Document:

Exhibit 10.6

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,
MACERICH WRLP CORP.,

MACERICH WRLP LLC,

MACERICH WRLP II CORP.,

MACERICH WRLP II LP,

MACERICH TWC II CORP.,

MACERICH TWC II LLC,

MACERICH WALLEYE LLC,

IMI WALLEYE LLC,

and

WALLEYE RETAIL INVESTMENTS LLC,

as Guarantors

 

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 and

as the Collateral Agent for the Benefited Creditors

 

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

 

Amended and Restated as of April 25, 2005

 

 

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.

  	
   

  	
  REIT Guaranty

  	
   

  
	
  4.2.

  	
   

  	
  Guaranties

  	
   

  
	
  4.3.

  	
   

  	
  Pledge Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
   

  	
  Conditions Precedent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1.

  	
   

  	
  Conditions to Amendment and Restatement

  	
   

  
	
  5.2.

  	
   

  	
  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.

  	
   

  	
  Single
  Purpose Entities

  	
   

  
	
  7.13.

  	
   

  	
  REIT
  Status

  	
   

  
	
  7.14.

  	
   

  	
  Use of
  Proceeds

  	
   

  
	
  7.15.

  	
   

  	
  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.

  	
   

  	
  Successor
  Collateral Agent

  	
   

  
	
  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

  	
   

  
	
  11.21.

  	
   

  	
  Effectiveness
  of Agreement

  	
   

  

 

iv

 

SCHEDULE OF ANNEXES, SCHEDULES AND EXHIBITS

 

	
  ANNEXES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Annex 1

  	
   

  	
  Glossary

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 5.1(2)

  	
   

  	
  Additional
  Closing Conditions

  
	
  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 7.15

  	
   

  	
  Wholly-Owned
  Projects with Non-Standard Management Agreement

  
	
  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
  Guaranty

  
	
  Exhibit E

  	
   

  	
  Form of
  Assignment and Acceptance Agreement

  
	
  Exhibit F

  	
   

  	
  Form of
  Closing Certificate

  
	
  Exhibit G

  	
   

  	
  Form of
  Compliance Certificate

  
	
  Exhibit H-1

  	
   

  	
  Form of
  Master Management Agreement

  
	
  Exhibit H-2

  	
   

  	
  Form of
  Rochester Management Agreement

  
	
  Exhibit I

  	
   

  	
  Form of
  Note

  
	
  Exhibit J

  	
   

  	
  Form of
  Pledge Agreement

  
					

 

v

 

CREDIT AGREEMENT

 

THIS AMENDED
AND RESTATED CREDIT AGREEMENT (the “Agreement”) is made and dated as of April 25,
2005, by and among THE MACERICH PARTNERSHIP, L.P., a limited partnership
organized under the laws of the state of Delaware (“Macerich Partnership”),
AS BORROWER; THE MACERICH COMPANY, a Maryland corporation (“MAC”); MACERICH WRLP II CORP., a Delaware
corporation (“Macerich WRLP II Corp.”); MACERICH WRLP II LP, a
Delaware limited partnership (“Macerich WRLP II LP”); MACERICH WRLP
CORP., a Delaware corporation (“Macerich WRLP Corp.”); MACERICH WRLP
LLC, a Delaware limited liability company (“Macerich WRLP LLC”);
MACERICH TWC II CORP., a Delaware corporation (“Macerich TWC Corp.”);
MACERICH TWC II LLC, a Delaware limited liability company (“Macerich TWC LLC”);
MACERICH WALLEYE LLC, a Delaware limited liability company (“Macerich
Walleye LLC”); IMI WALLEYE LLC, a Delaware limited liability company (“IMI
Walleye LLC”); and WALLEYE RETAIL INVESTMENTS LLC, a Delaware limited
liability company (“Walleye Investments LLC”), AS GUARANTORS; 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”) and as collateral agent for the
Benefited Creditors.

 

RECITALS

 

A.                                   Pursuant
to that certain Amended and Restated Credit Agreement, dated as of July 30,
2004, as amended or otherwise modified to date (the “Existing Credit
Agreement”), by and among the Borrower, MAC, the lenders from time to time
party thereto (the “Existing  Lenders”), and DBTCA, as
Administrative Agent, the Existing Lenders have made $1,000,000,000 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 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 and as collateral agent on behalf of the Benefited
Creditors 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:

 

1

 

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.

 

1.2.                              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

 

2

 

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

 

(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

 

3

 

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 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 Outside L/C Maturity 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

 

4

 

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 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

 

5

 

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 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

 

6

 

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 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)                              On the Commitment Termination Date,
the Borrower shall 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 (the “Commitment Termination LC Exposure Deposit”).  In addition, 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 the LC Collateral
Account 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

 

7

 

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

 

(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.

 

8

 

(G)                                At such time prior to the Commitment
Termination Date 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 L/C Collateral Account shall be promptly returned to the
Borrower.  For avoidance of doubt, the
preceding sentence shall not affect Borrower’s obligation to make the
Commitment Termination LC Exposure Deposit on the Commitment Termination Date
as otherwise provided in Section 1.4(11)(A).  Any surplus of the funds held in the L/C
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 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

 

9

 

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
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

 

10

 

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;

 

(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.

 

11

 

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 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

 

12

 

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.

 

(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

 

13

 

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.

 

(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.

 

14

 

(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 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

 

15

 

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 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

 

16

 

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.

 

2.7.                              Increased Costs.

 

(1)                                  Subject to the provisions of Section 2.10
(which shall be controlling with respect to the matters covered thereby), 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;

 

17

 

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 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

 

18

 

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.

 

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.

 

19

 

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 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

 

20

 

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.

 

(6)                                  Any Foreign Lender that does not act
or ceases to act for its own account with respect to any portion of any sums
paid or payable to such Lender under any of the Loan Documents (for example, in
the case of a typical participation by such Lender) shall deliver to the
Borrower (with copies to the Administrative Agent and in such number of copies
as shall be requested by the recipient), on or prior to the date such Foreign
Lender becomes a Lender, or on such later date when such Foreign Lender ceases
to act for its own account with respect to any portion of any such sums paid or
payable, and from time to time thereafter, required for renewal under
applicable law:

 

(A)                              duly executed and properly completed
copies of the forms and statements required to be provided by such Foreign
Lender under Section 2.10(5), to establish the portion of any such sums
paid or payable with respect to which such Lender acts for its own account and
is providing Evidence of No Withholding, and

 

(B)                                copies of the Internal Revenue
Service Form W 8IMY (or any successor forms) properly completed and duly
executed by such Foreign Lender, together with any information, if any, such
Foreign Lender chooses to transmit with such form, and any other certificate or
statement of exemption required under the Internal Revenue Code or the
regulations thereunder, to establish that such Foreign Lender is not acting for
its own account with respect to a portion of any such sums payable to such
Foreign Lender.

 

(7)                                  Any Lender that is not a Foreign
Lender and has not otherwise established to the reasonable satisfaction of the
Borrower and the Administrative Agent that it is an exempt recipient (as
defined in section 6049(b)(4) of the Internal Revenue Code and the
United States Treasury Regulations thereunder) shall deliver to the Borrower
(with copies to the Administrative Agent and in such number of copies as shall
be requested by the recipient) on or prior to the date on which such Lender
becomes a Lender under this Agreement (and from time to time thereafter as
prescribed by applicable law or upon the request of the Borrower or the
Administrative Agent), duly executed and properly completed copies of Internal
Revenue Service Form W 9.

 

(8)                                  If the Administrative Agent or any
Lender determines, in its sole discretion, that it has received a refund of any
Indemnified Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.10, it shall pay to the Borrower an
amount equal to such

 

21

 

refund (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.10
with respect to the Indemnified Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent or such
Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund), provided that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental
Authority.  This paragraph shall not be
construed to require the Administrative Agent or any Lender to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to the Borrower or any other Person.

 

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 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,

 

22

 

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 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.

 

23

 

4.1.                              REIT Guaranty.  As credit support for the Obligations, on or
before the Closing Date, MAC shall execute and deliver to the Administrative
Agent, for the benefit of the Lenders, the REIT Guaranty.

 

4.2.                              Guaranties.  As credit support for the Obligations, on or
before the Closing Date, the Westcor Guarantors, the Wilmorite Guarantors and
the Affiliate Guarantors shall each execute and deliver to the Administrative
Agent, for the benefit of the Lenders, a Subsidiary 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 with respect to such Unencumbered
Property within ninety (90) days of its acquisition, such Person, if such
Person is not already a Guarantor (each a “Supplemental Guarantor”), shall: (a) execute
and deliver to the Administrative Agent, for the benefit of the Lenders, a
Guaranty in the form of Exhibit G 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 of any
Affiliate Guarantor or Supplemental Guarantor or the Disposition or Financing
of all Unencumbered Property owned by such Affiliate Guarantor or Supplemental
Guarantor, the Administrative Agent shall release the guaranty executed by such
Person pursuant to this Section 4.1.

 

4.3.                              Pledge Agreements.  As credit support for the Aggregate
Obligations, on or before the Closing Date, Macerich Partnership, MAC, and the
other Pledgors shall each execute and deliver to the Collateral Agent, a Pledge
Agreement, pursuant to which each of them shall pledge to the Collateral Agent,
for the ratable benefit of the Benefited Creditors, all of its direct and
indirect ownership interest in the Subsidiary Entities identified therein.  Upon the Disposition of the pledged equity of
any Affiliate Guarantor or Supplemental Guarantor by any Pledgor in accordance
with the provisions of this Agreement and the Pledge Agreement, the Collateral
Agent shall release the pledged equity of the Person subject to such disposition.

 

4.4                                 Wilmorite
Release.  On not less than five (5) Business
Days written notice from the Borrower to the Administrative Agent, the Borrower
may request a release of IMI Walleye LLC and Walleye Investments LLC as
Subsidiary Guarantors, and such release shall occur on the date requested by
the Borrower (such date, the “Wilmorite Release Date”) provided that the
following conditions are satisfied:

 

(1)                                  The Wilmorite JV
Investment shall have occurred on or prior to the Wilmorite Release Date; and

 

(2)                                  On the Wilmorite
Release Date, no Potential Default or Event of Default shall have occurred and
be continuing.

 

24

 

ARTICLE 5.                                Conditions
Precedent.

 

5.1                                 Conditions
to Amendment and Restatement. 
As conditions precedent to the effectiveness of the amendment and
restatement of this Agreement:

 

(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 and not previously
delivered, a Note payable to such Lender;

 

(C)                                To the extent not previously
delivered, the REIT Guaranty and the Subsidiary Guaranties;

 

(D)                               The Pledge Agreements;

 

(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)                                (i) An opinion of counsel for
the Borrower Parties as of the Closing Date, in form and substance reasonably
acceptable to the Administrative Agent and the Lenders; and (ii) an
opinion of counsel for MAC, in form and substance reasonably acceptable to the
Administrative Agent and the Lenders, regarding MAC’s status as a REIT;

 

(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; provided that if there
has been no amendment or modification to the aforementioned documents since
they were delivered to the Administrative Agent on July 30, 2004, then
each Borrower Party may deliver a certificate from the Secretary or an Assistant
Secretary of such Borrower Party (or if such Person is a limited partnership,
an authorized representative of its general partner) as of the date of this

 

25

 

Agreement certifying that the documents as previously delivered are
true and correct and that there have been no amendments or changes to such
documents;

 

(I)                                    Copies of the Organizational
Documents of each of the Borrower Parties (unless delivered pursuant to clause (H) above)
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; provided that if there has been no
amendment or modification to the aforementioned documents since they were
delivered to the Administrative Agent on July 30, 2004, then each Borrower
Party may deliver a certificate from the Secretary or an Assistant Secretary of
such Borrower Party (or if such Person is a limited partnership, an authorized
representative of its general partner) as of the date of this Agreement
certifying that the documents as previously delivered are true and correct and
that there have been no amendments or modifications to such documents;

 

(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 Collateral Agent (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 and the Collateral Agent that all reasonable costs and
expenses of the Administrative Agent, 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 funding of the Loans be, paid in full; and

 

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

 

26

 

(5)                                  All acts and conditions (including,
without limitation, the obtaining of any third party consents 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 and the consummation of the Wilmorite Acquisition shall have
been done and performed.

 

(6)                                  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.

 

(7)                                  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.                              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

 

(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

 

27

 

MAC, collectively and severally, represent and warrant as of the
Closing Date (or such later date as otherwise expressly provided in this
Agreement), 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, 2003 and 2004 and
(ii) unaudited financial statements of MAC for each fiscal quarter ending
after December 31, 2004 and more than 45 days prior to the Closing Date
(the materials described in clauses (i) and (ii) are referred to as
the “Initial Financial Statements”) ; and (iii) a pro forma balance sheet
and income statement (“Pro Forma Statements”) dated December 31, 2004
reflecting the pro forma combined performance of the Consolidated Entities and
Wilmorite.  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.  The Pro Forma Statements have been prepared
in good faith based upon reasonable assumptions.

 

6.2.                              No Material Adverse
Effect.  Since the Statement
Date no event has occurred which has resulted in, or 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 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 partnership 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

 

28

 

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 Westcor Guarantor, Wilmorite
Guarantor and 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)(I) 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 knowledge of each of the Borrower Parties party to this Agreement,
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 partnership, company or corporate 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 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, except as

 

29

 

contemplated by the Pledge
Agreements, 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
Parties party to this Agreement, 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
Parties party to this Agreement 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 any Borrower Party,
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 (after giving effect to the Wilmorite
Acquisition) 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) the percentage thereof owned by the
Borrower Parties and their Subsidiaries. 
None of such issued and outstanding Capital Stock or Securities owned by
any Borrower Entity 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 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 the 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 

 

30

 

it is a party, and (C) has
all requisite partnership, company or corporate 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 any other Borrower
Party 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 party to this Agreement, nothing has occurred which would cause the
loss of such qualification.

 

(2)           There are no pending or, to the best
knowledge of Borrower Parties party to this Agreement, 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 party to this Agreement, 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 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.

 

31

 

(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 Wilmorite Acquisition, 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 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 

 

32

 

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 Parties party to this Agreement, 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 Parties party to this Agreement, 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.

 

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 

 

33

 

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 December 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 there has been no material change in the type or
amount of such Indebtedness since December 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 Parties 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 all loans made on the Closing Date, each Borrowing and each issuance,
amendment, renewal or extension of any Letter of Credit, each Borrower Party is
and shall be Solvent.

 

6.26.        Foreign
Assets Control Regulations, etc. 
None of the Macerich Entities or their Affiliates: (i) is or will
be in violation of any Laws relating to terrorism or money laundering (“Anti-Terrorism
Laws”), including Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (66 Fed. 
Reg.  49079 (2001)) (the “Executive
Order”), the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56
(“Patriot Act”), or any other applicable requirements contained in the rules and
regulations of the Office of Foreign Assets Control, Department of the Treasury
(“OFAC”); (ii) is or will become a “blocked” person listed in or
subject to the Annex to the Executive Order; (iii) has been or will be
designated as a Specially Designated National on any publicly available lists
maintained by OFAC or any other publicly available list of terrorists or
terrorist organizations maintained pursuant to the Patriot Act (any person
regulated pursuant to clauses (ii) and (iii), a “Prohibited Person”);
or (iv) conducts or will conduct any business or engages or will engage in
any transactions or dealings with any Prohibited Person, including the making
or receiving of any contribution of funds, goods or 

 

34

 

services to or for the benefit
of any Prohibited Person; or any transactions involving any property or
interests in property blocked pursuant to the Executive Order.

