Document:

Exhibit
10.35

 

 

 

 

January 18, 2002

 

 

Paul Mastrapa

600 Willow Road, Unit 17

Menlo Park, CA  94025

 

 

Dear Paul,

 

This letter will confirm our offer and your acceptance of full time
employment as Senior Vice President and Chief Financial Officer of Option Care,
Inc. This offer is made contingent upon a positive work reference process.  Your start date is anticipated to no later
than February 4, 2002.  Your
compensation package includes the following components:

•                  Annual Base Salary of $175,0000;
$7,291.67 paid semi-monthly.

•                  $25,000 sign-on bonus.  Half to be paid at the time OCI bonus are
paid-out — during the first quarter of 2002 the second half within six months
of start date.

•                  Auto Allowance of $500:  $250 paid semi-monthly.

•                  40% bonus opportunity based on the
completion of specific goals.

•                  Grant of 100,000 stock options to be
granted by the Board of Directors at their next scheduled meeting.

•                  Twelve month severance agreement if
separation is not for cause.

•                  Relocation Assistance Package of $40,000.
Components of this Relocation Assistance Package include:

•                  Costs related to actual packing and
transport of home belongings

•                  Storage Expenses

•                  Travel Expenses for you and your family
to Chicago

•                  Closing Costs

•                  Realtor commissions on the sale of your home
in California

•                  Up to 60-days Temporary Housing for you
and your family

 

Additional benefits of your employment with Option Care, Inc. include:

•                  Participation in our group insurance
package, which consists of medical, dental, vision, short-term and long-term
disability plans. You will be eligible to enroll the first day of the month
following the completion of thirty (30) days of continuous employment.

•                  We also provide basic life and AD&D
at no cost to you. You will be eligible to participate in these benefits the
first day of the month following the completion of thirty (30) days of
continuous employment.

•                  Participation in our 401(k) Profit
Sharing Plan as well as the Employee Stock Purchase Plan after meeting
eligibility requirements.

•                  Time off with pay accrues at the rate of
13.34 hours per month — 4 weeks per year, which will be available to you
effective on your first day of active employment. T.O.W.P. is provided to an
employee for leisure time, personal time off, time lost from work due to illness
or injury, and family emergencies.

 

 

•                  In addition, Option Care observes six
traditional holidays and may observe up to three floating holidays. After six
months of continuous employment, you will earn a Personal Holiday. After one
year of continuous employment, you will earn a second Personal Holiday.

 

Please sign this letter, retain a copy for your personal records and
forward a copy to me for inclusion in your personnel file.  We look forward to your contributions to the
Option Care team.

 

	
  Sincerely,

  	
  Signed:

  
	
   

  	
   

  
	
   

  	
  /s/ Paul Mastrapa

  
	
  Rajat Rai

  	
  Paul Mastrapa

  
	
  Chief Executive Officer

  	
   

  
	
  Option Care, Inc.

  	
  Date:Exhibit
10.36

 

 

December 31, 2001

 

Mr. Joe Bonaccorsi

623 Jackson

River Forest, IL  60305

 

Dear Joe,

 

This letter will confirm our offer and your acceptance of full time
employment as Senior Vice President and General Counsel of Option Care, Inc.
This offer is made contingent upon a positive work reference process.  Your start date is anticipated to no later
than January 1, 2002.  Your compensation
package includes the following components:

•                  Annual Base Salary of $175,0000;  paid semi-monthly.

•                  $10,000 sign-on bonus to be paid at the
time OCI bonus are paid-out — during the first quarter of 2002.

•                  Auto Allowance of $500:  paid monthly.

•                  35% bonus opportunity based on the
completion of specific goals and a 10% over-achievement bonus opportunity as
approved by the Board of Directors.

•                  Grant of 50,000 stock options to be
granted by the Board of Directors at their next scheduled meeting.

•                  Nine month severance agreement if
separation is not for cause, pursuant to separate agreement to be drafted and
agreed upon.

 

Additional benefits of your employment with Option Care, Inc. include:

•                  Participation in our group insurance
package, which consists of medical, dental, vision, short-term and long-term
disability plans. You will be eligible to enroll the first day of the month
following the completion of thirty (30) days of continuous employment.

•                  We also provide basic life and AD&D
at no cost to you. You will be eligible to participate in these benefits the
first day of the month following the completion of thirty (30) days of
continuous employment.

•                  Participation in our 401(k) Profit
Sharing Plan as well as the Employee Stock Purchase Plan after meeting
eligibility requirements.

•                  Time off with pay accrues at the rate of
13.34 hours per month — 4 weeks per year, which will be available to you
effective on your first day of active employment. T.O.W.P. is provided to an
employee for leisure time, personal time off, time lost from work due to
illness or injury, and family emergencies.

•                  In addition, Option Care observes six
traditional holidays and may observe up to three floating holidays. After six
months of continuous employment, you will earn a Personal Holiday. After one
year of continuous employment, you will earn a second Personal Holiday.

 

We look forward to your contributions to the Option Care team.

 

	
  Sincerely,

  	
  Signed:

  
	
   

  	
  /s/ Joe Bonaccorsi

  
	
  Rajat Rai

  	
  Joe Bonaccorsi

  
	
  Chief Executive Officer

  	
   

  
	
  Option Care, Inc.

  	
  Date:EXHIBIT
4.1

 

THIRD AMENDED AND
RESTATED

 

UNSECURED REVOLVING
CREDIT AGREEMENT

 

DATED AS OF JULY 30, 2003

 

AMONG

 

THE ROUSE COMPANY, AS
BORROWER

 

AND

 

JPMORGAN CHASE BANK

 

AND

 

BANK ONE, NA

 

AND

 

DEUTSCHE BANK TRUST
COMPANY AMERICAS

 

AND

 

CERTAIN OTHER BANKS,

 

AS LENDERS

 

AND

 

JPMORGAN SECURITIES, INC.

 

AND

 

DEUTSCHE BANK SECURITIES
INC.,

 

AS JOINT LEAD ARRANGERS
AND JOINT BOOK RUNNERS

 

AND

 

JPMORGAN CHASE BANK

 

AND

 

DEUTSCHE BANK TRUST
COMPANY AMERICAS,

 

AS CO-SYNDICATION AGENTS

 

AND

 

BANK ONE, NA,

 

AS ADMINISTRATIVE AGENT

 

AND

 

BANK OF AMERICA, N.A.

 

AND

 

EUROHYPO AG, NEW YORK
BRANCH,

 

AS CO-DOCUMENTATION
AGENTS

 

 

THIRD AMENDED AND
RESTATED

UNSECURED REVOLVING
CREDIT AGREEMENT

 

THIS THIRD AMENDED AND RESTATED UNSECURED REVOLVING
CREDIT AGREEMENT is entered into as of July 30, 2003, by and among the
following:

 

THE ROUSE COMPANY, a Maryland corporation having its
principal place of business at 10275 Little Patuxent Parkway, Columbia,
Maryland 21044-3456 (“Rouse”);

 

JPMORGAN CHASE BANK, (“JPMorgan”), a banking
corporation having an office at 270 Park Avenue, New York, New York 10017;

 

BANK ONE, NA (“Bank One”), a national bank
organized under the laws of the United States of America having an office at 1
Bank One Plaza, Chicago, Illinois 60670;

 

DEUTSCHE BANK TRUST COMPANY AMERICAS (“Deutsche
Bank”), a New York banking corporation, having an office at Deutsche Bank
Plaza, 60 Wall Street, New York, New York 10005;

 

CERTAIN LENDERS identified on the signature pages
hereto;

 

JPMorgan Securities, Inc. and Deutsche Bank Securities
Inc., as Joint Lead Arrangers and Joint Book Runners;

 

JPMorgan Chase Bank and Deutsche Bank, as
Co-Syndication Agents (“Co-Syndication Agents”);

 

Bank of America, N.A. and Eurohypo AG, New York
Branch, as Co-Documentation Agents (in such capacity, “Co-Documentation
Agents”); and

 

Bank One, as Administrative Agent (in such capacity, “Administrative
Agent”) for the Lenders (as defined below).

 

RECITALS

 

A.                                   This
Third Amended and Restated Unsecured Revolving Credit Agreement amends and
restates in its entirety that certain Second Amended and Restated Unsecured
Revolving Credit Agreement dated as of December 21, 2000 by and among Borrower,
Bank One, NA, JPMorgan Chase Bank (as successor-in-interest to The Chase
Manhattan Bank), Deutsche Bank (as successor-in-interest to Bankers Trust
Company) and certain other lenders, which made loans available to Rouse in the
maximum aggregate principal amount of $450,000,000 (the “Existing Facility”).

 

B.                                     Borrower
is primarily engaged in the business of developing, acquiring, owning and
managing commercial real estate projects, including without limitation regional
shopping centers, mixed-use projects, office buildings, business/industrial
projects and large-scale, master-planned land developments.

 

 

C.                                     The
Borrower has requested that the Lenders make loans available to the Borrower in
the maximum aggregate principal amount of $900,000,000 outstanding from time to
time pursuant to the terms of this Agreement (the “Facility”), and that
the Co-Documentation Agents act as documentation agent for the Lenders and that
the Administrative Agent act as administrative agent for the Lenders and that
the Co-Syndication Agents act as syndication agent for the Lenders.  The Administrative Agent, the Co-Syndication
Agents and the Lenders have agreed to do so.

 

D.                                    The
Facility shall be used by Borrower for general corporate purposes and to
refinance the outstanding balances under the Existing Facility.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements herein contained, the parties hereto agree as follows:

 

ARTICLE I.

DEFINITIONS AND
ACCOUNTING TERMS

 

1.1                                 Definitions. 
As used in this Agreement, the following terms have the meanings set
forth below:

 

“Absolute Interest Period” means, with respect
to a Competitive Bid Loan made at an Absolute Rate, a period of not less than
14 days and not more than 180 days as requested by Borrower in a Competitive
Bid Quote Request and confirmed by a Lender in a Competitive Bid Quote but in
no event extending beyond the Maturity Date. 
If an Absolute Interest Period would end on a day which is not a
Business Day, such Absolute Interest Period shall end on the next succeeding
Business Day.

 

“Absolute Rate” means a fixed rate of interest
(rounded to the nearest 1/100 of 1%) for an Absolute Interest Period with
respect to a Competitive Bid Loan offered by a Lender and accepted by the
Borrower at such rate under Section 2.17.

 

“Adjusted Combined EBITDA” means, as of any
date, for the most recent four (4) fiscal quarters for which financial results
then have been reported, then-current Combined EBITDA adjusted by
(i) eliminating that portion of Combined EBITDA attributable to (A) any
Properties or entities not owned by a member of the Consolidated Group or an
Investment Affiliate as of the date of determination, (B) any Properties or
entities acquired by a member of the Consolidated Group or an Investment
Affiliate during such four (4) quarter period, (C) any Properties owned by a
member of the Consolidated Group or an Investment Affiliate which were first
placed in service during such four (4) quarter period, and (D) any expansion or
renovation of existing Properties or properties owned by a member of the
Consolidated Group or an Investment Affiliate which renovations or expansions
were completed during such four (4) quarter period, (ii) adding to Combined
EBITDA for such four (4) quarter period on account of Properties or entities
acquired by a member of the Consolidated Group or an Investment Affiliate
during such four (4) quarter period, the Combined EBITDA that would have been
generated by such Properties or entities for such four (4) quarter period if
such Properties or entities had been owned by the Consolidated Group or an
Investment Affiliate for such four (4) quarter period

 

2

 

determined by the Borrower on a pro forma basis,
substantiated to the satisfaction of the Administrative Agent,
(iii) adding to Combined EBITDA for such four (4) quarter period on
account of (A) new Properties owned by a member of the Consolidated Group or an
Investment Affiliate which were first placed in service during such full four
(4) quarter period and (B) any renovation or expansion of existing Properties
or properties owned by entities owned by a member of the Consolidated Group or
an Investment Affiliate completed during such full four (4) quarter period, the
estimated Combined EBITDA that would have been generated by such new Properties
and by such expansions and renovations if they had been operational and in
service for such full four (4) quarter period determined by the Borrower on a
pro forma basis, as substantiated to the satisfaction of the Administrative
Agent.

 

“Adjusted LIBOR Rate” means, with respect to a
LIBOR Advance for the relevant LIBOR Interest Period, the sum of (i) the
quotient of (a) the Base LIBOR Rate applicable to such LIBOR Interest
Period, divided by (b) one (1) minus the Reserve Requirement (expressed as
a decimal) applicable to such LIBOR Interest Period, if and only if a Reserve
Requirement is then being imposed under Regulation D, plus,
(ii) in the case of ratable LIBOR Advances, the LIBOR Applicable Margin in
effect from time to time during such LIBOR Interest Period, or in the case of
LIBOR Advances made as Competitive Bid Loans, the Competitive LIBOR Margin
established in the Competitive Bid Quote applicable to such Competitive Bid
Loan.

 

“Administrative Agent” means Bank One, acting
as agent for the Lenders in connection with the transactions contemplated by
this Agreement, and its successors in such capacity.

 

“Advance” means an advance of funds to the
Borrower hereunder by one or more of the Lenders pursuant to Section 2.1
hereof (including Competitive Bid Loans and Swing Line Loans), including the
initial Advance and all subsequent Advances, whether such Advances are, from
time to time, Alternate Base Rate Advances, LIBOR Advances, Competitive Bid
Loans or Swing Line Loans.

 

“Affiliate” means any Person directly or
indirectly controlling, controlled by or under direct or indirect common
control with any other Person.  A Person
shall be deemed to control another Person if the controlling Person owns ten
percent (10%) or more of any class of voting securities of the controlled
Person or possesses, directly or indirectly, the power to direct or cause the
direction of the management or policies of the controlled Person, whether
through ownership of stock, by contract or otherwise.

 

“Aggregate Commitment” means, as of any date,
the sum of all of the Lenders’ then-current Commitments, which initially shall
be $900,000,000, subject to Borrower’s right to reduce the Aggregate Commitment
pursuant to Section 2.18.

 

“Agreement” means this Third Amended and
Restated Unsecured Revolving Credit Agreement and all amendments, modifications
and supplements hereto.

 

“Agreement Execution Date” shall mean July 30,
2003, the date on which all of the parties hereto have executed this Agreement
and all conditions precedent to the initial Advance hereunder have been
satisfied.

 

3

 

“Allocated Facility Amount” means, at any time,
the sum of all then outstanding Advances (including all Competitive Bid Loans
and Swing Line Loans) and the then outstanding Facility Letter of Credit
Obligations.

 

“Alternate Base Rate” means, for any day, a
rate of interest per annum equal to the higher of (i) the Corporate Base
Rate for such day and (ii) the sum of the Federal Funds Effective Rate for
such day plus 1/2% per annum.

 

“Alternate Base Rate Advance” means an Advance
that bears interest at the Alternate Base Rate.

 

“Assets Under Development” means land and
improvements owned by a member of the Consolidated Group or an Investment
Affiliate being developed for retail, office, mixed-use or other rental-income
producing purposes which meet all four (4) of the following criteria:  (i) such project (or phase) has not yet
been substantially completed, (ii) no rental income has yet been received,
(iii) no certificate of occupancy has yet been issued for such project (or
phase) and (iv) such project (or phase) is classified as construction in
progress in accordance with GAAP.

 

“Bank One” means Bank One, NA.

 

“Base LIBOR Rate” means, with respect to a
LIBOR Advance for the relevant LIBOR Interest Period, the applicable London
interbank offered rate for deposits in U.S. dollars appearing on Dow Jones
Markets (Telerate) Page 3750 as of 11:00 a.m. (London time) two (2)
Business Days prior to the first day of such LIBOR Interest Period, and having
a maturity approximately equal to such LIBOR Interest Period.  If no London interbank offered rate of such
maturity then appears on Dow Jones Markets (Telerate) Page 3750,
then the Base LIBOR Rate shall be equal to the London interbank offered rate
for deposits in U.S. dollars maturing immediately before or immediately after
such maturity, whichever is higher, as determined by the Administrative Agent
from Dow Jones Markets (Telerate) Page 3750.  If Dow Jones Markets (Telerate)
Page 3750 is not available, the applicable Base LIBOR Rate for the
relevant LIBOR Interest Period shall be the rate determined by the
Administrative Agent to be the rate at which the Administrative Agent offers to
place deposits in U.S. dollars with first-class banks in the London interbank
market at approximately 11:00 a.m. (London time) two (2) Business Days prior to
the first day of such LIBOR Interest Period, in the approximate amount of the
Administrative Agent’s relevant portion of the LIBOR Advance and having a
maturity approximately equal to such LIBOR Interest Period.

 

“Borrower” means, as of any date, collectively,
The Rouse Company and all of its Subsidiaries then included as Wholly-Owned
Borrowing Subsidiaries pursuant to Section 2.1(b), along with their
respective successors and assigns.

 

“Borrowing Date” means a Business Day on which
an Advance is made to the Borrower.

 

“Borrowing Notice” is defined in Section 2.11(a)
hereof.

 

4

 

“Business Day” means a day, other than a
Saturday, Sunday or holiday, on which banks are open for business in Chicago,
Illinois, New York, New York and, where such term is used in reference to the
selection or determination of the Adjusted LIBOR Rate, in London, England.

 

“Capital Stock” means any and all shares,
interests, participations or other equivalents (however designated) of capital
stock of a corporation, any and all equivalent ownership interests in a Person
which is not a corporation and any and all warrants or options to purchase any
of the foregoing.

 

“Cash Equivalents” shall mean
(i) short-term obligations of, or fully guaranteed by, the United States
of America, (ii) commercial paper rated A-1 or better by S&P or P-1 or
better by Moody’s, or (iii) certificates of deposit issued by and time
deposits with commercial banks (whether domestic or foreign) having capital and
surplus in excess of $100,000,000.

 

“Code” means the Internal Revenue Code of 1986
as amended from time to time, or any replacement or successor statute, and the
regulations promulgated thereunder from time to time.

 

“Combined Debt Service” means, for any period,
without duplication, (a) Combined Interest Expense for such period plus
(b) the aggregate amount of regularly scheduled principal payments of
Indebtedness (excluding optional prepayments and balloon principal payments due
on maturity in respect of any Indebtedness) required to be made during such
period by the Consolidated Group (less a proportionate share of such regularly
scheduled principal payments on account of minority interest holders equal to
the same proportionate share of interest expenses of the Consolidated Group
deducted in calculating Combined Interest Expense on account thereof), plus
(c) the Consolidated Group Pro Rata Share of all such regularly scheduled
principal payments required to be made during such period by any Investment
Affiliate on Indebtedness (excluding optional prepayments and balloon principal
payments due on maturity in respect of any Indebtedness) taken into account in
calculating Combined Interest Expense plus (d) Preferred Stock
Expense of the Consolidated Group for such period plus (e) Ground
Lease Base Expense of the Consolidated Group for such period.  No interest expense or principal payments on
Indebtedness due from one member of the Consolidated Group solely to other
members of the Consolidated Group shall be included in Combined Debt Service.

 

“Combined EBITDA” means, as of any date, for
the most recent four (4) fiscal quarters for which financial results have then
been reported, (a) income before extraordinary items (reduced to eliminate
any income from Investment Affiliates), as reported by the Consolidated Group
in accordance with GAAP, plus interest (less the proportionate share of
interest of any minority interest holders), depreciation, amortization and
income tax (if any) expense, plus (b) a percentage of such income
(adjusted as described above) of any Investment Affiliate equal to the
Consolidated Group Pro Rata Share in such Investment Affiliate, plus
(c) dividends or other distributions accrued with respect to such period
on any preferred stock or other preferred security issued by the Borrower which
dividends or other distributions are treated as operating expenses under GAAP
(but only to the extent actually deducted from earnings under clause (a) above)
plus (d) payments made and other amounts treated as an expense of
the Borrower under GAAP with respect to such period pursuant to the Hughes
Agreement (provided that no item of income or expense shall be included more
than once in such calculation even if it falls within more than one of the
foregoing categories).

 

5

 

“Combined Interest Expense” means, with respect
to any period, all interest expense of the Consolidated Group (less the
proportionate share of interest expense of any minority interest holders)
determined in accordance with GAAP (adjusted to eliminate the effect of any
“mark-to-market” interest adjustment required by GAAP) attributable to such
period plus (i) the allocable portion (based on liability) of any
accrued or paid interest incurred on any obligation for which any member of the
Consolidated Group is wholly or partially liable under repayment, interest
carry, or performance guarantees, or other relevant liabilities, plus
(ii) the Consolidated Group Pro Rata Share of any accrued or paid interest
incurred on any Indebtedness of any Investment Affiliate attributable to such
period, whether recourse or non-recourse, provided that no expense shall be
included more than once in such calculation even if it falls within more than
one of the foregoing categories, and provided further that no interest expense
on Indebtedness due from one member of the Consolidated Group solely to other
members of the Consolidated Group shall be included in Combined Interest
Expense.

 

“Commitment” means the obligation of each
Lender, subject to the terms and conditions of this Agreement and in reliance
upon the representations and warranties herein, to make rateable Advances not
exceeding in the aggregate the amount set forth below its signature at the end
hereof, or the amount stated in any subsequent amendment hereto or in any
assignment to which such Lender is a party that creates or amends its
commitment hereunder.

 

“Community Development Properties”: means the
Summerlin, Nevada and Columbia, Maryland planned communities and other current
and future planned communities owned by any member of the Consolidated Group
which have been valued by an independent appraiser which is qualified as a
member of the Appraisal Institute and are being so valued not less often than
annually.

 

“Competitive Bid Borrowing Notice” is defined
in Section 2.17(f).

 

“Competitive Bid Lender” means a Lender which
has a Competitive Bid Loan outstanding.

 

“Competitive Bid Loan” is a Loan made pursuant
to Section 2.17 hereof.

 

“Competitive Bid Note” means the promissory
note payable to the order of each Lender in substantially the form attached
hereto as Exhibit B-2 to be used to evidence any Competitive Bid
Loans which such Lender elects to make (collectively, the “Competitive Bid
Notes”).

 

“Competitive Bid Option Agent” means Bank One.

 

“Competitive Bid Quote” means a response
submitted by a Lender to the Competitive Bid Option Agent with respect to a
Competitive Bid Quote Request in substantially the form attached as Exhibit C-3.

 

“Competitive Bid Quote Request” means a written
request from Borrower to the Competitive Bid Option Agent in substantially the
form attached as Exhibit C-1.

 

6

 

“Competitive LIBOR Margin” means, with respect
to any Competitive Bid Loan for a LIBOR Interest Period, the percentage
established in the applicable Competitive Bid Quote which is to be used to
determine the interest rate applicable to such Competitive Bid Loan.

 

“Consolidated Group” means Rouse, the
Guarantors and all other Subsidiaries that are consolidated with Rouse for
financial reporting purposes under GAAP.

 

“Consolidated Group Pro Rata Share” means, with
respect to any Investment Affiliate, the percentage of the total ownership
interests held by the Consolidated Group, in the aggregate, in such Investment
Affiliate as determined in accordance with GAAP.

 

“Controlled Group” means all members of a
controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with all or any of the
entities in the Consolidated Group, are treated as a single employer under
Sections 414(b) or 414(c) of the Code.

 

“Corporate Base Rate” means a rate per annum equal
to the corporate base rate of interest announced by JPMorgan from time to time,
changing when and as such corporate base rate changes.

 

“Co-Documentation Agents” means collectively
Bank of America, N.A. and Eurohypo AG, New York Branch.

 

“Co-Syndication Agents” means collectively
JPMorgan and Deutsche Bank.

 

“Default” means an event which, with notice or
lapse of time or both, would become an Event of Default.

 

“Default Rate” means with respect to any
Advance, a rate equal to the interest rate applicable to such Advance plus four
percent (4%) per annum.

 

“Defaulting Lender” means any Lender which
fails or refuses to perform its obligations under this Agreement within the
time period specified for performance of such obligation, or, if no time frame
is specified, if such failure or refusal continues for a period of five (5)
Business Days after written notice from the Administrative Agent; provided
that if such Lender cures such failure or refusal, such Lender shall cease to
be a Defaulting Lender.

 

“Deutsche Bank” means Deutsche Bank Trust
Company Americas.

 

“Dollars” and “$” mean United States
Dollars.

 

“Effective Date” means each Borrowing Date and,
if no Borrowing Date has occurred in the preceding calendar month, the first
Business Day of each calendar month.

 

“Environmental Laws” means any and all Federal,
state, local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, requirements of any Governmental Authority having
jurisdiction over any member of the Consolidated Group or any Investment
Affiliate, or their respective assets, and regulating or imposing liability or
standards of conduct

 

7

 

concerning protection of human health or the
environment, as now or may at any time hereafter be in effect, in each case to
the extent the foregoing are applicable to the operations of such member of the
Consolidated Group or Investment Affiliate, or any of their respective assets
or Properties.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, and regulations promulgated thereunder from
time to time.

 

“Event of Default” means any event set forth in
Article X hereof.

 

“Existing Facility” is defined in the first
recital of this Agreement.

 

“Extended Maturity Date” means, if the Facility
is extended in accordance with the terms and conditions contained in Section 2.1(d)
hereof, the fourth anniversary of the Agreement Execution Date.

 

“Extension Notice” is defined in Section 2.1(d)
hereof.

 

“Facility” means the unsecured revolving credit
facility described in Section 2.1.

 

“Facility Fee” is defined in Section 2.7.

 

“Facility Fee Rate” means, for any day, the
percentage in effect on such day pursuant to the pricing grid attached hereto
as Exhibit A and made a part hereof.

 

“Facility Letter of Credit” means a Financial
Letter of Credit or Performance Letter of Credit issued hereunder.

 

“Facility Letter of Credit Fee” is defined in Section
3.8.

 

“Facility Letter of Credit Obligations” means,
as at the time of determination thereof, all liabilities, whether actual or
contingent, of the Borrower with respect to Facility Letters of Credit,
including the sum of (a) the Reimbursement Obligations and (b) the
aggregate undrawn stated amount of the then outstanding Facility Letters of
Credit.

 

“Federal Funds Effective Rate” means, 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 10:00 a.m. (New York time) on such day on such transactions
received by the Administrative Agent from three (3) Federal funds brokers of
recognized standing selected by the Administrative Agent in its sole
discretion.

 

“Financial Letter of Credit” means any standby
Letter of Credit which represents an irrevocable obligation to the beneficiary
on the part of the applicable Issuing Bank (i) to repay money borrowed by or
advanced to or for the account of the account party or (ii) to make any

 

8

 

payment on account of any indebtedness undertaken by
the account party, in the event the account party fails to fulfill its
obligation to the beneficiary.

 

“Funded Percentage” means, with respect to any
Lender at any time, a percentage equal to a fraction the numerator of which is
the portion of the total Advances actually disbursed and outstanding to
Borrower by such Lender at such time, and the denominator of which is the
portion of the total Advances disbursed and outstanding to Borrower by all of
the Lenders at such time.

 

“Funds From Operations” means the “funds from
operations” of the Borrower as such term is defined under the then-current
definitions and interpretations thereof promulgated by the National Association
of Real Estate Investment Trusts or its successor, subject to such adjustments
with respect to non-recurring income and expenses as the Borrower may elect to
make from time to time on a consistent basis, including without limitation
adding back any prepayment penalties on the retirement of any Indebtedness
prior to maturity.

 

“GAAP” means generally accepted accounting
principles in the United States of America consistent with those utilized in
preparing the audited financial statements of the Borrower required hereunder.

 

“Governmental Authority” means any nation or
government, any state or other political subdivision thereof and any
quasi-governmental agency exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

 

“Gross Asset Value” means, as of any date, the
sum of the value of certain assets of the Consolidated Group, including their
interests in Investment Affiliates, subject to the valuation methods,
exclusions and sublimits set forth below:

 

(a)                                  with
respect to Retail Properties (other than Urban and Non-Core Acquisition
Properties including, without limitation, Kravco, and those included in clause
(c) below), the Net Operating Income attributable thereto for the most recent
period of four (4) full fiscal quarters for which results have been reported,
divided by 0.0825;

 

(b)                                 with
respect to Kravco and all office, and other income-producing properties other
than Retail Properties, Urban and Non-Core Acquisition Properties (except for
Kravco) and those included in clause (c) below, the Net Operating Income
attributable thereto for the most recent period of four (4) full fiscal
quarters for which results have been reported, divided by 0.09;

 

(c)                                  with
respect to any Retail Property or any office, mixed-use or other
income-producing property acquired or placed in service (including, without
limitation, any expansion project or phase thereof costing in excess of
$10,000,000) during the most recent period of four full fiscal quarters for
which results have been reported, the acquisition or construction cost thereof;

 

(d)                                 with
respect to Community Development Properties, 100% of the most recent value
thereof (without deduction for the value of the interests of the Hughes heirs
therein under the Hughes Agreement but otherwise less the portion of such most
recent value

 

9

 

attributable to
any other minority interest holders) as established by Landauer Associates,
Inc. (or another appraiser selected by Rouse satisfactory to the Administrative
Agent), provided that the Required Lenders may require updates thereof not more
often than annually and as required when any material portion of such
properties are sold or transferred;

 

(e)                                  with
respect to all other land, all Assets Under Development and other
non-income-producing properties, 100% of the GAAP book value thereof (less the
portion of such value attributable to minority interest holders);

 

(f)                                    with
respect to cash and Cash Equivalents held by the Consolidated Group, 100% of
the GAAP book value thereof;

 

(g)                                 with
respect to current trade receivables (other than notes receivable) held by the
Consolidated Group, 100% of the GAAP book value thereof;

 

(h)                                 with
respect to Non-Core Acquisition Properties (other than Kravco), the lower of
(i) Borrower’s ownership share of the value of the applicable asset and (ii)
Borrower’s ownership share of the sale price for the applicable asset set forth
in a purchase agreement for such asset which is approved by the Administrative
Agent in its sole discretion; and

 

(i)                                     with
respect to Urban, five (5) times that portion of Combined EBITDA attributable
to Urban for the immediately preceding twelve month period.

 

In each case, if the applicable property is owned by
an Investment Affiliate rather than a member of the Consolidated Group, only
the Consolidated Group’s Pro Rata Share of such value will be included in Gross
Asset Value.

 

Notwithstanding the foregoing, the amount contributed
to Gross Asset Value from the following types of properties shall not exceed
the following percentages of Gross Asset Value:

 

(a)                                  Not
more than 25% of Gross Asset Value shall be attributable to any single property
or group of contiguous properties;

 

(b)                                 Not
more than 25% of Gross Asset Value shall be attributable to those properties
described in clauses (d) or (e) of the first sentence of this definition, in
the aggregate;

 

(c)                                  Not
more than 15% of Gross Asset Value shall be attributable to interests of the
Consolidated Group in entities (i) in which the Borrower, directly or
indirectly, holds less than 50% of the total economic interests in such entity
(including, without limitation, the Consolidated Group’s interests in Non-Core
Acquisition Properties and Urban), and (ii) which are not managed,
directly or indirectly, by the Borrower; and

 

(d)                                 Not
more than 5% of Gross Asset Value shall be attributable to those current trade
receivables described in clause (g) of the first sentence of this definition.

 

“Ground Lease Base Expense” means, for any
period, (a) all payments accruing from any member of the Consolidated
Group under a lease of land underlying a property for such period other than
percentage rentals or other contingent payments that are based upon the
financial

 

10

 

results of the operation of such property (less a
proportionate share of such payments on account of minority interest holders
equal to the same proportionate share of interest expenses of the Consolidated
Group deducted in calculating Combined Interest Expense on account thereof), plus
(b) the Consolidated Group Pro Rata Share of all such non-contingent
payments accruing from any Investment Affiliate under such a lease of land for
such period.

 

“Guarantee Obligation” as to any Person (the “guaranteeing
person”), any obligation (determined without duplication) of (a) the
guaranteeing person or (b) another Person (including, without limitation,
any bank under any letter of credit) to induce the creation of which the
guaranteeing person has issued a reimbursement, counter indemnity or similar
obligation, in either case guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including, without limitation, any
obligation of the guaranteeing person, whether or not contingent, (i) to
purchase any such primary obligation or any property constituting direct or indirect
security therefor, (ii) to advance or supply funds (1) for the
purchase or payment of any such primary obligation or (2) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation or (iv) otherwise to assure or
hold harmless the owner of any such primary obligation against loss in respect
thereof; provided, however, that the term Guarantee Obligation
shall not include completion or performance guarantees, environmental
indemnities, or endorsements of instruments for deposit or collection in the
ordinary course of business.  The amount
of any Guarantee Obligation of any guaranteeing person shall be deemed to be
the maximum stated amount of the primary obligation relating to such Guarantee
Obligation (or, if less, the maximum stated liability set forth in the
instrument embodying such Guarantee Obligation), provided, that in the
absence of any such stated amount or stated liability, the amount of such
Guarantee Obligation shall be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as determined by the Borrower in good
faith.

 

“Guarantors” means the Limited Guarantors, the
Unlimited Guarantor and the Unencumbered Asset Guarantors, jointly and
severally, subject to the terms of the Guaranty.

 

“Guaranty” means the Limited Guaranty, the
Unlimited Guaranty and the Unencumbered Asset Guaranty, collectively.

 

“Hughes Agreement” means that certain
Contingent Stock Agreement, effective as of January 1, 1996, by Rouse in
favor of and for the benefit of the “Holders” and the “Representatives” (as
such terms are defined therein).

 

“Indebtedness” of any Person at any date means,
without duplication, (a) all indebtedness of such Person for borrowed
money, (b) all obligations of such Person for the deferred purchase price
of property or services (other than current trade liabilities and other
accounts payable, and accrued expenses incurred in the ordinary course of
business and payable in accordance with customary practices), to the extent
such obligations constitute indebtedness for the purposes of GAAP, (c) any
other indebtedness of such Person which is evidenced by a note, bond, debenture
or similar instrument, (d) all obligations of such Person under financing
leases and capital leases

 

11

 

as defined in accordance with GAAP, (e) all
obligations of such Person in respect of acceptances issued or created for the
account of such Person, (f) all Guarantee Obligations of such Person
(excluding in any calculation of consolidated indebtedness of the Borrower,
Guarantee Obligations of the Borrower in respect of primary obligations of any
Subsidiary), (g) all reimbursement obligations of such Person for letters of
credit and other contingent liabilities, (h) all liabilities secured by
any lien (other than liens for taxes not yet due and payable or otherwise being
contested in good faith) on any property owned by such Person even though such
Person has not assumed or otherwise become liable for the payment thereof,
(i) any repurchase obligation or liability of such Person or any of its
Subsidiaries with respect to accounts or notes receivable sold by such Person
or any of its Subsidiaries, (j) reimbursement obligations (contingent or
otherwise) under any letter of credit, (k) Net Mark-to-Market Exposure under
Rate Management Transactions, (l) such Person’s pro rata share of debt in
Investment Affiliates, less the proportionate share of Indebtedness of any
minority interest holders if, and only to the extent, such debt is non-recourse
to such Person, and (m) any loans where such Person is liable as a general
partner.  The term “Indebtedness” shall
not, however, include any Indebtedness due from any member of the Consolidated
Group or any Investment Affiliate solely to another member of the Consolidated
Group.

 

“Initial Facility Letters of Credit” means
Letters of Credit issued by Bank One and currently outstanding under the
Existing Facility, as described on Exhibit K.

 

“Insolvency” means insolvency as defined in the
United States Bankruptcy Code, as amended. 
“Insolvent” when used with respect to a Person, shall refer to a
Person who satisfies the definition of Insolvency.

 

“Interest Period” means either an Absolute
Interest Period or a LIBOR Interest Period.

 

“Investment Affiliate” means any Person in
which any member of the Consolidated Group, directly or indirectly, has an
ownership interest, whose financial results are not consolidated using the
proportionate share method under GAAP with the financial results of the
Consolidated Group in the consolidated financial statements of the Consolidated
Group.

 

“Invitation for Competitive Bid Quotes” means a
written notice to the Lenders from the Administrative Agent with respect to a
Competitive Bid Quote Request substantially in the form attached as Exhibit C-2
hereto.

 

“Issuance Date” is defined in Section
3.4(a)(2).

 

“Issuance Notice” is defined in Section
3.4(c).

 

“Issuing Bank” means, with respect to each
Facility Letter of Credit, the issuing Lender of such Facility Letter of
Credit, as issuer of such Facility Letter of Credit pursuant to Article III.

 

“JPMorgan” means JPMorgan Chase Bank.

 

“Joinder” is defined in Section 2.1(e).

 

12

 

“Joint Lead Arrangers” means collectively
JPMorgan Securities, Inc. and Deutsche Bank Securities, Inc.

 

“Kravco” means the Borrower’s interests in 49%
of the Class A LP interests in Kravco Investments LP, 100% of the stock of
HRE Kravco II Inc, and 100% of the stock of RNA-Kravco III Inc.

 

“Lenders” means, collectively, JPMorgan, Bank
One, Deutsche Bank and the other Persons executing this Agreement in such
capacity, or any Person which subsequently executes and delivers any amendment
hereto in such capacity and each of their respective permitted successors and
assigns.  Where reference is made to
“the Lenders” in any Loan Document it shall be read to mean “all of the
Lenders”.

 

“Lending Installation” means any U.S. office of
any Lender authorized to make the Advances described herein.

 

“Letter of Credit” of a Person means a letter
of credit or similar instrument which is issued upon the application of such
Person or upon which such Person is an account party or for which such Person
is in any way liable.

 

“Letter of Credit Collateral Account” is
defined in Section 3.9.

 

“Letter of Credit Request” is defined in Section
3.4(a).

 

“LIBOR Advance” means an Advance that bears
interest at the Adjusted LIBOR Rate, whether a ratable Advance based on the
LIBOR Applicable Margin or a Competitive Bid Loan based on a Competitive LIBOR
Margin.

 

“LIBOR Applicable Margin” is defined on Exhibit
A attached hereto and made a part hereof.

 

“LIBOR Interest Period” means, with respect to
a LIBOR Advance, (i) until the date on which the Co-Syndication Agents shall
advise the Borrower and the Lenders that the initial syndication of the
Facility is completed, a period of one (1) week, and (ii) thereafter, a period
of one (1), two (2), three (3) or six (6) months, as selected in advance by the
Borrower.

 

“Lien” means any mortgage, pledge, security
interest, encumbrance, lien or charge of any kind (including, without
limitation, any conditional sale or other title retention agreement or lease in
the nature thereof, any filing or agreement to file a financing statement as
debtor under the Uniform Commercial Code on any property leased to any Person
under a lease which is not in the nature of a conditional sale or title
retention agreement, or any subordination agreement in favor of another
Person).

 

“Limited Guarantors” means The Howard Hughes
Corporation, a Delaware corporation, and Howard Hughes Properties, Inc., a
Nevada corporation.

 

13

 

“Limited Guaranty” means that certain guaranty
of even date herewith, substantially in the form of Exhibit D hereto,
made jointly and severally by the Limited Guarantors for the benefit of the
Lenders.

 

“Loan” means, with respect to a Lender, such
Lender’s portion of any Advance.

 

“Loan Documents” means this Agreement, the
Notes, the Guaranty, the Pledge, the Transition Memorandum and any and all
other agreements or instruments required and/or provided to Lenders hereunder
or thereunder, as any of the foregoing may be amended from time to time.

 

“Majority Lenders” means Lenders in the aggregate
having in excess of 50% of the Aggregate Commitment or, if the Aggregate
Commitment has been terminated, Lenders in the aggregate holding in excess of
50% of the aggregate unpaid principal amount of the outstanding Advances.

 

“Margin Stock” has the meaning ascribed to it
in Regulation U of the Board of Governors of the Federal Reserve System.

 

“Material Adverse Effect” means, with respect
to any matter, that such matter in the Majority Lenders’ good faith judgment
may reasonably be expected to, (x) materially and adversely affect the
business, properties, condition or results of operations of the Consolidated
Group taken as a whole (results of operations to be based on Funds From
Operations), or (y) constitute a non-frivolous challenge to the validity
or enforceability of any material provision of any Loan Document against any
obligor party thereto.

 

“Material Adverse Financial Change” shall be
deemed to have occurred if the Majority Lenders, in their good faith judgment,
determine that a material adverse financial change has occurred which may
reasonably be expected to prevent timely repayment of any Advance hereunder or
materially impair Borrower’s ability to perform its obligations under any of
the Loan Documents.

 

“Material Subsidiary” means, as of any date,
any member of the Consolidated Group that has assets that represent more than
five percent (5%) of the then-current Gross Asset Value.

 

“Materials of Environmental Concern” means any
gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products or any hazardous or toxic substances, materials or wastes,
defined or regulated as such in or under any Environmental Laws, including,
without limitation, asbestos, radon, polychlorinated biphenyls and
urea-formaldehyde insulation.

 

“Maturity Date” means the Original Maturity
Date or, if the Facility is extended pursuant to the terms and conditions of Section 2.1(d)
hereof, the Extended Maturity Date or, in either case, such earlier date on
which the principal balance of the Facility and all other sums due in
connection with the Facility shall be due as a result of the acceleration of
the Facility.

 

“Monetary Default” means any Default involving
Borrower’s failure to pay any of the Obligations when due.

 

14

 

“Moody’s” means Moody’s Investors Service, Inc.
and its successors.

 

“Net Asset Value” means, as of any date,
(a) then-current Gross Asset Value less (b) the Consolidated
Group’s Indebtedness less (c) the Consolidated Group’s Pro Rata
Share of the Indebtedness of each Investment Affiliate which has a property
then included in Gross Asset Value plus (d) to the extent treated
as Indebtedness, the liquidation payment due on any preferred stock of any
member of the Consolidated Group or such Investment Affiliate.

 

“Net Mark-to-Market Exposure” of a Person
means, as of any date of determination, the excess (if any) of all unrealized
losses over all unrealized profits of such Person arising from Rate Management
Transactions as substantiated in writing by the Borrower to and approved by the
Administrative Agent.  “Unrealized
losses” means the fair market value of the cost to such Person of replacing
such Rate Management Transaction as of the date of determination (assuming such
Rate Management Transaction was to be terminated as of that date), and
“unrealized profits” means the fair market value of the gain to such Person of
replacing such Rate Management Transaction as of the date of determination
(assuming such Rate Management Transaction was to be terminated as of that
date).

 

“Net Operating Income” means, with respect to
any Property, for any period, earnings from rental operations attributable to
such Property plus depreciation, amortization, interest expense and
deferred taxes with respect to such Property for such period, and, if such
period is less than a year, adjusted by straight lining various ordinary
operating expenses which are payable less frequently than once during every
such period (e.g., real estate taxes and insurance).  The amounts determined under the preceding
sentence shall be adjusted by adding back (i) the interests of the former
Hughes owners pursuant to the Hughes Agreement that were excluded in
determining such amounts and (ii) dividends or other distributions accrued
with respect to such period on any preferred stock or other preferred security
issued by the Borrower which dividends or other distributions are treated as
operating expenses under GAAP.  The Net
Operating Income shall be adjusted to exclude any Net Operating Income for the
prior four (4) quarters from any Property not owned as of the end of the
quarter.

 

“Non-Core Acquisition Properties” means the
Borrower’s 27.29% interest in the Purchase Note dated January 11, 2002 for
$20 million from AP-RODACQ LLC (also known as the Abbey Note), the Westin
Hotel limited liability company interests in Dream Team Hotel Associates LLC
(estimated cost $70 million), the Purchase Money Note dated May 31, 2002
for $75 million from TISHMAN ABP LLC (also known as the Tishman note), a
limited partnership interest in River Ridge Limited Partnership (estimated cost
$19.1 million), interests in Kravco, shares in Hexalon, Inc., interests in
RoPro Property Services, BV, and any purchase money notes received by Borrower
or its affiliates in connection with the sale of any of these assets.

 

“Non-Recourse Outstanding Indebtedness” means,
as of any date, all outstanding Indebtedness of a Person (i) for which such
Person’s liability is limited by agreement with the creditors thereunder to the
proceeds of certain assets of such Person, subject to customary carve-outs, or
(ii) which is secured by all or substantially all of such Person’s assets less,
in the case of Rouse and the Operating Partnership, any other Indebtedness of
Rouse and the Operating Partnership included in Recourse Outstanding
Indebtedness.

 

15

 

“Note” means the promissory note payable to the
order of each Lender in the amount of such Lender’s maximum Commitment
substantially in the form attached hereto as Exhibit B-1
(collectively, the “Notes”).

 

“Obligations” means the Advances, the Facility
Letter of Credit Obligations and all accrued and unpaid fees and all other
obligations of Borrower to the Administrative Agent, the Issuing Bank, or any
or all of the Lenders arising under this Agreement or any of the other Loan
Documents.

 

“Operating Partnership” means The Rouse
Company, L.P., a Delaware limited partnership.

 

“Original Maturity Date” means the Business Day
immediately preceding the third anniversary of the Agreement Execution Date.

 

“Participants” is defined in Section 13.2.1
hereof.

 

“PBGC” means the Pension Benefit Guaranty
Corporation or any entity succeeding to any or all of its functions under
ERISA.

 

“Percentage” means, with respect to each
Lender, the applicable percentage of the then-current Aggregate Commitment
represented by such Lender’s then-current Commitment.

 

“Performance Letter of Credit” means any
standby Letter of Credit which represents an irrevocable obligation to the
beneficiary on the part of the applicable Issuing Bank to make payment on
account of any default by the account party in the performance of a
nonfinancial or commercial obligation.

 

“Permitted Liens” are defined in Section 9.6
hereof.

 

“Person” means an individual, a corporation, a
business trust, a limited or general partnership, a limited liability company,
an association, a joint venture or any other entity or organization, including
a governmental or political subdivision or an agent or instrumentality thereof.

 

“Plan” means an employee benefit plan as
defined in Section 3(3) of ERISA, whether or not terminated, as to which the
Borrower or any member of the Controlled Group may have any liability.

 

“Pledge” means that certain Pledge Agreement,
dated as of December 21, 2000 as reaffirmed by that certain Reaffirmation of
Pledge Agreement dated as of the date hereof, in the form of Exhibit M
hereto, pursuant to which the Borrower and The Hughes Corporation have, among
other things, (a) pledged to the Lenders, and granted to the Lenders a first
priority perfected security interest in, all of the Pledged Stock, and (b)
agreed with the Lenders that they will not sell or encumber in any manner any
Indebtedness owed to them by either of the Limited Guarantors.

 

16

 

“Pledged Stock” means all capital stock of
either Limited Guarantor and of The Hughes Corporation, which is owned,
directly or indirectly, by the Borrower or any other member of the Consolidated
Group.

 

“Preferred Stock Expense” means, for any
period, (a) the aggregate dividend and other distribution payments due to
the holders of preferred stock and the holders of other preferred ownership
interests of any member of the Consolidated Group, whether payable in cash or
in kind, and whether or not actually paid during such period plus
(b) the Consolidated Group Pro Rata Share of any such dividend payments
due from Investment Affiliates plus (c) dividends or other
distributions on any preferred stock or other preferred ownership interest of
any member of the Consolidated Group which dividends or distributions are
treated as an operating expense under GAAP, but, with respect to (a), (b) and
(c), excluding any dividend payments or other distributions to a member of the
Consolidated Group.

 

“Property” means each parcel of real property
owned or operated by any member of the Consolidated Group or any Investment
Affiliate.

 

“Purchasers” is defined in Section 13.3.1
hereof.

 

“Qualified Lender” is defined in Section
13.3.1.

 

“Qualified Officer” means, with respect to any
entity, the chief financial officer, treasurer, chief accounting officer or
controller of such entity if it is a corporation or a limited liability company
or of such entity’s general partner if it is a partnership.

 

“Rate Management Transaction” means any
transaction (including, without limitation, an agreement with respect thereto)
now existing or hereafter entered into which is a rate swap, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity
index swap, equity or equity index option, bond option, interest rate option,
foreign exchange transaction, cap transaction, floor transaction, collar
transaction, forward transaction, currency swap transaction, cross-currency
swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions) or any combination
thereof, whether linked to one or more interest rates, foreign currencies,
commodity prices, equity prices or other financial measures.

 

“Rate Option” means the Alternate Base Rate,
the Adjusted LIBOR Rate or the Absolute Rate (only as applicable to Competitive
Bid Loans).  The Rate Option in effect
on any date shall always be the Alternate Base Rate unless the Borrower has
properly selected the Adjusted LIBOR Rate pursuant to Section 2.11
hereof or a Competitive Bid Loan pursuant to Section 2.17 hereof.

 

“Recourse Outstanding Indebtedness” means, as
of any date of determination, (i) all Indebtedness of the Borrower then
outstanding with respect to which recourse is not limited substantially to the
proceeds of a specified asset or assets and which meets the requirements for
inclusion in one of the two categories defined as “Parent Company Debt” and “Property
Debt Carrying a Parent Company Guaranty of Repayment” in the Consolidated
Group’s financial statements, plus (ii) without duplication, all
Indebtedness of any member of the Consolidated Group which is guaranteed in
whole or in part by the Borrower and which consists of mortgages

 

17

 

and bonds relating to operating properties of
subsidiary corporations which are subject to agreements with lenders requiring
the Borrower to provide support for operating and debt service costs, where
necessary, for defined periods or until specified conditions relating to the
operating results of the properties are met, as reflected in the Consolidated
Group’s financial statements, plus (iii) without duplication, the
Consolidated Group Pro Rata Share of any Indebtedness of an Investment
Affiliate which is guaranteed in whole or in part by the Borrower if such
Indebtedness would be included under clause (ii) of this definition if the
obligor on such Indebtedness were a member of the Consolidated Group.  The guidelines for inclusion of various
types of Indebtedness within the above categories in the Consolidated Group’s
financial statements shall be those used for the most recent annual financial
statements of the Consolidated Group available as of the Agreement Execution
Date and such guidelines shall not be changed without the prior written
approval of the Administrative Agent, acting with the consent of the Majority
Lenders.

 

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

 

“Reimbursement Obligations” means at any time,
the aggregate of the Obligations of the Borrower to the Lenders, each Issuing
Bank and the Administrative Agent in respect of all unreimbursed payments or
disbursements made by the Lenders, each Issuing Bank and the Administrative
Agent under or in respect of the Facility Letters of Credit.

 

“Reportable Event” means a reportable event as
defined in Section 4043 of ERISA and the regulations issued under such section,
with respect to a Plan, excluding, however, such events as to which the PBGC by
regulation waived the requirement of Section 4043(a) of ERISA that it be
notified within 30 days of the occurrence of such event, provided that a
failure to meet the minimum funding standard of Section 412 of the Code and of
Section 302 of ERISA shall be a Reportable Event regardless of the issuance of
any such waivers in accordance with either Section 4043(a) of ERISA or Section
412(d) of the Code.

 

“Required Lenders” means Lenders in the
aggregate having at least 66 2/3% of the Aggregate Commitment or, if the
Aggregate Commitment has been terminated, Lenders in the aggregate holding at
least 66 2/3% of the aggregate unpaid principal amount of the outstanding
Advances.

 

“Reserve Requirement” means, with respect to a
LIBOR Interest Period, the maximum aggregate reserve requirement (including all
basic, supplemental, marginal and other reserves) which is imposed under
Regulation D on Eurocurrency liabilities.

 

“Retail Property” means a shopping center or
other retail development containing more than one retail tenant in which at
least 90% of the Net Operating Income from such center or development is
attributable to retail uses.

 

“S&P” means Standard & Poor’s Credit
Market Services, a division of the McGraw Hill Companies, and its successors.

 

18

 

“Secured Outstanding Indebtedness” means, as of
any date of determination, the sum of (a) the aggregate principal amount
of all Indebtedness (other than Indebtedness under this Facility) of the
Consolidated Group outstanding at such date which is secured by a Lien on any
asset or Capital Stock of any member of the Consolidated Group, including
without limitation loans secured by mortgages, stock, or partnership interests,
plus (b) the aggregate principal amount of all unsecured
Indebtedness of any member of the Consolidated Group other than the Borrower
outstanding at such date, less the aggregate principal amount of all
Indebtedness of any member of the Consolidated Group that is a single purpose,
pass-through entity that serves solely as a vehicle for the Borrower to obtain
financing, without duplication of any Indebtedness included under clause (a) of
this definition and provided that, with respect to unsecured Indebtedness of
any member of the Consolidated Group other than the Borrower, the amount of
such unsecured Indebtedness which must be included in Secured Outstanding
Indebtedness shall not exceed the book value, as determined under GAAP, of all
assets of such member of the Consolidated Group plus (c) the
Consolidated Group’s Pro Rata Share of any Indebtedness of an Investment
Affiliate outstanding at such date which (i) is to a Person other than a
member of the Consolidated Group and (ii) with respect to any unsecured
Indebtedness of such Investment Affiliate, does not exceed the Consolidated
Group’s Pro Rata share of the book value, as determined under GAAP, of all
assets of such Investment Affiliate, without duplication of any Indebtedness
included under clause (a) or clause (b) of this definition, provided,
that Indebtedness for purposes of clauses (b) and (c) of this definition shall
be deemed to include any current trade liabilities and other accounts payable
of the members of the Consolidated Group (other than the Borrower), and
Investment Affiliates described in such clauses (b) and (c) due to Persons
other than members of the Consolidated Group.

 

“Senior Loans” is defined in Section 12.15
hereof.

 

“Status” is defined on Exhibit A
attached hereto and made a part hereof.

 

“Subsidiary” means as to any Person, a
corporation, partnership or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such
other ownership interests having such power only by reason of the happening of
a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by the Borrower, and provided such
corporation, partnership or other entity is consolidated with the Borrower for
financial reporting purposes under GAAP.

 

“Swing Line Borrowing Notice” is defined in
Section 2.20.2.

 

“Swing Line Commitment” means $25,000,000.

 

“Swing Line Lender” means Bank One,
Manufacturers and Traders Trust Company or such other Lender which may succeed
to Bank One’s or Manufacturers and Traders Trust Company’s rights and
obligations as a Swing Line Lender pursuant to the terms of this Agreement.

 

19

 

“Swing Line Loan” means a Loan made available
to the Borrower by a Swing Line Lender pursuant to Section 2.20.

 

“The Hughes Corporation” means The Howard
Hughes Corporation, a Delaware corporation which is one of the Pledgors under
the Pledge.

 

“Total Outstanding Indebtedness” means, as of
any date, (a) all Indebtedness of the Consolidated Group then outstanding less
(b) except for any current maturities of long term debt, all “current
liabilities” of the Consolidated Group, as defined under GAAP to the extent not
already excluded in the definition of Indebtedness plus (c) the
Consolidated Group’s Pro Rata Share of all Indebtedness (except for such
“current liabilities” other than any current maturities of long term debt) of
Investment Affiliates then outstanding and owing to parties other than the
members of the Consolidated Group, without duplication of any such items.

 

“Transaction” means the merger of certain of
corporate subsidiaries of Rouse into single-member limited liability companies
and the contribution by Rouse of its interests in such limited liability
companies to the Operating Partnership, in connection with the formation of an
umbrella partnership real estate investment trust structure for Rouse and which
occurred prior to the date hereof.

 

“Transfer Date” means the earlier of (a) such
time as the Properties and assets of Rouse not transferred to the Operating
Partnership in the Transaction are, directly or indirectly, transferred to the
Operating Partnership substantially as an entirety and (b) the issuance of any
Capital Stock of the Operating Partnership to any Person other than Rouse or a
wholly-owned Subsidiary of Rouse.

 

“Transferee” is defined in Section 13.4
hereof.

 

“Transition Memorandum” is defined in Section
5.1(n) hereof.

 

“Unencumbered Asset” means any Retail Property
located in the United States, 100% of which is owned in fee simple by the
Borrower or a member of the Consolidated Group which, as of any date of
determination or for the applicable period, (a) is not subject to any
Liens or claims (including restrictions on transferability or assignability) of
any kind (including any such Lien, claim or restriction imposed by the
organizational documents of any member of the Consolidated Group) but excluding
those Permitted Liens described in clauses (i)-(v) of Section 9.6 of this
Agreement), (b) is not subject to any agreement (including (i) any
agreement governing Indebtedness incurred in order to finance or refinance the
acquisition of such asset, and (ii) if applicable, the organizational
documents of any member of the Consolidated Group) which prohibits or limits
the ability of the Borrower or such member of the Consolidated Group to create,
incur, assume or suffer to exist any Lien upon any assets or Capital Stock of
the Borrower or such member of the Consolidated Group, including, without
limitation, any negative pledge or similar covenant or restriction, (c) is
not subject to any agreement (including any agreement governing Indebtedness
incurred in order to finance or refinance the acquisition of such asset) which
entitles any Person to the benefit of any Lien on any assets or Capital Stock
of the Borrower or such member of the Consolidated Group, or would entitle any
Person to the benefit of any Lien on such assets or Capital Stock upon the
occurrence of any contingency (including,

 

20

 

without limitation, pursuant to an “equal and ratable”
clause), and (d) has been improved with an income-producing building or
buildings which are substantially completed and occupied.  For the purposes of this Agreement, any
Property of a member of the Consolidated Group shall not be deemed to be
unencumbered unless (i) both such Property and all Capital Stock of such
member of the Consolidated Group held directly or indirectly by the Borrower is
unencumbered and (ii) each intervening entity between the Borrower and
such member of the Consolidated Group does not have any Indebtedness for
borrowed money or, if such entity has any Indebtedness, such Indebtedness is
unsecured and the entity is a member of the Consolidated Group.

 

“Unencumbered Asset Guarantors” means
collectively each entity which is required to sign and deliver an Unencumbered
Asset Guaranty pursuant to Section 8.12 of this Agreement.

 

“Unencumbered Asset Guaranty” means the
guaranty to be executed and delivered by certain members of the Consolidated
Group in substantially the form of Exhibit J attached hereto for the
benefit of the Lenders and joined by certain other members of the Consolidated
Group pursuant to a joinder in substantially the form attached thereto.

 

“Unlimited Guarantor” means The Howard Research
and Development Corporation, a Maryland corporation.

 

“Unlimited Guaranty” means that certain
guaranty of even date herewith, in the form of Exhibit D-1 hereto, made by the
Unlimited Guarantor for the benefit of the Lenders.

 

“Urban” means, collectively, Urban Retail
Properties, Co., a Delaware corporation and its subsidiaries and affiliates.

 

“Wholly-Owned Borrowing Subsidiaries” is
defined in Section 2.1(b).

