Document:

Exhibit 10.8

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”)
is entered into and shall be effective as of 
November 6, 2009, by and among FGX International Inc., a
Delaware corporation with a mailing address of 500 George Washington Highway,
Smithfield, Rhode Island 02917 (the “Company”), and Robert Grow, an individual
currently with a residence in the State of Rhode Island (“Executive”).

 

AGREEMENT

 

In consideration of the premises and mutual
promises herein below set forth, the parties hereby agree as follows:

 

1.             Employment
Period.  The term of Executive’s
Employment by the Company pursuant to this Agreement (the “Employment Period”)
shall commence on the date hereof (the “Effective Date”) and shall continue
until terminated as provided herein.  For
purposes of this agreement “Termination Date” means the date on which the
Employment Period ends.

 

2.             Employment;
Duties.  Subject to the terms and
conditions set forth herein, the Executive shall serve as the Executive Vice
President, Product Development of the Company, and of FGX International
Holdings Limited, a British Virgin Islands corporation and the indirect parent
of the Company (“FGX Holdings”), during the Employment Period.  The duties assigned and authority granted to
Executive shall be as set forth in the By-laws of the Company and FGX Holdings
and those that are typically assigned and/or afforded to an Executive Vice
President, Product Development, and such other duties and responsibilities as
may otherwise reasonably be assigned to him by the Chief Executive Officer from
time to time.  Executive agrees to
perform his duties for the Company diligently, competently and in a good faith
manner.  Notwithstanding anything to the
contrary set forth herein, the Executive shall be permitted during the
Employment Period to (a) engage in civic and charitable activities to the
extent they are not inconsistent with Executive’s duties hereunder and (b) serve
as a member of the board of directors of not more than two additional for
profit corporations.

 

3.             Salary
and Bonus.

 

a.             Base
Salary.  Executive shall be entitled
to receive a base salary from the Company during the Employment Period at the
rate of two hundred thirty-five thousand four hundred and twenty-four Dollars
($235,424) per annum (as from time to time, if at all, increased, the “Base
Salary”).  The Base Salary may be
increased from time to time during the Employment Period, at the same time and
under the same circumstances as other officers of the Company.  In addition, the Board of Directors, or
Compensation Committee, of the Company or FGX Holdings (collectively, the “Board
of Directors”), may further increase Executive’s Base Salary from time to time
in their discretion, based upon the Company’s performance and Executive’s
particular contributions.

 

b.             Bonus.  Executive shall be eligible for and shall
receive a cash bonus for the plan year 2009, and thereafter during each year of
Executive’s employment, subject to the discretion of the Company’s Board of
Director’s, of up to fifty percent (50%) of his Base Salary (“Annual Target
Bonus Amount”) under the Company’s executive incentive compensation plan 

 

 

(the “Executive Incentive Compensation Plan”) on account of the
services rendered by him during each calendar year during the Employment Period
and the attainment of certain performance goals and successful completion of
certain initiatives established by the Company. 
The cash bonus shall be paid on or before the later of (i) March 15
of the year following the calendar year for which the bonus was earned and (ii) the
date on which the Board of Directors has been able to determine within a
reasonable degree of certainty the amount of the bonus. The Board of Directors
may from time to time increase the Annual Target Bonus Amount.

 

4.             Other
Benefits.

 

a.             Insurance
and Other Benefits.  During the
Employment Period, Executive shall be entitled to participate in, and shall
receive the maximum benefits available under, the Company’s insurance programs
(including health, supplemental health and life insurance) and any ERISA
benefit plans, as the same may be adopted and/or amended from time to time, and
shall receive all other benefits that are provided by the Company to other
senior executives.

 

b.             Paid
Time Off.  Executive shall be
entitled to twenty-five (25) days of paid time off annually in accordance with
the Company’s paid time off policies in effect from time to time, to be taken
at such time(s) as shall not, in the reasonable judgment of the Chief
Executive Officer of the Company, interfere with Executive’s fulfillment of his
duties hereunder.  Executive shall be
entitled to as many holidays, sick days and personal days as are generally
provided by the Company from time to time to its employees in accordance with
the Company’s policies as in effect from time to time.

 

c.             Automobile
Allowance.  During the Employment
Period, the Company shall provide Executive with a monthly automobile allowance
consistent with the plan adopted or to be adopted by the Company for other
senior executives.

 

5.             Termination
by the Company With Cause.  Upon
prior written notice to Executive, the Company may terminate Executive’s
employment if any of the following events shall occur (any of the following
events shall constitute “Cause” for all purposes hereof):

 

a.             the
conviction of Executive for a crime involving fraud or moral turpitude;

 

b.             deliberate
dishonesty of Executive with respect to the Company or any of its subsidiaries
or affiliates; or

 

c.             the
refusal of Executive to follow the reasonable and lawful written instructions
of the Chief Executive Officer of the Company or FGX Holdings with respect to
the services to be rendered and the manner of rendering such services by
Executive, provided such instructions are in accordance with the duties of the
Executive under this Agreement and provided further that such refusal is
material and repetitive and is not justified or excused either by the terms of
this Agreement or by actions taken by the Company in violation of this
Agreement.

 

6.             Termination
by Executive; Termination by the Company Without Cause.

 

a.             Notice/Events:

 

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i.              Termination by Executive.  Executive may terminate his employment at any
time by providing written notice to the Company.

 

ii.             Termination by the Company Without Cause.  The Company may terminate Executive’s
employment at any time, without Cause by providing written notice to
Executive.  As used in this Agreement,
the term “without Cause” shall mean termination for any reason not specified in
Section 5 or Section 7 hereof.

 

b.             Executive’s
Right to Terminate.  Executive may
terminate Executive’s employment for Good Reason at any time during the term of
this Agreement.  For purposes of this
Agreement, “Good Reason” shall mean any of the following (without Executive’s
express written consent):

 

(i)            the
material reduction or material adverse change in Executive’s authority, duties,
job responsibilities or reporting structure from those in effect on the date
hereof;

 

(ii)           the
material reduction by the Company in Executive’s Base Salary as in effect on
the date hereof or as the same may be increased from time to time during the
term of this Agreement;

 

(iii)          a
relocation of the Company’s principal executive offices to a location more than
50 miles from their current location, or the Company requiring Executive to be
based anywhere other than the Company’s principal executive offices; or

 

(iv)          any
material breach by the Company of any provision of this Agreement.

 

Any proposed termination of
employment by Executive shall be presumed to be other than for Good Reason
unless (x) Executive first provides written notice to the Company within
ninety (90) days following the initial existence of the purported Good Reason
condition, (y) the Company has been provided a period of thirty (30) days
after receipt of Executive’s notice during which to cure, rescind or otherwise
remedy the actions, events or circumstances described in such notice and (z) Executive’s
termination of employment occurs within two years following the initial
existence of the purported Good Reason condition.

 

c.             Severance.

