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Exhibit 10.6.1    
    

    

THE MACERICH COMPANY

2005 DEFERRED COMPENSATION PLAN

FOR SENIOR EXECUTIVES

(Effective January 1, 2005)  

THE MACERICH COMPANY

2005 DEFERRED COMPENSATION PLAN

FOR SENIOR EXECUTIVES  

TABLE OF CONTENTS  

	 
	 	 
	 	Page

	ARTICLE I	 	TITLE AND DEFINITIONS	 	1
	 	1.1	 	Title	 	1
	 	1.2	 	Definitions	 	1
	ARTICLE II	 	PARTICIPATION	 	3
	 	2.1	 	Participation	 	3
	ARTICLE III	 	DEFERRAL ELECTIONS	 	3
	 	3.1	 	Elections to Defer Compensation	 	3
	 	3.2	 	Investment Elections	 	4
	ARTICLE IV	 	PARTICIPANT ACCOUNTS	 	5
	 	4.1	 	Deferral Account	 	5
	 	4.2	 	Company Matching Account	 	6
	ARTICLE V	 	VESTING	 	6
	 	5.1	 	Deferral Account	 	6
	 	5.2	 	Company Matching Account	 	6
	ARTICLE VI	 	DISTRIBUTIONS	 	7
	 	6.1	 	Time and Form of Distribution	 	7
	 	6.2	 	Small Benefits	 	7
	 	6.3	 	Change in Election of Time and Form of Distribution	 	8
	ARTICLE VII	 	HARDSHIP DISTRIBUTIONS	 	8
	 	7.1	 	Hardship Distribution	 	8
	ARTICLE VIII	 	LIFE INSURANCE FOR ELIGIBLE EMPLOYEES	 	8
	 	8.1	 	Life Insurance Coverage	 	8
	ARTICLE IX	 	ADMINISTRATION	 	9
	 	9.1	 	Members	 	9
	 	9.2	 	Committee Action	 	9
	 	9.3	 	Powers and Duties of the Committee	 	9
	 	9.4	 	Construction and Interpretation	 	9
	 	9.5	 	Information	 	10
	 	9.6	 	Compensation, Expenses and Indemnity	 	10
	 	9.7	 	Quarterly Statements	 	10
	ARTICLE X	 	MISCELLANEOUS	 	10
	 	10.1	 	Unsecured General Creditor	 	10
	 	10.2	 	Restriction Against Assignment	 	10
	 	10.3	 	Withholding	 	11
	 	10.4	 	Amendment, Modification, Suspension or Termination	 	11
	 	10.5	 	Governing Law	 	11
	 	10.6	 	Receipt or Release	 	11
	 	10.7	 	Payments on Behalf of Persons under Incapacity	 	12
	 	10.8	 	Headings, etc. Not Part of Agreement	 	12
	 	10.9	 	Limitation on Participants' Rights	 	12
	ARTICLE XI	 	CLAIMS PROCEDURE	 	12
	 	11.1	 	Claims Procedure	 	12

THE MACERICH COMPANY

2005 DEFERRED COMPENSATION PLAN

FOR SENIOR EXECUTIVES

(Effective January 1, 2005)  

        The Macerich Company (the "Company") hereby establishes this deferred compensation plan (the "Plan"), effective January 1, 2005, to provide supplemental
retirement income benefits through deferrals of salary and bonuses. 

ARTICLE I

TITLE AND DEFINITIONS  

1.1   Title.  

        This Plan shall be known as The Macerich Company 2005 Deferred Compensation Plan for Senior Executives. 

1.2   Definitions.  

        Whenever the following words and phrases are used in this Plan, with the first letter capitalized, they shall have the meanings specified below. 

        "Account"
or "Accounts" shall mean a Participant's Deferral Account and/or Company Matching Account. 

        "Beneficiary"
means (a) in the case of a Participant who is a participant in the Prior Plan, the beneficiary designated under the Prior Plan by the Participant to receive benefits
in the event of the Participant's death or (b) in the case of a Participant who is not a participant in the Prior Plan, the
person or persons, including a trustee, personal representative or other fiduciary, last designated in writing by a Participant in accordance with procedures established by the Committee to receive
the benefits specified hereunder in the event of the Participant's death. If there is no valid Beneficiary designation in effect, or if there is no surviving designated Beneficiary, then the
Participant's surviving spouse shall be the Beneficiary. If there is no surviving spouse to receive any benefits payable in accordance with the preceding sentence, the duly appointed and currently
acting personal representative of the Participant's estate (which shall include either the Participant's probate estate or living trust) shall be the Beneficiary. In any case where there is no such
personal representative of the Participant's estate duly appointed and acting in that capacity within 90 days after the Participant's death (or such extended period as the Committee determines
is reasonably necessary to allow such personal representative to be appointed, but not to exceed 180 days after the Participant's death), then Beneficiary shall mean the person or persons who
can verify by affidavit or court order to the satisfaction of the Committee that they are legally entitled to receive the benefits specified hereunder. In the event any amount is payable under the
Plan to a minor, payment shall not be made to the minor, but instead be paid (a) to that person's living parent(s) to act as custodian, (b) if that person's parents are then divorced,
and one parent is the sole custodial parent, to such custodial parent, or (c) if no parent of that person is then living, to a custodian selected by the Committee to hold the funds for the
minor under the Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in which the minor resides. If no parent is living and the Committee decides not to select another custodian to
hold the funds for the minor, then payment shall be made to the duly appointed and currently acting guardian of the estate for the minor or, if no guardian of the estate for the minor is duly
appointed and currently acting within 60 days after the date the amount becomes payable, payment shall be deposited with the court having jurisdiction over the estate of the minor. 

        "Board
of Directors" or "Board" shall mean the Board of Directors of The Macerich Company. 

        "Bonus"
shall mean any incentive compensation payable to a Participant in addition to the Participant's Salary prior to any deferrals under this Plan or any salary reduction
contributions to a plan described in Section 401(k) of the Code or Section 125 of the Code. 

 

        "Code"
shall mean the Internal Revenue Code of 1986, as amended. 

        "Committee"
shall mean the Committee appointed pursuant to Section 9.1 of this Plan. 

        "Company"
shall mean The Macerich Company, its subsidiaries and successors and, where the context warrants, The Macerich Partnership, L.P., Macerich Property Management Company, LLC,
Macerich Management Company, Westcor Partners, LLC, Westcor Realty Limited Partnership and Macerich Westcor Management Company. 

        "Company
Matching Account" shall mean the bookkeeping account maintained by the Committee for each Participant that is credited with an amount equal to (1) the Company Matching
Amount, and (2) earnings or losses thereon pursuant to Section 4.2. 

        "Company
Matching Amount" shall mean an amount equal to a percentage, determined by the Company in its sole discretion, of the amount of Compensation deferred under the Plan for the Plan
Year. 

        "Compensation"
shall mean the Salary and Bonus that the Participant is entitled to for services rendered to the Company. 

        "Deferral
Account" shall mean the bookkeeping account maintained by the Committee for each Participant that is credited with amounts equal to (1) the portion of the Participant's
Salary that he or she elects to defer, (2) the portion of the Participant's Bonus that he or she elects to defer, and (3) earnings or losses thereon pursuant to Section 4.1. 

        "Earnings
Rate" shall mean, for each Fund, an amount equal to the net rate of gain or loss on the assets of such Fund determined for each business day. 

        "Effective
Date" of this Plan shall mean January 1, 2005. 

        "Eligible
Employee" for any Plan Year shall mean each key executive of the Company designated by the Committee whose annualized Salary is equal to or greater than $120,000.
Notwithstanding the foregoing, any key executive of the Company designated by the Committee who is a participant in the Prior Plan shall be an Eligible Employee for purposes of this Plan. 

        "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended. 

        "Fund"
or "Funds" shall mean one or more of the investment funds designated in Section 3.2(a). 

        "Key
Employee" shall mean any Participant who is a "key employee" of the Company as defined in Section 416(i) of the Code. 

        "Participant"
shall mean any Eligible Employee who elects to defer compensation in accordance with Section 3.1. 

        "Payment
Eligibility Date" shall mean the first day of the month following the day on which a Participant terminates employment or dies; provided, however, that if a Participant is a Key
Employee and his or her employment terminates for any reason other than death, then the Payment Eligibility Date shall mean the last day of the six-month period immediately following the
Participant's termination of employment (or, if the Participant dies prior to the end of such six-month period, the date of the Participant's death). Notwithstanding the foregoing, a
termination of employment shall not be deemed to have occurred for any purpose under the Plan unless such termination of employment constitutes a "separation from service" as defined under
Section 409A (or other applicable section) of the Code and any regulations promulgated thereunder. 

        "Plan"
shall mean The Macerich Company 2005 Deferred Compensation Plan for Senior Executives set forth herein, now in effect, or as amended from time to time. 

        "Plan
Year" shall mean the 12 consecutive month period beginning on January 1 each year. 

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        "Prior
Plan" shall mean The Macerich Company Deferred Compensation Plan for Senior Executives, as amended. 

        "Salary"
shall mean the Participant's base pay prior to any deferrals under this Plan or any other nonqualified elective plan of deferred compensation maintained by the Company or any
salary reduction contributions to a plan described in Section 401(k) of the Code or Section 125 of the Code. 

ARTICLE II

PARTICIPATION  

2.1   Participation.  

        Participation in the Plan is voluntary. An Eligible Employee shall become a Participant in the Plan by electing to defer Compensation in accordance with
Section 3.1. 

ARTICLE III

DEFERRAL ELECTIONS  

3.1   Elections to Defer Compensation.  

        (a)    Elections to Defer.    Each Eligible Employee may elect to defer Compensation for any Plan Year by filing with
the Committee an election that conforms to the requirements of this Section 3.1, on a form provided by the Committee, no later than the December 15 immediately preceding such Plan Year
(or such later date that the Committee determines, but in no event later than December 31) in which the Compensation is to be earned. The Committee shall notify each Eligible Employee of his or
her eligibility to participate in the Plan at least 10 days prior to the time he or she must file an election for participation. Each participation election shall signify the portion of the
Eligible Employee's Salary or Bonus, as applicable, that he or she elects to defer. 

        (b)    Amount of Deferrals.    Subject to the limitation described in the second sentence of this
Section 3.1(b), the amount of Compensation that an Eligible Employee may elect to defer is as follows: 

        (1)   Any
percentage of Salary up to 50%, except that Mace Siegel, Dana Anderson, Arthur Coppola and Edward Coppola may each defer up to 100% of Salary, which Salary
percentage shall be deferred ratably over the Plan Year; and/or 

        (2)   Any
percentage of Bonus, if any, up to 100%. 

Notwithstanding
the foregoing, the maximum amount of Compensation that an Eligible Employee may defer under this Plan and any other nonqualified elective plan of deferred compensation maintained by
the Company shall be reduced by the amount of Compensation that the Eligible Employee could have deferred under any qualified cash or deferred arrangement as described in Section 401(k) of the
Code (a "401(k) Plan") without violating Section 402(g) of the Code or the maximum elective contributions permitted under the terms of the 401(k) Plan. 