 

The foregoing definitions shall be equally applicable
to both the singular and the plural forms of the defined terms.

 

1.2                                 Financial Standards.  All financial computations required of a
Person under this Agreement shall be made, and all financial information
required under this Agreement shall be prepared, in accordance with GAAP,
except that if any Person’s financial statements are not audited, such Person’s
financial statements shall be prepared in accordance with the same sound
accounting principles utilized in connection with the financial information
submitted to Lenders with respect to the Consolidated Group or the Properties
in connection with this Agreement and shall be certified by a Qualified Officer
of such Person.

 

ARTICLE II.

THE FACILITY

 

2.1                                 The Facility.

 

(a)                                  General
Terms.  Subject to the terms and
conditions of this Agreement and in reliance upon the representations and warranties
of the Borrower contained herein, Lenders

 

21

 

agree to make
Advances through the Administrative Agent to the Borrower from time to time
prior to the Maturity Date, provided  that the making of any such
Advance will not cause the then Allocated Facility Amount to exceed the
then-current Aggregate Commitment.  The
Advances may be ratable Alternate Base Rate Advances, ratable LIBOR Advances,
non-pro rata Competitive Bid Loans or Swing Line Loans.  Except as provided in Sections 2.17
and 2.20 hereof, each Lender shall fund its Percentage of each such
Advance and no Lender will be required to fund any amounts which, when
aggregated with such Lender’s Percentage of (i) all other Advances
(excluding Competitive Bid Loans) and all Swing Line Loans then outstanding and
(ii) all then-current Facility Letter of Credit Obligations would exceed
such Lender’s then-current Commitment. 
Notwithstanding the foregoing, except as provided in Section 2.17
hereof, Manufacturers and Traders Trust Company will not be required to fund
any amounts which, when aggregated with (i) all Swing Line Loans then
outstanding made by such Lender, (ii) such Lender’s Percentage of all other
Advances (excluding Competitive Bid Loans), (iii) such Lender’s Percentage of
all Swing Line Loans then outstanding made by Lenders other than such Lender
and (iv) all then-current Facility Letter of Credit Obligations would
exceed such Lender’s then-current Commitment. 
This facility (“Facility”) is a revolving credit facility and,
subject to the provisions of this Agreement, the Borrower may request Advances
hereunder, repay such Advances and reborrow Advances at any time prior to the
Maturity Date.

 

(b)                                 Borrowing
Subsidiaries.  From time to time
prior to the Maturity Date, and upon not less than ten (10) days prior written
notice to the Administrative Agent and the Lenders, Rouse shall have the right
to designate one or more Subsidiaries of Rouse in which Rouse directly or
indirectly owns 100% of the ownership interests as additional entities
authorized to request and receive Advances and Facility Letters of Credit
hereunder (“Wholly-Owned Borrowing Subsidiaries”).  Prior to disbursement of the first Advance to any Wholly-Owned
Borrowing Subsidiary so designated by Rouse, such Wholly-Owned Borrowing
Subsidiary shall execute and deliver a Borrowing Subsidiary Joinder
substantially in the form attached hereto as Exhibit N and made a part
hereof.  Rouse may not so designate more
than six (6) Wholly-Owned Borrowing Subsidiaries in total during the term of
the Facility.  The liability of Rouse
and the Wholly-Owned Borrowing Subsidiaries for the Obligations shall be joint
and several, regardless of the entity actually receiving any Advance or
Facility Letter of Credit, provided that, if either or both of the Limited
Guarantors are so designated as Wholly-Owned Borrowing Subsidiaries, the
Limited Guarantors (i) shall not be permitted to have, in the aggregate,
outstanding Advances and Facility Letter of Credit Obligations at any time
which exceed $250,000,000 and (ii) shall have, between them, liability as
Wholly-Owned Borrowing Subsidiaries and as Limited Guarantors for the
Obligations limited to $250,000,000 in the aggregate.  Pursuant to the Borrowing Subsidiary Joinder, each Wholly-Owned
Borrowing Subsidiary shall (i) irrevocably designate and authorize Rouse as its
exclusive agent to act on its behalf in connection with the requesting,
funding, maintenance, conversion, continuation and repayment of any Advances hereunder,
or the issuance, extension, modification or cancellation of any Facility Letter
of Credit hereunder, or any other matter relating to such Advances or Facility
Letters of Credit or relating to this Agreement generally and (ii) agree that
the Administrative Agent and the Lenders may rely on any directions or
undertakings given by Rouse with respect to such matters without further
inquiry of or confirmation from such Wholly-Owned Borrowing Subsidiary.

 

(c)                                  INTENTIONALLY
OMITTED

 

22

 

(d)                                 Term.  The Facility created by this Agreement, and
the Commitment of each Lender to lend hereunder, shall terminate on the
Maturity Date, unless sooner terminated in accordance with the terms of this
Agreement.  The Original Maturity Date
can be extended for a single extension period of one year upon written notice
to the Administrative Agent received by the Administrative Agent not later than
90 days prior to the Original Maturity Date (the “Extension Notice”), if (i) no
Default has occurred and is continuing when the Extension Notice is given and
at the Original Maturity Date, (ii) all of the covenants of the Borrower
hereunder are being complied with when the Extension Notice is given and at the
Original Maturity Date, and (iii) the Borrower pays, along with the
Extension Notice, an extension fee to the Administrative Agent for the account
of each Lender equal to 0.25% of the then-current Commitment of such Lender.

 

(e)                                  Joinder
by Operating Partnership.  On or
prior to the Transfer Date, Rouse shall cause the Operating Partnership to
execute and deliver to the Administrative Agent and the Lenders a document in
which the Operating Partnership joins in the Obligations of Rouse hereunder
substantially in the form of Exhibit P attached hereto and made a part
hereof (the “Joinder”).

 

2.2                                 Principal Payments.  Any outstanding Advances (other than Competitive Bid Loans) and
all other unpaid Obligations shall be paid in full by the Borrower on the
Maturity Date.  Each Competitive Bid
Loan shall be paid in full on the last day of the applicable Interest Period as
described in Section 2.17 below. 
Each Swing Line Loan shall be paid in accordance with Section 2.20
below.

 

2.3                                 Requests for Advances;
Responsibility for Advances. 
Ratable Advances shall be made available to Borrower by Administrative
Agent in accordance with Section 2.1 and Section 2.11(a)
hereof.  The obligation of each Lender
to fund its Percentage of each ratable Advance shall be several and not joint.

 

2.4                                 Evidence of Credit Extensions.  The Advances of each Lender outstanding at
any time (other than Competitive Bid Loans) shall be evidenced by the
Notes.  Each Note executed by the
Borrower shall be in a maximum principal amount equal to each Lender’s
Percentage of the Aggregate Commitment. 
Each Lender shall record Advances (other than Competitive Bid Loans) and
principal payments thereof on the schedule attached to its Note or, at its
option, in its records, and each Lender’s record thereof shall be conclusive
absent manifest error.  Notwithstanding
the foregoing, the failure to make, or an error in making, a notation with
respect to any Advance shall not limit or otherwise affect the obligations of
Borrower hereunder or under the Notes to pay the amount actually owed by
Borrower to Lenders.

 

2.5                                 Ratable and Non-Pro Rata Loans.  Each Advance hereunder shall consist of
Loans made from the several Lenders ratably in proportion to their Percentages,
except for Competitive Bid Loans which may be made on a non-pro rata basis by
one or more of the Lenders in accordance with Section 2.17 and
Swing Line Loans which may be made on a non-pro rata basis by one or more Swing
Line Lenders in accordance with Section 2.20.  The ratable Advances may be Alternate Base Rate Advances, LIBOR
Advances or a combination thereof, selected by the Borrower in accordance with Sections
2.10 and 2.11.

 

23

 

2.6                                 LIBOR Applicable Margins.  The LIBOR Applicable Margin to be used in
calculating the interest rate applicable to different types of LIBOR Advances
shall vary from time to time in accordance with the Borrower’s long term senior
unsecured debt ratings as shown on Exhibit A.

 

2.7                                 Facility Fee. 
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender a facility fee (the “Facility Fee”) from the Agreement
Execution Date to and including the Maturity Date, calculated on a per diem
basis at the Facility Fee Rate on the amount of such Lender’s Commitment on
such day, payable quarterly in arrears on the last day of each calendar quarter
hereafter beginning September 30, 2003 and on the Maturity Date.

 

2.8                                 Other Fees. 
The Borrower shall pay the fee due to the Administrative Agent in
connection with Competitive Bid Loans as described in Section 2.17.  The Borrower agrees to pay all other fees
payable to the Administrative Agent, the Co-Syndication Agents and the Joint
Lead Arrangers pursuant to the Borrower’s prior letter agreements with them.

 

2.9                                 Minimum Amount of Each Advance.  Each LIBOR Advance (other than Competitive
Bid Loans) shall be in the minimum amount of $5,000,000 (and in multiples of
$1,000,000 if in excess thereof), and each Alternate Base Rate Advance (other
than Loans made for the sole purpose of repaying Swing Line Loans or
Reimbursement Obligations) shall be in the minimum amount of $1,000,000 (and in
multiples of $100,000 if in excess thereof), provided, however, that any
Alternate Base Rate Advance may be in the amount of the unused Aggregate
Commitment.

 

2.10                           Interest.

 

(a)                                  The
outstanding principal balance under the Notes shall bear interest from time to
time at a rate per annum equal to:

 

(i)                                     the
Alternate Base Rate; or

 

(ii)                                  at
the election of Borrower with respect to all or portions of the Loans (other
than Swing Line Loans), the Adjusted LIBOR Rate.

 

(b)                                 All
interest, the Facility Fee and the Facility Letter of Credit Fee shall be
calculated for actual days elapsed on the basis of a 360-day year.  Interest accrued on each Alternate Base Rate
Advance shall be payable in arrears on (i) the first day of each calendar
month, commencing with the first such date to occur after the date hereof, and
(ii) the Maturity Date or such earlier date on which such Alternate Base
Rate Advance is due and payable. 
Interest accrued on each LIBOR Advance shall be payable in arrears on
the earliest of (i) the first day of each calendar quarter, commencing
with the first such date to occur after the date hereof, (ii) the last day
of the applicable LIBOR Interest Period, (iii) any date on which such
LIBOR Advance is prepaid, whether by acceleration or otherwise, and (iv) the
Maturity Date or such earlier date on which such LIBOR Advance is due and
payable.  Interest shall not be payable
for the day of any payment on the amount paid if payment is received by
Administrative Agent on the date due prior to noon (Chicago time).  If any payment of principal or interest
under the Notes shall become due on a day that is not a Business Day, such
payment shall be made on the next succeeding Business Day and, in the case of a
payment of principal, such extension of time

 

24

 

shall be included
in computing interest due in connection with such payment; provided that for
purposes of Section 10.1 hereof, any payments of principal
described in this sentence shall be considered to be “due” on such next
succeeding Business Day.

 

2.11                           Selection of Rate Options and LIBOR
Interest Periods.

 

(a)                                  Borrower,
from time to time, may select the Rate Option and, in the case of each LIBOR
Advance, the commencement date (which shall be a Business Day) and the length
of the LIBOR Interest Period applicable to each LIBOR Advance.  Borrower shall give Administrative Agent
irrevocable notice (a “Borrowing Notice”) not later than 11:00 a.m.
(Chicago time) (i) at least one Business Day prior to an Alternate Base
Rate Advance (other than a Swing Line Loan), and (ii) at least three (3)
Business Days prior to a ratable LIBOR Advance, specifying:

 

(i)                                     the
Borrowing Date, which shall be a Business Day, of such Advance,

 

(ii)                                  the
aggregate amount of such Advance,

 

(iii)                               the
type of Advance selected, and

 

(iv)                              in
the case of each LIBOR Advance, the LIBOR Interest Period applicable thereto.

 

The Borrower shall also deliver together with each
Borrowing Notice the compliance certificate required in Section 5.2
and otherwise comply with the conditions set forth in Section 5.2
for Advances.  Administrative Agent
shall provide each Lender by facsimile with a copy of each Borrowing Notice and
compliance certificate on the same Business Day it is received.

 

Not later than noon (Chicago time) on each Borrowing
Date, each Lender shall make available its Loan or Loans, in funds immediately
available in Chicago to the Administrative Agent.  Administrative Agent will promptly make the funds so received
from the Lenders available to the Borrower.

 

(b)                                 Administrative
Agent shall, as soon as practicable after receipt of a Borrowing Notice,
determine the Adjusted LIBOR Rate applicable to the requested ratable LIBOR
Advance and inform Borrower and Lenders of the same.  Each determination of the Adjusted LIBOR Rate by Administrative
Agent shall be conclusive and binding upon Borrower in the absence of manifest
error.  Administrative Agent shall, as
soon as practicable after receipt of a Borrowing Notice, determine the
Alternate Base Rate applicable to the requested Alternate Base Rate Advance and
inform Lenders of the same.

 

(c)                                  If
Borrower shall prepay a LIBOR Advance other than on the last day of the LIBOR
Interest Period applicable thereto, Borrower shall be responsible to pay all
amounts due to Lenders as required by Section 4.4 hereof.  The Lenders shall not be obligated to match
fund their LIBOR Advances.

 

25

 

(d)                                 As
of the end of each LIBOR Interest Period selected for a ratable LIBOR Advance,
the interest rate on the LIBOR Advance will become the Alternate Base Rate,
unless Borrower has once again selected a LIBOR Interest Period in accordance
with the timing and procedures set forth in Section 2.11(g).

 

(e)                                  The
right of Borrower to select the Adjusted LIBOR Rate for an Advance pursuant to
this Agreement is subject to the availability to Lenders of a similar
option.  If Administrative Agent
determines that (i) deposits of Dollars in an amount approximately equal
to the LIBOR Advance for which the Borrower wishes to select the Adjusted LIBOR
Rate are not generally available at such time in the London interbank
Eurodollar market, or (ii) the rate at which the deposits described in
subsection (i) herein are being offered will not adequately and fairly
reflect the costs to Lenders of maintaining an Adjusted LIBOR Rate on an
Advance or of funding the same in such market for such LIBOR Interest Period,
or (iii) reasonable means do not exist for determining an Adjusted LIBOR
Rate, or (iv) the Adjusted LIBOR Rate would be in excess of the maximum
interest rate which Borrower may by law pay, then in any of such events,
Administrative Agent shall so notify Borrower and Lenders and such Advance
shall bear interest at the Alternate Base Rate.

 

(f)                                    In
no event may Borrower elect a LIBOR Interest Period which would extend beyond
the then-current Maturity Date at the time of such election.  Unless the Administrative Agent agrees
thereto, in no event may Borrower have more than ten (10) different LIBOR
Interest Periods for LIBOR Advances outstanding at any one time.

 

(g)                                 Conversion
and Continuation.

 

(i)                                     Borrower
may elect from time to time, subject to the other provisions of this Section
2.11, to convert all or any part of a ratable Advance into any other type
of Advance (other than a Swing Line Loan); provided that any conversion of a
ratable LIBOR Advance shall be made on, and only on, the last day of the LIBOR
Interest Period applicable thereto.

 

(ii)                                  Alternate
Base Rate Advances (other than Swing Line Loans) shall continue as Alternate
Base Rate Advances unless and until such Alternate Base Rate Advances are
converted into ratable LIBOR Advances pursuant to a Conversion/Continuation
Notice from Borrower in accordance with Section 2.11(g)(iv).  Ratable LIBOR Advances shall continue until
the end of the then applicable LIBOR Interest Period therefor, at which time
each such LIBOR Advance shall be automatically converted into an Alternate Base
Rate Advance unless the Borrower shall have given the Administrative Agent a
Conversion/Continuation Notice in accordance with Section 2.11(g)(iv)
requesting that, at the end of such LIBOR Interest Period, such LIBOR Advance
continue as a ratable LIBOR Advance for the same or another LIBOR Interest
Period.

 

(iii)                               Notwithstanding
anything to the contrary contained in Sections 2.11(g)(i) or (g)(ii),
no Advance may be converted into a LIBOR Advance or continued as a LIBOR
Advance (except with the consent of the

 

26

 

Majority Lenders) when
any Monetary Default or Event of Default has occurred and is continuing.

 

(iv)                              The
Borrower shall give the Administrative Agent irrevocable notice (a “Conversion/Continuation
Notice”) of each conversion of an Advance or continuation of a LIBOR
Advance not later than 11:00 a.m. (Chicago time) on the Business Day
immediately preceding the date of the requested conversion, in the case of a
conversion into an Alternate Base Rate Advance, or 11:00 a.m. (Chicago time) at
least three (3) Business Days prior to the date of the requested conversion or
continuation, in the case of a conversion into or continuation of a ratable
LIBOR Advance, specifying:  (1) the
requested date (which shall be a Business Day) of such conversion or
continuation; (2) the amount and type of the Advance to be converted or
continued; and (3) the amounts and type(s) of Advance(s) into which such
Advance is to be converted or continued and, in the case of a conversion into
or continuation of a ratable LIBOR Advance, the duration of the LIBOR Interest
Period applicable thereto.

 

2.12                           Method of Payment.  All payments of the Obligations hereunder shall be made, without
set-off, deduction, or counterclaim, in immediately available funds to
Administrative Agent at Administrative Agent’s address specified herein, or at
any other Lending Installation of Administrative Agent specified in writing by
Administrative Agent to Borrower, by noon (local time) on the date when due and
if on account of ratable Obligations, shall be applied ratably by
Administrative Agent among the Lenders. 
All payments received by the Administrative Agent from the Borrower for
the account of the Lenders shall be disbursed to the applicable Lenders no
later than the next Business Day following the day such payment is received in
good funds by the Administrative Agent. 
If payments received by the Administrative Agent from the Borrower are
not disbursed to the applicable Lenders the same day as they are received, such
funds shall be invested overnight by the Administrative Agent at the Federal
Funds Effective Rate and each Lender will receive its Percentage of any
interest so earned.  The Lenders acknowledge
that the Administrative Agent does not guarantee any particular level of return
on the overnight funds and that the Administrative Agent will invest such funds
as it deems prudent from time to time.

 

2.13                           Default.  During
the continuance of a Monetary Default or an Event of Default, at the election
of the Majority Lenders, by notice to Borrower, outstanding Advances shall bear
interest at the applicable Default Rates until such Monetary Default or Event
of Default ceases to exist or the Obligations are paid in full.

 

2.14                           Lending Installations.  Each Lender may book its Advances at any
Lending Installation selected by such Lender and may change its Lending
Installation from time to time.  All
terms of this Agreement shall apply to any such Lending Installation and the
Notes shall be deemed held by each Lender for the benefit of such Lending
Installation.  Each Lender may, by
written, telecopy or telex notice to the Administrative Agent and Borrower,
designate a Lending Installation by which Advances will be made by it and to
which payments shall be made.

 

2.15                           Non-Receipt of Funds by
Administrative Agent.  Unless
Borrower or a Lender, as the case may be, notifies Administrative Agent prior
to the date on which it is scheduled to make payment to Administrative Agent of
(i) in the case of a Lender, its portion of an Advance, or

 

27

 

(ii) in the
case of Borrower, principal, interest or fees to the Administrative Agent for
the account of the Lenders, that it does not intend to make such payment,
Administrative Agent may assume that such payment has been made.  Administrative Agent may, but shall not be
obligated to, make the amount of such payment available to the intended
recipient in reliance upon such assumption. 
If such Lender or Borrower, as the case may be, has not in fact made
such payment to Administrative Agent, the recipient of such payment shall, on
demand by Administrative Agent, repay to Administrative Agent the amount so
made available together with interest thereon in respect of each day during the
period commencing on the date such amount was so made available by
Administrative Agent until the date Administrative Agent recovers such amount
at a rate per annum equal to (i) in the case of payment by a Lender, the
Federal Funds Effective Rate (as determined by Administrative Agent) for such
day or (ii) in the case of payment by Borrower, the interest rate
applicable to the relevant Advance.

 

2.16                           Application of Moneys Received.  All moneys collected or received by the
Administrative Agent on account of the Facility directly or indirectly, shall
be applied in the following order of priority:

 

(i)                                     to
the payment of all reasonable costs incurred in the collection of such moneys
of which the Administrative Agent shall have given notice to the Borrower;

 

(ii)                                  to
the reimbursement of any yield protection due to any of the Lenders in
accordance with Section 4.1;

 

(iii)                               to
the payment of any fee due pursuant to Section 3.8(b) in connection
with the issuance of a Facility Letter of Credit to an Issuing Bank, to the
payment of the Facility Fee and Facility Letter of Credit Fee to the Lenders,
if then due, and to the payment of all fees to the Administrative Agent and
Competitive Bid Option Agent, on a pro rata basis;

 

(iv)                              first
to interest until paid in full and then to principal for all Swing Line Lenders
(other than Defaulting Lenders) with respect to Swing Line Loans until such
Swing Line Loans are paid in full, on a pro rata basis in accordance with the
percentage of total outstanding Swing Line Loans made by each Swing Line
Lender;

 

(v)                                 first
to interest until paid in full and then to principal for all Lenders (other
than Defaulting Lenders) with respect to Senior Loans until such Senior Loans
are paid in full, on a pro rata basis in accordance with the respective
Percentages of the Lenders unless an Event of Default exists or, if an Event of
Default exists, on a pro rata basis in accordance with the respective Funded
Percentages of such Lenders;

 

(vi)                              first
to interest until paid in full and then to principal for all Lenders
(a) as allocated by the Borrower (unless an Event of Default exists)
between Competitive Bid Loans and ratable Advances (the amount allocated to
ratable Advances to be distributed on a pro rata basis in accordance with the

 

28

 

respective Percentages of
the Lenders) or (b) if an Event of Default exists, on a pro rata basis in
accordance with the respective Funded Percentages of the Lenders; and

 

(vii)                           any
other sums due to the Administrative Agent or any Lender under any of the Loan
Documents.

 

2.17                           Competitive Bid Loans.

 

(a)                                  Competitive
Bid Option.  In addition to ratable
Advances pursuant to Section 2.5, but subject to the terms and
conditions of this Agreement (including, without limitation the limitation set
forth in Section 2.1 as to the maximum Allocated Facility Amount),
the Borrower may, as set forth in this Section 2.17, request the
Lenders, prior to the Maturity Date, to make offers to make Competitive Bid
Loans to the Borrower.  Each Lender may,
but shall have no obligation to, make such offers and the Borrower may, but
shall have no obligation to, accept any such offers in the manner set forth in
this Section 2.17. 
Competitive Bid Loans shall be evidenced by the Competitive Bid Notes.

 

(b)                                 Competitive
Bid Quote Request.  When the
Borrower wishes to request offers to make Competitive Bid Loans under this Section 2.17,
it shall transmit to the Competitive Bid Option Agent by telecopy a Competitive
Bid Quote Request substantially in the form of Exhibit C-1 hereto
so as to be received no later than (i) 10:00 a.m. (Chicago time) at least
four (4) Business Days prior to the Borrowing Date proposed therein, in the
case of a request for a Competitive LIBOR Margin or (ii) 9:00 a.m.
(Chicago time) at least one Business Day prior to the Borrowing Date proposed
therein, in the case of a request for an Absolute Rate specifying:

 

(i)                                     the
proposed Borrowing Date for the proposed Competitive Bid Loan,

 

(ii)                                  the
requested aggregate principal amount of such Competitive Bid Loan,

 

(iii)                               whether
the Competitive Bid Quotes requested are to set forth a Competitive LIBOR
Margin or an Absolute Rate, or both, and

 

(iv)                              the
LIBOR Interest Period, if a Competitive LIBOR Margin is requested, or the
Absolute Interest Period, if an Absolute Rate is requested.

 

The Borrower may request offers to make Competitive
Bid Loans for more than one (but not more than five) Interest Period in a
single Competitive Bid Quote Request. 
No Competitive Bid Quote Request shall be given if two (2) other
Competitive Bid Quote Requests have already been made during the preceding 30
days.  A Competitive Bid Quote Request
that does not conform substantially to the form of Exhibit C-1
hereto shall be rejected, and the Competitive Bid Option Agent shall promptly
notify the Borrower of such rejection by telecopy.

 

(c)                                  Invitation
for Competitive Bid Quotes. 
Promptly after receipt (and in any event before the close of business on
the same Business Day) of a Competitive Bid Quote

 

29

 

Request that is
not rejected pursuant to Section 2.17(b), the Competitive Bid
Option Agent shall send to each of the Lenders by telecopy an Invitation for
Competitive Bid Quotes substantially in the form of Exhibit C-2
hereto, which shall constitute an invitation by the Borrower to each Lender to
submit Competitive Bid Quotes offering to make the Competitive Bid Loans to
which such Competitive Bid Quote Request relates in accordance with this Section 2.17.

 

(d)                                 Submission
and Contents of Competitive Bid Quotes.

 

(i)                                     Each
Lender may, in its sole discretion, submit a Competitive Bid Quote containing
an offer or offers to make Competitive Bid Loans in response to any Invitation
for Competitive Bid Quotes.  Each
Competitive Bid Quote must comply with the requirements of this Section 2.17(d)
and must be submitted to the Competitive Bid Option Agent by telex or telecopy
at its offices not later than (a) 2:00 p.m. (Chicago time) at least four
(4) Business Days prior to the proposed Borrowing Date, in the case of a
request for a Competitive LIBOR Margin or (b) 9:00 a.m. (Chicago time) on
the proposed Borrowing Date, in the case of a request for an Absolute Rate (or,
in either case upon reasonable prior notice to the Lenders, such other time and
date as the Borrower and the Competitive Bid Option Agent may agree); provided
that Competitive Bid Quotes submitted by Bank One may only be submitted if Bank
One notifies the Borrower of the terms of the offer or offers contained therein
no later than 30 minutes prior to the latest time at which the relevant
Competitive Bid Quotes must be submitted by the other Lenders.  Subject to the Borrower’s compliance with
all other conditions to disbursement herein, any Competitive Bid Quote so made
shall be irrevocable except with the written consent of the Competitive Bid
Option Agent given on the instructions of the Borrower.

 

(ii)                                  Each
Competitive Bid Quote shall be in substantially the form of Exhibit C-3
hereto and shall in any case specify:

 

(a)                                  the
proposed Borrowing Date and the proposed Interest Period, which shall be the
same as that set forth in the applicable Invitation for Competitive Bid Quotes,

 

(b)                                 the
principal amount of the Competitive Bid Loan for which each such offer is being
made, which principal amount (1) may be greater than, less than or equal
to the Commitment of the quoting Lender, (2) must be at least $10,000,000
and an integral multiple of $1,000,000, and (3) may not exceed the
principal amount of Competitive Bid Loans for which offers are requested,

 

(c)                                  as
applicable, the Competitive LIBOR Margin and Absolute Rate offered for each
such Competitive Bid Loan, and

 

(d)                                 the
identity of the quoting Lender.

 

(iii)                               The
Competitive Bid Option Agent shall reject any Competitive Bid Quote that:

 

30

 

(a)                                  is
not substantially in the form of Exhibit C-3 hereto or does not
specify all of the information required by Section 2.17(d)(ii),

 

(b)                                 contains
a minimum amount or other qualifying, conditional or similar language, other
than any such language contained in Exhibit C-3 hereto,

 

(c)                                  proposes
terms other than or in addition to those set forth in the applicable Invitation
for Competitive Bid Quotes, or

 

(d)                                 arrives
after the time set forth in Section 2.17(d)(i).

 

If any Competitive Bid Quote shall be rejected
pursuant to this Section 2.17(d)(iii), then the Competitive Bid
Option Agent shall notify the relevant Lender of such rejection as soon as
practical.

 

(e)                                  Notice
to Borrower.  The Competitive Bid
Option Agent shall promptly notify the Borrower of the terms (i) of any
Competitive Bid Quote submitted by a Lender that is in accordance with Section 2.17(d)
and (ii) of any Competitive Bid Quote that amends, modifies or is otherwise
inconsistent with a previous Competitive Bid Quote submitted by such Lender
with respect to the same Competitive Bid Quote Request.  Any such subsequent Competitive Bid Quote
shall be disregarded by the Competitive Bid Option Agent unless such subsequent
Competitive Bid Quote specifically states that it is submitted solely to
correct a manifest error in such former Competitive Bid Quote.  The Competitive Bid Option Agent’s notice to
the Borrower shall specify the aggregate principal amount of Competitive Bid
Loans for which offers have been received for each Interest Period specified in
the related Competitive Bid Quote Request and the respective principal amounts
and Competitive LIBOR Margins or Absolute Rate, as the case may be, so offered.

 

(f)                                    Acceptance
and Notice by Borrower.  Not later
than (i) 10:00 a.m. (Chicago time) at least three (3) Business Days prior
to the proposed Borrowing Date in the case of a request for a Competitive LIBOR
Margin or (ii) 10:00 a.m. (Chicago time) on the proposed Borrowing Date,
in the case of a request for an Absolute Rate (or, in either case upon
reasonable prior notice to the Lenders, such other time and date as the
Borrower and the Competitive Bid Option Agent may agree), the Borrower shall
notify the Competitive Bid Option Agent of its acceptance or rejection of the
offers so notified to it pursuant to Section 2.17(e); provided,
however, that the failure by the Borrower to give such notice to the
Competitive Bid Option Agent shall be deemed to be a rejection of all such
offers.  In the case of acceptance, such
notice (a “Competitive Bid Borrowing Notice”) shall specify the
aggregate principal amount of offers for each Interest Period that are
accepted.  The Borrower may accept any
Competitive Bid Quote in whole or in part (subject to the terms of Section 2.17(d)(iii)),
provided that:

 

(i)                                     the
aggregate principal amount of all Competitive Bid Loans to be disbursed on a
given Borrowing Date may not exceed the applicable amount set forth in the
related Competitive Bid Quote Request,

 

(ii)                                  acceptance
of offers may only be made on the basis of ascending Competitive LIBOR Margins
or Absolute Rates, as the case may be, and

 

31

 

(iii)                               the
Borrower may not accept any offer that is described in Section 2.17(d)(iii)
or that otherwise fails to comply with the requirements of this Agreement.

 

(g)                                 Allocation
by Administrative Agent.  If offers
are made by two (2) or more Lenders with the same Competitive LIBOR Margins or
Absolute Rates, as the case may be, for a greater aggregate principal amount
than the amount in respect of which offers are accepted for the related
Interest Period, the principal amount of Competitive Bid Loans in respect of
which such offers are accepted shall be allocated by the Competitive Bid Option
Agent among such Lenders as nearly as possible (in such multiples, not greater
than $1,000,000, as the Competitive Bid Option Agent may deem appropriate) in
proportion to the aggregate principal amount of such offers.  Allocations by the Competitive Bid Option
Agent of the amounts of Competitive Bid Loans shall be conclusive in the
absence of manifest error.  The
Competitive Bid Option Agent shall promptly, but in any event on the same
Business Day, notify the Administrative Agent and each Lender of its receipt of
a Competitive Bid Borrowing Notice and the principal amounts of the Competitive
Bid Loans allocated to each participating Lender.

 

(h)                                 Administration
Fee.  The Borrower hereby agrees to
pay to the Competitive Bid Option Agent an administration fee in an amount
agreed to by the Borrower and the Competitive Bid Option Agent from time to
time for each Competitive Bid Quote Request transmitted by the Borrower to the
Competitive Bid Option Agent pursuant to Section 2.17(b).  Such administration fee shall be payable
monthly in arrears on the first Business Day of each month and on the Maturity
Date (or such earlier date on which the Aggregate Commitment shall terminate or
be cancelled) for any period then ending for which such fee, if any, shall not
have been theretofore paid.

 

(i)                                     Other
Terms.  Any Competitive Bid Loan
shall not reduce the Commitment of the Lender making such Competitive Bid Loan,
and each such Lender shall continue to be obligated to fund its Percentage of
all pro rata Advances under the Facility. 
In no event shall the aggregate amount of all Competitive Bid Loans at
any time exceed fifty percent (50%) of the then Aggregate Commitment.  Competitive Bid Loans may not be continued
and, if not repaid at the end of the Interest Period applicable thereto, shall
(subject to the conditions set forth in this Agreement) be replaced by new
Competitive Bid Loans made in accordance with this Section 2.17 or
by ratable Advances in accordance with Section 2.11.

 

2.18                           Voluntary Reduction of Aggregate
Commitment Amount.  Upon at
least three (3) Business Days prior irrevocable written notice (or telephonic
notice promptly confirmed in writing) to the Administrative Agent, Borrower
shall have the right, without premium or penalty, to terminate the Aggregate
Commitment in whole or in part provided that (a) Borrower may not reduce the
Aggregate Commitment below the Allocated Facility Amount at the time of such
requested reduction, and (b) any such partial termination shall be in the
minimum aggregate amount of Fifty Million Dollars ($50,000,000.00) or any
integral multiple of Fifty Million Dollars ($50,000,000.00) in excess
thereof.  Any partial termination of the
Aggregate Commitment shall be applied pro rata to each Lender’s Commitment.

 

2.19                           The Pledge. 
The Borrower and The Hughes Corporation have executed and delivered the
Reaffirmation of Pledge Agreement in the form of Exhibit M attached hereto to
the

 

32

 

Lenders and delivered
the Pledged Stock to the Administrative Agent for the purpose of providing
further security for the full payment and performance of all of the
Obligations.  The Pledge shall remain in
full force and effect until such time as the “Limitation End Date” (as defined
in Paragraph 1 of the Limited Guaranty) has occurred and the Limited
Guarantors have become fully liable under the Limited Guaranty.  At the request of the Administrative Agent
made after the Limitation End Date has occurred, the Lenders shall, at the
Borrower’s sole cost and expense, execute and deliver to the Borrower an
instrument terminating and releasing the Pledge, and the Administrative Agent
shall deliver to the Borrower all of the Pledged Stock.

 

2.20                           Swing
Line Loans.

 

2.20.1                  Amount of
Swing Line Loans.  Upon the
satisfaction of the conditions precedent set forth in Section 5.2 and, if such
Swing Line Loan is to be made on the date of the initial Advance hereunder, the
satisfaction of the conditions precedent set forth in Section 5.1 as well, from
and including the date of this Agreement and prior to the Maturity Date, each
Swing Line Lender agrees, on the terms and conditions set forth in this
Agreement, to make Swing Line Loans to the Borrower from time to time in an
aggregate principal amount not to exceed, when aggregated with all other
outstanding Swing Line Loans, the Swing Line Commitment, provided that the Allocated
Facility Amount shall not at any time exceed the Aggregate Commitment, provided
further that at no time shall the sum of (i) a Swing Line Lender’s
outstanding Loans which are not Swing Line Loans, plus (ii) such Swing Line
Lender’s Percentage of all Swing Line Loans made by such Swing Line Lender or
by any other Swing Line Lender, plus (iii) all then-current Facility Letter of
Credit Obligations of such Swing Line Lender, exceed such Swing Line Lender’s
Commitment at such time; and provided further that at no time shall the
sum of  (i) all Swing Line Loans then
outstanding made by Manufacturers and Traders Trust Company, plus (ii) such
Lender’s Percentage of all other Advances (excluding Competitive Bid Loans),
plus (iii) such Lender’s Percentage of all Swing Line Loans then outstanding
made by Lenders other than such Lender, plus (iv) all then-current
Facility Letter of Credit Obligations of such Lender, exceed Manufacturers and
Traders Trust Company’s Commitment at such time.  Subject to the terms of this Agreement, the Borrower may borrow,
repay and reborrow Swing Line Loans at any time prior to the Maturity Date.

 

2.20.2                  Borrowing
Notice.  The Borrower shall deliver
to the Administrative Agent and whichever Swing Line Lender Borrower has
elected to borrow from an irrevocable notice (a “Swing Line Borrowing Notice”)
not later than 1:00 p.m. (Chicago time) on the Borrowing Date of each Swing
Line Loan, specifying (i) the applicable Borrowing Date (which date shall be a
Business Day), and (ii) the aggregate amount of the requested Swing Line Loan
which shall be an amount that is a multiple of $100,000 and not less than $1,000,000.  The Swing Line Loans shall bear interest at
the Alternate Base Rate.  Not later than
2:00 p.m. (Chicago time) on the Borrowing Date of each Swing Line Loan, (i) if the
making of such Swing Line Loan will result in a violation of Section 2.20.1 of
this Agreement, the Administrative Agent shall inform such Swing Line Lender of
such violation and (ii) if the requested Swing Line Loan will not result in any
such violation, the Administrative Agent shall determine the Alternate Base
Rate applicable to the requested Alternate Base Rate Advance and inform such
Swing Line Lender of the same.

 

33

 

2.20.3                  Making of
Swing Line Loans.  Not later than
3:00 p.m. (Chicago time) on the applicable Borrowing Date, the applicable Swing
Line Lender shall make available the Swing Line Loan, in funds immediately
available in Chicago, to the Administrative Agent at its address specified
pursuant to Article XV.  The
Administrative Agent will promptly make the funds so received from the
applicable Swing Line Lender available to the Borrower on the Borrowing Date at
the Administrative Agent’s aforesaid address.

 

2.20.4                  Repayment of
Swing Line Loans.  Each Swing Line
Loan shall be paid in full by the Borrower on or before the fifth (5th)
Business Day after the Borrowing Date for such Swing Line Loan.  If Borrower does not so repay any such Swing
Line Loan on or before such fifth (5th) Business Day, then on or
after the sixth (6th) Business Day after the Borrowing Date of any
such Swing Line Loan, the applicable Swing Line Lender may deliver written
notice to the Administrative Agent stating that the Administrative Agent must
require each Lender (including such Swing Line Lender) to make a Loan in the
amount of such Lender’s Percentage of such Swing Line Loan (including, without
limitation, any interest accrued and unpaid thereon), for the purpose of
repaying such Swing Line Loan.  If the
Administrative Agent receives any such notice prior to 1:00 p.m. (Chicago time)
on any Business Day, then prior to the end of such Business Day (Chicago time),
it shall notify the Lenders that the Lenders must make such Loans.  Not later than noon (Chicago time) on the
date of the next Business Day following the date of any such notice received pursuant
to this Section 2.20.4, each Lender shall make available its required Loan, in
funds immediately available in Chicago to the Administrative Agent at its
address specified pursuant to Article XV. 
Such Loans to repay Swing Line Loans made pursuant to this Section
2.20.4 shall initially be Alternate Base Rate Advances and thereafter may be
continued as Alternate Base Rate Advances or converted into LIBOR Advances in
the manner provided in Section 2.11 and subject to the other conditions and
limitations set forth in this Article II. 
Unless a Lender shall have notified a Swing Line Lender and the
Administrative Agent, at least one Business Day prior to its making any
particular Swing Line Loan, that any applicable condition precedent set forth
in Section 5.1 or 5.2 had not then been satisfied, such Lender’s obligation to
make Loans pursuant to this Section 2.20.4 to repay such Swing Line Loan shall
be unconditional, continuing, irrevocable and absolute and shall not be
affected by any circumstances, including, without limitation, (a) any set-off,
counterclaim, recoupment, defense or other right which such Lender may have
against the Administrative Agent, such Swing Line Lender or any other Person,
(b) the occurrence or continuance of a Default or Event of Default, or (c) any
adverse change in the condition (financial or otherwise) of the Borrower or the
Guarantors.  In the event that any
Lender fails to make payment to the Administrative Agent of any amount due
under this Section 2.20.4, the Administrative Agent shall be entitled to
receive, retain and apply against such obligation the principal and interest
otherwise payable to such Lender hereunder until the Administrative Agent
receives such payment from such Lender or such obligation is otherwise fully satisfied.  In addition to the foregoing, if for any
reason any Lender fails to make payment to the Administrative Agent of any
amount due under this Section 2.20.4, such Lender shall be deemed, at the
option of the Administrative Agent, to have unconditionally and irrevocably
purchased from the applicable Swing Line Lender, without recourse or warranty,
an undivided interest and participation in the applicable Swing Line Loan in
the amount of such Loan, and such interest and participation may be recovered from
such Lender together with interest thereon at the Federal Funds Effective Rate
for each day during the period commencing on the date of demand and ending on
the date such amount is received.  On

 

34

 

the Maturity Date, the Borrower shall repay in full
the outstanding principal balance of any Swing Line Loans then outstanding.

 

ARTICLE III.

THE LETTER OF CREDIT
SUBFACILITY

 

3.1                                 Obligation to Issue.  Subject to the terms and conditions of this
Agreement and in reliance upon the representations and warranties of the
Borrower and the Guarantors herein set forth, Bank One hereby agrees, and any
other of the Lenders that expressly elects in writing to do so may hereafter
agree, to issue for the account of Borrower, as an “Issuing Bank”, one or more
Facility Letters of Credit in accordance with this Article III,
from time to time during the period commencing on the Agreement Execution Date
and ending on a date one Business Day prior to the Maturity Date.  The Borrower may select any one of the
Issuing Banks to be the Issuing Bank with respect to one or more Facility
Letters of Credit.  The Initial Facility
Letters of Credit previously issued for the benefit of Borrower by Bank One,
one of the Lenders, are hereby acknowledged to be Facility Letters of Credit
properly issued hereunder as the Agreement Execution Date by an Issuing Bank
entitled to all the rights and benefits hereunder (other than payment of an
Issuance Fee) and with respect to which each Lender will receive Facility
Letter of Credit Fees while such Facility Letters of Credit remain outstanding
and the Borrower will pay all Reimbursement Obligations related thereto.

 

3.2                                 Types and Amounts. The Issuing Bank shall not
have any obligation to:

 

(i)                                     issue
any Facility Letter of Credit if the aggregate maximum amount then available
for drawing under Letters of Credit issued by such Issuing Bank, after giving
effect to the Facility Letter of Credit requested hereunder, shall exceed any
“loans-to-a-single-borrower” or other lending limit imposed by law or
regulation upon such Issuing Bank;

 

(ii)                                  issue any Facility Letter of Credit if, after
giving effect thereto, either (1) the then applicable Allocated Facility Amount
would exceed the then current Aggregate Commitment, or (2) the Facility
Letter of Credit Obligations would exceed $25,000,000; or

 

(iii)                               issue
any Facility Letter of Credit having an expiration date, or containing an
automatic extension provision to extend such date, to a date which is after the
Business Day immediately preceding the Maturity Date.

 

3.3                                 Conditions.
In addition to being subject to the satisfaction of the conditions contained in
Article V hereof, the obligation of an Issuing Bank to issue any
Facility Letter of Credit is subject to the satisfaction in full of the
following conditions:

 

(i)                                     the
Borrower shall have delivered to such Issuing Bank at such times and in such
manner as such Issuing Bank may reasonably prescribe such documents and
materials as may be reasonably required pursuant to the terms of the proposed
Facility Letter of Credit (it being understood that if any inconsistency exists
between such documents and the Loan Documents, the terms

 

35

 

of the Loan Documents
shall control) and the proposed Facility Letter of Credit shall be reasonably
satisfactory to such Issuing Bank as to form and content;

 

(ii)                                  as
of the date of issuance, no order, judgment or decree of any court, arbitrator
or governmental authority shall purport by its terms to enjoin or restrain such
Issuing Bank from issuing the requested Facility Letter of Credit and no law,
rule or regulation applicable to such Issuing Bank and no request or directive
(whether or not having the force of law) from any governmental authority with
jurisdiction over such Issuing Bank shall prohibit or request that such Issuing
Bank refrain from the issuance of Letters of Credit generally or the issuance
of the requested Facility Letter or Credit in particular; and

 

(iii)                               there
shall not exist any Default or Event of Default.

 

3.4                                 Procedure for Issuance of Facility
Letters of Credit.

 

(a)                                  Borrower
shall give the Issuing Bank it selects and the Administrative Agent at least
two (2) Business Days’ prior written notice of any requested issuance of a
Facility Letter of Credit under this Agreement (a “Letter of Credit Request”),
a copy of which shall be sent immediately to all Lenders (except that, in lieu
of such written notice, the Borrower may give such Issuing Bank and the
Administrative Agent telephonic notice of such request if confirmed in writing
by delivery to such Issuing Bank and the Administrative Agent (i) immediately
(A) of a telecopy of the written notice required hereunder which has been
signed by an authorized officer, or (B) of a telex containing all information
required to be contained in such written notice and (ii) promptly (but in no
event later than the requested date of issuance) of the written notice required
hereunder containing the original signature of an authorized officer); such
notice shall be irrevocable and shall specify:

 

(1)                                  the
stated amount of the Facility Letter of Credit requested (which stated amount
shall not be less than $50,000);

 

(2)                                  the
effective date (which day shall be a Business Day) of issuance of such
requested Facility Letter of Credit (the “Issuance Date”);

 

(3)                                  the
date on which such requested Facility Letter of Credit is to expire;

 

(4)                                  the
purpose for which such Facility Letter of Credit is to be issued;

 

(5)                                  the
Person for whose benefit the requested Facility Letter of Credit is to be
issued; and

 

(6)                                  any
special language required to be included in the Facility Letter of Credit.

 

At the time such request is made, the Borrower shall
also provide the Administrative Agent and such Issuing Bank with a copy of the
form of the Facility Letter of Credit that the Borrower is requesting be
issued.  Such notice, to be effective,
must be received by such Issuing Bank and the Administrative Agent not later
than 2:00 p.m. (Chicago time) on the last Business Day on which notice can be
given under this Section 3.4(a).

 

36

 

(b)                                 Subject
to the terms and conditions of this Article III and provided that the
applicable conditions set forth in Article V hereof have been
satisfied, such Issuing Bank shall, on the Issuance Date, issue a Facility
Letter of Credit on behalf of the Borrower in accordance with the Letter of
Credit Request and such Issuing Bank’s usual and customary business practices
unless such Issuing Bank has actually received (i) written notice from the
Borrower specifically revoking the Letter of Credit Request with respect to
such Facility Letter of Credit, (ii) written notice from a Lender, which
complies with the provisions of Section 3.6(a), or (iii) written or
telephonic notice from the Administrative Agent stating that the issuance of
such Facility Letter of Credit would violate Section 3.2.

 

(c)                                  Such
Issuing Bank shall give the Administrative Agent (who shall promptly notify
Lenders) and the Borrower written or telex notice, or telephonic notice
confirmed promptly thereafter in writing, of the issuance of a Facility Letter
of Credit (the “Issuance Notice”).

 

(d)                                 Such
Issuing Bank shall not extend or amend any Facility Letter of Credit unless the
requirements of this Section 3.4 are met as though a new Facility Letter
of Credit was being requested and issued.

 

3.5                                 Reimbursement Obligations; Duties
of Issuing Bank.

 

(a)                                  An
Issuing Bank shall promptly notify the Borrower and the Administrative Agent
(who shall promptly notify Lenders) of any draw under a Facility Letter of
Credit issued by such Issuing Bank.  Any
such draw shall constitute an Advance of the Facility in the amount of the
Reimbursement Obligation with respect to such Facility Letter of Credit and
shall bear interest from the date of the relevant drawing(s) under the
pertinent Facility Letter of Credit at the Alternate Base Rate unless a
different rate is selected by Borrower in accordance with Section 2.11
hereof; provided that if a Monetary Default or an Event of Default exists at
the time of any such drawing(s), then the Borrower shall reimburse an Issuing
Bank for drawings under any Facility Letter of Credit issued by such Issuing
Bank no later than the next succeeding Business Day after the payment by such
Issuing Bank and until repaid such Reimbursement Obligation shall bear interest
at the Default Rate.

 

(b)                                 Any
action taken or omitted to be taken by an Issuing Bank under or in connection
with any Facility Letter of Credit, if taken or omitted in the absence of
willful misconduct or gross negligence, shall not put such Issuing Bank under
any resulting liability to any Lender or, provided that such Issuing Bank has
complied with the procedures specified in Section 3.4 and such
Lender has not given a notice contemplated by Section 3.6(a) that
continues in full force and effect, relieve that Lender of its obligations
hereunder to such Issuing Bank. In determining whether to pay under any
Facility Letter of Credit, an Issuing Bank shall have no obligation relative to
the Lenders other than to confirm that any documents required to be delivered
under such Letter of Credit appear to have been delivered in compliance, and
that they appear to comply on their face, with the requirements of such Letter
of Credit.

 

37

 

3.6                                 Participation.

 

(a)                                  Immediately
upon issuance by an Issuing Bank of any Facility Letter of Credit in accordance
with the procedures set forth in Section 3.4, each Lender shall be
deemed to have irrevocably and unconditionally purchased and received from such
Issuing Bank, without recourse, representation or warranty except as expressly
provided for herein, an undivided interest and participation equal to such
Lender’s Percentage in such Facility Letter of Credit (including, without
limitation, all unreimbursed disbursements under such Facility Letter of
Credit) and all related rights hereunder and under the Guaranty and other Loan
Documents; provided that a Letter of Credit issued by an Issuing Bank
shall not be deemed to be a Facility Letter of Credit for purposes of this Section
3.6 if such Issuing Bank shall have received written notice from any Lender
on or before the Business Day prior to the date of its issuance of such Letter
of Credit that one or more of the conditions contained in Section 5.2
is not then satisfied, and in the event such Issuing Bank receives such a
notice it shall have no further obligation to issue any Facility Letter of
Credit until such notice is withdrawn by that Lender or such Issuing Bank
receives a notice from the Administrative Agent that such condition has been
effectively waived in accordance with the provisions of this Agreement.  Each Lender’s obligation to make further
Loans to Borrower (other than any payments such Lender is required to make
under subparagraph (b) below) or to purchase an interest from any Issuing Bank
in any subsequent letters of credit issued by such Issuing Bank on behalf of
Borrower shall be reduced by an amount equal to such Lender’s Percentage of
each Facility Letter of Credit outstanding.

 

(b)                                 In
the event that an Issuing Bank makes any payment under any Facility Letter of
Credit and the Borrower shall not have repaid such amount to such Issuing Bank
pursuant to Section 3.7 hereof, such Issuing Bank shall promptly notify
the Administrative Agent, which shall promptly notify each Lender of such
failure, and each Lender shall promptly and unconditionally pay to the
Administrative Agent for the account of such Issuing Bank the amount of such
Lender’s Percentage of the unreimbursed amount of such payment, and the
Administrative Agent shall promptly pay such amount to such Issuing Bank.  A Lender’s payments of its Percentage of
such unreimbursed disbursement as aforesaid shall be deemed to be a Loan by
such Lender and shall constitute outstanding principal under such Lender’s
Note.  The failure of any Lender to make
available to the Administrative Agent for the account of such Issuing Bank its
Percentage of the unreimbursed amount of any such payment shall not relieve any
other Lender of its obligation hereunder to make available to the
Administrative Agent for the account of such Issuing Bank its Percentage of the
unreimbursed amount of any payment on the date such payment is to be made, but
no Lender shall be responsible for the failure of any other Lender to make
available to the Administrative Agent its Percentage of the unreimbursed amount
of any payment on the date such payment is to be made.  Any Lender which fails to make any payment
required pursuant to this Section 3.6(b) shall be deemed to be a
Defaulting Lender hereunder.  In the
event that any Loan cannot for any reason be made on the date otherwise
required above (including, without limitation, as a result of the commencement
of a proceeding under the federal Bankruptcy Code with respect to the
Borrower), then each Lender shall forthwith purchase (as of the date such
borrowing would otherwise have occurred) from such Issuing Bank a participation
interest in the unreimbursed disbursement in an amount equal to such Lender’s
Percentage thereof.

 

(c)                                  Whenever
an Issuing Bank receives a payment on account of a Reimbursement Obligation,
including any interest thereon, such Issuing Bank shall promptly pay to the
Administrative Agent and the Administrative Agent shall promptly pay to each
Lender

 

38

 

which has funded
its participating interest therein, in immediately available funds, an amount
equal to such Lender’s Percentage thereof.

 

(d)                                 Upon
the request of the Administrative Agent or any Lender, any Issuing Bank shall
furnish to such Administrative Agent or Lender copies of any Facility Letter of
Credit to which such Issuing Bank is party and such other documentation as may
reasonably be requested by the Administrative Agent or Lender.

 

(e)                                  The
obligations of a Lender to make payments to the Administrative Agent for the
account of an Issuing Bank with respect to a Facility Letter of Credit shall be
absolute, unconditional and irrevocable, not subject to any counterclaim,
set-off, qualification or exception whatsoever other than a failure of any such
Issuing Bank to comply with the terms of this Agreement relating to the
issuance of such Facility Letter of Credit, and such payments shall be made in
accordance with the terms and conditions of this Agreement under all
circumstances.

 

3.7                                 Payment of Reimbursement Obligations.

 

(a)                                  The
Borrower agrees to pay to the Administrative Agent for the account of any
Issuing Bank the amount of all Advances for Reimbursement Obligations, (as
described in Section 3.5(a)), interest and other amounts payable to such
Issuing Bank under or in connection with any Facility Letter of Credit issued
by such Issuing Bank when due, irrespective of any claim, set-off, defense
or other right which the Borrower may have at any time against any Issuing Bank
or any other Person, under all circumstances, including without limitation any
of the following circumstances:

 

(i)                                     any
lack of validity or enforceability of this Agreement or any of the other Loan
Documents;

 

(ii)                                  the
existence of any claim, setoff, defense or other right which the Borrower may
have at any time against a beneficiary named in a Facility Letter of Credit or
any transferee of any Facility Letter of Credit (or any Person for whom any
such transferee may be acting), the Administrative Agent, any Issuing Bank, any
Lender, or any other Person, whether in connection with this Agreement, any
Facility Letter of Credit, the transactions contemplated herein or any
unrelated transactions (including any underlying transactions between the
Borrower and the beneficiary named in any Facility Letter of Credit);

 

(iii)                               any
draft, certificate or any other document presented under the Facility Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
of any statement therein being untrue or inaccurate in any respect;

 

(iv)                              the
surrender or impairment of any security for the performance or observance of
any of the terms of any of the Loan Documents; or

 

(v)                                 the
occurrence of any Default or Event of Default.

 

(b)                                 In
the event any payment by the Borrower received by an Issuing Bank or the
Administrative Agent with respect to a Facility Letter of Credit and
distributed by the

 

39

 

Administrative
Agent to the Lenders on account of their participations is thereafter set
aside, avoided or recovered from the Administrative Agent or such Issuing Bank
in connection with any receivership, liquidation, reorganization or bankruptcy
proceeding, each Lender which received such distribution shall, upon demand by
the Administrative Agent, contribute such Lender’s Percentage of the amount set
aside, avoided or recovered together with interest at the rate required to be
paid by such Issuing Bank or the Administrative Agent upon the amount required
to be repaid by such Issuing Bank or the Administrative Agent.

 

3.8                                 Compensation for Facility Letters
of Credit.

 

(a)                                  The
Borrower shall pay to the Administrative Agent, for the ratable account of the
Lenders (including any Issuing Bank with respect to such Facility Letter of
Credit), based upon the Lenders’ respective Percentages, a per annum fee (the “Facility
Letter of Credit Fee”) with respect to each Facility Letter of Credit that
is equal to the LIBOR Applicable Margin in effect from time to time
times the amount of such Facility Letters of Credit from time to
time.  The Facility Letter of Credit Fee
relating to any Facility Letter of Credit shall be due and payable in arrears
on the first Business Day of each calendar quarter following the issuance of
any Facility Letter of Credit and, to the extent any such fees are then due and
unpaid, on the Maturity Date.  The
Administrative Agent shall promptly remit such Facility Letter of Credit Fees,
when paid, to the other Lenders in accordance with their Percentages
thereof.  The Borrower shall not have
any liability to any Lender for the failure of the Administrative Agent to
promptly deliver funds to any such Lender and shall be deemed to have made all
such payments on the date the respective payment is made by the Borrower to the
Administrative Agent, provided such payment is received by the time specified
in Section 2.12 hereof.

 

(b)                                 The
Borrower shall pay to an Issuing Bank solely for such Issuing Bank’s own
account an issuance fee (the “Issuance Fee”) with respect to each
Facility Letter of Credit issued by such Issuing Bank that is equal to the
product of (i) 0.10% per annum, (ii) the face amount of such Facility
Letter of Credit and (iii) the number of years and/or partial years that
such Facility Letter of Credit is outstanding expressed as a decimal.  The Issuance Fee relating to the period from
the issuance of any Facility Letter of Credit to any stated expiration date thereof
shall be due and payable upon the issuance of such Facility Letter of Credit
and an additional Issuance Fee shall be due and payable upon the Effective Date
of any stated extension period thereof. 
The Issuing Bank shall also be entitled to receive its reasonable
out-of-pocket costs and the Issuing Bank’s standard charges of issuing,
amending and servicing its Facility Letters of Credit and processing draws
thereunder.

 

3.9                                 Letter of Credit Collateral Account.  The Borrower hereby agrees that it will,
until the Maturity Date, maintain a special collateral account (the “Letter
of Credit Collateral Account”) at the Administrative Agent’s office at the
address specified pursuant to Article XV, in the name of the
Borrower but under the sole dominion and control of the Administrative Agent,
for the benefit of the Lenders, and in which the Borrower shall have no
interest other than as set forth in Section 11.1.  In addition to the foregoing, the Borrower
hereby grants to the Administrative Agent, for the benefit of the Lenders, a
security interest in and to the Letter of Credit Collateral Account and any
funds that may hereafter be on deposit in such account, including income earned
thereon and proceeds thereof.  The Lenders
acknowledge and agree that

 

40

 

the Borrower has
no obligation to fund the Letter of Credit Collateral Account unless and until
so required under Section 11.1 hereof.

 

ARTICLE IV.

CHANGE IN CIRCUMSTANCES

 

4.1                                 Yield Protection.  If the adoption of or change in any law or any governmental or
quasi-governmental rule, regulation, policy, guideline or directive (whether or
not having the force of law), or any interpretation thereof, or the compliance
of any Lender therewith,

 

(i)                                     subjects
any Lender or any applicable Lending Installation to any tax, duty, charge or
withholding on or from payments due from Borrower (excluding federal and state
taxation of the overall net income of any Lender or applicable Lending
Installation), or changes the basis of such taxation of payments to any Lender
in respect of its Advances, its interest in the Facility Letters of Credit or
other amounts due it hereunder, or

 

(ii)                                  imposes
or increases or deems applicable any reserve, assessment, insurance charge,
special deposit or similar requirement against assets of, deposits with or for
the account of, or credit extended by, any Lender or any applicable Lending
Installation (other than reserves and assessments taken into account in
determining the interest rate applicable to LIBOR Advances), or

 

(iii)                               imposes
any other condition, and the result is to increase the cost of any Lender or
any applicable Lending Installation of making, funding or maintaining loans or
reduces any amount receivable by any Lender or any applicable Lending
Installation in connection with loans, or requires any Lender or any applicable
Lending Installation to make any payment calculated by reference to the amount
of loans held, Facility Letters of Credit issued or participated in or interest
received by it, by an amount deemed material by such Lender,

 

then, within fifteen (15) days of
demand by such Lender, Borrower shall pay such Lender that portion of such
increased expense incurred or reduction in an amount received which such Lender
determines is attributable to making, funding and maintaining its Advances and
its Commitment.

