Document:

exv10w1

Exhibit 10.1

SECOND AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND

SECOND AMENDED AND RESTATED GUARANTY OF PAYMENT OF DEBT

     This SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT AND SECOND AMENDED AND
RESTATED GUARANTY OF PAYMENT OF DEBT (this “Second Amendment”) is made and entered into this
24th day of August, 2010 (the “Effective Date”), by and among FOREST CITY RENTAL
PROPERTIES CORPORATION, an Ohio corporation (the “Borrower”), FOREST CITY ENTERPRISES, INC., an
Ohio corporation (the “Parent” or the “Guarantor”), KEYBANK NATIONAL ASSOCIATION, as Administrative
Agent (the “Agent”), PNC BANK NATIONAL ASSOCIATION, as Syndication Agent (the “Syndication Agent”
and, together with the Agent, the “Agents”), BANK OF AMERICA, N.A., as Documentation Agent, and the
banks party to the Credit Agreement (as hereinafter defined) as of the date hereof (collectively,
the “Banks” and individually a “Bank”). Capitalized terms not otherwise defined herein shall have
the respective meanings attributed to them in the Credit Agreement, as hereinafter defined and as
amended by this Second Amendment.

W I T N E S S E T H:

     WHEREAS, the Borrower, the Banks and the Agents have previously entered into that certain
Second Amended and Restated Credit Agreement, dated as of January 29, 2010, as amended by that
certain First Amendment to Second Amended and Restated Credit Agreement and Second Amended and
Restated Guaranty of Payment of Debt, dated as of March 4, 2010 (as so amended, the “Credit
Agreement”);

     WHEREAS, in connection with the Credit Agreement, the Parent made and entered into that
certain Second Amended and Restated Guaranty of Payment of Debt in favor of the Agents and the
Banks, dated as of January 29, 2010, as amended by that certain First Amendment to Second Amended
and Restated Credit Agreement and Second Amended and Restated Guaranty of Payment of Debt, dated as
of March 4, 2010 (as so amended, the “Guaranty”);

     WHEREAS, the Borrower, the Parent, the Banks and the Agents desire to make certain amendments
to the Guaranty and the Credit Agreement to modify certain provisions thereof, subject to the terms
and conditions contained herein; and

     WHEREAS, the Banks and the Agents are willing to enter into this Second Amendment, on the
terms and conditions set forth herein, and such terms and conditions are agreeable to the Borrower
and to the Parent;

     NOW, THEREFORE, for and in consideration of the sum of Ten and No/100 Dollars ($10.00), the
mutual covenants and promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, it is mutually agreed as follows:

     1. AMENDMENTS TO THE CREDIT AGREEMENT. The Credit Agreement shall be amended as
follows:

 

 

          (a) Amendments to Definitions. The definitions of “80% FCCC Loans”, “Preferred
Equity”, “Preferred Equity Designation”, “Preferred Equity Documents” and “Preferred Equity
Exchange” set forth in Article I of the Credit Agreement are hereby deleted in their entirety and
following new definitions are inserted in Article I of the Credit Agreement in the appropriate
alphabetical order:

     “Additional Preferred Equity” shall mean any Additional Preferred
Equity (Pre-Approved) and, to the extent Agent has given its prior written
approval of the terms and conditions applicable thereto, any Additional
Preferred Equity (Agent Approved), which may be issued by the Parent after
the Second Amendment Effective Date, subject to the terms of the Guaranty,
and the terms and conditions of which are set forth in the applicable
Additional Preferred Equity Documents.

     “Additional Preferred Equity (Agent Approved)” shall mean any
Additional Preferred Equity, other than any Additional Preferred Equity
(Pre-Approved), the terms and conditions of which Agent has given its prior
written approval, including with respect to any amendments or modifications
thereto, as required by Section 9.24 of the Guaranty.

     “Additional Preferred Equity (Pre-Approved)” shall mean (i) any
additional preferred equity issued by the Parent after the Second Amendment
Effective Date pursuant to the March 2010 Preferred Equity Documents and
(ii) any other preferred equity issued by the Parent after the Second
Amendment Effective Date so long as such preferred equity is governed by
Additional Preferred Equity Documents which contain terms and conditions
that comply with the requirements of the Loan Documents and (1) does not
have a maturity, repayment or redemption date or require the establishment
of a “sinking fund”, or contain terms or conditions which effectively
establish a maturity, repayment or redemption date, including by triggering
or imposing terms and conditions that would incentivize the Parent to repay
or redeem, or establish a “sinking fund” for the repayment or redemption of,
such preferred equity, or any amounts in respect thereof, including, without
limitation, as a result of an increase in the rate of Dividends payable with
respect to such preferred equity, (2) does not provide for any collateral
securing such preferred equity, (3) does not obligate the Parent to pay any
Dividends or other distributions on or with respect to such preferred equity
other than in priority to the payment of Dividends or other distributions
that may be paid to holders of the common equity of the Parent on or with
respect to such common equity, (4) does not provide for any voting rights
(including the ability to elect or nominate board members) of the holders of
such preferred equity that are additional to or more favorable than those
voting rights set forth in the March 2010 Preferred Equity Documents, (5)
does not contain any right of holders of such preferred equity to “put” to
the Parent or convert such preferred equity in exchange for any cash (other
than for fractional shares in connection with the exercise of conversion
rights by the holders of such preferred equity) or in-kind payment (or any
combination thereof) or contain any terms or conditions that would have the
effect of giving

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holders thereof any such right, or otherwise require the Parent to,
redeem such preferred equity, other than a right to convert such preferred
equity to common equity of the Parent or redemption rights substantially
equivalent to those contained in the March 2010 Preferred Equity Documents
and (6) does not contain any covenants in addition to or less favorable to
the Parent than those contained in the March 2010 Preferred Equity Documents
(other than, subject to clauses (1) through (5) of this definition, with
respect to notice periods, mechanisms for converting such preferred equity
to common equity of the Parent, and the rate at which Dividends are accrued
and/or paid), or any defaults.