 

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:

 

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;

 

35

 

(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 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, MAC 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;

 

36

 

(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.

 

(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 and the Wilmorite Acquisition 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 and MAC shall, and shall cause each of the
Macerich Core Entities to, and the other Borrower Parties shall 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, MAC, the Westcor Principal Entities or prior to the
Wilmorite Release Date, the Wilmorite Principal Entity) (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 and MAC shall, and shall cause each of
the Macerich Core Entities to, and the other Borrower Parties shall 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:

 

37

 

(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 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 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.

 

38

 

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 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 

 

39

 

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.

 

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.        Single Purpose Entities.  The Westcor Guarantors shall maintain
themselves as Single Purpose Entities. 
The Wilmorite Guarantors shall maintain themselves as Single Purpose
Entities.

 

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.

 

40

 

7.15.        Management of Projects.  Except as set forth on Schedule 7.15,
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 or Wilmorite, pursuant to agreements in place on the date hereof;
provided that the Rochester Properties may be managed by the Rochester Manager
pursuant to the Rochester Management Agreement.

 

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:

 

8.1.          Liens.

 

(1)           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:

 

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

 

(B)           Permitted
Encumbrances;

 

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

 

(D)          Liens listed on Schedule 8.1.

 

(2)           No
Liens on the Capital Stock held by MAC or any other Pledgor in any of the
Borrower Parties shall be created or suffered to exist (other than Liens
pursuant to the Pledge Agreements).  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
(other than Liens pursuant to the Pledge Agreements), as a condition to
creating or permitting such Lien, the 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 Development 

 

41

 

Project 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, the Westcor
Principal Entities or prior to the Wilmorite Release Date, the Wilmorite
Principal Entity 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 or the Wilmorite Principal
Entity, a Macerich Core Entity is the surviving entity or the acquirer in any
such merger, consolidation or sale of assets, and (ii) MAC or the Borrower
is the surviving Person in any such merger or consolidation; provided that the Rochester Distribution shall not be
prohibited by this Section 8.3(1).

 

(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 or the
Wilmorite Guarantors; provided that the forgoing shall not prohibit Macerich
Partnership from issuing (i) partnership units as consideration for the
acquisition of a Project otherwise permitted under this Agreement or (ii) profit
participation units in connection with an employee ownership or similar plan;

 

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

 

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

 

(4)           Prior to the Wilmorite Release Date, any Disposition by
any Wilmorite Guarantor of any of the Capital Stock of the Wilmorite Principal
Entity; provided that (i) WHLP may consummate the Rochester Distribution
in accordance with the provisions of the WHLP Partnership Agreement, and (ii) so
long as no Potential Default or Event of Default shall have occurred and be
continuing, WHLP may make cash distributions in accordance with Article 8
of the WHLP Partnership Agreement, provided that the Borrower Parties would be
in compliance with the covenants in Section 8.12, calculated as of the
last day of the most recent fiscal quarter for which financial statements have
been delivered pursuant to Section 7.1(1) or 7.1(2) and on a pro
forma basis as if such cash distribution had occurred, and any Indebtedness 

 

42

 

incurred in connection
therewith had been incurred, on the last day of such fiscal quarter (any
distribution under this clause (ii), a “Permitted WHLP Cash Distribution”); and

 

(5)           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; provided that the
Rochester Distribution shall not violate this Section 8.4(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 the Wilmorite Acquisition and
also 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
  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 

  	
   

  	
  No such Capital Stock
  shall be acquired without the consent of the 

  

 

43

 

	
  Permitted Investment

  	
   

  	
  Limitations

  
	
  Wholly-Owned Subsidiary is
  not a general partner or a managing member

  	
   

  	
  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 or any Wholly-Owned
  Subsidiary

  	
   

  	
  The Aggregate Investment
  Value of all such Mortgage Loans shall not 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

  

 

44

 

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 or,
prior to the Wilmorite Release Date, the Wilmorite Principal Entity 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); (b) any
Modifications which would not have an adverse effect on the Borrower Parties or
their Subsidiaries or (c) Modifications which would have no adverse,
substantive effect on the rights or interests of the Lenders in conjunction
with the Loans or under the Loan Documents.

 

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 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.

 

(1)           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 $75,000,000; (iii) Distributions during any period while an
Event of Default under Section 9.1 has occurred and is continuing as a result
of the Borrower’s failure to pay any principal or interest due under this 

 

45

 

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

 

(2)           Prior
to the Wilmorite Release Date, WHLP shall not make Distributions in any Fiscal
Year other than distributions of Available Cash (as defined in the WHLP
Partnership Agreement) under and in accordance with the provisions of the WHLP
Partnership Agreement except for (i) the Rochester Distribution and (ii) any
Permitted WHLP Cash Distribution.

 

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 sum, without duplication, of (i) cumulative net cash proceeds
received from issuance of Capital Stock of MAC or Borrower after June 30,
2004, (ii) the value of assets acquired (net of indebtedness and excluding
any assets acquired in a Carry Over Basis Transaction (such assets, the “Carry
Over Basis Assets”)) through the issuance of Capital Stock of MAC or the
Borrower after June 30, 2004 and (iii) the increase in Net Worth that
occurs in connection with the Carry Over Basis Assets acquired in all Carry
Over Basis Transactions that are consummated through the issuance of Capital
Stock of MAC or Borrower after June 30, 2004.  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

 

	
  At any time on or prior to October 31,
  2006

  	
   

  	
  1.70 to 1.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  At any time after October 31, 2006

  	
   

  	
  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
through July 31, 2006, 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]

 

46

 

(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 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
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 

 

47

 

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 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

 

48

 

9.13.        There
shall occur an Event of Default under the Existing Term Facility or the New
Term and Interim Loan Facility; or

 

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 and the
Collateral Agent as the agents of such Lender under the Loan Documents and each
such Lender hereby irrevocably authorizes the Administrative Agent and the
Collateral Agent, as the agents for such 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, neither the
Administrative Agent nor the Collateral Agent shall have any duties or
responsibilities, except those expressly set forth herein or therein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into the
Loan Documents or otherwise exist against any of the Agents.  Each Lender acknowledges and agrees that it
shall be bound by all terms and conditions of the Pledge Agreements and the
Guaranties.  No modifications of any
provision of the Loan Documents relating to the Collateral Agent shall be
effective without the written consent of the Collateral Agent.

 

10.2.        Delegation of Duties.  The Administrative Agent and the Collateral
Agent may execute any of  their
respective 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. 
Neither the Administrative Agent nor the Collateral Agent shall be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care.

 

49

 

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, report,
statement or other document referred to or provided for in, or received by the
Administrative Agent or the Collateral 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); (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 (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; (3) the Collateral 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 the Required
Benefited Creditors (or, if a provision of any Loan Document expressly provides
that a greater percentage of Benefited Creditors are required to direct the
action of the Collateral Agent, such greater number of Benefited Creditors) or it
shall first be indemnified to its satisfaction by the Benefited Creditors
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 Collateral Agent’s gross negligence or willful misconduct),
and (4) the Collateral 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 the Required 

 

50

 

Benefited Creditors (or, if a
provision of any Loan Document expressly provides that a greater percentage of
Benefited Creditors are required to direct the action of the Collateral Agent,
such greater number of Benefited Creditors), and such request and any action
taken or failure to act pursuant thereto shall be binding upon all the
Benefited Creditors.

 

10.5.        Notice of Default.  Neither the Administrative Agent nor the
Collateral Agent shall be deemed to have knowledge or notice of the occurrence
of any Potential Default or Event of Default hereunder unless the
Administrative Agent or the Collateral Agent, as the case may be, has received
notice from a 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 Collateral Agent and 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 Lenders (except to the extent that this
Agreement, the Pledge Agreements 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 other group of Lenders
or Benefited Creditors, in which case such action will be taken or not taken as
directed by the Required Lenders or such other group of Lenders or Benefited
Creditors).  The Collateral Agent shall
take such action with respect to such Potential Default or Event of Default as
shall be reasonably directed by the Required Benefited Creditors; provided
that, unless and until the Collateral Agent shall have received such
directions, the Collateral 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 Benefited Creditors (except to the extent that this Agreement, the Pledge
Agreements or the Guaranties expressly require that such action be taken or not
taken by the Collateral Agent with the consent or upon the authorization of the
Required Benefited Creditors, in which case such action will be taken or not
taken as directed by the Required Benefited Creditors).

 

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
Parties, 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 

 

51

 

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 Parties. 
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.

 

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 Subsidiary Entities and Affiliates as though the Administrative
Agent and the other Agents were not, respectively, the Administrative Agent,
the Collateral 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, the
Collateral Agent, a Syndication Agent or an Agent, respectively, and the terms “Lender”
and “Lenders” shall include the Administrative Agent, the Collateral 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 

 

52

 

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.      Successor Collateral Agent.  The Collateral Agent may resign as Collateral
Agent under the Loan Documents upon thirty (30) days’ notice to the
Lenders.  If the Collateral Agent shall
resign, then the Required Benefited Creditors (as determined by excluding the
Benefited Creditor resigning as the Collateral 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 a
successor agent or, if such Required Benefited Creditors are unable to agree on
the appointment of a successor agent, the Collateral Agent shall appoint a
successor agent for the Benefited Creditors whereupon such successor agent
shall succeed to the rights, powers and duties of the Collateral Agent, and the
term “Collateral Agent” shall mean such successor agent effective upon its
appointment, and the former Collateral Agent’s rights, powers and duties as
Collateral Agent shall be terminated, without any other or further act or deed
on the part of such former Collateral Agent or any of the parties to this
Agreement or any of the Loan Documents or successors thereto.  After any retiring Collateral Agent’s
resignation hereunder as Collateral 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 Collateral Agent under the Loan Documents.

 

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.

 

53

 

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 

 

54

 

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, or such lesser amount as agreed by the Administrative Agent; 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.

 

55

 

(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 

 

56

 

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 

 

57

 

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 Parties 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 Parties 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.

 

58

 

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
Collateral 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 Collateral 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 Parties, any such notice being
waived by the Borrower Parties to the fullest extent permitted by law, to set
off and apply in favor of the Benefited Creditors 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 the Issuing Lender to
or for the credit or the account of the Borrower Parties against any and all
Aggregate Obligations owing to the Benefited Creditors, now or hereafter
existing, irrespective of whether or not the Administrative Agent, the
Collateral Agent or such Lender or Issuing Lender shall have made demand under
this Agreement or any Loan Document and although such Aggregate Obligations may
be contingent or unmatured.  Each Lender
and Issuing Lender agrees promptly to (i) notify the Borrower Parties, the
Administrative Agent and the Collateral 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 Collateral
Agent for the ratable benefit of the Benefited Creditors.

 

59

 

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, the Agents, and the other
Benefited Parties, 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.

 

11.21.      Effectiveness of Agreement.  This Agreement shall become effective upon
the execution of a counterpart hereof by the Borrower, MAC, the other Borrower
Parties party to this Agreement, the Required Lenders, the Collateral Agent and
the Administrative Agent and receipt by the Borrower and the Administrative
Agent of written or telephonic notification of such execution and authorization
of delivery thereof.

 

11.22.      References to “Credit Agreement”.  All references in the Notes and other Loan
Documents to the “Credit Agreement” shall refer to this $1,000,000,000 Amended
and Restated Revolving Loan Facility Credit Agreement, as the same may be
Modified.

 

 

[Signature
Pages Follow]

 

60

 

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 and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Rolison

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Linda Wang

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  
					

 

S-2

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  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

 

	
   

  	
  SENIOR
  DEBT PORTFOLIO

  
	
   

  	
   

  
	
   

  	
  By:
  Boston Management and Research, as Investment

  Advisor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAYSON
  & CO

  
	
   

  	
   

  
	
   

  	
  By:
  Boston Management and Research, as Investment

  Advisor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EATON
  VANCE SENIOR INSTITUTIONAL LOAN

  FUND

  
	
   

  	
   

  
	
   

  	
  By:
  Eaton Vance Management, as Investment Advisor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  
					

 

S-25

 

	
   

  	
  NATIONAL
  CITY BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  
				

 

S-26

 

Revolver Facility

 

ANNEX I:  GLOSSARY

 

 

EXECUTION COPY

 

ANNEX I: 
GLOSSARY

 

THIS GLOSSARY
is attached to and made a part of that certain Amended and Restated Credit
Agreement (the “Credit Agreement”) made and dated as of April 25, 2005,
by and among THE MACERICH PARTNERSHIP, L.P., a limited partnership organized
under the laws of the state of Delaware (“Macerich Partnership”), AS
BORROWER; THE MACERICH COMPANY, a Maryland corporation (“MAC”); MACERICH
WRLP II CORP., a Delaware corporation (“Macerich WRLP II Corp.”);
MACERICH WRLP II, a Delaware limited partnership (“Macerich WRLP II LP”);
MACERICH WRLP CORP., a Delaware corporation (“Macerich WRLP Corp.”);
MACERICH WRLP LLC, a Delaware limited liability company (“Macerich WRLP LLC”);
MACERICH TWC II CORP., a Delaware corporation (“Macerich TWC Corp.”);
MACERICH TWC II LLC, a Delaware limited liability company (“Macerich TWC LLC”);
MACERICH WALLEYE LLC, a Delaware limited liability company (“Macerich
Walleye LLC”); IMI WALLEYE LLC, a Delaware limited liability company (“IMI
Walleye LLC”); and WALLEYE RETAIL INVESTMENTS LLC, a Delaware limited
liability company (“Walleye Investments LLC”), AS GUARANTORS; 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”) and as collateral agent for the Benefited Creditors.  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 Guarantors” shall mean, jointly and severally,
Macerich Great Falls Limited Partnership, a California limited partnership,
Macerich Oklahoma Limited Partnership, a California limited partnership,
Macerich Westside Adjacent Limited Partnership, a California limited
partnership, Macerich Sassafras Limited Partnership, a California limited
partnership, Northgate Mall Associates, a California general

 

1

 

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 Collateral
Agent, the Joint Lead Arrangers, the Syndication Agent, the Joint Bookrunning
Managers, the Co-Documentation Agents, the Senior Managing Agents and any other
Persons acting in the capacity of an agent for the Lenders or the Benefited
Creditors 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.

 

“Aggregate Obligations” shall have the meaning given such term
in the Pledge Agreements.

 

“Anti-Terrorism Laws” shall have the meaning given such term in Section
6.26 of the Credit Agreement.

 

“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

 

2

 

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 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:

 

3

 

	
  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%

  

 

“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 Original 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.

 

“Benefited Creditors” shall have the meaning given such term in
the Pledge Agreements.

 

“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

 

4

 

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.

