations Exhibit. 

"Constituent Person" has the meaning set forth in Section 7.G of Exhibit B to the Tenth Amendment to this Agreement. 

"Economic Capital Account Balance" has the meaning set forth in Section 3.10 of the Allocations Exhibit. 

3

 

"Ineligible Unit" has the meaning set forth in Section 3.10 of the Allocations Exhibit. 

"Liquidating Gains" has the meaning set forth in Section 3.10 of the Allocations Exhibit. 

"Liquidating Losses" has the meaning set forth in Section 3.10 of the Allocations Exhibit. 

"LTIP Unit Adjustment Events" has the meaning set forth in Section 5 of Exhibit B to the Tenth Amendment to this Agreement. 

"LTIP Unit Conversion Date" has the meaning set forth in Section 7.C of Exhibit B to the Tenth Amendment to this Agreement. 

"LTIP Unit Conversion Notice" has the meaning set forth in Section 7.C of Exhibit B to the Tenth Amendment to this Agreement. 

"LTIP Unit Conversion Right" has the meaning set forth in Section 7.A of Exhibit B to the Tenth Amendment to this Agreement. 

"LTIP Unit Distribution Participation Date" has the meaning set forth in Section 3.B of Exhibit B to the Tenth Amendment to this
Agreement. 

"LTIP Unit Distribution Payment Date" has the meaning set forth in Section 3.A of Exhibit B to the Tenth Amendment to this Agreement. 

"LTIP Unit Forced Conversion" has the meaning set forth in Section 7.D of Exhibit B to the Tenth Amendment to this Agreement. 

"LTIP Unit Forced Conversion Notice" has the meaning set forth in Section 7.D of Exhibit B to the Tenth Amendment to this Agreement. 

"LTIP Unit Limited Partner" means any Person holding LTIP Units, and named as a LTIP Unit Limited Partner in Exhibit A attached hereto, as such
Exhibit or the Partnership's records may be amended from time to time. 

"LTIP Units" means the Partnership Units designated as such having the rights, powers, privileges, restrictions, qualifications and limitations set
forth in Exhibit B to the Tenth Amendment to this Agreement. 

"Partnership Record Date" means the record date established by the General Partner for the distribution of cash pursuant to Section 4.1 hereof,
which record date shall be the same as the record date established by the General Partner for the payment of dividends to holders of Common Stock of the General Partner on account of some or all of
the General Partner's share of such distribution by the Partnership. 

"Series N Preferred Units" shall mean Partnership Units so designated by the General Partner and reserved for future issuance in connection with
the partnership units of MACWH, L.P. 

"Series P Preferred Units" shall mean Partnership Units so designated by the General Partner and reserved for future issuance in connection with
the partnership units of MACWH, L.P. 

"Target Balance" has the meaning set forth in Section 3.10 of the Allocations Exhibit. 

"Transaction" has the meaning set forth in Section 7.G of Exhibit B to the Tenth Amendment to this Agreement. 

"Unvested LTIP Units" has the meaning set forth in Section 2.A of Exhibit B to the Tenth Amendment to this Agreement. 

"Vested LTIP Units" has the meaning set forth in Section 2.A of Exhibit B to the Tenth Amendment to this Agreement. 

4

 

"Vesting Agreement" has the meaning set forth in Section 2.A of Exhibit B to the Tenth Amendment to this Agreement. 

        8.     The
term "Profit or Losses" contained in the Allocations Exhibit is hereby amended to read "Net Income or Net Losses" in each place it is located. 

        9.     Section 1.3(b)
of the Allocations Exhibit is hereby amended and restated in its entirety as follows: 

        (b)   Immediately
prior to the times listed below, the Gross Asset Values of all Partnership assets shall be adjusted to equal their respective gross fair market values, as
determined by the General Partner using such reasonable method of valuation as it may adopt: 

          (i)  the
acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution; 

         (ii)  the
acquisition of a more than de minimis additional interest in the Partnership by any new or existing Partner as consideration for the provision of services to or for
the benefit of the Partnership in a partner capacity or in anticipation of becoming a partner; provided, however, at the time of grant of any LTIP Unit, the Gross Asset Values of all Partnership
assets shall be adjusted pursuant to this Section 1.3(b); 

        (iii)  the
distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership; and 

        (iv)  the
liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); 

provided however that adjustments pursuant to clauses (i), (ii) and (iii) above shall be made only if the General Partner determines that
such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership. 

        10.   Section 2.1A
is added to the Allocations Exhibit as follows: 

        For
purposes of determining allocations of Net Income pursuant to Section 2.1, to the extent that the LTIP Unit Distribution Participation Date with respect to an LTIP Unit has
occurred, such LTIP Unit shall be treated as a Common Unit. 