     “Additional Preferred Equity Designation” shall mean each preferred
stock designation or similar document for Additional Preferred Equity
attached to a Certificate of Amendment by Directors to the Amended Articles
of Incorporation of the Parent.

     “Additional Preferred Equity Documents” shall mean (i) as to any
Additional Preferred Equity other than any Additional Preferred Equity of
the type described in clause (i) of the term “Additional Preferred Equity
(Pre-Approved)”, each Additional Preferred Equity Designation, together with
any other documents, instruments or agreements governing the terms and
conditions applicable to such Additional Preferred Equity, as the same may
be amended or modified from time to time in accordance with the terms of
this Agreement and Section 9.24 of the Guaranty and (ii) as to any
Additional Preferred Equity of the type described in clause (i) of the term
“Additional Preferred Equity (Pre-Approved)”, the March 2010 Preferred
Equity Documents relating to such Additional Preferred Equity.

     “Additional Preferred Equity Exchange” shall mean each exchange of any
of the Senior Notes (and simultaneous Retirement thereof) in connection with
each issuance by the Parent of any Additional Preferred Equity.

     “80% FCCC/FCLC Loans” shall have the meaning set forth in Section
8.15(b)(viii) hereof.

     “FCLC” shall mean Forest City Loan Corporation, an Ohio corporation and
a wholly-owned Subsidiary of the Borrower.

     “March 2010 Preferred Equity” shall mean (i) the Two Hundred Twenty
Million Dollars ($220,000,000) of Series A Cumulative Perpetual Convertible
Preferred Stock issued on or about the First Amendment Effective Date, the
terms of which are set forth in the March 2010 Preferred Equity Documents
and (ii) any additional preferred equity of the Parent issued pursuant to
the March 2010 Preferred Equity Documents, to the extent permitted under the
March 2010 Preferred Equity Documents and the Loan Documents.

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     “March 2010 Preferred Equity Designation” shall mean the Preferred
Stock Designation of Series A Cumulative Perpetual Convertible Preferred
Stock attached to the Certificate of Amendment by Directors to the Amended
Articles of Incorporation of the Parent dated March 4, 2010.

     “March 2010 Preferred Equity Documents” shall mean the March 2010
Preferred Equity Designation, together with any other documents, instruments
or agreements governing the terms and conditions applicable to the March
2010 Preferred Equity, as the same may be amended or modified from time to
time in accordance with the terms of the First Amendment.

     “March 2010 Preferred Equity Exchange” shall mean the exchange on or
about the First Amendment Effective Date of the 2003 Senior Notes, the 2005
Senior Notes and/or the 2006 Puttable Senior Notes (and simultaneous
Retirement thereof) in connection with the issuance by the Parent of the
March 2010 Preferred Equity.

     “Preferred Equity” shall mean (i) the March 2010 Preferred Equity and
(ii) the Additional Preferred Equity.

     “Preferred Equity Exchange” shall mean (i) the March 2010 Preferred
Equity Exchange and (ii) each Additional Preferred Equity Exchange.

     “Second Amendment” shall mean that certain Second Amendment to Second
Amended and Restated Credit Agreement and Second Amended and Restated
Guaranty of Payment of Debt dated August 24, 2010 by and among Borrower,
Parent, Agent and the Banks party thereto.

     “Second Amendment Effective Date” shall mean the “Effective Date” as
defined in the Second Amendment.

          (b) Amendment to Section 2.02(b). Section 2.02(b) of the Credit Agreement shall be
amended by deleting the last sentence of such Section in its entirety and replacing it with the
following:

     “Furthermore, the Reserved Commitment shall also be reduced, on a
dollar-for-dollar basis, to the extent any such Indebtedness is (i)
refinanced or extended with the Agent’s approval (and/or, in connection with
any such extension, the approval of the Required Banks as required by the
Guaranty) in accordance with the terms and conditions set forth in this
Agreement and the Guaranty or (ii) Retired pursuant to the March 2010
Preferred Equity Exchange or any Additional Preferred Equity Exchange.”

          (c) Amendment to Section 7.05(e). Section 7.05(e) of the Credit Agreement shall be
amended by deleting subsection (i) of such Section in its entirety and replacing it with the
following new subsection (i):

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     “(i) a report setting forth (w) the principal amounts of all
Indebtedness originated or acquired by FCCC and/or FCLC that is outstanding
to non-affiliated third parties, (x) a statement of the aggregate notional
amount of all Total Rate of Return Swaps on which FCCC and/or FCLC is
obligated as of the last day of such fiscal quarter, the aggregate amount of
the cash risk to FCCC and/or FCLC in respect of such Total Rate of Return
Swaps as of the last day of such fiscal quarter and, if secured, the asset
or assets securing such Total Rate of Return Swaps, (y) information, in
sufficient detail, demonstrating whether there has been compliance by the
Subsidiaries of the Borrower with the limitations set forth in Section 8.15
hereof with respect to the pledging of second assets permitted under such
Section 8.15 to secure Permitted Debt and (z) information, in sufficient
detail, demonstrating whether there has been compliance by FCCC and FCLC
with the limitations set forth in Section 8.15 hereof with respect to the
pledging of additional collateral permitted by such Section 8.15;”