 

4.2                                 Changes in Capital Adequacy
Regulations.  If a Lender
determines the amount of capital required or expected to be maintained by such
Lender, any Lending Installation of such Lender or any corporate entity
controlling such Lender is increased as a result of a Change (as defined
below), then, within fifteen (15) days of demand by such Lender, Borrower shall
pay such Lender the amount necessary to compensate for any shortfall in the
rate of return on the portion of such increased capital which such Lender
determines is attributable to this Agreement, its Advances, its interest in the
Facility Letters of Credit, or its obligation to make Advances hereunder or
participate in or issue Facility Letters of Credit hereunder (after taking into
account such Lender’s policies as to capital adequacy).  “Change” means (i) any change
after the date of

 

41

 

this Agreement in
the Risk-Based Capital Guidelines (as defined below) or (ii) any adoption
of or change in any other law, governmental or quasi-governmental rule,
regulation, policy, guideline, interpretation, or directive (whether or not
having the force of law) after the date of this Agreement which affects the
amount of capital required or expected to be maintained by any Lender or any
Lending Installation or any corporation controlling any Lender.  “Risk-Based Capital Guidelines” means
(i) the risk-based capital guidelines in effect in the United States on
the date of this Agreement, including transition rules, and (ii) the
corresponding capital regulations promulgated by regulatory authorities outside
the United States implementing the July 1988 report of the Basle Committee on
Banking Regulation and Supervisory Practices Entitled “International
Convergence of Capital Measurements and Capital Standards”, including
transition rules, and any amendments to such regulations adopted prior to the
date of this Agreement.

 

4.3                                 Suspension of LIBOR Advances.  If prior to the first day of any Interest
Period, (a) the Administrative Agent shall have received notice from any Lender
that such Lender has determined that maintenance of any of its LIBOR Loans at a
suitable Lending Installation would violate any applicable law, rule,
regulation or directive of any Governmental Authority having jurisdiction; (b)
the Administrative Agent shall have determined (which determination shall be
conclusive and binding upon the Borrower) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Adjusted LIBOR Rate for such Interest Period; (c) the
Administrative Agent shall have received notice from the Majority Lenders that
the Adjusted LIBOR Rate determined for such Interest Period will not adequately
and fairly reflect the cost to such Lenders (as conclusively certified by such
Lenders) of making or maintaining their affected Advances during such Interest
Period; (d) the Administrative Agent shall have received notice from the
Majority Lenders that such Lenders are unable to acquire funding in a
reasonable manner so as to make available LIBOR Advances in the amount and for
the Interest Period requested, the Administrative Agent shall give telecopy or
telephonic notice thereof to the Borrower and the Lenders as soon as
practicable thereafter.  If such notice
is given (x) any LIBOR Advances requested to be made on the first day of such
Interest Period shall be made as Alternate Base Rate Advances, (y) any Advances
that were to have been converted on the first day of such Interest Period to
LIBOR Advances shall be continued as Alternate Base Rate Advances and (z) any
outstanding LIBOR Advances shall be converted, on the last day of the
then-current Interest Period, to Alternate Base Rate Advances.  Until such notice has been withdrawn by the
Administrative Agent, no further LIBOR Advances shall be made or continued as
such, nor shall the Borrower have the right to convert Alternate Base Rate
Advances to LIBOR Advances.  Without in
any way affecting the Borrower’s obligation to pay compensation actually
claimed by a Lender under Section 4.2 or to suspend LIBOR Advances
and convert LIBOR Advances to Alternate Base Rate Advances if so required by a
Lender under Section 4.3(a), the Borrower shall have the right to
replace any Lender which has demanded such compensation or caused such
suspension and conversion provided that Borrower notifies such Lender in
writing that it has elected to replace such Lender and notifies such Lender and
the Administrative Agent of the identity of the proposed replacement Lender not
more than six (6) months after the Borrower notified such Lender that the
Borrower proposed to replace such Lender. 
The Lender being replaced shall, upon receipt of all amounts due to it
hereunder, assign its Percentage of the Aggregate Commitment and its rights and
obligations under this Facility to the replacement Lender in accordance with
the requirements of Section 13.3 hereof (except that no assignment
fee shall be due from such assigning Lender to

 

42

 

the Administrative
Agent) and the replacement Lender shall assume such Percentage of the Aggregate
Commitment and the related obligations under this Facility prior to the
Maturity Date to be extended, all pursuant to an assignment agreement
substantially in the form of Exhibit I hereto.  The purchase by the replacement Lender shall
be at par (plus all accrued and unpaid interest and any other sums owed to such
Lender being replaced hereunder) which shall be paid to the Lender being
replaced upon the execution and delivery of the assignment.

 

4.4                                 Funding Indemnification.  If any payment of a ratable LIBOR Advance or
a Competitive Bid Loan occurs on a date which is not the last day of the
applicable Interest Period, whether because of acceleration, prepayment or
otherwise, or a ratable LIBOR Advance or a Competitive Bid Loan is not made on
the date specified by Borrower for any reason other than default by one or more
of the Lenders, or the Borrower fails to (i) continue a LIBOR Advance as a
LIBOR Advance after having given notice of continuation, (ii) convert an
Alternate Base Rate Advance to a LIBOR Advance after having given notice of a
conversion or (iii) prepay a LIBOR Advance after having given notice of
prepayment, the Borrower will indemnify each Lender for any loss or cost
incurred by such Lender resulting therefrom, including, without limitation, any
loss or cost in liquidating or employing deposits acquired to fund or maintain
the ratable LIBOR Advance or Competitive Bid Loan, as the case may be, and
shall pay to the Administrative Agent all such amounts for the account of each
such Lender.

 

4.5                                 Lender Statements; Survival of
Indemnity.  To the extent
reasonably possible, each Lender shall designate an alternate Lending
Installation with respect to its LIBOR Advances to reduce any liability of
Borrower to such Lender under Sections 4.1 and 4.2 or to
avoid the unavailability of a LIBOR Advance, so long as such designation is not
disadvantageous to such Lender in its sole discretion.  Each Lender shall deliver a written
statement of such Lender as to the amount due, if any, under Sections 4.1,
4.2 or 4.4 hereof.  Such
written statement shall set forth in reasonable detail the calculations upon
which such Lender determined such amount and shall be final, conclusive and
binding on Borrower in the absence of manifest error.  Determination of amounts payable under such Sections in
connection with a LIBOR Advance shall be calculated as though each Lender
funded its LIBOR Advance through the purchase of a deposit of the type and
maturity corresponding to the deposit used as a reference in determining the
Adjusted LIBOR Rate applicable to such Advance, whether in fact that is the
case or not.  Unless otherwise provided
herein, the amount specified in the written statement shall be payable on
demand after receipt by Borrower of the written statement.  The obligations of Borrower under Sections 4.1,
4.2 and 4.4 hereof shall survive payment of the Obligations and
termination of this Agreement.

 

ARTICLE V.

CONDITIONS PRECEDENT

 

5.1                                 Conditions Precedent to the Initial
Advance.  The Lenders shall not
be required to make the initial Advance hereunder, unless (i) the Borrower
shall have paid all fees then due and payable to the Lenders, the
Co-Syndication Agents, the Joint Lead Arrangers and the Administrative Agent
hereunder, (ii) all of the conditions set forth in Section 5.2
are satisfied, and (iii) the Borrower shall have furnished to the
Administrative Agent, in form and substance

 

43

 

satisfactory to
the Lenders and their counsel and with sufficient copies for the Lenders, the
following:

 

(a)                                  Articles
of Incorporation.  A copy of the
articles of incorporation of the Borrower and each Guarantor, each certified by
the appropriate Secretary of State or equivalent state official.

 

(b)                                 Bylaws.  A copy of the bylaws of the Borrower and
each Guarantor, including all amendments thereto, each certified by the
Secretary or an Assistant Secretary thereof as being in full force and effect
on the Agreement Execution Date.

 

(c)                                  Good
Standing Certificates.  A certified
copy of a certificate from the Secretary of State or equivalent state official
of the states where the Borrower and Guarantors are organized, dated as of the
most recent practicable date, showing the good standing of the Borrower and the
Guarantors.

 

(d)                                 Foreign
Qualification Certificates.  A
certified copy of a certificate from the Secretary of State or equivalent state
official of each state where the Borrower or a Guarantor maintains its
principal place of business, dated as of the most recent practicable date,
showing the qualification to transact business in such state as a foreign
corporation.

 

(e)                                  Resolutions.  A copy of a resolution or resolutions
adopted by the Board of Directors of the Borrower and each Guarantor, certified
by the Secretary or an Assistant Secretary of the Borrower and each Guarantor
as being in full force and effect on the Agreement Execution Date, authorizing
the Advances provided for herein and the execution, delivery and performance of
the Loan Documents to be executed and delivered by it hereunder.

 

(f)                                    Incumbency
Certificate.  A certificate, signed
by the Secretary or an Assistant Secretary of the Borrower and each Guarantor
and dated the Agreement Execution Date, as to the incumbency, and containing
the specimen signature or signatures, of the Persons authorized to execute and
deliver the Loan Documents to be executed and delivered by it hereunder.

 

(g)                                 Loan
Documents.  Originals of the Loan
Documents (in such quantities as the Lenders may reasonably request), duly
executed by authorized officers of the appropriate entity.

 

(h)                                 Opinion
of Borrower’s Counsel.  A written
opinion, dated the Agreement Execution Date, from Gordon H. Glenn, Senior Vice
President and General Counsel of the Borrower, the substance of such opinions
to be substantially in the form attached hereto as Exhibit E,
together with an Illinois enforceability opinion from the Administrative
Agent’s counsel.

 

(i)                                     Opinion
of Guarantors’ Counsel and Counsel to The Hughes Corporation.  Written opinions, dated the Agreement
Execution Date, from Gordon H. Glenn, Senior Vice President and General Counsel
of the Unlimited Guarantor, the Limited Guarantors and The Hughes Corporation
and from Gordon H. Glenn, as counsel for the Unencumbered Asset Guarantors, the
substance of such opinions to be substantially in the form attached hereto as

 

44

 

Exhibit F,
together with an Illinois enforceability opinion from the Administrative
Agent’s counsel.

 

(j)                                     Insurance.  Certificates of Insurance or other evidence
satisfactory to the Administrative Agent, with accompanying receipts showing
current payment of all premiums, evidencing that Borrower and the Guarantors
carry insurance on their respective Properties which satisfies the
Administrative Agent’s insurance requirements, including, without limitation:

 

(i)                                     All
Risk Property insurance inclusive of flood, earthquake and (to the extent
commercially available at a commercially reasonable cost) terrorist acts in the
amount of the replacement cost of the improvements at such Projects;

 

(ii)                                  Loss
of rental income insurance in the amount not less than one year’s gross
revenues from the Properties; and

 

(iii)                               Comprehensive
general/excess liability insurance in the amount of $50,000,000 per occurrence.

 

All insurance must be carried by companies with a Best
Insurance Reports (1992) Policyholder’s and Financial Size Rating of “A-VII” or
better.

 

(k)                                  Repayment
of Outstanding Balances Under the Existing Facility.  Evidence that the proceeds of the initial
Advance will be used by the Borrower for the purpose of refinancing the
outstanding balances under the Existing Facility in accordance with the terms
of the Transition Memorandum.

 

(l)                                     Financial
and Related Information.  The
following information:

 

(i)                                     A
certificate, signed by an officer of the Borrower, stating that on the
Agreement Execution Date no Default or Event of Default has occurred and is
continuing and that all representations and warranties of the Borrower
contained herein are true and correct as of the Agreement Execution Date as and
to the extent set forth herein;

 

(ii)                                  The
most recent financial statements of the Consolidated Group and a certificate
from a Qualified Officer of the Borrower that no change in the Borrower’s
financial condition that would have a Material Adverse Effect has occurred
since the date thereof; and

 

(iii)                               Written
money transfer instructions, in substantially the form of Exhibit G
hereto, addressed to the Administrative Agent and signed by a Qualified
Officer, together with such other related money transfer authorizations as the Administrative
Agent may have reasonably requested.

 

(m)                               Other
Evidence as any Lender May Require. 
Such other evidence as any Lender may reasonably request to establish
the consummation of the transactions contemplated hereby, the taking of all
necessary actions in any proceedings in connection herewith and compliance with
the conditions set forth in this Agreement.

 

45

 

(n)                                 Transition
Memorandum.  An agreement in
substantially the form of Exhibit L hereto between Borrower and the
Administrative Agent on behalf of the Lenders under the Existing Facility that
remain as Lenders under this Agreement, and the lenders under the Existing
Facility who are not Lenders under this Agreement as to the repayment or conversion
of loans outstanding to the Borrower under the Existing Facility, the treatment
of any interest and fees accrued thereon, and the cancellation of all
commitments under the Existing Facility (the “Transition Memorandum”).

 

5.2                                 Conditions Precedent to Each
Advance and Issuance of Facility Letters of Credit.  The obligation of each Lender and Issuing
Bank to make any Advance (except as otherwise set forth in Section 2.20 with
respect to Loans made for the purpose of repaying Swing Line Loans) or issue any
Facility Letter of Credit is subject to the following terms and conditions:

 

(a)                                  Prior
to each such Advance or issuance no Default or Event of Default shall have
occurred and be continuing under this Agreement or any of the Loan Documents
and, if required by Administrative Agent, Borrower shall deliver a certificate
of Borrower to such effect;

 

(b)                                 The
representations and warranties contained in Articles VI and VII
are true and correct as of such Borrowing Date, Issuance Date, or date of
conversion and/or continuation as and to the extent set forth therein, except
to the extent any such representation or warranty is stated to relate solely to
an earlier date, in which case such representation or warranty shall be true
and correct on and as of such earlier date; and

 

(c)                                  Prior
to any such issuance the applicable Issuance Fee has been paid to the Issuing
Bank.

 

Subject to the last paragraph of each of Articles VI
and VII hereof, each Borrowing Notice, Swing Line Borrowing Notice,
Letter of Credit Request, and Conversion/Continuation Notice shall constitute a
representation and warranty by the Borrower that the conditions contained in Sections
5.2(a) and (b), and, with respect to any Letter of Credit Request,
the condition contained in Section 5.2(c), have been satisfied.

 

ARTICLE VI.

REPRESENTATIONS AND
WARRANTIES

 

Borrower hereby represents and warrants that:

 

6.1                                 Existence. 
Rouse is a corporation duly organized and existing under the laws of the
State of Maryland, with its principal place of business in the State of
Maryland, and is duly qualified as a foreign corporation and properly licensed
(if required) and in good standing in each jurisdiction in which the failure to
qualify or be licensed would constitute a Material Adverse Financial Change or
have a Material Adverse Effect.  Each of
Rouse’s Subsidiaries is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization and is duly qualified as a
foreign corporation and properly licensed (if required) and in good standing in
each jurisdiction in which the failure to qualify, be in good standing or be

 

46

 

licensed would
constitute a Material Adverse Financial Change or have a Material Adverse
Effect.

 

6.2                                 Corporate Powers.  The execution, delivery and performance of the Loan Documents
required to be delivered by Borrower hereunder are within its corporate powers,
have been duly authorized by all requisite action, and are not in conflict with
the terms of any organizational instruments of such entity, or any instrument
or agreement to which Borrower is a party or by which Borrower or any of its
assets may be bound or affected.

 

6.3                                 Power of Officers.  The officers of the Borrower executing the Loan Documents
required to be delivered by the Borrower hereunder have been duly elected or
appointed and were fully authorized to execute the same at the time each such
agreement, certificate or instrument was executed.

 

6.4                                 Government and Other Approvals.  No approval, consent, exemption or other
action by, or notice to or filing with, any governmental authority is necessary
in connection with the execution, delivery or performance of the Loan
Documents.

 

6.5                                 Solvency.

 

(i)                                     Immediately
after the Agreement Execution Date and immediately following the making of each
Advance and after giving effect to the application of the proceeds of such
Advances, (a) the fair value of the assets of Rouse and its Subsidiaries on a
consolidated basis will exceed the debts and liabilities, subordinated,
contingent or otherwise, of Rouse and its Subsidiaries on a consolidated basis;
(b) the fair saleable value of the Properties of Rouse and its Subsidiaries on
a consolidated basis will be greater than the amount that will be required to
pay the probable liability of Rouse and its Subsidiaries on a consolidated
basis on their debts and other liabilities, subordinated, contingent or
otherwise, as such debts and other liabilities become absolute and matured; (c)
Rouse and its Subsidiaries on a consolidated basis will be able to pay their
debts and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (d) Rouse and its Subsidiaries on
a consolidated basis will not have unreasonably small capital with which to
conduct the businesses in which they are engaged as such businesses are now
conducted and are proposed to be conducted after the date hereof.

 

(ii)                                  Rouse
does not intend to, or to permit any of its Subsidiaries to, incur debts beyond
its ability to pay such debts as they mature, taking into account the timing of
and amounts of cash to be received by it or any such Subsidiary and the timing
of the amounts of cash to be payable on or in respect of its Indebtedness or
the Indebtedness of any such Subsidiary.

 

6.6                                 Compliance With Laws.  There is no judgment, decree or order or any
law, rule or regulation of any court or governmental authority binding on
Borrower or any of its Subsidiaries which would be contravened by the
execution, delivery or performance of the Loan Documents required hereunder.

 

47

 

6.7                                 Enforceability of Agreement.  This Agreement is the legal, valid and
binding agreement of the Borrower, and the Notes when executed and delivered will
be the legal, valid and binding obligations of the Borrower, enforceable
against the Borrower in accordance with their respective terms, and the Loan
Documents required hereunder, when executed and delivered, will be similarly
legal, valid, binding and enforceable except to the extent that such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization
or other similar laws affecting the rights of creditors generally.

 

6.8                                 Title to Property.  To the best of Borrower’s knowledge after due inquiry, and except
to the extent that any such failure would not have a Material Adverse Effect,
Borrower or its Subsidiaries has good and marketable title to the Properties
and assets reflected in the financial statements as owned by it or any such Subsidiary
free and clear of Liens except for the Permitted Liens.  The execution, delivery or performance of
the Loan Documents required to be delivered by the Borrower hereunder will not
result in the creation of any Lien on the Properties.  No consent to the transactions contemplated hereunder is required
from any ground lessor or mortgagee or beneficiary under a deed of trust or any
other Person except as has been delivered to the Lenders.

 

6.9                                 Litigation. 
There are no suits, arbitrations, claims, disputes or other proceedings
(including, without limitation, any civil, criminal, administrative or
environmental proceedings), pending or, to the best of Borrower’s knowledge,
threatened against or affecting the Borrower or any of the Properties, which
individually or in the aggregate may reasonably be expected to have a Material
Adverse Effect and/or constitute a Material Adverse Financial Change or
materially impair the Borrower’s ability to perform its obligations hereunder
or under any instrument or agreement required hereunder.

 

6.10                           Events of Default.  No Default or Event of Default has occurred and is continuing or
would result from the incurring of obligations by the Borrower under any of the
Loan Documents or any other document to which Borrower is a party.

 

6.11                           Investment Company Act of 1940.  Borrower is not, and will not be, an
investment company within the meaning of the Investment Company Act of 1940.

 

6.12                           Public Utility Holding Company Act.  The Borrower is not a “holding company” or a
“subsidiary company” of a “holding company,” or an “affiliate” of a “holding
company,” or of a “subsidiary company” of a “holding company,” within the
definitions of the Public Utility Holding Company Act of 1935, as amended.

 

6.13                           Regulation U. 
The proceeds of the Advances will not be used, directly or indirectly,
to purchase or carry any Margin Stock or to extend credit to others for the
purpose of purchasing or carrying any Margin Stock.

 

6.14                           No Material Adverse Financial Change.  To the best knowledge of Borrower, there has
been no Material Adverse Financial Change in the condition of Borrower since
the date of the financial and/or operating statements most recently submitted
to the Lenders.

 

6.15                           Financial Information.  All financial statements furnished to the
Lenders by or at the direction of the Borrower and all other financial
information and data furnished by the

 

48

 

Borrower to the
Lenders are complete and correct in all material respects as of the date thereof,
and such financial statements have been prepared in accordance with GAAP and
fairly present the consolidated financial condition and results of operations
of the Borrower as of such date.  The
Borrower has no contingent obligations, liabilities for taxes or other
outstanding financial obligations which are material in the aggregate, except
as disclosed in such statements, information and data.

 

6.16                           Factual Information.  All factual information heretofore or
contemporaneously furnished by or on behalf of the Borrower to the Lenders for
purposes of or in connection with this Agreement and the other Loan Documents
and the transactions contemplated therein is, and all other such factual
information hereafter furnished by or on behalf of the Borrower to the Lenders
will be, true and accurate (taken as a whole) in all material respects on the
date as of which such information is dated or certified and not incomplete by
omitting to state any material fact necessary to make such information (taken
as a whole) not misleading at such time.

 

6.17                           ERISA. 
(i) Borrower is not an entity deemed to hold “plan assets” within
the meaning of ERISA or any regulations promulgated thereunder of an employee
benefit plan (as defined in Section 3(3) of ERISA) which is subject to
Title I of ERISA or any plan within the meaning of Section 4975 of
the Code, and (ii) the execution of this Agreement and the transactions
contemplated hereunder do not give rise to a prohibited transaction within the
meaning of Section 406 of ERISA or Section 4975 of the Code.

 

6.18                           Taxes.  All
required tax returns have been filed by Borrower with the appropriate
authorities except to the extent that extensions of time to file have been
requested, granted and have not expired or except to the extent such taxes are
being contested in good faith and for which adequate reserves, in accordance
with GAAP, are being maintained.

 

6.19                           Environmental Matters.  Except as disclosed in Schedule 6.19,
each of the following representations and warranties is true and correct except
to the extent that the facts and circumstances giving rise to any such failure
to be so true and correct, in the aggregate, are not reasonably expected to
have a Material Adverse Effect:

 

(i)                                     To
the knowledge of the Borrower, the Properties of Borrower, its Subsidiaries,
and Investment Affiliates do not contain any Materials of Environmental Concern
in amounts or concentrations which constitute a violation of, or could
reasonably give rise to liability under, Environmental Laws.

 

(ii)                                  Borrower
has not received any written notice alleging that any of the Properties of
Borrower and its Subsidiaries and Investment Affiliates or any operations at
the Properties are not in compliance with all applicable Environmental Laws.  Further, Borrower has not received any
written notice alleging the existence of any contamination at or under such
Properties in amounts or concentrations which constitute a violation of any
Environmental Law, or any violation of any Environmental Law with respect to
such Properties for which Borrower, its Subsidiaries or Investment Affiliates
is or could be liable.

 

49

 

(iii)                               Neither
Borrower nor any of its Subsidiaries or Investment Affiliates has received any
written notice of non-compliance, liability or potential liability regarding
Environmental Laws with regard to any of the Properties, nor does it have
knowledge that any such notice will be received or is being threatened.

 

(iv)                              To
the knowledge of Borrower during the ownership of the Properties by any or all
of Borrower, its Subsidiaries and Investment Affiliates, Materials of
Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location which could reasonably
give rise to liability of Borrower, any Subsidiary, or any Investment Affiliate
under, Environmental Laws, nor during the ownership of the Properties by any or
all of Borrower, its Subsidiaries and Investment Affiliates have any Materials
of Environmental Concern been generated, treated, stored or disposed of at, on
or under any of the Properties in violation of, or in a manner that could give
rise to liability of Borrower, any Subsidiary or any Investment Affiliate
under, any applicable Environmental Laws.

 

(v)                                 No
judicial proceedings or governmental or administrative action is pending, or,
to the knowledge of Borrower, threatened, under any Environmental Law to which
Borrower, any of its Subsidiaries, or any Investment Affiliate is named as a
party with respect to the Properties of such entity, nor are there any consent
decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Law with respect to such Properties for which Borrower, its
Subsidiaries, or any Investment Affiliate is or could be liable.

 

(vi)                              To
the knowledge of Borrower during the ownership of the Properties by any or all
of Borrower, its Subsidiaries and Investment Affiliates, there has been no
release or threat of release of Materials of Environmental Concern at or from
the Properties, or arising from or related to the operations of any such entity
in connection with the Properties in violation of, or in amounts or in a manner
that could give rise to liability under, Environmental Laws.

 

6.20                           Insurance. 
Borrower has obtained the insurance which Borrower is required to
furnish to Lenders under Section 5.1(j) hereof.

 

6.21                           No Brokers. 
Borrower has dealt with no brokers in connection with this Facility, and
no brokerage fees or commissions are payable by or to any Person in connection
with this Agreement or the Advances. 
Lenders shall not be responsible for the payment of any fees or
commissions to any broker and Borrower shall indemnify, defend and hold Lenders
harmless from and against any claims, liabilities, obligations, damages, costs
and expenses (including reasonable attorneys’ fees and disbursements) made
against or incurred by Lenders as a result of claims made or actions instituted
by any broker or Person claiming by, through or under Borrower in connection
with the Facility.

 

50

 

6.22                           No Violation of Usury Laws.  No aspect of any of the transactions
contemplated herein violate or will violate any usury laws or other laws in
effect on the date hereof regarding the validity of agreements to pay interest.

 

6.23                           Not a Foreign Person.  Borrower is not a “foreign person” within
the meaning of Section 1445 or 7701 of the Internal Revenue Code.

 

6.24                           No Trade Name. 
Borrower does not use any trade name and has not and does not do
business under any name other than its actual name set forth herein.  The principal place of business of Borrower
is as stated in the recitals hereto.

 

6.25                           Subsidiaries. 
Schedule 6.25 hereto contains an accurate list of all of the
presently existing Subsidiaries of Borrower, setting forth their respective
jurisdictions of formation and the percentage of their respective Capital Stock
owned by it or its Subsidiaries.  All of
the issued and outstanding shares of Capital Stock of such Subsidiaries have
been duly authorized and issued and are fully paid and non-assessable.

 

6.26                           Unencumbered
Asset Guarantors.  Schedule 6.26
hereto contains an accurate list of each member of the Consolidated Group which
owns all or any portion of an Unencumbered Asset.

 

Borrower agrees that all of its representations and
warranties set forth in Article VI of this Agreement and elsewhere
in this Agreement are true on the Agreement Execution Date, and will be true on
each Effective Date in all material respects and will be true in all material
respects upon each request for disbursement of an Advance.  Each request for disbursement hereunder
shall constitute a reaffirmation of such representations
and warranties as deemed modified in accordance with the disclosures made and
approved, as aforesaid, as of the date of such request and disbursement.

 

ARTICLE VII.

 

ADDITIONAL REPRESENTATIONS AND WARRANTIES

 

Each Guarantor
hereby represents and warrants that:

 

7.1                                 Existence. 
The Howard Research and Development Corporation is a corporation duly
organized and existing under the laws of the State of Maryland, with its
principal place of business in the State of Maryland, and is duly qualified as
a foreign corporation and properly licensed (if required) and in good standing
in each jurisdiction where the failure to qualify, be in good standing or be
licensed (if required) would constitute a Material Adverse Financial Change or
have a Material Adverse Effect on such Guarantor.  Howard Hughes Properties, Inc. and The Howard Hughes Corporation
are each a corporation duly organized and existing under the laws of the States
of Nevada and of Delaware, respectively, with its principal place of business
in the State of Nevada, and is duly qualified as a foreign corporation and
properly licensed (if required) and in good standing in each jurisdiction where
the failure to qualify, be in good standing or be licensed (if required)
would constitute a Material Adverse Financial Change or have a Material Adverse
Effect on such Guarantor.  Each
Unencumbered Asset Guarantor is duly organized and existing under the laws of
its state of formation and is duly qualified as a foreign corporation and

 

51

 

properly licensed
(if required) and in good standing in each jurisdiction where the failure to
qualify, be in good standing or be licensed (if required) would constitute a
Material Adverse Financial Change or have a Material Adverse Effect on such
Guarantor.

 

7.2                                 Corporate or Other Powers.  The execution, delivery and performance of
the Loan Documents required to be delivered by such Guarantor hereunder are
within the corporate or partnership powers of such Guarantor, have been duly
authorized by all requisite corporate or partnership action, and are not in
conflict with the terms of any organizational instruments of such Guarantor, or
any instrument or agreement to which such Guarantor is a party or by which such
Guarantor or any of its assets is bound or affected.

 

7.3                                 Power of Officers.  The officers of such Guarantor executing the
Loan Documents required to be delivered by such Guarantor hereunder have been
duly elected or appointed and were fully authorized to execute the same at the
time each such agreement, certificate or instrument was executed.

 

7.4                                 Government and Other Approvals.  No approval, consent, exemption or other
action by, or notice to or filing with, any governmental authority is necessary
in connection with the execution, delivery or performance of the Loan Documents
required hereunder.

 

7.5                                 Solvency.

 

(i)                                     Immediately
after the Agreement Execution Date and immediately following the making of each
Advance and after giving effect to the application of the proceeds of such
Advances, (a) the fair value of the assets of each Guarantor and its
Subsidiaries on a consolidated basis will exceed the debts and liabilities,
subordinated, contingent or otherwise, of each Guarantor and its Subsidiaries
on a consolidated basis; (b) the fair saleable value of the Properties of
each Guarantor and its Subsidiaries on a consolidated basis will be greater
than the amount that will be required to pay the probable liability of each
Guarantor and its Subsidiaries on a consolidated basis on their debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (c) each Guarantor and its
Subsidiaries on a consolidated basis will be able to pay their debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (d) each Guarantor and its Subsidiaries on a
consolidated basis will not have unreasonably small capital with which to
conduct the businesses in which they are engaged as such businesses are now
conducted and are proposed to be conducted after the date hereof.

 

(ii)                                  Each
Guarantor does not intend to, or to permit any of its Subsidiaries to, incur
debts beyond its ability to pay such debts as they mature, taking into account
the timing of and amounts of cash to be received by it or any such Subsidiary
and the timing of the amounts of cash to be payable on or in respect of its
Indebtedness or the Indebtedness of any such Subsidiary.

 

52

 

7.6                                 Compliance With Laws.  There is no judgment, decree or order or any
law, rule or regulation of any court or governmental authority binding on such
Guarantor which would be contravened by the execution, delivery or performance
of the Loan Documents required hereunder.

 

7.7                                 Enforceability of Guaranty.  The Guaranty is the legal, valid and binding
agreement of such Guarantor, enforceable against such Guarantor in accordance
with its respective terms, and the Loan Documents required hereunder, when
executed and delivered, will be similarly legal, valid, binding and enforceable
except to the extent that such enforcement may be limited by applicable
bankruptcy, insolvency, reorganization or other similar laws affecting the
rights of creditors generally.

 

7.8                                 Title to Properties.  The Limited Guarantors, the Unlimited
Guarantors, and their respective Subsidiaries, collectively, own all or
substantially all of the Consolidated Group’s Community Development Properties
and, to the best of such Guarantors’ knowledge after due inquiry, such
Guarantors have good and marketable title to such Properties free and clear of
any Liens except for the Permitted Liens. 
The execution, delivery or performance of the Loan Documents required to
be delivered by such Guarantors hereunder shall not result in the creation of
any Lien on such Community Development Properties.  No consent to the transactions contemplated hereunder is required
from any ground lessor or mortgagee or beneficiary under a deed of trust or any
other party having an interest in such Properties.

 

7.9                                 Litigation. 
There are no suits, arbitrations, claims, disputes or other proceedings
(including, without limitation, any civil, criminal, administrative or
environmental proceedings), pending or, to the best of such Guarantor’s
knowledge, threatened against or affecting such Guarantor or any of its
Properties, which individually or in the aggregate may reasonably be expected
to have a Material Adverse Effect and/or to cause a Material Adverse Financial
Change or materially impair such Guarantor’s ability to perform its obligations
under the Guaranty or under any instrument or agreement required hereunder.

 

7.10                           Events of Default.  No Default or Event of Default has occurred
and is continuing or would result from the incurring of obligations by such
Guarantor under any of the Loan Documents or any other document to which such
Guarantor is a party.

 

7.11                           Investment Company Act of 1940.  Such Guarantor is not, and will not be, an
investment company within the meaning of the Investment Company Act of 1940.

 

7.12                           Public Utility Holding Company Act.  Such Guarantor is not a “holding company” or
a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding
company,” or of a “subsidiary company” of a “holding company,” within the
definitions of the Public Utility Holding Company Act of 1935, as amended.

 

7.13                           No Material Adverse Financial Change.  There has been no Material Adverse Financial
Change since the last date on which the financial and/or operating statements
were submitted to the Lenders.

 

7.14                           Financial Information.  All financial statements furnished to the
Lenders by or on behalf of such Guarantor and all other financial information
and data furnished by or on behalf of

 

53

 

such Guarantor to
the Lenders are complete and correct in all material respects as of the date
thereof, and such financial statements have been prepared in accordance with
GAAP and fairly present the consolidated financial condition and results of
operations of such Guarantor as of such date. 
Such Guarantor has no contingent obligations, liabilities for taxes or
other outstanding financial obligations which are material in the aggregate,
except as disclosed in such statements, information and data.

 

7.15                           Factual Information.  All factual information heretofore or
contemporaneously furnished by or on behalf of such Guarantor to the Lenders
for purposes of or in connection with this Agreement and the other Loan
Documents and the transactions contemplated therein is, and all other such
factual information hereafter furnished by or on behalf of such Guarantor to
the Lenders will be, true and accurate in all material respects (taken as a
whole) on the date as of which such information is dated or certified and not
incomplete by omitting to state any material fact necessary to make such
information (taken as a whole) not misleading at such time.

 

7.16                           ERISA. 
(i) Such Guarantor is not an entity deemed to hold “plan assets”
within the meaning of ERISA or any regulations promulgated thereunder of an
employee benefit plan (as defined in Section 3(3) of ERISA) which is
subject to Title I of ERISA or any plan within the meaning of
Section 4975 of the Code, and (ii) the execution of this Agreement
and the transactions contemplated hereunder do not give rise to a prohibited
transaction within the meaning of Section 406 of ERISA or
Section 4975 of the Code.

 

7.17                           Taxes.  All
required tax returns have been filed by such Guarantor with the appropriate
authorities except to the extent that extensions of time to file have been
requested, granted and have not expired or except to the extent such taxes are
being contested in good faith and for which adequate reserves, in accordance with
GAAP, are being maintained.

 

7.18                           Environmental Matters.  Except as disclosed in Schedule 7.18,
each of the following representations and warranties is true and correct except
to the extent that the facts and circumstances giving rise to any such failure
to be so true and correct, in the aggregate, are not reasonably expected to
have a Material Adverse Effect:

 

(i)                                     To
the knowledge of such Guarantor, the Properties of such Guarantor, its
Subsidiaries, and Investment Affiliates do not contain any Materials of
Environmental Concern in amounts or concentrations which constitute a violation
of, or could reasonably give rise to liability under, Environmental Laws.

 

(ii)                                  Such
Guarantor has not received any written notice alleging that any of the
Properties of such Guarantor and its Subsidiaries and Investment Affiliates or
any operations at the Properties are not in compliance with all applicable
Environmental Laws.  Further, such
Guarantor has not received any written notice alleging the existence of any
contamination at or under such Properties in amounts or concentrations which
constitute a violation of any Environmental Law, or any violation of any
Environmental Law with respect to such Properties for which such Guarantor, its
Subsidiaries or Investment Affiliates is or could be liable.

 

54

 

(iii)                               Neither
such Guarantor nor any of its Subsidiaries or Investment Affiliates has
received any written notice of non-compliance, liability or potential liability
regarding Environmental Laws with regard to any of the Properties, nor does it
have knowledge that any such notice will be received or is being threatened.

 

(iv)                              To
the knowledge of such Guarantor during the ownership of the Properties by any
or all of such Guarantor, its Subsidiaries and Investment Affiliates, Materials
of Environmental Concern have not been transported or disposed of from the
Properties in violation of, or in a manner or to a location which could
reasonably give rise to liability of such Guarantor, any Subsidiary, or any
Investment Affiliate under, Environmental Laws, nor during the ownership of the
Properties by any or all of such Guarantor, its Subsidiaries and Investment
Affiliates have any Materials of Environmental Concern been generated, treated,
stored or disposed of at, on or under any of such Properties in violation of,
or in a manner that could give rise to liability of such Guarantor, any
Subsidiary or any Investment Affiliate under, any applicable Environmental
Laws.

 

(v)                                 No
judicial proceedings or governmental or administrative action is pending, or,
to the knowledge of such Guarantor, threatened, under any Environmental Law to
which such Guarantor, any of its Subsidiaries, or any Investment Affiliate is
named as a party with respect to the Properties of such entity, nor are there
any consent decrees or other decrees, consent orders, administrative orders or
other orders, or other administrative or judicial requirements outstanding
under any Environmental Law with respect to such Properties for which such
Guarantor, its Subsidiaries, or any Investment Affiliate is or could be liable.

 

(vi)                              To
the knowledge of such Guarantor during the ownership of the Properties by any
or all of such Guarantor, its Subsidiaries and Investment Affiliates, there has
been no release or threat of release of Materials of Environmental Concern at
or from the Properties or arising from or related to the operations of such
entity in connection with the Properties in violation of or in amounts or in a
manner that could give rise to liability under Environmental Laws.

 

7.19                           Insurance. 
Such Guarantor has obtained the insurance which such Guarantor is
required to furnish to Lenders under Section 5.1(j) hereof.

 

7.20                           Subsidiaries.  Schedule 7.20 hereto contains an accurate list of all of
the presently existing Subsidiaries of such Guarantor, setting forth their
respective jurisdictions of formation and the percentage of their respective
Capital Stock owned by it or its Subsidiaries. 
All of the issued and outstanding shares of Capital Stock of such
Subsidiaries have been duly authorized and issued and are fully paid and
non-assessable.

 

Each Guarantor agrees that all of its representations
and warranties set forth in Article VII of this Agreement are true
on the Agreement Execution Date, and will be true on

 

55

 

each Effective Date in all material respects (except
with respect to matters which have been disclosed in writing to and approved by
the Majority Lenders), and will be true in all material respects (except with
respect to matters which have been disclosed in writing to and approved by the
Majority Lenders) upon each request for disbursement of an Advance.  Each request for disbursement hereunder
shall constitute a reaffirmation of such representations and warranties as
deemed modified in accordance with the disclosures made and approved, as
aforesaid, as of the date of such request and disbursement.

 

ARTICLE VIII.

AFFIRMATIVE COVENANTS

 

Each of the Borrower and the Guarantors covenants and
agrees that so long as the Commitment of any Lender shall remain available and
until the full and final payment of all Obligations incurred under the Loan
Documents it will:

 

8.1                                 Notices. 
Promptly give written notice to Administrative Agent (who will promptly
send such notice to Lenders) of:

 

(a)                                  all
non-insured litigation or arbitration proceedings affecting the Borrower, a
Guarantor or any Subsidiary of any of them where the amount claimed is
$10,000,000 or more;

 

(b)                                 any
Default or Event of Default, specifying the nature and the period of existence
thereof and what action has been taken or been proposed to be taken with
respect thereto;

 

(c)                                  all
claims filed against any Property owned by the Borrower, a Guarantor or any
Subsidiary of any of them which may reasonably be expected to have a Material
Adverse Effect on the ability of the Borrower or any Guarantor to meet any of
its obligations under the Loan Documents;

 

(d)                                 the
occurrence of any other event which may reasonably be expected to have a
Material Adverse Effect or cause a Material Adverse Financial Change;

 

(e)                                  any
Reportable Event or any “prohibited transaction” (as such term is defined in
Section 4975 of the Code) in connection with any Plan or any trust created
thereunder, which may reasonably be expected, singly or in the aggregate, to
materially impair the ability of the Borrower or any Guarantor to repay any of
its obligations under the Loan Documents, describing the nature of each such
event and the action, if any, the Borrower or Guarantor proposes to take with
respect thereto; and

 

(f)                                    any
notice from any federal, state, local or foreign authority regarding any
Hazardous Material, asbestos, or other environmental condition, proceeding,
order, claim or violation affecting any Property that may reasonably be
expected to result in liability for damages and remediation costs in excess of
$10,000,000.

 

56

 

8.2                                 Financial Statements, Reports, Etc.  The Borrower will maintain, for itself and
the Guarantors and each of their Subsidiaries, a system of accounting
established and administered in accordance with GAAP, and furnish to the
Lenders (at the sole discretion of each Lender, either directly or by posting
on Intralinks or another transaction-specific Internet site accessible to such
Lender):

 

(i)                                     As
soon as available, but in any event not later than 60 days after the close of
the first three (3) fiscal quarters of each fiscal year and 90 days after the
close of the fiscal year, for the Consolidated Group a quarterly financial
statement (including a balance sheet and income statement), which may be in the
form contained in Form 10-Q and Form 10-K filings as described below,
for such period and the portion of the fiscal year through the end of such
period, setting forth in each case in comparative form the figures for the
previous year, all certified by the Borrower’s chief financial officer,
treasurer or chief accounting officer and the annual statement to be audited by
the Borrower’s independent public accounting firm;

 

(ii)                                  As
soon as available, but in any event not later than 60 days after the close of
the first three (3) fiscal quarters of each fiscal year and 90 days after the
close of the fiscal year, for the Consolidated Group, related reports in form
and substance satisfactory to the Administrative Agent, all certified by
Borrower’s chief financial officer, treasurer or chief accounting officer,
including a statement of Funds from Operations and Combined EBITDA, a report listing
and describing all newly acquired Properties having a value in excess of
$25,000,000, including their projected contribution to Combined EBITDA, cost
and secured or unsecured Indebtedness assumed in connection with such
acquisition, if any, the Consolidated Group’s level of debt, and summary
Property information, and other information as may be reasonably requested to
evaluate the quarterly compliance certificate delivered as provided below;

 

(iii)                               Not
later than 15 days after the date such reports are filed with the Securities
and Exchange Commission, all Form 10-Ks, 10-Qs, 8-Ks, and any other annual,
quarterly, monthly or other reports, copies of all registration statements and
any other public information which the Borrower, the Guarantors or any of their
respective Subsidiaries files with the Securities and Exchange Commission
provided, however, that to the extent any of such reports contains information
required under the other subsections of this Section 8.2, the
information need not be furnished separately under the other subsections;

 

(iv)                              Not
later than 60 days after the end of each of the first three (3) fiscal
quarters, and not later than 90 days after the end of the fiscal year, a
compliance certificate in substantially the form of Exhibit H
hereto signed by the Borrower’s chief financial officer, treasurer or chief
accounting officer confirming that Borrower is in compliance with all of the
covenants of the Loan Documents as of the end of the last fiscal quarter,
showing the calculations and computations necessary to determine compliance
with the financial covenants contained in this Agreement (including such
schedules and backup information as

 

57

 

may be necessary to
demonstrate such compliance) and stating that to such officer’s best knowledge,
no other Default or Event of Default exists, or if any Default or Event of
Default exists, stating the nature and status thereof;

 

(v)                                 (a) As soon as possible and in any event within 10
Business Days after the Borrower or any Guarantor knows that any Reportable
Event has occurred with respect to any Plan, a statement, signed by the chief
financial officer or treasurer of Borrower or such Guarantor, describing said
Reportable Event and within 20 days after such Reportable Event, a statement
signed by such chief financial officer describing the action which Borrower or
such Guarantor proposes to take with respect thereto; and (b) within 10
Business Days of receipt, any notice from the Internal Revenue Service, PBGC or
Department of Labor with respect to a Plan regarding any excise tax, proposed
termination of a Plan, prohibited transaction or fiduciary violation under
ERISA or the Code which may reasonably be expected to result in any liability
to Borrower or such Guarantor or any member of the Controlled Group in excess
of $10,000,000; and (c) within 10 Business Days of filing, any Form 5500 filed
by Borrower or such Guarantor with respect to a Plan, or any member of the
Controlled Group which includes a qualified accountant’s opinion, except a
qualification with respect to assets certified by a third party as permitted by
ERISA;

 

(vi)                              As
soon as possible and in any event within 30 days after receipt by the Borrower
or any Guarantor, a copy of (a) any notice or claim to the effect that the
Borrower or any Guarantor or any of their respective Subsidiaries is or may be
liable to any Person as a result of the release by such entity, or any of its
Subsidiaries, or any other Person of any toxic or hazardous waste or substance
into the environment, and (b) any notice alleging any violation of any federal,
state or local environmental, health or safety law or regulation by the
Borrower or any Guarantor or any of their respective Subsidiaries or Investment
Affiliates, which, in either case, may reasonably be expected to have a
Material Adverse Effect;

 

(vii)                           Promptly
upon the furnishing thereof to the shareholders of the Borrower or any
Guarantor, copies of all financial statements, reports, proxy statements and
other materials distributed generally to its shareholders by the Borrower or
such Guarantor;

 

(viii)                        Promptly
upon the distribution thereof to the press or the public, copies of all press
releases; and

 

(ix)                                Such
other information (including, without limitation, a detailed listing of the
Properties owned by each member of the Consolidated Group, all Landauer
Associates, Inc. (or other appraiser’s) reports and updates described in clause
(d) of the definition of “Gross Asset Value” and, to the extent reasonably available,
each Investment Affiliate and other non-financial information) as the
Administrative Agent or any Lender may from time to time reasonably request,
provided the Administrative Agent and each Lender shall take all reasonable
steps

 

58

 

to maintain the
confidentiality of such information and any confidential information obtained
under Section 8.8 below, except for disclosure to regulatory
agencies, to their accountants, attorneys and other professional service
providers, to prospective assignees and participants and as otherwise may be
required by law.

 

8.3                                 Existence and Conduct of Operations.  Except as permitted herein, maintain and
preserve its existence and all rights, privileges and franchises now enjoyed
and necessary for the operation of its business, including remaining in good
standing in each jurisdiction in which business is currently operated.  Except to the extent that any failure would
not have a Material Adverse Effect, the Borrower and each Guarantor will do,
and will cause each of its Subsidiaries to do, all things necessary to remain
duly incorporated and/or duly qualified, validly existing and in good standing
as a real estate investment trust, corporation, general partnership, limited liability
company or limited partnership, as the case may be, in its jurisdiction of
incorporation/formation.  The Borrower
and each Guarantor will maintain all requisite authority to conduct its
business in each jurisdiction in which the Properties are located and, except
where the failure to be so qualified would not have a Material Adverse Effect,
in each jurisdiction required to carry on and conduct its businesses in
substantially the same manner as it is presently conducted.

 

8.4                                 Maintenance of Properties.  Maintain, preserve, protect and keep the
Properties in good repair, working order and condition, and make all necessary
and proper repairs, renewals and replacements, normal wear and tear excepted.

 

8.5                                 Insurance. 
Provide a certificate of insurance from all insurance carriers who
maintain policies with respect to the Properties within thirty (30) days after
the end of each fiscal year, evidencing that the insurance required to be
furnished to Lenders pursuant to Section 5.1(j) hereof is in full force and
effect.  Borrower or each Guarantor
shall timely pay, or cause to be paid, all premiums on all insurance policies
required under this Agreement from time to time.  Borrower or each Guarantor shall promptly notify its insurance
carrier or agent therefor (with a copy of such notification being provided
simultaneously to Administrative Agent if the claimed loss exceeds $10,000,000)
if there is any occurrence which, under the terms of any insurance policy then
in effect with respect to the Properties, requires such notification.

 

8.6                                 Payment of Obligations.  Pay all taxes, assessments, governmental
charges and other obligations when due, except such as may be contested in good
faith or as to which a bona fide dispute may exist, and for which adequate
reserves have been provided in accordance with sound accounting principles used
by Borrower or such Guarantor on the date hereof.

 

8.7                                 Compliance with Laws.  Comply in all material respects with all
applicable laws, rules, regulations, orders and directions of any governmental
authority having jurisdiction over Borrower, such Guarantor, their respective
Subsidiaries or any of their respective businesses.

 

8.8                                 Adequate Books. 
Maintain adequate books, accounts and records in order to provide
financial statements in accordance with GAAP and, if requested by any Lender,
permit employees or representatives of such Lender at any reasonable time and
upon reasonable notice to inspect and audit the Properties of the Consolidated
Group, and to examine or audit the

 

59

 

inventory, books,
accounts and records of each of them and make copies and memoranda thereof.

 

8.9                                 ERISA. 
Comply in all material respects with all requirements of ERISA
applicable to it with respect to each Plan.

 

8.10                           Maintenance of Status.  Rouse shall at all times (i) remain as a
corporation listed and in good standing on the New York Stock Exchange (NYSE),
and (ii) maintain Rouse’s status as a real estate investment trust in
compliance with all applicable provisions of the Code (unless otherwise
consented to by the Required Lenders).

 

8.11                           Use of Proceeds. 
Use the proceeds of the Facility for the general corporate purposes of
the Consolidated Group and any Investment Affiliate.

 

8.12                           Additional Guarantors.  Cause each member of the Consolidated Group
that owns all or any portion of an Unencumbered Asset to execute and deliver to
the Administrative Agent an Unencumbered Asset Guaranty within (10) days after
the date that such member of the Consolidated Group first owns all or any
portion of an Unencumbered Asset, whether through the acquisition of such a
Property or the release of such a Property from a Lien securing Indebtedness or
from any other restriction or encumbrance that prevented such Property from qualifying
as an Unencumbered Asset.  If at any
time (i) a member of the Consolidated Group that has signed and delivered an
Unencumbered Asset Guaranty has commenced efforts to sell an Unencumbered Asset
or any portion thereof or to obtain financing to be secured by a Lien thereon
(to be closed, in either case within sixty (60) days after the date of the
following request for release), (ii) Borrower delivers a written request to the
Administrative Agent (to be delivered together with a certification of such fact)
for the release of such member from its Unencumbered Asset Guaranty, (iii)
Borrower delivers a  compliance
certificate in substantially the form of Exhibit H hereto signed by
the Borrower’s chief financial officer, treasurer or chief accounting officer
confirming that Borrower would have been be in compliance with all of the
covenants of the Loan Documents as of the end of the last fiscal quarter,
assuming the applicable Unencumbered Asset was sold or a Lien securing an
amount equal to the proposed financing was placed thereon on the last day of
such fiscal quarter, showing the calculations and computations necessary to
determine such pro-forma compliance with the financial covenants contained in
this Agreement (including such schedules and backup information as may be
necessary to demonstrate such compliance), and (iv) no Default or Event of
Default exists at the time of request described in the immediately preceding
clause (ii), such member of the Consolidated Group shall be released from its
Unencumbered Asset Guaranty by a written release executed by the Administrative
Agent on behalf of the Lenders, provided that if the projected sale or secured
financing is not effectuated Borrower shall cause such Unencumbered Asset
Guaranty to be re-executed and re-delivered to the Administrative Agent.

 

8.13                           Pre-Acquisition Environmental
Investigations.  Receive or
cause to be prepared an environmental report substantially in accordance with
the then-current ASTM Standard for Environmental Site Assessments, Phase I
or Transaction Screen Process, prior to the acquisition of each Property that a
member of the Consolidated Group intends to acquire, other than acquisitions of
(i) entities owning multiple properties, (ii) properties which a
member of the Consolidated Group previously owned or currently owns an interest
in, and (iii) properties in the 

 

60

 

immediate vicinity
of a Property which were either covered by the environmental report on such
Property or have an environmental profile substantially the same as such
Property.

 

8.14                           Operating Partnership Distributions.  Until the Operating Partnership becomes a
Borrower, Rouse shall cause the Operating Partnership to distribute to Rouse
and its other partners, not less often than quarterly, all or substantially all
of that portion of the Consolidated Group’s Funds from Operations generated by
the Operating Partnership and its Subsidiaries, less such amounts as Rouse
deems reasonably necessary for capital reserves and short-term working capital
needs.

 

ARTICLE
IX.

 

NEGATIVE COVENANTS

 

Each of the Borrower and the Guarantors covenants and
agrees that, so long as the Aggregate Commitment shall remain available and
until full and final payment of all Obligations incurred under the Loan
Documents, without the prior written consent of the Required Lenders (or the
Administrative Agent or a greater Percentage of the Lenders, if so expressly
provided), it will not, and its Subsidiaries will not:

 

9.1                                 Change in Business.  Engage in any business activities or operations other than
(i) the ownership and operation of the Properties, or (ii) other
business functions and transactions traditionally carried on by real estate
companies in connection with the financing, ownership, acquisition, development
and/or management of real estate and related improvements, or (iii) other
non-traditional activities relating to real estate and any non-real estate
business activities or operations as long as the Combined EBITDA attributable
to such non-traditional and non-real estate activities and operations does not
exceed 10% of Combined EBITDA.

 

9.2                                 Change of Property Management.  Change the management of the Properties,
except that any member of the Consolidated Group, Investment Affiliate or other
Affiliate of Borrower shall be permitted to manage any of the Properties.

 

9.3                                 Change of Borrower Control.  Permit or suffer (i) 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 25% of the
Capital Stock of Rouse having general voting rights to be held by any 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, (ii) 50% or more of the members of Rouse’s Board of
Directors to resign or be removed from such Board of Directors during any 12
month period for any reason other than death, disability or voluntary
retirement for personal reasons, unless otherwise approved in advance in
writing by the Required Lenders, or (iii) Rouse, directly or indirectly through
one or more of its wholly-owned Subsidiaries, not to be the only general
partner or general partners of the Operating Partnership, unless otherwise
approved in advance in writing by the Required Lenders.

 

61

 

9.4                                 Use of Proceeds. 
Apply or permit to be applied any proceeds of any Advance directly or
indirectly, to the funding of any purchase of, or offer for, any share of
capital stock of any publicly held corporation unless the board of directors of
such corporation has consented to such offer prior to any public announcements
relating thereto and the Lenders have consented to such use of the proceeds of
the Facility.

 

9.5                                 Transfers of Properties.  Transfer or otherwise dispose of any
Properties or interests in Subsidiaries or other entities which own any
Properties (other than transfers among members of the Consolidated Group)
which, together with all other Properties or interests in Subsidiaries or such
other entities which have been transferred or disposed of during the
then-current fiscal quarter  and the
immediately preceding three (3) full fiscal quarters have an aggregate value,
using the “Gross Asset Value” definition to determine value, of more than 15%
of the then-current Gross Asset Value, in which event the transfer or other
disposition of such Property or interest which causes the 15% limitation to be
exceeded shall not be completed until the Administrative Agent has received
written notice of such proposed action, together with a pro forma compliance
certificate, with detailed back-up and calculations, demonstrating that the
Borrower will be in compliance with all of its covenants herein after giving
effect to such proposed transfer or disposition.

 

9.6                                 Liens.  Create,
incur, or suffer to exist (or permit any of its Subsidiaries to create, incur,
or suffer to exist) any Lien in, of or on the Property of any member of the
Consolidated Group, except:

 

(i)                                     Liens
for taxes, assessments or governmental charges or levies on their Property if
the same shall not at the time be delinquent or thereafter can be paid without
penalty, or are being contested in good faith and by appropriate proceedings
and for which adequate reserves shall have been set aside on their books;

 

(ii)                                  Liens
which arise by operation of law, such as carriers’, warehousemen’s, landlords’,
materialmen and mechanics’ liens and other similar liens arising in the
ordinary course of business which secure payment of obligations not more than
30 days past due or which are being contested in good faith by appropriate
proceedings and for which adequate reserves shall have been set aside on its
books;

 

(iii)                               Liens
arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or
retirement benefits, or similar legislation;

 

(iv)                              Utility
easements, building restrictions, zoning restrictions, easements and such other
encumbrances or charges against real property as are of a nature generally
existing with respect to properties of a similar character and which do not in
any material way affect the marketability of the same or interfere with the use
thereof in the business of the Borrower or its Subsidiaries;

 

62

 

(v)                                 Liens
of any Subsidiary or Investment Affiliate in favor of the Borrower, the
Guarantors or any other Subsidiary or Investment Affiliate;

 

(vi)                              Liens
arising in connection with any Indebtedness permitted hereunder to the extent
such Liens will not result in a violation of any of the provisions of this
Agreement; and

 

(vii)                           Any
Lien which, if it were enforced and realized upon by the beneficiary thereof
and aggregated with all other Liens then permitted solely under this
clause (vii), would not give rise to an Event of Default under Article X
hereof.

 

Liens permitted pursuant to this Section 9.6
shall be deemed to be “Permitted Liens”.

 

9.7                                 Regulation U. 
Use any of the proceeds of the Advances to purchase or carry any Margin
Stock.

 

9.8                                 Variable Rate Debt.  Permit at any time less than 70% of the Total Outstanding
Indebtedness to either (i) bear interest at a fixed rate through the
then-current Maturity Date in accordance with its terms or (ii) be fully
hedged through the then-current Maturity Date to produce a fixed or
maximum rate through the purchase of an interest rate swap, cap or collar or
other financial instrument then being used by publicly held real estate
companies to hedge similar types of interest rate risk.

 

9.9                                 Negative Pledge.  Incur or permit any member of the Consolidated Group to incur any
Indebtedness which either (i) contains a “negative pledge” prohibiting the
Borrower or any member of the Consolidated Group from selling, encumbering or
otherwise transferring their interests in any unencumbered Properties or
interests in entities holding unencumbered Properties, or (ii) contains an
“equal and ratable” clause granting the holder of such Indebtedness a lien on
such Properties upon any encumbrance thereof unless this Agreement has been
amended simultaneously with the incurrence of such Indebtedness to add an
“equal and ratable” clause granting the Lenders a lien of equal priority on
such Properties to secure the Obligations upon any such encumbrance thereof.

 

9.10                           Indebtedness,
Cash Flow and Net Worth Covenants.  Permit or suffer:

 

(a)                                  Total
Outstanding Indebtedness to exceed, as of any date, 65% of then-current Gross
Asset Value.