        11.   Section 2.2A
is added to the Allocations Exhibit as follows: 

        For
purposes of determining allocations of Net Loss pursuant to Section 2.2, to the extent that the LTIP Unit Distribution Participation Date with respect to an LTIP Unit has
occurred, such LTIP Unit shall be treated as a Common Unit. 

        12.   Section 3
of the Allocations Exhibit is hereby supplemented by appending the following new Section 3.9: 

        3.9   Forfeiture Allocations. Upon a forfeiture of any unvested Partnership Interest by any Partner, gross items of income,
gain, loss or deduction shall be allocated to such Partner if and to the extent required by final Regulations promulgated after the effective date of the Tenth Amendment to this Agreement to ensure
that allocations made with respect to all unvested Partnership Interests are recognized under Code Section 704(b). 

        13.   Section 3
of the Allocations Exhibit is hereby supplemented by adding the following new Sections 3.10 and 3.11 to the end thereof: 

        3.10   Special Allocations With Respect to LTIP Units.

5

 

        (a)   After
giving effect to the special allocations set forth in Sections 3.1 through 3.9 hereof, and the allocations of Net Income (including, for the avoidance of doubt,
Liquidating Gains that are a component of Net Income) under Subsections 2.1(a) through (e) above, but before allocations of Net Income are made under Section 2.1(f) above, any remaining
Liquidating Gains shall first be allocated to the holders of LTIP Units until the Economic Capital Account Balances of such holders, to the extent attributable to their ownership of LTIP Units, are
equal to (i) the Common Unit Economic Balance, multiplied by (ii) the number of their LTIP Units (with respect to each holder, the "Target
Balance"); provided, however, that no such Liquidating Gains will be allocated
with respect to any particular LTIP Unit (each, an "Ineligible Unit") if cumulative Liquidating Losses of the Partnership have exceeded cumulative
Liquidating Gains of the Partnership during the period from the issuance of such LTIP Unit through the date of such allocation. If, notwithstanding the foregoing, not all LTIP Units (including
Ineligible Units) are fully booked up, Liquidating Gains shall be allocated among LTIP Units in a manner reasonably determined by the General Partner. For the avoidance of doubt, Liquidating Gains
allocated with respect to an LTIP Unit pursuant to this Section 3.10(a) shall reduce (but not below zero) the Book-Up Target for such LTIP Unit. 

        (b)   After
giving effect to the special allocations set forth in Sections 3.1 through 3.9 hereof, and notwithstanding the provisions of Sections 2.1 and 2.2 above, if, due to
distributions with respect to Common Units in which the LTIP Units do not participate, forfeitures or otherwise, the Economic Capital Account Balance of any present or former holder of LTIP Units, to
the extent attributable to the holder's ownership of LTIP Units, exceeds the Target Balance, then Liquidating Losses shall be allocated to such holder to eliminate the disparity; provided, however,
that if Liquidating Losses are insufficient to completely eliminate all such disparities, such losses shall be allocated among LTIP Units in a manner reasonably determined by the General Partner. 

        (c)   A
"Book-Up Target" shall be established for each LTIP Unit. The initial amount of the Book-Up
Target for such LTIP Unit shall be the Common Unit Economic Balance as determined on the later of (i) the date such LTIP Unit was granted or (ii) the LTIP Unit Distribution Participation
Date. The Book-Up Target shall be reduced (not to less than zero) by allocations of Liquidating Gains pursuant to Section 3.10(a) and reallocations of Capital Account balances
pursuant to Section 3.11, as determined by the General Partner. Notwithstanding the foregoing, the Book-Up Target for any LTIP Unit for which the Economic Capital Account Balance
attributable to such LTIP Unit has at any time reached an amount equal to the Common Unit Economic Balance determined as of such time shall be equal to zero. 

        (d)   The
parties agree that the intent of this Section 3.10 is, (i) to the extent possible, to make the Capital Account balance associated with each LTIP Unit
economically equivalent to the Capital Account balance associated with the General Partner's Common Units (on a per-unit basis), and (ii) to allow conversion of an LTIP Unit
(assuming prior vesting) when sufficient Liquidating Gains have been allocated to such LTIP Unit pursuant to Section 3.10(a) so that either its initial Book-Up Target has been
reduced to zero or the parity described in (i) above has been achieved. The General Partner shall be permitted to interpret this Section 3.10 or to amend this Agreement to the extent
necessary and consistent with this intention. 

        (e)   For
purposes of this Allocations Exhibit, the following definitions shall apply: 

        "Liquidating Gains" means any net gain realized in connection with the actual or hypothetical sale of all or substantially all of the
assets of the Partnership (including upon the occurrence of any event of liquidation of the Partnership), including but not limited to net gain realized in 

6

 

connection
with an adjustment to the Gross Asset Value of Partnership assets under the definition of Gross Asset Value in Section 1.3 of the Allocations Exhibit. 

