Document:

Exhibit 10.2

 

 

THE MACERICH COMPANY

EMPLOYEE STOCK PURCHASE PLAN

 

 

 

TABLE OF CONTENTS 

 

 

	
  1.

  	
  PURPOSE

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  ELIGIBILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  STOCK
  SUBJECT TO THIS PLAN; SHARE LIMITATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  OFFERING PERIODS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  METHOD OF
  PAYMENT OF CONTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  GRANT OF OPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  EXERCISE OF OPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  DELIVERY OF SHARES

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  TERMINATION
  OF EMPLOYMENT; CHANGE IN ELIGIBLE STATUS

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  DESIGNATION OF
  BENEFICIARY

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  TRANSFERABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  USE OF FUNDS; INTEREST

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  REPORTS

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  ADJUSTMENTS
  OF AND CHANGES IN THE STOCK

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  POSSIBLE
  EARLY TERMINATION OF PLAN AND OPTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  TERM OF
  PLAN; AMENDMENT OR TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  21.

  	
  CONDITIONS UPON
  ISSUANCE OF SHARES

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  PLAN CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  23.

  	
  EMPLOYEES’ RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  25.

  	
  TAX WITHHOLDING

  	
   

  

 

i

 

THE MACERICH COMPANY

EMPLOYEE STOCK PURCHASE PLAN

 

                The following constitute the provisions of The
Macerich Company Employee Stock Purchase Plan.

 

1.             PURPOSE

 

The purpose of this Plan
is to assist Eligible Employees in acquiring a stock ownership interest in the
Corporation at a favorable price and upon favorable terms. This Plan is also
intended to encourage Eligible Employees to remain in the employ of the
Corporation or a Participating Subsidiary and to provide them with an
additional incentive to advance the best interests of the Corporation. This
plan is not intended to qualify as an “employee stock purchase plan” under
Section 423 of the Code because most Eligible Employees are employed by
Participating Subsidiaries that are ineligible to participate in such a plan.

 

2.             DEFINITIONS

 

Capitalized terms used
herein which are not otherwise defined shall have the following meanings.

 

“Account” means the bookkeeping account
maintained by the Corporation, or by a recordkeeper on behalf of the
Corporation, for a Participant pursuant to Section 7(a).

 

“Beneficially Own” means to own, directly or
indirectly, Equity Shares through the application of Section 544 of the
Code, as modified by Section 856(h)(1)(B) of the Code.

 

“Board” means the Board of Directors of the
Corporation.

 

“Code” means the U.S. Internal Revenue Code
of 1986, as amended from time to time.

 

“Committee” means the committee appointed by
the Board to administer this Plan pursuant to Section 12.

 

“Commission” means the U.S. Securities and
Exchange Commission.

 

“Common Stock” means the Common Stock of the
Corporation and such other securities or property as may become the subject of
Options pursuant to an adjustment made under Section 17.

 

“Compensation” means (1) if the
Eligible Employee is a salaried employee, the Eligible Employee’s regular
salary from the Corporation (or the Participating Subsidiary that employs the
Eligible Employee, as applicable) for the relevant period of time, or
(2) if the Eligible Employee is not a salaried employee, the Eligible
Employee’s regular gross pay from the Corporation (or the Participating
Subsidiary that employs the Eligible Employee, as applicable) for his or her
regularly-scheduled work week(s) during the relevant period of time.
Compensation includes any amounts contributed as salary reduction contributions
to a plan qualifying under Section 401(k), 125 or 129 of the Code and, for
purposes of the 10% limit in Section 6(b), amounts deferred under
nonqualified deferred compensation plans. Any other form of remuneration is
excluded from Compensation, including (but not limited to) the following:
overtime payments, commissions, prizes, awards, relocation or housing
allowances, stock option exercises, stock appreciation right payments, the
vesting or grant of restricted stock, performance awards, auto allowances,
tuition reimbursement and other forms of imputed income, bonuses, incentive
compensation, special payments, fees, and allowances.

 

“Constructively Own” means to own, directly
or indirectly, Equity Shares through the application of Section 318 of the
Code, as modified by Section 856(d)(5) of the Code.

 

1

 

“Contributions” means the bookkeeping
amounts credited to the Account of a Participant pursuant to this Plan, equal
in amount to the amount of Compensation that the Participant elected to
contribute for the purchase of Common Stock under and in accordance with this
Plan.

 

“Corporation” means The Macerich Company, a
Maryland corporation, and its successors.

 

“Effective Date” means April 1, 2003,
the date this Plan was adopted by the Board.

 

“Eligible Employee” means any employee of
the Corporation, or of any Subsidiary which has been designated in writing by
the Committee as a “Participating Subsidiary.” Notwithstanding the foregoing,
“Eligible Employee” shall not include any employee:

 

	
  (a)

  	
   

  	
  who has been employed by the Corporation or a
  Subsidiary for less than one year; or

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  whose customary employment is for 19.23 hours
  or less per week (which is the equivalent of 1,000 hours or less on an
  annualized basis).

  

 

For purposes of the one
year of employment requirement in (a), employment by a corporation, partnership
or other entity prior to the acquisition of such entity by the Corporation or a
Subsidiary shall be considered as employment with the Corporation or
Subsidiary, as the case may be, and employment in the management of any
shopping mall or other property immediately prior to the Corporation’s or a
Subsidiary’s acquisition of a direct or indirect interest in, or becoming the
manager of, such property of any individual who becomes an employee of the
Corporation or Subsidiary in connection with such event shall be counted as
employment with the Corporation or Subsidiary, as the case may be.

 

“Equity Shares” means shares that are either
Common Stock or Preferred Stock.

 

“Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended from time to time.

 

“Exercise Date” means, with respect to an
Offering Period, the last day of that Offering Period.

 

“Exercise Price” means the per share
exercise price of an Option as determined in accordance with Section 8(b).

 

“Fair Market Value” on any date means:

 

	
  (a)

  	
   

  	
  if the Common Stock is listed or admitted to trade
  on a national securities exchange, the closing price of a share of Common
  Stock on the Composite Tape, as published in The Wall Street Journal or
  reported by such other source as the Committee deems reliable, of the
  principal national securities exchange on which such stock is so listed or
  admitted to trade, on such date, or, if there is no trading of the Common
  Stock on such date, then the closing price of a share of Common Stock as
  quoted on such Composite Tape and as published in the Wall Street Journal or
  reported by such other source as the Committee deems reliable on the next
  preceding date on which there was trading in the shares of Common Stock;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  if the Common Stock is not listed or admitted to
  trade on a national securities exchange but is traded on the Nasdaq National
  Market or the Nasdaq SmallCap Market or through a similar market, the closing
  sales price for a share of Common Stock (or the closing bid for a share of
  Common Stock if no sales of Common Stock were reported on the relevant date)
  as quoted on such exchange or market (or, in the event of more than one such
  quote, as quoted on the exchange or market with the greatest volume of
  trading in the Common Stock on the relevant date) on such date or, if such
  date is not a market trading date, on the last market trading day prior to
  such date, as reported in The Wall Street Journal or such other source as the
  Committee deems reliable; or

  

 

2

 

	
  (c)

  	
   

  	
  in the absence of market or exchange data required
  to determine Fair Market Value pursuant to the foregoing, the value as
  established by the Committee at such time for purposes of this Plan.