 

(b)                                 Secured
Outstanding Indebtedness to exceed, (i) as of any date prior to the second
anniversary of the Agreement Execution Date, 55% of then-current Gross Asset
Value and (ii) from and after such date, 50% of then-current Gross Asset Value.

 

(c)                                  Combined
EBITDA for the most recent period of four (4) fiscal quarters for which results
have been reported to be less than 1.70 times Combined Interest Expense for the
corresponding period.

 

63

 

(d)                                 The
sum of (i) Combined EBITDA for the most recent period of four (4)
fiscal quarters for which results have been reported plus (ii) to
the extent deducted in calculating such Combined EBITDA, Ground Lease Base
Expense for the corresponding period to be less than 1.30 times Combined Debt
Service for the corresponding period.

 

(e)                                  Adjusted
Combined EBITDA for the most recent period of four (4) full fiscal quarters for
which results have been reported to be less than 12.0% of Total Outstanding
Indebtedness as of the date of determination of compliance.

 

(f)                                    The
Consolidated Group’s Net Asset Value to be less than the sum of
(i) $2,500,000,000 plus (ii) 75% of the proceeds (net of
customary issuance fees and expenses) from the issuance after the Agreement
Execution Date of any common stock, preferred stock or partnership units in
Rouse or the Operating Partnership, excluding issuance of any such interests
solely to members of the Consolidated Group.

 

9.11                           Mergers and Dispositions.  Consolidate with or merge into any other
Person or convey, transfer or lease its Properties and assets substantially as
an entirety to any Person, or permit any Person to consolidate with or merge
into the Company, unless:

 

(i)                                     in
case the Borrower shall be consolidated with or merge into another Person or
convey, transfer or lease its Properties and assets substantially as an
entirety to any Person, the Person formed by such consolidation or into which
the Borrower is merged or the Person which acquires by conveyance or transfer,
or which leases, the Properties and assets of the Borrower substantially as an
entirety shall be a corporation, partnership or trust, shall be organized and
validly existing under the laws of the United States of America, any State
thereof or the District of Columbia and shall assume, and shall cause its
Subsidiaries to expressly assume, by an amendment hereto, executed and
delivered to the Administrative Agent and the Required Lenders, in form
satisfactory to the Administrative Agent and the Required Lenders, the due and
punctual payment of all Obligations and the performance or observance of every
covenant of this Agreement and each of the other Loan Documents on the part of
the Borrower or its Subsidiaries to be performed or observed;

 

(ii)                                  immediately
after giving effect to such transaction and treating any Indebtedness which
becomes an obligation of the Borrower or any Subsidiary as a result of such
transaction as having been incurred by the Borrower or such Subsidiary at the
time of such transaction, no Default or Event of Default, shall have occurred
and be continuing; and

 

(iii)                               the
Borrower has delivered to the Administrative Agent and Lenders an officer’s
certificate including a pro forma compliance certificate in the form of Exhibit H
assuming such proposed transaction was then effective, and an opinion of
counsel, each stating or demonstrating that such consolidation, merger,
conveyance, transfer or lease and, if an amendment hereto is required in
connection with such transaction, such amendment, complies with this 

 

64

 

Section 9.11
and that all conditions precedent herein relating to such transaction have been
complied with.

 

Upon any consolidation of the Borrower with, or merger
of the Borrower into, any other Person or any conveyance, transfer or lease of
the Properties and assets of the Borrower substantially as an entirety in
accordance with this Section 9.11, the successor Person formed by
such consolidation or into which the Borrower is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Borrower under this Agreement
and each other Loan Document to which it is a party with the same effect as if
such successor Person had been named as the Borrower herein, and thereafter the
predecessor Person shall be relieved of all Obligations and covenants under
this Agreement, the Notes and each other Loan Document to which it is a party,
except in the case of (i) a lease, or (ii) any transaction in which
the Borrower continues to hold a general partnership or other ownership
interest in such successor Person (in which case the Borrower shall continue to
be liable as a guarantor of the Obligations under a guaranty in form satisfactory
to the Required Lenders).  The Borrower
and such successor Person shall execute such amendments and deliver such
opinions and other documents as the Required Lenders may require in connection
with any such transaction.  Nothing in
this Section 9.11 shall be deemed to waive or in any way diminish the
obligation of the Borrower and each such successor Person to comply in all
respects with Section 9.3 hereof.

 

9.12                           Dividends. 
Pay, or permit to be paid, any dividends or other monetary distributions
to the owners of Rouse and the Operating Partnership if the aggregate amount of
such dividends and distributions paid by Rouse and the Operating Partnership
for the most recent four (4) fiscal quarters for which financial reports are
available would exceed 70% of the sum of (A) the Consolidated Group’s
Funds from Operations for such period, plus (B) any deferred taxes
of the Consolidated Group deducted in calculating such Funds From Operations,
provided that, as long as a Monetary Default or Event of Default does not
exist, Rouse and the Operating Partnership shall be permitted at all times to
distribute whatever amount is necessary to maintain Rouse’s tax status as a
real estate investment trust (for this purpose treating payments to owners of
the Operating Partnership (other than members of the Consolidated Group) as if
they were payments to the owners of Rouse).

 

9.13                           Encumbrances. 
Allow or permit any member of the Consolidated Group to allow, its
direct or indirect ownership interests in any other member of the Consolidated
Group or any Investment Affiliate to be encumbered to secure any Indebtedness,
other than pursuant to existing and contemplated encumbrances set forth on Schedule
9.13 hereto.

 

9.14                           Restrictions on Dividends and
Distributions.  Permit any member
of the Consolidated Group (other than the Borrower), or any Investment
Affiliate, at any time after the Agreement Execution Date, to agree to any
contractual restriction on the payment or distribution of dividends or current
income to the holders of ownership interests therein, other than
(i) restrictions imposed on such entities in connection with the issuance
of securities collateralized by mortgage loans on Properties owned by such
entities and (ii) restrictions imposed on such entities and triggered
solely by a default under the terms of any mortgage loans on Properties owned
by such entities.

 

65

 

ARTICLE
X.

 

DEFAULTS

 

The occurrence of any one or more of the following
events shall constitute an Event of Default:

 

10.1                           Nonpayment of Principal.  The Borrower fails to pay any principal
portion of the Obligations when due, whether on the Maturity Date or otherwise.

 

10.2                           Certain Covenants.  The Borrower is not in compliance with any one or more of Sections
8.10, 8.12, 8.14 or 9.3 through 9.14
(inclusive) hereof.

 

10.3                           Nonpayment of Interest and Other
Obligations.  The Borrower fails
to pay any interest or other portion of the Obligations, other than payments of
principal, and such failure continues for a period of two (2) Business Days
after the date such payment is due.

 

10.4                           Cross Default. 
Any monetary default occurs (after giving effect to any applicable cure
period) under (i) any other Recourse Outstanding Indebtedness of the
Borrower, any of the Guarantors or any Material Subsidiary, singly or in the
aggregate, in excess of Twenty-five Million Dollars ($25,000,000) or
(ii) any Non-Recourse Outstanding Indebtedness of the Consolidated Group,
singly or in the aggregate, in excess of Two Hundred Fifty Million Dollars
($250,000,000).

 

10.5                           Loan Documents. 
Any Loan Document is not in full force and effect or a default has
occurred and is continuing thereunder after giving effect to any cure or grace
period in any such document.

 

10.6                           Representation or Warranty.  At any time or times hereafter any
representation or warranty set forth in Articles VI or VII
of this Agreement or in any other Loan Document or in any statement, report or
certificate now or hereafter made by the Borrower or the Guarantors to the
Lenders or the Administrative Agent is (i) not true and correct in any
material respect and (ii) if such representation and warranty is
susceptible of cure, such representation and warranty is not rendered true and
correct in all material respects within thirty (30) days after written notice
from the Administrative Agent to the Borrower requesting correction of such
representation and warranty.

 

10.7                           Covenants,
Agreements and Other Conditions.  The Borrower or the Guarantors fail to
perform or observe any of the other covenants, agreements and conditions
contained in Articles VIII and IX (except for Sections 8.10,
8.12, 8.14 and 9.3 through 9.14 (inclusive) hereof)
and elsewhere in this Agreement or any of the other Loan Documents in
accordance with the terms hereof or thereof, not specifically referred to
herein, and such failure continues unremedied for a period of thirty (30) days
after written notice from Administrative Agent to the Borrower requesting a
cure of such failure.

 

10.8                           Borrower Status.  Rouse shall fail to maintain its listing on the New York Stock
Exchange or its status as a real estate investment trust under the Code.

 

66

 

10.9                           Material Adverse Financial Change.  The Consolidated Group has suffered a
Material Adverse Financial Change or the Borrower, any Guarantor or any
Material Subsidiary is Insolvent.

 

10.10                     Bankruptcy.

 

(a)                                  The
Borrower, any Guarantor or any Material Subsidiary shall (i) make an
assignment for the benefit of creditors, (ii) apply for, seek, consent to,
or acquiesce in, the appointment of a receiver, custodian, trustee, examiner,
liquidator or similar official for it or any substantial portion of its
Properties, (iii) institute any proceeding seeking an order for relief
under the Federal bankruptcy laws as now or hereafter in effect or seeking to
adjudicate it as a bankrupt or insolvent, or seeking dissolution, winding up,
liquidation, reorganization, arrangement, adjustment or composition of it or
its debts under any law relating to bankruptcy, insolvency or reorganization or
relief of debtors or fail to file an answer or other pleading denying the
material allegations of any such proceeding filed against it, (iv) take
any corporate action to authorize or effect any of the foregoing actions set
forth in this Section 10.10(a), (v) fail to contest in good
faith any appointment or proceeding described in Section 10.10(b)
or (vi) not pay, or admit in writing its inability to pay, its debts
generally as they become due; and/or

 

(b)                                 A
receiver, trustee, examiner, liquidator or similar official shall be appointed
for the Borrower, any Guarantor or any Material Subsidiary or any substantial
portion of any of their respective Properties, or an involuntary proceeding of
the type described in Section 10.10(a)(iii) shall be instituted
against the Borrower, any Guarantor or any Material Subsidiary and such
appointment continues undischarged or such involuntary proceeding continues
undismissed or unstayed for a period of ninety (90) consecutive days.

 

10.11                     Legal Proceedings.  Borrower, any Guarantor or any Material Subsidiary is enjoined,
restrained or in any way prevented by any court order or judgment or if a
notice of lien, levy, or assessment is filed of record with respect to all or
any part of the Properties by any governmental department, office or agency,
which  may reasonably be expected to
materially adversely affect the performance of the obligations of such parties
hereunder or under the Loan Documents, as the case may be, and there is a
failure to vacate, stay, dismiss, set aside or remedy the same within ninety
(90) days after the occurrence thereof.

 

10.12                     Failure to Satisfy Judgments.  The Borrower, any Guarantor or any Material
Subsidiary shall fail to pay, bond or otherwise discharge any judgments against
the Borrower, any of the Guarantors or any Material Subsidiary in excess of
$10,000,000 in the aggregate if such judgment is not stayed or bonded over on
appeal excluding, however, any foreclosure or related judgments or decrees
entered in the enforcement of defaulted Non-Recourse Outstanding Indebtedness
provided that such Non-Recourse Outstanding Indebtedness, when aggregated with
any other Non-Recourse Outstanding Indebtedness of the Consolidated Group which
is then in monetary default beyond applicable cure periods, does not exceed
$250,000,000.

 

10.13                     ERISA.  The
Borrower, any Guarantor or any Material Subsidiary shall violate any ERISA
regulations involving reasonably expected liability of the Borrower, any of the
Guarantors or any Material Subsidiary in excess of $25,000,000 in the
aggregate.

 

67

 

10.14                     Environmental Remediation.  Failure to remediate within the time period
required by law or governmental order after all administrative hearings and
appeals have been concluded (or within a reasonable time in light of the nature
of the problem if no specific time period is so established), environmental
problems in violation of applicable law related to Properties of the Consolidated
Group where the estimated cost of remediation is in the aggregate in excess of
$20,000,000.

 

ARTICLE
XI.

 

ACCELERATION, WAIVERS, AMENDMENTS
AND REMEDIES

 

11.1                           Acceleration.

 

If any Event of Default described in Section 10.10
hereof occurs, the obligation of the Lenders to make Advances and of the
Issuing Banks to issue Facility Letters of Credit hereunder shall automatically
terminate and the Obligations shall immediately become due and payable.  If any other Event of Default described in Article X
hereof occurs, such obligation to make Advances and to issue Facility Letters
of Credit shall be terminated and, at the election of the Majority Lenders, the
Obligations may be declared to be due and payable.

 

In addition to the foregoing, following the occurrence
of an Event of Default and so long as any Facility Letter of Credit has not
been fully drawn and has not been cancelled or expired by its terms, upon
demand by the Majority Lenders the Borrower shall deposit in the Letter of
Credit Collateral Account cash in an amount equal to the aggregate undrawn face
amount of all outstanding Facility Letters of Credit and all fees and other
amounts due or which may become due with respect thereto.  The Borrower shall have no control over
funds in the Letter of Credit Collateral Account, which funds shall be invested
by the Administrative Agent from time to time in its discretion in Cash
Equivalents having a maturity not exceeding thirty (30) days.  Such funds shall be promptly applied by the
Administrative Agent to reimburse the Issuing Banks for drafts drawn from time
to time under the Facility Letters of Credit. 
Such funds, if any, remaining in the Letter of Credit Collateral Account
following the payment of all Obligations in full shall, unless the Administrative
Agent is otherwise directed by a court of competent jurisdiction, be promptly
paid over to the Borrower.

 

11.2                           Preservation of Rights; Amendments.  No delay or omission of the Lenders in
exercising any right under the Loan Documents shall impair such right or be
construed to be a waiver of any Default or Event of Default or an acquiescence
therein, and the making of an Advance notwithstanding the existence of a
Default or Event of Default or the inability of the Borrower to satisfy the
conditions precedent to such Advance shall not constitute any waiver or
acquiescence.  Any single or partial
exercise of any such right shall not preclude other or further exercise thereof
or the exercise of any other right, and no waiver, amendment or other variation
of the terms, conditions or provisions of the Loan Documents whatsoever shall
be valid unless in writing signed by the Administrative Agent and the number of
Lenders required hereunder and then only to the extent in such writing
specifically set forth.  All remedies
contained in the Loan Documents or by law afforded shall be cumulative and all
shall be available to the Lenders until the Obligations have been paid in full.

 

68

 

ARTICLE
XII.

 

THE ADMINISTRATIVE AGENT

 

12.1                           Appointment. 
Bank One is hereby appointed Administrative Agent hereunder and under
each other Loan Document, and each of the Lenders authorizes the Administrative
Agent to act as the agent of such Lender with respect to the terms hereof.  The Administrative Agent agrees to act as
such upon the express conditions contained in this Article XII.  The Administrative Agent shall not have a
fiduciary relationship in respect of any Lender by reason of this Agreement,
except to the extent the Administrative Agent acts as an agent with respect to
the receipt or payment of funds hereunder. 
The Administrative Agent shall use the same standard of care in
performing its obligations hereunder as it uses in administering loans held for
its own account.

 

12.2                           Powers.  The
Administrative Agent shall have and may exercise such powers under the Loan
Documents as are specifically delegated to the Administrative Agent by the
terms of each thereof, together with such powers as are reasonably incidental
thereto.  The Administrative Agent shall
have no implied duties to the Lenders, or any obligation to the Lenders to take
any action thereunder except any action specifically provided by the Loan
Documents to be taken by the Administrative Agent.

 

12.3                           General Immunity.  Neither the Administrative Agent (in its capacity as
Administrative Agent) nor any of its directors, officers, agents or employees
shall be liable to the Borrower, the Lenders or any Lender for any action taken
or omitted to be taken by it or them hereunder or under any other Loan Document
or in connection herewith or therewith, except for its or their own gross
negligence or willful misconduct.

 

12.4                           No Responsibility for Loans,
Recitals, etc.  Neither the
Administrative Agent (in its capacity as Administrative Agent) nor any of its
directors, officers, agents or employees shall be responsible for or have any
duty to ascertain, inquire into, or verify (i) any statement, warranty or
representation made in connection with any Loan Document or any borrowing hereunder;
(ii) the performance or observance of any of the covenants or agreements
of any obligor under any Loan Document; (iii) the satisfaction of any
condition specified in Article V, except receipt of items required
to be delivered to the Administrative Agent; or (iv) the validity,
effectiveness or genuineness of any Loan Document or any other instrument or
writing furnished in connection therewith.

 

12.5                           Action on Instructions of Lenders.  The Administrative Agent shall in all cases
act upon the written instructions of the Majority Lenders, Required Lenders or
all Lenders, as this Agreement may require, so long as such directions
(i) are consistent with the Lenders’ express obligations hereunder and
(ii) in the Administrative Agent’s good faith judgment, do not expose the
Administrative Agent to any material risk of liability to the Borrower as a
result thereof.  The Administrative
Agent shall be fully protected in so acting, or in so refraining from acting,
hereunder and under any other Loan Document in accordance with written
instructions signed by the Majority Lenders, Required Lenders or all Lenders,
as the case may be, and such instructions and any action taken or failure to
act pursuant thereto shall be binding on all of the Lenders and on all holders of
Notes.  The Administrative Agent shall
be fully justified in failing or refusing to 

 

69

 

take any action
hereunder and under any other Loan Document unless it shall first be
indemnified to its satisfaction by the Lenders pro rata against any and all
liability, cost and expense that it may incur by reason of taking or continuing
to take any such action.

 

12.6                           Employment of Administrative Agents
and Counsel.  The Administrative
Agent may execute any of its duties as Administrative Agent hereunder and under
any other Loan Document by or through employees, agents, and attorneys-in-fact
and shall not be answerable to the Lenders, except as to money or securities
received by it or its authorized agents, for the default or misconduct of any
such agents or attorneys-in-fact selected by it with reasonable care.  The Administrative Agent shall be entitled
to seek advice of counsel concerning all matters pertaining to the agency
hereby created and its duties hereunder and under any other Loan Document.

 

12.7                           Reliance on Documents; Counsel.  The Administrative Agent shall be entitled
to rely upon any Note, notice, consent, certificate, affidavit, letter,
telegram, statement, paper or document believed by it to be genuine and correct
and to have been signed or sent by the proper person or persons, and, in
respect to legal matters, upon the opinion of outside counsel selected by the
Administrative Agent.

 

12.8                           Administrative Agent’s
Reimbursement and Indemnification. 
The Lenders agree to reimburse and indemnify the Administrative Agent
ratably in accordance with their respective Percentages (i) for any
amounts not reimbursed by the Borrower for which the Administrative Agent is
entitled to reimbursement by the Borrower under the Loan Documents,
(ii) for any other reasonable expenses incurred by the Administrative
Agent on behalf of the Lenders, in connection with the preparation, execution,
delivery, administration and enforcement of the Loan Documents, if not paid by
Borrower, and (iii) for any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Administrative Agent (in its capacity as Administrative Agent and
not as a Lender) in any way relating to or arising out of the Loan Documents or
any other document delivered in connection therewith or the transactions
contemplated thereby, or the enforcement of any of the terms thereof or of any
such other documents, provided that no Lender shall be liable for any of the
foregoing to the extent they arise from the gross negligence or willful
misconduct of the Administrative Agent.

 

12.9                           Rights as a Lender.  With respect to the Commitment, Advances made by it and the Note
issued to it, the Administrative Agent shall have the same rights and powers
hereunder and under any other Loan Document as any Lender and may exercise the
same as though it were not the Administrative Agent, and the term “Lender” or
“Lenders” shall, unless the context otherwise indicates, include the
Administrative Agent in its individual capacity.  The Administrative Agent, in its individual capacity, may accept
deposits from, lend money to, and generally engage in any kind of trust, debt,
equity or other transaction, in addition to those contemplated by this
Agreement or any other Loan Document, with the Borrower or any of its
Subsidiaries in which the Borrower or such Subsidiary is not restricted hereby
from engaging with any other Person.

 

12.10                     Lender Credit Decision.  Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on the 

 

70

 

financial
statements prepared by the Borrower and such other documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter
into this Agreement and the other Loan Documents.  Each Lender also acknowledges that it will, independently and
without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement and the other Loan Documents.

 

12.11                     Successor Administrative Agent.  Each Lender agrees that Bank One shall serve
as Administrative Agent at all times during the term of this Facility, except
that Bank One may resign as Administrative Agent in the event (x) Bank One
and Borrower shall mutually agree in writing or (y) an Event of Default
shall occur under the Loan Documents (irrespective of whether such Event of
Default subsequently is waived), or (z) Bank One shall determine, in its
sole reasonable discretion, that because of its other banking relationships
with Borrower and/or Borrower’s Affiliates at the time of such decision Bank
One’s resignation as Administrative Agent would be necessary in order to avoid
creating an appearance of impropriety on the part of Bank One.  Bank One (or any successor Administrative
Agent) may be removed as Administrative Agent by written notice received by
Administrative Agent from the Majority Lenders at any time with cause (i.e., a
breach by Bank One (or any successor Administrative Agent) of its duties as
Administrative Agent hereunder).  Upon
any such resignation or removal, JPMorgan shall be the successor Administrative
Agent (unless objected to by the Majority Lenders) or, if JPMorgan declines or
is so objected to, the Majority Lenders shall have the right, after consulting
with the Borrower and considering in good faith the Borrower’s opinion, to
appoint, on behalf of the Borrower and the Lenders, a successor Administrative
Agent.  If no successor Administrative
Agent shall have been so appointed by the Majority Lenders and shall have
accepted such appointment within thirty (30) days after the retiring
Administrative Agent’s giving notice of resignation, then the retiring
Administrative Agent may appoint, on behalf of the Borrower and the Lenders, a
successor Administrative Agent.  If a
successor Administrative Agent has been appointed by a retiring Administrative
Agent pursuant to the immediately preceding sentence, the Majority Lenders
shall have the right at any time thereafter to remove, without cause, such
successor Administrative Agent by written notice to such Administrative
Agent.  Any successor Administrative
Agent shall be a commercial bank having capital and retained earnings of at
least $1,000,000,000.  Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent (including the right to receive any fees
for performing such duties which accrue thereafter), and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents arising or accruing after the
effective date of such retirement. 
After any retiring Administrative Agent’s resignation hereunder as
Administrative Agent, the provisions of this Article XII shall
continue in effect for its benefit and that of the other Lenders in respect of
any actions taken or omitted to be taken by it while it was acting as the
Administrative Agent hereunder and under the other Loan Documents.

 

12.12                     Notice of Defaults.  If a Lender becomes aware of a Default or Event of Default, such
Lender shall notify the Administrative Agent of such fact.  Upon receipt of such notice that 

 

71

 

a Default or Event
of Default has occurred, the Administrative Agent shall notify each of the
Lenders of such fact.

 

12.13                     Requests for Approval.  If the Administrative Agent requests in
writing the consent or approval of a Lender and such request is delivered as
required hereunder, such Lender shall respond and either approve or disapprove
definitively in writing to the Administrative Agent within fifteen (15)
Business Days (or sooner if such notice specifies a shorter period, but in no
event less than ten (10) Business Days, for responses based on Administrative
Agent’s good faith determination that circumstances exist warranting its
request for an earlier response) after such written request from the
Administrative Agent.  If such request
is delivered as required hereunder, a Lender does not so respond and the
request from the Administrative Agent states that a Lender will be deemed to
have approved the applicable request if the Lender does not respond within the
applicable period, then such Lender shall be deemed to have approved the
request; provided, however, this sentence shall not apply to any request that
requires the consent or approval of all Lenders.  Upon request, the Administrative Agent shall notify the Lenders
which Lenders, if any, failed to respond to a request for approval.

 

12.14                     Copies of Documents.  Administrative Agent shall promptly deliver to
each of the Lenders copies of all notices of default and other formal notices
sent or received and according to Section 15.1 of this
Agreement.  Administrative Agent shall
deliver to Lenders within ten (10) Business Days following receipt, copies of
all financial statements, certificates and notices received regarding the
Borrower’s ratings except to the extent such items are required to be furnished
directly to the Lenders by Borrower hereunder. 
Within ten (10) Business Days after a request by a Lender to the
Administrative Agent for other documents furnished to the Administrative Agent
by the Borrower, the Administrative Agent shall provide copies of such
documents to such Lender except where this Agreement obligates Administrative
Agent to provide copies in a shorter period of time.

 

12.15                     Defaulting Lenders.  At such time as a Lender becomes a
Defaulting Lender, such Defaulting Lender’s right to vote on matters which are
subject to the consent or approval of the Majority Lenders, Required Lenders or
all Lenders, shall be immediately suspended until such time as the Lender is no
longer a Defaulting Lender and, during the period of such suspension, the
calculation of Majority Lenders and Required Lenders shall be made without
reference to such Defaulting Lender’s Percentage.  If a Defaulting Lender has failed to fund its Percentage of any
Advance and until such time as such Defaulting Lender subsequently funds its
Percentage of such Advance, all Obligations owing to such Defaulting Lender
hereunder shall be subordinated in right of payment, as provided in the
following sentence, to the prior payment in full of all principal of, interest
on and fees relating to the Loans funded by the other Lenders in connection
with any such Advance in which the Defaulting Lender has not funded its
Percentage (such principal, interest and fees being referred to as “Senior
Loans” for the purposes of this section). 
All amounts paid by the Borrower and otherwise due to be applied to the
Obligations owing to such Defaulting Lender pursuant to the terms hereof shall
be distributed by the Administrative Agent to the other Lenders in accordance
with their respective Percentages (recalculated for the purposes hereof to
exclude the Defaulting Lender) until all Senior Loans have been paid in
full.  At that point, the “Defaulting
Lender” shall no longer be deemed a Defaulting Lender and the remainder of the
Advances due to such “Defaulting Lender” shall no longer be subordinated but
shall be payable on the same basis as payments to the other Lenders.  After the Senior Loans 

 

72

 

have been paid in
full equitable adjustments will be made in connection with future payments by
the Borrower to the extent a portion of the Senior Loans had been repaid with
amounts that otherwise would have been distributed to a Defaulting Lender but
for the operation of this Section 12.15.  This provision governs only the relationship among the
Administrative Agent, each Defaulting Lender and the other Lenders; nothing
hereunder shall limit the obligation of the Borrower to repay all Loans in
accordance with the terms of this Agreement. 
The provisions of this Section 12.15 shall apply and be effective
regardless of whether a Default or Event of Default occurs and is continuing,
and notwithstanding (i) any other provision of this Agreement to the
contrary, (ii) any instruction of the Borrower as to its desired
application of payments or (iii) the suspension of such Defaulting
Lender’s right to vote on matters as provided above.

 

ARTICLE
XIII.

 

BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

 

13.1                           Successors and Assigns.

 

The terms and provisions of the Loan Documents shall
be binding upon and inure to the benefit of Borrower and the Lenders and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights or obligations under the Loan Documents without the
consent of all the Lenders and any assignment by any Lender must be made in
compliance with Section 13.3. 
The Administrative Agent may treat the payee of any Note as the owner
thereof for all purposes hereof unless and until such payee complies with Section 13.3
in the case of an assignment thereof or, in the case of any other transfer, a
written notice of the transfer is filed with the Administrative Agent.  Any assignee or transferee of a Note agrees
by acceptance thereof to be bound by all the terms and provisions of the Loan
Documents.  Any request, authority or
consent of any Person who at the time of making such request or giving such
authority or consent is the holder of any Note, shall be conclusive and binding
on any subsequent holder, transferee or assignee of such Note or of any Note or
Notes issued in exchange therefor.

 

13.2                           Participations.

 

13.2.1                  Permitted Participants; Effect.  With the prior written consent of the
Administrative Agent (and during the initial syndication of the Facility, the
Co-Syndication Agents) and the Borrower (which consents shall not be
unreasonably withheld or delayed), any Lender may, in the ordinary course of
its business and in accordance with applicable law, at any time sell to one or
more banks or other entities (“Participants”) participating interests in
any Advance owing to such Lender, any Note held by such Lender, any Commitment
of such Lender or any other interest of such Lender under the Loan Documents,
except that (i) no consent of Borrower shall be required for any such sale
if an Event of Default has occurred and is continuing and (ii) no consent
of any of the Administrative Agent, the Co-Syndication Agents or the Borrower
shall ever be required (A) for any such sale made to any Lender’s
Affiliate (including without limitation any special purpose entity holding
participations for purposes of issuing securities sponsored by such Lender,
such as commercial loan obligations) or (B) for any sale of a
participating interest in Competitive Bid Loans.  In 

 

73

 

the event of any such sale by a Lender of participating interests to a
Participant, such Lender’s obligations under the Loan Documents shall remain
unchanged, such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, such Lender shall remain the
holder of any such Note for all purposes under the Loan Documents, all amounts
payable by Borrower under this Agreement shall be determined as if such Lender
had not sold such participating interests, and Borrower and the Administrative
Agent and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under the
Loan Documents.

 

13.2.2                  Voting Rights.  Each Lender shall retain the sole right to
vote its Percentage of the Aggregate Commitment, without the consent of any
Participant, for the approval or disapproval of any amendment, modification or
waiver of any provision of the Loan Documents, provided that such Lender may
grant such Participant the right to approve any amendment, modification or
waiver which forgives principal, interest or fees or reduces the interest rate
or fees payable hereunder, postpones any date fixed for any regularly-scheduled
payment of principal of or interest on the Obligations, or extends the Maturity
Date, except as expressly provided for herein.

 

13.3                           Assignments.

 

13.3.1                  Permitted
Assignments.  Any Lender may,
with the prior written consent of the Administrative Agent (and during the
initial syndication of the Facility, the Co-Syndication Agents) and Borrower
(which consents shall not be unreasonably withheld or delayed), in accordance
with applicable law, at any time assign to one or more banks or other entities
(collectively, “Purchasers”) all, or a portion equal to $5,000,000 of
its Commitment or more, of its rights and obligations under the Loan Documents
to a Qualified Lender (as defined below), except that (i) no consent of
Borrower shall be required if an Event of Default has occurred and is
continuing and (ii) no consent of the Administrative Agent, the Co-Syndication
Agents or Borrower shall ever be required for (A) any assignment to any
Lender’s Affiliate or (B) the pledge or assignment by a Lender of such
Lender’s Note and other rights under the Loan Documents to any Federal Reserve
Bank in accordance with applicable law. 
Such assignments and assumptions shall be substantially in the form of Exhibit I
hereto.  “Qualified Lender” shall mean
an institution with assets over $1,000,000,000.00 that is generally in the
business of making loans comparable to the Loans made under this Facility and
that maintains an office in the United States
or an Affiliate of such an institution (provided that if such institution would
qualify as a Qualified Lender except for the fact that it does not maintain an
office in the United States, an Affiliate of such institution will be deemed a
Qualified Lender if such Affiliate maintains an office in the United
States).  Borrower shall execute
any and all documents which are customarily required by such Lender (including,
without limitation, a replacement promissory note or notes in the forms
provided hereunder) in connection with any such assignment, but Borrower shall
not be obligated to pay any fees and expenses incurred by any Lender in
connection with any assignment pursuant to this Section.  Any Lender selling all or any part of its
rights and obligation hereunder in a transaction requiring the consent of the
Administrative Agent shall pay to the Administrative Agent a fee of $3,500.00
per assignee to reimburse the Administrative 

 

74

 

Agent for its involvement in such assignment unless the assigning
Lender is being replaced pursuant to Section 4.3.

 

13.3.2                  Effect; Effective Date of Assignment.  Upon delivery to the Administrative Agent of
a notice of assignment executed by the assigning Lender and the Purchaser, such
assignment shall become effective on the effective date specified in such
notice of assignment.  The notice of
assignment shall contain a representation by the Purchaser to the effect that
none of the consideration used to make the purchase of the Commitment and the
Loans under the applicable assignment agreement are “plan assets” as defined
under ERISA and that the rights and interests of the Purchaser in and under the
Loan Documents will not be “plan assets” under ERISA.  On and after the effective date of such assignment, such
Purchaser shall for all purposes be a Lender party to this Agreement and any
other Loan Document executed by the Lenders and shall have all the rights and
obligations of a Lender under the Loan Documents, to the same extent as if it
were an original party hereto, and no further consent or action by Borrower,
the Lenders, the Administrative Agent or the Co-Syndication Agents shall be
required to release the transferor Lender with respect to the percentage of the
Commitment and Advances assigned to such Purchaser.  Upon the consummation of any assignment to a Purchaser pursuant
to this Section 13.3.2, the transferor Lender, the Administrative
Agent and Borrower shall make appropriate arrangements so that replacement
Notes are issued to such transferor Lender and new Notes or, as appropriate,
replacement Notes, are issued to such Purchaser, in each case in principal
amounts reflecting their respective Commitments, as adjusted pursuant to such
assignment.  The Borrower shall not bear
any of the costs associated with an assignment to a Purchaser unless the
assigning Lender is being replaced pursuant to Section 4.3.

 

13.4                           Dissemination of Information.  Borrower authorizes each Lender to disclose
to any Participant or Purchaser or any other Person acquiring an interest in
the Loan Documents by operation of law (each a “Transferee”) and any
prospective Transferee any and all information in such Lender’s possession concerning
the creditworthiness of Borrower.  Each
Transferee shall agree in writing to keep confidential any such information
which is not publicly available, subject to Section 14.18 hereof.

 

13.5                           Tax Treatment. 
If any interest in any Loan Document is transferred to any Transferee
which is organized under the laws of any jurisdiction other than the United
States or any State thereof, the transferor Lender shall cause such Transferee,
concurrently with the effectiveness of such transfer, to comply with all applicable
provisions of the Code with respect to withholding and other tax matters.

 

ARTICLE
XIV.

 

GENERAL
PROVISIONS

 

14.1                           Survival of Representations.  All representations and warranties contained
in this Agreement shall survive delivery of the Notes and the making of the
Advances herein contemplated.

 

75

 

14.2                           Governmental Regulation.  Anything contained in this Agreement to the
contrary notwithstanding, no Lender shall be obligated to extend credit to the Borrower
in violation of any limitation or prohibition provided by any applicable
statute or regulation.

 

14.3                           Taxes.  Any
recording and other taxes (excluding franchise, income or similar taxes) or
other similar assessments or charges payable or ruled payable by any
governmental authority incurred in connection with the consummation of the
transactions contemplated by this Agreement shall be paid by the Borrower,
together with interest and penalties, if any.

 

14.4                           Headings. 
Section headings in the Loan Documents are for convenience of reference
only, and shall not govern the interpretation of any of the provisions of the
Loan Documents.

 

14.5                           No Third Party Beneficiaries.  This Agreement shall not be construed so as
to confer any right or benefit upon any Person other than the parties to this
Agreement and their respective successors and assigns.

 

14.6                           Expenses; Indemnification.  Subject to the provisions of this Agreement,
Borrower will pay (a) all reasonable and customary out-of-pocket costs and
expenses incurred by the Administrative Agent or the Competitive Bid Option
Agent (including the reasonable fees, out-of-pocket expenses and other
reasonable expenses of counsel, which counsel may be employees of the
Administrative Agent or the Competitive Bid Option Agent) in connection with
the documentation and administration of the Facility, including without
limitation, the preparation, execution and delivery of this Agreement, the
Notes, the Loan Documents and any other agreements or documents referred to herein
or therein and any amendments or waivers thereto, (b) all out-of-pocket
costs and expenses incurred by the Administrative Agent, the Competitive Bid
Option Agent and the Lenders (including the reasonable fees, out-of-pocket
expenses and other reasonable expenses of counsel to the Administrative Agent,
the Competitive Bid Option Agent and the Lenders, which counsel may be
employees of Administrative Agent, the Competitive Bid Option Agent and/or the
Lenders) in connection with the enforcement and protection of the rights of the
Lenders under this Agreement, the Notes, the Loan Documents or any other
agreement or document referred to herein or therein, and (c) all reasonable and
customary costs and expenses (excluding internal salary costs) of periodic reviews
by the Administrative Agent’s personnel of the Borrower’s and Guarantors’ books
and records.  The Borrower further
agrees to indemnify the Administrative Agent, the Competitive Bid Option Agent,
the Arranger, the Lenders, and their respective directors, officers and
employees against all losses, claims, damages, penalties, judgments,
liabilities and reasonable expenses (including, without limitation, all
expenses of litigation or preparation therefor whether or not one of them is a
party thereto) which any of them may pay or incur arising out of or relating to
this Agreement, the other Loan Documents, the transactions contemplated hereby
or the direct or indirect application or proposed application of the proceeds
of any Advance hereunder, except that the foregoing indemnity shall not apply
to any entity to the extent that any such losses, claims, etc. are the result
of such entity’s gross negligence or willful misconduct.  The obligations of the Borrower under this
Section shall survive the termination of this Agreement.

 

14.7                           Severability of Provisions.  Any provision in any Loan Document that is
held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as
to that jurisdiction, be 

 

76

 

inoperative,
unenforceable, or invalid without affecting the remaining provisions in that
jurisdiction or the operation, enforceability, or validity of that provision in
any other jurisdiction, and to this end the provisions of all Loan Documents
are declared to be severable.

 

14.8                           Nonliability of the Lenders.  The relationship between the Borrower and
the Lenders shall be solely that of borrower and lender.  The Lenders shall not have any fiduciary
responsibilities to the Borrower.  The
Lenders undertake no responsibility to the Borrower to review or inform the
Borrower of any matter in connection with any phase of the Borrower’s business
or operations.

 

14.9                           Choice of Law. 
THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS
CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK, BUT GIVING EFFECT
TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

 

14.10                     Consent to Jurisdiction.  THE BORROWER HEREBY IRREVOCABLY SUBMITS TO
THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE
COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES
THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR
HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE
LENDERS TO BRING PROCEEDINGS AGAINST THE BORROWER IN THE COURTS OF ANY OTHER
JURISDICTION.  ANY JUDICIAL PROCEEDING
BY THE BORROWER AGAINST THE LENDERS OR ANY AFFILIATE OF THE LENDERS INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK,
NEW YORK.

 

14.11                     Waiver of Jury Trial.  THE BORROWER, THE GUARANTORS, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

 

14.12                     Successors and Assigns.  The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrower and
the Lenders and their respective successors and assigns, except that the
Borrower shall not have the right to assign its rights or obligations under the
Loan Documents.  Any assignee or
transferee of the Notes agrees by acceptance thereof to be bound by all the
terms and provisions of the Loan Documents. 
Any request, authority or consent of any Person, who at the time of
making such request or giving such authority or consent is the holder of the
Notes, shall be conclusive and binding on any 

 

77

 

subsequent holder,
transferee or assignee of such Notes or of any note or notes issued in exchange
therefor.

 

14.13                     Entire Agreement; Modification of Agreement.  The Loan Documents embody the entire
agreement among the Borrower, Guarantors, Competitive Bid Option Agent,
Administrative Agent, and Lenders and supersede all prior conversations,
agreements, understandings, commitments and term sheets among any or all of
such parties with respect to the subject matter hereof.  Any provisions of this Agreement may be
amended or waived if, but only if, such amendment or waiver is in writing, is
signed by the Borrower, unless such waiver solely affects the rights and
obligations among the Lenders and the Agents, and is signed by:

 

(a)                                  each
of the Lenders if such amendment or waiver

 

(i)                                     reduces
or forgives any payment of principal or interest on the Obligations (including,
without limitation, any amendment or waiver with respect to the Pricing Grid
attached as Exhibit A) or any fees payable by Borrower to such Lender
hereunder; or

 

(ii)                                  postpones
the date fixed for any payment of principal of or interest on the Obligations
or any fees payable by Borrower to such Lender hereunder; or

 

(iii)                               changes
the amount of such Lender’s Commitment (other than pursuant to a Commitment
reduction by the Borrower under Section 2.18 or an assignment
permitted under Section 13.3) or the unpaid principal amount of
such Lender’s Note; or

 

(iv)                              extends
the Maturity Date, except as expressly provided herein; or

 

(v)                                 releases
or limits the liability of the Borrower or a Guarantor under the Loan
Documents, except for releases of Unencumbered Asset Guarantors in accordance
with Section 8.12 (which releases may be made by the Administrative Agent); or

 

(vi)                              modifies
this Section 14.13; or

 

(vii)                           changes
the definition of Majority Lenders or Required Lenders or modifies any
requirement for consent by each of the Lenders; or

 

(b)                                 the
Majority Lenders, to the extent expressly provided for herein; or

 

(c)                                  the
Required Lenders, to the extent expressly provided for herein and in the case
of all other waivers or amendments if no percentage of Lenders is specified
herein.

 

Notwithstanding anything to the contrary herein, no
amendment of any provision of this Agreement which affects the Swing Line
Lenders in their capacity as Swing Line Lenders shall be effective without the
written consent of the Swing Line Lenders.

 

78

 

14.14                     Dealings with the Borrower.  The Lenders and their affiliates may accept
deposits from, extend credit to and generally engage in any kind of banking,
trust or other business with the Borrower or other member of the Consolidated
Group regardless of the capacity of the Lenders hereunder.

 

14.15                     Set-Off.

 

(a)                                  If
an Event of Default shall have occurred, each Lender shall have the right, at
any time and from time to time without notice to the Borrower, any such notice
being hereby expressly waived, to set-off and to appropriate or apply any and
all deposits of money or property or any other indebtedness at any time held or
owing by such Lender to or for the credit or the account of the Borrower
against and on account of all outstanding Obligations and all Obligations which
from time to time may become due hereunder and all other obligations and
liabilities of the Borrower under this Agreement, irrespective of whether or
not such Lender shall have made any demand hereunder and whether or not said
obligations and liabilities shall have matured.

 

(b)                                 Each
Lender agrees that if it shall, by exercising any right of set-off or
counterclaim or otherwise, receive payment of a proportion of the aggregate
amount of principal, interest or fees due with respect to any Note held by it
(other than payments with respect to Senior Loans under Section 12.15)
which is greater than the proportion received by any other Lender in respect of
the aggregate amount of principal, interest or fees due with respect to any
Note held by such other Lender, the Lender receiving such proportionately
greater payment shall purchase such participations in the Notes held by the
other Lenders and such other adjustments shall be made as may be required so
that all such payments of principal, interest or fees with respect to the Notes
held by the Lenders shall be shared by the Lenders pro rata according to their
respective Commitments.

 

14.16                     Counterparts. 
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart.  This Agreement shall be effective when it
has been executed by the Borrower, the Guarantors and each of the Lenders shown
on the signature pages hereof.

 

14.17                     Co-Documentation and Co-Syndication
Agents.  The parties to this
Agreement acknowledge and agree that neither the Co-Documentation Agents nor
the Co-Syndication Agents shall have any obligations under this Agreement
arising from such designations.

 

14.18                     Confidentiality.  Each Lender agrees to hold any confidential information which it
may receive from the Borrower pursuant to this Agreement in confidence, except
for disclosure (i) to its Affiliates and to other Lenders and their respective
Affiliates, (ii) to legal counsel, accountants, and other professional advisors
to such Lender or to a Transferee, (iii) to regulatory officials, (iv) to any
Person as requested pursuant to or as required by law, regulation, or legal
process, (v) to any Person in connection with any legal proceeding to which
such Lender is a party, (vi) to such Lender’s direct or indirect contractual
counterparties in swap agreements or to legal counsel, accountants and other
professional advisors to such counterparties, (vii) permitted by Section 13.4,
and (viii) to rating agencies if requested or required by such agencies in 

 

79

 

connection with a
rating relating to the Advances hereunder. 
Notwithstanding anything herein to the contrary, confidential
information shall not include, and each Lender (and each employee,
representative or other agent of any Lender) may disclose to any and all
Persons, without limitation of any kind, the “tax treatment” and “tax
structure” (in each case, within the meaning of Treasury Regulation
Section 1.6011-4) of the transactions contemplated hereby and all materials
of any kind (including opinions or other tax analyses) that are or have been
provided to such Lender relating to such tax treatment or tax structure; provided
that with respect to any document or similar item that in either case contains
information concerning such tax treatment or tax structure of the transactions
contemplated hereby as well as other information, this sentence shall only
apply to such portions of the document or similar item that relate to such tax
treatment or tax structure.  Neither the Borrower, any guarantor, any
non-borrower trustor, nor any subsidiary of any of the foregoing intends to
treat the Loan or the transactions contemplated by this Agreement and the other
Loan Documents as being a “reportable transaction” (within the meaning of
Treasury Regulation Section 1.6011-4). 
If the Borrower, or any other party to the Loan determines to take any
action inconsistent with such intention, the Borrower will promptly notify the
Agent thereof.  If the Borrower so
notifies the Administrative Agent, the Borrower acknowledges that each Lender
may treat its Loan as part of a transaction that is subject to Treasury
Regulation Section 301.6112-1, and each such Lender will maintain the lists and
other records, including the identity of the applicable party to the Loan as
required by such Treasury Regulation.

 

ARTICLE
XV.

 

NOTICES

 

15.1                           Giving Notice. 
All notices and other communications provided to any party hereto under
this Agreement or any other Loan Document shall be in writing or by telex or by
facsimile and addressed or delivered to such party at its address set forth
below or at such other address as may be designated by such party in a notice
to the other parties.  Any notice, if
mailed and properly addressed with postage prepaid, shall be deemed given when
received; any notice, if transmitted by telex or facsimile, shall be deemed
given when transmitted (answerback confirmed in the case of telexes).  Notice shall be given as follows:

 

To the Borrower:

 

The Rouse Company

10275 Little Patuxent Parkway

Columbia, Maryland 
21044-3456

Attention:                     Patricia H.
Dayton

Telecopy:                       (410)
964-3412

 

To Guarantors:

 

The Howard Research and Development Corporation

10275 Little Patuxent Parkway

Columbia, Maryland 
21044-3456

Attention: 
Patricia H. Dayton

 

80

 

Telecopy:                       (410)
964-3412

 

The Howard Hughes Corporation

Howard Hughes Properties, Inc.

10275 Little Patuxent Parkway

Columbia, Maryland 21044

Attention:                     General
Counsel

Telecopy:                       (410)
992-6392

 

Each of the above with a copy to:

 

The Rouse Company

10275 Little Patuxent Parkway

Columbia, Maryland 
21044-3456

Attention:                     General
Counsel

Telecopy:                       (410)
992-6392

 

To each Lender:

 

As shown below the Lender’s signature.

 

To the Administrative Agent and/or the Competitive Bid
Option Agent:

 

Bank One, NA

1 Bank One Plaza

Chicago, Illinois 
60670

Attention:                     Patricia
Leung

Corporate Real Estate

Telecopy:                       (312)
732-1117

 

With a copy to:

 

Sonnenschein Nath & Rosenthal LLP

8000 Sears Tower

Chicago, Illinois 
60606

Attention:                     Patrick G.
Moran, Esq.

Telecopy:                       (312)
876-7934

 

15.2                           Change of Address.  Each party may change the address for service of notice upon it
by a notice in writing to the other parties hereto.

 

IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the date first above written.

 

	
  BORROWER:

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

81

 

	
  THE LENDERS:

  	
  JPMORGAN CHASE BANK, for itself and as
  Co-Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $66,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment: 7.33334%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Charles Hoagland

  
	
   

  	
  270 Park Avenue, 4th Floor

  
	
   

  	
  New York, NY 10017

  
	
   

  	
  Telephone: 212-270-9557

  
	
   

  	
  Telecopy:

  
					

 

82

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY 

  AMERICAS, for itself and Co-Syndication Agent

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  	
  Commitment: 
  $66,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment: 7.33334%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention:  Ann Ramsey

  
	
   

  	
  200
  Crescent Court, Suite 550

  
	
   

  	
  Dallas,
  Texas  75201

  
	
   

  	
  Telephone:  214-740-7905

  
	
   

  	
  Telecopy:    214-740-7910

  
					

 

83

 

	
   

  	
  BANK ONE, NA, for itself and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $66,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  7.33333%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Patricia Leung

  
	
   

  	
  1 Bank One Plaza

  
	
   

  	
  Chicago, IL 60670-0315

  
	
   

  	
  Telephone: 312-732-8619

  
	
   

  	
  Telecopy:  
  312-732-1117

  
					

 

84

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $66,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  7.33333%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: 
  Matthew W. Sadler

  
	
   

  	
  IL1-231-10-35

  
	
   

  	
  231 South LaSalle Street

  
	
   

  	
  Chicago, IL 60697

  
	
   

  	
  Telephone: 
  312-828-7107

  
	
   

  	
  Telecopy:   
  312-974-4970

  
					

 

85

 

	
   

  	
  EUROHYPO AG, NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $66,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment: 7.33333%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Alfred Koch

  
	
   

  	
  1114 Avenue of the Americas

  
	
   

  	
  New York, NY 10036

  
	
   

  	
  Telephone: 
  212-479-5705

  
	
   

  	
  Telecopy:   
  212-479-5800

  
					

 

86

 

	
   

  	
  COMMERZBANK AG,  NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $50,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  5.55555%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: 
  Ralph C. Marra, Jr.

  
	
   

  	
  2 World Financial Center

  
	
   

  	
  New York, New York 
  10281

  
	
   

  	
  Telephone: 
  212-266-7761

  
	
   

  	
  Telecopy:   
  212-266-7565

  
					

 

87

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $50,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  5.55555%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: John C. Scott

  
	
   

  	
  1146 19th Street, N.W., 4th
  Fl.

  
	
   

  	
  Washington, D.C. 
  20036

  
	
   

  	
  Telephone: 
  202-452-4941

  
	
   

  	
  Telecopy:   
  202-452-4925

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
  Jennifer A. Dakin

  
	
   

  	
  1146 19th Street, N.W., 4th
  Fl.

  
	
   

  	
  Washington, D.C. 
  20036

  
	
   

  	
  Telephone: 
  202-452-4940

  
	
   

  	
  Telecopy:   
  202-452-4925

  
					

 

88

 

	
   

  	
  US BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $50,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  5.55555%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Matthew Lind

  
	
   

  	
  800 Nicollet Mall

  
	
   

  	
  Minneapolis, Minnesota  55402

  
	
   

  	
  Telephone: 
  612-303-3585

  
	
   

  	
  Telecopy:   
  612-303-2270

  
					

 

89

 

	
   

  	
  WELLS FARGO BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: $50,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  5.55555%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Erin Peart

  
	
   

  	
  1750 H Street, N.W. - Suite 400

  
	
   

  	
  Washington, D.C. 20006

  
	
   

  	
  Telephone 
  202-303-3012

  
	
   

  	
  Telecopy:  
  202-429-2984

  
					

 

90

 

	
   

  	
  ING REAL ESTATE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $35,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  3.88889%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: David Mazujian

  
	
   

  	
  230 Park Avenue

  
	
   

  	
  New York, New York 
  10169

  
	
   

  	
  Telephone: 
  212-883-2620

  
	
   

  	
  Telecopy:   
  212-883-2920

  
					

 

91

 

	
   

  	
  NATIONAL AUSTRALIA BANK LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $35,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  3.88889%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Erik Dowling

  
	
   

  	
  200 Park Avenue, 34th Floor

  
	
   

  	
  New York, New York 
  10166

  
	
   

  	
  Telephone: 
  212-916-9638

  
	
   

  	
  Telecopy:   
  212-983-7360

  
					

 

92

 

	
   

  	
  UBS AG, CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $35,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  3.88889%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Denise Conzo

  
	
   

  	
  667 Washington Boulevard

  
	
   

  	
  Stamford, CT 06901

  
	
   

  	
  Telephone: 203-719-3853

  
	
   

  	
  Telecopy:  
  203-719-3888

  
					

 

93

 

	
   

  	
  AMSOUTH BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $30,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  3.33333%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Lawrence Clark

  
	
   

  	
  1900 5th Avenue North - AST 9th
  Floor

  
	
   

  	
  Birmingham, AL 35203

  
	
   

  	
  Telephone: 205-581-7493

  
	
   

  	
  Telecopy:  
  205-326-4075

  
					

 

94

 

	
   

  	
  MANUFACTURERS AND TRADERS TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  2.77778%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Robin F. Fischer

  
	
   

  	
  25 South Charles Street, 17th Floor

  
	
   

  	
  Baltimore, MD 21201

  
	
   

  	
  Telephone: 410-545-2396

  
	
   

  	
  Telecopy:  
  410-545-2385

  
					

 

95

 

	
   

  	
  BANK OF NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  2.77778%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: 
  Neil Crawford

  
	
   

  	
  1 Liberty Plaza, 26th Floor

  
	
   

  	
  New York, NY 10006

  
	
   

  	
  Telephone: 212-225-5170

  
					

 

96

 

	
   

  	
  BAYERISCHE LANDESBANK, CAYMAN ISLANDS BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  2.77778%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: John Wain

  
	
   

  	
  560 Lexington Avenue

  
	
   

  	
  New York, New York 
  10022

  
	
   

  	
  Telephone: 
  212-310-9829

  
	
   

  	
  Telecopy: 
  212-230-9114

  
					

 

97

 

	
   

  	
  HVB BANK IRELAND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment: 2.77778%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Robert Dowling

  
	
   

  	
  622 Third Avenue

  
	
   

  	
  New York, NY 10017-6707

  
	
   

  	
  Telephone: 212-672-5733

  
	
   

  	
  Telecopy:  
  212-672-6193

  
					

 

98

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000

  	
   

  
	
   

  	
  Percentage of Aggregate Commitment:  2.77778%

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Timothy P. Gleeson

  
	
   

  	
  7200 Wisconsin Avenue, Suite 314

  
	
   

  	
  Bethesda, Maryland 
  20814

  
	
   

  	
  Telephone: 
  301-986-5227

  
	
   

  	
  Telecopy:   
  301-986-5279

  
					

 

99

 

	
   

  	
  ROYAL BANK OF CANADA

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  2.77778%

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Gordon MacArthur

  
	
   

  	
  One Liberty Plaza

  
	
   

  	
  165 Broadway, 3rd Floor

  
	
   

  	
  New York, New York 
  10006

  
	
   

  	
  Telephone: 
  212-428-2324

  
	
   

  	
  Telecopy:   
  212-428-6459

  
	
   

  	
   

  
	
   

  	
  With a copy to:

  
	
   

  	
   

  
	
   

  	
  Manager, Credit & Transaction Management

  
	
   

  	
  Attention: 
  J. Tyszewicz

  
	
   

  	
  One Liberty Plaza

  
	
   

  	
  165 Broadway, 3rd Floor

  
	
   

  	
  New York, New York 
  10006

  
	
   

  	
  Telephone:

  
	
   

  	
  Telecopy: 
  (416) 842-4020

  
					

 

100

 

	
   

  	
  UNION BANK OF CALIFORNIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000.00

  
	
   

  	
  Percentage of Aggregate Commitment:  2.77778%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Jennifer Pritchard

  
	
   

  	
  350 California Street 7th Floor

  
	
   

  	
  San Francisco, CA 94104

  
	
   

  	
  Telephone: 415-705-5032

  
	
   

  	
  Telecopy:  
  415-433-7438

  
					

 

101

 

	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Commitment: 
  $25,000,000

  	
   

  
	
   

  	
  Percentage of Aggregate Commitment:  2.77778%

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  	
   

  
	
   

  	
  Attention: David Hoagland

  	
   

  
	
   

  	
  1 Wachovia Center

  	
   

  
	
   

  	
  Charlotte, North Carolina  28288

  	
   

  
	
   

  	
  Telephone: 
  704-374-4809

  	
   

  
	
   

  	
  Telecopy:   
  704-383-6205

  	
   

  
					

 

102

 

	
   

  	
  CHANG HWA COMMERCIAL BANK, LTD., New York Branch

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Commitment: 
  $20,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  2.22222%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Ming-Hsien Lin

  
	
   

  	
  685 Third Avenue, 29th Floor

  
	
   

  	
  New York, New York 
  10017

  
	
   

  	
  Telephone: 
  212-651-9770

  
	
   

  	
  Telecopy:   
  212-651-9785

  
					

 

103

 

	
   

  	
  CHEVY CHASE BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Commitment: 
  $15,000,000

  
	
   

  	
  Percentage of Aggregate Commitment:  1.66667%

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
  Attention: Paula Moriarty-Storch

  
	
   

  	
  7501 Wisconsin Avenue, 12th Fl.

  
	
   

  	
  Bethesda, Maryland 
  20814

  
	
   

  	
  Telephone: 
  240-497-7758

  
	
   

  	
  Telecopy:   
  240-497-7714

  
					

 

104

 

EXHIBIT A

 

PRICING GRID

 

The “LIBOR Applicable Margin” and “Facility Fee Rate”
for any day are the respective percentages set forth below in the applicable
row under the column corresponding to the Status that exists on such day.

 

	
  Status

  	
   

  	
  Level I

  	
   

  	
  Level II

  	
   

  	
  Level III

  	
   

  	
  Level IV

  	
   

  	
  Level V

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR Applicable
  Margin

  	
   

  	
  0.600

  	
  %

  	
  0.650

  	
  %

  	
  0.700

  	
  %

  	
  0.900

  	
  %

  	
  1.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Fee
  Rate

  	
   

  	
  0.150

  	
  %

  	
  0.150

  	
  %

  	
  0.200

  	
  %

  	
  0.200

  	
  %

  	
  0.250

  	
  %

  

 

The credit ratings to be utilized for purposes of this
Pricing Grid are those ratings assigned to the senior unsecured long-term debt
securities of Rouse without third-party credit enhancement and any rating
assigned to any other debt security of Rouse shall be disregarded.  The rating in effect at any date is that in
effect at the close of business on such date. 
In the event of a difference or split between the ratings issued by
Moody’s and S&P, the lower rating shall apply.

 

For purposes of this Exhibit A, the following
terms have the following meanings:

 

“Level I Status” exists at any date if, at such
date, Rouse is rated “A-” or higher by S&P and “A3” or higher by Moody’s.

 

“Level II Status” exists at any date if, at such
date, (i) Rouse is rated “BBB+” or higher by S&P and “Baa1” or higher
by Moody’s and (ii) Level I Status does not exist.

 

“Level III Status” exists at any date if, at such
date, (i) Rouse is rated “BBB” or higher by S&P and “Baa2” or higher
by Moody’s and (ii) neither Level I Status nor Level II Status
exists.

 

“Level IV Status” exists at any date if, at such
date, (i) Rouse is rated “BBB-” or higher by S&P and “Baa3” or higher
by Moody’s and (ii) none of Level I Status, Level II Status and
Level III Status exists.