        "Liquidating Losses" means any net loss realized in connection with the actual or hypothetical sale of all or substantially all of the
assets of the Partnership (including upon the occurrence of any event of liquidation of the Partnership), including but not limited to net loss realized in connection with an adjustment to the Gross
Asset Value of Partnership assets under the definition of Gross Asset Value in Section 1.3 of the Allocations Exhibit. 

        "Economic Capital Account Balance" means, with respect to a holder of LTIP Units, as of any date, its Capital Account balance, plus the
amount of its shares of any Minimum Gain Attributable to Partner Nonrecourse Debt or Partnership Minimum Gain, in either case as of such date and only to the extent attributable to its ownership of
LTIP Units. 

        "Common Unit Economic Balance" shall mean as of any date, (i) the Capital Account balance of the General Partner, plus the amount
of the General Partner's share of any Minimum Gain Attributable to Partner Nonrecourse Debt or Partnership Minimum Gain, in either case to the extent attributable to the General Partner's ownership of
Common Units and computed on a hypothetical basis after taking into account all allocations through such date divided by (ii) the number of the General Partner's Common Units as of such date. 

        3.11   Special Forfeiture Reallocations. If, in connection with any forfeiture of LTIP Units, the balance of the
portion of the Capital Account of the holder that is attributable to all of his or her LTIP Units exceeds the Target Balance, such portion of such holder's Capital Account shall be reduced to the
Target Balance, and the Book-Up Target of all LTIP Units then held by such holder shall be reduced to zero. Otherwise, the Capital Account of the holder that is attributable to the
forfeited LTIP Units shall be reallocated in a manner reasonably determined by the General Partner. 

        14.   Exhibits
A, C and D, attached to this Amendment, are hereby made a part of the Agreement. 

        15.   Except
as expressly amended hereby, the Agreement shall remain in full force and effect. 

        IN
WITNESS WHEREOF, the General Partner has executed this Amendment as of the date first written above. 

	 	THE MACERICH COMPANY
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ RICHARD A. BAYER

	 	 	Name:	Richard A. Bayer
	 	 	Title:	Executive Vice President, Chief

Legal Officer and Secretary

7

 
 

Exhibit A
  LTIP Units    
    

 
 

As of October 26, 2006    
    

	LTIP Unit Limited Partner
 
	 	LTIP Units

	Arthur M. Coppola	 	85,335
	Edward C. Coppola	 	49,779
	Richard A. Bayer	 	37,927
	Thomas E. O' Hern	 	42,668

        Further
issuances of LTIP Units will be kept in the records of the Partnership. 

  

 
 

Exhibit B
  LTIP Units    
    

        The following are the terms of the LTIP Units: 

        1.     Designation.    A class of Partnership Units in the Partnership designated as the "LTIP Units" is hereby
established. LTIP Units are intended to qualify as profits interests in the Partnership. The number of LTIP Units that may be issued shall not be limited. 

        2.     Vesting.

        A.    Vesting, Generally.    LTIP Units may, in the sole discretion of the General Partner, be issued subject to
vesting, forfeiture and additional restrictions on transfer pursuant to the terms of an award, vesting or other similar agreement (a "Vesting
Agreement"). The terms of any Vesting Agreement may be modified by the General Partner from time to time in its sole discretion, subject to any restrictions on amendment
imposed by the relevant Vesting Agreement or by the terms of any plan pursuant to which the LTIP Units are issued, if applicable. LTIP Units that have vested and are no longer subject to forfeiture
under the terms of a Vesting Agreement are referred to as "Vested LTIP Units"; all other LTIP Units are referred to as "Unvested
LTIP Units." Subject to the terms of any Vesting Agreement, a holder of LTIP Units shall be entitled to transfer his or her LTIP Units to the same extent, and subject to the
same restrictions as holders of Common Units are entitled to transfer their Common Units pursuant to Article VIII of the Agreement. 

        B.    Forfeiture or Transfer of Unvested LTIP Units.    Unless otherwise specified in the relevant Vesting Agreement,
upon the occurrence of any event specified in a Vesting Agreement as resulting in either the forfeiture of any LTIP Units, or the repurchase by the Partnership or the General Partner of LTIP Units at
a specified purchase price, then upon the occurrence of the circumstances resulting in such forfeiture or repurchase by the Partnership or the General Partner, the relevant LTIP Units shall
immediately, and without any further action, be treated as cancelled and no longer outstanding for any purpose, or as transferred to the Partnership or General Partner, as applicable. Unless otherwise
specified in the Vesting Agreement, no consideration or other payment shall be due with respect to any LTIP Units that have been forfeited, other than any distributions declared with a record date
prior to the effective date of the forfeiture. In connection with any forfeiture or repurchase of LTIP Units, the balance of the portion of the Capital Account of the holder that is attributable to
all of his or her LTIP
Units shall be reduced by the amount, if any, by which it exceeds the target balance contemplated by Section 3.10 of the Agreement, calculated with respect to the holder's remaining LTIP Units,
if any. 

