Document:

Exhibit
10.1

 

WATTS WATER TECHNOLOGIES, INC.

 

SUPPLEMENTAL EMPLOYEES RETIREMENT
PLAN

 

As Amended and Restated

Effective May 4, 2004

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I  - 
  NAME, PURPOSE, AND EFFECTIVE DATE

  	
   

  
	
   

  	
   

  
	
  1.01

  	
  Name and
  Purpose

  	
   

  
	
  1.02

  	
  Effective Date

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II  - 
  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  2.01

  	
  Code

  	
   

  
	
  2.02

  	
  Compensation

  	
   

  
	
  2.03

  	
  Employer

  	
   

  
	
  2.04

  	
  Final Average Compensation

  	
   

  
	
  2.05

  	
  Participant

  	
   

  
	
  2.06

  	
  Plan
  Administrator

  	
   

  
	
  2.07

  	
  Social
  Security Benefit

  	
   

  
	
  2.08

  	
  Sponsoring
  Employer

  	
   

  
	
  2.09

  	
  Certain
  Definitions Under Qualified Plan Apply

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III  - 
  ELIGIBILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  3.01

  	
  Participation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV  - 
  RETIREMENT BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  4.01

  	
  Amount
  of Normal or Deferred Retirement Benefit

  	
   

  
	
  4.02

  	
  Amount of Early
  Retirement Benefit

  	
   

  
	
  4.03

  	
  Accrued Normal
  Retirement Benefit

  	
   

  
	
  4.04

  	
  Special Retirement Benefit

  	
   

  
	
  4.05

  	
  Adjustment
  of the Qualified Plan Offset for Certain Participants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V -
  VESTING

  	
   

  
	
   

  	
   

  	
   

  
	
  5.01

  	
  Vesting

  	
   

  
	
  5.02

  	
  Amount of Vested
  Accrued Benefit

  	
   

  
	
  5.03

  	
  Forfeiture
  for Cause

  	
   

  

 

 

	
  ARTICLE VI  -  NORMAL FORM, FORM PAYABLE, AND
  COMMENCEMENT OF RETIREMENT BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  6.01

  	
  Normal
  Form of Payment

  	
   

  
	
  6.02

  	
  Form to be Paid

  	
   

  
	
  6.03

  	
  Commencement
  of Payment

  	
   

  
	
  6.04

  	
  Suspension
  of Benefits

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII  - 
  DEATH BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
  7.01

  	
  Death
  Benefit Prior to Benefit Commencement

  	
   

  
	
  7.02

  	
  Amount
  and Commencement of Death Benefit Payable to Surviving Spouse

  	
   

  
	
  7.03

  	
  Death Benefit
  After Benefit Commencement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII  - 
  FUNDING

  	
   

  
	
   

  	
   

  	
   

  
	
  8.01

  	
  Funding

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX  - 
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.01

  	
  Non-Guarantee of Employment

  	
   

  
	
  9.02

  	
  Rights under Retirement
  Plan

  	
   

  
	
  9.03

  	
  Amendments/Termination

  	
   

  
	
  9.04

  	
  Nonassignability

  	
   

  
	
  9.05

  	
  Plan
  Administration

  	
   

  
	
  9.06

  	
  Successor
  Company

  	
   

  
	
  9.07

  	
  Governing Law

  	
   

  
	
  9.08

  	
  Claims
  Procedure

  	
   

  
	
   

  	
   

  	
   

  
	
  APPENDIX A  - 
  LIST OF PARTICIPANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  APPENDIX B  - 
  SPECIAL RETIREMENT BENEFIT – Tier 1

  	
   

  
	
   

  	
   

  	
   

  
	
  APPENDIX C  - 
  SPECIAL RETIREMENT BENEFIT – Tier 1-A

  	
   

  
	
   

  	
   

  	
   

  
	
  APPENDIX D  - 
  SPECIAL RETIREMENT BENEFIT – Tier 1-T

  	
   

  

 

 

ARTICLE I

 

NAME, PURPOSE AND EFFECTIVE DATE

 

1.01                        NAME AND PURPOSE

 

The supplemental
retirement plan set forth herein as the “Watts Water Technologies, Inc.
Supplemental Employees Retirement Plan” (the “Plan”).  The Plan is established, and shall be maintained, solely for the
purpose of providing supplemental retirement benefits which cannot be provided
under the Watts Water Technologies, Inc. Pension Plan (the “Qualified Plan”)
for certain Participants.  The Plan is
unfunded and maintained primarily for purpose of providing deferred
compensation for Participants who are part of a select group of management or
highly compensated employees.”

 

1.02                        EFFECTIVE DATE

 

This restated Plan shall
be effective May 4, 2004 (the “Effective Date”).  This Plan shall apply to Participants who retire or terminate
their employment with the Employer after the Effective Date.  The Plan was originally effective on  January 1, 1989 (the “Original
Effective Date”).  Participants who
retire or terminate their employment with the Employer on or after the Original
Effective Date but prior to the Effective Date of this Plan shall have their
benefits determined based on the Plan provisions in effect on the date they
retire or otherwise terminate their employment with the Employer.

 

1

 

ARTICLE II

 

DEFINITIONS

 

Whenever used in this
Plan, unless the context clearly indicates otherwise, the following terms shall
have the following meanings:

 

2.01                        “Code” means the Internal Revenue Code of 1986.

 

2.02                        “Compensation” 
means the total compensation payable to an eligible Employee by the
Employer and reportable to the Federal Government for income tax purposes on
Form W-2, or any form prescribed by the Internal Revenue Service to take its
place.  

 

Compensation also
includes:  (i) amounts contributed by
the Employee at the election of the Employee pursuant to a salary deferral
arrangement under Section 401(k), (ii) amounts contributed or deferred at
the election of the Employee and which are not includible in gross income of
the Employee by reason of Section 125 of the Code, (iii) amounts deferred
at the election of the Employee pursuant to a salary deferral agreement under
the Watts Water Technologies, Inc. Management Stock Purchase Plan ( formerly
called the Watts Industries, Inc. Management Stock Purchase Plan), and  (iv) amounts deferred at the election of the
Employee pursuant to a salary deferral agreement under the Watts Water
Technologies, Inc. Non-Qualified Deferred Compensation Plan (formerly called
the Watts Industries, Inc. Non-Qualified Deferred Compensation Plan).

 

For any Employee listed
in Tier 1, Tier 1-A or Tier 1-T of Appendix A, there shall be no limit on such
Employee’s Compensation.  For any
Employee listed in Tier 2 of Appendix A, in no event shall such Employee’s
Compensation exceed $383,450 for the Plan Year beginning January 1,
2004.  For any eligible Employee not
listed in Tier 1, Tier 1-A, Tier 1-T or Tier 2 of Appendix A, in no event shall
such Employee’s Compensation exceed $306,760 for the Plan Year beginning
January 1, 2004.  For each
subsequent Plan Year, the $383,450 and $306,760 limitations shall be adjusted
at the same time and in the same proportion as the adjustment to the maximum
benefit limitation under Internal Revenue Code Section 415(d) which is
applicable to the Qualified Plan.  In
all other respects, the limitations on annual Compensation under this
Section shall be applied in the same manner

 

2

 

in determining Final
Average Compensation as the limitation under Internal Revenue Code
Section 401(a)(17) is to be applied under the Qualified Plan.

 

2.03                        “Employer” means Watts Water Technologies, Inc. (formerly
known as Watts Industries, Inc.) or any successor thereto and any other entity
now or hereafter affiliated with Watts Water Technologies, Inc. which
participates in the Qualified Plan.

 

2.04                        “Final Average Compensation” means,
unless otherwise modified in the Appendices, 
the average of the Participant’s Compensation for the sixty (60)
consecutive months during the last one hundred and twenty (120) months of his
service prior to his termination of employment for which he received the
highest total Compensation.  If a
Participant has not completed at least sixty (60) months of Service with the
Employer, his Final Average Compensation shall be the average of his
Compensation during his period of Service with the Employer.

 

2.05                        “Participant” means an Employee who meets the
eligibility requirements for this Plan in the manner set forth in
Article 3.

 

2.06                        “Plan Administrator” means Watts Water
Technologies, Inc., or its duly authorized representative.

 

2.07                        “Social Security Benefit” means the
primary insurance benefit payable annually to an Employee at Normal Retirement
Age under Title II of the Social Security Act as in effect on the date he
terminates his employment or on his Normal Retirement Age, if earlier, computed
without regard to any reduction or loss of benefits which may result due to
other income, delay in making application or any other reason; provided,
however, that in the case of a Participant who terminates his employment prior
to his attainment of Normal Retirement Age, his Social Security benefit shall
be computed in accordance with the following provisions:

 

(a)                                  If
the Participant has satisfied the eligibility requirements for an Early
Retirement Benefit under Section 4.02 prior to his termination, his Social
Security Benefit will be based on the assumption that he received no further
Compensation from his termination date until he attained his Normal Retirement
Age.

 

3

 

(b)                                 If
the Participant has not satisfied the requirements for an Early Retirement
Benefit prior to his termination, his Social Security Benefit will be based on
the assumption that he remained in the service of the Employer until he reached
his Normal Retirement Age and that he continued to receive the same rate of
Compensation from the Employer as in effect on his termination date until his
Normal Retirement Age.

 

The income used for
purposes of computing a Participant’s Social Security Benefit will be the
portion of his Compensation which is treated as wages for the purposes of the
Social Security Act.  The Participant’s
income earned prior to his first full year of employment as a Participant will
be estimated by applying a 6% salary scale projected backwards from his first
full year of employment with the Employer.

 

2.08                        “Sponsoring Employer” means Watts Water
Technologies, Inc. (formerly known as Watts Industries, Inc.). 

 

2.09                        CERTAIN DEFINITIONS UNDER
QUALIFIED PLAN APPLY

 

The following terms shall
have the same meaning at any relevant time as that contained in the Qualified
Plan.  Any amendment under the Qualified
Plan to the meaning of a term listed hereunder shall also apply under this Plan
to the same extent and in the same manner as under the Qualified Plan.

 

	
  Actuarial Equivalent

  	
   

  	
  Employee

  
	
  Beneficiary

  	
   

  	
  Normal Retirement Age

  
	
  Benefit Service

  	
   

  	
  Normal Retirement Date

  
	
  Board of Directors

  	
   

  	
  Service

  
	
  Contingent Annuitant

  	
   

  	
  Spouse Joint and
  Survivor Annuity

  
	
  Controlled Group
  Company

  	
   

  	
  Year of Service

  
	
  Deferred Retirement
  Date

  	
   

  	
   

  
	
  Early Retirement Date

  	
   

  	
   

  

 

4

 

ARTICLE III

 

ELIGIBILITY

 

3.01                        PARTICIPATION

 

Prior to January 1,
1994, the Board of Directors, designated the Employees who were eligible to
participate in the Plan under Section 4.01(a).  These Employees are listed in Tier 2 of Appendix A, attached hereto.

 

On and after
January 1, 1994, any Employee not designated in Tier 1, Tier 1-A, Tier 1-T
or Tier 2 of Appendix A whose Compensation under the Qualified Plan is limited
under Internal Revenue Code Section 401(a) (17), or who entered into a
salary deferral agreement under the Watts Water Technologies, Inc. Management
Stock Purchase Plan or, effective September 1, 2003, the Watts Water
Technologies, Inc. Non-Qualified Deferred Compensation Plan, is eligible to
participate in this Plan.

 

Effective January 1,
1998, the Board of Directors shall designate the Employees who are eligible to
participate in the Plan under Appendix B. 
These Employees are listed in Tier 1 of Appendix A.

 

Effective January 1,
2003, the Board of Directors shall designate the Employees who are eligible to
participate in the Plan under Appendix C.  These Employees are
listed in

Tier 1-A of Appendix A.  

 

Effective May 4, 2004,
the Board of Directors shall designate the Employees who are eligible to
participant in the Plan under Appendix D. These Employees are listed in Tier 1-T of Appendix A.  

 

5

 

ARTICLE IV

 

RETIREMENT BENEFITS

 

4.01                        AMOUNT OF NORMAL OR DEFERRED
RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.04, the amount of the annual Normal Retirement Benefit or
Deferred Retirement Benefit (as defined in this Section 4.01) payable in
the Normal Form of Payment to a Participant who retires under this Plan on or
after his Normal Retirement Date shall be the excess, if any, of (a) or (b),
whichever is applicable, over (c):

 

(a)                                  For
eligible Participants listed in Tier 2 of Appendix A, forty-five percent (45%)
of his Final Average Compensation less fifty percent (50%) of his Social
Security Benefit, multiplied by a fraction (not to exceed one), the numerator
of which is his years (and fractions thereof) of Benefit Service and the
denominator of which is twenty-five (25).

 

(b)                                 For
eligible Participants not listed in Tier 1, Tier 1-A, Tier 1-T or Tier 2 of
Appendix A, the annual benefit payable in the form of a straight life annuity
determined under the relevant normal or deferred retirement benefit provisions
of the Qualified Plan, but based on Final Average Compensation as defined in
this Plan and ignoring any limitations under Internal Revenue Code
Section 415.

 

(c)                                  The
annual benefit is payable in the form of a straight life annuity under the
Qualified Plan.

 

Notwithstanding the
above, the amount of annual Normal Retirement Benefit or Deferred Retirement
Benefit for eligible Participants listed in Tier 2 of Appendix A attached hereto
shall in no event be less than the amount determined as if the eligible
Participant was not listed in Tier 1, Tier 1-A, Tier 1-T or Tier 2 of Appendix
A and eligible for the Normal Retirement Benefit or Deferred Retirement Benefit
described in Section 4.01(b) of the Plan.

 

6

 

4.02                        AMOUNT OF EARLY RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.04, the amount of the annual Early Retirement Benefit (as
defined in this Section 4.02) of a Participant who elects to retire on or
after his Early Retirement Date shall be a benefit computed in accordance with
(a) or (b) below, as elected by the Participant in accordance with the
requirements of Section 6.03:

 

(a)                                  A
benefit commencing on his Normal Retirement Date in an amount equal to his
Accrued Normal Retirement Benefit as defined and determined in accordance with
Section 4.03.

 

(b)                                 A
reduced benefit commencing on his Early Retirement Date or the first day of any
month thereafter but prior to his Normal Retirement Date, as elected by the
Participant, which benefit shall be computed as the excess of (i) over (ii)
where:

 

(i)                                     is
equal to the benefit determined in Section 4.01(a) or 4.01(b) above, as
applicable, reduced in amount in the same manner as the reduction made to the
amount of benefit payable under the Qualified Plan prior to his Normal
Retirement Date, and

 

(ii)                                  is
equal to the benefit determined under Section 4.01(c) reduced in the same
manner as the reduction made to the amount of benefit payable under the
Qualified Plan prior to his Normal Retirement Date.

 

4.03                        ACCRUED NORMAL RETIREMENT BENEFIT

 

For an eligible
Participant whose benefit is determined in accordance with Sections 4.01(a) and
(c), such Participant’s Accrued Normal Retirement Benefit at any time prior to
his Normal Retirement Date, shall be determined as the amount of Normal
Retirement Benefit that the Participant would have received under
subsection (a) of Section 4.01 if he had remained in the employ of
the Employer to his Normal Retirement Date, but based on his Final Average
Compensation and Social Security Benefit as of the date such Accrued Normal
Retirement Benefit is being determined. 
Such amount shall then be multiplied by a fraction in which the
numerator is the number of years (and

 

7

 

fractions thereof) of
Benefit Service that the Participant has completed, and the denominator is the
number of years (and fractions thereof) of Benefit Service that the Participant
would have completed if he had remained in the employ of the Employer to his
Normal Retirement Date, and such amount shall then be reduced by the amount
determined under subsection (c) of Section 4.01; provided, however,
that in the case of a Participant who has completed twenty-five (25) years of
Benefit Service and has satisfied the conditions for an Early Retirement
Benefit, the fractional reduction of this Section 4.03 shall not apply in
determining his Accrued Normal Retirement Benefit.

 

For an eligible Participant
whose benefit is determined in accordance with Sections 4.01(b) and (c), such
Participant’s Accrued Normal Retirement Benefit at any time prior to his Normal
Retirement Date shall be determined as the excess of the benefit determined in
accordance with Section 4.01(b) over the benefit determined in accordance
with Section 4.01(c).

 

4.04                        SPECIAL RETIREMENT BENEFIT

 

Notwithstanding any other
provision to the contrary, eligible Participants listed in Tier 1 of Appendix A
shall be entitled to receive the Special Retirement Benefit as set forth in
Appendix B, which is hereby incorporated and made a part of this Plan, in lieu
of the benefit otherwise provide under this Article IV.  Eligible Participants listed in Tier 1-A of
Appendix A shall be entitled to receive the Special Retirement Benefit as set
forth in Appendix C, which is hereby incorporated and made a part of this Plan,
in lieu of the benefit otherwise provided under this Article IV.  Eligible Participants listed in Tier 1-T of
Appendix A shall be entitled to receive the Special Retirement Benefit as set
forth in Appendix D, which is hereby incorporated and made a part of this
Plan.  

 

4.05                        ADJUSTMENT OF THE QUALIFIED PLAN
OFFSET FOR CERTAIN PARTICIPANTS

 

Notwithstanding the
foregoing provisions of this Article IV, in the event the annual benefit
payable under the Qualified Plan in the form of a straight life annuity exceeds
the maximum benefit limitation of Internal Revenue Code Section 415 and
the Participant elects to receive a Spouse Joint and Survivor Annuity form of
payment under the Qualified Plan, the Qualified Plan offset described in
Section 4.01(c)(ii) shall be equal to the straight life annuity Actuarial
Equivalent of the benefit actually elected by the Participant under the
Qualified Plan.

 

8

 

ARTICLE V

 

VESTING

 

5.01                        VESTING

 

Subject to
Section 5.03, a Participant’s Accrued Normal Retirement Benefit shall be
fully vested upon the date which is the earlier of (i) his completion of six
(6) years of Service, (ii) his Early Retirement Date, or (iii) his attainment
of Normal Retirement Age, provided he is actively employed by the Employer on
such date.  A Participant whose
employment with the Employer ceases prior to his satisfaction of one of the full
vesting conditions of this Section 5.01 shall not be entitled to any
benefit under this Plan.

 

5.02                        AMOUNT OF VESTED ACCRUED BENEFIT

 

The amount of the Accrued
Normal Retirement Benefit of a Participant shall be determined under
Section 4.03.  In the event that
the payment of a Participant’s vested Accrued Normal Retirement Benefit
commences prior to his Normal Retirement Date in accordance with
Section 6.03, the amount of benefit payable on such prior date shall be
reduced in the same manner as the reduction described in Section 4.02(b).

 

5.03                        FORFEITURE FOR CAUSE

 

Any Participant who (i)
because of admitted or judicially proven fraud or dishonesty causes substantial
harm to the Employer (or a Controlled Group Company), or (ii) knowingly and
materially violates any non-interference or non-competition provision contained
in any employment agreement with the Employer (or a Controlled Group Company),
shall forfeit all retirement benefits otherwise payable to him, and death
benefits payable to his spouse, Beneficiary, or Contingent Annuitant under this
Plan.  

 

9

 

ARTICLE VI

 

NORMAL FORM, FORM PAYABLE, AND
COMMENCEMENT OF RETIREMENT BENEFITS

 

6.01                        NORMAL FORM OF PAYMENT

 

The Normal Form of
Payment (as defined in this Section 6.01) 
of a Participant’s benefits under this Plan shall be an annuity for
life, payable monthly, commencing on the first day of the month coinciding with
or next following the date his benefit commences under Section 6.03 and
terminating with the payment preceding his death.

 

6.02                        FORM TO BE PAID

 

The Participant’s benefit
under this Plan shall be paid in the same form as that applicable under the
Qualified Plan, including the Participant’s designation of Beneficiary or
Contingent Annuitant thereunder.  In the
event that the form paid under the Qualified Plan is other than the Normal Form
of Payment under Section 6.01, the amount of benefit being paid under this
Plan shall be the Actuarial Equivalent of the Normal Form of Payment.

 

6.03                        COMMENCEMENT OF PAYMENT

 

Benefits shall commence
under this Plan to a Participant as of the same date that benefits commence to
the Participant under the Qualified Plan; provided, however, that, in the case
of a Participant required to commence benefit payments under the Qualified Plan
solely on account of the Participant’s attainment of age seventy and one-half
(70-1/2), benefits shall not commence under this Plan until the Participant
actually retires.

 

6.04                        SUSPENSION OF BENEFITS

 

Payment of benefits under
this Plan to a retired Participant who is re-employed by the Employer shall be
suspended if the payment of such Participant’s benefit under the Qualified Plan
is (i) suspended on account of reemployment, or (ii) would have been suspended
but for the Participant’s having attained age 70-1/2.  Upon such Participant’s subsequent retirement or termination of
employment, his benefits shall recommence and the benefit payable under this
Plan may be recomputed by accumulating both periods of

 

10

 

employment and may be
actuarially adjusted to reflect any benefit payments previously made to the
Participant in order to avoid any duplication of benefits.

 

11

 

ARTICLE VII

 

DEATH BENEFITS

 

7.01                        DEATH BENEFIT PRIOR TO BENEFIT
COMMENCEMENT

 

The surviving spouse of a
Participant who dies prior to the date as of which benefits are to commence
under this Plan shall be entitled to a death benefit under this Plan in the
event that the Participant was legally married to the surviving spouse for the
one year period ending on the date of the Participant’s death and the
Participant’s Accrued Normal Retirement Benefit was vested under
Section 5.01 at the time of his death. 
The preceding sentence shall not apply, and the death benefit provisions
of Section 7.03 shall apply, in the case of a Participant who dies prior
to the date as of which benefits are to commence under this Plan but after
benefits commence to the Participant under the Qualified Plan on account of the
Participant’s attainment of age 70-1/2.

 

No death benefit shall be
payable under this Plan with respect to a Participant who dies  before benefit commencement without a
surviving spouse eligible to receive a death benefit.

 

7.02                        AMOUNT AND COMMENCEMENT OF DEATH
BENEFIT PAYABLE TO SURVIVING SPOUSE

 

The annual amount of the
surviving spouse’s death benefit payable under this Plan shall be calculated in
the same manner that the surviving spouse’s death benefit is calculated under
the Qualified Plan and shall be equal to the survivor annuity payable with
respect to the Participant’s benefit under Article IV or Article V,
as appropriate, if the Participant’s benefit were paid in the form of a Spouse
Joint and Survivor Annuity.  The surviving
spouse’s benefit under this Plan shall commence at the same time that such
benefit commences under the Qualified Plan.

 

12

 

7.03                        DEATH BENEFIT AFTER BENEFIT
COMMENCEMENT

 

The death benefit
payable, if any, to the Participant’s surviving spouse, Beneficiary, or
Contingent Annuitant in the event of the Participant’s death after benefits
commence under this Plan shall be pursuant to the form of retirement benefit
applicable under Section 6.02.  No
other death benefit shall be payable under this Plan.

 

13

 

ARTICLE VIII

 

FUNDING

 

8.01                        FUNDING

 

There is no fund
associated with this Plan.  The
Sponsoring Employer shall be required to make payments only as benefits become
due and payable.  No person shall have
any right, other than the right of an unsecured general creditor, against the
Sponsoring Employer with respect to the benefits payable hereunder, or which
may be payable hereunder, to any Participant, surviving spouse or Beneficiary
or Contingent Annuitant hereunder.  If
the Sponsoring Employer, acting in its sole discretion, establishes a reserve
or other fund associated with this Plan, no person shall have any right to or
interest in any specific amount or asset of such reserve or fund by reason of
amounts which may be payable to such person under this Plan, nor shall such
person have any right to receive any payment under this Plan except as and to
the extent expressly provided in this Plan. 
The assets in any such reserve or fund shall be subject to the control
of the Sponsoring Employer, and need not be used to pay benefits hereunder.

 

14

 

ARTICLE IX

 

MISCELLANEOUS

 

9.01                        NON-GUARANTEE OF EMPLOYMENT

 

Nothing contained in this
Plan shall be construed as a contract of employment between the Employer and
any Employee, or as a right of any such Employee to be continued in the
employment of the Employer, or as a limitation on the right of the Employer to
deal with any Employee, as to their hiring, discharge, layoff, compensation,
and all other conditions of employment in all respects as though this Plan did
not exist.

 

9.02                        RIGHTS UNDER RETIREMENT PLAN

 

Nothing in this Plan
shall be construed to limit, broaden, restrict, or grant any right to an
Employee, surviving spouse or any Beneficiary or Contingent Annuitant thereof
under the Qualified Plan, nor to grant any additional rights to any such person
under the Qualified Plan, nor in any way to limit, modify, repeal or otherwise
affect the Employer’s right to amend or modify the Qualified Plan.

 

9.03                        AMENDMENTS/TERMINATION

 

The Sponsoring Employer
reserves the right to make from time to time amendments to or terminate this
Plan by vote duly adopted by the Board of Directors.  In the event the Sponsoring Employer exercises his right to amend
or terminate this Plan, a Participant shall receive the lesser of:  (a) the benefit he would have received had
he terminated employment on the day the amendment or termination becomes
effective, or (b) the benefit he would have received had the Plan continued, in
effect, without amendment, until the date of his actual termination of
employment.

 

9.04                        NONASSIGNABILITY

 

The benefits payable
under this Plan shall not be subject to alienation, assignment, garnishment,
execution or levy of any kind and any attempt to cause any benefits to be so
subjected shall not be recognized, except to the extent required by applicable
law.

 

15

 

9.05                        PLAN ADMINISTRATION

 

This Plan shall be
operated and administered by the Board of Directors or its duly authorized
representative whose decision on all matters involving the interpretation and
administration of this Plan shall be final and binding.

 

9.06                        SUCCESSOR COMPANY

 

In the event of the
dissolution, merger, consolidation or reorganization of the Sponsoring
Employer, provision may be made by which a successor to all or a major portion
of the Sponsoring Employer’s property or business shall continue this Plan, and
the successor shall have all of the powers, duties and responsibilities of the
Sponsoring Employer under this Plan.

 

9.07                        GOVERNING LAW

 

This Plan shall be
construed and enforced in accordance with, and governed by, the laws of the
Commonwealth of Massachusetts.

 

9.08                        CLAIMS PROCEDURES

 

The Claims Procedure
currently detailed, and as may later be amended, under the Qualified Plan is
hereby incorporated by reference as the Claims Procedure for this Plan;
provided, however that the “Board of Directors, or its duly authorized
representative”, shall be substituted for the “Committee” in the Claims
Procedures detailed in such Qualified Plan.

 

16

 

IN WITNESS WHEREOF,
Watts Water Technologies, Inc. has caused this instrument to be executed in its
name and on its behalf this
           day of
                                       ,
2004.

 

	
   

  	
  WATTS WATER TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  William C. McCartney

  	
   

  

 

17

 

APPENDIX
A

 

LIST OF PARTICIPANTS

 

Tier 1                                      The following is
a list of Participants eligible for the Special Retirement Benefit described in
Section 4.04 and Appendix B of the Plan:

 

Ernest Elliot

Michael Fifer

Kenneth McAvoy

William McCartney

 

Tier 1-A                         The
following is a list of Participants eligible for the Special Retirement Benefit
described in Section 4.04 and Appendix C of the Plan:

 

Paul Lacourciere

 

Tier 1-T                          The
following is a list of Participants eligible for the Special Retirement Benefit
described in Section 4.04 and Appendix D of the Plan:

 

Patrick O’Keefe

 

Tier 2                                      The
following is a list of Participants eligible for benefits described in
Section 4.01 (a) of the Plan:

 

Rand Ackroyd

Stephen Banyacski

Peter Chapman

Charles Grigg

Frederic Horne

Timothy Horne

Donald Marshall

Robert McLaurin

Timothy R. Mullen

Bill D. Neimann

John Ouellette

Jerry Priest

James Riley

Michael Seigfried

Kevin Sweeney

Charles Wolley

 

18

 

APPENDIX
B

 

SPECIAL RETIREMENT BENEFIT – TIER 1

 

The following provisions
shall apply to the Participants referenced in Section 4.04 and listed in
Appendix A of the Plan:

 

A.                                    SPECIAL
NORMAL AND EARLY RETIREMENT DATE

 

For purposes of this
Appendix B, a Participant’s Special Normal Retirement Date is the first day of
the month coincident with or next following the later of the attainment of age
sixty-two (62) or the completion of five (5) Years of Service.

 

For purposes of this
Appendix B, a Participant’s Special Early Retirement Date is the first day of
the month of any month following the Participant’s attainment of age fifty-five
(55) with 5 Years of Service and prior to the Participant’s attainment of his
Special Normal Retirement Date that he elects to retire.

 

B.                                    AMOUNT
OF NORMAL OR DEFERRED RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.05, the amount of the annual Normal Retirement Benefit or
Deferred Retirement Benefit payable as a straight life annuity to a Participant
who retires under this Plan on or after his Special Normal Retirement Date
shall be the sum of (a) plus (b) offset by the amount described in (c).

 

(a)                                  2%
of Final Average Compensation times years of Benefit Service not to exceed ten
(10) years.

 

(b)                                 3%
of Final Average Compensation times years of Benefit Service in excess of ten
(10) years but not to exceed twenty (20) years.

 

(c)                                  The
annual benefit payable in the form of a straight life annuity under the
Qualified Plan.

 

19

 

In the event a
Participant is not eligible to commence receiving payments under the Qualified
Plan as of his Special Normal Retirement Date, the offset described above shall
not be made until the earliest date the Participant could elect to commence his
benefit under the Qualified Plan.

 

For purposes of this
Section B of Appendix B, “Final Average Compensation” is the same
definition as set forth in Section 2.03 except that the Participant’s
Compensation is averaged over thirty six (36) consecutive months instead of
sixty (60) consecutive months out of the Participant’s last one hundred-twenty
(120) months.  The Participant’s
Compensation used in determining his Final Average Compensation is as defined
in Section 2.01 without regard to the last paragraph of such Section.

 

C.                                    AMOUNT
OF EARLY RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.05 the amount of the annual Early Retirement Benefit of a
Participant who elects to retire before his Special Normal Retirement Date
shall be a benefit calculated in accordance with (a) or (b) below, as elected
by the Participant in accordance with the requirements of Section 6.03.

 

(a)                                  A
benefit commencing on his Special Normal Retirement Date in an amount equal to
his Normal Retirement Benefit described in Section B above.

 

(b)                                 A
reduced benefit commencing on his Special Early Retirement Date as elected by
the Participant.  Such reduced benefit
shall be the sum of the amounts determined under subsections (a) and (b) of
Section B reduced five ninths of one percent (5/9%) for each full month
that benefits commence prior to the Participant’s Special Normal Retirement
Date until age sixty (60) and five eighteenths of one percent (5/18%) for each
full month that benefits commence prior to age sixty (60), offset by the amount
described in subsection (c) of Section B.  In the event a Participant is not eligible to commence receiving
payments under his Qualified Plan as of his Special Early Retirement Date, the
offset described in the preceding sentence shall not be made until the earliest
date the Participant could commence benefits under the Qualified Plan.

 

20

 

D.                                    VESTING

 

A Participant shall be
fully vested upon the completion of five (5) years of Service.

 

E.                                      PLAN
PROVISIONS STILL APPLY

 

Except as may be modified
in this Appendix B, the regular provisions of the Plan shall continue to apply
to the extent they are not in conflict with the provisions as set forth in this
Appendix B.  

 

21

 

APPENDIX
C

 

SPECIAL RETIREMENT BENEFIT – TIER 1-A

 

The following provisions
shall apply to the Participants referenced in Section 4.04 and listed in
Appendix A of the Plan:

 

A.                                    SPECIAL
NORMAL AND EARLY RETIREMENT DATE

 

For purposes of this
Appendix C, a Participant’s Special Normal Retirement Date is the first day of
the month coincident with or next following the later of the attainment of age
sixty-two (62) or the completion of five (5) Years of Service.

 

For purposes of this
Appendix C, a Participant’s Special Early Retirement Date is the first day of
the month of any month following the Participant’s attainment of age fifty-five
(55) with 5 Years of Service and prior to the Participant’s attainment of his
Special Normal Retirement Date that he elects to retire.

 

B.                                    AMOUNT
OF NORMAL OR DEFERRED RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.05, the amount of the annual Normal Retirement Benefit or
Deferred Retirement Benefit payable as a straight life annuity to a Participant
who retires under this Plan on or after his Special Normal Retirement Date
shall be the sum of (a) plus (b) offset by the amount described in (c).

 

(a)                                  1.75%
of Final Average Compensation times years of Benefit Service not to exceed ten
(10) years.

 

(b)                                 2.25%
of Final Average Compensation times years of Benefit Service in excess of ten
(10) years but not to exceed twenty (20) years.

 

(c)                                  The
annual benefit payable in the form of a straight life annuity under the
Qualified Plan.

 

22

 

In the event a Participant
is not eligible to commence receiving payments under the Qualified Plan as of
his Special Normal Retirement Date, the offset described above shall not be
made until the earliest date the Participant could elect to commence his
benefit under the Qualified Plan.

 

For purposes of this
Section B of Appendix C, “Final Average Compensation” is the same
definition as set forth in Section 2.03 except that the Participant’s
Compensation is averaged over thirty six (36) consecutive months instead of
sixty (60) consecutive months out of the Participant’s last one hundred-twenty
(120) months.  The Participant’s
Compensation used in determining his Final Average Compensation is as defined
in Section 2.01 without regard to the last paragraph of such Section.

 

C.                                    AMOUNT
OF EARLY RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.05 the amount of the annual Early Retirement Benefit of a
Participant who elects to retire before his Special Normal Retirement Date
shall be a benefit calculated in accordance with (a) or (b) below, as elected
by the Participant in accordance with the requirements of Section 6.03.

 

(a)                                  A
benefit commencing on his Special Normal Retirement Date in an amount equal to
his Normal Retirement Benefit described in Section B above.

 

(b)                                 A
reduced benefit commencing on his Special Early Retirement Date as elected by
the Participant.  Such reduced benefit
shall be the sum of the amounts determined under subsections (a) and (b) of
Section B reduced five ninths of one percent (5/9%) for each full month
that benefits commence prior to the Participant’s Special Normal Retirement
Date until age sixty (60) and five eighteenths of one percent (5/18%) for each
full month that benefits commence prior to age sixty (60), offset by the amount
described in subsection (c) of Section B.  In the event a Participant is not eligible to commence receiving
payments under his Qualified Plan as of his Special Early Retirement Date, the
offset described in the preceding sentence shall not be made until the earliest
date the Participant could commence benefits under the Qualified Plan.

 

23

 

D.                                    VESTING

 

A
Participant shall be fully vested upon the completion of five (5) years of
Service.

 

E.                                      PLAN
PROVISIONS STILL APPLY

 

Except as may be modified
in this Appendix C, the regular provisions of the Plan shall continue to apply
to the extent they are not in conflict with the provisions as set forth in this
Appendix C.

 

24

 

APPENDIX
D

 

SPECIAL RETIREMENT BENEFIT – TIER 1-T

 

The following provisions
shall apply to the Participants referenced in Section 4.04 and listed in
Appendix A of the Plan:

 

A.                                    SPECIAL
NORMAL AND EARLY RETIREMENT DATE

 

For purposes of this
Appendix D, a Participant’s Special Normal Retirement Date is the first day of
the month coincident with or next following the later of the attainment of age
sixty-two (62) or the completion of five (5) Years of Service.