        (c)    Effect of Election.    An election to defer Salary for a Plan Year shall apply to all Salary earned during each
pay period beginning in such Plan Year, and an election to defer Bonuses for a Plan Year shall apply to any Bonus earned during such Plan Year. Notwithstanding the foregoing, an individual who becomes
an Eligible Employee during a Plan Year may elect to participate in the Plan during such Plan Year by filing such written application with the Committee no later than the 30th day following the date
on which such individual becomes an Eligible Employee. An election filed in accordance with the preceding sentence shall be effective solely with respect to 

3

 

Salary
and that portion of any Bonus earned on or after the first day of the first complete pay period commencing after the filing of such election. 

        (d)    Irrevocability.    Any election filed pursuant to this Section 3.1 shall apply only prospectively and
shall be irrevocable for the Plan Year (or portion thereof) to which such election applies. 

        (e)    Withholding Taxes.    Any deferral election that, either alone or in combination with a deferral election under
this or any other nonqualified elective deferred compensation plan maintained by the Company (hereinafter referred to as an "Other Plan"), would reduce the Compensation payable to a Participant for a
Plan Year to an amount less than the amount of federal, state and local withholding taxes applicable to his or her total deferred and nondeferred Compensation for such Plan Year and to any of his or
her Company Matching Amounts (under this Plan and/or an Other Plan) that are subject to withholding taxes for such Plan Year shall be subject to the Company's receipt from the Participant of an amount
equal to the excess of such withholding taxes over the nondeferred Compensation payable to the Participant (the "Withholding Tax Deficiency") on or before December 31 of such Plan Year. In the
event that a Participant fails to timely pay to the Company the total amount of such Withholding Tax Deficiency, the Company shall reduce the amount credited to a Participant's Deferral Account under
this Plan or to the Participant's account under an Other Plan or any combination thereof, in the Company's sole discretion, by an amount equal to the unpaid Withholding Tax Deficiency plus any
additional withholding taxes due as a result of such reduction in the amount of the Participant's deferred Compensation for the Plan Year. In addition, in the event of a reduction in the amount of a
Participant's Compensation that is deferred under this Plan pursuant to the preceding sentence, the Company shall reduce the amount of any Company Matching Amount under this Plan for the Participant
for the Plan Year to reflect such reduction in the amount of deferred Compensation. 

3.2   Investment Elections.  

        (a)   At
the time of making the first deferral election described in Section 3.1, the Participant shall designate, on a form provided by the Committee or otherwise in
accordance with procedures established by the Committee, the Fund or Funds in which the Participant's deferrals under such election (and any subsequent deferral elections) and corresponding Company
Matching Amounts will be deemed to be invested for purposes of determining the amount of earnings or losses to be credited to the Participant's Accounts. As of the Effective Date, the Funds shall be
the following: 

	1.
	Northwestern
Mutual Life Guaranteed Interest Fund

	2.
	Northwestern
Mutual Life Money Market Fund

	3.
	Northwestern
Mutual Life Select Bond Fund

	4.
	Northwestern
Mutual Life High Yield Bond Fund

	5.
	Northwestern
Mutual Life Balanced Fund

	6.
	Northwestern
Mutual Life Index 500 Stock Fund

	7.
	Mason
Street Advisors Large Cap Core Stock Fund

	8.
	Northwestern
Mutual Life Growth Stock Fund

	9.
	Franklin
Templeton International Equity Fund

	10.
	Northwestern
Mutual Life Aggressive Growth Stock Fund

	11.
	Northwestern
Mutual Life Index 400 Stock Fund 

4

 

	12.
	Russell
Real Estate Securities Fund

	13.
	T.
Rowe Price Small Cap Value Fund 

        (b)   In
making the designation pursuant to this Section 3.2, the Participant must specify, in whole numbers, the percentage of his or her Deferral Account and Company
Matching Account that shall be deemed to be invested in one or more of the Funds. Effective as of the end of the day on which the Committee receives the Participant's election, a Participant may
change the designation made under this Section 3.2 by filing an election in accordance with procedures established by the Committee. If a Participant fails to elect a Fund under this
Section 3.2, he or she shall be deemed to have elected the Northwestern Mutual Life Money Market Fund. 

        (c)   The
Earnings Rate of each Fund shall be used to determine the amount of earnings or losses to be credited to the Participant's Accounts under Article IV. The
Company reserves the right to increase or decrease the number of the Funds listed in Section 3.2(a), as well as the right to designate other
investment funds as the Funds (instead of those currently listed in Section 3.2(a)) for purposes of this Plan. 

        (d)   Notwithstanding
the Participant's ability to designate the Funds in which his or her Accounts shall be deemed to be invested, the Company shall have no obligation to
invest any funds in accordance with any Participant's election. A Participant's Accounts shall merely be bookkeeping entries on the Company's books, and no Participant shall obtain any interest in any
Funds. 

ARTICLE IV

PARTICIPANT ACCOUNTS  

4.1   Deferral Account.  

        The Committee shall establish and maintain a Deferral Account for each Participant under the Plan. Each Participant's Deferral Account shall be divided into
separate subaccounts ("investment fund subaccounts"), each of which corresponds to an investment fund elected by the Participant pursuant to Section 3.2. A Participant's Deferral Account shall
be credited as follows: 

        (a)   As
of the last date of each month, the Committee shall credit the investment fund subaccounts of the Participant's Deferral Account with an amount equal to Salary
deferred by the Participant during each pay period ending in that month in accordance with the Participant's election under Section 3.2(a); that is, the portion of the Participant's deferred
Salary that the Participant has elected to be deemed to be invested in a certain Fund shall be credited to the investment fund subaccount corresponding to that Fund; 

        (b)   As
of the last day of the month in which the Bonus or partial Bonus would have been paid, the Committee shall credit the investment fund subaccounts of the Participant's
Deferral Account with an amount equal to the portion of the Bonus deferred by the Participant's election under Section 3.2(a); that is, the portion of the Participant's deferred Bonus that the
Participant has elected to be deemed to be invested in a particular Fund shall be credited to the investment fund subaccount corresponding to that Fund; and 

        (c)   As
of the end of each business day, each investment fund subaccount of a Participant's Deferral Account shall be credited with earnings or losses in an amount equal to
that determined by multiplying the balance of such investment fund subaccount as of the end of the prior business day by the Earnings Rate for the corresponding Fund for the day of crediting. 

5

 

4.2   Company Matching Account.  

        The Committee shall establish and maintain a separate Company Matching Account for each Participant under the Plan. Each Participant's Company Matching Account
shall be divided into separate investment fund subaccounts corresponding to the investment funds elected by the Participant pursuant to Section 3.2. A Participant's Company Matching Account
shall be credited as follows: 

        (a)   As
of the last day of each Plan Year or at more frequent intervals as determined by the Committee, the Company shall credit the investment fund subaccounts of the
Participant's Company Matching Account with an amount equal to the Company Matching Amount, if any, applicable to that Participant; that is, the portion of the Company Matching Amount, if any, which
the Participant elected to be deemed to be invested in a certain Fund shall be credited to the corresponding investment fund subaccount; and 

        (b)   As
of the end of each business day, each investment fund subaccount of a Participant's Company Matching Amount shall be credited with earnings or losses in an amount
equal to that determined by multiplying the balance of such investment fund subaccount as of the end of the prior business day by the Earnings Rate for the corresponding Fund for the day of crediting. 

In
addition, the Company may at any time direct the Committee to credit a Participant's Company Matching Account with such additional amount that the Company has determined, for any reason, to credit
to such Participant. 

ARTICLE V

VESTING  

5.1   Deferral Account.  

        A Participant's Deferral Account shall at all times be 100% vested. 

5.2   Company Matching Account.  

        A Participant's Company Matching Account shall at all times be 100% vested. 

6

   ARTICLE VI

DISTRIBUTIONS  

6.1   Time and Form of Distribution.  

        (a)   The
amount credited to a Participant's Deferral Account and the amount credited to his or her Company Matching Account shall be paid to the Participant (or, in the case
of his or her death, Beneficiary) in the form of a cash lump sum payment on his or her Payment Eligibility Date. Notwithstanding the foregoing, on a distribution election form filed simultaneously
with and in the same manner as the first deferral election form that a Participant files in accordance with the provisions of Section 3.1 hereof, a Participant may elect to have the amounts
credited to his or her Accounts distributed to him or her in any one of the following optional forms of distribution: 

        (1)   A
scheduled in-service distribution on a specified date (no earlier than January 1 of the year following the Participant's first year of participation
in the Plan) of all or a specified percentage of the amount credited to the Participant's Accounts (as of the specified date), with all remaining amounts then credited or subsequently credited to the
Participant's Accounts distributed in a lump sum on the Participant's Payment Eligibility Date; provided that, if the Participant's Payment Eligibility Date occurs prior to the scheduled
in-service distribution date, then the total amount credited to the Participant's Accounts will be paid in a lump sum payment on the Participant's Payment Eligibility Date; 

        (2)   A
cash lump sum payable on the later of some specified date or the Participant's Payment Eligibility Date; 

        (3)   A
specified number of substantially equal monthly installments (not to exceed 180) commencing on the later of a specified date or the Participant's Payment Eligibility
Date; 

        (4)   A
specified number of substantially equal annual installments (not to exceed 15) commencing on the later of a specified date or the Participant's Payment
Eligibility Date; or 

        (5)   Any
other method selected by the Participant that is approved by the Committee in its sole and absolute discretion, provided that payment is not made or payments do not
begin before the Participant's Payment Eligibility Date. 

        (b)   An
election made under Section 6.1(a) shall apply to all amounts deferred for all Plan Years under this Plan and may be changed only in accordance with
Section 6.3. 

        (c)   The
Participant's Accounts shall continue to be credited with earnings or losses pursuant to Article IV of the Plan until all amounts credited to his or her
Accounts under the Plan have been distributed. 

        (d)   For
all purposes under this Plan, a Participant shall not be considered terminated from employment if the Participant remains employed by The Macerich Company, any of
its subsidiaries, The Macerich Partnership, L.P., Macerich Property Management Company, LLC, Macerich Management Company, Westcor Partners, LLC, Westcor Realty Limited Partnership or Macerich Westcor
Management Company. 

        (e)   In
the event of the death of a Participant, the benefits described in this Section 6.1 shall be paid to the Participant's Beneficiary in accordance with the
Participant's election hereunder. 

6.2   Small Benefits.  

        Notwithstanding anything herein contained to the contrary, if the amount distributable in a form other than a cash lump sum to a Participant (or to the
Beneficiary of a Participant as a result of the 

7

 

Participant's
death) is less than $10,000, such amount shall be paid in the form of a cash lump sum to the Participant (or Beneficiary); provided, however, that if this provision would cause amounts
deferred under this Plan to be included in the income of a Participant prior to the date of distribution, this provision shall not apply and distributions to each Participant shall be in accordance
his or her election under this Plan. 