 

i.              Without Cause. 
If the Company terminates Executive’s employment without Cause, or if
Executive terminates his employment pursuant to Section 6(b) hereof,
then, subject to Section 8, commencing on the date of termination of
employment, the Company shall provide Executive with a severance package which
shall consist of the following:  for a
period equal to eighteen (18) months after the date of termination (x) payment
on the first business day of each month of an amount equal to one-twelfth of
Executive’s then current Salary under Section 3(a) hereof; (y) payment
on the first business day of 

 

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each month of an amount equal to one-twelfth
of Executive’s Annual Target Bonus Amount (as defined in Section 3(b) above)
for the year of termination; and (z) continuation of all benefits under Section 4(a) hereof
at the same cost to Executive as is applicable to active employees of the
Company; provided, however, that benefits under Section 4(a) shall be
discontinued as of the date on which Executive is provided comparable benefits
from any other source.  Notwithstanding
anything herein to the contrary, each severance payment shall be deemed to be a
separate payment within the meaning of Section 409A of the Code and the
regulations thereunder.

 

ii.             General Release. 
As a condition precedent to receiving any severance payment, Executive
shall execute a general release of any and all claims which Executive or his
heirs, executors, agents or assigns might have against the Company, its
subsidiaries, affiliates, successors, assigns and its past, present and future
employees, officers, directors, agents and attorneys, except for claims arising
under this Agreement or any employee benefit plan (other than any employee
benefit plan providing a benefit in the nature of a severance benefit) in which
Executive participates or for any right to indemnification to which Executive
may be entitled under this Agreement or as an officer and director of the
Company.

 

iii.            Withholding. 
All payments made by the Company under this Agreement shall be net of
any tax or other amounts required to be withheld by the Employer under
applicable law.

 

iv.            Certain Reductions of Payments by the Company.

 

1.             Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment or
distribution by the Company to or for the benefit of the Executive, whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (a “Payment”), would constitute an “excess parachute
payment” within the meaning of Section 280G(b) of the
U.S. Internal Revenue Code (the “Code”), and thus would result in the Executive
incurring an excise tax under Section 4999 of the Code, then the aggregate
present value of amounts payable or distributable to or for the benefit of the
Executive pursuant to this Agreement (such payments or distributions pursuant
to this Agreement are hereinafter referred to as “Agreement Payments”) shall be
reduced to the Reduced Amount, but only if and to the extent that the after-tax
value to the Executive of reduced Agreement Payments would exceed the after-tax
value to the Executive of the Agreement Payments received by the Executive
without application of such reduction. 
The “Reduced Amount” shall be an amount expressed in present value which
maximizes the aggregate present value of Agreement Payments without causing any
Payment to be nondeductible by the Company because of Section 280G of the
Code.  Anything to the contrary
notwithstanding, if the Reduced Amount is zero and it is determined further
that any Payment which is not an Agreement Payment 

 

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would nevertheless be nondeductible by the
Company for Federal income tax purposes because of Section 280G of the
Code, then the aggregate present value of Payments’ which are not Agreement
Payments shall also be reduced (but not below zero) to an amount expressed in
present value which maximizes the aggregate present value of Payments without
causing any Payment to be nondeductible by the Company because of Section 280G
of the Code.  For purposes of this Section 6(c)(iv),
present value shall be determined in accordance with Section 280G(d)(4) of
the Code.  Thus, for illustrative
purposes only, if the Executive’s average W-2 compensation for the five (5) years
prior to the year in which a change in control occurs (the “Base Amount”) was
$500,000, and the value of the payments and benefits that are contingent upon
the change in control (the “Parachute Payments”) was $1,510,000, the Executive
would have an excess parachute payment within the meaning of Section 280G(b) of
the Code since the value of the parachute payments ($1,510,000) would be
greater than three (3) times the Executive’s Base Amount
($1,500,000).  The amount of the excess
parachute payment would be $1,010,000 (the amount by which the value of the
parachute payments exceeds one (1) times the Base Amount), and if the
aggregate amount of the parachute payments was not reduced, the Executive would
incur an excise tax under Section 4999 of the Code equal to 20% of the
excess parachute payment (or $202,000). 
This excess parachute payment could be avoided if instead, the value of
the parachute payments was reduced by $10,001 to $1,499,999 (since the value of
the parachute payments then would be less than three (3) times the Base
Amount).  Since the Executive would
receive a greater after tax amount, under the foregoing example, if his
parachute payments were reduced by $10,001 (to $1,499,999) than he would if his
parachute payments were not reduced and the Executive incurred a $202,000
excise tax (reducing his parachute payments to $1,308,000) on the excess
parachute payment, the Executive’s parachute payments would be reduced under
this provision to $1,499,999 (by $10,001) to avoid any excess parachute
payments.

 

2.             All determinations required to be made under this Section 6(c)(iv) shall
be made by the Company’s accountants for the Company’s last fiscal year or, at
the mutual agreement of the Executive and the Company, any other nationally or
regionally recognized firm of independent public accountants (the “Accounting
Firm”), which shall provide detailed supporting calculations both to the
Company and the Executive within twenty (20) business days of the date of
termination or such earlier time as is requested by the Company and an opinion
to the Executive that he has substantial authority not to report any excise tax
on his Federal income tax return with respect to any Payments.  Any such determination by the Accounting Firm
shall be binding upon the Company and the Executive.  The Executive shall determine which and how
much of the Payments shall be eliminated or reduced consistent with the
requirements of this Section 6(c)(iv), provided that, if the Executive
does not make such determination within ten business days of the receipt of the

 

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calculations made by the Accounting Firm, the
Company shall elect which and how much of the Payments shall be eliminated or
reduced consistent with the requirements of this Section 6(c)(iv) and
shall notify the Executive promptly of such election.  Within five business days thereafter, the
Company shall pay to or distribute to or for the benefit of the Executive such
amounts as are then due to the Executive under this Agreement.  All fees and expenses of the Accounting Firm
incurred in connection with the determinations contemplated by this Section 6(c)(iv) shall
be borne by the Company.

 

3.             As a result of the uncertainty in the application of Section 280G
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Payments will have been made by the Company
which should not have been made (“Overpayment”) or that additional Payments
which will not have been made by the Company could have been made (“Underpayment”),
in each case, consistent with the calculations required to be made
hereunder.  In the event that the
Accounting Firm, based upon the assertion of a deficiency by the Internal
Revenue Service against the Executive which the Accounting Firm believes has a
high probability of success, determines that an Overpayment has been made, any
such Overpayment paid or distributed by the Company to or for the benefit of
the Executive shall be repaid to the Company; provided, however, that no amount
shall be payable by the Executive to the Company if and to the extent such payment
would not either reduce the amount on which the Executive is subject to tax
under Section 1 and Section 4999 of the Code or generate a refund of
such taxes.  In the event that the
Accounting Firm, based upon controlling precedent or other substantial
authority, determines that an Underpayment has occurred, any such Underpayment
shall be promptly paid by the Company to or for the benefit of the Executive
together with interest at the applicable federal rate provided for in Section 7872(f)(2) of
the Code.