 

“Level V Status” exists at any date if, at such
date, (a) either (i) Rouse is not rated by either S&P or Moody’s
or (ii) none of Level I Status, Level II Status, Level III
Status and Level IV Status exists.

 

“Status” refers to the determination of which of
Level I Status, Level II Status, Level III Status, Level IV
Status or Level V Status exists at any date.

 

105

 

EXHIBIT B-1

 

FORM OF NOTE

 

	
  $                       

  	
   

  	
                       ,
  2003

  

 

On or before the Maturity Date, as defined in that
certain Third Amended and Restated Unsecured Revolving Credit Agreement dated
as of
                       ,
2003 (the “Agreement”) between THE ROUSE COMPANY (collectively, together
with certain of its wholly-owned subsidiaries, the “Borrower”), JPMorgan
Chase Bank, individually and as Co-Syndication Agent, Bank One, NA, a national
bank organized under the laws of the United States of America, individually and
as Administrative Agent for the Lenders and as Competitive Bid Option Agent,
and Deutsche Bank Trust Company Americas individually and as Co-Syndication
Agent, and the other Lenders listed on the signature pages of the Agreement,
Borrower promises to pay to the order of                                         
(the “Lender”), or its successors and assigns, the principal sum of
                        
AND NO/100 DOLLARS
($                       )
or the aggregate unpaid principal amount of all Loans (other than Competitive
Bid Loans) made by the Lender to the Borrower pursuant to Section 2.1
of the Agreement, without setoff or counterclaim, in immediately available
funds at the office of the Administrative Agent in Chicago, Illinois, together
with interest on the unpaid principal amount hereof at the rates and on the
dates set forth in the Agreement.  The
Borrower shall pay this Note (“Note”) in full on or before the Maturity
Date in accordance with the terms of the Agreement.

 

The Lender shall, and is hereby authorized to, record
on the schedule attached hereto, or to otherwise record in accordance with its
usual practice, the date and amount of each Advance and the date and amount of
each principal payment hereunder.

 

This Note is issued pursuant to, and is entitled to
the security under and benefits of, the Agreement and the other Loan Documents,
to which Agreement and Loan Documents, as they may be amended from time to
time, reference is hereby made for, inter  alia, a statement of
the terms and conditions under which this Note may be prepaid or its maturity
date accelerated.  Capitalized terms
used herein and not otherwise defined herein are used with the meanings
attributed to them in the Agreement.

 

If there is an Event of Default or Default under the
Agreement or any other Loan Document and Lender exercises its remedies provided
under the Agreement and/or any of the Loan Documents, then in addition to all
amounts recoverable by the Lender under such documents, Lender shall be
entitled to receive reasonable attorneys fees and expenses incurred by Lender
in exercising such remedies.

 

Borrower and all endorsers severally waive
presentment, protest and demand, notice of protest, demand and of dishonor and
nonpayment of this Note (except as otherwise expressly provided for in the
Agreement), and any and all lack of diligence or delays in collection or
enforcement of this Note, and expressly agree that this Note, or any payment
hereunder, may be extended from time to time, and expressly consent to the
release of any party liable for the obligation secured by this Note, the
release of any of the security of this Note, the acceptance of 

 

106

 

any other security therefor, or any other indulgence or forbearance
whatsoever, all without notice to any party and without affecting the liability
of the Borrower and any endorsers hereof.

 

This Note shall be governed and construed under the
internal laws of the State of Illinois.

 

BORROWER
AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT UNDER THIS
PROMISSORY NOTE OR ANY OTHER LOAN DOCUMENT OR RELATING THERETO OR ARISING FROM
THE LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS NOTE AND AGREE THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

	
   

  	
   

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

107

 

PAYMENTS OF PRINCIPAL

 

	
  Date

  	
   

  	
  Unpaid

  Principal

  Balance

  	
   

  	
  Notation

  Made by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

108

 

EXHIBIT B-2

 

FORM OF COMPETITIVE BID NOTE

 

                 ,
2003

 

On or before the last day of each “Interest Period”
applicable to a “Competitive Bid Loan”, as defined in that certain Third
Amended and Restated Unsecured Revolving Credit Agreement dated as of
                      ,
2003 (the “Agreement”) between THE ROUSE COMPANY (collectively, together
with certain of its wholly-owned subsidiaries, the “Borrower”), JPMorgan
Chase Bank, individually and as Co-Syndication Agent, Bank One, NA, a national
bank organized under the laws of the United States of America, individually and
as Administrative Agent for the Lenders and as Competitive Bid Option Agent,
Deutsche Bank Trust Company Americas, individually and as Co-Syndication Agent,
and the other Lenders listed on the signature pages of the Agreement, Borrower
promises to pay to the order of
                                           
(the “Lender”), or its successors and assigns, the unpaid principal amount of
such Competitive Bid Loan made by the Lender to the Borrower pursuant to Section 2.17
of the Agreement, without setoff or counterclaim, in immediately available
funds at the office of the Administrative Agent in Chicago, Illinois, together
with interest on the unpaid principal amount hereof at the rates and on the
dates established pursuant to the Agreement. 
The Borrower shall pay any remaining unpaid principal amount of such
Competitive Bid Loans under this Competitive Bid Note (“Note”) in full
on or before the Maturity Date in accordance with the terms of the Agreement.

 

The Lender shall, and is hereby authorized to, record
on the schedule attached hereto, or to otherwise record in accordance with its
usual practice, the date, amount and due date of each Competitive Bid Loan and
the date and amount of each principal payment hereunder.

 

This Note is issued pursuant to, and is entitled to
the security under and benefits of, the Agreement and the other Loan Documents,
to which Agreement and Loan Documents, as they may be amended from time to
time, reference is hereby made for, inter  alia, a statement of
the terms and conditions under which this Note may be prepaid or its maturity
date accelerated.  Capitalized terms
used herein and not otherwise defined herein are used with the meanings
attributed to them in the Agreement.

 

If there is an Event of Default or Default under the
Agreement or any other Loan Document and Lender exercises its remedies provided
under the Agreement and/or any of the Loan Documents, then in addition to all
amounts recoverable by the Lender under such documents, Lender shall be
entitled to receive reasonable attorneys fees and expenses incurred by Lender
in exercising such remedies.

 

Borrower and all endorsers severally waive
presentment, protest and demand, notice of protest, demand and of dishonor and
nonpayment of this Note (except as otherwise expressly provided for in the
Agreement), and any and all lack of diligence or delays in collection or
enforcement of this Note, and expressly agree that this Note, or any payment
hereunder, may be extended from time to time, and expressly consent to the
release of any party liable for the 

 

109

 

obligation secured by this Note, the release of any of the security of
this Note, the acceptance of any other security therefor, or any other
indulgence or forbearance whatsoever, all without notice to any party and
without affecting the liability of the Borrower and any endorsers hereof.

 

This Note shall be governed and construed under the
internal laws of the State of Illinois.

 

BORROWER AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY
WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHT UNDER THIS PROMISSORY NOTE OR ANY OTHER LOAN DOCUMENT OR
RELATING THERETO OR ARISING FROM THE LENDING RELATIONSHIP WHICH IS THE SUBJECT
OF THIS NOTE AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE
A COURT AND NOT BEFORE A JURY.

 

	
   

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

110

 

PAYMENTS OF PRINCIPAL

 

	
  Date

  	
   

  	
  Unpaid

  Principal

  Balance

  	
   

  	
  Notation

  Made by

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

111

 

EXHIBIT C-1

 

FORM OF COMPETITIVE BID
QUOTE REQUEST

(Section 2.17(b))

 

To:                                                                    Bank
One, NA

as competitive bid option
agent (the “Agent”)

 

From:                                                        The
Rouse Company (the “Borrower”)

 

Re:                                                                     Third
Amended and Restated Unsecured Revolving Credit Agreement dated as of
                          ,
2003 among the Borrower, the lenders from time to time party thereto, and Bank
One, NA, as Administrative Agent for such lenders (as amended, supplemented or
otherwise modified from time to time through the date hereof, the “Agreement”)

 

1.                                       Capitalized
terms used herein have the meanings assigned to them in the Agreement.

 

2.                                       We
hereby give notice pursuant to Section 2.17(b) of the Agreement
that we request Competitive Bid Quotes for the following proposed Competitive
Bid Loan(s):

 

Borrowing Date: 
                                ,
20    

 

	
   

  	
  Principal Amount(1)

  	
   

  	
  Interest Period(2)

  	
   

  

 

3.                                       Such
Competitive Bid Quotes should offer [a Competitive LIBOR Margin] [an Absolute
Rate].

 

 

(1)                                  Amount
must be at least $10,000,000 and an integral multiple of $1,000,000.

 

(2)                                  One
(1), two (2), three (3) or six (6) months (Competitive LIBOR Margin) or 14 to
180 days (Absolute Rate), subject to the provisions of the definitions of LIBOR
Interest Period and Absolute Interest Period.

 

112

 

 

4.                                       Upon
acceptance by the undersigned of any or all of the Competitive Bid Loans
offered by Lenders in response to this request, the undersigned shall be deemed
to affirm as of the Borrowing Date thereof the representations and warranties
made in Article VI of the Agreement.

 

 

	
   

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

113

 

EXHIBIT C-2

 

INVITATION FOR COMPETITIVE
BID QUOTES

(Section 2.17(c))

 

To:                                                                    Each
of the Lenders party to

the Agreement referred to
below

 

From:                                                        Bank
One, NA

 

Re:                                                                     Invitation
for Competitive Bid Quotes to

The Rouse Company (the
“Borrower”)

 

Pursuant to Section 2.17(c) of the Third
Amended and Restated Unsecured Revolving Credit Agreement dated as of
               ,
2003 among the Borrower, the lenders from time to time party thereto, JPMorgan
Chase Bank, Deutsche Bank Trust Company Americas and Bank One, NA (as amended,
supplemented or otherwise modified from time to time through the date hereof,
the “Agreement”), we are pleased on behalf of the Borrower to invite you to
submit Competitive Bid Quotes to the Borrower for the following proposed
Competitive Bid Loan(s):

 

Borrowing Date: 
                                ,
20       

 

	
   

  	
  Principal Amount

  	
   

  	
  Interest Period

  	
   

  

 

Such Competitive Bid Quotes should offer [a
Competitive LIBOR Margin] [an Absolute Rate]. 
Your Competitive Bid Quote must comply with Section 2.17(d)
of the Agreement and the foregoing. 
Capitalized terms used herein have the meanings assigned to them in the
Agreement.

 

Please respond to this invitation by no later than
[2:00 p.m. for a Competitive LIBOR Margin or 9:00 a.m. for an Absolute Rate]
(Chicago time) on
                           ,
20       .

 

	
   

  	
  BANK ONE, NA, 
  as Competitive Bid Option Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
					

 

114

 

EXHIBIT C-3

 

FORM OF COMPETITIVE BID
QUOTE

(Section 2.17(d))

 

                    ,
20     

 

To:                                                                    Bank
One, NA

as Competitive Bid Option
Agent

 

Re:                                                                     Competitive
Bid Quote to The Rouse Company

(collectively, together
with certain of its wholly-owned subsidiaries, the “Borrower”)

 

In response to your invitation on behalf of the
Borrower dated
                             ,
20      , we hereby make the following
Competitive Bid Quote pursuant to Section 2.17(d) of the Agreement
hereinafter referred to and on the following terms:

 

1.                                       Quoting
Lender:                                                                                                                                                  

 

2.                                       Person
to contact at Quoting
Lender:                                                                                                                  

 

3.                                       Borrowing
Date:                                                                                                                                              (3)

 

4.                             We
hereby offer to make Competitive Bid Loan(s) in the following principal
amounts, for the following Interest Periods and at the following rates:

 

	
  Principal
  Amount(4)

  	
   

  	
  Interest

  Period(5)

  	
   

  	
  [Competitive

  LIBOR Margin(6)]

  	
   

  	
  [Absolute

  Rate(7)]

  

 

We understand and agree that the offer(s) set forth
above, subject to the satisfaction of the applicable conditions set forth in
the Third Amended and Restated Unsecured Revolving Credit Agreement dated as of
                             ,
2003, among the Borrower, the lenders from time to
                                        

 

(3)                                  As
specified in the related Invitation For Competitive Bid Quotes.

(4)                                  Principal
amount bid for each Interest Period may not exceed the principal amount
requested.  Bids must be made for at
least $10,000,000 and integral multiples of $1,000,000.

(5)                                  One
(1), two (2), three (3) or six (6) months or 14 to 180 days, as specified in
the related Invitation For Competitive Bid Quotes.

(6)                                  Competitive
LIBOR Margin for the applicable LIBOR Interest Period.  Specify percentage (rounded to the nearest
1/100 of 1%) and specify whether “PLUS” or “MINUS”.

(7)                                  Specify
rate of interest per annum (rounded to the nearest 1/100 of 1%).

 

115

 

time party thereto, JPMorgan Chase Bank, Deutsche Bank Trust Company
Americas and Bank One, NA (as amended, supplemented or otherwise modified from
time to time through the date hereof, the “Agreement”), irrevocably obligates
us to make the Competitive Bid Loan(s) for which any offer(s) are accepted, in
whole or in part.  Capitalized terms
used herein and not otherwise defined herein shall have their meanings as
defined in the Agreement.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

116

EXHIBIT D

 

FORM OF LIMITED GUARANTY

(REVOLVING)

 

This Limited Guaranty
(Revolving) made as of July 30, 2003 (the “Guaranty”), by The
Howard Hughes Corporation and Howard Hughes Properties, Inc. jointly and
severally (each, individually, a “Guarantor” and collectively, the “Guarantor”),
to and for the benefit of JPMorgan Chase Bank, Deutsche Bank Trust Company
Americas and Bank One, NA, individually and as agents for themselves and the
other Lenders as defined in the Revolving Credit Agreement (as defined below)
and their respective successors and assigns (such agents and “Lenders” herein,
collectively, “Lender”).

 

RECITALS

 

A.                                             The
Rouse Company (collectively, with its Wholly-Owned Borrowing Subsidiaries (as
defined in the Revolving Credit Agreement), the “Borrower”)) and
Guarantor have requested that Lender make an unsecured revolving credit
facility available to Borrower in the aggregate principal amount of up to
$900,000,000 (“Revolving Facility”).

 

B.                                               Lender
has agreed to make the Revolving Facility available to Borrower pursuant to the
terms and conditions set forth in a Third Amended and Restated Unsecured
Revolving Credit Agreement of even date herewith (“Revolving Credit
Agreement”) among the Borrower and the Lender.  All capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to such terms in the Revolving Credit Agreement.

 

C.                                               Borrower
has executed and delivered to Lender Notes, each of even date herewith, in the
aggregate principal amount of $900,000,000 as evidence of its Obligations to
Lender with respect to the Revolving Facility. 
Borrower has also executed and delivered to each Lender a Competitive
Bid Note which evidences any Competitive Bid Loans which may be made by such
Lender under the Revolving Credit Agreement. 
The Notes and Competitive Bid Notes described above, together with any amendments
or allonges thereto, or restatements, replacements or renewals thereof, and/or
new promissory notes to new Lenders under the Revolving Credit Agreement, are
collectively referred to herein as the “Note”.

 

D.                                              Rouse
is a stockholder, directly or indirectly, of each entity comprising Guarantor,
and Guarantor will receive advances from time to time from Rouse out of the
proceeds of the Revolving Facility and, therefore, Guarantor will derive
financial benefit from the Revolving Facility evidenced by the Note, Revolving
Credit Agreement and the other Loan Documents. 
The execution and delivery of this Guaranty by Guarantor is a condition
precedent to the performance by Lender of its obligations under the Revolving
Credit Agreement.

 

117

 

AGREEMENTS

 

NOW, THEREFORE,
Guarantor, in consideration of the matters described in the foregoing Recitals,
which Recitals are incorporated herein and made a part hereof, and for other
good and valuable consideration, hereby agrees as follows:

 

1.                                                    Guarantor
absolutely, unconditionally, and irrevocably guarantees to Lender:

 

(a)                                  the
full and prompt payment of the principal of and interest on the Note when due,
whether at stated maturity, upon acceleration or otherwise, and at all times
thereafter, and the prompt payment of all sums which may now be or may
hereafter become due and owing under the Note, the Revolving Credit Agreement,
and the other Loan Documents;

 

(b)                                 the
payment of all Enforcement Costs (as hereinafter defined in Paragraph 7
hereof); and

 

(c)                                  the
full, complete, and punctual observance, performance, and satisfaction of all
of the obligations, duties, covenants, and agreements of Borrower under the
Revolving Credit Agreement and the Loan Documents.

 

All amounts due, debts, liabilities, and payment
obligations described in subparagraphs (a) and (b) of this Paragraph 1
are referred to herein as the “Facility Indebtedness.”  All obligations described in subparagraph
(c) of this Paragraph 1 are referred to herein as the “Obligations.”  All obligations described in subparagraphs
(a), (b) and (c) of this Paragraph 1 are referred to collectively
as the “Guaranteed Obligations”. 
Guarantor and Lender agree that each individual Guarantor’s obligations
hereunder shall not exceed the maximum amount not subject to avoidance under
Title 11 of the United States Code, as same may be amended from time to time,
or any applicable state law (the “Bankruptcy Code”).  To that end, to the extent such obligations would otherwise be
subject to avoidance under the Bankruptcy Code if such Guarantor is not deemed
to have received valuable consideration, fair value or reasonably equivalent
value for its obligations hereunder, any such Guarantor’s obligations hereunder
shall be reduced to that amount which, after giving effect thereto, would not
render such Guarantor insolvent, or leave such Guarantor with an unreasonably
small capital to conduct its business, or cause such Guarantor to have incurred
debts (or intended to have incurred debts) beyond its ability to pay such debts
as they mature, as such terms are determined, and at the time such obligations
are deemed to have been incurred, under the Bankruptcy Code.  In the event either of the entities comprising
the Guarantor shall make any payment or payments under this Guaranty, the other
entity comprising the Guarantor shall contribute to such paying entity an
amount equal to such non-paying entity’s pro rata share (based on their
respective maximum liabilities hereunder) of such payment or payments made by
such paying entity, provided that such contribution right shall be subordinate
and junior in right of payment to all the Guaranteed Obligations to Lender.

 

Notwithstanding anything herein to the contrary, the
maximum aggregate liability of both entities comprising the Guarantor under
this Guaranty to the Lender with respect to any portion of the aggregate
principal balances outstanding under the Revolving Credit Agreement that
becomes due and payable prior to the “Limitation End Date” (as defined below)
shall not exceed $250,000,000 (the “Maximum Principal Liability”).  The Guarantor’s Maximum Principal

 

118

 

Liability shall be reduced only by payments made by Guarantor to Lender
during the continuance of an Event of Default under the Revolving Credit
Agreement which are expressly identified in writing at the time of payment as
being made for such purpose.  Any
principal payments made by the Borrower, any other guarantor or from any other
source shall not reduce the Maximum Principal Liability, despite reducing the
aggregate principal balance outstanding under the Revolving Credit
Agreement.  The limitation imposed on a
Guarantor’s liability shall expire, and such Guarantor shall be liable for the
full principal balance of the Facility Indebtedness without regard to this
paragraph, on the date that those obligations of Borrower to deliver additional
stock of Borrower to certain “Holders” on account of those “Business Units” (as
such terms are defined in the Contingent Stock Agreement described below) which
are held by such Guarantor have either been terminated early by agreement or
expired in accordance with the terms of that certain Contingent Stock Agreement
dated as of January 1, 1996 (the “Limitation End Date”).  Guarantor shall not take any action, or
consent to any action by any other party, which would extend the current
Limitation End Date.

 

2.                                                    In
the event of any default by Borrower in making payment of the Facility
Indebtedness, or in performance of the Obligations, as aforesaid, in each case
beyond the expiration of any applicable grace period, Guarantor agrees, on
demand by Lender or the holder of the Note, to pay all the Facility
Indebtedness and to perform all the Obligations as are or then or thereafter
become due and owing or are to be performed under the terms of the Note, the
Revolving Credit Agreement and the other Loan Documents.  Lender shall have the right, at its option,
either before, during or after pursuing any other right or remedy against
Borrower or Guarantor, to perform any and all of the Obligations by or through
any agent, contractor or subcontractor, or any of their agents, of its
selection, all as Lender in its sole discretion deems proper, and Guarantor
shall indemnify and hold Lender free and harmless from and against any and all
loss, damage, cost, expense, injury, or liability Lender may suffer or incur in
connection with the exercise of its rights under this Guaranty or the
performance of the Obligations, except to the extent the same arises as a
result of the gross negligence or willful misconduct of Lender.

 

All of the remedies set
forth herein and/or provided by any of the Loan Documents or law or equity
shall be equally available to Lender, and the choice by Lender of one such
alternative over another shall not be subject to question or challenge by
Guarantor or any other person, nor shall any such choice be asserted as a
defense, set-off, or failure to mitigate damages in any action, proceeding, or
counteraction by Lender to recover or seeking any other remedy under this
Guaranty, nor shall such choice preclude Lender from subsequently electing to
exercise a different remedy.  The
parties have agreed to the alternative remedies hereinabove specified in part
because they recognize that the choice of remedies in the event of a failure
hereunder will necessarily be and should properly be a matter of business
judgment, which the passage of time and events may or may not prove to have
been the best choice to maximize recovery by Lender at the lowest cost to
Borrower and/or Guarantor.  It is the
intention of the parties that such choice by Lender be given conclusive effect
regardless of such subsequent developments.

 

3.                                                    Guarantor
does hereby waive (i) notice of acceptance of this Guaranty by Lender and
any and all notices and demands of every kind which may be required to be given
by any statute, rule or law, (ii) any defense, right of set-off or other
claim which Guarantor may have against the Borrower or which Guarantor or
Borrower may have against Lender or any holders of the Note (other than
defenses relating to payment of the Facility Indebtedness or the correctness

 

119

 

of any allegation by Lender that Borrower was in default in the
performance of the Obligations), (iii) presentment for payment, demand for
payment (other than as provided for in Paragraph 2 above), notice
of nonpayment (other than as provided for in Paragraph 2 above) or
dishonor, protest and notice of protest, diligence in collection and any and
all formalities which otherwise might be legally required to charge Guarantor
with liability, (iv) any failure by Lender to inform Guarantor of any
facts Lender may now or hereafter know about Borrower, the Revolving Facility,
or the transactions contemplated by the Revolving Credit Agreement, it being
understood and agreed that Lender has no duty so to inform and that the
Guarantor is fully responsible for being and remaining informed by the Borrower
of all circumstances bearing on the existence or creation, or the risk of
nonpayment of the Facility Indebtedness or the risk of nonperformance of the
Obligations, and (v) any and all right to cause a marshalling of assets of
the Borrower or any other action by any court or governmental body with respect
thereto, or to cause Lender to proceed against any other security given to
Lender in connection with the Facility Indebtedness or the Obligations.  Credit may be granted or continued from time
to time by Lender to Borrower without notice to or authorization from
Guarantor, regardless of the financial or other condition of the Borrower at
the time of any such grant or continuation. 
Lender shall have no obligation to disclose or discuss with Guarantor
its assessment of the financial condition of Borrower.  Guarantor acknowledges that no
representations of any kind whatsoever have been made by Lender to
Guarantor.  No modification or waiver of
any of the provisions of this Guaranty shall be binding upon Lender except as expressly
set forth in a writing duly signed and delivered on behalf of Lender.  Guarantor further agrees that any
exculpatory language contained in the Revolving Credit Agreement or the Note
shall in no event apply to this Guaranty, and will not prevent Lender from
proceeding against Guarantor to enforce this Guaranty.

 

4.                                                    Guarantor
further agrees that Guarantor’s liability as guarantor shall in nowise be
impaired by any renewals or extensions which may be made from time to time,
with or without the knowledge or consent of Guarantor, of the time for payment
of interest or principal under the Note or by any forbearance or delay in
collecting interest or principal under the Note, or by any waiver by Lender
under the Revolving Credit Agreement or any other Loan Documents, or by
Lender’s failure or election not to pursue any other remedies it may have
against Borrower, or by any change or modification in the Note, Revolving
Credit Agreement or any other Loan Documents, or by the acceptance by Lender of
any additional security or any increase, substitution or change therein, or by
the release by Lender of any security or any withdrawal thereof or decrease
therein, or by the application of payments received from any source to the
payment of any obligation other than the Facility Indebtedness, even though
Lender might lawfully have elected to apply such payments to any part or all of
the Facility Indebtedness, it being the intent hereof that Guarantor shall
remain liable as principal for payment of the Facility Indebtedness and
performance of the Obligations until all indebtedness has been paid in full and
the other terms, covenants and conditions of the Revolving Credit Agreement and
other Loan Documents and this Guaranty have been performed and the Aggregate
Commitment terminated, notwithstanding any act or thing which might otherwise
operate as a legal or equitable discharge of a surety.  Guarantor further understands and agrees
that Lender may at any time enter into agreements with Borrower to amend and
modify the Note, Revolving Credit Agreement or other Loan Documents, or any
thereof, and may waive or release any provision or provisions of the Note, the
Revolving Credit Agreement and other Loan Documents or any thereof, and, with
reference to such instruments, may make and enter into any such agreement or
agreements as

 

120

 

Lender and Borrower may deem proper and desirable, without in any
manner impairing this Guaranty or any of Lender’s rights hereunder or any of the
Guarantor’s obligations hereunder.

 

5.                                                    This
is an absolute, unconditional, complete, present and continuing guaranty of
payment and performance and not of collection. 
Guarantor agrees that this Guaranty may be enforced by Lender without
the necessity at any time of resorting to or exhausting any other security or
collateral given in connection herewith or with the Note, the Revolving Credit
Agreement or any of the other Loan Documents, or resorting to any other
guaranties, and Guarantor hereby waives the right to require Lender to join
Borrower in any action brought hereunder or to commence any action against or
obtain any judgment against Borrower or to pursue any other remedy or enforce
any other right.  Guarantor further
agrees that nothing contained herein or otherwise shall prevent Lender from
pursuing concurrently or successively all rights and remedies available to it
at law and/or in equity or under the Note, Revolving Credit Agreement or any
other Loan Documents, and the exercise of any of its rights or the completion
of any of its remedies shall not constitute a discharge of any of Guarantor’s
obligations hereunder, it being the purpose and intent of the Guarantor that
the obligations of such Guarantor hereunder shall be primary, absolute, independent
and unconditional under any and all circumstances whatsoever.  Neither Guarantor’s obligations under this
Guaranty nor any remedy for the enforcement thereof shall be impaired,
modified, changed or released in any manner whatsoever by any impairment,
modification, change, release or limitation of the liability of Borrower under
the Note, Revolving Credit Agreement or other Loan Documents or by reason of
Borrower’s bankruptcy or by reason of any creditor or bankruptcy proceeding
instituted by or against Borrower.  This
Guaranty shall continue to be effective and be deemed to have continued in
existence or be reinstated (as the case may be) if at any time payment of all
or any part of any sum payable pursuant to the Note, Revolving Credit Agreement
or any other Loan Document is rescinded or otherwise required to be returned by
the payee upon the insolvency, bankruptcy, or reorganization of the payor,
all as though such payment to Lender had not been made, regardless of whether
Lender contested the order requiring the return of such payment.  The obligations of Guarantor pursuant to the
preceding sentence shall survive any termination, cancellation, or release of
this Guaranty.

 

6.                                                    This
Guaranty shall be assignable by Lender to any assignee of all or a portion of
Lender’s rights under the Loan Documents.

 

7.                                                    If:  (i) this Guaranty, the Note or any
other Loan Document is placed in the hands of attorneys for collection or is
collected through any legal proceeding; (ii) attorneys are retained to
represent Lender in any bankruptcy, reorganization, receivership, or other
proceedings affecting creditors’ rights and involving a claim under this
Guaranty, the Note, the Revolving Credit Agreement, or any other Loan Document;
(iii) attorneys are retained to provide advice or other representation
with respect to the Loan Documents in connection with an enforcement action or
potential enforcement action; or (iv) attorneys are retained to represent
Lender in any other legal proceedings whatsoever in connection with this Guaranty,
the Note, the Revolving Credit Agreement, any of the other Loan Documents, or
any property subject thereto (other than any action or proceeding brought by
any Lender or participant against the Administrative Agent (as defined in the
Revolving Credit Agreement) alleging a breach by the Administrative Agent of
its duties under the Loan Documents), then Guarantor shall pay to Lender upon
demand all reasonable attorneys’ fees, costs and expenses, including, without
limitation, court costs, filing

 

121

 

fees, recording costs, expenses of foreclosure, title insurance
premiums, survey costs, minutes of foreclosure, and all other costs and
expenses incurred in connection therewith (all of which are referred to herein
as “Enforcement Costs”), in addition to all other amounts due hereunder.

 

8.                                                    The
parties hereto intend that each provision in this Guaranty comports with all
applicable local, state and federal laws and judicial decisions.  However, if any provision or provisions, or
if any portion of any provision or provisions, in this Guaranty is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute, law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Guaranty to be illegal, invalid, unlawful, void or unenforceable as written,
then it is the intent of all parties hereto that such portion, provision or
provisions shall be given force to the fullest possible extent that they are
legal, valid and enforceable, that the remainder of this Guaranty shall be
construed as if such illegal, invalid, unlawful, void or unenforceable portion,
provision or provisions were not contained therein, and that the rights,
obligations and interest of Lender or any holder of the Note under the
remainder of this Guaranty shall continue in full force and effect.

 

9.                                                    Any
indebtedness of Borrower to Guarantor now or hereafter existing is hereby
subordinated to the Facility Indebtedness. 
Guarantor agrees that until the entire Facility Indebtedness has been
paid in full and the aggregate Commitment is terminated, if an Event of Default
under the Revolving Credit Agreement exists and is continuing,
(i) Guarantor will not seek, accept, or retain for Guarantor’s own
account, any payment from Borrower on account of such subordinated debt, and
(ii) any such payments to Guarantor on account of such subordinated debt
shall be collected and received by Guarantor in trust for Lender and shall be
paid over to Lender on account of the Facility Indebtedness without impairing
or releasing the obligations of Guarantor hereunder.

 

10.                                              Unless
and until the Facility Indebtedness is repaid in full and the Aggregate
Commitment is terminated, Guarantor shall not assert any claim (within the
meaning of 11 U.S.C. § 101) which Guarantor may have against Borrower
arising from a payment made by Guarantor under this Guaranty and agrees not to
assert or take advantage of any subrogation rights of Guarantor or Lender or
any right of Guarantor or Lender to proceed against (i) Borrower for
reimbursement, or (ii) any other guarantor or any collateral security or
guaranty or right of offset held by Lender for the payment of the Facility
Indebtedness and performance of the Obligations, nor shall Guarantor seek or be
entitled to seek any contribution or reimbursement from Borrower or any other
guarantor in respect of payments made by Guarantor hereunder.  It is expressly understood that the waivers and
agreements of Guarantor set forth above constitute additional and cumulative
benefits given to Lender for its security and as an inducement for its
extension of credit to Borrower.

 

11.                                              Any
amounts received by Lender from any source on account of any indebtedness may
be applied by Lender toward the payment of such indebtedness, and in such order
of application, as Lender may from time to time elect.

 

12.                                              The
Guarantor hereby submits to personal jurisdiction in the State of Illinois for
the enforcement of this Guaranty and waives any and all personal rights to
object to such jurisdiction for the purposes of litigation to enforce this
Guaranty.  Guarantor hereby consents to
the

 

122

 

jurisdiction of either the Circuit Court of Cook County, Illinois, or
the United States District Court for the Northern District of Illinois, in any
action, suit, or proceeding which Lender may at any time wish to file in
connection with this Guaranty or any related matter.  Guarantor hereby agrees that an action, suit, or proceeding to
enforce this Guaranty may be brought in any state or federal court in the State
of Illinois and hereby waives any objection which Guarantor may have to the
laying of the venue of any such action, suit, or proceeding in any such court;
provided, however, that the provisions of this Paragraph shall not be deemed to
preclude Lender from filing any such action, suit, or proceeding in any other
appropriate forum.

 

13.                                              All
notices and other communications provided to any party hereto under this
Agreement or any other Loan Document shall be in writing or by telex or by
facsimile and addressed or delivered to such party at its address set forth
below or at such other address as may be designated by such party in a notice
to the other parties.  Any notice, if
mailed and properly addressed with postage prepaid, shall be deemed given when
received; any notice, if transmitted by telex or facsimile, shall be deemed
given when transmitted (answerback confirmed in the case of telexes and
facsimiles).  Notice may be given as
follows:

 

To Guarantors:

 

The Howard Hughes
Corporation

Howard Hughes Properties,
Inc.

10275 Little Patuxent
Parkway

Columbia, Maryland 20144

Attention:                        General
Counsel

Telecopy:                          (410)
992-6392

 

With a copy to:

 

The Rouse Company

10275 Little Patuxent
Parkway

Columbia, Maryland  21044-3456

Attention:                        General
Counsel

Telecopy:                          (410)
992-6392

 

To the Lender:

 

c/o Bank One, NA, as
Administrative Agent

1 Bank One Plaza

Chicago, Illinois  60670

Attention:                      Patricia
Leung, Corporate Real Estate

Telecopy:                          (312)
732-1117

 

123

 

With a copy to:

 

Sonnenschein Nath &
Rosenthal LLP

8000 Sears Tower

Chicago, Illinois  60606

Attention:                        Patrick G.
Moran, Esq.

Telecopy:                          (312)
876-7934

 

or at such other address or to such other person as
the party to be served with notice may have furnished in writing to the party
seeking or desiring to serve notice as a place for the service of notice.

 

14.                                              This
Guaranty shall be binding upon the heirs, executors, legal and personal
representatives, successors and assigns of Guarantor and shall inure to the
benefit of Lender’s successors and assigns. 
All liability of the entities comprising the Guarantor shall be joint
and several, subject to the limitations set forth in Paragraph 1
hereof.

 

15.                                              This
Guaranty shall be construed and enforced under the internal laws of the State
of New York.

 

16.                                            GUARANTOR
AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT UNDER THIS
GUARANTY OR ANY OTHER LOAN DOCUMENT OR RELATING THERETO OR ARISING FROM THE
LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS GUARANTY AND AGREE THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

17.                                              Guarantor
hereby joins the Revolving Credit Agreement for purposes of making all
representations and warranties of Guarantor (as defined in the Revolving Credit
Agreement) set forth therein and agreeing to all covenants of the Guarantor (as
defined in the Revolving Credit Agreement) set forth therein.  Guarantor hereby consents to the joinders of
the Operating Partnership and each Wholly-Owned Borrowing Subsidiary as
Borrowers pursuant to the provisions of the Revolving Credit Agreement.

 

124

 

IN WITNESS WHEREOF, each
entity comprising the Guarantor has delivered this Guaranty in the State of
Illinois as of the date first written above.

 

	
   

  	
  THE HOWARD HUGHES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOWARD HUGHES PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

ACCEPTED:

 

BANK ONE, NA,

not individually but as Administrative

Agent for the Lender

 

	
  By:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  

 

125

 

EXHIBIT D-1

 

FORM OF UNLIMITED
GUARANTY

(REVOLVING)

 

This Unlimited Guaranty
(Revolving) made as of July 30, 2003 (the “Guaranty”), by The
Howard Research and Development Corporation (the “Guarantor”), to and
for the benefit of JPMorgan Chase Bank, Deutsche Bank Trust Company Americas
and Bank One, NA , individually and as agents for themselves and the other
Lenders as defined in the Revolving Credit Agreement (as defined below) and
their respective successors and assigns (such agents and “Lenders” herein, collectively,
the “Lender”).

 

RECITALS

 

A.                                             The
Rouse Company (collectively, with its Wholly-Owned Borrowing Subsidiaries (as
defined in the Revolving Credit Agreement), “Borrower”)) and Guarantor
have requested that Lender make an unsecured revolving credit facility
available to Borrower in the aggregate principal amount of up to $900,000,000
(“Revolving Facility”).

 

B.                                               Lender
has agreed to make the Revolving Facility available to Borrower pursuant to the
terms and conditions set forth in a Third Amended and Restated Unsecured
Revolving Credit Agreement of even date herewith (“Revolving Credit
Agreement”) among the Borrower and the Lender.  All capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to such terms in the Revolving Credit Agreement.

 

C.                                               Borrower
has executed and delivered to Lender Notes, each of even date herewith, in the
aggregate principal amount of $900,000,000 as evidence of its Obligations to
Lender with respect to the Revolving Facility. 
Borrower has also executed and delivered to each Lender a Competitive
Bid Note which evidences any Competitive Bid Loans which may be made by such
Lender under the Revolving Credit Agreement. 
The Notes and Competitive Bid Notes described above, together with any
amendments or allonges thereto, or restatements, replacements or renewals
thereof, and/or new promissory notes to new Lenders under the Revolving Credit
Agreement, are collectively referred to herein as the “Note”.

 

D.                                              Rouse
is a stockholder, directly or indirectly, of Guarantor, and Guarantor will
receive advances from time to time from Rouse out of the proceeds of the
Revolving Facility and, therefore, Guarantor will derive financial benefit from
the Revolving Facility evidenced by the Note, Revolving Credit Agreement and
the other Loan Documents.  The execution
and delivery of this Guaranty is a condition precedent to the performance by
Lender of its obligations under the Revolving Credit Agreement.

 

126

 

AGREEMENTS

 

NOW, THEREFORE,
Guarantor, in consideration of the matters described in the foregoing Recitals,
which Recitals are incorporated herein and made a part hereof, and for other
good and valuable consideration, hereby agrees as follows:

 

1.                                                    Guarantor
absolutely, unconditionally, and irrevocably guarantees to Lender:

 

(a)                                  the
full and prompt payment of the principal of and interest on the Note when due,
whether at stated maturity, upon acceleration or otherwise, and at all times
thereafter, and the prompt payment of all sums which may now be or may
hereafter become due and owing under the Note, the Revolving Credit Agreement,
and the other Loan Documents;

 

(b)                                 the
payment of all Enforcement Costs (as hereinafter defined in Paragraph 7
hereof); and

 

(c)                                  the
full, complete, and punctual observance, performance, and satisfaction of all
of the obligations, duties, covenants, and agreements of Borrower under the
Revolving Credit Agreement and the Loan Documents.

 

All amounts due, debts, liabilities, and payment
obligations described in subparagraphs (a) and (b) of this Paragraph 1
are referred to herein as the “Facility Indebtedness.”  All obligations described in subparagraph
(c) of this Paragraph 1 are referred to herein as the “Obligations.”  All obligations described in subparagraphs
(a), (b) and (c) of this Paragraph 1 are referred to collectively
as the “Guaranteed Obligations”. 
Guarantor and Lender agree that Guarantor’s obligations hereunder shall
not exceed the maximum amount not subject to avoidance under Title 11 of the
United States Code, as same may be amended from time to time, or any applicable
state law (the “Bankruptcy Code”).  To
that end, to the extent such obligations would otherwise be subject to
avoidance under the Bankruptcy Code if Guarantor is not deemed to have received
valuable consideration, fair value or reasonably equivalent value for its
obligations hereunder, Guarantor’s obligations hereunder shall be reduced to
that amount which, after giving effect thereto, would not render Guarantor insolvent,
or leave Guarantor with an unreasonably small capital to conduct its business,
or cause Guarantor to have incurred debts (or intended to have incurred debts)
beyond its ability to pay such debts as they mature, as such terms are
determined, and at the time such obligations are deemed to have been incurred,
under the Bankruptcy Code.

 

2.                                                    In
the event of any default by Borrower in making payment of the Facility
Indebtedness, or in performance of the Obligations, as aforesaid, in each case
beyond the expiration of any applicable grace period, Guarantor agrees, on
demand by Lender or the holder of the Note, to pay all the Facility
Indebtedness and to perform all the Obligations as are or then or thereafter
become due and owing or are to be performed under the terms of the Note, the
Revolving Credit Agreement and the other Loan Documents.  Lender shall have the right, at its option,
either before, during or after pursuing any other right or remedy against
Borrower or Guarantor, to perform any and all of the Obligations by or through
any agent, contractor or subcontractor, or any of their agents, of its
selection, all as Lender in its sole discretion deems proper, and Guarantor
shall indemnify and hold Lender free and harmless from and against any

 

127

 

and all loss, damage, cost, expense, injury, or liability Lender may
suffer or incur in connection with the exercise of its rights under this
Guaranty or the performance of the Obligations, except to the extent the same
arises as a result of the gross negligence or willful misconduct of Lender.

 

All of the remedies set
forth herein and/or provided by any of the Loan Documents or law or equity
shall be equally available to Lender, and the choice by Lender of one such
alternative over another shall not be subject to question or challenge by
Guarantor or any other person, nor shall any such choice be asserted as a
defense, set-off, or failure to mitigate damages in any action, proceeding, or
counteraction by Lender to recover or seeking any other remedy under this
Guaranty, nor shall such choice preclude Lender from subsequently electing to
exercise a different remedy.  The
parties have agreed to the alternative remedies hereinabove specified in part
because they recognize that the choice of remedies in the event of a failure
hereunder will necessarily be and should properly be a matter of business
judgment, which the passage of time and events may or may not prove to have
been the best choice to maximize recovery by Lender at the lowest cost to
Borrower and/or Guarantor.  It is the
intention of the parties that such choice by Lender be given conclusive effect
regardless of such subsequent developments.

 

3.                                                    Guarantor
does hereby waive (i) notice of acceptance of this Guaranty by Lender and
any and all notices and demands of every kind which may be required to be given
by any statute, rule or law, (ii) any defense, right of set-off or other
claim which Guarantor may have against the Borrower or which Guarantor or Borrower
may have against Lender or any holders of the Note (other than defenses
relating to payment of the Facility Indebtedness or the correctness of any
allegation by Lender that Borrower was in default in the performance of the
Obligations), (iii) presentment for payment, demand for payment (other
than as provided for in Paragraph 2 above), notice of nonpayment
(other than as provided for in Paragraph 2 above) or dishonor,
protest and notice of protest, diligence in collection and any and all
formalities which otherwise might be legally required to charge Guarantor with
liability, (iv) any failure by Lender to inform Guarantor of any facts
Lender may now or hereafter know about Borrower, the Revolving Facility, or the
transactions contemplated by the Revolving Credit Agreement, it being
understood and agreed that Lender has no duty so to inform and that the
Guarantor is fully responsible for being and remaining informed by the Borrower
of all circumstances bearing on the existence or creation, or the risk of nonpayment
of the Facility Indebtedness or the risk of nonperformance of the Obligations,
and (v) any and all right to cause a marshalling of assets of the Borrower
or any other action by any court or governmental body with respect thereto, or
to cause Lender to proceed against any other security given to Lender in
connection with the Facility Indebtedness or the Obligations.  Credit may be granted or continued from time
to time by Lender to Borrower without notice to or authorization from
Guarantor, regardless of the financial or other condition of the Borrower at
the time of any such grant or continuation. 
Lender shall have no obligation to disclose or discuss with Guarantor
its assessment of the financial condition of Borrower.  Guarantor acknowledges that no representations
of any kind whatsoever have been made by Lender to Guarantor.  No modification or waiver of any of the
provisions of this Guaranty shall be binding upon Lender except as expressly
set forth in a writing duly signed and delivered on behalf of Lender.  Guarantor further agrees that any
exculpatory language contained in the Revolving Credit Agreement or the Note
shall in no event apply to this Guaranty, and will not prevent Lender from
proceeding against Guarantor to enforce this Guaranty.

 

128

 

4.                                                    Guarantor
further agrees that Guarantor’s liability as guarantor shall in nowise be
impaired by any renewals or extensions which may be made from time to time,
with or without the knowledge or consent of Guarantor, of the time for payment
of interest or principal under the Note or by any forbearance or delay in
collecting interest or principal under the Note, or by any waiver by Lender
under the Revolving Credit Agreement or any other Loan Documents, or by
Lender’s failure or election not to pursue any other remedies it may have
against Borrower, or by any change or modification in the Note, Revolving
Credit Agreement or any other Loan Documents, or by the acceptance by Lender of
any additional security or any increase, substitution or change therein, or by
the release by Lender of any security or any withdrawal thereof or decrease
therein, or by the application of payments received from any source to the
payment of any obligation other than the Facility Indebtedness, even though
Lender might lawfully have elected to apply such payments to any part or all of
the Facility Indebtedness, it being the intent hereof that Guarantor shall
remain liable as principal for payment of the Facility Indebtedness and performance
of the Obligations until all indebtedness has been paid in full and the other
terms, covenants and conditions of the Revolving Credit Agreement and other
Loan Documents and this Guaranty have been performed and the Aggregate
Commitment terminated, notwithstanding any act or thing which might otherwise
operate as a legal or equitable discharge of a surety.  Guarantor further understands and agrees
that Lender may at any time enter into agreements with Borrower to amend and
modify the Note, Revolving Credit Agreement or other Loan Documents, or any
thereof, and may waive or release any provision or provisions of the Note, the
Revolving Credit Agreement and other Loan Documents or any thereof, and, with
reference to such instruments, may make and enter into any such agreement or
agreements as Lender and Borrower may deem proper and desirable, without in any
manner impairing this Guaranty or any of Lender’s rights hereunder or any of
the Guarantor’s obligations hereunder.

 

5.                                                    This
is an absolute, unconditional, complete, present and continuing guaranty of
payment and performance and not of collection. 
Guarantor agrees that this Guaranty may be enforced by Lender without
the necessity at any time of resorting to or exhausting any other security or
collateral given in connection herewith or with the Note, the Revolving Credit
Agreement or any of the other Loan Documents, or resorting to any other
guaranties, and Guarantor hereby waives the right to require Lender to join
Borrower in any action brought hereunder or to commence any action against or
obtain any judgment against Borrower or to pursue any other remedy or enforce
any other right.  Guarantor further
agrees that nothing contained herein or otherwise shall prevent Lender from
pursuing concurrently or successively all rights and remedies available to it
at law and/or in equity or under the Note, Revolving Credit Agreement or any
other Loan Documents, and the exercise of any of its rights or the completion
of any of its remedies shall not constitute a discharge of any of Guarantor’s
obligations hereunder, it being the purpose and intent of the Guarantor that
the obligations of Guarantor hereunder shall be primary, absolute, independent
and unconditional under any and all circumstances whatsoever.  Neither Guarantor’s obligations under this
Guaranty nor any remedy for the enforcement thereof shall be impaired,
modified, changed or released in any manner whatsoever by any impairment,
modification, change, release or limitation of the liability of Borrower under
the Note, Revolving Credit Agreement or other Loan Documents or by reason of
Borrower’s bankruptcy or by reason of any creditor or bankruptcy proceeding
instituted by or against Borrower.  This
Guaranty shall continue to be effective and be deemed to have continued in
existence or be reinstated (as the case may be) if at any time payment of all
or any part of any sum payable pursuant to the Note, Revolving Credit Agreement
or any other Loan Document is

 

129

 

rescinded or otherwise required to be returned by the payee upon the
insolvency, bankruptcy, or reorganization of the payor, all as though such
payment to Lender had not been made, regardless of whether Lender contested the
order requiring the return of such payment. 
The obligations of Guarantor pursuant to the preceding sentence shall
survive any termination, cancellation, or release of this Guaranty.

 

6.                                                    This
Guaranty shall be assignable by Lender to any assignee of all or a portion of
Lender’s rights under the Loan Documents.

 

7.                                                    If:  (i) this Guaranty, the Note or any
other Loan Document is placed in the hands of attorneys for collection or is
collected through any legal proceeding; (ii) attorneys are retained to
represent Lender in any bankruptcy, reorganization, receivership, or other
proceedings affecting creditors’ rights and involving a claim under this
Guaranty, the Note, the Revolving Credit Agreement, or any other Loan Document;
(iii) attorneys are retained to provide advice or other representation
with respect to the Loan Documents in connection with an enforcement action or
potential enforcement action; or (iv) attorneys are retained to represent
Lender in any other legal proceedings whatsoever in connection with this
Guaranty, the Note, the Revolving Credit Agreement, any of the other Loan
Documents, or any property subject thereto (other than any action or proceeding
brought by any Lender or participant against the Administrative Agent (as
defined in the Revolving Credit Agreement) alleging a breach by the
Administrative Agent of its duties under the Loan Documents), then Guarantor
shall pay to Lender upon demand all reasonable attorneys’ fees, costs and
expenses, including, without limitation, court costs, filing fees, recording
costs, expenses of foreclosure, title insurance premiums, survey costs, minutes
of foreclosure, and all other costs and expenses incurred in connection
therewith (all of which are referred to herein as “Enforcement Costs”),
in addition to all other amounts due hereunder.

 

8.                                                    The
parties hereto intend that each provision in this Guaranty comports with all
applicable local, state and federal laws and judicial decisions.  However, if any provision or provisions, or
if any portion of any provision or provisions, in this Guaranty is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute, law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this Guaranty
to be illegal, invalid, unlawful, void or unenforceable as written, then it is
the intent of all parties hereto that such portion, provision or provisions
shall be given force to the fullest possible extent that they are legal, valid
and enforceable, that the remainder of this Guaranty shall be construed as if
such illegal, invalid, unlawful, void or unenforceable portion, provision or
provisions were not contained therein, and that the rights, obligations and
interest of Lender or any holder of the Note under the remainder of this
Guaranty shall continue in full force and effect.

 

9.                                                    Any
indebtedness of Borrower to Guarantor now or hereafter existing is hereby
subordinated to the Facility Indebtedness. 
Guarantor agrees that until the entire Facility Indebtedness has been
paid in full and the aggregate Commitment is terminated, if an Event of Default
under the Revolving Credit Agreement exists and is continuing,
(i) Guarantor will not seek, accept, or retain for Guarantor’s own
account, any payment from Borrower on account of such subordinated debt, and
(ii) any such payments to Guarantor on account of such subordinated debt
shall be collected and received by Guarantor in trust for Lender and shall be

 

130

 

paid over to Lender on account of the Facility Indebtedness without
impairing or releasing the obligations of Guarantor hereunder.

 

10.                                              Unless
and until the Facility Indebtedness is repaid in full and the Aggregate
Commitment is terminated, Guarantor shall not assert any claim (within the
meaning of 11 U.S.C. § 101) which Guarantor may have against Borrower
arising from a payment made by Guarantor under this Guaranty and agrees not to
assert or take advantage of any subrogation rights of Guarantor or Lender or
any right of Guarantor or Lender to proceed against (i) Borrower for
reimbursement, or (ii) any other guarantor or any collateral security or
guaranty or right of offset held by Lender for the payment of the Facility
Indebtedness and performance of the Obligations, nor shall Guarantor seek or be
entitled to seek any contribution or reimbursement from Borrower or any other
guarantor in respect of payments made by Guarantor hereunder.  It is expressly understood that the waivers
and agreements of Guarantor set forth above constitute additional and
cumulative benefits given to Lender for its security and as an inducement for
its extension of credit to Borrower.

 

11.                                              Any
amounts received by Lender from any source on account of any indebtedness may be
applied by Lender toward the payment of such indebtedness, and in such order of
application, as Lender may from time to time elect.

 

12.                                              The
Guarantor hereby submits to personal jurisdiction in the State of Illinois for
the enforcement of this Guaranty and waives any and all personal rights to
object to such jurisdiction for the purposes of litigation to enforce this
Guaranty.  Guarantor hereby consents to
the jurisdiction of either the Circuit Court of Cook County, Illinois, or the
United States District Court for the Northern District of Illinois, in any
action, suit, or proceeding which Lender may at any time wish to file in
connection with this Guaranty or any related matter.  Guarantor hereby agrees that an action, suit, or proceeding to
enforce this Guaranty may be brought in any state or federal court in the State
of Illinois and hereby waives any objection which Guarantor may have to the
laying of the venue of any such action, suit, or proceeding in any such court;
provided, however, that the provisions of this Paragraph shall not be deemed to
preclude Lender from filing any such action, suit, or proceeding in any other
appropriate forum.

 

13.                                              All
notices and other communications provided to any party hereto under this
Agreement or any other Loan Document shall be in writing or by telex or by
facsimile and addressed or delivered to such party at its address set forth
below or at such other address as may be designated by such party in a notice
to the other parties.  Any notice, if
mailed and properly addressed with postage prepaid, shall be deemed given when
received; any notice, if transmitted by telex or facsimile, shall be deemed
given when transmitted (answerback confirmed in the case of telexes and
facsimiles).  Notice may be given as
follows:

 

131

 

To Guarantors:

 

The Howard Research and
Development Corporation

10275 Little Patuxent
Parkway

Columbia, Maryland  21044-3456

Attention:                        Patricia
H. Dayton

Telecopy:                          (410)
964-3412

 

With a copy to:

 

The Rouse Company

10275 Little Patuxent
Parkway

Columbia, Maryland  21044-3456

Attention:                        General
Counsel

Telecopy:                          (410)
992-6392

 

To the Lender:

 

c/o Bank One, NA, as
agent

1 Bank One Plaza

Chicago, Illinois  60670

Attention:                        Patricia
Leung, Corporate Real Estate

Telecopy:                          (312)
732-1117

 

With a copy to:

 

Sonnenschein Nath &
Rosenthal LLP

8000 Sears Tower

Chicago, Illinois  60606

Attention:                        Patrick G.
Moran, Esq.

Telecopy:                          (312)
876-7934

 

or at such other address or to such other person as
the party to be served with notice may have furnished in writing to the party
seeking or desiring to serve notice as a place for the service of notice.

 

14.                                              This
Guaranty shall be binding upon the heirs, executors, legal and personal
representatives, successors and assigns of Guarantor and shall inure to the
benefit of Lender’s successors and assigns.

 

15.                                              This
Guaranty shall be construed and enforced under the internal laws of the State
of New York.

 

16.                                            GUARANTOR
AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT UNDER THIS
GUARANTY OR ANY OTHER LOAN DOCUMENT OR RELATING THERETO OR ARISING FROM THE
LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS

 

132

 

GUARANTY AND AGREE THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

17.                                              Guarantor
hereby joins the Revolving Credit Agreement for purposes of making all
representations and warranties of Guarantor (as defined in the Revolving Credit
Agreement) set forth therein and agreeing to all covenants of the Guarantor (as
defined in the Revolving Credit Agreement) set forth therein.  Guarantor hereby consents to the joinders of
the Operating Partnership and each Wholly-Owned Borrowing Subsidiary as
Borrowers pursuant to the provisions of the Revolving Credit Agreement.

 

IN WITNESS WHEREOF,
Guarantor has delivered this Guaranty in the State of Illinois as of the date
first written above.

 

	
   

  	
  THE HOWARD RESEARCH AND DEVELOPMENT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
					

 

ACCEPTED:

 

BANK ONE, NA,

not individually but as Administrative

Agent for the Lender

 

	
  By:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  
				

 

133

 

EXHIBIT E

 

OPINION OF BORROWER’S
COUNSEL

 

               ,
2003

 

The Administrative Agent,

     JPMorgan Chase Bank,

     Individually and as
Co-Syndication Agent,

     Deutsche Bank Trust Company
Americas, Individually and as

      Co-Syndication Agent,

     and the other Lenders who
are parties

     to the Credit Agreement
described below

c/o Bank One, NA,

     as Administrative Agent for
the Lenders

1 Bank One Plaza

Chicago, Illinois  60670

 

Ladies and Gentlemen:

 

I am Vice-President and General Counsel of The Rouse
Company, a Maryland corporation (the “Borrower”) and I have been asked to
render this opinion on behalf of the Borrower. 
I have represented the Borrower in connection with its execution and
delivery of  (i) the Third Amended and
Restated Unsecured Revolving Credit Agreement among the Borrower, the
Guarantors, Bank One, NA, individually and as Administrative Agent, JPMorgan
Chase Bank, individually and as Co-Syndication Agent, Deutsche Bank Trust
Company Americas, individually and as Co-Syndication Agent, JPMorgan
Securities, Inc. and Deutsche Bank Securities, Inc. as joint sole lead
arrangers and book runners and the other Lenders named therein, providing for
Advances in an initial aggregate principal amount of up to $900,000,000 and
dated as of July 30, 2003 (the “Agreement”), and (ii) the Reaffirmation of
Pledge Agreement made by the Pledgors in favor of the Agent and dated as of
July 30, 2003 (the “Pledge Agreement”). 
All capitalized terms used in this opinion and not otherwise defined
herein shall have the meanings as set forth in the Agreement or the Pledge
Agreement, as applicable.

 

In that connection, I have examined the Borrower’s
articles of incorporation, bylaws, resolutions, the Loan Documents and such
documents and statutory or other material as I deemed necessary or appropriate
to render the opinions expressed below. 
I have assumed the authenticity of all documents submitted to me as
copies.

 

Based upon and subject to the foregoing and to the
qualifications, limitations and exceptions contained below, I am of the opinion
that:

 

1.                                       The
Borrower and each Subsidiary are corporations duly incorporated and existing
under the respective laws of their State of incorporation, and are duly
qualified as foreign corporations and properly licensed (if required) and in
good standing in each jurisdiction

 

134

 

in which the failure to qualify or be licensed would constitute a
Material Adverse Financial Change or have a Material Adverse Effect.

 

2.                                       The
execution and delivery of the Loan Documents by the Borrower and the
performance by the Borrower of the Obligations have been duly authorized by all
necessary corporate action and proceedings on the part of the Borrower and will
not:

 

(a)                                  require
any consent of the Borrower’s shareholders;

 

(b)                                 violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on the Borrower or any of its Subsidiaries or the Borrower’s or any
Subsidiary’s articles of incorporation or bylaws or any indenture, instrument
or agreement binding upon the Borrower or any of its Subsidiaries; or

 

(c)                                  result
in, or require, the creation or imposition of any Lien pursuant to the
provisions of any indenture, instrument or agreement binding upon the Borrower
or any of its Subsidiaries.

 

3.                                       The
Loan Documents have been duly executed and delivered by the Borrower and
constitute legal, valid and binding obligations of the Borrower enforceable in
accordance with their terms except to the extent such enforcement may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally and subject also to the availability of equitable
remedies if equitable remedies are sought.

 

4.                                       There
are no suits, arbitrations, claims, disputes or other proceedings (including,
without limitation, any civil, criminal, administrative or environmental
proceedings), pending, or to the best of my knowledge, threatened against or
affecting the Borrower or any of the Properties, which individually or in the
aggregate may reasonably be expected to have a Material Adverse Effect and/or
constitute a Material Adverse Financial Change or materially impair the
Borrower’s ability to perform its obligations under the Loan Documents.