        C.    Legend.    Any certificate evidencing an LTIP Unit shall bear an appropriate legend indicating that additional
terms, conditions and restrictions on transfer, including without limitation any Vesting Agreement, apply to the LTIP Unit. 

        3.     Distributions.

        A.    LTIP Distribution Amount.    Commencing from and after the LTIP Unit Distribution Participation Date established
for any LTIP Units, such LTIP Units shall be entitled to receive, if, when and as authorized by the General Partner out of funds or other property legally available for the payment of distributions,
regular, special, extraordinary or other distributions (other than distributions representing proceeds of a sale or other disposition of all or substantially all of the assets of the Partnership)
which may be made from time to time, in an amount per unit equal to the amount of any such distributions that would have been payable to such holders if the LTIP Units had been Common Units (if
specified in the Vesting Agreement or other documentation pursuant to which the LTIP Units are issued). LTIP Units shall also be entitled to receive, if, when and as authorized by the General Partner
out of funds or other property legally available for the payment of distributions, distributions representing proceeds of a sale or other disposition of all or 

B-1

 

substantially
all of the assets of the Partnership in an amount per unit equal to the amount of any such distributions payable on the Common Units, whether made prior to, on or after the LTIP Unit
Distribution Participation Date, provided that the amount of such distributions shall not exceed the positive balances of the Capital Accounts of the holders of such LTIP Units to the extent
attributable to the ownership of such LTIP Units. Distributions on the LTIP Units, if authorized, shall be payable on such dates and in such manner as may be authorized by the General Partner (any
such date, a "LTIP Unit Distribution Payment Date"); provided that the LTIP Unit Distribution Payment Date shall be the same as the corresponding date
relating to the corresponding distribution on the Common Units. The record date for determining which holders of LTIP Units are entitled to receive a distribution shall be the Partnership Record Date
for that distribution. All distributions paid with respect to LTIP Units prior to the date on which the determination is made with respect to events resulting in the forfeiture of such LTIP Units or
the repurchase by the Partnership or the General Partner of such LTIP Units shall be retained by the holder of such LTIP Units and not subject to forfeiture or restitution in the event that Unvested
LTIP Units fail to become Vested LTIP Units. Following such date of determination, no further distributions will be paid with respect to Unvested LTIP Units that have been forfeited or are repurchased
by the Partnership or the General Partner, other than any distributions declared with a record date prior to the effective date of the forfeiture or repurchase. 

        B.    LTIP Unit Distribution Participation Date.    The "LTIP Unit Distribution Participation
Date" for each LTIP Unit will be (i) with respect to LTIP Units granted pursuant to The Macerich Company 2006
Long-Term Incentive Plan (the "2006 LTIP Plan"), the Effective Date (as defined in the Vesting Agreement of each Person granted LTIP Units
under the 2006 LTIP Plan) or (ii) with respect to other LTIP Units, such date as may be specified in the Vesting Agreement or other documentation pursuant to which such LTIP Units are issued. 

        4.     Allocations.

        Commencing
with the portion of the taxable year of the Partnership that begins on the LTIP Unit Distribution Participation Date established for any LTIP Units, such LTIP Units shall be
allocated Net Income and Net Loss in amounts per LTIP Unit equal to the amounts allocated per Common Unit. The allocations provided by the preceding sentence shall be subject to Sections 2.1 and 2.2
and in addition to any special allocations required by Sections 3.1 through 3.11, each as provided in the Allocations Exhibit. The General Partner is authorized in its discretion to adjust the
allocations made under this Section 4 after the LTIP Unit Distribution Participation Date, so that the ratio of (i) the total amount of Net Income or Net Loss allocated with respect to
each LTIP Unit in the taxable year in which that LTIP Unit's LTIP Unit Distribution Participation Date falls (excluding special allocations under Section 3.10 and Section 3.11 of the
Allocations Exhibit), to (ii) the total amount distributed to that LTIP Unit with respect to such period, is more nearly equal to the ratio of (i) the Net Income and Net Loss allocated
with respect to the General Partner's Common Units in such taxable year to (ii) the amounts distributed to the General Partner with respect to such Common Units and such taxable year. 