 

For purposes of this
Appendix D, a Participant’s Special Early Retirement Date is the first day of
the month of any month following the Participant’s attainment of age fifty-five
(55) with 5 Years of Service and prior to the Participant’s attainment of his
Special Normal Retirement Date that he elects to retire.

 

B.                                    AMOUNT
OF NORMAL OR DEFERRED RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.05, the amount of the annual Normal Retirement Benefit or
Deferred Retirement Benefit payable as a straight life annuity to a Participant
who retires under this Plan on or after his Special Normal Retirement Date
shall be the sum of (a) offset by the amount described in (b).

 

(a)                                  3%
of Final Average Compensation times years of Benefit Service not to exceed
sixteen and two-thirds (16-2/3) years.

 

(b)                                 The
annual benefit payable in the form of a straight life annuity under the
Qualified Plan.

 

In the event a
Participant is not eligible to commence receiving payments under the Qualified
Plan as of his Special Normal Retirement Date, the offset described above shall

 

25

 

not be made until the
earliest date the Participant could elect to commence his benefit under the
Qualified Plan.

 

For purposes of this
Section B of Appendix D, “Final Average Compensation” is the same
definition as set forth in Section 2.03 except that the Participant’s
Compensation is averaged over thirty six (36) consecutive months instead of
sixty (60) consecutive months out of the Participant’s last one hundred-twenty
(120) months.  The Participant’s Compensation
used in determining his Final Average Compensation is as defined in
Section 2.01 without regard to the last paragraph of such Section.

 

C.                                    AMOUNT
OF EARLY RETIREMENT BENEFIT

 

Subject to the provisions
of Section 4.05 the amount of the annual Early Retirement Benefit of a
Participant who elects to retire before his Special Normal Retirement Date
shall be a benefit calculated in accordance with (a) or (b) below, as elected
by the Participant in accordance with the requirements of Section 6.03.

 

(a)                                  A
benefit commencing on his Special Normal Retirement Date in an amount equal to
his Normal Retirement Benefit described in Section B above.

 

(b)                                 A
reduced benefit commencing on his Special Early Retirement Date as elected by
the Participant.  Such reduced benefit
shall be the sum of the amounts determined under subsections (a) and (b) of
Section B reduced five ninths of one percent (5/9%) for each full month
that benefits commence prior to the Participant’s Special Normal Retirement
Date until age sixty (60) and five eighteenths of one percent (5/18%) for each
full month that benefits commence prior to age sixty (60), offset by the amount
described in subsection (b) of Section B.  In the event a Participant is not eligible to commence receiving
payments under his Qualified Plan as of his Special Early Retirement Date, the
offset described in the preceding sentence shall not be made until the earliest
date the Participant could commence benefits under the Qualified Plan.

 

26

 

D.                                    VESTING

 

A Participant shall be
fully vested upon the completion of five (5) years of Service.

 

E.                                      PLAN
PROVISIONS STILL APPLY

 

Except as may be modified
in this Appendix B, the regular provisions of the Plan shall continue to apply
to the extent they are not in conflict with the provisions as set forth in this
Appendix D.

 

27Exhibit 10.1

 

EXECUTION COPY

 

$1,000,000,000 AMENDED AND RESTATED REVOLVING
LOAN FACILITY

CREDIT AGREEMENT

 

by and among

 

THE MACERICH PARTNERSHIP, L.P.,

as the Borrower

 

THE MACERICH COMPANY

as Guarantor

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

JPMORGAN CHASE BANK,

and

THE INSTITUTIONS FROM TIME TO TIME PARTY HERETO

as Lenders

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as the Administrative Agent for the Lenders

 

DEUTSCHE BANK SECURITIES INC.

and

J.P. MORGAN SECURITIES INC.,

as the Joint Lead Arrangers and Joint Bookrunning Managers

 

JPMORGAN CHASE BANK

as the Syndication Agent

 

COMMERZBANK AG, NEW YORK,

EUROHYPO AG, NEW YORK BRANCH

and

WELLS FARGO BANK, NATIONAL ASSOCIATION 

as the Co-Documentation Agents

 

KEY BANK, NATIONAL ASSOCIATION

and

U.S. BANK NATIONAL ASSOCIATION

as the Senior Managing Agents

 

Dated as of July 30, 2004

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1.

  	
  The Credits.

  	
   

  
	
   

  	
   

  	
   

  
	
  1.1.

  	
  The Commitments

  	
   

  
	
  1.2.

  	
  Loans and Borrowings

  	
   

  
	
  1.3.

  	
  Requests for Borrowings

  	
   

  
	
  1.4.

  	
  Letters of Credit

  	
   

  
	
  1.5.

  	
  Funding of Borrowings

  	
   

  
	
  1.6.

  	
  Interest Elections

  	
   

  
	
  1.7.

  	
  Termination; Reduction and Extension of the
  Commitments

  	
   

  
	
  1.8.

  	
  Manner of Payment of Loans; Evidence of
  Debt

  	
   

  
	
  1.9.

  	
  Optional Prepayment of Loans

  	
   

  
	
  1.10.

  	
  Interest

  	
   

  
	
  1.11.

  	
  Presumptions of Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
  General Provisions Regarding Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  Payments by the Borrower

  	
   

  
	
  2.2.

  	
  Pro Rata Treatment

  	
   

  
	
  2.3.

  	
  RESERVED

  	
   

  
	
  2.4.

  	
  Inability to Determine Rates

  	
   

  
	
  2.5.

  	
  Illegality

  	
   

  
	
  2.6.

  	
  Funding

  	
   

  
	
  2.7.

  	
  Increased Costs

  	
   

  
	
  2.8.

  	
  Obligation of Lenders to Mitigate;
  Replacement of Lenders

  	
   

  
	
  2.9.

  	
  Funding Indemnification

  	
   

  
	
  2.10.

  	
  Taxes

  	
   

  
	
  2.11.

  	
  Fees

  	
   

  
	
  2.12.

  	
  Default Interest

  	
   

  
	
  2.13.

  	
  Computation

  	
   

  
	
  2.14.

  	
  Application of Insufficient Payments

  	
   

  
	
  2.15.

  	
  Release of Borrowers under Existing Credit
  Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
  [RESERVED]

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  	
  Credit Support

  	
   

  
	
   

  	
   

  	
   

  
	
  4.1.

  	
  Guaranties

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
  Conditions Precedent

  	
   

  
	
   

  	
   

  	
   

  
	
  5.1.

  	
  Conditions to Initial Funding of Loans

  	
   

  
	
  5.2.

  	
  Outside Closing Date

  	
   

  
	
  5.3.

  	
  Each Credit Event

  	
   

  

 

i

 

	
  ARTICLE 6.

  	
  Representations and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  6.1.

  	
  Financial Condition

  	
   

  
	
  6.2.

  	
  No Material Adverse Effect

  	
   

  
	
  6.3.

  	
  Compliance with Laws and Agreements

  	
   

  
	
  6.4.

  	
  Organization, Powers; Authorization;
  Enforceability

  	
   

  
	
  6.5.

  	
  No Conflict

  	
   

  
	
  6.6.

  	
  No Material Litigation

  	
   

  
	
  6.7.

  	
  Taxes

  	
   

  
	
  6.8.

  	
  Investment Company Act

  	
   

  
	
  6.9.

  	
  Subsidiary Entities

  	
   

  
	
  6.10.

  	
  Federal Reserve Board Regulations

  	
   

  
	
  6.11.

  	
  ERISA Compliance

  	
   

  
	
  6.12.

  	
  Assets and Liens

  	
   

  
	
  6.13.

  	
  Securities Acts

  	
   

  
	
  6.14.

  	
  Consents, Etc.

  	
   

  
	
  6.15.

  	
  Hazardous Materials

  	
   

  
	
  6.16.

  	
  Regulated Entities

  	
   

  
	
  6.17.

  	
  Copyrights, Patents, Trademarks and
  Licenses, etc.

  	
   

  
	
  6.18.

  	
  REIT Status

  	
   

  
	
  6.19.

  	
  Insurance

  	
   

  
	
  6.20.

  	
  Full Disclosure

  	
   

  
	
  6.21.

  	
  Indebtedness

  	
   

  
	
  6.22.

  	
  Real Property

  	
   

  
	
  6.23.

  	
  Brokers

  	
   

  
	
  6.24.

  	
  No Default

  	
   

  
	
  6.25.

  	
  Solvency

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  	
  Affirmative Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  7.1.

  	
  Financial Statements

  	
   

  
	
  7.2.

  	
  Certificates; Reports; Other Information

  	
   

  
	
  7.3.

  	
  Maintenance of Existence and Properties

  	
   

  
	
  7.4.

  	
  Inspection of Property; Books and Records;
  Discussions

  	
   

  
	
  7.5.

  	
  Notices

  	
   

  
	
  7.6.

  	
  Expenses

  	
   

  
	
  7.7.

  	
  Payment of Indemnified Taxes and Other
  Taxes and Charges

  	
   

  
	
  7.8.

  	
  Insurance

  	
   

  
	
  7.9.

  	
  Hazardous Materials

  	
   

  
	
  7.10.

  	
  Compliance with Laws and Contractual
  Obligations; Payment of Taxes

  	
   

  
	
  7.11.

  	
  Further Assurances

  	
   

  
	
  7.12.

  	
  RESERVED

  	
   

  
	
  7.13.

  	
  REIT Status

  	
   

  
	
  7.14.

  	
  Use of Proceeds

  	
   

  
	
  7.15.

  	
  RESERVED

  	
   

  
	
  7.16.

  	
  RESERVED

  	
   

  
	
  7.17.

  	
  Management of Projects

  	
   

  

 

ii

 

	
  ARTICLE 8.

  	
  Negative Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  8.1.

  	
  Liens

  	
   

  
	
  8.2.

  	
  Indebtedness

  	
   

  
	
  8.3.

  	
  Fundamental Change

  	
   

  
	
  8.4.

  	
  Dispositions

  	
   

  
	
  8.5.

  	
  Investments

  	
   

  
	
  8.6.

  	
  Transactions with Partners and Affiliates

  	
   

  
	
  8.7.

  	
  Margin Regulations; Securities Laws

  	
   

  
	
  8.8.

  	
  Organizational Documents

  	
   

  
	
  8.9.

  	
  Fiscal Year

  	
   

  
	
  8.10.

  	
  Senior Management

  	
   

  
	
  8.11.

  	
  Distributions

  	
   

  
	
  8.12.

  	
  Financial Covenants of Borrower Parties

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  	
  The Agents

  	
   

  
	
   

  	
   

  	
   

  
	
  10.1.

  	
  Appointment

  	
   

  
	
  10.2.

  	
  Delegation of Duties

  	
   

  
	
  10.3.

  	
  Exculpatory Provisions

  	
   

  
	
  10.4.

  	
  Reliance by the Agents

  	
   

  
	
  10.5.

  	
  Notice of Default

  	
   

  
	
  10.6.

  	
  Non-Reliance on Agents and Other Lenders

  	
   

  
	
  10.7.

  	
  Indemnification

  	
   

  
	
  10.8.

  	
  Agents in Their Individual Capacity

  	
   

  
	
  10.9.

  	
  Successor Administrative Agent

  	
   

  
	
  10.10.

  	
  [RESERVED]

  	
   

  
	
  10.11.

  	
  Limitations on Agents Liability

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
  Miscellaneous Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  11.1.

  	
  No Assignment by the Borrower

  	
   

  
	
  11.2.

  	
  Modification

  	
   

  
	
  11.3.

  	
  Cumulative Rights; No Waiver

  	
   

  
	
  11.4.

  	
  Entire Agreement

  	
   

  
	
  11.5.

  	
  Survival

  	
   

  
	
  11.6.

  	
  Notices

  	
   

  
	
  11.7.

  	
  Governing Law

  	
   

  
	
  11.8.

  	
  Assignments, Participations, Etc.

  	
   

  
	
  11.9.

  	
  Counterparts

  	
   

  
	
  11.10.

  	
  Sharing of Payments

  	
   

  
	
  11.11.

  	
  Confidentiality

  	
   

  
	
  11.12.

  	
  Consent to Jurisdiction

  	
   

  
	
  11.13.

  	
  Waiver of Jury Trial

  	
   

  
	
  11.14.

  	
  Indemnity

  	
   

  

 

iii

 

	
  11.15.

  	
  Telephonic Instruction

  	
   

  
	
  11.16.

  	
  Marshalling; Payments Set Aside

  	
   

  
	
  11.17.

  	
  Set-off

  	
   

  
	
  11.18.

  	
  Severability

  	
   

  
	
  11.19.

  	
  No Third Parties Benefited

  	
   

  
	
  11.20.

  	
  Time

  	
   

  

 

iv

 

SCHEDULE OF ANNEXES, SCHEDULES AND
EXHIBITS

 

	
  ANNEXES:

  	
   

  
	
   

  	
   

  
	
  Annex 1

  	
  Glossary

  
	
   

  	
   

  
	
  SCHEDULES:

  	
   

  
	
   

  	
   

  
	
  Schedule 5.1(1)(J)

  	
   

  	
  Organizational Documents of Additional Persons

  
	
  Schedule 5.1(2)

  	
   

  	
  Additional Conditions Precedent for Initial Funding

  
	
  Schedule 6.6

  	
   

  	
  Material Litigation

  
	
  Schedule 6.9

  	
   

  	
  Subsidiary Entities

  
	
  Schedule 6.11

  	
   

  	
  ERISA

  
	
  Schedule 6.14

  	
   

  	
  Consents

  
	
  Schedule 6.15

  	
   

  	
  Hazardous Materials

  
	
  Schedule 6.19

  	
   

  	
  Insurance

  
	
  Schedule 6.21

  	
   

  	
  Indebtedness

  
	
  Schedule 6.22

  	
   

  	
  Schedule of Properties

  
	
  Schedule 8.1

  	
   

  	
  Additional Permitted Liens

  
	
  Schedule 8.6

  	
   

  	
  Transactions with Affiliates

  
	
  Schedule 11.6

  	
   

  	
  Addresses for Notices, Etc.

  
	
  Schedule G-1

  	
   

  	
  Initial Commitments

  
	
  Schedule G-2

  	
   

  	
  Description of Guaranties

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Borrowing Request

  
	
  Exhibit B

  	
   

  	
  Form of Letter of Credit Request

  
	
  Exhibit C

  	
   

  	
  Form of Rate Request

  
	
  Exhibit D

  	
   

  	
  Form of Supplemental Guaranty

  
	
  Exhibit E

  	
   

  	
  Form of Assignment and Acceptance Agreement

  
	
  Exhibit F

  	
   

  	
  Form of Closing Certificate

  
	
  Exhibit G

  	
   

  	
  Form of Compliance Certificate

  
	
  Exhibit H

  	
   

  	
  Form of Management Agreement

  
	
  Exhibit I

  	
   

  	
  Form of Note

  
				

 

v

 

CREDIT AGREEMENT

 

THIS AMENDED AND RESTATED CREDIT AGREEMENT (the “Agreement”) is
made and dated as of the 30th day of July, 2004, by and among THE MACERICH
PARTNERSHIP, L.P., a limited partnership organized under the laws of the state
of Delaware (“Macerich Partnership” as the “Borrower”); THE
MACERICH COMPANY, a Maryland corporation (“MAC”) AS GUARANTOR (the “Guarantor”);
THE LENDERS FROM TIME TO TIME PARTY HERETO (collectively and severally, the “Lenders”);
and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).

 

RECITALS

 

A.                                   Pursuant
to the Existing Credit Agreement (as that term and capitalized terms are
defined in, or the location of the definitions thereof referenced in, the
Glossary attached hereto as Annex I and by this reference incorporated
herein), the Existing Lenders have made $425,000,000 of revolving credit
facilities available to the Borrower and certain subsidiaries and affiliates of
the Borrower.

 

B.                                     The
Borrower has requested that the Lenders continue the outstanding amount of such
credit facilities as revolving credit facilities hereunder and make an
additional amount of revolving credit facilities available to the Borrower in
an aggregate amount of up to $1,000,000,000 at any one time outstanding and
DBTCA agrees to act as administrative agent for the benefit of the Lenders with
respect to such credit extension.

 

C.                                     The
Lenders party hereto and the Borrower have agreed to amend and restate such Existing
Credit Agreement and DBTCA has agreed to act as administrative agent on behalf
of the Lenders on the terms and subject to the conditions set forth herein and
in the other Loan Documents.

 

NOW, THEREFORE, in consideration of the above Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENT

 

ARTICLE 1.                                The
Credits.  

 

1.1.                              The Commitments.  Subject to the terms and conditions set forth herein, each Lender
severally agrees to make one or more Loans to the Borrower during the
Availability Period in an aggregate principal amount that will not result in,
after giving effect thereto, (a) such Lender’s Revolving Credit Exposure
exceeding such Lender’s Commitment or (b) the sum of the total Revolving Credit
Exposures exceeding the total Commitments. 
Within the foregoing limits and subject to the terms and conditions set
forth herein, the Borrower may borrow, prepay and re-borrow Loans.

 

1

 

1.2.                              Loans and Borrowings.

 

(1)                                  Obligations
of Lenders.  Each Loan shall be made
as part of a Borrowing consisting of Loans of the same Type made by the Lenders
ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan
required to be made by it shall not relieve any other Lender of its obligations
hereunder; provided that the Commitments of the Lenders are several and
no Lender shall be responsible for any other Lender’s failure to make Loans as
required.

 

(2)                                  Types
of Loans.  Subject to Section 2.4,
each Borrowing shall be constituted entirely of Base Rate Loans or LIBO Rate
Loans as the Borrower may request in accordance herewith.

 

(3)                                  Minimum
Amounts; Limitation on Number of Borrowings.  At the commencement of each Interest Period for any LIBO Rate
Borrowing, such Borrowing shall be in an aggregate amount of $1,000,000 or a
larger multiple of $1,000,000.  At the
time that each Base Rate Borrowing is made, such Borrowing shall be in an
aggregate amount equal to $1,000,000 or a larger multiple of $1,000,000; provided
that a Base Rate Borrowing may be in an aggregate amount that is equal to the
entire unused balance of the total Commitments or in an amount that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section 1.4(6).  Borrowings of more than one Type may be
outstanding at the same time; provided that there shall not at any time
be LIBO Rate Loans outstanding having more than twelve (12) different Interest
Periods.

 

(4)                                  Limitations
on Lengths of Interest Periods. 
Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request, or to elect to convert to or continue as a
LIBO Rate Borrowing, any Borrowing if the Interest Period requested therefore
would end after the Commitment Termination Date.

 

1.3.                              Requests for Borrowings.  To request a Borrowing, the Borrower shall
notify the Administrative Agent in writing (which notice may be by facsimile)
(a) in the case of a LIBO Rate Borrowing, not later than 1:00 p.m.
(New York time), three Business Days before the date of the proposed Borrowing
or (b) in the case of a Base Rate Borrowing, not later than 1:00 p.m.
(New York time) one Business Day before the date of the proposed
Borrowing.  Each such Borrowing Request
shall be irrevocable, shall be signed by a Responsible Officer and shall be in
the form of Exhibit A hereto. 
Each such Borrowing Request shall specify the following information in
compliance with Section 1.2:

 

(i)                                     the
aggregate amount of the requested Borrowing;

 

(ii)                                  the
date of such Borrowing, which shall be a Business Day;

 

(iii)                               whether
such Borrowing is to be a Base Rate Borrowing or a LIBO Rate Borrowing;

 

(iv)                              in
the case of a LIBO Rate Borrowing, the Interest Period therefor, which shall be
a period contemplated by the definition of the term “Interest Period” as it
relates to LIBO Rate Loans; and

 

2

 

(v)                                 the
location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 1.5.

 

If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be a Base Rate Borrowing.  If no Interest Period is specified with respect to any requested
LIBO Rate Borrowing, then the Borrower shall be deemed to have selected an
Interest Period of one month’s duration. 
Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as part of the
requested Borrowing.

 

1.4.                              Letters of Credit.

 

(1)                                  General.  Subject to the terms and conditions set
forth herein, in addition to the Loans provided for in Section 1.1,
the Borrower may request the Issuing Lender to issue Letters of Credit for its
own account or the account of any Macerich Entity in such form as is acceptable
to the Issuing Lender in its reasonable determination at any time prior to the
earlier of (i) the date that is thirty (30) days prior to the Commitment
Termination Date and (ii) the date of termination of the Commitments.  Letters of Credit issued hereunder shall
constitute utilization of the Commitments. 
All Letters of Credit issued pursuant to this Agreement must be
denominated in U.S. Dollars and must be standby letters of credit.  The only drawings permitted on the Letters
of Credit issued pursuant to this Agreement shall be sight drawings.

 

(2)                                  Notice
of Issuance, Amendment, Renewal or Extension.  Whenever it requires that a
Letter of Credit be issued, the Borrower shall give the Administrative Agent
and the Issuing Lender written notice thereof at least three (3) Business Days
(or such shorter period acceptable to the Issuing Lender) in advance of the
proposed date of issuance (which shall be a Business Day), which notice shall
be in the form of Exhibit B (each such notice being a “Letter of
Credit Request”).  Whenever the
Borrower requires an amendment, renewal or extension of any outstanding Letter
of Credit, the Borrower shall, on its letter head, give the Administrative
Agent and the Issuing Lender written notice thereof at least three (3) Business
Days (or such shorter period acceptable to the Issuing Lender) in advance of
the proposed date of the amendment (which shall be a Business Day).  Letter of Credit Requests and amendment
requests may be delivered by facsimile. 
Promptly after the issuance or amendment (including a renewal or
extension) of a Letter of Credit, the Issuing Lender shall notify the Borrower
and the Administrative Agent, in writing, of such issuance or amendment and
such notice will be accompanied by a copy of such issuance or amendment.  Upon receipt of such notice, the
Administrative Agent shall promptly notify each Lender of such issuance or
amendment and if requested to do so by any Lender, the Administrative Agent
shall provide such Lender with a copy of such issuance or amendment.

 

(3)                                  Limitations
on Amounts.  A Letter of Credit
shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Borrower shall be
deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension (i) the aggregate LC Exposure of the
Issuing Lender (determined for these purposes without giving effect to the
participations therein of the Lenders pursuant to Section 1.4(5)
below) shall not exceed $75,000,000 and (ii) the sum

 

3

 

of the total Revolving Credit Exposures shall not exceed the total
Commitments.  Each Letter of Credit
shall be in an amount of $200,000 or larger.

 

(4)                                  Expiration
Date.  Each Letter of Credit shall
expire at or prior to the close of business on the earlier of (i) the date
twelve months after the date of the issuance of such Letter of Credit or, in
the case of any renewal or extension thereof (which renewals or extensions,
subject to clause (ii) hereof, may be automatic pursuant to the terms of such
Letter of Credit), twelve months after the then-current expiration date of such
Letter of Credit and (ii) the date that is thirty days prior to the
Commitment Termination Date.

 

(5)                                  Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) by the Issuing
Lender, and without any further action on the part of the Issuing Lender or the
Lenders, the Issuing Lender hereby grants to each Lender, and each Lender
hereby acquires from the Issuing Lender, an undivided interest and
participation in such Letter of Credit equal to such Lender’s Applicable
Percentage of the aggregate amount available to be drawn under such Letter of
Credit.  Each Lender acknowledges and
agrees that its obligation to acquire participations pursuant to this
section in respect of Letters of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance
of a Potential Default or Event of Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever.

 

In consideration and in furtherance of the foregoing, each Lender
hereby absolutely and unconditionally agrees to pay to the Administrative
Agent, for account of the Issuing Lender, such Lender’s Applicable Percentage
of each LC Disbursement made by the Issuing Lender promptly upon the request
of the Issuing Lender at any time from the time of such LC Disbursement
until such LC Disbursement is reimbursed by the Borrower or at any time
after any reimbursement payment is required to be refunded to the Borrower for
any reason.   Each such payment shall be
made in the same manner as provided in Section 1.5 with respect to
Loans made by such Lender (and Section 1.5 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Issuing Lender the amounts so
received by it from the Lenders. 
Promptly following receipt by the Administrative Agent of any payment
from the Borrower pursuant to the next following paragraph, the Administrative
Agent shall distribute such payment to the Issuing Lender or, to the extent
that the Lenders have made payments pursuant to this paragraph to reimburse the
Issuing Lender, then to such Lenders and the Issuing Lender as their interests
may appear.  Any payment made by a
Lender pursuant to this paragraph to reimburse the Issuing Lender for any
LC Disbursement shall not constitute a Loan and shall not relieve the
Borrower of its obligation to reimburse such LC Disbursement.

 

(6)                                  Reimbursement.  If the Issuing Lender shall make any
LC Disbursement in respect of a Letter of Credit, the Borrower shall
reimburse the Issuing Lender in respect of such LC Disbursement by paying
to the Administrative Agent an amount equal to such LC Disbursement not
later than 1:00 p.m. (New York time) on (i) the Business Day that the
Borrower receives notice of such LC Disbursement, if such notice is
received prior to 11:00 a.m. (New York time) or (ii) the Business Day
immediately following the day that the

 

4

 

Borrower receives such notice, if such notice is not received prior to
such time; provided that, anything contained in this Agreement to
the contrary notwithstanding, (A) unless the Borrower shall have notified
Administrative Agent and such Issuing Lender prior to 1:00 P.M. (New York City
time) on the date on which the Borrower is obligated to reimburse such Issuing
Lender in respect of such LC Disbursement (the “Reimbursement Date”)
that the Borrower intends to reimburse such Issuing Lender for the amount of
such payment with funds other than the proceeds of a Base Rate Borrowing, the
Borrower shall be deemed to have delivered an irrevocable Borrowing Request to
Administrative Agent containing all of the representations set forth in Exhibit
A requesting Lenders to make Base Rate Loans on the Business Day following
the Reimbursement Date in an amount equal to the amount of the payment and (B)
subject to satisfaction or written waiver of the conditions specified in Section 1.1
and 5.3 in accordance with the terms thereof, Lenders shall, on the
Reimbursement Date, make Base Rate Loans in the amount of such payment, the
proceeds of which shall be applied directly by Administrative Agent to
reimburse such Issuing Lender for the amount of such payment; provided, further,
that no Potential Default or Event of Default shall be deemed to exist by
reason of a failure of the Borrower to reimburse such Issuing Lender pending
the making of such Loans in accordance with the terms hereof, including the
prior satisfaction or written waiver of the conditions specified in Section 1.1
and 5.3 in accordance with the terms thereof; and provided, further
that, if for any reason proceeds of Loans are not received by such Issuing
Lender on the Reimbursement Date in an amount equal to the amount of such payment,
the Borrower shall immediately reimburse such Issuing Lender, on demand, in an
amount in same day funds equal to the excess of the amount of such payment over
the aggregate amount of such Loans, if any, which are so received.  If the Borrower fails to make such
payment when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Lender’s Applicable Percentage thereof.  The Issuing Lender shall promptly notify the
Administrative Agent upon the making of each LC Disbursement.

 

(7)                                  Obligations
Absolute.  The Borrower’s obligation
to reimburse LC Disbursements as provided in Section 1.4(6)
shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit, or any term or provision therein,
(ii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent or invalid in any respect or any statement
therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Lender under a Letter of Credit against presentation of a draft or
other document that does not comply strictly with the terms of such Letter of
Credit, and (iv) any other event or circumstance whatsoever, whether or
not similar to any of the foregoing, that might, but for the provisions of this
Section, constitute a legal or equitable discharge of the Borrower’s
obligations hereunder.

 

Neither the Administrative Agent, the Lenders nor the Issuing Lender,
nor any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or amendment of any Letter of
Credit by the Issuing Lender or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of

 

5

 

technical terms or any consequence arising from causes beyond the
control of the Issuing Lender; provided that the foregoing shall not be
construed to excuse the Issuing Lender from liability to the Borrower to the
extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrower to the extent permitted by
applicable law) suffered by the Borrower that are caused by the Issuing
Lender’s gross negligence or willful misconduct (as determined by a final and
non-appealable judgment of a court of competent jurisdiction) when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof.  The parties hereto
expressly agree that:  (i) the Issuing
Lender may accept documents that appear on their face to be in substantial
compliance with the terms of a Letter of Credit without responsibility for
further investigation, regardless of any notice or information to the contrary,
and may make payment upon presentation of documents that appear on their face
to be in substantial compliance with the terms of such Letter of Credit; (ii)
the Issuing Lender shall have the right, in its sole discretion, to decline to
accept such documents and to make such payment if such documents are not in
strict compliance with the terms of such Letter of Credit; and (iii) this
sentence shall establish the standard of care to be exercised by the Issuing
Lender when determining whether drafts and other documents presented under a
Letter of Credit comply with the terms thereof (and the parties hereto hereby
waive, to the extent permitted by applicable law, any standard of care
inconsistent with the foregoing).

 

(8)                                  Disbursement
Procedures.  The Issuing Lender
shall, within a reasonable time following its receipt thereof, examine all
documents purporting to represent a demand for payment under a Letter of
Credit.  The Issuing Lender shall
promptly after such examination notify the Administrative Agent and the
Borrower by telephone (confirmed by facsimile) of such demand for payment and
whether the Issuing Lender has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such
notice shall not relieve the Borrower of its obligation to reimburse the
Issuing Lender and the Lenders with respect to any such LC Disbursement.

 

(9)                                  Interim
Interest.  If the Issuing Lender
shall make any LC Disbursement, then, unless the Borrower shall reimburse
such LC Disbursement in full on the date Borrower receives notice that
such LC Disbursement was made, the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such
LC Disbursement, at the rate per annum then applicable to Base Rate Loans;
provided that, if the Borrower fails to reimburse such
LC Disbursement within three (3) days when due pursuant to Section 1.4(6),
then Section 9.1 shall apply. 
Interest accrued pursuant to this section shall be for account of
the Issuing Lender, except that a pro rata portion of the interest accrued on
and after the date of payment by any Lender pursuant to Section 1.4(5)
of this Section to reimburse the Issuing Lender shall be for account of
such Lender to the extent of such payment.

 

(10)                            Replacement
of the Issuing Lender.  The Issuing
Lender may be replaced at any time by written agreement between the Borrower,
the Administrative Agent, the replaced Issuing Lender and the successor Issuing
Lender.  The Administrative Agent shall
notify the Lenders of any such replacement of the Issuing Lender.  From and after the effective date of any
such replacement, (i) the successor Issuing Lender shall have all the
rights and obligations of the replaced Issuing Lender under this Agreement with
respect to Letters of Credit

 

6

 

to be issued thereafter and (ii) references herein to the term
“Issuing Lender” shall be deemed to refer to such successor or to any previous
Issuing Lender, or to such successor and all previous Issuing Lenders, as the
context shall require.  After the
replacement of an Issuing Lender hereunder, the replaced Issuing Lender shall
remain a party hereto and shall continue to have all the rights and obligations
of an Issuing Lender under this Agreement with respect to Letters of Credit
issued by it prior to such replacement, but shall not be required to issue
additional Letters of Credit.

 

(11)                            Cash
Collateralization.

 

(A)                              If an Event of Default shall occur
and be continuing and the Borrower receives notice from the Administrative
Agent or the Required Lenders (or, if the maturity of the Loans has been
accelerated, Lenders with LC Exposure representing more than 50% of the
total LC Exposure) demanding the deposit of cash collateral pursuant to
this paragraph, the Borrower shall immediately deposit into an account (the “LC
Collateral Account”) established by the Administrative Agent an amount in
cash equal to the LC Exposure with respect to the Borrower as of such date
plus any accrued and unpaid interest thereon; provided that the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower or any Consolidated Entities described in Section 9.7.  Such deposit shall be held by the
Administrative Agent in the LC Collateral Account as collateral in the first
instance for the LC Exposure with respect to the Borrower under this
Agreement and thereafter for the payment of the other Obligations of the
Borrower.

 

(B)                                The LC Collateral Account shall be
maintained in the name of the Administrative Agent (on behalf of the Lenders) and
under its sole dominion and control at such place as shall be designated by the
Administrative Agent.  Interest shall
accrue on the LC Collateral Account at a rate equal to the Federal Funds Rate minus
..15%.

 

(C)                                The Borrower hereby pledges, assigns
and grants to the Administrative Agent, as administrative agent for its benefit
and the ratable benefit of the Lenders a lien on and a security interest in,
the following collateral (the “Letter of Credit Collateral”):

 

(i)                                     the
LC Collateral Account, all cash deposited therein and all certificates and
instruments, if any, from time to time representing or evidencing the LC
Collateral Account;

 

(ii)                                  all
notes, certificates of deposit and other cash-equivalent instruments from time
to time hereafter delivered to or otherwise possessed by the Administrative
Agent for or on behalf of the Borrower in substitution for or in respect of any
or all of the then existing Letter of Credit Collateral;

 

(iii)                               all
interest, dividends, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of the then existing Letter of Credit Collateral; and

 

7

 

(iv)                              to
the extent not covered by the above clauses, all proceeds of any or all of the
foregoing Letter of Credit Collateral.

 

The lien and security interest granted hereby secures the payment of
all obligations of the Borrower now or hereafter existing hereunder and under
any other Loan Document.

 

(D)                               Neither the Borrower nor any Person
claiming or acting on behalf of or through the Borrower shall have any
right to withdraw any of the funds held in the LC Collateral Account, except as
provided in Section 1.4(11)(G).

 

(E)                                 The Borrower agrees that it will not
(i) sell or otherwise dispose of any interest in the Letter of Credit
Collateral or (ii) create or permit to exist any lien, security interest or
other charge or encumbrance upon or with respect to any of the Letter of Credit
Collateral, except for the security interest created by this Section 1.4(11).

 

(F)                                 At any time an Event of Default
shall be continuing:

 

(i)                                     The
Administrative Agent may, in its sole discretion, without notice to the
Borrower except as required by law and at any time from time to time, charge,
set off or otherwise apply all or any part of the LC Collateral Account to first,
the aggregate amount of LC Disbursements that have not been reimbursed by the
Borrower and second, any other unpaid Obligations then due and payable,
in such order as the Administrative Agent shall elect.  The rights of the Administrative Agent under
this Section 1.4(11) are in addition to any rights and remedies
which any Lender may have.

 

(ii)                                  The
Administrative Agent may also exercise, in its sole discretion, in respect of
the LC Collateral Account, in addition to the other rights and remedies
provided herein or otherwise available to it, all the rights and remedies of a
secured party upon default under the UCC in effect in the State of New York at
that time.

 

(G)                                At such time as all Events of
Default have been cured or waived in writing and there are no unreimbursed LC
Disbursements outstanding, all amounts remaining in the Letter of Credit
Collateral Account shall be promptly returned to the Borrower.  Any surplus of the funds held in the Letter
of Credit Collateral Account remaining after payment in full of all of the
Obligations, the termination of the Commitments and the return of all
outstanding Letters of Credit shall be paid to the Borrower or to whomsoever
may be lawfully entitled to receive such surplus.

 

1.5.                              Funding of Borrowings.

 

(1)                                  Funding
by Lenders.  Each Lender shall make
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds to the Administrative Agent at the
Contact Office, ABA 021-001-033 for the Administrative Agent’s Account
No. 99-401-268, Ref:  Macerich
Partnership, no later than 12:00 p.m. (New York time).  The Administrative Agent will make such
Loans available to the Borrower pursuant to the terms and conditions hereof by
promptly crediting the amounts so received, in like funds, to an account of the
Borrower maintained with the Administrative Agent

 

8

 

in New York City and designated by the Borrower in the applicable
Borrowing Request; provided that Base Rate Borrowings made to finance
the reimbursement of an LC Disbursement as provided in Section 1.4(6)
shall be remitted by the Administrative Agent to the Issuing Lender.