  

 

“Grant Date” means, with respect to an
Offering Period, the first day of that Offering Period.

 

“Individual Limit” has the meaning given to
such term in Section 4(b).

 

“Offering Period” means each six-month
period commencing January 1 or July 1 and ending the immediately following
June 30 or December 31, respectively.

 

“Option” means the stock option to acquire
shares of Common Stock granted to a Participant pursuant to Section 8.

 

“Participant” means an Eligible Employee who
has elected to participate in this Plan and who has filed a valid and effective
Participation Agreement to make Contributions pursuant to Section 6.

 

“Participating Subsidiary” shall have the
meaning given to such term in Section 19(e).

 

“Participation Agreement” means the written
agreement filed by an Eligible Employee with the Corporation pursuant to
Section 6 to participate in this Plan.

 

“Plan” means this The Macerich Company
Employee Stock Purchase Plan, as it may be amended from time to time.

 

“Preferred Stock” means the Preferred Stock
of the Corporation.

 

“Subsidiary” means The Macerich Partnership,
L.P., Macerich Management Company, Macerich Property Management Company, LLC,
Westcor Partners, LLC, Westcor Partners Properties, LLC, Macerich Westcor
Management, LLC, Westcor Partners of Colorado, LLC, Macerich Queens Limited
Partnership and Macerich Queens Expansion, LLC or any corporation or other
entity controlled (by stock ownership or otherwise) directly or indirectly by,
or under common control with, the Corporation.

 

3.             ELIGIBILITY

 

Any person employed as
an Eligible Employee as of a Grant Date shall be eligible to participate in
this Plan during the Offering Period in which such Grant Date occurs, subject
to the Eligible Employee satisfying the requirements of Section 6.

 

4.             STOCK SUBJECT TO THIS PLAN; SHARE
LIMITATIONS

 

	
  (a)

  	
   

  	
  Aggregate Share Limit. 
  Subject to the provisions of Section 17, the capital stock that
  may be delivered under this Plan will be shares of the Corporation’s
  authorized but unissued Common Stock, any of its shares of Common Stock held
  as “phantom” treasury shares, and any of its shares of Common Stock purchased
  on the open market for re-delivery under this Plan. The maximum number of
  shares of Common Stock that may be delivered pursuant to Options granted
  under this Plan is 750,000 shares, subject to adjustments pursuant to
  Section 17.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Individual Share Limit. 
  The maximum number of shares of Common Stock that any one individual
  may acquire upon exercise of his or her Option with respect to any one
  Offering Period is 1,000, subject to adjustments pursuant to Section 17
  (the “Individual Limit”). The
  Committee may amend the Individual Limit, effective no earlier than the first
  Offering Period commencing after the adoption of such amendment, without
  stockholder approval, except to the extent required by law or applicable
  stock exchange rules. The Individual Limit shall, unless otherwise provided
  by the Committee, be proportionately increased for any Offering Period of
  less than or greater than six months.

  

 

3

 

	
  (c)

  	
   

  	
  Shares Not Actually Delivered. 
  Shares that are subject to or underlie Options which for any reason
  are cancelled or terminated, are forfeited, fail to vest, or for any other
  reason are not paid or delivered under this Plan shall again, except to the
  extent prohibited by law, be available for subsequent Options under the Plan.

  

 

5.             OFFERING PERIODS

 

During the term of this
Plan, the Corporation will grant Options to purchase shares of Common Stock in
each Offering Period to all Participants in that Offering Period. Each Option
shall become effective on the Grant Date of the Offering Period with respect to
which the Option is granted. The term of each Option shall be the duration of
the related Offering Period and shall end on the Exercise Date of that Offering
Period. The first Offering Period shall commence as of the date determined by
the Committee, which date shall be no earlier than the Effective Date. Offering
Periods shall continue until this Plan is terminated in accordance with
Section 18 or 19.

 

6.             PARTICIPATION

 

	
  (a)

  	
   

  	
  Enrollment. 
  An Eligible Employee may become a participant in this Plan by
  completing a Participation Agreement on a form approved by and in a manner
  prescribed by the Committee (or its delegate). To become effective, a
  Participation Agreement must be signed by the Eligible Person and be filed
  with the Corporation at the time specified by the Committee, but in all cases
  prior to the start of the Offering Period with respect to which it is to become
  effective, and must set forth a whole percentage (or, if the Committee so
  provides, a stated amount) of the Eligible Employee’s Compensation to be
  credited to the Participant’s Account as Contributions each pay period.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Contribution Limits. 
  Notwithstanding the foregoing, a Participant may not elect to
  contribute more than ten percent (10%) (or such other limit as the Committee
  may establish prior to the start of the applicable Offering Period) of his or
  her Compensation during any one pay period as Plan Contributions. The
  Committee also may prescribe other limits, rules, or procedures for
  Contributions.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Content and Duration of
  Participation Agreements. 
  Participation Agreements shall contain the Eligible Employee’s
  authorization and consent to the Corporation’s withholding from his or her
  Compensation the amount of his or her Contributions. An Eligible Employee’s
  Participation Agreement, and his or her participation election and
  withholding consent thereon, shall remain valid for all Offering Periods
  until (1) the Eligible Employee’s participation terminates pursuant to
  the terms hereof, (2) the Eligible Employee files a new Participation
  Agreement that becomes effective, or (3) the Committee requires that a
  new Participation Agreement be executed and filed with the Corporation.

  

 

7.             METHOD OF PAYMENT OF CONTRIBUTIONS

 

	
  (a)

  	
   

  	
  Participant Accounts. 
  The Corporation shall maintain on its books, or cause to be maintained
  by a recordkeeper, an Account in the name of each Participant. The amount of
  Compensation elected to be applied as Contributions by a Participant shall be
  deducted from such Participant’s Compensation on each payday during the
  period for payroll deductions set forth below and such payroll deductions
  shall be credited to that Participant’s Account as soon as administratively
  practicable after such date. A Participant may not make any additional
  payments to his or her Account. A Participant’s Account shall be reduced by
  any amounts used to pay the Exercise Price of shares acquired, by any other
  amounts distributed pursuant to Sections 7(e), 9(b) or 11 or by any amounts
  used to satisfy withholding obligations pursuant to Section 25.