 

7.             Death
or Disability.  In the event of
Executive’s death or disability, the Employment Period will automatically
terminate effective as of the date of such death or disability.  As used in this Agreement, the term “disability”
shall mean inability on the part of Executive for a period of more than six (6) months
in the aggregate during any twelve (12) consecutive month period to perform the
services contemplated under this Agreement. 
A determination of disability shall be made by a physician satisfactory
to both Executive and the Company, provided that if Executive and the Company
do not agree on a physician, Executive and the Company shall each select a
physician and these two physicians together shall select a third physician,
whose determination as to disability shall be binding on all parties.

 

8.             Change
in Control.

 

a.             If Executive’s employment is terminated by the Company
without Cause or by Executive for Good Reason within six (6) months before
and in anticipation of, or twelve (12) months after, a Change in Control (as
defined in Paragraph (b) of this Section 8), Executive 

 

6

 

shall be entitled to receive a supplemental
bonus payment (the “Change in Control Payment”) from the Company equal to one
and one-half (1.5) times the sum of (x) Executive’s then current Base
Salary and (y) Executive’s Annual Target Bonus Amount (as defined in Section 3(b) above)
for the year in which Executive’s employment is terminated or, if greater, for
the year in which the Change in Control occurs. 
The Change in Control Payment shall be paid to Executive within fifteen
(15) days after: (i) the Change in Control if Executive’s employment was
terminated within six (6) months before the Change in Control; or (ii) the
termination of Executive’s employment by the Company if Executive’s employment
terminates within twelve (12) months after the Change in Control.  Executive shall also be entitled to
continuation of all benefits under Section 4(a) hereof at the same
cost to Executive as is applicable to active employees of the Company until the
earlier of (x) the eighteen-month anniversary of the termination date and (y) the
date on which Executive is provided comparable benefits from any other
source.  In addition, all stock options,
restricted stock, restricted stock units and other equity-based interests held
by Executive shall vest and become immediately exercisable.  If Executive is entitled to a Change in
Control Payment and benefits under this Section 8(a), Executive shall not
have any rights to receive any severance payments or benefits pursuant to Section 6(c) hereof.  If Executive’s employment by the Company
terminates within six (6) months prior to the Change in Control and
Executive received severance payments pursuant to Section 6(c) hereof,
any amounts so paid by the Company to Executive shall be deducted from any
Change in Control Payment otherwise payable to Executive pursuant to this Section 8(a).

 

b.             A “Change in Control” will be deemed to have occurred if
(i) a Takeover Transaction occurs, or (ii) any election of directors
of FGX Holdings takes place (whether by the directors then in office or by the
stockholders at a meeting or by written consent) and a majority of the
directors in office following such election are individuals who were not
nominated by a vote of two-thirds of the members of the Board of Directors
immediately preceding such election, or (iii) FGX Holdings effectuates a
complete liquidation of FGX Holdings or a sale or disposition of all or substantially
all of its assets.  A “Change in Control”
shall not be deemed to include, the recapitalization of FGX Holdings or any
transactions related thereto, consummated on or prior to the Effective Date.

 

c.             A “Takeover Transaction” shall mean (i) a merger or
consolidation of FGX Holdings with any other Person, other than a merger or
consolidation in which the individuals who were members of the Board of
Directors of FGX Holdings immediately prior to such transaction continue to
constitute a majority of the board of directors of the surviving corporation or
any parent thereof for a period of not less than twelve (12) months following
the closing of such transaction, or (ii) when any Person becomes after the
date hereof the beneficial owner of securities of FGX Holdings representing
more than fifty percent (50%) of the total number of votes that may be cast for
the election of directors of FGX Holdings, excluding any Person that is
excluded from the definition of “beneficial owner” under Rule 16(a)-1(a)(1) under
the Exchange Act.

 

For purpose of this
Agreement:  (i) the term “Affiliate”
shall have the meaning set forth in Rule 144 under the Securities Act of
1933, as amended; (ii) the term “beneficial owner” shall have the meaning
set forth in Rule 13d-3 under the Exchange Act; (iii) the term “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended; and (iv) the
term “Person” shall have the meaning ascribed to such term under Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include 

 

7

 

(1) FGX Holdings or any of its
subsidiaries, (2) a trustee or other fiduciary holding securities under an
employee benefit plan of FGX Holdings or any of its Affiliates, (3) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (4) a corporation owned, directly or indirectly, by the
stockholders of FGX Holdings in substantially the same proportions as their
ownership of stock of FGX Holdings.

 

9.             Non-Competition.  During the Employment Period and after
termination of Executive’s employment hereunder, whether or not such
termination is without Cause or for Good Reason, Executive shall not be
involved in the Restricted Business Activities, as defined below, for the
period ending twelve (12) months after the date of termination of Executive’s
employment (the “Non-compete Period”) provided that the Company has not
otherwise breached its obligations under the Agreement.  As used in this Agreement, the term “Restricted
Business Activities” shall mean any business which markets and sells to
customers of a class or category to which FGX Holdings or any of its
subsidiaries, markets and sells at the time Executive’s employment terminated
products or services marketed and sold by FGX Holdings or any of its
subsidiaries at such time or products or services which at such time FGX
Holdings or any of its subsidiaries was actively considering marketing and
selling to such customers.  During the
Non-compete Period, Executive shall not, without the written approval of the
Company, directly or indirectly, either as an individual, partner, joint
venturer, employee or agent for any person, company, corporation or
association, or as an officer, director or stockholder of a corporation or
otherwise, enter into or engage in or have a proprietary interest in the
Restricted Business Activities other than the ownership of (a) the stock
of FGX Holdings then held by Executive, and (b) no more than five percent
(5%) of the securities of any other publicly-held company.

 

Executive recognizes and agrees that because
a violation by him of his obligations under this Section 9 will cause
irreparable harm to FGX Holdings or any of its subsidiaries that would be
difficult to quantify and for which money damages would be inadequate, any
party included in the definition of FGX Holdings or any of its subsidiaries
shall have the right to injunctive relief to prevent or restrain any such
violation, without the necessity of posting a bond.  The Non-compete Period will be extended by
the duration of any violation by Executive of any of his obligations under this
Section 9.

 

Executive expressly agrees that the
character, duration and scope of his obligations under this Section 9 are
reasonable in light of the circumstances as they exist at the date upon which
this Agreement has been executed. 
However, should a determination nonetheless be made by a court of
competent jurisdiction at a later date that the character, duration or
geographical scope of such obligations is unreasonable in light of the
circumstances as they then exist, then it is the intention of both Executive
and the Company that Executive’s obligations under this Section 9 shall be
construed by the court in such a manner as to impose only those restrictions on
the conduct of Executive which are reasonable in light of the circumstances as
they then exist and necessary to assure the Company of the intended benefit of
Executive’s obligations under this Section 9.

 

10.           Confidentiality Covenants.   The
Company will not disclose the terms and conditions of Executive’s employment,
unless it is required by law to do so.