6.3   Change in Election of Time and Form of Distribution.  

        A Participant may elect to change his or her distribution election under Section 6.1 by filing a new election with the Committee; provided, however, that
(i) no such election shall be effective until one year after the date on which the election is made, (ii) the first payment with respect to which such election is made must be deferred
for a period of not less than five years from the date such payment would otherwise have been made (except for distributions on account of death or hardship distributions), and (iii) any
election related to a payment that commences on any date other than the Payment Eligibility Date shall only be effective if it is made at least twelve months prior to the date of the first scheduled
payment under such election. 

ARTICLE VII

HARDSHIP DISTRIBUTIONS  

7.1   Hardship Distribution.  

        (a)   Upon
written request of a Participant, the Committee may, in its sole discretion, make a lump sum payment and/or accelerate the payment of installment payments due to a
Participant in order to meet a severe financial hardship to the Participant resulting from (1) an illness or accident of the Participant, the Participant's spouse or a dependent (as defined in
Section 152(a) of the Code) of the Participant, (2) loss of the Participant's property due to casualty, or (3) other similar extraordinary and unforeseeable circumstances arising
as a result of events beyond the control of the Participant. However, no payment shall be made under this Section 7.1 to the extent that a hardship is or may be relieved (1) through
reimbursement or compensation by insurance or otherwise or (2) by liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial
hardship. The amount of any hardship lump sum payment and/or accelerated amount shall not exceed the lesser of (1) the amount required to meet the immediate financial need created by such
hardship plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution or (2) the entire amounts credited to the Participant's Accounts. The amount of any such
payment shall be deducted from the amount credited to the Participant's Accounts, pro rata from among each of the investment subaccounts of the Participant's Deferral Account and Company Matching
Account. The remaining amounts credited to a Participant's Accounts shall be distributed in accordance with the Participant's distribution election. 

ARTICLE VIII

LIFE INSURANCE FOR ELIGIBLE EMPLOYEES  

8.1   Life Insurance Coverage.  

        Each Eligible Employee shall be eligible for life insurance coverage pursuant to the provisions of Article VIII of the Company's Deferred Compensation Plan
for Senior Executives. 

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ARTICLE IX

ADMINISTRATION  

9.1   Members.  

        A Committee shall be appointed by, and serve at the pleasure of, the Board of Directors. The number of members comprising the Committee shall be determined by the
Board, which may from time to time vary the number of members. A member of the Committee may resign by delivering a written notice of resignation to the Board. The Board may remove any member by
delivering a certified copy of its resolution of removal to such member. Vacancies in the membership of the Committee shall be filled promptly by the Board. 

9.2   Committee Action.  

        The Plan shall be administered by the Committee. The Committee shall act at meetings by affirmative vote of a majority of the members of the Committee. Any action
permitted to be taken at a meeting may be taken without a meeting if, prior to such action, a written consent to the action is signed by all members of the Committee and such written consent is filed
with the minutes of the proceedings of the Committee. A member of the Committee shall not vote or act upon any matter which relates solely to himself or herself as a Participant. The Chairman or any
other member or members of the Committee designated by the Chairman may execute any certificate or other written direction on behalf of the Committee. 

9.3   Powers and Duties of the Committee.  

        (a)   The
Committee, on behalf of the Participants and their Beneficiaries, shall enforce the Plan in accordance with its terms, shall be charged with the general
administration of the Plan, and shall have all powers necessary to accomplish its purposes, including, but not by way of limitation, the following: 

        (1)   To
determine all questions relating to the eligibility of employees to participate; 

        (2)   To
construe and interpret the terms and provisions of this Plan; 

        (3)   To
compute the Earnings Rate for each Fund in accordance with the terms of the Plan; 

        (4)   To
compute and certify to the amount and kind of benefits payable to Participants and their Beneficiaries; 

        (5)   To
maintain all records that may be necessary for the administration of the Plan; 

        (6)   To
provide for the disclosure of all information and the filing or provision of all reports and statements to Participants, Beneficiaries or governmental agencies as
shall be required by law; 

        (7)   To
make and publish such rules for the regulation of the Plan and procedures for the administration of the Plan as are not inconsistent with the terms hereof; and 

        (8)   To
appoint a plan administrator or any other agent, and to delegate to them such powers and duties in connection with the administration of the Plan as the Committee may
from time to time prescribe. 

9.4   Construction and Interpretation.  

        The Committee shall have full discretion to construe and interpret the terms and provisions of this Plan, which interpretation or construction shall be final and
binding on all parties, including but not 

9

 

limited
to the Company and any Participant or Beneficiary. The Committee shall administer such terms and provisions in a uniform and nondiscriminatory manner and in full accordance with any and all
laws applicable to the Plan. 

9.5   Information.  

        To enable the Committee to perform its functions, the Company shall supply full and timely information to the Committee on all matters relating to the
Compensation of all Participants, their death or other cause of termination, and such other pertinent facts as the Committee may require. 

9.6   Compensation, Expenses and Indemnity.  

        (a)   The
members of the Committee shall serve without compensation for their services hereunder. 

        (b)   The
Committee is authorized at the expense of the Company to employ such legal counsel as it may deem advisable to assist in the performance of its duties hereunder.
Expenses and fees in connection with the administration of the Plan shall be paid by the Company. 

        (c)   To
the extent permitted by applicable state law, the Company shall indemnify and save harmless the Committee and each member thereof, the Board of Directors and any
delegate of the Committee who is an employee of the Company against any and all expenses, liabilities and claims, including legal fees to defend against such liabilities and claims arising out of
their discharge in good faith of responsibilities under or incident to the Plan, other than expenses and liabilities arising out of willful misconduct. This indemnity shall not preclude such further
indemnities as may be available under insurance purchased by the Company or provided by the Company under any bylaw, agreement or otherwise, as such indemnities are permitted under state law. 

9.7   Quarterly Statements.  

        Under procedures established by the Committee, a Participant shall receive a statement with respect to such Participant's Accounts as soon as practicable
following the end of each calendar quarter ending on March 31, June 30, September 30 or December 31. 

ARTICLE X

MISCELLANEOUS  

10.1 Unsecured General Creditor.  

        Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, claims, or interest in any specific property or
assets of the Company. No assets of the Company shall be held under any trust, or held in any way as collateral security for the fulfilling of the obligations of the Company under this Plan. Any and
all of the Company's assets shall be, and remain, the general, unpledged, unrestricted assets of the Company. The Company's obligation under the Plan shall be merely that of an unfunded and unsecured
promise of the Company to pay money in the future, and the rights of the Participants and Beneficiaries shall be no greater than those of unsecured general creditors. 

10.2 Restriction Against Assignment.  

        The Company shall pay all amounts payable hereunder only to the person or persons designated by the Plan and not to any other person or corporation. No part of a
Participant's Accounts shall be liable for the debts, contracts, or engagements of any Participant, his or her Beneficiary, or successors in interest, nor shall a Participant's Accounts be subject to
execution by levy, attachment, or 

10

 

garnishment
or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, commute, pledge, encumber, or assign any benefits or payments hereunder in
any manner whatsoever. If any Participant, Beneficiary or successor in interest is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any
distribution or payment from the Plan, voluntarily or involuntarily, the Committee, in its discretion, may cancel such distribution or payment (or any part thereof) to or for the benefit of such
Participant, Beneficiary or successor in interest in such manner as the Committee shall direct. 

10.3 Withholding.  

        (a)   There
shall be deducted from each payment made under the Plan all taxes which are required to be withheld by the Company in respect to such payment. The Company shall
have the right to reduce any payment by the amount of cash sufficient to provide the amount of said taxes. 

        (b)   In
the event that a Participant defers compensation in excess of the amount required to be withheld for federal, state or local tax purposes, the provisions of
Section 3.1(e) shall apply. 

10.4 Amendment, Modification, Suspension or Termination.  

        The Company may amend, modify, suspend or terminate the Plan in whole or in part. The Committee may amend the Plan to (a) ensure the Plan complies with the
requirements of Section 409A of the Code for the deferral of taxation on deferred compensation to the time of distribution and (b) add provisions for changes to the deferral elections
and elections as to the time and manner of distributions that comply with such requirements of Section 409A of the Code. Notwithstanding the foregoing rights of the Company and the Committee to
amend the Plan, no amendment, modification, suspension or termination shall reduce any amounts allocated previously to a Participant's Accounts. In the event that this Plan is terminated, the amounts
credited to a Participant's Deferral Account and Company Matching Account shall be distributed to the Participant or, in the event of his or her death, to his or her Beneficiary in a lump sum within
thirty (30) days following the date of termination; provided, however, if the foregoing provision would cause the amounts deferred under this Plan to be included in
the income of Participants prior to the date of distribution, such provision shall not apply and distributions to the Participants or their Beneficiaries shall be made on the dates on which the
Participants or their Beneficiaries would receive benefits hereunder without regard to the termination of the Plan. Notwithstanding the foregoing, if amounts deferred under the Plan have become
taxable to Participants as of the date of the Plan termination, distributions shall be made as soon as practicable following the termination of the Plan. The Company reserves the right to change the
Funds as described in Section 3.2(d). 

10.5 Governing Law.  

        The Plan shall be governed by and construed in accordance with Section 409A (or other applicable section) of the Code, and any regulations promulgated
thereunder, and the laws of the State of California to the extent such laws are not preempted by the Employee Retirement Income Security Act of 1974, as amended. 

10.6 Receipt or Release.  

        Any payment to a Participant or the Participant's Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full satisfaction
of all claims against the Committee and the Company. The Committee may require such Participant or Beneficiary, as a condition precedent to such payment, to execute a receipt and release to such
effect. 

11

 

10.7 Payments on Behalf of Persons under Incapacity.  

        In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Committee, is considered by reason of physical or mental
condition to be unable to give a valid receipt therefor, the Committee may direct that such payment be made to any person found by the Committee, in its sole judgment, to have assumed the care of such
person. Any payment made pursuant to such determination shall constitute a full release and discharge of the Committee and the Company. 

10.8 Headings, etc. Not Part of Agreement.  

        Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof. 

10.9 Limitation on Participants' Rights.  

        Participation in this Plan shall not give any Eligible Employee the right to be retained in the Company's employ or any right or interest in the Plan other than
as herein provided. The Company reserves the right to dismiss any Eligible Employee without any liability for any claim against the Company, except to the extent provided herein. 

ARTICLE XI

CLAIMS PROCEDURE  

11.1 Claims Procedure.  

        (a)    Claim.    A person who believes that he or she is being denied a benefit to which he or she is entitled under
this Plan (hereinafter referred to as "Claimant") may file a written request for such benefit with the Committee, setting forth his or her claim. The request must be addressed to the Committee
at the Company's then principal place of business. Within a reasonable period of time, but not later than 90 days after receipt of a claim for benefits, the Committee or its delegate shall
notify the Claimant of any adverse benefit determination on the claim, unless special circumstances require an extension of time for processing the claim. In no event may the extension period exceed
90 days from the end of the initial 90-day period. If an extension is necessary, the Committee or its delegate shall provide the Claimant with a written notice to this effect prior
to the expiration of the initial 90-day period. The notice shall describe the special circumstances requiring the extension and the date by which the Committee or its delegate expects to
render a determination on the claim. 

