Document:

Exhibit 10.2

 

EXECUTION VERSION

 

 

 

 

AMENDED AND RESTATED

 

 

STOCK PURCHASE AGREEMENT

 

 

effective as of March 31,
2010

 

 

between

 

 

THE PURCHASERS PARTY HERETO

 

 

and

 

 

GENERAL GROWTH PROPERTIES, INC.

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  PURCHASE
  OF NEW COMMON STOCK; CLOSING

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.1

  	
   

  	
  Purchase
  of New Common Stock

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.2

  	
   

  	
  Closing

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.3

  	
   

  	
  Company
  Rights Offering Election

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.4

  	
   

  	
  Company
  Election to Replace Certain Shares; Company Election to Reserve and
  Repurchase Certain Shares

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.5

  	
   

  	
  Pro
  Rata Reductions with Fairholme Agreement

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  GGO
  SHARE DISTRIBUTION AND PURCHASE OF GGO COMMON STOCK

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.1

  	
   

  	
  GGO
  Share Distribution

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.2

  	
   

  	
  Purchase
  of GGO Common Stock

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.1

  	
   

  	
  Organization
  and Qualification

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.2

  	
   

  	
  Corporate
  Power and Authority

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.3

  	
   

  	
  Execution
  and Delivery; Enforceability

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.4

  	
   

  	
  Authorized
  Capital Stock

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.5

  	
   

  	
  Issuance

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.6

  	
   

  	
  No
  Conflict

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.7

  	
   

  	
  Consents
  and Approvals

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.8

  	
   

  	
  Company
  Reports

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.9

  	
   

  	
  No
  Undisclosed Liabilities

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.10

  	
   

  	
  No
  Material Adverse Effect

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.11

  	
   

  	
  No
  Violation or Default: Licenses and Permits

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.12

  	
   

  	
  Legal
  Proceedings

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.13

  	
   

  	
  Investment
  Company Act

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.14

  	
   

  	
  Compliance
  With Environmental Laws

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.15

  	
   

  	
  Company
  Benefit Plans

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.16

  	
   

  	
  Labor
  and Employment Matters

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.17

  	
   

  	
  Insurance

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.18

  	
   

  	
  No
  Unlawful Payments

  	
  24

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.19

  	
   

  	
  No
  Broker’s Fees

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.20

  	
   

  	
  Real
  and Personal Property

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.21

  	
   

  	
  Tax
  Matters

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.22

  	
   

  	
  Material
  Contracts

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.23

  	
   

  	
  Certain
  Restrictions on Charter and Bylaws Provisions; State Takeover Laws

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.24

  	
   

  	
  No
  Other Representations or Warranties

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  REPRESENTATIONS
  AND WARRANTIES OF PURCHASER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.1

  	
   

  	
  Organization

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.2

  	
   

  	
  Power
  and Authority

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.3

  	
   

  	
  Execution
  and Delivery

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.4

  	
   

  	
  No
  Conflict

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.5

  	
   

  	
  Consents
  and Approvals

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.6

  	
   

  	
  Compliance
  with Laws

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.7

  	
   

  	
  Legal
  Proceedings

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.8

  	
   

  	
  No
  Broker’s Fees

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.9

  	
   

  	
  Sophistication

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.10

  	
   

  	
  Purchaser
  Intent

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.11

  	
   

  	
  Reliance
  on Exemptions

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.12

  	
   

  	
  REIT
  Representations

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.13

  	
   

  	
  Financial
  Capability

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.14

  	
   

  	
  No
  Other Representations or Warranties

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.15

  	
   

  	
  Acknowledgement

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  COVENANTS
  OF THE COMPANY AND PURCHASER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1

  	
   

  	
  Bankruptcy
  Court Motions and Orders

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.2

  	
   

  	
  Warrants,
  New Warrants and GGO Warrants

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.3

  	
   

  	
  [Intentionally
  Omitted.]

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.4

  	
   

  	
  Listing

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.5

  	
   

  	
  Use
  of Proceeds

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.6

  	
   

  	
  Access
  to Information

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

ii

 

TABLE OF CONTENTS

(continued)

                

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.7

  	
   

  	
  Competing
  Transactions

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.8

  	
   

  	
  Reservation
  for Issuance

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.9

  	
   

  	
  Subscription
  Rights

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.10

  	
   

  	
  Company
  Board of Directors

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.11

  	
   

  	
  Notification
  of Certain Matters

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.12

  	
   

  	
  Further
  Assurances

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.13

  	
   

  	
  [Intentionally
  Omitted.]

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.14

  	
   

  	
  Rights
  Agreement; Reorganized Company Organizational Documents

  	
  47

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.15

  	
   

  	
  Stockholder
  Approval

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.16

  	
   

  	
  Closing
  Date Net Debt

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  ADDITIONAL
  COVENANTS OF PURCHASER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1

  	
   

  	
  Information

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.2

  	
   

  	
  Purchaser
  Efforts

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.3

  	
   

  	
  Plan
  Support

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.4

  	
   

  	
  Transfer
  Restrictions

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.5

  	
   

  	
  [Intentionally
  Omitted.]

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.6

  	
   

  	
  REIT
  Representations and Covenants

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.7

  	
   

  	
  Non-Control
  Agreement

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.8

  	
   

  	
  [Intentionally
  Omitted.]

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.9

  	
   

  	
  Additional
  Backstops

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  CONDITIONS
  TO THE OBLIGATIONS OF PURCHASER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.1

  	
   

  	
  Conditions
  to the Obligations of Purchaser

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  CONDITIONS
  TO THE OBLIGATIONS OF THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.1

  	
   

  	
  Conditions
  to the Obligations of the Company

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  [INTENTIONALLY
  OMITTED]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  SURVIVAL
  OF REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.1

  	
   

  	
  Survival
  of Representations and Warranties

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  TERMINATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.1

  	
   

  	
  Termination

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
  Section 11.2

  	
   

  	
  Effects
  of Termination

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.1

  	
   

  	
  Defined
  Terms

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.1

  	
   

  	
  Notices

  	
  93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.2

  	
   

  	
  Assignment;
  Third Party Beneficiaries

  	
  94

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.3

  	
   

  	
  Prior
  Negotiations; Entire Agreement

  	
  96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.4

  	
   

  	
  Governing
  Law; Venue

  	
  96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.5

  	
   

  	
  Company
  Disclosure Letter

  	
  96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.6

  	
   

  	
  Counterparts

  	
  96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.7

  	
   

  	
  Expenses

  	
  96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.8

  	
   

  	
  Waivers
  and Amendments

  	
  96

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.9

  	
   

  	
  Construction

  	
  97

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.10

  	
   

  	
  Adjustment
  of Share Numbers and Prices

  	
  98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.11

  	
   

  	
  Certain
  Remedies

  	
  98

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.12

  	
   

  	
  Bankruptcy
  Matters

  	
  99

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

iv

 

LIST OF EXHIBITS AND SCHEDULES

 

	
  Exhibit A:

  	
  Plan
  Summary Term Sheet

  
	
   

  	
   

  
	
  Exhibit B:

  	
  Post-Bankruptcy
  GGP Corporate Structure

  
	
   

  	
   

  
	
  Exhibit C-1:

  	
  Brookfield
  Agreement

  
	
   

  	
   

  
	
  Exhibit C-2:

  	
  Fairholme
  Agreement

  
	
   

  	
   

  
	
  Exhibit D:

  	
  REIT
  Representation Letter

  
	
   

  	
   

  
	
  Exhibit E:

  	
  GGO
  Assets

  
	
   

  	
   

  
	
  Exhibit F:

  	
  Form of
  Approval Order

  
	
   

  	
   

  
	
  Exhibit G:

  	
  Form of
  Warrant Agreement

  
	
   

  	
   

  
	
  Exhibit H:

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  
	
  Exhibit I:

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  
	
  Exhibit J:

  	
  Form of
  REIT Opinion

  
	
   

  	
   

  
	
  Exhibit K:

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  
	
  Exhibit L:

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  
	
  Exhibit M:

  	
  Form of
  Non-Control Agreement

  
	
   

  	
   

  
	
  Exhibit N:

  	
  Certain
  REIT Investors

  

 

v

 

INDEX OF DEFINED TERMS

 

	
  Defined
  Term

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  2006 Bank Loan

  	
   

  	
  76

  
	
  Additional Financing

  	
   

  	
  63

  
	
  Additional Sales Period

  	
   

  	
  77

  
	
  Adequate Reserves

  	
   

  	
  30

  
	
  Affiliate

  	
   

  	
  77

  
	
  Agreement

  	
   

  	
  1

  
	
  Anticipated Debt Paydowns

  	
   

  	
  63

  
	
  Approval Motion

  	
   

  	
  36

  
	
  Approval Order

  	
   

  	
  36

  
	
  Asset Sales

  	
   

  	
  64

  
	
  Backstop Investors

  	
   

  	
  55

  
	
  Backstop Shares

  	
   

  	
  7

  
	
  Bankruptcy Cases

  	
   

  	
  1

  
	
  Bankruptcy Code

  	
   

  	
  1

  
	
  Bankruptcy Court

  	
   

  	
  1

  
	
  Blackstone

  	
   

  	
  94

  
	
  Blackstone Assigned Securities

  	
   

  	
  94

  
	
  Blackstone Assigned Shares

  	
   

  	
  94

  
	
  Blackstone Assigned Warrants

  	
   

  	
  94

  
	
  Blackstone Purchase Price

  	
   

  	
  95

  
	
  Brazilian Entities

  	
   

  	
  77

  
	
  Bridge Note Amount

  	
   

  	
  9

  
	
  Bridge Note Interest Rate

  	
   

  	
  9

  
	
  Bridge Note Maturity Date

  	
   

  	
  9

  
	
  Bridge Notes

  	
   

  	
  9

  
	
  Bridge Securities

  	
   

  	
  57

  
	
  Brookfield Agreement

  	
   

  	
  2

  
	
  Brookfield Consortium Member

  	
   

  	
  77

  
	
  Brookfield Investor

  	
   

  	
  2

  
	
  Business Day

  	
   

  	
  77

  
	
  Capital Raising Activities

  	
   

  	
  77

  
	
  Cash Equivalents

  	
   

  	
  77

  
	
  Change of Control

  	
   

  	
  78

  
	
  Chapter 11

  	
   

  	
  1

  
	
  Claims

  	
   

  	
  78

  
	
  Clawback Percentage

  	
   

  	
  6

  
	
  Clawback Shares

  	
   

  	
  6

  
	
  Closing

  	
   

  	
  4

  
	
  Closing Date

  	
   

  	
  5

  
	
  Closing Date Net Debt

  	
   

  	
  78

  

 

vi

 

	
  Closing Date Net Debt W/O Reinstatement Adjustment and
  Permitted Claims Amounts

  	
   

  	
  79

  
	
  Closing Restraint

  	
   

  	
  75

  
	
  CMPC

  	
   

  	
  12

  
	
  CNDAS Dispute Notice

  	
   

  	
  50

  
	
  CNDAS Disputed Items

  	
   

  	
  50

  
	
  Code

  	
   

  	
  22

  
	
  Common Stock

  	
   

  	
  1

  
	
  Company

  	
   

  	
  2

  
	
  Company Benefit Plan

  	
   

  	
  79

  
	
  Company Board

  	
   

  	
  80

  
	
  Company Disclosure Letter

  	
   

  	
  13

  
	
  Company Ground Lease Property

  	
   

  	
  27

  
	
  Company Mortgage Loan

  	
   

  	
  28

  
	
  Company Option Plans

  	
   

  	
  15

  
	
  Company Properties

  	
   

  	
  24

  
	
  Company Property

  	
   

  	
  24

  
	
  Company Property Lease

  	
   

  	
  27

  
	
  Company Rights Offering

  	
   

  	
  5

  
	
  Company SEC Reports

  	
   

  	
  19

  
	
  Competing Transaction

  	
   

  	
  80

  
	
  Conclusive Net Debt Adjustment Statement

  	
   

  	
  80

  
	
  Confirmation Order

  	
   

  	
  60

  
	
  Confirmed Debtors

  	
   

  	
  89

  
	
  Contract

  	
   

  	
  80

  
	
  control

  	
   

  	
  88

  
	
  Corporate Level Debt

  	
   

  	
  80

  
	
  Dealer Manager

  	
   

  	
  55

  
	
  Debt

  	
   

  	
  80

  
	
  Debtors

  	
   

  	
  1

  
	
  Designation Conditions

  	
   

  	
  4

  
	
  DIP Loan

  	
   

  	
  81

  
	
  Disclosure Statement

  	
   

  	
  81

  
	
  Disclosure Statement Order

  	
   

  	
  60

  
	
  Dispute Notice

  	
   

  	
  49

  
	
  Disputed Items

  	
   

  	
  49

  
	
  Effective Date

  	
   

  	
  4

  
	
  Encumbrances

  	
   

  	
  25

  
	
  Environmental Laws

  	
   

  	
  21

  
	
  Equity Exchange

  	
   

  	
  2

  
	
  Equity Securities

  	
   

  	
  15

  
	
  ERISA

  	
   

  	
  81

  
	
  ERISA Affiliate

  	
   

  	
  23

  
	
  Excess Equity Capital Proceeds

  	
   

  	
  8

  
	
  Excess Surplus Amount

  	
   

  	
  81

  

 

vii

 

	
  Exchangeable Notes

  	
   

  	
  81

  
	
  Excluded Claims

  	
   

  	
  81

  
	
  Excluded Non-US Plans

  	
   

  	
  23

  
	
  Fairholme Agreement

  	
   

  	
  3

  
	
  Fairholme Purchasers

  	
   

  	
  3

  
	
  Foreign Plan

  	
   

  	
  23

  
	
  Fully Diluted Basis

  	
   

  	
  83

  
	
  Fully Diluted GGO Economic Interest

  	
   

  	
  83

  
	
  GAAP

  	
   

  	
  84

  
	
  GGO

  	
   

  	
  2

  
	
  GGO Agreement

  	
   

  	
  43

  
	
  GGO Board

  	
   

  	
  43

  
	
  GGO Common Share Amount

  	
   

  	
  84

  
	
  GGO Common Stock

  	
   

  	
  11

  
	
  GGO Non-Control Agreement

  	
   

  	
  84

  
	
  GGO Note Amount

  	
   

  	
  84

  
	
  GGO Per Share Purchase Price

  	
   

  	
  13

  
	
  GGO Pro Rata Share

  	
   

  	
  84

  
	
  GGO Promissory Note

  	
   

  	
  84

  
	
  GGO Purchase Price

  	
   

  	
  13

  
	
  GGO Representative

  	
   

  	
  11

  
	
  GGO Setup Costs

  	
   

  	
  85

  
	
  GGO Share Distribution

  	
   

  	
  12

  
	
  GGO Shares

  	
   

  	
  13

  
	
  GGO Warrants

  	
   

  	
  37

  
	
  GGP Backstop Rights Offering

  	
   

  	
  55

  
	
  GGP Backstop Rights Offering Amount

  	
   

  	
  55

  
	
  GGP Pro Rata Share

  	
   

  	
  85

  
	
  Governmental Entity

  	
   

  	
  85

  
	
  Hazardous Materials

  	
   

  	
  22

  
	
  Hughes Agreement

  	
   

  	
  85

  
	
  Hughes Amount

  	
   

  	
  84

  
	
  Hughes Heirs Obligations

  	
   

  	
  85

  
	
  Identified Assets

  	
   

  	
  11

  
	
  Indebtedness

  	
   

  	
  85

  
	
  Indemnity Cap

  	
   

  	
  51

  
	
  Initial Investors

  	
   

  	
  3

  
	
  Investment Agreements

  	
   

  	
  3

  
	
  Joint Venture

  	
   

  	
  86

  
	
  Knowledge

  	
   

  	
  86

  
	
  Law

  	
   

  	
  86

  
	
  Liquidity Equity Issuances

  	
   

  	
  86

  
	
  Liquidity Target

  	
   

  	
  62

  
	
  Material Adverse Effect

  	
   

  	
  86

  
	
  Material Contract

  	
   

  	
  87

  

 

viii

 

	
  Material Lease

  	
   

  	
  27

  
	
  Measurement Date

  	
   

  	
  15

  
	
  Most Recent Statement

  	
   

  	
  24

  
	
  MPC Assets

  	
   

  	
  88

  
	
  MPC Taxes

  	
   

  	
  88

  
	
  Net Debt Excess Amount

  	
   

  	
  88

  
	
  Net Debt Surplus Amount

  	
   

  	
  88

  
	
  New Common Stock

  	
   

  	
  1

  
	
  New Debt

  	
   

  	
  63

  
	
  New DIP Agreement

  	
   

  	
  60

  
	
  New Warrant Vesting Date

  	
   

  	
  37

  
	
  New Warrants

  	
   

  	
  36

  
	
  Non-Control Agreement

  	
   

  	
  88

  
	
  Non-Controlling Properties

  	
   

  	
  88

  
	
  NYSE

  	
   

  	
  37

  
	
  Offering Premium

  	
   

  	
  88

  
	
  Operating Partnership

  	
   

  	
  89

  
	
  Original Agreement

  	
   

  	
  1

  
	
  PBGC

  	
   

  	
  23

  
	
  Per Share Purchase Price

  	
   

  	
  3

  
	
  Permitted Claims

  	
   

  	
  89

  
	
  Permitted Claims Amount

  	
   

  	
  89

  
	
  Permitted Replacement Shares

  	
   

  	
  89

  
	
  Permitted Title Exceptions

  	
   

  	
  25

  
	
  Person

  	
   

  	
  90

  
	
  Petition Date

  	
   

  	
  1

  
	
  Plan

  	
   

  	
  1

  
	
  Plan Debtors

  	
   

  	
  89

  
	
  Plan Summary Term Sheet

  	
   

  	
  1

  
	
  PMA Claims

  	
   

  	
  89

  
	
  Preliminary Closing Date Net Debt Review Deadline

  	
   

  	
  90

  
	
  Preliminary Closing Date Net Debt Review Period

  	
   

  	
  90

  
	
  Preliminary Closing Date Net Debt Schedule

  	
   

  	
  49

  
	
  Proportionally Consolidated Debt

  	
   

  	
  90

  
	
  Proportionally Consolidated Unrestricted Cash

  	
   

  	
  90

  
	
  Proposed Approval Order

  	
   

  	
  36

  
	
  Proposed Securities

  	
   

  	
  39

  
	
  PSCM

  	
   

  	
  1

  
	
  Purchase Price

  	
   

  	
  3

  
	
  Purchaser

  	
   

  	
  1

  
	
  Purchaser Board Designee

  	
   

  	
  43

  
	
  Purchaser GGO Board Designees

  	
   

  	
  43

  
	
  Purchaser Group

  	
   

  	
  91

  
	
  Put Notice

  	
   

  	
  7

  
	
  Put Option

  	
   

  	
  7

  

 

ix

 

	
  Put Shares

  	
   

  	
  6

  
	
  Put Termination Notice

  	
   

  	
  8

  
	
  Refinance Cap

  	
   

  	
  66

  
	
  Reinstated Amounts

  	
   

  	
  63

  
	
  Reinstatement Adjustment Amount

  	
   

  	
  91

  
	
  Reinstatement Amount

  	
   

  	
  91

  
	
  REIT

  	
   

  	
  30

  
	
  REIT Subsidiary

  	
   

  	
  30

  
	
  Reorganized Company

  	
   

  	
  1

  
	
  Reorganized Company Organizational Documents

  	
   

  	
  47

  
	
  Repurchase Notice

  	
   

  	
  6

  
	
  Repurchase Shares

  	
   

  	
  6

  
	
  Reserve

  	
   

  	
  89

  
	
  Reserve Surplus Amount

  	
   

  	
  91

  
	
  Reserved Shares

  	
   

  	
  6

  
	
  Resolution Period

  	
   

  	
  49

  
	
  Rights Agreement

  	
   

  	
  91

  
	
  Rights Offering Election

  	
   

  	
  5

  
	
  Rouse Bonds

  	
   

  	
  91

  
	
  Rule 144

  	
   

  	
  53

  
	
  Sales Cap

  	
   

  	
  65

  
	
  SEC

  	
   

  	
  19

  
	
  Securities Act

  	
   

  	
  19

  
	
  Settlement Date

  	
   

  	
  7

  
	
  Share Cap Number

  	
   

  	
  64

  
	
  Share Equivalent

  	
   

  	
  91

  
	
  Shares

  	
   

  	
  3

  
	
  Significant Subsidiaries

  	
   

  	
  92

  
	
  Specified Debt

  	
   

  	
  92

  
	
  Subscription Right

  	
   

  	
  39

  
	
  Subsidiary

  	
   

  	
  92

  
	
  Synthetic Lease Obligation

  	
   

  	
  86

  
	
  Target Net Debt

  	
   

  	
  92

  
	
  Tax Protection Agreements

  	
   

  	
  92

  
	
  Tax Return

  	
   

  	
  30

  
	
  Taxes

  	
   

  	
  30

  
	
  Termination Date

  	
   

  	
  92

  
	
  Total Purchase Amount

  	
   

  	
  4

  
	
  Transactions

  	
   

  	
  92

  
	
  Transfer

  	
   

  	
  54

  
	
  TRUPS

  	
   

  	
  92

  
	
  Unrestricted Cash

  	
   

  	
  93

  
	
  Unrestricted Date

  	
   

  	
  52

  
	
  Unsecured Indebtedness

  	
   

  	
  93

  
	
  UPREIT Units

  	
   

  	
  93

  

 

x

 

	
  Warrant Agreement

  	
   

  	
  36

  
	
  Warrants

  	
   

  	
  36

  

 

xi

 

 

 

 

 

 

 

AMENDED AND RESTATED STOCK PURCHASE AGREEMENT, effective as
of March 31, 2010 (this “Agreement”), by and between General Growth
Properties, Inc., a Delaware corporation (“GGP”), and Pershing Square
Capital Management, L.P. (“PSCM”), on behalf of Pershing Square, L.P., a
Delaware limited partnership, Pershing Square II, L.P., a Delaware limited
partnership, Pershing Square International, Ltd. a Cayman Islands exempted
company and Pershing Square International V, Ltd., a Cayman Islands exempted
company, (each, except PSCM, together with its permitted nominees and assigns,
a “Purchaser”).

 

On
March 31, 2010, GGP and Purchasers entered into the Stock Purchase Agreement
(as subsequently amended on May 3, 2010 and May 7, 2010, the “Original  Agreement”)
to provide for the terms and conditions for the consummation of the
transactions contemplated herein. 
Pursuant to Section 13.8 of the Original Agreement, the parties thereto
wish to amend and restate the Original Agreement ab initio in
its entirety as set forth herein. 
References herein to “date of this Agreement” and “date hereof” shall
refer to March 31, 2010.

 

RECITALS

 

WHEREAS, GGP is a debtor in possession in that certain
bankruptcy case under chapter 11 (“Chapter 11”) of Title 11 of the
United States Code, 11 U.S.C. §§ 101 -1532 (as amended, the “Bankruptcy Code”)
filed on April 16, 2009 (the “Petition Date”) in the United States
Bankruptcy Court for the Southern District of New York (the “Bankruptcy
Court”), Case No. 09-11977 (ALG).

 

WHEREAS, each Purchaser desires to assist GGP in its plans
to recapitalize and emerge from bankruptcy and has agreed to sponsor the
implementation of a joint chapter 11 plan of reorganization based on the Plan
Summary Term Sheet (as defined below) (together with all documents and agreements
that form part of such plan or related plan supplement or are related thereto,
and as it may be amended, modified or supplemented from time to time, in each
case, to the extent it relates to the implementation and effectuation of the
Plan Summary Term Sheet and this Agreement, the “Plan”), of GGP and its
Subsidiaries and Affiliates who are debtors and debtors-in-possession (the “Debtors”)
in the chapter 11 cases pending and jointly administered in the Bankruptcy
Court (the “Bankruptcy Cases”).

 

WHEREAS, principal elements of the Plan (including a table
setting forth the proposed treatment of allowed claims and equity interests in
the Bankruptcy Cases) are set forth on Exhibit A hereto (the “Plan
Summary Term Sheet”).

 

WHEREAS, the Plan shall provide, among other things, that
(i) each holder of common stock, par value $0.01 per share, of GGP (the “Common
Stock”) shall receive, in exchange for each share of Common Stock held by
such holder, one share of new common stock (the “New Common Stock”) of a
new company that succeeds to GGP in the manner contemplated by Exhibit B
upon consummation of the Plan (the “Reorganized Company”) and (ii) any
Equity Securities (other than Common Stock) of the Company 

 

1

 

(as
defined below) or any of its Subsidiaries (as defined below) outstanding
immediately after the Effective Date that were previously convertible into, or
exercisable or exchangeable for, Common Stock shall thereafter be convertible
into, or exercisable or exchangeable for, New Common Stock (based upon the
number of shares of Common Stock underlying such Equity Securities) (the
transactions contemplated by clauses (i) and (ii) of this recital being
referred to herein as the “Equity Exchange”).  For purposes of this Agreement, the “Company”
shall be deemed to refer, prior to consummation of the Plan, to GGP and, on and
after consummation of the Plan, the Reorganized Company, as the context
requires.

 

WHEREAS, each Purchaser desires to make an investment in the
Reorganized Company on the terms and subject to the conditions described herein
in the form of the purchase of shares of New Common Stock as contemplated
hereby.

 

WHEREAS, in addition to the Equity Exchange and the sale of
the Shares (as defined below), the Plan shall provide for the incorporation by
the Company of a new subsidiary (“GGO”), the contribution of certain
assets (and/or equity interests related thereto) of the Company to GGO and the
assumption by GGO of the liabilities associated with such assets, the
distribution to the shareholders of the Company (prior to the issuance of the
Shares and the issuance of other shares of New Common Stock contemplated by
this Agreement other than pursuant to the Equity Exchange) on a pro rata basis
and holders of UPREIT Units of all of the capital stock of GGO, and whereas
each Purchaser desires to make an investment in GGO on the terms and subject to
the conditions described herein in the form of the purchase of shares of GGO
Common Stock as contemplated hereby.

 

WHEREAS, the Company has requested that each Purchaser
commit to purchase the Shares and the GGO Shares at a fixed price for the term
hereof.

 

WHEREAS, each Purchaser has agreed to enter into this
Agreement and commit to purchase the Shares and the GGO Shares only on the
condition that the Company, as promptly as practicable following the date
hereof (but no later than the date provided in Section 5.2 hereof),
issue the Warrants contemplated herein and perform its other obligations
hereunder.

 

WHEREAS, on and effective as of the date hereof, the
Company entered into an agreement (in the form attached hereto as Exhibit
C-1 together with any amendments thereto as have been approved by each
Purchaser, the “Brookfield Agreement”) with REP Investments LLC (the “Brookfield
Investor”) pursuant to which the Brookfield Investor has agreed to make (i)
an investment of up to $2,500,000,000 in the Reorganized Company in the form of
the purchase of shares of New Common Stock and (ii) an investment of
$125,000,000 in GGO in the form of the purchase of shares of GGO Common Stock.

 

WHEREAS, on and effective as of the date hereof, the
Company entered into an agreement (in the form attached hereto as Exhibit
C-2 together with any amendments 

 

2

 

thereto
as have been approved by each Purchaser, the “Fairholme Agreement” and,
together with this Agreement and the Brookfield Agreement, the “Investment
Agreements”) with The Fairholme Fund, a series of Fairholme Funds, Inc. and
Fairholme Focused Income Fund, a series of Fairholme Funds, Inc. (the “Fairholme
Purchasers”  and, together with each
Purchaser and the Brookfield Investor, the “Initial Investors”) pursuant
to which the Fairholme Purchasers have agreed to make (i) an investment of up
to $2,714,285,710 in the Reorganized Company in the form of the purchase of
shares of New Common Stock and (ii) an investment of $62,500,000 in GGO in the
form of the purchase of shares of GGO Common Stock.

 

NOW, THEREFORE, in consideration of the premises, and of
the representations, warranties, covenants and agreements set forth herein, the
parties agree as follows:

 

ARTICLE I

 

PURCHASE OF NEW COMMON
STOCK; CLOSING

 

SECTION 1.1               Purchase of New Common Stock.

 

(a)           On the terms and subject to the conditions set forth
herein, at the Closing (as defined below), each Purchaser shall purchase from
the Company, and the Company shall sell to such Purchaser, a number of shares
of New Common Stock (the “Shares”) equal to its GGP Pro Rata Share of
the Total Purchase Amount (as defined below) for a price per share equal to
$10.00 (the “Per Share Purchase Price” and, in the aggregate, the “Purchase
Price”); provided, that no Purchaser shall be obligated to purchase
a number of Shares less than its GGP Pro Rata Share of 190,000,000, as
determined pursuant to Section 1.4. 
At the Closing, the Purchasers shall cause the Purchase Price to be paid
(i) first, to the extent that the Purchasers elect by written notice to the
Company not less than three Business Days prior to the Closing Date, by the
application of any claims against the Debtors that are held by the Purchasers
and outstanding as of the Effective Date 
in an amount equal to the allowed amount (inclusive of prepetition and
postpetition interest accrued up to and on the Effective Date at the applicable
rate provided in the Plan), with each $10.00 in such amount of allowed claims
so applied being in satisfaction of the obligation to pay $10.00 of the
Purchase Price and (ii) second, by wire transfer of immediately available U.S.
Dollar funds.  For the avoidance of
doubt, the Purchasers may elect which claims to apply in satisfaction of the
Purchasers’ obligation to pay the Purchase Price for purposes of clause (i),
and the application of such claims against the Purchase Price in accordance
with clause (i) shall represent complete satisfaction of the Debtors’
obligations in respect of such allowed claims so applied.  For the avoidance of doubt and as provided in
the Plan, any application by the Purchaser of allowed claims in satisfaction of
a portion of the Purchase Price shall be effected by causing the Debtor liable
for such claims to make payment for such claims in accordance with the Plan and
by directing the amounts so payable to be paid to the Company and applied in
satisfaction of a portion of the Purchase Price.

 

3

 

(b)           The “Total Purchase Amount” will be 380,000,000,
subject to reduction pursuant to Section 1.4.

 

(c)           All Shares shall be delivered with any and all issue,
stamp, transfer or similar taxes or duties payable in connection with such
delivery duly paid by the Company to the extent required under the Confirmation
Order or applicable Law.

 

(d)           Each Purchaser, in its sole discretion, may assign its
rights to receive Shares hereunder or designate that some or all of the Shares
be issued in the name of, and delivered to, one or more of the other members of
its Purchaser Group or any third party to whom the shares could be transferred
immediately after Closing in accordance with Section 6.4, subject to (i)
such action not causing any delay in the obtaining of, or significantly
increasing the risk of not obtaining, any material authorizations, consents,
orders, declarations or approvals necessary to consummate the transactions
contemplated by this Agreement or otherwise delaying the consummation of such
transactions, (ii) such Person shall be an “accredited investor” (within the
meaning of Rule 501 of Regulation D under the Securities Act) and shall have
agreed in writing with and for the benefit of the Company to be bound by the
terms of this Agreement applicable to such Purchaser set forth in Section
6.4 and the applicable Non-Control Agreement, including the delivery of the
letter certifying compliance with the representations and covenants set forth
on Exhibit D to the extent applicable to such assignee or designee and
(iii) such initial Purchaser not being relieved of any of its obligations under
this Agreement ((i), (ii) and (iii) collectively, the “Designation
Conditions”).  Notwithstanding
anything to the contrary in this Agreement, no Purchaser may assign its rights
to receive or designate Shares to any Person (other than members of its
Purchaser Group) if such assignment or designation would cause a failure of the
closing condition in Section 7.1(u) of the Brookfield Agreement.

 

(e)           The obligations of each Purchaser hereunder shall be
determined as follows:  PSCM will deliver
written notice to the Company on or before the 20th day following execution of
this Agreement wherein PSCM will designate the “GGP Pro Rata Share” and the
“GGO Pro Rata Share” for each Purchaser; provided that the aggregate GGP
Pro Rata Share of the Purchasers shall equal the quotient of 1.0 divided by 3.5
and the aggregate GGO Pro Rata Share of the Purchasers shall equal 50%.  If PSCM fails to make such allocations to
Purchasers that are reasonably creditworthy in light of the allocation, each
Purchaser (other than Pershing Square International, Ltd. and Pershing Square
International V, Ltd.) will be bound jointly and severally hereby, and Pershing
Square International Ltd. and Pershing Square International V, Ltd. shall
unconditionally guarantee the performance hereunder of the other Purchasers.

 

SECTION 1.2               Closing.  Subject to the satisfaction or waiver of the
conditions (excluding conditions that, by their nature, cannot be satisfied
until the Closing, but subject to the satisfaction or waiver of those
conditions as of the Closing) set forth in Article VII and Article
VIII, the closing of the purchase of the Shares and the GGO Shares by each
Purchaser pursuant hereto (the “Closing”) shall occur at 9:30 a.m., New
York time, on the effective date of the Plan (the “Effective Date”), at
the offices of Weil, 

 

4

 

Gotshal & Manges LLP located at 767 Fifth
Avenue, New York, NY 10153, or such other date, time or location as agreed by
the parties.  The date of the Closing is
referred to as the “Closing Date”. 
Each of the Company and each Purchaser hereby agrees that in no event
shall the Closing occur unless all of the Shares and the GGO Shares are sold to
each applicable Purchaser (or to such other Persons as each such applicable
Purchaser may designate in accordance with and subject to the Designation
Conditions so long as such designation would not cause a failure of the closing
condition in Section 7.1(u) of the Brookfield Agreement) on the Closing Date.

 

SECTION 1.3               Company Rights Offering
Election.  The Company may at any
time prior to the date of filing of the Disclosure Statement, upon written
notice to each Purchaser in accordance with the terms hereof (the “Rights
Offering Election”), irrevocably elect to convert the obligation of such
Purchaser to purchase the Shares as contemplated by Section 1.1 hereof
into an obligation of such Purchaser to participate in a rights offering by the
Company pursuant to which shareholders and/or creditors of the Company are
offered rights to subscribe for shares of New Common Stock (a “Company
Rights Offering”), subject to the execution and delivery of definitive
documentation therefor and the satisfaction of the conditions described therein
and other customary conditions for a public rights offering.  To the extent the Company makes a Rights
Offering Election, (i) each Purchaser shall be entitled to a minimum
allocation of shares of New Common Stock in the Company Rights Offering equal
to the number of shares such Purchaser would otherwise be required to purchase
pursuant to Section 1.1 hereof had no such election been made, (ii) the
purchase price per share payable by such Purchaser shall be equal to the Per
Share Purchase Price and such Purchaser shall not be otherwise adversely
affected as compared to the transactions contemplated hereby, (iii) the Company
Rights Offering shall be effected in a manner substantially consistent with the
procedures contemplated by Section 2.2 of the Original Agreement; provided,
that the Company Rights Offering shall be completed by the Effective Date, and
(iv) the Company and each Purchaser shall cooperate in good faith to develop
and agree upon documentation that is reasonably acceptable to both the Company
and each Purchaser governing the further terms and conditions of the Company
Rights Offering.

 

SECTION 1.4               Company Election to Replace
Certain Shares; Company Election to Reserve and Repurchase Certain Shares.

 

(a)           In the event that the Company has sold, or has binding
commitments to sell on or prior to the Effective Date, Permitted Replacement
Shares, the Company may elect by written notice to each Purchaser to reduce the
Total Purchase Amount by all or any portion of the number of such Permitted
Replacement Shares as the Company may determine in its discretion; provided,
that the Total Purchase Amount shall not be less than 190,000,000.  No election by the Company under this Section
1.4(a) shall be effective unless received by each Purchaser on or prior to
the date that is 15 days before the commencement of the hearing to consider
confirmation of the Plan. Any election by the Company under this Section
1.4(a) shall be binding and irrevocable.

 

5

 

(b)           If the Plan as presented for confirmation provides for the
commencement on or within 45 days after the Effective Date of a broadly distributed
public offering of New Common Stock, the Company
may elect, by written notice to each Purchaser on or prior to the date that is
15 days before the commencement of the hearing to consider confirmation of the
Plan, to specify a number of Shares to be  purchased by
the Purchasers at Closing as Shares to be subject to repurchase after Closing
and/or subject to a put option pursuant to
this Section 1.4(b) and/or Section 1.4(c), as applicable (the “Reserved
Shares”); provided, that the excess of (i) its GGP Pro Rata Share of the
Total Purchase Amount minus (ii) its Reserved Shares shall not be less than its
GGP Pro Rata Share of 190,000,000.  The first 35,000,000 of such Reserved Shares shall constitute “Put
Shares” governed by Section 1.4(c).  Any Reserved Shares in excess of 35,000,000 Shares
shall constitute “Repurchase Shares”. With respect to any Repurchase
Shares, the Company shall pay to each Purchaser in cash on the Effective Date
an amount equal to $0.25 per Repurchase Share.  Upon payment of such amount, the Company
shall thereafter have the right to elect by written notice to each Purchaser (a
“Repurchase Notice”) on or prior to the 40th day after the Effective
Date (or, if not a Business Day, the next Business Day) to repurchase from each
Purchaser a number of Shares equal to the lesser of such Purchaser’s Clawback Percentage of (x) the aggregate number of Permitted Replacement
Shares (other than any Permitted Replacement Shares applied to reduce the Total
Purchase Amount pursuant to Section 1.4(a)) sold by the Company prior to the 45th day after the Effective Date and
(y) the sum of the initial number of Repurchase Shares under this Agreement and
the initial number of Reserved Shares (as defined in the Fairholme Agreement)
under the Fairholme Agreement.  The
purchase price for any Repurchase Shares shall be
$10.00 per Share, payable in cash in immediately available funds against
delivery of the Repurchase Shares on a
settlement date determined by the Company and each Purchaser and not later than
the date that is 45 days after the Effective Date. Any Repurchase Notice under
this Section 1.4(b) shall, when taken together with this Agreement,
constitute a binding offer and acceptance and be irrevocable.

 

For
the purposes of this Section 1.4, “Clawback Percentage” means,
for each Purchaser under this Agreement and the Fairholme Agreement, the
quotient (expressed as a percentage) of (a) the number of Clawback Shares such
Purchaser is purchasing at Closing divided by (b) all the Clawback Shares
purchased at Closing under this Agreement and the Fairholme Agreement.  The aggregate Clawback Percentages shall at
all times equal 100%.

 

For
the purposes of this Section 1.4, “Clawback Shares” means all
Reserved Shares under the Fairholme Agreement and all Repurchase Shares (but
not Put Shares) under this Agreement.

 

(c)           With respect to the Put Shares, the
following provisions will apply:

 

(i)                                     The Company
shall not be obligated to sell, and no Purchaser shall be obligated to
purchase, any Put Shares at
Closing.  Instead, the Company shall have
the option (the 

 

6

 

“Put Option”) to sell
to the Purchasers on the first Business Day at least 180 days after the Effective Date (the “Settlement Date”)
a number of Shares up to the Deficiency Amount (the “Backstop Shares”).