        5.     Adjustments.

        The
Partnership shall maintain at all times a one-to-one correspondence between LTIP Units and Common Units for conversion, distribution and other purposes,
including without limitation complying with the following procedures; provided that the foregoing is not intended to alter the special allocations pursuant to Sections 3.9, 3.10 and 3.11 of the
Allocations Exhibit, differences between distributions (other than, with respect to LTIP Units having an LTIP Unit Distribution Participation Date determined under Section 3.B(ii) above,
distributions representing proceeds of a sale or other disposition of all or substantially all of the assets of the Partnership) to be made with respect to the LTIP Units and Common Units prior to the
LTIP Unit Distribution Participation Date for such LTIP Units, differences between distributions (other than, with respect to LTIP Units having an LTIP Unit 

B-2

 

Distribution
Participation Date determined under Section 3.B(ii) above, distributions representing proceeds of a sale or other disposition of all or substantially all of the assets of
the Partnership) to be made with respect to the LTIP Units and Common Units pursuant to Section 10.2 of the Agreement or Section 3.A hereof in the event that the Capital Accounts
attributable to the LTIP Units are less than those attributable to the Common Units due to insufficient special allocations pursuant to Section 3.10 and 3.11 of the Allocations Exhibit or
related provisions. If an LTIP Unit Adjustment Event (as defined below) occurs, then the General Partner shall make a corresponding adjustment to the LTIP Units to maintain such
one-for-one correspondence between Common Units and LTIP Units. The following shall be "LTIP Unit Adjustment Events":
(A) the Partnership makes a distribution on all outstanding Common Units in Partnership Units, (B) the Partnership subdivides the outstanding Common Units into a greater number of units
or combines the outstanding Common Units into a smaller number of units, or (C) the Partnership issues any Partnership Units in exchange for its outstanding Common Units by way of a
reclassification or recapitalization of its Common Units. If more than one LTIP Unit Adjustment Event occurs, the adjustment to the LTIP Units need be made only once using a single formula that takes
into account each and every LTIP Unit Adjustment Event as if all LTIP Unit Adjustment Events occurred simultaneously. For the avoidance of doubt, the following shall not be LTIP Unit Adjustment
Events: (x) the issuance of Partnership Units in a financing, reorganization, acquisition or other similar business transaction, (y) the issuance of Partnership Units pursuant to any
employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any Partnership Units to the General Partner in respect of a Capital Contribution to the
Partnership of proceeds from the sale of securities by the General Partner. If the Partnership takes an action affecting the Common Units other than actions specifically described above as LTIP Unit
Adjustment Events and in the opinion of the General Partner such action would require an adjustment to the LTIP Units to maintain the one-to-one correspondence described above,
the General Partner shall make such adjustment to the LTIP Units, to the extent permitted by law and by the terms of any plan pursuant to which the LTIP Units have been issued, in such manner and at
such time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances. If an adjustment is made to the LTIP Units as herein provided, the Partnership shall
promptly file in the books and records of the Partnership an officer's certificate setting forth such adjustment and a brief statement of the facts requiring such adjustment, which certificate shall
be conclusive evidence of the correctness of such adjustment absent manifest error. Promptly after filing of such certificate, the Partnership shall mail a notice to each holder of LTIP Units setting
forth the adjustment to his or her LTIP Units and the effective date of such adjustment. 

        6.     Ranking.

        The
LTIP Units shall rank on parity with the Common Units in all respects and junior to all Preferred Units, Series A Preferred Units, Series B Preferred Units,
Series D Preferred Units, Series N Preferred Units, and Series P Preferred Units, with respect to distribution rights and rights upon voluntary or involuntary liquidation, winding
up or dissolution of the Partnership, subject to the proviso in the first sentence of Section 5. 

        7.     Right to Convert LTIP Units into Common Units.

        A.    Conversion Right.    A holder of LTIP Units shall have the right (the "LTIP Unit
Conversion Right"), at his or her option, at any time to convert all or a portion of his or her Vested LTIP Units the Book-Up Target of which is zero into Common
Units. Holders of LTIP Units shall not have the right to convert Unvested LTIP Units into Common Units until they become Vested LTIP Units; provided,  however, that when a holder of LTIP Units is notified of the expected occurrence of an event that will cause his or her Unvested LTIP Units to become
Vested LTIP Units, such Person may give the Partnership an LTIP Unit Conversion Notice conditioned upon and effective as of the time of vesting, and such LTIP Unit Conversion Notice, unless
subsequently revoked by the holder of the LTIP Units, shall be accepted by the Partnership subject 

B-3

 

to
such condition. The General Partner shall have the right at any time to cause a conversion of Vested LTIP Units the Book-up Target of which is zero into Common Units. In all cases, the
conversion of any LTIP Units into Common Units shall be subject to the conditions and procedures set forth in this Section 7. 

        B.    Number of Units Convertible.    A holder of Vested LTIP Units may convert such Vested LTIP Units the
Book-Up Target of which is zero into an equal number of fully paid and non-assessable Common Units, giving effect to all adjustments (if any) made pursuant to Section 5. 