        (b)    Claim Decision.    In the case of an adverse benefit determination, the Committee or its delegate shall provide
to the Claimant written or electronic notification setting forth in a manner calculated to be understood by the Claimant: (i) the specific reason or reasons for the adverse benefit
determination, (ii) reference to the specific Plan provisions on which the adverse benefit determination is based, (iii) a description of any additional material or information necessary
for the Claimant to perfect the claim and an explanation of why the material or information is necessary, and (iv) a description of the Plan's claim review procedures and the time limits
applicable to such procedures, including a statement of the Claimant's right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review. 

        (c)    Request for Review.    Within 60 days after receipt by the Claimant of notification of the adverse
benefit determination, the Claimant or his duly authorized representative, upon written application to the Committee, may request that the Committee fully and fairly review the adverse benefit
determination. On review of an adverse benefit determination, upon request and free of 

12

 

charge,
the Claimant shall have reasonable access to, and copies of, all documents, records and other information relevant to the Claimant's claim for benefits. The Claimant shall have the opportunity
to submit written comments, documents, records, and other information relating to the claim for benefits. The Committee's (or delegate's) review shall take into account all comments, documents,
records, and other information submitted regardless of whether the information was previously considered in the initial adverse benefit determination. 

        (d)    Review of Decision.    Within a reasonable period of time, but not later than 60 days after receipt of
such request for review, the Committee or its delegate shall notify the Claimant of any final benefit determination on the claim, unless special circumstances require an extension of time for
processing the claim. In no event may the extension period exceed 60 days from the end of the initial 60-day period. If an extension is necessary, the Committee or its delegate
shall provide the Claimant with a written notice to this effect prior to the expiration of the initial 60-day period. The notice shall describe the special circumstances requiring the
extension and the date by which the Committee or its delegate expects to render a final determination on the request for review. In the case of an adverse final benefit determination, the Committee or
its delegate shall provide to the Claimant written or electronic notification setting forth in a manner calculated to be understood by the Claimant: (i) the specific reason or reasons for the
adverse final benefit determination; (ii) reference to the specific Plan provisions on which the adverse final benefit determination is based; (iii) a statement that the Claimant is
entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant's claim for benefits; and (iv) a
statement of the Claimant's right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review. 

        IN
WITNESS WHEREOF, the Company has caused this document to be executed by its duly authorized officers on this            day
of                        , 2004.
 

	 	 	THE MACERICH COMPANY
	

 	
 	

By	

    

	

 	
 	

By	

    

13

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Exhibit 10.7    
    

THE MACERICH COMPANY  

 ELIGIBLE DIRECTORS'

DEFERRED COMPENSATION/PHANTOM STOCK PLAN

(As Amended and Restated as of January 1, 2005)  

 
THE MACERICH COMPANY  

 ELIGIBLE DIRECTORS'

DEFERRED COMPENSATION/PHANTOM STOCK PLAN

(As Amended and Restated as of January 1, 2005)  

TABLE OF CONTENTS  

	 
	 	 
	 	Page

	ARTICLE I	 	1
	ARTICLE II	 	1
	2.1	 	Account	 	1
	2.2	 	Average Fair Market Value	 	1
	2.3	 	Award Date	 	1
	2.4	 	Board of Directors	 	1
	2.5	 	Cash Account	 	1
	2.6	 	Change in Control Event	 	1
	2.7	 	Code	 	1
	2.8	 	Common Stock	 	1
	2.9	 	Committee	 	1
	2.10	 	Company	 	1
	2.11	 	Compensation	 	1
	2.12	 	Current Cash Account	 	1
	2.13	 	Current Dividend Equivalent Cash Account	 	2
	2.14	 	Current Dividend Equivalent Stock Account	 	2
	2.15	 	Current Stock Unit Account	 	2
	2.16	 	Disability	 	2
	2.17	 	Discount Rate	 	2
	2.18	 	Disinterested Director	 	2
	2.19	 	Distribution Subaccount	 	2
	2.20	 	Dividend Equivalent	 	2
	2.21	 	Dividend Equivalent Cash Account	 	2
	2.22	 	Dividend Equivalent Stock Account	 	2
	2.23	 	Effective Date	 	2
	2.24	 	Eligible Director	 	2
	2.25	 	Exchange Act	 	2
	2.26	 	Fair Market Value	 	3
	2.27	 	Interest Rate	 	3
	2.28	 	Plan	 	3
	2.29	 	Plan Year	 	3
	2.30	 	Prior Cash Account	 	3
	2.34	 	Special Meeting Fees	 	3
	2.35	 	Stock Unit or Unit	 	3
	2.36	 	Stock Unit Account	 	3
	2.37	 	Unforeseeable Emergency	 	3
	ARTICLE III	 	4
	ARTICLE IV	 	4
	4.1	 	Initial Elections	 	4
	4.2	 	Subsequent Annual Elections	 	4
	ARTICLE V	 	5
	5.1	 	Cash Account	 	5
	 	 	 	 	 

i

 

	5.2	 	Stock Unit Account	 	5
	5.3	 	Dividend Equivalents; Dividend Equivalent Cash Account; Dividend Equivalent Stock Account	 	6
	5.4	 	Vesting	 	8
	5.5	 	Distribution of Benefits	 	9
	5.6	 	Adjustments in Case of Changes in Common Stock	 	10
	5.7	 	Company's Right to Withhold	 	10
	5.8	 	Stockholder Approval	 	11
	ARTICLE VI	 	11
	6.1	 	The Administrator	 	11
	6.2	 	Committee Action	 	11
	6.3	 	Rights and Duties	 	11
	6.4	 	Indemnity and Liability	 	12
	ARTICLE VII	 	12
	ARTICLE VIII	 	12
	8.1	 	Limitation on Eligible Directors' Rights	 	12
	8.2	 	Beneficiaries	 	13
	8.3	 	Benefits Not Assignable; Obligations Binding Upon Successors	 	13
	8.4	 	Governing Law; Severability	 	13
	8.5	 	Compliance With Laws	 	13
	8.6	 	Headings Not Part of Plan	 	13
	APPENDIX A	 	A-1

ii

   THE MACERICH COMPANY  

 ELIGIBLE DIRECTORS'

DEFERRED COMPENSATION/PHANTOM STOCK PLAN

(As Amended and Restated as of January 1, 2005)  

ARTICLE I

TITLE, PURPOSE AND AUTHORIZED SHARES

        This
Plan shall be known as "The Macerich Company Eligible Directors' Deferred Compensation/Phantom Stock Plan." The purpose of this Plan is to attract, motivate and retain experienced
and knowledgeable directors of The Macerich Company by permitting them to defer compensation and affording them the opportunity to link that compensation to an equity interest in the Company. The
total number of shares of Common Stock that may be delivered pursuant to awards under this Plan is 250,000, subject to adjustments contemplated by Section 5.6. 

ARTICLE II

DEFINITIONS  

        Whenever the following terms are used in this Plan they shall have the meaning specified below unless the context clearly indicates to the contrary: 

        2.1   Account shall mean one or more of an Eligible Director's Cash Account(s), Stock Unit Account(s),
Dividend Equivalent Cash Account(s) and Dividend Equivalent Stock Account(s). Each Account includes, to the extent applicable, any Distribution Subaccounts. 

        2.2   Average Fair Market Value shall mean the average of the Fair Market Values of a share of Common
Stock of the Company during the last 10 trading days preceding the Award Date. 

        2.3   Award Date with reference to elections under Section 4.2 shall mean the January 1
that next follows the date of an Eligible Director's election made pursuant to Section 4.2. Award Date with reference to elections under Section 4.1(a) shall mean August 3, 1994,
with reference to elections under Section 4.1(b) shall mean February 1, 1995, and with reference to elections under Section 4.1(c) shall mean the date next following the date that
the Eligible Director files his or her election under Section 4.1(c). 

        2.4   Board of Directors shall mean the Board of Directors of the Company. 

        2.5   Cash Account shall mean a Current Cash Account and/or a Prior Cash Account. 

        2.6   Change in Control Event shall have the meaning specified for such term under The Macerich Company
Amended and Restated 1994 Incentive Plan, as amended from time to time. 

        2.7   Code shall mean the Internal Revenue Code of 1986, as amended. 

        2.8   Common Stock shall mean the Common Stock of the Company. 

        2.9   Committee shall mean a Committee of the Board of Directors acting in accordance with
Article VI and applicable Maryland law, or the Board of Directors. 

        2.10 Company shall mean The Macerich Company, a Maryland corporation, and its successors and assigns. 

        2.11 Compensation shall mean the annual retainer and regular meeting fees payable by the Company to
an Eligible Director for a calendar year. 

        2.12 Current Cash Account shall mean a bookkeeping account maintained by the Company on behalf of
each Eligible Director who elects to defer Compensation and Special Meeting Fees earned after December 31, 2004 in cash in accordance with Section 5.1. 

1

 

        2.13 Current Dividend Equivalent Cash Account shall mean a bookkeeping account maintained by the
Company on behalf of an Eligible Director that is credited with Dividend Equivalents in the form of cash deferrals attributable to Stock Units credited to the Eligible Director's Current Stock Unit
Account (with respect to Compensation and Special Meeting Fees earned after December 31, 2004) in accordance with Section 5.3(b)(1). 

        2.14 Current Dividend Equivalent Stock Account shall mean a bookkeeping account maintained by the
Company on behalf of an Eligible Director that is credited with Dividend Equivalents in the form of Stock Units attributable to Stock Units credited to the Eligible Director's Current Stock Unit
Account (with respect to Compensation and Special Meeting Fees earned after December 31, 2004) in accordance with Section 5.3(c)(1). 

        2.15 Current Stock Unit Account shall mean a bookkeeping account maintained by the Company on behalf
of each Eligible Director who elects to defer Compensation and Special Meeting Fees earned after December 31, 2004 in Stock Units in accordance with Section 5.2. 

        2.16 Disability shall mean a medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than 12 months that renders an Eligible Director unable to engage in any substantial gainful activity. 

        2.17 Discount Rate shall mean an interest rate equal to 5% per annum. 

        2.18 Disinterested Director shall mean a member of the Board of Directors who is not generally
disqualified from making decisions concerning this Plan or all actions hereunder under any applicable legal requirements, but in no event shall a member of the Board of Directors participate in any
decision affecting only his or her benefits under this Plan. 

        2.19 Distribution Subaccount shall mean a subaccount of an Eligible Director's Account established to
separately account for deferred Compensation and Special Meeting Fees (and Dividend Equivalents or other earnings or losses thereon) that are subject to different distribution elections. 

        2.20 Dividend Equivalent shall mean the amount of cash dividends or other cash distributions paid by
the Company after January 31, 1995 on that number of shares of Common Stock equivalent to the number of Stock Units then credited to an Eligible Director's Stock Unit Account, or Stock Unit
Accounts, as applicable, and Dividend Equivalent Stock Account, or Dividend Equivalent Stock Accounts, as applicable, which amount shall be allocated as additional Stock Units to the Eligible
Director's Dividend Equivalent Stock Account(s) or as additional deferrals to the Eligible Director's Dividend Equivalent Cash Account(s), as provided in Section 5.3. 