          (d) Amendment to Section 8.04. Section 8.04 of the Credit Agreement shall be amended
by deleting subsection (g) of such Section in its entirety and replacing it with the following new
subsection (g):

     “(g) Indebtedness of FCCC and FCLC in favor of non-affiliated third
parties, including, without limitation, Total Rate of Return Swaps, up to a
maximum principal amount outstanding at any time of Two Hundred Million
Dollars ($200,000,000) in the aggregate, to be used solely for the purposes
of (i) originating loans to non-affiliated third parties (subject to the
limitations set forth in Section 8.06(e) hereof) and Affiliates of FCCC
and/or FCLC, (ii) acquiring loans, promissory notes and bonds issued by
non-affiliated third parties (subject to the limitations set forth in
Section 8.06(e) hereof) and (iii) entering into Total Rate of Return Swaps;”

          (e) Amendment to Section 8.05. Section 8.05 of the Credit Agreement shall be amended
by deleting subsections (l) and (o) of such Section in their entirety and replacing them with the
following new subsections (l) and (o):

     “(l) subject to Section 8.15 hereof, any Lien granted by FCCC or FCLC
to secure Indebtedness permitted by Section 8.04(g) hereof;”

     “(o) any sale, assignment or other transfer by FCCC or FCLC of all or
any portion of the loans, bonds, promissory notes or other evidences of
Indebtedness originated or acquired by FCCC or FCLC, as applicable, in the
ordinary course of its business.”

          (f) Amendment to Section 8.06. Section 8.06 of the Credit Agreement shall be amended
by deleting subsection (e) of such Section in its entirety and replacing it with the following new
subsection (e):

     “(e) any Indebtedness, whether secured or unsecured, issued by
non-affiliated third parties to FCCC or FCLC (or such other Subsidiary or

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Subsidiaries of the Borrower as the Agent may approve in writing in its
reasonable discretion) as lender, up to a maximum principal amount
outstanding at any time of Two Hundred Million Dollars ($200,000,000) in the
aggregate. For purposes of calculating the maximum principal amount of such
Indebtedness outstanding on the relevant date of calculation, the following
Indebtedness that is outstanding on such date of calculation will not be
included in such calculation: (i) any Indebtedness that FCCC or FCLC (or any
such other Subsidiary of the Borrower so approved in writing by the Agent)
has assigned to non-affiliated third parties, (ii) any fully-funded,
non-revolving Indebtedness that FCCC or FCLC (or any such other Subsidiary
of the Borrower so approved in writing by the Agent) has participated out to
non-affiliated third parties, but only to the extent such Indebtedness has
been insured by the Federal Housing Administration (or any successor to such
agency), and (iii) the aggregate principal amount of all loans made by FCCC
or FCLC (or any such other Subsidiary of the Borrower so approved in writing
by the Agent) to non-affiliated third parties as permitted by Section
8.06(a) hereof.”

          (g) Amendment to Section 8.15(b). Section 8.15(b) of the Credit Agreement shall be
amended by deleting clauses (iii), (vi), (vii) and (viii) of such Section in their entirety and
inserting the following new clauses (iii), (vi), (vii) and (viii):

     “(iii) with respect to Hedge Agreements and Total Rate of Return Swaps
entered into by FCCC or FCLC and permitted by this Agreement or the
Guaranty, the related documentation may provide that an Event of Default
will constitute an event of default under such Hedge Agreement or Total Rate
of Return Swap, as applicable, provided that such Hedge Agreement or
Total Rate of Return Swap, as applicable, also provides that the
counterparty may not terminate or exercise any remedy under such Hedge
Agreement or Total Rate of Return Swap, as applicable, on account of any
Event of Default unless (1) the Banks have provided a written notice of such
Event of Default to the Borrower, (2) all applicable cure periods have
lapsed without such Event of Default being cured and (3) the Banks may
accelerate the maturity of the Debt on the basis of such Event of Default;”

     “(vi) to the extent Permitted Debt of a Subsidiary may be secured under
Section 8.05 hereof, any Subsidiary of the Borrower (other than FCCC or
FCLC) may provide a second asset (including, without limitation, Cash,
letters of credit or unencumbered real property) to secure Permitted Debt of
such Subsidiary or one other Subsidiary, so long as (A) the value of such
second asset (excluding Cash and letters of credit) does not exceed Ten
Million Dollars ($10,000,000) and (B) the aggregate value of all such second
assets (excluding Cash and letters of credit) pledged by all Subsidiaries
(other than FCCC or FCLC) to secure Permitted Debt does not exceed Forty
Million Dollars ($40,000,000);

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     (vii) FCCC and FCLC may Cross-Collateralize Indebtedness incurred under
one or more Total Rate of Return Swaps with its own Indebtedness (but not
Indebtedness of the other); and

     (viii) FCCC and FCLC may provide Cash, letters of credit or mortgage
loans made by FCCC or FCLC to any Subsidiary of the Borrower
(provided, that any such mortgage loan shall not exceed eighty
percent (80%) of the value of the applicable mortgaged property, hereinafter
referred to as “80% FCCC/FCLC Loans”), as additional collateral to secure
Permitted Debt owed by the Borrower or any of its Subsidiaries (other than
FCCC or FCLC), so long as (A) such Permitted Debt may be secured under
Section 8.05 hereof, (B) the aggregate amount of all 80% FCCC/FCLC Loans so
provided by FCCC and FCLC in any single transaction (or series of related
transactions) does not exceed Twenty-Six Million Dollars ($26,000,000) and
(C) as of any date of determination, the aggregate amount of all 80%
FCCC/FCLC Loans provided by FCCC and FCLC in all such transactions
outstanding at such date does not exceed One Hundred Twenty Million Dollars
($120,000,000) minus the aggregate value of all unencumbered real property
pledged by all Subsidiaries (other than FCCC and FCLC) under Section
8.15(b)(vi) hereof, as of such date.”