 

(ii)                                  The Company may
exercise its Put Option by irrevocable written notice (a “Put Notice”)
delivered to each Purchaser on the third Business Day
prior to the Settlement Date (it being agreed that the Company may at its
election for convenience deliver the Put Notice prior to such date, but it
shall be revocable until, and become effective only as of, the third Business Day prior to the Settlement Date), and the
Put Option shall expire if the Put Notice is not so delivered.  The Put Notice and this Agreement together
shall constitute the binding agreement of the Company to sell to each
Purchaser, and of each Purchaser to purchase from the Company, on the
Settlement Date a number of Shares equal to such Purchaser’s pro rata share of
the Backstop Shares for a purchase price per share equal to the Per Share
Purchase Price (payable in cash in immediately available funds).  Closing of the sale and purchase of the
Backstop Shares shall occur at 9:30 a.m., New York time, on the Settlement Date
at the offices of Weil, Gotshal & Manges LLP located at 767 Fifth Avenue,
New York, NY 10153, or such other date, time or location as agreed by the
parties.  Backstop Shares shall constitute
“Shares” for all purposes of this Agreement, including without limitation, the
representations and warranties of the Company set forth in Article III.  All conditions precedent to the obligation of
the Company to issue and sell, and of each Purchaser to purchase, Backstop
Shares shall be deemed satisfied on the Settlement Date, provided that
(A) the obligations of the Company and each Purchaser on the Settlement Date
shall be subject to the satisfaction (or waiver by each of them) of the
condition precedent that no judgment, injunction, decree or other legal
restraint shall prohibit settlement and (B) the obligation of each Purchaser on
the Settlement Date shall be subject to the additional condition precedent that
the representations and warranties of the Company in Section 3.5(a) as
they relate to the Backstop Shares shall be true and correct at and as of the
Settlement Date as if made at and as of the Settlement Date.  Each Purchaser’s obligation
with respect to its pro rata share of the Backstop Shares will be independent
of the payment or nonpayment 

 

7

 

of any amount by the Company
with respect to any Bridge Note (as described below).

 

(iii)                               For purposes of
the Company’s Put Option, the “Deficiency Amount” shall be the sum, if
positive, of:

 

(A) the aggregate number of Put Shares under this Agreement;

 

minus

 

(B) the quotient of (x) Excess Equity Capital Proceeds divided by (y) the Per
Share Purchase Price.

 

The Company shall notify the Purchasers at such time
as the Deficiency Amount has been reduced to zero (the “Put Termination
Notice”) and, upon such notice, the Put Option shall terminate and be
without further force or effect.  The
Company also may terminate the Put Option voluntarily by written notice at any
time.  Commencing on the 90th day after
the Effective Date, the outstanding Deficiency Amount from time to time shall
accrue a fee for each day outstanding at a rate per annum equal to 2.0%, with
the accrued and unpaid amount payable in arrears on the earlier of the
termination of the Put Option or the Settlement Date.

 

For
the purposes of Section 1.4(c), “Excess Equity Capital Proceeds”
means the excess, if any, as of the Settlement Date of (a) cash proceeds to the
Company (net of all underwriting or other discounts, fees or other compensation
and related expenses) from the sale of Common Stock, New Common Stock and Share
Equivalents after the date hereof and prior to the Settlement Date (other than
(i) the sale of 250,000,000 shares of New Common Stock under the Brookfield
Agreement and the sale of the first 190,000,000 shares of New Common Stock
under this Agreement and the Fairholme Agreement (in each case including any
such shares of New Common Stock purchased by assigns or designees), (ii) the
issuance of New Common Stock to settle the Hughes Heirs Obligations and (iii)
the issuance of New Common Stock to employees and directors of the Company)
over (b) $2,050,000,000.

 

(iv)                              PSCM, in its
sole discretion, may designate that some or all of the Backstop Shares be
issued in the name of, and delivered (together with the payment obligations
therewith) 

 

8

 

to, the other members of the
Purchaser Group.  Each Purchaser (other
than Pershing Square International, Ltd. and Pershing Square International V,
Ltd.) will be bound jointly and severally with respect to the obligations of
all the Purchasers with respect to the Put Option.

 

(v)                                 In addition, if
it has designated any Put Shares, the
Company shall issue to the Purchasers, and the Purchasers shall purchase from
the Company, on the Effective Date one or more unsecured notes with terms
consistent with this Section 1.4 and in form to be mutually agreed prior
to the designation of Put Shares (the “Bridge
Notes”) in an amount equal to the product of (A) the Put Shares multiplied by (B) the Per Share Purchase Price (the “Bridge
Note Amount”).  The Bridge Notes
shall (1) have a final maturity date and be unconditionally payable on the first Business Day at least 181 days after the
Effective Date (the “Bridge Note Maturity Date”), (2) bear interest at a
rate of 6.00% per annum (the “Bridge
Note Interest Rate”), with interest accruing and compounding quarterly, but
payable only upon prepayment or payment of principal, (3) be unsecured general
obligations of the Company without guarantee by any subsidiary, (4) have a
successorship covenant customary for short term indebtedness of public
companies, but no financial, operational restriction or similar covenants or
any business representations or warranties and (5) have events of default
limited to non-payment and customary bankruptcy matters, but for the avoidance
of doubt, no cross-default, cross-acceleration or similar clauses.  In
return for the Bridge Notes, each Purchaser shall deliver to the Company on the
Effective Date cash proceeds in the amount of such Purchaser’s pro rata share
of the Bridge Note Amount.  If the
Company has not repaid Purchasers the full amount outstanding under the Bridge
Notes on or before the Bridge Note Maturity Date, interest will accrue on the
unpaid amount of the Bridge Notes, including due but unpaid interest, at a
default rate equal to the Bridge Note Interest Rate plus 2.00%.  The Bridge Notes may be prepaid at any time without premium or penalty.  The Bridge Note shall be freely transferable
by holders; provided that any transfer shall require the consent of the
Company, not to be unreasonably withheld, at any time that no event of default
thereunder is continuing (and it being agreed that the Company shall not be
obligated to register any Bridge Note under securities laws).

 

9

 

(vi)                              The Company and
each Purchaser agree to work together in good faith with the aim to negotiate
and agree on mutually acceptable definitive form of the Bridge Notes as
promptly as practicable.

 

(vii)                           In the event
that the Company pays or declares any dividend or distribution on New Common
Shares with a record date after the Effective Date and prior to the Settlement
Date, (A) the Per Share Purchase Price shall be decreased by the value of such
dividend or distribution (with (1) dividends or distributions payable in New
Common Shares valued at the Per Share Purchase Price (before giving effect to
such adjustment), (2) dividends or distributions payable in cash valued at the
amount of cash, and (3) dividends or distributions of other property valued at
“Fair Market Value” as defined in the form of Warrant Agreement) and (B) the
number of Shares subject to the Put Option shall be increased by multiplying such
number by a fraction the numerator of which is the Per Share Purchase Price
before giving effect to such adjustment and the denominator of which is the Per
Share Purchase Price after giving effect to such adjustment.

 

(viii)                        At Closing, the
Purchasers shall collaterally assign and post the Bridge Notes (or an amount of
cash and freely marketable securities with a fair market value equal to the
principal amount of the Bridge Notes) as collateral for performance of the
Purchasers’ obligations under the Put Option pursuant to customary collateral
arrangements reasonably acceptable to the parties.  The amount of
collateral to be posted shall be measured by the principal amount of the Bridge
Note outstanding from time to time and there shall be no requirement to post
additional collateral if the Bridge Note is voluntarily paid by the Company
prior to its maturity.

 

(ix)                                For the
purposes of this Section 1.4(c), the “pro rata share” of each Purchaser
means the percentage designated by PSCM by written notice to the Company on or
prior to the Effective Date; provided that the sum of such pro rata shares
shall be 100%.

 

(x)                                   The Bridge Note
Amount shall not be included in the calculation of Closing Date Net Debt or
Closing Date Net Debt W/O Reinstatement Adjustment pursuant to Section 5.16.

 

10

 

SECTION 1.5               Pro Rata Reductions with
Fairholme Agreement.  No election by
the Company pursuant to Section 1.4 shall be made without the consent of
PSCM unless the Company is making a similar election under the Fairholme
Agreement, such that each of the aggregate number of Shares required to be
purchased at Closing is allocated as among each Purchaser and among each of the
Fairholme Purchasers under the Fairholme Agreement in accordance with the
applicable GGP Pro Rata Share.

 

ARTICLE II

 

GGO SHARE DISTRIBUTION AND
PURCHASE OF GGO COMMON STOCK

 

SECTION 2.1               GGO Share Distribution.  On the terms and subject to the conditions
(including Bankruptcy Court approval) set forth herein, the Plan shall provide
for the following:

 

(a)           On or prior to the Effective Date, the Company shall
incorporate GGO with issued and outstanding capital stock consisting of at
least the GGO Common Share Amount of shares of common stock (the “GGO Common
Stock”), designate an employee of the Company familiar with the Identified
Assets and reasonably acceptable to each Purchaser to serve as a representative
of GGO (the “GGO Representative”) and shall contribute to GGO (directly
or indirectly) the assets (and/or equity interests related thereto) set forth
in Exhibit E hereto and have GGO assume directly or indirectly the
associated liabilities (the “Identified Assets”); provided, however,
that to the extent the Company is prohibited by Law from contributing one or
more of the Identified Assets to GGO or the contribution thereof would breach
or give rise to a default under any Contract, agreement or instrument that
would, in the good faith judgment of the Company in consultation with the GGO
Representative, impair in any material respect the value of the relevant
Identified Asset or give rise to additional liability (other than liability
that would not, in the aggregate, be material) on the part of GGO or the
Company or a Subsidiary of the Company, the Company shall (i) to the extent not
prohibited by Law or would not give rise to such a default, take such action or
cause to be taken such other actions in order to place GGO, insofar as
reasonably possible, in the same economic position as if such Identified Asset
had been transferred as contemplated hereby and so that, insofar as reasonably
possible, substantially all the benefits and burdens (including all obligations
thereunder but excluding any obligations that arise out of the transfer of the
Identified Asset to the extent included in Permitted Claims) relating to such
Identified Asset, including possession, use, risk of loss, potential for gain
and control of such Identified Asset, are to inure from and after the Closing
to GGO (provided that as soon as a consent for the contribution of an
Identified Asset is obtained or the contractual impediment is removed or no
longer applies, the applicable Identified Asset shall be promptly contributed
to GGO), or (ii) to the extent the actions contemplated by clause (i) are not
possible without resulting in a material and adverse effect on the Company and
its Subsidiaries (as reasonably determined by the Company in consultation with
the GGO Representative), contribute other assets, with the consent of each
Purchaser (which such Purchaser shall not unreasonably withhold, condition or
delay), having an economically equivalent value and related financial impact on
the 

 

11

 

Company (in each case, as reasonably agreed by each
Purchaser and the Company in consultation with the GGO Representative) to the
Identified Asset not so contributed.  In
no event shall the Company (or any subsidiary of the Company) pay more than
$16,000,000 in the aggregate or make any other payment or provide any other economic
consideration to reduce the principal amount of the mortgage related to 110 N.
Wacker Drive, Chicago, Illinois.

 

(b)           The GGO Common Share Amount of shares of GGO Common Stock,
representing all of the outstanding capital stock of GGO (other than shares of
GGO Common Stock to be issued (x) pursuant to Section 2.2 of this Agreement,
(y) to the other Initial Investors pursuant to Section 2.2 of their respective
Investment Agreements, and (z) upon exercise of the GGO Warrants and the
warrants issued to the other Initial Investors pursuant to their respective
Investment Agreements), shall be distributed, on or prior to the Effective
Date, to the shareholders of the Company (pre-issuance of the Shares) on a pro
rata basis and holders of UPREIT Units (the “GGO Share Distribution”).

 

(c)           It is agreed that neither the Company nor any of its
Subsidiaries shall be required to pay or cause payment of any fees or make any
financial accommodations to obtain any third-party consent, approval, waiver or
other permission for the contribution contemplated by Section 2.1(a), or
to seek any such consent, approval, waiver or other permission that is
inapplicable to the Company or any of its Debtor Subsidiaries pursuant to the
Bankruptcy Code.

 

(d)           The parties currently contemplate that the GGO Share
Distribution will be structured as a “tax free spin-off” under the Code.  To the extent that the Company and each
Purchaser jointly determine that it is desirable for the GGO Share Distribution
to be structured as a taxable dividend, the parties will work together to
structure the transaction to allow for such outcome.

 

(e)           With respect to the Columbia Master Planned Community (the
“CMPC”), it is the intention of the parties that office and mall assets
currently producing any material amount of income at the CMPC (including any
associated right of access to parking spaces) will be retained by the Company
and the remaining non-income producing assets at the CMPC will be transferred
to GGO (including rights to develop and/or redevelop (as appropriate) the
remainder of the CMPC).  On or prior to
the Effective Date, the Company and GGO shall enter into a mutually
satisfactory development and cooperation agreement with respect to the CMPC,
which agreement shall provide, among other things, that GGO shall grant
mutually satisfactory easements, to the extent not already granted, such that
the office buildings retained by GGP (as provided above) continuously shall
have access to parking spaces appropriate for such office buildings.

 

12

 

 

 

SECTION 2.2         Purchase of GGO Common Stock.

 

(a)           On the terms and subject to the conditions set forth
herein, the Plan shall provide that at the Closing, each Purchaser shall
purchase from GGO, and GGO shall sell to such Purchaser, a number of shares of
GGO Common Stock (the “GGO Shares”) equal to its GGO Pro Rata Share of
2,625,000 shares of GGO Common Stock, for a price per share equal to $47.619048
(the “GGO Per Share Purchase Price” and such $125,000,000 aggregate
purchase price, the “GGO Purchase Price”).  At the Closing the Purchasers shall cause the
GGO Purchase Price to be paid by wire transfer of immediately available U.S.
Dollar funds to such account or accounts as the Company shall have designated
in writing prior to the Closing.

 

(b)           All GGO Shares shall be delivered with any and all issue,
stamp, transfer or similar taxes or duties payable in connection with such
delivery duly paid by GGO to the extent required under the Confirmation Order
or applicable Law.

 

(c)           Each Purchaser, in its sole discretion, may designate that
some or all of the GGO Shares be issued in the name of, and delivered to, the
other members of its Purchaser Group in accordance with and subject to the
Designation Conditions.

 

ARTICLE III

 

REPRESENTATIONS AND
WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to each Purchaser, as set forth below, except
(i) as set forth in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2009  (but not in documents
filed as exhibits thereto or documents incorporated by reference therein) filed
with the SEC on March 1, 2010 (other than in any “risk factor” disclosure or
any other forward-looking disclosures contained in such reports under the
headings “Risk Factors” or “Cautionary Note” or any similar sections) or (ii)
as set forth in the disclosure schedule delivered by the Company to each
Purchaser on the date of this Agreement (the “Company Disclosure Letter”):

 

SECTION 3.1               Organization and Qualification.  The Company and each of its direct and
indirect Significant Subsidiaries is duly organized and is validly existing as
a corporation or other form of entity, where applicable, in good standing under
the Laws of their respective jurisdictions of organization, with the requisite
power and authority to own, operate or manage its properties and conduct its
business as currently conducted, subject, as applicable, to the restrictions
that result from any such entity’s status as a debtor-in-possession under
Chapter 11, except to the extent the failure of such Significant Subsidiary to
be in good standing (to the extent the concept of good standing is applicable
in its jurisdiction of organization) would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.  The Company and each of its Significant
Subsidiaries has been duly qualified as a foreign corporation or other form of
entity for the transaction of business and, where applicable, is in good
standing under the Laws of each other jurisdiction in which it owns, manages,
operates or leases properties or conducts business so as to require such
qualification, except to the extent the failure to 

 

13

 

be so qualified or, where applicable, be in good
standing would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

 

SECTION 3.2               Corporate Power and Authority.

 

(a)           Subject to the authorization of the Bankruptcy Court,
which shall be contained in the Confirmation Order, and the expiration or
waiver by the Bankruptcy Court of the 14-day period set forth in Bankruptcy
Rule 3020(e) following entry of the Confirmation Order, the Company has the
requisite power and authority to enter into, execute and deliver this Agreement
and to perform its obligations hereunder (except with respect to (i) the
issuance of the Warrants and (ii) the provisions of the Approval Order).  The Company has taken all necessary corporate
action required for the due authorization, execution, delivery and performance
by it of this Agreement.

 

(b)           Subject to the entry of the Approval Order, the Company
has the requisite power and authority to (i) issue the Warrants (assuming the
accuracy of the representations of each Purchaser contained in Exhibit D)
and (ii) perform its obligations pursuant to the provisions of the Approval
Order hereof.  No approval by any
securityholders of the Company or any Subsidiary of the Company is required in
connection with the issuance of the Warrants or the issuance of the shares of
Common Stock upon exercise of the Warrants.

 

(c)           The Company has received written confirmation from the
NYSE that the shares of New Common Stock or other Equity Securities issuable by
the Company to each Purchaser and the other members of the Purchaser Group in
connection with each Purchaser’s exercise of its Subscription Rights
contemplated by Section 5.9(a) hereof shall not require stockholder
approval and shall be eligible for listing on the NYSE in the hands of such
Purchaser or other members of the Purchaser Group without any requirement for
stockholder approval, in each case, during the five (5) year period following
the Closing Date.

 

SECTION 3.3               Execution and Delivery;
Enforceability.

 

(a)           This Agreement has been duly and validly executed and
delivered by the Company, and subject to the authorization of the Bankruptcy
Court, which shall be contained in the Confirmation Order, and the expiration
or waiver by the Bankruptcy Court of the 14-day period set forth in Bankruptcy
Rule 3020(e) following entry of the Confirmation Order, shall constitute the
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, subject to general principles of equity, including
principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at Law or in
equity) (except with respect to (i) the issuance of the Warrants and (ii) the
provisions of the Approval Order).

 

(b)           Subject to the entry of the Approval Order, the provisions
of this Agreement relating to (i) the issuance of the Warrants and (ii) the
provisions of the 

 

14

 

Approval Order shall constitute the valid and
binding obligations of the Company, enforceable against the Company in
accordance with their terms.

 

SECTION 3.4               Authorized Capital Stock.  As of the date of this Agreement, the
authorized capital stock of the Company consists of 875,000,000 shares of
Common Stock and of 5,000,000 shares of preferred stock.  The issued and outstanding capital stock of
the Company and the shares of Common Stock available for grant pursuant to the
Company’s 1993 Stock Incentive Plan, 1998 Stock Incentive Plan and  2003 Stock Incentive Plan (collectively, the
“Company Option Plans”) or otherwise as of March 26, 2010 (the “Measurement
Date”) is set forth on Section 3.4 of the Company Disclosure
Letter.  From the Measurement Date to the
date of this Agreement, other than in connection with the issuance of shares of
Common Stock pursuant to the exercise of options outstanding as of the
Measurement Date, there has been no change in the number of outstanding shares
of capital stock of the Company or the number of outstanding Equity Securities
(as defined below).  Except as set forth
on Section 3.4 of the Company Disclosure Letter, on the Measurement
Date, there was not outstanding, and there was not reserved for issuance, any
(i) share of capital stock or other voting securities of the Company or its
Significant Subsidiaries; (ii) security of the Company or its Subsidiaries
convertible into or exchangeable or exercisable for shares of capital stock or
voting securities of the Company or its Significant Subsidiaries; (iii) option
or other right to acquire from the Company or its Subsidiaries, or obligation
of the Company or its Subsidiaries to issue, any shares of capital stock,
voting securities or security convertible into or  exercisable or exchangeable for shares of
capital stock or voting securities of the Company or its Significant Subsidiaries,
as the case may be; or (iv) equity equivalent interest in the ownership or
earnings of the Company or its Significant Subsidiaries or other similar right,
in each case to which the Company or a Significant Subsidiary is a party (the
items in clauses (i) through (iv) collectively, “Equity Securities”).  Other than as set forth on Section 3.4
of the Company Disclosure Letter or as contemplated by this Agreement, or
pursuant to Contracts entered into by the Company after the date hereof and
prior to the Closing that are otherwise not inconsistent with any Purchaser’s
rights hereunder and with respect to the transactions contemplated hereby, and
do not confer on any other Person rights that are superior to those received by
any Purchaser hereunder or pursuant to the transactions contemplated hereby
other than rights and terms that are customarily granted to holders of any such
Equity Securities so issued and not customarily granted in transactions such as
the transactions contemplated hereby, there is no outstanding obligation of the
Company or its Subsidiaries to repurchase, redeem or otherwise acquire any
Equity Security.  Other than as set forth
on Section 3.4 of the Company Disclosure Letter or as contemplated by
this Agreement, or pursuant to Contracts entered into by the Company in
connection with the issuance of Equity Securities after the date hereof and
prior to the Closing that are otherwise not inconsistent with any Purchaser’s
rights hereunder and with respect to the transactions contemplated hereby, and
do not confer on any other Person rights that are superior to those received by
any Purchaser hereunder or pursuant to the transactions contemplated hereby
other than rights and terms that are customarily granted to holders of any such
Equity Securities so issued and not customarily granted in transactions such as
the transactions 

 

15

 

contemplated hereby, there is no stockholder
agreement, voting trust or other agreement or understanding to which the Company
is a party or by which the Company is bound relating to the voting, purchase,
transfer or registration of any shares of capital stock of the Company or
preemptive rights with respect thereto.  Section
3.4 of the Company Disclosure Letter sets forth a complete and accurate
list of the outstanding Equity Securities of the Company as of the Measurement
Date, including the applicable conversion rates and exercise prices (or, in the
case of options to acquire Common Stock, the weighted average exercise price)
relating to the conversion or exercise of such Equity Securities into or for
Common Stock.

 

SECTION 3.5               Issuance.

 

(a)           Subject to the authorization of the Bankruptcy Court,
which shall be contained in entry of the Confirmation Order, and the expiration
or waiver by the Bankruptcy Court of the 14 day period set forth in Bankruptcy
Rule 3020(e) following entry of the Confirmation Order, the issuance of the
Shares and the New Warrants has been duly and validly authorized.  Subject to the entry of the Approval Order
and assuming the accuracy of the representations of such Purchaser contained in
Exhibit D, the issuance of the Warrants is duly and validly
authorized.  When the Shares are issued
and delivered in accordance with the terms of this Agreement against payment
therefor, the Shares shall be duly and validly issued, fully paid and
non-assessable and free and clear of all taxes, liens, pre-emptive rights,
rights of first refusal and subscription rights, other than rights and
restrictions under this Agreement, the Non-Control Agreement and applicable
state and federal securities Laws.  When
the Warrants and the New Warrants are issued and delivered in accordance with
the terms of this Agreement, the Warrants and New Warrants shall be duly and
validly issued and free and clear of all taxes, liens, pre-emptive rights,
rights of first refusal and subscription rights, other than rights and
restrictions under this Agreement, the terms of the Warrants and New Warrants
and under applicable state and federal securities Laws.  When the shares of Common Stock issuable upon
the exercise of the Warrants and the shares of New Common Stock issuable upon
the exercise of the New Warrants are issued and delivered against payment therefor,
the shares of Common Stock and New Common Stock, as applicable, shall be duly
and validly issued, fully paid and non-assessable and free and clear of all
taxes, liens, pre-emptive rights, rights of first refusal and subscription
rights, other than rights and restrictions under this Agreement, the
Non-Control Agreement and applicable state and federal securities Laws.

 

(b)           Subject to the authorization of the Bankruptcy Court,
which shall be contained in the entry of the Confirmation Order, and the
expiration or waiver by the Bankruptcy Court of the 14-day period set forth in
Bankruptcy Rule 3020(e) following entry of the Confirmation Order, when the GGO
Shares and the GGO Warrants are issued, the GGO Shares and GGO Warrants shall
be duly and validly authorized, duly and validly issued, fully paid and
non-assessable and free and clear of all taxes, liens, pre-emptive rights,
rights of first refusal and subscription rights, other than rights and
restrictions under this Agreement and under applicable state and federal
securities Laws.  When the shares of GGO
Common Stock issuable upon the exercise of the GGO 

 

16

 

Warrants are issued and delivered against payment
therefor, the shares of GGO Common Stock shall be duly and validly issued,
fully paid and non-assessable and free and clear of all taxes, liens,
pre-emptive rights, rights of first refusal and subscription rights, other than
rights and restrictions under this Agreement and under applicable state and
federal securities Laws.

 

SECTION 3.6               No Conflict.

 

(a)           Subject to (i) the receipt of the consents set forth on Section
3.6 of the Company Disclosure Letter, (ii) such authorization as is
required by the Bankruptcy Court or the Bankruptcy Code, which shall be
contained in the entry of the Confirmation Order, and the expiration, or waiver
by the Bankruptcy Court, of the 14-day period set forth in Bankruptcy Rule
3020(e) following entry of the Confirmation Order, (iii) any provisions of the
Bankruptcy Code that override, eliminate or abrogate such consents or as may be
ordered by the Bankruptcy Court and (iv) the ability to employ the alternatives
contemplated by Section 2.1 of the Agreement, the execution and delivery
(or, with respect to the Plan, the filing) by the Company of this Agreement and
the Plan, the performance by the Company of its respective obligations under
this Agreement and compliance by the Company with all of the provisions hereof
and thereof and the consummation of the transactions contemplated herein and
therein, (x) shall not conflict with, or result in a breach or violation of,
any of the terms or provisions of, or constitute a default under, or result in
the acceleration of, or the creation of any lien under, or give rise to any
termination right under, any Contract to which the Company or any of the
Company’s Subsidiaries is a party or by which any of their material assets are
subject or encumbered, (y) shall not result in any violation or breach of any
terms, conditions or provisions of the certificate of incorporation or bylaws
of the Company, or the comparable organizational documents of the Company’s
Subsidiaries, and (z) shall not conflict with or result in any violation or
breach of, or any termination or impairment of any rights under, any statute or
any license, authorization, injunction, judgment, order, decree, rule or
regulation of any court or governmental agency or body having jurisdiction over
the Company or any of its Subsidiaries or any of their respective properties or
assets, except, in the case of each of clauses (x) and (z) above, for any such
conflict, breach, acceleration, lien, termination, impairment, failure to
comply, default or violation that would not, individually or in the aggregate,
be reasonably expected to have a Material Adverse Effect (except with respect
to (i) the issuance of the Warrants and (ii) the provisions of the
Approval Order).

 

(b)           Subject to the entry of the Approval Order, (i) the
issuance of the Warrants (assuming the accuracy of the representations of each
Purchaser contained in Exhibit D) and (ii) the performance by the
Company of its respective obligations under the Approval Order and compliance
by the Company with all of the provisions thereof (x) shall not conflict
with, or result in a breach or violation of, any of the terms or provisions of,
or constitute a default under, or result in the acceleration of, or the
creation of any lien under, or give rise to any termination right under, any
Contract, (y) shall not result in any violation or breach of any terms,
conditions or provisions of the certificate of incorporation or bylaws of the
Company, or the comparable organizational documents 

 

17

 

of the Company’s Subsidiaries, and (z) shall not
conflict with or result in any violation or breach of, or any termination or
impairment of any rights under, any statute or any license, authorization,
injunction, judgment, order, decree, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of its
Subsidiaries or any of their respective properties or assets, except, in the
case of each of clauses (x) and (z) above, for any such conflict, breach,
acceleration, lien, termination, impairment, failure to comply, default or
violation that would not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect.

 

SECTION 3.7               Consents and Approvals.

 

(a)           No consent, approval, authorization, order, registration
or qualification of or with any Governmental Entity having jurisdiction over
the Company or any of its Subsidiaries or any of their respective properties is
required for (i) (1) the issuance and delivery of the New Warrants, (2) the
issuance, sale and delivery of Shares, (3) the issuance and delivery of the
Warrants, (4) the issuance, sale and delivery of the GGO Shares, (5) the
issuance and delivery of the GGO Warrants, (6) the issuance of New Common Stock
upon exercise of the New Warrants, (7) the issuance of GGO Common Stock upon
exercise of the GGO Warrants and (8) the issuance of Common Stock upon exercise
of the Warrants and (ii) the execution and delivery by the Company of this
Agreement or the Plan and performance of and compliance by the Company with all
of the provisions hereof and thereof and the consummation of the transactions
contemplated herein and therein, except (A) such authorization as is required
by the Bankruptcy Court or the Bankruptcy Code, which shall be contained in the
entry of the relevant Court Order, and the expiration, or waiver by the Bankruptcy
Court, of the 14-day period set forth in Bankruptcy Rule 3020(e) following
entry of the Confirmation Order, as applicable (except with respect to (i) the
issuance of the Warrants and (ii) the provisions of the Approval Order), (B)
filings required under, and compliance with (other than shareholder approval
requirements in respect of the issuance of the Warrants), the applicable
requirements of the Exchange Act and the rules and regulations promulgated
thereunder, the Securities Act and the rules and regulations promulgated
thereunder, and the rules of the New York Stock Exchange, and (C) such other
consents, approvals, authorizations, orders, registrations or qualifications
that, if not obtained, made or given, would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.

 

(b)           No consent, approval, authorization, order, registration
or qualification of or with any Governmental Entity having jurisdiction over
the Company or any of its Subsidiaries or any of their respective properties is
required for (1) the issuance and delivery of the Warrants and (2) the
performance of and compliance by the Company with all of the provisions of the
Approval Order except (A) the entry of the Approval Order, (B) filings required
under, and compliance with (other than shareholder approval requirements in
respect of the issuance of the Warrants), the applicable requirements of the
Exchange Act and the rules and regulations promulgated thereunder, the
Securities Act and the rules and regulations promulgated thereunder, and the
rules of the New York Stock Exchange, and (C) such other consents, approvals,
authorizations, 

 

18

 

orders, registrations or qualifications that, if not
obtained, made or given, would not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect.

 

SECTION 3.8               Company Reports.

 

(a)           The Company has filed with or otherwise furnished to the
Securities and Exchange Commission (the “SEC”) all material forms,
reports, schedules, statements and other documents required to be filed or
furnished by it under the United States Securities Act of 1933, as amended (the
“Securities Act”) or the Exchange Act since December 31, 2007 (such
documents, as supplemented or amended since the time of filing, and together
with all information incorporated by reference therein, the “Company SEC
Reports”).  No Subsidiary of the
Company is required to file with the SEC any such forms, reports, schedules,
statements or other documents pursuant to Section 13 or 15 of the Exchange
Act.  As of their respective effective
dates (in the case of Company SEC Reports that are registration statements
filed pursuant to the requirements of the Securities Act) and as of their
respective filing dates (in the case of all other Company SEC Reports), except
as and to the extent modified, amended, restated, corrected, updated or
superseded by any subsequent Company SEC Report filed and publicly available
prior to the date of this Agreement, the Company SEC Reports (i) complied in
all material respects with the applicable requirements of the Securities Act
and the Exchange Act, and the rules and regulations of the SEC promulgated
thereunder applicable to such Company SEC Reports, and  (ii) did not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

(b)           The Company maintains a system of “internal controls over
financial reporting” (as defined in Rules 13a-15(f) and 15a-15(f) under the
Exchange Act) that provides reasonable assurance regarding the reliability of
the Company’s financial reporting and the preparation of the Company’s
financial statements for external purposes in accordance with GAAP and that
includes policies and procedures that (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company, (ii) provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with GAAP, and that receipts
and expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company, and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company’s assets that could have a
material effect on the Company’s financial statements.

 

(c)           The Company maintains a system of “disclosure controls and
procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange
Act) that is reasonably designed to ensure that information required to be
disclosed by the Company in the reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the rules and forms of the 

 

19

 

SEC, and that information relating to the Company is
accumulated and communicated to the Company’s management as appropriate to
allow timely decisions regarding required disclosure and to make the
certifications of the Chief Executive Officer and Chief Financial Officer of
the Company required under the Exchange Act with respect to such reports.

 

(d)           Since December 31, 2008, the Company has not received any
oral or written notification of a “material weakness” in the Company’s internal
controls over financial reporting.  The
term “material weakness” shall have the meaning assigned to it in the
Statements of Auditing Standards 112 and 115, as in effect on the date hereof.

 

(e)           Except as and to the extent modified, amended, restated,
corrected, updated or superseded by any subsequent Company SEC Report filed and
publicly available prior to the date of this Agreement, the audited
consolidated financial statements and the unaudited consolidated interim
financial statements (including any related notes) included in the Company SEC
Reports fairly present in all material respects, the consolidated financial
position of the Company and its consolidated Subsidiaries as of the dates
thereof and the consolidated results of their operations and their consolidated
cash flows for the periods set forth therein (subject, in the case of financial
statements for quarterly periods, to normal year-end adjustments) and were
prepared in conformity with GAAP consistently applied during the periods
involved (except as otherwise disclosed in the notes thereto).

 

SECTION 3.9               No Undisclosed Liabilities.  None of the Company or its Subsidiaries has
any material liabilities (whether absolute, accrued, contingent or otherwise)
required to be reflected or reserved against on a consolidated balance sheet of
the Company prepared in accordance with GAAP, except for liabilities (i)
reflected or reserved against or provided for in the Company’s consolidated
balance sheet as of December 31, 2009 or disclosed in the notes thereto,
included in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2009, (ii) incurred in the ordinary course of business consistent
with past practice since the date of such balance sheet, (iii) for fees
and expenses incurred in connection with the Bankruptcy Cases, which have been
estimated and included in the Admin/Priority Claims identified in the Plan
Summary Term Sheet; provided, however, that such amount is an
estimate and actual results may be higher or lower, (iv) incurred in the
ordinary course of performing this Agreement and certain other asset sales,
transfers and other actions permitted under this Agreement and (v) other
liabilities at Closing as contemplated by the Plan Summary Term Sheet.

 

SECTION 3.10             No Material Adverse Effect.  Since December 31, 2009, there has not
occurred any event, fact or circumstance that has had or would reasonably be
expected to have, individually, or in the aggregate, a Material Adverse Effect.

 

SECTION 3.11             No Violation or Default:  Licenses and Permits.  The Company and its Subsidiaries (a) are in
compliance with all Laws, statutes, ordinances, rules, regulations, orders,
judgments and decrees of any court or governmental agency or body 

 

20

 

having jurisdiction over the Company or any of its
Subsidiaries or any of their respective properties, and (b) has not received
written notice of any alleged material violation of any of the foregoing
except, in the case of  each of clauses
(a) and (b) above, for any such failure to comply, default or violation that
would not, individually or in the aggregate, be reasonably expected to have a
Material Adverse Effect or as may be the result of the Company’s or any of its
Subsidiaries’ Chapter 11 filing or status as a debtor-in-possession under
Chapter 11.  Subject to the restrictions
that result from the Company’s or any of its Subsidiaries’ status as a
debtor-in-possession under Chapter 11 (including that in certain instances the
Company’s or such Subsidiary’s conduct of its business requires Bankruptcy
Court approval), each of the Company and its Subsidiaries holds all material
licenses, franchises, permits, certificates of occupancy, consents,
registrations, certificates and other governmental and regulatory permits,
authorizations and approvals required for the operation of the business as
currently conducted by it and for the ownership, lease or operation of its
material assets except, in each case, where the failure to possess or make the
same would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

 

SECTION 3.12             Legal Proceedings.  There are no legal, governmental or
regulatory investigations, actions, suits or proceedings pending or, to the
Knowledge of the Company, threatened against the Company or any of its
Subsidiaries which, individually, if determined adversely to the Company or any
of its Subsidiaries, would reasonably be expected to have a Material Adverse
Effect.

 

SECTION 3.13             Investment Company Act.  The Company is not, and, after giving effect
to the offering and sale of the Shares and the application of the proceeds
thereof, shall not be required to register as an “investment company” or
an entity “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, and the rules and regulations of
the SEC thereunder.  As of the Effective
Date, GGO, after giving effect to the offering and sale of the GGO Shares and
the application of the proceeds thereof, shall not be required to register as
an “investment company” or an entity “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, and the
rules and regulations of the SEC thereunder.

 

SECTION 3.14             Compliance With Environmental Laws.  Except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, (i) each
of the Company and its Subsidiaries are and have been in compliance with and
each of the Company Properties are and have been maintained in compliance with,
any and all applicable federal, state, local and foreign Laws relating to the
protection of the environment or natural resources, human health and safety as
such relates to the environment, or the presence, handling, or release of
Hazardous Materials (collectively, “Environmental Laws”), which
compliance includes obtaining, maintaining and complying with all permits,
licenses or other approvals required under Environmental Laws to conduct
operations as presently conducted, and no action is pending or, to the
Knowledge of the Company, threatened that seeks to repeal, modify, amend,
revoke, limit, deny renewal of, or otherwise appeal or challenge any such
permits, licenses or 

 

21

 

other approvals, (ii) none of the Company or its
Subsidiaries have received any written notice of, and none of the Company
Properties have been the subject of any written notice received by the Company
or any of its Subsidiaries of, any actual or potential liability or violation
for the presence, exposure to, investigation, remediation, arrangement for
disposal, or release of any material classified, characterized or regulated as
hazardous, toxic, pollutants, or contaminants under Environmental Laws, including
petroleum products or byproducts, radioactive materials, asbestos-containing
materials, radon, lead-containing materials, polychlorinated biphenyls, mold,
and hazardous building materials (collectively, “Hazardous Materials”),
(iii) none of the Company and its Subsidiaries are a party to or the subject of
any pending, or, to the Knowledge of the Company, threatened, legal proceeding
alleging any liability, responsibility, or violation under any Environmental
Laws with respect to their past or present facilities or their respective
operations, (iv) none of the Company and its Subsidiaries have released
Hazardous Materials on any real property in a manner that would reasonably be
expected to result in an environmental claim or liability against the Company or
any of its Subsidiaries or Affiliates, (v) none of the Company Properties is
the subject of any pending, or, to the Knowledge of the Company, threatened,
legal proceeding alleging any liability, responsibility, or violation under any
Environmental Laws, and (vi) to the Knowledge of the Company, there has been no
release of Hazardous Materials on, from, under, or at any of the Company
Properties that would reasonably be expected to result in an environmental
claim or liability against the Company or any of its Subsidiaries or
Affiliates.

 

SECTION 3.15             Company Benefit Plans.

 

(a)           Except as would not, individually or in the aggregate,
have a Material Adverse Effect, each Company Benefit Plan is in compliance in
design and operation in all material respects with all applicable provisions of
ERISA and the U.S. Internal Revenue Code of 1986, as amended (the “Code”)
and each Company Benefit Plan that is intended to be qualified under Section
401(a) of the Code has received a favorable determination letter from the
Internal Revenue Service with respect to its qualified status under Section
401(a) of the Code and its related trust’s exempt status under Section 501(a)
of the Code and the Company is not aware of any circumstances likely to result
in the loss of the qualification of any such plan under Section 401(a) of the
Code.

