THE MACERICH COMPANY
DEFERRED COMPENSATION PLAN FOR SENIOR EXECUTIVES
(As Amended and Restated as of January 1, 1997)
TABLE OF CONTENTS
Page
ARTICLE I
TITLE AND DEFINITIONS
1.1 - Title . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 - Definitions . . . . . . . . . . . . . . . . . . . . 1
ARTICLE II
PARTICIPATION
2.1 - Participation . . . . . . . . . . . . . . . . . . . 7
ARTICLE III
DEFERRAL ELECTIONS
3.1 - Elections to Defer Compensation . . . . . . . . . . 8
3.2 - Investment Elections. . . . . . . . . . . . . . . . 10
ARTICLE IV
PARTICIPANT ACCOUNTS
4.1 - Deferral Account. . . . . . . . . . . . . . . . . . 13
4.2 - Company Matching Account. . . . . . . . . . . . . . 14
4.3 - Distribution Subaccounts. . . . . . . . . . . . . . 15
ARTICLE V
VESTING
5.1 - Deferral Account. . . . . . . . . . . . . . . . . . 17
5.2 - Company Matching Account. . . . . . . . . . . . . . 17
ARTICLE VI
DISTRIBUTIONS
6.1 - Time and Form of Distribution . . . . . . . . . . . 18
6.2 - Small Benefits. . . . . . . . . . . . . . . . . . . 20
6.3 - Change in Election of Time and Form of Election . . 20
ARTICLE VII
ADJUSTMENT OF PAYMENTS
7.1 - Hardship Distribution . . . . . . . . . . . . . . . 21
7.2 - Acceleration or Deferral of Benefit . . . . . . . . 22
ARTICLE VIII
ADMINISTRATION
8.1 - Members . . . . . . . . . . . . . . . . . . . . . . 23
8.2 - Committee Action. . . . . . . . . . . . . . . . . . 23
8.3 - Powers and Duties of the Committee. . . . . . . . . 24
8.4 - Construction and Interpretation . . . . . . . . . . 25
8.5 - Information . . . . . . . . . . . . . . . . . . . . 26
8.6 - Compensation, Expenses and Indemnity. . . . . . . . 26
8.7 - Quarterly Statements. . . . . . . . . . . . . . . . 27
ARTICLE IX
MISCELLANEOUS
9.1 - Unsecured General Creditor. . . . . . . . . . . . . 28
9.2 - Restriction Against Assignment. . . . . . . . . . . 28
9.3 - Withholding . . . . . . . . . . . . . . . . . . . . 29
9.4 - Amendment, Modification, Suspension or Termina-
tion . . . . . . . . . . . . . . . . . . . . . . . . 30
9.5 - Governing Law . . . . . . . . . . . . . . . . . . . 30
9.6 - Receipt or Release. . . . . . . . . . . . . . . . . 30
9.7 - Payments on Behalf of Persons under Incapacity. . . 31
9.8 - Headings, etc. Not Part of Agreement. . . . . . . . 31
9.9 - Limitation on Participants' Rights. . . . . . . . . 31
ARTICLE X
CLAIMS PROCEDURE
10.1 - Claims Procedure . . . . . . . . . . . . . . . . . 32
THE MACERICH COMPANY
DEFERRED COMPENSATION PLAN FOR SENIOR EXECUTIVES
(As Amended and Restated Effective as of January 1, 1997)
THE MACERICH COMPANY
DEFERRED COMPENSATION PLAN FOR SENIOR EXECUTIVES
(As Amended and Restated Effective as of January 1, 1997)
This deferred compensation plan (the "Plan") was
originally adopted effective April 1, 1994, by THE MACERICH
COMPANY (the "Company") to provide supplemental retirement
income benefits through deferrals of salary and bonuses. The
Plan is hereby amended and restated in its entirety as set
forth herein, effective as of January 1, 1997.
ARTICLE I
TITLE AND DEFINITIONS
1.1 - Title.
This Plan shall be known as The Macerich Company
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 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 Benefi-
ciary. If there is no surviving spouse to receive any
benefits payable in accordance with the preceding sentence,
the duly appointed and currently acting personal representa-
tive 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 Partici-
pant'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 custo-
dial 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 8.1 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 and Macerich Management Company.