 

(2)                                  Presumption
by the Administrative Agent.  Unless
the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with Section 1.5(1) and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact
made its share of the applicable Borrowing available to the Administrative
Agent, then the applicable Lender and the Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available
to the Borrower to but excluding the date of payment to the Administrative
Agent, at (i) in the case of such Lender, the Federal Funds Rate or
(ii) in the case of the Borrower, the interest rate applicable to Base
Rate Loans (it being intended that such interest payment shall be the only
interest payment payable by the Borrower with respect to any amount repaid by
the Borrower to the Administrative Agent in accordance with this paragraph,
except that Section 2.12 shall apply if the Borrower fails to make
such repayment within three (3) days after the date of such payment as required
hereunder).  If such Lender pays such
amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing.

 

(3)                                  Defaulting
Lenders.  Notwithstanding anything
to the contrary contained in this Agreement, including Section 11.2, until
a Defaulting Lender cures its failure to fund its Defaulted Advance: (A) with
respect to any payments to be allocated among the Lenders, the Applicable
Percentage of the Lenders shall be reallocated by deducting from Defaulting
Lender’s Commitment (and the aggregate Commitments) an amount equal to the
Defaulted Advance; (B) all payments received by the Administrative Agent from
the Borrower in respect of sums owed to any Defaulting Lender, shall be
subordinated to the payment in full of all sums then due all other Lenders and
Agent; (C) for purposes of voting or consenting to matters with respect to the
Loan Documents and determining Applicable Percentages, such Defaulting Lender
shall be deemed not to be a “Lender” and there shall be excluded from the
determination of Required Lenders the Revolving Credit Exposure and the Unused
Commitment of such Defaulting Lender at such time; (D) such Defaulting Lender
shall not be entitled to any portion of the Unused Line Fee; (E) the Unused
Line Fee shall accrue in favor of the Lenders which have funded their
respective Applicable Percentages of such requested Borrowing (including, to
the extent it has funded a Loan in respect of the Defaulting Lender as provided
in Section 1.5(2) above, the Administrative Agent) and shall be allocated
among such performing Lenders (or, as applicable, the Administrative Agent)
ratably based upon their respective Commitments  (including, as applicable, any Loan made by the Administrative
Agent as provided in Section 1.5(2) above); and (F) any Defaulted Advance
shall not be deducted from such Defaulting Lender’s Commitment for purpose of
determining the Applicable Percentage of the Lenders for purposes of
determining the ratable indemnification obligations of the Lenders pursuant to
Section 10.7.  The terms of this
Section shall not be construed to increase or

 

9

 

otherwise affect the Commitment of any Lender, or relieve or excuse the
performance by the Borrower of its duties and obligations hereunder.

 

(4) Removal of Defaulting Lender.  At the Borrower’s request, the Administrative Agent or an
Eligible Assignee reasonably acceptable to the Administrative Agent shall have
the right (but not the obligation) to purchase from any Defaulting Lender, and
each Defaulting Lender shall, upon such request, sell and assign to the
Administrative Agent or such Eligible Assignee, all of the Defaulting Lender’s
outstanding Commitments and Loans hereunder. 
Such sale shall be consummated promptly after the Administrative Agent
has arranged for a purchase by the Administrative Agent or an Eligible Assignee
pursuant to an Assignment and Acceptance, and at a price equal to the
outstanding principal balance of the Defaulting Lender’s Loans, plus accrued
interest (to the extent not subordinated pursuant to Section 1.5(3) above),
without premium or discount.

 

1.6.                              Interest Elections.

 

(1)                                  Elections
by the Borrower for Borrowings. 
Each Borrowing initially shall be of the Type specified in the
applicable Borrowing Request and, in the case of a LIBO Rate Borrowing, shall
have an initial Interest Period as specified in such Borrowing Request (which
shall be a period contemplated by the definition of the term “Interest
Period”).  Thereafter, the Borrower may
elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a LIBO Rate Borrowing, may elect Interest Periods
therefor, all as provided in this Section; provided, however, any
conversion or continuation of LIBO Rate Loans shall be subject to the
provisions of Sections 1.2(3) and (4).  The Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing in accordance with such Lender’s Applicable Percentage and the Loans
comprising each such portion shall be considered a separate Borrowing.

 

(2)                                  Notice
of Elections.  To make an election
pursuant to this Section, the Borrower shall notify the Administrative Agent in
writing of such election (which notice may be by facsimile) by the time that a
Borrowing Request would be required under Section 1.3 if the
Borrower was requesting a Borrowing of the Type resulting from such election to
be made on the effective date of such election.  Each such Rate Request shall be irrevocable, shall be  signed by a Responsible Officer and shall be
in the form of Exhibit C hereto.

 

(3)                                  Information
in Interest Election Requests.  Each
Rate Request shall specify the following information in compliance with Section 1.2:

 

(i)                                     the Borrowing to
which such Rate Request  applies
and, if different options are being elected with respect to different portions
thereof, the portions thereof to be allocated to each resulting Borrowing (in
which case the information to be specified pursuant to clauses (iii)
and (iv) of this section shall be specified for each resulting
Borrowing);

 

(ii)                                  the effective date of
the election made pursuant to such Rate Request, which shall be a Business Day;

 

10

 

(iii)                               whether the resulting
Borrowing is to be a Base Rate Borrowing or a LIBO Rate Borrowing; and

 

(iv)                              if the resulting
Borrowing is a LIBO Rate Borrowing, the Interest Period to be applicable
thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

 

If any such Rate Request requests a LIBO Rate Borrowing but does not
specify an Interest Period, then the Borrower shall be deemed to have selected
an Interest Period of one month’s duration.

 

(4)                                  Notice
by the Administrative Agent to Lenders. 
Promptly following receipt of a Rate Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender’s portion of
each resulting Borrowing.

 

(5)                                  Failure
to Elect; Potential Default and Events of Default.  If the Borrower fails to deliver a timely
Rate Request with respect to a LIBO Rate Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to a Base Rate Borrowing. 
Notwithstanding any contrary provision hereof, if a Potential Default or
an Event of Default has occurred and is continuing on the day occurring three
Eurodollar Business Days prior to the date of, or on the date of, the requested
funding, continuation or conversion, then, so long as a Potential Default or an
Event of Default is continuing (i) no outstanding Borrowing may be
converted to or continued as a LIBO Rate Borrowing and (ii) unless repaid,
each LIBO Rate Borrowing shall be converted to a Base Rate Borrowing at the end
of the Interest Period applicable thereto.

 

1.7.                              Termination; Reduction and
Extension of the Commitments.

 

(1)                                  Scheduled
Termination.  Unless previously
terminated, or extended pursuant to Section 1.7(5) below, the
Commitments shall terminate at 5:00 p.m., New York City time, on the
Commitment Termination Date.

 

(2)                                  Voluntary
Termination or Reduction.  The
Borrower may at any time terminate, or from time to time reduce, the
Commitments; provided that (i) each reduction of the Commitments
shall be in an amount that is $5,000,000 or a larger multiple of $1,000,000 and
(ii) the Borrower shall not terminate or reduce the Commitments if, after
giving effect to any concurrent prepayment of the Loans in accordance with Section 1.9,
the total Revolving Credit Exposures would exceed the total Commitments.

 

(3)                                  Notice
of Voluntary Termination or Reduction. 
The Borrower shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under Section 1.7(2) above at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice,
the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower
pursuant to this Section shall be irrevocable; provided that a
notice of termination of the Commitments delivered by the Borrower may state
that such notice is conditioned upon the effectiveness of other credit
facilities, in which

 

11

 

case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied.

 

(4)                                  Effect
of Termination or Reduction.  Any
termination or reduction of the Commitments shall be permanent.  Each reduction of the Commitments shall be
made ratably among the Lenders in accordance with their respective Commitments.

 

(5)                                  Extension
of Commitment Termination Date.

 

(A)                              Provided that no Potential Default or Event
of Default shall have occurred and be continuing, the Borrower shall have the
option, to be exercised by giving written notice to the Administrative Agent at
least thirty (30) days (but no more than ninety (90) days) prior to the
Original Commitment Termination Date, subject to the terms and conditions set
forth in this Agreement, to extend the Original Commitment Termination Date by
twelve (12) months to July 30, 2008 (the “Extended Commitment
Termination Date”).  The request by
the Borrower for the extension of the Original Commitment Termination Date
shall constitute a representation and warranty by the Borrower Parties that no
Potential Default or Event of Default then exists and that all of the
conditions set forth in Section 1.7(5)(B) below shall have been
satisfied on the Original Commitment Termination Date.

 

(B)                                The obligations of the Administrative
Agent and the Lenders to extend the Original Commitment Termination Date as
provided in Section 1.7(5)(A) shall be subject to the prior
satisfaction of each of the following conditions precedent as determined by the
Administrative Agent in its good faith judgment:  (A) on the Original Commitment Termination Date there shall exist
no Potential Default or Event of Default; (B) the Borrower shall have paid to
the Administrative Agent for the ratable benefit of the Lenders an extension
fee (the “Extension Fee”) equal to one-quarter of one percent (0.25%) of
the total Commitments then outstanding (which fee the Borrower hereby agrees
shall be fully earned and nonrefundable under any circumstances when paid); (C)
the representations and warranties made by the Borrower Parties in the Loan
Documents shall have been true and correct in all material respects when made
and shall also be true and correct in all material respects on the Original
Commitment Termination Date (provided, however, that any factual
matters disclosed in the Schedules referenced in Article 6 shall be
subject to update in accordance with clause (D) below); (D) the Borrower
Parties shall have delivered updates to the Administrative Agent of all the
Schedules set forth in Article 6 hereof and such updated Schedules
shall be acceptable to Administrative Agent in its reasonable judgment; (E) the
Borrower shall have delivered to the Administrative Agent a Compliance
Certificate demonstrating that MAC and the Borrower are in compliance with the
covenants set forth in Article 8; (F) the Borrower shall have paid
all reasonable out-of-pocket costs and expenses incurred by the Administrative
Agent and all reasonable fees and expenses paid to third party consultants
(including reasonable attorneys’ fees and expenses) by Administrative Agent in
connection with such extension; and (G) the Guarantors shall have acknowledged
and ratified that their obligations under the Guaranties remain in full force
and effect, and continue to guaranty the Obligations under the Loan Documents,
as extended.

 

12

 

(C)                                The Administrative Agent shall
notify each of the Lenders in the event that the Borrower requests that the
Original Commitment Termination Date be extended as provided in this Section 1.7(5)
and upon any such extension.

 

1.8.                              Manner of Payment of Loans;
Evidence of Debt.

 

(1)                                  Repayment.  Subject to any earlier acceleration of the
Loans following an Event of Default, the Borrower hereby unconditionally
promises to pay to the Administrative Agent for account of the Lenders the
outstanding principal amount of the Loans on the Commitment Termination Date.

 

(2)                                  Manner
of Payment.  The Borrower shall
notify the Administrative Agent in writing (which notice may be by facsimile)
of any repayment or prepayment hereunder (i) in the case of repayment or
prepayment of a LIBO Rate Borrowing with an Interest Period not expiring on the
date of payment, not later than 1:00 p.m. (New York time) three Business
Days before the date of repayment or prepayment, or (ii) in the case of
repayment or prepayment of a LIBO Rate Borrowing with Interest Periods expiring
on the date of repayment or prepayment or a Base Rate Borrowing, not later than
1:00 p.m. (New York time) one Business Day before the date of repayment or
prepayment.  Each such notice shall be
irrevocable and shall specify the repayment or prepayment date and the
principal amount of each Borrowing or portion thereof to be repaid or prepaid; provided
that, if a notice of repayment or prepayment is given in connection with a
conditional notice of termination of the Commitments as contemplated by Section 1.7,
then such notice of repayment or prepayment may be revoked if such notice of
termination is revoked in accordance with Section 1.7.  Promptly following receipt of any such
notice relating to a Borrowing, the Administrative Agent shall advise the
Lenders of the contents thereof.  Each
repayment or prepayment of a Borrowing shall be applied ratably to the Loans
included in the repaid or prepaid Borrowing. 
Repayments and prepayments shall be accompanied by (A) accrued interest
to the extent required by Section 1.10 and (B) any payments due
pursuant to Section 2.9.  If
the Borrower fails to make a timely selection of the Borrowing or Borrowings to
be repaid or prepaid, such payment shall be applied, first, to pay any
outstanding Base Rate Borrowings and, second, to other Borrowings in the order
of the remaining duration of their respective Interest Periods (the Borrowing
with the shortest remaining Interest Period to be repaid first).

 

(3)                                  Maintenance
of Loan Accounts by Lenders.  Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to such Lender resulting
from each Loan made by such Lender, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder.

 

(4)                                  Maintenance
of Loan Accounts by the Administrative Agent.  The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Type thereof
and the Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received
by the Administrative Agent hereunder for the account of the Lenders and each
Lender’s share thereof.

 

13

 

(5)                                  Effect
of Entries.  The entries made in the
accounts maintained pursuant to Sections 1.8 (3) and (4) above
shall be prima facie evidence of the existence and amounts of the obligations
recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not
in any manner affect the obligation of the Borrower to repay the Loans in
accordance with the terms of this Agreement.

 

(6)                                  Promissory
Notes.  Upon the request of a
Lender, the Borrower shall promptly execute and deliver to such Lender a Note
evidencing such Lender’s Commitment.

 

1.9.                              Optional Prepayment of Loans.  The Borrower shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject
to the requirements of this Section; provided, however, that
voluntary prepayments (other than a prepayment in whole) shall be in the
minimum amount of $1,000,000 and integral multiples of $100,000 in excess
thereof.

 

1.10.                        Interest.

 

(1)                                  Base
Rate Loans.  The Loans comprising
each Base Rate Borrowing shall bear interest at a rate per annum equal to the
Applicable Base Rate.

 

(2)                                  LIBO
Rate Loans.  The Loans constituting
each LIBO Rate Borrowing shall bear interest at a rate per annum equal to the
Applicable LIBO Rate for the Interest Period for such Borrowing.

 

(3)                                  Payment
of Interest.

 

(A)                              The Borrower shall pay interest on
Base Rate Borrowings monthly, in arrears, on the last Business Day of each
calendar month, as set forth on an interest billing delivered by the
Administrative Agent to the Borrower (which delivery may be by facsimile
transmission) no later than 1:00 p.m. (New York time) on a date at least one
Business Day prior to the date such interest is due.

 

(B)                                The Borrower shall pay interest on
the LIBO Rate Borrowings on the last day of the applicable Interest Period or,
in the case of LIBO Rate Borrowings with an Interest Period ending later than
three months after the date funded, converted or continued, at the end of each
three month period from the date funded, converted or continued and on the last
day of the applicable Interest Period, as set forth on an interest billing
delivered by the Administrative Agent to the Borrower (which delivery may be by
facsimile transmission) no later than 1:00 p.m. (New York time) on a date at
least one Business Day prior to the date such interest is due.

 

1.11.                        Presumptions of Payment.  Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders or the Issuing
Lender hereunder that the Borrower will not make such payment, the
Administrative Agent may assume that the Borrower has made such payment on such
date in accordance herewith and may, in reliance upon such

 

14

 

assumption, distribute to the Lenders or the Issuing Lender, as the
case may be, the amount due.  In such
event, if the Borrower has not in fact made such payment, then each of the
Lenders or the Issuing Lender, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender or the Issuing Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the Federal Funds Rate.

 

ARTICLE 2.                                General Provisions Regarding
Payments.

 

2.1.                              Payments by the Borrower.  The Borrower shall make each payment
required to be made by it hereunder (whether of principal, interest or fees or
reimbursement of LC Disbursements, or under Section 2.7, 2.9
or 2.10, or otherwise) or under any other Loan Document (except to the
extent otherwise provided therein) prior to 1:00 p.m. (New York time) (unless
otherwise specified in this Agreement), on the date when due, in immediately
available funds, without set-off or counterclaim; provided that if a new
Loan is to be made by any Lender on a date the Borrower is to repay any
principal of an outstanding Loan of such Lender, such Lender shall apply the
proceeds of such new Loan to the payment of the principal to be repaid and only
an amount equal to the difference between the principal to be borrowed and the
principal to be repaid shall be made available by such Lender to the
Administrative Agent as provided in Section 1.5 or paid by the
Borrower to the Administrative Agent pursuant to this paragraph, as the case
may be.  Any amounts received after such
time on any date may, in the discretion of the Administrative Agent, be deemed
to have been received on the next succeeding Business Day for purposes of
calculating interest thereon.  All such
payments shall be wired to the Administrative Agent at the Contact Office,
ABA 021-001-033 for the Administrative Agent’s Account
No. 99-401-268, Ref:  Macerich
Partnership, except as otherwise expressly provided in the relevant Loan
Document, and except payments to be made directly to the Issuing Lender as
expressly provided herein and except that payments pursuant to Sections 2.7,
2.9, 2.10 and 11.14 shall be made directly to the Persons
entitled thereto.  The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt
thereof.  If any payment hereunder shall
be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day and, in the case of any payment
accruing interest, interest thereon shall be payable for the period of such
extension.  All payments hereunder or
under any other Loan Document (except to the extent otherwise provided therein)
shall be made in Dollars.

 

2.2.                              Pro Rata Treatment.  Except to the extent otherwise provided
herein:  (i) each Borrowing shall
be made from the Lenders, each payment of the Unused Line Fee under Section 2.11
shall be made for account of the Lenders, and each termination or reduction of
the amount of the Commitments under Section 1.7 shall be applied to
the respective Commitments of the Lenders, pro rata according to the amounts of
their respective Commitments; (ii) each Borrowing shall be allocated pro
rata among the Lenders according to the amounts of their respective Commitments
(in the case of the making of Loans) or their respective Loans (in the case of
conversions and continuations of Loans); (iii) each payment or prepayment
of principal of Loans by the Borrower shall be made for account of the Lenders
pro rata in accordance with the respective unpaid principal amounts of the
Loans held by them; and (iv) each payment of interest on Loans by the
Borrower shall be made for account of the Lenders pro rata in

 

15

 

accordance with the amounts of interest on such Loans then due and
payable to the respective Lenders.

 

2.3.                              RESERVED

 

2.4.                              Inability to Determine Rates.  In the event that the Administrative Agent
shall have reasonably determined (which determination shall be conclusive and
binding upon the Borrower) that by reason of circumstances affecting the
interbank market adequate and reasonable means do not exist for ascertaining
the LIBO Rate for any Interest Period, the Administrative Agent shall forthwith
give telephonic notice of such determination to each Lender and to the
Borrower.  If such notice is given:  (1) no portion of the Loans may be
funded as a LIBO Rate Borrowing, (2) any Base Rate Borrowing that was to have
been converted to a LIBO Rate Borrowing shall, subject to the provisions
hereof, be continued as a Base Rate Borrowing, and (3) any outstanding LIBO
Rate Borrowing shall be converted, on the last day of the Interest Period
applicable thereto, to a Base Rate Borrowing. 
Until such notice has been withdrawn by the Administrative Agent, the
Borrower shall not have the right to convert any Base Rate Borrowing to a LIBO
Rate Borrowing or to continue a LIBO Rate Borrowing as such.  The Administrative Agent shall withdraw such
notice in the event that the circumstances giving rise thereto no longer
pertain and that adequate and reasonable means exist for ascertaining the LIBO
Rate for the Interest Period requested by the Borrower, and, following
withdrawal of such notice by the Administrative Agent, the Borrower shall have
the right to convert any Base Rate Borrowing to a LIBO Rate Borrowing and to
continue any LIBO Rate Borrowing as such in accordance with the terms and
conditions of this Agreement.

 

2.5.                              Illegality. 
Notwithstanding any other provisions herein, if any law, regulation,
treaty or directive issued by any Governmental Authority or any change therein
or in the interpretation or application thereof, shall make it unlawful for any
Lender to maintain LIBO Rate Loans as contemplated by this Agreement:  (1) the commitment of such Lender
hereunder to continue LIBO Rate Loans or to convert Base Rate Loans to LIBO
Rate Loans shall forthwith be cancelled, and (2) LIBO Rate Loans held by
such Lender then outstanding, if any, shall be converted automatically to Base
Rate Loans at the end of their respective Interest Periods or within such
earlier period as may be required by law. 
In the event of a conversion of any LIBO Rate Loan prior to the end of
its applicable Interest Period, the Borrower hereby agrees promptly to pay any
Lender affected thereby, upon demand, the amounts required pursuant to Section 2.9
below, it being agreed and understood that such conversion shall constitute a
prepayment for all purposes of this Section 2.5.  The provisions hereof shall survive the
termination of this Agreement and payment of all other Obligations.

 

2.6.                              Funding. 
Each Lender shall be entitled to fund all or any portion of its
Commitment to make Loans in any manner it may determine in its sole discretion,
including, without limitation, in the Grand Cayman inter-bank market, the
London inter-bank market and within the United States, but all calculations and
transactions hereunder shall be conducted as though all Lenders actually fund
all LIBO Rate Loans through the purchase of offshore dollar deposits in the
amount of such Lender’s Commitment of the relevant LIBO Rate Loan with a
maturity corresponding to the applicable Interest Period.

 

16

 

2.7.                              Increased Costs.

 

(1)                                  In the event that any applicable
law, order, regulation, treaty or directive issued by any central bank or other
Governmental Authority, agency or instrumentality or in the governmental or
judicial interpretation or application thereof, or compliance by any Lender or
the Issuing Lender with any request or directive (whether or not having the
force of law) issued by any central bank or other Governmental Authority,
agency or instrumentality:

 

(A)                              Does or shall subject any Lender or
the Issuing Lender to any Taxes of any kind whatsoever with respect to this
Agreement or any Loan, or change the basis of determining the Taxes imposed on
payments to such Lender or the Issuing Lender of principal, fee, interest or
any other amount payable hereunder (except for change in the rate of tax on the
overall net income of such Lender or Issuing Lender);

 

(B)                                Does or shall impose, modify or hold
applicable any reserve, capital requirement, special deposit, compulsory loan
or similar requirements against assets held by, or deposits or other
liabilities in or for the account of, advances or loans by, or other credit
extended by, or any other acquisition of funds by, any  office of such Lender or the Issuing Lender
which are not otherwise included in the determination of interest payable on
the Obligations; or

 

(C)                                Does or shall impose on such Lender
or Issuing Lender any other condition;

 

and the result of any of the foregoing is to
increase the cost to such Lender or Issuing Lender of making, renewing or
maintaining its Commitment or its Revolving Credit Exposure or to increase the
cost of such Lender or the Issuing Lender of participating in, issuing or
maintaining any Letter of Credit or to reduce any amount receivable in respect
thereof or the rate of return on the capital of such Lender or the Issuing
Lender or any corporation controlling such Lender or the Issuing Lender, then,
in any such case, the Borrower shall, without duplication of amounts payable
pursuant to Section 2.10, promptly pay to such Lender or Issuing
Lender, upon its written demand made through the Administrative Agent, any
additional amounts necessary to compensate such Lender or the Issuing Lender
for such additional cost or reduced amounts receivable or rate of return as
determined by such Lender or Issuing Lender with respect to this Agreement or
such Lender’s or Issuing Lender’s Commitment, its Revolving Credit Exposure or
Letter of Credit obligations, so long as such Lender or Issuing Lender require
substantially all obligors under other commitments of this type made available
by such Lender or Issuing Lender to similarly so compensate such Lender or
Issuing Lender.

 

(2)                                  If a Lender or the Issuing Lender
become entitled to claim any additional amounts pursuant to this Section 2.7,
it shall promptly notify the Borrower of the event by reason of which it has
become so entitled.  A certificate as to
any additional amounts so claimed payable containing the calculation thereof in
reasonable detail submitted by a Lender or the Issuing Lender to the Borrower,
accompanied by a certification that such Lender or Issuing Lender has required
substantially all obligors under other commitments of this type made available
by such Lender or Issuing Lender to similarly so compensate such Lender or
Issuing Lender, shall constitute prima facie evidence thereof; provided
that the Borrower shall not be

 

17

 

required
to compensate a Lender or the Issuing Lender pursuant to this Section 2.7
for any increased cost or reduction in respect of a period occurring more than
six months prior to the date that such Lender or Issuing Lender notifies the
Borrower of such Lender’s intention to claim compensation therefor unless the
circumstances giving rise to such increased cost or reduction became applicable
retroactively, in which case no such time limitation shall apply so long as
such Lender requests compensation within six months from the date such
circumstances become applicable.

 

(3)                                  Other than as set forth in this Section 2.7,
the failure or delay on the part of any Lender or Issuing Lender to demand
compensation pursuant to this Section 2.7 shall not constitute a
waiver of such Lender’s or Issuing Lender’s right to demand such
compensation.  The provisions of this Section 2.7
shall survive the termination of this Agreement and payment of the Loans and
all other Obligations.

 

2.8.                              Obligation of Lenders to
Mitigate; Replacement of Lenders.  Each Lender agrees that:

 

(1)                                  As promptly as reasonably
practicable after the officer of such Lender responsible for administering such
Lender’s Commitment becomes aware of any event or condition that would entitle
such Lender to receive payments under Section 2.7 above or Section 2.10
below or to cease maintaining LIBO Rate Loans under Section 2.5
above, such Lender will use reasonable efforts:  (i) to maintain its Commitment and Revolving Credit Exposure
through another lending office of such Lender or (ii) take such other measures
as such Lender may deem reasonable, if as a result thereof the additional
amounts which would otherwise be required to be paid to such Lender pursuant to
Section 2.7 above or pursuant to Section 2.10 below
would be materially reduced or eliminated or the conditions rendering such
Lender incapable of maintaining LIBO Rate Loans under Section 2.5
above no longer would be applicable, and if, as determined by such Lender in
its sole discretion, the maintaining of such LIBO Rate Loans through such other
lending office or in accordance with such other measures, as the case may be,
would not otherwise materially adversely affect such LIBO Rate Loans or the
interests of such Lender.

 

(2)                                  If the Borrower receives a notice
pursuant to Section 2.7 above or pursuant to Section 2.10
below or a notice pursuant to Section 2.5 above stating that a
Lender is unable to maintain LIBO Rate Loans (for reasons not generally
applicable to the Required Lenders), so long as (i) no Potential Default or
Event of Default shall have occurred and be continuing, (ii) the Borrower has
obtained a commitment from another Lender or an Eligible Assignee to purchase
at par such Lender’s Commitment, its Revolving Loan Exposure at such time and
accrued interest and fees and to assume all obligations of the Lender to be
replaced under the Loan Documents and (iii) such Lender to be replaced is
unwilling to withdraw the notice delivered to the Borrower, upon thirty (30)
days’ prior written notice to such Lender and the Administrative Agent, the
Borrower may require, at the Borrower’s expense, the Lender giving such notice
to assign, without recourse, all of its Commitment, Revolving Loan Exposure and
accrued interest and fees to such other Lender or Eligible Assignee pursuant to
the provisions of Section 11.8 below.

 

18

 

2.9.                              Funding Indemnification.  In the event of (a) the payment of any
principal of any LIBO Rate Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default),
(b) the conversion of any LIBO Rate Loan other than on the last day of the
Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice is permitted to be revocable
under Section 1.8(2) and is revoked in accordance herewith), or (d)
the assignment of any LIBO Rate Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.8(2),
then, in any such event, the Borrower shall compensate each Lender for the
loss, cost and expense attributable to such event.  In the case of a LIBO Rate Loan, the loss to any Lender
attributable to any such event shall be deemed to include an amount determined
by such Lender to be equal to the excess, if any, of (i) the amount of
interest that such Lender would have accrued on the principal amount of such
Loan for the period from the date of such payment, conversion, failure or
assignment to the last day of the then current Interest Period for such Loan
(or, in the case of a failure to borrow, convert or continue, the duration of
the Interest Period that would have resulted from such borrowing, conversion or
continuation) if the interest rate payable on such deposit were equal to the
Reserve Adjusted LIBO Rate for such Interest Period, over (ii) the
amount of interest that such Lender would earn on such principal amount for
such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an affiliate of such
Lender) for dollar deposits from other banks in the eurodollar market at the
commencement of such period.  A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the
amount shown as due on any such certificate within 10 days after receipt
thereof.

 

2.10.                        Taxes.

 

(1)                                  Any and all payments by or on
account of any obligation of the Borrower hereunder or under any other Loan
Document shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided that if the Borrower shall be
required to deduct any Indemnified Taxes or Other Taxes from such payments,
then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.10) the Administrative Agent,
Lender or Issuing Lender (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions and (iii) the Borrower shall pay the
full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

 

(2)                                  In addition, the Borrower shall pay
any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

 

(3)                                  The Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Lender, within ten (10)
Business Days after written demand therefore, for the full amount of any
Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes
imposed or asserted on or attributable to amounts payable under this Section 2.10)
paid by the Administrative Agent, such Lender or such Issuing Lender, as the
case may be, and any

 

19

 

penalties,
interest (except to the extent such penalties and/or interest arise as a result
of a Lender’s or Issuing Lender’s delay in dealing with any such Indemnified
Tax) and reasonable expenses arising therefrom or with respect thereto, whether
or not such Indemnified Taxes or Other Taxes were correctly or legally imposed
or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender, the Issuing Lender or by the
Administrative Agent on its own behalf or on behalf of a Lender or Issuing
Lender, shall be conclusive absent manifest error.

 

(4)                                  As soon as practicable after any
payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental
Authority, the Borrower shall deliver to the Administrative Agent the original
or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(5)                                  Each Foreign Lender shall deliver to
the Borrower (with copies to the Administrative Agent) on or before the date
hereof (or in the case of a Foreign Lender who became a Lender by way of an
assignment, on or before the date of the assignment) or at least five (5)
Business Days prior to the first date for any payment herewith to such Lender,
and from time to time as required for renewal under applicable law, such
certificates, documents or other evidence, as required by the Code or Treasury
Regulations issued pursuant thereto, including, without limitation, Internal
Revenue Service Form W-8BEN or W-ECI, as appropriate, and any other certificate
or statement of exemption required by Section 871(h) or
Section 881(c) of the Code or any subsequent version thereof, properly
completed and duly executed by such Lender establishing that payments to such
Lender hereunder are not subject to withholding under the Code (“Evidence of
No Withholding”).  Each Foreign
Lender shall promptly notify the Borrower and the Administrative Agent of any
change in its applicable lending office and upon written request of the
Borrower or the Administrative Agent shall, prior to the immediately following
due date of any payment by the Borrower hereunder or under any other Loan
Document, deliver Evidence of No Withholding to the Borrower and the
Administrative Agent.  The Borrower
shall be entitled to rely on such forms in their possession until receipt of
any revised or successor form pursuant to this Section 2.10(5).  If a Lender fails to provide Evidence of No
Withholding as required pursuant to this Section 2.10(5), then (i)
the Borrower (or the Administrative Agent) shall be entitled to deduct or
withhold from payments to Administrative Agent or such Lender as a result of
such failure, as required by law, and (ii) the Borrower shall not be required
to make payments of additional amounts with respect to such withheld Taxes
pursuant to Section 2.10(1) to the extent such withholding is
required solely by reason of the failure of such Lender to provide the
necessary Evidence of No Withholding.

 

2.11.                        Fees.

 

(1)                                  Unused
Line Fee.  Until the Obligations
have been paid in full and the Agreement terminated, the Borrower agrees to
pay, on the first day of each month and on the Commitment Termination Date, to
the Administrative Agent, for the ratable account of the Lenders, an unused
line fee (the “Unused Line Fee”) equal to the Applicable Unused Line Fee
Percentage per annum on the average daily amount by which, during the
immediately preceding month or shorter period if calculated on the Commitment
Termination Date, the aggregate amount of the Lenders’ Commitments during such
period exceeded the sum of (i) the average

 

20

 

daily outstanding amount of Loans and (ii) the undrawn face amount of
all outstanding Letters of Credit. 
The  unused line fee shall be
computed on the basis of a 360-day year for the actual number of days elapsed.

 

(2)                                  Letter
of Credit Fees and Costs.

 

(A)                              The Borrower agrees to pay to the
Administrative Agent for distribution to each Non-Defaulting Lender (based on
their respective Applicable Percentage) in U.S. Dollars, a fee in respect of
each Letter of Credit issued for the account of any Macerich Entity (the “Letter
of Credit Fee”), in each case for the period from and including the date of
issuance of the respective Letter of Credit to and including the date of
termination of such Letter of Credit, computed at a rate per annum equal to the
applicable “LIBO Spread” as listed in the definition of Applicable LIBO Rate on
the daily Stated Amount of such Letter of Credit.  Accrued Letter of Credit Fees shall be due and payable on the
first Business Day of each August, November, February and May commencing
with November of 2004, and on the Commitment Termination Date or such
earlier date upon which the Commitments are terminated.

 

(B)                                The Borrower agrees to pay the
Issuing Lender, for its own account, in U.S. Dollars, a facing fee in respect
of each Letter of Credit issued for the account of any Macerich Entity by such
Issuing Lender (the “Facing Fee”), for the period from and including the
date of issuance of such Letter of Credit to and including the date of the
termination of such Letter of Credit, computed at a rate equal to one-eighth of
one percent (.125%) per annum of the daily Stated Amount of such Letter of
Credit; provided that in no event shall the annual Facing Fee with
respect to any Letter of Credit be less than $500.  Accrued Facing Fees shall be due and payable in arrears on the
first Business Day of each August, November, February and May commencing
with November of 2004, and on the Commitment Termination Date or such
earlier date upon which the Commitments are terminated.

 

(C)                                The Borrower shall pay, upon each
payment under, issuance of, or amendment to, any Letter of Credit, such amount
as shall at the time of such event be the administrative charge and the
reasonable expenses which the applicable Issuing Lender is generally imposing
for payment under, issuance of, or amendment to, Letters of Credit issued by
it, not to exceed $500 per issuance or amendment.

 

(3)                                  Administrative
Agent Fee.  The Borrower agrees to
pay to the Administrative Agent, for its own account, fees payable in the
amounts and at the times separately agreed upon between the Borrower and the
Administrative Agent in that certain Fee Letter dated as of the date hereof.

 

(4)                                  Payment
of Fees.  All fees payable hereunder
shall be paid on the dates due, in immediately available funds, to the
Administrative Agent (except the Facing Fee which shall be paid to the Issuing
Lender) for distribution, in the case of the Unused Line Fee and the Letter of
Credit Fee, to the Lenders entitled thereto. 
Fees paid shall not be refundable under any circumstances.

 

2.12.                        Default Interest.  During such time as there shall have occurred and be continuing
an Event of Default, all Obligations outstanding, shall, at the election of the

 

21

 

Administrative Agent, bear interest at a per annum rate equal to two
percent (2%) above the applicable rate of interest in effect during the
applicable calculation period.

 

2.13.                        Computation. 
All computations of interest and fees payable hereunder shall be based
upon a year of 360 days for the actual number of days elapsed (which
results in more interest being paid than if computed on the basis of a 365-day
year).

 

2.14.                        Application of Insufficient
Payments.  If at any time
insufficient funds are received by and available to the Administrative Agent to
pay fully all amounts of principal, unreimbursed LC Disbursements, interest and
fees then due hereunder, such funds shall be applied (i) first, to pay
interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, to pay principal and unreimbursed LC Disbursements
then due hereunder, ratably among the parties entitled thereto in accordance
with the amounts of principal and unreimbursed LC Disbursements then due to
such parties.