        2.21 Dividend Equivalent Cash Account shall mean a Current Dividend Equivalent Cash Account and/or a
Prior Dividend Equivalent Cash Account. 

        2.22 Dividend Equivalent Stock Account shall mean a Current Dividend Equivalent Stock Account and/or
a Prior Dividend Equivalent Stock Account. 

        2.23 Effective Date shall mean July 29, 1994. 

        2.24 Eligible Director shall mean a member of the Board of Directors of the Company who is
compensated in such capacity and (as to any outstanding Account balances under this Plan) any such person who has Account balances under the Plan. 

        2.25 Exchange Act shall mean the Securities Exchange Act of 1934, as amended from time to time. 

2

 

        2.26 Fair Market Value shall mean on any date the closing price of the stock on the Composite Tape,
as published in the Western Edition of The Wall Street Journal, of the principal securities exchange or market on which the stock is so listed, admitted to trade, or quoted on such date, or, if there
is no trading of the stock on such date, then the closing price of the stock as quoted on such Composite Tape on the next preceding date on which there was trading in such shares; provided, however,
if the stock is not so listed, admitted or quoted, the Committee may designate such other exchange, market or source of data as it deems appropriate for determining such value for purposes of this
Plan. 

        2.27 Interest Rate shall mean the rate that is 120% of the federal long-term rate for
compounding on a quarterly basis, determined and published by the Secretary of the United States Department of Treasury under Section 1274(d) of the Code, for the month in which interest is
credited. 

        2.28 Plan shall mean The Macerich Company Eligible Directors' Deferred Compensation/Phantom Stock
Plan, as amended from time to time. 

        2.29 Plan Year shall mean the applicable calendar year. 

        2.30 Prior Cash Account shall mean a bookkeeping account maintained by the Company on behalf of each
Eligible Director who elects to defer Compensation and Special Meeting Fees earned before January 1, 2005 in cash in accordance with Section 5.1. 

        2.31 Prior Dividend Equivalent Cash Account shall mean a bookkeeping account maintained by the
Company on behalf of an Eligible Director that is credited with Dividend Equivalents in the form of cash deferrals attributable to Stock Units credited to the Eligible Director's Prior Stock Unit
Account (with respect to Compensation and Special Meeting Fees earned before January 1, 2005) in accordance with Section 5.3(b)(2). 

        2.32 Prior Dividend Equivalent Stock Account shall mean a bookkeeping account maintained by the
Company on behalf of an Eligible Director that is credited with Dividend Equivalents in the form of Stock Units attributable to Stock Units credited to the Eligible Director's Prior Stock Unit Account
(with respect to Compensation and Special Meeting Fees earned before January 1, 2005) in accordance with Section 5.3(c)(2). 

        2.33 Prior Stock Unit Account shall mean a bookkeeping account maintained by the Company on behalf of
each Eligible Director who elects to defer Compensation and Special Meeting Fees earned before January 1, 2005 in Stock Units in accordance with Section 5.2. 

        2.34 Special Meeting Fees shall mean the meeting fees that are paid by the Company after
January 31, 1995 to an Eligible Director for meetings during a deferral period in addition to the regular meetings contemplated at the time of a deferral election for that deferral period. 

        2.35 Stock Unit or Unit shall mean a non-voting unit of measurement that is deemed for
bookkeeping purposes to be equivalent to one outstanding share of Common Stock of the Company solely for purposes of this Plan. 

        2.36 Stock Unit Account shall mean a Current Stock Unit Account and/or a Prior Stock Unit Account. 

        2.37 Unforeseeable Emergency shall mean a severe financial hardship to the Eligible Director
resulting from an illness or accident of the Eligible Director, the Eligible Director's spouse or a dependent (as defined in Section 152(a) of the Code) of the Eligible Director, loss to the
Eligible Director's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Eligible Director. 

3

 

ARTICLE III

PARTICIPATION  

        Each Eligible Director shall become a participant in the Plan by electing to defer his or her Compensation or Special Meeting Fees in accordance with
Article IV. 

ARTICLE IV

DEFERRAL ELECTIONS  

        4.1    Initial Elections.    

        (a)    Initial Election for Compensation Earned from July 31, 1994 through December 31,
1994.    On or before July 31, 1994, each Eligible Director may make an irrevocable election to defer 100% of the portion of his or her
Compensation payable for services to be rendered by the Eligible Director from July 31, 1994 through December 31, 1994 in (1) cash, in accordance with Section 5.1, or
(2) Stock Units in accordance with Section 5.2. Such election shall be in writing on forms provided by the Company and approved by the Committee. 

        (b)    Initial Election for Compensation and Special Meeting Fees Earned during 1995, 1996 and
1997.    On or before July 31, 1994, each Eligible Director may make an irrevocable election to defer 100% of the portion of his or her
Compensation and Special Meeting Fees payable for services to be rendered by the Eligible Director during the next one, two, or three calendar years in (1) cash, in accordance with
Section 5.1, or (2) Stock Units, in accordance with Section 5.2. Such election shall be in writing on forms provided by the Company and approved by the Committee. 

        (c)    Initial Election for New
Directors.    On or before the 30th day after first becoming an Eligible Director, a new Eligible Director may make an
irrevocable election to defer all or a portion (in 10% increments) of his or her Compensation and/or Special Meeting Fees payable for services to be rendered by the Eligible Director after the date
such election is filed with the Committee and during the remainder of the calendar year during which the Eligible Director first becomes an Eligible Director and/or during the next one or two calendar
years in (a) cash, in accordance with Section 5.1, or (b) Stock Units, in accordance with Section 5.2. Such election shall be in writing on a form provided by the Company
and approved by the Committee and must be filed no later than the 30th day following the date that the Eligible Director first becomes an Eligible Director. Such election may also
specify that the amounts deferred pursuant to such election shall be paid under one of the optional forms of benefits set forth in Section 5.5(a). 

        4.2    Subsequent Annual Elections.    

        (a)    General Rule.    On or before the date
set forth in the applicable election agreement (but in no event later than December 31 of the year preceding the first year to which the election applies), each Eligible Director may make an
irrevocable election to defer all or a portion (in 10% increments) of his or her Compensation and/or Special Meeting Fees payable for services to be rendered by the Eligible Director during the next
one, two, or three calendar years in (a) cash, in accordance with Section 5.1, or (b) Stock Units, in accordance with Section 5.2. Such election shall be in writing on
forms provided by the Company and approved by the Committee. Such election may also specify that the amounts deferred pursuant to such election shall be paid under one of the optional time and forms
of distribution set forth in Section 5.5(a). 

        (b)    Special Rule for 2005 and 2006
Deferrals.    Any Eligible Director who filed a deferral election under this Plan prior to December 31, 2003 with respect to
Compensation and/or Special Meeting Fees to be earned in 2005 and/or 2006 (a "Pre-Existing Deferral Election") may file a new distribution election with respect to amounts to be
deferred in 2005 and/or 2006 pursuant to such Pre-Existing Deferral Election (the "2005-2006 Deferrals") no later than December 31, 2005. 

4

 

If
the Eligible Director does not file such a distribution election for such 2005-2006 Deferrals, then he or she shall be deemed to have elected to receive a distribution of his
2005-2006 Deferrals as provided in the Eligible Director's most recent effective distribution election filed prior to December 31, 2004 with the Committee in accordance with
Section 5.5A(b) with respect to all amounts deferred under such Pre-Existing Deferral Election. Any further changes to the time and manner of distribution of the Participant's
2005-2006 Deferrals shall be made in accordance with, and governed by, the provisions of Section 5.5(b) and not Section 5.5A(b). 

ARTICLE V

DEFERRAL ACCOUNTS  

        5.1    Cash Account.    

        (a)    Current Cash Account.    Effective
January 1, 2005, if an Eligible Director has elected or elects in accordance with Article IV to defer Compensation and/or Special Meeting Fees earned after December 31, 2004 in
cash, the Committee shall establish and maintain a Cash Account for the Eligible Director under the Plan, which Account shall be a memorandum account on the books of the Company and shall be such
Eligible Director's "Current Cash Account." An Eligible Director's Current Cash Account shall be credited as follows: 

        (1)   As
of the last day of each calendar quarter, the Committee shall credit the Eligible Director's Current Cash Account with an amount equal to the elected percentage of
the Compensation deferred by the Eligible Director during such quarter; 

        (2)   As
of the date payment of any Special Meeting Fees would otherwise be made, the Eligible Director's Current Cash Account shall be credited with an amount equal to the
elected percentage of the Eligible Director's Special Meeting Fees; and 

        (3)   As
of the last day of each calendar quarter, the Eligible Director's Current Cash Account shall be credited with earnings equal to an amount determined by multiplying
the balance credited to such Account as of the last day of the preceding quarter by one-fourth of the Interest Rate. 

        (b)    Prior Cash Account.    Effective
January 1, 2005, the Cash Account (if any) established for an Eligible Director prior to January 1, 2005 shall be that Eligible Director's "Prior Cash Account," and no amount of
Compensation or Special Meeting Fees earned after December 31, 2004 that such Eligible Director elects to defer under this Plan shall be credited to such Prior Cash Account. As of the last day
of each calendar quarter, the Eligible Director's Prior Cash Account shall be credited with earnings equal to an amount determined by multiplying the balance credited to such Account as of the last
day of the preceding quarter by one-fourth of the Interest Rate. 

        5.2    Stock Unit Account.    

        (a)    Current Stock Unit
Account.    Effective January 1, 2005, if an Eligible Director has elected or elects in accordance with Article IV to defer his
or her Compensation and/or Special Meeting Fees earned after December 31, 2004 in Stock Units, the Committee shall establish and maintain a Stock Unit Account for the Eligible Director under
the Plan, which Account shall be a memorandum account on the books of the Company and shall be such Eligible Director's "Current Stock Unit Account." An Eligible Director's Current Stock Account shall
be credited as follows: 

        (1)    Regular Compensation.    If an Eligible
Director has elected or elects to defer his or her Compensation earned after December 31, 2004 in Stock Units, the Committee shall credit on the Award Date to the Current Stock Unit Account of
the Eligible Director a number of Units determined by dividing the present value of the Compensation deferred by the Eligible Director by the Average Fair Market Value of a share of Common Stock. The
present value 

5

 

shall
be computed assuming the Compensation deferred would have been paid on the first day of the calendar year to which it relates (or, in the case of Compensation deferred under an election under
Section 4.1(c) for the remainder of the calendar year in which the Eligible Director first becomes an Eligible Director, on the Award Date) at the prevailing rate of Compensation at the time of
the election made in accordance with Article IV, discounted to present value using the Discount Rate. 