 

11.           Section 409A.  To the extent that the Executive otherwise
would be entitled to any payment (whether pursuant to this Agreement or
otherwise) during the six (6) months 

 

8

 

beginning on the Termination Date that would be subject to the
additional tax imposed under Section 409A of the Code (“Section 409A”),
(x) the payment shall not be made to the Executive during such six (6) month
period and (y) the payment, together with interest at the applicable
federal rate provided for in Section 7872(f)(2) of the Code shall be
paid to the Executive on the earlier of the six-month anniversary of the
Termination Date or the Executive’s death. 
Similarly, to the extent that the Executive otherwise would be entitled
to any benefit (other than a payment) during the six months beginning on the
Termination Date that would be subject to the Section 409A additional tax,
the benefit shall be delayed and shall begin being provided (together, if
applicable, with an adjustment to compensate the Executive for the delay) on
the earlier of the six-month anniversary of the Termination Date, or the
Executive’s death.

 

12.           Governing
Law/Jurisdiction.  This Agreement
shall be governed by and interpreted and governed in accordance with the laws
of the State of Rhode Island.  The
parties agree that this Agreement was made and entered into in Rhode Island and
each party hereby consents to the jurisdiction of a competent court in Rhode
Island to hear any dispute arising out of this Agreement.

 

13.           Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof and thereof and supersedes and cancels any and all
previous agreements, written and oral, regarding the subject matter hereof
between the parties hereto, with the exception of the Proprietary Rights Agreement
with the Company signed by Executive. 
This Agreement shall not be changed, altered, modified or amended,
except by a written agreement signed by both parties hereto.

 

14.           Notices.  All notices, requests, demands and other
communications required or permitted to be given or made under this Agreement
shall be in writing and shall be deemed to have been given if delivered by
hand, sent by generally recognized overnight courier service, telex or
telecopy, or certified mail, return receipt requested.

 

(a)                                  to the Company
at:

500 George Washington Highway

Smithfield, Rhode Island 02917

Attn: 
Chief Executive Officer

 

(b)                                 to Executive
at:

the last home address appearing on the
Company’s records

 

Any such notice or other communication will
be considered to have been given (i) on the date of delivery in person, (ii) on
the third day after mailing by certified mail, provided that receipt of
delivery is confirmed in writing, (iii) on the first business day
following delivery to a commercial over-night courier or (iv) on the date
of facsimile transmission (telecopy) provided that the giver of the notice
obtains telephone confirmation of receipt.

 

Either party may, by notice given to the
other party in accordance with this Section, designate another address or person
for receipt of notices hereunder.

 

15.           Severability.  If any term or provision of this Agreement,
or the application thereof to any person or under any circumstance, shall to
any extent be invalid or unenforceable, 

 

9

 

the remainder of this Agreement, or the application of such terms to
the persons or under circumstances other than those as to which it is invalid
or unenforceable, shall be considered severable and shall not be affected
thereby, and each term of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.  The
invalid or unenforceable provisions shall, to the extent permitted by law, be
deemed amended and given such interpretation as to achieve the economic intent
of this Agreement.

 

16.           Waiver.  The failure of any party to insist in any one
instance or more upon strict performance of any of the terms and conditions
hereof, or to exercise any right or privilege herein conferred, shall not be
construed as a waiver of such terms, conditions, rights or privileges, but same
shall continue to remain in full force and effect.  Any waiver by any party of any violation of,
breach of or default under any provision of this Agreement by the other party
shall not be construed as, or constitute, a continuing waiver of such
provision, or waiver of any other violation of, breach of or default under any
other provision of this Agreement.

 

17.           Successors
and Assigns.  This Agreement shall be
binding upon the Company and any successors and assigns of the Company and
shall inure to the benefit of Executive and his heirs, personal representations
and assigns.

 

18.           Indemnification.  The Company shall indemnify Executive to the
maximum extent permitted under applicable law against all liabilities and
expenses, including amounts paid in satisfaction of judgments, in compromise,
or as fines and penalties, and counsel fees, reasonably incurred by him in
connection with the defense or disposition of any civil, criminal,
administrative, or investigative action, suit or other proceeding, whether
civil or criminal, in which he may be involved or with which he may be
threatened, while an officer or director of the Company or FGX Holdings or any
of their direct or indirect subsidiaries or affiliates or thereafter, by reason
of his being or having been an officer or director of the Company or FGX
Holdings or any of the their direct or indirect subsidiaries or
affiliates.  Expenses (including
attorneys’ fees) incurred by Executive in defending any such action, suit or
other proceeding shall be paid by the Company in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking
by or on behalf of Executive to repay such amount if it shall be ultimately
determined that he is not entitled to be indemnified by the Company.  The right of indemnification provided herein
shall not be exclusive of or affect any other rights to which Executive may be
entitled.  The provisions hereof shall
survive expiration or termination of this Agreement for any reason whatsoever.

 

19.           Counterparts.  This Agreement may be executed in
counterparts and by facsimile, each of which shall be an original with the same
effect as if the signatures thereto and hereto were upon the same instrument.

 

20.           Third
Party Beneficiaries.  Each of the
parties hereto agree that FGX Holdings and each of its subsidiaries is and
shall be deemed an intended third party beneficiary of the Company’s rights
under Section 9 of this Agreement with full rights to enforce the provisions
thereof as if a signatory hereto.

 

21.           Attorney’s
Fees.  In any action or proceeding
brought to enforce any provision of this Agreement, the prevailing party shall
be entitled to recover reasonable attorneys’ fees and costs from the other
party to the action or proceeding. For purposes of this Agreement, the 

 

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“prevailing
party” shall be deemed to be that party who obtains substantially the
result sought, whether by settlement, mediation, judgment or otherwise, and “attorneys’ fees” shall include,
without limitation, the actual attorneys’ fees incurred in retaining counsel
for advice, negotiations, suit, appeal or other legal proceeding, including
mediation and arbitration.

 

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11

 

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

 

	
   

  	
  FGX INTERNATIONAL INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Alec Taylor

  
	
   

  	
  Name:

  	
  Alec Taylor

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
				

 

	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Robert Grow

  
	
   

  	
  Name: 

  	
  Robert Grow

  

 

[Signature
Page to Employment Agreement]Exhibit 4.4

 

THE
MACERICH COMPANY

 

WARRANT
TO PURCHASE COMMON STOCK

 

MAC – 2009 – [          ]

 

THE OFFER AND SALE OF THE
SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR QUALIFIED UNDER STATE
SECURITIES LAWS, AND THEREFORE SUCH SECURITIES MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND EFFECTIVE QUALIFICATION
THEREOF UNDER APPLICABLE STATE SECURITIES LAWS, OR IF SUCH SALE, TRANSFER,
ASSIGNMENT, HYPOTHECATION OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE ACT AND THE QUALIFICATION REQUIREMENTS OF THE RELEVANT
STATE SECURITIES LAWS.

 

This
certifies that, for $[                  ]
and other good and valuable consideration, the receipt of which is hereby
acknowledged, [                              ](the
“Holder”) is entitled to purchase, from time to time, from The Macerich
Company, a Maryland corporation (the “Company”), fully paid and
non-assessable shares of common stock of the Company, par value $0.01 per share
(each, a “Share” and collectively, the “Shares”), commencing on
the date set forth on the signature page hereof (the “Commencement Date”),
on the terms and conditions set forth herein.