 

“Borrowed Indebtedness” 
of any Person means, without duplication, (A) all obligations for
borrowed money of such Person, (B) all liabilities and obligations, contingent
or otherwise, evidenced by a letter of credit or a reimbursement obligation of
such Person with respect to any letter of credit, (C) all obligations
payable in cash (excluding obligations payable in cash or Capital Stock, at the
option of a Borrower Party) for the deferred purchase price of real property
acquired by such Person (excluding obligations arising in the ordinary course
of business but including all obligations of such Person created or arising
under any conditional sale or other title retention agreement with respect to
any real property acquired by such Person), (D) all obligations for
borrowed money secured by any Lien upon or in any real property owned by such
Person whether or not such Person has assumed or become liable for the payment
of such obligations for borrowed money and (E) all obligations of the type
described in any of clauses (A) through (D) above which are guaranteed,
directly or indirectly, or endorsed (otherwise than for collection or deposit
in the ordinary course of business) or discounted with recourse by such
Person.  Borrowed Indebtedness shall not
include (i) Indebtedness set forth on Schedule 6.21 to the Credit
Agreement, (ii) Indebtedness incurred for the purpose of acquiring one or more
items of personal property, or (iii) guaranties or indemnities executed by the
Borrower Parties in respect of Indebtedness secured by a Permitted Mortgage to
the extent either: (A) such guaranty or indemnity has been incurred in respect
of customary exclusions from the non-recourse provisions of the applicable
Permitted Mortgage (including any customary exclusion in respect of
environmental liabilities); or (B) such Indebtedness has been incurred for the
purpose of financing the construction or development of Real Property owned by
any Subsidiary of the Borrower Parties.

 

“Borrower” shall mean the Macerich Partnership.

 

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

 

“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

 

5

 

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 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.

 

“Carry Over Basis Transaction” 
shall mean any transaction in which the acquired assets have a carry
over basis and are not marked to market at the time of such acquisition.

 

“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

 

6

 

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.

 

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

 

“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; provided,
however, that (i) no Change in Law shall be deemed to have occurred with
respect to any Assignee or Participant until after the date on which such
Assignee or Participant acquired its interest as an Assignee or Participant
under this Agreement and (ii) clause (i) of this proviso shall not apply
to any Change in Law with respect to (x) any Assignee to the extent such
Change in Law was applicable to the assignor Lender on the effective date of
the Assignment and Assumption Agreement pursuant to which such Assignee became
a Lender or (y) any Participant to the extent such Change in Law was
applicable to the Originating Lender on the effective date of the agreement
pursuant to which such Participant became a Participant.

 

“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.

 

7

 

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

 

“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.

 

“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.

 

“Collateral Agent” shall mean DBTCA in its capacity as
collateral agent for the benefit of the Benefited Creditors, together with its
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.

 

“Commitment Termination LC Exposure Deposit” shall have the
meaning given such term in Section 1.4(11)(A) of the Credit Agreement.

 

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

 

8

 

“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.

 

“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

 

9

 

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.

 

“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, 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, encumbrance, creation of a security interest with
respect to, or other transfer, at any tier, of any ownership

 

10

 

interest in any Macerich
Entity; provided, however, that Disposition shall not include any Permitted
Encumbrances or any Distributions to another Macerich Entity; 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.  “Disposition”
shall not include the sale of any ancillary building pad site within a Project
provided that the consideration received for such transaction does not exceed
$1,000,000 for any Project and $5,000,000 in the aggregate for all Projects and
shall not include any ground lease.

 

“Disposition Promissory Note” shall mean any promissory note
received as consideration for the Disposition of a Property subject to Section
3.3 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 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, Macerich
Partnership or, prior to the Wilmorite Release Date, WHLP: (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,
exchange, 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,
(A) to the extent such purchase, redemption, exchange, or other retirement
occurs in exchange for the issuance of Capital Stock of MAC or Macerich
Partnership or (B) with respect to WHLP, to the extent such purchase,
redemption, or other retirement occurs in exchange for the issuance of Capital
Stock of WHLP, MAC or Macerich Partnership in accordance with the provisions of
the WHLP Partnership Agreement.

 

“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.

 

11

 

 “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

 

(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

 

12

 

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 Section 2.10(5) of
the Credit Agreement.

 

“Excluded Taxes”
shall mean, with respect to the Administrative Agent, 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) any
withholding tax (in the case of a Foreign Lender) or backup withholding tax (in
the case of any Lender), that is imposed on amounts payable to such Lender at
the time such Lender becomes a party to the Credit Agreement (or designates a
new lending office) or is attributable to such Lender’s failure to comply with Section 2.10(5) or
Section 2.10(6) of the Credit Agreement, except to the extent
any such withholding taxes were imposed on the Lender’s predecessor in interest
(or former lending office); provided, however, Excluded Taxes shall not include
any withholding tax resulting from any inability to comply with Section 2.10(5) or
Section 2.10(6) of the Credit Agreement solely by reason of
there having occurred a Change in Law.

 

“Executive Order”
shall have the meaning given such term in Section 6.26 of the
Credit Agreement.

 

“Existing Credit
Agreement” shall have the meaning set forth in Recital A of the
Credit Agreement.

 

13

 

“Existing Lender”
shall have the meaning set forth in Recital A of the Credit Agreement.

 

“Existing Term Credit
Agreement” shall mean that certain Credit Agreement evidencing the Existing
Term Facility, amended and restated as of April 25, 2005, by and among the
Borrower, as borrower, MAC and the other guarantors signatory thereto, the
lenders signatory thereto and DBTCA, as administrative agent and collateral
agent.

 

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

 

“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 Existing 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.

 

14

 

“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.

 

“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, including any Bullet Payment under the Interim Loan or Term Loan), (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 (excluding
distributions on convertible preferred units of WHLP in accordance with the
WHLP Partnership Agreement).  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 

 

15

 

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):

 

(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) 7.00% (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

 

16

 

(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;

 

(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) any Retail Property
(whether acquired before or 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
Subsidiary 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

 

17

 

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, 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.

 

“IMI Walleye LLC”
shall mean IMI Walleye LLC, a Delaware limited liability company.

 

“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 

 

18

 

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

 

“Initial Guarantors”
shall mean MAC, the Westcor Guarantors, the Wilmorite Guarantors and the
Affiliate Guarantors who enter into Guaranties on or as of the date hereof.

 

“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 

 

19

 

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; 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.

 

“Interim Loan”
shall mean the “Interim Loan” under and as defined in the New Term and Interim
Loan Credit Agreement.

 

“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. 

 

20

 

“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.

 

“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.

 

“Lakewood Center
Property” shall mean The Lakewood Center, a Retail Property located in
Lakewood, 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 

 

21

 

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.

 

“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.

 

22

 

“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
Subsidiary Guaranties, any Guaranty executed by any other Guarantor, the Pledge
Agreements, 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.

 

“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.  “Macerich Entity” shall
mean any one of the Macerich Entities.

 

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

 

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

 

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

 

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

 

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

 

23

 

“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.

 

“Management Companies”
shall mean (a) 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, Wilmorite Property Management, LLC, a Delaware limited
liability company, and includes their respective successors, and (b) with
respect to the Rochester Properties, the Rochester Manager and it successors
and assigns pursuant to the Rochester Management Agreement.

 

“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 or Subsidiaries of
Wilmorite, 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) the 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.

 

24

 

“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 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.

 

25

 

“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.

 

“New Term and Interim
Loan Credit Agreement” shall mean that certain Credit Agreement evidencing
the New Term and Interim Loan Facility, dated as of April 25, 2005, by and
among the Borrower, as borrower, MAC and the other guarantors signatory
thereto, the lenders signatory thereto and DBTCA, as administrative agent.

 

“New Term and Interim
Loan Facility” shall mean that certain credit facility evidenced by the New
Term and Interim Loan Credit Agreement, which provides for the funding of a
term loan and an interim loan to the Borrower in the aggregate commitment
amount, as of the date hereof, of $950 million.

 

“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.

 

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

 

“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.

 

“OFAC” shall have the
meaning given such term in Section 6.26 of the Credit Agreement.

 

“Officer’s Certificate”
shall mean as to any Person, a certificate executed on behalf of such Person by
a Responsible Officer.

 

“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, 

 

26

 

(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 Closing Date”
shall mean July 30, 2004.

 

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

 

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

 

“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.

 

“Outside L/C Maturity
Date” means the date six calendar months after the Commitment Termination
Date; provided that at any time prior to the extension of the Original
Commitment Termination Date in accordance with the terms and conditions of Section 1.7(5) of
the Credit Agreement, if the Borrower has notified the Administrative Agent in
writing that it will exercise the option to extend the Original Commitment
Termination Date, until the Original Commitment Termination Date, such date
shall be extended to twelve calendar months after the Original Commitment
Termination Date.

 

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

 

“Patriot Act”
shall have the meaning given such term in Section 6.26 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.

 

27

 

“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 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;

 

28

 

(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

 

(k)           Liens
on personal property.

 

“Permitted Mortgages”
shall mean those certain mortgages and/or deeds of trust entered into by
Subsidiaries of the Borrower Parties with respect to Real Property directly
owned by such Subsidiaries of the Borrower Parties to the extent such mortgages
and deeds of trust are otherwise permitted under the Credit Agreement
(including Section 8.1(1) of the Credit Agreement).

 

“Permitted WHLP Cash
Distribution” shall have the meaning given such term in Section 8.4(4) of
the Credit Agreement.

 

“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.

 

“Pledge Agreements”
shall mean, individually or collectively, each of the Pledge Agreements dated
as of even date herewith from Macerich Partnership, MAC and the other Pledgors,
each in substantially the form attached to the Credit Agreement as Exhibit H,
pursuant to which each of Macerich Partnership, MAC and the other Pledgors
shall pledge to the Collateral Agent, for the ratable benefit of the Benefited
Creditors, all of its direct and indirect ownership interest in the Guarantors
(or general partners thereof, as the case may be) as further specified therein.

 

“Pledgors” shall
mean Macerich Partnership, MAC and Macerich WRLP II Corp.

 

“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

 

29

 

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.

 

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

 

“Prohibited Person”
shall have the meaning given such term in Section 6.26 of the
Credit Agreement.

 

“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 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.

 

“Queens Development
Project” shall mean the Real Property
and improvements located at or adjacent to 90-15 Queen’s Blvd., Elmhurst, New
York, commonly referred to as “Queens Development Project” and owned by
Macerich Queens Limited Partnership and/or Macerich Queens Expansion, LLC.

 

30

 

“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.

 

“Required Benefited
Creditors” shall have the meaning given such term in the Pledge Agreements.

 

“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 

 

31

 

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

 

“Rochester
Distribution” shall mean the distribution by WHLP of all of the membership
interests in Rochester Malls LLC to limited partners of WHLP in accordance with
Sections 8.7 or 8.8 of the WHLP Partnership Agreement.

 

32

 

“Rochester Malls LLC”
shall mean Rochester Malls LLC, a Delaware limited liability company.

 

“Rochester Management
Agreement” shall mean the Management Contract between a Macerich Entity
which is an owner of a Rochester Property and the Rochester Manager in the form
of Exhibit D-2 attached hereto 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.

 

“Rochester Manager”
shall mean Rochester Management, Inc., a Delaware corporation.

 

“Rochester Properties”
shall mean the Eastview Mall, Eastview Commons, Greece Ridge Center,
Marketplace Mall and Pittsford Plaza properties.

 

“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 (excluding, however, the Indebtedness under the Credit Agreement, the
Existing Term Facility and the New Term and Interim Loan Facility); 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

 

33

 

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 or the Wilmorite
Principal Entity, (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 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 Obligations and the “Obligations” under and as defined in the Existing
Term Credit Facility and the New Term and Interim Loan Facility 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 obligations
and the “Obligations” under and as defined in the Existing Term Credit Facility
and the New Term and Interim Loan Facility), (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 

 

34

 

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 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; (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
or (e) with respect to the Wilmorite Guarantors and the Wilmorite
Principal Entity, 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.

 

“Subsidiary Guaranties”
shall mean each of the credit guaranties executed by each of the Westcor
Guarantors, the Wilmorite Guarantors and 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.

 

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

 

35

 

“Supplemental
Guaranties” shall mean a Guaranty executed by a Supplemental Guarantor
pursuant to Section 4.2 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.

 

“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 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 or
the Wilmorite Principal Entity or its 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 

 

36

 

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; (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 4.2 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.

 

37

 

“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.

 

“Walleye Investment
LLC” shall mean Walleye Retail Investments LLC, a Delaware limited
liability company.

 

“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 Corp., Macerich WRLP LLC, Macerich WRLP II Corp.,
Macerich WRLP II LP, Macerich TWC Corp. and Macerich TWC LLC.

 

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

 

“WHLP” shall mean
Wilmorite Holdings, L.P., a Delaware limited partnership (following the
Wilmorite Acquisition, Wilmorite Holdings, L.P. will change its name to MACWH,
L.P.).

 

 “WHLP Partnership Agreement” shall mean
the 2005 Amended and Restated Agreement of Limited Partnership of WHLP, between
WHLP and the Borrower.

 

“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 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.

 

“Wilmorite” shall
mean (i) the Wilmorite Principal Entity, (ii) the Wilmorite
Guarantors, (iii) the Subsidiaries of the Wilmorite Guarantors; and (iv) any
other Person 

 

38

 

the accounts of which would be consolidated with those of the Wilmorite
Guarantors in consolidated financial statements in accordance with GAAP.  When the context so requires, “Wilmorite”
shall mean any of the Persons described above.

 

“Wilmorite Acquisition”
shall mean that certain acquisition by MAC and the Borrower of Wilmorite
Properties, Inc., WHLP and their subsidiaries pursuant to the Wilmorite
Merger Agreement.

 

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

 

“Wilmorite Guarantors”
shall mean Macerich Walleye LLC, IMI
Walleye LLC and Walleye Investments LLC; provided that on the Wilmorite Release
Date, IMI Walleye LLC and Walleye Investments LLC shall cease to be the
Wilmorite Guarantors.

 

“Wilmorite JV
Investment” shall mean the acquisition by a Person that is not an Affiliate
of MAC of limited liability interests of IMI Walleye LLC.

 

“Wilmorite Merger Agreement” shall mean an
Agreement and Plan of Merger, dated as of December 22, 2004, among MAC,
the Borrower, MACW, Inc., Wilmorite Properties, Inc. and WHLP.

 

“Wilmorite Principal Entity” shall mean WHLP.

 

“Wilmorite Release
Date” shall have the meaning given such term in Section 4.4 of
the Credit Agreement.

 

39

 

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.