 

2.15.                        Release of Borrowers under
Existing Credit Agreement. 
Upon the effectiveness of this Agreement, each borrower under the
Existing Credit Agreement, other than the Macerich Partnership, shall be
unconditionally and absolutely released as a borrower thereunder, without
further action by any Lender or any other Person.  Notwithstanding the foregoing, the release of the borrowers
thereunder is not intended to limit any obligation of the Affiliate Guarantors
under this Agreement.

 

ARTICLE 3.                                [RESERVED].

 

ARTICLE 4.                                Credit Support.

 

4.1.                              Guaranties. 
As credit support for the Obligations, on or before the Closing Date (1)
MAC shall execute and deliver to the Administrative Agent, for the benefit of
the Lenders, the REIT Guaranty, and (2) the Affiliate Guarantors shall each
execute and deliver to the Administrative Agent, for the benefit of the
Lenders, an Affiliate Guaranty.  Upon
the acquisition of any Project after the Closing Date by any Borrower Party or
Wholly-Owned Subsidiary thereof, in the event at the time of acquisition the
principal Property comprising such Project is unencumbered by any Lien in
respect of borrowed indebtedness (an “Unencumbered Property”), and there
is no Financing or binding commitment for a Financing with respect to such
Unencumbered Property within ninety (90) days of its acquisition, such Person
(each a “Supplemental Guarantor”), if such Person is not already a
Guarantor, shall:  (a) execute and
deliver to the Administrative Agent, for the benefit of the Lenders a Guaranty
in the form of Exhibit D hereto pursuant to which such Supplemental
Guarantor will unconditionally guarantee the Obligations from time to time
owing to the Lenders, (b) execute and deliver, or cause to be executed and
delivered, to the Administrative Agent such other documents or legal opinions
required by the Administrative Agent confirming the authorization, execution
and delivery and enforceability (subject to customary exceptions) of the
Guaranty by such Supplemental Guarantor, and (c) deliver copies of its
Organizational Documents, certified by the Secretary or an Assistant Secretary of
such Supplemental Guarantor (or if such Person is a limited partnership or
limited liability company, an authorized representative of its general partner
or manager) as of the date delivered as being accurate and complete.  Upon the Disposition or Financing of any

 

22

 

Unencumbered Property by any Affiliate Guarantor or Supplemental
Guarantor, the Administrative Agent shall release the guaranty executed by such
Person pursuant to this Section 4.1.

 

ARTICLE 5.                                Conditions Precedent.

 

5.1.                              Conditions to Initial Funding of
Loans.  The obligations of the
Lenders to make Loans and of the Issuing Lender to issue Letters of Credit
hereunder shall not become effective until:

 

(1)                                  The Borrower shall have delivered or
shall have caused to be delivered to the Administrative Agent, in form and
substance satisfactory to the Lenders and their counsel and duly executed by
the appropriate Persons (with sufficient copies for each of the Lenders), each
of the following:

 

(A)                              This Agreement;

 

(B)                                To the extent requested by any
Lender pursuant to Section 1.8(6) above, a Note payable to such
Lender;

 

(C)                                The REIT Guaranty executed by MAC
and the Affiliate Guaranties executed by each Affiliate Guarantor;

 

(D)                               The Fee Letter;

 

(E)                                 A certificate of the Secretary or
Assistant Secretary of the general partner or managing member of those Borrower
Parties which are partnerships or limited liability companies attaching copies
of resolutions duly adopted by the Board of Directors of such general partner
or managing member approving the execution, delivery and performance of the
Loan Documents on behalf of such Borrower Parties and certifying the names and
true signatures of the officers of such general partner or managing member
authorized to sign the Loan Documents to which such Borrower Parties are party;

 

(F)                                 A certificate or certificates of the
Secretary or an Assistant Secretary of those Borrower Parties which are
corporations attaching copies of resolutions duly adopted by the Board of Directors
of such Borrower Parties approving the execution, delivery and performance of
the Loan Documents to which such Borrower Parties are party and certifying the
names and true signatures of the officers of each of such Borrower Parties
authorized to sign the Loan Documents on behalf of such Borrower Parties;

 

(G)                                An opinion of counsel for the
Borrower, MAC and any other Persons who will be Guarantors (if any) as of the
Closing Date, in form and substance reasonably acceptable to the Administrative
Agent and the Lenders;

 

(H)                               Copies of the Certificate of
Incorporation, Certificate of Formation, or Certificate of Limited Partnership
of each of the Borrower Parties, certified by the Secretary of State of the
state of formation of such Person as of a recent date (or, in lieu of the
foregoing as to any Borrower Party, a certificate of the secretary, assistant
secretary or

 

23

 

Responsible
Officer of the Borrower to the effect that there have been no changes to such
documents since such documents were delivered to the lenders under the Existing
Credit Agreement);

 

(I)                                    Copies of the Certificate of
Incorporation, Certificate of Formation or Certificate of Limited Partnership
of each of the Westcor Principal Entities, and the Persons identified in Schedule 5.1(1)(J)
attached hereto, certified by the Secretary or an Assistant Secretary of such
Person (or if such Person is a limited partnership or limited liability
company, an authorized representative of its general partner or manager) as of
the date of this Agreement as being accurate and complete (or, in lieu of the
foregoing as to any Person, a certificate of the secretary, assistant secretary
or Responsible Officer of the Borrower to the effect that there have been no
changes to such documents since such documents were delivered to the lenders
under the Existing Credit Agreement);

 

(J)                                   A certificate of authority and good
standing or analogous documentation as of a recent date for each of the
Borrower Parties for the State of California and each state in which such
Person is organized, formed or incorporated, as applicable;

 

(K)                               From a Responsible Officer of the
Borrower, a Closing Certificate dated as of the Closing Date;

 

(L)                                 Confirmation from the Administrative
Agent and the other Agents (which may be oral) that all fees required to be
paid by the Borrower on or before the Closing Date have been, or will upon the
initial funding of the Loans be, paid in full;

 

(M)                            Evidence satisfactory to the
Administrative Agent that all reasonable costs and expenses of the
Administrative Agent and the other Agents, including, without limitation, fees
of outside counsel and fees of third party consultants and appraisers, required
to be paid by the Borrower on or prior to the Closing Date have been, or will
upon the initial funding of the Loans be, paid in full;

 

(N)                               From a Responsible Financial Officer
of the Borrower, a Compliance Certificate in form and substance satisfactory to
the Administrative Agent and the Lenders, evidencing, the Borrower’s compliance
with the financial covenants set forth under Section 8.12 below at
and as of March 31, 2004.

 

(2)                                  Each of the requirements set forth
on Schedule 5.1(2) attached hereto shall have been met to the
satisfaction of the Administrative Agent and the Lenders.

 

(3)                                  All representations and warranties
of the Borrower Parties set forth herein and in the other Loan Documents shall
be accurate and complete in all material respects as if made on and as of the
Closing Date (unless any such representation and warranty speaks as of a
particular date, in which case it shall be accurate and complete in all
material respects as of such date).

 

(4)                                  There shall not have occurred and be
continuing as of the Closing Date any Event of Default or Potential Default.

 

24

 

(5)                                  All acts and conditions (including,
without limitation, the obtaining of any third party consents (including
consent of the Existing Lenders) and necessary regulatory approvals and the making
of any required filings, recordings or registrations) required to be done and
performed and to have happened precedent to the execution, delivery and
performance of the Loan Documents by each of the Borrower Parties.

 

(6)                                  The repayment of all amounts outstanding
under the Existing Term Loan.

 

(7)                                  All consents and approvals necessary
to modify the Existing 2003 Term Loan Credit Agreement shall have been obtained
that shall reconcile the financial covenants contained therein with the
Section 8.12 hereof.

 

(8)                                  There shall not have occurred any
change, occurrence or development that could, in the good faith opinion of the
Lenders, have a Material Adverse Effect.

 

(9)                                  All documentation, including,
without limitation, documentation for corporate and legal proceedings in
connection with the transactions contemplated by the Loan Documents shall be
satisfactory in form and substance to the Administrative Agent, the Lenders and
their counsel.

 

5.2.                              Outside Closing Date.  If all conditions precedent set forth in Section 5.1
above shall not have been met to the satisfaction of the Administrative Agent
and the Lenders on or before August 15, 2004, then the agreement of the
Lenders to fund their Applicable Percentage of the Commitments (and the
agreement of the Issuing Lender to issue Letters of Credit) shall terminate and
(i) this Agreement shall automatically be deemed of no further force or effect
(except to the extent terms and provisions of this Agreement specifically
provide that they shall survive termination hereof); and (ii) the Existing
Credit Agreement shall remain in full force in effect.

 

5.3.                              Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of
any New Borrowing (and with respect to subsection (2) below, any LIBO Rate
Borrowing), and of the Issuing Lender to issue, amend, renew or extend any
Letter of Credit, is subject to the satisfaction of the following conditions:

 

(1)                                  The representations and warranties
of the Borrower set forth in this Agreement and in the other Loan Documents
shall be true and correct in all material respects (subject to updates as
approved by the Administrative Agent) on and as of the date of such New
Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable (or, if any such representation or warranty is
expressly stated to have been made as of a specific date, as of such specific
date);

 

(2)                                  At the time of and immediately after
giving effect to a New Borrowing or any LIBO Rate Borrowing or the date of
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Potential Default or Event of Default shall have occurred and be
continuing; and

 

25

 

(3)                                  At the time of each New Borrowing or
the date of issuance, amendment, renewal or extension of such Letter of Credit,
as applicable, a Responsible Officer shall certify that (i) no Potential
Default or Event of Default shall have occurred and be continuing and (ii)
after giving effect to such New Borrowing or issuance, amendment, renewal or
extension of such Letter of Credit, as applicable, the Borrower Parties remain
in compliance with the covenants set forth in Article 8 after
giving effect to such New Borrowing or issuance, amendment, renewal or
extension of such Letter of Credit, as applicable, including supporting
documentation reasonably satisfactory to the Administrative Agent.

 

(4)                                  Each New Borrowing and each
issuance, amendment, renewal or extension of such Letter of Credit shall be deemed
to constitute a representation and warranty by the Borrower on the date thereof
as to the matters specified in the preceding sentence.

 

ARTICLE 6.                                Representations
and Warranties.  As an inducement to
the Administrative Agent, the Issuing Lender and each Lender to enter into this
Agreement, each of the Borrower and MAC, collectively and severally, represent
and warrant as follows to the Administrative Agent, the Issuing Lender and each
Lender:

 

6.1.                              Financial Condition.  Complete and accurate copies of the
following financial statements and materials have been delivered to the
Administrative Agent:  (i) audited
financial statements of MAC for 2002 and 2003 and (ii) unaudited financial
statements of MAC for the calendar quarter ending March 31, 2004 (the materials
described in clauses (i) and (ii) are referred to as the “Initial Financial
Statements”).

 

All financial statements included in the Initial Financial Statements
were prepared in all material respects in conformity with GAAP, except as
otherwise noted therein, and fairly present in all material respects the
respective consolidated financial positions, and the consolidated results of
operations and cash flows for each of the periods covered thereby of MAC and
its consolidated Subsidiaries as at the respective dates thereof.  None of the Borrower Parties or any of their
Subsidiaries has any Contingent Obligation, contingent liability or liability
for any taxes, long-term leases or commitments, not reflected in its audited
financial statements delivered to the Administrative Agent on or prior to the
Closing Date or otherwise disclosed to the Administrative Agent and the Lenders
in writing, which will have or is reasonably likely to have a Material Adverse
Effect.

 

6.2.                              No Material Adverse Effect.  Since the Statement Date no event has
occurred which has resulted in, or, as of the Closing Date, is reasonably
likely to have, a Material Adverse Effect.

 

6.3.                              Compliance with Laws and Agreements.  Each of the Borrower Parties and the
Macerich Core Entities is in compliance with all Requirements of Law and
Contractual Obligations, except where the failure to do so, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

 

6.4.                              Organization, Powers;
Authorization; Enforceability.

 

(1)                                  Macerich Partnership (A) is a
limited partnership duly organized, validly existing and in good standing under
the laws of the State of Delaware, (B) is duly

 

26

 

qualified
to do business and is in good standing under the laws of each jurisdiction in
which failure to be so qualified and in good standing will have or is
reasonably likely to have a Material Adverse Effect, (C) has all requisite
power and authority to own, operate and encumber its Property and to conduct
its business as presently conducted and as proposed to be conducted in
connection with and following the consummation of the transactions contemplated
by this Agreement and (D) is a partnership for purposes of federal income taxation
and for purposes of the tax laws of any state or locality in which Macerich
Partnership is subject to taxation based on its income.

 

(2)                                  MAC (A) is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Maryland, (B) is duly authorized and qualified to do business and is in good
standing under the laws of each jurisdiction in which failure to be so
qualified and in good standing will have or is reasonably likely to have a
Material Adverse Effect, and (C) has all requisite corporate power and
authority to own, operate and encumber its Property and to conduct its business
as presently conducted.

 

(3)                                  Each Affiliate Guarantor (A) is
either a corporation, a limited partnership or a limited liability company duly
incorporated, formed or organized, validly existing, and in good standing under
the laws of the State of its incorporation, organization and/or formation, (B)
is duly qualified to do business and is in good standing under the laws of each
jurisdiction in which failure to be so qualified and in good standing will have
or is reasonably expected to have a Material Adverse Effect, and (C) has all
requisite corporate, partnership or limited liability company power and
authority to own, operate and encumber its Property and to conduct its business
as presently conducted and as proposed to be conducted in connection with and
following the consummation of the transactions contemplated by this Agreement.

 

(4)                                  True, correct and complete copies of
the Organizational Documents described in Section 5.1(1)(J) have
been delivered to the Administrative Agent, each of which is in full force and
effect, has not been Modified except to the extent indicated therein and, to
the best of each of the Borrower’s and MAC’s knowledge, there are no defaults
under such Organizational Documents and no events which, with the passage of
time or giving of notice or both, would constitute a default under such
Organizational Documents.

 

(5)                                  The Borrower Parties have the
requisite power and authority to execute, deliver and perform this Agreement
and each of the other Loan Documents which are required to be executed on their
behalf.  The execution, delivery and
performance of each of the Loan Documents which must be executed in connection
with this Agreement by the Borrower Parties and to which the Borrower Parties
are a party and the consummation of the transactions contemplated thereby are
within their partnership, company, or corporate powers, have been duly
authorized by all necessary partnership, company, or corporate action and such
authorization has not been rescinded. No other partnership, company, or
corporate action or proceedings on the part of the Borrower Parties is
necessary to consummate such transactions.

 

(6)                                  Each of the Loan Documents to which
each Borrower Party is a party has been duly executed and delivered on behalf
of such Borrower Party and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms (subject to

 

27

 

bankruptcy,
insolvency, reorganization, or other laws affecting creditors’ rights generally
and to principles of equity, regardless of whether considered in a proceeding
in equity or at law), is in full force and effect and all the terms,
provisions, agreements and conditions set forth therein and required to be
performed or complied with by such Borrower Party on or before the Closing Date
have been performed or complied with, and no Potential  Default or Event of Default exists
thereunder.

 

6.5.                              No Conflict. 
The execution, delivery and performance of the Loan Documents, the
borrowing hereunder and the use of the proceeds thereof, will not violate any
material Requirement of Law or any Organizational Document or any material
Contractual Obligation of any of the Borrower Parties or the Macerich Core
Entities; or create or result in the creation of any Lien on any material
assets of any of the Borrower Parties.

 

6.6.                              No Material Litigation.  Except as disclosed on Schedule 6.6
hereto, no litigation, investigation or proceeding of or before any arbitrator
or Governmental Authority is pending or, to the knowledge of the Borrower and
MAC, threatened by or against the Borrower Parties or the Macerich Core
Entities or against any of such Persons’ Properties or revenues which is likely
to be adversely determined and which, if adversely determined, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

 

6.7.                              Taxes.  All tax
returns, reports and similar statements or filings of the Borrower Parties and
the Macerich Core Entities have been timely filed.  Except for Permitted Encumbrances, all taxes, assessments, fees
and other charges of Governmental Authorities upon such Persons and upon or
relating to their respective Properties, assets, receipts, sales, use, payroll,
employment, income, licenses and franchises which are shown in such returns or
reports to be due and payable have been paid, except to the extent (i) such
taxes, assessments, fees and other charges of Governmental Authorities are
subject to a Good Faith Contest; or (ii) the non-payment of such taxes,
assessments, fees and other charges of Governmental Authorities would not,
individually or in the aggregate, result in a Material Adverse Effect.  The Borrower and MAC have no knowledge of
any proposed tax assessment against the Borrower Parties or the Macerich Core
Entities that will have or is reasonably likely to have a Material Adverse
Effect.

 

6.8.                              Investment Company Act.  Neither the Borrower nor MAC, nor any Person
controlling such entities is an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act of
1940 (as amended from time to time).

 

6.9.                              Subsidiary Entities.  Schedule 6.9 (A) contains charts
and diagrams reflecting the corporate structure of the Borrower Parties and
their respective Subsidiary Entities indicating the nature of the corporate,
partnership, limited liability company or other equity interest in each Person
included in such chart or diagram; and (B) accurately sets forth (1) the
correct legal name of such Person, the type of organization, and the
jurisdiction of its incorporation or organization, and (2) each class of
outstanding Capital Stock of such Persons along with the percentage thereof
owned by the Borrower Parties and their Subsidiaries.  None of such issued and outstanding Capital Stock or Securities
is subject to any vesting, redemption, or repurchase agreement, and there are no
warrants or options outstanding with respect to such Securities, except as
noted on Schedule 6.9. The

 

28

 

outstanding Capital Stock of each Subsidiary
Entity shown on Schedule 6.9 as being owned by a Borrower Party or
its Subsidiary is duly authorized, validly issued, fully paid and
nonassessable.  Except where failure may
not have a Material Adverse Effect, each Subsidiary Entity of Borrower Parties:  (A) is a corporation, limited liability
company, or partnership, as indicated on Schedule 6.9, duly
organized, validly existing and, if applicable, in good standing under the laws
of the jurisdiction of its organization, (B) is duly qualified to do business
and, if applicable, is in good standing under the laws of each jurisdiction in
which failure to be so qualified and in good standing would limit its ability
to use the courts of such jurisdiction to enforce Contractual Obligations to
which it is a party, and (C) has all requisite power and authority to own,
operate and encumber its Property and to conduct its business as presently
conducted and as proposed to be conducted hereafter.

 

6.10.                        Federal Reserve Board Regulations.  Neither the Borrower nor MAC is engaged or
will engage, principally or as one of its important activities, in the business
of extending credit for the purpose of 
“purchasing” or “carrying” any “Margin Stock” within the respective
meanings of such terms under Regulations U, T and X.  No part of the proceeds of the Loans will be used for “purchasing”
or “carrying” “Margin Stock” as so defined or for any purpose which violates,
or which would be inconsistent with, the provisions of, the Regulations of the
Board of Governors of the Federal Reserve System.

 

6.11.                        ERISA Compliance.  Except as disclosed on Schedule 6.11:

 

(1)                                  Each Plan is in compliance with the
applicable provisions of ERISA, the Code and other federal or state law failure
to comply with which would reasonably be likely to result in a Material Adverse
Effect.  Each Plan which is intended to
qualify under Section 401(a) of the Code has received a favorable
determination letter from the IRS and to the best knowledge of the Borrower
Parties, nothing has occurred which would cause the loss of such qualification.

 

(2)                                  There are no pending or, to the best
knowledge of Borrower and MAC, threatened claims, actions or lawsuits, or
action by any Governmental Authority, with respect to any Plan which has
resulted or could reasonably be expected to result in a Material Adverse
Effect.  There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to
any Plan which has resulted or could reasonably be expected to result in a
Material Adverse Effect.

 

(3)                                  No ERISA Event has occurred or is
reasonably expected to occur with respect to any Pension Plan or, to the best
knowledge of the Borrower Parties, any Multiemployer Plan, which has resulted
or could reasonably be expected to result in a Material Adverse Effect.

 

(4)                                  No Pension Plan has any Unfunded
Pension Liability, which has resulted or could reasonably be expected to result
in a Material Adverse Effect.

 

(5)                                  None of the Borrower Parties or
their respective Subsidiaries, nor any ERISA Affiliate has incurred, nor
reasonably expects to incur, any liability under Title IV of

 

29

 

ERISA
with respect to any Pension Plan (other than premiums due and not delinquent
under Section 4007 of ERISA), which has resulted or could reasonably be
expected to result in a Material Adverse Effect.

 

(6)                                  None of the Borrower Parties or
their respective Subsidiaries, nor any ERISA Affiliate has incurred nor
reasonably expects to incur any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in
such liability) under Section 4201 or 4243 of ERISA with respect to a
Multiemployer Plan, which has resulted or could reasonably be expected to
result in a Material Adverse Effect.

 

(7)                                  None of the Borrower Parties or
their respective Subsidiaries, nor any ERISA Affiliate has transferred any
Unfunded Pension Liability to any person or otherwise engaged in a transaction
that is subject to Section 4069 or 4212(c) of ERISA, which has resulted or
could reasonably be expected to result in a Material Adverse Effect.

 

6.12.                        Assets and Liens.  Each of the Borrower Parties and their respective Subsidiary
Entities has good and marketable fee or leasehold title to all Property and
assets reflected in the financial statements referred to in Section 6.1
above, except Property and assets sold or otherwise disposed of in the ordinary
course of business subsequent to the respective dates thereof.  None of the Borrower Parties, nor their
respective Subsidiary Entities, has outstanding Liens on any of its Properties
or assets nor are there any security agreements to which it is a party, except
for Liens permitted in accordance with Section 8.1.

 

6.13.                        Securities Acts.  None of the Borrower Parties or their respective Subsidiary
Entities has issued any unregistered securities in violation of the
registration requirements of Section 5 of the Securities Act of 1933, (as
amended from time to time, the “Act”) or any other law, nor are they in
violation of any rule, regulation or requirement under the Act, or the Securities
Exchange Act of 1934, (as amended from time to time) other than violations
which could not reasonably be expected to have a Material Adverse Effect.  None of the Borrower Parties is required to
qualify an indenture under the Trust Indenture Act of 1939, (as amended from
time to time) in connection with its execution and delivery of this Agreement
or the incurrence of Indebtedness hereunder.

 

6.14.                        Consents, Etc. 
Except as disclosed in Schedule 6.14, no consent, approval
or authorization of, or registration, declaration or filing with any
Governmental Authority or any other Person is required on the part of the
Borrower Parties or the Macerich Core Entities in connection with the execution
and delivery of the Loan Documents by the Borrower Parties, or the performance
of or compliance with the terms, provisions and conditions thereof by such
Persons, other than those that have been obtained or will be obtained by the
legally required time.

 

6.15.                        Hazardous Materials.  The Borrower Parties and the Macerich Core
Entities have caused Phase I and the other environmental assessments as set
forth in Schedule 6.15 to be conducted or have taken other steps to
investigate the past and present environmental condition and use of their
regional Retail Properties (as used in this Section 6.15 and Section 7.9,
the “Designated Environmental Properties”).  Based on such investigation, except as otherwise disclosed in the
reports listed on Schedule 6.15, to the best knowledge of the
Borrower and

 

30

 

MAC:  (1) no Hazardous Materials
have been discharged, disposed of, or otherwise released on, under, or from the
Designated Environmental Properties so as to be reasonably expected to result
in a violation of Hazardous Materials Laws and a material adverse effect to
such Designated Environmental Property or the owner thereof; (2) the owners of
the Designated Environmental Properties have obtained all material
environmental, health and safety permits and licenses necessary for their
respective operations, and all such permits are in good standing and the holder
of each such permit is currently in compliance with all terms and conditions of
such permits, except to the extent the failure to obtain such permits or comply
therewith is not reasonably expected to result in a Material Adverse Effect or
any material violation of Hazardous Materials Laws or in a material adverse
effect to such Designated Environmental Property or the owner thereof; (3) none
of the Designated Environmental Properties is listed or proposed for listing on
the National Priorities List (“NPL”) pursuant to CERCLA or on the
Comprehensive Environmental Response Compensation Liability Information System
List (“CERCLIS”) or any similar applicable state list of sites requiring
remedial action under any Hazardous Materials Laws; (4) none of the owners of
the Designated Environmental Properties has sent or directly arranged for the
transport of any hazardous waste to any site listed or proposed for listing on
the NPL, CERCLIS or any similar state list; (5) there is not now on or in any
Designated Environmental Property:  (a)
any landfill or surface impoundment; (b) any underground storage tanks; (c) any
asbestos-containing material; or (d) any polychlorinated biphenyls (PCB), which
in the case of any of clauses (a) through (d) could reasonably result in a
violation of any Hazardous Materials Laws and a material adverse effect to such
Designated Environmental Property or the owner thereof; (6) no environmental
Lien has attached to any Designated Environmental Properties; and (7) no other
event has occurred with respect to the presence of Hazardous Materials on or
under any of the Properties of the Borrower Parties or the Macerich Core
Entities, which would reasonably be expected to result in a Material Adverse
Effect.  Notwithstanding the foregoing,
on the Closing Date all of the representations set forth above shall be true
and correct with respect to all Properties of the Borrower Parties and the
Macerich Core Entities (and not only the Designated Environmental Properties).

 

6.16.                        Regulated Entities.  None of the Borrower Parties or the Macerich
Core Entities:  (1) is subject to
regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, the Interstate Commerce Act, any state public utilities code, or any
other Federal or state statute or regulation limiting its ability to incur
Indebtedness, or (2) is a “foreign person” within the meaning of
Section 1445 of the Code.

 

6.17.                        Copyrights, Patents, Trademarks
and Licenses, etc.  To
the best knowledge of the Borrower and MAC, the Borrower Parties and the
Macerich Core Entities own or are licensed or otherwise have the right to use
all of the patents, trademarks, service marks, trade names, copyrights,
contractual franchises, authorizations and other rights that are necessary for
the operation of their respective businesses, without conflict with the rights
of any other Person.  To the best
knowledge of the Borrower and MAC, no slogan or other advertising device,
product, process, method, substance, part or other material now employed, or
now contemplated to be employed, by the Borrower Parties or the Macerich Core
Entities infringes upon any rights held by any other Person, except for any
infringements, individually or in the aggregate, which would not result, or be
expected to result, in a Material Adverse Effect.

 

31

 

6.18.                        REIT Status. 
MAC:  (1) is a REIT, (2) has not
revoked its election to be a REIT, (3) has not engaged in any “prohibited
transactions” as defined in Section 856(b)(6)(iii) of the Code (or any
successor provision thereto), and (4) for its current “tax year” as defined in
the Code is and for all prior tax years subsequent to its election to be a REIT
has been entitled to a dividends paid deduction which meets the requirements of
Section 857 of the Code.

 

6.19.                        Insurance. 
Schedule 6.19 accurately sets forth as of the Closing Date
all insurance policies currently in effect with respect to the respective
Property and assets and business of the Borrower Parties and the Macerich Core
Entities, specifying for each such policy, (i) the amount thereof, (ii) the
general risks insured against thereby, (iii) the name of the insurer and each
insured party thereunder, (iv) the policy or other identification number
thereof, and (v) the expiration date thereof.  Such insurance policies are currently in full force and effect,
in compliance with the requirements of Section 7.8 hereof.

 

6.20.                        Full Disclosure.  None of the representations or warranties made by the  Borrower Parties in the Loan Documents as of
the date such representations and warranties are made or deemed made contains
any untrue statement of a material fact or omits to state a material fact necessary
to make the statements made therein, in light of the circumstances under which
they are made, not misleading.

 

6.21.                        Indebtedness. 
Schedule 6.21 sets forth, as of March 31, 2004, all
Indebtedness for borrowed money of each of the Borrower Parties and the
Macerich Core Entities, and, except as set forth on such Schedule 6.21,
there are no defaults in the payment of principal or interest on any such
Indebtedness, and no payments thereunder have been deferred or extended beyond
their stated maturity, and, as of the Closing Date, there has been no material
change in the type or amount of such Indebtedness since March 31, 2004.

 

6.22.                        Real Property. 
Set forth on Schedule 6.22 is a list, as of the date of this
Agreement, of all of the Projects of the Borrower Parties and the Macerich Core
Entities, indicating in each case whether the respective property is owned or
ground leased by such Persons, the identity of the owner or lessee and the
location of the respective property.

 

6.23.                        Brokers.  The
Borrower and MAC have not dealt with any broker or finder with respect to the
transactions embodied in this Agreement and the other Loan Documents.

 

6.24.                        No Default. 
No Default or Potential Default has occurred and is continuing.

 

6.25.                        Solvency. 
On the Closing Date and after giving effect to each Borrowing and each
issuance, amendment, renewal or extension of any Letter of Credit, each
Borrower Party is and shall be Solvent.

 

ARTICLE 7.                                Affirmative Covenants.  As an inducement to the Administrative
Agent, the Issuing Lender and each Lender to enter into this Agreement, each of
the Borrower and MAC, collectively and severally, hereby covenants and agrees
with the Administrative Agent, the Issuing Lender and each Lender that, as long
as any Obligations remain unpaid:

 

32

 

7.1.                              Financial Statements.  The Borrower Parties shall maintain, for
themselves, and shall cause each of the Macerich Core Entities to maintain a
system of accounting established and administered in accordance with sound
business practices to permit preparation of 
consolidated financial statements in conformity with GAAP.  Each of the financial statements and reports
described  below shall be prepared from
such system and records and in form reasonably satisfactory to the
Administrative Agent, and shall be provided to Administrative Agent (and
Administrative Agent shall provide a copy to each requesting Lender):

 

(1)                                  As soon as practicable, and in any
event within ninety (90) days after the close of each fiscal year of MAC, the
consolidated balance sheet of MAC and its Subsidiaries as of the end of such
fiscal year and the related consolidated statements of income, stockholders’
equity and cash flow of MAC and its Subsidiaries for such fiscal year, setting
forth in each case in comparative form the consolidated or combined figures, as
the case may be, for the previous fiscal year, all in reasonable detail and
accompanied by a report thereon of PricewaterhouseCoopers or other independent
certified public accountants of recognized national standing selected by the
Borrower and reasonably satisfactory to the Administrative Agent, which report
shall be unqualified (except for qualifications that the Required Lenders do
not, in their discretion, consider material) and shall state that such
consolidated financial statements fairly present the financial position of MAC
and its Subsidiaries as at the date indicated and the results of their
operations and cash flow for the periods indicated in conformity with GAAP
(except as otherwise stated therein) and that the examination by such
accountants in connection with such consolidated financial statements has been
made in accordance with generally accepted auditing standards;

 

(2)                                  As soon as practicable, and in any event
within fifty (50) days after the close of each of the first three fiscal
quarters of each fiscal year of MAC, for MAC and its Subsidiaries, unaudited
balance sheets as at the close of each such period and the related combined
statements of income and cash flow of MAC and its Subsidiaries for such quarter
and the portion of the fiscal year ended at the end of such quarter, setting
forth in each case in comparative form the consolidated or combined figures, as
the case may be, for the corresponding periods of the prior fiscal year, all in
reasonable detail and in conformity with GAAP (except as otherwise stated
therein), together with a representation by a Responsible Financial Officer, as
of the date of such financial statements, that such financial statements have
been prepared in accordance with GAAP (provided, however, that
such financial statements may not include all of the information and footnotes
required by GAAP for complete financial information) and reflect all
adjustments that are, in the opinion of management, necessary for a fair
presentation of the financial information contained therein;

 

(3)                                  Together with each delivery of any
quarterly or annual report pursuant to paragraphs (1) through (2) of this Section 7.1,
MAC shall deliver a Compliance Certificate signed by MAC’s Responsible
Financial Officer representing and certifying (1) that the Responsible
Financial Officer signatory thereto has reviewed the terms of the Loan
Documents, and has made, or caused to be made under his/her supervision, a
review in reasonable detail of the transactions and consolidated financial
condition of MAC and its Subsidiaries, during the fiscal quarter covered by
such reports, that such review has not disclosed the existence during or at the
end of such fiscal quarter, and that such officer does not have

 

33

 

knowledge
of the existence as at the date of such Compliance Certificate, of any
condition or event which constitutes an Event of Default or Potential Default,
or, if any such condition or event existed or exists, specifying the nature and
period of existence thereof and what action the Borrower Parties or their
Subsidiaries have taken, are taking and propose to take with respect  thereto, (2) the calculations (with such
specificity as the Administrative Agent may reasonably request) for the period
then ended which demonstrate compliance with the covenants and financial ratios
set forth in Article 8, (3) a schedule of Total Liabilities in
respect of borrowed money in the level of detail disclosed in MAC’s Form 10-Q
filings with the Securities and Exchange Commission, as well as such other
information regarding such Indebtedness as may be reasonably requested by the
Administrative Agent, and (4) a schedule of EBITDA.

 

(4)                                  To the extent not otherwise
delivered pursuant to this Section 7.1, copies of all financial
statements and financial information delivered by the Borrower and MAC (or,
upon Administrative Agent’s request, any Subsidiaries of such Persons) from
time to time to the holders of any Indebtedness for borrowed money of such
Persons; and

 

(5)                                  Copies of all proxy statements,
financial statements, and reports which the Borrower or MAC send to their
respective stockholders or limited partners, and copies of all regular,
periodic and special reports, and all registration statements under the Act
which the Borrower or MAC file with the Securities and Exchange Commission or
any Governmental Authority which may be substituted therefore, or with any
national securities exchange; provided, however, that there shall
not be required to be delivered hereunder such copies for any Lender of
prospectuses relating to future series of offerings under registration
statements filed under Rule 415 under the Act or other items which such Lender
has indicated in writing to the Borrower or MAC from time to time need not be
delivered to such Lender.

 

(6)                                  Notwithstanding the foregoing, it is
understood and agreed that to the extent MAC files documents with the
Securities and Exchange Commission and such documents contain the same
information as required by subsections (1), (2), (3) (only with respect to
subclause (3)), (4) and (5) above, the Borrower may deliver copies, which
copies may be delivered electronically, of such forms with respect to the
relevant time periods in lieu of the deliveries specified in such clauses.

 

7.2.                              Certificates; Reports; Other
Information.  The Borrower
Parties shall furnish or cause to be furnished to the Administrative Agent, the
Issuing Lender and each of the Lenders directly:

 

(1)                                  From time to time upon reasonable
request by the Administrative Agent, a rent roll, tenant sales report and
income statement with respect to any Project;

 

(2)                                  As soon as practicable and in any
event by January 1st of each calendar year, (i) a report in form and
substance reasonably satisfactory to the Administrative Agent outlining all
insurance coverage maintained as of the date of such report by the Borrower
Parties and the Macerich Core Entities and the duration of such coverage and
(ii) evidence that all premiums with respect to such coverage have been paid
when due.

 

34

 

(3)                                  Promptly, such additional financial
and other information, including, without limitation, information regarding the
Borrower Parties, the Macerich Core Entities, any of such entities’ assets and
Properties as Administrative Agent or any Lender may from time to time
reasonably request, including, without limitation, such information as is
necessary for any Lender to participate out any of its interests in the
Obligations.

 

7.3.                              Maintenance of Existence and
Properties. The Borrower shall, and shall cause each of the Macerich
Core Entities to, at all times:  (1)
maintain its corporate existence or existence as a limited partnership or
limited liability company, as applicable; provided that a Macerich Core
Entity (other than the Borrower or MAC) (A) may change its form of organization
from one type of legal entity to another to the extent otherwise permitted in this
Agreement; (B) may effect a dissolution if such actions are taken subsequent to
a Disposition of substantially all of its assets as otherwise permitted under
this Agreement (including Section 8.4); and (C) may merge or
consolidate with any Person as otherwise not prohibited by this Agreement
(including Section 8.3); (2) maintain in full force and effect all
rights, privileges, licenses, approvals, franchises, Properties and assets
material to the conduct of its business; (3) remain qualified to do business
and maintain its good standing in each jurisdiction in which failure to be so
qualified and in good standing will have a Material Adverse Effect; and (4) not
permit, commit or suffer any waste or abandonment of any Project that will have
a Material Adverse Effect.