  

 

4

 

	
  (b)

  	
   

  	
  Payroll Deductions. 
  Subject to such other rules as the Committee may adopt, payroll
  deductions with respect to an Offering Period shall commence as of the first
  pay date which coincides with or immediately follows the applicable Grant
  Date and shall end on the last pay date which coincides with or immediately
  precedes the applicable Exercise Date, unless sooner terminated by the
  Participant as provided in Section 7(d) or 7(e) or until his or her
  participation terminates pursuant to Section 11.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Changes in Contribution Elections. 
  A Participant may discontinue, increase, or decrease the level of his
  or her Contributions (within Plan limits) by completing and filing with the
  Corporation, on such terms as the Committee (or its delegate) may prescribe,
  a new Participation Agreement which indicates such election. Subject to any
  other timing requirements that the Committee may impose, an election pursuant
  to this Section 7(c) shall be effective with the first Offering Period
  that commences after the Corporation’s receipt of such election. Except as
  contemplated by Sections 7(d) and 7(e), changes in Contribution levels may
  not take effect during an Offering Period. Other modifications or suspensions
  of Participation Agreements are not permitted.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Discontinuance of Plan
  Contributions (Other Than a Withdrawal).  A
  Participant may discontinue (but not increase or otherwise decrease) the
  level of his or her Contributions, by filing with the Corporation, on such
  terms as the Committee (or its delegate) may prescribe, a new Participation
  Agreement that indicates such election. Unless otherwise provided by the
  Committee, an election pursuant to this Section 7(d) shall be effective
  no earlier than the first payroll period that starts after the Corporation’s
  receipt of such election.

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Withdrawal During an Offering
  Period.  A Participant may terminate his or her
  Contributions during an Offering Period (and receive a distribution of the
  balance of his or her Account in accordance with Section 11) by
  completing and filing with the Corporation, in such form and on such terms as
  the Committee (or its delegate) may prescribe, a written withdrawal form
  which shall be signed by the Participant. Such termination shall be effective
  as soon as administratively practicable after its receipt by the Corporation.
  A withdrawal election pursuant to this Section 7(e) with respect to an
  Offering Period shall only be effective, however, if it is received by the
  Corporation prior to the Exercise Date of that Offering Period (or such
  earlier deadline that the Committee may reasonably require to process the
  withdrawal prior to the applicable Exercise Date). Partial withdrawals of
  Accounts are not permitted.

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Leaves of Absence. 
  During leaves of absence approved by the Corporation or a
  Participating Subsidiary, a Participant may continue participation in this
  Plan by cash payments to the Corporation on his normal paydays equal to the
  reduction in his Plan Contributions caused by his leave.

  

 

8.             GRANT OF OPTION

 

	
  (a)

  	
   

  	
  Grant Date; Number of Shares. 
  On each Grant Date, each Eligible Employee who is a participant during
  that Offering Period shall be granted an Option to purchase a number of
  shares of Common Stock. The Option shall be exercised on the Exercise Date.
  The number of shares of Common Stock subject to the Option shall be
  determined by dividing the Participant’s Account balance as of the applicable
  Exercise Date by the Exercise Price, subject to the limits of
  Section 8(c).

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Exercise Price. 
  The Exercise Price per share of the shares subject to an Option for an
  Offering Period shall be the lesser of: (1) 90% of the Fair Market Value
  of a share of Common Stock on the applicable Grant Date; or (2) 90% of
  the Fair Market Value of a share of Common Stock on the applicable Exercise
  Date. The Committee may, however, provide

  

 

5

 

	
   

  	
   

  	
  prior to the start of an Offering Period that the
  Exercise Price per share of Common Stock for that Offering Period shall be
  determined (1) based on a different discount amount (as opposed to a
  full 10% discount as contemplated by the preceding sentence) provided that in
  no event shall the applicable discount amount be greater than 10%, and/or
  (2) based on the applicable discount amount applied to the Fair Market
  Value of a share of Common Stock on the applicable Grant Date or Exercise
  Date (as opposed to the lesser of the Fair Market Value of a share on the
  Grant Date or the Fair Market Value of a share on the Exercise date as
  contemplated by the preceding sentence). Notwithstanding anything to the
  contrary in the preceding provisions of this Section 8(b), in no event
  shall the Exercise Price per share be less than the par value of a share of
  Common Stock.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Limits on Share Purchases. 
  Notwithstanding anything else contained herein, the maximum number of
  shares subject to an Option for an Offering Period shall be subject to the
  Individual Limit in effect on the Grant Date of that Offering Period (subject
  to adjustment pursuant to Section 17) and any person who is otherwise an
  Eligible Employee shall not be granted any Option (or any Option granted
  shall be subject to compliance with the following limitations) or other right
  to purchase shares under this Plan to the extent:

  

 

	
  (1)

  	
   

  	
  it would, if exercised, cause the person to own stock
  (within the meaning of Section 423 of the Code) possessing 5% or more of
  the total combined voting power or value of all classes of stock of the
  Corporation, or of any Subsidiary; or

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  such Option causes such individual to have rights to
  purchase stock under this Plan and any other plan of the Corporation, or any
  Subsidiary that accrue at a rate that exceeds $26,000 of the fair market
  value of the stock of the Corporation, or of any Subsidiary (determined at
  the time the right to purchase such Stock is granted, before giving effect to
  any discounted purchase price under any such plan) for each calendar year in
  which such right is outstanding at any time; or

  
	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  it would, if exercised, cause the person to
  Beneficially Own or Constructively Own Equity Shares in excess of 9.8% of the
  lesser of the number or value of the then-outstanding Equity Shares, except
  as otherwise permitted in accordance with the Corporation’s charter.

  

 

	
  For
  purposes of the foregoing, a right to purchase stock accrues when it first
  become exercisable during the calendar year. In determining whether the stock
  ownership of an Eligible Employee equals or exceeds the 5% limit set forth
  above, the rules of Section 424(d) of the Code (relating to attribution
  of stock ownership) shall apply, and stock that the Eligible Employee may
  purchase under outstanding options shall be treated as stock owned by the
  Eligible Employee.

  

 

9.             EXERCISE OF OPTION

 

	
  (a)

  	
   

  	
  Purchase of Shares. 
  Unless a Participant withdraws pursuant to Section 7(e) or the
  Participant’s Plan participation is terminated as provided in
  Section 11, his or her Option for the purchase of shares shall be
  exercised automatically on the Exercise Date for that Offering Period,
  without any further action on the Participant’s part, and the maximum number
  of whole shares of Common Stock subject to such Option (subject to the limits
  of Section 8(c)) shall be purchased at the Exercise Price with the
  balance of such Participant’s Account.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Account Balance Remaining After
  Purchase.If any
  amount which is not sufficient to purchase a whole share remains in a
  Participant’s Account after the exercise of his or her Option on the Exercise
  Date: (1) such amount shall be credited to such Participant’s Account
  for the next Offering Period, if he or she is then a Participant; or
  (2) if such Participant is not a

  

 

6

 

	
  Participant
  in the next Offering Period, or if the Committee so elects, such amount shall
  be refunded to such Participant as soon as administratively practicable after
  such date. If the share limit of Section 4(a) is reached, any amount
  that remains in a Participant’s Account after the exercise of his or her
  Option on the Exercise Date to purchase the number of shares that he or she
  is allocated shall be refunded to the Participant as soon as administratively
  practicable after such date. If any amount which exceeds one of the limits of
  Section 8(c) remains in a Participant’s Account after the exercise of
  his or her Option on the Exercise Date, such amount shall be refunded to the
  Participant as soon as administratively practicable after such date.