 

5.                                       No
approval, authorization, consent, adjudication or order of any governmental
authority, which has not been obtained by the Borrower or any of its
Subsidiaries, is required to be obtained by the Borrower or any of its
Subsidiaries in connection with the execution and delivery of the Loan
Documents, the borrowings under the Agreement or in connection with the payment
by the Borrower of the Obligations.

 

In rendering the opinions expressed in the foregoing
paragraphs, I have relied, with your approval, upon such certificates of
officers of the Company as to matters of fact as I deemed necessary and
appropriate.  I wish to advise you
further that I am a member of the Bar of the State of Maryland and accordingly
limit the applicability of the opinions contained herein to matters governed by
the laws of the State of Maryland and the Federal laws of the United States of
America.  With respect to the opinions
expressed in paragraph 3, I have assumed that there is no difference between
the laws of the State of Maryland and the applicable laws of the State of New
York.

 

This opinion is rendered solely for your information
and assistance in connection with the above transaction and may not be quoted
or relied upon by any other person, except, to the extent

 

135

 

permitted by the Loan Documents, the Administrative Agent, the
Co-Syndication Agents, the other Lenders and their participants, assignees and
other transferees, or for any other purpose without my prior written consent.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Gordon H. Glenn

  
	
   

  	
  Vice-President and General Counsel

  
	
   

  	
  (410) 992-6405

  

 

136

 

EXHIBIT F

 

FORM OF OPINION OF
GUARANTOR’S (OTHER THAN UNENCUMBERED ASSET GUARANTORS’) COUNSEL

 

                    ,
2000

 

The Administrative Agent,

     JPMorgan Chase Bank,

     Individually and as
Co-Syndication Agent,

     Deutsche Bank Trust Company
Americas, Individually and as

      Co-Syndication Agent,

     and the other Lenders who
are parties

     to the Credit Agreement
described below

c/o Bank One, NA,

     as Administrative Agent for the Lenders

1 Bank One Plaza

Chicago, Illinois  60670

 

Ladies and Gentlemen:

 

I am a Vice-President and General Counsel of The
Howard Research and Development Corporation, a Maryland corporation (the
“Guarantor”) and I have been asked to render this opinion on behalf of the
Guarantor.  I have represented the
Guarantor in connection with its execution and delivery of (i) the Third
Amended and Restated Unsecured Revolving Credit Agreement among the Borrower,
Bank One, NA, individually and as Administrative Agent, JPMorgan Chase Bank,
individually and as Co-Syndication Agent, Deutsche Bank Trust Company Americas,
Individually and as Co-Syndication Agent, JPMorgan Chase Securities, Inc. and
Deutsche Bank Securities, Inc. as joint sole lead arrangers and book runners
and the other Lenders named therein, providing for Advances in an initial
aggregate principal amount of up to $900,000,000 and dated as of July 30,
2003 (the “Agreement”), and (ii) Unlimited Guaranty (Revolving) (the “Guaranty”)
under the Agreement.  All capitalized
terms used in this opinion and not otherwise defined herein shall have the
meanings as set forth in the Agreement.

 

In that connection, I have examined the Guarantor’s
articles of incorporation, bylaws, resolutions, the Loan Documents and such
documents and statutory or other material as I deemed necessary or appropriate
to render the opinions expressed below. 
I have assumed the authenticity of all documents submitted to me as
copies.

 

Based upon and subject to the foregoing and to the
qualifications, limitations and exceptions contained below, I am of the opinion
that:

 

1.                                       The
Guarantor is a corporation duly incorporated and existing under the  laws of the State of  its incorporation, and is duly qualified as
a foreign corporation and properly licensed (if required) and in good standing
in each jurisdiction in which the failure to qualify or be

 

137

 

licensed would constitute a Material Adverse Financial Change or have a
Material Adverse Effect.

 

2.                                       The
execution and delivery of the Loan Documents by the Guarantor and the
performance by the Guarantor of the Obligations have been duly authorized by
all necessary corporate action and proceedings on the part of the Guarantor and
will not:

 

(a)                                  require
any consent of the Guarantor’s shareholders;

 

(b)                                 violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on the Guarantor or any of its Subsidiaries or the Guarantor’s or any
of its Subsidiary’s articles of incorporation or bylaws or any indenture,
instrument or agreement binding upon the Guarantor or any of its Subsidiaries;
or

 

(c)                                  result
in, or require, the creation or imposition of any Lien pursuant to the
provisions of any indenture, instrument or agreement binding upon the Guarantor
or any of its Subsidiaries.

 

3.                                       The
Loan Documents have been duly executed and delivered by the Guarantor and
constitute legal, valid and binding obligations of the Guarantor enforceable in
accordance with their terms except to the extent such enforcement may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally and subject also to the availability of equitable
remedies if equitable remedies are sought.

 

4.                                       There
are no suits, arbitrations, claims, disputes or other proceedings (including,
without limitation, any civil, criminal, administrative or environmental
proceedings), pending, or to the best of my knowledge, threatened against or
affecting the Guarantor or any of its Properties, which individually or in the
aggregate may reasonably be expected to have a Material Adverse Effect and/or
constitute a Material Adverse Financial Change or materially impair the
Guarantor’s ability to perform its obligations under the Loan Documents.

 

5.                                       No
approval, authorization, consent, adjudication or order of any governmental
authority, which has not been obtained by the Guarantor or any of its
Subsidiaries, is required to be obtained by the Guarantor or any of its
Subsidiaries in connection with the execution and delivery of the Loan
Documents, the borrowings under the Agreement or in connection with the payment
by the Guarantor of the Obligations.

 

In rendering the
opinions expressed in the foregoing paragraphs, I have relied, with your
approval, upon such certificates of officers of the Guarantor as to matters of
fact as I deemed necessary and appropriate. 
I wish to advise you further that I am a member of the Bar of the State
of Maryland and accordingly limit the applicability of the opinions contained
herein to matters governed by the laws of the State of Maryland and the Federal
laws of the United States of America. 
With respect to the opinions expressed in paragraph 3, I have assumed
that there is no difference between the laws of the State of Maryland and the
applicable laws of the State of New York.

 

This opinion is
rendered solely for your information and assistance in connection with the
above transaction and may not be quoted or relied upon by any other person,
except, to the extent

 

138

 

permitted by the Loan Documents, the Administrative Agent, the
Co-Syndication Agents, the other Lenders and their participants, assignees and
other transferees, or for any other purpose without my prior written consent.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Gordon H. Glenn

  
	
   

  	
  Vice-President and General Counsel

  
	
   

  	
  (410) 992-6405

  

 

139

 

FORM OF OPINION OF
UNENCUMBERED ASSET GUARANTOR’S COUNSEL

 

                    ,
2003

 

The Administrative Agent,

     JPMorgan Chase Bank,

     Individually and as
Co-Syndication Agent,

     Deutsche Bank Trust Company
Americas, Individually and as

      Co-Syndication Agent,

     and the other Lenders who
are parties

     to the Credit Agreement
described below

c/o Bank One, NA,

     as Administrative Agent for
the Lenders

1 Bank One Plaza

Chicago, Illinois  60670

 

Ladies and Gentlemen:

 

I am a Vice-President and General Counsel of [Insert
Guarantors] (each, a “Guarantor” and collectively, the “Guarantors”)
and I have been asked to render this opinion on behalf of the Guarantors.  I have represented each Guarantor in
connection with its execution and delivery of a Unencumbered Asset Guaranty
(each, a “Guaranty”) under the Agreement. 
All capitalized terms used in this opinion and not otherwise defined
herein shall have the meanings as set forth in the Agreement.

 

In that connection, I have examined each Guarantor’s
organizational documents, resolutions, the Loan Documents and such documents
and statutory or other material as I deemed necessary or appropriate to render
the opinions expressed below.  I have
assumed the authenticity of all documents submitted to me as copies.

 

Based upon and subject to the foregoing and to the
qualifications, limitations and exceptions contained below, I am of the opinion
that:

 

1.                                       Each
Guarantor is a duly organized and existing under the  laws of the State of its organization, and is duly qualified as a
foreign corporation and properly licensed (if required) and in good standing in
each jurisdiction in which the failure to qualify or be licensed would
constitute a Material Adverse Financial Change or have a Material Adverse
Effect.

 

2.                                       The
execution and delivery of the Loan Documents by each Guarantor and the
performance by such Guarantor of the Obligations have been duly authorized by
all necessary corporate action and proceedings on the part of such Guarantor
and will not:

 

(a)                                  require
any consent of such owners of any equity interests in such Guarantor;

 

(b)                                 violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on such Guarantor or any of its Subsidiaries or such Guarantor’s or any
of its

 

140

 

Subsidiary’s organizational documents or any indenture, instrument or
agreement binding upon such Guarantor or any of its Subsidiaries; or

 

(c)                                  result
in, or require, the creation or imposition of any Lien pursuant to the
provisions of any indenture, instrument or agreement binding upon such
Guarantor or any of its Subsidiaries.

 

3.                                       The
Loan Documents have been duly executed and delivered by each Guarantor and
constitute legal, valid and binding obligations of such Guarantor enforceable
in accordance with their terms except to the extent such enforcement may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally and subject also to the availability of equitable
remedies if equitable remedies are sought.

 

4.                                       There
are no suits, arbitrations, claims, disputes or other proceedings (including,
without limitation, any civil, criminal, administrative or environmental
proceedings), pending, or to the best of my knowledge, threatened against or
affecting any of the Guarantors or any of their Properties, which individually
or in the aggregate may reasonably be expected to have a Material Adverse
Effect and/or constitute a Material Adverse Financial Change or materially
impair any Guarantor’s ability to perform its obligations under the Loan
Documents.

 

5.                                       No
approval, authorization, consent, adjudication or order of any governmental
authority, which has not been obtained by any of the Guarantors or any of their
Subsidiaries, is required to be obtained by any of the Guarantors or any of
their Subsidiaries in connection with the execution and delivery of the Loan
Documents, the borrowings under the Agreement or in connection with the payment
by the Guarantors of the Obligations.

 

In rendering the
opinions expressed in the foregoing paragraphs, I have relied, with your
approval, upon such certificates of officers of the Guarantors as to matters of
fact as I deemed necessary and appropriate. 
I wish to advise you further that I am a member of the Bar of the State
of                          
and accordingly limit the applicability of the opinions contained herein to
matters governed by the laws of the State of
                         
and the Federal laws of the United States of America.  With respect to the opinions expressed in paragraph 3, I have
assumed that there is no difference between the laws of the State of
                         
and the applicable laws of the State of New York.

 

This opinion is
rendered solely for your information and assistance in connection with the
above transaction and may not be quoted or relied upon by any other person,
except, to the extent permitted by the Loan Documents, the Administrative
Agent, the Co-Syndication Agents, the other Lenders and their participants,
assignees and other transferees, or for any other purpose without my prior
written consent.

 

Very truly yours,

 

141

 

[Form of Opinion for The Hughes Corporation Counsel
Opinion]

 

                         ,
2003

 

The Administrative Agent,

     JPMorgan Chase Bank,

     Individually and as
Co-Syndication Agent,

     Deutsche Bank Trust Company
Americas, Individually and as

      Co-Syndication Agent,

     and the other Lenders who
are parties

     to the Credit Agreement
described below

c/o Bank One, NA,

     as Administrative Agent for
the Lenders

1 Bank One Plaza

Chicago, Illinois  60670

 

Ladies and Gentlemen:

 

I am the Vice-President and Associate General Counsel
of The Hughes Corporation, a Delaware corporation (“Pledgor”), and I have been
asked to render this opinion on behalf of Pledgor.  I have represented Pledgor in connection with its execution and
delivery of  the Pledge Agreement made
by the Pledgors in favor of the Agent dated as of December 21, 2000 as
reaffirmed by that certain Reaffirmation of Pledge Agreement dated as of
July 30, 2003 (the “Pledge Agreement”). 
All capitalized terms used in this opinion and not otherwise defined
herein shall have the meanings as set forth in the Pledge Agreement or the
Credit Agreement (as defined in the Pledge Agreement), as applicable.

 

In that connection, I have examined Pledgor’s articles
of incorporation, bylaws, resolutions, the Pledge Agreement and such documents
and statutory or other material as I deemed necessary or appropriate to render
the opinions expressed below.  I have
assumed the authenticity of all documents submitted to me as copies.

 

Based upon and subject to the foregoing and to the
qualifications, limitations and exceptions contained below, I am of the opinion
that:

 

1.                                       Pledgor
is a corporation duly incorporated and existing under the  laws of the State of  its incorporation, and is duly qualified as
a foreign corporation and properly licensed (if required) and in good standing
in each jurisdiction in which the failure to qualify or be licensed would
constitute a Material Adverse Financial Change or have a Material Adverse
Effect.

 

2.                                       The
execution and delivery of the Pledge Agreement by Pledgor and the performance
by Pledgor of its obligations under the Pledge Agreement have been duly
authorized by all necessary corporate action and proceedings on the part of
Pledgor and will not:

 

(a)                                  require
any consent of Pledgor’s shareholders;

 

142

 

(b)                                 violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on Pledgor or any of its Subsidiaries or Pledgor’s or any of its
Subsidiary’s articles of incorporation or bylaws or any indenture, instrument
or agreement binding upon Pledgor or any of its Subsidiaries; or

 

(c)                                  result
in, or require, the creation or imposition of any Lien pursuant to the
provisions of any indenture, instrument or agreement binding upon Pledgor or
any of its Subsidiaries.

 

3.                                       The
Pledge Agreement has been duly executed and delivered by Pledgor and
constitutes the legal, valid and binding obligation of Pledgor enforceable in
accordance with its terms except to the extent such enforcement may be limited
by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally and subject also to the availability of equitable
remedies if equitable remedies are sought.

 

4.                                       There
are no suits, arbitrations, claims, disputes or other proceedings (including,
without limitation, any civil, criminal, administrative or environmental
proceedings), pending, or to the best of my knowledge, threatened against or
affecting either Pledgor or any of its Properties, which individually or in the
aggregate may reasonably be expected to have a Material Adverse Effect and/or
constitute a Material Adverse Financial Change or materially impair Pledgor’s
ability to perform its obligations under the Pledge Agreement.

 

5.                                       No
approval, authorization, consent, adjudication or order of any governmental
authority, which has not been obtained by either Pledgor or any of its
Subsidiaries, is required to be obtained by Pledgor or any of its Subsidiaries
in connection with the execution and delivery of the Pledge Agreement or the
performance of its obligations thereunder.

 

In rendering the opinions expressed in the foregoing
paragraphs, I have relied, with your approval, upon such certificates of
officers of Pledgor as to matters of fact as I deemed necessary and
appropriate.  I wish to advise you
further that I am a member of the Bar of the State of Nevada and accordingly
limit the applicability of the opinions contained herein to matters governed by
the laws of the State of Nevada and the Federal laws of the United States of
America.  With respect to the opinions
expressed in paragraph 3, I have assumed that there is no difference between
the laws of the State of Nevada and the applicable laws of the State of New
York.

 

143

 

This opinion is rendered solely for your information
and assistance in connection with the above transaction and may not be quoted
or relied upon by any other person, except, to the extent permitted by the
Pledge Agreement, the Administrative Agent, the Co-Syndication Agents, the
other Lenders and their participants, assignees and other transferees, or for
any other purpose without my prior written consent.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Vice-President and General Counsel

  

 

144

 

[Form of Opinion for THHC and HHPI]

 

                         ,
2003

 

The Administrative Agent,

     JPMorgan Chase Bank,

     Individually and as
Co-Syndication Agent,

     Deutsche Bank Trust Company
Americas, Individually and as

      Co-Syndication Agent,

     and the other Lenders who
are parties

     to the Credit Agreement
described below

c/o Bank One, NA,

     as Administrative Agent for
the Lenders

1 Bank One Plaza

Chicago, Illinois  60670

 

Ladies and Gentlemen:

 

I am the Vice-President and Associate General Counsel
of The Howard Hughes Corporation, a Delaware corporation, and Howard Hughes
Properties, Inc., a Nevada corporation, and each such corporation is referred
to below as a “Guarantor”.  I have been
asked to render this opinion on behalf of each Guarantor.  I have represented each Guarantor in
connection with its execution and delivery of the Third Amended and Restated
Unsecured Revolving Credit Agreement among the Borrower, Bank One, NA,
individually and as Administrative Agent, JPMorgan Chase Bank, individually and
as Co-Syndication Agent Deutsche Bank Trust Company Americas, individually and
as Co-Syndication Agent, JPMorgan Securities, Inc. and Deutsche Bank
Securities, Inc. as joint sole lead arrangers and book runners and the other
Lenders named therein, providing for Advances in an initial aggregate principal
amount of up to $900,000,000 and dated as of July 30, 2003 (the
“Agreement”), and a Limited Guaranty Revolving (the “Guaranty”) under the
Agreement.  All capitalized terms used
in this opinion and not otherwise defined herein shall have the meanings as set
forth in the Agreement.

 

In that connection, I have examined each Guarantor’s
articles of incorporation, bylaws, resolutions, the Loan Documents and such
documents and statutory or other material as I deemed necessary or appropriate
to render the opinions expressed below. 
I have assumed the authenticity of all documents submitted to me as
copies.

 

Based upon and subject to the foregoing and to the
qualifications, limitations and exceptions contained below, I am of the opinion
that:

 

1.                                       Each
Guarantor is a corporation duly incorporated and existing under the  laws of the State of its incorporation, and
is duly qualified as a foreign corporation and properly licensed

 

145

 

(if required) and in good standing in each jurisdiction in which the
failure to qualify or be licensed would constitute a Material Adverse Financial
Change or have a Material Adverse Effect.

 

2.                                       The
execution and delivery of the Loan Documents by each Guarantor and the
performance by each Guarantor of the Obligations have been duly authorized by
all necessary corporate action and proceedings on the part of each Guarantor
and will not:

 

(a)                                  require
any consent of such Guarantor’s shareholders;

 

(b)                                 violate
any law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on such Guarantor or any of its Subsidiaries or such Guarantor’s or any
of its Subsidiary’s articles of incorporation or bylaws or any indenture,
instrument or agreement binding upon such Guarantor or any of its Subsidiaries;
or

 

(c)                                  result
in, or require, the creation or imposition of any Lien pursuant to the
provisions of any indenture, instrument or agreement binding upon such
Guarantor or any of its Subsidiaries.

 

3.                                       The
Loan Documents have been duly executed and delivered by each Guarantor and
constitute legal, valid and binding obligations of each Guarantor enforceable
in accordance with their terms except to the extent such enforcement may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors’ rights generally and subject also to the availability of equitable
remedies if equitable remedies are sought.

 

4.                                       There
are no suits, arbitrations, claims, disputes or other proceedings (including, without
limitation, any civil, criminal, administrative or environmental proceedings),
pending, or to the best of my knowledge, threatened against or affecting either
Guarantor or any of its Properties, which individually or in the aggregate may
reasonably be expected to have a Material Adverse Effect and/or constitute a
Material Adverse Financial Change or materially impair the Guarantor’s ability
to perform its obligations under the Loan Documents.

 

5.                                       No
approval, authorization, consent, adjudication or order of any governmental
authority, which has not been obtained by either Guarantor or any of its
Subsidiaries, is required to be obtained by such Guarantor or any of its
Subsidiaries in connection with the execution and delivery of the Loan
Documents, the borrowings under the Agreement or in connection with the payment
by the Guarantor of the Obligations.

 

In rendering the opinions expressed in the foregoing
paragraphs, I have relied, with your approval, upon such certificates of
officers of each Guarantor as to matters of fact as I deemed necessary and
appropriate.  I wish to advise you
further that I am a member of the Bar of the State of Nevada and accordingly
limit the applicability of the opinions contained herein to matters governed by
the laws of the State of Nevada and the Federal laws of the United States of
America.  With respect to the opinions
expressed in paragraph 3, I have assumed that there is no difference between
the laws of the State of Nevada and the applicable laws of the State of New York.

 

146

 

This opinion is rendered solely for your information
and assistance in connection with the above transaction and may not be quoted
or relied upon by any other person, except, to the extent permitted by the Loan
Documents, by the Administrative Agent, the Co-Syndication Agents, the other
Lenders and their participants, assignees and other transferees, or for any
other purpose without my prior written consent.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Vice-President and General Counsel

  

 

147

 

EXHIBIT G

 

WIRING INSTRUCTIONS

 

To:                              Bank
One, NA, as Administrative Agent

(the “Agent”) under the
Credit Agreement Described Below

 

Re:                               Third
Amended and Restated Unsecured Revolving Credit Agreement, dated as of
                    ,
2003 (as amended, modified, renewed or extended from time to time, the
“Agreement”), among The Rouse Company (collectively, together with certain of
its wholly-owned subsidiaries, the “Borrower”), Bank One, NA, individually and
as Administrative Agent and as Competitive Bid Option Agent, JPMorgan Chase
Bank, individually and as Co-Syndication Agent, Deutsche Bank Trust Company
Americas, individually and as Co-Syndication Agent, and the Lenders named
therein.  Terms used herein and not
otherwise defined shall have the meanings assigned thereto in the Credit
Agreement.

 

The Administrative Agent
is specifically authorized and directed to act upon the following standing
money transfer instructions with respect to the proceeds of Advances or other
extensions of credit from time to time until receipt by the Administrative
Agent of a specific written revocation of such instructions by the Borrower,
provided, however, that the Administrative Agent may otherwise transfer funds
as hereafter directed in writing by the Borrower in accordance with Section 15.1
of the Agreement or based on any telephonic notice made in accordance with the
Agreement.

 

Facility Identification Number(s)    8878601

 

Customer/Account Name   The Rouse Company

 

Transfer Funds To   M&T Bank (Buffalo, New York);
ABA:  022000046

 

For Account No.   086-9394-4

 

Reference/Attention To   The Rouse Company

 

Authorized Officer (Customer Representative) Date
               ,
2003

 

	
  (Please Print)

  	
  Signature

  
	
   

  	
   

  
	
  Bank Officer Name

  	
   

  
	
   

  	
   

  
	
  (Please Print)

  	
  Signature

  

 

(Deliver Completed Form
to Credit Support Staff For Immediate Processing)

 

148

 

EXHIBIT H

 

FORM OF COMPLIANCE
CERTIFICATE

 

To:                    The
Administrative Agent and the Lenders

who are parties to the
Agreement described below

 

This Compliance
Certificate is furnished pursuant to that certain Third Amended and Restated
Unsecured Revolving Credit Agreement, dated as of
               
(as amended, modified, renewed or extended from time to time, the “Agreement”)
among The Rouse Company (collectively, together with certain of its
wholly-owned subsidiaries, the “Borrower”), Bank One, NA, individually and as
Administrative Agent and as Competitive Bid Option Agent, JPMorgan Chase Bank,
individually and as Co-Syndication Agent, Deutsche Bank Trust Company Americas,
individually and as Co-Syndication Agent, and the Lenders named therein.  Unless otherwise defined herein, capitalized
terms used in this Compliance Certificate have the meanings ascribed thereto in
the Agreement.

 

THE UNDERSIGNED HEREBY
CERTIFIES THAT:

 

1.                                                 I
am the duly elected [Chief Financial Officer] [Treasurer] [Chief Accounting
Officer] of the Borrower.

 

2.                                                 I
have reviewed the terms of the Agreement and I have made, or have caused to be
made under my supervision, a detailed review of the transactions and conditions
of the Borrower and its Subsidiaries and Investment Affiliates during the
accounting period covered by the financial statements attached (or most
recently delivered to the Administrative Agent if none are attached).

 

3.                                                 The
examinations described in paragraph 2 did not disclose, and I have no knowledge
of, the existence of any condition or event which constitutes a Material
Adverse Financial Change, Event of Default or Default during or at the end of
the accounting period covered by the attached financial statements or as of the
date of this Compliance Certificate, except as set forth below.

 

4.                                                 Schedule
I (if attached) attached hereto sets forth financial data and computations and
other information evidencing the Borrower’s compliance with certain covenants
of the Agreement, all of which data, computations and information (or if no
Schedule I is attached, the data, computations and information contained
in the most recent Schedule I attached to a prior Compliance Certificate)
are true, complete and correct in all material respects.

 

5.                                                 The
financial statements and reports referred to in Section 8.2(i), 8.2(ii),
8.2(iii), or 8.2(vii), as the case may be, of the Agreement which
are delivered concurrently with the delivery of this Compliance Certificate, if
any, fairly present in all material respects the consolidated financial
condition and operations of the Consolidated Group at such date and the
consolidated results of their operations for the period then-ended, in
accordance with GAAP applied consistently throughout such period and with prior
periods and correctly state the amounts of Combined EBITDA, Funds From
Operations, Combined Debt Service, Combined Interest Expense, Total Outstanding
Indebtedness, Secured Outstanding Indebtedness and Recourse Outstanding
Indebtedness as determined pursuant to the Agreement.

 

Described below are the
exceptions, if any, to paragraph 3 by listing, in detail, the nature of the
condition or event, the period during which it has existed and the action which
the Borrower has taken, is taking, or proposes to take with respect to each
such condition or event:

 

149

 

The foregoing
certifications, together with the computations and information set forth in
Schedule I hereto and the financial statements delivered with this Compliance
Certificate in support hereof, are made and delivered this
           day of
                   ,
200  .

 

	
   

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

150

 

SCHEDULE I

 

CALCULATION OF COVENANTS

 

151

 

EXHIBIT I

 

FORM OF ASSIGNMENT
AGREEMENT

 

This Assignment Agreement
(this “Assignment Agreement”) between
                          
(the “Assignor”) and                   
(the “Assignee”) is dated as of
                 ,
200  .  The parties hereto
agree as follows:

 

1.                                                 PRELIMINARY
STATEMENT.  The Assignor is a party
to the Third Amended and Restated Unsecured Revolving Credit Agreement (which,
as it may have been amended, modified, renewed or extended through the
Effective Date is herein called the “Credit Agreement”) described in Item 1 of
Schedule 1 attached hereto (“Schedule 1”). 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings attributed to them in the Credit Agreement.

 

2.                                                 ASSIGNMENT
AND ASSUMPTION.  The Assignor hereby
sells and assigns to the Assignee without recourse, and the Assignee hereby
purchases and assumes from the Assignor, an interest in and to the Assignor’s
rights and obligations under the Credit Agreement such that, after giving
effect to such assignment, the Assignee shall have purchased pursuant to this
Assignment Agreement the percentage interest specified in Item 3 of Schedule 1
of all outstanding rights and obligations under the Credit Agreement and the
other Loan Documents.  The aggregate amount
of the Commitment (or Loans, if the applicable Commitment has been terminated)
purchased by the Assignee hereunder is set forth in Item 4 of Schedule 1.

 

3.                                                 EFFECTIVE
DATE.  The effective date of this
Assignment Agreement (the “Effective Date”) shall be the later of the date
specified in Item 6 of Schedule 1 or two (2) Business Days (or such shorter
period agreed to by the Administrative Agent) after a Notice of Assignment
substantially in the form of Exhibit “I” attached hereto has been delivered by
the Assignor to the Administrative Agent. 
In no event will the Effective Date occur if the payments required to be
made by the Assignee to the Assignor on the Effective Date under Sections 4
and 5 hereof are not made on or prior to the proposed Effective Date,
unless otherwise agreed in writing by Assignor and Assignee.  The Assignor will notify the Assignee of the
proposed Effective Date no later than the Business Day prior to the proposed
Effective Date.  As of the Effective
Date, (i) the Assignee shall have the rights and obligations of a Lender under
the Loan Documents with respect to the rights and obligations assigned to the
Assignee hereunder and (ii) the Assignor shall relinquish its rights and be
released from its corresponding obligations under the Loan Documents with
respect to the rights and obligations assigned to the Assignee hereunder.

 

4.                                                 PAYMENTS
OBLIGATIONS.  On and after the
Effective Date, the Assignee shall be entitled to receive from the
Administrative Agent all payments of principal, interest and fees with respect
to the interest assigned hereby.  The
Assignee shall advance funds directly to the Administrative Agent with respect
to all Loans and reimbursement payments made on or after the Effective Date
with respect to the interest assigned hereby. 
[In
consideration for the sale and assignment of Loans hereunder, (i) the Assignee
shall pay the Assignor, on the Effective Date, an amount equal to the principal
amount of the portion of all Alternate Base Rate Loans assigned to the Assignee
hereunder and (ii) with respect to each ratable LIBOR Advance and Competitive
Bid Loan made by the Assignor and assigned to the Assignee hereunder which is
outstanding on the Effective Date, (a) on the last day of the Interest Period
therefor or (b) on such earlier date agreed to by the Assignor and the Assignee
or (c) on the date on which any such Loan either becomes due (by acceleration
or otherwise) or is prepaid (the date as described in the foregoing clauses
(a), (b) or (c) being hereinafter referred to as the “Fixed Due Date”), the
Assignee shall pay the Assignor an amount equal to the principal amount of the
portion of such Loan assigned to the

 

152

 

Assignee which is outstanding on the Fixed Due Date.  If the Assignor and the Assignee agree that
the applicable Fixed Due Date for such Loan shall be the Effective Date, they
shall agree, solely for purposes of dividing interest paid by the Borrower on
such Loan, to an alternate interest rate applicable to the portion of such Loan
assigned hereunder for the period from the Effective Date to the end of the
related Interest Period (the “Agreed Interest Rate”) and any interest received
by the Assignee in excess of the Agreed Interest Rate, with respect to such
Loan for such period, shall be remitted to the Assignor.  In the event a prepayment of any Loan which
is existing on the Effective Date and assigned by the Assignor to the Assignee
hereunder occurs after the Effective Date but before the applicable Fixed Due
Date, the Assignee shall remit to the Assignor any excess of the funding
indemnification amount paid by the Borrower under Section 4.4 of
the Credit Agreement an account of such prepayment with respect to the portion
of such Loan assigned to the Assignee hereunder over the amount which would have
been paid if such prepayment amount were calculated based on the Agreed
Interest Rate and only covered the portion of the Interest Period after the
Effective Date.  The Assignee will
promptly remit to the Assignor (i) the portion of any principal payments
assigned hereunder and received from the Administrative Agent with respect to
any such Loan prior to its Fixed Due Date and (ii) any amounts of interest on
Loans and fees received from the Administrative Agent which relate to the
portion of the Loans assigned to the Assignee hereunder for periods prior to
the Effective Date, in the case of ratable Alternate Base Rate Loans or Fees,
or the Fixed Due Date, in the case of LIBOR Loans and Competitive Bid Loans,
and not previously paid by the Assignee to the Assignor.]*  In the event that either party hereto
receives any payment to which the other party hereto is entitled under this
Assignment Agreement, then the party receiving such amount shall promptly remit
it to the other party hereto.

 

5.                                                 FEES
PAYABLE BY THE ASSIGNEE.  The
Assignee shall pay to the Assignor a fee on each day on which a payment of
interest or Commitment Fees or Facility Fees is made under the Credit Agreement
with respect to the amounts assigned to the Assignee hereunder (other than a
payment of interest or Facility Fees attributable to the period prior to the
Effective Date or, in the case of LIBOR Loans and Competitive Bid Loans, the
Fixed Due Date, which the Assignee is obligated to deliver to the Assignor
pursuant to Section 4 hereof).  The amount of such fee shall be the difference between (i) the
interest or fee, as applicable, paid with respect to the amounts assigned to
the Assignee hereunder and (ii) the interest or fee, as applicable, which would
have been paid with respect to the amounts assigned to the Assignee hereunder
if each interest rate was calculated at the rate of    % rather
than the actual percentage used to calculate the interest rate paid by the
Borrower or if the Facility Fee was calculated at the rate of
   % rather than the actual percentage used to calculate the
Facility Fee paid by the Borrower, as applicable.  In addition, the Assignee agrees to pay
     % of the fee required to be paid to the Agent in
connection with this Assignment Agreement. 
[This
sentence can be revised appropriately based on how the fee is being paid.]

 

*Each
Assignor may insert its standard provisions in lieu of the payment terms
included in Sections 4 and 5 of this Exhibit.

 

6.                                       REPRESENTATIONS
OF THE ASSIGNOR; LIMITATIONS ON THE ASSIGNOR’S LIABILITY.  The Assignor represents and warrants that it
is the legal and beneficial owner of the interest being assigned by it
hereunder, that such interest is free and clear of any adverse claim created by
the Assignor and that it has all right, power and authority to enter into this
Assignment Agreement.  It is understood
and agreed that the assignment and assumption hereunder are made without
recourse to the Assignor and that the Assignor makes no other representation or
warranty of any kind to the Assignee. 
Neither the Assignor nor any of its officers, directors, employees,
agents or attorneys shall be responsible for (i) the due execution, legality,
validity, enforceability, genuineness, sufficiency or collectability of any
Loan Document, including without limitation, documents granting the Assignor
and the other Lenders a security interest in assets of the Borrower or any
guarantor, (ii) any representation, warranty or statement made in or in
connection with any of the Loan Documents, (iii) the financial condition or
creditworthiness

 

153

 

of the Borrower or any guarantor, (iv) the performance of or compliance
with any of the terms or provisions of any of the Loan Documents, (v)
inspecting any of the Property, books or records of the Borrower, its
Subsidiaries or Investment Affiliates, (vi) the validity, enforceability,
perfection, priority, condition, value or sufficiency of any collateral
securing or purporting to secure the Loans or (vii) any mistake, error of
judgment, or action taken or omitted to be taken in connection with the Loans
or the Loan Documents.

 

7.                                                 REPRESENTATIONS
OF THE ASSIGNEE.  The Assignee
represents and warrants that it has all right, power and authority to enter
into this Assignment Agreement.  The
Assignee further (i) confirms that it has received a copy of the Credit
Agreement and the other Loan Documents, together with copies of the financial
statements requested by the Assignee and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into this Assignment Agreement, (ii) agrees that it will, independently
and without reliance upon the Administrative Agent, the Co-Documentation
Agents, the Assignor or any other Lender and based on such documents and
information at it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents, (iii)
appoints and authorizes the Administrative Agent to take such action as agent
on its behalf and to exercise such powers under the Loan Documents as are
delegated to the Administrative Agent by the terms thereof, together with such
powers as are reasonably incidental thereto, (iv) agrees that it will perform
in accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender, (v) agrees that
its payment instructions and notice instructions are as set forth in the
attachment to Schedule 1, (vi) confirms that none of the funds, monies, assets
or other consideration being used to make the purchase and assumption hereunder
are “plan assets” as defined under ERISA and that its rights, benefits and
interests in and under the Loan Documents will not be “plan assets” under
ERISA, [and
(vii) attaches the forms prescribed by the Internal Revenue Service of the
United States certifying that the Assignee is entitled to receive payments
under the Loan Documents without deduction or withholding of any United States
federal income taxes].**

 

** to be
inserted if the Assignee is not organized under the laws of the United States,
or a state thereof.

 

8.                                                 INDEMNITY.  The Assignee agrees to indemnify and hold
the Assignor harmless against any and all losses, costs and expenses
(including, without limitation, reasonable attorneys’ fees) and liabilities
incurred by the Assignor in connection with or arising in any manner from the
Assignee’s non-performance of the obligations assumed under this Assignment
Agreement.

 

9.                                                 SUBSEQUENT
ASSIGNMENTS.  After the Effective
Date, the Assignee shall have the right pursuant to Section 13.3.1 of
the Credit Agreement to assign the rights which are assigned to the Assignee
hereunder to any entity or person, provided that (i) any such subsequent
assignment does not violate any of the terms and conditions of the Loan
Documents or any law, rule, regulation, order, writ, judgment, injunction or
decree and that any consent required under the terms of the Loan Documents has
been obtained and (ii) unless the prior written consent of the Assignor is
obtained, the Assignee is not thereby released from its obligations to the
Assignor hereunder, if any remain unsatisfied, including, without limitation,
its obligations under Sections 4, 5 and 8 hereof.

 

10.                                           REDUCTIONS
OF AGGREGATE COMMITMENT.  If any
reduction in the Aggregate Commitment occurs between the date of this
Assignment Agreement and the Effective Date, the percentage interest specified
in Item 3 of Schedule 1 shall remain the same, but the dollar amount purchased
shall be recalculated based on the reduced Aggregate Commitment.

 

154

 

11.                                           ENTIRE
AGREEMENT.  This Assignment
Agreement and the attached Notice of Assignment embody the entire agreement and
understanding between the parties hereto and supersede all prior agreements and
understandings between the parties hereto relating to the subject matter
hereof.

 

12.                                           GOVERNING
LAW.  This Assignment Agreement
shall be governed by the internal law, and not the law of conflicts, of the
State of Illinois.

 

13.                                           NOTICES.  Notices shall be given under this Assignment
Agreement in the manner set forth in the Credit Agreement.  For the purpose hereof, the addresses of the
parties hereto until notice of a change is delivered) shall be the address set
forth in the attachment to Schedule 1.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Assignment Agreement by their duly authorized
officers as of the date first above written.

 

	
   

  	
   

  	
  [NAME
  OF ASSIGNOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NAME
  OF ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

155

 

SCHEDULE 1 TO

ASSIGNMENT AGREEMENT

 

	
  1.

  	
   

  	
  Description and Date of Credit Agreement:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date of Assignment Agreement: 
              
  , 200

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Amounts (As of Date of Item 2 above):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  a.

  	
    Aggregate
  Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Loans)* under

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Credit Agreement

  	
  $

  	
                                 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  b.

  	
    Assignee’s
  Percentage

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  of the Aggregate Commitment

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  purchased under this

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Assignment Agreement**

  	
   

  	
                                 

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
    Amount of
  Assignee’s Commitment (Loan Amount)*

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Purchased under this Assignment Agreement:

  	
  $

  	
                                 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.

  	
  Amount of Assignor’s Commitment (Loan Amount)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  After Purchase under this Assignment Agreement

  	
   

  	
                                 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.

  	
  Proposed Effective Date:

  	
   

  	
                                 

  	
   

  
									

 

 

	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
  [NAME
  OF ASSIGNOR]

  	
  [NAME
  OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

*                               If
a Commitment has been terminated, insert outstanding Loans in place of
Commitment

**                                  Percentage
taken to 10 decimal places

 

156

 

ATTACHMENT TO SCHEDULE 1
TO

ASSIGNMENT AGREEMENT

 

Attach Assignor’s
Administrative Information Sheet, which must

include notice address
and account information for the Assignor and the Assignee

 

157

 

EXHIBIT “I” TO

ASSIGNMENT AGREEMENT

 

NOTICE OF ASSIGNMENT

 

                    ,
200  

 

To:                              [NAME
OF ADMINISTRATIVE AGENT]

 

From:                  [NAME OF
ASSIGNOR] (the “Assignor”)

 

[NAME OF ASSIGNEE] (the “Assignee”)

 

1.                                                 We
refer to that Third Amended and Restated Unsecured Revolving Credit Agreement
(the “Credit Agreement”) described in Item 1 of Schedule 1 attached hereto
(“Schedule 1”).  Capitalized terms used
herein and not otherwise defined herein shall have the meanings attributed to
them in the Credit Agreement.

 

2.                                                 This
Notice of Assignment (this “Notice”) is given and delivered to the
Administrative Agent pursuant to Section 13.3.1 of the Credit
Agreement.

 

3.                                                 The
Assignor and the Assignee have entered into an Assignment Agreement, dated as
of             ,
20   (the “Assignment”), pursuant to which, among other things, the
Assignor has sold, assigned, delegated and transferred to the Assignee, and the
Assignee has purchased, accepted and assumed from the Assignor the percentage
interest specified in Item 3 of Schedule 1 of all outstandings, rights and
obligations under the Credit Agreement. 
From and after such purchase, the Assignee’s Commitment shall be the
amount specified in Item 4 of Schedule 1 and the Assignor’s Commitment shall be
the amount specified in Item 5 of Schedule 1. 
The Effective Date of the Assignment shall be the later of the date
specified in Item 5 of Schedule 1 or two (2) Business Days (or such
shorter period as agreed to by the Administrative Agent) after this Notice of
Assignment and any fee required by Section 13.3.1 of the Credit
Agreement have been delivered to the Administrative Agent, provided that the
Effective Date shall not occur if any condition precedent agreed to by the
Assignor and the Assignee or set forth in Section 13 of the Credit
Agreement has not been satisfied.

 

4.                                                 The
Assignor and the Assignee hereby give to the Administrative Agent notice of the
assignment and delegation referred to herein. 
The Assignor will confer with the Administrative Agent before the date
specified in Item 6 of Schedule 1 to determine if the Assignment Agreement will
become effective on such date pursuant to Section 3 hereof, and will
confer with the Administrative Agent to determine the Effective Date pursuant
to Section 3 hereof if it occurs thereafter.  The Assignor shall notify the Administrative Agent if the
Assignment Agreement does not become effective on any proposed Effective Date
as a result of the failure to satisfy the conditions precedent agreed to by the
Assignor and the Assignee.  At the
request of the Administrative Agent, the Assignor will give the Administrative
Agent written confirmation of the satisfaction of the conditions precedent.

 

5.                                                 The
Assignor or the Assignee shall pay to the Administrative Agent on or before the
Effective Date the processing fee of $3,500 required by Section 13.3.1
of the Credit Agreement.

 

158

 

6.                                                 If
Notes are outstanding on the Effective Date, the Assignor and the Assignee
request and direct that the Administrative Agent prepare and cause the Borrower
to execute and deliver new Notes or, as appropriate, replacements notes, to the
Assignor and the Assignee.  The Assignor
and, if applicable, the Assignee each agree to deliver to the Administrative
Agent the original Note received by it from the Borrower upon its receipt of a
new Note in the appropriate amount.

 

7.                                                 The
Assignee advises the Administrative Agent that notice and payment instructions
are set forth in the attachment to Schedule 1.

 

8.                                                 The
Assignee hereby represents and warrants that none of the funds, monies, assets
or other consideration being used to make the purchase pursuant to the
Assignment are “plan assets” as defined under ERISA and that its rights,
benefits, and interests in and under the Loan Documents will not be “plan
assets” under ERISA.

 

9.                                                 The
Assignee authorizes the Administrative Agent to act as its agent under the Loan
Documents in accordance with the terms thereof.  The Assignee acknowledges that the Administrative Agent has no
duty to supply information with respect to the Borrower or the Loan Documents
to the Assignee until the Assignee becomes a party to the Credit Agreement.*

 

* May be eliminated if Assignee is a party to the
Credit Agreement prior to the Effective Date.

 

	
  NAME OF ASSIGNOR

  	
  NAME OF ASSIGNEE

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGED AND CONSENTED TO

  	
   

  
	
  BY BANK ONE, NA,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
										

 

[Attach photocopy of Schedule 1 to Assignment]

 

159

 

EXHIBIT J

 

FORM OF GUARANTY

 

This Guaranty made as of
July 30, 2003 (the “Guaranty”), by the parties identified in the
signature pages hereto, and any Joinder to Guaranty hereafter delivered,
jointly and severally, (each, a “Guarantor” and collectively, the “Guarantors”),
to and for the benefit of JPMorgan Chase Bank, Deutsche Bank Trust Company
Americas and Bank One, NA, individually and as agents for themselves and the
other Lenders as defined in the Revolving Credit Agreement (as defined below)
and their respective successors and assigns (such agents and “Lenders” herein,
collectively, the “Lender”).

 

RECITALS

 

A.                                             The
Rouse Company (collectively, with its Wholly-Owned Borrowing Subsidiaries (as
defined in the Revolving Credit Agreement), “Borrower”)) has requested
that Lender make an unsecured revolving credit facility available to Borrower
in the aggregate principal amount of up to $900,000,000 (“Revolving Facility”).

 

B.                                               Lender
has agreed to make the Revolving Facility available to Borrower pursuant to the
terms and conditions set forth in a Third Amended and Restated Unsecured
Revolving Credit Agreement of even date herewith (“Revolving Credit
Agreement”) among the Borrower and the Lender.  Capitalized terms used herein and not otherwise defined shall
have the meanings ascribed to such terms in the Revolving Credit Agreement.

 

C.                                               Borrower
has executed and delivered to Lender Notes, each of even date herewith in the
aggregate principal amount of $900,000,000 as evidence of its Obligations to
Lender with respect to the Revolving Facility. 
Borrower has also executed and delivered to each Lender a Competitive
Bid Note which evidences any Competitive Bid Loans which may be made by such
Lender under the Revolving Credit Agreement. 
The Notes and Competitive Bid Notes described above, together with any
amendments or allonges thereto, or restatements, replacements or renewals
thereof, and/or new promissory notes to new Lenders under the Revolving Credit
Agreement, are collectively referred to herein as the “Note”.

 

D.                                              Rouse
is holder of ownership interests, directly or indirectly, in each Guarantor,
and each Guarantor may receive advances as needed from time to time from Rouse
out of the proceeds of the Revolving Facility and, therefore, Guarantors will
derive financial benefit from the Revolving Facility evidenced by the Note,
Revolving Credit Agreement and the other Loan Documents.

 

E.                                                Section
8.12 of the Credit Agreement requires each member of the Consolidated Group
which owns all or any portion of an Unencumbered Asset to execute and deliver a
Guaranty to the Administrative Agent. 
The execution and delivery of this Guaranty by Guarantors is made
pursuant to such Section 8.12.

 

160

 

AGREEMENTS

 

NOW, THEREFORE,
Guarantors, in consideration of the matters described in the foregoing
Recitals, which Recitals are incorporated herein and made a part hereof, and
for other good and valuable consideration, hereby agrees as follows:

 

1.                                                    Each
Guarantor absolutely, unconditionally, and irrevocably guarantees to Lender:

 

(a)                                  the
full and prompt payment of the principal of and interest on the Note when due,
whether at stated maturity, upon acceleration or otherwise, and at all times
thereafter, and the prompt payment of all sums which may now be or may
hereafter become due and owing under the Note, the Revolving Credit Agreement,
and the other Loan Documents;

 

(b)                                 the
payment of all Enforcement Costs (as hereinafter defined in Paragraph 7
hereof); and

 

(c)                                  the
full, complete, and punctual observance, performance, and satisfaction of all
of the obligations, duties, covenants, and agreements of Borrower under the
Revolving Credit Agreement and the Loan Documents.

 

All amounts due, debts, liabilities, and payment
obligations described in subparagraphs (a) and (b) of this Paragraph 1
are referred to herein as the “Facility Indebtedness.”  All obligations described in subparagraph
(c) of this Paragraph 1 are referred to herein as the “Obligations.”  All obligations described in subparagraphs
(a), (b) and (c) of this Paragraph 1 are referred to collectively
as the “Guaranteed Obligations”. 
Each Guarantor and Lender agree that such Guarantor’s obligations
hereunder shall not exceed the maximum amount not subject to avoidance under
Title 11 of the United States Code, as same may be amended from time to time,
or any applicable state law (the “Bankruptcy Code”).  To that end, to the extent such obligations would otherwise be
subject to avoidance under the Bankruptcy Code if such Guarantor is not deemed
to have received valuable consideration, fair value or reasonably equivalent
value for its obligations hereunder, such Guarantor’s obligations hereunder
shall be reduced to that amount which, after giving effect thereto, would not
render such Guarantor insolvent, or leave such Guarantor with an unreasonably
small capital to conduct its business, or cause such Guarantor to have incurred
debts (or intended to have incurred debts) beyond its ability to pay such debts
as they mature, as such terms are determined, and at the time such obligations
are deemed to have been incurred, under the Bankruptcy Code.

 

2.                                                    In
the event of any default by Borrower in making payment of the Facility
Indebtedness, or in performance of the Obligations, as aforesaid, in each case
beyond the expiration of any applicable grace period, each Guarantor agrees, on
demand by Lender or the holder of the Note, to pay all the Facility
Indebtedness and to perform all the Obligations as are or then or thereafter
become due and owing or are to be performed under the terms of the Note, the
Revolving Credit Agreement and the other Loan Documents.  Lender shall have the right, at its option,
either before, during or after pursuing any other right or remedy against
Borrower or Guarantors, to perform any and all of the Obligations by or through
any agent, contractor or

 

161

 

subcontractor, or any of their agents, of its selection, all as Lender
in its sole discretion deems proper, and Guarantors shall indemnify and hold
Lender free and harmless from and against any and all loss, damage, cost,
expense, injury, or liability Lender may suffer or incur in connection with the
exercise of its rights under this Guaranty or the performance of the
Obligations, except to the extent the same arises as a result of the gross
negligence or willful misconduct of Lender.

 

All of the remedies set
forth herein and/or provided by any of the Loan Documents or law or equity
shall be equally available to Lender, and the choice by Lender of one such
alternative over another shall not be subject to question or challenge by
Guarantors or any other person, nor shall any such choice be asserted as a
defense, set-off, or failure to mitigate damages in any action, proceeding, or
counteraction by Lender to recover or seeking any other remedy under this
Guaranty, nor shall such choice preclude Lender from subsequently electing to
exercise a different remedy.  The
parties have agreed to the alternative remedies hereinabove specified in part
because they recognize that the choice of remedies in the event of a failure
hereunder will necessarily be and should properly be a matter of business
judgment, which the passage of time and events may or may not prove to have
been the best choice to maximize recovery by Lender at the lowest cost to
Borrower and/or Guarantors.  It is the
intention of the parties that such choice by Lender be given conclusive effect
regardless of such subsequent developments.

 

3.                                                    Each
Guarantor does hereby waive (i) notice of acceptance of this Guaranty by
Lender and any and all notices and demands of every kind which may be required
to be given by any statute, rule or law, (ii) any defense, right of
set-off or other claim which such Guarantor may have against the Borrower or
which such Guarantor or Borrower may have against Lender or any holders of the
Note (other than defenses relating to payment of the Facility Indebtedness or
the correctness of any allegation by Lender that Borrower was in default in the
performance of the Obligations), (iii) presentment for payment, demand for
payment (other than as provided for in Paragraph 2 above), notice
of nonpayment (other than as provided for in Paragraph 2 above) or
dishonor, protest and notice of protest, diligence in collection and any and
all formalities which otherwise might be legally required to charge such
Guarantor with liability, (iv) any failure by Lender to inform such
Guarantor of any facts Lender may now or hereafter know about Borrower, the
Revolving Facility, or the transactions contemplated by the Revolving Credit
Agreement, it being understood and agreed that Lender has no duty so to inform
and that such Guarantor is fully responsible for being and remaining informed by
the Borrower of all circumstances bearing on the existence or creation, or the
risk of nonpayment of the Facility Indebtedness or the risk of nonperformance
of the Obligations, and (v) any and all right to cause a marshalling of
assets of the Borrower or any other action by any court or governmental body
with respect thereto, or to cause Lender to proceed against any other security
given to Lender in connection with the Facility Indebtedness or the
Obligations.  Credit may be granted or
continued from time to time by Lender to Borrower without notice to or
authorization from any Guarantor, regardless of the financial or other
condition of the Borrower at the time of any such grant or continuation.  Lender shall have no obligation to disclose
or discuss with any Guarantor its assessment of the financial condition of
Borrower.  Each Guarantor acknowledges
that no representations of any kind whatsoever have been made by Lender to such
Guarantor.  No modification or waiver of
any of the provisions of this Guaranty shall be binding upon Lender except as
expressly set forth in a writing duly signed and delivered on behalf of
Lender.  Each Guarantor further agrees
that any exculpatory language contained in the Revolving Credit

 

162

 

Agreement or the Note shall in no event apply to this Guaranty, and
will not prevent Lender from proceeding against each Guarantor to enforce this
Guaranty.

 

4.                                                    Each
Guarantor further agrees that such Guarantor’s liability as guarantor shall in
nowise be impaired by any renewals or extensions which may be made from time to
time, with or without the knowledge or consent of such Guarantor, of the time
for payment of interest or principal under the Note or by any forbearance or
delay in collecting interest or principal under the Note, or by any waiver by
Lender under the Revolving Credit Agreement or any other Loan Documents, or by
Lender’s failure or election not to pursue any other remedies it may have
against Borrower, or by any change or modification in the Note, Revolving
Credit Agreement or any other Loan Documents, or by the acceptance by Lender of
any additional security or any increase, substitution or change therein, or by
the release by Lender of any security or any withdrawal thereof or decrease
therein, or by the application of payments received from any source to the
payment of any obligation other than the Facility Indebtedness, even though
Lender might lawfully have elected to apply such payments to any part or all of
the Facility Indebtedness, it being the intent hereof that such Guarantor shall
remain liable as principal for payment of the Facility Indebtedness and
performance of the Obligations until all indebtedness has been paid in full and
the other terms, covenants and conditions of the Revolving Credit Agreement and
other Loan Documents and this Guaranty have been performed and the Aggregate
Commitment terminated, notwithstanding any act or thing which might otherwise
operate as a legal or equitable discharge of a surety.  Each Guarantor further understands and
agrees that Lender may at any time enter into agreements with Borrower to amend
and modify the Note, Revolving Credit Agreement or other Loan Documents, or any
thereof, and may waive or release any provision or provisions of the Note, the
Revolving Credit Agreement and other Loan Documents or any thereof, and, with
reference to such instruments, may make and enter into any such agreement or
agreements as Lender and Borrower may deem proper and desirable, without in any
manner impairing this Guaranty or any of Lender’s rights hereunder or any of
such Guarantor’s obligations hereunder.

 

5.                                                    This
is an absolute, unconditional, complete, present and continuing guaranty of
payment and performance and not of collection. 
Each Guarantor agrees that this Guaranty may be enforced by Lender
without the necessity at any time of resorting to or exhausting any other
security or collateral given in connection herewith or with the Note, the
Revolving Credit Agreement or any of the other Loan Documents, or resorting to
any other guaranties, and such Guarantor hereby waives the right to require
Lender to join Borrower in any action brought hereunder or to commence any
action against or obtain any judgment against Borrower or to pursue any other
remedy or enforce any other right.  Each
Guarantor further agrees that nothing contained herein or otherwise shall
prevent Lender from pursuing concurrently or successively all rights and
remedies available to it at law and/or in equity or under the Note, Revolving
Credit Agreement or any other Loan Documents, and the exercise of any of its
rights or the completion of any of its remedies shall not constitute a
discharge of any of such Guarantor’s obligations hereunder, it being the
purpose and intent of such Guarantor that the obligations of such Guarantor
hereunder shall be primary, absolute, independent and unconditional under any
and all circumstances whatsoever.  No
Guarantor’s obligations under this Guaranty nor any remedy for the enforcement
thereof shall be impaired, modified, changed or released in any manner
whatsoever by any impairment, modification, change, release or limitation of
the liability of Borrower under the Note, Revolving Credit Agreement or other
Loan Documents or by reason of

 

163

 

Borrower’s bankruptcy or by reason of any creditor or bankruptcy
proceeding instituted by or against Borrower. 
This Guaranty shall continue to be effective and be deemed to have
continued in existence or be reinstated (as the case may be) if at any time
payment of all or any part of any sum payable pursuant to the Note, Revolving
Credit Agreement or any other Loan Document is rescinded or otherwise required
to be returned by the payee upon the insolvency, bankruptcy,
or reorganization of the payor, all as though such payment to Lender had
not been made, regardless of whether Lender contested the order requiring the
return of such payment.  The obligations
of each Guarantor pursuant to the preceding sentence shall survive any
termination, cancellation, or release of this Guaranty.

 

6.                                                    This
Guaranty shall be assignable by Lender to any assignee of all or a portion of
Lender’s rights under the Loan Documents.

 

7.                                                    If:  (i) this Guaranty, the Note or any
other Loan Document is placed in the hands of attorneys for collection or is
collected through any legal proceeding; (ii) attorneys are retained to
represent Lender in any bankruptcy, reorganization, receivership, or other
proceedings affecting creditors’ rights and involving a claim under this
Guaranty, the Note, the Revolving Credit Agreement, or any other Loan Document;
(iii) attorneys are retained to provide advice or other representation
with respect to the Loan Documents in connection with an enforcement action or
potential enforcement action; or (iv) attorneys are retained to represent
Lender in any other legal proceedings whatsoever in connection with this
Guaranty, the Note, the Revolving Credit Agreement, any of the other Loan
Documents, or any property subject thereto (other than any action or proceeding
brought by any Lender or participant against the Administrative Agent (as
defined in the Revolving Credit Agreement) alleging a breach by the
Administrative Agent of its duties under the Loan Documents), then each
Guarantor shall pay to Lender upon demand all reasonable attorneys’ fees, costs
and expenses, including, without limitation, court costs, filing fees,
recording costs, expenses of foreclosure, title insurance premiums, survey
costs, minutes of foreclosure, and all other costs and expenses incurred in
connection therewith (all of which are referred to herein as “Enforcement
Costs”), in addition to all other amounts due hereunder.

 

8.                                                    The
parties hereto intend that each provision in this Guaranty comports with all
applicable local, state and federal laws and judicial decisions.  However, if any provision or provisions, or
if any portion of any provision or provisions, in this Guaranty is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute, law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Guaranty to be illegal, invalid, unlawful, void or unenforceable as written,
then it is the intent of all parties hereto that such portion, provision or
provisions shall be given force to the fullest possible extent that they are
legal, valid and enforceable, that the remainder of this Guaranty shall be
construed as if such illegal, invalid, unlawful, void or unenforceable portion,
provision or provisions were not contained therein, and that the rights,
obligations and interest of Lender or any holder of the Note under the
remainder of this Guaranty shall continue in full force and effect.

 

9.                                                    Any
indebtedness of Borrower to any Guarantor now or hereafter existing is hereby
subordinated to the Facility Indebtedness. 
Each Guarantor agrees that until the entire Facility Indebtedness has
been paid in full and the aggregate Commitment is terminated, if an Event of
Default under the Revolving Credit Agreement exists and is continuing,
(i) Such Guarantor will

 

164

 

not seek, accept, or retain for such Guarantor’s own account, any
payment from Borrower on account of such subordinated debt, and (ii) any
such payments to such Guarantor on account of such subordinated debt shall be
collected and received by such Guarantor in trust for Lender and shall be paid
over to Lender on account of the Facility Indebtedness without impairing or
releasing the obligations of such Guarantor hereunder.