 

(b)           Except as would not, individually or in the aggregate,
have a Material Adverse Effect, with respect to each Company Benefit Plan that
is subject to Title IV or Section 302 of ERISA or Section 412 or 4971 of the
Code:  (A) no Company Benefit Plan has
failed to satisfy the minimum funding standard (within the meaning of Sections
412 and 430 of the Code or Section 302 of ERISA) applicable to such Company Benefit
Plan, whether or not waived and no application for a waiver of the minimum
funding standard with respect to any Company Benefit Plan has been submitted;
(B) no reportable event within the meaning of Section 4043(c) of ERISA for
which the 30-day notice requirement has not been waived has occurred (other
than in connection with the Bankruptcy Cases); (C) no liability (other than for
premiums to the Pension Benefit 

 

22

 

Guaranty Corporation (the “PBGC”)) under
Title IV of ERISA has been or is expected to be incurred by the Company or any
entity that is required to be aggregated with the Company pursuant to Section
414 of the Code (an “ERISA Affiliate”); (D) the PBGC has not instituted
proceedings to terminate any such plan or made any inquiry which would
reasonably be expected to lead to termination of any such plan, and, no
condition exists that presents a risk that such proceedings will be instituted
or which would constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any such plan;
and (E) no Company Benefit Plan is, or is expected to be, in “at-risk” status
(as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code).

 

(c)           Except as would not, individually or in the aggregate,
have a Material Adverse Effect, with respect to each Company Benefit Plan
maintained primarily for the benefit of current or former employees, officers
or directors employed, or otherwise engaged, outside the United States (each a
“Foreign Plan”), excluding any Foreign Plans that are statutorily
required, government sponsored or not otherwise sponsored, maintained or
controlled by the Company or any of its Significant Subsidiaries (“Excluded
Non-US Plans”): (A) (1) all employer and employee contributions required by
Law or by the terms of the Foreign Plan have been made, and all liabilities of
the Company and its Significant Subsidiaries have been satisfied, or, in each
case accrued, by the Company and its Significant Subsidiaries in accordance with
generally accepted accounting principles, and (2) the Company and its
Significant Subsidiaries are in compliance with all requirements of applicable
Law and the terms of such Foreign Plan; (B) as of the Effective Date, the fair
market value of the assets of each funded Foreign Plan, or the book reserve
established for each Foreign Plan, together with any accrued contributions, is
sufficient to procure or provide for the accrued benefit obligations with
respect to all current and former participants in such Foreign Plan determined
on an ongoing basis (rather than on a plan termination basis) according to the
actuarial assumptions and valuations used to account for such obligations as of
the Effective Date in accordance with applicable generally accepted accounting
principles; and (C) the Foreign Plan has been registered as required and has
been maintained in good standing with applicable regulatory authorities.

 

SECTION 3.16             Labor and Employment Matters.  (i) Neither the Company nor any of its
Significant Subsidiaries is a party to or bound by any collective bargaining
agreement or any labor union contract, nor are any employees of the Company or
any of its Significant Subsidiaries represented by a works council or a labor
organization (other than any industry-wide or statutorily mandated agreement in
non-U.S. jurisdictions); (ii) to the Knowledge of the Company, as of the
date hereof, there are no activities or proceedings by any labor union or labor
organization to organize any employees of the Company or any of its Significant
Subsidiaries or to compel the Company or any of its Significant Subsidiaries to
bargain with any labor union or labor organization; and (iii), except as
would not, individually or in the aggregate, have a Material Adverse Effect, there
is no pending or, to the Knowledge of the Company, threatened material labor
strike, lock-out, walkout, work stoppage, slowdown, demonstration, leafleting, 

 

23

 

picketing, boycott, work-to-rule campaign, sit-in,
sick-out, or similar form of organized labor disruption.

 

SECTION 3.17             Insurance.  The Company maintains for itself and its
Subsidiaries insurance policies in those amounts and covering those risks, as
in its judgment, are reasonable for the business and assets of the Company and
its Subsidiaries.

 

SECTION 3.18             No Unlawful Payments.  No action is pending or, to the Knowledge of
the Company, is threatened against the Company or any of its Subsidiaries or
Affiliates, or any of their respective directors, officers, or employees
resulting from any (a) use of corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expense relating to political activity,
(b) direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds, (c) violations of any provision
of the Foreign Corrupt Practices Act of 1977 or any other applicable local
anti-bribery or anti-corruption Laws in any relevant jurisdictions or
(d) other unlawful payment, except in any such case, as would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

SECTION 3.19             No Broker’s Fees.  Other than pursuant to agreements (including
amendments thereto) by and between the Company and each of UBS Securities LLC
and Miller Buckfire & Co., LLC, or otherwise disclosed to each Purchaser
prior to the date hereof and which fees and expenses would be included in the
definition of “Permitted Claims”, none of the Company or any of its Subsidiaries
is a party to any contract, agreement or understanding with any person (other
than this Agreement) that would give rise to a valid claim against the Company
or any of its Subsidiaries for an investment banking fee, finder’s fee or like
payment in respect of the sale of the Shares contemplated by this
Agreement.  None of the Company or any of
its Subsidiaries is a party to any contract, agreement or understanding with
any Person that would give rise to a valid claim against any Purchaser for a
brokerage commission, finder’s fee, investment banking fee or like payment in
connection with the transactions contemplated by this Agreement.

 

SECTION 3.20             Real and Personal Property.

 

(a)           Section 3.20(a) of the Company Disclosure Letter
sets forth a true, correct and complete list in all material respects of each
material real property asset owned or leased (as lessee), directly or
indirectly, in whole or in part, by the Company and/or any of its Subsidiaries
(other than Identified Assets) (each such property that is not a
Non-Controlling Property and has a fair market value (in the reasonable
determination of the Company) in excess of $10,000,000 is individually referred
to herein as “Company Property” and collectively referred to herein as
the “Company Properties”).  All
Company Properties, Non-Controlling Properties and the Identified Assets are
reflected in accordance with the applicable rules and regulations of the SEC in
the Annual Report in Form 10-K as of, and for the year ended, December 31, 2009
(the “Most Recent Statement”).

 

24

 

(b)           Except (i) for such breach of this Section 3.20(b)
as may be caused fully or substantially by the third party member or partner in
any Joint Venture, without the Knowledge or consent of the Company or any of
its Subsidiaries or (ii) as would not individually or in the aggregate be
reasonably expected to have a Material Adverse Effect, the Company or one of
its Subsidiaries owns good and valid fee simple title or valid and enforceable
leasehold interests (except with respect to the Company’s right to reject any
such ground lease as part of a Bankruptcy plan of reorganization for the
remaining Debtor entities and subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar Laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of
equity, including principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at Law or
in equity)), as applicable, to each of the Company Properties, in each case,
free and clear of liens, mortgages or deeds of trust, claims against title,
charges that are liens or other encumbrances on title, rights of way,
restrictive covenants, declarations or reservations of an interest in title
(collectively, “Encumbrances”), except for the following (collectively,
the “Permitted Title Exceptions”): (i) Encumbrances relating to the
DIP Loan and to debt obligations reflected in the Company’s financial
statements and the notes thereto (including with respect to debt obligations
which are not consolidated) or otherwise disclosed to each Purchaser in Section
3.20(g)(i) of the Company Disclosure Letter, (ii) Encumbrances that
result from any statutory or other liens for Taxes or assessments that are not
yet due or delinquent or the validity of which is being contested in good faith
by appropriate proceedings and for which a sufficient and appropriate reserve
has been set aside for the full payment thereof, (iii) any contracts, or
other occupancy agreements to third parties for the occupation or use of
portions of the Company Properties by such third parties in the ordinary course
of the business of the Company or its Subsidiaries, (iv) Encumbrances
imposed or promulgated by Law or any Governmental Entity, including zoning,
entitlement and other land use and environmental regulations,
(v) Encumbrances disclosed on existing title policies and current title
insurance commitments or surveys made available to each Purchaser, (vi)
Encumbrances on the landlord’s fee interest at any Company Property where the
Company or its Subsidiary is the tenant under any ground lease, provided that,
except as disclosed to each Purchaser in Section 3.20(b)(ii) of the
Company Disclosure Letter, neither the Company nor any of its Subsidiaries have
received a notice indicating the intention of the landlord under such ground
lease, or of any other Person, to (1) exercise a right to terminate such ground
lease, evict the lessee or otherwise collect the sub-rents thereunder, or (2)
take any other action that would be reasonably likely to result in a
termination of such ground lease, (vii) any cashiers’, landlords’, workers’,
mechanics’, carriers’, workmen’s, repairmen’s and materialmen’s liens and other
similar liens (1) incurred in the ordinary course of business which (A) are
being challenged in good faith by appropriate proceedings and for which a
sufficient and appropriate reserve has been set aside for the full payment
thereof or (B) have been otherwise fully bonded and discharged of record or for
which a sufficient and appropriate reserve has been set aside for the full
payment thereof or (2) disclosed on Section 3.20(b)(i) of the
Company Disclosure Letter  and (viii) any
other easements, rights-of-way, restrictions (including zoning restrictions),
covenants, 

 

25

 

encroachments, protrusions and other similar charges
or encumbrances, and title limitations or title defects, if any, that (I) are
customary for office, industrial, master planned communities and retail
properties or (II) individually or in the aggregate, would not be reasonably
expected to have a Material Adverse Effect. 
Other than as set forth on Section 3.20(b)(ii) of the Company
Disclosure Letter, neither the Company nor any of its Subsidiaries has received
a written notice of a material default, beyond any applicable grace and cure
periods, of or under any Permitted Title Exceptions, except (w) as may have
been caused fully or substantially by the third party member or partner in any
Joint Venture, without the Knowledge or consent of the Company or any of its
Subsidiaries (x) as a result of the filing of the Bankruptcy Cases, (y)
where the Permitted Title Exceptions are in and of themselves evidence of default
(such as mechanics’ liens and recorded notices of default) or (z) as would not,
individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect; provided, however, that where the Company has
otherwise represented and warranted to each Purchaser hereunder (including as
set forth on the Company Disclosure Letter pursuant to such representations and
warranties) with respect to the Company’s Knowledge of, the Company’s receipt
of notice of or the existence of a default in connection with a particular
category of Permitted Title Exceptions, such categories of Permitted Title
Exceptions shall not be included in the representation set forth in this
sentence (by way of illustration, but not exclusion, the representations set
forth in Section 3.20(f) with respect to defaults under Material Leases
shall be deemed to address the Company’s representations and warranties with
respect to the entire category of Permitted Title Exceptions detailed in clause
(iii) above).

 

(c)           To the extent available, the Company and its Subsidiaries
have made commercially reasonable efforts to make available or will use
commercially reasonable efforts to make available upon request to each
Purchaser those policies of title insurance that the Company or its Subsidiaries
have obtained in the last six months.

 

(d)           With respect to each Company Ground Lease Property, except
as set forth on Section 3.20(d) of the Company Disclosure Letter and
except as may have been caused by, or disclosed in the filing of the Bankruptcy
Cases, as of the date hereof, to the Company’s Knowledge, neither the Company
nor any of its Subsidiaries has received notice of material defaults
(including, without limitation, payment defaults, but limited to those
circumstances where such default may grant the landlord under such ground lease
the right to terminate such ground lease, evict the lessee or otherwise collect
the sub-rents thereunder) at such Company Ground Lease Property beyond any
applicable grace and cure periods, except (x) as would not, individually or in
the aggregate, be reasonably expected to have a Material Adverse Effect, (y) as
may be caused fully or substantially by the third party member or partner in
any Joint Venture, without the Knowledge or consent of the Company or any of
its Subsidiaries and (z) with respect to any Company Ground Lease Property
which is leased by a Subsidiary of the Company which has consummated a plan of
reorganization in the Bankruptcy Cases, all such material defaults at such
Company Ground Lease Property which existed prior to the effective date of such
Person’s plan of reorganization have been or will be cured in 

 

26

 

accordance with such plan.  As used herein the term “Company Ground
Lease Property” shall mean any Company Property having a fair market value
(in the reasonable determination of the Company) in excess of $25,000,000 which
is leased by a Subsidiary of the Company as tenant pursuant to a ground
lease.  With respect to the defaults
referenced in clause (z) above, the Bankruptcy Court approved the Debtors’
assumption of the applicable ground leases and the fixed cure amounts for such
defaults which predated assumption; provided, however, nothing
contained herein precludes any Person from raising issues in the future with
respect to defaults that may have predated such assumption.

 

(e)           Except as set forth on Section 3.20(e) of the
Company Disclosure Letter, neither the Company nor any of its Subsidiaries is a
party to any agreement relating to the property management (but not including
any leasing, development, construction or brokerage agreements) of any of the
Company Properties by a party other than Company or any wholly owned Company
Subsidiaries, except (i) management agreements that may be terminated without
cause or payment of a termination fee upon no more than 60 days notice or (ii)
as would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect.

 

(f)            Except as set forth on Section 3.20(f) of the
Company Disclosure Letter, to the Company’s Knowledge, as of February 15, 2010,
(i) each Material Lease is in full force and effect, (ii) no tenant is in
arrears in the payment of rent, additional rent or any other material charges
due under any Material Lease, and no tenant is materially in default in the
performance of any other obligations under any Material Lease, (iii) no
bankruptcy or insolvency proceeding has been commenced (and is continuing) by
or against any tenant under any Material Lease, and (iv) neither the Company
nor any of its Subsidiaries has received a written notice from a current tenant
under any Material Lease exercising a right to terminate or otherwise cancel
its Material Lease (y) as a result of or in connection with the termination or
cancellation of any other lease, sublease, license or occupancy agreement for
space at any Company Property (each, a “Company Property Lease”), or (z)
as a result of or in connection with any other tenant that occupies, or had
previously occupied, another Company Property Lease, allowing, or having had
allowed, all or any portion of the premises leased pursuant to such other
Company Property Lease to “go dark” or otherwise be abandoned or vacated;
except, (A) in the case of each of clauses (i), (ii) (iii) and (iv) above, as
would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (B) as a result of the filing of the Bankruptcy Cases
or in connection with any Bankruptcy Court approved process and (C) as may have
been caused fully or substantially by the third party member or partner in any
Joint Venture, without the Knowledge or consent of the Company or its
Subsidiaries.  “Material Lease”
means for any Company Property any lease in which the Company or its
Subsidiaries is the landlord, and all amendments, modifications, supplements,
renewals, exhibits, schedules, extensions and guarantees related thereto,
(1) to an “anchor tenant” occupying at least 80,000 square feet with
respect to such Company Property or (2) that is one of the five (5)
largest leases, in terms of gross annual minimum rent, with respect to a
Company Property that has an annual net operating 

 

27

 

income, as determined in accordance with GAAP (provided,
however, that for purposes of such calculation, the following were
reflected as expenses: (a) ground rent payments to a third party and (b) an
assumed management fee equal to 3% of base minimum and percentage rent) with
respect to the trailing twelve (12) calendar month period, equal to at least
$7,500,000.00.  For purposes of Section
7.1(c), (y) the representations and warranties made in Section
3.20(f)(i), (iii) and (iv), disregarding all qualifications
and exceptions contained therein relating to “materiality” or “Material Adverse
Effect”, shall be shall be true and correct at and as of the Closing Date as if
made at and as of the Closing Date, except for such failures to be true and
correct that, individually or in the aggregate, would not reasonably be expected
to have a Material Adverse Effect and (z) the representation and
warranties contained in Section 3.20(f)(ii), disregarding all
qualifications and exceptions contained therein relating to “materiality” or
“Material Adverse Effect”, shall be true and correct (A) at and as of the last
day of the calendar month that is two (2) calendar months prior to the calendar
month in which the Closing Date occurs as if made at and as of such date, if
the Closing Date occurs on or prior to the fifteenth (15th) day of a calendar
month, or (B) at and as of the fifteenth (15th) day of the calendar month that
is one (1) calendar month prior to the calendar month in which the Closing Date
occurs as if made at and as of such date, if the Closing Date occurs on or
after the sixteenth (16th) day of a calendar month, except for such failures to
be true and correct that, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect.

 

(g)           With respect to each Company Property:

 

(i)                                     As of the date
listed thereunder, Section 3.20(g) of the Company Disclosure Letter sets
forth a true, correct and complete list in all material respects of (i) all
loans (other than the DIP Loan) and other indebtedness secured by a mortgage,
deed of trust, deed to secure debt or indemnity deed of trust in such Company
Property (each, a “Company Mortgage Loan”), (ii) the outstanding
principal balance of each such Company Mortgage Loan, (iii) the rate of
interest applicable to such Company Mortgage Loan and (iv) the maturity date of
such Company Mortgage Loan;

 

(ii)                                  Except as set
forth in Section 3.20(g) of the Company Disclosure Letter, neither the
Company nor any of its Subsidiaries have received a written notice of default
(beyond any applicable grace or cure periods) in the (y) payment of
interest, principal or other material amount due to the lender under any
Company Mortgage Loan, whether as the primary obligor or as a guarantor thereof
or (z) performance of any other material obligations under any Company
Mortgage Loan, except (i) with respect to (y) and (z) above, as a result of the
filing of the Bankruptcy Cases, or as is prohibited, stayed or otherwise
suspended as a 

 

28

 

result of the Company’s or
any Subsidiary’s Chapter 11 filing or status as a debtor-in-possession under
Chapter 11, and (ii) with respect solely to (z) above, which would not
individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect; and

 

(iii)                               For purposes of
Section 7.1(c) the representations and warranties made in Section
3.20(g)(i), disregarding all qualifications and exceptions contained
therein relating to “materiality” or “Material Adverse Effect”, shall be true
and correct at and as of the Closing Date as if made at and as of the Closing
Date, except for (A) such inaccuracies caused by sales, purchases, transfers of
assets, refinancing or other actions effected in accordance with, subject to
the limitations contained in, and not otherwise prohibited by, the terms and
conditions in this Agreement, including, without limitation, in Article VII,
(B) amortization payments made pursuant to any applicable Company Mortgage
Loans and (C) such failures to be true and correct that, individually or in the
aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

(h)           To the Knowledge of the Company, (i) except as set forth
on Section 3.20(h) of the Company Disclosure Letter, neither the Company
nor any of its Subsidiaries has received a written notice exercising an option,
“buy-sell” right or other similar right to purchase a Company Property or any
material portion thereof which has not previously closed, except as would not,
individually or in the aggregate, reasonably be expected to have a material
adverse effect with respect to such Company Property and (ii) no Company
Property is subject to a purchase and sale agreement or any similar legally
binding agreement to purchase such Company Property or any material portion
thereof (other than (x) with respect to condominium purchase and sale
agreements and purchase and sale and early occupancy agreements or other
similar agreements for the sale of condominium units at the Natick Nouvelle,
(y) with respect to builder lot purchase agreements and other similar
agreements for the sale of vacant lots of land to builders at Bridgeland and
(z) as set forth in (i) above) which has not previously closed.

 

(i)            The Company has conducted due inquiry with respect to the
representations and warranties made in Section 3.20(d), Section
3.20(f), and Section 3.20(h).

 

SECTION 3.21             Tax Matters.  Except as disclosed on Section 3.21(a)
of the Company Disclosure Letter:

 

(a)           Except in cases where the failure of any of the following
to be true would not result in a Material Adverse Effect: (i) the Company and
each of its Significant Subsidiaries have filed all Tax Returns required to be
filed by applicable Law prior to the 

 

29

 

date hereof; (ii) all such Tax Returns were true,
complete and correct in all respects and filed on a timely basis (taking into
account any applicable extensions); (iii) the Company and each of its
Significant Subsidiaries have paid all amounts of Taxes that are due, claimed
or assessed by any taxing authority to be due for the periods covered by such
Tax Returns, other than any Taxes for which adequate reserves (“Adequate
Reserves”) have been established in accordance with GAAP or a claim has
been filed in the Bankruptcy Cases; and (iv) all adjustments of federal U.S.
Tax liability of the Company and its Significant Subsidiaries resulting from
completed audits or examinations have been reported to appropriate state and
local taxing authorities and all resulting Taxes payable to state and local
taxing authorities have been paid. 
“Taxes”  means any U.S. federal,
state, local, or foreign income, gross receipts, license, payroll, employment,
excise, severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Section 59A of the Code), customs duties, capital stock,
franchise, profits, withholding, social security (or similar), unemployment,
disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add-on minimum, estimated, or other
tax of any kind whatsoever, including any interest, penalty, or addition
thereto, whether disputed or not.  “Tax
Return” means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof, including, where
permitted or required, combined or consolidated returns for any group of
entities that include the Company or any of its Significant Subsidiaries.

 

(b)           The Company and each of its REIT Subsidiaries (x) for all
taxable years commencing with the taxable year ended December 31, 2005 through
December 31, 2009, has been subject to taxation as a real estate investment
trust within the meaning of Section 856 of the Code (a “REIT” ) and has
satisfied all requirements to qualify as a REIT for such years; (y) has
operated since January 1, 2010 to the date hereof in a manner consistent with
the requirements for qualification and taxation as a REIT; and (z) intends
to continue to operate in such a manner as to qualify as a REIT for the current
taxable year.  None of the transactions
contemplated by this Agreement will prevent the Company or any of its REIT
Subsidiaries from so qualifying.  No
Subsidiary of the Company other than a REIT Subsidiary is a corporation for
U.S. federal income tax purposes, other than a corporation that qualifies as a
“taxable REIT subsidiary” within the meaning of Section 856(l) of the
Code.  For the purposes of this
Agreement, “REIT Subsidiary” means each of GGP Ivanhoe, Inc., GGP
Holding, Inc., GGP Holding II, Inc., Victoria Ward, Limited, GGP-Natick Trust
and GGP/Homart, Inc.

 

(c)           Each Company Subsidiary other than its REIT Subsidiaries
that is a partnership, joint venture, or limited liability company and which
has not elected to be a “taxable REIT subsidiary” within the meaning of Section
856(l) of the Code has been since its formation treated for U.S. federal income
tax purposes as a partnership or disregarded entity, as the case may be, and
not as a corporation or an association taxable as a corporation, except where
failure to do so would not have a Material Adverse Effect.

 

(d)           Except where the failure to be true would not have a
Material Adverse Effect, the Company and each of its Significant Subsidiaries
have (i) complied 

 

30

 

in all respects with all applicable Laws, rules, and
regulations relating to the payment and withholding of Taxes (including
withholding and reporting requirements under sections 1441 through 1464, 3401
through 3406, 6041 and 6049 of the Code and similar provisions under any other
Laws) and (ii) within the time and in the manner prescribed by Law, withheld
from employee wages and paid to the proper Governmental Entities all amounts
required to be withheld and paid over.

 

(e)           Except where the failure to be true would not have a
Material Adverse Effect, no audits or other administrative proceedings or court
proceedings are presently pending or to the Knowledge of the Company threatened
with regard to any Taxes or Tax Returns of the Company or any of its
Significant Subsidiaries, other than any audit or administrative proceeding
relating to Taxes for which a claim has been filed in a Debtor’s Chapter 11
case or any other audit or administrative or court proceeding that is not
reasonably expected to result in a material Tax liability to the Company or any
of its Significant Subsidiaries.

 

(f)            The Company has made available to each Purchaser complete
and accurate copies of all material Tax Returns requested by any Purchaser and
filed by or on behalf of the Company or any of its Significant Subsidiaries for
all taxable years ending on or prior to the Effective Date and for which the
statute of limitations has not expired.

 

(g)           There are no Tax Protection Agreements except for those
the breach of which would not reasonably be expected to have a Material Adverse
Effect.  Neither the Company nor any
Significant Subsidiary has any liability for Taxes of any Person under Treasury
Regulation Section 1.1502-6 (or any similar provision of any state, local or
foreign Law), or as a transferee or successor (by contract or otherwise), other
than (i) to a Subsidiary of the Company or (ii) where any such liability would
not reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.22             Material Contracts.  Except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, each
Material Contract that shall survive the Bankruptcy Cases is valid and binding
on the Company or any of its Subsidiaries, as applicable, and, to the Knowledge
of the Company, on each other Person party thereto, and is in full force and
effect.  Other than as a result of the
commencement of the Bankruptcy Cases, each of the Company and its Subsidiaries
has performed, in all material respects, all obligations required to be
performed by it under each Material Contract that shall survive the Bankruptcy
Cases, except, in each case, as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  Other than those caused as a result of the
filing of the Bankruptcy Cases, neither the Company nor any of its Significant
Subsidiaries is in breach or default of any Material Contract to which it is a
party and which shall survive the Bankruptcy Cases, except, in each case, as
would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.  The Company has
made available to each Purchaser true, accurate and complete copies of the
Material Contracts as of the date of this Agreement, except for those Material
Contracts available to the public on the website maintained by the SEC.  To the Knowledge of the Company, no party to
any Material 

 

31

 

Contract that shall survive the Bankruptcy Cases has
given written notice of any action to terminate, cancel, rescind or procure a
judicial reformation of such Material Contract or any material provision
thereof, which termination, cancellation, rescission or reformation would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.  For the avoidance of
doubt, Material Contracts do not include intercompany contracts.

 

SECTION 3.23             Certain Restrictions on Charter
and Bylaws Provisions; State Takeover Laws.

 

(a)           The Company and the Company Board have taken all
appropriate and necessary actions to ensure that the ownership limitations set
forth in Article IV of the Company’s certificate of incorporation shall not apply
to (i) the acquisition of beneficial ownership by any Purchaser and any other
member of the Purchaser Group of the Warrants and the shares of Common Stock
issuable upon exercise of the Warrants, (ii) any antidilution adjustments to
those Warrants pursuant to the Warrant Agreement and (iii) any Common Stock
that any Purchaser or any member of the Purchaser Group may be deemed to own by
no actions of its own and the acquisition of beneficial ownership of up to an
additional amount totaling 0.714% of the issued and outstanding shares of
Common Stock, in the aggregate, by any Purchaser or any other member of the
Purchaser Group; provided, however, that such exception to the
ownership limitations are only effective as to any Purchaser or a member of the
Purchaser Group so long as (i) the Company has received executed copies of the
representation certificate contained in Exhibit D from such Purchaser or
such member of the Purchaser Group, it being understood that a member of the
Purchaser Group shall be required to provide such representations at such times
and only at such times as such member of the Purchaser Group “beneficially
owns” or “constructively owns” (as such terms are defined in the certificate of
incorporation of the Company) Common Stock or New Common Stock in excess of the
relevant ownership limit set forth in the certificate of incorporation of the
Company or any stock or other equity interest owned by such member of the
Purchaser Group in a tenant of the Company would be treated as constructively
owned by the Company and (ii) the representations so provided are true, correct
and complete as of the date made and continue to be true, correct and complete.

 

(b)           The Company Board 
has taken all action necessary to render inapplicable to each Purchaser
the restrictions on “business combinations” set forth in Section 203 of the
Delaware General Corporation Law and, to the knowledge of the Company, any
similar “moratorium,” “control share,” “fair price,” “takeover” or “interested
stockholder” law applicable to transactions between each Purchaser and the
Company.

 

SECTION 3.24             No Other Representations or
Warranties.  Except for the
representations and warranties made by the Company in this Article III,
neither the Company nor any other Person makes any representation or warranty
with respect to the Company or its Subsidiaries or their respective business,
operations, assets, liabilities, condition (financial or otherwise) or
prospects, notwithstanding the delivery or disclosure 

 

32

 

to each Purchaser or any other members of the
Purchaser Group or their respective representatives of any documentation,
forecasts or other information with respect to any one or more of the
foregoing.

 

ARTICLE IV

 

REPRESENTATIONS AND
WARRANTIES OF PURCHASER

 

Each
Purchaser severally, and not jointly and severally, represents and warrants to
the Company with respect to itself, and not with respect to any other
Purchaser, as set forth below:

 

SECTION 4.1               Organization.  Purchaser is duly organized and is validly
existing and, where applicable, in good standing under the Laws of its
jurisdiction of organization, with the requisite limited liability company
power and authority to undertake and effectuate the transactions contemplated
by this Agreement.  Purchaser has been
duly qualified as a foreign corporation or other form of entity for the
transaction of business and, where applicable, is in good standing under the
Laws of each other jurisdiction in which it operates so as to require such
qualification, except where the failure to be so qualified, licensed or in good
standing would not, individually or in the aggregate, have or be reasonably
expected to materially delay or prevent the consummation of the transactions
contemplated by this Agreement.

 

SECTION 4.2               Power and Authority.  Purchaser has the requisite power and
authority to enter into, execute and deliver this Agreement and to perform its
obligations hereunder and has taken all necessary action required for the due
authorization, execution, delivery and performance by it of this Agreement.

 

SECTION 4.3               Execution and Delivery.  This Agreement has been duly and validly
executed and delivered by Purchaser and constitutes its valid and binding
obligation, enforceable against Purchaser in accordance with its terms.

 

SECTION 4.4               No Conflict.  The execution and delivery of this Agreement
and the performance by Purchaser of its obligations hereunder and compliance by
Purchaser with all of the provisions hereof and the consummation of the transactions
contemplated herein (i) shall not conflict with, or result in a breach or
violation of, any of the terms or provisions of, or constitute a default under,
or result in the acceleration of, or the creation of any lien under, or give
rise to any termination right under, any material contract to which Purchaser
is a party, (ii) shall not result in any violation or breach of any provisions
of the organizational documents of Purchaser and (iii) shall not conflict with
or result in any violation of, or any termination or material impairment of any
rights under, any statute or any license, authorization, injunction, judgment,
order, decree, rule or regulation of any court or governmental agency or body
having jurisdiction over Purchaser or Purchaser’s properties or assets, except
with respect to each of (i), (ii) and (iii), such conflicts, violations or
defaults as would not be reasonably expected to have a 

 

33

 

material adverse effect on the ability of Purchaser
to consummate the transactions contemplated hereunder.

 

SECTION 4.5               Consents and Approvals.  No consent, approval, order, authorization,
registration or qualification of or with any Governmental Entity having
jurisdiction over Purchaser is required in connection with the execution and
delivery by Purchaser of this Agreement or the consummation of the transactions
contemplated hereby, except such consents, approvals, orders, authorizations,
registration or qualification as would not reasonably be expected to materially
and adversely affect the ability of Purchaser to perform its obligations under
this Agreement.

 

SECTION 4.6               Compliance with Laws.  Since the date of its formation, Purchaser
has been in compliance with all Laws applicable to Purchaser, except, in each
case, for such non-compliance as would not reasonably be expected to materially
and adversely affect the ability of Purchaser to perform its obligations under
this Agreement.

 

SECTION 4.7               Legal Proceedings.  There are no legal, governmental or
regulatory investigations, actions, suits or proceedings pending or, to the
knowledge of Purchaser, threatened against Purchaser which, individually or in
the aggregate, if determined adversely to Purchaser, would materially and
adversely affect the ability of Purchaser to perform its obligations under this
Agreement.

 

SECTION 4.8               No Broker’s Fees.  Purchaser is not party to any contract,
agreement or understanding with any Person that would give rise to a valid
claim against the Company for an investment banking fee, commission, finder’s
fee or like payment in connection with the transactions contemplated by this
Agreement.

 

SECTION 4.9               Sophistication.  Purchaser is, as of the date hereof and shall
be as of the Effective Date, an “accredited investor” within the meaning of
Rule 501(a) under the Securities Act. 
Purchaser understands and is able to bear any economic risks associated
with such investment (including, without limitation, the necessity of holding
such Shares and GGO Shares for an indefinite period of time).

 

SECTION 4.10             Purchaser Intent.  Purchaser is acquiring the Shares, the
Warrants, the GGO Shares, the New Warrants and the GGO Warrants for investment
purposes only and not with a view to or for distributing or reselling such
Shares, Warrants, GGO Shares, New Warrants and GGO Warrants or any part
thereof, without prejudice, however, to Purchaser’s right, subject to the
provisions of this Agreement, at all times to sell or otherwise dispose of all
or any part of such Shares, Warrants, GGO Shares, New Warrants and GGO Warrants
pursuant to an effective registration statement under the Securities Act or
under an exemption from such registration and in compliance with applicable
federal and state securities Laws. 
Purchaser understands that Purchaser must bear the economic risk of its
investment indefinitely.

 

SECTION 4.11             Reliance on Exemptions.  Purchaser understands that the Shares and the
GGO Shares are being offered and sold to Purchaser in reliance upon specific 

 

34

 

exemptions from the registration requirements of
United States federal and state securities Laws.

 

SECTION 4.12             REIT Representations.  The representations provided by Purchaser
and, to the extent applicable, its Affiliates, members or Affiliates of
members, set forth on Exhibit D are true, correct and complete as of the
date hereof, and shall be true as of the date of the issuance of the Warrants
and as of the Closing Date, it being understood that Purchaser’s Affiliates,
members or Affiliates of members shall be required to provide such
representations only if such Person “beneficially owns” or “constructively
owns” (as such terms are defined in the certificate of incorporation of the
Company) Common Stock or New Common Stock in excess of the relevant ownership
limit set forth in the certificate of incorporation of the Company or any stock
or other equity interest owned by such Person in a tenant of the Company would
be treated as constructively owned by the Company.

 

SECTION 4.13             Financial Capability.  Such Purchaser has sufficient binding capital
commitments or available funds to satisfy its obligations under this Agreement,
including without limitation the payment of the applicable Purchase Price and
the GGO Purchase Price.

 

SECTION 4.14             No Other Representations or
Warranties.  Except for the
representations and warranties made by Purchaser in this Article IV,
neither Purchaser nor any other Person on behalf of Purchaser makes any
representation or warranty with respect to Purchaser or its assets,
liabilities, condition (financial or otherwise) or prospects.

 

SECTION 4.15             Acknowledgement.  Purchaser acknowledges that (a) neither the
Company nor any Person on behalf of the Company is making any representations
or warranties whatsoever, express or implied, beyond those expressly given by
the Company in Article III of this Agreement and (b) Purchaser has not
been induced by, or relied upon, any representations, warranties or statements
(written or oral), whether express or implied, made by any Person, that are not
expressly set forth in Article III of this Agreement.  Without limiting the generality of the
foregoing, except with respect to the representations and warranties contained
in Article III, Purchaser acknowledges that no representations or
warranties are made with respect to any projections, forecasts, estimates,
budgets, plans or prospect information that may have been made available to
Purchaser or any of its representatives.

 

ARTICLE V

 

COVENANTS OF THE COMPANY
AND PURCHASER

 

SECTION 5.1               Bankruptcy Court Motions and
Orders.

 

(a)           No later than the close of business on the date that is
two (2) Business Days following the date of this Agreement, the Company shall
file with the 

 

35

 

Bankruptcy Court a motion in form and substance
satisfactory to each Purchaser (the “Approval Motion”) seeking to obtain
entry of an order in the form attached hereto as Exhibit F (the “Proposed
Approval Order”), which order in the final form if approved by the
Bankruptcy Court (the “Approval Order”) shall approve, among other
things, the issuance of the Warrants to each Purchaser and the warrants
contemplated by each other Investment Agreement to be issued to the applicable
Initial Investor, and the performance by the Company of its obligations under
the Warrant Agreement.

 

(b)           The Approval Motion, including any exhibits thereto and
any notices or other materials in connection therewith, and any modifications
or amendments to the foregoing, must be in form and substance reasonably
satisfactory to each Purchaser.

 

(c)           If the Approval Order shall be appealed by any Person (or
a petition for certiorari or motion for reconsideration, amendment,
clarification, modification, vacation, stay, rehearing or reargument shall be
filed with respect to such order), the Company shall diligently defend against
any such appeal, petition or motion and shall use its reasonable best efforts
to obtain an expedited resolution of any such appeal, petition or motion.  The Company shall keep each Purchaser
reasonably informed and updated regarding the status of any such appeal,
petition or motion.

 

(d)           The Company shall provide draft copies of all motions,
notices, statements, schedules, applications, reports and other papers the
Company intends to file with the Bankruptcy Court in connection with the
Approval Order to each Purchaser within a reasonable period of time prior to
the date the Company intends to file any of the foregoing, and shall consult in
advance in good faith with each Purchaser regarding the form and substance of
any such proposed filing with the Bankruptcy Court.

 

SECTION 5.2               Warrants, New Warrants and GGO
Warrants.  Within one Business Day of
the date of the entry of the Approval Order, the Company and the warrant agent
shall execute and deliver the warrant and registration rights agreement in the
form attached hereto as Exhibit G (with only such changes thereto as may
be reasonably requested by the warrant agent and reasonably approved by each
Purchaser) (the “Warrant Agreement”) pursuant to which there will be
issued to PSCM 17,142,857 warrants (the “Warrants”) each of which, when
issued, delivered and vested in accordance with the terms of the Warrant
Agreement, will entitle the holder to purchase one (1) share of Common Stock at
an initial price of $15.00 per share subject to adjustment as provided in the
Warrant Agreement.  The Warrant Agreement
shall provide that the Warrants shall vest in accordance with Section 2.2(b)
and Schedule A of the Warrant Agreement. 
For the avoidance of doubt, Warrants that have not vested may not be
exercised.  The Plan shall provide that
upon the Effective Date, the Warrants, regardless of whether or not vested,
shall be cancelled for no consideration. 
The Plan shall also provide that there shall be issued to each Purchaser
pro rata in accordance with the number of shares of New Common Stock or GGO
Common Stock, as the case may be, purchased, an aggregate of  (i) 17,142,857 fully vested warrants (the “New
Warrants”) each of which entitles the holder to purchase one (1) share of
New Common 

 

36

 

Stock at an initial purchase price of $10.50 per
share subject to adjustment as provided in the underlying warrant agreement and
(ii) 2,000,000 fully vested warrants (the “GGO Warrants”) each of which
entitles the holder to purchase one (1) share of GGO Common Stock at a price of
$50.00 per share subject to adjustment as provided in the underlying warrant
agreement, each in accordance with the terms set forth in a warrant and
registration rights agreement with terms substantially similar to the terms set
forth in the Warrant Agreement, except that the expiration date for each New
Warrant and GGO Warrant shall be the seventh year anniversary of the date on
which such warrants are issued.   The New
Warrants shall vest and be exercisable on the date (the “New Warrant Vesting
Date”) of the earlier of the expiration, termination or settlement of the
Put Option, provided that the New Warrants shall expire and not vest if, after
the Effective Date but prior to the New Warrant Vesting Date, all (but not less
than all) of the outstanding shares of New Common Stock shall have been
acquired by any single Person or “group” (within the meaning of Section
13(d)(3) of the Exchange Act, and the rules and regulations promulgated
thereunder) of Persons, other than the Company, any Initial Investor or any
Affiliate of the Company or any Initial Investor, in a full cash tender offer
or in a full cash merger transaction that, in each case, has been approved
after the Effective Date by the Company Board. 
PSCM, in its sole discretion, may designate that some or all of the New
Warrants or GGO Warrants be issued in the name of, and delivered to, any member
of the Purchaser Group in accordance with and subject to the Designation
Conditions.

 

SECTION 5.3               [Intentionally Omitted.]

 

SECTION 5.4               Listing.  The Company shall use its reasonable best
efforts to cause the Shares and the New Warrants to be listed on the New York
Stock Exchange (the “NYSE”).  The
Plan shall provide that the Company shall use its reasonable best efforts to
cause GGO to use its reasonable best efforts to cause the GGO Shares and the
GGO Warrants to be listed on a U.S. national securities exchange.