          (h) Amendment to Section 8.17. Section 8.17 of the Credit Agreement shall be amended
by deleting such Section in its entirety and replacing it with the following new Section 8.17:

     “SECTION 8.17. CHANGES IN BUSINESS. The Borrower will not, and
will not permit any of its Subsidiaries to, materially alter the character
of the business of the Borrower and its Subsidiaries from that conducted on
the Restatement Effective Date and, in the case of FCLC, will not permit
FCLC to conduct any business other than business similar to that conducted
by FCCC on the Restatement Effective Date.”

     2. AMENDMENTS TO THE GUARANTY. The Guaranty shall be amended as follows:

          (a) Amendment to Definitions. The definition of “Preferred Equity Hedge Transaction”
set forth in Section 1 of the Guaranty is hereby deleted in its entirety and the following new
definitions are inserted in Section 1 of the Guaranty in the appropriate alphabetical order:

     “Additional Preferred Equity Hedge Transaction” shall mean the
unsecured hedge transaction that may be entered into by the Guarantor in
order to increase the effective conversion price at which any Additional
Preferred Equity which is convertible preferred is convertible into common
shares of the Guarantor; provided (i) the cost of obtaining such
hedge transaction with respect to any Additional Preferred Equity which is
convertible preferred does not exceed fifteen percent (15%) of the amount of
the corresponding Additional Preferred Equity issued and (ii) such cost

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shall have been fully paid at the time such hedge transaction is
consummated and the Guarantor shall have no continuing liability thereunder.

     “March 2010 Preferred Equity Hedge Transaction” shall mean the hedge
transaction that was entered into by the Guarantor in order to increase the
effective conversion price at which the “March 2010 Preferred Equity” of the
type referred to in clause (i) of such term is convertible into common
shares of the Guarantor; provided the cost of obtaining such hedge
transaction did not exceed Twenty Million Dollars ($20,000,000).”

          (b) Amendment to Section 9.7. Section 9.7 of the Guaranty shall be amended by
renumbering subsections (m) and (n) of such Section as subsections (n) and (o), and inserting the
following new Section 9.7(m):

     “(m) within sixty (60) days (or sixty-five (65) days as long as the
Guarantor shall not have reported an Event of Default to the Securities and
Exchange Commission during such fiscal period on its most recent filing with
the Securities and Exchange Commission) after the end of each of the first
three (3) quarter-annual fiscal periods of each fiscal year of the Guarantor
and within one hundred five (105) days (or one hundred ten (110) days so
long as the Guarantor shall not have reported an Event of Default to the
Securities and Exchange Commission) after the end of each fiscal year of the
Guarantor, to the extent Borrower desires to utilize the provisions of
Section 9.8(g) hereof, a summary of any non-recourse mortgage Indebtedness
of the Borrower and its Subsidiaries Retired, the amount paid to Retire such
Indebtedness (whether at a discount or at par), the date such payment
occurred, the date at which the provisions of Section 9.8(g) hereof shall no
longer afford a refinancing of the properties secured by such non-recourse
mortgage Indebtedness the benefits of Section 9.8(g) hereof, and the amount
of any financing placed on such properties and the dates such refinancing
occurred.”

          (c) Amendment to Section 9.8. Section 9.8 of the Guaranty shall be amended by
deleting subsection (f) of such Section in its entirety and inserting the following new subsections
(f) and (g):

     “(f) Notwithstanding the foregoing, the Guarantor may utilize Cash
Sources for purposes of (i) making cash payments to holders of the March
2010 Preferred Equity and any Additional Preferred Equity which is
convertible preferred in lieu of issuing fractional shares of its Class A
Common Stock, to the extent such cash payments are permitted by Section
9.13(a) hereof, (ii) purchasing shares of Class A Common Stock, to the
extent permitted by Section 9.13(a) hereof, (iii) paying Dividends on the
Preferred Equity to the extent permitted by Section 9.13(c) hereof and (iv)
paying the costs and expenses of entering into the March 2010 Preferred
Equity Hedge Transaction and any Additional Preferred Equity Hedge
Transaction (provided that the costs and expenses of entering into the

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March 2010 Preferred Equity Hedge Transaction and any Additional
Preferred Equity Hedge Transaction shall be paid out of Cash Sources
previously allocated to the Discretionary Bucket, and the amount available
under the Discretionary Bucket shall be reduced accordingly).