        (2)    Special Meeting Fees.    If an Eligible
Director has elected or elects to defer his or her Special Meeting Fees earned after December 31, 2004 in Stock Units, the Committee shall, on the March 1st following the
year in which the Special Meetings occurred, credit the Eligible Director's Current Stock Unit Account with an amount of Units determined by dividing the amount of the Eligible Director's Special
Meeting Fees deferred by the Fair Market Value of a share of Common Stock as of the date of the Special Meeting. 

        (b)    Prior Stock Unit Account.    Effective
January 1, 2005, the Stock Units Account (if any) established for an Eligible Director prior to January 1, 2005 shall be that Eligible Director's "Prior Stock Unit Account," and no
amount of Compensation or Special Meeting Fees earned after December 31, 2004 that such Eligible Director elects to defer under this Plan shall be credited to such Prior Stock Unit Account. If
an Eligible Director has elected to defer his or her Special Meeting Fees earned prior to January 1, 2005 in Stock Units, the Committee shall, on the March 1st following
the year in which the Special Meetings occurred, credit the Eligible Director's Prior Stock Unit Account with an amount of Units determined by dividing the amount of the Eligible Director's Special
Meeting Fees deferred by the Fair Market Value of a share of Common Stock as of the date of the Special Meeting. 

        (c)    Transfers of Stock Units Attributable to 2005 and 2006
Deferrals.    Effective January 1, 2005, any Units credited to an Eligible Director's Prior Stock Unit Account prior to
January 1, 2005 that are attributable to Compensation to be earned after December 31, 2004 shall be transferred to such Eligible Director's Current Stock Unit Account established
pursuant to Section 5.2(a). 

        (d)    Limitations on Rights Associated with
Units.    An Eligible Director's Current Stock Unit Account and/or Prior Stock Unit Account shall each be a memorandum account on the books of
the Company. The Units credited to an Eligible Director's Stock Unit Account(s) shall be used solely as a device for the determination of the number of shares of Common Stock to be eventually
distributed to such Eligible Director in accordance with this Plan. The Units shall not be treated as property or as a trust fund of any kind. All shares of Common Stock or other amounts attributed to
the Units shall be and remain the sole property of the Company, and each Eligible Director's right in the Units is limited to the right to receive shares of Common Stock in the future as herein
provided. No Eligible Director shall be entitled to any voting or other shareholder rights with respect to Units granted under this Plan. The number of Units credited under this Section shall be
subject to adjustment in accordance with Section 5.6. 

        (e)    Credited Units Not Vested.    The Units
credited to an Eligible Director's Stock Unit Account(s) shall only become vested in accordance with Section 5.4(a). 

        5.3    Dividend Equivalents; Dividend Equivalent Cash Account; Dividend Equivalent Stock
Account.    

        (a)    Allocation of Dividend
Equivalents.    Each Eligible Director shall, at the time of making an election in accordance with Article IV, elect to have all
Dividend Equivalents attributable to Units credited to his or her Stock Unit Account pursuant to such election credited to either (1) a Dividend Equivalent Cash Account for such Eligible
Director in accordance with subsection (b) below or (2) a Dividend Equivalent Stock Account for such Eligible Director in accordance with subsection (c) below. Such election shall
be irrevocable and shall remain in effect with respect 

6

 

to
all Stock Units credited to the Eligible Director's Stock Unit Account and Dividend Equivalent Stock Account in accordance with the Eligible Director's election made pursuant to Article IV. 

        (b)    Dividend Equivalent Cash Account.    

        (1)    Current Dividend Equivalent Cash
Account.    Effective January 1, 2005, if an Eligible Director has elected or elects to have Dividend Equivalents with respect to
Compensation and/or Special Meeting Fees deferred in Stock Units after December 31, 2004 credited to his or her Dividend Equivalent Cash Account, the Committee shall establish and maintain a
Dividend Equivalent Cash Account for the Eligible Director under the Plan, which Account shall be a memorandum account on the books of the Company and shall be such Eligible Director's "Current
Dividend Equivalent Cash Account." In such case, the Committee shall, as of each dividend payment date, credit the Eligible Director's Current Dividend Equivalent Cash Account with an amount equal to
the amount of Dividend Equivalents attributable to Stock Units then credited to the Eligible Director's Current Stock Unit Account. In addition, as of the last day of each calendar quarter, the
Eligible Director's Current Dividend
Equivalent Cash Account shall be credited with earnings in an amount equal to that determined by multiplying the balance credited to such account as of the last day of the preceding quarter by an
amount equal to one-fourth of the Interest Rate. 

        (2)    Prior Dividend Equivalent Cash
Account.    Effective January 1, 2005, the Dividend Equivalent Cash Account (if any) established for an Eligible Director prior to
January 1, 2005 shall be that Eligible Director's "Prior Dividend Equivalent Cash Account." The Committee shall, as of each dividend payment date, credit the Eligible Director's Prior Dividend
Equivalent Cash Account with an amount equal to the amount of Dividend Equivalents attributable to Stock Units then credited to the Eligible Director's Prior Stock Unit Account. In addition, as of the
last day of each calendar quarter, the Eligible Director's Prior Dividend Equivalent Cash Account shall be credited with earnings in an amount equal to that determined by multiplying the balance
credited to such account as of the last day of the preceding quarter by an amount equal to one-fourth of the Interest Rate. 

        (3)    Transfer of Dividend Equivalents Attributable to 2005 and 2006
Deferrals.    Effective January 1, 2005, any Dividend Equivalents that were credited to an Eligible Director's Prior Dividend
Equivalent Cash Account prior to January 1, 2005 that were attributable to Stock Units credited to his or her Stock Unit Account with respect to Compensation to be earned after
December 31, 2004 shall be transferred to such Eligible Director's Current Dividend Equivalent Cash Account established pursuant to Section 5.3(b)(1). 

        (c)    Dividend Equivalent Stock Account.    

        (1)    Current Dividend Equivalent Stock
Account.    Effective January 1, 2005, if an Eligible Director has elected or elects to have Dividend Equivalents credited to his or
her Dividend Equivalent Stock Account, the Committee shall establish and maintain a Dividend Equivalent Stock Account for the Eligible Director under the Plan, which Account shall be a memorandum
account on the books of the Company and shall be such Eligible Director's "Current Dividend Equivalent Stock Account." In such case, the Committee shall, as of each dividend payment date, credit the
Eligible Director's Current Dividend Equivalent Stock Account with an amount of Units determined by dividing the amount of Dividend Equivalents attributable to Stock Units then credited to the
Eligible Director's Current Stock Unit Account by the Fair Market Value of a share of Common Stock as of such date. The Units credited to an Eligible Director's Current Dividend Equivalent Stock
Account shall be subject to adjustment under Section 5.6. 

7

 

        (2)    Prior Dividend Equivalent Stock
Account.    Effective January 1, 2005, the Dividend Equivalent Stock Account (if any) established for an Eligible Director prior to
January 1, 2005 shall be that Eligible Director's "Prior Dividend Equivalent Stock Account." The Committee shall, as of each dividend payment date, credit the Eligible Director's Prior Dividend
Equivalent Stock Account with an amount
of Units determined by dividing the amount of Dividend Equivalents attributable to Stock Units then credited to the Eligible Director's Prior Stock Unit Account by the Fair Market Value of a share of
Common Stock on such date. The Units credited to an Eligible Director's Prior Dividend Equivalent Stock Account shall be subject to adjustment under Section 5.6. 

        (3)    Transfer of Dividend Equivalents Attributable to 2005 and 2006
Deferrals.    Effective January 1, 2005, any Dividend Equivalents that were credited to an Eligible Director's Prior Dividend
Equivalent Stock Account prior to January 1, 2005 that were attributable to Stock Units credited to his or her Stock Unit Account with respect to Compensation to be earned after
December 31, 2004 shall be transferred to such Eligible Director's Current Dividend Equivalent Stock Account established pursuant to Section 5.3(c)(1). 

        (d)    Credited Dividends Account Not
Vested.    Amounts credited to the Dividend Equivalent Cash Account or the Dividend Equivalent Stock Account shall only become vested in
accordance with Sections 5.4(a) or (c), as the case may be. 

        5.4    Vesting.    

        (a)    Stock Unit Account; Dividend Equivalent Stock
Account.    The rights of each Eligible Director in respect of his or her Stock Unit Account and Dividend Equivalent Stock Account shall vest
as the Eligible Director's services (to which the deferred Compensation and deferred Special Meeting Fees relate) are rendered. Accordingly, effective as of the date the Eligible Director ceases to be
a member of the Board of Directors, the number of Units credited to the Eligible Director's Stock Unit Account and Dividend Equivalent Stock Account shall be reduced to the number of Units that would
have been in such accounts on the date the Eligible Director ceased to serve on the Board of Directors had the Compensation and Special Meeting Fees the Eligible Director elected to defer included
only Compensation and Special Meeting Fees payable for the period of actual service as a director, less any vested Units previously distributed as shares of Common Stock pursuant to the Eligible
Director's election to receive installment payments and/or a distribution under Section 5.5(d) or 5.5A(d) or (e). For purposes of calculating the number of Units that would have been credited
to the Eligible Director's Stock Unit Account and Dividend Equivalent Stock Account, the Eligible Director's annual retainer shall be prorated for the year of cessation on a monthly basis.
Notwithstanding the preceding sentence, if an Eligible Director ceases to be a member of the Board of Directors by reason of death or Disability, or upon or following a Change in Control Event, the
Eligible Director's Stock Unit Account and Dividend Equivalent Stock Account shall immediately become fully vested. 

        (b)    Cash Account.    The rights of each
Eligible Director in respect of his or her Cash Account shall at all times be fully vested. 

        (c)    Dividend Equivalent Cash
Account.    The rights of each Eligible Director in respect of his or her Dividend Equivalent Cash Account shall vest as the Eligible
Director's services (to which the deferred Compensation and deferred Special Meeting Fees relate) are rendered. Accordingly, effective as of the date the Eligible Director ceases to be a member of the
Board of Directors, the Company shall reduce any amount credited to the Eligible Director's Dividend Equivalent Cash Account by an amount equal to any Dividend Equivalents (together with any related
earnings) attributable to any Units which are forfeited in accordance with Section 5.4(a) and/or previously distributed as shares of Common Stock in accordance with the Eligible Director's
election to receive installment payments and/or a distribution under Section 5.5(d) or 5.5A(d) or (e). 

8

 

Notwithstanding
the preceding, if an Eligible Director ceases to be a member of the Board of Directors by reason of death or Disability, or upon or following a Change in Control Event, the Eligible
Director's Dividend Equivalent Cash Account shall immediately become fully vested. 

        5.5    Distribution of Benefits.    The
provisions of this Section 5.5 shall apply only with respect to distributions from Current Cash Accounts, Current Dividend Equivalent Cash Accounts, Current Dividend Equivalent Stock Accounts
and Current Stock Unit Accounts. The provisions of Section 5.5A as set forth in Appendix A to this Plan document govern the distribution from Prior Cash Accounts, Prior Dividend
Equivalent Cash Accounts, Prior Dividend Equivalent Stock Accounts and Prior Stock Unit Accounts. 

        (a)    Time and Manner of Distribution.    