 

SECTION 5.5               Use of Proceeds.  The Plan shall provide that the Company and
its Subsidiaries, and GGO, shall apply the net proceeds from the sale of the
Shares and the GGO Shares and the Capital Raising Activities, as applicable, as
provided in the Plan Summary Term Sheet and the Plan.  The parties intend that the New Warrants, GGO
Warrants, New Common Shares and GGO Shares will be offered and sold under the
Plan, to the fullest extent permitted by law, in exchange for a claim against,
an interest in, or a claim for an administrative expense in the Bankruptcy
Case, or principally in such exchange and partly for other cash or property,
for purposes of Section 1145, and the parties shall take all reasonable actions
necessary consistent with applicable law to cause such securities to be so
offered and sold, including without limitation, reflecting the foregoing in the
initial filing of the Plan with the Bankruptcy Court.

 

SECTION 5.6               Access to Information.  Subject to applicable Law and the Company’s
receipt of customary assurances of confidentiality by each Purchaser, upon
reasonable notice, the Company shall afford each Purchaser and its directors,
officers, employees, investment bankers, attorneys, accountants and other
advisors or 

 

37

 

representatives, reasonable access during normal
business hours, throughout the period prior to the Effective Date, to its
employees, books, contracts and records and, during such period, the Company
shall (and shall cause its Subsidiaries to) furnish promptly to each Purchaser
such information concerning its business, properties and personnel as may
reasonably be requested by such Purchaser, including copies of all monthly
financial information provided to its lenders under its existing debtor in
possession financing agreements; provided, that, notwithstanding
anything to the contrary, the Company shall not be required to share
confidential information relating to any Competing Transaction except as
contemplated by Section 5.7.

 

SECTION 5.7               Competing Transactions.  From the date of this Agreement until the
earlier to occur of the Closing and the termination of this Agreement, the
Company shall provide written notice to each Purchaser not less than 48 hours
prior to the Company or any Subsidiary of the Company (i) entering into a
definitive agreement providing for a Competing Transaction or (ii) filing a
motion with the Bankruptcy Court seeking to obtain bid procedures or bid
protections for or in connection with a Competing Transaction.

 

SECTION 5.8               Reservation for Issuance.  The Company shall reserve that number of
shares of Common Stock sufficient for issuance upon exercise or conversion of
the Warrants.  In connection with the
issuance of the New Warrants, the Plan shall provide that the Company shall
reserve for issuance that number of shares of New Common Stock sufficient for
issuance upon exercise of the New Warrants. 
The Plan shall provide that GGO shall reserve for issuance that number
of shares of GGO Common Stock sufficient for issuance upon exercise of the GGO
Warrants.

 

SECTION 5.9               Subscription Rights.

 

(a)           Company Subscription Right.

 

(i)            Sale of New Equity
Securities.  If the
Company or any Subsidiary of the Company at any time or from time to time
following the Closing Date makes any public or non-public offering of any
shares of New Common Stock (or securities that are convertible into or
exchangeable or exercisable for, or linked to the performance of, New Common
Stock) (other than (1) pursuant to the granting or exercise of employee stock
options or other stock incentives pursuant to the Company’s stock incentive
plans and employment arrangements as in effect from time to time or the
issuance of stock pursuant to the Company’s employee stock purchase plan as in
effect from time to time, (2) pursuant to or in consideration for the
acquisition of another Person, business or assets by the Company or any of its
Subsidiaries, whether by purchase of stock, merger, consolidation, purchase of
all or substantially all of the assets of such Person or otherwise, (3) to
strategic partners or joint venturers in connection with a commercial relationship
with the Company or its Subsidiaries or to parties in connection with them
providing the Company or its Subsidiaries with loans, credit lines, cash price
reductions or similar transactions, under arm’s-length 

 

38

 

arrangements, (4) pursuant
to the Equity Exchange or any conversion or exchange of debt or other claims
into equity in connection with the Plan, (5) the sale of Backstop Shares or (6)
as set forth on Section 5.9(a) of the Company Disclosure Letter) (the “Proposed
Securities”), the members of the Purchaser Group shall have the right to
acquire from the Company (the “Subscription Right”) for the same price
(net of any underwriting discounts or sales commissions or any other discounts
or fees if not purchasing from or through an underwriter, placement agent or
broker) and on the same terms as such Proposed Securities are proposed to be
offered to others, up to the amount of such Proposed Securities in the
aggregate required to enable it to maintain its aggregate proportionate New
Common Stock-equivalent interest in the Company on a Fully Diluted Basis
determined in accordance with the following sentence, in each case, subject to
such limitations as may be imposed by applicable Law or stock exchange rules.  The aggregate amount of such Proposed
Securities that the members of the Purchaser Group shall be entitled to
purchase in the aggregate in any offering pursuant to the above shall (subject
to such limitations as may be imposed by applicable Law or stock exchange
rules) be determined by multiplying (x) the total number of such offered shares
of Proposed Securities by (y) a fraction, the numerator of which is the
aggregate number of shares of New Common Stock held by the Purchaser Group on a
Fully Diluted Basis as of the date of the Company’s notice pursuant to Section
5.9(a)(ii) in respect of the issuance of such Proposed Securities, and the
denominator of which is the number of shares of New Common Stock then
outstanding on a Fully Diluted Basis. 
For the avoidance of doubt, the actual amount of securities to be sold
or offered to the members of the Purchaser Group pursuant to their exercise of
the Subscription Right hereunder shall be proportionally reduced if the
aggregate amount of Proposed Securities sold or offered is reduced.  Any offers and sales pursuant to this Section
5.9 in the context of a registered public offering shall be conditioned
upon reasonably acceptable representations and warranties of each applicable
member of the Purchaser Group designated pursuant to Section 5.9(a)(vi)
regarding its status as the type of offeree to whom a private sale can be made
concurrently with a registered public offering in compliance with applicable
securities Laws.

 

(ii)           Notice.  In the event the Company proposes to offer
Proposed Securities, it shall give each Purchaser written notice of its
intention, describing the estimated price (or range of prices), anticipated
amount of securities, timing and other terms upon which the Company proposes to
offer the same (including, in the case of a registered public offering and to
the extent possible, a copy of the prospectus included in the registration
statement filed with respect to such offering), no later than 10 Business Days
after the commencement of marketing with respect to such offering or after the
Company takes substantial steps to pursue any other offering.  The applicable members of the Purchaser Group
shall have three (3) Business Days from the date of receipt of such a notice to
notify the Company in writing that it intends to exercise the applicable 

 

39

 

Subscription Right and as to
the amount of Proposed Securities such member of the Purchaser Group desires to
purchase, up to the maximum amount calculated pursuant to Section 5.9(a)(i).  In connection with an underwritten public
offering, such notice shall constitute a non-binding indication of interest to
purchase Proposed Securities at such a range of prices as the such member of
the Purchaser Group may specify and, with respect to other offerings, such
notice shall constitute a binding commitment of the  applicable member of such Purchaser Group to
purchase the amount of Proposed Securities so specified at the price and other
terms set forth in the Company’s notice to each Purchaser.  The failure of such member of the Purchaser
Group to so respond within such three (3) Business Day period shall be deemed
to be a waiver of the applicable Subscription Right under this Section 5.9
only with respect to the offering described in the applicable notice.  In connection with an underwritten public
offering or a private placement, the applicable member of the Purchaser Group
shall further enter into an agreement (in form and substance customary for
transactions of this type) to purchase the Proposed Securities to be acquired
contemporaneously with the execution of any underwriting agreement or purchase
agreement entered into with the Company, the underwriters or initial purchasers
of such underwritten public offering or private placement, and the failure of
such member of the Purchaser Group to enter into such an agreement at or prior
to such time shall constitute a waiver of the right to purchase the applicable
portion of the Proposed Securities in respect of such offering.

 

(iii)          Purchase Mechanism.  If a member of the Purchaser Group exercises
its Subscription Right provided in this Section 5.9, the closing of the
purchase of the Proposed Securities with respect to which such right has been
exercised shall take place concurrently with the sale to the other investors in
the applicable offering, which period of time for the closing of the purchase
of the Proposed Securities with respect to which such right has been exercised
shall be extended for a maximum of 180 days in order to comply with applicable
Laws (including receipt of any applicable regulatory or stockholder
approvals).  Each of the Company and the
applicable members of the Purchaser Group shall use its reasonable best efforts
to secure any regulatory or stockholder approvals or other consents, and to
comply with any Law necessary in connection with the offer, sale and purchase
of, such Proposed Securities.

 

(iv)          Failure of Purchase.  In the event (A) the applicable member of the
Purchaser Group fails to exercise its Subscription Right provided in this Section
5.9 within said three Business Day period, or (B) if so exercised, such
member of the Purchaser Group fails or is unable to consummate such purchase
within the 180 day period specified in Section 5.9(a)(iii), without
prejudice to other remedies, the Company shall thereafter be entitled during
the Additional Sale Period to sell the Proposed Securities not elected to be
purchased pursuant to this Section 5.9 or which the applicable member of
the Purchaser Group fails to or is unable to purchase, at a price and upon
terms no more 

 

40

 

favorable in any material
respect to the purchasers of such securities than were specified in the
Company’s notice to each Purchaser.  In
the event the Company has not sold the Proposed Securities within the
Additional Sale Period, the Company shall not thereafter offer, issue or sell
such Proposed Securities without first offering such securities to the members
of the Purchaser Group in the manner provided above.

 

(v)           Non-Cash Consideration.  In the case of the offering of securities for
a consideration in whole or in part other than cash, including securities
acquired in exchange therefor (other than securities by their terms so exchangeable),
the consideration other than cash shall be deemed to be the fair value thereof
as determined by the Company Board; provided, however, that such
fair value as determined by the Company Board shall not exceed the aggregate
market price of the securities being offered as of the date the Company Board
authorizes the offering of such securities.

 

(vi)          Cooperation. The Company and each applicable member
of the Purchaser Group shall cooperate in good faith to facilitate the exercise
of such member of the Purchaser Group’s Subscription Right hereunder, including
using reasonable efforts to secure any required approvals or consents.

 

(vii)         Allocation Among Purchaser
Group.  PSCM shall have
the right as attorney-in-fact of each member of the Purchaser Group to exercise
all of the rights of the members of the Purchaser Group hereunder and designate
the members of such Purchaser Group to receive any securities to be issued and
the Company may rely on any designations made by PSCM.  As a condition to the Company’s obligations
with respect to the exercise of a Subscription Right by a member of the
Purchaser Group not a party to this Agreement, such member will agree to
perform each obligation applicable to it under this Section 5.9.

 

(viii)        General.  Notwithstanding anything herein to the
contrary, (A) if (1) a member of the Purchaser Group exercises its Subscription
Right pursuant to this Section 5.9 and is unable to complete the
purchase of the Proposed Securities concurrently with the sales to the other
investors in the applicable offering as contemplated by Section 5.9(a)(iii)
due to applicable regulatory or stockholder approvals and (2) the Company or
the Company Board determines in good faith that any delay in completion of an
offering in respect of which such member of the Purchaser Group is entitled to
Subscription Rights would materially impair the financing objective of such
offering, the Company may proceed with such offering without the participation
of such member of the Purchaser Group in such offering, in which event the
Company and such member of the Purchaser Group shall promptly thereafter agree
on a process otherwise consistent with this Section 5.9 as would allow
such member of the Purchaser Group to purchase, at the same price (net of any
underwriting discounts or sales commissions or any other discounts or fees if
not purchasing from or through an underwriter, placement agent or broker) as in
such offering, up to the amount of 

 

41

 

shares of New Common Stock
(or securities that are convertible into or exchangeable or exercisable for, or
linked to the performance of, New Common Stock) as shall be necessary to enable
the Purchaser Group to maintain its aggregate proportionate New Common
Stock-equivalent interest in the Company on a Fully Diluted Basis, (B) if the
Company or the Company Board determines in good faith that compliance with the
notice provisions in Section 5.9(a)(iii) would materially impair the
financing objective of  an offering in
respect of which  the members of the
Purchaser Group are entitled to Subscription Rights, the Company shall be
permitted by notice to each Purchaser to reduce the notice period required
under Section 5.9(a)(iii) (but not to less than one (1) Business Day) to
the minimum extent required to meet the financing objective of such offering
and the members of the Purchaser Group shall have the right to either
(x) exercise their Subscription Rights during the shortened notice periods
specified in such notice or (y) require the Company to promptly thereafter
agree on a process otherwise consistent with this Section 5.9 as would
allow the applicable members of the Purchaser Group to purchase, at the same
price (net of any underwriting discounts or sales commissions or any other
discounts or fees if not purchasing from or through an underwriter, placement
agent or broker) as in such offering, up to the amount of shares of New Common
Stock (or securities that are convertible into or exchangeable or exercisable
for, or linked to the performance of, New Common Stock) as shall be necessary
to enable the Purchaser Group to maintain its aggregate proportionate New
Common Stock-equivalent interest in the Company on a Fully Diluted Basis and
(C) in the event the Company is unable to issue shares of New Common Stock (or
securities that are convertible into or exchangeable or exercisable for, or
linked to the performance of, New Common Stock) to the applicable members of
the Purchaser Group as a result of a failure to receive regulatory or
stockholder approval therefor, the Company shall take such action or cause to
be taken such other action in order to place the Purchaser Group, insofar as
reasonably practicable (subject to any limitations that may be imposed by
applicable Law or stock exchange rules), in the same position in all material
respects as if the applicable member of the Purchaser Group was able to
effectively exercise its Subscription Rights hereunder, including, without
limitation, at the option of such member, issuing to such member of the
Purchaser Group another class of securities of the Company having terms to be
agreed by the Company and such member having a value at least equal to the
value per share of New Common Stock, in each case, as shall be necessary to
enable the Purchaser Group to maintain its aggregate proportionate New Common
Stock-equivalent interest in the Company on a Fully Diluted Basis.

 

(ix)           Termination.  This Section 5.9 shall terminate at
such time as the members of the Purchaser Group collectively beneficially own
less than 5% of the outstanding shares of New Common Stock on a Fully Diluted
Basis.

 

42

 

(b)           GGO Subscription Rights.  The Plan shall provide that in connection
with the consummation of the Plan, GGO shall enter into an agreement with each
Purchaser with substantially similar terms to those set forth in Section
5.9(a) above with respect to any issuance of GGO Common Stock (or
securities that are convertible into or exchangeable or exercisable for, or
otherwise linked to, GGO Common Stock) after the Effective Date.

 

SECTION 5.10             Company Board of Directors.

 

(a)           Company Board of Directors.  The Plan shall provide that as of the
Effective Date, the Company Board shall have nine (9) members and one (1) of
such members shall be a person designated by PSCM (the “Purchaser Board
Designee”); provided, that such designee shall be identified by name
and in writing to the Company no later than 10 Business Days prior to the
voting deadline established by the Bankruptcy Court.  Subject to the rights provided under the
other Investment Agreements, the remaining members of the Company Board on the
Effective Date shall be chosen by the Company in consultation with each Purchaser.

 

(b)           GGO Board of Directors.

 

(i)            The Plan shall provide that as of the Effective Date, the
board of directors of GGO (the “GGO Board”) shall have nine (9) members
and three (3) of such members shall be persons designated by PSCM (the “Purchaser
GGO Board Designees”), to separate classes of directors of the GGO Board
(if GGO has a staggered board of directors); provided, that such
designees shall be identified by name and in writing to the Company no later
than 10 Business Days prior to the voting deadline established by the
Bankruptcy Court.  Subject to the rights
provided under the other Investment Agreements, the remaining members of the
GGO Board on the Effective Date shall be chosen by the Company in consultation
with each Purchaser.

 

(ii)                           Unless each Purchaser has otherwise
agreed, the Plan shall provide, in connection with the consummation of the
Plan, for GGO to enter into an agreement with each Purchaser (the “GGO
Agreement”) providing as follows:

 

(1)                                  That following
the Closing, GGO shall nominate as part of its slate of directors and use its
reasonable best efforts to have them elected to the GGO Board (including
through the solicitation of proxies for such person to the same extent as it
does for any of its other nominees to the GGO Board) (subject to applicable Law
and stock exchange rules (provided that the Purchaser GGO Board Designees need
not be “independent” under the applicable rules of the applicable stock
exchange or the SEC)) (x) so long as the Purchaser Group has at least a 17.5%
Fully 

 

43

 

Diluted GGO Economic
Interest, three (3) Purchaser Board Designees, and (y) otherwise, so long as
the Purchaser Group beneficially owns (directly or indirectly) in the aggregate
at least 10% of the shares of GGO Common Stock on a Fully Diluted Basis, two
(2) Purchaser Board Designees.  For the
avoidance of doubt, at and following such time as the Purchaser Group
beneficially owns (directly or indirectly) in the aggregate less than 10% of
the shares of GGO Common Stock on a Fully Diluted Basis, PSCM shall no longer
have the right to designate directors for election to the GGO Board.

 

(2)                                  That following
the Closing, and subject to applicable Law and stock exchange rules, there
shall be proportional representation by Purchaser GGO Board Designees on any
committee of the GGO Board, except for special committees established for
potential conflict of interest situations, and except that only Purchaser GGO
Board Designees who qualify under the applicable rules of the applicable stock
exchange or the SEC may serve on committees where such qualification is
required.  If at any time the number of
Purchaser GGO Board Designees serving on the GGO Board exceeds the number of
Purchaser GGO Board Designees that PSCM is then otherwise entitled to designate
as a result of a decrease in the percentage of shares of GGO Common Stock
beneficially owned by the Purchaser Group, such Purchaser Group shall, to the
extent it is within such Purchaser Group’s control, use commercially reasonable
efforts to cause any such additional Purchaser GGO Board Designees to offer to
resign such that the number of Purchaser GGO Board Designees serving on the GGO
Board after giving effect to such resignation does not exceed the number of
Purchaser GGO Board Designees that PSCM is entitled to designate for election
to the GGO Board.

 

(3)                                  That except
with respect to the resignation of a Purchaser GGO Board Designee pursuant to Section
5.10(b)(ii)(2), (A) PSCM shall have the power to designate a Purchaser GGO
Board Designee’s 

 

44

 

replacement upon the death,
resignation, retirement, disqualification or removal from office of such
Purchaser GGO Board Designee and (B) the GGO Board shall promptly take all
action reasonably required to fill any vacancy resulting therefrom with such
replacement Purchaser GGO Board Designee (including nominating such person,
subject to applicable Law, as GGO’s nominee to serve on the GGO Board and
causing GGO to use all reasonable efforts to have such person elected as a
director of GGO and solicit proxies for such person to the same extent as it
does for any of GGO’s other nominees to the GGO Board).

 

(4)                                  That (A) each
Purchaser GGO Board Designee shall be entitled to the same compensation and
same indemnification in connection with his or her role as a director as the
members of the GGO Board, and each Purchaser GGO Board Designee shall be
entitled to reimbursement for documented, reasonable out-of-pocket expenses
incurred in attending meetings of the GGO Board or any committees thereof, to
the same extent as other members of the GGO Board, (B) GGO shall notify each
Purchaser GGO Board Designee of all regular and special meetings of the GGO
Board and shall notify the Purchaser GGO Board Designee of all regular and
special meetings of any committee of the GGO Board of which such Purchaser GGO
Board Designee is a member, and (C) GGO shall provide each Purchaser GGO Board
Designee with copies of all notices, minutes, consents and other materials
provided to all other members of the GGO Board concurrently as such materials
are provided to the other members (except, for the avoidance of doubt, as are
provided to members of committees of which such Purchaser GGO Board Designee is
not a member).

 

(5)                                  Purchaser GGO
Board Designee candidates shall be subject to such reasonable eligibility
criteria as applied in good faith by the nominating, corporate governance or
similar committee of the GGO Board to other candidates for the GGO Board.

 

45

 

SECTION 5.11             Notification of Certain Matters.

 

(a)           The Company shall (i) give prompt written notice to each
Purchaser of any written notice or other written communication from any Person
alleging that the consent of such Person which is or may be required in
connection with the transactions contemplated by this Agreement is not likely
to be obtained prior to Closing, if the failure to obtain such consent would
reasonably be expected to be adverse and material to the Company and its
Subsidiaries taken as a whole or would materially impair the ability of the
Company to consummate the transactions contemplated hereby or perform its
obligations hereunder, and (ii) facilitate adding such individuals as
designated by each Purchaser to the electronic notification system such that
the designated individuals will receive electronic notice of the entry of any
Bankruptcy Court Order.

 

(b)           To the extent permitted by applicable Law, (i) the Company
shall give prompt notice to each Purchaser of the commencement of any
investigation, inquiry or review by any Governmental Entity with respect to the
Company or its Subsidiaries which would reasonably be expected to be adverse
and material to the Company and its Subsidiaries taken as a whole or would
materially impair the ability of the Company to consummate the transactions
contemplated hereby or perform its obligations hereunder, and (ii) the Company
shall give prompt notice to each Purchaser, and each Purchaser shall give
written prompt notice to the Company, of any event or circumstance that would
result in any representation or warranty of the Company or such Purchaser, as
applicable, being untrue or any covenant or agreement of the Company or such
Purchaser, as applicable, not being performed or complied with such that, in
each such case, the conditions set forth in Article VII or Article
VIII, as applicable, would not be satisfied if such event or circumstance
existed on the Closing Date.

 

(c)           No information received by a party pursuant to this Section
5.11 nor any information received or learned by a party or any of its
representatives pursuant to an investigation made under this Section 5.11
shall be deemed to (A) qualify, modify, amend or otherwise affect any
representations, warranties, conditions, covenants or other agreements of the
other party set forth in this Agreement, (B) amend or otherwise supplement the
information set forth in the Company Disclosure Letter, (C) limit or restrict
the remedies available to such party 
under this Agreement, applicable Law or otherwise arising out of a
breach of this Agreement, or (D) limit or restrict the ability of such party to
invoke or rely on, or effect the satisfaction of, the conditions to the
obligations of such party to consummate the transactions contemplated by this
Agreement set forth in Article VII or Article VIII, as
applicable.

 

SECTION 5.12             Further Assurances.  From and after the Closing, the Company shall
(and shall cause each of its Subsidiaries to) execute and deliver, or cause to
be executed and delivered, such further instruments or documents or take such
other action and cause entities controlled by them to take such action as may
be reasonably necessary (or as reasonably requested by any Purchaser) to carry
out the transactions contemplated by this Agreement.

 

SECTION 5.13             [Intentionally Omitted.]

 

46

 

SECTION 5.14             Rights Agreement; Reorganized
Company Organizational Documents.

 

(a)           Prior to the issuance of the Warrants, the Rights
Agreement shall be amended to provide that (i) the Rights Agreement is
inapplicable to (1) the acquisition by members of the Purchaser Group of the
Warrants and the underlying securities thereof, (2) any antidilution
adjustments to those Warrants pursuant to the Warrant Agreement, (3) any shares
of New Common Stock that a Purchaser or a member of its Purchaser Group may be
deemed to own by no actions of its own and (4) up to an additional amount
totaling 0.714% of the issued and outstanding shares of Common Stock in the
aggregate by the Purchaser Group, (ii) no Purchaser, or any member of the
Purchaser Group, shall be deemed to be an Acquiring Person (as defined in the
Rights Agreement), (iii) neither a Shares Acquisition Date (as defined in the
Rights Agreement) nor a Distribution Date (as defined in the Rights Agreement)
shall be deemed to occur and (iv) the Rights (as defined in the Rights
Agreement) shall not separate from the Common Stock, in each case under (ii),
(iii) and (iv), as a result of the acquisition by members of the Purchaser
Group of the Warrants, the underlying securities thereof and the acquisition of
beneficial ownership of up to an additional amount totaling 0.714% of the
issued and outstanding shares of Common Stock in the aggregate by the Purchaser
Group.

 

(b)           The certificate of incorporation and bylaws of the
Reorganized Company (the “Reorganized Company Organizational Documents”)
shall be in form mutually agreed to by the Company and each Purchaser, provided,
that in the event that the Company and such Purchaser are not able to agree on
such form prior to the Effective Date, the Reorganized Company Organizational
Documents shall be substantially in the same form as the certificate of
incorporation and bylaws of the Company as in existence on the date of this
Agreement (except that the number of authorized shares of capital stock of the
Reorganized Company shall be increased), provided, however, that
(i) the restriction on Beneficial Ownership (as such term is defined in the
certificate of incorporation of the Company) shall be set at 9.9% of the
outstanding capital stock of the Reorganized Company, (ii) the restriction on
Constructive Ownership (as such term is defined in the certificate of
incorporation of the Company) shall be set at 9.9% of the outstanding capital
stock of the Reorganized Company, (iii) there shall not be an exemption from
the restrictions set forth in the foregoing clauses (i) and (ii) for the
current Existing Holder (as such term is defined in the existing certificate of
incorporation of the Company), (iv) the Reorganized Company shall provide a
waiver from the restrictions set forth in the foregoing clauses (i) and (ii) to
any member of the Purchaser Group if such member provides the Reorganized
Company with a certificate containing the representations and covenants set
forth on Exhibit D and (v) the definition of “Person” shall be revised
so that it does not include a “group” as that term is used for purposes of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

 

(c)           In the event the Reorganized Company adopts a rights plan
analogous to the Rights Agreement on or prior to the Closing, the Plan shall
provide that (i) the Reorganized Company’s Rights Agreement shall be
inapplicable to this 

 

47

 

Agreement and the transactions contemplated hereby,
(ii) no Purchaser, nor any other member of its Purchaser Group, shall be deemed
to be an Acquiring Person (as defined in the Rights Agreement) whether in
connection with the acquisition of Shares, New Warrants, shares issuable upon
exercise of the New Warrants or otherwise, (iii) neither a Shares Acquisition
Date (as defined in the Rights Agreement) nor a Distribution Date (as defined
in the Rights Agreement) shall be deemed to occur and (iv) the Rights (as
defined in the Rights Agreement) will not separate from the New Common Stock,
in each case under (ii), (iii) and (iv), as a result of the execution, delivery
or performance of this Agreement, the consummation of the transactions
contemplated hereby including the acquisition of shares of New Common Stock by
any Purchaser or other member of the Purchaser Group after the date hereof as
otherwise permitted by this Agreement, the New Warrants or as otherwise
contemplated by the Non-Control Agreement.

 

(d)           In the event GGO adopts a rights plan analogous to the
Rights Agreement on or prior to the Closing, the Plan shall provide that (i)
GGO’s Rights Agreement shall be inapplicable to this Agreement and the
transactions contemplated hereby, (ii) no Purchaser, nor any other member of
its Purchaser Group, shall be deemed to be an Acquiring Person (as defined in
the Rights Agreement) whether in connection with the acquisition of shares of
GGO Common Stock or GGO Warrants or the shares issuable upon exercise of the
GGO Warrants, (iii) neither a Shares Acquisition Date (as defined in the Rights
Agreement) nor a Distribution Date (as defined in the Rights Agreement) shall
be deemed to occur and (iv) the Rights (as defined in the Rights Agreement)
will not separate from the GGO Common Stock, in each case under (ii), (iii) and
(iv), as a result of the execution, delivery or performance of this Agreement,
or the consummation of the transactions contemplated hereby including the
acquisition of shares of GGO Common Stock by any Purchaser or other member of
the Purchaser Group after the date hereof as otherwise permitted by this
Agreement, the GGO Warrants or as otherwise contemplated by the GGO Non-Control
Agreement.

 

(e)           Newco (as defined in Exhibit B) will be formed by
the Operating Partnership solely for the purpose of engaging in the
transactions contemplated by this Agreement, including Exhibit B  and Capital Raising Activities permitted
pursuant to this Agreement.  Prior to the
Closing, Newco will not engage in any business activity, nor conduct its
operations, other than as contemplated by this Agreement (which, for greater
certainty, shall include Capital Raising Activities permitted pursuant to this
Agreement).

 

SECTION 5.15             Stockholder Approval.  For so long as any Purchaser has Subscription
Rights as contemplated by Section 5.9(a) in connection with the
expiration of the five (5) year period referenced in Section 3.2(c), the
Company shall put up for a stockholder vote at the immediately prior annual
meeting of its stockholders, and include in its proxy statement distributed to
such stockholders in connection with such annual meeting, approval of such
Purchaser’s Subscription Rights for the maximum period permitted by the
NYSE.  The Plan shall provide that GGO
shall, for the benefit of each Purchaser, to the extent required by any U.S.
national securities exchange upon which shares of GGO Common Stock are listed,
for so long as any Purchaser has subscription rights as contemplated by Section
5.9(b), put up for a stockholder vote at the annual 

 

48

 

meeting of its stockholders, and include in its
proxy statement distributed to such stockholders in connection with such annual
meeting, approval of such Purchaser’s subscription rights for the maximum
period permitted by the rules of such U.S. national securities exchange.

 

SECTION 5.16             Closing Date Net Debt.

 

(a)           The Company shall deliver to each Purchaser a schedule
(the “Preliminary Closing Date Net Debt Schedule”) on or before the
first Business Day that is five calendar days following approval of the Disclosure
Statement, that: (i) sets forth the Company’s good faith estimate for each of
the three components of the Closing Date Net Debt W/O Reinstatement Adjustment
and Permitted Claims Amounts along with a reasonably detailed explanation and
calculation of each such component and (ii) discloses the Company’s good faith
estimate of the Closing Date Net Debt W/O Reinstatement Adjustment and
Permitted Claims Amounts and GGO Setup Costs.

 

(b)           Each Purchaser shall review the Preliminary Closing Date
Net Debt Schedule during the Preliminary Closing Date Net Debt Review Period,
during which time the Company shall allow such Purchaser reasonable access to
all non-privileged and non-work product documents or records or personnel used
in the preparation of the Preliminary Closing Date Net Debt Schedule.  On or prior to the Preliminary Closing Date
Net Debt Review Deadline, any Purchaser may deliver to the Company a notice
(the “Dispute Notice”) listing those items on the Preliminary Closing
Date Net Debt Schedule to which such Purchaser takes exception, which Dispute
Notice shall (i) specifically identify such items, and provide a reasonably
detailed explanation of the basis upon which such Purchaser has delivered such
list, (ii) set forth the amount of Closing Date Net Debt W/O Reinstatement
Adjustment and Permitted Claims Amounts that such Purchaser has calculated
based on the information contained in the Preliminary Closing Date Net Debt
Schedule, and (iii) specifically identify such Purchaser’s proposed adjustment(s).  If a Purchaser timely provides the Company
with a Dispute Notice, then such Purchaser and the Company shall, within ten
(10) days following receipt of such Dispute Notice by the Company (the “Resolution
Period”), attempt to resolve their differences with respect to the items
specified in the Dispute Notice (the “Disputed Items”).  If a Purchaser and the Company do not resolve
all Disputed Items by the end of the Resolution Period, then all Disputed Items
remaining in dispute shall be submitted to the Bankruptcy Court for resolution
at or concurrent with the Confirmation Hearing. 
The Bankruptcy Court shall consider only those Disputed Items that such
Purchaser, on the one hand, and the Company, on the other hand, were unable to
resolve.  All other matters shall be
deemed to have been agreed upon by such Purchaser and the Company.  If a Purchaser does not timely deliver a
Dispute Notice, then such Purchaser shall be deemed to have accepted and agreed
to the Preliminary Closing Date Net Debt Schedule and to have waived any right
to dispute the matters set forth therein.

 

(c)           The Company shall deliver to each Purchaser a draft of the
Conclusive Net Debt Adjustment Statement no later than 15 calendar days prior
to the Effective Date.  Each Purchaser
shall be afforded an opportunity to review the 

 

49

 

Conclusive Net Debt Adjustment Statement and
reasonable access to all non-privileged and non-work product documents or
records or personnel used in the preparation of such statement.  On or prior to close of business on the 7th
calendar day following receipt of the Conclusive Net Debt Adjustment Statement,
any Purchaser may deliver to the Company a notice (the “CNDAS Dispute Notice”)
listing those items to which such Purchaser takes exception, which CNDAS
Dispute Notice shall (i) specifically identify such items, and provide a
reasonably detailed explanation of the basis upon which such Purchaser has
delivered such list, (ii) set forth the alternative amounts that such Purchaser
has calculated based on the information contained in the Conclusive Net Debt
Adjustment Statement, and (iii) specifically identify such Purchaser’s proposed
adjustment(s).  If a Purchaser timely
provides the Company with a CNDAS Dispute Notice, then such Purchaser and the
Company shall attempt to resolve the items specified in the CNDAS Dispute
Notice (the “CNDAS Disputed Items”) consensually.  If such Purchaser and the Company do not
resolve all CNDAS Disputed Items prior to the Effective Date, then for purposes
of Closing and subject to subsequent adjustment consistent with the Bankruptcy
Court’s ruling, the highest number shall be used for purposes of any
calculations set forth on the Conclusive Net Debt Adjustment Statement.  Within 10 days after Closing, the Company
shall file a motion for resolution by the Bankruptcy Court.  The Purchasers and the Company agree to seek
expedited consideration of any such dispute. 
The dispute submitted to the Bankruptcy Court shall be limited to only
those CNDAS Disputed Items that a Purchaser, on the one hand, and the Company,
on the other hand, were unable to resolve. 
All other matters shall be deemed to have been agreed upon by the
Purchasers and the Company.  If a
Purchaser does not timely deliver a CNDAS Dispute Notice, then such Purchaser
shall be deemed to have accepted and agreed to the Conclusive Net Debt
Adjustment Statement and to have waived any right to dispute the matters set
forth therein.  To the extent that one or
more CNDAS Disputed Items must be submitted to the Bankruptcy Court for
adjudication, the Purchasers and the Company agree that this should not delay
the Effective Date or the Closing Date. 
Following adjudication of the dispute, appropriate adjustments shall be
made to the Conclusive Net Debt Adjustment Statement, the GGO Promissory Note
and the other applicable documentation to put all parties in the same economic
position as if the corrected Conclusive Net Debt Adjustment Statement governed
at Closing.

 

(d)           It is the intention of the parties that any Reserve should
not alter the intended allocation of value between GGO and the Company as
Claims are resolved over time. 
Accordingly, the Plan shall provide that, if a GGO Promissory Note is
required to be issued at Closing and there is a Reserve Surplus Amount as of
the end of any fiscal quarter prior to the maturity of the GGO Promissory Note,
then the principal amount of the GGO Promissory Note shall be reduced, but not
below zero, by (i) if and to the extent that such Reserve Surplus Amount as of
such date is less than or equal to the Net Debt Surplus Amount, 80% of the
Reserve Surplus Amount, and otherwise (ii) 100% of an amount equal to the
Reserve Surplus Amount; provided, however, that because this calculation may be
undertaken on a periodic basis, for purposes of clauses (i) and (ii), no
portion of the Reserve Surplus Amount shall be utilized to reduce the amount of
the GGO 

 

50

 

Promissory Note if it has been previously utilized
for such purpose.  In the event that any
party requests an equitable adjustment to this formula, the other parties shall
consider the request in good faith.

 

(e)           The Plan shall provide that, if there is an Offering
Premium, the principal amount of the GGO Promissory Note shall be reduced (but
not below zero) by 80% of the aggregate Offering Premium on the 30th day
following the Effective Date and from time to time thereafter upon receipt of
Offering Premium until the last to occur of (x)
45 days after the Effective Date, (y) the Settlement Date, if applicable, and (z)
the Bridge Note Maturity Date, if applicable.

 

(f)            The Plan and the agreements relating to the GGO Share
Distribution shall provide that from and after the Closing, the Company shall
indemnify GGO and its Subsidiaries from and against 93.75% of any and all
losses, claims, damages, liabilities and reasonable expenses to which GGO and
its Subsidiaries may become subject, in each case solely to the extent directly
attributable to MPC Taxes actually paid at or after the Effective Date; provided,
that in no event shall the Company be required to make any indemnification
payment hereunder to the extent such payment would result in aggregate payments
under this Section 5.16(f) that would exceed the lower of (i)
$303,750,000 and (ii) the then effective Excess Surplus Amount (the “Indemnity
Cap”). The Plan shall provide that if GGO or its Affiliates receives any
refund or realizes any reduction of its Tax liability in respect of the MPC
Assets for which it has received a payment or realized a benefit pursuant to
this Agreement, GGO shall pay an amount equal to such refund or reduction in
Tax liability (less any costs or Taxes incurred with respect to the receipt
thereof) to the Reorganized Company within ten (10) Business Days of the
receipt or realization thereof.

 

(g)           If GGO is obligated to pay MPC Taxes with respect to the
tax year 2010 and the Company is not then obligated to indemnify GGO as a
consequence of the Indemnity Cap, then solely with respect to such payments,
the Company shall pay such amount of MPC Taxes and the principal amount of the
GGO Promissory Note shall be increased by the amount of such payment and if at
such time no GGO Promissory Note is outstanding, on the date of any such
payment, GGO shall issue in favor of the Company a promissory note in the
aggregate principal amount of such payment on the same terms as the GGO
Promissory Note.

 

51

 

ARTICLE VI

 

ADDITIONAL COVENANTS OF
PURCHASER

 

SECTION 6.1               Information.  From and after the date of this Agreement
until the earlier to occur of the Closing Date and the termination of this
Agreement, each Purchaser agrees to provide the Debtors with such information
as the Debtors reasonably request regarding such Purchaser for inclusion in the
Disclosure Statement as necessary for the Disclosure Statement to contain
adequate information for purposes of Section 1125 of the Bankruptcy Code.

 

SECTION 6.2               Purchaser Efforts.  Each Purchaser shall use its reasonable best
efforts to obtain all material permits, consents, orders, approvals, waivers,
authorizations or other permissions or actions required for the consummation of
the transactions contemplated by this Agreement from, and shall have given all
necessary notices to, all Governmental Entities necessary to satisfy the
condition in Section 8.1(b) (provided, however, that such
Purchaser shall not be required to pay or cause payment of any fees or make any
financial accommodations to obtain any such consent, approval, waiver or other
permission, except filing fees as required), and provide to such Governmental
Entities all such information as may be necessary or reasonably requested
relating to the transactions contemplated hereby.

 

SECTION 6.3               Plan Support.  From and after the date of the Approval Order
until the earliest to occur of (i) the Effective Date, (ii) the termination of
this Agreement and (iii) the date the Company or any Subsidiary of the Company
makes a public announcement, enters into an agreement or files any pleading or
document with the Bankruptcy Court, in each case, evidencing its intention to
support any Competing Transaction, or the Company or any Subsidiary of the
Company enters into a Competing Transaction (such date, the “Unrestricted
Date”), each Purchaser agrees (unless otherwise consented to by the
Company) (provided that (x) the Company is not in material breach of
this Agreement and (y) the terms of the Plan are and remain consistent with the
Plan Summary Term Sheet and this Agreement, and are otherwise in form and
substance satisfactory to each Purchaser) to (and shall use reasonable best
efforts to cause its Affiliates to):

 

(a)           Not pursue, propose, support, vote to accept or encourage
the pursuit, proposal or support of, any Chapter 11 plan, or other
restructuring or reorganization for the Company, or any Subsidiary of the
Company, that is not consistent with the Plan;

 

(b)           Not, nor encourage any other Person to, interfere with,
delay, impede, appeal or take any other negative action, directly or
indirectly, in any respect regarding acceptance or implementation of the Plan;
and

 

(c)           Not commence any proceeding, or prosecute any objection to
oppose or object to the Plan or to the Disclosure Statement and not to take any
action that 

 

52

 

would delay approval or confirmation, as applicable,
of the Disclosure Statement and the Plan, in each case (i) except as intended
to ensure the consistency of the Disclosure Statement and the Plan with the
terms of this Agreement and the rights and obligations of the parties thereto
and (ii) without limiting any rights any Purchaser may have to terminate this
Agreement pursuant to Section 11.1(b) (including Section 11.1(b)(ix))
hereof.