     (g) For the avoidance of doubt, in the event that non-recourse mortgage
Indebtedness of the Borrower and its Subsidiaries is Retired as permitted in
Section 9.8(a)(ii) hereof, and no new non-recourse mortgage Indebtedness of
Borrower and its Subsidiaries is obtained with respect to the properties
securing such non-recourse mortgage Indebtedness so Retired at the same
time, then provided that Borrower or the applicable Subsidiary obtains a new
non-recourse mortgage loan secured by the same assets securing the
non-recourse mortgage Indebtedness so Retired, or enters into another
transaction relating to the assets previously securing the non-recourse
mortgage Indebtedness so Retired, in either case that results in new
External Capital, on or before the date that is one hundred eighty (180)
days after the date of Retirement of the original non-recourse mortgage
Indebtedness, then the amount of proceeds of such replacement financing or
other transaction shall only be considered External Capital to the extent
the net proceeds thereof exceed the amount actually paid to Retire the
original non-recourse mortgage Indebtedness (after giving effect to any
discount thereof).”

          (d) Amendment to Section 9.13. Section 9.13 of the Guaranty shall be amended by
deleting subsections (a) and (c) of such Section in their entirety and replacing them with the
following new subsections (a) and (c):

     “(a) The Guarantor will not directly or indirectly purchase, acquire,
redeem or retire, or make any cash payment upon the conversion of, any
shares of its Capital Stock at any time outstanding or set aside funds for
any such purpose, except that, so long as no Event of Default or violation
of Section 9.14 hereof has occurred or will result after giving effect
thereto, and so long as the Debt remains outstanding, Guarantor shall be
permitted to (i) purchase shares of its Class A Common Stock, in an amount
not to exceed Four Million Dollars ($4,000,000) in the aggregate unless the
prior written approval of the Administrative Agent is obtained, such
purchases to be made solely for purposes of covering employees’ minimum
statutory tax withholding requirement in connection with the vesting of
restricted stock granted under the Guarantor’s 1994 Stock Plan, as amended,
and only as the need to pay such minimum statutory tax withholding
requirement arises and (ii) make, and set aside funds for purposes of
making, cash payments to the holders of the March 2010 Preferred Equity and
any Additional Preferred Equity which is convertible preferred in lieu of
issuing fractional shares of its Class A Common Stock in connection with the
exercise of conversion rights by such holders of the Preferred Equity in
accordance with the terms thereof.”

     “(c) The Guarantor will not directly or indirectly declare or pay (or
set aside any funds to pay) any Dividends; provided that so long as
no

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Event of Default has occurred and is continuing or would occur as a
result, the Guarantor may accrue and/or pay (i) (A) accrued and unpaid
Dividends with respect to the outstanding March 2010 Preferred Equity (and
set aside funds for such purpose) at a rate not to exceed seven percent
(7.0%) annually and (B) an amount equal to the total value of Dividends that
would have accrued and become payable on the outstanding March 2010
Preferred Equity in connection with the Guarantor’s election to convert its
March 2010 Preferred Equity to Class A Common Stock pursuant to clause
5(m)(vi) of the March 2010 Preferred Equity Designation, and (ii) accrued
and unpaid Dividends with respect to all outstanding Additional Preferred
Equity (and set aside funds for such purpose), provided that, in each fiscal
year of the Guarantor, the aggregate Dividends accrued, paid or otherwise
payable or set aside with respect to all Additional Preferred Equity shall
not exceed the sum of (1) the aggregate debt service which would have been
payable during such period on the portion of the Senior Notes Retired with
the proceeds of such Additional Preferred Equity plus (2) Three Million
Dollars ($3,000,000).”

          (e) New Section 9.24. The Guaranty is amended by inserting the following as new
Section 9.24 of the Guaranty:

     “9.24 Additional Preferred Equity. Guarantor shall not issue
any Additional Preferred Equity except as provided in this Section 9.24:

     (a) In connection with the issuance of any Additional Preferred Equity
(i) the costs and expenses (other than the costs and expenses of entering
into an Additional Preferred Equity Hedge Transaction for such transaction)
of issuance of any Additional Preferred Equity shall not exceed three
percent (3%) of the face amount of the corresponding Additional Preferred
Equity issued, (ii) the Administrative Agent shall have given its prior
written approval of the terms and conditions of such Additional Preferred
Equity and the applicable Additional Preferred Equity Documents, and (iii)
Guarantor shall have delivered to the Administrative Agent pro forma
evidence reasonably satisfactory to the Administrative Agent that, following
the issuance of such Additional Preferred Equity, Guarantor will be in
compliance with the covenant in Section 9.13(c) hereof; provided, that (A)
in the event the terms and conditions of such Additional Preferred Equity
satisfy the requirements of clause (i) or (ii) of the term “Additional
Preferred Equity (Pre-Approved)” (x) Guarantor shall not be required to so
obtain the Administrative Agent’s prior written approval of the terms and
conditions of such Additional Preferred Equity and Additional Preferred
Equity Documents and (y) such pro forma evidence of compliance with the
covenant in Section 9.13(c) hereof may be delivered to the Administrative
Agent after the applicable issuance of Additional Preferred Equity (but in
any event within three (3) Cleveland Banking Days of such issuance) and (B)
in the event the terms and conditions of any Additional Preferred Equity do
not satisfy the requirements of clause (i) of the term “Additional Preferred
Equity (Pre-Approved)” but do satisfy the requirements of clause (ii) of the
term

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“Additional Preferred Equity (Pre-Approved)”, Guarantor shall provide
the Administrative Agent with at least one (1) Cleveland Banking Day’s prior
notice of its intention to issue such Additional Preferred Equity.