        (i)    The
vested amounts credited an Eligible Director's Accounts shall be distributed to the Eligible Director (or, in the event of his or her death, the Eligible Director's
Beneficiary) upon his or her termination from service on the Board of Directors; provided, however, that a termination of service shall not be deemed to have occurred for any purpose under the Plan
unless such termination from service constitutes a "separation from service" as defined under Section 409A of the Code and any regulations promulgated thereunder. Notwithstanding the foregoing,
on the annual or multiple-year deferral election form that a Participant files in accordance with the provisions of Article IV of the Plan for any Plan Year or series of two or
three Plan Years beginning on or after January 1, 2005, an Eligible Director may elect to have the amounts credited to his or her Accounts with respect to such annual or
multiple-year deferral period distributed to him or her on any one of the following optional distribution dates: (A) January 1 following the Eligible Director's termination
of service, (B) January 1 of a specified year designated by the Eligible Director, which shall be no earlier than 3 years after the Plan Year to which the deferral relates, or
(C) the earlier to occur of (A) or (B). 

        (ii)   The
benefits payable under this Plan shall be distributed to the Eligible Director (or, in the event of his or her death, the Eligible Director's Beneficiary) in a lump
sum or, if elected by the Eligible Director in writing on the annual or multiple-year deferral election form that a
Participant files in accordance with the provisions of Article IV of the Plan for a Plan Year beginning on or after January 1, 2005, in annual installments for up to 10 years. 

        (iii)  An
Eligible Director shall be permitted to make a different election with respect to each annual or multiple-year deferral period as to the time and manner
in which his or her benefits shall be distributed. For each Eligible Director who makes one or more distribution elections pursuant to this Section 5.5(a), each of his or her Accounts shall be
divided into two or more Distribution Subaccounts as necessary to separately account for deferrals that are payable at different times and/or in different manners. For purposes of calculating
installments, the Eligible Director's vested Accounts (and Distribution Subaccounts if applicable) will be valued as of December 31 of each year, and divided by the number of remaining
installments to determine the amount of the installment to be paid in the following year. Subsequent installments will be adjusted accordingly for the next calendar year, according to procedures
established by the Committee. Such installment payments shall commence as of the date benefits become distributable under this Section 5.5(a). 

        (b)    Change in Time or Manner of
Distribution.    Notwithstanding subsection (a), an Eligible Director may elect to further defer the commencement of any distribution to be
made, or change the manner of any distribution election from a lump sum to annual installments made, with respect to benefits payable under this Plan by filing a new written election with the
Committee on a form approved by the Committee; provided, however, that (A) no such election shall be effective until one year after the date on which the election is made, (B) the first
payment with respect to which such election is made must be deferred for a period of not less than five years from the date such 

9

 

payment
would otherwise have been made or payments would have commenced, and (C) any election related to a payment that commences on any date other than the date of the Eligible Director's
termination of service shall only be effective if it is made at least twelve months prior to the date of the first scheduled payment under such election. 

        (c)    Effect of Change in Control
Event.    Notwithstanding subsections (a) and (b), if a Change in Control Event and a termination of service occurs, the vested
portions of an Eligible Director's Accounts shall be distributed immediately in a lump sum. 

        (d)    Distribution for Unforeseeable
Emergencies.    An Eligible Director (which for purposes of this Section 5.5(d) includes former Eligible Directors) may request a
distribution for an Unforeseeable Emergency without penalty of an amount not greater than the value of the Eligible Director's vested benefit under this Plan. Such distribution for an Unforeseeable
Emergency shall be subject to approval by the Committee in its sole discretion and may be made only to the extent necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved (1) through reimbursement or compensation by insurance
or otherwise or (2) by liquidation of the Eligible Director's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship. Amounts distributed pursuant
to this Section 5.5(d) shall be distributed only from
vested amounts credited to his or her Accounts and shall be distributed first from an Eligible Director's Cash and Dividend Equivalent Cash Accounts, and, to the extent the balance of the
Participant's Cash and Dividend Equivalent Cash Accounts is not sufficient to satisfy the severe financial hardship, next as a distribution of shares of the Company's Common Stock with a Fair Market
Value equal to such deficiency from the vested portion of such Eligible Director's Stock Unit and Dividend Equivalent Stock Accounts. 

        (e)    Form of Distribution.    Stock Units
credited to an Eligible Director's Stock Unit Account and Dividend Equivalent Stock Account shall be distributed in an equivalent whole number of shares of the Company's Common Stock. Fractions shall
be disregarded. Amounts credited to an Eligible Director's Cash Account and vested in the Eligible Director's Dividend Equivalent Cash Account shall be distributed in cash. 

        (f)    Small Benefit
Exception.    Notwithstanding any other provision of this Plan to the contrary, if at the time of any distribution the vested balance
remaining in an Eligible Director's Current Cash Account or Current Dividend Equivalent Cash Account is less than $2,000 or, if the number of vested Units credited to the Eligible Director's Current
Stock Unit Account or Current Dividend Equivalent Stock Account is less than 100, then such remaining vested balances shall be distributed in a lump sum. Notwithstanding the foregoing, if this
provision would cause amounts deferred under this Plan to be included in the income of the Eligible Directors prior to date of distribution, this provision shall not apply and distributions to the
Eligible Director shall be made in accordance with his or her distribution election under the Plan. 

        5.6    Adjustments in Case of Changes in Common
Stock.    If any stock dividend, stock split, recapitalization, merger, consolidation, combination or exchange of shares, sale of all or
substantially all of the assets of the Company, split-up, split-off, spin-off, liquidation or similar change in capitalization or any distribution to holders of the
Company's Common Stock (other than cash dividends and cash distributions) shall occur, proportionate and equitable adjustments shall be made in the number and type of shares of Common Stock or other
property reserved and of Units (both credited and vested) under this Plan. 

        5.7    Company's Right to Withhold.    The
Company shall satisfy any state or federal income tax withholding obligation arising upon distribution of an Eligible Director's accounts by reducing the number of shares of Common Stock otherwise
deliverable to the Eligible Director by the appropriate number of shares, valued at the average of the Fair Market Values of a share of Common Stock during 

10

 

the
last 10 trading days preceding the date of distribution, required to satisfy such tax withholding obligation. If the Company, for any reason, cannot satisfy the withholding obligation in
accordance with the preceding sentence, the Eligible Director shall pay or provide for payment in cash of the amount of any taxes which the Company may be required to withhold with respect to the
benefits hereunder. 

        5.8    Stockholder Approval.    This Plan, and
all the elections, actions and accruals with respect to Stock Units and Dividend Equivalents made prior to stockholder approval, was originally approved by the stockholders of the Company at their
1995 annual meeting. Amendments to the Plan have been approved by the Board of Directors pursuant to Article VII. 

ARTICLE VI

ADMINISTRATION  

        6.1    The Administrator.    The Committee
hereunder shall consist of two (2) or more Disinterested Directors appointed from time to time by the Board of Directors to serve as the administrator of this Plan at its pleasure. Any member
of the Committee may resign by delivering a written resignation to the Board of Directors. Members of the Committee shall not receive any additional compensation for administration of this Plan. 

        6.2    Committee Action.    The Committee may,
for the purpose of administering this Plan, choose a Secretary who may be, but is not required to be, a member of the Committee, who shall keep minutes of the Committee's proceedings and all records
and documents pertaining to the Committee's administration of this Plan. A member of the Committee shall not vote or act upon any matter which relates solely to himself or herself as a Participant in
this Plan. The Secretary may execute any certificate or other written direction on behalf of the Committee. Action of the Committee with respect to the administration of this Plan shall be taken
pursuant to a majority vote or by unanimous written consent of its members. 

        6.3    Rights and Duties.    Subject to the
limitations of this Plan, the Committee shall be charged with the general administration of this Plan and the responsibility for carrying out its provisions, and shall have powers necessary to
accomplish those purposes, including, but not by way of limitation, the following: 

        (a)   To
construe, interpret and administer this Plan; 

        (b)   To
resolve any questions concerning the amount of benefits payable to an Eligible Director (except that no member of the Committee shall participate in a decision
relating solely to his or her own benefits); 

        (c)   To
make all other determinations required by this Plan; 

        (d)   To
maintain all the necessary records for the administration of this Plan; and 

        (e)   To
make and publish forms, rules and procedures for elections under and for the administration of this Plan. 

        The
determination of the Committee made in good faith as to any disputed question or controversy and the Committee's determination of benefits payable to Eligible Directors shall be
conclusive. In performing its duties, the Committee shall be entitled to rely on information, opinions, reports or statements prepared or presented by: (1) officers or employees of the Company
whom the Committee believes to be reliable and competent as to such matters; and (2) counsel (who may be employees of the Company), independent accountants and other persons as to matters which
the Committee believes to be within such persons' professional or expert competence. The Committee shall be fully protected with respect to any action taken or omitted by it in good faith pursuant to
the advice of such persons. The Committee may delegate ministerial, bookkeeping and other non-discretionary functions to individuals who are officers or employees of the Company. 

11

 

        6.4    Indemnity and Liability.    All
expenses of the Committee shall be paid by the Company and the Company shall furnish the Committee with such clerical and other assistance as is necessary in the performance of its duties. No member
of the Committee shall be liable for any act or omission of any other member of the Committee nor for any act or omission on his or her own part, excepting only his or her own willful misconduct or
gross negligence. To the extent permitted by law, the Company shall indemnify and save harmless each member of the Committee against any and all expenses and liabilities arising out of his or her
membership on the Committee, excepting only expenses and liabilities arising out of his or her own willful misconduct or gross negligence, as determined by the Board of Directors. 

ARTICLE VII

PLAN CHANGES AND TERMINATION  

        The Board of Directors shall have the right to amend this Plan in whole or in part from time to time or may at any time suspend or terminate this Plan. In
addition, The Committee may amend the Plan to (a) ensure that this Plan complies with the requirements of Section 409A of the Code for deferral of taxation on compensation deferred
hereunder after December 31, 2004 until the time of distribution and (b) to make other changes to the provisions regarding elections as to the time and manner of distributions that
comply with such requirements of Section 409A. Notwithstanding the foregoing, no amendment or termination shall cancel or otherwise adversely affect in any way, without his or her written
consent, any Eligible Director's rights with respect to Stock Units and Dividend Equivalents credited to his or her Stock Unit Account, Dividend Equivalent Cash Account or Dividend Equivalent
Stock Account which are then vested (assuming solely for such purposes a voluntary termination of services as of the date of such amendment or termination) or to any amounts previously credited to his
or her Cash Account; provided, however, that in no event shall such consent be required for an amendment that is necessary to comply with applicable law, including without limitation, an amendment
required under Section 409A of the Code or the regulations thereunder to preserve the deferral of taxation on compensation deferred hereunder until the time of distribution. Any amendments
authorized hereby shall be stated in an instrument in writing, and all Eligible Directors shall be bound thereby upon receipt of notice thereof. 