"Company Matching Account" shall mean the bookkeep-
ing 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. Notwithstanding the foregoing, for
the Plan Year beginning January 1, 1997, the Company Matching
Amount shall be 25% of the amount of Compensation deferred
under the Plan for the 1997 Plan Year up to a maximum of 5% of
all of the Participant's Compensation for such 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.
"Distribution Subaccounts" shall mean the sub-
accounts of a Participant's Deferral Account and Company
Matching Account relating to Plan Years beginning before
January 1, 1997 established to separately account for deferred
Compensation and Company Matching Accounts (and earnings or
losses thereon) which were subject to different distribution
elections. Effective January 1, 1997, Distribution Subaccoun-
ts shall cease to exist, and the amounts formerly allocated
thereto shall be reallocated and distributed as set forth in
Section 4.3.
"Earnings Rate" shall mean, for each Fund, an amount
equal to the net rate of gain or loss on the assets of such
Fund during a calendar month.
"Effective Date" of this Restatement shall mean
January 1, 1997.
"Eligible Employee" for any Plan Year shall mean
each key executive of the Company designated by the Committee
whose annualized Salary as of September 1 of the previous Plan
Year (or, for employees first hired by the Company after
September 1 but prior to December 31 of the previous Plan
Year, annualized Salary as of the date of hire) is equal to or
greater than $80,000.
"Fund" or "Funds" shall mean one or more of the
investment funds designated in Section 3.2(a).
"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 termi-
nates employment or dies.
"Plan" shall mean The Macerich Company 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; provided, however,
that the first Plan Year was a short Plan Year beginning on
April 1, 1994, and ending on December 31, 1994.
"Salary" shall mean the Participant's base pay 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.
ARTICLE II
PARTICIPATION
2.1 - Participation.
Participation in the Plan is voluntary. Each
Eligible Employee who was a Participant in the Plan immediate-
ly before the Effective Date shall continue as a Participant.
Any other 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). The Committee shall notify
each Eligible Employee of his or her eligibility to partici-
pate 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 and/or Bonus that he or she elects to defer.
(b) Amount of Deferrals. The amount of Compensa-
tion which an Eligible Employee may elect to defer is as
follows:
(1) Any percentage of Salary up to 50%, which
shall be deferred ratably over the Plan Year;
and/or
(2) Any percentage of Bonus, if any, up to 100%
minus the maximum amount of the Bonus which
the Eligible Employee could have deferred
under any qualified cash or deferred arrange-
ments 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 paid
during such Plan Year. Notwithstanding the foregoing, an
Eligible Employee whose initial employment with the Company
commences 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 his or
her employment commencement date. Such election shall be
effective with respect to Salary and/or Bonus, as the case may
be, earned after the filing of such election.
(d) Irrevocability. Any election filed pursuant to
this Section 3.1 shall be irrevocable for the Plan Year to
which such election applies.
3.2 - Investment Elections.
(a) At the time of making the first deferral
election described in Section 3.1 which will be effective on
or after January 1, 1997, the Participant shall designate, on
a form provided 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 January 1, 1997, the Funds
shall be the following:
1. Northwestern Mutual Life Guaranteed Interest
Fund
2. Northwestern Mutual Life Money Market
Portfolio
3. Northwestern Mutual Life Select Bond Portfolio
4. Northwestern Mutual Life High Yield Bond
Portfolio
5. Northwestern Mutual Life Balanced Portfolio
6. Northwestern Mutual Life Index 500 Stock
Portfolio
7. Northwestern Mutual Life Growth & Income Stock
Portfolio
8. Northwestern Mutual Life Growth Stock
Portfolio
9. Northwestern Mutual Life International Equity
Portfolio
10. Northwestern Mutual Life Aggressive Growth
Stock Portfolio
(b) Each Participant who has a balance credited to
his or her Deferral Account or Company Matching Account on
December 31, 1996 may file a written election with the
Committee no later than December 15, 1996 (or such later date
that the Committee determines, but in no event later than
December 31, 1996), specifying the Fund or Funds described in
subsection (a) above that such balances will be deemed to be
invested in as of January 1, 1997 for purposes of determining
the amount of earnings or losses to be credited to the
Accounts after such date. Any amounts in a Participant's
Deferral Account or Company Matching Account on December 31,
1996 with respect to which the Participant does not file an
election at the time specified in the immediately preceding
sentence shall be deemed to be invested in the Northwestern
Mutual Life Money Market Portfolio (the "Money Market Portfo-
lio") unless and until a different election is made pursuant
to Section 3.2(c).