     (b) Further, in connection with the issuance of any Additional
Preferred Equity, (i) Guarantor shall deliver to the Administrative Agent
true and complete copies of the Additional Preferred Equity Documents and
the documents evidencing any Additional Preferred Equity Hedge Transaction
related to such Additional Preferred Equity promptly upon entering into the
same, (ii) Guarantor shall provide written confirmation to the
Administrative Agent of the cost of obtaining any Additional Preferred
Equity Hedge Transaction promptly following the consummation of any such
hedge transaction and (iii) Guarantor shall notify Administrative Agent of
each Additional Preferred Equity Exchange related thereto within three (3)
Cleveland Banking Days of the occurrence thereof.

     (c) A majority of the Proceeds from each issuance of Additional
Preferred Equity shall be used to Retire all or a portion of the Senior
Notes, and any proceeds received by the Guarantor upon such issuance not so
used within thirty (30) days of such issuance in connection with any
Additional Preferred Equity Exchange or to pay costs and expenses of
issuance as provided above shall be deemed External Capital.

     (d) None of the Additional Preferred Equity Documents shall be amended
or modified (i) to increase the rate of Dividends payable on the Additional
Preferred Equity to equal or exceed any rate which would cause a violation
of Section 9.13(c) hereof or to provide for payment of such Dividends more
frequently than quarterly, if and when declared by the Board of Directors of
the Guarantor, (ii) to alter the calculation of the conversion price or the
conversion rate applicable to the Additional Preferred Equity to make either
such calculation less favorable to the Guarantor, (iii) to provide for any
additional or more favorable voting rights (including the ability to elect
or nominate board members) of the holders of the Additional Preferred
Equity, (iv) to alter or supplement any redemption provisions contained in
the Additional Preferred Equity Documents, including adding additional
redemption provisions, without the prior written consent of the
Administrative Agent, (v) in any manner that would cause the applicable
Additional Preferred Equity or the applicable Additional Preferred Equity
Documents to no longer satisfy the requirements of clause (i) or (ii) of the
term “Additional Preferred Equity (Pre-Approved)”, as applicable, to the
extent such Additional Preferred Equity was issued as “Additional Preferred
Equity (Pre-Approved)” or (vi) in any manner without the prior written
consent of the Administrative Agent to the extent the Additional Preferred
Equity evidenced by such Additional Preferred Equity Documents was issued as
“Additional Preferred Equity (Agent Approved)”, other than, for purposes of
this clause (vi), any amendment or modification (x) that is administrative
or ministerial in nature or (y) that would incorporate a term or condition
that would otherwise conform to the requirements of “Additional Preferred

11

 

Equity (Pre-Approved)” or, following such incorporation, would be an
amendment or modification to such term or condition not otherwise prohibited
under the terms of clauses (i)-(iv) of this Section 9.24(d).”

          (f) Amendment to Section 10. Section 10 of the Guaranty shall be amended by deleting
subsection (b) of such Section it in its entirety and replacing it with the following new
subsection (b):

     “(b) the Guarantor shall fail to observe, perform, or comply with any
obligation, covenant, agreement, or undertaking of the Guarantor set forth
in Sections 3, 9.5(a), 9.8, 9.13, 9.14, 9.15, 9.24 and/or (to the extent the
proviso in Section 10(c) hereof does not eliminate the notice and cure
period provided therein) 9.18 hereof, or”

     3. REPRESENTATIONS AND WARRANTIES. Each of the Borrower and the Parent represents and
warrants to the Agents and each of the Banks as follows:

          (a) INCORPORATION OF REPRESENTATIONS AND WARRANTIES. Each and every
representation and warranty made by the Borrower in Article IX of the Credit Agreement and by the
Parent in Section 7 of the Guaranty is incorporated herein as if fully rewritten herein at length
and is true, correct and complete as of the date hereof.

          (b) REQUISITE AUTHORITY. Each of the Borrower and the Parent has all requisite power
and authority to execute and deliver and to perform its obligations in respect of this Second
Amendment and each and every other agreement, certificate, or document required by or delivered
contemporaneously with this Second Amendment. Each of the Borrower and the Parent has all
requisite power and authority to perform its obligations under the Credit Agreement and the
Guaranty, as applicable, as amended by this Second Amendment.

          (c) DUE AUTHORIZATION; VALIDITY. Each of the Borrower and the Parent has taken all
necessary action to authorize the execution, delivery, and performance by it of this Second
Amendment and every other instrument, document, and certificate relating hereto or delivered
contemporaneously herewith and to authorize the performance of the Credit Agreement and the
Guaranty, in each case as amended by this Second Amendment. This Second Amendment and each other
document and agreement delivered contemporaneously herewith has been duly executed and delivered by
the Borrower and the Parent and each of this Second Amendment and the Credit Agreement and the
Guaranty, each as amended by this Second Amendment, is the legal, valid, and binding obligation of
each of the Borrower and the Parent, enforceable against each of them in accordance with its
respective terms.

          (d) NO CONSENT. No consent, approval, or authorization of, or registration with, any
governmental authority or other Person is required in connection with the execution, delivery and
performance by the Borrower or the Parent of this Second Amendment or any other instrument,
document, and certificate relating hereto or delivered contemporaneously herewith and the
transactions contemplated hereby or thereby or in connection with the performance of the Credit
Agreement and the Guaranty, in each case as amended by this Second Amendment.

          (e) NO DEFAULTS. After giving effect to this Second Amendment, no event has occurred
and no condition exists which, with the giving of notice or the lapse of time, or both, would
constitute an Event of Default or Possible Default.