        It
is the current expectation of the Company that this Plan shall be continued for a period of 20 years following the date of Board of Directors approval of this Plan, but
continuance of this Plan is not assumed as a contractual obligation of the Company. In the event that the Board of Directors decides to discontinue or terminate this Plan, it shall notify the
Committee and participants in this Plan of its action in an instrument in writing, and this Plan shall be terminated at the time therein set forth, and all participants shall be bound thereby. In such
event, the then vested benefits of an Eligible Director shall be distributed in accordance with the time and manner of distribution elected by him or her under Section 5.5 and/or 5.5A. 

ARTICLE VIII

MISCELLANEOUS  

        8.1    Limitation on Eligible Directors'
Rights.    Participation in this Plan shall not give any Eligible Director the right to continue to serve as a member of the Board of
Directors or any rights or interests other than as herein provided. No Eligible Director shall have any right to any payment or benefit hereunder except to the extent provided in this Plan. This Plan
shall create only a contractual obligation on the part of the Company as to such amounts and shall not be construed as creating a trust. This Plan, in and of itself, has no assets. Eligible Directors
shall have only the rights of general unsecured creditors of the Company with respect to amounts credited or vested and benefits payable, if any, on their Accounts. 

12

 

        8.2    Beneficiaries.    

        (a)    Beneficiary Designation.    Upon forms
provided by the Company each Eligible Director may designate in writing the Beneficiary or Beneficiaries (as defined in Section 8.2(b)) whom such Eligible Director desires to receive any
amounts payable under this Plan after his or her death. An Eligible Director from may from time to time change his or her designated Beneficiary or Beneficiaries without the
consent of such Beneficiary or Beneficiaries by filing a new designation in writing with the Committee. However, if a married Eligible Director wishes to designate a person other than his or her
spouse as Beneficiary, such designation shall be consented to in writing by the spouse. The Eligible Director may change any election designating a Beneficiary or Beneficiaries without any requirement
of further spousal consent if the spouse's consent so provides. Notwithstanding the foregoing, spousal consent shall not be necessary if it is established that the required consent cannot be obtained
because the spouse cannot be located or because of other circumstances prescribed by the Committee. The Company and the Committee may rely on the Eligible Director's designation of a Beneficiary or
Beneficiaries last filed in accordance with the terms of this Plan. 

        (b)    Definition of Beneficiary.    An
Eligible Director's "Beneficiary" or "Beneficiaries" shall be the person, persons, trust or trusts so designated by the Eligible Director or, in the absence of such designation, entitled by will or
the laws of descent and distribution to receive the Eligible Director's benefits under this Plan in the event of the Eligible Director's death, and shall mean the Eligible Director's executor or
administrator if no other Beneficiary is identified and able to act under the circumstances. 

        8.3    Benefits Not Assignable; Obligations Binding Upon
Successors.    Benefits of an Eligible Director under this Plan shall not be assignable or transferable and any purported transfer,
assignment, pledge or other encumbrance or attachment of any payments or benefits under this Plan, or any interest therein, other than by operation of law or pursuant to Section 8.2, shall not
be permitted or recognized. Obligations of the Company under this Plan shall be binding upon successors of the Company. 

        8.4    Governing Law; Severability.    The
validity of this Plan or any of its provisions shall be construed, administered and governed in all respects under and by the laws of the state of incorporation of the Company. If any provisions of
this instrument shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective. 

        8.5    Compliance With Laws.    This Plan and
the offer, issuance and delivery of shares of Common Stock and/or the payment of money through the deferral of compensation under this Plan are subject to compliance with all applicable federal and
state laws, rules and regulations (including but not limited to state and federal securities law) and to such approvals by any listing, agency or any regulatory or governmental authority as may, in
the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under this Plan shall be subject to such restrictions, and the person acquiring such
securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal
requirements. 

        8.6    Headings Not Part of Plan.    Headings
and subheadings in this Plan are inserted for reference only and are not to be considered in the construction of the provisions hereof. 

13

   APPENDIX A  

        The provisions set forth in this Appendix A set forth the provisions of Section 5.5A of the Plan which apply to the distribution of amounts deferred
prior to January 1, 2005 and credited to Prior Cash Accounts, Prior Dividend Equivalent Cash Accounts, Prior Dividend Equivalent Stock Accounts and Prior Stock Unit Accounts. 

        5.5A    Distribution of Benefits.    

        (a)    Time and Manner of
Distribution.    Each Eligible Director shall be entitled to receive a distribution of the vested portion of his or her Accounts upon his or
her termination from service on the Board of Directors or at such time as may be elected by the Eligible Director at the time of an election under Article IV and set forth in writing on forms
provided by the Company. The benefits payable under this Plan shall be distributed to the Eligible Director (or, in the event of his or her death, the Eligible Director's Beneficiary) in a lump sum
or, if elected by the Eligible Director in writing on forms provided by the Company at least 12 months in advance of the date benefits become distributable under subsection (a), in annual
installments for up to 10 years. An Eligible Director shall be permitted to make a different election with respect to each annual deferral period as to the time and manner in which his or her
benefits shall be distributed. For each Eligible Director who makes one or more distribution elections pursuant to this Section 5.5A(a), each of his or her Accounts shall be divided into two or
more Distribution Subaccounts as necessary to separately account for deferrals which are payable at different times and/or in different manners. For purposes of calculating installments, the Eligible
Director's vested Accounts (and Distribution Subaccounts if applicable) will be valued as of December 31 of each year, and divided by the number of remaining installments to determine the
amount of the installment to be paid in the following year. Subsequent installments will be adjusted accordingly for the next calendar year, according to procedures established by the Committee. Such
installment payments shall commence as of the date benefits become distributable under this Section 5.5A(a). 

        (b)    Change in Time or Manner of
Distribution.    Notwithstanding subsection (a): 

        (1)   An
Eligible Director may elect to further defer the commencement of any distribution to be made with respect to benefits payable under this Plan by filing a new written
election with the Committee on a form approved by the Committee; provided, however, that (A) no such new election shall be effective until 12 months after such election is filed with the
Committee, (B) no such new election shall be effective with respect to any Account(s) after the distribution of benefits with respect to such
Account(s) shall have commenced, and (C) no more than three new elections with respect to each annual deferral period shall be valid as to any Eligible Director. An election made pursuant to
this Section 5.5A(b)(1) shall not affect the manner of distribution (i.e., lump sum versus installments), the terms of which shall be subject to Section 5.5A(a) above or
Section 5.5A(b)(2) below. 

        (2)   An
Eligible Director may change the manner of any distribution election from a lump sum to annual installments (or vice versa) made with respect to amounts credited
under his or her Accounts by filing a written election with the Committee on a form provided by the Committee; provided, however, that no such election shall be effective until 12 months after
such election is filed with the Committee, and no such election shall be effective if it is made with respect to any Account(s) after the distribution of benefits with respect to such Account(s) have
commenced. An election made pursuant to this Section 5.5A(b)(2) shall not affect the date of the commencement of benefits. 

        (3)   On
or before September 30, 2000, an Eligible Director may make a one-time, irrevocable election (subject to other express provisions of this Plan), on
forms provided for this purpose, to receive a distribution of his or her accumulated balances under this Plan as of 

A-1

 

September 30,
2000 on: (A) a date elected by the Eligible Director, but in no event before 2003, or (B) the earlier of a date elected by the Eligible Director, but in no event
before 2003, or the date of his or her termination of service from the Board of Directors. The benefits payable under such an election shall be distributed to the Eligible Director (or in the event of
his or her death, the Eligible Director's Beneficiary) in a lump sum or, if elected by the Eligible Director in writing on forms provided by the Company at least 12 months in advance of the
date benefits become distributable under Section 5.5A(a) above, in annual installments for up to 10 years, as so elected. 

        (c)    Effect of Change in Control
Event.    Notwithstanding subsections (a) and (b), if a Change in Control Event and a termination of service occurs, the vested
portions of an Eligible Director's Accounts shall be distributed immediately in a lump sum. 

        (d)    Early Distributions.    Each Eligible
Director (which for purposes of this Section 5.5A(d) includes former Eligible Directors) shall be permitted to elect to withdraw not less than 50% of the vested portion of his or her Accounts,
reduced by the withdrawal penalty described below, prior to the applicable payment date(s) or payment commencement date(s) ("Early Distributions"), subject to the following restrictions: 

        (1)   The
election to take an Early Distribution shall be made in writing on a form provided by and filed with the Committee; 

        (2)   The
amount of the Early Distribution shall equal 90% of the amount the Eligible Director has elected to withdraw; and 

        (3)   The
remaining 10% of the amount the Eligible Director has elected to withdraw shall be permanently forfeited, and the Eligible Director or his or her Beneficiary shall
have no rights with respect to such forfeited amounts. 

        Notwithstanding
the foregoing, the Eligible Director's Accounts will continue to vest in accordance with Section 5.4 and the Dividend Equivalent Stock Account and/or Dividend
Equivalent Cash Account of such Eligible Director shall continue to be credited with Dividend Equivalents in accordance with Section 5.3. 

        (e)    Distribution for Unforeseeable
Emergencies.    An Eligible Director (which for purposes of this Section 5.5A(e) includes former Eligible Directors) may request a
distribution for an Unforeseeable Emergency without penalty of an amount not greater than the value of the Eligible Director's vested benefit under this Plan. Such distribution for an Unforeseeable
Emergency shall be subject to approval by the Committee in its sole discretion and may be made only to the extent necessary to satisfy the hardship and only from vested amounts credited to his or her
Accounts. The Committee may treat a distribution as necessary for an Unforeseeable Emergency if it relies on the Eligible Director's written representation, without actual knowledge to the contrary,
that the hardship cannot reasonably be relieved (1) through timely reimbursement or compensation by insurance or otherwise or (2) by liquidation of the Eligible Director's assets, to the
extent the liquidation of such assets would not itself cause severe financial hardship. Amounts distributed pursuant to this Section 5.5A(e) shall be distributed first from an Eligible
Director's Cash and Dividend Equivalent Cash Accounts, and, to the extent the balance of the Participant's Cash and Dividend Equivalent Cash Accounts is not sufficient to satisfy the severe financial
hardship, next as a distribution of shares of the Company's Common Stock with a Fair Market Value equal to such deficiency from the vested portion of such Eligible Director's Stock Unit and Dividend
Equivalent Stock Accounts. 

        (f)    Form of Distribution.    Stock Units
credited to an Eligible Director's Stock Unit Account and Dividend Equivalent Stock Account shall be distributed in an equivalent whole number of shares of the Company's Common Stock. Fractions shall
be disregarded. Amounts credited to an 

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Eligible
Director's Cash Account and vested in the Eligible Director's Dividend Equivalent Cash Account shall be distributed in cash. 

        (g)    Small Benefit
Exception.    Notwithstanding any other provision of this Plan to the contrary, if at the time of any distribution the vested balance
remaining in an Eligible Director's Prior Cash Account or Prior Dividend Equivalent Cash Account is less than $2,000 or, if the number of vested Units credited
to the Eligible Director's Prior Stock Unit Account or Prior Dividend Equivalent Stock Account is less than 100, then such remaining vested balances shall be distributed in a lump sum. 

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Exhibit 10.7

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