  

 

10.          DELIVERY OF SHARES

 

As soon as
administratively practicable after the Exercise Date, the Corporation shall, in
its discretion, deliver to each Participant a certificate representing the
shares of Common Stock purchased upon exercise of his or her Option, provide
for the crediting of such shares in book entry form in the name of the
Participant, or provide for an alternative arrangement for the delivery of such
shares to a broker or recordkeeping service for the benefit of the Participant.
In the event the Corporation is required to obtain from any commission or
agency authority to issue any such certificate or otherwise deliver such shares,
the Corporation will seek to obtain such authority. If the Corporation is
unable to obtain from any such commission or agency authority which counsel for
the Corporation deems necessary for the lawful issuance of any such certificate
or other delivery of such shares, or if for any other reason the Corporation
can not issue or deliver shares of Common Stock and satisfy Section 21,
the Corporation shall be relieved from liability to any Participant except that
the Corporation shall return to each Participant to whom such shares can not be
issued or delivered the amount of the balance credited to his or her Account
that would have otherwise been used for the purchase of such shares.

 

11.          TERMINATION OF EMPLOYMENT; CHANGE IN
ELIGIBLE STATUS

 

	
  (a)

  	
   

  	
  General. 
  Except as provided in Section 11(b) below, if a Participant
  ceases to be an Eligible Employee for any reason (including, without
  limitation, due to the Participant’s death, disability, quit, resignation or
  retirement, or due to a layoff or other termination of employment with or
  without cause), or if the Participant elects to withdraw from the Plan
  pursuant to Section 7(e), at any time prior to the last day of an
  Offering Period in which he or she participates, such Participant’s Account
  shall be paid to him or her (or, in the event of the Participant’s death, to
  the person or persons entitled thereto under Section 13) in cash, and
  such Participant’s Option and participation in the Plan shall automatically
  terminate as of the time that the Participant ceased to be an Eligible
  Employee.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Change in Eligible Status; Leave. 
  If a Participant (1) ceases to be an Eligible Employee during an
  Offering Period but remains an employee of the Corporation or a Subsidiary
  through the Exercise Date (for example, and without limitation, due to a
  change in the Participant’s employer from the Corporation or a Participating
  Subsidiary to a non-Participating Subsidiary, if the Participant’s employer
  ceases to maintain the Plan as a Participating Subsidiary but otherwise
  continues as a Subsidiary, or if the Participant’s customary level of
  employment no longer satisfies the requirements set forth in the definition
  of Eligible Employee), or (2) during an Offering Period commences a sick
  leave, military leave, or other leave of absence approved by the Corporation
  or a Participating Subsidiary, and the Participant is an employee of the
  Corporation or a Subsidiary or on such leave as of the applicable Exercise
  Date, such Participant’s Contributions shall cease (subject to Section 7(f)),
  and the Contributions previously credited to the Participant’s Account for
  that Offering Period shall be used to exercise the Participant’s Option as of
  the applicable Exercise

  

 

7

 

	
   

  	
   

  	
  Date
  in accordance with Section 9 (unless the Participant makes a timely
  withdrawal election in accordance with Section 7(e), in which case such
  Participant’s Account shall be paid to him or her in cash in accordance with
  the first paragraph of this Section 11(a)).

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Re-Enrollment. 
  A Participant’s termination from Plan participation precludes the
  Participant from again participating in this Plan during that Offering
  Period. However, such termination shall not have any effect upon his or her
  ability to participate in any succeeding Offering Period, provided that the
  applicable eligibility and participation requirements are again then met. A
  Participant’s termination from Plan participation shall be deemed to be a
  revocation of that Participant’s Participation Agreement and such Participant
  must file a new Participation Agreement to resume Plan participation in
  any succeeding Offering Period.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Change in Subsidiary Status. 
  For purposes of this Plan, if a Subsidiary ceases to be a Subsidiary,
  each person employed by that Subsidiary will be deemed to have terminated
  employment for purposes of this Plan, unless the person continues as an
  employee of the Corporation or another Subsidiary.

  

 

12.          ADMINISTRATION

 

	
  (a)

  	
   

  	
  The Committee. 
  The Board shall appoint the Committee, which shall be composed of not
  less than two members of the Board. The Board may, at any time, increase or
  decrease the number of members of the Committee, may remove from membership
  on the Committee all or any portion of its members, and may appoint such
  person or persons as it desires to fill any vacancy existing on the
  Committee, whether caused by removal, resignation, or otherwise. The Board
  may also, at any time, assume the administration of all or a part of this
  Plan, in which case references (or relevant references in the event the Board
  assumes the administration of only certain aspects of this Plan) to the
  “Committee” shall be deemed to be references to the Board. Action of the
  Committee with respect to this Plan shall be taken pursuant to a majority
  vote or by the unanimous written consent of its members. No member of the
  Committee shall be entitled to act on or decide any matter relating solely to
  himself or herself or solely to any of his or her rights or benefits under
  this Plan.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Powers and Duties of the Committee. 
  Subject to the express provisions of this Plan, the Committee shall
  supervise and administer this Plan and shall have the full authority and
  discretion: (1) to construe and interpret this Plan and any agreements
  defining the rights and obligations of the Corporation, any Subsidiary, and
  Participants under this Plan; (2) to further define the terms used in
  this Plan; (3) to prescribe, amend and rescind rules and regulations
  relating to the administration of this Plan; and (4) to make all other
  determinations and take such other action as contemplated by this Plan or as
  may be necessary or advisable for the administration of this Plan or the
  effectuation of its purposes.

  

 

8

 

	
  (c)

  	
   

  	
  Decisions of the Committee are
  Binding.  Any action taken by, or inaction of, the
  Corporation, any Subsidiary, the Board or the Committee relating or pursuant
  to this Plan and within its authority hereunder or under applicable law shall
  be within the absolute discretion of that entity or body and shall be
  conclusive and binding upon all persons.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Indemnification. 
  Neither the Board nor any Committee, nor any member thereof or person
  acting at the direction thereof, shall be liable for any act, omission,
  interpretation, construction or determination made in good faith in
  connection with this Plan, and all such persons shall be entitled to
  indemnification and reimbursement by the Corporation in respect of any claim,
  loss, damage or expense (including, without limitation, attorneys’ fees)
  arising or resulting therefrom to the fullest extent permitted by law and/or
  under any directors and officers liability insurance coverage that may be in
  effect from time to time.

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Reliance on Experts. 
  In making any determination or in taking or not taking any action
  under this Plan, the Committee or the Board, as the case may be, may obtain
  and may rely upon the advice of experts, including professional advisors to
  the Corporation. No director, officer or agent of the Corporation or any
  Participating Subsidiary shall be liable for any such action or determination
  taken or made or omitted in good faith.