 

1.                                       Number of Shares; Vesting; Strike Price and Expiration Date.

 

(a)                                  This Warrant may be exercised for [                      ]
Shares.

 

(b)                                 The right to exercise this Warrant shall fully vest on the
Commencement Date.

 

(c)                                  As used herein, the “Strike Price” means: (i) from
the date hereof until and including the second anniversary of such date,
$30.61751, and (ii) from the day after the second anniversary until and
including the third anniversary of the date hereof,  $34.792625, as such prices may be adjusted
from time to time pursuant to the terms hereof.

 

(d)                                 All purchase rights represented by this Warrant shall
terminate at 5:00 p.m. PDT on the third anniversary of the Commencement
Date (the “Expiration Date”).  To
the extent that this Warrant has not been exercised before the Expiration Date,
this Warrant shall become null and void and all rights hereunder and all rights
in respect hereof shall cease as of the Expiration Date.

 

2.                                       Exercise and Payment.

 

(a)                                  Exercise for Shares.  This Warrant may be exercised in whole or in
part, from time to time, by the Holder by surrender of this Warrant (and the
Notice of Exercise annexed hereto duly completed and executed by the Holder) to
the Company at the principal executive office of the Company, together with
payment in the amount obtained by multiplying the 

 

 

Strike Price then in effect by the
number of Shares to be purchased (as designated in the Notice of
Exercise).  Payment must be by wire
transfer of immediately available funds.

 

(b)                                 Net Issue Exercise - Cash or Shares. In lieu of exercising this Warrant in accordance with Section 2(a),
the Holder may elect a net issue exercise in accordance with this Section 2(b).  In the event the Holder elects a net issue
exercise pursuant to this Section 2(b), the Company shall determine, in
its sole discretion, whether to deliver cash or Shares in exchange for this
Warrant, with the amount of cash or the number of Shares determined in
accordance with this Section 2(b), and the Company shall notify the Holder
of its election within five (5) business days following receipt by the
Company of the Holder’s Notice of Exercise. 
The Holder may elect a net issue exercise by surrendering this Warrant
(and the Notice of Exercise annexed hereto duly completed and executed by the
Holder) to the Company at the principal executive office of the Company.

 

If in the Notice of Exercise the
Holder elects a net issue exercise, and the Company elects to deliver Shares,
then the Company shall issue to the Holder a number of Shares computed using
the following formula:

 

	
   

  	
  X = Y (A-B)

  	
   

  
	
   

  	
   

  	
     A

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Where

  	
  X

  	
     =

  	
  the
  number of Shares to be issued to the Holder.

  
	
   

  	
  Y

  	
     =

  	
  the
  number of Shares then purchasable under this Warrant designated in the Notice
  of Exercise.

  
	
   

  	
  A

  	
     =

  	
  the then current Fair
  Value of the Shares.

  
	
   

  	
  B

  	
     =

  	
  the
  then current Strike Price.

  
					

 

If in the Notice of
Exercise the Holder elects a net issue exercise, and the Company elects to
deliver cash, then the Company shall deliver to the Holder an amount of cash computed using
the following formula:

 

	
   

  	
  C = Y(A-B)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Where

  	
  C

  	
     =

  	
  the
  aggregate dollar amount to be delivered to the Holder.

  
	
   

  	
  Y

  	
     =

  	
  the
  number of Shares then purchasable under this Warrant designated in the Notice
  of Exercise.

  
	
   

  	
  A

  	
     =

  	
  the then current Fair
  Value of the Shares.

  
	
   

  	
  B

  	
     =

  	
  the
  then current Strike Price.

  
					

 

As used in this Warrant, “Fair Value” shall mean, on any date specified herein (i) in
the case of cash, the dollar amount thereof, (ii) in the case of a
security listed on a national securities exchange, the Current Market Price,
and (iii) in all other cases, the fair value thereof (as of a date which
is within 20 days of the date on which the Company receives the Notice of
Exercise except as otherwise specifically provided for in Sections 2(c) and
8(d) below) determined in good faith by the Board of Directors of the
Company; provided, however, that if the Initial Holder (defined below) does not
agree with the Board of Directors’ determination of Fair Value, the Fair Value
shall be determined in good faith, by an independent investment banking firm
selected jointly by the Company and the Initial Holder or, if that selection
cannot be made within ten days, by an independent investment banking firm
selected by the American Arbitration Association in accordance with its rules,

 

2

 

and provided further,
that the Initial Holder shall pay the fees and expenses of any third parties
incurred in connection with determining the Fair Value in the event the
independent investment banking firm’s determination of Fair Value is equal to
or less than the Fair Value as determined by the Board of Directors, and the
Company shall pay such fees and expenses in the event the independent
investment banking firm’s determination of Fair Value is greater than the Fair
Value as determined by the Board of Directors.  As used in this Section 2(b), “Current
Market Price” shall mean, the volume-weighted average closing price of the
Shares for the five trading days immediately preceding the date on which the Company receives the Notice of Exercise
except as otherwise specifically provided for in Sections 2(c) and 8(d) below. As used in this Warrant, the “Initial
Holder” shall mean, [                            ]  who, for the avoidance of doubt, is also referred to in
this Warrant as, a “Holder.”

 

(c)                                  Automatic Net Issuance Immediately Prior to Expiration.  Notwithstanding
anything herein to the contrary, if immediately prior to the Expiration Date
the net issue exercise of this Warrant pursuant to Section 2(b) would
result in cash or Shares being due to the Holder, then to the extent not
previously exercised by the Holder, this Warrant shall be deemed automatically
exercised in full immediately prior to 5:00 p.m. PDT on the Expiration
Date by the Holder via a net issue exercise pursuant to Section 2(b);
provided, that the Holder must deliver a Notice of Exercise (accompanied by
this Warrant certificate) to the Company within two months of the Expiration
Date and, in the event such Notice of Exercise (accompanied by this Warrant
certificate) is not delivered within two months of the Expiration Date, the
automatic exercise of this Warrant pursuant to this Section 2(c) will
not occur and this Warrant shall be null and void.

 

3.                                       Delivery of Certificates or Cash.  In the event the
Holder exercises this Warrant for Shares pursuant to Section 2(a), or
pursuant to Section 2(b) or Section 2(c) and the Company
elects to deliver Shares, this Warrant shall be deemed to have been exercised
and the Holder shall be deemed to have become the holder of record of such
Shares as of the date of the surrender of this Warrant certificate to the
Company, and in the case of an exercise pursuant to Section 2(a), payment
of the Strike Price to the Company; provided, however, with respect to a deemed
exercise under Section 2(c), the net issue exercise calculations shall
occur as though the Holder exercised immediately prior to 5:00 p.m. PDT on
the Expiration Date.  Within a reasonable
period of time after exercise, in whole or in part, of this Warrant pursuant to
Section 2(a), or Section 2(b) or Section 2(c) where
the Company elects to deliver Shares, the Company shall issue in the name of
and deliver to the Holder a certificate for the number of fully paid and
non-assessable Shares that the Holder shall have requested in the Notice of
Exercise, or the number of Shares calculated pursuant to Section 2(b) in
the event the Holder elects a net issue exercise in the Notice of Exercise and
the Company elects to deliver Shares, up to the maximum then available
hereunder. If this Warrant is exercised in part, the Company shall deliver to
the Holder a new Warrant for the unexercised portion of this Warrant at the
time of delivery of such certificate for the Shares.  If the Company elects to pay cash pursuant to
the Holder’s net issue exercise under Section 2(b) or Section 2(c),
the Company shall pay such cash to the Holder within two (2) business days
following the Company’s notice to the Holder of its election to pay cash.