        C.    Notice.    In order to exercise his or her Conversion Right, a holder of LTIP Units shall deliver a notice (a
"LTIP Unit Conversion Notice") in the form attached as Exhibit C to this Amendment not less than 10 nor more than 60 days prior to a date
(the "LTIP Unit Conversion Date") specified in such LTIP Unit Conversion Notice. Each holder of LTIP Units covenants and agrees with the Partnership
that all Vested LTIP Units to be converted pursuant to this Section 7 shall be free and clear of all liens. Notwithstanding anything herein to the contrary (but subject to Section 9.1 of
the Agreement and the Redemption Rights Exhibit to the Agreement), a holder of LTIP Units may deliver an Exercise Notice pursuant to Section 9.1 of the Agreement and the Redemption Rights
Exhibit to the Agreement relating to those Common Units that will be issued to such holder upon conversion of such LTIP Units into Common Units in advance of the LTIP Unit Conversion Date; provided,
however, that the redemption of such Common Units by the Partnership shall in no event take place until the LTIP Unit Conversion Date. For clarity, it is noted that the objective of this paragraph is
to put a holder of LTIP Units in a position where, if he or she so wishes, the Common Units into which his or her Vested LTIP Units will
be converted can be redeemed by the Partnership simultaneously with such conversion, with the further consequence that, if the General Partner elects to assume the Partnership's redemption obligation
with respect to such Common Units under Section 9.1 of the Agreement and the Redemption Rights Exhibit to the Agreement by delivering to such holder Shares rather than cash, then such holder
can have such Shares issued to him or her simultaneously with the conversion of his or her Vested LTIP Units the Book-Up Target of which is zero into Common Units. The General Partner
shall cooperate with a holder of LTIP Units to coordinate the timing of the different events described in the foregoing sentence. 

        D.    Forced Conversion.    The Partnership, at any time at the election of the General Partner, may cause any number
of Vested LTIP Units the Book-Up Target of which is zero held by a holder of LTIP Units to be converted (a "LTIP Unit Forced Conversion")
into an equal number of Common Units, giving effect to all adjustments (if any) made pursuant to Section 5. In order to exercise its right to cause an LTIP Unit Forced Conversion, the
Partnership shall deliver a notice (a "LTIP Unit Forced Conversion Notice") in the form attached as  Exhibit D to the Amendment to the applicable
holder not less than 10 nor more than 60 days prior to the LTIP Unit Conversion Date
specified in such LTIP Unit Forced Conversion Notice. A Forced LTIP Unit Conversion Notice shall be provided in the manner provided in Section 13.1 of the Agreement. 

        E.    Conversion Procedures.    Subject to any redemption of Common Units to be received upon the conversion of Vested
LTIP Units, a conversion of Vested LTIP Units for which the holder thereof has given an LTIP Unit Conversion Notice or the Partnership has given a Forced LTIP Unit Conversion Notice shall occur
automatically after the close of business on the applicable LTIP Unit Conversion Date without any action on the part of such holder of LTIP Units, as of which time such holder of LTIP Units shall be
credited on the books and records of the Partnership with the issuance as of the opening of business on the next day of the number of Common Units issuable upon such conversion. After the conversion
of LTIP Units as aforesaid, the Partnership shall deliver to such holder of LTIP Units, upon his or her written request, a certificate of the General Partner certifying the number of Common Units and
remaining LTIP Units, if any, held by such Person immediately after such conversion. 

B-4

 

        F.     Treatment of Capital Account.    For purposes of making future allocations under Section 3.10 of the
Allocations Exhibit, the portion of the Economic Capital Account Balance of the applicable holder of LTIP Units that is treated as attributable to his or her LTIP Units shall be reduced in accordance
with the Economic Capital Account Balance of such holder attributable to the LTIP Units converted. 

        G.    Mandatory Conversion in Connection with a Transaction.    If the Partnership or the General Partner shall be a
party to any transaction (including without limitation a merger, consolidation, unit exchange, self tender offer for all or substantially all Common Units or other business combination or
reorganization, or sale of all or substantially all of the Partnership's assets, but excluding any transaction which constitutes an LTIP Unit Adjustment Event), in each case as a result of which
Common Units shall be exchanged for or converted into the right, or the holders of Common Units shall otherwise be entitled, to receive cash, securities or other property or any combination thereof
(each of the foregoing being referred to herein as a "Transaction"), then the General Partner shall, immediately prior to the Transaction, exercise its
right to cause a LTIP Unit Forced Conversion with respect to the maximum number of LTIP Units then eligible for conversion, taking into account any allocations that occur in connection with the
Transaction or that would occur in connection with the Transaction if the assets of the Partnership were sold at the Transaction price or, if applicable, at a value determined by the General Partner
in good faith using the value attributed to the Partnership Units in the context of the Transaction (in which case the LTIP Unit Conversion Date shall be the effective date of the Transaction and the
conversion shall occur immediately prior to the effectiveness of the Transaction). 