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  Delegation. 
  The Committee may delegate ministerial, non-discretionary functions to
  individuals who are officers or employees of the Corporation or a Subsidiary.

  

 

13.          DESIGNATION OF BENEFICIARY

 

If the Committee permits
beneficiary designations with respect to this Plan, then each Participant may
file, on a form and in a manner prescribed by the Committee (or its delegate),
a written designation of a beneficiary who is to receive any shares or cash
from or with respect to such Participant’s Account under this Plan in the event
of such Participant’s death. If a Participant is married and the designated
beneficiary is not solely his or her spouse, spousal consent shall be required
for such designation to be effective unless it is established (to the
satisfaction of the Committee or its delegate) that there is no spouse or that
the spouse cannot be located. The Committee may rely on the last designation of
a beneficiary filed by a Participant in accordance with this Plan. Beneficiary
designations may be changed by the Participant (and his or her spouse, if
required) at any time on forms provided and in the manner prescribed by the
Committee (or its delegate).

 

If a Participant dies
with no validly designated beneficiary under this Plan who is living at the
time of such Participant’s death (or in the event the Committee does not permit
beneficiary designations under this Plan), the Corporation shall deliver all
shares and/or cash payable pursuant to the terms hereof to the executor or
administrator of the estate of the Participant, or if no such executor or
administrator has been appointed, the Corporation, in its discretion, may
deliver such shares and/or cash to the spouse or to any one or more dependents
or relatives of the Participant, or if no spouse, dependent or relative is
known to the Corporation, then to such other person as the Corporation may
designate.

 

If a Participant’s death
occurs before the end of an Offering Period or subsequent to the end of an
Offering Period but prior to the delivery to him or her or for his or her
benefit of any shares deliverable under the terms of this Plan, and the
Corporation has notice of the Participant’s death, then any shares purchased
for that Offering Period and any remaining balance of such Participant’s
Account shall be paid to such beneficiary (or such other person entitled to
such payment pursuant to this Section 13). If the Committee permits
beneficiary designations with respect to this Plan, any such designation shall
have no effect with respect to shares purchased and actually delivered (or
credited, as the case may be) to or for the benefit of the Participant.

 

9

 

14.          TRANSFERABILITY

 

Neither Contributions
credited to a Participant’s Account nor any Options or rights with respect to
the exercise of Options or right to receive shares under this Plan may be
anticipated, alienated, encumbered, assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and
distribution, or as provided in Section 13) by the Participant. Any such
attempt at anticipation, alienation, encumbrance, assignment, transfer, pledge
or other disposition shall be without effect and all amounts shall be paid and
all shares shall be delivered in accordance with the provisions of this Plan.
Amounts payable or shares deliverable pursuant to this Plan shall be paid or
delivered only to (or credited in the name of, as the case may be) the
Participant or, in the event of the Participant’s death, the Participant’s
beneficiary pursuant to Section 13.

 

15.          USE OF FUNDS; INTEREST

 

All Contributions
received or held by the Corporation under this Plan will be included in the
general assets of the Corporation and may be used for any corporate purpose.
Notwithstanding anything else contained herein to the contrary, no interest
will be paid to any Participant or credited to his or her Account under this
Plan (in respect of Account balances, refunds of Account balances, or
otherwise). Amounts payable under this Plan shall be payable in shares of
Common Stock or from the general assets of the Corporation and, except for any
shares that may be reserved on the books of the Corporation for issuance with
respect to this Plan, no special or separate reserve, fund or deposit shall be
made to assure payment of amounts that may be due with respect to this Plan.

 

16.          REPORTS

 

Statements shall be
provided to Participants as soon as administratively practicable following each
Exercise Date. Each Participant’s statement shall set forth, as of such
Exercise Date, that Participant’s Account balance immediately prior to the
exercise of his or her Option, the Exercise Price, the number of whole shares
purchased and his or her remaining Account balance, if any.

 

17.          ADJUSTMENTS OF AND CHANGES IN THE
STOCK

 

Upon or in contemplation
of any reclassification, recapitalization, stock split (including a stock split
in the form of a stock dividend), or reverse stock split; any merger,
combination, consolidation, or other reorganization; split-up, spin-off, or any
similar extraordinary dividend distribution in respect of the Common Stock
(whether in the form of securities or property); any exchange of Common Stock
or other securities of the Corporation, or any similar, unusual or
extraordinary corporate transaction in respect of the Common Stock; or a sale
of substantially all the assets of the Corporation as an entirety occurs; then
the Committee shall, in such manner, to such extent (if any) and at such time
as it deems appropriate and equitable in the circumstances:

 

	
  (a)

  	
   

  	
  proportionately adjust any or all of (1) the
  number and type of shares or the number and type of other securities that
  thereafter may be made the subject of Options (including the specific maximum
  numbers of shares set forth elsewhere in this Plan), (2) the number,
  amount and type of shares (or other securities or property) subject to any or
  all outstanding Options, (3) the Exercise Price of any or all
  outstanding Options, or (4) the securities, cash or other property
  deliverable upon exercise of any outstanding Options; or

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  make provision for a cash payment or for the
  substitution or exchange of any or all outstanding Options for cash,
  securities or property to be delivered to the holders of any or all
  outstanding Options based upon the distribution or consideration payable to
  holders of the Common Stock upon or in respect of such event.

  

 

10

 

The Committee may adopt
such valuation methodologies for outstanding Options as it deems reasonable in
the event of a cash or property settlement and, without limitation on other
methodologies, may base such settlement solely upon the excess (if any) of the
amount payable upon or in respect of such event over the Exercise Price of the
Option.

 

In any of such events,
the Committee may take such action sufficiently prior to such event to the
extent that the Committee deems the action necessary to permit the Participant
to realize the benefits intended to be conveyed with respect to the underlying
shares in the same manner as is or will be available to stockholders generally.

 

18.          POSSIBLE EARLY TERMINATION OF PLAN AND
OPTIONS

 

Upon a dissolution of
the Corporation, or any other event described in Section 17 that the
Corporation does not survive or does not survive as a publicly-traded company
in respect of its Common Stock, as the case may be, the Plan and, if prior to
the last day of an Offering Period, any outstanding Option granted with respect
to that Offering Period shall terminate, subject to any provision that has been
expressly made by the Board for the survival, substitution, assumption,
exchange or other settlement of the Plan and Options. In the event a
Participant’s Option is terminated pursuant to this Section 18 without a
provision having been made by the Board for a substitution, exchange or other
settlement of the Option, such Participant’s Account shall be paid to him or
her in cash without interest.