 

SECTION 6.4               Transfer Restrictions.  Each Purchaser covenants and agrees that the
Shares and the GGO Shares (and shares issuable upon exercise of Warrants, New
Warrants and GGO Warrants) shall be disposed of only pursuant to an effective
registration statement under the Securities Act or pursuant to an available
exemption from the registration requirements of the Securities Act, and in
compliance with any applicable state securities Laws.  Each Purchaser agrees to the imprinting, so
long as is required by this Section 6.4, of the following legend on any
certificate evidencing the Shares or GGO Shares (and shares issuable upon
exercise of Warrants, New Warrants and GGO Warrants):

 

THE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED
(THE “ACT”) OR UNDER ANY STATE SECURITIES LAWS (“BLUE SKY”) OR
THE SECURITIES LAWS OF ANY OTHER RELEVANT JURISDICTION.  THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE. 
THE SHARES MAY NOT BE SOLD, ASSIGNED, MORTGAGED, PLEDGED, ENCUMBERED,
HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS EITHER (I) A
REGISTRATION STATEMENT WITH RESPECT TO THE SHARES IS EFFECTIVE UNDER THE ACT
AND APPLICABLE BLUE SKY LAWS AND THE SECURITIES LAWS OF ANY OTHER RELEVANT
JURISDICTION ARE COMPLIED WITH OR (II) UNLESS WAIVED BY THE ISSUER, THE ISSUER
RECEIVES AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE ISSUER THAT NO
VIOLATION OF THE ACT OR OTHER APPLICABLE LAWS WILL BE INVOLVED IN SUCH
TRANSACTION.

 

Certificates
evidencing the Shares (and shares issuable upon exercise of Warrants and  New Warrants) shall not be required to
contain such legend (A) while a registration statement covering the resale of
the Shares is effective under the Securities Act, or (B) following any
sale of any such Shares pursuant to Rule 144 of the Exchange Act (“Rule 144”),
or (C) following receipt of a legal opinion of counsel to the applicable
Purchaser that the remaining Shares held by such Purchaser are eligible for
resale without volume limitations or other limitations under Rule 144.  In addition, the Company will agree to the
removal of all legends with respect to shares of New Common Stock deposited
with DTC from time to time in anticipation of sale in accordance with the
volume limitations and other limitations under Rule 144, subject to the
Company’s approval of appropriate procedures, such approval not to be
unreasonably withheld, conditioned or delayed.

 

53

 

Following
the time at which such legend is no longer required (as provided above) for
certain Shares, the Company shall promptly, following the delivery by the
applicable Purchaser to the Company of a legended certificate representing such
Shares, deliver or cause to be delivered to such Purchaser a certificate representing
such Shares that is free from such legend. 
In the event the above legend is removed from any of the Shares, and
thereafter the effectiveness of a registration statement covering such Shares
is suspended or the Company determines that a supplement or amendment thereto
is required by applicable securities Laws, then the Company may require that
the above legend be placed on any such Shares that cannot then be sold pursuant
to an effective registration statement or under Rule 144 and such Purchaser shall
cooperate in the replacement of such legend. 
Such legend shall thereafter be removed when such Shares may again be
sold pursuant to an effective registration statement or under Rule 144.

 

The
Plan shall provide, in connection with the consummation of the Plan, for GGO to
enter into an agreement with each Purchaser with respect to GGO Shares and GGO
Warrants containing the same terms as provided above in this Section 6.4
but replacing references to (A) “the Company” with GGO, (B) “New Common Stock”
with GGO Common Stock, (C) “Shares” with “GGO Shares” and (D) “Warrants” or
“New Warrants” with GGO Warrants.

 

Each
Purchaser further covenants and agrees not to sell, transfer or dispose of
(each, a “Transfer”) the Warrants or the shares of Common Stock issuable
upon exercise of the Warrants (other than to a member of the Purchaser Group)
prior to the Unrestricted Date, any Shares, New Common Stock or New Warrants in
violation of the Non-Control Agreement or GGO Shares or GGO Warrants in
violation of the GGO Non-Control Agreement.

 

For
the avoidance of doubt, the Purchaser Group’s rights to designate for
nomination the Purchaser Board Designee and Purchaser GGO Board Designees
pursuant to Section 5.10 and Subscription Rights pursuant to Section
5.9 may not be Transferred to a Person that is not a member of the
Purchaser Group.

 

The
Plan shall provide that in addition to the covenants provided in the
Non-Control Agreement, at the time of an underwritten offering of equity or
convertible securities by the Company on or prior to the 30th day after the
Effective Date, each Purchaser and the other members of the Purchaser Group
will enter into a customary ‘lock-up’ agreement with respect to third-party
sales of New Common Stock for a period of time not to exceed 120 days to the
extent reasonably requested by the managing underwriter in connection with such
offering.

 

SECTION 6.5               [Intentionally Omitted.]

 

SECTION 6.6               REIT Representations and
Covenants.  At such times as shall be
reasonably requested by the Company, for so long as any Purchaser (or, to the
extent applicable, its Affiliates, members or Affiliates of members)
“beneficially owns” or “constructively owns” (as such terms are defined in the
certificate of incorporation of the 

 

54

 

Company) in excess of the relevant ownership limit
set forth in the certificate of incorporation of the Company of the outstanding
Common Stock or New Common Stock, such Purchaser shall (and, to the extent
applicable, cause its Affiliates, members or Affiliates of members to) use
reasonable best efforts to provide the Company with customary representations
and covenants, in the form attached hereto as Exhibit D which shall,
among other things, enable the Company to waive Purchaser from the ownership
limit set forth in the certificate of incorporation of the Company and ensure
that the Company can appropriately monitor any “related party rent” issues
raised by the Warrants and the purchase of the Shares by such Purchaser, it
being understood that Purchaser’s Affiliates, members or Affiliates of members
shall be required to provide such representations and covenants only if such
Person “beneficially owns” or “constructively owns” (as such terms are defined
in the certificate of incorporation of the Company) Common Stock or New Common
Stock in excess of the relevant ownership limit set forth in the certificate of
incorporation of the Company or any stock or other equity interest owned by
such Person in a tenant of the Company would be treated as constructively owned
by the Company.

 

SECTION 6.7               Non-Control Agreement.  At or prior to the Closing, each Purchaser
shall enter into (1) the Non-Control Agreement with the Company and (2) the GGO
Non-Control Agreement with GGO.

 

SECTION 6.8               [Intentionally Omitted.]

 

SECTION 6.9               Additional Backstops.

 

(a)           The Company may, at its option, include in the Plan an
offering (the “GGP Backstop Rights Offering”) to its then-existing
holders of Common Stock of rights to purchase New Common Stock on the Effective
Date in an amount sufficient to yield to the Company aggregate net proceeds on
the Effective Date of up to $500,000,000 or such lesser amount as the Company
may determine (the “GGP Backstop Rights Offering Amount”).  In connection with the GGP Backstop Rights
Offering:

 

(i)                                     Each Purchaser
and the Brookfield Investor (together with the Purchaser, the “Backstop
Investors”) and the Company shall appoint a mutually-acceptable and
internationally-recognized investment bank to act as bookrunning dealer-manager
for the GGP Backstop Rights Offering (the “Dealer Manager”) pursuant to
such arrangements as they may mutually agree;

 

(ii)                                  the Dealer
Manager will, no later than the fifth business day in advance of the
commencement of the solicitation of votes on the Plan and offering of rights in
the GGP Backstop Rights Offering (which shall not be longer than 60 days),
recommend in writing to the Backstop Investors and the Company the number of
shares of New Common 

 

55

 

Stock that may be purchased
for each share of Common Stock , the subscription price of such purchase and
the other terms for the rights offering that the Dealer Manager determines are
reasonably likely to yield committed proceeds to the Company at the Effective
Date equal to the GGP Backstop Rights Offering Amount (it being understood that
the Dealer Manager will have no liability if it is later determined that its
good faith determination was erroneous);

 

(iii)                               the Backstop
Investors agree, severally but not jointly and severally, to subscribe, or
cause one or more designees to subscribe, for New Common Stock on a pro rata
basis to the extent rights are declined by holders of Common Stock, subject to
the subscription rights among the Backstop Investors set forth in clause (iv);

 

(iv)                              the Backstop
Investors will have subscription rights in any such offering allowing them to
maintain their respective proportionate pro forma New Common Stock-equivalent
interests on a Fully Diluted Basis with the effect that the Backstop Investors
will be assured of the ability to acquire such number of shares of New Common
Stock as would have been available to them pursuant to Section 5.9 had
the GGP Backstop Rights Offering been made after the Closing;

 

(v)                                 the Backstop
Investors will receive aggregate compensation in the form of New Common Stock
(whether or not the backstop commitments are utilized) with a value equal to
three percent (3%) of the GGP Backstop Rights Offering Amount; and

 

(vi)                              the amount of
New Common Stock to be purchased pursuant to the GGP Backstop Rights Offering
will be subject to reduction to the extent that either (A) the Company Board
determines in its business judgment after consultation with the Backstop
Investors that it has sufficient liquidity and working capital available to it
in light of circumstances at the time and the costs and benefits to the Company
of consummation of the GGP Backstop Rights Offering or (B) the Backstop
Investors have agreed that they will provide to the Company, in lieu of the GGP
Backstop Rights Offering the Bridge Securities contemplated in clause (b)
below.

 

56

 

(b)           The Company shall give each Backstop Investor written
notice of its estimate of the amount the Backstop Investors will be required to
fund pursuant to Section 6.9(a) no later than six (6) Business Days
prior to the Closing Date.  If each
Backstop Investor agrees, the Backstop Investors shall have two (2) Business
Days from the date of receipt of such notice to notify the Company in writing
that they intend to elect to purchase from the Company in lieu of all or part
of the proceeds to be provided by the GGP Backstop Rights Offering its pro rata
portion of senior subordinated unsecured notes and/or preferred stock instruments
(at the election of the Backstop Investors) on market terms except as provided
below (the “Bridge Securities”). 
The Bridge Securities would have a final maturity date, in the case of a
note, and a mandatory redemption date, in the case of preferred stock, on the
270th day after the Effective Date, would not require any mandatory interim
cash distributions except as contemplated in (i) below, and would yield to the
Company on the Closing Date cash proceeds (net of OID) of at least the proceeds
from the GGP Backstop Rights Offering that such Bridge Securities are intended
to replace.  The Bridge Securities would
be subordinated in right of payment to any New Debt, would have market coupon
and fees, would allow for any interest due prior to maturity to be “paid in
kind” (rather than paid in cash) at the election of the Company, would be
prepayable, without any prepayment penalty or prepayment premium, on a pro rata
basis at any time, and would otherwise be on market terms (determined such that
fair value of the Bridge Securities as of the Effective Date is equal to par
minus OID).

 

If
the GGP Backstop Rights Offering is completed or the Bridge Securities are
issued:

 

(i)            unless the Backstop Investors otherwise agree, the Bridge
Securities shall be subject to mandatory prepayment on a pro rata basis out of
the proceeds of any equity or debt securities offered or sold by the Company at
any time the Bridge Securities are outstanding (other than the New Common Stock
sold to the Backstop Investors, any New Common Stock sold in the GGP Backstop
Rights Offering and the New Debt); and

 

(ii)           if the Bridge Securities are issued and not repaid on or
before the date that is thirty (30) days following the Effective Date, the
Company shall conduct a rights offering in an amount equal to the outstanding
amount due with respect to the Bridge Securities and with a pro rata backstop
by each applicable Backstop Investor on substantially the same procedure and
terms provided in clause (a) above, with such rights offering to have a
subscription period of not more than 30 days that ends no later than the 10th
day prior to the final maturity date or mandatory redemption of the Bridge
Securities.

 

(c)           If the Company requests the Initial Investors, in writing,
at any time prior to fifteen (15) days before the commencement of solicitation
of acceptances of the Plan, each Initial Investor agrees that it shall,
severally but not jointly and severally, provide or cause a designee to provide
its pro rata share of a backstop for new bonds, loans or preferred stock (as
determined by the Initial Investor) in an aggregate amount 

 

57

 

equal to $1,500,000,000 less the Reinstated Amounts,
at a market rate and market commitment fees, and otherwise on terms and
conditions to be mutually agreed among the Initial Investors and the
Company.  Any such notice shall be
revocable by the Company in its sole discretion.  The new bonds, loans or preferred stock would
require no mandatory interim cash principal payments prior to the third
anniversary of issuance (unless funded from committed junior indebtedness or
junior preferred stock), and would yield proceeds to the Company on the Closing
Date net of OID of at least $1,500,000,000 less the Reinstated Amounts.  Any Initial Investor may at any time designate
in writing one or more financial institutions with a corporate investment grade
credit rating (from S&P or Moody’s) to make a substantially similar
undertaking as that provided herein and, upon the receipt of such an
undertaking by the Company in form and substance reasonably satisfactory to the
Company, such Initial Investor shall be released from its obligations under its
applicable Investment Agreement.

 

(d)           For the purposes of Section 6.9(a) and Section
6.9(b), the “pro rata share” or “pro rata basis” of each Backstop Investor
shall be determined in accordance with the maximum number of shares of New
Common Stock each Backstop Investor has committed to purchase at Closing
pursuant to the Brookfield Agreement or this Agreement, as applicable, as of
the date hereof, in relation to the aggregate maximum number of shares of New
Common Stock all Backstop Investors have committed to purchase at Closing
pursuant to the Brookfield Agreement or this Agreement, as applicable, as of
the date hereof.  For the purposes of Section
6.9(c), the “pro rata share” or “pro rata basis” of each Initial Investor
shall be determined in accordance with the maximum number of shares of New
Common Stock each Initial Investor has committed to purchase at Closing
pursuant to its Investment Agreement as of the date hereof, but excluding any
shares of New Common Stock the Backstop Investors have committed to purchase
pursuant to this Section 6.9.

 

(e)           Section 6.9(a) and Section 6.9(b) shall terminate
automatically without any action by any party upon entry of an order of the
Bankruptcy Court approving the termination fee and expense reimbursement set
forth in that certain Stock Purchase Agreement, dated as of July 8, 2010, by
and between the Company and Teacher Retirement System of Texas, as to which
order the time to appeal or petition for writ of certiorari shall have expired
or if an appeal shall have been sought, such order shall have been affirmed by
the highest court to which such order was appealed without modification of such
order.

 

ARTICLE VII

 

CONDITIONS TO THE
OBLIGATIONS OF PURCHASER

 

SECTION 7.1               Conditions to the Obligations
of Purchaser.  The obligation of each
Purchaser to purchase the Shares and the GGO Shares pursuant to this Agreement
on the Closing Date is subject to the satisfaction (or waiver (to the extent
permitted by applicable Law) by such Purchaser) of the following conditions as
of the Closing Date:

 

58

 

(a)           No Injunction. 
No judgment, injunction, decree or other legal restraint shall prohibit
the consummation of the Plan or the transactions contemplated by this
Agreement.

 

(b)           Regulatory Approvals; Consents.  All permits, consents, orders, approvals, waivers,
authorizations or other permissions or actions of third parties and
Governmental Entities required for the consummation of the transactions
contemplated by this Agreement and the Plan shall have been made or received,
as the case may be, and shall be in full force and effect, except for those
permits, consents, orders, approvals, waivers, authorizations or other
permissions or actions the failure of which to make or receive would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect (it being agreed that any permit, consent, order, approval,
waiver, authorization or other permission or action in respect of any
Identified Asset for which any of the alternatives in Section 2.1(a)
shall have been employed shall be deemed hereunder to have been made or
received, as the case may be, and in full force and effect).

 

(c)           Representations and Warranties and Covenants.  Except for changes permitted or contemplated
by this Agreement or the Plan Summary Term Sheet, each of (i) the
representations and warranties of the Company contained in Section 3.1, Section
3.2, Section 3.3, Section 3.5, Section 3.20(a)(except
for such inaccuracies in Section 3.20(a) caused by sales, purchases or
transfers of assets which have been effected in accordance with, subject to the
limitations contained in, and not otherwise prohibited by, the terms and
conditions in this Agreement, including, without limitation, this Article
VII) and Section 3.23 shall be true and correct at and as of the
Closing Date as if made at and as of the Closing Date (except for
representations and warranties made as of a specific date, which shall be true
and correct only as of such specific date), (ii) the representations and
warranties of the Company contained in Section 3.4 shall be true and
correct (except for de minimis
inaccuracies) at and as of the Closing Date as if made at and as of the Closing
Date (except for representations and warranties made as of a specific date,
which shall be true and correct (except for de minimis
inaccuracies) only as of such specific date) and (iii) the other
representations and warranties of the Company contained in this Agreement,
disregarding all qualifications and exceptions contained therein relating to
“materiality” or “Material Adverse Effect”, shall be true and correct at and as
of the Closing Date as if made at and as of the Closing Date (except for
representations and warranties made as of a specified date, which shall be true
and correct only as of the specified date), except for such failures to be true
and correct that, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect (it being agreed that the condition
in this subclause (iii) as it relates to undisclosed liabilities of the Company
and its Subsidiaries comprised of Indebtedness shall be deemed to be satisfied
if the condition in Section 7.1(p) is satisfied.  In
addition, for purposes of this Section 7.1(c) as it relates to Section
3.20(b) of this Agreement, the reference to “DIP Loan” in clause (i) of
such Section 3.20(b) shall be deemed to refer to that certain Senior
Secured Debtor in Possession Credit, Security and Guaranty Agreement, dated as
of July 23, 2010, by and among the Company, GGP Limited 

 

59

 

Partnership, the lenders
party thereto, Barclays Capital, as the Sole Arranger, Barclays Bank PLC, as
the Administrative Agent and Collateral Agent, and the guarantors party thereto
(the “New DIP Agreement”).  The Company shall have
complied in all material respects with all of its obligations under this
Agreement, provided that with respect to its obligations under Section 5.4,
Section 5.14(b) (to the extent applicable) and Section 5.14(c)
the Company shall have complied therewith in all respects.  The Company shall have provided to each
Purchaser a certificate delivered by an executive officer of the Company,
acting in his or her official capacity on behalf of the Company, to the effect
that the conditions in this clause (c) and the immediately following clause (d)
have been satisfied as of the Closing Date and each Purchaser shall have
received such other evidence of the conditions set forth in this Section 7.1
as it shall reasonably request.

 

(d)           No Material Adverse Effect.  Since the date of this Agreement, there shall
not have occurred any event, fact or circumstance, that has had or would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

(e)           Plan and Confirmation Order.  The Plan, in form and substance satisfactory
to each Purchaser, shall have been confirmed by the Bankruptcy Court by order
in form and substance satisfactory to each Purchaser (the “Confirmation
Order”), which Confirmation Order shall be in full force and effect (without
waiver of the 14-day period set forth in Bankruptcy Rule 3020(e)) as of the
Effective Date and shall not be subject to a stay of effectiveness.  Notwithstanding anything to the contrary in
the Plan Term Sheet, the Plan shall have allowed the Specified Debt in an
amount no less than par plus unpaid pre-petition and post-petition interest
accrued at the stated non-default rate (or contract rate in the case of Class
M).

 

(f)            Disclosure Statement.  The Disclosure Statement, in form and
substance acceptable to each Purchaser, shall have been approved by order of
the Bankruptcy Court in form and substance satisfactory to each Purchaser (the
“Disclosure Statement Order”).

 

(g)           Conditions to Confirmation.  The conditions to confirmation and the
conditions to the Effective Date of the Plan, including the consummation of the
transactions contemplated by Exhibit B, shall have been satisfied or
waived in accordance with the Plan and the Reorganized Company Organizational
Documents as set forth in the Plan shall be in effect.

 

(h)           GGO.  The GGO
Share Distribution and the issuance by GGO of the GGO Warrants shall have
occurred in accordance with this Agreement. In connection with the
implementation of the GGO Share Distribution, (i) the Company shall have
provided each Purchaser with reasonable access to all relevant information and
consulted and cooperated in good faith with each Purchaser and the GGO
Representative with respect to the contribution of the Identified Assets to GGO
in accordance with Section 2.1(a), and (ii) all actions taken by the
Company and its Subsidiaries related thereto and all documentation related to
the formation and organization of GGO, the implementation 

 

60

 

of the GGO Share Distribution, to separate the
business of the Company and GGO and other intercompany arrangements between the
Company and GGO, in each case, shall be reasonably satisfactory to each
Purchaser and shall be in full force and effect.

 

(i)            GGO Common Stock. 
GGO shall not have issued and outstanding on a Fully Diluted Basis
immediately following the Closing more than the GGO Common Share Amount of
shares of GGO Common Stock (plus (A) an aggregate 5,250,000 shares issuable to
the respective Initial Investors pursuant to the respective Investment
Agreements, (B) 2,000,000 shares of GGO Common Stock issuable upon exercise of
the GGO Warrants, (C) 6,000,000 shares of GGO Common Stock issuable upon the
exercise of warrants that may be issued to the other Initial Investors pursuant
to the other Investment Agreements).

 

(j)            Valid Issuance. 
The Shares, Warrants, New Warrants and GGO Warrants and the GGO Shares
shall be validly issued to each Purchaser (against payment therefor in the case
of the Shares and the GGO Shares).  The
Company and GGO shall have executed and delivered the warrant agreement for
each of the New Warrants and the GGO Warrants, together with such other
customary documentation as each Purchaser may reasonably request in connection
with such issuance; each warrant agreement shall be in full force and effect
and neither the Company nor GGO shall be in breach of any representation,
warranty, covenant or agreement thereunder in any material respect.

 

(k)           No Legal Impediment to Issuance.  No action shall have been taken and no
statute, rule, regulation or order shall have been enacted, adopted or issued
by any federal, state or foreign governmental or regulatory authority that
prohibits the issuance or sale of, pursuant to this Agreement, the Shares, the
issuance of Warrants, New Warrants, GGO Shares, GGO Warrants, the issuance of
New Common Stock upon exercise of the New Warrants or the issuance of GGO
Common Stock upon exercise of the GGO Warrants; and no injunction or order of
any federal, state or foreign court shall have been issued that prohibits the
issuance or sale, pursuant to this Agreement, of the Shares, the GGO Shares,
the Warrants, New Warrants, GGO Warrants, the issuance of New Common Stock upon
exercise of the New Warrants or the issuance of GGO Common Stock upon exercise
of the GGO Warrants.

 

(l)            Registration Rights.  The Company shall have filed with the SEC and
the SEC shall have declared effective, as of Closing, to the extent permitted
by applicable SEC rules, a shelf registration statement on Form S-1 or Form
S-11, as applicable, covering the resale by each Purchaser and member of the
Purchaser Group of the Shares, any securities issued pursuant to Section
6.9(c) and the New Common Stock issuable upon exercise of the New Warrants,
containing a plan of distribution reasonably satisfactory to each Purchaser. In
addition, each of the Company and GGO shall have entered into registration
rights agreements with each Purchaser with respect to all registrable
securities issued to or held by members of the Purchaser Group from time to
time in a manner that permits the registered offering of securities pursuant to
such methods of sale as a Purchaser may reasonably request from time to
time.  Each registration rights agreement
shall provide for (i) an unlimited number of shelf 

 

61

 

registration demands on Form S-3 to the extent that
the Company or GGO, as applicable, is then permitted to file a registration
statement on Form S-3, (ii) if the Company or GGO, as applicable, is not
eligible to use Form S-3, the filing by the Company or GGO, as applicable, of a
registration statement on Form S-1 or Form S-11, as applicable, and the Company
or GGO, as applicable, using its reasonable best efforts to keep such
registration statement continuously effective; (iii) piggyback rights not less
favorable than those provided in the Warrant Agreement; (iv) with respect to
the Company, at least three underwritten offerings during the term of the
registration rights agreement, but not more than one underwritten offering in
any 12-month period and, with respect to GGO, at least three underwritten
offerings during the term of the registration rights agreement, but not more
than one in any 12-month period; (v) “black-out” periods not less favorable
than those provided in the Warrant Agreement; (vi) “lock-up” agreements by the
Company or GGO, as applicable, to the extent requested by the managing
underwriter in any underwritten public offering requested by a Purchaser,
consistent with those provided in the Warrant Agreement (it being understood
that the registration rights agreement will include procedures reasonably
acceptable to such Purchaser and the Company designed to ensure that the total
number of days that the Company or GGO, as applicable, may be subject to a
lock-up shall not, in the aggregate after taking into account any applicable
lock-up periods resulting from registration rights agreements between the
Company or GGO, as applicable, and the other Initial Investors exceed 120 days
in any 365-day period; (vii) to the extent that the Purchasers and the members
of the Purchaser Group are Affiliates of the Company or GGO, as applicable, at
the time of an underwritten public offering by the Company or GGO, as
applicable, each Purchaser and the other members of the Purchaser Group will
agree to a 60-day customary lock up to the extent requested by the managing
underwriter; and (viii) other terms and conditions reasonably acceptable to
each Purchaser.  The registration rights
agreement shall be in full force and effect and neither the Company nor GGO
shall be in breach of any representation, warranty, covenant or agreement
thereunder in any material respect.

 

(m)          Listing.  The
Shares shall be authorized for listing on the NYSE, subject to official notice
of issuance, and the shares of New Common Stock issuable upon exercise of the
New Warrants shall be eligible for listing on the NYSE.  The GGO Shares shall be authorized for
listing on a U.S. national securities exchange, subject to official notice of
issuance, and the shares of GGO Common Stock issuable upon exercise of the GGO
Warrants shall be eligible for listing on a U.S. national securities exchange.

 

(n)           Liquidity. 
The Company shall have, on the Effective Date and after giving effect to
the use of proceeds from Capital Raising Activities permitted under this
Agreement and the issuance of the Shares, and the payment and/or reserve for
all allowed and disputed claims under the Plan, transaction fees and other
amounts required to be paid in cash or Shares under the Plan as contemplated by
the Plan Summary Term Sheet, an aggregate amount of not less than $350,000,000
of Proportionally Consolidated Unrestricted Cash (the “Liquidity Target”)
plus the net proceeds of the Additional Financings and the aggregate principal
amount of the Anticipated Debt Paydowns (or such higher number as may be agreed
to by each Purchaser and the Company) plus the 

 

62

 

excess, if any, of (A) the aggregate principal amount
of New Debt and the Reinstated Amounts over (B) $1,500,000,000.

 

(o)           Board of Directors. 
Each of the persons designated by PSCM pursuant to Section 5.10
shall have been duly appointed to each of the Company Board and the GGO Board.

 

(p)           Debt of the Company.  Immediately following the Closing after
giving effect to the Plan, the aggregate outstanding Proportionally
Consolidated Debt shall not exceed $22,250,000,000 in the aggregate minus (i)
the amount of Proportionally Consolidated Debt attributable to assets sold,
returned, abandoned, conveyed, transferred or otherwise divested during the
period between the date of this Agreement through the Closing and minus (ii)
the excess, if any, of $1,500,000,000 over the aggregate principal amount of
new Unsecured Indebtedness incurred after the date of this Agreement and on or
prior to the Closing Date for cash (“New Debt”) and the aggregate
principal amount of any Debt under the Rouse Bonds or the Exchangeable Notes
that is reinstated under the Plan (such amounts reinstated, the “Reinstated
Amounts”) minus (iii) the amount of Proportionally Consolidated Debt
attributable to Identified Assets contributed to GGO pursuant to Section
2.1(a), minus (iv) the amount of Proportionally Consolidated Debt
attributable to assets other than Identified Assets contributed to GGO pursuant
to Section 2.1(a) minus (v) the principal and/or liquidation preference
of the TRUPS and the UPREIT Units not reinstated, plus (vi) in the event the
Closing occurs prior to September 30, 2010, the amount of scheduled
amortization on Proportionally Consolidated Debt (other than Corporate Level
Debt) from the Closing Date to September 30, 2010 that otherwise would have
been paid by September 30, 2010, minus (vii) in the event the Closing occurs on
or after September 30, 2010, the amount of actual amortization paid on
Proportionally Consolidated Debt (other than Corporate Level Debt) from
September 30, 2010 to the Closing Date, plus (viii) (A) the excess of the
aggregate principal amount of new Debt incurred to refinance existing Debt in
accordance with Section 7.1(r)(vii) hereof over the principal amount of
the Debt so refinanced and (B) new Debt incurred to finance unencumbered
Company Properties and Non-Controlling Properties after the date of this Agreement
and on or prior to the Closing (such amounts contemplated by clauses (A) and
(B) collectively, the “Additional Financing”) plus (ix) the amount of
other principal paydowns, writedowns and resulting impact on amortization (or
payments in the anticipated amortization schedule with respect to Fashion Show
Mall (Fashion Show Mall LLC), The Shoppes at the Palazzo and Oakwood Shopping
Center (Gretna, LA)) currently anticipated to be made by the Company in
connection with refinancings, or completion of negotiations in respect of its
property level Debt which the Company determines in good faith are not actually
required to be made prior to Closing (“Anticipated Debt Paydowns”) plus
(x) the excess, if any, of (A) the aggregate principal amount of New Debt and
the Reinstated Amounts over (B) $1,500,000,000 plus (xi) the aggregate amount
of the Bridge Notes issued pursuant to Section 1.4 (and the parties
agree that such Bridge Notes shall not be included in the calculation of
Closing Date Net Debt or Closing Date Net Debt W/O Reinstatement Adjustment).

 

63

 

(q)           Outstanding Common Stock.  The number of issued and outstanding shares
of New Common Stock on a Fully Diluted Basis (including the Shares) shall not
exceed the Share Cap Number.  The “Share
Cap Number” means 1,104,683,256 plus the number of shares (if any) issued
to settle or otherwise satisfy Hughes Heirs Obligations, plus up to 65,000,000
shares of New Common Stock issued in Liquidity Equity Issuances, plus
17,142,857 shares of New Common Stock issuable upon the exercise of the New
Warrants, plus the shares of New Common Stock issuable upon the exercise of
those certain warrants issued to the Brookfield Consortium Members pursuant to
the Brookfield Agreement and to the Fairholme Purchasers pursuant to the
Fairholme Agreement, plus the number of shares of Common Stock issued as a
result of the exercise of employee stock options to purchase Common Stock
outstanding on the date hereof, plus, in the event shares of New Common Stock
are issued pursuant to Section 6.9, the difference between (i) the
number of shares of New Common Stock issued to existing holders of Common Stock
and the Backstop Investors, in each case, pursuant to Section 6.9 minus
(ii) 50,000,000 shares of New Common Stock, minus the number of Put Shares
(which shall not be considered Share Equivalents for purposes of this
calculation); provided, that if Indebtedness under the Rouse Bonds or
the Exchangeable Notes is reinstated under the Plan, or the Company shall have
incurred New Debt, or between the date of this Agreement and the Closing Date
the Company shall have sold for cash real property assets outside of the
ordinary course of business (“Asset Sales”), the Share Cap Number shall
be reduced by the quotient (rounded up to the nearest whole number) obtained by
dividing (x) the sum of (a) the lesser of (I) $1,500,000,000 and (II) the sum
of Reinstated Amounts and the net cash proceeds to the Company from the
issuance of New Debt, and (b) the net cash proceeds to the Company from Asset
Sales in excess of $150,000,000 by (y) the Per Share Purchase Price.

 

(r)            Conduct of Business.  The following shall be true in all material
respects as of the Closing Date:

 

Except
as otherwise expressly provided or permitted, or contemplated, by this
Agreement or the Plan Summary Term Sheet (including, without limitation, in
connection with implementing the matters contemplated by Article II
hereof) or any order of the Bankruptcy Court in effect on the date of the Agreement,
during the period from the date of this Agreement to the Closing, the following
actions shall not have been taken without the prior written consent of each
Purchaser (which consent such Purchaser agrees shall not be unreasonably
withheld, conditioned or delayed):

 

(i)                                     the Company
shall not have (A) declared, set aside or paid any dividends on, or made any
other distributions in respect of, any of the Company’s capital stock (other
than dividends required to retain REIT status or to avoid the imposition of
entity level taxes, (B) split, combined or reclassified any of its capital
stock or issued or authorized 

 

64

 

the issuance of any other
securities in respect of, in lieu of or in substitution for its capital stock,
or (C) purchased, redeemed or otherwise acquired (other than as set forth on Section
7.1(r)(i) of the Company Disclosure Letter or pursuant to Company Benefit
Plans) any shares of its capital stock or any rights, warrants or options to acquire
any such shares;

 

(ii)                                  the Company
shall not have amended the Company’s certificate of incorporation or bylaws
other than to increase the authorized shares of capital stock;

 

(iii)                               neither the
Company nor any of its Subsidiaries shall have acquired or agreed to acquire by
merging or consolidating with, or by purchasing a substantial portion of the
stock, or other ownership interests in, or substantial portion of assets of, or
by any other manner, any business or any corporation, partnership, association,
joint venture, limited liability company or other entity or division thereof
except (A) in the ordinary course of business, (B) for transactions with
respect to joint ventures existing on the date hereof valued at less than
$10,000,000 or (C) for transactions valued at less than $10,000,000 in the
aggregate;

 

(iv)                              none of the
Company Properties, Non-Controlling Properties or Identified Assets shall have
been sold or otherwise transferred, except, (A) in the ordinary course of
business, (B) to a wholly owned Subsidiary of the Company (which Subsidiary
shall be subject to the same restrictions under this subsection (iv)), and (C)
for sales or other transfers, the net proceeds of which shall not exceed
$1,000,000,000 in the aggregate, when taken together with all such sales and
other transfers of Company Properties, Non-Controlling Properties and
Identified Assets (the “Sales Cap”); provided that the Sales Cap shall
not apply with respect to sales or transfers of Identified Assets to the extent
the same shall have been consummated in accordance with the express terms and
conditions set forth in Article II hereof;

 

(v)                                 [Intentionally
Omitted;]

 

(vi)                              (vi) none of
the Company or any of its Subsidiaries shall have issued, delivered, granted,
sold or disposed of any Equity Securities (other than (A) issuances of shares
of Common Stock issued pursuant to, and in accordance with, 

 

65

 

Section 7.1(u), but subject
to Section 7.1(q), (B) pursuant to the Equity Exchange, (C) the issuance
of shares pursuant to the exercise of employee stock options issued pursuant to
the Company Option Plans, (D) as set forth on Section 7.1(u) of the
Company Disclosure Letter), or (E) the issuance of shares to existing holders
of Common Stock and the Backstop Investors, in each case, pursuant to Section
6.9);

 

(vii)                           none of the
Company Properties or Identified Assets shall have been mortgaged, or pledged,
nor shall the owner or lessee thereof have granted a lien, mortgage, pledge,
security interest, charge, claim or other Encumbrance relating to debt
obligations of any kind or nature on, or otherwise encumbered, any Company
Property or Identified Assets except in the ordinary course of business
consistent with past practice, other than encumbrances of Company Properties or
Identified Assets of Debtors in connection with (A) a restructuring of existing
indebtedness for borrowed money related to any such Company Property or
Identified Asset with the existing lender(s) thereof or (B) a refinancing of
existing indebtedness for borrowed money related to any Company Property or
Identified Asset in an amount not to exceed $300,000,000 (the “Refinance Cap”),
provided that (x) the Refinance Cap shall not apply to a refinancing of
the existing first lien indebtedness secured by the Fashion Show Mall, (y) in
the event that a refinancing is secured by mortgages, deeds of trust, deeds to
secure debt or indemnity deeds of trust encumbering multiple Company Properties
and Identified Assets, the proceeds of such refinancing shall not exceed an
amount equal to the Refinance Cap multiplied by the number of Company
Properties and Identified Assets so encumbered, and (z) in connection with
refinancing the indebtedness of a Company Property or Identified Asset owned by
a Joint Venture, the Refinance Cap shall apply with respect to the aggregate
share of such indebtedness which is allocable to, or guaranteed by (but without
duplication), the Company and/or its Subsidiaries;

 

(viii)                        none of the
Company or any of its Subsidiaries shall have undertaken any capital
expenditure that is out of the ordinary course of business consistent with past
practice and material to the Company and its Subsidiaries taken as a 

 

66

 

whole, except as
contemplated in the Company’s business plan for fiscal year 2010 adopted by the
board of directors of the Company prior to the date hereof; or

 

(ix)                                the Company
shall not have changed any of its methods, principles or practices of financial
accounting in effect, other than as required by GAAP or regulatory guidelines
(and except to implement purchase accounting and/or “fresh start” accounting if
the Company elects to do so).

 

(s)           REIT Opinion. 
Each Purchaser shall have received an opinion of Arnold & Porter
LLP, dated as of the Closing Date, substantially in the form attached hereto as
Exhibit J, that the Company (x) for all taxable years commencing with
the taxable year ended December 31, 2005 through December 31, 2009, has been
subject to taxation as a REIT and (y) has operated since January 1, 2010 to the
Closing Date in a manner consistent with the requirements for qualification and
taxation as a REIT.

 

(t)            Non-Control Agreements.

 

(i)                                     The Company
shall have entered into the Non-Control Agreement with each Purchaser.  The Non-Control Agreement shall be in full
force and effect and the Company shall not be in breach of any representation,
warranty, covenant or agreement thereunder in any material respect.

 

(ii)                                  GGO shall have
entered into the GGO Non-Control Agreement with each Purchaser.  The GGO Non-Control Agreement shall be in
full force and effect and GGO shall not be in breach of any representation,
warranty, covenant or agreement thereunder in any material respect.