(c) 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 which shall be deemed to be invested in one
or more of the Funds. A Participant may not choose more than
five of the Funds. Effective as of the end of any calendar
month, a Participant may change the designation made under
this Section 3.2 by filing an election, on a form provided by
the Committee, by the 25th day of such month. If a Partici-
pant fails to elect a Fund under this Section 3.2, he or she
shall be deemed to have elected the Money Market Portfolio.
(d) 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.
(e) 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 elec-
tion. 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 Commit-
tee 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 Commit-
tee 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 last day of each month, each invest-
ment 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 last day of the
preceding month by the Earnings Rate for the correspond-
ing Fund.
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 corre-
sponding 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 last day of each month, each invest-
ment 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 last
day of the preceding month by the Earnings Rate for the
corresponding Fund selected by the Company pursuant to
Section 3.2(d).
4.3 - Distribution Subaccounts.
Prior to January 1, 1997, each Participant's
Deferral Account and each Participant's Company Matching
Account was divided into Distribution Subaccounts as necessary
to account for the amounts payable under different distribu-
tion options elected by a Participant with respect to compen-
sation deferred for Plan Years beginning before January 1,
1997. Effective January 1, 1997, such Distribution Sub-
accounts shall cease to exist, and the amounts credited to
such Distribution Subaccounts shall be allocated to the
investment subaccounts of each Participant in accordance with
each Participant's investment elections under Section 3.2(b)
or 3.2(c). Notwithstanding any distribution options elected
by a Participant with respect to such Distribution Subaccount-
s, distribution of the amounts so reallocated shall be made in
accordance with the provisions of Article VI as in effect on
or after January 1, 1997.
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.
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. Notwithstand-
ing the foregoing, a Participant may elect one of the follow-
ing optional forms of distribution, which election shall not
be effective until one year after such election is filed in
writing with the Committee:
(1) A cash lump sum payable on a specified date
either before or after the Participant's Payment Eligi-
bility 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 payments on specified
dates, not to exceed ten payments, each payment consti-
tuting a specified percentage of the total amount cred-
ited to a Participant's Deferral Account and Company
Matching Account as of the date of each such payment; or
(5) Any other method selected by the Participant
which is approved by the Committee in its sole and
absolute discretion.
(b) The Participant's Accounts shall continue to be
credited monthly 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.
(c) 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 or Macerich Management Company.
(d) 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 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).
6.3 - Change in Election of Time and Form of Election.
A Participant may change his or her distribution
election under Section 6.1 by filing a new election with the
Committee; provided, however, that no such election shall be
effective until one year after such election is filed in
writing with the Committee.
ARTICLE VII
ADJUSTMENT OF PAYMENTS
7.1 - Hardship Distribution.
(a) Upon written request of a Participant, the
Committee may, in its sole discretion, make a lump sum payment
to a Participant and/or accelerate the payment of installment
payments due to the Participant in order to meet a severe
financial hardship to the Participant resulting from (1) a
sudden and unexpected illness or accident of the Participant
or a dependent of the Participant, (2) loss of the Participan-
t's property due to casualty, or (3) other similar extraordi-
nary 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 reimburse-
ment or compensation by insurance or otherwise, (2) by
liquidation of the Participant's assets, to the extent the
liquidation of such assets would not itself cause severe
financial hardship, or (3) by cessation of deferrals under the
Plan effective for the next Plan Year. The amount of any
hardship lump sum payment and/or accelerated amount under this
Section 7.1 shall not exceed the lesser of (1) the amount
required to meet the immediate financial need created by such
hardship or (2) the entire amounts credited to the Participan-
t's Accounts. The amount of any such payments shall be
deducted from the amount credited to the Participant's
Accounts, pro rata from among each of the investment subaccou-
nts 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 Parti-
cipant's distribution election.