 

19.          TERM OF PLAN; AMENDMENT OR TERMINATION

 

	
  (a)

  	
   

  	
  Effective Date. 
  Subject to Section 19(b), this Plan shall become effective as of
  the Effective Date.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Stockholder Approval. 
  Notwithstanding anything else contained herein to the contrary, the
  effectiveness of this Plan is subject to the approval of this Plan by the
  stockholders of the Corporation within twelve months after the Effective
  Date. Notwithstanding anything else contained herein to the contrary, no
  shares of Common Stock shall be issued or delivered under this Plan until
  such stockholder approval is obtained and, if such stockholder approval is
  not obtained within such twelve-month period of time, all Contributions
  credited to a Participant’s Account hereunder shall be refunded to such
  Participant (without interest) as soon as practicable after the end of such
  twelve-month period.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Termination. 
  No new Offering Periods shall commence on or after the day before the
  tenth anniversary of the Effective Date and this Plan shall terminate as of
  the Exercise Date on or immediately following such date unless sooner
  terminated pursuant to Section 18 or this Section 19. In the event
  that all of the shares of Common Stock made available under this Plan are
  subscribed prior to the expiration of this Plan, this Plan shall terminate at
  the end of that Offering Period and the shares available shall be allocated
  for purchase by Participants in that Offering Period on a pro-rata basis
  determined with respect to Participants’ Account balances.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Board Amendment Authority. 
  The Board may, at any time, terminate or, from time to time, amend,
  modify or suspend this Plan, in whole or in part and without notice.
  Stockholder approval for any amendment or modification shall not be required,
  except to the extent required by applicable law or listing agency, or deemed
  necessary or advisable by the Board. No Options may be granted during any
  suspension of this Plan or after the termination of this Plan, but the
  Committee will retain jurisdiction as to Options then outstanding in
  accordance with the terms of this Plan. No amendment, modification, or
  termination pursuant to this Section 19(b) shall, without written consent
  of the Participant, affect in any manner materially adverse to the
  Participant any rights or benefits of such Participant or obligations of the

  

 

11

 

	
   

  	
   

  	
  Corporation
  under any Option granted under this Plan prior to the effective date of such
  change. Changes contemplated by Section 17 or Section 18 shall not
  be deemed to constitute changes or amendments requiring Participant consent.

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  Certain Additional Committee
  Authority.  Notwithstanding the amendment provisions
  of Section 19(b) and without limiting the Board’s authority thereunder
  and without limiting the Committee’s authority pursuant to any other
  provision of this Plan, the Committee shall have the right to designate from
  time to time the Subsidiaries whose employees may be eligible to participate
  in this Plan (including, without limitation, any Subsidiary that may first
  become such after the date stockholders first approve this Plan) (each a “Participating Subsidiary”). Any such
  change shall not take effect earlier than the first Offering Period that
  starts on or after the effective date of such change. Any such change shall
  not require stockholder approval, except to the extent required by law or
  applicable stock exchange rules or as deemed necessary or advisable by the
  Board.

  

 

20.          NOTICES

 

All notices or other
communications by a Participant to the Corporation contemplated by this Plan
shall be deemed to have been duly given when received in the form and manner
specified by the Committee (or its delegate) at the location, or by the person,
designated by the Committee (or its delegate) for that purpose.

 

21.          CONDITIONS UPON ISSUANCE OF SHARES

 

This Plan, the granting
of Options under this Plan and the offer, issuance and delivery of shares of Common
Stock are subject to compliance with all applicable federal and state laws,
rules and regulations (including but not limited to state and federal
securities laws) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Corporation,
be necessary or advisable in connection therewith. The person acquiring any
securities under this Plan will, if requested by the Corporation and as a
condition precedent to the exercise of his or her Option, provide such
assurances and representations to the Corporation as the Committee may deem
necessary or desirable to assure compliance with all applicable legal
requirements.

 

22.          PLAN CONSTRUCTION

 

	
  (a)

  	
   

  	
  Section 16. 
  It is the intent of the Corporation that transactions involving
  Options under this Plan (other than “Discretionary Transactions” as that term
  is defined in Rule 16b-3(b)(1) promulgated by the Commission under
  Section 16 of the Exchange Act, to the extent there are any
  Discretionary Transactions under this Plan), in the case of Participants who
  are or may be subject to the prohibitions of Section 16 of the Exchange
  Act, satisfy the requirements for exemption under Rule 16b-3(c)
  promulgated by the Commission under Section 16 of the Exchange Act to
  the maximum extent possible. Notwithstanding the foregoing, the Corporation
  shall have no liability to any Participant for Section 16 consequences
  of Options or other events with respect to this Plan.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Section 423. 
  This Plan and Options are not intended to qualify under
  Section 423 of the Code. Nevertheless, all Participants are to have the
  same rights and privileges (within the meaning of Section 423(b)(5) of
  the Code) under this Plan, subject to differences in Compensation among
  Participants and subject to the Contribution and share limits of this Plan.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Interpretation. 
  If any provision of this Plan or of any Option would otherwise
  frustrate or conflict with the intents expressed above, that provision to the
  extent possible shall be

  

 

12

 

interpreted so as to
avoid such conflict. If the conflict remains irreconcilable, the Committee may
disregard the provision if it concludes that to do so furthers the interest of
the Corporation and is consistent with the purposes of this Plan as to such
persons in the circumstances.

 

23.          EMPLOYEES’ RIGHTS

 

	
  (a)

  	
   

  	
  No Employment Rights. 
  Nothing in this Plan (or in any Participation Agreement or other
  document related to this Plan) will confer upon any Eligible Employee or
  Participant any right to continue in the employ or other service of the
  Corporation or any Subsidiary, constitute any contract or agreement of
  employment or other service or effect an employee’s status as an employee at
  will, nor shall interfere in any way with the right of the Corporation or any
  Subsidiary to change such person’s compensation or other benefits or to
  terminate his or her employment or other service, with or without cause.
  Nothing contained in this Section 23(a), however, is intended to
  adversely affect any express independent right of any such person under a
  separate employment or service contract other than a Participation Agreement.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  No Rights to Assets of the Company. 
  No Participant or other person will have any right, title or interest
  in any fund or in any specific asset (including shares of Common Stock) of
  the Corporation or any Subsidiary by reason of any Option hereunder. Neither
  the provisions of this Plan (or of any Participation Agreement or other
  document related to this Plan), nor the creation or adoption of this Plan,
  nor any action taken pursuant to the provisions of this Plan will create, or
  be construed to create, a trust of any kind or a fiduciary relationship
  between the Corporation or any Subsidiary and any Participant, Beneficiary or
  other person. To the extent that a Participant, Beneficiary or other person
  acquires a right to receive payment pursuant to this Plan, such right will be
  no greater than the right of any unsecured general creditor of the Corporation.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  No Stockholder Rights. 
  A Participant will not be entitled to any privilege of stock ownership
  as to any shares of Common Stock not actually delivered to and held of record
  by the Participant. No adjustment will be made for dividends or other rights
  as a stockholder for which a record date is prior to such date of delivery.