 

4.                                       No Fractional Shares.  No fractional Shares or scrip representing
fractional Shares will be issued upon exercise of this Warrant.  If upon any exercise of this Warrant a
fraction of a Share results, the Company will pay the Holder the difference
between the cash value of the fractional Share and the portion of the Strike
Price allocable to the fractional Share.

 

3

 

5.                                       Charges, Taxes and Expenses.  The Holder shall pay all taxes or other incidental
charges, if any, in connection with (i) the transfer from the Company to
the Holder of the Shares purchased pursuant to the exercise hereof, and (ii) the
transfer from the Initial Holder to a Permitted Transferee (or any other
transfer by the Initial Holder or a Holder to which the Company consents in
writing) of all or any portion of this Warrant in accordance with Section 14(g) of
this Warrant.

 

6.                                       Loss, Theft, Destruction or Mutilation of Warrant.  Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft or
destruction of this Warrant, of indemnity or security reasonably satisfactory
to the Company, and upon reimbursement to the Company of all reasonable
expenses incidental thereto, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will make and deliver a new Warrant of like
tenor, dated as of such date as the foregoing conditions have been satisfied in
the event of loss, theft or destruction, or the surrender date in the event of
mutilation, in lieu of this Warrant.

 

7.                                       Saturdays, Sundays, Holidays, Etc.  If the last or
appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday or a Sunday or a holiday
observed by The New York Stock Exchange (the “NYSE”), then such action may be
taken or such right may be exercised on the next succeeding weekday which is
not a holiday observed by the NYSE.

 

8.                                       Adjustment of Strike Price and Number of Shares.  The number of and
kind of securities purchasable upon exercise of this Warrant and the Strike
Price shall be subject to adjustment from time to time as follows:

 

(a)                                  Subdivisions and Combinations.  If the Company shall at any time after the
date hereof, but prior to the expiration of this Warrant, subdivide its
outstanding securities as to which purchase rights under this Warrant exist, by
split-up or otherwise, or combine its outstanding securities as to which
purchase rights under this Warrant exist, the number of Shares as to which this
Warrant is exercisable as of the date of such subdivision or combination shall
forthwith be proportionately increased in the case of a subdivision or
proportionately decreased in the case of a combination.  Appropriate corresponding adjustments shall
also be made to the Strike Price, so that the aggregate purchase price payable
for the total number of Shares purchasable under this Warrant as of such date
shall remain the same.

 

(b)                                 Reclassification, Etc.  Except as specifically provided for in Section 8(c) below,
if at any time after the date hereof there shall be a change, reorganization or
reclassification of the Shares into which this Warrant is exercisable into the
same or a different number of a different type or class of securities, then the
Holder shall thereafter be entitled to receive upon exercise of this Warrant,
during the period specified herein and upon payment of the Strike Price then in
effect, the number of shares of other securities or property resulting from
such change, reorganization or reclassification that would have been received
by the Holder for the Shares subject to this Warrant had this Warrant been
exercised immediately prior to the time of the reclassification.

 

(c)                                  Consolidation, Merger or Sale.  If the Company shall do any of the following
(each, a “Triggering Event”): (i) consolidate with or merge into
any other entity

 

4

 

and the
Company shall not be the continuing or surviving corporation of such
consolidation or merger, or (ii) permit any other entity to consolidate
with or merge into the Company and the Company shall be the continuing or
surviving entity but, in connection with such consolidation or merger, the
capital stock of the Company shall be changed into or exchanged for securities
of any other entity or cash or any other property, or (iii) transfer all
or substantially all of its properties or assets to any other person or entity,
then, and in the case of each such Triggering Event, proper provision shall be
made so that, upon the basis and the terms and in the manner provided in this
Warrant, the Holder of this Warrant shall be entitled upon the exercise hereof
at any time after the consummation of such Triggering Event but prior to the
Expiration Date, and to the extent this Warrant is not exercised prior to such
Triggering Event, to receive at the Strike Price in effect at the time
immediately prior to the consummation of such Triggering Event (subject to
adjustments (subsequent to such Triggering Event) as nearly equivalent as
possible to the adjustments provided for elsewhere in this Section 8), in
lieu of the Shares issuable upon exercise of this Warrant prior to such
Triggering Event, the securities, cash and/or property to which such Holder
would have been entitled upon the consummation of such Triggering Event if such
Holder had exercised the rights represented by this Warrant immediately prior
thereto (and the Company shall select the form of consideration, to the extent
applicable, received by the Holder upon exercise of this Warrant subsequent to
such Triggering Event), subject to adjustments (subsequent to such Triggering
Event) as nearly equivalent as possible to the adjustments provided for
elsewhere in this Section 8.

 

(d)                                 Extraordinary Distributions.
Except as specifically provided for in Section 8(c) above, if the
Company shall distribute to all holders of its Shares: (i) any shares of
capital stock of the Company, evidence of indebtedness, or other securities or
rights convertible into shares of capital stock of the Company (but excluding
Ordinary Dividends) without
receiving payment of any consideration in exchange therefor, or (ii) cash (but excluding Ordinary Dividends), then,
in each such case:

 

(i)                                     the Strike Price in effect immediately prior to the close of
business on the record date fixed for the determination of holders of any class
of securities entitled to receive such distribution shall be reduced, effective
as of the close of business on such record date, to a price determined by
multiplying such Strike Price by a fraction

 

(x) the numerator of which shall be the Fair Value of a
Share in effect on such record date or, if the Shares trade on an
ex-distribution basis, on the date prior to the commencement of ex-distribution
trading, less the Fair Value of such distribution applicable to one Share, and

 

(y) the denominator of which shall be the Fair Value of
a Share in effect on such record date or, if the Shares trade on an
ex-distribution basis, on the date prior to the commencement of ex-distribution
trading;

 

and

 

5

 

(ii)                                  this Warrant shall thereafter evidence the right to receive,
at the adjusted Strike Price, that number of Shares (calculated to the nearest
Share) obtained by dividing:

 

(x) the product of the aggregate number of Shares
covered by this Warrant immediately prior to such adjustment and the Strike
Price in effect immediately prior to such adjustment of the Strike Price by,

 

(y) the Strike Price in effect immediately after such
adjustment of the Strike Price.

 

As used herein “Ordinary Dividends” shall mean all quarterly dividends,
whether paid in cash, shares of capital stock of the Company or other
securities, or any combination of the foregoing, except extraordinary or
special dividends.

 

9.                                       Notices of Adjustments, Etc.  Whenever the Strike Price or number of Shares
purchasable hereunder shall be adjusted pursuant to Section 8 hereof,
within five business days of the event requiring the adjustment, the Company
shall deliver to the Holder (in accordance with Section 14(c)) a
certificate setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment
was calculated and the Strike Price and number of shares purchasable hereunder
after giving effect to such adjustment.