 

10.                                              Unless
and until the Facility Indebtedness is repaid in full and the Aggregate
Commitment is terminated, each Guarantor shall not assert any claim (within the
meaning of 11 U.S.C. § 101) which such Guarantor may have against Borrower
arising from a payment made by such Guarantor under this Guaranty and agrees
not to assert or take advantage of any subrogation rights of such Guarantor or
Lender or any right of such Guarantor or Lender to proceed against
(i) Borrower for reimbursement, or (ii) any other guarantor or any
collateral security or guaranty or right of offset held by Lender for the
payment of the Facility Indebtedness and performance of the Obligations, nor
shall such Guarantor seek or be entitled to seek any contribution or
reimbursement from Borrower or any other guarantor in respect of payments made
by such Guarantor hereunder.  It is
expressly understood that the waivers and agreements of such Guarantor set
forth above constitute additional and cumulative benefits given to Lender for
its security and as an inducement for its extension of credit to Borrower.

 

11.                                              Any
amounts received by Lender from any source on account of any indebtedness may
be applied by Lender toward the payment of such indebtedness, and in such order
of application, as Lender may from time to time elect.

 

12.                                              Each
Guarantor hereby submits to personal jurisdiction in the State of Illinois for
the enforcement of this Guaranty and waives any and all personal rights to
object to such jurisdiction for the purposes of litigation to enforce this
Guaranty.  Each Guarantor hereby
consents to the jurisdiction of either the Circuit Court of Cook County,
Illinois, or the United States District Court for the Northern District of
Illinois, in any action, suit, or proceeding which Lender may at any time wish
to file in connection with this Guaranty or any related matter.  Each Guarantor hereby agrees that an action,
suit, or proceeding to enforce this Guaranty may be brought in any state or
federal court in the State of Illinois and hereby waives any objection which
such Guarantor may have to the laying of the venue of any such action, suit, or
proceeding in any such court; provided, however, that the provisions of this
Paragraph shall not be deemed to preclude Lender from filing any such action,
suit, or proceeding in any other appropriate forum.

 

13.                                              All
notices and other communications provided to any party hereto under this
Agreement or any other Loan Document shall be in writing or by telex or by
facsimile and addressed or delivered to such party at its address set forth
below or at such other address as may be designated by such party in a notice
to the other parties.  Any notice, if
mailed and properly addressed with postage prepaid, shall be deemed given when
received; any notice, if transmitted by telex or facsimile, shall be deemed
given when transmitted (answerback confirmed in the case of telexes and
facsimiles).  Notice may be given as follows:

 

165

 

To Guarantors:

 

c/o The Rouse Company

10275 Little Patuxent
Parkway

Columbia, Maryland
21044-3456

Attention:     Patricia
H. Dayton

Telecopy:     (410)
964-3412

 

With a copy to:

 

The Rouse Company

10275 Little Patuxent
Parkway

Columbia, Maryland
21044-3456

Attention:     General
Counsel

Telecopy:     (410)
992-6392

 

To the Lender:

 

c/o Bank One, NA, as
Administrative Agent

1 Bank One Plaza

Chicago, Illinois 60670

Attention:  Patricia Leung, Corporate Real Estate

Telecopy:  (312) 732-1117

 

With a copy to:

 

Sonnenschein Nath &
Rosenthal LLP

8000 Sears Tower

Chicago, Illinois 60606

Attention:  Patrick G. Moran, Esq.

Telecopy:  (312) 876-7934

 

or at such other address or to such other person as
the party to be served with notice may have furnished in writing to the party
seeking or desiring to serve notice as a place for the service of notice.

 

14.                                              This
Guaranty shall be binding upon the heirs, executors, legal and personal
representatives, successors and assigns of Guarantors and shall inure to the
benefit of Lender’s successors and assigns.

 

15.                                              This
Guaranty shall be construed and enforced under the internal laws of the State
of New York.

 

16.                                            EACH
GUARANTOR AND LENDER, BY ITS ACCEPTANCE HEREOF, EACH HEREBY WAIVE ANY RIGHT TO
A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHT
UNDER THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR RELATING THERETO OR ARISING
FROM THE LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS

 

166

 

GUARANTY
AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND
NOT BEFORE A JURY.

 

17.                                              Each
Guarantor hereby joins the Revolving Credit Agreement for purposes of making
all representations and warranties of Guarantor (as defined in the Revolving
Credit Agreement) set forth therein and agreeing to all covenants of the
Guarantor (as defined in the Revolving Credit Agreement) set forth
therein.  Each Guarantor hereby consents
to the joinders of the Operating Partnership and each Wholly-Owned Borrowing
Subsidiary as Borrowers pursuant to the provisions of the Revolving Credit
Agreement.

 

18.                                              From
time to time, additional parties may execute a joinder substantially in the
form of Exhibit A hereto, and thereby become a party to this Guaranty.  From and after delivery of such joinder, the
entity delivering such joinder shall be a Guarantor, and be bound by all of the
terms and provisions of this Guaranty.

 

IN WITNESS WHEREOF,
Guarantors have delivered this Guaranty as of the date first written above.

 

	
   

  	
  [GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   By:

  	
   

  	
   

  
	
   

  	
   Its:

  	
   

  	
   

  

 

ACCEPTED:

 

BANK ONE, NA,

not individually but as Administrative

Agent for the Lender

 

	
  By:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  

 

167

 

EXHIBIT A TO GUARANTY

 

FORM OF JOINDER TO GUARANTY

 

THIS JOINDER is executed by
               ,
a
               
(“Additional Guarantors”), which hereby agrees as follows:

 

1.                                       All
capitalized terms used herein and not defined in this Joinder shall have the
meanings provided in that certain Guaranty (the “Guaranty”) dated as of
July 30, 2003 executed for the benefit of Bank One, NA, as agent for
itself and certain other lenders, with respect to a loan from the Lenders to
The Rouse Company (“Borrower”).

 

2.                                       As
required by the Credit Agreement described in the Guaranty, Additional
Guarantor is executing this Joinder to become a party to the Guaranty.

 

3.                                       Each
and every term, condition, representation, warranty, and other provision of the
Guaranty, by this reference, is incorporated herein as if set forth herein in
full and the undersigned agrees to fully and timely perform each and every
obligation of a Guarantor under such Guaranty.

 

[INSERT SIGNATURE BLOCK]

 

168

 

EXHIBIT K

 

DESCRIPTIONS OF INITIAL
FACILITY LETTERS OF CREDIT

 

	
  L/C NO.

  	
   

  	
  AMOUNT

  	
   

  	
  MATURITY
  DATE

  
	
  32373000

  	
   

  	
  $

  	
  1,750,000.00

  	
   

  	
  2/14/04

  
	
  00332373

  	
   

  	
  $

  	
  1,169,569.18

  	
   

  	
  7/7/04

  
	
  00325303

  	
   

  	
  $

  	
  30,000.00

  	
   

  	
  7/26/04

  
	
  00325330

  	
   

  	
  $

  	
  20,000.00

  	
   

  	
  8/26/04

  
	
  32355800

  	
   

  	
  $

  	
  34,990.00

  	
   

  	
  11/15/04

  
	
  32137500

  	
   

  	
  $

  	
  5,000.00

  	
   

  	
  9/21/04

  
	
  32352200

  	
   

  	
  $

  	
  3,277.50

  	
   

  	
  1/4/04

  

 

169

 

EXHIBIT L

 

FORM OF TRANSITION
MEMORANDUM

 

This TRANSITION
MEMORANDUM is dated as
of                     ,
2003, by and between The Rouse Company, a Maryland corporation (the “Company”),
and Bank One, NA, as Administrative Agent (“Administrative Agent”) for
the Existing Lenders and for the Continuing Lenders (as such terms are
hereinafter defined).

 

The Company has entered
into a certain Third Amended and Restated Unsecured Revolving Credit Agreement
dated as of July 30, 2003 (the “Credit Agreement”) with the lenders
named therein and the Agent.  The
lenders under the Credit Agreement are hereinafter referred to collectively as
the “Continuing Lenders”. 
Pursuant to the Credit Agreement the Continuing Lenders will agree to
extend credit to the Company through a revolving credit facility (the “New
Facility”) on the terms and subject to the conditions set forth
therein.  Capitalized terms not otherwise
defined herein are used with the same meanings as in the Credit Agreement.

 

The New Facility amends
and restates the existing revolving credit facility provided to the Company
(the “Existing Facility”) made available pursuant to that certain Second
Amended and Restated Unsecured Revolving Credit Agreement dated as of
December 21, 2000 (as amended, the “Existing Agreement”), by and
among the Company, the Administrative Agent and the lenders parties thereto
(each an “Existing Lender”).

 

Certain of the Existing
Lenders are not Continuing Lenders under the New Facility (the “Exiting
Lenders”).  In addition, pursuant to
the Credit Agreement (i) certain of the Existing Lenders will have a percentage
of the Aggregate Commitment under the New Facility that differs from their
percentage under the Existing Facility, and (ii) certain Continuing Lenders
joining the New Facility are not Existing Lenders.

 

The purpose of this
Transition Memorandum is to set forth an understanding of certain matters
concerning the transition by the Company from the Existing Facility to the New
Facility, such matters including, without limitation, (i) the payment of
all the outstanding Loans (as defined in the Existing Agreement and hereinafter
referred to as the “Existing Loans”) to the Exiting Lenders,
(ii) the changes necessary in the percentage of the Advances under the
Credit Agreement held by the Continuing Lenders, and (iii) the initial fundings
of Advances by the Continuing Lenders which are not Existing Lenders.

 

1.                                                 Summary
of Existing Loans.  The initial
Advance under the New Facility shall be used to pay any Existing Loans held by
the Exiting Lenders.  Prior to the date
the conditions precedent set forth in Article V of the Credit
Agreement are satisfied (such date being the “Effective Date”), the
Agent shall identify the Existing Loans payable by the Company under the
Existing Agreement to each Exiting Lender and advise the Continuing Lenders of
such amount.  The aggregate outstanding
balance of the Existing Loans held by the Exiting Lenders on the Effective Date
shall be hereinafter referred to as the “Exiting Lender Pay-Off Amount”.

 

2.                                                 Initial
Advance.  Subject to the terms and
conditions set forth in the Credit Agreement, including, without limitation,
satisfaction of the conditions precedent set forth in Article V
therein, the Continuing Lenders will make an initial Advance to the Company on
the Effective Date in an amount equal to the Exiting Lender Pay-Off
Amount.  The initial Advance shall be
based upon an Advance Notice and shall consist of such types of Advances
specified in such Advance Notice.  Each
Continuing

 

170

 

Lender will agree to make its share of such Advance available to the
Administrative Agent at such time and in such amount as provided in the Credit
Agreement as modified by Paragraphs 3 and 4 below.

 

3.                                                 Conversion
of Loans.  With respect to each
Continuing Lender, to the extent that such lender has an Existing Loan
outstanding on the date of the initial Advance, such Continuing Lender shall
only be required to fund to the Agent an amount (the “Net Funding Amount”)
equal to the excess, if any, of that amount by which the aggregate amount of
its Loans to be outstanding under the New Facility on the Effective Date exceeds
the aggregate amount of its Existing Loans (excluding any accrued and unpaid
interest, fees and other charges or expenses thereon).  After making its Net Funding Amount
available to the Administrative Agent, such Continuing Lender shall be deemed
to have made available all of its Loans under the New Facility and shall be
deemed to have converted its Existing Loans (excluding any accrued and unpaid
interest and other charges or expenses thereon).  To the extent that a Continuing Lender has Existing Loans in an
amount which exceeds the amount of its Loans to be outstanding under the New
Facility on the Effective Date, such Lender shall be deemed to have made
available all of its Loans under the New Facility required to be made on the
Effective Date and shall be repaid a portion of its Existing Loans equal to
such excess amount, if any, as provided in Paragraph 4.  All Existing Loans held by Continuing
Lenders which are outstanding on the Effective Date and not repaid shall
continue as the same type of Loan under the New Facility until repaid or
converted in accordance with the terms of the Credit Agreement; provided that
from and after the Effective Date such Existing Loans shall bear interest at
the interest rates applicable under the Credit Agreement rather than the rates
applicable under the Existing Agreement.

 

4.                                                 Percentage
Reconciliation.  If any Continuing
Lender holds Existing Loans (other than Competitive Bid Loans) on the Effective
Date which are in excess of such Continuing Lender’s Percentage of the Loans
(other than Competitive Bid Loans) to be outstanding under the New Facility (an
“Overfunded Lender”) on the Effective Date, such Overfunded Lender shall
be repaid from the additional funding under the following sentence an amount of
Existing Loans sufficient to eliminate such excess.  Each Continuing Lender that holds Existing Loans in an amount
less than such Continuing Lender’s Percentage of the Loans (other than
Competitive Bid Loans) to be outstanding under the New Facility on the
Effective Date (an “Underfunded Lender”) shall make an additional
funding as a Loan at the Alternate Base Rate in connection with the initial
Advance in an amount sufficient to eliminate such shortfall (such additional
funding being collectively referred to as “Percentage Reconciliation Funding
Amount”).

 

5.                                                 Distribution
of Initial Advance.  After each
Continuing Lender has funded its Loan (or so much of such Loan as may be
required pursuant to Paragraphs 3 and 4 above), the
Administrative Agent shall (i) distribute to each Exiting Lender its
Exiting Lender Pay-Off Amount in accordance with the Existing Agreement and
(ii) distribute to each Overfunded Lender its share of the aggregate
Percentage Reconciliation Funding Amount.

 

6.                                                 Payment
of Accrued Interest and Fees; Indemnification.  On the Effective Date the Company shall pay to the Administrative
Agent for distribution to each Exiting Lender all accrued interest and fees
owing to such Lender for its Existing Loans. 
To the extent of its obligations under the Existing Agreement, the
Company shall pay each Exiting Lender for all reasonable losses, costs and
expenses incurred by such Exiting Lender in connection with any prepayment of
its Existing Loans in accordance with the terms of the Existing Agreement.

 

7.                                                 Termination
of Commitments under Existing Facility. 
On the Effective Date the commitments of the Lenders (as defined in the
Existing Agreement) under the Existing Facility shall terminate and the Lenders
therein shall have no further obligation to make any further Loans (as defined
in the Existing Agreement) under the Existing Facility.

 

171

 

8.                                                 No
Modification.  It is understood and
agreed to by the parties hereto that, except as expressly set forth above,
nothing in this memorandum shall modify or amend the covenants, terms and
agreements set forth in the Existing Agreement or the documents related thereto
or in the Credit Agreement and the other Loan Documents, or discharge the
obligations of (a) the Company, the Existing Lenders and the Administrative
Agent under the Existing Agreement, and (b) the Company, the Continuing Lenders
and the Agent under the Credit Agreement.

 

	
  BORROWER:

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ADMINISTRATIVE AGENT

  	
  BANK ONE, N.A.

  
	
  ON BEHALF OF

  	
  as Administrative Agent for the Continuing Lenders

  
	
  EXISTING LENDERS

  	
   

  
	
  AND CONTINUING LENDERS:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

172

 

EXHIBIT M

 

FORM OF REAFFIRMATION OF
PLEDGE AGREEMENT

 

REAFFIRMATION OF PLEDGE AGREEMENT

 

This Reaffirmation of Pledge Agreement
(“Reaffirmation”) is made as of July 30, 2003 by THE ROUSE COMPANY, a
Maryland corporation (“Rouse”) and THE HUGHES CORPORATION, a Delaware
corporation (“Hughes” and together with “Rouse”, the “Pledgors”) in favor of
BANK ONE, NA, as collateral agent (“Agent”) for itself and the other “Lenders”
from time to time under that certain Third Amended and Restated Unsecured
Revolving Credit Agreement of even date herewith among Agent, Borrower and
certain banks which are parties thereto (the “Credit Agreement”).

 

The Pledgors have made that certain Pledge Agreement
dated as of December 21, 2000 for the benefit of the Lenders (“the Pledge
Agreement”), a copy of which is attached hereto as Schedule I.

 

Borrower, Agent and the Lenders are entering into the
Credit Agreement to amend and restate that certain Second Amended and Restated
Unsecured Revolving Credit Agreement dated December 21, 2000 pursuant to
which the Lenders are agreeing to make a revolving credit facility available to
Rouse.

 

The Lenders have requested that this Reaffirmation be
executed and delivered to confirm that the Pledge Agreement will continue in
full force and effect with respect to the Credit Agreement notwithstanding such
amendment and restatement.

 

THEREFORE, in consideration of the foregoing, the
Pledgors agree as follows:

 

1.                                                 Defined
Terms.  All references in the Pledge
Agreement to the “Credit Agreement” shall be deemed to be references to the
Credit Agreement as amended and restated as of the date hereof.

 

2.                                                 Continued
Effect, No Default.  The Pledgors
hereby confirm to the Agent that the Pledge Agreement is in full force and
effect and has not been amended, and, no breach or default on the part of
either party now exists under the Pledge Agreement.

 

3.                                                 Counterparts.  This Reaffirmation may be executed
simultaneously in any number of counterparts. 
Each counterpart shall be deemed to be an original, and all such
counterparts shall constitute one and the same instrument.

 

4.                                       No Novation.  This Reaffirmation shall not constitute a
novation.

 

173

 

In witness of the foregoing, the parties have executed
and delivered this Reaffirmation as of the date first above written.

 

	
   

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE HUGHES CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

174

 

EXHIBIT A TO EXHIBIT M

 

THE PLEDGED SHARES

 

1)                                      Nine
(9) shares of Class A Common Stock, nine thousand (9,000) shares of Class B
Common Stock and twenty-five thousand (25,000) shares of Series A Preferred
Stock of HHP;

 

2)                                      nine
(9) shares of Class A Common Stock and nine thousand (9,000) shares of Class B
Common Stock of Hughes; and

 

3)                                      fifty-six
thousand seven hundred sixty-three (56,763) shares of Common Stock of HHC
(formerly Summa Corporation).

 

175

 

EXHIBIT N

 

FORM OF BORROWING
SUBSIDIARY JOINDER

 

This Joinder is made as of
                            ,
2     by The Rouse Company (“Rouse”), [insert name of
Wholly-Owned Borrowing Subsidiary] (“New Borrowing Subsidiary”) and Bank One,
NA, the Administrative Agent under the Credit Agreement (as defined below).

 

Rouse, certain Subsidiaries of Rouse, JPMorgan Chase Bank,
individually and as Co-Syndication Agent, Deutsche Bank Trust Company Americas,
individually and as Co-Syndication Agent, Bank One, NA, individually and as
Administrative Agent, and certain other lenders are parties to the Third
Amended and Restated Unsecured Revolving Credit Agreement dated as of
                  ,
2003, as amended (the “Credit Agreement”). 
All capitalized terms used herein and not otherwise defined shall have
the meanings given to them in the Credit Agreement.

 

Under Section 2.1(b) of the Credit Agreement, Rouse
has the right to designate Wholly-Owned Borrowing Subsidiaries which will share
in the rights of the Borrower under the Credit Agreement.

 

Rouse desires to so designate New Borrowing Subsidiary
and the Administrative Agent is prepared to accept such designation.

 

1.                                       Designation.  Rouse hereby designates New Borrowing
Subsidiary as a Wholly-Owned Borrowing Subsidiary effective as of the date that
(i) this Joinder has been fully executed and delivered to the Administrative
Agent and (ii) the New Borrowing Subsidiary has executed and delivered to the
Administrative Agent a Note and a Competitive Bid Note in the form of Exhibits
B-1 and B-2, respectively, for each Lender (in the amount of such Lender’s
current Commitment in the case of Exhibit B-1).

 

2.                                       Representations
and Warranties.  Rouse hereby
represents and warrants to the Lenders that:

 

(a)                                  Rouse
owns, directly or indirectly, 100% of the ownership interests in the New
Borrowing Subsidiary;

 

(b)                                 after
giving effect to this Joinder no more than six (6) Wholly-Owned Borrowing
Subsidiaries have been designated by Rouse; and

 

(c)                                  no
Default or Event of Default has occurred and is continuing under the Credit
Agreement.

 

3.                                       Joinder.  New Borrowing Subsidiary hereby accepts the
rights, duties, obligations and responsibilities of the Borrower under the
Credit Agreement and the Loan Documents and agrees that its liability
thereunder shall be joint and several with Rouse and all other Wholly-Owned
Borrowing Subsidiaries, subject to the restrictions and liability applicable to
the Limited Guarantors as described in Section 2.1(b) of the Credit
Agreement.  New Borrowing Subsidiary has
delivered to the Administrative Agent all documentation described in
Subsections 5.1(a)-(f), inclusive, of the Credit Agreement with respect to such
New Borrowing Subsidiary.  New Borrowing
Subsidiary hereby specifically joins in and makes all of the representations
and warranties made by the Borrower under Article VI of the Credit Agreement
with the following modifications.

 

[insert information on organization
for Section 6.1, 6.19 and Subsidiaries under Section 6.25]

 

176

 

The New Borrowing Subsidiary hereby irrevocably
designates and authorizes Rouse as its exclusive agent to act on its behalf in
connection with the requesting, funding, maintenance, conversion, continuation
and repayment of any Advances under the Credit Agreement, or the issuance,
extension, modification or cancellation of any Facility Letter of Credit
thereunder, or any other matter relating to the Credit Agreement or the Loan
Documents, including without limitation any amendments thereto or consents
thereunder, and agrees that the Administrative Agent and the Lenders may rely
on any directions or undertakings given by Rouse with respect to such matters
without further inquiry of or confirmation from the New Borrowing Subsidiary.

 

In witness of the foregoing, Rouse, the New Borrowing
Subsidiary and the Administrative Agent have executed this Joinder as of the
date first written above.

 

	
   

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NEW BORROWING SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK ONE, NA, not Individually but as Administrative

  Agent, as aforesaid

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
										

 

177

 

EXHIBIT O

 

INTENTIONALLY OMITTED

 

178

 

EXHIBIT P

 

FORM OF
THE ROUSE COMPANY, L.P.

 

JOINDER

 

THIS JOINDER is made as of
                  ,
200  by and among THE ROUSE COMPANY, L.P., a Delaware limited partnership
(the “Operating Partnership”), THE ROUSE COMPANY, a Maryland corporation
(“Rouse” and together with Rouse’s Wholly-Owned Borrowing Subsidiaries,
the “Borrower”).

 

WITNESSETH:

 

WHEREAS, the Borrower, Bank One, NA, individually and
as Administrative Agent and as Competitive Bid Option Agent, JPMorgan Chase
Bank, individually and as Co-Syndication Agent, Deutsche Bank Trust Company
Americas, individually and Co-Syndication Agent, and the Lenders named therein
have heretofore executed and delivered the Third Amended and Restated Unsecured
Revolving Credit Agreement, dated as of
                   ,
2003, as the same may have been heretofore amended or supplemented (the “Credit
Agreement”), pursuant to which the Lenders made loans available to the
Borrower in the maximum aggregate principal amount of up to $900,000,000; and

 

WHEREAS, pursuant to the Credit Agreement, Rouse
agreed to cause the Operating Partnership, on or before the Transfer Date (as
defined therein), to become a co-obligor with Rouse with respect to all of the
payment obligations of Rouse under the Credit Agreement and each of the other
Loan Documents and be jointly, severally and unconditionally liable with respect
thereto, including, without limitation, with respect to the due and punctual
payment of the principal of (and premium, if any) and interest on all the
Notes.

 

NOW, THEREFORE, in consideration of the mutual
agreements herein contained, and for other good and valuable consideration, the
receipt of which is hereby acknowledged, the Operating Partnership, Rouse, and
the Wholly-Owned Borrowing Subsidiaries hereby agree as follows:

 

ARTICLE ONE

 

SECTION 1.1                          Relation
to Credit Agreement.  This Joinder
constitutes an integral part of the Credit Agreement.

 

SECTION 1.2                          Rules
of Construction.  For all purposes
of this Joinder:

 

(a)                                  capitalized terms used herein
without definition shall have the meanings specified in the Credit Agreement;

 

(b)                                 all references herein to Articles
and Sections, unless otherwise specified, refer to the corresponding Articles
and Sections of this Joinder; and

 

179

 

(c)                                  the
terms “herein”, “hereof”, “hereunder” and other words of
similar import refer to this Joinder.

 

ARTICLE TWO

 

SECTION 2.1.                       Obligations
of the Operating Partnership.

 

(a)                                  The
Operating Partnership hereby accepts the rights, obligations, duties and
responsibilities of the Borrower under the Credit Agreement and the Loan Documents
and agrees that its liability thereunder shall be joint and several with Rouse.

 

(b)                                 The
Operating Partnership has executed and delivered to the Administrative Agent a
Note and a Competitive Bid Note in the form of Exhibits B-1 and B-2 to the
Credit Agreement, respectively, for each Lender (in the amount of such Lender’s
current Commitment in the case of Exhibit B-1).

 

(c)                                  The
Operating Partnership has delivered to the Administrative Agent all
documentation described in Subsections 5.1(a)-(f), inclusive, of the Credit
Agreement with respect to the Operating Partnership.

 

SECTION 2.2.                       Obligations
of Rouse.  Rouse hereby agrees that
its Obligations under the Credit Agreement and the Loan Documents shall not be
affected by this Joinder and shall remain in full force and effect.

 

SECTION 2.3.                       Obligations
of the Wholly-Owned Borrowing Subsidiaries.  Each Wholly-Owned Borrowing Subsidiary hereby agrees that its
Obligations under the Credit Agreement and the Loan Documents shall not be
affected by this Joinder and shall remain in full force and effect.

 

ARTICLE THREE

 

SECTION 3.1                          Modifications
to Existing Definitions.  The
definition of “Borrower” set forth in Section 1.1 of the Credit Agreement shall
be replaced by the following:

 

“Borrower” means,
as of any date, collectively, The Rouse Company, all of its Subsidiaries then
included as Wholly-Owned Borrowing Subsidiaries pursuant to Section 2.1(b),
and the Operating Partnership along with their respective successors and
assigns.

 

ARTICLE FOUR

 

SECTION 4.1                          Representations
and Warranties.  Rouse hereby
represents and warrants to the Lenders that:

 

(a)                                  Organization.  The Operating Partnership is a limited
partnership duly organized, validly existing and in good standing under the
laws of the State of Delaware.

 

(b)                                 Authority.  The Operating Partnership has power and
authority to execute, deliver and perform its obligations under this Joinder
and has taken all action required by

 

180

 

law, its Limited Partnership Agreement, or otherwise
to authorize the execution and delivery of this Joinder.  This Joinder has been duly and validly
authorized, executed and delivered by and, assuming the due and valid
authorization, execution and delivery hereof by the other parties hereto, is
the valid and binding obligation of the Operating Partnership, enforceable
against it in accordance with its terms.

 

(d)                                 No
Default.  No Default or Event of
Default has occurred and is continuing under the Credit Agreement.

 

ARTICLE FIVE

 

EXCLUSIVE AGENT

 

The Operating
Partnership hereby irrevocably designates and authorizes Rouse as its exclusive
agent to act on its behalf in connection with the requesting, funding,
maintenance, conversion, continuation and repayment of any Advances under the
Credit Agreement, or the issuance, extension, modification or cancellation of
any Facility Letter of Credit thereunder, or any other matter relating to the
Credit Agreement or the Loan Documents, including without limitation any
amendments thereto or consents thereunder, and agrees that the Administrative
Agent and the Lenders may rely on any directions or undertakings given by Rouse
with respect to such matters without further inquiry of or confirmation from
the Operating Partnership.

 

ARTICLE  SIX

 

MISCELLANEOUS PROVISIONS

 

SECTION 6.1                          Ratification.  The
Credit Agreement, as supplemented and amended by this Joinder, is in all
respects hereby adopted, ratified and confirmed.

 

SECTION 6.2                          Counterparts.  This Joinder may be executed in any number
of counterparts, each of which when so executed shall be deemed an original,
but all such counterparts shall together constitute but one and the same
instrument.

 

181

 

SECTION
7.3                     Governing
Law.  THIS JOINDER SHALL BE CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE
STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS.

 

SECTION 7.4                          Effective
Date.  This Joinder shall be
effective as of the date hereof.

 

182

 

IN WITNESS WHEREOF, the parties hereto have caused this Joinder to be
duly executed as of the date first written above.

 

	
   

  	
  THE ROUSE COMPANY,
  L.P.,

  
	
   

  	
  By:

  	
  TRCGP, Inc.,

  
	
   

  	
   

  	
  as General Partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE ROUSE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
								

 

 

SCHEDULE 6.19

 

ENVIRONMENTAL COMPLIANCE
(BORROWER)

 

NONE

 

2

 

SCHEDULE 6.25

 

SUBSIDIARIES
(BORROWER)

 

As of June 30, 2003, The Rouse Company owned 100% of
the voting securities (all shares are Common Stock unless otherwise noted) of
the following domestic and foreign corporations, all of the outstanding
membership interests of the following domestic and foreign limited liabilities
companies, and is the sole trustee of the following domestic business trust,
all included in the consolidated financial statements:

 

	
  Subsidiary

  	
   

  	
  State of

  Incorporation

  
	
  Hermes, Incorporated

  	
   

  	
  Maryland

  
	
  Howard Hughes Properties, Inc. (Note 1)

  	
   

  	
  Nevada

  
	
  HRD Properties, Inc. (Note 2)

  	
   

  	
  Maryland

  
	
  HRD Remainder, Inc. (Note 3)

  	
   

  	
  Maryland

  
	
  Hughes Corporation, The  (Note 4)

  	
   

  	
  Delaware

  
	
  Rouse Capital (Note 5)

  	
   

  	
  Delaware

  
	
  The Rouse Company Business Trust

  	
   

  	
  Maryland

  
	
  Rouse Property Management, Inc. (Note 6)

  	
   

  	
  Maryland

  
	
  TRC Exton Plymouth 12 through 39, LLC (Note 7)

  	
   

  	
  Delaware

  
	
  TRC Gallery at Market East 1 through 39, LLC (Note
  8)

  	
   

  	
  Delaware

  
	
  TRC Property Holdings, Inc. (Note 9)

  	
   

  	
  Maryland

  
	
  TRCGP, Inc.

  	
   

  	
  Maryland

  

 

As of June 30, 2003, TRCGP, Inc. owned all of the
outstanding membership interests of Terrapin Acquisition, LLC, a Maryland
limited liability company, and is the sole general partner of The Rouse Company
LP, which owned 61% of Gallery at Market East LLC and Plymouth Meeting Property
LLC, Delaware limited liability companies, and 100% of the voting securities or
membership interests of the following domestic and foreign corporations and
limited liability companies included in the consolidated financial statements:

 

	
  Subsidiary

  	
   

  	
  State of

  Incorporation

  
	
  American City Company, LLC, The

  	
   

  	
  Maryland

  
	
  Baltimore Center, LLC

  	
   

  	
  Delaware

  
	
  Beachwood Property Holdings, LLC

  	
   

  	
  Maryland

  
	
  Charlottetown, LLC

  	
   

  	
  Maryland

  
	
  Charlottetown North, LLC

  	
   

  	
  Maryland

  
	
  Chesapeake Investors, LLC (Note 10)

  	
   

  	
  Delaware

  

 

3

 

	
  Christiana Holdings I LLC (Note 11)

  	
   

  	
  Delaware

  
	
  Community Research and Development, LLC

  	
   

  	
  Maryland

  
	
  Cuyahoga Land Company, LLC

  	
   

  	
  Maryland

  
	
  Exton Shopping, LLC

  	
   

  	
  Maryland

  
	
  Four Owings Mills Corporate Center, LLC

  	
   

  	
  Maryland

  
	
  Franklin Park Mall Company, LLC (Note 12)

  	
   

  	
  Maryland

  
	
  Gallery Maintenance, LLC (Note 13)

  	
   

  	
  Maryland

  
	
  Gallery II Trustee, LLC

  	
   

  	
  Maryland

  
	
  Harborplace Management Company, LLC

  	
   

  	
  Maryland

  
	
  Hermes, LLC

  	
   

  	
  Maryland

  
	
  Hulen, LLC

  	
   

  	
  Maryland

  
	
  HRD Remainder, LLC (Note 14)

  	
   

  	
  Maryland

  
	
  Louisville Shopping Center, LLC

  	
   

  	
  Kentucky

  
	
  O. M. Guaranty, LLC

  	
   

  	
  Maryland

  
	
  O. M. Land Development, LLC

  	
   

  	
  Maryland

  
	
  One Owings Mills Corporate Center, LLC

  	
   

  	
  Maryland

  
	
  Owings Mills Finance Company, LLC

  	
   

  	
  Maryland

  
	
  Plymouth Meeting Food Court, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Columbus, LLC

  	
   

  	
  Maryland

  
	
  Rouse Company at Owings Mills, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Alabama, LLC, The

  	
   

  	
  Alabama

  
	
  Rouse Company of Alaska, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Arkansas, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of California, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Colorado, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Connecticut, LLC, The

  	
   

  	
  Delaware

  
	
  Rouse Company of Florida, LLC, The (Note 15)

  	
   

  	
  Florida

  
	
  Rouse Company of Georgia, LLC, The (Note 16)

  	
   

  	
  Georgia

  
	
  Rouse Company of Idaho, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Illinois, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Iowa, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Kentucky, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Louisiana, LLC, The (Note 17)

  	
   

  	
  Maryland

  
	
  Rouse Company of Maine, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Massachusetts, LLC, The (Note 18)

  	
   

  	
  Maryland

  
	
  Rouse Company of Michigan, LLC, The (Note 19)

  	
   

  	
  Maryland

  
	
  Rouse Company of Minnesota, LLC, The (Note 20)

  	
   

  	
  Maryland

  
	
  Rouse Company of Mississippi, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Montana, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Nevada, LLC, The (Note 21)

  	
   

  	
  Nevada

  
	
  Rouse Company of New Hampshire, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of New Jersey, LLC, The (Note 22)

  	
   

  	
  New Jersey

  

 

4

 

	
  Rouse Company of New Mexico, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of New York, LLC, The (Note 23)

  	
   

  	
  New York

  
	
  Rouse Company of North Carolina, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of North Dakota, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Ohio, LLC, The (Note 24)

  	
   

  	
  Ohio

  
	
  Rouse Company of Oklahoma, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Oregon, LLC, The (Note 25)

  	
   

  	
  Maryland

  
	
  Rouse Company of Pennsylvania, LLC, The (Note 26)

  	
   

  	
  Pennsylvania

  
	
  Rouse Company of Rhode Island, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of South Carolina, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of South Dakota, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Tennessee, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Texas, LLC, The (Note 27)

  	
   

  	
  Texas

  
	
  Rouse Company of the District of Columbia, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Utah, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Vermont, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Virginia, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Washington, LLC, The  (Note 28)

  	
   

  	
  Maryland

  
	
  Rouse Company of West Virginia, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Wisconsin, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company of Wyoming, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Company Protective Trust, Inc., The

  	
   

  	
  Delaware

  
	
  Rouse-Coral Gables Development, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Coral Gables Property, LLC

  	
   

  	
  Maryland

  
	
  Rouse Fashion Show Management, LLC

  	
   

  	
  Maryland

  
	
  Rouse Gallery II Management, LLC

  	
   

  	
  Maryland

  
	
  Rouse Holding Company, LLC, The

  	
   

  	
  Maryland

  
	
  Rouse Holding Company of Arizona, LLC, The (Note 29)

  	
   

  	
  Maryland

  
	
  Rouse Investing Company, LLC

  	
   

  	
  Maryland

  
	
  Rouse Management, LLC

  	
   

  	
  Maryland

  
	
  Rouse Metro Plaza, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Metro Shopping Center, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Milwaukee, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Milwaukee Garage Maintenance, LLC

  	
   

  	
  Maryland

  
	
  Rouse Missouri Holding Company, LLC (Note 30)

  	
   

  	
  Maryland

  
	
  Rouse Oakbrook, LLC (Note 31)

  	
   

  	
  Delaware

  
	
  Rouse-Oakwood Shopping Center, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Oakwood Two, LLC

  	
   

  	
  Maryland

  
	
  Rouse Office Management, LLC

  	
   

  	
  Maryland

  
	
  Rouse Office Management of Pennsylvania, LLC

  	
   

  	
  Maryland

  
	
  Rouse Owings Mills Management Company, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Phoenix Cinema, LLC

  	
   

  	
  Maryland

  

 

5

 

	
  Rouse-Randhurst Shopping Center, LLC

  	
   

  	
  Maryland

  
	
  Rouse SI Shopping Center, LLC

  	
   

  	
  Maryland

  
	
  Rouse Tri-Party Miscellaneous, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Urban Acquisition, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Urban, LLC

  	
   

  	
  Maryland

  
	
  Rouse-Wates, LLC (Note 32)

  	
   

  	
  Delaware

  
	
  RREF Holding, LLC (Note 33)

  	
   

  	
  Texas

  
	
  RSE Preferred Acquisitions, LLC

  	
   

  	
  Maryland

  
	
  Salem Mall, LLC

  	
   

  	
  Maryland

  
	
  SMPL Management, LLC

  	
   

  	
  Maryland

  
	
  Terrapin Acquisition, LLC

  	
   

  	
  Maryland

  
	
  Three Owings Mills Corporate Center, LLC

  	
   

  	
  Maryland

  
	
  TRC Central, LLC

  	
   

  	
  Maryland

  
	
  TRCD, LLC (Note 34)

  	
   

  	
  Delaware

  
	
  TRC Property Management, LLC

  	
   

  	
  Maryland

  
	
  TRC Purchasing, LLC

  	
   

  	
  Maryland

  
	
  Two Owings Mills Corporate Center, LLC

  	
   

  	
  Maryland

  
	
  Two Willow Company, LLC (Note 35)

  	
   

  	
  Delaware

  
	
  White Marsh Equities Company, LLC

  	
   

  	
  Maryland.

  

 

Notes:

 

1.                                       Howard
Hughes Properties, Inc. owns all of the outstanding common stock or membership
interests of the following entities:

 

10000 West
Charleston Boulevard, LLC, a Nevada limited liability company

Howard Hughes
Canyon Pointe Q3, LLC, a Nevada limited liability company

Howard Hughes
Canyon Pointe Q4, LLC, a Nevada limited liability company

Howard Hughes
Centerpoint, LLC, a Nevada limited liability company

Howard Hughes
Properties IV, LLC, a Delaware limited liability company

Howard Hughes
Properties V, LLC, a Delaware limited liability company

Howard Hughes
Properties VI, LLC, a Nevada limited liability company

Howard Hughes
Properties VII, LLC, a Nevada limited liability company

HRD-HHP Holdings,
LLC, a Nevada limited liability company

Rouse Westin,
Inc., a Maryland corporation.

 

2.                                       HRD
Properties, Inc. owns all of the outstanding common stock of the following
corporations, all of the membership interests of the following limited
liability companies, and is the sole trustee of the following business trust:

 

6

 

BCI Holdings,
Inc., a Maryland corporation

Greengate Mall,
Inc., a Pennsylvania corporation

Philadelphia
Gallery II, a Pennsylvania business trust

RREF Hotel
Holdings, Inc., a Maryland corporation

Rouse-Abbey, LLC,
a Maryland limited liability company

Rouse-Kravco, LLC,
a Maryland limited liability company

VCK Holdings,
Inc., a Maryland corporation.

 

BCI Holdings, Inc.
owns all of the outstanding common stock of Rouse-Brandywood, Inc., a Maryland
corporation.

 

RREF Hotel
Holdings, Inc. owns all of the outstanding common stock of Rouse-Fairwood
Development Corporation, a Maryland corporation.

 

Rouse-Fairwood
Development Corporation is the general partner of Rouse-Fairwood Development
Limited Partnership, which owns all of the outstanding membership interests of
the following Maryland limited liability companies:

 

Fairwood-Four
Front-Foot Benefit Company, LLC

Fairwood-Prospect
Front-Foot Benefit Company, LLC

Fairwood-Three
Front-Foot Benefit Company, LLC.

 

VCK Holdings, Inc.
owns all of the outstanding common stock of Rouse-Canyon Springs, Inc. and The
Rouse Development Company of California, Inc., both Maryland corporations.

 

3.                                       HRD
Remainder, Inc. owns 57.6% of the outstanding common stock of The Howard
Research and Development Corporation, a Maryland corporation, and all of the
outstanding common stock or membership interests of the following Maryland
entities:

 

The Howard
Research and Development Holdings Corporation

North Star Mall
II, LLC

West Kendall
Holdings, LLC

Willowbrook II,
LLC

 

Willowbrook II,
LLC owns 1.16% of the outstanding membership interest in Franklin Park Mall,
LLC, a Delaware limited liability company

 

Franklin Park
Mall, LLC owns all of the outstanding membership interest in Weeping Willow
RNA, LLC, a Delaware limited liability company

 

The Howard
Research and Development Corporation owns all of the outstanding common stock
or membership interests of the following Maryland entities:

 

7

 

Columbia Land
Holdings, Inc.

Emerson Corporation

ExecuCentre, LLC

HRD Commercial
Properties, Inc.

HRD Investment,
Inc.

Rouse-Houston GP,
LLC

LP Rouse-Houston,
LLC

Rouse-MerchantWired,
Inc.

Rouse Properties,
Inc.

Rouse
Transportation, LLC

Stansfield-Laurel,
Inc.

Stone Lake
Corporation.

 

The Howard Research
and Development Holdings Corporation owns 40.6% of the outstanding common stock
of The Howard Research and Development Corporation, and owns all of the
outstanding common stock or membership interests of the following Maryland
entities and is the sole trustee of the following Maryland business trusts:

 

Benson Park
Business Trust

CM Theatre
Business Trust

Columbia Crossing,
Inc.

Columbia Gateway,
Inc.

Columbia
Management, Inc.

Dorsey’s Search
Village Center, Inc.

Eighty Columbia
Corporate Center, Inc.

Fashion Show II,
LLC

Fifty Columbia
Corporate Center, Inc.

Forty Columbia
Corporate Center, Inc.

Gateway Investor,
LLC

Gateway Retail
Center, Inc.

GEAPE III, Inc.

Hickory Ridge
Village Center, Inc.

HRD Parking, Inc.

King’s Contrivance
Village Center, Inc.

Lakefront North
Parking, Inc.

Oakland Ridge
Commercial, Inc.

Oakland Ridge
Industrial Development Corporation

Rouse-Phoenix
Hotel Corporation

Rouse-Phoenix
Hotel Parking, Inc.

Rouse-River Hill
Village Center, Inc.

Sixty Columbia
Corporate Center, Inc.

 

8

 

Eighty Columbia
Corporate Center, Inc. is the Sole Member of Eighty Columbia Corporate Center,
LLC, a Maryland limited liability company

 

GEAPE III, Inc.
owns 1.8% of the outstanding common stock of The Howard Research and
Development Corporation and owns all of the outstanding common stock of GEAPE
Land Holdings, Inc., a Maryland corporation

 

GEAPE Land
Holdings, Inc. owns all of the outstanding common stock of The Columbia
Development Corporation and GEAPE Land Holdings II, Inc., both Maryland
corporations.

 

The Columbia
Development Corporation owns all of the outstanding common stock of the
following Maryland corporations:

 

Columbia Mall,
Inc.

Dobbin Road
Commercial, Inc.

Guilford
Industrial Center, Inc.

 

Columbia Mall,
Inc. owns all of the outstanding common stock of the following Maryland
corporations and is sole trustee of the following Maryland business trusts:

 

10 CCC Business
Trust

20 CCC Business
Trust

30 CCC Business
Trust

Columbia Mall
Business Trust

Harper’s Choice
Village Center, Inc.

HRD Parking Deck
Business Trust

Longfellow
Business Trust

Mall in Columbia
Business Trust

Merriweather Post
Business Trust

Running Brook
Business Trust

Seventy Columbia
Corporate Center, Inc.

Town Center East
Business Trust

 

Columbia Mall
Business Trust is the Sole Member of Columbia Mall SPE, LLC, a Maryland limited
liability company.

 

Rouse Columbia
Contribution, LLC, a Maryland limited liability company, is owned by various
subsidiaries and affiliates of The Howard Research and Development Holdings
Corporation.

 

Rouse Columbia
Contribution, LLC owns all of the outstanding membership interests of Lakeside
Mall, LLC, a Michigan limited liability company.

 

9

 

4.                                       The
Hughes Corporation owns all of the outstanding common stock membership
interests of The Howard Hughes Corporation, a Delaware corporation, Howard
Hughes Realty, Inc., a Nevada corporation, and THC-HRE, LLC, a Maryland limited
liability company.

 

The Howard Hughes
Corporation owns all of the outstanding common stock or membership interests of
the following entities:

 

HHC LP Corp., a
Delaware corporation

Hughes Properties,
Inc., a Nevada corporation

H-Tex,
Incorporated, a Texas corporation

Red Rock
Investment, LLC, a Nevada limited liability company

Summa Corporation,
a Delaware corporation

Summerlin
Corporation, a Delaware corporation

 

The Howard Hughes
Corporation is the General Partner of Howard Hughes Properties, Limited
Partnership (“HHPLP”), a Delaware limited partnership, which owns approximately
13% of the units of membership interest of S-R Nevada Properties LLC, a Nevada
limited liability company, which is the sole member of Summerlin Centre,
LLC.  In addition, HHPLP owns all of the
outstanding membership interests of the following Nevada limited liability
companies:

 

Howard Hughes
Properties I, LLC

Howard Hughes
Properties II, LLC

Howard Hughes
Properties III, LLC

 

5.                                       Rouse
Capital is a statutory business trust formed under Delaware law.  All of the Common Securities of Rouse
Capital are owned by the Company.  The
Preferred Securities of Rouse Capital were sold in a public registered offering
in 1995.

 

6.                                       Rouse
Property Management, Inc. owns 35% of the outstanding common stock of Four
State Facility Corporation, a Delaware corporation, and all of the outstanding
common stock or membership interests of the following Maryland entities:

 

Faneuil Hall
Beverage, LLC

Harborplace, Inc.

Rouse Development
Management, LLC

Rouse-West Dade,
Inc.

 

7.                                       TRC
Exton Plymouth 12 through TRC Exton Plymouth 39, LLC each owns 1% of the
membership interests of Plymouth Meeting Property LLC, a Delaware limited
liability company, respectively.

 

10

 

8.                                       TRC
Gallery at Market East 1 through TRC Gallery at Market East 39, LLC each owns
1% of the membership interests of Gallery at Market East LLC, a Delaware
limited liability company.

 

9.                                       TRC
Property Holdings, Inc. owns all of the outstanding common stock of Rouse
Tri-Party TRS, Inc.

 

10.                                 Chesapeake
Investors, LLC owns all of the outstanding membership interests of Rouse
Commercial Properties, LLC, a Maryland limited liability company:

 

Rouse Commercial
Properties, LLC owns all of the outstanding common stock of the following
Maryland entities:

 

Hunt Valley Title
Holding Company, LLC

Rouse Acquisition
Finance, LLC

Rouse Commercial
Finance, LLC

 

Hunt Valley Title
Holding Company, LLC owns 5% of the outstanding common stock of Rouse-Teachers
Holding Company (a Nevada corporation).

 

Rouse-Teachers Holding
Company owns all of the outstanding common stock of Rouse-Teachers Land
Holdings, Inc., a Maryland corporation.

 

11.                                 Christiana
Holdings I LLC owns 50% of the outstanding membership interests of Christiana
Acquisition LLC, a Delaware limited liability company.

 

Christiana
Acquisition LLC owns all of the outstanding membership interests in Christiana
Mall LLC, a Delaware limited liability company.

 

Christiana Mall
LLC, owns all of the outstanding common stock of CMA Access Corporation, a
Delaware corporation.

 

12.                                 Franklin
Park Mall Company, LLC owns 56.94% of the outstanding membership interest in
Franklin Park Mall, LLC, a Delaware limited liability company.

 

Franklin Park
Mall, LLC owns all the outstanding membership interests of Weeping Willow RNA,
LLC, a Delaware limited liability company

 

13.                                 Gallery
Maintenance, LLC owns all of the outstanding membership interests of Rouse
Gallery Management, LLC, a Maryland limited liability company.

 

14.                                 HRD
Remainder, LLC owns all of the outstanding membership interests of HRDHC, LLC,
a Maryland limited liability company.

 

HRDHC, LLC owns
all of the outstanding membership interests of each of the following Maryland
limited liability companies:

 

11

 

Columbia Gateway,
LLC

Dorsey’s Search
Village Center, LLC

Gateway Retail
Center, LLC

GEAPE III, LLC

King’s Contrivance
Village Center, LLC

Oakland Ridge
Commercial Group, LLC

Rouse-River Hill
Village Center, LLC

Columbia
Development, LLC

Fifty Columbia
Corporate Center, LLC

Forty Columbia
Corporate Center, LLC

Sixty Columbia
Corporate Center, LLC

HRD Parking, LLC

Lakefront North
Parking, LLC

Rouse-Phoenix
Hotel, LLC

Columbia Crossing,
LLC

Hickory Ridge
Village Center, LLC

 

GEAPE III, LLC
owns all of the outstanding membership interests of GEAPE Land Holdings, LLC, a
Maryland limited liability company.

 

Columbia
Development, LLC owns all of the outstanding membership interests of each of
the following Maryland limited liability companies:

 

Columbia Mall, LLC

Dobbin Road Commercial,
LLC

Guilford
Industrial Center, LLC

 

Columbia Mall, LLC
owns all of the outstanding membership interests of Hickory Ridge Village
Center, LLC, a Maryland limited liability company and Seventy Columbia
Corporate Center, LLC, a Maryland limited liability company.

 

15.                                 The
Rouse Company of Florida, LLC owns all of the outstanding membership interests
of each of the following entities:

 

Governor’s Square,
LLC, a Florida limited liability company

Howard Retail
Investment Company, LLC, a Maryland limited liability company

New River Center,
LLC, a Florida limited liability company

Rouse-Bayside,
LLC, a Maryland limited liability company

Rouse-Coral
Gables, LLC, a Maryland corporation

Rouse-East
Jacksonville, LLC, a Maryland limited liability company

Rouse-Governor’s
Square, LLC, a Maryland corporation

Rouse-Jacksonville,
LLC, a Delaware limited liability company

Rouse-Miami, LLC,
a Delaware limited liability company

Rouse-Orlando,
LLC, a Delaware limited liability company

 

12

 

Rouse-Tampa, LLC,
a Florida limited liability company.

 

Rouse-Bayside, LLC
owns all the outstanding membership interests of the following Maryland limited
liability companies:  Rouse-Tampa
Acquisition, LLC, Rouse-Tampa Bay, LLC and Rouse-Tampa S Acquisition, LLC.

 

Rouse-Coral
Gables, LLC owns all of the outstanding membership interests of Rouse-Coral
Gables Property, LLC, a Maryland limited liability company.

 

16.                                 The
Rouse Company of Georgia, LLC owns 50% of the outstanding membership interests
of Perimeter Mall Facilities, LLC and Perimeter Mall Venture, LLC, both
Delaware limited liability companies, and all of the outstanding membership
interests of each of the following Maryland limited liability companies:

 

Augusta Mall, LLC

Outlet Square of
Atlanta, LLC

Perimeter Center,
LLC

Perimeter Mall,
LLC

Perimeter Mall
Management Company, LLC

Rouse Columbus
Square, LLC

 

Rouse-Forsyth, LLC

South DeKalb Mall
Management Company, LLC.

 

17.                                 The
Rouse Company of Louisiana, LLC owns all of the outstanding membership
interests of  Rouse-New Orleans, LLC, a
Maryland limited liability company.

 

18.                                 The
Rouse Company of Massachusetts, LLC owns all of the outstanding membership
interests of each of the following limited liability companies:

 

Faneuil Hall
Marketplace, LLC, a Delaware limited liability company

Marketplace
Grasshopper, LLC, a Maryland limited liability company

Rouse-Eastfield,
LLC, a Maryland limited liability company

 

19.                                 The
Rouse Company of Michigan, LLC owns all of the outstanding membership interests
of each of the following Maryland limited liability companies:

 

Rouse Southland,
LLC

Rouse Southland
Management Company, LLC

Southland
Security, LLC

 

Rouse Southland,
LLC owns 10% of the outstanding membership interests of Southland Center Holding,
LLC.

 

13

 

Southland Center
Holding, LLC owns all of the outstanding membership interests of Southland
Center, LLC.

 

20.                                 The
Rouse Company of Minnesota, LLC owns all of the outstanding membership interests
of each of the following Maryland limited liability companies:

 

Ridgedale Shopping
Center, LLC

Rouse-Maple Grove,
LLC

Rouse Ridgedale
Holding, LLC

Rouse Ridgedale
Management Company, LLC.

 

Rouse Ridgedale
Holding, LLC owns all of the outstanding membership interests of Rouse
Ridgedale, LLC, a Delaware limited liability company.

 

21.                                 The
Rouse Company of Nevada, LLC owns 35% of Four State Properties, LLC and all of
the outstanding memberships interest of each of the following entities:

 

10450 West Charleston
Boulevard, LLC, a Nevada limited liability company

Echelon
Acquisition, LLC, a Maryland limited liability company

Echelon Holding
Company, LLC, a Delaware limited liability company

Echelon Mall, LLC,
a Maryland limited liability company

Fashion Show
Construction Management, LLC, a Nevada limited liability company

Harborplace, LLC,
a Maryland limited liability company

One Willow
Company, LLC, a Delaware limited liability company

Paramus Equities,
LLC, a Texas limited liability company

Paramus Park, LLC,
a Maryland limited liability company

Rouse F.S., LLC, a
Maryland limited liability company

Rouse-Fashion
Outlet, LLC, a Maryland limited liability company

Rouse Fashion
Show, LLC, a Nevada limited liability company

Rouse-Las Vegas,
LLC, a Nevada limited liability company

Rouse-Valley Fair,
LLC, a Maryland limited liability company

Rouse-Westdale,
LLC, a Maryland limited liability company

Rouse-Wincopin,
LLC, a Maryland limited liability company

TTC Member, LLC, a
Maryland limited liability company

Two Willow
Company, LLC, a Delaware limited liability company

The Village of
Cross Keys, LLC, a Maryland limited liability company

White Marsh Mall,
LLC, a Maryland limited liability company

Woodbridge Center,
LLC, a Maryland limited liability company.

 

One Willow
Company, LLC owns all of the outstanding membership interests of Three Willow
Company, LLC, a Delaware limited liability company.

 

Three Willow
Company, LLC owns 27.93% of the outstanding membership interests of Franklin
Park Mall, LLC, a Delaware limited liability company.

 

14

 

Franklin Park
Mall, LLC owns all the outstanding membership interests of Weeping Willow RNA,
LLC a Delaware limited liability company

 

Rouse F.S., LLC
owns all of the outstanding common stock of FS Entertainment, Inc., a Nevada
corporation.

 

FS Entertainment,
Inc. owns all of the outstanding membership interests of FS Entertainment, LLC,
a Nevada limited liability company.

 

TTC Member, LLC
owns 1% of the outstanding membership interests of TTC SPE, LLC and .5% of the
outstanding membership interests of Towson TC, LLC.

 

The Village of
Cross Keys, LLC is the sole trustee of Mondawmin Business Trust and VCK
Business Trust, both Maryland business trusts.

 

Mondawmin Business
Trust is the Sole Member of Mondawmin, LLC, a Maryland limited liability
company.

 

Four State
Properties, LLC owns 99% of the outstanding membership interests in TTC SPE,
LLC, a Maryland limited liability company, and owns all of the outstanding
membership interests of each of the following Maryland limited liability
companies:

 

Rouse-Bridgewater
Commons, LLC

Rouse-Fashion
Place, LLC

Rouse-Park Meadows
Holding, LLC

Rouse-Towson Town
Center, LLC

 

Rouse-Bridgewater
Commons, LLC owns all of the outstanding membership interests of Bridgewater
Commons Mall, LLC, a Maryland limited liability company.

 

Bridgewater
Commons Mall, LLC, a Maryland limited liability company, owns all of the
outstanding membership interests of Bridgewater Commons Mall Development, LLC,
a Maryland limited liability company and Bridgewater Commons Mall II, LLC, a
Delaware limited liability company.

 

Rouse-Park Meadows
Holding, LLC owns all of the outstanding membership interests of Rouse-Park
Meadows, LLC, a Maryland limited liability company.

 

Rouse-Towson Town
Center, LLC owns 99.5% of the outstanding membership interests of Towson TC,
LLC, a Maryland limited liability company.

 

Towson TC, LLC
owns all of the outstanding membership interests of Rouse-TTC Funding, LLC, a
Maryland limited liability company.

 

22.                                 The
Rouse Company of New Jersey, LLC owns all of the outstanding membership
interests of each of the following Maryland limited liability companies:

 

15

 

Echelon Urban
Center, LLC

Paramus Mall Management
Company, LLC

Rouse-Burlington,
LLC

The Willowbrook
Company, LLC

Willowbrook
Management Company, LLC.

 

23.                                 The
Rouse Company of New York, LLC owns all of the outstanding membership interests
of the following Maryland limited liability companies:

 

Rouse SI Shopping
Management, LLC

Seaport
Marketplace, LLC

Seaport
Marketplace Theatre, LLC

Seaport Theatre
Management Company, LLC

 

24.                                 The
Rouse Company of Ohio, LLC owns all of the outstanding membership interests of
each of the following entities:

 

Beachwood Place,
LLC, a Maryland limited liability company

Cuyahoga
Development Company, LLC, a Maryland limited liability company

Franklin Park Mall
Company, LLC, a Maryland limited liability company

 

25.                                 The
Rouse Company of Oregon, LLC owns all of the outstanding membership interests
of each of the following Maryland limited liability companies:

 

Rouse Office
Management of Oregon, LLC

Rouse-Portland,
LLC

 

Rouse-Portland,
LLC owns all of the outstanding membership interests of Pioneer Place
Condominium Management, LLC

 

26.                                 The
Rouse Company of Pennsylvania, LLC owns all of the outstanding membership
interests of Whiteland I, LLC and Whiteland II, LLC, both Maryland limited
liability companies.

 

27.                                 The
Rouse Company of Texas, LLC owns all of the outstanding membership interests of
each of the following entities:

 

AU Management
Company, LLC, a Texas limited liability company

Austin Mall, LLC,
a Maryland limited liability company

Collin Creek, LLC,
a Delaware limited liability company

Collin Creek Mall
Management Company, LLC, a Maryland limited liability company

Collin Creek
Plano, LLC, a Delaware limited liability company

North Star Mall,
LLC, a Texas limited liability company

 

16

 

NS Management
Company, LLC, a Texas limited liability company

Rouse Fort Worth,
LLC, a Maryland limited liability company

Rouse-Highland,
LLC, a Delaware limited liability company

Rouse-San Antonio,
LLC, a Maryland limited liability company

Rouse Specialty
Center, LLC, a Maryland limited liability company

Rouse-Southlake,
LLC, a Maryland limited liability company.