 

40Exhibit 10.7

 

EXECUTION
COPY

 

AMENDED AND RESTATED $250,000,000 TERM LOAN FACILITY
CREDIT

AGREEMENT

 

by and
among

 

THE MACERICH PARTNERSHIP, L.P.,

as the Borrower

 

THE
MACERICH COMPANY,

MACERICH WRLP CORP.,

MACERICH WRLP LLC,

MACERICH WRLP II CORP.,

MACERICH WRLP II LP,

MACERICH TWC II CORP.,

MACERICH TWC II LLC,

MACERICH WALLEYE LLC,

IMI WALLEYE LLC,

and

WALLEYE RETAIL INVESTMENTS LLC,

as Guarantors

 

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 and

as the
Collateral Agent for the Benefited Creditors

 

DEUTSCHE
BANK SECURITIES INC.

and

 

J.P. MORGAN SECURITIES INC.,

as the Joint Lead Arrangers and Joint Bookrunners

 

JPMORGAN
CHASE BANK

and

BANK ONE,
N.A.,

as the
Co-Syndication Agents

 

EUROHYPO
AG, New York Branch

and

WELLS
FARGO BANK, National Association

as the
Co-Documentation Agents

 

 

COMMERZBANK
AG, New York and Grand Cayman Branches

and

FLEET
NATIONAL BANK

as the
Managing Agents

 

U.S. BANK
NATIONAL ASSOCIATION

and

SOCIETE
GENERALE

as the
Co-Agents

Amended
and Restated as of April 25, 2005

 

2

 

TABLE OF
CONTENTS

Page

	
  RECITALS

  	
   

  	
   

  
	
  AGREEMENT

  	
   

  	
   

  
	
  1.

  	
  Credit Facility

  	
   

  
	
   

  	
  1.1

  	
  Term
  Loan Amount

  	
   

  
	
   

  	
  1.2

  	
  Funding of Term Loan

  	
   

  
	
   

  	
  1.3

  	
  Repayment of Principal

  	
   

  
	
   

  	
  1.4

  	
  Term Loan Extension

  	
   

  
	
   

  	
  1.5

  	
  Interest

  	
   

  
	
  2.

  	
  Interest
  Rate and Yield-Related Provisions

  	
   

  
	
   

  	
  2.1

  	
  Applicable Interest Rate

  	
   

  
	
   

  	
  2.2

  	
  Payment of Interest

  	
   

  
	
   

  	
  2.3

  	
  Procedures
  for Interest Rate Election

  	
   

  
	
   

  	
  2.4

  	
  Inability to Determine
  Rate

  	
   

  
	
   

  	
  2.5

  	
  Illegality

  	
   

  
	
   

  	
  2.6

  	
  Funding

  	
   

  
	
   

  	
  2.7

  	
  Requirements
  of Law; Increased Costs

  	
   

  
	
   

  	
  2.8

  	
  Obligation
  of Lenders to Mitigate; Replacement of Lenders

  	
   

  
	
   

  	
  2.9

  	
  Funding Indemnification

  	
   

  
	
   

  	
  2.10

  	
  Taxes

  	
   

  
	
   

  	
  2.11

  	
  [RESERVED]

  	
   

  
	
   

  	
  2.12

  	
  Post-Default Interest

  	
   

  
	
   

  	
  2.13

  	
  Computations

  	
   

  
	
  3.

  	
  Payments

  	
   

  
	
   

  	
  3.1

  	
  Evidence of Indebtedness

  	
   

  
	
   

  	
  3.2

  	
  Nature and Place of
  Payments

  	
   

  
	
   

  	
  3.3

  	
  Prepayments

  	
   

  
	
   

  	
  3.5

  	
  Allocation of
  Payments Received

  	
   

  
	
  4.

  	
  Credit Support

  	
   

  
	
   

  	
  4.1

  	
  REIT
  Guaranty

  	
   

  
	
   

  	
  4.2

  	
  Guaranties

  	
   

  
	
   

  	
  4.3

  	
  Pledge Agreements

  	
   

  
	
   

  	
  4.4

  	
  Wilmorite Release

  	
   

  
	
  5.

  	
  Conditions Precedent

  	
   

  
	
   

  	
  5.1

  	
  Conditions
  to Funding of Term Loan

  	
   

  
	
  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

  	
   

  
							

 

i

 

	
   

  	
  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

  	
   

  
	
  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 The Taxes

  	
   

  
	
   

  	
  7.11

  	
  Further Assurances

  	
   

  
	
   

  	
  7.12

  	
  Single Purpose Entities

  	
   

  
	
   

  	
  7.13

  	
  REIT Status

  	
   

  
	
   

  	
  7.14

  	
  Use of Proceeds

  	
   

  
	
   

  	
  7.15

  	
  Management
  of Projects

  	
   

  
	
  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

  	
   

  
					

 

ii

 

	
   

  	
  8.11

  	
  Distributions

  	
   

  
	
   

  	
  8.12

  	
  Financial
  Covenants of Borrower Parties

  	
   

  
	
  9.

  	
  Events of Default

  	
   

  
	
  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

  	
  Successor Collateral
  Agent

  	
   

  
	
   

  	
  10.11

  	
  Limitations on
  Agents Liability

  	
   

  
	
  11.

  	
  Miscellaneous
  Provisions

  	
   

  
	
   

  	
  11.1

  	
  No Assignment by
  Borrower Parties

  	
   

  
	
   

  	
  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

  	
   

  
	
   

  	
  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

  	
   

  
	
   

  	
  11.21.

  	
  Effectiveness of
  Agreement

  	
   

  
					

 

iii

 

SCHEDULE OF
ANNEXES, SCHEDULES AND EXHIBITS

 

	
  ANNEXES:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annex
  1

  	
   

  	
  Glossary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 5.1(2)

  	
   

  	
  Additional Closing
  Conditions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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

  	
   

  	
  Real Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 7.15

  	
   

  	
  Wholly-Owned Projects
  with Non-Standard Management Agreements

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 8.1

  	
   

  	
  Additional Permitted
  Liens

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 8.6

  	
   

  	
  Transactions with
  Affiliates

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 11.6

  	
   

  	
  Addresses for Notices,
  Etc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule G-1

  	
   

  	
  Percentage Share

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule G-2

  	
   

  	
  Description of
  Guaranties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Assignment and
  Acceptance Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of Closing
  Certificate

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Form of Compliance
  Certificate

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D-1

  	
   

  	
  Form of Master
  Management Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit D-2

  	
   

  	
  Form of Rochester
  Management Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit E

  	
   

  	
  Form of Note

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit F

  	
   

  	
  Form of Rate Request

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit G

  	
   

  	
  Form of Guaranty

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit H

  	
   

  	
  Form of Pledge
  Agreement

  	
   

  	
   

  

 

iv

 

CREDIT
AGREEMENT

 

THIS CREDIT AGREEMENT
(the “Agreement”) is made and dated as of April 25, 2005, by and among
THE MACERICH PARTNERSHIP, L.P., a limited partnership organized under the laws
of the state of Delaware (“Macerich Partnership”), AS BORROWER; THE
MACERICH COMPANY, a Maryland corporation (“MAC”); MACERICH WRLP II CORP., a Delaware
corporation (“Macerich WRLP II Corp.”); MACERICH WRLP II LP, a
Delaware limited partnership (“Macerich WRLP II LP”); MACERICH WRLP
CORP., a Delaware corporation (“Macerich WRLP Corp.”); MACERICH WRLP
LLC, a Delaware limited liability company (“Macerich WRLP LLC”);
MACERICH TWC II CORP., a Delaware corporation (“Macerich TWC Corp.”);
MACERICH TWC II LLC, a Delaware limited liability company (“Macerich TWC LLC”);
MACERICH WALLEYE LLC, a Delaware limited liability company (“Macerich
Walleye LLC”); IMI WALLEYE LLC, a Delaware limited liability company (“IMI
Walleye LLC”); and WALLEYE RETAIL INVESTMENTS LLC, a Delaware limited
liability company (“Walleye Investments LLC”), AS GUARANTORS; 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”) and as collateral agent for the
Benefited Creditors.

 

RECITALS

 

A.            Pursuant
to that certain Credit Agreement, dated as of May 13, 2003, as amended or
otherwise modified to date (the “Existing Credit Agreement”), by and
among the Borrower, MAC, the lenders from time to time party thereto (the “Existing
Lenders”), and DBTCA, as Administrative Agent, the Existing Lenders made
a term loan to the Borrower in the principal amount of $250,000,000.

 

B.            The Lenders party hereto have agreed to amend and restate
such credit facility, DBTCA has agreed to act as administrative agent on behalf
of the Lenders and as collateral agent on behalf of the Benefited Creditors on
the terms and subject to the conditions set forth herein and in the other Loan
Documents (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).

 

C.            The parties hereto intend that the Obligations (as
defined in the Existing Credit Agreement, hereinafter the “Existing
Obligations”) shall continue to exist under, and to be evidenced by, this
Agreement.

 

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 agree that the Existing Credit Agreement is hereby amended and
restated to read in its entirety as follows:

 

1

 

AGREEMENT

 

ARTICLE 1.           Credit
Facility.

 

1.1           Term
Loan Amount.  On
the terms and subject to the conditions set forth in the Existing Credit
Agreement, the Lenders have made their respective Percentage Shares of a term
loan (the “Term Loan”), in the amount of $250,000,000.  Principal amounts on the Term Loan that are
repaid or prepaid by the Borrower may not be re-borrowed.

 

1.2           Funding
of Term Loan.  Each
Lender has made its Percentage Share of the Term Loan available to the
Administrative Agent, in same-day funds, on the Original Closing Date at the
Contact Office, ABA 021-001-033 for the Administrative Agent’s Account
No. 99-401-268, Ref: Macerich Partnership, no later than 1:00 p.m. (New
York time) on the Original Closing Date. 
The failure of any Lender to advance its Percentage Share of the Term
Loan shall not relieve any other Lender of its obligation hereunder to advance
its Percentage Share thereof, but no Lender shall be responsible for the
failure of any other Lender to make its required advance.

 

1.3           Repayment of Principal.  Subject to (i) the Term Loan extension
provisions of Section 1.4 below, and (ii) any earlier acceleration of
the Term Loan following an Event of Default, the principal balance of the Term
Loan shall be payable in full on May 13, 2007 (the “Original Maturity Date”).

 

1.4           Term
Loan Extension.

 

(1)           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 prior to the Original Maturity Date, subject to
the terms and conditions set forth in this Agreement, to extend the Original
Maturity Date by twelve (12) months to May 13, 2008 (the “Extended Maturity
Date”).  The request by the Borrower
for the extension of the Original Maturity 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
1.4(2) below shall have been satisfied on the Original Maturity Date.  The Administrative Agent shall notify the
Lenders if it receives a request by the Borrower for the extension of the
Original Maturity Date.

 

(2)           The obligations of the Administrative
Agent and the Lenders to extend the Original Maturity Date as provided in Section
1.4(1) 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
Maturity 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 then outstanding principal balance of
the Term Loan (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 Maturity 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

 

2

 

Borrower shall have delivered to the Administrative Agent a Compliance
Certificate demonstrating that the Borrower Parties 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; (G) the Guarantors and the Pledgors shall have
acknowledged and ratified that their obligations under the Guaranties and the
Pledge Agreements remain in full force and effect, and continue to guaranty or
secure, as the case may be, the Obligations under the Loan Documents, as
extended; and (H) the outstanding amount of the Obligations owed hereunder
(including, without limitation, the outstanding principal balance of the Term
Loan, all accrued and unpaid interest thereon and all fees, costs and expenses
owed hereunder) shall not exceed $200,000,000 as of the Original Maturity Date.

 

(3)           The Administrative Agent shall notify
each of the Lenders in the event that the Original Maturity Date is extended as
provided in this Section 1.4.

 

1.5           Interest.  Interest shall be payable on the outstanding
principal balance of the Term Loan at the rates and on the dates set forth in Sections
2.1 and 2.2 below.

 

ARTICLE 2.           Interest Rate and Yield-Related
Provisions.

 

2.1           Applicable Interest Rate.  The outstanding principal balance of the Term
Loan and portions thereof shall bear interest from the date disbursed to but
not including the date of payment calculated at a per annum rate equal to, at
the option of and as selected by the Borrower from time to time (subject to the
provisions of Sections 2.3, 2.4, 2.5 and 2.12 below):  (i) the Applicable LIBO Rate for the selected
Interest Period, or (ii) the Applicable Base Rate during the applicable
interest calculation period.  Portions of
the Term Loan bearing interest at the Applicable LIBO Rate shall be referred to
herein sometimes as “LIBO Rate Loans” and portions of the Term Loan
bearing interest at the Applicable Base Rate shall be referred to herein as “Base
Rate Loans”.

 

2.2           Payment
of Interest.

 

(1)           The Borrower shall pay interest on
Base Rate Loans 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 such date.

 

(2)           The Borrower shall pay interest on
LIBO Rate Loans on the last day of the applicable Interest Period or, in the
case of LIBO Rate Loans 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 such date.

 

3

 

2.3           Procedures for Interest Rate
Election.

 

(1)           The Borrower may elect to have the
Term Loan or portions thereof funded on the Original Closing Date as LIBO Rate
Loans and may from time to time thereafter elect to convert portions of the
Term Loan outstanding as Base Rate Loans to LIBO Rate Loans by giving the
Administrative Agent prior irrevocable notice of such election no later than
1:00 p.m. (New York time) on the third Eurodollar Business Day preceding the
proposed funding or conversion date.

 

(2)           The Borrower may elect to have the
Term Loan or portions thereof funded on the Original Closing Date as Base Rate
Loans and may from time to time thereafter elect to convert portions of the
Term Loan outstanding as LIBO Rate Loans to Base Rate Loans by giving the
Administrative Agent irrevocable notice of such election no later than 1:00
p.m. (New York time) on the third Eurodollar Business Day preceding the
proposed funding or conversion date.

 

(3)           Subject to subsection (4) below, any
LIBO Rate Loan may be continued as such upon the expiration of the Interest
Period with respect thereto by the Borrower giving the Administrative Agent prior
irrevocable notice of such election on the third Eurodollar Business Day
preceding the proposed continuation date. 
If the Borrower shall fail to give notice of such continuation election,
the Borrower shall be deemed to have elected to convert any affected LIBO Rate
Loan to a Base Rate Loan on the last day of the applicable Interest Period.

 

(4)           No portion of the Term Loan shall be
funded or continued as a LIBO Rate Loan and no portion of the Term Loan shall
be converted into a LIBO Rate Loan if an Event of Default or Potential 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.

 

(5)           Each Base Rate Loan shall be in a
minimum principal amount of $1,000,000 or a whole multiple of $1,000,000 in
excess thereof and each LIBO Rate Loan shall be in a minimum principal amount
of $1,000,000 or a whole multiple of $1,000,000 in excess thereof; provided,
that any Base Rate Loan or LIBO Rate Loan may be in such other amount (i) as
may result from a partial prepayment thereof pursuant to Section 3.3 or
(ii) as may equal all of the then remaining outstanding balance of the Term
Loan.

 

(6)           Each request for the conversion or
continuation of a Base Rate Loan into a LIBO Rate Loan or of a LIBO Rate Loan
into a Base Rate Loan shall be evidenced by the timely delivery by the Borrower
to the Administrative Agent of a duly executed Rate Request (which delivery may
be by facsimile transmission).

 

(7)           In no event shall there at any time
be LIBO Rate Loans outstanding having more than six (6) different Interest
Periods.

 

(8)           The Borrower shall only request
Interest Periods of one, two, three or six months.