 

7.4.                              Inspection of Property; Books and
Records; Discussions. The Borrower Parties shall, and shall
cause each of the Macerich Core Entities, to keep proper books of record and
account in which full, true and correct entries in conformity with GAAP and all
material Requirements of Law shall be made of all dealings and transactions in
relation to its business and activities, and shall permit representatives of
the Administrative Agent, the Issuing Lender or any Lender to visit and inspect
any of its properties and examine and make copies or abstracts from any of its
books and records at any reasonable time during normal business hours and as
often as may reasonably be desired by the Administrative Agent, the Issuing
Lender or any Lender, and to discuss the business, operations, properties and
financial and other condition of Borrower Parties and the Macerich Core
Entities with officers and employees of such Persons, and with their
independent certified public accountants (provided that representatives
of such Persons may be present at and participate in any such discussion).

 

7.5.                              Notices. The Borrower shall promptly, but in any
event within five Business Days after obtaining knowledge thereof, give written
notice to the Administrative Agent, the Issuing Lender and each Lender directly
of:

 

(1)                                  The occurrence of any Potential
Default or Event of Default and what action the Borrower has taken, is taking,
or is proposing to take in response thereto;

 

(2)                                  The institution of, or written
threat of, any action, suit, proceeding, governmental investigation or
arbitration against or affecting the Borrower Parties or the Macerich Core
Entities and not previously disclosed, which action, suit, proceeding,
governmental investigation or arbitration (i) exposes, or in the case of
multiple actions, suits, proceedings, governmental investigations or
arbitrations arising out of the same general allegations or circumstances
expose, such Persons, in the Borrower’s reasonable judgment, to

 

35

 

liability
in an amount aggregating $10,000,000 or more and is or are not covered by
insurance, or (ii) seeks injunctive or other relief which, if obtained, may
have a Material Adverse Effect providing such other information as may be
reasonably available to enable Administrative Agent and its counsel to evaluate
such matters.  The Borrower, upon
request of the Administrative Agent, shall promptly give written notice of the
status of any action, suit, proceeding, governmental investigation or
arbitration;

 

(3)                                  Any labor dispute to which the
Borrower Parties or any of the Macerich Core Entities may become a party
(including, without limitation, any strikes, lockouts or other disputes
relating to any Property of such Persons’ and other facilities) which could
result in a Material Adverse Effect;

 

(4)                                  The bankruptcy or cessation of
operations of any tenant to which greater than 5% of either the Macerich
Partnership’s or MAC’s share of consolidated minimum rent is attributable; or

 

(5)                                  Any event not disclosed pursuant to paragraphs (1)
through (4) above which could reasonably be expected to result in a
Material Adverse Effect.

 

7.6.                              Expenses. 
The Borrower shall pay all reasonable out-of-pocket expenses (including
reasonable fees and disbursements of outside counsel):  (1) of the Administrative Agent and
JPMorgan Chase Bank incident to the preparation, negotiation and administration
of the Loan Documents, including any proposed Modifications or waivers with
respect thereto, the syndication of the Commitments (but such expenses shall
not include any fees paid to the syndicate members), and the preservation and
protection of the rights of the Lenders, the Issuing Lender and the
Administrative Agent under the Loan Documents, and (2) of the Administrative
Agent, the Issuing Lender and each of the Lenders incident to the enforcement
of payment of the Obligations, whether by judicial proceedings or otherwise,
including, without limitation, in connection with bankruptcy, insolvency,
liquidation, reorganization, moratorium or other similar proceedings involving
any Borrower Party or a “workout” of the Obligations; provided that only
one property inspection or site visit performed pursuant to Section 7.4
shall be paid for by the Borrower each year, unless a Potential Default or
Event of Default has occurred and is continuing, in which case there shall be
no limit to property inspections or site visits performed pursuant to Section 7.4,
and the Borrower shall pay the costs associated with each such inspection and
visit performed during such periods. 
The obligations of the Borrower under this Section 7.6 shall
survive payment of all other Obligations.

 

7.7.                              Payment of Indemnified Taxes and
Other Taxes and Charges. 
The Borrower Parties shall, and shall cause each of the Macerich Core
Entities to, file all tax returns required to be filed in any jurisdiction and,
if applicable, and except with respect to taxes subject to any Good Faith
Contest, pay and discharge all Indemnified Taxes and Other Taxes imposed upon
it or any of its Properties or in respect of any of its franchises, business,
income or property before any material penalty shall be incurred with respect
to such Indemnified Taxes and Other Taxes.

 

7.8.                              Insurance. 
The Borrower Parties shall, and shall
cause each of the Macerich Core Entities, to maintain, to the extent
commercially available, insurance with

 

36

 

responsible and reputable insurance companies
or associations in such amounts and covering such risks (including, without
limitation, fire, extended coverage, vandalism, malicious mischief, flood,
earthquake, public liability, product liability, business interruption and
terrorism) as is usually carried by companies engaged in similar businesses and
owning similar properties in the same general areas in which the Borrower
Parties or the Macerich Core Entities engage in business or own properties.

 

7.9.                              Hazardous Materials. The Borrower Parties
shall, and shall cause each of the Macerich Core Entities to, do the following:

 

(1)                                  Keep and maintain all Designated
Environmental Properties in material compliance with any Hazardous Materials
Laws unless the failure to so comply would not be reasonably expected to result
in a material adverse effect to such Designated Environmental Property or the
owner thereof.

 

(2)                                  Promptly cause the removal of any
Hazardous Materials discharged, disposed of, or otherwise released in, on or
under any Designated Environmental Properties that are in violation of any
Hazardous Materials Laws and which would be reasonably expected to result in a
material adverse effect to such Designated Environmental Property or the owner
thereof, and cause any remediation required by any Hazardous Material Laws or
Governmental Authority to be performed, though no such action shall be required
if any action is subject to a good faith contest.  In the course of carrying out such actions, the Borrower shall
provide the Administrative Agent with such periodic information and notices
regarding the status of investigation, removal, and remediation, as the
Administrative Agent may reasonably require.

 

(3)                                  Promptly advise the Administrative
Agent, the Issuing Lender and each Lender in writing of any of the
following:  (i) any Hazardous Material
Claims known to the Borrower which would be reasonably expected to result in a
material adverse effect to an Environmental Property or the owner thereof;
(ii) the receipt of any notice of any alleged violation of Hazardous
Materials Laws with respect to an Environmental Property (and the Borrower
shall promptly provide the Administrative Agent, the Issuing Lender and Lenders
with a copy of such notice of violation), provided that such alleged
violation, if true (and if any release of the Hazardous Materials alleged
therein were not promptly remediated), would result in a breach of subsections
(1) or (2) above; and (iii) the discovery of any occurrence or condition
on any Designated Environmental Properties that could cause such Designated
Environmental Properties or any part thereof to be in violation of clauses (1)
or, if not promptly remediated, (2) above. 
If the Administrative Agent, the Issuing Lender and/or any Lender shall
be joined in any legal proceedings or actions initiated in connection with any
Hazardous Materials Claims, each Borrower Party shall indemnify, defend, and
hold harmless such Person with respect to any liabilities and out-of-pocket
expenses arising with respect thereto, including reasonable attorneys’ fees and
disbursements.

 

(4)                                  Comply with each of the covenants
set forth in subsections (1), (2) and (3) of this Section 7.9 with
respect to all other Properties of the Borrower and Macerich Core Entities
unless the failure to so comply would not reasonably be expected to result in a
Material Adverse Effect.

 

37

 

7.10.                        Compliance with Laws and
Contractual Obligations; Payment of Taxes.  The Borrower Parties shall, and shall cause
each of the Macerich Core Entities to: 
(1) comply, in all material respects, with all material Requirements of
Law of any Governmental Authority having jurisdiction over it or its business,
and (2) comply, in all material respects, with all material Contractual
Obligations.

 

7.11.                        Further Assurances.  The Borrower Parties shall, and shall cause
each of their respective Subsidiaries to, promptly upon request by the
Administrative Agent, the Issuing Lender or any Lender, do any acts or,
execute, acknowledge, deliver, record, re-record, file, re-file, register and
re-register, any and all such further deeds, conveyances, security agreements,
mortgages, assignments, estoppel certificates, financing statements and
continuations thereof, termination statements, notices of assignment,
transfers, certificates, assurances and other instruments the Administrative
Agent, the Issuing Lender or such Lender, as the case may be, may reasonably
require from time to time in order (i) to carry out more effectively the
purposes of this Agreement or any other Loan Document, and (ii) to assure,
convey, grant, assign, transfer, preserve, protect and confirm to the
Administrative Agent, the Issuing Lender and Lenders the rights granted or now
or hereafter intended to be granted to the Issuing Lender or Lenders under any
Loan Document or under any other document executed in connection therewith.

 

7.12.                        RESERVED.

 

7.13.                        REIT Status. 
MAC shall maintain its status as a REIT and (i) all of the
representations and warranties set forth in clauses (1), (2) and (4) of Section 6.18
shall remain true and correct at all times and (ii) all of the representations
and warranties set forth in clause (3) of Section 6.18 shall remain
true and correct in all material respects. 
MAC will do or cause to be done all things necessary to maintain the
listing of its Capital Stock on the New York Stock Exchange, the American Stock
Exchange or the Nasdaq National Market System (or any successor thereof), and
the Macerich Partnership will do or cause to be done all things necessary to
cause it to be treated as a partnership for purposes of federal income taxation
and the tax laws of any state or locality in which the Macerich Partnership is
subject to taxation based on its income.

 

7.14.                        Use of Proceeds.  The proceeds of the Loans will be used (i) to re-finance the
Existing Credit Facility, (ii) to be available for general corporate purposes,
(iii) to repay amounts outstanding under the Existing Term Loan, and (iv) to
finance working capital needs.

 

7.15.                        RESERVED.

 

7.16.                        RESERVED.

 

7.17.                        Management of Projects.  All Wholly-Owned Projects shall be managed
by Subsidiaries of MAC pursuant to Master Management Agreements or, with
respect to Wholly-Owned Projects of Westcor, pursuant to agreements in place on
the date hereof.

 

ARTICLE 8.                                Negative
Covenants.  As an inducement to the
Administrative Agent, the Issuing Lender and each Lender to enter into this
Agreement, each of the Borrower  and
MAC, jointly and severally, hereby covenants and agrees with the Administrative
Agent, the Issuing Lender and each Lender that, as long as any Obligations
remain unpaid:

 

38

 

8.1.          Liens.  The
Borrower Parties shall not, and shall not permit any of the Macerich Core
Entities to, create, incur, assume or suffer to exist, any Lien upon any of its
Property except:

 

(1)                                  Liens
that secure Secured Indebtedness otherwise permitted under this Agreement;

 

(2)                                  Permitted
Encumbrances;

 

(3)                                  Other
Liens which are the subject of a Good Faith Contest; and

 

(4)                                  Liens
listed on Schedule 8.1.

 

No
Liens on the Capital Stock held by MAC in the Borrower shall be created or
suffered to exist.  If any of the
Borrower Parties or any of the Macerich Core Entities creates or suffers to
exist any Lien upon the Capital Stock of any other Subsidiary Entity, as a
condition to creating or permitting such Lien, Borrower shall:  (i) cause the Obligations to be secured by a
Lien that is equal and ratable with any and all other Indebtedness thereby
secured, (ii) enter into valid and binding security agreements and execute and
deliver such other documents (including UCC-1 financing statements) and
instruments as the Administrative Agent deems appropriate in its sole good
faith judgment to effect the rights set forth in subpart (i) above, and (iii)
cause the holder of such Indebtedness secured by such Lien to enter into
intercreditor arrangements with the Administrative Agent, for the benefit of
the Lenders, in a form satisfactory to the Administrative Agent in its sole
good faith judgment, to effect the rights set forth in subpart (i) above; provided
that, notwithstanding the foregoing, this covenant shall not be construed as a
consent by the Administrative Agent or any Lender to any creation or assumption
of any such Lien not permitted by the provisions of Section 8.1(1) above.

 

8.2.          Indebtedness. 
The Borrower Parties may only incur, and permit the Macerich Core Entities
to incur Indebtedness to the extent such Borrower Parties maintain compliance
with the financial covenants set forth in Sections 8.12 below.  Without limiting the foregoing, the Borrower
Parties shall not incur Secured Recourse Indebtedness in excess of 10% of Gross
Asset Value at any time; provided, however that the Property at
Queens Center shall be excluded from such calculation.  The terms and conditions of any
unsecured Indebtedness that is recourse to any Borrower Party may not be more
restrictive in any material respect than the terms and conditions under this
Agreement and the other Loan Documents.

 

8.3.          Fundamental Change.

 

(1)                                  None
of MAC, the Borrower, or the Westcor Principal Entities shall do any or all of
the following:  merge or consolidate
with any Person, or sell, assign, lease or otherwise effect a Disposition,
whether in one transaction or in a series of transactions, of all or
substantially all of its Properties and assets, whether now owned or hereafter
acquired, or enter into any agreement to do any of the foregoing, unless, in
the case of (i) a Westcor Principal Entity, a Macerich Core Entity is the
surviving entity in any such merger, consolidation or sale of assets, and
(ii)  MAC or the Borrower, MAC or the
Borrower is the surviving Person in any such merger or consolidation.

 

39

 

(2)                                  None
of the Borrower Parties shall, nor shall they permit any Macerich Core Entities
to, engage to any material extent in any business other than such Person’s
business as conducted on the date hereof and businesses which are substantially
similar, related or incidental thereto or other additional businesses that
would not have a Material Adverse Effect.

 

8.4.                              Dispositions.  The Borrower Parties shall not permit any of
the following to occur:

 

(1)                                  Any
Disposition by MAC of any of the Capital Stock of Macerich Partnership or any
of the Westcor Guarantors; provided that the forgoing shall not prohibit
Macerich Partnership from issuing partnership units as consideration for the
acquisition of a Project otherwise permitted under this Agreement;

 

(2)                                  Any
Disposition by Macerich Partnership of any of the Capital Stock of any Westcor
Guarantor;

 

(3)                                  Any
Disposition by any Westcor Guarantor of any of the Capital Stock of any Westcor
Principal Entity; or

 

(4)                                  Any
Disposition by any Borrower Party or its Subsidiary Entities of any of its
respective Properties if such Disposition would cause the Borrower Parties to
be in violation of any of (a) the covenants set forth in Section 8.12
or (b) the limitations on Investments set forth in Section 8.5.

 

8.5.                              Investments.  The Borrower Parties shall not, and shall
not permit any of the Macerich Core Entities to, directly or indirectly make
any Investment, except that such Persons may make an Investment in the
following, subject to the limitations set forth below:

 

	
  Permitted Investment

  	
   

  	
  Limitations

  
	
  Wholly-Owned Raw Land

  	
   

  	
  No Wholly-Owned Raw Land shall be acquired if the Aggregate
  Investment Value of such Wholly-Owned Raw Land, together with all
  Wholly-Owned Raw Land then owned by the Borrower Parties and their Subsidiary
  Entities, exceeds 5% of the Gross Asset Value

  
	
   

  	
   

  	
   

  
	
  Individual Projects

  	
   

  	
  No individual Project or Capital Stock in a Person owning an
  individual Project shall be acquired without the consent of the
  Administrative Agent and the Required Lenders if the Aggregate Investment
  Value of such Project exceeds 10% of the Gross Asset

  

 

40

 

	
  Permitted Investment

  	
   

  	
  Limitations

  
	
   

  	
   

  	
  Value

  
	
   

  	
   

  	
   

  
	
  Portfolio of Projects

  	
   

  	
  Multiple Projects or Capital Stock in Persons owning multiple
  Projects shall not be acquired in a single transaction or series of related
  transactions without the consent of the Administrative Agent and the Required
  Lenders if the Aggregate Investment Value of such Projects exceeds 25% of the
  Gross Asset Value

  
	
   

  	
   

  	
   

  
	
  Capital Stock of Joint Ventures in which the Macerich Partnership,
  MAC or any Wholly-Owned Subsidiary is not a general partner or a managing
  member

  	
   

  	
  No such Capital Stock shall be acquired without the consent of the
  Administrative Agent and the Required Lenders if the Aggregate Investment
  Value of such Capital Stock and all other such Capital Stock then owned by
  the Borrower Parties and their Subsidiary Entities exceeds 5% of the Gross
  Asset Value

  
	
   

  	
   

  	
   

  
	
  Capital Stock of Joint Ventures in which the Macerich Partnership,
  MAC or any Wholly-Owned Subsidiary is a general partner or a managing member

  	
   

  	
  No such Capital Stock shall be acquired without the consent of the
  Administrative Agent and the Required Lenders if the Aggregate Investment
  Value of such Capital Stock and all other such Capital Stock then owned by
  the Borrower Parties and their Subsidiary Entities exceeds 50% of Gross Asset
  Value

  
	
   

  	
   

  	
   

  
	
  Real Property Under Construction

  	
   

  	
  The Aggregate Investment Value of all Real Property Under
  Construction shall not exceed 15% of the Gross Asset Value

  
	
   

  	
   

  	
   

  
	
  MAC’s redemption of partnership units in Macerich Partnership in
  accordance with its Organizational Documents

  	
   

  	
  Unlimited

  
	
   

  	
   

  	
   

  
	
  First lien priority Mortgage Loans acquired by Macerich Partnership,
  MAC

  	
   

  	
  The Aggregate Investment Value of all such Mortgage Loans shall not

  

 

41

 

	
  Permitted Investment

  	
   

  	
  Limitations

  
	
  or any Wholly-Owned Subsidiary

  	
   

  	
  exceed 10% of the Gross Asset Value

  
	
   

  	
   

  	
   

  
	
  Capital Stock of Management Companies

  	
   

  	
  The Aggregate Investment Value of such Capital Stock shall not exceed
  5% of Gross Asset Value

  
	
   

  	
   

  	
   

  
	
  Cash and Cash Equivalents

  	
   

  	
  Unlimited

  
	
   

  	
   

  	
   

  
	
  Other Investments (exclusive of the other permitted Investment
  categories set forth in this Section 8.5)

  	
   

  	
  The Aggregate Investment Value of such other Investments shall not
  exceed 1% of Gross Asset Value

  

 

8.6.                              Transactions with Partners and
Affiliates.  The Borrower Parties
shall not, and shall not permit any of the Macerich Core Entities to directly
or indirectly enter into or permit to exist any transaction (including, without
limitation, the purchase, sale, lease or exchange of any property or the
rendering of any service) with a holder or holders of more than five percent
(5%) of any class of equity Securities of MAC, or with any Affiliate of MAC
which is not its Subsidiary (a “Transactional Affiliate”), except as set
forth on Schedule 8.6 or except, as reasonably determined by the
Administrative Agent, upon fair and reasonable terms no less favorable to the
Borrower Parties than would be obtained in a comparable arm’s-length
transaction with a Person not a Transactional Affiliate; provided that any
management agreement substantially in the form of the Master Management
Agreements shall be deemed to satisfy the criteria set forth in this Section 8.6.

 

8.7.                              Margin Regulations; Securities Laws.  Neither the Borrower nor any Macerich Core
Entities shall use all or any portion of the proceeds of any credit extended
under this Agreement to purchase or carry Margin Stock.

 

8.8.                              Organizational Documents.  Without the prior written consent of
Administrative Agent, which shall not be unreasonably withheld, MAC and the
Borrower shall not, and shall not permit the Westcor Principal Entities to,
Modify any of the terms or provisions in any of their respective Organizational
Documents as in effect as of the Closing Date which would change in any
material manner the rights and obligations of the parties to such
Organizational Documents, except (a) any Modifications necessary for Macerich
Partnership or MAC to issue more Capital Stock (provided such issuance does not
otherwise violate the terms of this Agreement); or (b) any Modifications which
would not have an adverse effect on the Borrower Parties or their Subsidiaries.

 

8.9.                              Fiscal
Year.  None of the Borrower
Parties shall change its Fiscal Year for accounting or tax purposes from a
period consisting of the 12-month period ending on December 31 of each
calendar year.

 

8.10.                        Senior
Management.  The Macerich
Partnership and MAC shall cause Art Coppola and either Ed Coppola or Thomas E.
O’Hern to remain part of their senior management

 

42

 

until the indefeasible payment in full of the Obligations.  In the event of death, incapacitation,
retirement, or dismissal of any of these individuals, Macerich Partnership and
MAC shall have 180 calendar days thereafter in which to retain a senior
management replacement reasonably acceptable to the Required Lenders.

 

8.11.                        Distributions.  MAC and Macerich Partnership shall not make
(i) Distributions in any Fiscal Year in excess of the sum of (x) 95% of FFO
plus (y) any realized gain resulting from Dispositions in such Fiscal Year;
(ii) Distributions to acquire the Capital Stock of MAC to the extent such
Distributions, individually or in the aggregate, exceed $150,000,000; (iii)
Distributions during any period while an Event of Default under Section 9.1
has occurred and is continuing as a result of Borrower’s failure to pay any
principal or interest due under this Agreement; or (iv) Distributions
during any period that any other material non-monetary Event of Default, has
occurred and is continuing, unless after taking into account all available
funds of MAC from all other sources, such Distributions are required in order
to enable MAC to continue to qualify as a REIT.

 

8.12.                        Financial Covenants of Borrower
Parties.

 

(1)                                  Minimum Tangible Net Worth.
As of the last day of any Fiscal Quarter, Tangible Net Worth shall not be less
than the sum of (a) $750,000,000, minus (b) 100% of the cumulative
Depreciation and Amortization Expense deducted in determining Net Income for
all Fiscal Quarters ending after June 30, 2004, plus (c) 90% of the
cumulative net cash proceeds received from and the value of assets acquired
(net of Indebtedness incurred or assumed in connection therewith) through the
issuance of Capital Stock of MAC or the Borrower after the Closing Date.  For purposes of clause (c), “net” means net
of underwriters’ discounts, commissions and other reasonable out-of-pocket
expenses of issuance actually paid to any Person (other than a Borrower Party
or any Affiliate of a Borrower Party).

 

(2)                                  Maximum Total Liabilities to Gross
Asset Value. The ratio of Total Liabilities to Gross Asset Value
(expressed as a percentage) shall not at any time be more than 65.0%.

 

(3)                                  Minimum Interest Coverage Ratio.
As of the last day of any Fiscal Quarter, the Interest Coverage Ratio shall not
be less than 1.80 to 1.

 

(4)                                  Minimum Fixed Charge Coverage Ratio.
As of the last day of any Fiscal Quarter, the Fixed Charge Coverage Ratio shall
not be less than 1.50 to 1.

 

(5)                                  Secured Debt to Gross Asset Value.  At any time during the first twenty four
Loan Months, the Secured Indebtedness Ratio (expressed as a percentage) shall
not exceed 55%.  At any time thereafter,
the Secured Indebtedness Ratio (expressed as a percentage) shall not exceed
52.5%.

 

(6)                                  [RESERVED]

 

(7)                                  Maximum Floating Rate Debt.  The Borrower Parties shall maintain
Hedging Obligations on a notional amount of Total Liabilities in respect of
borrowed Indebtedness so that such notional amount, when added to the aggregate
principal amount of

 

43

 

such Total Liabilities which bears interest at a fixed rate, equals or
exceeds 65% of the aggregate principal amount of all Total Liabilities in
respect of borrowed Indebtedness.

 

ARTICLE 9.                                Events
of Default.  Upon the occurrence of
any of the following events (an “Event of Default”):

 

9.1.                              The
Borrower shall fail to make any payment of principal or interest on the  Loans or pay any reimbursement obligation in
respect of any LC Disbursement on the date when due or shall fail to pay any
other Obligation within three days of the date when due; or

 

9.2.                              Any
representation or warranty made by the Borrower Parties in any Loan Document or
in connection with any Loan Document shall be inaccurate or incomplete in any
material respect on or as of the date made or deemed made; or

 

9.3.                              Any
of the Borrower Parties shall default in the observance or performance of any
covenant or agreement contained in Section 1.4(11), Article 8
or Sections  7.3(1), 7.5(1), 7.13, and 7.14;
or

 

9.4.                              Any
of the Borrower Parties shall fail to observe or perform any other term or
provision contained in the Loan Documents and such failure shall continue for
thirty (30) days following the date a Responsible Officer of such Borrower
Party knew of such failure or Borrower Party received notice thereof from
Administrative Agent; or

 

9.5.                              Any
of the Borrower Parties, or any Macerich Core Entities, shall default in any
payment of principal of or interest on any recourse Indebtedness (other than,
in the case of the Borrower, the Obligations) in an aggregate unpaid amount for
all such Persons in excess of $15,000,000, and, prior to the election of the
Lenders to accelerate the Obligations hereunder, such recourse Indebtedness is
not paid or the payment thereof waived or cured in accordance with the terms of
the documents, instruments and agreements evidencing the same; or

 

9.6.                              Any
of the Borrower Parties, or any of the Macerich Core Entities, shall default in
any payment of principal of or interest on any non-recourse Indebtedness in an
aggregate amount for all such Persons in excess of $100,000,000, and, prior to
the election of the Lenders to accelerate the Obligations hereunder, such
non-recourse Indebtedness is not paid or the payment thereof waived or cured in
accordance with the terms of the documents, instruments and agreements
evidencing the same; or

 

9.7.                              (1) Any
of the Borrower Parties or any Consolidated Entities (other than a De Minimis
Subsidiary), shall commence any case, proceeding or other action (i) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (ii) seeking appointment of a receiver, trustee,
custodian or other similar official for it or for all or any substantial part
of its assets, or making a general assignment for the benefit of its creditors;
or (2) there shall be commenced against any of the Borrower Parties or any
Consolidated Entities (other than a De Minimis Subsidiary) any case, proceeding
or other action of a nature referred to in clause (1) above which
(i) results in the entry of an order for relief or

 

44

 

any such adjudication or appointment, or (ii) remains undismissed,
undischarged or unbonded for a period of ninety (90) days; or
(3) there shall be commenced against any of the Borrower Parties or any
Consolidated Entities (other than a De Minimis Subsidiary)  any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or substantially all of its assets which results in the entry of an
order for any such relief which shall not have been vacated, discharged,
stayed, satisfied or bonded pending appeal within ninety (90) days from
the entry thereof; or (4) any of the Borrower Parties or any Consolidated
Entities (other than a De Minimis Subsidiary) shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in
(other than in connection with a final settlement), any of the acts set forth
in clause (1), (2) or (3) above; or (5) any of the Borrower Parties or any
Consolidated Entities (other than a De Minimis Subsidiary) shall generally not,
or shall be unable to, or shall admit in writing its inability to pay its debts
as they become due; or

 

9.8.                              (1) An
ERISA Event shall occur with respect to a Pension Plan or Multiemployer Plan
which has resulted or could reasonably be expected to result in liability of
any of the Borrower Parties under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of $20,000,000,
(2) the commencement or increase of contributions to, or the adoption of
or the amendment of a Pension Plan by any of the Borrower Parties or an ERISA
Affiliate which has resulted or could reasonably be expected to result in an
increase in Unfunded Pension Liability among all Pension Plans in an aggregate
amount in excess of $50,000,000 or (3) any of the Borrower Parties or an
ERISA Affiliate shall fail to pay when due, after the expiration of any
applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan, which
has resulted or could reasonably be expected to result in a Material Adverse
Effect; or

 

9.9.                              One
or more judgments or decrees in an aggregate amount in excess of $10,000,000
(excluding judgments and decrees covered by insurance, without giving effect to
self-insurance or deductibles) shall be entered and be outstanding at any date
against any of the Borrower Parties or any Consolidated Entities (other than a
De Minimis Subsidiary) and all such judgments or decrees shall not have been
vacated, discharged, stayed, satisfied or bonded pending appeal (or otherwise
secured in a manner satisfactory to Administrative Agent in its reasonable
judgment) within sixty (60) days from the entry thereof or in any event
later than five days prior to the date of any proposed sale thereunder; or

 

9.10.                        Any
Guarantor shall attempt to rescind or revoke its Guaranty, with respect to
future transactions or otherwise, or shall fail to observe or perform any term
or provision of the Guaranties; or

 

9.11.                        MAC
shall fail to maintain its status as a REIT; or

 

9.12.                        The
Capital Stock of MAC is no longer listed on the NYSE or Nasdaq National Market
System; or

 

9.13.                        There
shall occur an Event of Default under the Existing 2003 Term Loan; or

 

45

 

9.14.                        Any
Event of Default shall occur under any of the other Loan Documents; or

 

9.15.                        There
shall occur a Change of Control;

 

THEN,

 

automatically upon the occurrence of an Event of Default under Section 9.7
above, and in all other cases at the option of the Administrative Agent or at
the request or with the consent of the Required Lenders:  (i) the Commitments shall terminate; (ii)
the Administrative Agent may exercise, on behalf of the Lenders, all rights and
remedies under the Guaranties and any other collateral documents entered into
with respect to the Loans; (iii) the outstanding principal balance of the Loans
and interest accrued but unpaid thereon and all other Obligations shall become
immediately due and payable, without demand upon or presentment to any of the
Borrower Parties, which are expressly waived by the Borrower Parties, and (iv)
the Administrative Agent and the Lenders may immediately exercise all rights,
powers and remedies available to them at law, in equity or otherwise,
including, without limitation, under the other Loan Documents, all of which
rights, powers and remedies are cumulative and not exclusive.

 

ARTICLE 10.                          The
Agents.

 

10.1.                        Appointment.  Each of the Lenders and the Issuing Lender
hereby irrevocably designates and appoints the Administrative Agent as the
agent of such Lender and the Issuing Lender under the Loan Documents and each
of the Lenders and the Issuing Lender hereby irrevocably authorizes the
Administrative Agent, as the agent for such Lender and the Issuing Lender, to
take such action on its behalf under the provisions of the Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to
each such Agent by the terms of the Loan Documents, together with such other
powers as are reasonably incidental thereto. 
Notwithstanding any provision to the contrary elsewhere in the Loan
Documents, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein or therein, or any
fiduciary relationship with any Lender or the Issuing Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into the Loan Documents or otherwise exist against any Agent.

 

10.2.                        Delegation
of Duties.  The Administrative
Agent may execute any of its duties under the Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties.  The Administrative Agent shall not be responsible for the negligence
or misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.

 

10.3.                        Exculpatory
Provisions.  None of the
Administrative Agent, the other Agents, nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates shall be
(1) liable for any action lawfully taken or omitted to be taken by it or
such Person under or in connection with the Loan Documents (except for its or
such Person’s own gross negligence or willful misconduct), or
(2) responsible in any manner to any of the Lenders or the Issuing Lender
for any recitals, statements, representations or warranties made by the
Borrower Parties or any officer thereof contained in the Loan Documents or in
any certificate,

 

46

 

report, statement or other document referred to or provided for in, or
received by the Administrative Agent under or in connection with the Loan
Documents or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of the Loan Documents or for any failure of the
Borrower Parties to perform their obligations hereunder.  The Administrative Agent and all other
Agents shall not be under any obligation to any Lender or the Issuing Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, the Loan Documents or to inspect the
properties, books or records of the Borrower Parties.

 

10.4.                        Reliance
by the Agents.  Each of the
Agents shall be entitled to rely, and shall be fully protected in relying, upon
any note, writing, resolution, notice, consent, certification, affidavit,
letter, cablegram, telegram, telecopy, telex or teletype message, statement,
order or other document or conversation reasonably believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Borrower), independent accountants and other experts
selected by such Agent.  As to the
Lenders and the Issuing Lender:  (1) the
Administrative Agent shall be fully justified in failing or refusing to take
any action under the Loan Documents unless it shall first receive such advice
or concurrence of one hundred percent (100%) of the Lenders and the Issuing
Lender (or, if a provision of this Agreement expressly provides that a lesser
number of the Lenders may direct the action of the Administrative Agent, such
lesser number of Lenders) or it shall first be indemnified to its satisfaction
by the Lenders and the Issuing Lender ratably in accordance with their
respective Applicable Percentage against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any
action (except for liabilities and expenses resulting from the Administrative
Agent’s gross negligence or willful misconduct), and (2) the Administrative
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under the Loan Documents in accordance with a request of one hundred
percent (100%) of the Lenders and the Issuing Lender (or, if a provision of
this Agreement expressly provides that the Administrative Agent shall be
required to act or refrain from acting at the request of a lesser number of the
Lenders, such lesser number of Lenders), and such request and any action taken
or failure to act pursuant thereto shall be binding upon all the Lenders, and
the Issuing Lender.

 

10.5.                        Notice
of Default.  The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Potential Default or Event of Default hereunder unless the Administrative Agent
has received notice from a Lender or, the Issuing Lender or the Borrower
referring to the Loan Documents, describing such Potential Default or Event of
Default and stating that such notice is a “notice of default.”  In the event that the Administrative Agent
receives such a notice and a Potential Default has occurred, the Administrative
Agent shall promptly give notice thereof to the Lenders.  The Administrative Agent shall take such
action with respect to such Potential Default or Event of Default as shall be
reasonably directed by the Required Lenders; provided that, unless and
until the Administrative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Potential Default or
Event of Default as it shall deem advisable in the best interest of the
Required Lenders (except to the extent that this Agreement or the Guaranties
expressly require that such action be taken or not taken by the Administrative
Agent with the consent or upon the authorization of the Required Lenders or
such

 

47

 

other group of Lenders, in which case such action will be taken or not
taken as directed by the Required Lenders or such other group of Lenders).

 

10.6.                        Non-Reliance on Agents and Other
Lenders.  Each of the Lenders
and the Issuing Lender expressly acknowledges that none of the Administrative
Agent, the other Agents nor any of their respective officers, directors,
employees, agents, attorneys-in-fact or affiliates has made any representations
or warranties to it and that no act by the Administrative Agent or the other
Agents hereinafter taken, including any review of the affairs of the Borrower,
shall be deemed to constitute any representation or warranty by the
Administrative Agent or the other Agents to any Lender or the Issuing Lender.  Each of the Lenders and the Issuing Lender
represents to the Administrative Agent and the other Agents that it has,
independently and without reliance upon the Administrative Agent, the other
Agents or any other Lender or the Issuing Lender, and based on such documents
and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower Parties and made its own
decision to make its loans hereunder and enter into this Agreement.  Each Lender and the Issuing Lender also
represents that it will, independently and without reliance upon the
Administrative Agent, the other Agents or any other Lender or the Issuing
Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and decisions in taking or not taking action under this Agreement, and to make
such investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Borrower.  Except for notices, reports
and other documents expressly required to be furnished to the Lenders and the
Issuing Lender by the Administrative Agent hereunder, the Administrative Agent,
the other Agents shall not have any duty or responsibility to provide any
Lender or the Issuing Lender with any credit or other information concerning
the business, operations, property, financial and other condition or creditworthiness
of the Borrower or other Borrower Parties which may come into the possession of
the Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates.