 

10.                                 No Rights as Stockholder.  Prior to exercise of this Warrant, the Holder
shall not be entitled to any rights as a stockholder of the Company with
respect to the Shares, including (without limitation) the right to vote such
Shares, receive distributions thereon, or be notified of stockholder meetings,
and the Holder shall not be entitled to any notice or other communication
concerning the business or affairs of the Company.

 

11.                                 Shares Fully Paid, Reservation and Listing of Shares;
Covenants.

 

(a)                                  Shares Fully Paid.  The Company covenants and agrees that all
Shares which may be issued upon the exercise of this Warrant or otherwise
hereunder will, upon issuance, be duly authorized, validly issued, fully paid and
non-assessable.  The Company further
covenants and agrees that during the period within which this Warrant may be
exercised, the Company will at all times have authorized and reserved for the
purpose of the issue upon exercise of this Warrant a number of Shares equal to
100% of the aggregate number of Shares exercisable hereunder to provide for the
exercise of this Warrant.

 

(b)                                 Covenants.  The Company shall not by any action
including, without limitation, amending the Articles of Incorporation or the Bylaws
of the Company, or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant.

 

12.                                 Restricted Securities.  The Holder understands that this Warrant and
the Shares purchasable hereunder constitute “restricted securities” under the
federal securities laws inasmuch as they are, or will be, acquired from the
Company in transactions not 

 

6

 

involving a
public offering and accordingly may not, under such laws and applicable
regulations, be resold without registration under the Act, or an applicable
exemption from such registration. The Holder hereby acknowledges that the
securities legend on Exhibit A to the Notice of Exercise attached hereto
will be placed on any Shares issued to the Holder upon exercise of this
Warrant.

 

13.                                 Certification of Investment Purpose.  Unless a current
registration statement under the Act shall be in effect with respect to the
securities to be issued upon exercise of this Warrant, in which case the Holder
may be asked to provide a modified version of the written certification
attached hereto, the Holder covenants and agrees that, at the time of exercise
hereof, it will deliver to the Company a written certification in substantially
the form of Exhibit A to the Notice of Exercise attached hereto, executed
by the Holder, which certifies to the Company that the Holder is an “accredited
investor” as that term is defined in Rule 501 of Regulation D promulgated
under the Act, that the securities acquired by such Holder upon exercise hereof
are for the account of such Holder and acquired for investment purposes only
and that such securities are not acquired with a view to, or for sale or resale
in connection with, any distribution thereof.

 

14.                                 Miscellaneous.

 

(a)                                  Construction.  Unless the context indicates otherwise, the
term “Warrant” shall include any and all warrants outstanding pursuant
to this Agreement, including those evidenced by a certificate upon exchange or
substitution pursuant to the terms hereof.

 

(b)                                 Restrictions.  By receipt of this Warrant, the Holder makes
the same representations and warranties with respect to the acquisition of this
Warrant as the Holder is required to make upon the exercise of this Warrant and
acquisition of the Shares purchasable hereunder as set forth in the Form of
Investment Letter attached as Exhibit A to the Notice of Exercise, the
forms of which are attached hereto as Exhibit A.

 

(c)                                  Notices.  Unless otherwise provided, any notice
required or permitted under this Warrant shall be given in writing and shall be
deemed effectively given upon personal delivery to the party to be notified or
three days following deposit with the United States Post Office, by registered
or certified mail, postage prepaid and addressed to the party to be notified
(or one day following timely deposit with a reputable overnight courier with
next day delivery instructions), or upon confirmation of receipt by the sender
of any notice by facsimile transmission, at the address indicated below or at
such other address as such party may designate by ten days’ advance written
notice to the other party.

 

	
  To Holder:

  	
  [                               ]

  
	
   

  	
   

  
	
  With a Copy to:

  	
  Paul Hastings
  Janofsky & Walker LLP

  
	
   

  	
  695 Town Center Drive,
  Seventeenth Floor

  
	
   

  	
  Costa Mesa, California
  92626

  
	
   

  	
  Attention: John
  Simonis, Esq.

  
	
   

  	
  Telecopy: 714-668-6336

  

 

7

 

	
  To the Company:

  	
  The Macerich Company

  
	
   

  	
  401 Wilshire Boulevard,
  Suite 700

  
	
   

  	
  Santa Monica,
  California 90401

  
	
   

  	
  Attention: Chief Legal
  Officer

  
	
   

  	
  Facsimile: (310)
  394-7692

  
	
   

  	
   

  
	
  And:

  	
   

  
	
   

  	
   

  
	
   

  	
  The Macerich Company

  
	
   

  	
  401 Wilshire Boulevard,
  Suite 700

  
	
   

  	
  Santa Monica,
  California 90401

  
	
   

  	
  Attention: Chief
  Financial Officer

  
	
   

  	
  Facsimile: (310)

  
	
   

  	
   

  
	
  With a copy to:

  	
  Manatt,
  Phelps & Phillips, LLP

  
	
   

  	
  11355 West Olympic
  Boulevard

  
	
   

  	
  Los Angeles, California
  90064

  
	
   

  	
  Attention: F. Thomas
  Muller, Esq.

  
	
   

  	
  Facsimile: (310)
  914-5852

  

 

(d)                                 Governing Law.  Any
dispute in the meaning, effect or validity of this Warrant shall be resolved in
accordance with the laws of the State of Maryland without regard to the
conflict of laws provisions thereof.

 

(e)                                  Attorneys’ Fees.  In the event that any suit or action is
instituted under or in relation to this Warrant, including without limitation
to enforce any provision in this Warrant, the prevailing party in such dispute
shall be entitled to recover from the losing party all fees, costs and expenses
of enforcing any right of such prevailing party under or with respect to this
Warrant, including, without limitation, such reasonable fees and expenses of
attorneys and accountants, which shall include, without limitation, all fees,
costs and expenses of appeals.

 

(f)                                    Entire Agreement.  This Warrant and the exhibits hereto
constitute the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof, and supersede all prior and
contemporaneous agreements and understandings, whether oral or written, between
the parties hereto with respect to the subject matter hereof.

 

(g)                                 Binding Effect; and Assignment.

 

(i)                                     This Warrant and the various rights and obligations arising
hereunder shall inure to the benefit of and be binding upon the Company and its
successors and assigns, and the Holder and its successors and permitted
assigns.

 

8

 

(ii)                                  The Holder may not sell, assign or otherwise transfer this
Warrant or its rights or obligations hereunder without the express written
consent of the Company, which consent may be withheld, delayed or conditioned
in the sole and absolute discretion of the Company.