 

2.4           Inability to Determine Rate.  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

 

4

 

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 Term Loan may be
funded as a LIBO Rate Loan, (2) any Base Rate Loan that was to have been
converted to a LIBO Rate Loan shall, subject to the provisions hereof, be
continued as a Base Rate Loan, and (3) any outstanding LIBO Rate Loan shall
be converted, on the last day of the Interest Period applicable thereto, to a
Base Rate Loan.  Until such notice has
been withdrawn by the Administrative Agent, the Borrower shall not have the
right to convert any Base Rate Loan to a LIBO Rate Loan or to continue a LIBO
Rate Loan 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 Loan to a LIBO Rate Loan
and to continue any LIBO Rate Loan 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
hereof.  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 Percentage Share of the Term Loan 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 Percentage Share of the
relevant LIBO Rate Loan with a maturity corresponding to the applicable
Interest Period.

 

2.7           Requirements of Law; Increased
Costs.

 

(1)           Subject to the provisions of
subsection 2.10 (which shall be controlling with respect to the matters covered
thereby), 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 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:

 

5

 

(A)  Does or shall subject any Lender to any Taxes
of any kind whatsoever with respect to this Agreement or the Term Loan, or
change the basis of determining the Taxes imposed on payments to such 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);

 

(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 which are not otherwise
included in the determination of interest payable on the Obligations; or

 

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

 

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

 

(2)           If a Lender becomes 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 to the Borrower, accompanied by a
certification that such Lender has required substantially all obligors under
other commitments of this type made available by such Lender to similarly so
compensate such Lender, shall constitute prima facie evidence thereof; provided
that the Borrower shall not be required to compensate a Lender pursuant to this
Section 2.7 for any increased costs or reduction in respect of a period
occurring more than six months prior to the date that such Lender notifies the
Borrower of such Lender’s intention to claim compensation within six months
from the date such circumstances become applicable.

 

(3)           Other than as expressly provided in
this Section 2.7, failure or delay on the part of any Lender to demand
compensation pursuant to this Section 2.7 shall not constitute a waiver
of such 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 Term Loan
and all other Obligations.

 

6

 

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
Percentage Share of the Term Loan 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 Percentage
Share of the Term Loan 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 Percentage Share of the Term Loan 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
Percentage Share of the Term Loan and accrued interest and fees to such other
Lender or Eligible Assignee pursuant to the provisions of Section 11.8
below.

 

2.9           Funding Indemnification.  In addition to all other payment obligations
hereunder, in the event:  (1) any
LIBO Rate Loan is prepaid prior to the last day of the applicable Interest
Period, whether following a voluntary prepayment or otherwise, or (2) the
Borrower shall fail to borrow the Term Loan on the Original Closing Date (to
the extent the Borrower has requested that the Term Loan or portions thereof be
initially funded as a LIBO Rate Loan), or to continue or to make a conversion
to a LIBO Rate Loan after the Borrower has given notice thereof as required
hereunder, then the Borrower shall immediately pay to each Lender which would
have funded the requested LIBO Rate Loan or holding the LIBO Rate Loans prepaid
or not continued or converted, through the Administrative Agent, an additional
premium sum compensating such Lender for losses, costs and expenses incurred by
such Lender in connection with such prepayment or such failure to borrow, continue
or convert.  Without limiting the
foregoing, such compensation shall include an amount equal to the present value
(using as the discount rate an interest rate equal to the rate determined under
(2) below) of the excess, if any, of (1) the amount of interest which otherwise
would have accrued on the principal amount so paid, prepaid, converted or
continued (or not converted, continued or borrowed) (the “Incremental
Payment”) for the period from the date of such payment, prepayment,
conversion or continuation (or failure to convert, continue or borrow) to the
last day of the then current applicable Interest Period (or, in the case of a
failure to convert, continue or borrow, to the last day of the applicable
Interest Period which would have commenced on the date specified

 

7

 

therefore in the relevant notice) at the applicable LIBO Rate provided
for herein with respect to such Incremental Payment, over (2) the amount of
interest that would have accrued (as reasonably determined by such Lender),
based upon the interest rate which such Lender would have bid in the London
interbank market for Dollar deposits, on amounts comparable to the Incremental
Payment and maturities comparable to such period.  A determination of any Lender as to the
amounts payable pursuant to this Section 2.9 shall be conclusive absent
manifest error.

 

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 or 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 and each 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 or such Lender, as the case may be, and any penalties,
interest (except to the extent such penalties and/or interest arise as a result
of a 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 or by the Administrative Agent on its own behalf or on
behalf of a 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,

 

8

 

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 its 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.

 

(6)           Any
Foreign Lender that does not act or ceases to act for its own account with
respect to any portion of any sums paid or payable to such Lender under any of
the Loan Documents (for example, in the case of a typical participation by such
Lender) shall deliver to the Borrower (with copies to the Administrative Agent
and in such number of copies as shall be requested by the recipient), on or
prior to the date such Foreign Lender becomes a Lender, or on such later date
when such Foreign Lender ceases to act for its own account with respect to any
portion of any such sums paid or payable, and from time to time thereafter,
required for renewal under applicable law:

 

(A)          duly
executed and properly completed copies of the forms and statements required to
be provided by such Foreign Lender under Section 2.10(5), to establish
the portion of any such sums paid or payable with respect to which such Lender
acts for its own account and is providing Evidence of No Withholding, and

 

(B)           copies
of the Internal Revenue Service Form W-8IMY (or any successor forms)
properly completed and duly executed by such Foreign Lender, together with any
information, if any, such Foreign Lender chooses to transmit with such form, and
any other certificate or statement of exemption required under the Internal
Revenue Code or the regulations thereunder, to establish that such Foreign
Lender is not acting for its own account with respect to a portion of any such
sums payable to such Foreign Lender.

 

(7)           Any
Lender that is not a Foreign Lender and has not otherwise established to the
reasonable satisfaction of the Borrower and the Administrative Agent that it is
an exempt recipient (as defined in section 6049(b)(4) of the Internal Revenue
Code and the United States Treasury Regulations thereunder) shall deliver to
the Borrower (with copies to the Administrative Agent and in such number of
copies as shall be requested by the recipient) on or prior to the date on which
such Lender becomes a Lender under this Agreement (and from time to time
thereafter as prescribed by applicable law or upon the request of the Borrower
or the

 

9

 

Administrative
Agent), duly executed and properly completed copies of Internal Revenue Service
Form W-9.

 

(8)           If the Administrative Agent or any
Lender determines, in its sole discretion, that it has received a refund of any
Indemnified Taxes or Other Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.10, it shall pay to the Borrower an amount
equal to such refund (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.10 with
respect to the Indemnified Taxes or Other Taxes giving rise to such refund),
net of all out-of-pocket expenses of the Administrative Agent or such Lender
and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that the Borrower, upon the
request of the Administrative Agent or such Lender, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent or
such Lender in the event the Administrative Agent or such Lender is required to
repay such refund to such Governmental Authority.  This paragraph shall not be construed to
require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes that it deems
confidential) to the Borrower or any other Person.

 

2.11         [RESERVED]

 

2.12         Post-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 Administrative Agent,
bear interest at a per annum rate equal to two percent (2.0%) above the
Applicable Base Rate in effect during the applicable calculation period (whether
or not such Applicable Base Rate shall otherwise have been elected by the
Borrower in accordance with this Agreement).

 

2.13         Computations.  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).

 

ARTICLE 3.           Payments.

 

3.1           Evidence of Indebtedness.  The obligation of the Borrower to repay the
Term Loan shall be evidenced by notations on the books and records of the
Lenders.  Such books and records shall
constitute prima facie evidence thereof. 
Any failure to record the interest rate applicable thereto or any other
information regarding the Obligations, or any error in doing so, shall not
limit or otherwise affect the obligation of the Borrower with respect to any of
the Obligations.  Upon the request of a
Lender, the Borrower shall promptly execute and deliver to such Lender a Note
evidencing such Lender’s Percentage Share of the Term Loan.

 

3.2           Nature and Place of Payments.  All payments made on account of the
Obligations shall be made by the Borrower, without setoff or counterclaim, in
lawful money of the United States of America in immediately available same day
funds, free and clear of and without deduction for any Indemnified Taxes or
Other Taxes, fees or other charges of any nature whatsoever imposed by any
taxing authority and must be received by the Administrative Agent

 

10

 

by 1:00 p.m. (New York time) on the day of payment, it being
expressly agreed and understood that if a payment is received after
1:00 p.m. (New York time) by the Administrative Agent, such payment will
be considered to have been made by the Borrower on the next succeeding Business
Day and interest thereon shall be payable by the Borrower at the rate otherwise
applicable thereto during such extension. 
All payments on account of the Obligations shall be made to the Administrative
Agent through the Contact Office.  If any
payment required to be made by the Borrower hereunder becomes due and payable
on a day other than a Business Day, the due date thereof shall be extended to
the next succeeding Business Day and interest thereon shall be payable at the
then applicable rate during such extension.

 

3.3           Prepayments.

 

(1)           Upon
not less than one (1) Business Day’s prior written notice (in the case of Base
Rate Loans or LIBO Rate Loans with Interest Periods expiring on the date of
payment) or three (3) Eurodollar Business Days’ prior written notice (in the
case of LIBO Rate Loans with an Interest Period not expiring on the date of
payment) to the Administrative Agent (which shall promptly provide telephonic
notice of the receipt thereof to each of the Lenders), the Borrower may
voluntarily prepay principal amounts outstanding under the Term Loan in whole
or in part; provided, however, that (i) voluntary prepayments shall be in the
minimum amount of $1,000,000 and integral multiples of $100,000 in excess
thereof and (ii) voluntary prepayments of the Term Loan shall not be permitted
so long as any portion of the Interim Loan remains outstanding.

 

(2)           The Borrower shall pay in connection
with any prepayment hereunder all interest accrued but unpaid on that portion
of the Term Loan to which such prepayment is applied, and in the case of
prepayment of any portion of the Term Loan constituting LIBO Rate Loans, all
amounts payable pursuant to Section 2.9 above, concurrently with payment
of any principal amounts.

 

(3)           Prior to the occurrence of an Event
of Default and acceleration of the Obligations, prepayments shall be applied
first to Base Rate Loans to the extent possible and then to LIBO Rate Loans.

 

3.4          [RESERVED]

 

3.5           Allocation of Payments Received.

 

(1)           Prior to the occurrence of an Event
of Default and acceleration of the Obligations, and unless otherwise expressly
provided herein, all amounts received by the Administrative Agent on account of
the Obligations shall be disbursed by the Administrative Agent to the Lenders
pro rata in accordance with their respective Percentage Shares, by wire
transfer of like funds received on the date of receipt if received by the
Administrative Agent before 1:00 p.m. (New York time) or if received later, by
1:00 p.m. (New York time) on the next succeeding Business Day, without further
interest payable by the Administrative Agent.

 

(2)           Following the occurrence of an Event
of Default and acceleration of the Obligations, all amounts received by the
Administrative Agent on account of the Obligations, shall be promptly disbursed
by the Administrative Agent as follows:

 

11

 

(A)          First, to the payment of expenses
incurred by the Administrative Agent in the performance of its duties and the
enforcement of the rights of the Lenders under the Loan Documents, including,
without limitation, all costs and expenses of collection, reasonable attorneys’
fees (including all allocated costs of internal counsel), court costs and other
amounts payable as provided in Section 7.6 below;

 

(B)           Then, to the Lenders, pro rata in
accordance with their respective Percentage Shares, until interest accrued on
the Term Loan has been paid in full;

 

(C)           Then, to the Lenders, pro rata in
accordance with their respective Percentage Shares, until principal under the
Term Loan has been paid in full;

 

(D)          Then, to the Lenders, pro rata in
accordance with the amount, expressed as a percentage, which the amount of
remaining Obligations owed to such Lenders bears to all other Obligations held
by all Lenders, until all other Obligations have been paid in full.

 

(3)           The order of priority set forth in Section
3.5(2) and the related provisions of this Agreement are set forth solely to
determine the rights and priorities of the Administrative Agent and the other
Lenders as among themselves. The order of priority set forth in clauses (B)
through (D) of Section 3.5(2) may at any time and from time to time be
changed by the Required Lenders without necessity of notice to or consent of or
approval by the Borrower or any other Person. 
The order of priority set forth in clause (A) of Section 3.5(2)
may be changed only with the prior written consent of the Administrative Agent.

 

ARTICLE 4.           Credit
Support.

 

4.1           REIT
Guaranty.  As credit support for the Obligations, on or
before the Closing Date, MAC shall execute and deliver to the Administrative
Agent, for the benefit of the Lenders, the REIT Guaranty.

 

4.2           Guaranties. 
As credit support for the Obligations, on or before the Closing Date,
the Westcor Guarantors, the Wilmorite Guarantors and the Affiliate Guarantors
shall each execute and deliver to the Administrative Agent, for the benefit of
the Lenders, a Subsidiary 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 with respect to such Unencumbered Property within ninety (90)
days of its acquisition, such Person, if such Person is not already a Guarantor
(each a “Supplemental Guarantor”), shall: (a) execute and deliver
to the Administrative Agent, for the benefit of the Lenders, a Guaranty in the
form of Exhibit G 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

 

12

 

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

 

4.3           Pledge
Agreements.  As credit support for the Aggregate
Obligations, on or before the Closing Date, Macerich Partnership, MAC, and the
other Pledgors shall each execute and deliver to the Collateral Agent, a Pledge
Agreement, pursuant to which each of them shall pledge to the Collateral Agent,
for the ratable benefit of the Benefited Creditors, all of its direct and
indirect ownership interest in the Subsidiary Entities identified therein.  Upon the Disposition of the pledged equity of
any Affiliate Guarantor or Supplemental Guarantor by any Pledgor in accordance
with the provisions of this Agreement and the Pledge Agreement and the
corresponding payment of all sums due to the extent required pursuant to Section
3.3 hereof in connection with such Disposition, the Collateral Agent shall
release the pledged equity of the Person subject to such disposition.

 

4.4           Wilmorite
Release.  On not
less than five (5) Business Days written notice from the Borrower to the
Administrative Agent, the Borrower may request a release of IMI Walleye LLC and
Walleye Investments LLC as Subsidiary Guarantors, and such release shall occur
on the date requested by the Borrower (such date, the “Wilmorite Release
Date”) provided that the following conditions are satisfied:

 

(1)           The Wilmorite JV Investment shall
have occurred on or prior to the Wilmorite Release Date; and

 

(2)           On the Wilmorite Release Date, no
Potential Default or Event of Default shall have occurred and be continuing.

 

ARTICLE 5.           Conditions Precedent.