12

 

          (f) NO CONFLICTS; NO CREATION OF LIENS. Neither the execution and delivery of this
Second Amendment nor the performance by the Borrower and the Parent of their respective obligations
under this Second Amendment or the Credit Agreement or the Guaranty, in each case as amended by
this Second Amendment, will violate the provisions of any applicable law or of any applicable order
or regulations of any governmental authority having jurisdiction over the Parent or the Borrower or
any of its Subsidiaries, or will conflict with the organizational documents of the Parent or the
Borrower or any of their material permits, licenses or authorizations, or will conflict with or
result in a breach of any of the terms, conditions or provisions of any restriction or of any
agreement or instrument to which the Parent or the Borrower is now a party, or will constitute a
default thereunder, or will result in the creation or imposition of any Lien upon any of the
properties or assets of the Borrower or any of its Subsidiaries.

     4. CONDITIONS TO EFFECTIVENESS OF SECOND AMENDMENT.

          (a) CLOSING CONDITIONS. Except as otherwise expressly provided in this Second
Amendment, prior to or concurrently with the Closing Date (as hereinafter defined), and as
conditions precedent to the effectiveness of the amendments and consents provided for herein, the
following actions shall be taken, all in form and substance satisfactory to the Agent and its
counsel:

               (i) AMENDMENT. The Agent shall have received counterparts of this Second Amendment,
executed and delivered by the Borrower, the Parent, the Agents, and the Required Banks.

               (ii) PAYMENT OF EXPENSES. On or before the Closing Date, the Borrower shall have paid
to the Agents all costs, fees and expenses incurred by them through the Closing Date in the
preparation, negotiation and execution of this Second Amendment (including, without limitation, the
reasonable legal fees and expenses of McKenna Long & Aldridge LLP).

          (b) DEFINITION. The “Closing Date” shall mean the date this Second Amendment is
executed and delivered by the Borrower, the Parent, the Required Banks and the Agents and all the
conditions set forth in subsection (a) of this Section 4 have been satisfied or, in the case of
subsection (a)(ii) above only, waived in writing by the Agent.

     5. NO WAIVER. Except as otherwise expressly provided herein, the execution and
delivery of this Second Amendment by the Agents and the Banks shall not (a) constitute a waiver or
release of any obligation or liability of the Borrower under the Credit Agreement, or the Parent
under the Guaranty, in each case as in effect prior to the effectiveness of this Second Amendment
or as amended hereby, (b) waive or release any Event of Default or Possible Default existing at any
time, (c) give rise to any obligation on the part of the Agents and the Banks to extend, modify or
waive any term or condition in the Credit Agreement, the Guaranty or any of the other Related
Writings or consent to any transaction or event, or (d) give rise to any defenses or counterclaims
to the right of the Agents and the Banks to compel payment of the Debt or to otherwise enforce
their rights and remedies under the Credit Agreement, the Guaranty or any other Related Writing.

13

 

     6. EFFECT ON OTHER PROVISIONS. Except as expressly amended by this Second Amendment,
all provisions of the Credit Agreement and the Guaranty continue unchanged and in full force and
effect and are hereby confirmed and ratified. All provisions of the Credit Agreement and the
Guaranty shall be applicable to this Second Amendment. Nothing in this Second Amendment or any
other document delivered in connection herewith shall be deemed or construed to constitute, and
there has not otherwise occurred, a novation, cancellation, satisfaction, release, extinguishment
or substitution of the indebtedness evidenced by the Notes or the other obligations of the Borrower
and the Parent under the Credit Agreement, the Guaranty or any of the other Related Writings.
Parent hereby acknowledges that it consents to this Second Amendment and each and every other
agreement, certificate, or document required by or delivered contemporaneously with this Second
Amendment and confirms and agrees that the Guaranty, as amended to the date hereof, is and shall
remain in full force and effect with respect to the Credit Agreement as in effect prior to, and
from and after, the amendment thereof pursuant to this Second Amendment.

     7. EXECUTION IN COUNTERPARTS. This Second Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which, when taken together, shall constitute
but one and the same agreement. Delivery of an executed counterpart of a signature page to this
Second Amendment by telecopier or pdf file shall be effective as delivery of a manually executed
counterpart of this Second Amendment.

     8. GOVERNING LAW. This Second Amendment shall be governed by, and construed in
accordance with, the laws of the State of Ohio, without regard to its principles of conflict of
laws.

     9. JURY TRIAL WAIVER. THE BORROWER, THE PARENT, THE AGENTS AND EACH OF THE BANKS
WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT,
TORT OR OTHERWISE, AMONG BORROWER, THE PARENT, THE AGENTS AND THE BANKS, OR ANY THEREOF, ARISING
OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THE CREDIT AGREEMENT, THE GUARANTY, THIS SECOND AMENDMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED
THERETO. THIS SECOND AMENDMENT SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY ANY
BANK’S ABILITY TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION
CONTAINED IN ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT AMONG THE BORROWER, THE PARENT AND
THE BANKS, OR ANY THEREOF.

[Remainder of page intentionally left blank.]

14

 

     IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed
and delivered as of the date set forth above, each by an officer thereunto duly authorized.

	 	 	 	 	 
	 	FOREST CITY RENTAL PROPERTIES CORPORATION

 	 
	 	By:  	/s/ James A. Ratner
 	 
	 	 	Name:  	James A. Ratner 	 
	 	 	Title:  	Chief Executive Officer & President 	 
	 
	 
	 	FOREST CITY ENTERPRISES, INC.