 

(iii)                               Notwithstanding anything herein to the contrary, the Initial Holder, and only the Initial Holder with
respect to (1), (4) and (5)  below, and the Initial Holder or the
Holder with respect to (2) and (3) below, may assign or transfer this
Warrant, without the consent of the Company, following at least ten business days prior written notice by the
Initial Holder (or the Holder if being delivered pursuant to (2) or (3) below)
to the Company, which written notice shall be accompanied by a legal opinion
reasonably satisfactory to the Company issued by legal counsel to the Initial
Holder (or the Holder if being delivered pursuant to (2) or (3) below)
reasonably acceptable to the Company, to the effect that such transfer or
assignment may be effected without registration or qualification under any U.S.
federal and state laws and applicable foreign laws then in effect: (1) in whole or in part to any of the Initial Holder’s
direct or indirect stockholders, partners, limited partners, members or other
equity owners; (2) in whole, and not in part, to any permitted transferee
of the Holder’s direct or indirect membership interest in GI FIX InvestCo, LLC
(“GI FIX InvestCo”) to whom the Holder actually transfers its direct or
indirect membership interest in GI FIX InvestCo; (3) in whole, and not in
part, to any permitted transferee of GI FIX InvestCo’s membership interest in
Flatiron Property Holding, L.L.C. (“Flatiron”), to whom GI FIX InvestCo
actually transfers its membership interest in Flatiron; (4) in whole or in
part to GI Partners Fund III L.P., GI Partners Fund III-A L.P. or GI Partners Fund
III-B L.P.; or (5) in whole, and not in part, to any one unrelated third
party (each of (1), (2), (3), (4) and (5), a “Permitted Transferee”).  Any Permitted Transferee shall be deemed to
be a Holder for all purposes hereunder and in no event shall a Permitted
Transferee be deemed to be the “Initial Holder” or have the power or authority
to exercise any of the rights granted to the Initial Holder.

 

(iv)                              Subject to the provisions of Section 14, this Warrant
and all rights hereunder are transferable upon surrender of this Warrant
certificate with a properly executed assignment (in the form of Exhibit B
hereto) at the principal executive office of the Company. The assignment of a
Warrant to a transferee hereof shall be deemed to be the acceptance by such transferee
of all of the rights and obligations of a “Holder” of this Warrant.

 

(h)                                 Waiver; Consent.  This Warrant may not be changed, amended,
terminated, augmented, rescinded or discharged (other than by performance), in
whole or in part, except by a writing executed by the parties hereto, and no
waiver of any of the provisions or conditions of this Warrant or any of the
rights of a party hereto shall be effective or binding unless such waiver shall
be in writing and signed by the party claimed to have given or consented
thereto.

 

[Remainder
of the Page is Intentionally Left Blank]

 

9

 

IN
WITNESS WHEREOF, the parties hereto have executed this Warrant effective as of
the date set forth below.

 

	
  DATED: September 3,
  2009

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  THE MACERICH COMPANY, a
  Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Richard A. Bayer,
  Senior Executive Vice President, Chief Legal Officer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOLDER

  
	
   

  	
   

  
	
   

  	
  [                                                                 ]

  

 

Signature Page to MAC – 2009 –
[     ]

 

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

To:          The Macerich Company

 

[EXERCISE PURSUANT TO SECTION 2(a)][The
Holder hereby elects to purchase                           
Shares of the Company pursuant to the terms of the attached Warrant, and
tenders herewith payment of the Strike Price pursuant to the terms of the
Warrant.]

 

[NET ISSUE EXERCISE
PURSUANT TO SECTION 2(b)][The Holder hereby elects to surrender                           
of the Shares of the Company underlying the attached Warrant pursuant to the
terms of the attached Warrant, and hereby agrees to accept in exchange
therefor, at the election of the Company, either Shares or cash in the amount
calculated pursuant to the terms of the Warrant.]

 

Defined terms used herein
and not defined herein shall have the meaning ascribed to them in the Warrant.

 

Attached
as Exhibit A is an investment representation letter addressed to
the Company and executed by the Holder as required by Section 13 of the
Warrant.

 

Please
issue a new Warrant for the unexercised portion of the attached Warrant, if
any, in the name of the Holder.

 

 

	
  Dated:

  	
   

  	
   

  	
  HOLDER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [                                                          ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

A-1

 

Exhibit A

 

To:          The Macerich Company

 

In connection with the purchase by the Holder of                   
Shares of the Company, upon exercise of that certain Warrant dated as of September 3,
2009, the Holder hereby represents and warrants as follows:

 

The Holder is an “accredited investor” as that term
is defined in Rule 501 of Regulation D promulgated under the Act.  The Shares to be received by the Holder upon
exercise of the Warrant are being acquired for its own account, not as a
nominee or agent, and not with a view to resale (except to the extent exempt
from the registration requirements of the Act and the qualification
requirements of the relevant state securities laws) or distribution of any part
thereof, and the Holder has no present intention of selling, granting any participation
in, or otherwise distributing the same. 
The Holder believes it has received all the information it considers
necessary or appropriate for deciding whether to purchase the Shares.

 

The Holder understands that the Shares are
characterized as “restricted securities” under the federal securities laws
inasmuch as they are being acquired from the Company in transactions not
involving a public offering, and that under such laws and applicable
regulations such securities may be resold without registration under the Act,
only in certain limited circumstances. 
In this connection, the Holder represents and warrants that it is
familiar with Rule 144 of the Act, as presently in effect, and understands
the resale limitations imposed by Rule 144 and by the Act.

 

The Holder understands the instruments evidencing
the Shares may bear the following legend:

 

THE OFFER AND SALE OF THE SECURITIES EVIDENCED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”) OR QUALIFIED UNDER STATE SECURITIES LAWS, AND
THEREFORE SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE ACT AND EFFECTIVE QUALIFICATION THEREOF UNDER
APPLICABLE STATE SECURITIES LAWS, OR IF SUCH SALE, TRANSFER, ASSIGNMENT,
HYPOTHECATION OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF
THE ACT AND THE QUALIFICATION REQUIREMENTS OF THE RELEVANT STATE SECURITIES
LAWS.

 

Defined terms used herein and not defined herein
shall have the meaning ascribed to them in the Warrant.

 

 

	
  Dated:

  	
   

  	
   

  	
  HOLDER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [                                                            ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

A-2

 

EXHIBIT B

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED,                                                                                   
hereby sells, assigns and transfers all of the rights of the undersigned under
the attached Warrant with respect to the number of Shares of the Company
underlying the attached Warrant covered thereby and designated below, unto:

 

	
  Name
  of “Assignee”

  	
   

  	
  Address

  	
   

  	
  No. of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  Dated:

  	
   

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
  (if
  applicable)

  

 

Assignee
hereby agrees to be subject to and bound by all of the provisions of the
attached Warrant as the “Holder.” The Assignee understands and hereby
acknowledges that as a Holder of the Warrant the Assignee is not entitled to
those rights afforded solely to the Initial Holder of the Warrant. The Assignee makes the same
representations and warranties with respect to the acquisition of the Warrant
as the Holder is required to make upon the exercise of a Warrant and
acquisition of the Shares purchasable thereunder as set forth in the Form of
Investment Letter attached as Exhibit A to the Notice of Exercise, the
form of which is attached as Exhibit A to the attached Warrant.

 

 

	
   

  	
  Dated:

  	
   

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
  (if
  applicable)

  

 

B-1

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