 

(u)           Issuance or Sale of Common Stock.  Neither the Company nor any of its
Subsidiaries shall have issued or sold any shares of Common Stock (or
securities, warrants or options that are convertible into or exchangeable or
exercisable for, or linked to the performance of, Common Stock) (other than (A)
pursuant to the Equity Exchange, (B) the issuance of shares pursuant to the
exercise of employee stock options issued pursuant to the Company Option Plans,
(C) as set forth on Section 7.1(u) of the Company Disclosure Letter or
(D) the issuance of shares to existing holders of Common Stock and the Backstop
Investors, in each case, pursuant to Section 6.9), unless (1) the
purchase price (or, in the case of securities that are convertible into or
exchangeable or exercisable for, or linked to the performance of, Common Stock,
the conversion, exchange or exercise price) shall not be less than $10.00 per
share (net of all underwriting and other discounts, fees and any other
compensation; provided, that for purposes hereof, payments to the
Purchasers or the Fairholme Purchasers in accordance with Section 1.4 of
this Agreement or the Fairholme Agreement, respectively, shall not be
considered a discount, 

 

67

 

fee or other compensation), (2) following such
issuance or sale, (x) no Person (other than (i) an Initial Investor and their
respective Affiliates pursuant to the Investment Agreements and (ii) any
institutional underwriter or initial purchaser acting in an underwriter
capacity in an underwritten offering) shall, after giving effect to such
issuance or sale, beneficially own more than 10% of the Common Stock of the
Company on a Fully Diluted Basis, and (y) no four Persons (other than the
Purchasers, members of the Pershing Purchaser Group, the members of the
Fairholme Purchaser Group, the Brookfield Consortium Members or the Brookfield
Investor) shall, after giving effect to such issuance or sale, beneficially own
more than thirty percent (30%) of the Common Stock on a Fully Diluted Basis; provided,
that this clause (2) shall not be applicable to any conversion or exchange of
claims against the Debtors into New Common Stock pursuant to the Plan; provided,
further, that subclause (y) of this clause (2) shall not be applicable
with respect to any Person listed on Exhibit N and (3) each Purchaser
shall have been offered the right to purchase up to its GGP Pro Rata Share of
15% of such shares of Common Stock (or securities, warrants or options that are
convertible into or exchangeable or exercisable for Common Stock) on terms
otherwise consistent with Section 5.9 (except the provisions of such Section
5.9 with respect to issuances contemplated by this Section 7.1(u)
shall apply from the date of this Agreement) (provided that the right
described in this clause (3) shall not be applicable to the issuance of shares
or warrants contemplated by the other Investment Agreements, or any conversion
or exchange of debt or other claims into equity in connection with the Plan).

 

(v)           Hughes Heirs Obligations.  The Hughes Heirs Obligations shall have been
determined by order of the Bankruptcy Court entered on or prior to the
Effective Date (which order may be the Confirmation Order or another order
entered by the Bankruptcy Court) and satisfied in accordance with the terms of
the Plan.  For
the avoidance of doubt, to the extent that holders of Hughes Heirs Obligations
or other Claims against or interests in the Debtors arising under or related to
the Hughes Agreement receive any consideration in respect of such obligations,
Claims or interests under the Plan, there shall be no reduction in the number
of shares of New Common Stock or GGO Common Stock otherwise to have been
distributed on the Effective Date under the Plan in the Equity Exchange or the
GGO Share Distribution, as applicable.

 

(w)          GGO Promissory Note. 
The GGO Promissory Note, if any, shall have been issued by GGO (or one
of its Subsidiaries, provided that the GGO Promissory Note is guaranteed by
GGO) in favor of the Operating Partnership.

 

(x)            Other Conditions. 
With respect to each other Initial Investor, either (A) its Investment
Agreement shall be in full force and effect without amendments or modifications
(other than those that are materially no less favorable to the Company than
those provided in such Investment Agreement as in effect on the date hereof),
the conditions to the consummation of the transactions under such Investment
Agreement as in effect on the date hereof to be performed on the Closing Date
shall have been satisfied or waived with the prior written consent of each
Purchaser, and such Initial Investor shall have subscribed and paid for such
shares of New Common Stock that such Initial Investor is obligated to purchase
thereunder, (B) the funding to be provided by such 

 

68

 

Initial Investor under its Investment Agreement
shall have been provided by one or more other investors or purchasers
acceptable to each Purchaser on terms and conditions that such Purchaser has
agreed are materially no less favorable to the Company than the terms and
conditions of the applicable Investment Agreement as in effect on the date
hereof or (C) in the case of an Initial Investor (other than a Brookfield
Consortium Member), such Initial Investor has breached its obligation to fund
at Closing when required to do so in accordance with the terms of its
Investment Agreement (it being understood that the foregoing shall not limit
the Company’s right to reduce the Total Purchase Amount under Section 1.4
hereof).

 

(y)           Put Shares.  Subject to Section 1.4(c), if the
Company has elected to designate Put Shares
pursuant to Section 1.4(b), the Company and each of the Purchasers shall
have entered into the Bridge Notes on terms mutually satisfactory to each
party, effective as of the Effective Date, and approved by the Bankruptcy Court
pursuant to its Confirmation Order.

 

ARTICLE VIII

 

CONDITIONS TO THE
OBLIGATIONS OF THE COMPANY

 

SECTION 8.1               Conditions to the Obligations
of the Company.  The obligation of
the Company to issue the Shares and the obligation of GGO to issue the GGO
Shares pursuant to this Agreement on the Closing Date are subject to the
satisfaction (or waiver by the Company) of the following conditions as of the
Closing Date:

 

(a)           No Injunction. 
No judgment, injunction, decree or other legal restraint shall prohibit
the consummation of the Plan or the transactions contemplated by this
Agreement.

 

(b)           Regulatory Approvals; Consents.  All permits, consents, orders, approvals,
waivers, authorizations or other permissions or actions of third parties and
Governmental Entities required for the consummation of the transactions
contemplated by this Agreement and the Plan shall have been made or received,
as the case may be, and shall be in full force and effect, except for those permits,
consents, orders, approvals, waivers, authorizations or other permissions or
actions the failure of which to make or receive would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

 

(c)           Representations and Warranties and Covenants.  Each of (i) the representations and
warranties of each Purchaser contained in Section 4.1, Section 4.2,
Section 4.3, and Section 4.12 in this Agreement shall be true and
correct at and as of the Closing Date as if made at and as of the Closing Date
(except for representations and warranties made as of a specific date, which
shall be true and correct only as of such specific date), and (ii) the other
representations and warranties of each Purchaser contained in this Agreement,
disregarding all qualifications and exceptions contained therein relating to
“materiality”, shall be true and correct at and as of the date of this 

 

69

 

Agreement and at and as of the Closing Date as if made
at and as of the Closing Date (except for representations and warranties made
as of a specified date, which shall be true and correct only as of the
specified date), except for such failures to be true and correct that,
individually or in the aggregate, would not reasonably be expected to have a
material adverse effect on the ability of such Purchaser to consummate the
transactions contemplated by this Agreement. 
Each Purchaser shall have complied in all material respects with all of
its obligations under this Agreement. 
Each Purchaser shall have provided to the Company a certificate
delivered by an executive officer of the managing member of such Purchaser,
acting in his or her official capacity on behalf of such Purchaser, to the
effect that the conditions in this clause (c) have been satisfied as of the
Closing Date.

 

(d)           Plan and Confirmation Order.  The Plan shall have been confirmed by the
Bankruptcy Court by order, which order shall be in full force and effect and
not subject to a stay of effectiveness.

 

(e)           Conditions to Confirmation.  The conditions to confirmation and the
conditions to the Effective Date of the Plan shall have been satisfied or
waived in accordance with the Plan.

 

(f)            GGO.  The
GGO Share Distribution shall have occurred.

 

(g)           No Legal Impediment to Issuance.  No action shall have been taken and no
statute, rule, regulation or order shall have been enacted, adopted or issued
by any federal, state or foreign governmental or regulatory authority that
prohibits the issuance or sale of, pursuant to this Agreement, the Shares, the
issuance of Warrants, New Warrants, GGO Shares, GGO Warrants, the issuance of
New Common Stock upon exercise of the New Warrants or the issuance of GGO
Common Stock upon exercise of the GGO Warrants; and no injunction or order of
any federal, state or foreign court shall have been issued that prohibits the
issuance or sale, pursuant to this Agreement, of the Shares, the GGO Shares,
the Warrants, the New Warrants, GGO Warrants, the issuance of New Common Stock
upon exercise of the New Warrants or the issuance of GGO Common Stock upon
exercise of the GGO Warrants.

 

(h)           Reorganization Opinion.  The Company shall have received an opinion of
Weil, Gotshal & Manges LLP, dated as of the Closing Date, in form and
substance reasonably satisfactory to the Company, substantially to the effect
that, on the basis of the facts, representations and assumptions set forth in
such opinion, the exchange of Common Stock for New Common Stock in the Equity
Exchange should be treated as a reorganization within the meaning of Section
368(a) of the Code.  In rendering such
opinion, Weil, Gotshal & Manges LLP may require and rely upon
representations and covenants made by the parties to this Agreement.

 

(i)            IRS Ruling. 
The Company shall have obtained a favorable written ruling from the
United States Internal Revenue Service confirming the qualification of 

 

70

 

each of the GGO Share Distribution and the
prerequisite internal spin-offs each as a “tax free spin-off” under the Code.

 

(j)            Funding. 
The applicable Purchaser shall have paid to the Company and GGO, as
applicable, all amounts payable by such Purchaser under Article I and Article
II of this Agreement, by wire transfer of immediately available funds to
such account or accounts as shall have been designated in writing by the
Company at least three (3) Business Days prior to the Closing Date.

 

(k)           REIT Matters. 
The representations and covenants set forth on Exhibit D in
respect of the applicable Purchaser and, to the extent applicable, its
Affiliates, members, Affiliates of members or designees, shall be true and
correct in all material respects as of the Closing Date as if made at and as of
the Closing Date, it being understood that such Purchaser’s Affiliates, members
or Affiliates of members shall be required to provide such representations and
covenants only if such Person “beneficially owns” or “constructively owns” (as
such terms are defined in the certificate of incorporation of the Company)
Common Stock or New Common Stock in excess of the relevant ownership limit set
forth in the certificate of incorporation of the Company or any stock or other
equity interest owned by such Person in a tenant of the Company would be
treated as constructively owned by the Company.

 

(l)            Non-Control Agreements.  Each Purchaser shall have entered into (i)
the Non-Control Agreement with the Company and (ii) the GGO Non-Control
Agreement with GGO.  Each of the
Non-Control Agreement and the GGO Non-Control Agreement shall be in full force
and effect and such Purchaser shall not be in breach of any representation,
warranty, covenant or agreement thereunder in any material respect.

 

(m)          GGO Promissory Note. 
The GGO Promissory Note, if any, shall have been issued by GGO (or one
of its Subsidiaries, provided that the GGO Promissory Note is guaranteed by
GGO) in favor of the Operating Partnership.

 

(n)           Collateral. 
If the Company has elected to designate Put Shares
pursuant to Section 1.4(b), collateral arrangements pursuant to Section
1.4(c)(viii) shall have been entered into on terms satisfactory to the
Company and approved by the Bankruptcy Court.

 

ARTICLE IX

 

[INTENTIONALLY OMITTED]

 

ARTICLE X

 

SURVIVAL OF
REPRESENTATIONS AND WARRANTIES

 

SECTION 10.1             Survival of Representations and
Warranties.  The representations and
warranties made in this Agreement shall survive the  execution and 

 

71

 

delivery of this Agreement but shall terminate and
be of no further force and effect following the earlier of (i) the termination
of this Agreement in accordance with Article XI and (ii) the Closing.

 

ARTICLE
XI

 

TERMINATION

 

SECTION
11.1             Termination.  This Agreement and the
obligations of the parties hereunder shall terminate automatically without any
action by any party if (i) the Company has not filed the Approval Motion within
two (2) Business Days following the date of this Agreement, (ii) the Approval
Order, in form and substance satisfactory to each Purchaser, approving, among
other things, the issuance of the Warrants and the warrants contemplated by
each other Investment Agreement, is not entered by the Bankruptcy Court on or
prior to the date that is 43 days after the date of this Agreement, (iii) if
the Debtors withdraw the Approval Motion, or (iv) the conditions to the
obligations of any other Initial Investor pursuant to the other Investment
Agreements to consummate the closings as set forth therein are amended or
modified in any respect prior to the entry of the Approval Order, in each of
cases (i), (ii), (iii) and (iv) unless each Purchaser and the Company otherwise
agrees in writing.  In addition, this
Agreement may be terminated and the transactions contemplated hereby may be
abandoned at any time prior to the Closing Date:

 

(a)           by mutual written consent of each Purchaser and the
Company;

 

(b)           by each Purchaser by written notice to the Company upon
the occurrence of any of the following events (which notice shall specify the
event upon which such termination is based):

 

(i)                                     if the
Effective Date and the purchase and sale contemplated by Article I have
not occurred by the Termination Date; provided, however, that the
right to terminate this Agreement under this Section 11.1(b)(i) shall
not be available to any Purchaser if any Purchaser has breached in any material
respect its obligations under this Agreement in any manner that shall have
proximately caused the Closing Date not to occur on or before the Termination
Date;

 

(ii)                                  if any
Bankruptcy Cases of the Company or any Debtor which is a Significant Subsidiary
shall have been dismissed or converted to cases under chapter 7 of the
Bankruptcy Code or if an interim or permanent trustee or an examiner shall be
appointed to oversee or operate any of the Debtors in their Bankruptcy Cases,
in each case, except (x) as would not reasonably be expected to have a Material

 

72

 

Adverse Effect or (y) with
respect to the Bankruptcy Cases for Phase II Mall Subsidiary, LLC, Oakwood
Shopping Center Limited Partnership and Rouse Oakwood Shopping Center, LLC;

 

(iii)                               if, from and
after the issuance of the Warrants, the Approval Order shall without the prior
written consent of each Purchaser, cease to be in full force and effect
resulting in the cancellation of any Warrants or a modification of any
Warrants, in each case, other than pursuant to their terms, that adversely
affects any Purchaser;

 

(iv)                              if, without a
Purchaser’s consent, the Warrants have not been issued to such Purchaser in
accordance with Section 5.2, or if after the Warrants are issued, any
shares of Common Stock underlying the Warrants cease at any time to be
authorized for issuance on a U.S. national securities exchange;

 

(v)                                 if there has
been a breach by the Company of any representation, warranty, covenant or
agreement of the Company contained in this Agreement or the Company shall have
taken any action which, in each case, (A) would result in a failure of a
condition set forth in Article VII and (B) cannot be cured prior to the
Termination Date, after written notice to the Company of such breach and the
intention to terminate this Agreement pursuant to this Section; provided,
however, that the right to terminate this Agreement under this Section
shall not be available to any Purchaser if any Purchaser has breached in any
material respect its obligations under this Agreement;

 

(vi)                              following the
issuance of the Warrants, if (a) the Company consummates a Competing
Transaction, (b) on or after November 1, 2010, the Company enters into an
agreement or files any pleading or document with the Bankruptcy Court, in each
case, evidencing its decision to support any Competing Transaction, or (c) the
Company files notice of a hearing to confirm a plan of reorganization that
contemplates a Change of Control without such Change of Control being subject
to either (1) the written consent of the holders a majority in number of the
outstanding shares of Common Stock or (2) soliciting the approval of the
holders of a majority in number of the outstanding shares of Common Stock in
accordance with the Bankruptcy Code (in each case, regardless of whether such
approval is 

 

73

 

obtained) and providing for
a period of at least 20 Business Days for acceptance or rejection by such
holders in connection with such solicitation;

 

(vii)                           if the Company
or any Subsidiary of the Company issues any shares of Common Stock or New Common
Stock (or securities convertible into or exchangeable or exercisable for Common
Stock or New Common Stock) at a purchase price (or in the case of securities
that are convertible into or exchangeable or exercisable for, or linked to the
performance of, Common Stock or New Common Stock, the conversion, exchange,
exercise or comparable price) of less than $10.00 per share (net of all
underwriting and other discounts, fees and any other compensation and related
expenses; provided, that for purposes hereof, payments to the Purchasers
or the Fairholme Purchasers in accordance with Section 1.4 of this
Agreement or the Fairholme Agreement, respectively, shall not be considered a
discount, fee or other compensation) of Common Stock or New Common Stock or
converts any claim against any of the Debtors into New Common Stock at a
conversion price less than $10.00 per share of Common Stock or New Common Stock
(in each case, other than pursuant to (A) the exercise, exchange or conversion
of Share Equivalents of the Company existing on the date of this Agreement in
accordance with the terms thereof as of the date of this Agreement, (B) the
Equity Exchange, (C) the issuance of shares upon the exercise of employee stock
options issued pursuant to the Company Option Plans, (D) the issuance of shares
as set forth on Section 7.1(u) of the Company Disclosure Letter, or (E)
the issuance of shares to existing holders of Common Stock and the Backstop
Investors, in each case, pursuant to Section 6.9;

 

(viii)                        if the
Bankruptcy Court shall have entered a final and non-appealable order denying
confirmation of the Plan;

 

(ix)                                if this
Agreement, including the Plan Summary Term Sheet, or the Plan, is revised or
modified (except as otherwise permitted pursuant to this Agreement) by the
Company or an order of the Bankruptcy Court or other court of competent
jurisdiction in a manner that is unacceptable to any Purchaser or a plan of
reorganization with respect to the Debtors involving the Transactions that is
unacceptable to any Purchaser is filed by the Debtors 

 

74

 

with the Bankruptcy Court or
another court of competent jurisdiction;

 

(x)                                   if any
Governmental Entity of competent jurisdiction shall have issued a final and
nonappealable order permanently enjoining or otherwise prohibiting the
consummation of the transactions contemplated by this Agreement (the “Closing
Restraint”);

 

(xi)                                prior to the
issuance of the Warrants, if the Company (A) makes a public announcement,
enters into an agreement or files any pleading or document with the Bankruptcy
Court, in each case, evidencing its decision to support any Competing
Transaction, or (B) the Company or any Subsidiary of the Company enters into a
definitive agreement providing for a Competing Transaction or the Company
provides notice to any Purchaser of the Company’s or any of its Subsidiaries’
decision to enter into a definitive agreement providing for a Competing
Transaction pursuant to Section 5.7; or

 

(c)           by the Company upon the occurrence of any of the following
events:

 

(i)                                     if the
Effective Date and the purchase and sale contemplated by Article I have
not occurred by the Termination Date; provided, however, that the
right to terminate this Agreement under this Section 11.1(c)(i) shall
not be available to the Company to the extent that it has breached in any
material respect its obligations under this Agreement in any manner that shall
have proximately caused the Closing Date not to occur on or before the
Termination Date (it being agreed that this proviso shall not limit the
Company’s ability to terminate this Agreement pursuant to Section
11.1(c)(ii) or any other clause of this Section 11.1(c));

 

(ii)                                  prior to the
entry of the Confirmation Order, upon notice to each Purchaser, for any reason
or no reason, effective as of such time as shall be specified in such notice; provided,
however, that prior to the entry of the Approval Order, the Company
shall not have the right to terminate this Agreement under this Section
11.1(c)(ii) during the 48 hour notice period contemplated by Section 5.7;

 

75

 

(iii)                               if all
conditions to the obligations of each Purchaser to consummate the transactions
contemplated by this Agreement set forth in Article VII shall have been
satisfied (other than those conditions that are to be satisfied (and capable of
being satisfied) by action taken at the Closing if such Purchaser had complied
with its obligations under this Agreement) and the transactions contemplated by
this Agreement fail to be consummated as a result of the breach by any
Purchaser of its obligation to pay to the Company and GGO, as applicable, all
amounts payable by such Purchaser under Article I and Article II
of this Agreement, by wire transfer of immediately available funds in
accordance with the terms of this Agreement; or

 

(iv)                              if a Closing
Restraint is in effect.

 

SECTION 11.2             Effects of Termination.

 

(a)           In the event of the termination of this Agreement pursuant
to Article XI, this Agreement shall forthwith become void and there
shall be no liability or obligation on the part of any party hereto except the
covenants and agreements made by the parties herein under Article XIII
shall survive indefinitely in accordance with their terms.  Except as otherwise expressly provided in the
Warrants or paragraph (b) below, the Warrants when issued in accordance with Section
5.2 hereof and all of the obligations of the Company under the Warrant
Agreement shall survive any termination of this Agreement.

 

(b)           In the event of a termination of this Agreement by the
Company pursuant to Section 11.1(c)(iii), the parties agree that the
Warrants held by any member of the Purchaser Group at the time of such
termination (but no Warrants held by any other Person if transferred as permitted
hereunder) shall be deemed cancelled, null and void and of no further
effect.  The foregoing shall be a term of
the Warrants.

 

ARTICLE XII

 

DEFINITIONS

 

SECTION 12.1             Defined Terms.  For purposes of this Agreement, the following
terms, when used in this Agreement with initial capital letters, shall have the
respective meanings set forth in this Agreement:

 

(a)           “2006 Bank Loan” means that certain Second Amended
and Restated Credit Agreement, dated as of February 24, 2006, by and among the
Company, the Operating Partnership and GGPLP L.L.C., as borrowers, the lenders
named therein, Banc of America Securities LLC, Eurohypo AG, New York Branch and
Wachovia Capital Markets, LLC, as joint arrangers and joint bookrunners,
Eurohypo AG, New 

 

76

 

York Branch, as administrative agent, Bank of
America, N.A. and Wachovia Bank, National Association, as syndication agents,
and Commerzbank AG and Lehman Commercial Paper, Inc., as co-documentation
agents.

 

(b)           “Additional Sales Period” means in the case of Section
5.9(a)(iv)(A), the 120 day period following the date of the Company’s
notice to Purchaser pursuant to Section 5.9(a)(ii), and in the case of Section
5.9(a)(iv)(B), the 120 day period following (x) the expiration of the 180
day period specified in Section 5.9(a)(iii) or (y) if earlier, the date
on which it is finally determined that Purchaser is unable to consummate such
purchase contemplated by Section 5.9(a)(iii) within such 180 day period
specified in Section 5.9(a)(iii).

 

(c)           “Affiliate” of any particular Person means any
other Person controlling, controlled by or under common control with such
particular Person.  For the purposes of
this definition, “control” means the possession, directly or indirectly, of the
power to direct the management and policies of a Person whether through the
ownership of voting securities, contract or otherwise.

 

(d)           “Brazilian Entities” means those certain Persons in
which the Company indirectly owns an interest which own real property assets or
have operations located in Brazil.

 

(e)           “Brookfield Consortium Member” means Brookfield
Asset Management Inc. or any controlled Affiliate of Brookfield Asset
Management Inc. or any Person of which Brookfield Asset Management Inc. or any
Subsidiary or controlled Affiliate of Brookfield Asset Management Inc. is a
general partner, managing member or equivalent thereof or a wholly owned
subsidiary of the foregoing.

 

(f)            “Business Day” means any day other than (a) a
Saturday, (b) a Sunday, (c) any day on which commercial banks in New York, New
York are required or authorized to close by Law or executive order.

 

(g)           “Capital Raising Activities” means the Company’s
efforts to consummate equity and debt financings for the Company, and sales of
properties and other assets of the Company and its Subsidiaries for cash.

 

(h)           “Cash Equivalents” means as to any Person, (a)
securities issued or directly and fully guaranteed or insured by the United
States or any agency or instrumentality thereof (provided, that the full
faith and credit of the United States is pledged in support thereof) having
maturities of not more than 90 days from the date of acquisition by such
Person, (b) time deposits and certificates of deposit of any commercial bank
having, or which is the principal banking subsidiary of a bank holding company
organized under the Laws of the United States, any State thereof or the
District of Columbia having capital, surplus and undivided profits aggregating
in excess of $500,000,000, having maturities of not more than 90 days from the
date of acquisition by such Person, (c) repurchase obligations with a term of
not more than 90 days for 

 

77

 

underlying securities of the types described in
subsection (a) above entered into with any bank meeting the qualifications
specified in subsection (b) above, (d) commercial paper issued by any issuer
rated at least A-1 by S&P or at least P-1 by Moody’s or carrying an
equivalent rating by a nationally recognized rating agency, if both of the two
named rating agencies cease publishing ratings of commercial paper issuers
generally, and in each case maturing not more than one year after the date of
acquisition by such Person or (e) investments in money market funds substantially
all of whose assets are comprised of securities of the types described in
subsections (a) through (d) above.

 

(i)            “Change of Control” means any transaction or
series of related transactions, in which, after giving effect to such
transaction or transactions, (i) any Person other than a member of a Purchaser
Group of the Pershing Purchasers or Fairholme Purchasers acquires beneficial
ownership (within the meaning of Rules 13d-3 and 13d-5 promulgated under the
Exchange Act), directly or indirectly, of more than fifty percent (50%) of
either (A) the then-outstanding shares of capital stock of the Company or (B)
the combined voting power of the then-outstanding voting securities of the
Company entitled to vote generally in the election of directors of the Company
or (ii) there occurs a direct or indirect sale, lease, exchange or
transfer or other disposition of all or substantially all of the assets of the
Company and its Subsidiaries on a consolidated basis (including securities of
the entity’s directly or indirectly owned Subsidiaries).

 

(j)            “Claims” shall have the meaning set forth in
section 101(5) of the Bankruptcy Code.

 

(k)           “Closing Date Net Debt” means, as of the Effective
Date but prior to giving effect to the Plan, the sum of, without duplication:

 

(i)                                     the aggregate
outstanding Proportionally Consolidated Debt plus any accrued and unpaid
interest thereon plus the amount of the New Debt,

 

(ii)                                  less the
Reinstatement Adjustment Amount,

 

(iii)                               plus the
Permitted Claims Amount,

 

(iv)                              plus the amount
of Proportionally Consolidated Debt attributable to assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, transferred or
otherwise divested during the period between the date of this Agreement and
through the Closing, but excluding any deficiency, guaranty or other similar
claims associated with the Special Consideration Properties (as such term is
defined in the plan of reorganization for the applicable Confirmed Debtor),

 

78

 

(v)                                 less
Proportionally Consolidated Unrestricted Cash; provided, however,
that the net proceeds attributable to sales of assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, or otherwise
transferred during the period between the date of this Agreement and through
the Closing shall be deducted prior to subtracting Proportionally Consolidated
Unrestricted Cash.

 

(l)            “Closing Date Net Debt W/O Reinstatement Adjustment
and Permitted Claims Amounts” means, as of the Effective Date but prior to
giving effect to the Plan, the sum of, without duplication:

 

(i)                                     the aggregate
outstanding Proportionally Consolidated Debt plus any accrued and unpaid
interest thereon plus the amount of the New Debt,

 

(ii)                                  plus the amount
of Proportionally Consolidated Debt attributable to assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, transferred or
otherwise divested during the period between the date of this Agreement and
through the Closing, but excluding any deficiency, guaranty or other similar
claims associated with the Special Consideration Properties (as such term is
defined in the plan of reorganization for the applicable Confirmed Debtor), and

 

(iii)                               less
Proportionally Consolidated Unrestricted Cash; provided, however,
that the net proceeds attributable to sales of assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, or otherwise
transferred during the period between the date of this Agreement and through
the Closing shall be deducted prior to subtracting Proportionally Consolidated
Unrestricted Cash.

 

(m)          “Company Benefit Plan” means each “employee benefit
plan” within the meaning of Section 3(3) of ERISA and each other stock
purchase, stock option, restricted stock, severance, retention, employment,
consulting, change-of-control, collective bargaining, bonus, incentive,
deferred compensation, employee loan, fringe benefit and other benefit plan,
agreement, program, policy, commitment or other arrangement, whether or not
subject to ERISA (including any related funding mechanism now in effect or
required in the future), whether formal or informal, oral or written, in 

 

79

 

each case sponsored or maintained by the Company or
any of its Significant Subsidiaries for the benefit of any past or present
director, officer, employee, consultant or independent contractor of the
Company or any of its Significant Subsidiaries has any present or future right
to benefits.

 

(n)           “Company Board” means the board of directors of the
Company.

 

(o)           “Competing Transaction” means, other than the
transactions contemplated by this Agreement or the Plan Summary Term Sheet, or
by the other Investment Agreements, any offer or proposal relating to (i) a
merger, consolidation, business combination, share exchange, tender offer,
reorganization, recapitalization, liquidation, dissolution or similar
transaction involving the Company or (ii) any direct or indirect purchase or
other acquisition by a “person” or “group” of “beneficial ownership” (as used
for purposes of Section 13(d) of the Exchange Act) of, or a series of
transactions to purchase or acquire, assets representing 30% or more of the
consolidated assets or revenues of the Company and its Subsidiaries taken as a
whole or 30% or more of the Common Stock of the Company (or securities
convertible into or exchangeable or exercisable for 30% or more of the Common
Stock of the Company) or (iii) any recapitalization of the Company or the
provision of financing to the Company that shall cause any condition in Section
7.1 not to be satisfied, in each case, other than the recapitalization and
financing transactions contemplated by this Agreement and the Plan Summary Term
Sheet (or the financing provided by the Initial Investors) or that will be
effected together with the transactions contemplated hereby.

 

(p)           “Conclusive Net Debt Adjustment Statement” means a
statement that: (i) sets forth each of the five components of the Closing Date
Net Debt (for the avoidance of doubt, this shall include (x) the Permitted
Claims Amount, which shall include the Reserve, (y) the Reinstatement
Adjustment Amount, and (z) with respect to clauses (i), (iv) and (v) of the
definition of Closing Date Net Debt, the Closing Date Net Debt Amount W/O
Reinstatement Adjustment and Permitted Claims Amounts as determined through the
process provided for in this Agreement shall be used), and (ii) sets forth the
Net Debt Excess Amount or the Net Debt Surplus Amount, as applicable.

 

(q)           “Contract” means any agreement, lease, license,
evidence of indebtedness, mortgage, indenture, security agreement or other
contract.

 

(r)            [Intentionally Omitted.]

 

(s)           “Corporate Level Debt” means the debt described in
Sections II A, H through O, Q, R, S, W and X of the Plan Summary Term Sheet
plus accrued and unpaid interest thereon.

 

(t)            “Debt” means all obligations of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly, holds
a minority interest (a) evidenced by (i) notes, bonds, debentures or other
similar instruments (including, for avoidance of doubt, mezzanine debt), or
(ii) trust preferred shares, trust preferred units 

 

80

 

and other preferred instruments, and/or (b) secured
by a lien, mortgage or other encumbrance; provided, however, that
Debt shall exclude (x) any form of municipal financing including, but
not limited to, special improvement district bonds or tax increment financing,
(y) an agreement for the use or possession of property creating obligations
that do not appear on the balance sheet of such Person but which, upon the
insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment), and
(z) intercompany notes or preferred interests between and among the
Company and its wholly owned Subsidiaries.

 

(u)           “DIP Loan” means that certain Senior Secured Debtor
in Possession Credit, Security and Guaranty Agreement, dated as of May 15,
2009, by and among the lenders named therein, UBS AG, Stamford Branch, as
administrative agent for the lenders, the Company and the Operating
Partnership, as borrowers, and the certain subsidiaries of the Company named
therein, as guarantors.

 

(v)           “Disclosure Statement” means the disclosure
statement to accompany the Plan as amended, modified or supplemented.

 

(w)          “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended.

 

(x)            [Intentionally Omitted.]

 

(y)           “Excess Surplus Amount” means the sum of:  (i) if, after giving effect to the
application of the Reserve Surplus Amount to reduce the principal amount of the
GGO Promissory Note pursuant to Section 5.16(d), any Reserve Surplus
Amount remains, (A) if and to the extent that such Reserve Surplus Amount is
less than or equal to the Net Debt Surplus Amount, 80% of such remaining
Reserve Surplus Amount, and otherwise (B) 100% of the remaining Reserve Surplus
Amount; and (ii) (A) if a GGO Promissory Note is required to be issued at
Closing, 80% of the aggregate Offering Premium, if any, less the amount of any
reduction in the principal amount of the GGO Promissory Note pursuant to Section
5.16(d) hereof, or (B) if the GGO Promissory Note is not required to
be issued at Closing, the sum of (x) 80% of the aggregate Offering Premium
and (y) 80% of the excess, if any, of the Net Debt Surplus Amount over the
Hughes Amount.

 

(z)            “Exchangeable Notes” means the 3.98% Exchangeable
Senior Notes Due 2027 issued pursuant to that certain Indenture, dated as of
April 16, 2007, by and between the Operating Partnership, as issuer, and The
Bank of New York Mellon Corporation, as trustee.

 

(aa)         “Excluded Claims” means:

 

(i)                                     prepetition and
postpetition Claims secured by cashiers’, landlords’, workers’, mechanics’,
carriers’, workmen’s, repairmen’s and materialmen’s liens and other similar
liens,

 

81

 

(ii)                                  except with
respect to Claims related to GGO or the assets or businesses contributed
thereto, prepetition and postpetition Claims for all ordinary course trade
payables for goods and services related to the operations of the Company and
its Subsidiaries (including, without limitation, ordinary course obligations to
tenants, anchors, vendors, customers, utility providers or forward contract
counterparties related to utility services, employee payroll, commissions,
bonuses and benefits (but excluding the Key Employee Incentive Plan approved by
the Bankruptcy Court pursuant to an order entered on October 15, 2009 at docket
no. 3126), insurance premiums, insurance deductibles, self insured amounts and
other obligations that are accounted for, consistent with past practice prior
to the Petition Date, as trade payables); provided, however, that
Claims or expenses related to the administration and conduct of the Bankruptcy
Cases (such as professional fees and disbursements of financial, legal and
other advisers and consultants retained in connection with the administration
and conduct of the Company’s and its Subsidiaries’ Bankruptcy Cases and other
expenses, fees and commissions related to the reorganization and
recapitalization of the Company pursuant to the Plan, including related to the
Investment Agreements, the issuance of the New Debt, Liquidity Equity Issuances
and any other equity issuances contemplated by this Agreement and the Plan)
shall not be Excluded Claims,

 

(iii)                               except with
respect to Claims related to GGO or the assets or businesses contributed
thereto, Claims and liabilities arising from the litigation or potential
litigation matters set forth in that certain Interim Litigation Report of the
Company dated March 29, 2010 and the Company’s litigation audit response to
Deloitte & Touche dated February 25, 2010, both have been made available to
each Purchaser prior to close of business on March 29, 2010 and other Claims
and liabilities arising from ordinary course litigation or potential litigation
that was not included in such schedule solely because the amount of estimated
or asserted liabilities or Claims did not meet the threshold amount used for
the preparation of such schedule, in each case, to the extent that such Claims
and liabilities have not been paid and satisfied as of the Effective Date, are
continuing following the Effective Date, excluding Claims 

 

82

 

against or interests in the
Debtors arising under or related to the Hughes Agreement,

 

(iv)                              except with
respect to Claims related to GGO or the assets or businesses contributed
thereto, all tenant, anchor and vendor Claims required to be cured pursuant to
section 365 of the Bankruptcy Code, in connection with the assumption of an
executory contract or unexpired lease under the Plan,

 

(v)                                 any deficiency,
guaranty or other similar Claims associated with the Special Consideration
Properties (as such term is defined in the plans of reorganization for the
applicable Confirmed Debtors),

 

(vi)                              MPC Taxes,

 

(vii)                           surety bond
Claims relating to Claims of the type identified in clauses (i) through (vi) of
this definition,

 

(viii)                        GGO Setup Costs
(other than professional fees and disbursements of financial, legal and other
advisers and consultants retained in connection with the administration and
conduct of the Company’s and its Subsidiaries’ Bankruptcy Cases), and

 

(ix)                                any liabilities
assumed by GGO and paid on the Effective Date by GGO or to be paid after the
Effective Date by GGO (for avoidance of doubt, this includes any Claims that,
absent assumption of the liability by GGO, would be a Permitted Claim).

 

(bb)         [Intentionally Omitted.]

 

(cc)         “Fully Diluted Basis” means all outstanding shares of
the Common Stock, New Common Stock or GGO Common Stock, as applicable, assuming
the exercise of all outstanding Share Equivalents (other than (x) any
options issued to an employee of the Company or its Subsidiaries pursuant to
the terms of a Company Benefit Plan or to an employee of GGO or its
Subsidiaries pursuant to the terms of an employee equity plan of GGO or (y)
preferred UPREIT Units) without regard to any restrictions or conditions with
respect to the exercisability of such Share Equivalents.

 

(dd)         “Fully Diluted GGO Economic Interest” means, for the
Purchaser Group with respect to GGO Common Stock at any time, a percentage
equal to the quotient of (i) the aggregate number of shares of GGO Common
Stock held in the aggregate by the Purchaser Group, assuming the exercise of
all outstanding Share Equivalents held by them (without regard to any
restrictions or conditions with respect to 

 

83

 

the exercisability of such Share Equivalents), and
the aggregate notional number of shares of GGO Common Stock referenced in any
physically-settled or financially-settled equity derivative that the Purchaser
Group counterparty has certified to the Company provides the Purchaser Group
with the benefit of substantially similar cash flows as would direct ownership,
divided by (ii) the aggregate outstanding number of shares of GGO Common
Stock on a Fully Diluted Basis.

 

(ee)         “GAAP” means generally accepted accounting principles
in the United States.

 

(ff)           “GGO Common Share Amount” means 32,468,326 plus a
number (rounded up to the nearest whole number) equal to 0.1 multiplied by the
number of shares of Common Stock issued on or after the Measurement Date and
prior to the record date of the GGO Share Distribution as a result of the
exercise, conversion or exchange of any Share Equivalents of the Company
outstanding on the Measurement Date into Common Stock and employee stock
options issued pursuant to the Company Option Plans.

 

(gg)         “GGO Non-Control Agreement” means an agreement with
respect to GGO as attached hereto as Exhibit M.

 

(hh)         “GGO Note Amount” means: (i) in the event there is a
Net Debt Excess Amount, the sum of the Net Debt Excess Amount set forth on the
Conclusive Net Debt Adjustment Statement and the Hughes Heirs Obligations to
the extent satisfied with assets of the Company (including cash (but excluding
any cash paid prior to the Effective Date in settlement or satisfaction of
Hughes Heirs Obligations which had the effect of reducing Proportionally
Consolidated Unrestricted Cash for purposes of calculating Closing Date Net
Debt, Closing Date Net Debt W/O Reinstatement Adjustment and Permitted Claims
Amounts, and Net Debt Excess Amount/Net Debt Surplus Amount, as applicable) or
shares of New Common Stock, but excluding Identified Assets) (such amount so
satisfied, the “Hughes Amount”); and (ii) in the event there is a Net
Debt Surplus Amount, the Hughes Amount less 80% of the Net Debt Surplus Amount,
provided, that in no event shall the GGO Note Amount be less than zero.

 

(ii)           “GGO Pro Rata Share” means, with respect to each
Purchaser, the percentage designated by PSCM by written notice to the Company
pursuant to Section 1.1(e).

 

(jj)           “GGO Promissory Note” means an unsecured promissory
note payable by GGO (or one of its Subsidiaries, provided that the GGO
Promissory Note is guaranteed by GGO) in favor of the Operating Partnership in
the aggregate principal amount of the GGO Note Amount, as adjusted pursuant to Section
5.16(d), Section 5.16(e) and Section 5.16(g), (i) bearing
interest at a rate equal to the lower of (x) 7.5% per annum and (y) the
weighted average effective rate of interest payable (after giving effect to the
payment of any underwriting and all other discounts, fees and any other
compensation) on each series of New Debt issued in connection with the Plan and
(ii) maturing on the fifth anniversary of the Closing Date (or if such date
is not a Business 

 

84

 

Day, the next immediately following Business Day),
and (iii) including prohibitions on dividends and distributions, no financial
covenants and such other customary terms and conditions as reasonably agreed to
by each Purchaser and the Company.

 

(kk)         [Intentionally Omitted.]