        In
anticipation of such LTIP Unit Forced Conversion and the consummation of the Transaction, the Partnership shall use commercially reasonable efforts to cause each holder of LTIP Units
to be afforded the right to receive in connection with such Transaction in consideration for the Common Units into which his or her LTIP Units will be converted the same kind and amount of cash,
securities and other property (or any combination thereof) receivable upon the consummation of such Transaction by a holder of the same number of Common Units, assuming such holder of Common Units is
not a Person with which the Partnership consolidated or into which the Partnership merged or which merged into the Partnership or to which such sale or transfer was made, as the case may be (a
"Constituent Person"), or an Affiliate of a Constituent Person. In the event that holders of Common Units have the opportunity to elect the form or type
of consideration to be received upon consummation of the Transaction, prior to such Transaction the General Partner shall give prompt written notice to each holder of LTIP Units of such election, and
shall use commercially reasonable efforts to afford such holders the right to elect, by written notice to the General Partner, the form or type of consideration to be received upon conversion of each
LTIP Unit held by such holder into Common Units in connection with such Transaction. If a holder of LTIP Units fails to make such an election, such holder (and any of its transferees) shall receive
upon conversion of each LTIP Unit held by him or her (or by any of his or her transferees) the same kind and amount of consideration that a holder of a Common Unit would receive if such holder of
Common Units failed to make such an election. 

        Subject
to the rights of the Partnership and the General Partner under any Vesting Agreement and the terms of any plan under which LTIP Units are issued, the Partnership shall use
commercially reasonable efforts to cause the terms of any Transaction to be consistent with the provisions of this Section 7 and to enter into an agreement with the successor or purchasing
entity, as the case may be, for the benefit of any holders of LTIP Units whose LTIP Units will not be converted into Common Units in connection with the Transaction that will (i) contain
provisions enabling the holders of LTIP Units that remain outstanding after such Transaction to convert their LTIP Units into securities as comparable as reasonably possible under the circumstances to
the Common Units and (ii) preserve as 

B-5

 

far
as reasonably possible under the circumstances the distribution, special allocation, conversion, and other rights set forth in the Agreement for the benefit of the holders of LTIP Units. 

        8.     Redemption at the Option of the Partnership.

        LTIP
Units will not be redeemable at the option of the Partnership; provided, however,
that the foregoing shall not prohibit the Partnership from (i) repurchasing LTIP Units from the holder thereof if and to the extent such holder agrees to sell such LTIP Units or
(ii) from exercising its LTIP Unit Forced Conversion right. 

        9.     Voting Rights.

        A.    Voting with Common Units.    Holders of LTIP Units shall have the right to vote on all matters submitted to a
vote of the holders of Common Units; holders of LTIP Units and Common Units shall vote together as a single class, together with any other class or series of Partnership Units upon which like voting
rights have been conferred. In any matter in which the LTIP Units are entitled to vote, including an action by written consent, each LTIP Unit shall be entitled to vote a Percentage Interest equal on
a per unit basis to the Percentage Interest represented by each Common Unit. 

        B.    Special Approval Rights.    Except as provided in Section 9.A. above, holders of LTIP Units shall only
(a) have those voting rights required from time to time by non-waivable provisions of applicable law, if any, and (b) have the additional voting rights that are expressly set
forth in this Section 9.B. The General Partner and/or the Partnership shall not, without the affirmative vote of holders of more than 50% of the then outstanding LTIP Units affected thereby,
given in person or by proxy, either in writing or at a meeting (voting separately as a class), take any action that would materially and adversely alter, change, modify or amend, whether by merger,
consolidation or otherwise, the rights, powers or privileges of such LTIP Units, subject to the following exceptions: 

          (i)  no
separate consent of the holders of LTIP Units will be required if and to the extent that any such alteration, change, modification or amendment would equally,
ratably and proportionately alter, change, modify or amend the rights, powers or privileges of the Common Units (in which event the holders of LTIP Units shall only have such voting rights, if any, as
provided in Sections 6.3, 7.1, 10.1(b), Article XII of the Agreement, or otherwise as expressly provided for in the Agreement, in accordance with Section 9.A above); 