 

28.                                 The
Rouse Company of Washington, LLC owns all of the outstanding membership
interests of Rouse-Seattle, LLC, a Delaware LLC.

 

29.                                 The
Rouse Holding Company of Arizona, LLC owns all of the outstanding common stock
or membership interests of each of the following Maryland entities:

 

Rouse-Arizona
Center, LLC, a limited liability company

Rouse Office
Management of Arizona, LLC, a limited liability company

Rouse-Phoenix
Development Company, LLC, a limited liability company

Rouse-Phoenix
Parking, LLC, a limited liability company

Rouse-Phoenix
Parking Two, LLC, a limited liability company

Rouse-Phoenix Two
Corporate Center, LLC, a limited liability company

 

30.                                 Rouse
Missouri Holding Company, LLC owns all of the outstanding membership interests
of The Rouse Company of Missouri, LLC, a Maryland limited liability company.

 

31.                                 Rouse
Oakbrook, LLC owns 50% of the outstanding membership interests of UC Oakbrook
GenPar, LLC, a Delaware limited liability company.

 

32.                                 Rouse-Wates,
LLC (“Rouse-Wates”) and its consolidated subsidiaries are accounted for as a
discontinued operation in the consolidated financial statements.  Rouse-Wates owns all of the outstanding
membership interests of Owen Brown B Development Company, LLC, a Maryland
limited liability company.

 

33.                                 RREF
Holding, LLC owns all of the outstanding membership interests of RII Holding,
LLC, a Texas limited liability company.

 

34.                                 TRCD,
LLC owns all of the outstanding membership interests of the following Delaware
limited liability companies:

 

Austin Mall
Company, LLC

Collin Creek
Property, LLC

The Franklin Park
Company, LLC

Mall St. Matthews
Company, LLC

North Star Mall
Company, LLC

One Franklin Park
Company, LLC

One Gallery
Company, LLC

 

17

 

Rouse Funding
Company, LLC

Rouse Funding Two,
LLC

TRCDE, LLC

TRCDE Two, LLC

TRCDF, LLC

Two Franklin Park
Company, LLC

Two Gallery
Company, LLC

Willowbrook Mall
Company, LLC

 

35.                                 Two
Willow Company, LLC owns 13.97% of the outstanding membership interest in
Franklin Park Mall, LLC, a Delaware limited liability company.

 

Franklin Park
Mall, LLC owns all of the outstanding membership interests of Weeping Willow
RNA, LLC, a Delaware limited liability company

 

18

 

SCHEDULE
6.25

PARTNERSHIPS AND JOINT VENTURES

 

June 30, 2003

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  1.

  	
   

  	
  Airport Cheyenne Venture LLC  (Sole Member:  S-R Nevada Properties LLC)

  	
   

  	
  Approximately 13%

  by HHPLP

  Managed by Stoltz

  	
   

  	
  Delaware

  	
   

  	
  Owner of developed properties in Hughes Airport
  Center and Hughes Cheyenne Center (Las Vegas)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  The A/T Rouse Limited Partnership One Willow
  Company, LLC, Augusta Mall, LLC, Perimeter Center, LLC and Governor’s Square
  Partnership, General Partners; One Willow Company, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Partner of Augusta Mall Partnership (ground lessee
  of Augusta Mall in Augusta, GA); Partner of Tallahassee Associates (ground
  lessee of Governor’s Square in Tallahassee, FL)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Augusta Mall Partnership (The A/T Rouse Limited
  Partnership and Rouse-Columbus Square, LLC, General Partners)

  	
   

  	
  100%

  	
   

  	
  Georgia

  	
   

  	
  Ground Lessee at Augusta Mall in Augusta, GA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Augusta/Tallahassee Associates  (The A/T Rouse Limited Partnership and
  E-II Augusta/Tallahassee, Inc., General Partner

  	
   

  	
  50%

  	
   

  	
  Delaware

  	
   

  	
  Inactive

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Austin Mall Limited Partnership (Austin Mall, LLC,
  General Partner; Austin Mall Company, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Assignee of Income of Austin Mall, LLC, General
  Partner of The Highland Mall Joint Venture

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Baltimore Center Associates Limited Partnership
  (Baltimore Center, LLC, General Partner; RREF Holding, LLC, The Village of
  Cross Keys, LLC and The Howard Research and Development Corporation, Limited
  Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Gallery at Harborplace in Baltimore, MD

  

 

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  7.

  	
   

  	
  Baltimore Center Garage Associates Limited
  Partnership (Baltimore Center, LLC, General Partner;  The Howard Research and Development
  Corporation, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Gallery at Harborplace garage facilities in
  Baltimore, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Bayside Center Limited Partnership (Rouse-Miami,
  LLC, General Partner; Mr. Armando Codina, Mr. Ronald Frazier, Mr. Natan Rok,
  Mr. Garth Reeves, Mr. Ignacio Garcia DuQuesne and Howard Retail Investment
  Corporation, Limited Partners)

  	
   

  	
  83.75%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of Bayside Center in Miami, FL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Bayside Center Marina Limited Partnership (The Rouse
  Company of Florida, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  No current activity

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Beachwood Place Limited Partnership (Beachwood
  Place, LLC, General Partner; Beachwood Property Holdings, LLC and Cuyahoga
  Land Company, LLC, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Ohio

  	
   

  	
  Owner of approximately 100% of property interests in
  Beachwood Place in Beachwood, OH

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Brandywine Square Associates (Jack R. Loew, General
  Partner; Exton Shopping, LLC, Limited Partner)

  	
   

  	
  35%

  	
   

  	
  Pennsylvania

  	
   

  	
  Owner of interest in a yet to be built power center
  in East Caln Township, PA

  

 

2

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  12.

  	
   

  	
  Brandywood Development Limited Partnership
  (Rouse-Brandywood, Inc. and Brandywood Estates, Inc., General Partners)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Owner of development parcel of land in Prince
  George’s County, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Brookside/Columbia Limited Partnership (H.M. George
  LLC, General Partner and Columbia Town Homes Investor, Inc., Limited Partner)

  	
   

  	
  50%

  	
   

  	
  MD

  	
   

  	
  Develop and sell townhouses in Village of Long
  Reach, Columbia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Burlington Associates Limited Partnership
  (Rouse-Burlington, LLC, General Partner; Paramus Park, LLC, The Willowbrook
  Company, LLC and Woodbridge Center, LLC, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Former Ground Lessee at Burlington Center in
  Burlington, NJ  Property transferred
  1999

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Canyon Springs Mall General Partnership
  (Rouse-Canyon Springs, Inc. and Canyon Springs Development Limited
  Partnership, General Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of undeveloped site in Riverside, CA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Canyon Springs Development Limited Partnership
  (Rouse-Canyon Springs, Inc., General Partner and The Rouse Company of
  California, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  General partner of Canyon Springs Mall General
  partnership (#16)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Centerpointe Limited Partnership (Rouse Commercial
  Properties, LLC and Hunt Valley Title Holding Company, LLC, General Partners;
  Rouse Commercial Properties, LLC, 

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Centerpointe

  

 

3

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Limited Partner)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Centerpoint Plaza Co., a general partnership (Howard
  Hughes Properties, Inc. and Centerpoint Management, LLC, Partners)

  	
   

  	
  50%

  	
   

  	
  Nevada

  	
   

  	
  Develop a neighborhood retail shopping center in
  Summerlin

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Christiana Acquisition LLC (Christiana Holdings I
  (50%) and Christiana Holdings II (50%)

  	
   

  	
  50%

  	
   

  	
  Delaware

  	
   

  	
  Owner of Christiana Mall LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Collin Creek Mall, L.P. (Collin Creek, LLC, General
  Partner; Collin Creek Property, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Texas

  	
   

  	
  Owner of Collin Creek Mall in Plano, TX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  DTA Acquisition LLC 
  (Rouse Westin, Inc. and Simon THS, Inc., Managing Members)

  	
   

  	
  48.1167%

  	
   

  	
  Delaware

  	
   

  	
  Acquire RNA-NY, LLC’s interest in Westin Hotel
  (Dream Team Hotel Associates, LLC)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Echelon Mall Joint Venture (Echelon Mall, LLC and
  Echelon Holding Company, LLC, General Partners)

  	
   

  	
  100%

  	
   

  	
  New Jersey

  	
   

  	
  Owner of Echelon Mall in Voorhees, NJ

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  FBC&G Limited Partnership (Harbor Overlook
  Limited Partnership and FRASKOP Associates, General Partners; Frank,
  Bernstein, Conaway & Goldman, Limited Partner)

  	
   

  	
  55%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of 300 East Lombard Street (office
  building) in Baltimore, MD  As of
  1/15/99, no longer involved in the property.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Four Owings Mills Corporate Center Associates
  Limited Partnership (Four Owings Mills Corporate Center, LLC, General
  Partner;

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  General Partner of Four Owings Mills Corporate
  Center Land Limited Partnership

  

 

4

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  O.M. Land Development, LLC, Rouse Office Management,
  LLC and Blue Cross and Blue Shield of Maryland, Limited Partners)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (ground lessor) in Owings Mills, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  Four Owings Mills Corporate Center Land Limited
  Partnership (Four Owings Mills Corporate Center Associates Limited Partnership,
  General Partner; Rouse Office Management, LLC, Limited Partner)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessor of Four Owings Mills Office Building
  in Owings Mills, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Four State Properties, LLC (The Rouse Company of
  Nevada, LLC, Member (35%); Fourmall Acquisition, LLC, Member (65%))

  	
   

  	
  35%

  	
   

  	
  Delaware

  	
   

  	
  Owns 100% interest in Towson Town Center,
  Bridgewater Commons, Park Meadows and Fashion Place

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Franklin Park Mall, LLC (formerly Franklin Park Mall
  Limited Partnership)  (Members:  Willowbrook II, LLC (1.16%); Franklin Park
  Mall Company, LLC (56.94%); Two Willow Company, LLC (13.97%); Three Willow
  Company, LLC (27.93%)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  Gallery Hotel Limited Partnership (Inner Harbor
  Hotel Corporation, General Partner; Baltimore Center Associates Limited
  Partnership [Class A] and Inner Harbor Investment Partners Limited
  Partnership [Class B], Limited Partners)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of Hotel Gallery at Harborplace in
  Baltimore, MD (Rouse has minor interest)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  Governor’s Square Partnership (Governor’s Square,
  LLC and New River Center, LLC, General Partners)

  	
   

  	
  100%

  	
   

  	
  Florida

  	
   

  	
  Partner of A/T Rouse Limited Partnership, which is
  Partner of Tallahassee Associates (ground lessee of Governor’s Square in
  Tallahassee, FL)

  

 

5

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  30.

  	
   

  	
  Grand Avenue Limited Partnership (Rouse-Milwaukee,
  LLC, General Partner; RII Holding, LLC, Plymouth Meeting Property LLC and
  Rouse Holding Company of Texas, LLC, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee at The Grand Avenue in Milwaukee, WI
  (held by Rouse-Milwaukee, LLC as Nominee) 
  (No longer involved in property as of 11/1/2000)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  Hammond Branch Joint Venture (Stansfield-Laurel,
  Inc. and Retail/Institutional Joint Venture, General Partners)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Owner of development parcel in Laurel, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
  Harbor Development Services Partnership
  (Rouse-Columbus, LLC, Managing General Partner; Bacon & Company, Inc.,
  The Henson Company, Inc. and Savannah Development Corporation, General
  Partners)

  	
   

  	
  85%

  	
   

  	
  Maryland

  	
   

  	
  Development/Management entity for Christopher
  Columbus Center in Baltimore, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  Harbor Overlook Limited Partnership (Harbor Overlook
  Investments, Inc., General Partner; Rouse-Commerce, Inc. and The Howard
  Research and Development Corporation, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  General Partner of former Ground Lessee in 300 East
  Lombard Street (office building) in Baltimore, MD  (No longer active)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  Harbor Place Associates Limited Partnership
  (Harborplace, LLC, General Partner; Paramus Park Shopping Center Limited
  Partnership  RREF Holding, LLC,
  Limited Partners and 

  	
   

  	
  100%

  (1% in PSS)

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee at Harborplace in Baltimore, MD

  

 

6

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Rouse Property Management, Inc.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  Head Acquisition, L.P.

  (Rouse-Urban, LLC; Growth Head GP, LLC and SPG Head GP, LLC,  General Partners.  Westfield Growth LP, SPG Head LP, LLC,
  Rouse-Urban Acquisition, LLC and Hexalon Real Estate, Inc., Limited Partners)

  	
   

  	
  27%

  	
   

  	
  Delaware

  	
   

  	
  Head Acquisition owns General Partnership interest
  in Urban Shopping Centers, LP (Head Acquisition Partnership Agreement
  provides that Rouse entities have 100% of the benefits and burdens of Head
  Acquisition in Oak Brook Center, Oak Brook, IL, Water Tower Place, Chicago,
  IL and Streets at South Point, Durham, NC, plus 27% of the Head Acquisition
  interest in River Ridge, Lynchburg, VA, South Square Mall, Durham, NC and RoPro
  TRS, Inc. and 20% of Saw Mill Plaza, Columbus, OH and Urban Retail Properties
  Co.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
  Hickory Grove Limited Partnership (H.M. George LLC,
  General Partner and Hickory Heights Investor, Inc., Limited Partner)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Develop and sell single family homes in Hickory
  Heights, Columbia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  The Highland Mall Joint Venture (CPI-Highland
  Associates Limited Partnership and Austin Mall, LLC, General Partners)

  	
   

  	
  50%

  	
   

  	
  New York

  	
   

  	
  99% Limited Partner of Highland Mall Limited
  Partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
  Highland Mall Limited Partnership (Rouse-Highland,
  LLC and CPI_Highland Associates Limited Partnership, General Partners)

  	
   

  	
  50%

  	
   

  	
  Delaware

  	
   

  	
  Ground Lessee at Highland Mall in Austin, TX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
  HMF Properties Limited Partnership (Rouse Fort
  Worth, LLC, General Partner [1%]); 
  The Rouse Company of Nevada, LLC, Limited 

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Owner of the United Artists property at Hulen Mall

  

 

7

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Partner [99%])

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
  Hotel Columbia Company (The Howard Research and
  Development Holdings Corporation, and Columbia Mall, Inc., General Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of The Columbia Inn in Columbia, MD

  Sold – 1998

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
  H-N-W Associates, L.P. (Rouse-Westdale, LLC, General
  Partner; Individuals, Limited Partners)

  	
   

  	
  58.1%

  	
   

  	
  Iowa

  	
   

  	
  General Partner of Westdale Associates, Owner of a
  portion of Westdale Mall; Ground Lessee of remaining portion

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42.

  	
   

  	
  Hulen Mall Limited Partnership  (Rouse Fort Worth, LLC, General Partner
  and Hulen, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Partner in Hulen Mall Joint Venture

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
  Hulen Mall Joint Venture (Hulen Mall Limited
  Partnership (99.5%) and The Rouse Company of Texas, LLC, (.5%) General
  Partners)

  	
   

  	
  100%

  	
   

  	
  Texas

  	
   

  	
  Owner of Hulen Mall at Fort Worth, TX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44.

  	
   

  	
  Hunt Valley 75 Limited Partnership (Rouse Commercial
  Properties, LLC and Hunt Valley Title Holding Company, LLC, General Partners;
  Rouse Commercial Properties, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of One Hunt Valley (Bldg. 75)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45.

  	
   

  	
  Kendall Ridge Limited Partnership (H. M. George,
  LLC, General Partner; Columbia Town Homes Investor, Inc., Limited Partner)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Development entity for town homes in Long Reach
  Village Center in Columbia, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46.

  	
   

  	
  LaCantera Retail Limited Partnership (Rouse-

  	
   

  	
  75%

  	
   

  	
  Texas

  	
   

  	
  To be owner and developer of land in San Antonio,
  Texas

  

 

8

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  San Antonio, LLC, General Partner; LaCantera
  Development Company, Limited Partner

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47.

  	
   

  	
  Mall St. Matthews Limited Partnership (Louisville
  Shopping Center, LLC, General Partner; Mall St. Matthews Company, LLC,
  Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Ground Lessee at Mall St. Matthews in Louisville, KY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48.

  	
   

  	
  Market Street East Joint Venture (Rouse Salem
  Centre, Inc. and Beverly Business Trust, General Partners)

  	
   

  	
  50%

  	
   

  	
  Pennsylvania

  	
   

  	
  Former Ground Lessee at The Gallery at Market East
  in Philadelphia, PA (Inactive)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49.

  	
   

  	
  Merrick Park LLC 
  (Rouse-Coral Gables, LLC, Merrick Park Member LLC and CG Merrick LLC –
  Co-Members)

  	
   

  	
  40%

  	
   

  	
  Maryland

  	
   

  	
  Owner of The Village of Merrick Park, Coral Gables,
  FL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50.

  	
   

  	
  Merrick Park Parking LLC  (Members:  Merrick Park
  Miscellaneous Income LLC (30%-Morgan); CG Merrick Park LL (30%-Cigna);
  Rouse-Coral Gables, LLC (40%)

  	
   

  	
  40%

  	
   

  	
  Delaware

  	
   

  	
  Operate parking facilities at Merrick Park

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51.

  	
   

  	
  New Orleans Riverwalk Associates  (New Orleans Riverwalk Limited Partnership
  and Rouse-New Orleans, Inc., General Partners)

  	
   

  	
  100%

  	
   

  	
  Louisiana

  	
   

  	
  Ground Lessee of Riverwalk in New Orleans, LA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52.

  	
   

  	
  New Orleans Riverwalk Limited Partnership (Rouse-New
  Orleans, LLC, General Partner; Greengate Mall, Inc., Gallery at Market East 

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  General partner of New Orleans Riverwalk Associates
  (#49)

  

 

9

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  LLC, The American City Company, LLC and Plymouth
  Meeting Property LLC, Limited Partners)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53.

  	
   

  	
  The North Star Mall Joint Venture (HRE-NS, LLC and
  NSMJV LP, General Partners)

  	
   

  	
  100%

  	
   

  	
  New York

  	
   

  	
  Owns North Star Mall

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  54.

  	
   

  	
  NS Mall L.P. (North Star Mall II, LLC, General
  Partner and North Star Mall, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Owner of entities that own the owner of North Star
  Mall in San Antonio, TX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55.

  	
   

  	
  North Star Mall Limited Partnership (North Star Mall,
  LLC, General Partner; North Star Mall Company, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Assignee of income of North Star Mall, LLC San
  Antonio, TX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56.

  	
   

  	
  Northwest Associates (Rouse-Metro Shopping Center,
  LLC, WANA I, LLC, WANA II, LLC and Caselmar Limited Partnership, General
  Partners)

  	
   

  	
  65-2/3%*

  *plus add’l sub-interest (see file)

  	
   

  	
  Maryland

  	
   

  	
  Owner of Metro Plaza in Baltimore, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57.

  	
   

  	
  The Northwest Mall Joint Venture (Rouse-Northwest,
  Inc. and Northwest Mall, Inc., General Partners)

  	
   

  	
  100%

  	
   

  	
  New York

  	
   

  	
  Owner of Northwest Mall in Houston, TX  Sold – October 1, 1997

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58.

  	
   

  	
  Oak Brook Urban Venture, L.P. (UC Oakbrook Gen Par,
  LLC, General Partner, State of California Public Employees Retirement System,
  and Urban Shopping Centers, L.P. [Rouse-Urban, LLC], Limited Partners)

  	
   

  	
  (50.51%)

  	
   

  	
  Illinois

  	
   

  	
  Owner of Oakbrook Shipping Centers

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59.

  	
   

  	
  Oakwood Shopping Center Limited Partnership (a
  Louisiana partnership in 

  	
   

  	
  100%

  	
   

  	
  Louisiana

  	
   

  	
  Owner of Oakwood Center in Gretna, LA

  

 

10

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  commendam) (Rouse-Oakwood Shopping Center, LLC,
  General Partner; The Willowbrook Company, LLC, Woodbridge Center, LLC and
  Rouse-Oakwood Two, LLC, Limited Partners)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  60.

  	
   

  	
  O. M. Investment Limited Partnership (RREF Holding,
  LLC, General Partner; Paramus Park, LLC, RII Holding, LLC, The Willowbrook
  Company, LLC and Woodbridge Center, LLC, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Limited partner of Owings Mills Limited Partnership
  (owner) in Owings Mills, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  61.

  	
   

  	
  O. M. Investment II Limited  Partnership (O. M. Mall Corporation,
  General Partner; and Plymouth Meeting Property LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Limited partner of Owings Mills Limited Partnership
  (owner) in Owings Mills, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  62.

  	
   

  	
  One Owings Mills Corporate Center Associates Limited
  Partnership (One Owings Mills Corporate Center, LLC, General Partner;
  Alexander & Alexander, Inc. and O. M. Land Development, Inc., Limited
  Partners)

  	
   

  	
  65%

  	
   

  	
  Maryland

  	
   

  	
  Owner of One Owings Mills Corporate Center (office
  building) in Owings Mills, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  63.

  	
   

  	
  Owings Mills Limited Partnership (The Rouse Company
  at Owings Mills, General Partner; O.M. Investment II Limited Partnership and
  O. M. Investment Limited Partnership, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Owings Mills Mall in Owings Mills, MD

  

 

11

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  64.

  	
   

  	
  Paramus Park Shopping Center Limited Partnership
  (Paramus Park, LLC, General Partner; and Paramus Equities, LLC, Limited
  Partners.  Cigna Real Estate, Inc.,
  residual interest only)

  	
   

  	
  100%

  	
   

  	
  New Jersey

  	
   

  	
  Owner of Paramus Park Shopping Center in Paramus, NJ

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  65.

  	
   

  	
  Park Square Limited Partnership (Sixty Columbia
  Corporate Center, Inc., General Partner (1%); The Howard Research and
  Development Holdings Corporation, Limited Partner (99%))

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of 60 Columbia Corporate Center, Columbia,MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  66.

  	
   

  	
  Parkside Limited Partnership (Fifty Columbia
  Corporate Center, Inc., General Partner; Columbia Mall, Inc., Limited
  Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Parkside Office Building in Columbia, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  67.

  	
   

  	
  Parkview Office Building Limited Partnership (Forty
  Columbia Corporate Center, Inc., General Partner; Columbia Mall, Inc.,
  Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of ParkView Office Building in Columbia, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  68.

  	
   

  	
  Perimeter Mall Facilities, LLC

  (The Rouse Company of Georgia, LLC (50%); Perimeter Mall Acquisition
  Investor, Inc. (50%)

  	
   

  	
  50%

  	
   

  	
  Delaware

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  69.

  	
   

  	
  Perimeter Mall Venture, LLC

  (The Rouse Company of Georgia, LLC (50% - Managing Member; Perimeter Mall
  Acquisition LLC (50% - JP Morgan)

  	
   

  	
  50%

  	
   

  	
  Delaware

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  70.

  	
   

  	
  Pioneer Office Limited Partnership (Rouse-Portland,
  LLC, General Partner; Eastfield 

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of Pioneer Place Office Building in
  Portland, OR

  

 

12

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Mall, Incorporated, The Willowbrook Company, LLC and
  Woodbridge Center, LLC, Limited Partners)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  71.

  	
   

  	
  Pioneer Place Limited Partnership (Rouse-Portland,
  LLC, General Partner; Eastfield Mall, Incorporated, The Willowbrook Company,
  LLC and Woodbridge Center, LLC, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Pioneer Place in Portland, OR

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  72.

  	
   

  	
  Planole Store, LP 
  (Collin Creek Plano, LLC, General Partner (1%) and Collin Creek
  Property, LLC, Limited Partner (99%))

  	
   

  	
  100%

  	
   

  	
  Texas

  	
   

  	
  Owner of Dillard’s Parcel at Collin Creek Mall

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  73.

  	
   

  	
  Reserve Site Joint Venture (CPS Department Stores,
  Inc., The Northwestern Mutual Life Insurance Company, Milwaukee Redevelopment
  Corporation and Rouse-Milwaukee, LLC, General Partners)

  	
   

  	
  29.79%

  	
   

  	
  Wisconsin

  	
   

  	
  Holds an undeveloped parcel of land in Milwaukee,
  WI  Sold - 1998

  (In process of being liquidated)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  74.

  	
   

  	
  Retail Growth Systems, LLC (The Rouse Company, F.C.
  Associates, LLC, General Growth Management, Inc., Innovative Promotions, LLC,
  JG Mall Card LLC, M.S. Management Associates, Inc., O’Connor Associates, L.P.
  and Trizechahn Group, Members)

  	
   

  	
  3.6%

  	
   

  	
  Delaware

  	
   

  	
  Alliance of retail property owners to promote credit
  card program.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75.

  	
   

  	
  Riderwood Limited Partnership (H.M.

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  To develop, construct and sell townhouses

  

 

13

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  George, LLC, General Partner; Gateway Investor, LLC,
  Limited Partner)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  in the Gateway Residential area of Columbia

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  76.

  	
   

  	
  Ridgedale Center, LLC (converted from Ridgedale
  Joint Venture) (Members:  Rouse
  Ridgedale, LLC, and YEW Acquisitions, LLC)

  	
   

  	
  10%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Ridgedale Center in Minnetonka, MN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  77.

  	
   

  	
  River Hill Village Center II, LLC  (Members: 
  Rouse-River Hill Village Center, Inc.(59.9%) and Giant of Maryland,
  LLC (40.1%)

  	
   

  	
  59.9%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Parcel W in River Hill, Columbia, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  78.

  	
   

  	
  Riverspark Associates Limited Partnership (Rouse
  Commercial Properties, LLC and Hunt Valley Title Holding Company, LLC,
  General Partners; Rouse Commercial Properties, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Riverspark II, Buildings I, II, III

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  79.

  	
   

  	
  Roland Green Limited Partnership (H.M. George LLC,
  General Partner and RG Investor, Inc., Limited Partner)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Develop and sell townhouses in the Village of Cross
  Keys in Baltimore, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  80.

  	
   

  	
  Rouse-Arizona Retail Center Limited Partnership
  (Rouse-Arizona Center, LLC, General Partner; The Howard Research and
  Development Corporation, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of retail portion of Arizona Center in
  Phoenix, AZ

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  81.

  	
   

  	
  Rouse Columbia Contribution, LLC

  

  (Members:  Columbia Crossing, Inc.
  (.06%); Columbia Mall, Inc. (82.04%); Dobbin Road 

  	
   

  	
   

  	
   

  	
  Maryland

  	
   

  	
  Disposition of Columbia Village Centers

  

 

14

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Commercial, Inc. (4.6%); Dorsey’s Search Village
  Center, Inc. (.07%); Gateway Retail Center, Inc. (.02%)Hickory Ridge Village
  Center, Inc. (1.26%); King’s Contrivance Village Center, Inc. (.13%);
  Rouse-Metro Shopping Center, Inc. (6.89%) Rouse-River Hill Village Center,
  Inc. (1.70%); The Howard Research and Development Holdings Corporation
  (3.23%)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  82.

  	
   

  	
  The Rouse Company LP

  

  (TRCGP, Inc., General Partner; The Rouse Company Business Trust,  Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  UPREIT Operating Partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  83.

  	
   

  	
  Rouse-Fairwood Development Limited Partnership
  (Rouse-Fairwood Development Corporation, General Partner; Rouse Holding
  Limited Partnership, Rouse Investment Limited Partnership, BDR Properties,
  Inc., DeClarimont Limited Partnership, Bowie Limited Partnership and EBR
  Family Limited Partnership, Limited Partners)

  	
   

  	
  1.44%

  	
   

  	
  Maryland

  	
   

  	
  Owner of development parcel in Prince George’s
  County, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  84.

  	
   

  	
  Rouse Holding Limited Partnership (Rouse-Fairwood
  Development Corporation, General Partner; The Howard Research and Development
  Corporation and Rouse-Fairwood Development Corporation, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Limited partner of Rouse-Fairwood Development
  Limited Partnership (#64)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85.

  	
   

  	
  Rouse-Houston, LP 
  

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  To acquire, develop and sell land in West

  

 

15

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  (HRD TRS) (1% Rouse-Houston GP, LLC; 99%
  Rouse-Houston LP, LLC)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Houston

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  86.

  	
   

  	
  Rouse Investment Limited Partnership (Rouse-Fairwood
  Development Corporation, General Partner; The Howard Research and Development
  Corporation and Rouse-Fairwood Development Corporation, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Limited partner of Rouse-Fairwood Development
  Limited Partnership (#64)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  87.

  	
   

  	
  Rouse-Phoenix Corporate Center Limited Partnership
  (Rouse Office Management of Arizona, LLC, Rouse-Phoenix Parking, LLC and
  Rouse-Phoenix Two Corporate Center, LLC, General Partners; Rouse-Eastfield,
  LLC, The Willowbrook Company, LLC and Woodbridge Center, LLC Limited
  Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of One Arizona Center (office
  building), Two Arizona Center (office building) and the Parking Deck in
  Phoenix, AZ

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  88.

  	
   

  	
  Rouse-Phoenix Master Limited Partnership
  (Rouse-Phoenix Development Company, LLC, General Partner; The Howard Research
  and Development Corporation, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of undeveloped parcels at Arizona
  Center in Phoenix, AZ

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  89.

  	
   

  	
  Rouse-Phoenix Theatre Limited Partnership (Rouse-Phoenix
  Cinema, LLC, General Partner; Plymouth Meeting Property LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of the theatre parcel in Arizona
  Center

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90.

  	
   

  	
  Rouse-Westlake Limited Partnership (Rouse-Seattle,
  LLC, General Partner; Eastfield Mall, 

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  General partner of Westlake Center Associates
  Limited Partnership (Owner) in

  

 

16

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Incorporated, The Howard Research and Development
  Corporation, One Willow Company, LLC, Two Willow Company, LLC, Limited
  Partners)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Seattle, WA (#89)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  91.

  	
   

  	
  Rouse-Westlake Limited Partnership II
  (Rouse-Seattle, LLC, General Partner; Beachwood Place, LLC and Salem Mall,
  Incorporated, Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  General partner of Westlake Center Associates
  Limited Partnership (Owner) in Seattle, WA (#89)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  92.

  	
   

  	
  Rutherford 2 Limited Partnership (Rouse Commercial
  Properties, LLC and Hunt Valley Title Holding Company, LLC, General Partners;
  Rouse Commercial Properties, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Parkview Center 1, 2, 3, 4

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  93.

  	
   

  	
  RV Joint Venture (HRD Remainder, Inc. and The Viera
  Company, Venturers)

  	
   

  	
  50%

  	
   

  	
  Florida

  	
   

  	
  Owner of out parcel in Orlando, FL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  94.

  	
   

  	
  Santa Monica Place Associates (Santa Monica Place,
  Ltd., General Partner)

  	
   

  	
  100%

  	
   

  	
  California

  	
   

  	
  Owner of Santa Monica Place in Santa Monica, CA

  Sold October 30, 1999

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  95.

  	
   

  	
  Santa Monica Place, Ltd. (The Rouse Company of
  California, LLC, General Partner)

  	
   

  	
  100%

  	
   

  	
  California

  	
   

  	
  General partner of Santa Monica Place Associates

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  96.

  	
   

  	
  Seventy Columbia Corporate Center Limited
  Partnership (Seventy Columbia Corporate Center, Inc., General Partner; and
  Columbia

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Seventy Columbia Center Building (office
  building) in Columbia, MD

  

 

17

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Mall, Inc., Limited Partner)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  97.

  	
   

  	
  South Street Seaport Limited Partnership (Seaport
  Marketplace, LLC, General Partner; Echelon Mall, LLC, Paramus Park, LLC, RREF
  Holding, LLC, The Willowbrook Company, LLC and Woodbridge Center, LLC,
  Limited Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of South Street Seaport in New York,
  NY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  98.

  	
   

  	
  Southland Center Holding, LLC (Members:  Rouse Southland, LLC and Privet
  Acquisitions, LLC)

  	
   

  	
  10%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Southland Center in Taylor, MI

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99.

  	
   

  	
  S-R Nevada Properties LLC  Members: Howard Hughes 
  Properties, Limited Partnership 
  (12.902%) & Stohud Partners LP 
  (87.098%)

  	
   

  	
  Approximately 13%  Managed by Stoltz

  	
   

  	
  Delaware

  	
   

  	
  Ownership of Airport-Cheyenne Venture LLC and
  Summerlin Center LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  100.

  	
   

  	
  Summerlin Centre, LLC  Sole Member:  S-R Nevada
  Properties LLC

  	
   

  	
  Approximately 13% 
  Managed by HHPLP

  	
   

  	
  Delaware

  	
   

  	
  Owner of 110 acre site of future Summerlin Mall

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  101.

  	
   

  	
  Swift Creek Joint Venture (Retail/Institutional
  Joint Venture and Rouse-Richmond, LLC, General Partners)

  	
   

  	
  25%

  	
   

  	
  Virginia

  	
   

  	
  Owner of development parcel in Richmond, VA  SOLD – 3/99

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  102.

  	
   

  	
  Tallahassee Associates (The A/T Rouse Limited
  Partnership, Rouse-Governor’s Square, LLC, General Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of Governor’s Square in Tallahassee,
  FL

  

 

18

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  103.

  	
   

  	
  Tampa Northwest, Ltd. (Rouse-Tampa, LLC, General
  Partner; Ernest DiFabrizio, Dina Parrino, Rose DiFabrizio, Kenneth Henriquez,
  Steven Gary Henriquez, Wayne Ernest Henriquez, David Joseph Parrino,
  Christine Anne Marsuno, Paul Daniel Parrino, James Dominick Parrino, Gerald
  Ernest DiFabrizio, Carolyn Ann DiFabrizio, Henriquez Family Joint Revocable
  Living Trust, Dina D. Parrino Revocable Trust, Joseph P. Parrino Revocable
  Trust and Ernest DiFabrizio and First Florida Bank, N.A. as trustees of the
  Rose S. DiFabrizio Marital Trust No. 1 under the Last Will and Testament of
  Domenico DiFabrizio, Deceased, Limited Partners)

  	
   

  	
  66.67%

  	
   

  	
  Florida

  	
   

  	
  Owner of Tampa Bay Center in Tampa, FL

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  104.

  	
   

  	
  Three Owings Mills Corporate Center Associates
  Limited Partnership (Three Owings Mills Corporate Center, LLC, General
  Partner; O. M. Land Development, LLC, Rouse Office Management, LLC and Blue
  Cross and Blue Shield of Maryland, Limited Partners)

  	
   

  	
  50%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee of Three Owings Mills Corporate Center
  Land Limtied Partnership in Owings Mills, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  105.

  	
   

  	
  Three Owings Mills Corporate Center Land Limited
  Partnership (Three Owings Mills Corporate Center Associates Limited
  Partnership, General Partner; Rouse Office Management, LLC, Limited Partner)

  	
   

  	
  50.1%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessor of Three Owings Mills Corporate Center
  (office building) in Owings Mills, MD

  

 

19

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  106.

  	
   

  	
  Triangle Business Center I Limited Partnership
  (Rouse Commercial Properties, LLC and Hunt Valley Title Holding Company, LLC,
  General Partners; Rouse Commercial Properties, LLC Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Triangle Building 1, 2, 3, 4

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  107.

  	
   

  	
  Tristate Joint Venture (AIC Properties, Inc. and
  Rouse Tristate Venture, LLC, General Partners)

  	
   

  	
  5%

  	
   

  	
  Maryland

  	
   

  	
  Owner of College Square in Cedar Falls, IA; North
  Grand Mall in Ames, IA; Marshall Town Center in Marshalltown, IA; Westland
  Mall in West Burlington, IA; Muscatine Mall in Muscatine, IA; Northwest
  Arkansas Mall in Fayetteville, AK; and Salem Centre in Salem, OR  Sold – 1998

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  108.

  	
   

  	
  Two Owings Mills Corporate Center Associates Limited
  Partnership (Two Owings Mills Corporate Center, LLC, General Partner;
  Alexander and Alexander, Inc. and O. M. Land Development, LLC, Limited
  Partners)

  	
   

  	
  55%

  	
   

  	
  Maryland

  	
   

  	
  Owner of Two Owings Mills Corporate Center (office
  building) in Owings Mills, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  109.

  	
   

  	
  201 International Associates Limited Partnership
  (Rouse Commercial Properties, LLC and Hunt Valley Title Holding Company, LLC,
  General Partners; Rouse Commercial Properties, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of 201 International Circle

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  110.

  	
   

  	
  UC Oakbrook GenPar, LLC (Rouse Oakbrook, LLC,
  Managing Member; State of California Public Employees’ 

  	
   

  	
  50%

  	
   

  	
  Delaware

  	
   

  	
  Owner of Oakbrook Mall in Oakbrook, Illinois

  

 

20

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  Retirement System, Member)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  111.

  	
   

  	
  Urban Shopping Centers, L.P.  (Head Acquisition, L.P., General Partner)

  	
   

  	
  26%

  	
   

  	
  Illinois

  	
   

  	
  Urban Shopping Centers, LP has ownership interests
  in numerous shopping centers.  See
  Description for Head Acquisition, LP for description of Rouse entities’
  interests.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  112.

  	
   

  	
  Westdale Associates (Rouse-Westdale, LLC, managing
  General Partner; H-N-W Associates, L.P., General Partner

  	
   

  	
  85%

  	
   

  	
  Illinois

  	
   

  	
  Ground Lessee of Westdale Mall

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  113.

  	
   

  	
  Westlake Center Associates Limited Partnership
  (Rouse-Westlake Limited Partnership and Rouse-Westlake Limited Partnership
  II, General Partners; Baltimore Center, LLC, Westlake 7 Building Partners
  Limited Partnership and Koehler, McFadyen & Company, Limited Partners)

  	
   

  	
  99%

  	
   

  	
  Washington

  	
   

  	
  Owner of Westlake Center in Seattle, WA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  114.

  	
   

  	
  Whiteland Holding Limited Partnership (Whiteland I,
  LLC, General Partner; Whiteland II, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Ground Lessee at Exton K-Mart Center, PA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  115.

  	
   

  	
  White Marsh General Partnership (White Marsh Mall
  Associates and White Marsh Phase II Associates, General Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Partners own White Marsh Mall  Owner of former Woodward & Lothrop
  building at White Marsh Mall in Baltimore, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  116.

  	
   

  	
  White Marsh Limited Partnership (White Marsh Mall,
  LLC, General Partner; RII Holding, LLC, Limited Partner)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  General partner of White Marsh Mall Associates and
  White Marsh Phase II Associates in Baltimore, MD

  

 

21

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC Subsidiaries

  and Affiliates

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  117.

  	
   

  	
  White Marsh Mall Associates (White Marsh Limited
  Partnership and GEAPE III, Inc., General Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of White Marsh in Baltimore, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  118.

  	
   

  	
  White Marsh Phase II Associates (White Marsh Limited
  Partnership and GEAPE II, Inc., General Partners)

  	
   

  	
  100%

  	
   

  	
  Maryland

  	
   

  	
  Owner of White Marsh in Baltimore, MD

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  119.

  	
   

  	
  Willowbrook Mall, LLC (converted from Willowbrook
  Mall Limited Partnership) (Members: 
  Weeping Willow RNA LLC (62.5%), TRC Willow LLC (36.5%) and Willow SPE
  LLC (1% - Managing Member)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Owner of Willowbrook in Wayne, NJ

  

 

Individual joint venture partners or partners are only covered to the
extent of their activities in the joint venture or partnership.  This limitation does not apply to wholly
owned Rouse Company subsidiaries or affiliates.

 

22

 

PARTNERSHIPS AND JOINT
VENTURES 

ACQUIRED IN THE HUGHES TRANSACTION

 

December 31, 2001

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC

  Subsidiaries 

  and Affiliates

  	
   

  	
  Jurisdiction of 

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Howard Hughes Properties, Limited Partnership (term
  12/83 - 12/33).  The Howard Hughes
  Corporation, general partner and limited partner (95%); The Hughes
  Corporation, limited partner (3%); HHC LP Corp. (2%)

  	
   

  	
  100%

  	
   

  	
  Delaware

  	
   

  	
  Management and development of real estate; owner of
  75% interest in Fashion Show Mall with Rouse F. S., LLC owning remaining 25%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  HHP Government Services, Limited Partnership (term
  8/91 - 12/38).  Summerlin Corporation,
  general partner (1%); Howard Hughes Properties, Limited Partnership, limited
  partner (99%)

  	
   

  	
  100%

  	
   

  	
  Nevada

  	
   

  	
  Owns the Raytheon (now DOE) building in Summerlin,
  located at 1551 Hillshire Drive, Las Vegas, NV

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  HHPLP-II, Limited Partnership (term 9/90 -
  12/38).  HHP-California Corporation,
  general partner (1%); Howard Hughes Properties, Limited Partnership, limited
  partner (99%)

  	
   

  	
  100%

  	
   

  	
  Nevada

  	
   

  	
  Limited partner in Maguire Partners – Playa Vista
  Area C

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Maguire Partners – Playa Vista Area C (term 9/90 –
  12/47).  Maguire Partners Promote, LP,
  

  	
   

  	
  47%

  	
   

  	
  California

  	
   

  	
  Playa Vista Area C

  

 

23

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC

  Subsidiaries 

  and Affiliates

  	
   

  	
  Jurisdiction of 

  Organization

  	
   

  	
  Description of Primary Activity

  
	
   

  	
   

  	
  general partner and limited partner (47%); HHPLP-II,
  Limited Partnership, limited partner (47%); JMB/Playa Vista Area C Limited
  Partnership, limited partner (6%)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Maguire Partners 
  Playa Vista (term 2/89 – 12/47), Maguire  Partners – PV Promote, L.P., general partner and limited
  partner (47%); Howard Hughes Properties, Limited Partnership, limited partner
  (47%); JMB/Playa Vista Limited Partnership, limited partner (6%)

  	
   

  	
  47%

  	
   

  	
  California

  	
   

  	
  Playa Vista

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  3770 Hughes Parkway Associates, Limited Partnership
  (term 7/90 - 6/20), Howard Hughes Properties, Limited Partnership, general
  partner (67%); Gibson Business Park Associates 1986 - 1, limited
  partner (33%)

  	
   

  	
  100%

  	
   

  	
  Nevada

  	
   

  	
  Owns the office building located at 3770 Howard
  Hughes Parkway, Las Vegas, NV

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  3930 Building Partnership (term 6/94 - 6/44), Howard
  Hughes Properties, Limited Partnership (50%); Hilton Hotels Corporation (50%)

  	
   

  	
  100%

  	
   

  	
  Nevada

  	
   

  	
  Owns the office building located at 3930 Howard
  Hughes Parkway, Las Vegas, NV

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Trails Village Center Company (term 10/96 - 12/2030)
  HHPLP (50%); Investment Properties II, LLC (50%), general partnership

  	
   

  	
  50%

  	
   

  	
  Nevada

  	
   

  	
  Retail shopping center

  

 

24

 

	
  Name and
  Partners/Co-Venturers

  	
   

  	
  Percent Ownership

  by TRC

  Subsidiaries 

  and Affiliates

  	
   

  	
  Jurisdiction of 

  Organization

  	
   

  	
  Description of Primary Activity

  
	
  9.

  	
   

  	
  Lake Mead and Buffalo Partnership (term 10/96-
  12/2030) HHPLP (50%),Investment Properties II, LLC (50%), general partnership

  	
   

  	
  50%

  	
   

  	
  Nevada

  	
   

  	
  Retail shopping center

  
									

 

25

 

SCHEDULE 6.26

 

UNENCUMBERED ASSET
GUARANTORS

 

Hulen Mall

 

Owings Mills Mall

 

Lakeside Mall

 

2

 

SCHEDULE 7.18

 

ENVIRONMENTAL COMPLIANCE
(GUARANTORS)

 

NONE

 

 

SCHEDULE 7.20

 

SUBSIDIARIES (GUARANTORS)

 

See
Schedule 6.25

 

ii

 

SCHEDULE 9.13

 

ENCUMBRANCES

 

Effective October 27, 1988, The Rouse Company pledged all of the
capital stock of Rouse-Randhurst Shopping Center, Inc. as security for the
repayment of a $39,776,220 loan from Morgan Guaranty Trust Company of New York
to Rouse-Randhurst Shopping Center, Inc.

 

iii

 

Table of Contents

 

	
  ARTICLE I.

  
	
  1.1

  	
  Definitions.

  
	
  1.2

  	
  Financial
  Standards.

  
	
   

  	
   

  
	
  ARTICLE II. THE FACILITY

  
	
  2.1

  	
  The Facility.

  
	
  2.2

  	
  Principal
  Payments.

  
	
  2.3

  	
  Requests
  for Advances; Responsibility for Advances.

  
	
  2.4

  	
  Evidence of Credit
  Extensions.

  
	
  2.5

  	
  Ratable and Non-Pro Rata
  Loans.

  
	
  2.6

  	
  LIBOR
  Applicable Margins.

  
	
  2.7

  	
  Facility Fee.

  
	
  2.8

  	
  Other Fees.

  
	
  2.9

  	
  Minimum Amount of Each
  Advance.

  
	
  2.10

  	
  Interest.

  
	
  2.11

  	
  Selection
  of Rate Options and LIBOR Interest Periods.

  
	
  2.12

  	
  Method of
  Payment.

  
	
  2.13

  	
  Default.

  
	
  2.14

  	
  Lending
  Installations.

  
	
  2.15

  	
  Non-Receipt
  of Funds by Administrative Agent

  
	
  2.16

  	
  Application of Moneys
  Received

  
	
  2.17

  	
  Competitive
  Bid Loans.

  
	
  2.18

  	
  Voluntary
  Reduction of Aggregate Commitment Amount.

  
	
  2.19

  	
  The Pledge.

  
	
   

  	
   

  
	
  ARTICLE III. THE
  LETTER OF CREDIT SUBFACILITY

  
	
  3.1

  	
  Obligation
  to Issue.

  
	
  3.2

  	
  Types and
  Amounts

  
	
  3.4

  	
  Procedure
  for Issuance of Facility Letters of Credit.

  
	
  3.5

  	
  Reimbursement
  Obligations; Duties of Issuing Bank.

  
	
  3.6

  	
  Participation.

  
	
  3.7

  	
  Payment of
  Reimbursement Obligations.

  
	
  3.8

  	
  Compensation
  for Facility Letters of Credit.

  
	
  3.9

  	
  Letter of Credit
  Collateral Account.

  
	
   

  	
   

  
	
  ARTICLE IV. CHANGE IN
  CIRCUMSTANCES

  
	
  4.1

  	
  Yield
  Protection

  
	
  4.2

  	
  Changes in
  Capital Adequacy Regulations.

  
	
  4.3

  	
  Suspension of LIBOR
  Advances

  
	
  4.4

  	
  Funding
  Indemnification.

  
	
  4.5

  	
  Lender
  Statements; Survival of Indemnity.

  

 

 

	
  ARTICLE V. CONDITIONS
  PRECEDENT

  
	
  5.1

  	
  Conditions
  Precedent to the Initial Advance

  
	
  5.2

  	
  Conditions
  Precedent to Each Advance and Issuance of Facility Letters of Credit

  
	
   

  	
   

  
	
  ARTICLE VI.
  REPRESENTATIONS AND WARRANTIES

  
	
  6.1

  	
  Existence.

  
	
  6.2

  	
  Corporate
  Powers.

  
	
  6.3

  	
  Power of
  Officers.

  
	
  6.4

  	
  Government and Other
  Approvals.

  
	
  6.5

  	
  Solvency.

  
	
  6.6

  	
  Compliance
  With Laws.

  
	
  6.7

  	
  Enforceability of
  Agreement.

  
	
  6.8

  	
  Title to
  Property.

  
	
  6.9

  	
  Litigation.

  
	
  6.10

  	
  Events of
  Default.

  
	
  6.11

  	
  Investment Company Act
  of 1940.

  
	
  6.12

  	
  Public Utility
  Holding Company Act.

  
	
  6.13

  	
  Regulation U.

  
	
  6.14

  	
  No Material
  Adverse Financial Change.

  
	
  6.15

  	
  Financial
  Information.

  
	
  6.16

  	
  Factual
  Information.

  
	
  6.17

  	
  ERISA.

  
	
  6.18

  	
  Taxes.

  
	
  6.19

  	
  Environmental
  Matters

  
	
  6.20

  	
  Insurance.

  
	
  6.21

  	
  No Brokers.

  
	
  6.22

  	
  No Violation of Usury Laws.

  
	
  6.23

  	
  Not a
  Foreign Person.

  
	
  6.24

  	
  No Trade Name.

  
	
  6.25

  	
  Subsidiaries.

  
	
   

  	
   

  
	
  ARTICLE VII.
  ADDITIONAL REPRESENTATIONS AND WARRANTIES

  
	
  7.1

  	
  Existence.

  
	
  7.2

  	
  Corporate
  Powers.

  
	
  7.3

  	
  Power of
  Officers.

  
	
  7.4

  	
  Government and Other
  Approvals.

  
	
  7.5

  	
  Solvency.

  
	
  7.6

  	
  Compliance
  With Laws.

  
	
  7.7

  	
  Enforceability of Guaranty.

  
	
  7.8

  	
  Title to
  Properties.

  
	
  7.9

  	
  Litigation.

  
	
  7.10

  	
  Events of
  Default.

  
	
  7.11

  	
  Investment Company Act of
  1940.

  

 

ii

 

	
  7.12

  	
  Public Utility
  Holding Company Act.

  
	
  7.13

  	
  No Material Adverse
  Financial Change.

  
	
  7.14

  	
  Financial
  Information.

  
	
  7.15

  	
  Factual
  Information.

  
	
  7.16

  	
  ERISA.

  
	
  7.17

  	
  Taxes.

  
	
  7.18

  	
  Environmental
  Matters

  
	
  7.19

  	
  Insurance.

  
	
  7.20

  	
  Subsidiaries.

  
	
   

  	
   

  
	
  ARTICLE VIII.
  AFFIRMATIVE COVENANTS

  
	
  8.1

  	
  Notices

  
	
  8.2

  	
  Financial
  Statements, Reports, Etc.

  
	
  8.3

  	
  Existence and
  Conduct of Operations

  
	
  8.4

  	
  Maintenance of Properties.

  
	
  8.5

  	
  Insurance.

  
	
  8.6

  	
  Payment
  of Obligations.

  
	
  8.7

  	
  Compliance
  with Laws.

  
	
  8.8

  	
  Adequate Books

  
	
  8.9

  	
  ERISA.

  
	
  8.10

  	
  Maintenance
  of Status.

  
	
  8.11

  	
  Use of Proceeds.

  
	
  8.12

  	
  Additional
  Guarantors

  
	
  8.13

  	
  Pre-Acquisition
  Environmental Investigations.

  
	
   

  	
   

  
	
  ARTICLE IX. NEGATIVE
  COVENANTS

  
	
  9.1

  	
  Change in
  Business.

  
	
  9.2

  	
  Change of Property
  Management.

  
	
  9.3

  	
  Change of Borrower Control.

  
	
  9.4

  	
  Use of Proceeds.

  
	
  9.5

  	
  Transfers
  of Properties.

  
	
  9.6

  	
  Liens.

  
	
  9.7

  	
  Regulation U.

  
	
  9.8

  	
  Variable
  Rate Debt.

  
	
  9.9

  	
  Negative
  Pledge.

  
	
  9.10

  	
  Indebtedness and Cash Flow Covenants

  
	
  9.11

  	
  Mergers and Dispositions

  
	
  9.12

  	
  Dividends.

  
	
  9.13

  	
  Encumbrances.

  
	
  9.14

  	
  Restrictions
  on Dividends and Distributions.

  
	
  9.15

  	
  Limitations on
  Indebtedness.

  
	
   

  	
   

  
	
  ARTICLE X. DEFAULTS

  
	
  10.1

  	
  Nonpayment
  of Principal.

  

 

iii

 

	
  10.2

  	
  Certain
  Covenants.

  
	
  10.3

  	
  Nonpayment
  of Interest and Other Obligations.

  
	
  10.4

  	
  Cross Default.

  
	
  10.5

  	
  Loan Documents.

  
	
  10.6

  	
  Representation or Warranty

  
	
  10.7

  	
  Covenants, Agreements and Other Conditions.

  
	
  10.8

  	
  Borrower Status.

  
	
  10.9

  	
  Material Adverse Financial
  Change.

  
	
  10.10

  	
  Bankruptcy.

  
	
  10.11

  	
  Legal
  Proceedings

  
	
  10.12

  	
  Failure to Satisfy
  Judgments.

  
	
  10.13

  	
  ERISA.

  
	
  10.14

  	
  Environmental Remediation.

  
	
   

  	
   

  
	
  ARTICLE XI.
  ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

  
	
  11.1

  	
  Acceleration.

  
	
  11.2

  	
  Preservation
  of Rights; Amendments.

  
	
   

  	
   

  
	
  ARTICLE XII. THE
  ADMINISTRATIVE AGENT

  
	
  12.1

  	
  Appointment.

  
	
  12.2

  	
  Powers.

  
	
  12.3

  	
  General
  Immunity.

  
	
  12.4

  	
  No Responsibility for Loans,
  Recitals, etc

  
	
  12.5

  	
  Action on Instructions
  of Lenders.

  
	
  12.6

  	
  Employment
  of Administrative Agents and Counsel.

  
	
  12.7

  	
  Reliance on Documents;
  Counsel.

  
	
  12.8

  	
  Administrative
  Agent’s Reimbursement and Indemnification

  
	
  12.9

  	
  Rights as a
  Lender.

  
	
  12.10

  	
  Lender
  Credit Decision.

  
	
  12.11

  	
  Successor Administrative
  Agent

  
	
  12.11

  	
  Borrower and the
  Lenders, a successor Administrative Agent.

  
	
  12.12

  	
  Notice of
  Defaults.

  
	
  12.13

  	
  Requests
  for Approval.

  
	
  12.14

  	
  Copies
  of Documents.

  
	
  12.15

  	
  Defaulting
  Lenders

  
	
   

  	
   

  
	
  ARTICLE XIII.
  BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

  
	
  13.1

  	
  Successors
  and Assigns.

  
	
  13.2

  	
  Participations.

  
	
  13.3

  	
  Assignments

  
	
  13.4

  	
  Dissemination of
  Information.

  
	
  13.5

  	
  Tax Treatment

  

 

iv

 

	
  ARTICLE XIV. GENERAL
  PROVISIONS

  
	
  14.1

  	
  Survival of
  Representations.

  
	
  14.2

  	
  Governmental
  Regulation.

  
	
  14.3

  	
  Taxes.

  
	
  14.4

  	
  Headings.

  
	
  14.5

  	
  No Third Party
  Beneficiaries.

  
	
  14.6

  	
  Expenses; Indemnification

  
	
  14.7

  	
  Severability of Provisions.

  
	
  14.8

  	
  Nonliability of the
  Lenders.

  
	
  14.9

  	
  Choice of Law.

  
	
  14.10

  	
  Consent
  to Jurisdiction.

  
	
  14.11

  	
  Waiver
  of Jury Trial.

  
	
  14.12

  	
  Successors
  and Assigns.

  
	
  14.13

  	
  Entire
  Agreement; Modification of Agreement

  
	
  14.14

  	
  Dealings with
  the Borrower.

  
	
  14.15

  	
  Set-Off.

  
	
  14.16

  	
  Counterparts.

  
	
  14.17

  	
  Co-Documentation
  and Co-Syndication Agents.

  
	
   

  	
   

  
	
  ARTICLE XV. NOTICES

  
	
  15.1

  	
  Giving Notice

  
	
  15.2

  	
  Change of Address.

  

 

	
  EXHIBITS

  
	
  A

  	
  -

  	
  Pricing
  Grid

  
	
  B-1

  	
  -

  	
  Form of Note

  
	
  B-2

  	
  -

  	
  Form of Competitive Bid Note

  
	
  C-1

  	
  -

  	
  Form of Competitive Bid Quote Request

  
	
  C-2

  	
  -

  	
  Invitation for Competitive Bid Quotes

  
	
  C-3

  	
  -

  	
  Competitive Bid Quote

  
	
  D

  	
  -

  	
  Form
  of Limited Guaranty (Revolving)

  
	
  D-1

  	
  -

  	
  Form of Unlimited Guaranty (Revolving)

  
	
  E

  	
  -

  	
  Form
  of Opinion of Borrower’s Counsel

  
	
  F

  	
  -

  	
  Form
  of Opinion of Guarantors’ (other than Unencumbered Asset Guarantors’) Counsel

  
	
   

  	
  -

  	
  Form
  of Opinion of Unencumbered Asset Guarantors’ Counsel

  
	
   

  	
  -

  	
  Form
  of Opinion for The Hughes Corporation Pledge

  
	
   

  	
  -

  	
  Form of Opinion for
  THHC and HHPI

  
	
  G

  	
  -

  	
  Wiring
  Instructions

  
	
  H

  	
  -

  	
  Form
  of Compliance Certificate

  
	
  I

  	
  -

  	
  Form
  of Assignment Agreement

  
	
  J

  	
  -

  	
  Form
  of Guaranty

  
	
  K

  	
  -

  	
  Initial
  Facility Letter of Credit

  
	
  L

  	
  -

  	
  Form
  of Transition Memorandum

  
	
  M

  	
  -

  	
  Form
  of Reaffirmation of Pledge Agreement

  

 

v

 

	
  N

  	
  -

  	
  Form
  of Borrowing Subsidiary Joinder

  
	
  O

  	
  -

  	
  Intentionally
  Omitted

  
	
  P

  	
  -

  	
  Form
  of The Rouse Company, L.P. Joinder

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  
	
   

  
	
  6.19

  	
  -

  	
  Environmental Compliance (Borrower)

  
	
  6.25

  	
  -

  	
  Subsidiaries (Borrower)

  
	
  6.26

  	
  -

  	
  Unencumbered Asset Guarantors

  
	
  7.18

  	
  -

  	
  Environmental Compliance
  (Guarantors)

  
	
  7.20

  	
  -

  	
  Subsidiaries (Guarantors)

  
	
   

  	
   

  	
   

  
	
  9.13

  	
  -

  	
  Encumbrances

  

 

vi

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