 

(ll)           “GGO Setup Costs” means such cash liabilities,
costs and expenses as may be incurred by the Company or its Subsidiaries in
connection with the formation and organization of GGO and the implementation of
the GGO Share Distribution, including any and all liabilities for any sales,
use, stamp, documentary, filing, recording, transfer, gross receipts,
registration, duty, securities transactions or similar fees or Taxes or
governmental charges (together with any interest or penalty, addition to Tax or
additional amount imposed) as levied by any taxing authority, in each case,
determined as of the Effective Date and further including, to the extent the
Company or any Subsidiary of the Company has made or will make a payment to
reduce the principal amount of the mortgage related to 110 N. Wacker Drive,
Chicago, Illinois, then 50% of any such payment or contractual obligation to
make a payment.

 

(mm)       [Intentionally Omitted.]

 

(nn)         “GGP Pro Rata Share” means, with respect to each
Purchaser, the percentage designated by PSCM by written notice to the Company
pursuant to Section 1.1(e).

 

(oo)         “Governmental Entity” means any (a) nation,
region, state, province, county, city, town, village, district or other
jurisdiction, (b) federal, state, local, municipal, foreign or other
government, (c) governmental or quasi-governmental authority of any nature
(including any governmental agency, branch, department, court or tribunal, or other
entity), (d) multinational organization or body or (e) body entitled to
exercise any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power of any nature or any other
self-regulatory organizations.

 

(pp)         “Hughes Agreement” means that certain Contingent
Stock Agreement, effective as of January 1, 1996, by The Rouse Company in favor
of and for the benefit of the Holders (named in Schedule I thereto) and the
Representatives (therein defined), as amended.

 

(qq)         “Hughes Heirs Obligations” means claims or interests
against the Debtors arising under or relating to sections 2.07 and 2.08 of the
Hughes Agreement and pertaining to the delivery of contingent shares for
business units to be valued as of December 31, 2009 and claims arising out of
or related to the foregoing.

 

(rr)           “Indebtedness” means, with respect to a Person
without duplication, (a) all indebtedness of such Person for borrowed
money, (b) all obligations of such Person for the deferred purchase price
of property (other than trade payables and accrued expenses incurred in the
ordinary course of such Person’s business), (c) all 

 

85

 

obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments, trust preferred shares, trust
preferred units and other preference instruments, (d) all indebtedness created
or arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (e) all obligations in
respect of capital leases under GAAP of such Person, (f) all obligations of
such Person, contingent or otherwise, as an account party or applicant under
acceptance, letter of credit, surety bond or similar facilities, (g) the
monetary obligations of a Person under (x) a so-called synthetic,
off-balance sheet or tax retention lease, or (y) an agreement for the use or
possession of property creating obligations that do not appear on the balance
sheet of such Person but which, upon the insolvency or bankruptcy of such
Person, would be characterized as the indebtedness of such Person (without regard
to accounting treatment) (each, a “Synthetic Lease Obligation”), (h)
guaranties of such Person with respect to obligations of the type described in
clauses (a) through (g) above, (i) all obligations of other Persons of the kind
referred to in clauses (a) through (h) above secured by any lien on property
owned by such Person, whether or not such Person has assumed or become liable
for the payment of such obligation, (j) the net obligations of such Person in
respect of hedge agreements and swaps and (k) any obligation that, in
accordance with GAAP, would be required to be reflected as debt on the
consolidated balance sheet of such Person.

 

(ss)         “Joint Venture” means a Subsidiary of the Company
which is owned partly by another Subsidiary of the Company and partly by a
third party.

 

(tt)           “Knowledge” of the Company means the actual
knowledge, as of the date of this Agreement, of the individuals listed on Section
12.1(tt) of the Company Disclosure Letter.

 

(uu)         “Law” means any statutes, laws (including common law),
rules, ordinances, regulations, codes, orders, judgments, decisions,
injunctions, writs, decrees, applicable to the Company or any of its
Subsidiaries or any Purchaser, as applicable, or their respective properties or
assets.

 

(vv)         “Liquidity Equity Issuances” means issuances of
shares of New Common Stock in the Plan for cash in an aggregate amount of up to
65,000,000 shares of New Common Stock.

 

(ww)       “Material Adverse Effect” means any change, event or
occurrence which (x) has a material adverse effect on the results of operations
or financial condition of the Company and its direct and indirect Subsidiaries
taken as a whole, other than changes, events or occurrences (i) generally
affecting (A) the retail mall industry in the United States or in a specific
geographic area in which the Company operates, or (B) the economy, or financial
or capital markets, in the United States or elsewhere in the world, including
changes in interest or exchange rates or the availability of capital, or (ii)
arising out of, resulting from or attributable to (A) changes in Law or
regulation or in generally accepted accounting principles or in accounting
standards, or changes in general legal, 

 

86

 

 

 

regulatory or political conditions, (B) the
negotiation, execution, announcement or performance of any agreement between
the Company and/or its Affiliates, on the one hand, and any Purchaser and/or
its Purchaser Group (or members thereof), on the other hand, or the
consummation of the transactions contemplated hereby or operating performance
or reputational issues arising out of or associated with the Bankruptcy Cases,
including the impact thereof on relationships, contractual or otherwise, with
tenants, customers, suppliers, distributors, partners or employees, or any
litigation or claims arising from allegations of breach of fiduciary duty or
violation of Law or otherwise, related to the execution or performance of this
Agreement or the transactions contemplated hereby, including, without
limitation, any developments in the Bankruptcy Cases, (C) acts of war,
sabotage or terrorism, or any escalation or worsening of any such acts of war,
sabotage or terrorism threatened or underway as of the date of the this
Agreement, (D) earthquakes, hurricanes, tornadoes or other natural disasters, (E) any
action taken by the Company or its Subsidiaries as contemplated or permitted by
any agreement between the Company and/or its Affiliates, on the one hand, and
any Purchaser and/or Purchaser Group (or members thereof), on the other hand,
or with each Purchaser’s consent, or any failure by the Company to take any
action as a result of any restriction contained in any agreement between the
Company and/or its Affiliates, on the one hand, and any Purchaser and/or its
Purchaser Group (or any member thereof), on the other hand, or (F) in each
case in and of itself, any decline in the market price, or change in trading
volume, of the capital stock or debt securities of the Company or any direct or
indirect subsidiary thereof, or any failure to meet publicly announced or
internal revenue or earnings projections, forecasts, estimates or guidance for
any period, whether relating to financial performance or business metrics,
including, without limitation, revenues, net operating incomes, cash flows or
cash positions, it being further understood that any event, change,
development, effect or occurrence giving rise to such decline in the trading
price or trading volume of the capital stock or debt securities of the Company
or such failure to meet internal projections or forecasts as described in the
preceding clause (F), as the case may be, may be the cause of a Material
Adverse Effect; so long as, in the case of clauses (i)(A) and (i)(B), such
changes or events do not have a materially disproportionate adverse effect on
the Company and its Subsidiaries, taken as a whole, as compared to other
entities that own and manage retail malls throughout the United States, or (y) materially
impairs the ability of the Company to consummate the transactions contemplated
by this Agreement or perform its obligations hereunder or under the other
agreements executed in connection with the transactions contemplated hereby.

 

(xx)          “Material Contract”
means, with respect to the Company and its Subsidiaries, any:

 

(i)            Contract that would be
considered a material contract pursuant to Item 601(b)(10) of Regulation
S-K promulgated by the SEC, had the Company been the registrant referred to in
such regulation; or

 

(ii)           Contract for capital
expenditures, the future acquisition or construction of fixed assets or the
future purchase of

 

87

 

materials, supplies or
equipment that provides for the payment by the Company or its Subsidiaries of
more than $5,000,000 and is not terminable by the Company or any of its
Subsidiaries by notice of not more than sixty (60) days for a cost of less than
$1,000,000.

 

(yy)         “MPC Assets” means
residential and commercial lots in the “master planned communities” owned by
the Howard Hughes Corporation or The Hughes Corporation or related to the
Emerson Master Planned Community.

 

(zz)          “MPC Taxes” means all
liability for income Taxes in respect of sales of MPC Assets sold prior to the
date of this Agreement.

 

(aaa)       [Intentionally Omitted.]

 

(bbb)      “Net Debt Excess Amount”
means, the amount, which shall in no event be less than $0, that is calculated
by subtracting the Target Net Debt from the Closing Date Net Debt (as reflected
on the Conclusive Net Debt Adjustment Statement).

 

(ccc)       “Net Debt Surplus Amount”
means, the amount, which shall in no event be less than $0, that is calculated
by subtracting Closing Date Net Debt (as reflected on the Conclusive Net Debt
Adjustment Statement) from the Target Net Debt.

 

(ddd)      “Non-Control Agreement”
means the Non-Control Agreement the form of which is attached hereto as Exhibit M.

 

(eee)       “Non-Controlling
Properties” means the Company Properties listed on Section 12.1(eee)
of the Company Disclosure Letter.  Each
of the Non-Controlling Properties is owned by a Joint Venture in which neither
the Company nor any of its Subsidiaries is a controlling entity.  For purposes of this Section 12.1(eee),
the term “control” shall mean, possession, directly or indirectly, of
the power to direct the management and policies of a Person whether through the
ownership of voting securities, contract or otherwise; provided, however,
that the rights of any Person to exercise Major Decision Rights under a Joint
Venture shall not constitute or be deemed to constitute “control” for the
purposes hereof.  “Controlling” and “controlled”
shall have meanings correlative thereto. 
For purposes of this Section 12.1(eee), the term “Major
Decision Rights” shall mean, the right to, directly or indirectly, approve,
consent to, veto or exercise a vote in connection with a Person’s voting or
other decision-making authority in respect of the collective rights, options,
elections or obligations of such Person under a Joint Venture.

 

(fff)         “Offering Premium”
means, with respect to any shares of New Common Stock issued for cash in
conjunction with issuances of New Common Stock or
Share Equivalents permitted by this Agreement (including any
Liquidity Equity Issuance) and completed prior
to the date that is the last to occur of (x) 45 days after the Effective
Date, (y) the Settlement Date, if applicable, and (z) the Bridge Note
Maturity Date, if

 

88

 

applicable, the product of
(i) (A) the per share offering price of the shares of New Common
Stock (or offering price of Share Equivalents
corresponding to one underlying share of New Common Stock) issued
(net of all underwriting and other discounts, fees or other compensation, and
related expenses) less (B) the Per Share Purchase Price and (ii) the
number of shares of New Common Stock sold pursuant thereto.  For the purposes hereof, the issuance for
cash of notes mandatorily convertible into New Common Stock on the Effective
Date shall constitute an issuance of the underlying number of shares of New
Common Stock for cash at a price per share offering equal to the offering price
for the corresponding amount of notes.

 

(ggg)      “Operating Partnership”
means GGP Limited Partnership, a Delaware limited partnership and a Subsidiary
of the Company.

 

(hhh)      “Permitted Claims”
means, as of the Effective Date, other than Excluded Claims, (a) all
Claims against the Debtors covered by the Plan (the “Plan Debtors”) that
are classified in those certain classes of Claims described in Sections II B
through E, G and P in the Plan Summary Term Sheet (the “PMA Claims”), (b) all
Claims or other amounts required to be paid pursuant to the Plan to indenture
trustees or similar servicing or administrative agents, with respect to
administrative fees incurred by or reimbursement obligations owed to such
indenture trustees or similar servicing or administrative agents in their
capacity as such under the Corporate Level Debt documents, (c) any claims
of a similar type as the PMA Claims that are or have been asserted against
affiliates of the Plan Debtors that are or were debtors in the Bankruptcy Cases
and for which a plan of reorganization has already been confirmed (the “Confirmed
Debtors”), (d) Claims or interests against the Debtors arising under or
related to the Hughes Agreement (other than Hughes Heirs Obligations) and (e) surety
bond Claims relating to the types of Claims identified in clauses (a) through
(d) of this definition.

 

(iii)          “Permitted Claims Amount”
means, as of the Effective Date, an amount equal to the sum of, without
duplication, (a) the aggregate amount of accrued and unpaid Permitted
Claims that have been allowed (by order of the Bankruptcy Court or pursuant to
the terms of the Plan) as of the Effective Date, plus (b) the aggregate
amount of the reserve to be estimated pursuant to the Plan with respect to
accrued and unpaid Permitted Claims that have not been allowed or disallowed
(in each case by order of the Bankruptcy Court or pursuant to the terms of the
Plan) as of the Effective Date (the “Reserve”), plus (c) the
aggregate amount of the GGO Setup Costs (other than professional fees and
disbursements of financial, legal and other advisers and consultants retained
in connection with the administration and conduct of the Company’s and its
Subsidiaries’ Bankruptcy Cases) as of the Effective Date; provided, however,
that there shall be no duplication with any amounts otherwise included in
Closing Date Net Debt.

 

(jjj)          “Permitted Replacement
Shares” means shares of New Common Stock, or notes mandatorily convertible
into or exchangeable for shares of New Common Stock, that are sold for cash
proceeds immediately payable to the Company (net of all underwriting and other
discounts, fees, and related consideration) of not less than $10.50

 

89

 

per share of New Common Stock (or in the case of
notes, convertible or exchangeable at not less than $10.50 per share of New
Common Stock); provided, that Permitted Replacement Shares shall not
include any New Common Stock sold to any of the Initial Investors or their
Affiliates, except pursuant to the exercise of Subscription Rights pursuant to
this Agreement, the Brookfield Agreement or the Fairholme Agreement (in each
case, as defined herein or therein as applicable).

 

(kkk)       “Person” means an
individual, a group (including a “group” under Section 13(d) of
the Exchange Act), a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a Governmental Entity or any department, agency or political
subdivision thereof.

 

(lll)          “Preliminary Closing Date
Net Debt Review Deadline” means the end of the Preliminary Closing Date Net
Debt Review Period, which date shall be the first business day that is at least
twenty (20) calendar days after delivery of the Preliminary Closing Date Net
Debt Schedule, and which shall be the deadline by which a Purchaser shall
deliver to the Company a Dispute Notice.

 

(mmm)    “Preliminary Closing Date
Net Debt Review Period” means the period between the Company’s delivery of
the Preliminary Closing Date Net Debt Schedule and the Preliminary Closing Date
Net Debt Review Deadline.

 

(nnn)      “Proportionally
Consolidated Debt” means consolidated Debt of the Company less (1) all
Debt of Subsidiaries of the Company that are not wholly-owned and other Persons
in which the Company, directly or indirectly, holds a minority interest, to the
extent such Debt is included in consolidated Debt, plus (2) the Company’s
share of Debt for each non-wholly owned Subsidiary of the Company and each
other Persons in which the Company, directly or indirectly, holds a minority
interest based on the company’s pro-rata economic interest in each such
Subsidiary or Person or, to the extent to which the Company is directly or
indirectly (through one or more Subsidiaries or Persons) liable for a percent
of such Debt that is greater than such pro-rata economic interest in such
Subsidiary or Person, such larger amount; provided, however, for purposes of
calculating Proportionally Consolidated Debt, the Debt of the Brazilian
Entities shall be deemed to be $110,437,781.

 

(ooo)      “Proportionally
Consolidated Unrestricted Cash” means the consolidated Unrestricted Cash of
the Company less (1) all Unrestricted Cash of Subsidiaries of the Company
that are not wholly-owned and Persons in which the Company, directly or
indirectly, owns a minority interest, to the extent such Unrestricted Cash is
included in consolidated Unrestricted Cash of the Company, plus (2) the
Company’s share of Unrestricted Cash for each non-wholly owned Subsidiary of
the Company and Persons in which the Company, directly or indirectly, owns a
minority interest based on the Company’s pro rata economic interest in each such
Subsidiary or Person; provided, however, for purposes of
calculating Proportionally Consolidated Unrestricted Cash, the Unrestricted
Cash of the Brazilian Entities shall be deemed to be

 

90

 

$82,000,000, provided, further, that
any distributions of Unrestricted Cash made from the date of this Agreement to
the Closing by Brazilian Entities to the Company or any of its Subsidiaries
shall be disregarded for purposes of calculating Proportionally Consolidated
Unrestricted Cash.

 

(ppp)      “Purchaser Group”
means, with respect to each Purchaser, such Purchaser, its investment manager
and their respective “controlled Affiliates”. 
For such purpose, one or more investment funds under common investment
management shall constitute “controlled Affiliates” of their investment
manager.

 

(qqq)      “Reinstatement Adjustment
Amount” means the difference resulting from subtracting the Reinstatement
Amount from the aggregate amount of Corporate Level Debt.

 

(rrr)         “Reinstatement Amount”
means the amount of Corporate Level Debt to the extent such obligations will be
reinstated pursuant to the Plan, including, to the extent applicable, based on
the elections of the holders of such Corporate Level Debt prior to the election
deadline established by the Bankruptcy Court.

 

(sss)       “Reserve Surplus Amount”
means, as of any date of determination, (x) the Reserve minus (y) the
aggregate amount paid with respect to Permitted Claims through such date of
determination to the extent such Permitted Claims were included in the
calculation of the Reserve minus (z) any amount included in the Reserve
with respect to Permitted Claims that the Company Board, based on the exercise
of its business judgment and information available to the Company Board as of the
date of determination, considers necessary to maintain as a reserve against
Permitted Claims yet to be paid.

 

(ttt)         “Rights Agreement”
means that certain Rights Agreement, dated as of November 18, 1998, by and
between the Company and BNY Mellon Shareowner Services, as successor to Norwest
Bank Minnesota, N.A., as amended on November 10, 1999, December 31,
2001 and November 18, 2008, and from time to time.

 

(uuu)      “Rouse Bonds” means (i) the
6-3/4% Senior Notes Due 2013 issued pursuant to the Indenture, dated as of May 5,
2006, by and among The Rouse Company LP and TRC Co-Issuer, Inc., as
co-issuers and The Bank of New York Mellon Corporation, as trustee, and (ii) unsecured
debentures issued pursuant to the Indenture, dated as of February 24,
1995, by and between The Rouse Company, as issuer, and The Bank of New York
Mellon Corporation, as trustee.

 

(vvv)      “Share Equivalent”
means any stock, warrants, rights, calls, options or other securities
exchangeable or exercisable for, or convertible into, shares of Common Stock,
New Common Stock or GGO Common Stock, as applicable.

 

91

 

(www)    “Significant Subsidiaries”
means the operating Subsidiaries of the Company that generated revenues in
excess of $30,000,000 for the year ended December 31, 2009.

 

(xxx)        “Specified Debt”
means Claims in Classes H through N inclusive, in each case as provided on the
Plan Summary Term Sheet.

 

(yyy)      “Subsidiary” means,
with respect to a Person (including the Company), (a) a company a majority
of whose capital stock with voting power, under ordinary circumstances, to
elect a majority of the directors is at the time, directly or indirectly, owned
by such Person, by a subsidiary of such Person, or by such Person and one or
more subsidiaries of such Person, (b) a partnership in which such Person
or a subsidiary of such Person is, at the date of determination, a general
partner of such partnership, (c) a limited liability company of which such
Person, or a Subsidiary of such Person, is a managing member or (d) any
other Person (other than a company) in which such Person, a subsidiary of such
Person or such Person and one or more subsidiaries of such Person, directly or
indirectly, at the date of determination thereof, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the
election of a majority of the directors or other governing body of such Person.

 

(zzz)        “Target Net Debt”
means $22,970,800,000.

 

(aaaa)     “Tax Protection
Agreements” means any written agreement to which the Company, its Operating
Partnership or any other Subsidiary is a party pursuant to which: (i) in
connection with the deferral of income Taxes of a holder of interests in the
Operating Partnership, the Company, the Operating Partnership or the other
Subsidiaries have agreed to (A) maintain a minimum level of Indebtedness
or continue any particular Indebtedness, (B) retain or not dispose of
assets for a period of time that has not since expired, (C) make or
refrain from making Tax elections, and/or (D) only dispose of assets in a
particular manner; and/or (ii) limited partners of the Operating
Partnership have guaranteed Indebtedness of the Operating Partnership.

 

(bbbb)    “Termination Date”
means December 31, 2010; provided, that if the Confirmation Order
shall have been entered on or prior to December 15, 2010 but the Company,
despite its commercially reasonable efforts, is unable to consummate the
Closing on or prior to December 31, 2010, the Company may extend the
Termination Date for so long as Closing by January 31, 2011 is feasible
and the Company continues to diligently pursue Closing; provided, further,
that the Termination Date shall not be extended beyond January 31, 2011.

 

(cccc)     “Transactions” means
the purchase of the Shares and the GGO Shares and the other transactions
contemplated by this Agreement.

 

(dddd)    “TRUPS” means certain
preferred securities issued by GGP Capital Trust I.

 

92

 

(eeee)     “Unrestricted Cash”
means all cash and Cash Equivalents of the Company and of the Subsidiaries of
the Company, but excluding any cash or Cash Equivalents that are controlled by
or subject to any lien, security interest or control agreement, other
preferential arrangement in favor of any creditor or otherwise encumbered or
restricted in any way; provided that cash and Cash Equivalents of the Company
and of the Subsidiaries of the Company that are controlled by or subject to any
lien, security interest, control agreement, preferential arrangement or other
encumbrance or restriction pursuant to the New DIP Agreement shall not be
excluded from “Unrestricted Cash.”.

 

(ffff)        “Unsecured Indebtedness”
means all indebtedness of the Company for borrowed money or obligations of the
Company evidenced by notes, bonds, debentures or other similar instruments that
are not secured by a lien on any Company Property or other assets of the
Company or any Subsidiary.

 

(gggg)    “UPREIT Units” means
preferred or common units of limited partnership interests of the Operating
Partnership.

 

ARTICLE XIII

 

MISCELLANEOUS

 

SECTION 13.1             Notices.  All notices and other communications in
connection with this Agreement shall be in writing and shall be considered
given if given in the manner, and be deemed given at times, as follows: (x) on
the date delivered, if personally delivered; (y) on the day of
transmission if sent via facsimile transmission to the facsimile number given
below, and telephonic confirmation of receipt is obtained promptly after
completion of transmission; or (z) on the next Business Day after being
sent by recognized overnight mail service specifying next business day
delivery, in each case with delivery charges pre-paid and addressed to the
following addresses:

 

(a)           If to any Purchaser (which
shall constitute notice to each Purchaser), to:

 

	
  Pershing
  Square Capital Management, L.P.

  
	
  888
  Seventh Avenue, 42nd Floor

  
	
  New
  York, New York 10019

  
	
  Attention:

  	
  William A. Ackman

  
	
   

  	
  Roy J. Katzovicz

  
	
  Facsimile:

  	
  (212) 286-1133

  
	
   

  
	
  with
  a copy (which shall not constitute notice) to:

  
	
   

  
	
  Sullivan &
  Cromwell LLP

  
	
  125
  Broad Street

  
	
  New
  York, New York 10004

  

 

93

 

	
  Attention:

  	
  Andrew G. Dietderich, Esq.

  
	
   

  	
  Alan J. Sinsheimer, Esq.

  
	
  Facsimile:

  	
  (212) 558-3588

  
	
   

  	
   

  
	
  (b)           If to the Company, to:

  
	
   

  
	
  General
  Growth Properties, Inc.

  
	
  110
  N. Wacker Drive

  
	
  Chicago, Illinois
  60606

  
	
  Attention:

  	
  Ronald L. Gern, Esq.

  
	
  Facsimile:

  	
  (312) 960-5485

  
	
   

  	
   

  
	
  with
  a copy (which shall not constitute notice) to:

  
	
   

  	
   

  
	
  Weil,
  Gotshal & Manges LLP

  
	
  767
  Fifth Avenue

  
	
  New
  York, New York 10153

  
	
  Attention:

  	
  Marcia
  L. Goldstein, Esq.

  
	
   

  	
  Frederick S. Green, Esq.

  
	
   

  	
  Gary T. Holtzer, Esq.

  
	
   

  	
  Malcolm E.
  Landau, Esq.

  
	
  Facsimile:

  	
  (212) 310-8007

  

 

SECTION 13.2             Assignment; Third Party
Beneficiaries.  Neither
this Agreement nor any of the rights, interests or obligations under this
Agreement may be assigned by any party without the prior written consent of the
other party.  Notwithstanding the
previous sentence, this Agreement, or a Purchaser’s rights, interests or
obligations hereunder (including, without limitation, the right to receive any
securities pursuant to the Transactions), may be assigned or transferred, in
whole or in part, by such Purchaser (a) to one or more members of its
Purchaser Group; provided, that no such assignment shall release such
Purchaser from its obligations hereunder to be performed by such Purchaser on
or prior to the Closing Date or (b) with the prior written consent of the
Company, not to be unreasonably withheld, conditioned or delayed, to one or
more credit-worthy financial institutions who agree in writing to perform the
applicable obligations of such Purchaser hereunder (any assignment under clause
(b) to which the Company has so consented shall release such Purchaser
from its obligations hereunder to the extent of the obligations assigned).  Without prejudice to the foregoing, the
Company agrees that Purchasers may designate to Blackstone Real Estate Partners
VI L.P., a Delaware limited partnership (together with its permitted assigns, “Blackstone”),  (i) the Purchasers’ right to purchase
8,287,895 of the Shares (the “Blackstone Assigned Shares”) and 100,191
of the GGO Shares (together with the Blackstone Assigned Shares, the “Blackstone
Assigned Securities”), in each case, that the Purchasers are entitled to
purchase at Closing pursuant to this Agreement, (ii) the Purchasers’ right
to receive 714,286 of the New Warrants (the “Blackstone Assigned Warrants”)
and 83,333 of the GGO Warrants, in each case, issuable to the Purchasers
pursuant to this Agreement, (iii)

 

94

 

the Purchasers’ right to receive 7.634% of the
Purchasers’ compensation in the form of New Common Stock with respect to the
GGP Backstop Rights Offering and other rights of the Purchasers’ set forth in Section 6.9(a) and
Section 6.9(b) in the event the Purchasers designate
Blackstone as one of their designees to subscribe for New Common Stock in such
GGP Backstop Rights Offering, and (iv) the Purchasers’ right to receive
7.634% of the shares of Common Stock (and other Share Equivalents) which are
offered to the Purchasers pursuant to the Purchasers’ pre-Closing subscription
rights set forth in Section 7.1(u) in the event the Purchasers
elect to purchase the shares offered to them in such offering, provided that (1) the
Company’s agreement as aforesaid is subject to Blackstone (A) paying to
the Company and GGO, as applicable, by wire transfer of immediately available
funds at the Closing the aggregate purchase price payable pursuant to this
Agreement for the Blackstone Assigned Securities (the “Blackstone Purchase
Price”) and the purchase price for shares received by Blackstone pursuant
to clauses (iii) and (iv) above, (B) agreeing in a writing
reasonably satisfactory to, and for the benefit of, the Company that the
Blackstone Assigned Securities shall be subject to such transfer
restrictions/lock-ups as contemplated by Section 6.4 of this Agreement
(and not the longer lock-ups applicable to shares sold to the Brookfield
Investor), including being subject to a limited 120-day lock-up in connection
with certain equity sales within 30 days of the Effective Date but excluding
any restrictions imposed by the Non-Control Agreement, and (C) entering
into joinder agreements reasonably acceptable to, and for the benefit of, the
Company with respect to the provisions of clause (B) and the registration
rights agreement referred to in the following sentence, and (2) in no
event shall any Purchaser be released from any of its obligations hereunder
(including in respect of the Blackstone Assigned Securities) unless and until
Blackstone shall have complied with clauses (A), (B) and (C) above.  In the event of the closing of the purchase
by Blackstone from the Company and GGO, as applicable, of the Blackstone
Assigned Securities and the payment by Blackstone to the Company and GGO, as
applicable, of the Blackstone Purchase Price at Closing as aforesaid, (x) the
Purchasers shall be released from the obligation to pay the Company the
purchase price for the Blackstone Assigned Securities (but not from the
obligation to pay the purchase price pursuant to this Agreement for any other
Shares or GGO Shares or other obligations hereunder) and (y) the shelf
registration statement contemplated by Section 7.1(l) shall
cover the resale by Blackstone of the Blackstone Assigned Shares and the New
Common Stock issuable upon exercise of the Blackstone Assigned Warrants and the
registration rights agreement of the Company referenced in Section 7.1(l) shall
include Blackstone and its securities to the same extent as it applies to the
Purchasers and their securities (except that demand registration rights shall
not be available to Blackstone). 
Blackstone may assign the foregoing rights, in whole or in part, to one
or more Affiliates, provided that no such assignment shall release Blackstone
Real Estate Partners VI L.P. from any obligations assigned by a Purchaser to
it.  This Agreement (including the
documents and instruments referred to in this Agreement) is not intended to and
does not confer upon any person other than the parties hereto any rights or
remedies under this Agreement. 
Notwithstanding the foregoing, or any other provisions herein to the
contrary, no Purchaser may assign any of its rights, interests or obligations
under this Agreement to the extent such assignment would preclude the
applicable securities Laws exemptions

 

95

 

from being available or such assignment would cause
a failure of the closing condition in Section 7.1(u) of the
Brookfield Agreement.

 

SECTION 13.3             Prior Negotiations; Entire
Agreement.  This
Agreement (including the exhibits hereto and the documents and instruments
referred to in this Agreement) constitutes the entire agreement of the parties
and supersedes all prior agreements, arrangements or understandings, whether
written or oral, between the parties with respect to the subject matter of this
Agreement.

 

SECTION 13.4             Governing Law; Venue.  THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.  EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS
TO THE JURISDICTION OF, AND VENUE IN, THE UNITED STATES BANKRUPTCY COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND EACH PARTY WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS.

 

SECTION 13.5             Company Disclosure Letter.  The Company Disclosure Letter shall be
arranged to correspond to the Articles and Sections of this Agreement, and the
disclosure in any portion of the Company Disclosure Letter shall qualify the
corresponding provision in Article III and any other provision of Article III
to which it is reasonably apparent on the face of the disclosure that such
disclosure relates.  No disclosure in the
Company Disclosure Letter relating to any possible non-compliance, breach or
violation of any Contract or Law shall be construed as an admission that any
such non-compliance, breach or violation exists or has actually occurred.  In the Company Disclosure Letter, (a) all
capitalized terms used but not defined therein shall have the meanings assigned
to them in this Agreement and (b) the Section numbers correspond to
the Section numbers in this Agreement.

 

SECTION 13.6             Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each of the
parties; and delivered to the other party (including via facsimile or other
electronic transmission), it being understood that each party need not sign the
same counterpart.

 

SECTION 13.7             Expenses.  Each party shall bear its own expenses
incurred or to be incurred in connection with the negotiation and execution of
this Agreement and each other agreement, document and instrument contemplated
by this Agreement and the consummation of the transactions contemplated hereby
and thereby.

 

SECTION 13.8             Waivers and Amendments.  This Agreement may be amended, modified,
superseded, cancelled, renewed or extended, and the terms and conditions of
this Agreement may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance, and
subject, to the extent required, to the approval of the Bankruptcy Court.  No delay on the part of any party in exercising
any right, power or privilege pursuant to this Agreement shall operate as a
waiver thereof,

 

96

 

nor shall any waiver on the part of any party of any
right, power or privilege pursuant to this Agreement, nor shall any single or
partial exercise of any right, power or privilege pursuant to this Agreement,
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege pursuant to this Agreement.  The rights and remedies provided pursuant to
this Agreement are cumulative and are not exclusive of any rights or remedies
which any party otherwise may have at law or in equity.

 

SECTION 13.9             Construction.

 

(a)           The headings in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement.

 

(b)           Unless the context otherwise
requires, as used in this Agreement:  (i) an
accounting term not otherwise defined in this Agreement has the meaning
ascribed to it in accordance with GAAP; (ii) “or” is not exclusive;
(iii) “including” and its variants mean “including, without limitation”
and its variants; (iv) words defined in the singular have the parallel
meaning in the plural and vice versa; (v) references to “written” or “in
writing” include in visual electronic form; (vi) words of one gender shall
be construed to apply to each gender; (vii) the terms “Article,” “Section,”
and “Schedule” refer to the specified Article, Section, or Schedule of or to
this Agreement; and (viii) the term “beneficially own” shall have the
meaning determined pursuant to Rule 13d-3 under the Exchange Act as in
effect on the date hereof; provided, however, that a Person will be deemed to
beneficially own (and have beneficial ownership of) all securities that such
Person has the right to acquire, whether such right is exercisable immediately
or with the passage of time or the satisfaction of conditions. The terms “beneficial
ownership” and “beneficial owner” have correlative meanings.

 

(c)           Notwithstanding anything to
the contrary, and for all purposes of this Agreement, any public announcement
or filing of factual information relating to the business, financial condition
or results of the Company or its Subsidiaries, or a factually accurate (in all
material respects) public statement or filing that describes the Company’s
receipt of an offer or proposal for a Competing Transaction and the operation
of this Agreement with respect thereto, or any entry into a confidentiality
agreement, shall not be deemed to evidence the Company’s or any Subsidiary’s
intention to support any Competing Transaction.

 

(d)           In the event of a conflict
between the terms and conditions of this Agreement and the Plan Summary Term
Sheet, the terms and conditions of this Agreement shall govern.

 

(e)           Unless otherwise agreed in
writing between the Company and each Purchaser, wherever this Agreement
requires the action by, consent of or delivery to Purchaser, Purchasers, each
Purchaser or similar parties, each Purchaser hereby appoints PSCM as its
attorney-in-fact to exercise all of the rights of such Purchaser hereunder
(except for the assumption of any funding or related liabilities or
obligations), and the Company may rely on any instructions or elections made by
such Person.

 

97

 

SECTION 13.10           Adjustment of Share Numbers
and Prices.  The number
of Shares to be purchased by each Purchaser at the Closing pursuant to Article I,
the Per Share Purchase Price, the GGO Per Share Purchase Price, the number of
GGO Shares to be purchased by such Purchaser pursuant to Article II
and any other number or amount contained in this Agreement which is based upon
the number or price of shares of GGP or GGO shall be proportionately adjusted
for any subdivision or combination (by stock split, reverse stock split,
dividend, reorganization, recapitalization or otherwise) of the Common Stock,
New Common Stock or GGO Common Stock that occurs during the period between the
date of this Agreement and the Closing. 
In addition, if at any time prior to the Closing or the consummation of the repurchase of Repurchase Shares or the Put
Option, as applicable, the Company or GGO shall declare or make a
dividend or other distribution whether in cash or property (other than a
dividend or distribution payable in common stock of the Company or GGO, as
applicable, the GGO Share Distribution or a distribution of rights contemplated
hereby), the Per Share Purchase Price or the GGO Per Share Purchase Price or the applicable price for the definition of Permitted Replacement Shares, as
applicable, shall be proportionally adjusted thereafter by the Fair Market
Value (as defined in the Warrant Agreement) per share of the dividend or
distribution. If a transaction results in any adjustment to the exercise price
for and number of Shares underlying the warrants issued to the other Initial
Investors pursuant to Article 5 of the Warrant Agreement, the exercise
price for and number of shares underlying each of the New Warrants and GGO
Warrants described in Section 5.2 of this Agreement shall be
adjusted for that transaction in the same manner.

 

SECTION 13.11           Certain Remedies.

 

(a)           The parties agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement or of any other agreement between them with respect to the
Transaction were not performed in accordance with their specific terms or were
otherwise breached.  It is accordingly
agreed that, in addition to any other applicable remedies at law or equity, the
parties shall be entitled to an injunction or injunctions, without proof of
damages, to prevent breaches of this Agreement or of any other agreement
between them with respect to the Transaction and to enforce specifically the
terms and provisions of this Agreement.

 

(b)           To the fullest extent
permitted by applicable law, the parties shall not assert, and hereby waive,
any claim or any such damages, whether or not accrued and whether or not known
or suspect to exist in its favor, against any other party and its respective
Affiliates, members, members’ affiliates, officers, directors, partners,
trustees, employees, attorneys and agents on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) (whether or not the claim therefor is based on contract, tort
or duty imposed by any applicable legal requirement) arising out of, in
connection with, or as a result of, this Agreement or of any other agreement
between them with respect to the Transaction or the transactions contemplated
hereby or thereby.

 

98

 

(c)           Prior to the entry of the
Confirmation Order, other than with respect to the Company’s obligations under Section 5.1(c),
each Purchaser’s right to receive the Warrants on the terms and subject to the
conditions set forth in this Agreement shall constitute the sole and exclusive
remedy of any nature whatsoever (whether for monetary damages, specific
performance, injunctive relief, or otherwise) of such Purchaser against the
Company for any harm, damage or loss of any nature relating to or as a result
of any breach of this Agreement by the Company or the failure of the Closing to
occur for any reason; provided, that, following the entry of the
Approval Order, each Purchaser shall be entitled to specific performance of the
Company’s obligation to issue the Warrants as well as the Company’s obligations
under Section 5.1(c) hereof.

 

(d)           Following the entry of the
Confirmation Order, each Purchaser shall be entitled to specific performance of
the terms of this Agreement, in addition to any other applicable remedies at
law.

 

(e)           The Company, on behalf of
itself and its respective heirs, successors, and assigns, hereby covenants and
agrees never to institute or cause to be instituted or continue prosecution of
any suit or other form of action or proceeding of any kind or nature whatsoever
against any member of any Purchaser or its Purchaser Group by reason of or in
connection with the Transaction; provided, however, that nothing
shall prohibit the Company from instituting an action against any Purchaser in
connection with this Agreement in accordance with the provisions of this Section 13.11.

 

(f)            For the avoidance of doubt,
the failure of any Purchaser under this Agreement to satisfy its obligations
hereunder shall not relieve any other Purchaser from its obligations hereunder,
including the obligation to consummate the transactions hereunder if all other
conditions to such Purchaser’s obligations have been satisfied or waived.

 

SECTION 13.12           Bankruptcy Matters.  For the avoidance of doubt, all obligations
of the Company and its Subsidiaries in this Agreement are subject to and
conditioned upon (a) with respect to the issuance of the Warrants and the
other obligations contained in the Approval Order, entry of the Approval Order,
and (b) with respect to the remainder of the provisions hereof, entry of
the Confirmation Order.

 

[Signature Page Follows]

 

99

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and
delivered by each of them or their respective officers thereunto duly
authorized, all as of the date first written above.

 

	
   

  	
  PERSHING
  SQUARE CAPITAL MANAGEMENT, L.P.

  
	
   

  	
   

  	
  On
  behalf of each of the Purchasers

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  PS Management GP, LLC

  
	
   

  	
   

  	
  Its:
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  William A. Ackman

  
	
   

  	
   

  	
  Name:

  	
  William
  A. Ackman

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL
  GROWTH PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas H. Nolan, Jr.

  
	
   

  	
  Name:

  	
  Thomas
  H. Nolan, Jr.

  
	
   

  	
  Title:

  	
  President
  and Chief Operating Officer

  
					

 

[SIGNATURE
PAGE OF AMENDED AND RESTATED STOCK PURCHASE AGREEMENT]

 

 

EXHIBIT A - PLAN SUMMARY
TERM SHEET

 

 

GENERAL GROWTH PROPERTIES, INC.