         (ii)  with
respect to any merger, consolidation or other business combination or reorganization, so long as either (w) the LTIP Units are converted into Common Units
immediately prior to the effectiveness of the transaction, (x) the holders of LTIP Units either will receive, or will have the right to elect to receive, for each LTIP Unit an amount of cash,
securities, or other property equal to the greatest amount of cash, securities or other property paid to a holder of one Common Unit in consideration of one Common Unit pursuant to the terms of such
transaction, (y) the LTIP Units remain outstanding with the terms thereof materially unchanged, or (z) if the Partnership is not the surviving entity in such transaction, the LTIP Units
are exchanged for a security of the surviving entity with terms that are materially the same with respect to rights to allocations, distributions, redemption, conversion and voting as the LTIP Units
and without any income, gain or loss expected to be recognized by the holder upon the exchange for federal income tax purposes (and with the terms of the Common Units or such other securities into
which the LTIP Units (or the substitute security therefor) are convertible materially the same with respect to rights to allocations, distributions, redemption, conversion and voting), such merger,
consolidation or other business combination or reorganization shall not be deemed to materially and adversely alter, change, modify or amend the rights, powers or privileges of the LTIP Units,
provided further, that if some, but not all, of the LTIP Units are converted into Common Units immediately prior to the 

B-6

 

effectiveness
of the transaction (and neither clause (y) or (z) above is applicable), then the consent required pursuant to this Section will be the consent of the holders of more than
50% of the LTIP Units to be outstanding following such conversion; 

        (iii)  any
creation or issuance of Partnership Units (whether ranking junior to, on a parity with or senior to the LTIP Units with respect to payment of distributions, right
of redemptions and the distribution of assets upon liquidation, dissolution or winding up), which either (x) does not require the consent of the holders of Common Units or (y) does
require such consent and is authorized by a vote of the holders of Common Units and LTIP Units voting together as a single class pursuant to Section 9.A above, together with any other class or
series of units of limited partnership interest in the Partnership upon which like voting rights have been conferred, shall not be deemed to materially and adversely alter, change, modify or amend the
rights, powers or privileges of the LTIP Units; and 

        (iv)  any
waiver by the Partnership of restrictions or limitations applicable to any outstanding LTIP Units with respect to any holder or holders thereof shall not be deemed
to materially and adversely alter, change, modify or amend the rights, powers or privileges of the LTIP Units with respect to other holders. 

        The
foregoing voting provisions will not apply if, as of or prior to the time when the action with respect to which such vote would otherwise be required will be taken or be effective,
all outstanding LTIP Units shall have been converted and/or redeemed, or provision is made for such redemption and/or conversion to occur as of or prior to such time. 

[End
of text] 

B-7

  

 
 

EXHIBIT C    
    

 
 

NOTICE OF ELECTION BY PARTNER TO CONVERT
  LTIP UNITS INTO COMMON UNITS    
    

        The undersigned holder of LTIP Units hereby irrevocably elects to convert the number of Vested LTIP Units in The Macerich Partnership, L.P. (the "Partnership")
set forth below into Common Units in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of the Partnership, as amended. The undersigned hereby represents, warrants,
and certifies that the undersigned: (a) has title to such LTIP Units, free and clear of the rights or interests of any other person or entity other than the Partnership; (b) has the full
right, power, and authority to cause the conversion of such LTIP Units as provided herein; and (c) has obtained the consent or approval of all persons or entities, if any, having the right to
consent or approve such conversion. 

	Name of Holder:	    
 (Please Print: Exact Name as Registered with Partnership)

	    	 	 
	Number of LTIP Units to be Converted:	 	    

	    	 
	Conversion Date:	    

	    	 
	    
 (Signature of Holder: Sign Exact Name as Registered with Partnership)	 
	    	 
	    	 
	    
 (Street Address)	 
	    	 
	    	 
	    
 (City)
                              (State)
                              (Zip Code)	 

	    	 	 
	Signature Guaranteed by:	 	    

C-1

  

 
 

EXHIBIT D    
    

 
 

NOTICE OF ELECTION BY PARTNERSHIP TO FORCE CONVERSION
  OF LTIP UNITS INTO COMMON UNITS    
    

        The Macerich Partnership, L.P. (the "Partnership") hereby irrevocably elects to cause the number of LTIP Units held by the holder of LTIP Units set forth below to
be converted into Common Units in accordance with the terms of the Amended and Restated Limited Partnership Agreement of the Partnership, as amended. 

	    	 
	Name of Holder:	    
 (Please Print: Exact Name as Registered with Partnership)

	    	 
	Number of LTIP Units to be Converted:	    

	    	 
	Conversion Date:	    

D-1

QuickLinks

Exhibit 10.1.9

TENTH AMENDMENT TO AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF THE MACERICH PARTNERSHIP, L.P.

Dated as of October 26, 2006

Exhibit A LTIP Units

As of October 26, 2006

Exhibit B LTIP Units

EXHIBIT C

NOTICE OF ELECTION BY PARTNER TO CONVERT LTIP UNITS INTO COMMON UNITS

EXHIBIT D

NOTICE OF ELECTION BY PARTNERSHIP TO FORCE CONVERSION OF LTIP UNITS INTO COMMON UNITS

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