7.2 - Acceleration or Deferral of Benefit.
Upon the petition of any Participant or Beneficiary,
the Committee may, in its sole discretion, accelerate or defer
the payment of any benefit payable to such Participant or
Beneficiary, the amount of any such acceleration or deferred
benefit to be subject to such actuarial adjustment as the
Committee may determine in its sole discretion.
ARTICLE VIII
ADMINISTRATION
8.1 - 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.
8.2 - 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 permit-
ted 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.
8.3 - 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 administra-
tion of the Plan, and shall have all powers necessary to
accomplish its purposes, including, but not by way of limita-
tion, 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
calendar month 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 govern-
mental agencies as shall be required by law;
(7) To make and publish such rules for the
regulation of the Plan and procedures for the administra-
tion 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.
8.4 - 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 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.
8.5 - 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.
8.6 - 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 hereun-
der. 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 other-
wise, as such indemnities are permitted under state law.
8.7 - 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 IX
MISCELLANEOUS
9.1 - 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 Beneficia-
ries shall be no greater than those of unsecured general
creditors.
9.2 - 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 Partici-
pant'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 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, volun-
tarily 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.
9.3 - 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 compen-
sation in excess of the amount required to be withheld for
federal, state or local tax purposes, the Company shall have
the right to reduce any other payments to the Participant by
the amount sufficient to provide the amount of said taxes.
9.4 - Amendment, Modification, Suspension or Termination.
The Company may amend, modify, suspend or terminate
the Plan in whole or in part, except that 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.
The Company reserves the right to change the Funds as de-
scribed in Section 3.2(d).
9.5 - Governing Law.
To the extent not governed by federal law, this Plan
shall be construed, governed and administered in accordance
with the laws of the State of California.
9.6 - 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.
9.7 - 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 Commit-
tee, 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 determina-
tion shall constitute a full release and discharge of the
Committee and the Company.
9.8 - 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.
9.9 - 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 X
CLAIMS PROCEDURE
10.1 - 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.
(b) Claim Decision. Upon receipt of a claim, the
Committee shall advise the Claimant that a reply will be
forthcoming within ninety (90) days and shall, in fact,
deliver such reply within such period. The Committee may,
however, extend the reply period for an additional ninety (90)
days for special circumstances. If the claim is denied in
whole or in part, the Committee shall inform the Claimant in
writing, using language calculated to be understood by the
Claimant, setting forth: (i) the specified reason or reasons
for such denial, (ii) the specific reference to pertinent
provisions of this Plan on which such denial is based, (iii)
a description of any additional material or information
necessary for the Claimant to perfect his or her claim and an
explanation why such material or such information is neces-
sary, (iv) appropriate information as to the steps to be taken
if the Claimant wishes to submit the claim for review, and (v)
the time limits for requesting a review under subsection (c)
below.
(c) Request for Review. Within sixty (60) days after
the receipt by the Claimant of the written opinion described
above, the Claimant may request in writing that the Committee
review its determination. Such request must be addressed to
the Committee at the Company's then principal place of
business. The Claimant or his or her duly authorized repre-
sentative may, but need not, review the pertinent documents
and submit issues and comments in writing for consideration by
the Committee. If the Claimant does not request a review
within such sixty (60) day period, he or she shall be barred
and estopped from challenging the Company's determination.
(d) Review of Decision. Within sixty (60) days after
the Committee's receipt of a request for review, after
considering all materials presented by the Claimant, the
Committee will inform the Claimant in writing, in a manner
calculated to be understood by the Claimant, of its decision
setting forth the specific reasons for the decision and
containing specific references to the pertinent provisions of
this Plan on which the decision is based. If special circum-
stances require that the sixty (60) day time period be
extended, the Committee will so notify the Claimant and will
render the decision as soon as possible, but no later than one
hundred twenty (120) days after receipt of the request for
review.
IN WITNESS WHEREOF, the Company has caused this
document to be executed by its duly authorized officers on
this 11th day of December, 1997.
THE MACERICH COMPANY
By /s/ Richard A. Bayer
___________________________
By /s/ Thomas E. O'Hern
__________________________