 

5.1           Conditions to Amendment and
Restatement.  As
conditions precedent to the effectiveness of the amendment and restatement of
this Agreement:

 

(1)           The Borrower Parties 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 3.1 above and not previously delivered, a Note
payable to such Lender;

 

(C)           To the extent not previously
delivered, the REIT Guaranty and the Subsidiary Guaranties;

 

13

 

(D)          The Pledge Agreements;

 

(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)           (i) An opinion of counsel for the
Borrower Parties as of the Closing Date, in form and substance reasonably
acceptable to the Administrative Agent and the Lenders; and (ii) an opinion of
counsel for MAC, in form and substance reasonably acceptable to the
Administrative Agent and the Lenders, regarding MAC’s status as a REIT;

 

(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; provided that if there
has been no amendment or modification to the aforementioned documents since
they were delivered to the Administrative Agent on July 30, 2004, then each
Borrower Party may deliver a certificate from the Secretary or an Assistant
Secretary of such Borrower Party (or if such Person is a limited partnership,
an authorized representative of its general partner) as of the date of this
Agreement certifying that the documents as previously delivered are true and correct
and that there have been no amendments or changes to such documents;

 

(I)            Copies of the Organizational
Documents of each of the Borrower Parties (unless delivered pursuant to clause
(H) above) 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; provided that if there has been
no amendment or modification to the aforementioned documents since they were
delivered to the Administrative Agent on July 30, 2004, then each Borrower
Party may deliver a certificate from the Secretary or an Assistant Secretary of
such Borrower Party (or if such Person is a limited partnership, an authorized
representative of its general partner) as of the date of this Agreement
certifying that the documents as previously delivered are true and correct and
that there have been no amendments or modifications to such documents;

 

(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;

 

14

 

(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 Collateral Agent (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
funding of the Term Loan be, paid in full;

 

(M)         Evidence satisfactory to the
Administrative Agent and the Collateral Agent that all reasonable costs and expenses
of the Administrative Agent, 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
funding of the Term Loan be, paid in full; and

 

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

 

(5)           All acts and conditions (including,
without limitation, the obtaining of any third party consents 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 and the consummation of the Wilmorite Acquisition shall have
been done and performed.

 

(6)           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.

 

(7)           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.

 

ARTICLE 6.           Representations and Warranties.  As an inducement to the Administrative Agent
and each Lender to enter into this Agreement and for the Lenders to advance
their

 

15

 

respective Percentage Shares of the Term Loan, each of the Borrower and
MAC, collectively and severally, represent and warrant as of the Closing Date
(or such later date as otherwise expressly provided in this Agreement), to the
Administrative Agent and each Lender that (provided that any representations as
of the Closing Date as to Wilmorite are to the best knowledge of the Borrower
and MAC):

 

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, 2003 and 2004 and (ii) unaudited
financial statements of MAC for each fiscal quarter ending after December 31, 2004
and more than 45 days prior to the Closing Date (the materials described in
clauses (i) and (ii) are referred to as the “Initial Financial Statements”)
; and (iii) a pro forma balance sheet and income statement (“Pro Forma
Statements”) dated December 31, 2004 reflecting the pro forma combined
performance of the Consolidated Entities and Wilmorite.  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.  The Pro Forma Statements have been prepared
in good faith based upon reasonable assumptions.

 

6.2           No
Material Adverse Effect. 
Since the Statement Date no event has occurred which has resulted in, or
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)           The Borrower (A) is a limited
partnership duly organized, validly existing and in good standing under the
laws of the State of Delaware, (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 likely to have a
Material Adverse Effect, (C) has all requisite partnership 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 the Borrower is
subject to taxation based on its income.

 

16

 

(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 Westcor Guarantor, Wilmorite
Guarantor and 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)(I) 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 knowledge of each of the Borrower Parties party to this Agreement,
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 partnership, company or corporate 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 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 date hereof
have been performed or complied with, and no Potential Default or Event of
Default exists thereunder.

 

17

 

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,
except as contemplated by the Pledge Agreements, 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
Parties party to this Agreement, 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
Parties party to this Agreement 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 any Borrower Party, 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 (after giving
effect to the Wilmorite Acquisition) 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) the percentage
thereof owned by the Borrower Parties and their Subsidiaries.  None of such issued and outstanding Capital
Stock or Securities owned by any Borrower Entity 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 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 the Borrower Parties: (A) is a
corporation, limited liability company, or partnership, as indicated on Schedule
6.9, duly

 

18

 

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 partnership,
company or corporate 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 any other Borrower
Party 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 Term Loan 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 party to this Agreement, nothing has occurred which would cause the
loss of such qualification.

 

(2)           There are no pending or, to the best
knowledge of the Borrower Parties party to this Agreement, 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 party to this Agreement, 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 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

 

19

 

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 Wilmorite Acquisition, 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 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 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

 

20

 

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 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 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 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 Parties party to this Agreement, 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 Parties
party to this Agreement, 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.

 

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.

 

21

 

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 December 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 there has been no
material change in the type or amount of such Indebtedness since December 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 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 Parties 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.  After giving effect to the all loans made on
the Closing Date, and the disbursement of the proceeds thereof pursuant to the
Borrower’s instructions, the Borrower Parties are each Solvent.

 

6.26         Foreign
Assets Control Regulations, etc. 
None of the Macerich Entities or their Affiliates: (i) is or will be in
violation of any Laws relating to terrorism or money laundering (“Anti-Terrorism
Laws”), including Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (66 Fed. 
Reg.  49079 (2001)) (the “Executive
Order”), the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law
107-56 (“Patriot Act”), or any other applicable requirements contained
in the rules and regulations of the Office of Foreign Assets Control,
Department of the Treasury (“OFAC”); (ii) is or will become a “blocked”
person listed in or subject to the Annex to the Executive Order; (iii) has been
or will be designated as a Specially Designated National on any publicly
available lists maintained by OFAC or any other publicly

 

22

 

available list of terrorists or terrorist organizations maintained
pursuant to the Patriot Act (any person regulated pursuant to clauses (ii) and
(iii), a “Prohibited Person”); or (iv) conducts or will conduct any
business or engages or will engage in any transactions or dealings with any
Prohibited Person, including the making or receiving of any contribution of
funds, goods or services to or for the benefit of any Prohibited Person; or any
transactions involving any property or interests in property blocked pursuant
to the Executive Order.

 

ARTICLE 7.           Affirmative Covenants.  As an inducement to the Administrative Agent
and each Lender to enter into this Agreement and for the Lenders to advance
their respective Percentage Shares of the Term Loan, each of the Borrower and
MAC, collectively and severally, hereby covenants and agrees with the
Administrative Agent and each Lender that, as long as any Obligations remain
unpaid:

 

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

 

23

 

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 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, MAC 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.

 

24

 

7.2           Certificates; Reports; Other
Information.  The
Borrower Parties shall furnish or cause to be furnished to the Administrative
Agent 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.

 

(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 and the Wilmorite Acquisition 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 and MAC shall, and shall cause
each of the Macerich Core Entities to, and the other Borrower Parties shall 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, MAC, the Westcor Principal
Entities or prior to the Wilmorite Release Date, the Wilmorite Principal
Entity) (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 and MAC shall, and
shall cause each of the Macerich Core Entities to, and the other Borrower
Parties shall 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 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 or any Lender, and to discuss the business, operations,
properties and financial and other condition of the 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).

 

25

 

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
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 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 Borrower’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 Term Loan (but such expenses shall
not include any fees paid to the syndicate members), and the preservation and
protection of the rights of the Lenders and the Administrative Agent under the
Loan Documents, and (2) of the Administrative Agent 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

 

26

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 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 regional Retail
Properties (“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 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 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

 

27

 

or any part thereof to be in violation of clauses (1) or, if not
promptly remediated, (2) above.  If the
Administrative Agent 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 the Macerich Core Entities unless
the failure to so comply would not reasonably be expected to result in a
Material Adverse Effect.

 

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 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 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 and Lenders the
rights granted or now or hereafter intended to be granted to the Lenders under
any Loan Document or under any other document executed in connection therewith.

 

7.12         Single Purpose Entities.  The Westcor Guarantors shall maintain
themselves as Single Purpose Entities. 
The Wilmorite Guarantors shall maintain themselves as Single Purpose
Entities.

 

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 Borrower 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 Borrower is subject to taxation based on its income.

 

7.14         Use
of Proceeds.  The
proceeds of the Term Loan were used to reduce outstanding indebtedness under
the Existing Revolving Credit Facility.

 

28

 

7.15         Management of Projects.  Except as set forth on Schedule 7.15,
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 or Wilmorite, pursuant to agreements in place on the date hereof;
provided that the Rochester Properties may be managed by the Rochester Manager
pursuant to the Rochester Management Agreement.

 

ARTICLE 8.           Negative Covenants.  As an inducement to the Administrative Agent
and each Lender to enter into this Agreement and for the Lenders to advance
their respective Percentage Shares of the Term Loan, each of the Borrower and
MAC, jointly and severally, hereby covenants and agrees with the Administrative
Agent and each Lender that, as long as any Obligations remain unpaid:

 

8.1           Liens.

 

(1)           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:

 

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

 

(B)   Permitted Encumbrances;

 

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

 

(D)  Liens listed on Schedule 8.1.

 

(2)           No Liens on the Capital Stock held by
MAC or any other Pledgor in any of the Borrower Parties shall be created or
suffered to exist (other than Liens pursuant to the Pledge Agreements).  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 (other than Liens pursuant to the Pledge
Agreements), as a condition to creating or permitting such Lien, the 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%

 

29

 

of Gross Asset Value at any time; provided, however that
the Property at Queens Development Project 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, the
Westcor Principal Entities or prior to the Wilmorite Release Date, the
Wilmorite Principal Entity 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 or the Wilmorite
Principal Entity, a Macerich Core Entity is the surviving entity or the
acquirer 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; provided that the Rochester
Distribution shall not be prohibited by this Section 8.3(1).

 

(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 or the
Wilmorite Guarantors; provided that the forgoing shall not prohibit Macerich
Partnership from issuing (i) partnership units as consideration for the acquisition
of a Project otherwise permitted under this Agreement or (ii) profit
participation units in connection with an employee ownership or similar plan;

 

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

 

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

 

(4)           Prior to the Wilmorite Release Date,
any Disposition by any Wilmorite Guarantor of any of the Capital Stock of the
Wilmorite Principal Entity; provided that (i) WHLP may consummate the Rochester
Distribution in accordance with the provisions of the WHLP Partnership
Agreement, and (ii) so long as no Potential Default or Event of Default shall
have occurred and be continuing, WHLP may make cash distributions in accordance
with Article 8 of the WHLP Partnership Agreement, provided that the Borrower
Parties would be in compliance with the covenants in Section 8.12,
calculated as of the last day of the most recent fiscal quarter for which
financial statements have been delivered pursuant to Section 7.1(1) or 7.1(2)
and on a pro forma basis as if such cash distribution had occurred, and any
Indebtedness

 

30

 

incurred in connection therewith had been incurred, on the last day of
such fiscal quarter (any distribution under this clause (ii), a “Permitted
WHLP Cash Distribution”); and

 

(5)           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; provided
that the Rochester Distribution shall not violate this Section 8.4(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 the Wilmorite Acquisition and
also 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
  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

  

 

31

 

	
   

  	
   

  	
   

  
	
  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 the Macerich Partnership in accordance with its
  Organizational Documents

  	
   

  	
  Unlimited

  
	
   

  	
   

  	
   

  
	
  First lien priority
  Mortgage Loans acquired by the Macerich Partnership, MAC or any Wholly-Owned
  Subsidiary

  	
   

  	
  The Aggregate
  Investment Value of all such Mortgage Loans shall not 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

  

 

32

 

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
or, prior to the Wilmorite Release Date, the Wilmorite Principal Entity 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); (b) any Modifications which would not
have an adverse effect on the Borrower Parties or their Subsidiaries or (c)
Modifications which would have no adverse, substantive effect on the rights or
interests of the Lenders in conjunction with the Loans or under the Loan
Documents.

 

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 until the
indefeasible payment in full of the Obligations.  In the event of death, incapacitation,
retirement, or dismissal of any of these individuals, the 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.

 

(1)           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 $75,000,000;

 

33

 

(iii) Distributions during any period while an Event of Default under Section
9.1 has occurred and is continuing as a result of the 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

 

(2)           Prior
to the Wilmorite Release Date, WHLP shall not make Distributions in any Fiscal
Year other than distributions of Available Cash (as defined in the WHLP
Partnership Agreement) under and in accordance with the provisions of the WHLP
Partnership Agreement except for (i) the Rochester Distribution and (ii) any
Permitted WHLP Cash Distribution.

 

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 sum, without duplication, of (i)
cumulative net cash proceeds received from issuance of Capital Stock of MAC or
Borrower after June 30, 2004, (ii) the value of assets acquired (net of
indebtedness and excluding any assets acquired in a Carry Over Basis
Transaction (such assets, the “Carry Over Basis Assets”)) through the
issuance of Capital Stock of MAC or the Borrower after June 30, 2004 and (iii)
the increase in Net Worth that occurs in connection with the Carry Over Basis
Assets acquired in all Carry Over Basis Transactions that are consummated
through the issuance of Capital Stock of MAC or Borrower after June 30,
2004.  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

 

At any time on or prior to October 31, 2006                                                     1.70
to 1

 

At any time after October
31, 2006                                                                    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
through July 31, 2006, 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%.

 

34

 

(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 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 Term Loan 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 Article 8 above 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 a
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 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

 

35

 

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 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

 

36

 

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 Revolving Credit Facility or the New Term and Interim Loan
Facility;

 

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 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 Term Loan; (ii) the outstanding principal
balance of the Term Loan 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 (iii) the Administrative Agent and 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 Lender hereby irrevocably designates and
appoints the Administrative Agent and the Collateral Agent as the agents of
such Lender under the Loan Documents and each such Lender hereby irrevocably
authorizes the Administrative Agent and the Collateral Agent, as the agents for
such 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, neither the Administrative Agent nor the
Collateral Agent shall have any duties or responsibilities, except those
expressly set forth herein or therein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into the Loan Documents or otherwise
exist against any of the Agents.  Each
Lender acknowledges and agrees that it shall be bound by all terms and
conditions of the Pledge Agreements and the Guaranties.  No modifications of any provision of the Loan
Documents relating to the Collateral Agent shall be effective without the
written consent of the Collateral Agent.

 

10.2         Delegation
of Duties.  The
Administrative Agent and the Collateral Agent may execute any of  their respective 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.  Neither the Administrative Agent nor the
Collateral Agent shall be responsible for

 

37

 

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 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, report, statement or other document referred to or
provided for in, or received by the Administrative Agent or the Collateral
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 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:  (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 (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 ratably in accordance with their respective
Percentage Shares 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); (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 (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; (3) the Collateral 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 the Required
Benefited Creditors (or, if a provision of any Loan Document expressly provides
that a greater percentage of Benefited Creditors are required to direct the
action of the Collateral Agent, such greater number of Benefited Creditors) or
it shall first be indemnified to its satisfaction by the Benefited Creditors
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 Collateral Agent’s gross negligence or willful misconduct),
and (4) the Collateral Agent shall in all cases be fully protected in
acting, or in

 

38

 

refraining from acting, under the Loan Documents in accordance with a
request of the Required Benefited Creditors (or, if a provision of any Loan
Document expressly provides that a greater percentage of Benefited Creditors
are required to direct the action of the Collateral Agent, such greater number
of Benefited Creditors), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Benefited Creditors.

 

10.5         Notice
of Default. 
Neither the Administrative Agent nor the Collateral Agent shall be
deemed to have knowledge or notice of the occurrence of any Potential Default
or Event of Default hereunder unless the Administrative Agent or the Collateral
Agent, as the case may be, has received notice from a 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 Collateral Agent and 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 Lenders
(except to the extent that this Agreement, the Pledge Agreements 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 other group of Lenders or Benefited Creditors, in which case
such action will be taken or not taken as directed by the Required Lenders or such
other group of Lenders or Benefited Creditors). 
The Collateral Agent shall take such action with respect to such
Potential Default or Event of Default as shall be reasonably directed by the
Required Benefited Creditors; provided that, unless and until the Collateral
Agent shall have received such directions, the Collateral 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 Benefited Creditors (except to the extent
that this Agreement, the Pledge Agreements or the Guaranties expressly require
that such action be taken or not taken by the Collateral Agent with the consent
or upon the authorization of the Required Benefited Creditors, in which case
such action will be taken or not taken as directed by the Required Benefited
Creditors).