 

10.7.                        Indemnification.  The Lenders and the Issuing Lender agree to
indemnify the Administrative Agent and the other Agents in their respective
capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to its
Applicable Percentage, from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind whatsoever which may at any time (including without
limitation at any time following the payment of the Obligations) be imposed on,
incurred by or asserted against the Administrative Agent or the other Agents in
any way relating to or arising out of the Loan Documents or any documents
contemplated by or referred to herein or the transactions contemplated hereby
or any action taken or omitted by the Administrative Agent or the other Agents
under or in connection with any of the foregoing; provided that no
Lender, nor the Issuing Lender, shall be liable for the payment of any portion
of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the
Administrative Agent’s or any other Agent’s gross negligence or willful
misconduct, respectively.  The
provisions of this Section 10.7 shall survive the indefeasible
payment of the Obligations, the Commitment Termination Date and the termination
of this Agreement.

 

48

 

10.8.                        Agents in Their Individual Capacity.  The Administrative Agent, the other Agents
and their affiliates may make loans to, accept deposits from and generally
engage in any kind of business with any of the Borrower Parties or any of their
respective Subsidiaries Entities and Affiliates as though the Administrative
Agent and the other Agents were not, respectively, the Administrative Agent, a
Syndication Agent or an Agent hereunder. 
With respect to such loans made or renewed by them and any Note issued
to them, the Administrative Agent and the other Agents shall have the same
rights and powers under the Loan Documents as any Lender and may exercise the
same as though it were not the Administrative Agent, a Syndication Agent or an
Agent, respectively, and the terms “Lender” and “Lenders” shall include the
Administrative Agent, each Syndication Agent and each other Agent in its
individual capacity.

 

10.9.                        Successor Administrative Agent.  The Administrative Agent may resign as
Administrative Agent under the Loan Documents upon thirty (30) days’
notice to the Lenders.  If the
Administrative Agent shall resign, then the Lenders and the Issuing Lender
(other than the Lender resigning as Administrative Agent) shall (with, so long
as there shall not exist and be continuing an Event of Default, the consent of
the Borrower, such consent not to be unreasonably withheld or delayed) appoint
from among the Lenders a successor agent or, if the Lenders and the Issuing
Lender are unable to agree on the appointment of a successor agent, the
Administrative Agent shall appoint a successor agent for the Lenders and the
Issuing Lender whereupon such successor agent shall succeed to the rights,
powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon its appointment, and the
former Administrative Agent’s rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement or any
of the Loan Documents or successors thereto. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of the Loan Documents shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Administrative
Agent under the Loan Documents.

 

10.10.                  [RESERVED].

 

10.11.                  Limitations
on Agents Liability.  None of
the Co-Syndication Agents, the Co-Documentation Agent, the Senior Managing
Agents, or the Co-Lead Arrangers, in such capacities, shall have any right,
power, obligation, liability, responsibility or duty under this Agreement.

 

ARTICLE 11.                          Miscellaneous
Provisions.

 

11.1.                        No Assignment by the Borrower.  None of the Borrower Parties may assign its
rights or obligations under this Agreement or the other Loan Documents without
the prior written consent of the Administrative Agent and one hundred percent
(100%) of the Lenders and the Issuing Lender. 
Subject to the foregoing, all provisions contained in this Agreement and
the other Loan Documents and in any document or agreement referred to herein or
therein or relating hereto or thereto shall inure to the benefit of the
Administrative Agent, the Issuing Lender and each Lender, their respective
successors and assigns, and shall be binding upon each of the Borrower Parties
and such Person’s successors and assigns.

 

49

 

11.2.                        Modification.  Neither this Agreement nor any other Loan
Document may be Modified or waived unless such Modification or waiver is in writing
and signed by the Administrative Agent, the Guarantor, the Borrower and, except
with respect to the Modifications and waivers described in the next sentence
requiring unanimous approval of the Lenders, the Required Lenders.  Notwithstanding the foregoing, no such
Modification or waiver shall, without the prior written consent of one hundred
percent (100%) of the Lenders and the Issuing Lender:  (1) reduce the principal of, or rate of interest on, any
Loan or any LC Disbursement or fees payable hereunder, (2) except as
expressly contemplated by this Section 11.2 and Section 11.8
below, modify the Commitment of any Lender or the Issuing Lender,
(3) Modify the definition of “Required Lenders”, (4) extend or waive
any scheduled payment date for any principal, interest or fees,
(5) release MAC from its obligations under the REIT Guaranty, or release
the Macerich Partnership from its obligation to repay the Loans and LC
Disbursements hereunder, (6) Modify this Section 11.2, or (7)
Modify any provision of the Loan Documents which by its terms requires the
consent or approval of one hundred percent (100%) of the Lenders and the
Issuing Lender.  Further, it is
expressly agreed and understood that the failure by the Required Lenders to
elect to accelerate amounts outstanding hereunder and/or to terminate the
Commitments of the Lenders and the Issuing Lender hereunder shall not
constitute a Modification or waiver of any term or provision of this
Agreement.  No Modification of any
provision of the Loan Documents relating to the Administrative Agent shall be
effective without the written consent of the Administrative Agent.

 

11.3.                        Cumulative Rights; No Waiver.  The rights, powers and remedies of the
Administrative Agent, the Issuing Lender and the Lenders hereunder and under
the other Loan Documents are cumulative and in addition to all rights, power
and remedies provided under any and all agreements among the Borrower Parties,
the Administrative Agent, the Issuing Lender and the Lenders relating hereto,
at law, in equity or otherwise.  Any
delay or failure by Administrative Agent, the Issuing Lender and the Lenders to
exercise any right, power or remedy shall not constitute a waiver thereof by
the Administrative Agent, the Issuing Lender or the Lenders, and no single or
partial exercise by the Administrative Agent, the Issuing Lender or the Lenders
of any right, power or remedy shall preclude other or further exercise thereof
or any exercise of any other rights, powers or remedies.

 

11.4.                        Entire
Agreement.  This Agreement, the
other Loan Documents and the schedules, appendices, documents and agreements
referred to herein and therein embody the entire agreement and understanding
between the parties hereto and supersede all prior agreements and
understandings relating to the subject matter hereof and thereof.

 

11.5.                        Survival.  All representations, warranties, covenants
and agreements contained in this Agreement and the other Loan Documents on the
part of the Borrower Parties shall survive the termination of this Agreement and
shall be effective until the Obligations are paid and performed in full or
longer as expressly provided herein.

 

11.6.                        Notices.  All notices given by any party to the others
under this Agreement and the other Loan Documents shall be in writing unless
otherwise provided for herein, and any such notice shall become effective (i)
upon personal delivery thereof, including, but not limited to, delivery by
overnight mail and courier service, (ii) four (4) days after it shall have been
mailed by United States mail, first class, certified or registered, with
postage prepaid, or (iii) in

 

50

 

the case of notice by a telecommunications device, when properly
transmitted, in each case addressed to the party at the address set forth on Schedule 11.6
attached hereto.  Any party may change
the address to which notices are to be sent by notice of such change to each
other party given as provided herein. 
Such notices shall be effective on the date received or, if mailed, on the
third Business Day following the date mailed.

 

11.7.                        Governing
Law.  This Agreement and the
other Loan Documents shall be governed by and construed in accordance with the
laws of the State of New York without giving effect to its choice of law rules.

 

11.8.                        Assignments,
Participations, Etc.

 

(1)                                  With
the prior written consent of the Administrative Agent and, but only if there
has not occurred and is continuing an Event of Default or Potential Default,
MAC, in each case such consents not to be unreasonably withheld or delayed, any
Lender may at any time assign and delegate to one or more Eligible Assignees (provided
that no written consent of MAC or the Administrative Agent shall be required in
connection with any assignment and delegation by a Lender to an Affiliate of
such Lender or to another Lender or its Affiliate) (each an “Assignee”)
all or any part of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing
to it) and the other Obligations held by such Lender hereunder, in a minimum
amount of $5 million (or (A) if such Assignee is another Lender or an Affiliate
of a Lender, $1 million; and (B) if such Lender’s Commitment is less than $5
million, one hundred percent (100%) thereof); provided, however,
that MAC, the Borrower, the Issuing Lender and the Administrative Agent may
continue to deal solely and directly with such Lender in connection with the
interest so assigned to an Assignee until (i) written notice of such assignment,
together with payment instructions, addresses and related information with
respect to the Assignee, shall have been given to the Borrower, the Issuing
Lender and the Administrative Agent by such Lender and the Assignee;
(ii) such Lender and its Assignee shall have delivered to the Borrower and
the Administrative Agent an Assignment and Acceptance Agreement and
(iii) the Assignee has paid to the Administrative Agent a processing fee
in the amount of $3,500.

 

(A)                              From
and after the date that the Administrative Agent notifies the assignor Lender
and the Borrower that it has received an executed Assignment and Acceptance
Agreement and payment of the above-referenced processing fee:  (i) the Assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder and under
the other Loan Documents have been assigned to it pursuant to such Assignment
and Acceptance Agreement, shall have the rights and obligations of a Lender
under the Loan Documents, (ii) the assignor Lender shall, to the extent
that rights and obligations hereunder and under the other Loan Documents have
been assigned by it pursuant to such Assignment and Acceptance Agreement,
relinquish its rights and be released from its obligations under the Loan
Documents (but shall be entitled to indemnification as otherwise provided in
this Agreement with respect to any events occurring prior to the assignment)
and (iii) this Agreement shall be deemed to be amended to the extent, but only
to the extent, necessary to reflect the addition of the Assignee and the
resulting adjustment of the Commitments resulting therefrom.

 

51

 

(2)                                  Within
five Business Days after its receipt of notice by the Administrative Agent that
it has received an executed Assignment and Acceptance Agreement and payment of
the processing fee (which notice shall also be sent by the Administrative Agent
to each Lender), the Borrower shall, if requested by the Assignee, execute and
deliver to the Administrative Agent, a new Note evidencing such Assignee’s
Applicable Percentage of the Commitments.

 

(3)                                  Any
Lender may at any time sell to one or more commercial banks or other Persons
not Affiliates of the Borrower (a “Participant”) participating interests
in all or any portion of its rights and obligations under this Agreement and
the other Loan Documents (including all or a portion of its Commitments and the
Loans owing to it) (the “originating Lender”); provided, however,
that (i) the originating Lender’s obligations under this Agreement shall
remain unchanged, (ii) the originating Lender shall remain solely
responsible for the performance of such obligations, and (iii) the
Borrower, the Issuing Lender and the Administrative Agent shall continue to
deal solely and directly with the originating Lender in connection with the
originating Lender’s rights and obligations under this Agreement and the other
Loan Documents.  In the case of any such
participation, the Participant shall be entitled to the benefit of Sections 2.5,
2.6 and 2.7 (and subject to the burdens of Sections 2.8
and 11.8 above) as though it were also a Lender thereunder, and if
amounts outstanding under this Agreement are due and unpaid, or shall have been
declared or shall have become due and payable upon the occurrence of an Event
of Default, each Participant shall be deemed to have the right of set-off in
respect of its participating interest in amounts owing under this Agreement to
the same extent as if the amount of its participating interest were owing
directly to it as a Lender under this Agreement, and Section 11.10
of this Agreement shall apply to such Participant as if it were a Lender party
hereto.

 

(4)                                  Notwithstanding
any other provision contained in this Agreement or any other Loan Document to the
contrary, any Lender may assign all or any portion of its rights and
obligations under this Agreement and the other Loan Documents (including all or
a portion of its Commitments and the Loans owing to it) to any Federal Reserve
Lender or the United States Treasury as collateral security pursuant to
Regulation A of the Board of Governors of the Federal Reserve System and any
Operating Circular issued by such Federal Reserve Lender, provided that
any payment in respect of such assigned interests made by the Borrower to or
for the account of the assigning and/or pledging Lender in accordance with the
terms of this Agreement shall satisfy the Borrower’s obligations hereunder in
respect to such assigned interests to the extent of such payment.  No such assignment shall release the
assigning Lender from its obligations hereunder.

 

11.9.                        Counterparts.  This Agreement and the other Loan Documents
may be executed in any number of counterparts, all of which together shall
constitute one agreement.

 

11.10.                  Sharing
of Payments.  If any Lender or
the Issuing Lender shall receive and retain any payment, whether by setoff,
application of deposit balance or security, or otherwise, in respect of the
Obligations in excess of such Lender’s or the Issuing Lender’s Applicable Percentage,
then such Lender or Issuing Lender shall purchase from the other Lenders for
cash and at face value and without recourse, such participation in the
Obligations held by them as shall be necessary to cause such excess payment to
be shared ratably as

 

52

 

aforesaid with each of them; provided, that if such excess
payment or part thereof is thereafter recovered from such purchasing Lender or
Issuing Lender, the related purchases from the other Lenders shall be rescinded
ratably and the purchase price restored as to the portion of such excess
payment so recovered, but without interest. 
Each Lender and the Issuing Lender are hereby authorized by the Borrower
Parties to exercise any and all rights of setoff, counterclaim or bankers’ lien
against the full amount of the Obligations, whether or not held by such Lender
or the Issuing Lender.  Each of the
Lenders and the Issuing Lender hereby agree to exercise any such rights first
against the Obligations and only then to any other Indebtedness of the Borrower
to such Lender or Issuing Lender.

 

11.11.                  Confidentiality.  Each Lender and the Issuing Lender agree to
take normal and reasonable precautions and exercise due care to maintain the
confidentiality of all information provided to it by any of the Borrower
Parties or by the Administrative Agent on the Borrower Parties’ behalf, in
connection with this Agreement or any other Loan Document, and neither it nor
any of its Affiliates shall use any such information for any purpose or in any
manner other than pursuant to the terms contemplated by this Agreement, except
to the extent such information: 
(1) was or becomes generally available to the public other than as
a result of a disclosure by any Lender or the Issuing Lender or any prospective
Lender, or (2) was or becomes available from a source other than the
Borrower Parties not known to the Lenders or the Issuing Lender to be in breach
of an obligation of confidentiality to the Borrower Parties in the disclosure of
such information.  Nothing contained
herein shall restrict any Lender or the Issuing Lender from disclosing such
information (i) at the request or pursuant to any requirement of any
Governmental Authority; (ii) pursuant to subpoena or other court process;
(iii) when required to do so in accordance with the provisions of any
applicable Requirement of Law; (iv) to the extent reasonably required in
connection with any litigation or proceeding to which the Administrative Agent,
the Issuing Lender, any Lender or their respective Affiliates may be party;
(v) to the extent reasonably required in connection with the exercise of
any remedy hereunder or under any other Loan Document; (vi) to such
Lender’s or Issuing Lender’s independent auditors and other professional
advisors; and (vii) to any Participant or Assignee and to any prospective
Participant or Assignee, provided that each Participant and Assignee or
prospective Participant or Assignee first agrees to be bound by the provisions
of this Section 11.11.

 

11.12.                  Consent
to Jurisdiction.  ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK
COUNTY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY
EXECUTION AND DELIVERY OF THIS CREDIT AGREEMENT, EACH OF THE BORROWER, MAC, THE
ADMINISTRATIVE AGENT, THE ISSUING LENDER AND THE LENDERS CONSENTS, FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE
COURTS.  EACH OF THE BORROWER, MAC, THE
ADMINISTRATIVE AGENT, THE ISSUING LENDER AND THE LENDERS IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS
AGREEMENT OR ANY DOCUMENT RELATED HERETO. 
EACH OF THE BORROWER, MAC, THE ADMINISTRATIVE AGENT, THE ISSUING LENDER
AND THE LENDERS

 

53

 

EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS,
WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.

 

11.13.                  Waiver
of Jury Trial.  EACH OF THE
BORROWER, MAC, THE ADMINISTRATIVE AGENT, THE ISSUING LENDER AND THE LENDERS
EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER
LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY
ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
PARTIES AGAINST ANY OTHER PARTY OR ANY PARTICIPANT OR ASSIGNEE, WHETHER WITH
RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  EACH OF THE BORROWER, MAC, THE
ADMINISTRATIVE AGENT, THE ISSUING LENDER AND THE LENDERS EACH AGREE THAT ANY
SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A
JURY.  WITHOUT LIMITING THE FOREGOING,
EACH OF SUCH PARTIES FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM
OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY
OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY
PROVISION HEREOF OR THEREOF.  THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

 

11.14.                  Indemnity.  Whether or not the transactions contemplated
hereby are consummated, each of the Borrower and MAC shall, jointly and severally,
indemnify and hold the Administrative Agent, the other Agents, the Issuing
Lender and each Lender and each of their respective officers, directors,
employees, counsel, agents and attorneys-in-fact (each, an “Indemnified
Person”) harmless from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, charges, expenses
and disbursements (including reasonable attorney’s fees and expenses) of any
kind or nature whatsoever which may at any time (including at any time
following the Commitment Termination Date and the termination, resignation or
replacement of the Administrative Agent, the Issuing Lender or replacement of
any Lender) be imposed on, incurred by or asserted against any such Person in
any way relating to or arising out of this Agreement or any document
contemplated by or referred to herein, or the transactions contemplated hereby,
or any action taken or omitted by any such Person under or in connection with
any of the foregoing, including with respect to any investigation, litigation
or proceeding (including any insolvency proceeding or appellate proceeding)
related to or arising out of this Agreement or the Loans or Letters of Credit
(including any refusal by the Issuing Lender to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit) or the
use of the proceeds thereof, whether or not any Indemnified Person is a party
thereto (all the foregoing, collectively, the “Indemnified Liabilities”);
provided, however, that the Borrower  and MAC shall have no obligation hereunder to any Indemnified
Person with respect to Indemnified Liabilities resulting solely from the gross
negligence or willful misconduct of such Indemnified Person.  The agreements in this Section 11.14
shall survive payment of all other Obligations.

 

54

 

11.15.                  Telephonic
Instruction.  Any agreement of
the Administrative Agent, the Issuing Lender and the Lenders herein to receive
certain notices by telephone is solely for the convenience and at the request
of the Borrower.  The Administrative
Agent, the Issuing Lender and the Lenders shall be entitled to rely on the
authority of any Person purporting to be a Person authorized by the Borrower to
give such notice and the Administrative Agent, the Issuing Lender and the
Lenders shall not have any liability to the Borrower or other Person on account
of any action taken or not taken by the Administrative Agent, the Issuing
Lender or the Lenders in reliance upon such telephonic notice.  The obligation of the Borrower to repay the
Loans and the LC Disbursements shall not be affected in any way or to any
extent by any failure by the Administrative Agent, the Issuing Lender and the
Lenders to receive written confirmation of any telephonic notice or the receipt
by the Administrative Agent, the Issuing Lender and the Lenders of a
confirmation which is at variance with the terms understood by the
Administrative Agent, the Issuing Lender and the Lenders to be contained in the
telephonic notice.

 

11.16.                  Marshalling;
Payments Set Aside.  Neither the
Administrative Agent, the Issuing Lender nor the Lenders shall be under any
obligation to marshal any assets in favor of any of the Borrower Parties or any
other Person or against or in payment of any or all of the Obligations.  To the extent that any of the Borrower
Parties makes a payment or payments to the Administrative Agent, the Issuing
Lender or the Lenders, or the Administrative Agent, the Issuing Lender or the
Lenders enforce their Liens or exercise their rights of set-off, and such
payment or payments or the proceeds of such enforcement or set-off or any part
thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by the Administrative Agent in its discretion) to be repaid to a
trustee, receiver or any other party in connection with any insolvency
proceeding, or otherwise, then (1) to the extent of such recovery the
obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or
such enforcement or set-off had not occurred, and (2) each Lender and the
Issuing Lender severally agrees to pay to the Administrative Agent upon demand
its ratable share of the total amount so recovered from or repaid by the
Administrative Agent.

 

11.17.                  Set-off.  In addition to any rights and remedies of
the Lenders and the Issuing Lender provided by law, if an Event of Default
exists, each Lender and the Issuing Lender is authorized at any time and from
time to time, without prior notice to the Borrower and MAC, any such notice
being waived by the Borrower and MAC to the fullest extent permitted by law, to
set off and apply in favor of the Lenders any and all deposits (general or
special, time or demand, provisional or final) at any time held by, and other
indebtedness at any time owing to, such Lender or Issuing Lender to or for the
credit or the account of the Borrower and MAC against any and all Obligations
owing to the Lenders, now or hereafter existing, irrespective of whether or not
the Administrative Agent, the Issuing Lender or such Lender shall have made
demand under this Agreement or any Loan Document and although such Obligations
may be contingent or unmatured.  Each
Lender and the Issuing Lender agrees promptly to (i) notify the Borrower and
MAC, the Administrative Agent after any such set-off and application made by
such Lender or Issuing Lender; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application, and (ii) pay such amounts that are set-off to the Administrative
Agent for the ratable benefit of the Lenders.

 

55

 

11.18.                  Severability.  The illegality or unenforceability of any
provision of this Agreement or any other Loan Document or any instrument or
agreement required hereunder or thereunder shall not in any way affect or
impair the legality or enforceability of the remaining provisions hereof or
thereof.

 

11.19.                  No
Third Parties Benefited.  This
Agreement and the other Loan Documents are made and entered into for the sole
protection and legal benefit of the Borrower Parties, the Lenders, the Issuing
Lender and the Administrative Agent, and their permitted successors and
assigns, and no other Person shall be a direct or indirect legal beneficiary
of, or have any direct or indirect cause of action or claim in connection with,
this Agreement or any of the other Loan Documents.

 

11.20.                  Time.  Time is of the essence as to each term or
provision of this Agreement and each of the other Loan Documents.

 

[Signature Pages Follow]

 

56

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

 

	
  BORROWER:

  
	
   

  
	
   

  	
  THE MACERICH PARTNERSHIP, L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Macerich Company,

  
	
   

  	
   

  	
  a Maryland corporation,

  
	
   

  	
   

  	
  Its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Richard A. Bayer

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Secretary

  
	
   

  	
   

  	
   

  	
   

  	
  and General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
  GUARANTOR:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE MACERICH COMPANY,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Bayer

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Secretary and

  
	
   

  	
   

  	
   

  	
  General Counsel

  
								

 

S-1

 

	
  LENDERS AND AGENTS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS,

  
	
   

  	
  as Administrative Agent, Issuing Lender and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-2

 

	
   

  	
  JP MORGAN CHASE BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

S-3

 

	
   

  	
  EUROHYPO AG, NEW YORK BRANCH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-4

 

	
   

  	
  ING REAL ESTATE FINANCE (USA) LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-5

 

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-6

 

	
   

  	
  COMMERZBANK AG, NEW YORK and

  GRAND CAYMAN BRANCHES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
										

 

S-7

 

	
   

  	
  BARCLAYS BANK PLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-8

 

	
   

  	
  KEY BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-9

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,

  
	
   

  	
  a national banking association

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-10

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-11

 

	
   

  	
  HYPO REAL ESTATE CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
									

 

S-12

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-13

 

	
   

  	
  COMERICA BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

S-14

 

	
   

  	
  DEKABANK
  DEUTSCHE GIROZENTRALE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-15

 

	
   

  	
  CALIFORNIA BANK & TRUST, a California banking

  corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-16

 

	
   

  	
  CALYON

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-17

 

	
   

  	
  BANK OF THE WEST

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-18

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-19

 

	
   

  	
  SOCIETE GENERALE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-20

 

	
   

  	
  ERSTE BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-21

 

	
   

  	
  UNION BANK OF CALIFORNIA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-22

 

	
   

  	
  ALLIED IRISH BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-23

 

	
   

  	
  SOVEREIGN BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-24

 

Revolver Facility

 

ANNEX I:  GLOSSARY

 

ANNEX
I:  GLOSSARY

 

THIS GLOSSARY is attached to and made a part of that
certain Amended and Restated Credit Agreement (the “Agreement” or “Credit
Agreement”) dated as of July 30, 2004 by and among THE MACERICH
PARTNERSHIP, L.P., a limited partnership organized under the laws of the state
of Delaware (“Macerich Partnership”); THE MACERICH COMPANY, a Maryland
corporation (“MAC”) AS GUARANTOR (the “Guarantor”); THE LENDERS
FROM TIME TO TIME PARTY HERETO (collectively and severally, the “Lenders”);
and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”).  For purposes of the Credit
Agreement and the other Loan Documents, the terms set forth below shall have the
following meanings:

 

“Act” shall have the meaning given such term in
Section 6.13 of the Credit Agreement.

 

“Administrative Agent” shall have the meaning
given such term in the introductory paragraph of the Credit Agreement and shall
include any successor to DBTCA as the initial “Administrative Agent”
thereunder.

 

“Affiliate” shall mean, as to any Person, any
other Person directly or indirectly controlling, controlled by or under direct
or indirect common control with, such Person. 
“Control” as used herein means the power to direct the management and
policies of such Person.  In the case of
a Lender which is a fund that invests in loans, any other fund that invests in
loans which is managed by the same investment advisor as such Lender, or by
another Affiliate of such Lender or such investment advisor, shall be deemed an
Affiliate of such Lender.

 

“Affiliate Guaranties” shall mean each of the
credit guaranties executed by each of the Affiliate Guarantors in favor of
DBTCA (or a successor Administrative Agent), in its capacity as Administrative
Agent for the benefit of the Lenders, as the same may be Modified from time to
time.

 

“Affiliate Guarantors” shall mean, jointly and
severally, the Westcor Guarantors, Macerich Great Falls Limited Partnership, a
California limited partnership, and its successors, Macerich Oklahoma Limited
Partnership, a California limited partnership, and its successors, Macerich
Westside Adjacent Limited Partnership, a California limited partnership, and
its successors, Macerich Sassafras Limited Partnership, a California limited
partnership, and its successors, Northgate Mall Associates, a California
general partnership, and any other guarantors executing Supplemental Guaranties
in accordance with Section 4.1 of the Credit Agreement.

 

“Agents” shall mean the Administrative Agent,
the Joint Lead Arrangers, the Syndication Agent, the Joint Bookrunning
Managers, the Co-Documentation Agents,

 

1

 

the Senior Managing
Agents, and any other Persons acting in the capacity of an agent for the
Lenders under the Credit Agreement, together with their permitted successors
and assigns.

 

“Aggregate Investment Value” shall mean for
each permitted Investment identified in Section 8.5 of the Credit Agreement
(and any related Property referred to in such Section), the greater of (i) the
purchase price of such Investment (and related Property); or (ii) that portion
of the Gross Asset Value represented by the relevant Investment (and related
Property) as calculated in the most recent Measuring Period; provided, however,
that all Real Property Under Construction shall be valued at the out-of-pocket
costs incurred by the applicable Borrower Parties or their Subsidiary Entities
in respect of such Real Property Under Construction.

 

“Applicable Base Rate” shall mean, with respect
to any Base Rate Loan for the Interest Period applicable to such Base Rate
Loan, the floating rate per annum equal to the daily average Base Rate in
effect during the applicable calculation period plus the percentage (per annum)
set forth below which corresponds to the applicable ratio of Total Liabilities
to Gross Asset Value (expressed as a percentage) as measured at the end of each
Fiscal Quarter:

 

	
  Ratio of Total Liabilities

  to Gross Asset Value

  	
   

  	
  Base Rate
  Spread

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 50%

  	
   

  	
  .15

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than or equal to 50% but less than 55%

  	
   

  	
  .35

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than or equal to 55% but less than 60%

  	
   

  	
  .50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than or equal to 60%

  	
   

  	
  .70

  	
  %

  

 

Notwithstanding the foregoing, if the Compliance Certificate is not
delivered pursuant to the Credit Agreement for purposes of calculating the
ratio of Total Liabilities to Gross Asset Value (or if such calculation cannot
be made for any other reason), then the “Base Spread” above shall be .70%.  Any change in the Applicable Base Rate
resulting from a change in the ratio of Total Liabilities to Gross Asset Value
shall not take effect until the fifth Business Day after the Compliance
Certificate with respect to a Fiscal Quarter is (or is required to be)
delivered.

 

“Applicable LIBO Rate” shall mean, with respect
to any LIBO Rate Loan for the Interest Period applicable to such LIBO Rate
Loan, the per annum rate equal to the Reserve Adjusted LIBO Rate plus
the percentage (per annum) set forth below which

 

2

 

corresponds to the
applicable ratio of Total Liabilities to Gross Asset Value (expressed as a
percentage) as measured at the end of each Fiscal Quarter:

 

	
  Ratio of Total Liabilities

  to Gross Asset Value

  	
   

  	
  LIBO
  Spread

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Less than 50%

  	
   

  	
  1.15

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than or equal to 50% but less than 55%

  	
   

  	
  1.35

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than or equal to 55% but less than 60%

  	
   

  	
  1.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than or equal to 60%

  	
   

  	
  1.70

  	
  %

  

 

Notwithstanding the foregoing, if the Compliance Certificate is not
delivered pursuant to the Credit Agreement for purposes of calculating the
ratio of Total Liabilities to Gross Asset Value (or if such calculation cannot
be made for any other reason), then the “LIBO Spread” above shall be 1.70%.  Any change in the Applicable LIBO Rate
resulting from a change in the ratio of Total Liabilities to Gross Asset Value
shall not take effect until the fifth Business Day after the Compliance
Certificate with respect to a Fiscal Quarter is (or is required to be)
delivered.

 

“Applicable Percentage” shall mean, with
respect to any Lender, the percentage of the total Commitments represented by
such Lender’s Commitment.  If the
Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments in accordance with Section 11.8.

 

“Applicable Unused
Line Fee Percentage” means, for any day, with respect to the unused line
fee payable under Section 2.11 of the Credit Agreement, the applicable
rate per annum set forth below under the caption “Unused Line Fee Rate” based
upon the average daily Usage Percentage during the immediately preceding month
or shorter period if calculated on the Commitment Termination Date:

 

	
  Usage

  Percentage

  	
   

  	
  Unused
  Line Fee Rate

  	
   

  
	
  Less than 33%

  	
   

  	
  0.35

  	
  %

  
	
  Greater than or
  equal to 33% but less than or equal to 66%

  	
   

  	
  0.25

  	
  %

  
	
  Greater than 66%
  but less than and not including 100%

  	
   

  	
  0.15

  	
  %

  

 

3

 

“Assignee” shall have the meaning given such
term in Section 11.8 of the Credit Agreement.

 

“Assignment and Acceptance Agreement” shall
mean an agreement in the form of that attached to the Credit Agreement as Exhibit
E.

 

“Availability Period” shall mean the period
from and including the Closing Date to but excluding the earlier of the
Commitment Termination Date and the date of termination of the Commitments.

 

“Base Rate” shall mean on any day the higher
of:  (a) the Prime Rate in effect on
such day, and (b) the sum of the Federal Funds Rate in effect on such day plus
one half of one percent (0.50%).

 

“Base Rate Borrowing”, when used in reference
to any Borrowing, refers to whether the Loans comprising such Borrowing are
bearing interest at a rate determined by reference to the Applicable Base Rate.

 

“Base Rate Loan”, when used in reference to any
Loan, refers to whether the Loans comprising such Borrowing are bearing
interest at a rate determined by reference to the Applicable Base Rate.

 

“Board of Directors”
shall mean, with respect to any person, (i) in the case of any
corporation, the board of directors of such person, (ii) in the case of
any limited liability company, the board of managers of such person,
(iii) in the case of any partnership, the Board of Directors of the
general partner of such person and (iv) in any other case, the functional
equivalent of the foregoing.

 

“Book Value” shall mean the book value of such
asset or property, without regard to any related Indebtedness.

 

“Borrower Parties” shall mean, jointly and
severally, each of the Borrower and the Guarantors.

 

4

 

“Borrower” shall mean the Macerich Partnership.

 

“Borrowing” shall mean (a) all Base Rate Loans
made, converted or continued on the same date, or (b) all LIBO Rate Loans of
the same Interest Period.  For purposes
hereof, the date of a Borrowing comprising one or more Loans that have been
converted or continued shall be the effective date of the most recent
conversion or continuation of such Loan or Loans.

 

“Borrowing Request” shall mean a request by the
Borrower for a Borrowing in accordance with Section 1.3 of the
Credit Agreement.

 

“Broadway Plaza Property” shall mean Real Property and improvements located at 1275
Broadway Plaza, Walnut Creek, CA 94596, commonly referred to as “Broadway
Plaza” and owned by Macerich Northwestern Associates, a California general
partnership.

 

“Bullet Payment” shall mean any payment of the
entire unpaid balance of any Indebtedness at its final maturity other than the
final payment with respect to a loan that is fully amortized over its term.

 

“Business Day” shall mean any day other than a
Saturday, a Sunday or a day on which banks in Los Angeles, California or New
York, New York are authorized or obligated to close their regular banking
business; provided that the term “Business Day” as used with respect to
the Letter of Credit provisions of the Credit Agreement (including, without
limitation, Section 1.4 of the Credit Agreement) shall be defined as
otherwise set forth above but shall not include the reference to “Los Angeles,
California”; provided, further, when the term “Business Day” is
used in connection with a LIBO Rate Loan or LIBO Rate Borrowing (including the
definition of “Interest Period” as it relates to LIBO Rate Loans), the term
“Business Day” shall also exclude any day on which commercial banks in London,
England and Frankfurt, Germany are not open for domestic and international
business.

 

“Capitalized Lease”
of a Person means any lease of property by such Person as lessee which would be
capitalized on a balance sheet of such Person prepared in accordance with GAAP.

 

“Capitalized Lease
Obligations” of a Person means the amount of the obligations of such Person
under Capitalized Leases which would be shown as a liability on a balance sheet
of such Person prepared in accordance with GAAP.

 

“Capitalized Loan Fees” shall mean, with
respect to the Macerich Entities, and with respect to any period, any upfront,
closing or similar fees paid by such Person in connection with the incurrence
or refinancing of Indebtedness during such period that are capitalized on the
balance sheet of such Person.

 

“Capital Stock” means (i) with respect to
any Person that is a corporation, any and all shares, interests, participations
or other equivalents (however designated and whether

 

5

 

or not voting) of
corporate stock, including, without limitation, each class or series of common
stock and preferred stock of such Person and (ii) with respect to any
Person that is not a corporation, any and all investment units, partnership,
membership or other equity interests of such Person.

 

“Cash Equivalents” shall mean, with respect to
any Person:  (a) securities issued,
guaranteed or insured by the United States of America or any of its agencies
with maturities of not more than one year from the date acquired;
(b) certificates of deposit with maturities of not more than one year from
the date acquired by a United States federal or state chartered commercial bank
of recognized standing, which has capital and unimpaired surplus in excess of
$500,000,000 and which bank or its holding company has a short-term commercial
paper rating of at least A-2 or the equivalent by S&P or at least P-2 or
equivalent by Moody’s; (c) reverse repurchase agreements with terms of not
more than seven days from the date acquired, for securities of the type
described in clause (a) above and entered into only with commercial banks
having the qualifications described in clause (b) above; (d) commercial
paper issued by any Person incorporated under the laws of the United States of
America or any State thereof and rated at least A-2 or the equivalent thereof
by S&P or at least P-2 or the equivalent thereof of Moody’s, in each case
with maturities of not more than one year from the date acquired; and
(e) investments in money market funds registered under the Investment
Company Act of 1940, which have net assets of at least $500,000,000 and at
least 85% of whose assets consist of securities and other obligations of the
type described in clauses (a) through (d) above.

 

“Change in Law” shall mean (a) the
adoption of any law, rule or regulation after the date of the Credit Agreement,
(b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of the Credit
Agreement or (c) compliance by any Lender or the Issuing Lender (or by any
lending office of such Lender or Issuing Lender or by such Lender’s or Issuing
Lender’s holding company, if any) with any guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after
the date of the Credit Agreement.