 	 
	 	By:  	/s/ James A. Ratner
 	 
	 	 	Name:  	James A. Ratner 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 
	 	KEY BANK NATIONAL ASSOCIATION, 
individually and as
Agent

 	 
	 	By:  	/s/ Joshua K. Mayers
 	 
	 	 	Name:  	Joshua K. Mayers 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION, 
individually and as
Syndication Agent

 	 
	 	By:  	/s/ John E. Wilgus, II
 	 
	 	 	Name:  	John E. Wilgus, II 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 
	 	BANK OF AMERICA, N.A., 
individually and as Documentation Agent

 	 
	 	By:  	/s/ Michael M. Pomposelli
 	 
	 	 	Name:  	Michael M. Pomposelli 	 
	 	 	Title:  	Senior Vice President 	 

15

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE HUNTINGTON NATIONAL BANK

 	 
	 	By:  	/s/ Michael Kauffman
 	 
	 	 	Name:  	Michael Kauffman 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Dennis J. Redpath
 	 
	 	 	Name:  	Dennis J. Redpath 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 
	 	FIFTH THIRD BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	MANUFACTURERS AND TRADERS TRUST COMPANY

 	 
	 	By:  	/s/ David Ladori
 	 
	 	 	Name:  	David Ladori 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	RBS CITIZENS, N.A. dba Charter One

 	 
	 	By:  	/s/ Andrew Romanosky
 	 
	 	 	Name:  	Andrew Romanosky 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	WACHOVIA BANK, N.A.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

16

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON

 	 
	 	By:  	/s/ Kenneth R. McDonnell
 	 
	 	 	Name:  	Kenneth R. McDonnell 	 
	 	 	Title:  	Managing Director 	 
	 
	 
	 	CRÉDIT AGRICOLE CORPORATE & INVESTMENT BANK

 	 
	 	By:  	/s/ Paul T. Ragusin
 	 
	 	 	Name:  	Paul T. Ragusin 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	              /s/ John A. Wain
 	 
	 	 	Name:  	John A. Wain 	 
	 	 	Title:  	Managing Director 	 
	 
	 
	 	BARCLAYS BANK PLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	BMO CAPITAL MARKETS FINANCING, INC.

 	 
	 	By:  	/s/ David J. Bechstein
 	 
	 	 	Name:  	David J. Bechstein 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Charles Weddell
 	 
	 	 	Name:  	Charles Weddell 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	FIRSTMERIT BANK, N.A.

 	 
	 	By:  	/s/ Robert G. Morlan
 	 
	 	 	Name:  	Robert G. Morlan 	 
	 	 	Title:  	Senior Vice President 	 
	 

17exv10w18

Exhibit 10.18

AMENDMENT NO. 1 TO

EMPLOYMENT AGREEMENT

     This Amendment No. 1 to Employment Agreement is entered into this June 14, 2010 by Vistaprint
USA, Incorporated (the “Company”) and Robert S. Keane (the “Employee”). The Company and the
Employee previously entered into an Employment Agreement dated September 1, 2009 (the “Agreement”)
and now wish to amend the Agreement to reflect the Employee’s compensation for the Company’s 2011
fiscal year.

     The parties agree as follows:

     1. Compensation and Benefits.

          1.1 Salary. The Company shall pay the Employee, in accordance with the Company’s
regular payroll practices, an annualized base salary of $72,468 (approximate, based on the 30-day
trailing average currency exchange rate in effect at May 5, 2010) for the one-year period
commencing on July 1, 2010.

          1.2 FY 2011 Incentive Compensation. The Employee is entitled to receive the bonuses,
incentive awards and equity compensation awards for the Company’s fiscal year 2011 described on
Schedule A.

          1.3 Withholding. All salary, bonus and other compensation payable to the Employee is
subject to applicable withholding taxes.

     2. No Other Modification. Except as specifically modified by this Amendment, the
Agreement remains unchanged and in full force and effect.

     The parties have executed this Agreement as of the date set forth above.

	 	 	 	 	 
	 	VISTAPRINT USA, INCORPORATED

 	 
	 	By:  	/s/ Michael Giannetto
 	 
	 	 	Title: Chief Financial Officer 	 
	 	 	 	 

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	/s/ Robert S. Keane
 	 
	 	Robert S. Keane 	 
	 	 	 

 

 

	 	 	 	 	 

SCHEDULE A

Compensation Payable by the Company for fiscal year 2011

Annual base salary of $72,468*.

Annual incentive, pursuant to the terms of the Employee’s award agreement under the Vistaprint
Performance Incentive Plan for Covered Employees:

Target (100%) of $531,212*

Minimum (0%) of $0

Maximum (250%) of $1,328,031*

Long-term cash incentive, pursuant to the terms of the Employee’s award agreement under the
Vistaprint Performance Incentive Plan for Covered Employees:

Target (4 years) of $562,500

Minimum (4 years) of $0

Maximum (4 years) of $1,040,625

Long-term equity incentive, pursuant to the terms of the Employee’s grant agreements under the
Vistaprint Amended and Restated 2005 Equity Incentive Plan:

Share options with Black Scholes value of $2,812,500

Restricted share units with value at grant of $2,250,000

 

			
	*	 	Approximate, based on the 30-day trailing average currency exchange rate in effect at May 5, 2010

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