 

10.6         Non-Reliance on Agents and Other
Lenders.  Each
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 Parties, shall be
deemed to constitute any representation or warranty by the Administrative Agent
or the other Agents to any Lender.  Each
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, 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 also represents that it will, independently and without
reliance upon the Administrative Agent, the other Agents or any other

 

39

 

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 Parties.  Except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent hereunder, the Administrative Agent and the other
Agents shall not have any duty or responsibility to provide any 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 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 the respective
amounts of their Percentage Shares, 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 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 and the termination of this Agreement.

 

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 Subsidiary Entities and Affiliates as though the Administrative
Agent and the other Agents were not, respectively, the Administrative Agent,
the Collateral Agent, a Co-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, the
Collateral Agent, a Co-Syndication Agent or an Agent, respectively, and the terms
“Lender” and “Lenders” shall include the Administrative Agent, the Collateral
Agent, each Co-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 (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 a successor agent
or, if the Lenders are unable to agree on the appointment of a successor

 

40

 

agent, the Administrative Agent shall appoint a successor agent for the
Lenders 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       Successor Collateral Agent.  The Collateral Agent may resign as Collateral
Agent under the Loan Documents upon thirty (30) days’ notice to the
Lenders.  If the Collateral Agent shall
resign, then the Required Benefited Creditors (as determined by excluding the
Benefited Creditor resigning as the Collateral 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 a
successor agent or, if such Required Benefited Creditors are unable to agree on
the appointment of a successor agent, the Collateral Agent shall appoint a
successor agent for the Benefited Creditors whereupon such successor agent
shall succeed to the rights, powers and duties of the Collateral Agent, and the
term “Collateral Agent” shall mean such successor agent effective upon its
appointment, and the former Collateral Agent’s rights, powers and duties as
Collateral Agent shall be terminated, without any other or further act or deed
on the part of such former Collateral Agent or any of the parties to this
Agreement or any of the Loan Documents or successors thereto.  After any retiring Collateral Agent’s
resignation hereunder as Collateral 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 Collateral Agent under the Loan Documents.

 

10.11       Limitations on Agents’ Liability.  None of the Co-Syndication Agents, the Joint
Lead Arrangers, the Co-Documentation Agents, the Managing Agents, the Co-Agents
or the Joint 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 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. 
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 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.

 

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 Guarantors and the
Borrower, except with respect to the Modifications and waivers described in the
next sentence requiring unanimous approval of the Lenders, the

 

41

 

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, the Term Loan or fees payable
hereunder, (2) except as expressly contemplated by Section 11.8
below, modify the Percentage Share of any 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 Guaranty, release the Borrower from its obligation to
repay the Term Loan, (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.  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 obligation of the Lenders to make Loans
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 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 and the Lenders relating hereto, at law, in equity or
otherwise.  Any delay or failure by
Administrative Agent and the Lenders to exercise any right, power or remedy
shall not constitute a waiver thereof by the Administrative Agent or the
Lenders, and no single or partial exercise by the Administrative Agent 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 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.

 

42

 

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, 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 Percentage Share of the Term Loan at the time owing to it) and
the other Obligations held by such Lender hereunder, in a minimum amount of
$5,000,000 (or (A) if such Assignee is another Lender or an Affiliate of a
Lender, $1,000,000, or such lesser amount as agreed by the Administrative
Agent; and (B) if such Lender’s Percentage Share of the Term Loan is less than
$5,000,000, one hundred percent (100%) thereof); provided, however, that MAC,
the Borrower 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 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
Percentage Shares resulting therefrom.

 

(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 Percentage Share of
the Term Loan.

 

43

 

(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 the Term Loan and the other
interests of that Lender (the “Originating Lender”) hereunder and under
the other Loan Documents; 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 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 Percentage Share of the Term Loan
held by 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
Percentage Share of the Term Loan 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 Percentage Share of the Term Loan 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 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 Percentage Share thereof, then such 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 aforesaid with
each of them; provided, that if such excess payment or part thereof is
thereafter recovered from such purchasing 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 is 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.  Each Lender hereby
agrees to exercise any such rights first against the Obligations and only then
to any other Indebtedness of the Borrower to such Lender.

 

44

 

11.11       Confidentiality.  Each Lender agrees 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 any prospective Lender, or
(2) was or becomes available from a source other than the Borrower Parties
not known to the Lenders 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 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, 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 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
AGREEMENT, EACH OF THE BORROWER PARTIES, THE ADMINISTRATIVE AGENT AND THE
LENDERS CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. 
EACH OF THE BORROWER PARTIES, THE ADMINISTRATIVE AGENT 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 PARTIES, THE
ADMINISTRATIVE AGENT AND THE LENDERS 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 PARTIES, THE ADMINISTRATIVE AGENT 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

 

45

 

OTHERWISE.  EACH OF THE BORROWER
PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS 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 Parties shall indemnify and hold
the Administrative Agent, the other Agents 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 repayment of the Term Loan and
the termination, resignation or replacement of the Administrative Agent 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 Term
Loan 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 Parties 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.

 

11.15       Telephonic Instruction.  Any agreement of the Administrative Agent 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 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 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 or the Lenders in reliance upon
such telephonic notice.  The obligation
of the Borrower to repay the Loans shall not be affected in any way or to any
extent by any failure by the Administrative Agent and the Lenders to receive
written confirmation of any telephonic notice or the receipt by the
Administrative Agent and the Lenders of a confirmation which is at variance
with the terms understood by the Administrative Agent and the Lenders to be
contained in the telephonic notice.

 

11.16       Marshalling; Payments Set Aside.  Neither the Administrative Agent, the
Collateral Agent 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

 

46

 

Obligations.  To the extent that
any of the Borrower Parties makes a payment or payments to the Administrative
Agent or the Lenders, or the Administrative Agent, the Collateral Agent 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 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 provided by law, if an Event of Default exists, each Lender is
authorized at any time and from time to time, without prior notice to the
Borrower Parties, any such notice being waived by the Borrower Parties to the
fullest extent permitted by law, to set off and apply in favor of the Benefited
Creditors 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 to or for the credit or the account of the Borrower Parties against
any and all Aggregate Obligations owing to the Benefited Creditors, now or
hereafter existing, irrespective of whether or not the Administrative Agent,
the Collateral Agent or such Lender shall have made demand under this Agreement
or any Loan Document and although such Aggregate Obligations may be contingent
or unmatured.  Each Lender agrees
promptly to (i) notify the Borrower Parties, the Administrative Agent and the
Collateral Agent after any such set-off and application made by such 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 Collateral Agent for the ratable benefit of the Benefited
Creditors.

 

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 Agents, and the other Benefited Parties, 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.

 

11.21       Effectiveness of Agreement.  This Agreement shall become effective upon
the execution of a counterpart hereof by the Borrower, MAC, the other Borrower
Parties party to this Agreement, each Lender, the Collateral Agent and the
Administrative Agent and receipt by

 

47

 

the Borrower and the Administrative Agent of written or telephonic
notification of such execution and authorization of delivery thereof.

 

11.22       References to “Credit Agreement”.  All references in the Notes and other Loan
Documents to the “Credit Agreement” shall refer to this Amended and Restated
$250,000,000 Term Loan Facility Credit Agreement, as the same may be Modified.

[Signature Pages Following]

 

48

 

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

  
								

 

Signature
Page to

Macerich
$250,000,000 AMENDED AND RESTATED

TERM
LOAN FACILITY

CREDIT
AGREEMENT

 

S-1

 

	
  LENDERS AND AGENTS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS, as

  
	
   

  	
  Administrative Agent and a Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Rolison

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Linda Wang

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
							

 

S-2

 

	
   

  	
  JPMORGAN CHASE BANK, N. A.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

S-3

 

	
   

  	
  JPMORGAN CHASE BANK, N. A. (as successor by

  
	
   

  	
  merger to Bank One, N.A.)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

S-4

 

	
   

  	
  EUROHYPO AG, New York Branch

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

S-5

 

	
   

  	
  WELLS FARGO BANK, National Association

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-6

 

	
   

  	
  COMMERZBANK AG, NEW YORK and

  	
   

  
	
   

  	
  GRAND CAYMAN BRANCHES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

S-7

 

	
   

  	
  FLEET NATIONAL BANK

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-8

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION, a national

  
	
   

  	
  banking association

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-9

 

	
   

  	
  SOCIETE GENERALE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

S-10

 

 

EXECUTION COPY

 

ANNEX I: 
GLOSSARY

 

THIS GLOSSARY is attached to and
made a part of that certain Amended and Restated Credit Agreement (the “Credit
Agreement”) made and dated as of April 25, 2005, by and among THE
MACERICH PARTNERSHIP, L.P., a limited partnership organized under the laws of
the state of Delaware (“Macerich Partnership”), AS BORROWER; THE
MACERICH COMPANY, a Maryland corporation (“MAC”); MACERICH WRLP II CORP., a Delaware
corporation (“Macerich WRLP II Corp.”); MACERICH WRLP II, a Delaware limited
partnership (“Macerich WRLP II LP”); MACERICH WRLP CORP., a Delaware
corporation (“Macerich WRLP Corp.”); MACERICH WRLP LLC, a Delaware
limited liability company (“Macerich WRLP LLC”); MACERICH TWC II CORP.,
a Delaware corporation (“Macerich TWC Corp.”); MACERICH TWC II LLC, a
Delaware limited liability company (“Macerich TWC LLC”); MACERICH
WALLEYE LLC, a Delaware limited liability company (“Macerich Walleye LLC”);
IMI WALLEYE LLC, a Delaware limited liability company (“IMI Walleye LLC”);
and WALLEYE RETAIL INVESTMENTS LLC, a Delaware limited liability company (“Walleye
Investments LLC”), AS
GUARANTORS; 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”) and as collateral agent for the
Benefited Creditors.  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
Guarantors” shall mean, jointly and severally, Macerich Great Falls Limited
Partnership, a California limited partnership, Macerich Oklahoma Limited
Partnership, a California limited partnership, Macerich Westside Adjacent
Limited Partnership, a California limited partnership, Macerich Sassafras
Limited Partnership, a California limited partnership, Northgate Mall
Associates, a California general

 

1

 

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 Collateral Agent, the Co-Syndication
Agents, the Joint Lead Arrangers, the Co-Documentation Agents, the Managing
Agents, the Co-Agents and any other Persons acting in the capacity of an agent
for the Lenders or the Benefited Creditors 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.

 

“Aggregate
Obligations” shall have the meaning given such term in the Pledge Agreements.

 

“Anti-Terrorism
Laws” shall have the meaning given such term in Section 6.26 of
the Credit Agreement.

 

“Applicable
Base Rate” shall mean the floating rate per annum equal to the daily
average Base Rate in effect during the applicable calculation period plus one
half of one percent (0.5%).

 

“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 one and one-half percent (1.50%).

 

“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 A.

 

“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 Loan” shall have the meaning given such term in Section 2.1
of the Credit Agreement.

 

2

 

“Benefited
Creditors” shall have the meaning given such term in the Pledge Agreement.

 

“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.

 

“Borrowed
Indebtedness”  of any Person means,
without duplication, (A) all obligations for borrowed money of such
Person, (B) all liabilities and obligations, contingent or otherwise, evidenced
by a letter of credit or a reimbursement obligation of such Person with respect
to any letter of credit, (C) all obligations payable in cash (excluding
obligations payable in cash or Capital Stock, at the option of a Borrower
Party) for the deferred purchase price of real property acquired by such Person
(excluding obligations arising in the ordinary course of business but including
all obligations of such Person created or arising under any conditional sale or
other title retention agreement with respect to any real property acquired by
such Person), (D) all obligations for borrowed money secured by any Lien
upon or in any real property owned by such Person whether or not such Person
has assumed or become liable for the payment of such obligations for borrowed
money and (E) all obligations of the type described in any of clauses (A)
through (D) above which are guaranteed, directly or indirectly, or endorsed
(otherwise than for collection or deposit in the ordinary course of business)
or discounted with recourse by such Person. 
Borrowed Indebtedness shall not include (i) Indebtedness set forth on Schedule 6.21
to the Credit Agreement, (ii) Indebtedness incurred for the purpose of
acquiring one or more items of personal property, or (iii) guaranties or
indemnities executed by the Borrower Parties in respect of Indebtedness secured
by a Permitted Mortgage to the extent either: (A) such guaranty or indemnity
has been incurred in respect of customary exclusions from the non-recourse
provisions of the applicable Permitted Mortgage (including any customary
exclusion in respect of environmental liabilities); or (B) such Indebtedness
has been incurred for the purpose of financing the construction or development
of Real Property owned by any Subsidiary of the Borrower Parties.

 

“Borrower”
shall mean Macerich Partnership.

 

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

 

 “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.

 

3

 

“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.

 

“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 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.

 

“Carry
Over Basis Transaction”  shall mean
any transaction in which the acquired assets have a carry over basis and are
not marked to market at the time of such acquisition.

 

“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

 

4

 

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.

 

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

 

“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 by any lending office of such Lender or by such 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; provided,
however, that (i) no Change in Law shall be deemed to have occurred with
respect to any Assignee or Participant until after the date on which such
Assignee or Participant acquired its interest as an Assignee or Participant
under this Agreement and (ii) clause (i) of this proviso shall not apply
to any Change in Law with respect to (x) any Assignee to the extent such
Change in Law was applicable to the assignor Lender on the effective date of
the Assignment and Assumption Agreement pursuant to which such Assignee became
a Lender or (y) any Participant to the extent such Change in Law was
applicable to the Originating Lender on the effective date of the agreement
pursuant to which such Participant became a Participant.

 

“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 B.

 

“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.

 

“Co-Agents”
shall mean U.S. Bank National Association and Societe Generale, as the co-agent
for the credit facility evidenced by the Credit Agreement, together with their
permitted successors and assigns.

 

5

 

“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 EuroHypo AG, New York Branch and Wells Fargo Bank,
National Association, as the documentation agents for the credit facility
evidenced by the Credit Agreement, together with their permitted successors and
assigns.

 

“Collateral
Agent” shall mean DBTCA in its capacity as collateral agent for the benefit
of the Benefited Creditors, together with its 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.

 

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

 

“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.

 

“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 and the Lenders 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

 

6

 

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.

 

“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.

 

“Co-Syndication
Agents” shall mean JPMorgan Chase Bank and Bank One, N.A., as the
syndication agents for the credit facility evidenced by the Credit Agreement,
together with their permitted successors and assigns.

 

“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.

 

“De
Minimis 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

 

7

 

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 7.9
of the Credit Agreement.