 

“Change of Control” shall mean, with respect to
MAC, the occurrence of either of the following:  (i) a change in the beneficial
ownership within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934 of more than twenty-five
percent (25%) of the Capital Stock of MAC having general voting rights so that
such Capital Stock is held by a Person, or two (2) or more Persons acting in
concert, unless the Administrative Agent and the Required Lenders have approved
in advance in writing the identity of such Person or Persons or (ii) the
resignation or removal from the Board of Directors of fifty percent (50%) or
more of the members of MAC’s Board of Directors during any twelve (12) month
period for any reason other than death, disability or voluntary retirement or
personal reasons, unless otherwise approved in advance in writing by the
Required Lenders.

 

“Closing Certificate” shall mean a certificate
in the form of that attached to the Credit Agreement as Exhibit F.

 

6

 

“Closing Date” shall mean the date as of which
all conditions set forth in Section 5.1 of the Credit Agreement shall
have been satisfied or waived and the initial Loan(s) shall have been funded.

 

“Code” shall mean the Internal Revenue Code of
1986, as amended, and the rules and regulations promulgated thereunder, as from
time to time in effect.

 

“Co-Documentation Agents” shall mean
Commerzbank AG, New York, Eurohypo AG and Wells Fargo Bank, National
Association in their respective capacities as co-documentation agents for the
credit facility evidenced by the Credit Agreement, together with their
permitted successors and assigns.

 

“Commencement of Construction” shall mean with
respect to any Real Property, the commencement of material on-site work
(including grading) or the commencement of a work of improvement of such
property.

 

“Commitment” shall mean, with respect to each
Lender, the commitment, if any, of such Lender to make Loans and to acquire
participations in Letters of Credit, expressed as an amount representing the
maximum aggregate amount that such Lender’s Revolving Credit Exposure could be
at any time hereunder, as such commitment may be (a) reduced from time to
time pursuant to Section 1.7 of the Credit Agreement or
(b) reduced or increased from time to time pursuant to assignments by or
to such Lender pursuant to Section 11.8 of the Credit
Agreement.  The initial amount of each
Lender’s Commitment is set forth on Schedule G-1, or in the
Assignment and Acceptance Agreement pursuant to which such Lender shall have
assumed its Commitment, as applicable. 
The initial aggregate amount of the Lenders’ Commitments is
$1,000,000,000.

 

“Commitment Termination Date” shall mean
initially the Original Commitment Termination Date; provided that the
“Commitment Termination Date” shall mean the Extended Commitment Termination
Date if the Borrower extends the Original Commitment Termination Date in
accordance with the terms and conditions of Section 1.7(5) of the Credit
Agreement.  The Commitment Termination
Date shall be subject to acceleration upon an Event of Default as otherwise
provided in the Credit Agreement.

 

“Compliance Certificate” shall mean a
certificate in the form of that attached to the Credit Agreement as Exhibit
G.

 

“Construction-in-Process” means, with respect
to any Real Property Under Construction, the aggregate amount of expenditures
classified as “construction-in-process” on the balance sheet of the
Consolidated Entities, with respect thereto.

 

“Consolidated Entities” means, collectively,
(i) the Borrower Parties, (ii) MAC’s Subsidiaries and (iii) any other Person
the accounts of which are consolidated with those of MAC in the consolidated
financial statements of MAC in accordance with GAAP.

 

7

 

“Contact Office” shall mean the office of DBTCA
located at Deutsche Bank Trust Company Americas, 90 Hudson Street Mail
Stop:  JCY05-0511 Jersey City, NJ 07302
Attn:  Joseph Adamo, or such other
offices in New York, New York as the Administrative Agent may notify the
Borrower, the Lenders and the Issuing Lender from time to time in writing.

 

“Contingent Obligation” as to any Person shall
mean, without duplication, (i) any contingent obligation of such Person
required to be shown on such Person’s balance sheet in accordance with GAAP,
and (ii) any obligation required to be disclosed in the footnotes to such
Person’s financial statements in accordance with GAAP, guaranteeing partially
or in whole any non-recourse Indebtedness, lease, dividend or other obligation,
exclusive of contractual indemnities (including, without limitation, any
indemnity or price-adjustment provision relating to the purchase or sale of
securities or other assets), of such Person or of any other Person.  The amount of any Contingent Obligation described
in clause (ii) shall be deemed to be (a) with respect to a guaranty of interest
or interest and principal, or operating income guaranty, the sum of all
payments required to be made thereunder (which in the case of an operating
income guaranty shall be deemed to be equal to the debt service for the note
secured thereby), calculated at the interest rate applicable to such
Indebtedness, through (1) in the case of an interest or interest and principal
guaranty, the stated date of maturity of the obligation (and commencing on the
date interest could first be payable thereunder), or (2) in the case of an
operating income guaranty, the date through which such guaranty will remain in
effect, and (b) with respect to all guarantees not covered by the preceding
clause (a) an amount equal to the stated or determinable amount of the primary
obligation in respect of which such guaranty is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such Person is required to perform thereunder) as recorded on the
balance sheet and on the footnotes to the most recent financial statements of
the applicable Person required to be delivered pursuant hereto.  Notwithstanding anything contained herein to
the contrary, guarantees of completion and non-recourse carve outs in secured
loans shall not be deemed to be Contingent Obligations unless and until a claim
for payment has been made thereunder, at which time any such guaranty of
completion shall be deemed to be a Contingent Obligation in an amount equal to
any such claim.  Subject to the
preceding sentence, (i) in the case of a joint and several guaranty given by
such Person and another Person (but only to the extent such guaranty is
recourse, directly or indirectly to the applicable Borrower Party or their
respective Subsidiaries), the amount of the guaranty shall be deemed to be 100%
thereof unless and only to the extent that (X) such other Person has delivered
cash or Cash Equivalents to secure all or any part of such Person’s guaranteed
obligations or (Y) such other Person holds an Investment Grade Credit Rating
from either Moody’s or S&P, and (ii) in the case of a guaranty (whether or
not joint and several) of an obligation otherwise constituting Indebtedness of
such Person, the amount of such guaranty shall be deemed to be only that amount
in excess of the amount of the obligation constituting Indebtedness of such
Person.  Notwithstanding anything
contained herein to the contrary, “Contingent Obligations” shall not be deemed
to include guarantees of loan commitments or of construction loans to the
extent the same have not been drawn.

 

8

 

“Contractual Obligation” as to any Person shall
mean any provision of any security issued by such Person or of any agreement,
instrument or undertaking to which such Person is a party or by which it or any
of its property is bound.

 

“Credit Agreement” shall mean the Credit
Agreement defined in the introductory paragraph of this Glossary, as the same
may be Modified, extended or replaced from time to time.

 

“DBTCA” shall mean Deutsche Bank Trust Company
Americas.

 

“Defaulted
Advance” means, with respect to any Lender at any time, the portion
of any Loan required to be made by such Lender to the Borrower pursuant to
Section 1.5 at or prior to such time which has not been made by such Lender or
by the Administrative Agent for the account of such Lender pursuant to Section
1.5(2) as of such time.

 

“Defaulting Lender” means, at any time, any Lender
that, at such time owes a Defaulted Advance.

 

“De Minimus Subsidiary” shall mean any
Subsidiary or Subsidiaries which in the aggregate represents less than one
percent of Gross Asset Value of the Consolidated Entities.

 

“Depreciation and Amortization Expense” shall
mean (without duplication), for any period, the sum for such period of (i)
total depreciation and amortization expense, whether paid or accrued, of the
Consolidated Entities, plus (ii) any Consolidated Entity’s pro rata
share of depreciation and amortization expenses of Joint Ventures. For purposes
of this definition, MAC’s pro rata share of depreciation and
amortization expense of any Joint Venture shall be deemed equal to the product
of (i) the depreciation and amortization expense of such Joint Venture, multiplied
by (ii) the percentage of the total outstanding Capital Stock of
such Person held by any Consolidated Entity, expressed as a decimal.

 

“Designated Environmental Properties” shall
have the meaning given such term in Section 6.15 of the Credit
Agreement.

 

“Disposition” shall mean the sale, conveyance,
pledge, hypothecation, ground lease, encumbrance, creation of a security
interest with respect to, or other transfer, whether voluntary or involuntary,
direct or indirect, of any legal or beneficial interest in a Property,
including any sale, conveyance, pledge, hypothecation, ground lease,
encumbrance, creation of a security interest with respect to, or other
transfer, at any tier, of any ownership interest in any Macerich Entity; provided,
however, that Disposition shall not include any Permitted Encumbrances; provided
further that such exclusion of Permitted Encumbrances shall not apply to
the Dispositions described in Sections 8.4(1), 8.4(2), and 8.4(3)
of the Credit Agreement.

 

“Disqualified Capital Stock” shall mean with
respect to any Person any Capital Stock of such Person (other than preferred
stock of MAC issued and outstanding on the

 

9

 

Closing Date) that by its
terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or otherwise (including upon the occurrence of any
event), is required to be redeemed or is redeemable for cash at the option of
the holder thereof, in whole or in part (including by operation of a sinking
fund), or is exchangeable for Indebtedness (other than at the option of such
Person), in whole or in part, at any time.

 

“Distribution” shall mean with respect to MAC
and Macerich Partnership:  (i) any
distribution of cash or Cash Equivalent, directly or indirectly, to the
partners or holders of Capital Stock of such Persons, or any other distribution
on or in respect of any partnership, company or equity interests of such
Persons; and (ii) the declaration or payment of any dividend on or in respect
of any shares of any class of Capital Stock of such Persons, other than:  (1) dividends payable solely in shares of
common stock by MAC; or (2) the purchase, redemption, or other retirement of
any shares of any class of Capital Stock of such Persons, directly or
indirectly through a Subsidiary of MAC or otherwise, to the extent such
purchase, redemption, or other retirement occurs in exchange for the issuance
of Capital Stock of MAC or Macerich Partnership.

 

“Dollar” shall mean lawful currency of the
United States of America.

 

“EBITDA” shall mean, for the twelve months then
most recently ended, solely with respect to the Consolidated Entities, Net
Income, plus
(without duplication) (A) Interest Expense, (B) Tax Expense, (C) Depreciation
and Amortization Expense and (D) noncash charges for stock options, in each
case for such period.

 

“Eligible Assignee” shall mean any of the
following:

 

(a)           A
commercial bank organized under the laws of the United States, or any state
thereof, and having a combined capital and surplus of at least $100,000,000;

 

(b)           A
commercial bank organized under the laws of any other country which is a member
of the Organization for Economic Cooperation and Development (the “OECD”), or a
political subdivision of any such country, and having a combined capital and
surplus of at least $100,000,000 (provided that such bank is acting
through a branch or agency located in the country in which it is organized or
another country which is also a member of the OECD);

 

(c)           A
Person that is engaged in the business of commercial banking and that is:  (1) an Affiliate of a Lender or the Issuing
Lender, (2) an Affiliate of a Person of which a Lender or the Issuing Lender is
an Affiliate, or (3) a Person of which a Lender or the Issuing Lender is a
Subsidiary;

 

(d)           An
insurance company, mutual fund or other financial institution organized under
the laws of the United States, any state thereof, any other country which is a
member of the OECD or a political subdivision of any such country which in
vests in bank loans and has a net worth of $500,000,000; or

 

10

 

(e)           Any
fund (other than a mutual fund) which invests in bank loans and whose assets
exceed $100,000,000;

 

provided, however, that no
Person shall be an “Eligible Assignee” unless at the time of the proposed
assignment to such Person:  (i) such
Person is able to make its Applicable Percentage of the Commitments in U.S.
dollars, and (ii) such Person is exempt from withholding of tax on interest and
is able to deliver the documents related thereto pursuant to Section 2.10(5)
of the Credit Agreement.

 

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as Modified, and the rules and regulations
promulgated thereunder as from time to time in effect.

 

“ERISA Affiliate” shall mean any trade or
business (whether or not incorporated) under common control with any
Consolidated Entity within the meaning of Section 414(b) or (c) of the
Code (and Sections 414(m) and (o) for purposes of provisions relating to
Section 412 of the Code).

 

“ERISA Event” shall mean (a) a Reportable
Event with respect to a Pension Plan or a Multiemployer Plan; (b) a
withdrawal by any Consolidated Entity or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations which is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by any Consolidated Entity or
any ERISA Affiliate from a Multiemployer Plan or notification that a
multiemployer is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a plan amendment as a termination under Section
4041 or 4041A of ERISA or the commencement of proceedings by the PBGC to
terminate a Pension Plan or Multiemployer Plan; (e) a failure by any
Consolidated Entity to make required contributions to a Pension Plan,
Multiemployer Plan or other Plan subject to Section 412 of the Code;
(f) an event or condition which might reasonably be expected to constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan or Multiemployer Plan; (g) the
imposition of any liability under Title IV of ERISA, other than PBGC premiums
due but not delinquent under Section 4007 of ERISA, upon any Consolidated
Entity or any ERISA Affiliate; or (h) an application for a funding waiver
or an extension of any amortization period pursuant to Section 412 of the Code
with respect to any Plan.

 

“Eurodollar Business Day” shall mean a Business
Day on which commercial banks in London, England and Frankfurt, Germany are
open for domestic and international business.

 

“Event of Default” shall have the meaning given
such term in Section 9 of the Credit Agreement.

 

“Evidence of No Withholding” shall have the
meaning given such term in

 

11

 

Section 2.10(5)
of the Credit Agreement.

 

“Excluded Taxes” shall mean, with respect to
the Administrative Agent, the Issuing Lender, any Lender, or any other
recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income or franchise taxes imposed on (or measured
by) its net income by the United States of America, or by any state, locality
or foreign jurisdiction under the laws of which such recipient is organized or
in which it maintains an office or permanent establishment, (b) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which the Borrower is located and
(c) in the case of a Foreign Lender, any withholding tax that is imposed
on amounts payable to such Foreign Lender at the time such Foreign Lender
becomes a party to the Credit Agreement or is attributable to such Foreign
Lender’s failure to comply with Section 2.10(5) of the Credit
Agreement; provided, however, Excluded Taxes shall not include
any withholding tax resulting from any inability to comply with Section
2.10(5) of the Credit Agreement solely by reason of there having occurred a
Change in Law.

 

“Existing Credit Facility” shall mean that
certain revolving credit facility evidenced by the Existing Credit Agreement,
which provides for the extension of a revolving credit facility to the Borrower
in the aggregate commitment amount of $425 million.

 

“Existing Credit Agreement” shall mean that
certain Credit Agreement, as amended May 2004, evidencing the Existing Credit Facility
dated as of July 26, 2002, by and among the Borrower and the Westcor
Guarantors, as borrowers, MAC and the other guarantors signatory thereto, the
lenders signatory thereto and DBTCA, as administrative agent and collateral
agent.

 

“Existing Lenders” shall mean each of the
lenders from time to time party to the Existing Credit Agreement, including any
Assignee permitted pursuant to Section 11.8 of the Credit Agreement.

 

“Existing 2003 Term Loan” shall mean that
certain credit facility evidenced by the Existing 2003 Term Loan Credit
Agreement, which provides for the funding of a term loan to the Macerich
Partnership in the aggregate commitment amount of $250 million.

 

“Existing 2003 Term Loan Credit Agreement”
shall mean that certain Amended and Restated Credit Agreement evidencing the
Existing Term Loan dated as of July 30, 2004, as may be amended or modified
from time to time, by and among the Borrower, 
MAC and the other guarantors signatory thereto, the lenders signatory
thereto and DBTCA, as administrative agent.

 

“Existing Term Loan” shall mean that certain
credit facility evidenced by the Existing Term Loan Credit Agreement, which
provides for the funding of a term loan to the Macerich Partnership and the
Westcor Guarantors in the aggregate commitment amount of $250 million.

 

12

 

“Existing Term Loan Credit Agreement” shall
mean that certain Credit Agreement evidencing the Existing Term Loan dated as
of July 26, 2002, as may be amended or modified from time to time, by and among
the Borrower and others, as borrowers, MAC and the other guarantors signatory
thereto, the lenders signatory thereto and DBTCA, as administrative agent and
collateral agent.

 

“Extended Commitment Termination Date” shall
have the meaning given such term in Section 1.7(5) of the Credit
Agreement.

 

“Extension Fee” shall have the meaning given
such term in Section 1.7(5)(B) of the Credit Agreement.

 

“Facing Fee” shall have the meaning given such
term in Section 2.11(2)(B) of the Credit Agreement.

 

“Federal Funds Rate” shall mean for any day, an
interest rate per annum equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers on such day, as published for such day (or, if such
day is not a Business Day, for the immediately preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations at approximately
1:00 p.m. (New York time) on such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by the Administrative Agent in its sole discretion.

 

“Fee Letter” shall mean that certain Fee Letter
dated as of the date of the Credit Agreement entered into by the Borrower and
the Administrative Agent.

 

“FFO” shall mean net income (loss) (computed in
accordance with GAAP) excluding gains (or losses) from debt restructurings and
sales of property, plus real estate related depreciation and amortization and
after adjustments for unconsolidated partnerships and joint ventures, as set
forth in more detail under the definitions
and interpretations thereof promulgated by the National Association of Real
Estate Investment Trusts or its successor as of the Closing Date, but in any
case excluding any write down due to impairment of assets.

 

“Financing” shall mean any transaction pursuant
to which new Indebtedness is incurred and secured by a Property.

 

“Fiscal Quarter” or “fiscal quarter”
means any three-month period ending on March 31, June 30, September 30 or
December 31 of any Fiscal Year.

 

“Fiscal Year” or “fiscal year” shall
mean the 12-month period ending on December 31 in each year or such other
period as MAC may designate and the Administrative Agent may approve in
writing.

 

13

 

“Fixed Charge Coverage Ratio” shall mean, at
any time, the ratio of (i) EBITDA for the twelve months then most recently
ended (except that, with respect to any Project that has not achieved
Stabilization, EBITDA for such Project shall be calculated for the most recent
fiscal quarter and annualized), to (ii) Fixed Charges for such period (except
that, with respect to any Project that has not achieved Stabilization, Fixed
Charges for such Project shall be calculated for the most recent fiscal quarter
and annualized).

 

“Fixed Charges” shall mean, for any period,
solely with respect to the Consolidated Entities, the sum of the amounts for
such period of (i) scheduled payments of principal of Indebtedness of the
Consolidated Entities (other than any Bullet Payment), (ii) the Consolidated
Entities’ pro
rata share of scheduled payments of principal of Indebtedness of Joint
Ventures (other than any Bullet Payment) that does not otherwise constitute
Indebtedness of and is not otherwise recourse to the Consolidated Entities or
their assets, (iii) Interest Expense, (iv) payments of dividends in respect of
Disqualified Capital Stock; and (v) to the extent not otherwise included in
Interest Expense, dividends and other distributions paid during such period by
the Borrower or MAC with respect to preferred stock or preferred operating
units.  For purposes of clauses (ii) and
(v), the Consolidated Entities’ pro rata share of payments by any Joint
Venture shall be deemed equal to the product of (a) the payments made by such
Joint Venture, multiplied by (b) the percentage of the total outstanding
Capital Stock of such Person held by any Consolidated Entity, expressed as a
decimal.

 

“Foreign Lender” shall mean any Lender that is
organized under the laws of a jurisdiction other than that in which the
Borrower is located.  For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

 

“GAAP” shall mean generally accepted accounting
principles in the United States of America in effect from time to time; provided
that for purposes of calculating the covenants set forth in Section 8.12
of the Credit Agreement, GAAP shall mean generally accepted accounting
principles in the United States of America in effect as of the Closing Date.

 

“Good Faith Contest” means the contest of an
item if (1) the item is diligently contested in good faith, and, if
appropriate, by proceedings timely instituted, (2) adequate reserves are
established if required by, and in accordance with, GAAP with respect to the
contested item, (3) during the period of such contest, the enforcement of any
contested item is effectively stayed and (4) the failure to pay or comply with
the contested item during the period of the contest is not likely to result in
a Material Adverse Effect.

 

“Governmental Authority” shall mean any nation
or government, any state or other political subdivision thereof, any central
bank (or similar monetary or regulatory authority) thereof, any court or other
entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

 

“Gross Asset Value” shall mean, at any time,
solely with respect to the Consolidated Entities, the sum of (without
duplication):

 

14

 

(i) for Retail Properties that are Wholly-Owned the
sum of, for each such property, (a) such property’s Property NOI for the
Measuring Period, divided by (b) (1) 8.00% (expressed as a decimal), in the
case of regional Retail Properties or (2) 9.00% (expressed as a decimal) in the
case of Retail Properties that are not regional Retail Properties; plus

 

(ii) for Retail Properties that are not Wholly-Owned,
the sum of, for each such property, (a) the Gross Asset Value of each such
Retail Property at such time, as calculated pursuant to the foregoing clause
(i), multiplied
by (b) the percentage of the total outstanding Capital Stock held by
Consolidated Entities in the owner of the subject Retail Property, expressed as
a decimal; provided, notwithstanding anything to the contrary in this
definition, so long as 100% of the Indebtedness and other liabilities of the
owner of the Broadway Plaza Property reflected in the financial statements of
such owner or disclosed in the notes thereto (to the extent the same would
constitute a Contingent Obligation) is counted in the calculation of Total
Liabilities pursuant to subsection (ii) of the definition of “Total
Liabilities”, the Broadway Plaza Property, and the cash and Cash Equivalents
and “Other GAV Assets” (as defined below) with respect thereto, shall be deemed
to be Wholly-Owned and the Gross Asset Value with respect to the Broadway Plaza
Property shall be calculated in accordance with clause (i) of this definition; plus

 

(iii) all cash and Cash Equivalents (other than, in
either case, Restricted Cash) held by the Consolidated Entity at such time,
and, in the case of cash and Cash Equivalents not Wholly-Owned, multiplied
by a percentage (expressed as a decimal) equal to the percentage of
the total outstanding Capital Stock held by the Consolidated Entity holding title
to such cash and Cash Equivalents; plus

 

(iv) all Mortgage Loans acquired for the purpose of
acquiring the underlying real property, valued by the book value of each such
Mortgage Loan when measured; plus

 

(v)(a) 100% of the Book Value of Construction-in-Process
with respect to Retail Properties Under Construction that are Wholly-Owned and
(b) the product of (1) 100% of the Book Value of Construction-in-Process with
respect to Retail Properties Under Construction that are not Wholly-Owned multiplied
by (2) a percentage (expressed as a decimal) equal to the percentage
of the total outstanding Capital Stock held by the Consolidated Entity holding
title to such Retail Properties Under Construction; plus

 

(vi) to the extent not otherwise included in the foregoing
clauses, (a) the Book Value of tenant receivables, deferred charges and other
assets with respect to Real Properties that are Wholly-Owned and (b) the
product of (1) the Book Value of tenant receivables, deferred charges and other
assets with respect to Real Properties that are not Wholly-Owned multiplied
by (2) a percentage (expressed as a decimal) equal to the percentage
of the total outstanding Capital Stock held by a Consolidated Entity holding
title to such Real Property (collectively, “Other GAV Assets”), provided that the aggregate value
of Other GAV Assets shall not exceed five percent (5%) of the aggregate Gross
Asset Value of all the assets of the Consolidated Entities; plus

 

15

 

(vii) the Book Value of land and other Properties not
constituting Retail Properties; plus

 

(viii) the Book Value of the Investment in Northpark
Mall.

 

provided, however, that (A)(i) the determination of Gross
Asset Value for any period shall not include any Retail Property (or any
Property NOI relating to any Retail Property) that has been sold or otherwise
disposed of at any time prior to or during such period; and (ii) La Cumbre
Plaza, The Mall at Victor Valley and any other Retail Property acquired after
the Closing Date shall be valued at Book Value for 18 months after acquisition
thereof; and (B) upon the sale, conveyance, or transfer of all of a Real
Property to a Person other than a Macerich Entity, the Gross Asset Value with
respect to such Real Property shall no longer be considered.

 

“Gross Leasable Area” shall mean the total
leasable square footage of buildings situated on Real Properties, excluding the
square footage of any department stores.

 

“Guarantors” shall mean, jointly and severally
(i) any Initial Guarantor and (ii) any Supplemental Guarantor.

 

“Guaranty” shall mean any unconditional
guaranty executed by any Person in favor of DBTCA (or a successor) in its
capacity as Administrative Agent for the Lenders pursuant to the terms of the
Credit Agreement, in a form approved by the Administrative Agent.  “Guaranty” shall include all Affiliate
Guaranties and the REIT Guaranty.

 

“Hazardous Materials” shall mean any flammable
materials, explosives, radioactive materials, hazardous wastes, toxic
substances or related materials, including, without limitation, any substances
defined as or included in the definitions of “hazardous substances,” “hazardous
wastes,” “hazardous materials,” or “toxic substances” under any applicable
federal, state, or local laws or regulations.

 

“Hazardous Materials Claims” shall mean any
enforcement, cleanup, removal or other governmental or regulatory action or
order with respect to the Property, pursuant to any Hazardous Materials Laws,
and/or any claim asserted in writing by any third party relating to damage,
contribution, cost recovery compensation, loss or injury resulting from any
Hazardous Materials.

 

“Hazardous Materials Laws” shall mean any
applicable federal, state or local laws, ordinances or regulations relating to
Hazardous Materials.

 

“Hedging Obligations” of a Person means any and
all obligations of such Person or any of its Subsidiaries, whether absolute or
contingent and howsoever and whenever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions
therefor), under (a) any and all agreements,

 

16

 

devices or arrangements
designed to protect at least one of the parties thereto from the fluctuations
of interest rates, commodity prices, exchange rates or forward rates applicable
to such party’s assets, liabilities or exchange transactions, including, but
not limited to, dollar-denominated or cross-currency interest rate exchange
agreements, forward currency exchange agreements, interest rate cap or collar
protection agreements, forward rate currency or interest rate options, puts and
warrants, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any of the foregoing.

 

“Indebtedness” of any Person shall mean without
duplication, (a) all liabilities and obligations of such Person, whether
consolidated or representing the proportionate interest in any other Person,
(i) in respect of borrowed money (whether or not the recourse of the lender
is to the whole of the assets of such Person or only to a portion thereof, and
including construction loans), (ii) evidenced by bonds, notes, debentures
or similar instruments, (iii) representing the balance deferred and unpaid
of the purchase price of any property or services, except those incurred in the
ordinary course of its business that would constitute a trade payable to trade
creditors (but specifically excluding from such exception the deferred purchase
price of real property), (iv) evidenced by bankers’ acceptances,
(v) consisting of obligations, whether or not assumed, secured by Liens or
payable out of the proceeds or production from property now or hereafter owned
or acquired by such Person (in an amount equal to the lesser of the obligation so secured and the
fair market value of such property), (vi) consisting of Capitalized Lease
Obligations (including any Capitalized Leases entered into as a part of a
sale/leaseback transaction), (vii) consisting of liabilities and
obligations under any receivable sales transactions, (viii) consisting of
a letter of credit or a reimbursement obligation of such Person with respect to
any letter of credit, or (ix) consisting of Net Hedging Obligations; or
(b) all Contingent Obligations and liabilities and obligations of others
of the kind described in the preceding clause (a) that such Person has
guaranteed or that is otherwise its legal liability and all obligations to
purchase, redeem or acquire for cash or non-cash consideration any Capital
Stock or other equity interests and (c) obligations of such Person to
purchase for cash or non-cash consideration Securities or other property
arising out of or in connection with the sale of the same or substantially
similar securities or property.  For the
avoidance of doubt, Indebtedness of any water, sewer, or other improvement
district that is payable from assessments or taxes on property located within
such district shall not be deemed to be Indebtedness of any Person owning
property located within such district; provided  that such Person has not otherwise obligated
itself in respect of the repayment of such Indebtedness.

 

“Indemnified Liabilities” shall have the
meaning given such term in Section 11.14 of the Credit Agreement.

 

“Indemnified Person” shall have the meaning
given such term in Section 11.14 of the Credit Agreement.

 

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

 

“Initial Guarantors” shall mean MAC and the
Affiliate Guarantors who enter into Guaranties on or as of the Closing Date.

 

17

 

“Initial Financial Statements” shall have the
meaning given such term in Section 6.1 of the Credit Agreement.

 

“Intangible Assets” shall mean (i) all
unamortized debt discount and expense, unamortized deferred charges, goodwill
and other intangible assets and (ii) all write-ups (other than write-ups
resulting from foreign currency translations and write-ups of assets of a going
concern business made within twelve months after the acquisition of such
business) subsequent to December 31, 1994, in the Book Value of any asset owned
by the Consolidated Entities.

 

“Interest Coverage Ratio” shall mean, at any
time, the ratio of (i) EBITDA for the twelve months then most recently ended
(except that, with respect to any Project that has not achieved Stabilization,
EBITDA for such Project shall be calculated for the most recent fiscal quarter
and annualized), to (ii) Interest Expense for such period (except that, with
respect to any Project that has not achieved Stabilization, Interest Expense
for such Project shall be calculated for the most recent fiscal quarter and
annualized).

 

“Interest Expense” shall mean, for any period,
solely with respect to the Consolidated Entities, the sum (without duplication)
for such period of:  (i) total interest
expense, whether paid or accrued, of the Consolidated Entities, including fees
payable in connection with the Credit Agreement, charges in respect of letters
of credit and the portion of any Capitalized Lease Obligations allocable to interest
expense, including the Consolidated Entities’ share of interest expenses in
Joint Ventures but excluding amortization or write-off of debt discount and
expense (except as provided in clause (ii) below), (ii) amortization of costs
related to interest rate protection contracts and rate buydowns (other than the
costs associated with the interest rate buydowns completed in connection with
the initial public offering of MAC), (iii) capitalized interest, provided that capitalized
interest may be excluded from this clause (iii) to the extent (A) such interest
is paid or reserved out of any interest reserve established under a loan
facility; or (B) consists of interest imputed under GAAP in respect of ongoing
construction activities, but only to the extent such interest has not actually
been paid, and the amount thereof does not exceed $20,000,000, (iv) for
purposes of determining Interest Expense as used in the Fixed Charge Coverage
Ratio (both numerator and denominator) only, amortization of Capitalized Loan Fees,
(v) to the extent not included in clauses (i), (ii), (iii) and (iv), any
Consolidated Entities’ pro rata share of interest expense and
other amounts of the type referred to in such clauses of the Joint Ventures,
and (vi) interest incurred on any liability or obligation that constitutes a
Contingent Obligation of any Consolidated Entity.  For purposes of clause (v), any Consolidated Entities’ pro rata share
of interest expense or other amount of any Joint Venture shall be deemed equal
to the product of (a) the interest expense or other relevant amount of such
Joint Venture, multiplied by (b) the percentage of the total outstanding
Capital Stock of such Person held by any Consolidated Entity, expressed as a
decimal.

 

“Interest Period”
shall mean:

 

(a)  for any Base Rate Borrowing, the period
commencing on the date of such borrowing and ending on the last day of the
calendar month in which made;

 

18

 

provided,
that if any Base Rate Borrowing is converted to a LIBO Rate Borrowing, the
applicable Base Rate Interest Period shall end on such date; and

 

(b)  for any LIBO Rate Loan, the period
commencing on the date of such Loan and ending on the numerically corresponding
day in the calendar month that is one, two, three or six months thereafter, as
specified in the applicable Borrowing Request or Rate Request;

 

provided, that (i) if any
Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless, in the
case of a LIBO Rate Borrowing only, such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day and (ii) any Interest Period pertaining
to a LIBO Rate Borrowing that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day
of the last calendar month of such Interest Period.  For purposes hereof, the date of a Loan initially shall be the
date on which such Loan is made and thereafter shall be the effective date of
the most recent conversion or continuation of such Loan.

 

“Investment” shall mean, with respect to any
Person, (i) any purchase or other acquisition by that Person of Securities, or
of a beneficial interest in Securities, issued by any other Person, (ii) any
purchase by that Person of a Property or the assets of a business conducted by
another Person, and (iii) any loan (other than loans to employees), advance
(other than deposits with financial institutions available for withdrawal on
demand, prepaid expenses, accounts receivable, advances to employees and
similar items made or incurred in the ordinary course of business) or capital
contribution by that Person to any other Person, including, without limitation,
all Indebtedness to such Person arising from a sale of property by such Person
other than in the ordinary course of its business.  “Investment” shall not include (a) any promissory notes or other
consideration paid to it or by a tenant in connection with Project leasing
activities or (b) any purchase or other acquisition of Securities of, or a
loan, advance or capital contribution to, MAC or any Subsidiary of MAC by MAC
or any other Subsidiary of MAC.  The
amount of any Investment shall be the original cost of such Investment, plus
the cost of all additions thereto less the amount of any return of capital or
principal to the extent such return is in cash with respect to such Investment
without any adjustments for increases or decreases in value or write-ups,
write-downs or write-offs with respect to such Investment.  Notwithstanding the foregoing, Investments
shall not include any promissory notes received by a Person in connection with
a Disposition.

 

“IRS” shall mean the Internal Revenue Service
or any entity succeeding to any of its principal functions under the Code.

 

“Issuing Lender” shall mean DBTCA, in its
capacity as the issuer of Letters of Credit hereunder, and its successors in
such capacity as provided in Section 1.4(10) of the Credit
Agreement.

 

19

 

“Joint Lead Arrangers” shall mean Deutsche Bank
Securities, Inc. and J.P. Morgan Securities Inc., in their respective
capacities as joint lead arrangers and joint book runners for the credit
facility evidenced by the Credit Agreement, together with their permitted
successors and assigns.

 

“Joint Venture” shall mean, as to any Person:  (i) any corporation fifty percent (50%) or
less of the outstanding securities having ordinary voting power of which shall
at the time be owned or controlled, directly or indirectly, by such Person or
by one or more of its Subsidiaries or by such Person and one or more of its
Subsidiaries, or (ii) any partnership, limited liability company, association,
joint venture or similar business organization fifty percent (50%) or less of
the ownership interests having ordinary voting power of which shall at the time
be so owned or controlled. 
Notwithstanding the foregoing, a Joint Venture of MAC shall include each
Person, other than a Subsidiary, in which MAC owns a direct or indirect equity
interest.  Unless otherwise expressly
provided, all references in the Loan Documents to a “Joint Venture” shall mean
a Joint Venture of MAC.

 

“La Cumbre Plaza”
shall mean La Cumbre Plaza, a Retail Property located in Santa Barbara,
California.

 

“LC Collateral Account”
shall have the meaning given such term in Section 1.4(11) of the Credit
Agreement.

 

“LC Disbursement”
shall mean a payment made by the Issuing Lender pursuant to a Letter of Credit.

 

“LC Exposure” shall mean, at any time, the
sum of (a) the aggregate undrawn amount of all outstanding Letters of
Credit at such time plus (b) the aggregate amount of all
LC Disbursements that have not yet been reimbursed by or on behalf of the
Borrower at such time.  The
LC Exposure of any Lender at any time shall be its Applicable Percentage
of the total LC Exposure at such time.

 

“Lenders” shall mean each of the lenders from
time to time party to the Credit Agreement, including any Assignee permitted
pursuant to Section 11.8 of the Credit Agreement.

 

“Letter of Credit” shall mean any standby
letter of credit issued pursuant to the Credit Agreement.

 

“Letter of Credit Collateral” shall have the
meaning given such term in Section 1.4(11) of the Credit Agreement.

 

“Letter of Credit Fee” shall have the meaning
given such term in Section 2.11(2)(A) of the Credit Agreement.

 

20

 

“Letter of Credit Request” shall have the
meaning given such term in Section 1.4(2) of the Credit Agreement.