  

 

24.          MISCELLANEOUS

 

	
  (a)

  	
   

  	
  Governing Law. 
  This Plan, the Options, Participation Agreements and other documents
  related to this Plan shall be governed by, and construed in accordance with,
  the laws of the State of Maryland.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Severability.    If any
  provision shall be held by a court of competent jurisdiction to be invalid
  and unenforceable, the remaining provisions of this Plan shall continue in
  effect.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  Captions and Headings.    Captions and
  headings are given to the sections of this Plan solely as a convenience to
  facilitate reference. Such captions and headings shall not be deemed in any
  way material or relevant to the construction of interpretation of this Plan
  or any provision hereof.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  No Affect on Other Plans or
  Corporate Authority.    The adoption of this Plan shall not affect
  any other Corporation or Subsidiary compensation or incentive plans in
  effect. Nothing in this Plan will limit or be deemed to limit the authority
  of the Board or Committee (1) to establish any other forms of incentives
  or compensation for employees of the Corporation or any Subsidiary (with or
  without reference to the Common Stock), or (2) to grant or assume
  options (outside the scope of and in addition to those contemplated by this
  Plan) in connection with any proper corporate purpose; to the extent
  consistent with any other plan or

  

 

13

 

	
  authority.
  Benefits received by a Participant under an Option granted pursuant to this
  Plan shall not be deemed a part of the Participant’s compensation for
  purposes of the determination of benefits under any other employee welfare or
  benefit plans or arrangements, if any, provided by the Corporation or any
  Subsidiary, except where the Committee or the Board (or the Board of
  Directors of the Subsidiary that sponsors such plan or arrangement, as
  applicable) expressly otherwise provides or authorizes in writing.

  

 

25.          TAX WITHHOLDING

 

Notwithstanding anything
else contained in this Plan herein to the contrary, the Corporation may deduct
from a Participant’s Account balance as of an Exercise Date, before the
exercise of the Participant’s Option is given effect on such date, the amount
of taxes (if any) which the Corporation reasonably determines it or any
Subsidiary may be required to withhold with respect to such exercise. In such
event, the maximum number of whole shares subject to such Option (subject to
the other limits set forth in this Plan) shall be purchased at the Exercise
Price with the balance of the Participant’s Account (after reduction for the
tax withholding amount).

 

Should the Corporation
for any reason be unable, or elect not to, satisfy its or any Subsidiary’s tax
withholding obligations in the manner described in the preceding paragraph with
respect to a Participant’s exercise of an Option, the Corporation or
Subsidiary, as the case may be, shall have the right at its option to
(1) require the Participant to pay or provide for payment of the amount of
any taxes which the Corporation or Subsidiary reasonably determines that it or
any affiliate is required to withhold with respect to such event or
(2) deduct from any amount otherwise payable to or for the account of the
Participant the amount of any taxes which the Corporation or Subsidiary
reasonably determines that it or any affiliate is required to withhold with
respect to such event.

 

                IN WITNESS WHEREOF,
the Corporation has caused its duly authorized officer to execute this Plan on
this    day of
                        ,
2003.

 

	
   

  	
  THE MACERICH COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  

 

14Exhibit
10.3

 

 

 

THE MACERICH COMPANY

 

2003 CASH BONUS/RESTRICTED STOCK AND
STOCK UNIT

 

AWARD PROGRAM

 

Under the 2003 Equity Incentive Plan

 

 

THE MACERICH COMPANY

 

2003 CASH
BONUS/RESTRICTED STOCK AND STOCK UNIT AWARD PROGRAM

UNDER THE 2003
EQUITY INCENTIVE PLAN

 

 

 

TABLE OF CONTENTS

	
   

  	
   

  
	
  ARTICLE
  I TITLE, PURPOSE AND AUTHORIZED SHARES

  	
   

  
	
  ARTICLE
  II DEFINITIONS

  	
   

  
	
  ARTICLE III PARTICIPATION

  	
   

  
	
  ARTICLE
  IV RESTRICTED STOCK, STOCK UNIT OR CASH ELECTIONS

  	
   

  
	
  ARTICLE
  V RESTRICTED STOCK AWARDS

  	
   

  
	
  ARTICLE
  VI STOCK UNIT AWARDS

  	
   

  
	
  ARTICLE VII ADMINISTRATION

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
   

  
	
  EXHIBIT
  A THE MACERICH COMPANY IRREVOCABLE ELECTION AGREEMENT FORM

  	
   

  

 

 

 

THE
MACERICH COMPANY

2003 CASH BONUS/RESTRICTED STOCK AND
STOCK UNIT AWARD PROGRAM

UNDER THE 2003 EQUITY INCENTIVE PLAN

 

 

ARTICLE I

TITLE, PURPOSE AND AUTHORIZED SHARES

1.1          TITLE

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

1.2          PURPOSE

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

1.3          SHARES

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

ARTICLE II

DEFINITIONS

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

2.1          BONUS PAYMENT DATE means the date designated by the  Committee
(upon or after its decisions as to awards) on which the Cash Bonus is or would
otherwise be received by the Participant.

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

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

 

 

2.4          DIVIDEND
EQUIVALENT RIGHT
means the amount of cash dividends or other cash distributions paid by the
Company on that number of shares of Common Stock equal to the number of Stock
Units credited to a Participant’s Stock Unit Account as of the applicable
record date for the dividend or other distribution, which amount shall, at the
discretion of the Committee, either be paid on the applicable dividend payment
date directly to the Participant in cash or credited in the form of additional
Stock Units to the Stock Unit Account of the Participant, as provided in the
applicable Stock Unit Award Agreement.

2.5          EFFECTIVE
DATE means August
1, 2003.

2.6          ELIGIBLE
EMPLOYEE means
any officer or key employee of the Company or a Subsidiary who earns an annual
base salary of at least $100,000 and who otherwise qualifies as a member of a
select group of management or highly compensated employees, as described in
Sections 201, 301 and 401 of the Employee Retirement Income Security Act of
1974, as amended, who has been designated by the Committee as potentially
eligible to receive a Restricted Stock and/or Stock Unit Award under this
Program.

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

2.8          PLAN means The Macerich Company 2003 Equity
Incentive Plan.

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

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

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

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

2.13        STOCK UNIT means a non-voting unit of measurement
which is deemed solely for bookkeeping purposes to be equivalent to one
outstanding share of Common Stock (subject to adjustment) awarded to a
Participant pursuant to Article IV of the Plan.

2.14        STOCK UNIT AWARD means an award of Stock Units granted by
the Committee under the Plan based on the Conversion Amount.

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

 

2

 

2.16        STOCK UNIT ACCOUNT means the bookkeeping account maintained
by the Company on behalf of each Participant which is credited with Stock Units
calculated in accordance with Section 4.4.