 

“Disposition”
shall mean the sale, conveyance, pledge, hypothecation, 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, 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 or any
Distributions to another Macerich Entity; 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.  “Disposition”
shall not include the sale of any ancillary building pad site within a Project
provided that the consideration received for such transaction does not exceed
$1,000,000 for any Project and $5,000,000 in the aggregate for all Projects and
shall not include any ground lease.

 

“Disposition
Promissory Note” shall mean any promissory note received as consideration
for the Disposition of a Property subject to Section 3.3 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
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, Macerich Partnership or, prior to the Wilmorite
Release Date, WHLP: (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, exchange, 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, (A) to the extent such purchase, redemption,
exchange, or other retirement occurs in exchange for the issuance of Capital
Stock of MAC or Macerich Partnership or (B) with respect to WHLP, to the extent
such

 

8

 

purchase, redemption, or
other retirement occurs in exchange for the issuance of Capital Stock of WHLP,
MAC or Macerich Partnership in accordance with the provisions of the WHLP
Partnership Agreement.

 

“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, (2) an
Affiliate of a Person of which a Lender is an Affiliate, or (3) a Person of
which a Lender is an Affiliate;

 

(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 at least $500,000,000; and

 

(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 portion of the Term Loan, 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.

 

“Environmental
Properties” shall have the meaning given such term in Section 6.15
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.

 

9

 

“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 Section 2.10
of the Credit Agreement.

 

“Excluded
Taxes” shall mean, with respect to the Administrative Agent, 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) any withholding tax (in the case of a Foreign
Lender) or backup withholding tax (in the case of any Lender), that is imposed
on amounts payable to such Lender at the time such Lender becomes a party to
the Credit Agreement (or designates a new lending office) or is attributable to
such Lender’s failure

 

10

 

to comply with Section 2.10(5)
or Section 2.10(6) of the Credit Agreement, except to the extent
any such withholding taxes were imposed on the Lender’s predecessor in interest
(or former lending office); provided, however, Excluded Taxes shall not include
any withholding tax resulting from any inability to comply with Section 2.10(5)
or Section 2.10(6) of the Credit Agreement solely by reason of
there having occurred a Change in Law.

 

 “Executive Order” shall have the
meaning given such term in Section 6.26 of the Credit Agreement.

 

“Existing
Credit Agreement” shall have the meaning set forth in Recital A of
the Credit Agreement.

 

“Existing
Lender” shall have the meaning set forth in Recital A of the Credit
Agreement.

 

 “Existing Revolving Credit Agreement”
shall mean that certain Credit Agreement evidencing the Existing Revolving
Credit Facility, amended and restated as of April 25, 2005, by and among
the Borrower, as borrower, MAC and the other guarantors signatory thereto, the
lenders signatory thereto and DBTCA, as administrative agent and collateral
agent.

 

“Existing
Revolving Credit Facility” shall mean that certain credit facility
evidenced by the Existing Revolving Credit Agreement, which provides for the
funding of certain revolving loans and the issuance of letters of credit to,
and on behalf of, Macerich Partnership in the aggregate committed amount of, as
of the date hereof, $1.0 billion.

 

“Extended
Maturity Date” shall have the meaning given such term in Section 1.4(1)
of the Credit Agreement.

 

“Extension
Fee” shall have the meaning given such term in Section 1.4(2)
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.

 

“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

 

11

 

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 date
hereof, 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 subject to the mandatory payment provisions of Section 3.3
of the Credit Agreement.

 

“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.

 

“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, including any Bullet Payment under the Interim Loan or Term
Loan), (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 (excluding
distributions on convertible preferred units of WHLP in accordance with the
WHLP Partnership Agreement).  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

 

12

 

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 date hereof.

 

“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):

 

(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) 7.00%
(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

 

13

 

(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;

 

(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) any Retail Property (whether
acquired before or 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

 

14

 

Administrative
Agent.  “Guaranty” shall include all
Subsidiary 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, 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.

 

“IMI
Walleye LLC” shall mean IMI Walleye LLC, a Delaware limited liability
company.

 

“Incremental
Payment” shall have the meaning given such term in Section 2.9
of the Credit Agreement.

 

“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

 

15

 

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

 

“Initial
Guarantors” shall mean MAC, the Westcor Guarantors, the Wilmorite
Guarantors and the Affiliate Guarantors who enter into Guaranties on or as of
the date hereof.

 

“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).

 

16

 

“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, with respect to a LIBO Rate Loan, a period of one, two,
three or six months commencing on a Eurodollar Business Day selected by the
Borrower pursuant to the Credit Agreement. 
Such Interest Period shall end on (but exclude) the day which
corresponds numerically to such date one, two, three or six months thereafter,
provided, however, that if there is no such numerically corresponding day in
such next, second, third or sixth succeeding month, such Interest Period shall
end on the last day of such next, second, third or sixth succeeding month.  If an Interest Period would otherwise end on
a day which is not a Eurodollar Business Day, such Interest Period shall end on
the next succeeding Eurodollar Business Day, provided, however, that if said
next succeeding Eurodollar Business Day falls in a new calendar month, such
Interest Period shall end on the immediately preceding Eurodollar Business Day.

 

“Interim
Loan” shall mean the “Interim Loan” under and as defined in the New Term
and Interim Loan Credit Agreement.

 

“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

 

17

 

(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.

 

“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 bookrunners 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.

 

“Lakewood
Center Property” shall mean The Lakewood Center, a Retail Property located
in Lakewood, California.

 

“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.

 

“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

 

18

 

Telerate Page 3750 (or
any equivalent successor page) at approximately 11:00 a.m. (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 Loan” shall have the meaning given such term in Section 2.1
of the Credit Agreement.

 

“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.

 

“Loan
Documents” shall mean the Credit Agreement and 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 Subsidiary Guaranties, any Guaranty executed by any
other Guarantor, the Pledge Agreements, 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.

 

“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.  “Macerich
Entity” shall mean any one of the Macerich Entities.

 

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

 

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

 

19

 

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

 

“Macerich
Walleye LLC” shall mean Macerich Walleye 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.

 

“Management
Companies” shall mean (a) 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, Wilmorite Property Management, LLC, a Delaware limited
liability company, and includes their respective successors, and (b)
with respect to the Rochester Properties, the Rochester Manager and it
successors and assigns pursuant to the Rochester Management Agreement.

 

“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.

 

“Managing
Agents” shall mean Fleet National Bank and Commerzbank AG, as the managing
agents for the credit facility evidenced by the Credit Agreement, together with
their permitted successors and assigns.

 

“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
D-1 attached hereto (or with respect to Subsidiaries of Westcor or
Subsidiaries of Wilmorite, 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.

 

20

 

“Material
Adverse Effect” shall mean with respect to (a) MAC and its Subsidiaries on
a consolidated basis taken as a whole or (b) the 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.

 

“Maturity
Date” shall initially mean the Original Maturity Date; provided that the “Maturity
Date” shall mean the Extended Maturity Date if the Borrower extends the
Original Maturity Date in accordance with the terms and conditions of Section 1.4.  The Maturity Date shall be subject to
acceleration upon an Event of Default as otherwise provided in the Credit
Agreement.

 

 “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
Borrower’s partnership agreement) of the Borrower 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 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

 

21

 

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 Borrower 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
Term and Interim Loan Credit Agreement” shall mean that certain Credit
Agreement evidencing the New Term and Interim Loan Facility, dated as of April 25,
2005, by and among the Borrower, as borrower, MAC and the other guarantors
signatory thereto, the lenders signatory thereto and Deutsche Bank AG New York
Branch, as administrative agent.

 

“New
Term and Interim Loan Facility” shall mean that certain credit facility
evidenced by the New Term and Interim Loan Credit Agreement, which provides for
the funding of a term loan and an interim loan to the Borrower in the aggregate
commitment amount, as of the date hereof, of $950 million.

 

“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 E issued by the Borrower at the request of a Lender
pursuant to Section 3.1 of the Credit Agreement.

 

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

 

“Obligations”
shall mean any and all debts, obligations and liabilities of the Borrower or
the other Borrower Parties to the Administrative Agent, 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

 

22

 

extinguished and later
increased, created or incurred), arising out of or related to the Loan
Documents.

 

“OFAC”
shall have the meaning given such term in Section 6.26 of the
Credit Agreement.

 

“Officer’s
Certificate” shall mean as to any Person, a certificate executed on behalf
of such Person by a Responsible Officer.

 

“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
Closing Date” shall mean May 13, 2003.

 

“Original
Maturity Date” shall have the meaning given such term in Section 1.3(2)
of the Credit Agreement.

 

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

 

“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.

 

“Patriot
Act” shall have the meaning given such term in Section 6.26 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

 

23

 

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.

 

“Percentage
Share” shall mean for any Lender at any date the percentage set forth next
to such Lender’s name on Schedule G-1 to the Credit Agreement, as
the same may be Modified from time to time, including, without limitation, to
reflect the addition or withdrawal of a Lender or the assignment of all or a
portion of an existing Lender’s Percentage Share as permitted pursuant to Section 11.8
of the Credit Agreement.

 

“Permitted
Encumbrances” shall mean any Liens with respect to the assets of the
Borrower Parties and the 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 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;

 

24

 

(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

 

(k)                                  Liens
on personal property.

 

“Permitted
Mortgages” shall mean those certain mortgages and/or deeds of trust entered
into by Subsidiaries of the Borrower Parties with respect to Real Property
directly owned by such Subsidiaries of the Borrower Parties to the extent such
mortgages and deeds of trust are otherwise permitted under the Credit Agreement
(including Section 8.1(1) of the Credit Agreement).

 

“Permitted
WHLP Cash Distribution” shall have the meaning given such term in Section 8.4(4)
of the Credit Agreement.

 

“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.

 

“Pledge
Agreements” shall mean, individually or collectively, each of the Pledge
Agreements dated as of even date herewith from Macerich Partnership, MAC and
the other Pledgors, each in substantially the form attached to the Credit
Agreement as Exhibit H, pursuant to which each of Macerich
Partnership, MAC and the other Pledgors shall pledge to the Collateral Agent,
for the ratable benefit of the Benefited Creditors, all of its direct and indirect
ownership interest in the Guarantors (or general partners thereof, as the case
may be) as further specified therein.

 

“Pledgors”
shall mean Macerich Partnership, MAC and Macerich WRLP II Corp.

 

25

 

“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.

 

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

 

“Prohibited
Person” shall have the meaning given such term in Section 6.26
of the Credit Agreement.

 

“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 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.

 

26

 

“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.

 

“Queens
Development Project” shall mean the Real
Property and improvements located at or adjacent to 90-15 Queen’s Blvd.,
Elmhurst, New York, commonly referred to as “Queens Development Project” and
owned by Macerich Queens Limited Partnership and/or Macerich Queens Expansion,
LLC.

 

“Rate
Request” shall mean a request for the conversion or continuation of a Base
Rate Loan or LIBO Rate Loan in the form of that attached to the Credit
Agreement as Exhibit F.

 

“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.

 

“Required
Benefited Creditors” shall have the meaning given such term in the Pledge
Agreements.

 

27

 

“Required
Lenders” shall mean at any date, those Lenders holding not less than 66
2/3% of the outstanding principal portion of the Term Loan.

 

“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

  
						

 

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

 

“Rochester
Distribution” shall mean the distribution by WHLP of all of the membership
interests in Rochester Malls LLC to limited partners of WHLP in accordance with
Sections 8.7 or 8.8 of the WHLP Partnership Agreement.

 

“Rochester
Malls LLC” shall mean Rochester Malls LLC, a Delaware limited liability
company.

 

28

 

“Rochester
Management Agreement” shall mean the Management Contract between a Macerich
Entity which is an owner of a Rochester Property and the Rochester Manager in
the form of Exhibit D-2 attached hereto 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.

 

“Rochester
Manager” shall mean Rochester Management, Inc., a Delaware corporation.

 

“Rochester
Properties” shall mean the Eastview Mall, Eastview Commons, Greece Ridge
Center, Marketplace Mall and Pittsford Plaza properties.

 

“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 (excluding, however, the
Indebtedness under the Credit Agreement, the Existing Revolving Credit Facility
and the New Term and Interim Loan Facility); 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.

 

“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
or the Wilmorite Principal Entity, (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

 

29

 

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 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 Obligations and the “Obligations” under and as defined in the Existing
Revolving Credit Facility and the New Term and Interim Loan Facility 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 obligations and the
“Obligations” under and as defined in the Existing Revolving Credit Facility
and the New Term and Interim Loan Facility), (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.

 

30

 

“Statement
Date”  shall mean December 31,
2004.

 

“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 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; (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 or (e) with respect to the Wilmorite Guarantors and the
Wilmorite Principal Entity, 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.

 

“Subsidiary
Guaranties” shall mean each of the credit guaranties executed by each of
the Westcor Guarantors, the Wilmorite Guarantors and 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.

 

“Supplemental
Guarantor” shall have the meaning set forth in Section 4.2 of
the Credit Agreement.

 

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

 

“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

 

31

 

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.

 

“Term
Loan” shall have the meaning given such term in Section 1.1 of
the Credit Agreement.

 

“Term
Maturity Date” shall have the meaning given such term in Section 1.3
of the Credit Agreement.  The Term
Maturity Date shall be subject to acceleration upon an Event of Default as
otherwise provided in the Credit Agreement.

 

“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 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 or
the Wilmorite Principal Entity or its 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.

 

32

 

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.

 

“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; (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 4.2 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.

 

“Walleye
Investment LLC” shall mean Walleye Retail Investments LLC, a Delaware
limited liability company.

 

“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 Corp., Macerich WRLP LLC, Macerich
WRLP II Corp., Macerich WRLP II LP, Macerich TWC Corp. and Macerich TWC LLC.

 

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

 

“WHLP”
shall mean Wilmorite Holdings, L.P., a Delaware limited partnership (following
the Wilmorite Acquisition, Wilmorite Holdings, L.P. will change its name to
MACWH, L.P.).

 

33

 

 “WHLP Partnership Agreement” shall mean
the 2005 Amended and Restated Agreement of Limited Partnership of WHLP, between
WHLP and the Borrower.

 

“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 Borrower, 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 Borrower (or a
Person whose Capital Stock is owned 100% by the Borrower) 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.

 

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

 

“Wilmorite
Acquisition” shall mean that certain acquisition by MAC and the Borrower of
Wilmorite Properties, Inc., WHLP and their subsidiaries pursuant to the
Wilmorite Merger Agreement.

 

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

 

“Wilmorite
Guarantors” shall mean Macerich Walleye
LLC, IMI Walleye LLC and Walleye Investments LLC; provided that on the
Wilmorite Release Date, IMI Walleye LLC and Walleye Investments LLC shall cease
to be the Wilmorite Guarantors.

 

“Wilmorite
JV Investment” shall mean the acquisition by a Person that is not an
Affiliate of MAC of limited liability interests of IMI Walleye LLC.

 

“Wilmorite
Merger Agreement” shall mean an Agreement and Plan of Merger, dated as of December 22,
2004, among MAC, the Borrower, MACW, Inc., Wilmorite Properties, Inc. and WHLP.

 

“Wilmorite
Principal Entity” shall mean WHLP.

 

“Wilmorite
Release Date” shall have the meaning given such term in Section 4.4
of the Credit Agreement.

 

34

 

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.

 

35

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