 

“LIBO Rate” shall mean, with respect to any
LIBO Rate Loan for the Interest Period applicable to such LIBO Rate Loan, the
per annum rate for such Interest Period and for an amount equal to the amount
of such LIBO Rate Loan shown on Dow Jones Telerate Page 3750 (or any equivalent
successor page) at approximately 11:00 (London time) two Eurodollar Business
Days prior to the first day of such Interest Period or if such rate is not
quoted, the arithmetic average as determined by the Administrative Agent of the
rates at which deposits in immediately available U.S. dollars in an amount
equal to the amount of such LIBO Rate Loan having a maturity approximately
equal to such Interest Period are offered to four (4) reference banks to be
selected by the Administrative Agent in the London interbank market, at
approximately 11:00 a.m. (London time) two Eurodollar Business Days prior to
the first day of such Interest Period.

 

“LIBO Rate Borrowing”, when used in reference
to any Borrowing, refers to whether the Loans comprising such Borrowing are
bearing interest at a rate determined by reference to the Applicable LIBO Rate.

 

“LIBO Rate Loan”, when used in reference to any
Loan, refers to whether the Loans comprising such Borrowing are bearing
interest at a rate determined by reference to the Applicable LIBO Rate.

 

“LIBO Reserve Percentage” shall mean with
respect to an Interest Period for a LIBO Rate Loan, the maximum aggregate
reserve requirement (including all basic, supplemental, marginal and other
reserves and taking into account any transitional adjustments) which is imposed
under Regulation D on eurocurrency liabilities.

 

“Lien” shall mean any security interest,
mortgage, pledge, lien, claim on property, charge or encumbrance (including any
conditional sale or other title retention agreement), any lease in the nature
thereof, and any agreement to give any security interest.

 

“Loans” shall mean the loans made by the
Lenders to the Borrower pursuant to Section 1.1 of the Credit Agreement.

 

“Loan Documents” shall mean the Credit
Agreement, the Notes and each of the following (but only to the extent
evidencing, guaranteeing, supporting or securing the obligations under the
foregoing instruments and agreements), the REIT Guaranty, each of the Affiliate
Guaranties, any Guaranty executed by any other Guarantor, and each other
instrument, certificate or agreement executed by the Borrower, MAC or the other
Borrower Parties in connection herewith, as any of the same may be Modified
from time to time.

 

21

 

“Loan Month” shall mean any full calendar month
during the term of the Revolving Credit Facility, with the first Loan Month
being August, 2004, which first Loan Month shall be deemed to include the
partial month commencing on the Closing Date.

 

“MAC” shall have the meaning given such term in
the preamble to the Credit Agreement.

 

“Macerich Core Entities” shall mean
collectively, (i) the Consolidated Entities, and (ii) any Joint Venture in
which any Consolidated Entity is a general partner or in which any Consolidated
Entity owns more than 50% of the Capital Stock.

 

“Macerich Entities” shall mean the Borrower
Parties, and all Subsidiary Entities of the Borrower Parties (including
Westcor).

 

“Macerich TWC Corp.” shall mean Macerich TWC
Corp., a Delaware corporation.

 

Macerich TWC II Corp.”
shall mean Macerich TWC II Corp., a Delaware corporation.

 

“Macerich TWC LLC” shall mean Macerich TWC LLC,
a Delaware limited liability company.

 

“Macerich TWC II LLC” shall mean Macerich TWC
II LLC, a Delaware limited liability company.

 

“Macerich WRLP Corp.” shall mean Macerich WRLP
Corp., a Delaware corporation.

 

“Macerich WRLP LLC” shall mean Macerich WRLP
LLC, a Delaware limited liability company.

 

“Macerich WRLP II Corp.” shall mean Macerich
WRLP II Corp., a Delaware corporation.

 

“Macerich WRLP II LP” shall mean Macerich WRLP
II LP, a Delaware limited partnership.

 

“Macerich Partnership” shall have the meaning
given such term in the preamble to the Credit Agreement.

 

“Management Companies” shall mean Macerich
Property Management Company, a Delaware limited liability company, Macerich
Management Company, a California corporation, Westcor Partners LLC, an Arizona limited liability company, Westcor
Partners of Colorado LLC, a Colorado limited liability company, Macerich
Westcor Management LLC, a Delaware limited liability company, and
includes their respective successors.

 

22

 

“Management Contracts” shall mean any contract
between any Management Company, on the one hand, and any other Macerich Entity,
on the other hand, relating to the management of any Macerich Entity or any
Joint Venture or any of the properties of such Person, as the same may be
amended from time to time.

 

“Margin Stock” shall mean “margin stock” as
defined in Regulation U.

 

“Master Management Agreements” shall mean
Management Contracts between a Macerich Entity, as owner of a Project, and a
Wholly Owned Subsidiary in the form of Exhibit H attached hereto (or
with respect to Subsidiaries of Westcor, in the form that exists as of the
Closing Date) with such Modifications to such form as may be made by the
Macerich Entities in their reasonable judgment so long as such Modifications
are fair, reasonable, and no less favorable to the owner than would be obtained
in a comparable arm’s-length transaction with a Person not a Transactional
Affiliate.

 

“Material Adverse Effect” shall mean with
respect to (a) MAC and its Subsidiaries on a consolidated basis taken as a
whole or (b) Macerich Partnership and its Subsidiaries on a consolidated basis
taken as a whole, any of the following (1) a material adverse change in,
or a material adverse effect upon, the operations, business, properties,
condition (financial or otherwise) or prospects of any of such Persons from and
after the Statement Date, (2) a material impairment of the ability of any
of such Persons to otherwise perform under any Loan Document; or (3) a
material adverse effect upon the legality, validity, binding effect or
enforceability against any of such Persons of any Loan Document.

 

“Measuring Period” shall mean the period of
four consecutive fiscal quarters ended on the last day of the Fiscal Quarter
most recently ended as to which operating statements with respect to a Real
Property have been delivered to the Lenders.

 

“Minority Interest” shall mean all of the
partnership units (as defined under the Macerich Partnership’s partnership
agreement) of the Macerich Partnership held by any Person other than MAC.

 

“Modifications” shall mean any amendments, supplements, modifications, renewals,
replacements, consolidations, severances, substitutions and extensions of any
document or instrument from time to time; “Modify”, “Modified,” or related
words shall have meanings correlative thereto.

 

“Moody’s” shall mean Moody’s Investors Service,
Inc., or any successor thereto.

 

“Mortgage Loans” shall mean all loans owned or
held by any of the Macerich Entities secured by mortgages or deeds of trust on
Retail Properties.

 

“Multiemployer Plan” shall mean a
“multiemployer plan” (within the meaning of Section 4001(a)(3) of ERISA) and to
which any Consolidated Entity or any ERISA

 

23

 

Affiliate makes, is
making, or is obligated to make contributions or, during the preceding three
calendar years, has made, or been obligated to make, contributions.

 

“Net Hedging Obligations” shall mean, as of any date of determination, the excess (if
any) of all “unrealized losses” over all “unrealized profits” of such Person
arising from Hedging Obligations as substantiated in writing by the Borrower
and approved by the Administrative Agent.  “Unrealized losses” means the fair market value of the cost to
such Person of replacing such Hedging Obligation as of the date of
determination (assuming the Hedging Obligation were to be terminated as of that
date), and “unrealized profits” means the fair market value of the gain to such
Person of replacing such Hedging Obligation as of the date of determination
(assuming such Hedging Obligation were to be terminated as of that date).

 

“Net Income” shall mean, for any period, the
net income (or loss), after provision for taxes, of the Consolidated Entities
determined on a consolidated basis for such period taken as a single accounting
period as determined in accordance with GAAP, and including the Consolidated
Entities’ pro rata share of the net income (or loss) of any Joint Venture for
such period, but excluding (i) any recorded losses and gains and other
extraordinary items for such period; (ii) other non-cash charges and expenses
(including non-cash charges resulting from accounting changes), (iii) any
gains or losses arising outside of the ordinary course of business, and (iv)
any charges for minority interests in the Macerich Partnership held by
Unaffiliated Partners.  For purposes
hereof the Consolidated Entities’ pro rata share of the net income (or loss) of
any Joint Venture shall be deemed equal to the product of (i) the income (or
loss) of such Joint Venture, multiplied by (ii) the percentage of the
total outstanding Capital Stock of such Person held by any Consolidated Entity,
expressed as a decimal.

 

“Net Worth” means, at any date, the
consolidated stockholders’ equity of the Consolidated Entities, excluding any
amounts attributable to Disqualified Capital Stock.

 

“New Borrowing” shall mean any new advance of
funds by the Lenders to the Borrower constituting either a Base Rate Loan or a
LIBO Rate Loan.

 

“Non-Defaulting Lender” shall mean each and
every Lender, except those Lenders that have defaulted in their respective
obligations under the Credit Agreement (including, without limitation, the
obligations under Section 1.4(5) and Section 1.5 of the Credit
Agreement), as determined by the Administrative Agent in its sole reasonable
discretion.

 

“Northpark Mall” shall mean Northpark Mall, a
Retail Property located in Dallas, Texas.

 

“Note” shall mean a promissory note in the form
of that attached to the Credit Agreement as Exhibit I issued by the
Borrower at the request of a Lender pursuant to Section 1.8(6) of
the Credit Agreement.

 

24

 

“Obligations” shall mean any and all debts,
obligations and liabilities of the Borrower or the other Borrower Parties to
the Administrative Agent, the Issuing Lender, the other Agents and the Lenders
(whether now existing or hereafter arising, voluntary or involuntary, whether
or not jointly owed with others, direct or indirect, absolute or contingent,
liquidated or unliquidated, and whether or not from time to time decreased or
extinguished and later increased, created or incurred), arising out of or
related to the Loan Documents.

 

“Organizational Documents” shall mean:  (a) for any corporation, the
certificate or articles of incorporation, the bylaws, any certificate of
determination or instrument relating to the rights of preferred shareholders of
such corporation, and all applicable resolutions of the Board of Directors (or
any committee thereof) of such corporation, (b) for any partnership, the
partnership agreement, any certificate of formation, and any other instrument
or agreement relating to the rights between the partners or pursuant to which
such partnership is formed, (c) for any limited liability company, the
operating agreement, any articles of organization or formation, and any other
instrument or agreement relating to the rights between the members, pertaining to
the manager, or pursuant to which such limited liability company is formed, and
(d) for any trust, the trust agreement and any other instrument or
agreement relating to the rights between the trustors, trustees and
beneficiaries, or pursuant to which such trust is formed.

 

“Original Commitment Termination Date” shall
mean July 30, 2007.

 

“Other Taxes” means any and all present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies of a Governmental Authority with respect to any
payment made under any Loan Document or from the execution, delivery or
enforcement of any Loan Document.

 

“Participant” shall have the meaning given such
term in Section 11.8 of the Credit Agreement.

 

“PBGC” shall mean the Pension Benefit Guaranty
Corporation or any entity succeeding to any of its principal functions under
ERISA.

 

“Pension Plan” shall mean a pension plan (as
defined in Section 3(2) of ERISA) subject to Title IV of ERISA which the
Consolidated Entities or any ERISA Affiliate sponsors, maintains, or to which
it makes, is making, or is obligated to make contributions, or in the case of a
multiple employer plan (as described in Section 4064(a) of ERISA) has made
contributions at any time during the immediately preceding five (5) plan years,
but excluding any Multiemployer Plan.

 

“Permitted Encumbrances” shall mean any Liens
with respect to the assets of the Borrower Parties and Macerich Core Entities
consisting of the following:

 

(a)           Liens
(other than environmental Liens and Liens in favor of the PBGC) with respect to
the payment of taxes, assessments or governmental charges in all

 

25

 

cases which are not yet
due or which are being contested in good faith and with respect to which
adequate reserves or other appropriate provisions are being maintained in
accordance with GAAP;

 

(b)           Statutory
liens of carriers, warehousemen, mechanics, materialmen, landlords, repairmen
or other like Liens arising by operation of law in the ordinary course of
business for amounts which, if not resolved in favor of the Borrower Parties or
the Macerich Core Entities, could not result in a Material Adverse Effect;

 

(c)           Liens
securing the performance of bids, trade contracts (other than borrowed money),
leases, statutory obligations, surety and appeal bonds, performance bonds and
other obligations of a like nature incurred in the ordinary course of business;

 

(d)           Other
Liens, incidental to the conduct of the business of the Borrower Parties or the
Macerich Core Entities, including Liens arising with respect to zoning
restrictions, easements, licenses, reservations, covenants, rights-of-way,
easements, encroachments, building restrictions, minor defects, irregularities
in title and other similar charges or encumbrances on the use of the assets of
the Borrower Parties or the Macerich Core Entities which do not interfere with
the ordinary conduct of the business of the Borrower Parties or the Macerich
Core Entities and that are not incurred (i) in violation of any terms and
conditions of the Credit Agreement; (ii) in connection with the borrowing of
money or the obtaining of advances or credit, or (iii) in a manner which could
result in a Material Adverse Effect;

 

(e)           Liens
incurred or deposits made in the ordinary course of business in connection with
worker’s compensation, unemployment insurance and other types of social
security;

 

(f)            Any
attachment or judgment Lien not constituting an Event of Default;

 

(g)           Licenses
(with respect to intellectual property and other property), leases or subleases
granted to third parties;

 

(h)           any
(i) interest or title of a lessor or sublessor under any lease not prohibited
by the Credit Agreement, (ii) Lien or restriction that the interest or title of
such lessor or sublessor may be subject to, or (iii) subordination of the
interest of the lessee or sublessee under such lease to any Lien or restriction
referred to in the preceding clause (ii), so long as the holder of such Lien or
restriction agrees to recognize the rights of such lessee or sublessee under
such lease;

 

(i)            Liens
arising from filing UCC financing statements relating solely to leases not
prohibited by the Credit Agreement;

 

(j)            Liens
in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;
and

 

26

 

(k)           Liens
on personal property.

 

“Person” shall mean any corporation, natural
person, firm, joint venture, partnership, trust, unincorporated organization,
government or any department or agency of any government.

 

“Plan” shall mean an employee benefit plan (as
defined in Section 3(3) of ERISA) which the Consolidated Entities or any ERISA
Affiliate sponsors or maintains or to which the Consolidated Entities or any
ERISA Affiliate makes, is making, or is obligated to make contributions and
includes any Pension Plan, other than a Multiemployer Plan.

 

“Potential Default” shall mean an event which
but for the lapse of time or the giving of notice, or both, would constitute an
Event of Default.

 

“Prime Rate” shall mean the fluctuating per
annum rate announced from time to time by DBTCA or any successor Administrative
Agent at its principal office in New York, New York as its “prime rate”.  The Prime Rate is a rate set by DBTCA as one
of its base rates and serves as the basis upon which effective rates of
interest are calculated for those loans making reference thereto, and is
evidenced by the recording thereof after its announcement in such internal
publication or publications as DBTCA may designate.  The Prime Rate is not tied to any external index and does not
necessarily represent the lowest or best rate of interest actually charged to
any class or category of customers. 
Each change in the Prime Rate will be effective on the day the change is
announced within DBTCA.

 

“Project” shall mean any shopping center,
retail property, office building, mixed use property or other income producing
project owned or controlled, directly or indirectly by a Macerich Entity.  “Project” shall include the redevelopment,
or reconstruction of any existing Project.

 

“Property” shall mean, collectively and
severally, any and all Real Property and all personal property owned or
occupied by the subject Person.  “Property” shall include all Capital Stock owned by the subject
Person in a Subsidiary Entity.

 

“Property Expense” shall mean, for any Retail
Property, all operating expenses relating to such Retail Property, including
the following items (provided,
however, that Property
Expenses shall not include debt service, tenant improvement costs, leasing
commissions, capital improvements, Depreciation and Amortization Expenses and
any extraordinary items not considered operating expenses under GAAP):  (i) all expenses for the operation of such
Retail Property, including any management fees payable under the Management
Contracts and all insurance expenses, but not including any expenses incurred
in connection with a sale or other capital or interim capital transaction; (ii)
water charges, property taxes, sewer rents and other impositions, other than
fines, penalties, interest or such impositions (or portions thereof) that are
payable by reason of the failure

 

27

 

to pay an imposition
timely; and (iii) the cost of routine maintenance, repairs and minor
alterations, to the extent they can be expensed under GAAP.

 

“Property Income” shall mean, for any Retail
Property, all gross revenue from the ownership and/or operation of such Retail
Property (but excluding income from a sale or other capital item transaction),
service fees and charges and all tenant expense reimbursement income payable
with respect to such Retail Property.

 

“Property NOI” shall mean, for any Retail
Property for any period, (i) all Property Income for such period, minus
(ii) all Property Expenses for such period.

 

“Rate Request” shall mean a request for the
conversion or continuation of a Base Rate Loan or LIBO Rate Loan as set forth
in Section 1.6(2) of the Credit Agreement.

 

“Real Property” means each of those parcels (or
portions thereof) of real property, improvements and fixtures thereon and
appurtenances thereto now or hereafter owned or leased by the Macerich
Entities.

 

“Real Property Under Construction” shall mean
Real Property for which Commencement of Construction has occurred but
construction of such Real Property is not substantially complete or has not yet
reached Stabilization.

 

“Regulation D” shall mean Regulation D of the
Board of Governors of the Federal Reserve System from time to time in effect
and shall include any successor or other regulation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.

 

“Regulation U” shall mean Regulation U of the
Board of Governors of the Federal Reserve System (12 C.F.R. § 221), as the same
may from time to time be amended, supplemented or superseded.

 

“REIT” shall mean a domestic trust or
corporation that qualifies as a real estate investment trust under the
provisions of Sections 856, et seq. of the Code.

 

“REIT Guaranty” shall mean the credit guaranty
executed by MAC in favor of DBTCA (or a successor Administrative Agent), in its
capacity as Administrative Agent for the benefit of the Lenders, as the same
may be Modified from time to time.

 

“Related Parties” shall mean, with respect to
any specified Person, such Person’s Affiliates and the respective directors,
officers, employees, agents and advisors of such Person and such Person’s
Affiliates.

 

“Reportable Event” shall mean any of the events
set forth in Section 4043(b) of ERISA or the regulations thereunder, other than
any such event for which the thirty (30)-day notice requirement under ERISA has
been waived in regulations issued by the PBGC.

 

28

 

“Required Lenders” means, at any time, Lenders
having Revolving Credit Exposures and Unused Commitments representing an amount
not less than 66 2/3% of the sum of the total Revolving Credit
Exposures and Unused Commitments at such time.

 

“Requirements of Law” shall mean, as to any
Person, the Organizational Documents of such Person, and any law, treaty, rule
or regulation, or a final and binding determination of an arbitrator or a
determination of a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

 

“Reserve Adjusted LIBO Rate” shall mean, with
respect to any LIBO Rate Loan, the rate per annum (rounded upward, if
necessary, to the next higher 1/16 of one percent) calculated as of the first
day of such Interest Period in accordance with the following formula:

 

	
  Reserve Adjusted LIBO Rate =

  	
   

  	
  LR

  
	
   

  	
   

  	
  1-LRP

  

 

where

LR   =  LIBO Rate

LRP =  LIBO
Reserve Percentage (expressed as a decimal)

 

“Responsible Financial Officer” shall mean,
with respect to any Person, the chief financial officer or treasurer of such
Person or any other officer, partner or member having substantially the same
authority and responsibility.

 

“Responsible Officer” shall mean, with respect
to any Person, the president, chief executive officer, vice president,
Responsible Financial Officer, general partner or managing member of such
Person or any other officer, partner or member having substantially the same
authority and responsibility.

 

“Restricted Cash” shall mean any cash or cash
equivalents held by any Person with respect to which such Person does not have
unrestricted access and unrestricted right to expend such cash or expend or
liquidate such permitted Investments.

 

“Retail Property” means any Real Property that
is a neighborhood, community or regional shopping center or mall or an office
building.

 

“Retail Property Under Construction” shall mean
Retail Property for which Commencement of Construction has occurred but
construction of such Retail Property is not substantially complete or has not
yet reached Stabilization.

 

“Revolving Credit Exposure” shall mean, with
respect to any Lender at any time, the aggregate outstanding principal amount
of such Lender’s Loans and LC Exposure, at such time.

 

“Revolving Credit Facility” shall mean this
amended and restated credit facility which provides for the extension of credit
and the issuance of letters of credit from time

 

29

 

to time in an aggregate
amount not to exceed $1,000,000,000, as set forth, and subject to the terms of,
the Credit Agreement.

 

“S&P” shall mean Standard & Poor’s
Rating Services, a division of the McGraw-Hill Companies, Inc., or any
successor thereto.

 

“Secured Indebtedness” shall mean that portion
of the Total Liabilities that is, without duplication:  (i) secured by a Lien; or (ii) any unsecured
Indebtedness of any Subsidiary of a Borrower Party if such Subsidiary is not a
Guarantor.

 

“Secured Indebtedness Ratio” shall mean, at any
time, the ratio of (i) Secured Indebtedness to (ii) Gross Asset Value for such
period.

 

“Secured Recourse Indebtedness” shall mean
Secured Indebtedness to the extent the principal amount thereof has been
guaranteed by (or is otherwise recourse to) any Borrower Party (other than a
Borrower Party whose sole
assets are (i) collateral for such Secured Indebtedness; or (ii) Capital Stock
in another Borrower Party whose
sole assets are such collateral and who otherwise meets the criteria set forth
in clauses (D) through (T) in the definition of Single Purpose Entity).

 

“Securities” means any stock, shares,
partnership interests, voting trust certificates, certificates of interest or
participation in any profit sharing agreement or arrangement, bonds,
debentures, options, warrants, notes, or other evidences of indebtedness,
secured or unsecured, convertible, subordinated or otherwise, or in general any
instruments commonly known as “securities” or any certificates of interest,
shares or participations in temporary or interim certificates for the purchase
or acquisition of, or any right to subscribe to, purchase or acquire, any of
the foregoing.

 

“Senior Managing Agents” shall mean U.S. Bank,
National Association and Key Bank in their respective capacities as senior
managing agents for the credit facility evidenced by the Credit Agreement,
together with their permitted successors and assigns.

 

“Single Purpose Entity” shall mean shall mean a
Person, other than an individual, which (A) is formed or organized solely
for the purpose of holding, directly or indirectly, an ownership interest in
the Westcor Principal Entities, (B) does not engage in any business
unrelated to clause (A) above, (C) has not and will not have any assets
other than those related to its activities in accordance with clauses (A) and
(B) above, (D) maintains its own separate books and records and its own
accounts, in each case which are separate and apart from the books and records
and accounts of any other Person, (E) holds itself out as being a Person,
separate and apart from any other Person, (F) does not and will not
commingle its funds or assets with those of any other Person, (G) conducts
its own business in its own name, (H) maintains separate financial
statements and files its own tax returns (or if its tax returns are
consolidated with those of MAC, such returns shall clearly identify such Person
as a separate legal entity), (I) pays its own debts and liabilities when they
become due out of its own funds, (J) observes all partnership, corporate,
limited liability company or trust formalities, as applicable, and

 

30

 

does all things necessary
to preserve its existence, (K) except as expressly permitted by the Loan
Documents, maintains an arm’s-length relationship with its Transactional
Affiliates and shall not enter into any Contractual Obligations with any
Affiliates except as permitted under the Credit Agreement, (L) pays the
salaries of its own employees, if any, and maintains a sufficient number of
employees in light of its contemplated business operations, (M) does not
guarantee or otherwise obligate itself with respect to the debts of any other
Person, or hold out its credit as being available to satisfy the obligations of
any other Person, except with respect to the Loans and as otherwise permitted
under the Loan Documents, (N) does not acquire obligations of or
securities issued by its partners, members or shareholders, (O) allocates
fairly and reasonably shared expenses, including any overhead for shared office
space, (P) uses separate stationery, invoices, and checks, (Q) does
not and will not pledge its assets for the benefit of any other Person (except
as permitted under the Loan Documents) or make any loans or advances to any
other Person (except with respect to the Loans), (R) does and will correct
any known misunderstanding regarding its separate identity, (S) maintains
adequate capital in light of its contemplated business operations, and
(T) has and will have a partnership or operating agreement, certificate of
incorporation or other organizational document which complies with the
requirements set forth in this definition.

 

“Solvent” shall mean, when used with respect to
any Person, that at the time of determination: 
(i) the fair saleable value of its assets is in excess of the total
amount of its liabilities (including, without limitation, contingent
liabilities); (ii) the present fair saleable value of its assets is greater
than its probable liability on its existing debts as such debts become absolute
and matured; (iii) it is then able and expects to be able to pay its debts
(including, without limitation, contingent debts and other commitments) as they
mature; and (iv) it has capital sufficient to carry on its business as
conducted and as proposed to be conducted.

 

“Stabilization” shall mean, with respect to any
Real Property, the earlier of (i) the date on which eighty-five percent (85%)
or more of the Gross Leasable Area of such Real Property has been subject to
binding leases for a period of twelve (12) months or longer, or (ii) the date
twenty-four (24) months after the date that substantially all portions of such
Real Property are open to the public and operating in the ordinary course of
business.

 

“Stated Amount” shall mean, with respect to any
Letter of Credit, the maximum amount available to be drawn thereunder, without
regard to whether any conditions to drawing could be met.

 

“Statement Date” shall mean December 31, 2003.

 

“Subsidiary” shall mean, with respect to any
Person:  (a) any corporation more than
fifty percent (50%) of the outstanding securities having ordinary voting power
of which shall at the time be owned or controlled, directly or indirectly, by
such Person or by one or more of its Subsidiaries or by such Person and one or
more of its Subsidiaries, (b) any partnership, limited liability company,
association, joint venture

 

31

 

or similar business
organization more than fifty percent (50%) of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled, (c)
with respect to MAC, any other Person in which MAC owns, directly or
indirectly, any Capital Stock and which would be combined with MAC in the
consolidated financial statements of MAC in accordance with GAAP; or (d) with
respect to the Westcor Guarantors and the Westcor Principal Entities, any other
Person in which they own, directly or indirectly, any Capital Stock and which
would be combined with them in consolidated financial statements in accordance
with GAAP.

 

“Subsidiary Entities” shall mean a Subsidiary
or Joint Venture of a Person.  Unless
otherwise expressly provided, all references in the Loan Documents to a
“Subsidiary Entity” shall mean a Subsidiary Entity of MAC.

 

“Supplemental Guarantor” shall have the meaning
set forth in Section 4.1 of the Credit Agreement.

 

“Supplemental Guaranties” shall mean a Guaranty
executed by a Supplemental Guarantor pursuant to Section 4.1 of the
Credit Agreement.

 

“Syndication Agent” shall mean JPMorgan Chase
Bank, in its capacity as syndication agent for the credit facility evidenced by
the Credit Agreement, together with its permitted successors and assigns.

 

“Tangible Net Worth” shall mean, at any time,
(i) Net Worth minus (ii) Intangible Assets, plus (iii) solely for
purposes of Section 8.12(1) of the Credit Agreement, any minority
interest reflected in the balance sheet of MAC, but only to the extent attributable
to Minority Interests, in each case at such time.

 

“Taxes” shall mean any and all present or
future taxes, levies, imposts, duties, deductions, charges or withholdings
imposed by any Governmental Authority.

 

“Tax Expense” shall mean (without duplication),
for any period, total tax expense (if any) attributable to income and franchise
taxes based on or measured by income, whether paid or accrued, of the
Consolidated Entities, including the Consolidated Entity’s pro rata share of tax
expenses in any Joint Venture.  For
purposes of this definition, the Consolidated Entities’ pro rata share of any such
tax expense of any Joint Venture shall be deemed equal to the product of (i)
such tax expense of such Joint Venture, multiplied by (ii) the percentage of the
total outstanding Capital Stock of such Person held by the Consolidated Entity,
expressed as a decimal.

 

“The Mall at Victor Valley” shall mean The Mall
at Victor Valley, a Retail Property located in Victorville, California.

 

“Total Liabilities” shall mean, at any time,
without duplication, the aggregate amount of (i) all Indebtedness and other
liabilities of the Consolidated Entities reflected in the financial statements
of MAC or disclosed in the notes thereto (to the extent the same would constitute
a Contingent Obligation), plus (ii) all Indebtedness and other

 

32

 

liabilities of all Joint
Ventures reflected in the financial statements of such Joint Ventures or
disclosed in the notes thereto (to the extent the same would constitute a
Contingent Obligation) which are otherwise recourse to any Consolidated Entity
or any of its assets or that otherwise constitutes Indebtedness of any
Consolidated Entity (including any recourse obligations arising as a result of
a Consolidated Entity serving as a general partner, directly or indirectly, in
such Joint Ventures, unless such general partner is a corporation whose sole
asset is its general partnership interest and who otherwise meets the criteria
set forth in clauses (D) through (T) in the definition of Single Purpose
Entity); provided  that, notwithstanding this clause
(ii), those certain guarantees described on Schedule G-2 to the Credit
Agreement, which liabilities thereunder are recourse, directly or indirectly,
to any of the Westcor Principal Entities or their Subsidiaries, shall be
considered an obligation governed by clause (iii) below, plus (iii) the Consolidated
Entities’ pro
rata share of all Indebtedness and other liabilities reflected in
the financial statements of any Joint Venture or disclosed in the notes thereto
(to the extent the same would constitute a Contingent Obligation) not otherwise
constituting Indebtedness of or recourse to any Consolidated Entity or any of
its assets, plus
(iv) all liabilities of the Consolidated Entities with respect to purchase and
repurchase obligations, provided that any obligations to acquire
fully-constructed Real Property shall not be included in Total Liabilities
prior to the transfer of title of such Real Property.  With respect to any Real Property Under Construction as to which
any Consolidated Entity has provided an outstanding and undrawn letter of
credit relating to the performance and/or completion of construction at such
property, the amount of Indebtedness evidenced by such letter of credit shall
be included in Total Liabilities if: 
(a) such Indebtedness does not duplicate Indebtedness incurred in
respect of such Real Property Under Construction (including any off-site
improvements associated therewith); (b) such Indebtedness is required by GAAP
to be reflected on the liability side of any Consolidated Entities’ balance
sheet; and (c) to the extent such Indebtedness is not required by GAAP to be
reflected on the liability side of any Consolidated Entities’ balance sheet,
then such Indebtedness shall only be included to the extent the amount of such
Indebtedness exceeds $40,000,000.  For
purposes of clause (iii), the Consolidated Entities’ pro rata share of all
Indebtedness and other liabilities of any Joint Venture shall be deemed equal
to the product of (a) such Indebtedness or other liabilities, multiplied
by (b) the percentage of the total outstanding Capital Stock of such
Person held by any Consolidated Entity, expressed as a decimal.

 

“Transactional Affiliates” shall have the
meaning given such term in Section 8.6 of the Credit Agreement.

 

“Type”, when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans
comprising such Borrowing, is determined by reference to the Applicable LIBO
Rate or the Applicable Base Rate.

 

“UCC” shall mean the Uniform Commercial Code.

 

“Unaffiliated Partners” shall mean Persons who
own, directly or indirectly at any tier, a beneficial interest in the Capital
Stock of a Subsidiary Entity, but such Persons shall exclude:  (i) the Macerich Entities; (ii) Affiliates
of Macerich Entities;

 

33

 

(iii) Persons whose
Capital Stock or beneficial interest therein is owned, directly or indirectly
at any tier, by the Macerich Entities or their Affiliates.

 

“Unencumbered Property” shall have the meaning
set forth in Section 4.1 of the Credit Agreement.

 

“Unfunded Pension Liability” shall mean the
excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of
ERISA, over the current value of that Plan’s assets, determined in accordance
with the assumptions used for funding the Pension Plan pursuant to Section 412
of the Code for the applicable plan year.

 

“Unused Commitments” shall mean, with respect
to any Lender at any time, the difference of (i) the total amount of such
Lender’s Commitment and (ii) such Lender’s Revolving Credit Exposure.

 

“Unused Line Fee” shall have the meaning as set
forth in Section 2.11 of the Credit Agreement.

 

“Usage Percentage” shall mean the ratio,
expressed as a percentage, of (i) the sum of (x) the average daily outstanding
amount of Loans and (y) the undrawn face amount of all outstanding Letters of
Credit, to (ii) the aggregate amount of the Lenders’ Commitments during such
period.

 

“Westcor” shall mean (i) the Westcor Principal
Entities, (ii) the Westcor Guarantors, (iii) the Subsidiaries of the Westcor
Guarantors; and (iv) any other Person the accounts of which would be
consolidated with those of the Westcor Guarantors in consolidated financial
statements in accordance with GAAP. 
When the context so requires, “Westcor” shall mean any of the Persons
described above.

 

“Westcor Assets” shall mean all Projects and
related Property, directly or indirectly, in whole or in any part, owned or
leased by Westcor.

 

“Westcor Guarantors” shall mean Macerich WRLP
II Corp., a Delaware corporation, Macerich WRLP II LP, a Delaware limited
partnership, Macerich WRLP Corp., a Delaware corporation, Macerich WRLP LLC, a
Delaware limited liability company, Macerich TWC II Corp., a Delaware
corporation, and Macerich TWC II LLC, a Delaware limited liability company.

 

“Westcor Principal Entities” shall mean,
jointly and severally, Westcor Realty Limited Partnership and The Westcor
Company II Limited Partnership.

 

“Wholly-Owned” shall mean, with respect to any
Real Property, Capital Stock, or other Property owned or leased, that (i) title
to such Property is held directly by, or such Property is leased by, the
Macerich Partnership, or (ii) in the case of Real Property or Capital Stock,
title to such property is held by, or (in the case of Real Property) such
Property is leased by, a Consolidated Entity at least 99% of the Capital Stock
of which is held of record and beneficially by the Macerich Partnership (or a
Person whose Capital

 

34

 

Stock is owned 100% by
Macerich Partnership) and the balance of the Capital Stock of which (if any) is
held of record and beneficially by MAC (or a Person whose Capital Stock is
owned 100% by MAC).  References to
Property Wholly-Owned by Westcor or a Macerich Entity shall mean property 100%
owned by such Person.

 

“Wholly-Owned Raw Land” shall mean Wholly-Owned
land that is not under development and for which no development is planned to
commence within twelve (12) months after the date on which it was acquired.

 

35

 

Other Interpretive
Provisions.

 

(1)           The meanings of defined terms are
equally applicable to the singular and plural forms of the defined terms.  Terms (including uncapitalized terms) not
otherwise defined herein and that are defined in the UCC shall have the
meanings therein described.

 

(2)           The words “hereof”, “herein”,
“hereunder” and similar words refer to this Agreement as a whole and not to any
particular provision of this Agreement; and Section, subsection, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

 

(3)           (i)            The
term “documents” includes any and all instruments, documents, agreements,
certificates, indentures, notices and other writings, however evidenced;

 

(ii)           The term “including” is not limiting
and means “including without limitation;”

 

(iii)          In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from
and including,” the words “to” and “until” each mean “to but excluding,” and
the word “through” means “to and including;”

 

(iv)          The term “property” includes any kind
of property or asset, real, personal or mixed, tangible or intangible; and

 

(v)           The verb “exists” and its correlative
noun forms, with reference to a Potential Default or an Event of Default, means
that such Potential Default or Event of Default has occurred and continues
uncured and unwaived.

 

(4)           Unless otherwise expressly provided
herein, (i) references to agreements (including this Agreement) and other
contractual instruments shall be deemed to include all subsequent Modifications
thereto, but only to the extent such Modifications are not prohibited by the
terms of any Loan Document, (ii) references to any statute or regulation
are to be construed as including all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting the statute
or regulation, and (iii) references to any Person include its permitted
successors and assigns.

 

(5)           This Agreement and the other Loan
Documents may use several different limitations, tests or measurements to
regulate the same or similar matters. 
All such limitations, tests and measurements are cumulative and shall
each be performed in accordance with their terms.

 

36

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