2.17        YEAR means the applicable calendar year.

ARTICLE III

PARTICIPATION

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

ARTICLE IV

RESTRICTED STOCK, STOCK UNIT OR CASH ELECTIONS

4.1          TIME AND TYPES OF ELECTIONS

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

4.2          ELECTION PROCEDURES

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

 

3

 

4.3          DISTRIBUTION OF BENEFITS

(a)           TIME
AND MANNER OF DISTRIBUTION. A Participant shall be entitled to receive a number
of unrestricted shares of Restricted Stock, or to receive a number of shares of
Common Stock equal to the number of Stock Units allocated to his or her Stock
Unit Account, in accordance with the vesting schedule set forth in the
applicable Restricted Stock Award Agreement or Stock Unit Award Agreement.  Alternatively, the Committee may permit a
Participant to elect to receive a distribution of shares of Common Stock in an
amount equal to the number of Stock Units, if any, allocated to his or her
Stock Unit Account at such time and in such manner as set forth in the form of
agreement approved by the Committee.  If
the Committee so provides, a Participant may elect any of the distribution
commencement dates and methods of distribution (lump sum or annual
installments) set forth in the form of agreement approved by the Committee.

(b)                                 CHANGE IN TIME OR MANNER OF DISTRIBUTION
OF STOCK UNITS.

(1)           To the extent permitted by the
Committee and set forth in any applicable Distribution Election Agreement, a
Participant may change the manner of any distribution election from a lump sum
to annual installments (or vice versa) made with respect to Stock Units
credited under any Stock Unit Account 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 Stock Unit Account after benefits with respect to such
Stock Unit Account have commenced.  An
election made pursuant to this Section 4.3(b) shall not affect the date of the
commencement of benefits.

(2)           To
the extent permitted by the Committee and set forth in any applicable
Distribution Election Agreement, a Participant may elect to further defer the
commencement of any distribution to be made with respect to Stock Units
credited under any Stock Unit Account 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 12 months after such
election is filed with the Committee, (B) no such new election shall be
effective with respect to any Stock Unit Account after benefits with respect to
such Stock Unit Account shall have commenced, and (C) no more than three new
elections shall be valid as to any Stock Unit Account.  An election made pursuant to this Section
4.3(b)(2) shall not affect the manner of distribution (i.e., lump sum
versus installments), the terms of which shall be subject to Section 4.3(b)(1)
above.

4.4          NUMBER OF SHARES/STOCK UNITS

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

 

4

 

The multiple for bonuses paid in 2004 and until
changed by the Committee shall be 1.5. 
For example, assume that prior to September 30, 2003, a Participant
elects to receive 40% of any cash bonus in Restricted Stock or Stock Units and,
on March 31, 2004, the Company grants him a $40,000 cash bonus.  The market value of a share of Common Stock
on the Bonus Payment Date is $30.  The
Participant will receive $24,000 in cash and, at the election of the Committee,
800 shares of Restricted Stock or 800 Stock Units.

4.5          NO
FRACTIONAL SHARE INTERESTS

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

ARTICLE V

RESTRICTED STOCK AWARDS

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

ARTICLE VI

STOCK UNIT AWARDS

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

 

5

 

ARTICLE VII

ADMINISTRATION

7.1          RIGHTS
AND DUTIES.

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

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

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

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

7.2          CLAIMS
PROCEDURES.

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

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

(b)           The
Committee shall act upon claims as required and communicate a decision to the
claimant promptly and, in any event, not later than 90 days after the claim is
received by the Committee, unless special circumstances require an extension of
time for processing the claim.  If an
extension is required, notice of the extension shall be furnished to the
claimant prior to the end of the initial 90-day period, which notice shall
indicate the reasons for the extension and the expected decision date.  The extension shall not exceed 90 days.  The claim may be deemed by the claimant to
have been denied for purposes of further review described below in the event a
decision is not furnished to the claimant within the period described in the
preceding three sentences.  Every claim
for benefits which is denied shall be denied by written notice setting forth in
a manner calculated to be understood by the claimant (i) the specific reason or
reasons for the denial, (ii) specific reference to any provisions of this
Program on which denial is based, (iii) description of any additional material
or information necessary for the claimant to perfect his claim with an
explanation of why such material or information is

 

6

 

necessary, and (iv) an explanation of the procedure
for further review of the denial of the claim under this Program.

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

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

ARTICLE
VIII

MISCELLANEOUS

8.1          INCORPORATION
BY REFERENCE

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

8.2          AMENDMENT, TERMINATION AND SUSPENSION

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

8.3          TERM
OF THIS PROGRAM

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

 

7

 

8.4          NON-EXCLUSIVITY OF PROGRAM

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

8.5          RELATIONSHIP
TO EMPLOYMENT AGREEMENTS

In the case of any Participant who has an employment
agreement with the Company, the Conversion Amount reflected by a Restricted
Stock or Stock Unit Award shall not be, but any remaining amount paid as a Cash
Bonus shall be, considered a bonus paid in the applicable Year in which it is
paid, except as otherwise provided in any management continuity or other
agreement.  The consequences of a
termination of service, whether before or after a Change in Control Event, in
respect of any rights or benefits related to the Conversion Amount shall be
governed solely by the terms of the Restricted Stock or Stock Unit Award.

 

8

 

Exhibit
A

Election
Form

THE
MACERICH COMPANY

IRREVOCABLE ELECTION AGREEMENT

 

2003
CASH BONUS/RESTRICTED STOCK AND STOCK UNIT AWARD PROGRAM UNDER

THE MACERICH COMPANY 2003 EQUITY
INCENTIVE PLAN

 

IF DURING THE YEAR
          , THE COMPENSATION
COMMITTEE GRANTS A CASH BONUS TO ME UNDER THE PROGRAM AND IF THE COMPENSATION COMMITTEE
THEN EXPRESSLY AUTHORIZES ME TO RECEIVE ALL OR PART OF THE CASH BONUS IN THE
FORM OF A RESTRICTED STOCK OR STOCK UNIT AWARD (A “STOCK-BASED AWARD”):

I IRREVOCABLY ELECT TO TAKE
        % OF MY CASH BONUS IN THE FORM
OF A STOCK-BASED AWARD.  I UNDERSTAND
THE COMMITTEE HAS THE SOLE DISCRETION TO DETERMINE IF THE STOCK-BASED AWARD IS
IN THE FORM OF RESTRICTED STOCK OR STOCK UNITS.

I UNDERSTAND THAT:

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

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

•                  THIS ELECTION IS IRREVOCABLE AND MUST BE
FILED BY SEPTEMBER 30,
           WITH:

                                                RICHARD A. BAYER, GENERAL COUNSEL

                                                401 WILSHIRE BOULEVARD, SUITE 700

                                                SANTA MONICA, CALIFORNIA  90401

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

•                  THIS ELECTION IS SUBJECT TO THE TERMS OF
THE PROGRAM, THE PLAN (INCLUDING THE INDIVIDUAL SHARE AWARD LIMITS) AND THE
APPLICABLE STOCK-BASED AWARD AGREEMENT.

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

 

1

 

 

ACKNOWLEDGMENT AND AGREEMENT

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

 

 

	
   

  	
   

  	
   

  
	
  (Participant’s Signature)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Print Name)

  	
   

  	
  (Date)

  

 

 

2

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