PLAN SUMMARY TERM SHEET(1)

 

8/2/2010

 

This
term sheet (the “Term Sheet”) describes the material terms of a proposed
chapter 11 joint plan of reorganization (the “Plan”) of the Plan Debtors
(as defined below) solely for the purposes of the Investment Agreements (as
defined below).  The transactions
contemplated by this term sheet are subject to conditions to be set forth in
definitive documents, including the Investment Agreements and to the approval
by the United States Bankruptcy Court for the Southern District of New York
(the “Bankruptcy Court”).  This
Term Sheet is not an offer or solicitation for any chapter 11 plan and is being
presented for discussion and settlement purposes only.  Acceptance of any such plan by any party
(including those named herein) will not be solicited from any person or entity
until such person or entity has received the disclosures required under or
otherwise in compliance with applicable law. 
Accordingly, this Term Sheet does not bind any creditor or other party
to vote in favor of or support any chapter 11 plan.  In the event of any inconsistency between the
terms of the Plan and this Term Sheet, or the terms of any applicable
Investment Agreement and this Term Sheet, the terms of the Plan and the
Investment Agreements, respectively, shall control for their respective
purposes.

 

I.              PARTIES/AGREEMENTS

 

	
  A.

  	
  GGP

  	
  General Growth Properties, Inc. (“GGP”) on or before the
  Effective Date and GGP, as reorganized, from and after the Effective Date

  
	
   

  	
   

  	
   

  
	
  B.

  	
  Plan Debtors

  	
  The
  debtors, including GGP, whose chapter 11 cases are pending in the Bankruptcy
  Court under Chapter 11 Case No. 09-11977 (ALG), whose chapter 11 cases have
  not otherwise been confirmed and whose chapter 11 cases will be treated
  pursuant to the Plan (collectively, the “Plan Debtors”)

  
	
   

  	
   

  	
   

  
	
  C.

  	
  Confirmed Debtors

  	
  The
  subsidiary debtors other than the Plan Debtors whose chapter 11 plans have
  been confirmed as of the Effective Date (the “Confirmed Debtors”)

  
	
   

  	
   

  	
   

  
	
  D.

  	
  Debtors

  	
  Plan
  Debtors, Confirmed Debtors and to the extent applicable, any debtor whose
  chapter 11 case is pending under Chapter 11 Case No. 09-11977 (ALG) but that
  is not a Plan Debtor or a Confirmed Debtor

  
	
   

  	
   

  	
   

  
	
  E.

  	
  REP

  	
  REP
  Investments LLC (“REP”)

  
	
   

  	
   

  	
   

  
	
  F.

  	
  Fairholme

  	
  Fairholme
  Capital Management, LLC, on behalf of one or more of its managed funds or
  affiliates of such managed funds (“Fairholme”)

  

 

(1)     Capitalized terms used but
not otherwise defined herein shall have the meanings ascribed to them in the
Investment Agreement to which this Term Sheet is attached.

 

 

	
  G.

  	
  Pershing

  	
  Pershing
  Square Capital Management, L.P., on behalf of one or more of its managed
  funds (“Pershing” and together with REP and Fairholme, the “Purchasers”)

  
	
   

  	
   

  	
   

  
	
  H.

  	
  Confirmed Plans

  	
  The
  chapter 11 plans of the Confirmed Debtors (the “Confirmed Plans”)

  
	
   

  	
   

  	
   

  
	
  I.

  	
  CIA

  	
  Amended
  and Restated Cornerstone Investment Agreement effective as of March 31, 2010
  between REP and GGP (the “CIA”)

  
	
   

  	
   

  	
   

  
	
  J.

  	
  Fairholme Stock Purchase Agreement

  	
  Amended
  and Restated Stock Purchase Agreement effective as of March 31, 2010 between
  the purchasers parties thereto and GGP (the “Fairholme SPA”)

  
	
   

  	
   

  	
   

  
	
  K.

  	
  Pershing Stock Purchase Agreement

  	
  Amended
  and Restated Stock Purchase Agreement effective as of March 31, 2010 between
  the purchasers parties thereto and GGP (the “Pershing SPA” and
  together with the CIA and the Fairholme SPA, the “Investment Agreements”)

  

 

II.            TREATMENT
OF CLAIMS AND INTERESTS

 

	
  A.

  	
  DIP Loan Claims

  	
  ·      Treatment:  Paid in full, in cash on the effective date
  (the “Effective Date”) of the Plan.

   

  ·      The Plan Debtors may, at
  their option, satisfy all or a portion of the DIP Loan Claims through a
  conversion to New Common Stock (a “DIP Conversion”), provided GGP
  engages in a “Qualified Rights Offering” in accordance with the terms of the
  order approving the DIP facility or on such other terms as the parties may
  agree.

  
	
   

  	
   

  	
   

  
	
  B.

  	
  Allowed Administrative Expense
  Claims

  	
  ·      Treatment:  Paid in full, in cash on the Effective Date
  or on such other terms as the parties may agree.

  
	
   

  	
   

  	
   

  
	
  C.

  	
  Allowed Priority Non-Tax Claims

  	
  ·      Treatment:  Paid in full, in cash on the Effective Date
  or on such other terms as the parties may agree.

  
	
   

  	
   

  	
   

  
	
  D.

  	
  Allowed Priority Tax Claims

  	
  ·      Treatment:  At the Plan Debtors’ election, (i) paid in
  full, in cash on the Effective Date, (ii) receive the treatment provided for
  in section 1129(a)(9)(c) of the Bankruptcy Code or (iii) receive treatment on
  such other terms as the parties may agree.

  
	
   

  	
   

  	
   

  
	
  E.

  	
  Allowed Secured Tax Claims

  	
  ·      Treatment:  At the Plan Debtors’ election, (i) paid in
  full, in cash on the Effective Date, (ii) receive the treatment provided for
  in section 1129(a)(9)(d) of the Bankruptcy Code or (iii) receive treatment on
  such other terms as the parties may agree.

  
	
   

  	
   

  	
   

  
	
  F.

  	
  Allowed Mechanics’ Lien Claims

  	
  ·      Treatment:  Paid in full, in cash on the Effective
  Date, as well as any amounts allowed and required to be paid pursuant to
  section 506(b) of the Bankruptcy Code, including postpetition interest at the
  Federal Judgment 

  

 

 

 

	
   

  	
   

  	
  Rate (as defined in the
  Confirmed Plans) unless there is an applicable contractual rate or rate of
  interest under state law, in which case interest shall be paid at such rate
  of interest, provided the claimant satisfies certain notice requirements
  consistent with those terms contained in the Confirmed Plans.  The mechanics’ liens securing the
  Mechanics’ Lien Claims shall be deemed released and shall require no further
  action on the part of the holders of the Mechanics’ Lien Claims.

  
	
   

  	
   

  	
   

  
	
  G.

  	
  Allowed Other Secured Claims

  	
  ·      Treatment:  At the Plan Debtors’ option, on the
  Effective Date, holders of allowed Other Secured Claims shall either (a) be
  reinstated and rendered unimpaired, (b) receive cash in an amount equal to
  such allowed Other Secured Claim plus any interest allowed and required to be
  paid under section 506(b) of the Bankruptcy Code, (c) receive the collateral
  securing its allowed Other Secured Claim or (d) such other treatment as the
  holder of the Other Secured Claim and the Plan Debtors may agree.

  
	
   

  	
   

  	
   

  
	
  H.

  	
  Rouse 8.00% Note Claims

  	
  ·      Treatment: On the
  Effective Date, the Allowed Rouse 8.00% Note Claims shall be satisfied in
  full, in cash or shall receive such other treatment as is permissible
  pursuant to section 1129 of the Bankruptcy Code.  In addition, the Plan
  Debtors shall pay in cash any outstanding reasonable agent or trustee fees
  and expenses provided for under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  I.

  	
  Rouse 3.625% Note Claims

  	
  ·      Treatment: On the
  Effective Date, the Allowed Rouse 3.625% Note Claims shall be satisfied in
  full, in cash or shall receive such other treatment as is permissible
  pursuant to section 1129 of the Bankruptcy Code.  In addition, the Plan
  Debtors shall pay in cash any outstanding reasonable agent or trustee fees
  and expenses provided for under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  J.

  	
  Rouse 5.375% Note Claims

  	
  ·      Treatment:  On the Effective Date, the Allowed Rouse
  5.375% Note Claims (i) shall be cured and reinstated in accordance with
  section 1124 of the Bankruptcy Code, or (ii) shall receive such other
  treatment as is permissible under section 1129 of the Bankruptcy Code. 
  In addition, the Plan Debtors shall pay in cash any outstanding reasonable
  agent or trustee fees and expenses provided for under the applicable
  indenture.

  
	
   

  	
   

  	
   

  
	
  K.

  	
  Rouse 63⁄4% Note Claims

  	
  ·      Treatment: On the
  Effective Date, the Allowed Rouse 63⁄4  % Note Claims (i) shall be cured and
  reinstated in accordance with section 1124 of the Bankruptcy Code, or (ii)
  shall receive such other treatment as is permissible under section 1129 of
  the Bankruptcy Code.  In addition, the
  Plan Debtors shall pay in cash any outstanding reasonable agent or trustee
  fees and 

  

 

 

	
   

  	
   

  	
  expenses provided for
  under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  L.

  	
  Rouse 7.20% Note Claims

  	
  ·      Treatment: On the
  Effective Date, the Allowed Rouse 7.20%  Note
  Claims (i) shall be cured and reinstated in accordance with section 1124 of
  the Bankruptcy Code, or (ii) shall receive such other treatment as is
  permissible under section 1129 of the Bankruptcy Code.  In addition, the Plan Debtors shall pay in
  cash any outstanding reasonable agent or trustee fees and expenses provided
  for under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  M.

  	
  2006 Bank Loan Claims

  	
  ·      Treatment: On the
  Effective Date, the Allowed 2006 Bank Loan Claims shall be satisfied in full,
  in cash.  In addition, the Plan Debtors
  shall pay in cash any outstanding reasonable agent fees and expenses provided
  for under the applicable loan agreement.

  
	
   

  	
   

  	
   

  
	
  N.

  	
  144A Exchangeable Notes Claims

  	
  ·      Treatment: On the Effective
  Date, the Allowed 144A Exchangeable Note Claims (i) shall be cured and
  reinstated in accordance with section 1124 of the Bankruptcy Code or at the
  option of such holders, shall be satisfied in cash at par plus accrued
  interest at the stated non-default contract rate and shall be deemed to have
  waived any other claims, or (ii) shall receive such other treatment as is
  permissible under section 1129 of the Bankruptcy Code.  In addition, the Plan Debtors shall pay in
  cash any outstanding reasonable agent or trustee fees and expenses provided
  for under the applicable indenture. 
  For the avoidance of doubt, in the event the Plan Debtors determine to
  provide the treatment option pursuant to subsection (ii) above subsequent to
  a holder of an Allowed 144A Exchangeable Notes Claim electing to receive cash
  at par plus accrued interest, such election shall not be binding on such
  holder.

  
	
   

  	
   

  	
   

  
	
  O.

  	
  2006 Trust Preferred Shared and
  Junior Subordinated Notes (the “TRUPs Claims”)

  	
  ·      Treatment:  On the Effective Date, the Allowed TRUPs
  Claims shall be cured and reinstated in accordance with section 1124 of the
  Bankruptcy Code or shall receive such other treatment permissible under
  section 1129 of the Bankruptcy Code. 
  In addition, the Plan Debtors shall pay in cash any outstanding
  reasonable trustee fees and expenses provided for under the applicable trust
  agreement.

  
	
   

  	
   

  	
   

  
	
  P.

  	
  Allowed General Unsecured Claims

  	
  ·      Treatment: On the
  Effective Date, holders of Allowed General Unsecured Claims shall (i) receive
  payment in full, in cash with postpetition interest at the Federal Judgment
  Rate, unless there is an applicable contractual rate or rate of interest
  under state law, in which case interest shall be paid at such rate of
  interest, provided the claimant satisfies certain notice requirements
  consistent with those terms contained in the Confirmed 

  

 

 

	
   

  	
   

  	
  Plans or (ii) shall
  receive such other treatment permissible under section 1129 of the Bankruptcy
  Code.

  
	
   

  	
   

  	
   

  
	
  Q.

  	
  Partner Note GGP/Homart II, L.L.C.
  Claims

  	
  ·      Treatment:  On the Effective Date, at the election of
  the Plan Debtors, the Allowed Partner Note GGP/Homart II L.L.C. Claims (i)
  shall be cured and reinstated in accordance with section 1124 of the
  Bankruptcy Code, (ii) shall be satisfied in full, in cash or (iii) shall
  receive such other treatment permissible under section 1129 of the Bankruptcy
  Code.

  
	
   

  	
   

  	
   

  
	
  R.

  	
  Partner Note GGP Ivanhoe, Inc.
  Claims

  	
  ·      Treatment: On the
  Effective Date, at the election of the Plan Debtors, the Allowed Partner Note
  GGP Ivanhoe, Inc. Claims (i) shall be cured and reinstated in accordance with
  section 1124 of the Bankruptcy Code, (ii) shall be satisfied in full, in cash
  or (iii) shall receive such other treatment permissible under section 1129 of
  the Bankruptcy Code.  In the event the
  holders of Allowed Partner Note GGP Ivanhoe, Inc.  Claims are reinstated, the guaranty
  currently securing the obligations under the GGP Ivanhoe, Inc. Partner Note
  shall be affirmed and shall continue post emergence.

  
	
   

  	
   

  	
   

  
	
  S.

  	
  GGP TRS Retained Debt Claims

  	
  ·      Treatment:  On the Effective Date, the joint venture
  agreement between GGP LP and TRS JV Holdco, LLC shall be assumed, and the
  Plan Debtors shall make any cure payments required thereunder.

  
	
   

  	
   

  	
   

  
	
  T.

  	
  Allowed Project Level Debt
  Guaranty Claims(2)

  	
  ·      Treatment:  On the Effective Date, at the election of
  the Plan Debtors, the holders of allowed Project Level Debt Guaranty Claims
  shall receive a replacement guaranty or such other treatment under the Plan
  as contemplated by the Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  U.

  	
  Allowed Hughes Heirs Obligations

  	
  ·      Treatment:  On the Effective Date, the holders of
  allowed Hughes Heirs Obligations shall receive property of a value (a) as
  agreed to by the Debtors and such holders or (b) ordered by the Bankruptcy
  Court, in satisfaction of the allowed amount of their claims or interests; provided that, to the extent
  permissible, the Hughes Heirs Obligations may be satisfied, in whole or in
  part, through the issuance of GGO Stock.

  
	
   

  	
   

  	
   

  
	
  V.

  	
  Intercompany Obligations

  	
  ·      Treatment: On the
  Effective Date, Intercompany Obligations shall be reinstated and treated in
  the ordinary course of business or eliminated in the ordinary course of
  business, including the elimination 

  

 

(2) Allowed Project Level Debt Guaranty Claims include Existing Credit
Enhancement Claims (as such term is defined in the Confirmed Plans) with
respect to the Special Consideration Properties (as such term is defined in the
Confirmed Plans).

 

 

	
   

  	
   

  	
  of any Intercompany
  Obligations owed to or from any entities to be transferred to GGO.

  
	
   

  	
   

  	
   

  
	
  W.

  	
  GGPLP LLC Preferred Equity
  Interests

  	
  ·      Treatment: On the
  Effective Date, the holder of GGPLP LLC preferred equity interests (“GGPLP
  LLC Preferred Equity Interests”) will receive (i) (a) a distribution of
  Cash based on its share of dividends accrued and unpaid prior to the
  Effective Date and (b) reinstatement of its preferred units in Reorganized
  GGPLP LLC, which shall be in the same number of preferred units in
  Reorganized GGPLP LLC as it held as of the Record Date in GGPLP LLC or (ii)
  if the Bankruptcy Court determines that holders of such interests are
  impaired, such other treatment as is required under section 1129(b) of the
  Bankruptcy Code, less any applicable tax withholding as required by the
  applicable agreements.

  
	
   

  	
   

  	
   

  
	
  X.

  	
  GGPLP Preferred Equity Interests

  	
  ·      Treatment:  On the Effective Date, holders of GGPLP
  Preferred Equity Interests will receive (i) (a) a distribution of Cash based
  on their pro rata share of dividends accrued and unpaid prior to the
  Effective Date, (b) reinstatement of their preferred units in Reorganized
  GGPLP, which shall be in the same number of preferred units in Reorganized
  GGPLP as they held as of the Record Date in GGPLP, provided, however, that
  any prepetition direct or indirect redemption rights which may have, at GGP’s
  option, been satisfied in shares of GGP Common Stock or 8.5% Cumulative
  Convertible Preferred Stock, Series C, as applicable, shall, in accordance
  with the applicable provisions of their prepetition agreements, subsequently
  be satisfied, at New GGP’s option, in shares of New GGP Common Stock or New
  GGP Series C Preferred Stock, as applicable, on terms consistent with such
  prepetition agreements and (c) a pro rata amount of Spinco Common Stock as if
  such holder of GGP LP Preferred Equity Units had converted to GGP LP Common
  UPREIT Units immediately prior to the Distribution Record Date or (ii) if the
  Bankruptcy Court determines that holders of such interests are impaired, such
  other treatment as is required under section 1129(b) of the Bankruptcy Code,
  less any applicable tax withholding as required by the applicable agreements.

  
	
   

  	
   

  	
   

  
	
  Y.

  	
  GGPLP Common UPREIT Units

  	
  ·      Treatment: On the
  Effective Date, holders of GGPLP Common UPREIT Units will receive (a) a
  distribution of Cash equal to $.019 per unit and may elect between (a) (i)
  reinstatement of such units in Reorganized GGPLP, which shall be in the same
  number as held as of the Record Date, provided, however, that any prepetition
  redemption or conversion rights, as applicable, held by such GGP LP Common
  UPREIT 

  

 

 

	
   

  	
   

  	
  Unit holders which GGP had
  the obligation or option, as applicable, to satisfy in shares of GGP Common
  Stock, shall, in accordance with the applicable provisions of their
  prepetition agreement, subsequently be satisfied, at New GGP’s option or
  obligation, in shares of New GGP Common Stock on conversion or redemption
  terms consistent with such prepetition agreements, plus, a pro rata amount of
  GGO Common Stock on account of such units or (ii) being deemed to have
  converted or redeemed, as applicable, their GGPLP Common UPREIT Units
  effective the day prior to the Distribution Record Date in exchange for GGP
  Common Stock on terms consistent with such holder’s prepetition agreements,
  thereby receiving such treatment as if such holder owned GGP Common Stock on
  the Distribution Record Date or (b) if the Bankruptcy Court determines that
  holders of such interests are impaired, such other treatment as is required
  under section 1129(b) of the Bankruptcy Code, less any applicable tax
  withholding as required by the applicable agreements.

  
	
   

  	
   

  	
   

  
	
  Z.

  	
  GGP Common Stock

  	
  ·      Treatment: On the
  Effective Date, each holder of GGP Common Stock shall receive its
  proportionate share of (i) the New Common Stock and (ii) the GGO Share
  Distribution.

  
	
   

  	
   

  	
   

  
	
  AA.

  	
  REIT Preferred Stock Interests

  	
  ·      On the Effective Date,
  holders of REIT Preferred Stock Interests will receive (1) a distribution of Cash
  based on their pro rata share of dividends accrued and unpaid prior to the
  Effective Date (if any) and (2) reinstatement of their REIT Preferred Stock
  Interests in the same number as they held as of the Distribution Record Date.

  
	
   

  	
   

  	
   

  
	
  BB.

  	
  Outstanding Warrants

  	
  ·      Treatment: On the
  Effective Date, the outstanding Warrants (as such term is defined in the
  Investment Agreements) shall be cancelled and each holder of the Warrants (or
  certain qualifying affiliates) shall receive fully vested warrants to
  purchase New Common Stock and fully vested warrants to purchase GGO Common
  Stock, in each case, in such numbers and on such terms as provided in the
  applicable Investment Agreement.

  
	
   

  	
   

  	
   

  
	
  CC.

  	
  Outstanding Options

  	
  ·      Treatment: On the
  Effective Date, the Debtors shall assume outstanding prepetition option
  awards to purchase GGP Common Stock, which may entitle option holders to an
  option to purchase New Common Stock and an option to purchase GGO Common
  Stock or a contractual right to elect to cash out.

  

 

 

III.           CLOSING
DATE DEBT AND GGO PROMISSORY NOTE

 

	
  A.

  	
  Closing Date Net Debt and GGO
  Promissory Note

  	
  ·      The Closing Date Net Debt
  shall be determined in accordance with the CIA and the Plan and the GGO
  Promissory Note, if any, shall be issued on the Effective Date.

   

   

  

 

IV.           OTHER PLAN
TERMS

 

	
  A.

  	
  Executory Contracts and Unexpired
  Leases

  	
  ·      All executory contracts
  (including employee benefit plans, insurance, supply contracts, etc.) and
  unexpired leases will be assumed unless expressly rejected under the Plan or
  through a separate motion.

  
	
   

  	
   

  	
   

  
	
  B.

  	
  Provisions Concerning Resolution
  of Disputed, Contingent, and Unliquidated Claims and Claims Payable by Third
  Parties

  	
  ·      The Plan will contain
  usual and customary provisions for resolving disputed, contingent and
  unliquidated claims and claims payable by third parties, including (to the
  extent appropriate) provisions consistent with the terms contained in the
  Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  C.

  	
  Employee/ Officer/ Director
  Indemnification Obligations

  	
  ·      The Plan Debtors’
  indemnification obligations for employees, officers, directors, trustees or
  managers shall be deemed assumed, in accordance with the provisions in the
  Confirmed Plans, unless otherwise expressly rejected by separate motion or
  under the Plan.

  
	
   

  	
   

  	
   

  
	
  D.

  	
  Provisions Concerning Plan
  Implementation

  	
  ·      The Plan shall provide for
  usual and customary means of implementation, including (to the extent
  appropriate) implementation provisions consistent with the terms contained in
  the Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  E.

  	
  Transfer Restrictions

  	
  ·      The plan shall provide
  that, in addition to the covenants set forth in the Non Control Agreement,
  REP shall not sell, transfer or dispose of (x) any Shares, New Warrants,
  or shares issuable upon exercise of the New Warrants during the period from
  and after the Closing Date to the six (6) month anniversary of the
  Closing Date, (y) in excess of (A) 8.25% of the Shares and
  (B) 8.25% of the New Warrants or shares issuable upon exercise of the
  New Warrants, in the aggregate, during the period from and after the six
  (6) month anniversary of the Closing Date to the one (1) year
  anniversary of the Closing Date and (z) in excess of (A) 16.5% of
  the Shares and (B) 16.5% of the New Warrants or the shares issuable upon
  exercise of the New Warrants, in the aggregate (and taken together with any
  Transfers effected under clause (y)), during the period from and after the
  six (6) month anniversary of the Closing Date to the eighteen (18) month
  anniversary of the Closing Date. For clarity, Purchaser shall not be
  restricted from Transferring any Shares, New Warrants, or shares 

  

 

 

	
   

  	
   

  	
  issuable upon exercise of
  the New Warrants from and after the eighteen (18) month anniversary of the
  Closing Date.

  
	
   

  	
   

  	
   

  
	
  F.

  	
  Insurance Policies, Benefit
  Plans, Surety Bonds

  	
  ·      The Plan Debtors’
  insurance policies, benefit plans, workers’ compensation claims, and surety
  bonds shall be treated in a manner consistent with that provided in the
  Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  G.

  	
  Retention of Causes of Action

  	
  ·      All causes of action shall
  vest with GGP or GGO, as applicable

  
	
   

  	
   

  	
   

  
	
  H.

  	
  Conditions for Consummation and
  Confirmation

  	
  ·      Usual and customary for
  transactions of this type

  
	
   

  	
   

  	
   

  
	
  I.

  	
  Discharge, Releases and
  Exculpation

  	
  ·      The Plan will contain
  discharge, release and exculpation provisions in a manner consistent with
  those provided in the Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  J.

  	
  Governing Law

  	
  ·      To the extent the
  Bankruptcy Code or other federal law does not apply, New York law shall
  govern.

  

 

 

EXHIBIT E

 

GGO ASSETS

 

Pursuant to Section
2.1(a), and subject to the conditions, exceptions and qualifications set
forth therein, the Company will contribute to GGO (directly or indirectly) the
assets (and/or equity interests related thereto) listed below:

 

·                  Master Planned Communities

 

·                  Bridgeland

 

·                  Columbia — subject to Section 2.1(e) of the Agreement
and including a right of first offer and purchase option with respect to
certain office buildings in Columbia pursuant to the terms of the development
agreement that will be attached to the Separation Agreement.  For the avoidance of doubt, The Mall in
Columbia and Gateway Overlook (including related development rights) shall not
to be transferred to GGO.

 

·                  Emerson

 

·                  Fairwoods

 

·                  Summerlin

 

·                  Woodlands — joint venture interest

 

ARTICLE
I.110 N. Wacker (leasehold
interest) — joint venture interest

 

·                  Ala Moana Tower — air rights over existing parking
deck

 

·                  Alameda Plaza, Idaho

 

·                  Allen Towne Plaza, Texas

 

ARTICLE
II.Arizona 2 Office Note — A
note that will approximate the capital lease revenue from Arizona 2 Office
only; there will be no transfer to GGO of underlying properties or any
ownership or occupancy interest therein

 

·                  Bridges at Mint Hill, North Carolina

 

·                  Century Plaza, Alabama

 

·                  Circle T Ranch & Power Centre, Texas — joint
venture interest

 

ARTICLE
III.Condos Nouvelle at Natick —
rights to income from assets sold and for which a closing has occurred prior to
Closing remain with GGP

 

·                  Cottonwood Mall and Cottonwood Square

 

·                  Elk Grove Promenade

 

 

ARTICLE
IV.Fashion Show Air Rights -
Springing right to acquire an 80% ownership interest in the air above the
portions of Fashion Show Mall owned by GGP upon satisfaction of the existing
loans and guaranties at Fashion Show Mall and The Shoppes at the Palazzo as
described in and pursuant to the provisions of the Fashion Show Core Principles
document that will be attached to the Separation Agreement.

 

ARTICLE
V.Golf course interests - TPC
Summerlin & TPC Canyons

 

·                  Hexalon (but not Hexalon’s interest in General Growth
Management, Inc.)

 

·                  Kendall Towne Center, Miami — land

 

·                  Landmark Mall

 

·                  Maui Ranch property

 

·                  Park West Mall

 

·                  Princeton, New Jersey — land

 

·                  Rio West, New Mexico

 

·                  Riverwalk Market Place

 

·                  South Street Seaport

 

·                  Summerlin Centre

 

ARTICLE
VI.Summerlin Hospital — joint
venture interest

 

·                  Victoria Ward

 

·                  Village of Redlands, California (Redlands Mall and
Redlands Promenade)

 

·                  Volo, Illinois — land

 

 

Exhibit M

 

FORM OF

NON-CONTROL AGREEMENT (GGP Version)

 

This
Non-Control Agreement (this “Agreement”) is dated as of [•] 2010 (the “Effective Date”),
by and between General Growth Properties, Inc., a Delaware corporation (the “Company”),
[insert names of Pershing Square or Fairholme purchasers](3) (collectively, “Investor”).

 

WHEREAS,
Investor has entered into that certain Stock Purchase Agreement, dated as of [•], 2010 (the “Investment Agreement”), that
contemplates, among other things, the purchase by Investor of shares of Common
Stock subject to the terms and conditions contained therein;

 

WHEREAS,
the transactions contemplated by the Investment Agreement are intended to
assist the Company in its plans to recapitalize and emerge from bankruptcy and
is not intended to constitute a change of control of the Company or otherwise
give Investor the power to control the business and affairs of the Company;

 

WHEREAS,
as a material condition to the Company’s and Investor’s obligations to
consummate the transactions contemplated by the Investment Agreement, the
Company and Investor have agreed to execute this Agreement; and

 

WHEREAS,
certain terms used in this Agreement are defined in Section 4.1.

 

NOW
THEREFORE, in consideration of the premises and the mutual covenants and
agreements hereinafter contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

COMPANY
RELATED PRINCIPLES

 

Board of Directors.  So long as Investor and the Investor Parties,
collectively, shall Beneficially Own more than ten percent (10%) of the
outstanding shares of Common Stock, none
of Investor or the Investor Parties shall take any action that is inconsistent
with its support for the following corporate governance principles:

 

A majority of the members of
the Board shall be Independent Directors, where “Independent Director”
means a director who satisfies all standards for independence promulgated by
the New York Stock Exchange (or the applicable exchange where shares of Common
Stock are then listed);

 

(3)  The purchasers under Pershing Square’s
Investment Agreement will collectively sign one Non-Control Agreement and the
purchasers under Fairholme’s Investment Agreement will collectively sign
another Non-Control Agreement.  The terms
of those two agreements will be substantially similar except for the
differences described in the footnotes later in this agreement.

 

 

the Board shall have a
nominating committee, a majority of which shall be Disinterested Directors;

 

in connection with any
stockholder meeting or consent solicitation relating to the election of members
of the Board, if Investor and the Investor Parties, collectively, Beneficially
Own a number of shares of Common Stock greater than 10% of the shares of Common
Stock outstanding as of the applicable record date (or, if larger, the largest
number of shares that any Large Stockholder would be permitted to vote in such
election, ignoring for this purpose the right of any Large Stockholder that is
a party to the Brookfield Non-Control Agreement to cast votes for Purchaser
Board Designees and the right of any Large Stockholder that is a party to a
transferee agreement in the form required by this Agreement or the Brookfield
Non-Control Agreement to vote for one director in its sole discretion), then
Investor shall, and shall cause the other Investor Parties to, vote in such
election of members all shares they Beneficially Own in excess of such number
of shares in proportion to the Votes
Cast;(4)

 

the
Board shall consist of nine (9) members and not be increased or reduced, unless
approved by seventy-five percent (75%)  of
the Board;

 

(e)           any
Change in Control (other than a transaction contemplated by Section 2.1(b)(ii))
in which a Large Stockholder or its controlled Affiliate is the acquiror or
part of the acquiror group or is proposed to be directly or indirectly combined
with the Company must be approved by a majority of the Disinterested Directors
as if it were an Affiliated Transaction involving such Large Stockholder and by
a majority of the voting power of the stockholders (other than such Large
Stockholder or its controlled Affiliates); and

 

(f)            any
Change in Control (other than a transaction contemplated by Section 2.2(b)(v))
in which any Large Stockholder or its controlled Affiliate receives per share
consideration in its capacity as a stockholder of the Company in excess of that
to be received by other stockholders, must be approved by a majority of the
Disinterested Directors as if it were an Affiliated Transaction involving such
Large Stockholder and by a majority of the voting power of the stockholders
(other than such Large Stockholder or its controlled Affiliates).

 

The Company shall not waive any provisions similar to
Sections 1.1(c), (e) or (f) above for any Large Stockholder under any other
agreement unless the Company grants a similar waiver under this Agreement.

 

Related Party Transactions.

 

Without the approval of a
majority of the Disinterested Directors, Investor shall not, and shall not
permit any of the Investor Parties to, engage in any Affiliated
Transaction.  “Affiliated Transaction”
means (i) any transaction or series of related transactions, directly or

 

(4)  In the Fairholme Non-Control Agreement, this
will read: “in connection with any stockholder meeting or consent solicitation,
if Investor and the Investor Parties have voting control over a number of
shares of Common Stock in excess of 10% of the number of shares of Common Stock
outstanding as of the applicable record date, then Investor shall, and shall cause
the other Investor Parties to, vote all shares over which they have voting
control in excess of such percentage in proportion to the Votes Cast;”

 

2

 

indirectly, between the Company or any Subsidiary of
the Company, on the one hand, and any of the Investor Parties, on the other
hand, or (ii) without limiting the Company’s obligation to comply with Sections
1.4 and 1.5 hereof, with respect to the purchase or sale of Common
Stock by any of the Investor Parties, any waiver of any limitation or
restriction with respect to such purchase or sale in the Charter or the
Transaction Documents, including any exemption from the Ownership Limit (as
defined in the Charter); provided, however, that none of the
following shall constitute an Affiliated Transaction:

 

transactions
expressly contemplated in the Transaction Documents;

 

customary
compensation arrangements (whether in the form of cash or equity awards),
expense reimbursement, director insurance coverage and/or indemnification
arrangements (and related advancement of expenses) in each case for Board
designees, or any use by such persons, for Company business purposes, of
aircraft, vehicles, property, equipment or other assets owned or customarily
provided to members of the Board by the Company or any of its Subsidiaries; and

 

any
transaction or series of transactions if the same is in the Ordinary Course of
Business and does not involve payments by the Company in excess of [$•] in the aggregate for such transaction or series
of transactions.

 

Following the Closing (as
such term is defined in the Investment Agreement), any decisions by the Company
regarding material amendments or modifications of the Plan (as such term is defined
in the Investment Agreement) or waivers of the Company’s material rights under
the Plan, shall require the approval of the majority of Disinterested Directors
to the extent such amendment, modification or waiver relates to any Investor
Party’s rights or obligations.

 

No Other Voting Restrictions.  For the avoidance of doubt, except as
restricted herein or by applicable Law, Investor and the other Investor Parties may vote the Common Stock that they Beneficially Own in their sole and absolute discretion.

 

Amendment of the Charter.  The Company hereby agrees that following the
Closing Date, without the consent of Investor, the Company shall not amend (or
propose to amend) the provisions of the Charter in a manner that would:  (a) amend the restriction on Beneficial
Ownership (as such term is defined in the Charter) of the outstanding capital
stock of the Company to a level other than 9.9%; (b) amend the restriction on
Constructive Ownership (as such term is defined in the Charter) of the
outstanding capital stock of the Company to a level other than 9.9%; or (c)
amend any waiver from the restrictions set forth in the foregoing clauses (a)
and (b) granted to Investor or any Investor Party in any manner adverse to
Investor or any Investor Party.

 

Waiver of Ownership Limited
in the Charter.  The Company and the Board shall take all
appropriate and necessary action to ensure that the ownership limitations set
forth in the Charter shall be waived with respect to Investor, the Investor
Parties, any Investor Investment Advisor and any Person (other than a
transferee under Section 2.2(b)(vi) unless such transferee executes a
Transferee Agreement) to whom Investor, any Investor Party or any Investor
Investment Advisor has transferred any of the Common Stock or Warrants in
accordance with

 

3

 

the terms of this Agreement and the
Investment Agreement, provided, insofar as the waiver relates to
Investor, an Investor Party, an Investor Investment Advisor or a transferee, as the case may be, who owns (or would, following such transfer, own)
interests in excess of the Ownership Limit (as defined in the Charter), that
the Company has been provided with a certificate containing the representations
and covenants set forth on Exhibit D to the Investment Agreement (or, to
the extent necessitated by the organizational structure of the party providing
such certificate, a certificate substantially similar to such Exhibit D)
from such Investor, Investor Party, Investor Investment Advisor or transferee,
or in the case of a transferee, a certificate containing the representations
and covenants set forth on Exhibit D to the Investment Agreement (or, to
the extent necessitated by the organizational structure of the party providing
such certificate, a certificate substantially similar to Exhibit D) as
modified to allow such transferee to own stock or other equity interests in a
tenant of the Company or its Subsidiaries to the extent such ownership would
not result in (i) the Company or any of its REIT Subsidiaries other than
GGP-Natick Trust or GGP Ivanhoe, Inc. recognizing more than $1 million of
“related party rent” in any year or (ii) GGP Natick Trust or GGP Ivanhoe, Inc.
recognizing more than $100,000 of “related party rent” in any year.  The parties hereto agree that the Company
may, in the discretion of the Board, grant to third parties any other waivers
from restrictions set forth in the Charter.

 

INVESTOR
RELATED COVENANTS

 

Ownership Limitations.

 

Except as provided in Section
2.1(b), Investor agrees that it (together with the other Investor Parties)
shall not acquire Economic Ownership of shares of Common Stock that would
result in the Investor Parties in the aggregate Economically Owning a
percentage of the then-outstanding Common Stock on a Fully Diluted Basis that
is greater than the Ownership Cap.  For
the avoidance of doubt, no Person shall be in violation of this Section 2.1
as a result of (i) any acquisition by the Company of any Common Stock; (ii) any
change in the percentage of the Investor Parties’ Economic Ownership of Common
Stock that results from a change in the aggregate number of shares of Common
Stock outstanding; or (iii) any change in the number of shares of Common Stock
Economically Owned by the Investor Parties as a result of any anti-dilution
adjustments to any Equity Securities (as defined in the Investment Agreement)
Economically Owned by any Investor Party.

 

Notwithstanding Section
2.1(a), any of the Investor Parties may acquire Economic Ownership of
shares of Common Stock that would result in the Investor Parties (taken as a
whole) having Economic Ownership of a percentage of the then-outstanding Common
Stock on a Fully Diluted Basis that is greater than the Ownership Cap under any
of the following circumstances:

 

acquisitions
of shares pursuant to any pro rata stock dividend or stock distribution
effected by the Company and approved by a majority of the Independent
Directors;

 

4

 

if
such acquisition is pursuant to a tender offer or exchange offer, in each case
that includes an offer for all outstanding shares of Common Stock owned by the
Target Stockholders, or a merger, consolidation, binding share exchange or
similar transaction pursuant to an agreement with the Company, so long as in
each case (A) such offer, merger, consolidation, binding share exchange or
similar transaction is approved by a majority of the Disinterested Directors or
by a special committee comprised of Disinterested Directors (such tender offer
or exchange offer, an “Approved Offer”, and such merger, consolidation, binding
share exchange or similar transaction, an “Approved Merger”), and (B) in any
such Approved Offer, a majority of the Target Shares are tendered into such
Approved Offer and not withdrawn prior to the final expiration of such Approved
Offer, or in such Approved Merger, a majority of the Target Shares that are
voted (in person or by proxy) on the related transaction proposal are voted in
favor of such proposal.  As used in this Section
2.1(b)(ii):  “Target Shares”
means the then-outstanding shares of Common Stock not owned by the Investor
Parties; and “Target Stockholders” means the stockholders of the Company
other than the Investor Parties.

 

The limitation set forth in Section
2.1(a) may only be waived by the Company if a majority of the Disinterested
Directors consent thereto.

 

Transfer
Restrictions.

 

Subject to Section 2.2(b),
unless approved by a majority of the Independent Directors, Investor shall not,
and shall not permit any of the Investor Parties to, sell or otherwise transfer
or agree to transfer (each of the foregoing, a “Transfer”), directly or
indirectly, any shares of Common Stock that are held directly or indirectly by
Investor or any of the other Investor Parties if, immediately after giving
effect to such Transfer, the Person that acquires such Common Stock (other than
any underwriter acting in such capacity in an underwritten public offering of
such shares) would, together with its Affiliates, to the actual knowledge (“Knowledge”)
of the transferor Beneficially Own more than ten percent (10%) of the
then-outstanding Common Stock.  A
transferor shall be deemed to have Knowledge of any transferee’s Beneficial
Ownership of Common Stock if the transferor has actual knowledge of the
identity of the transferee and such Beneficial Ownership has been, at the time
of the agreement to transfer, publicly disclosed in accordance with Section 13
of the Exchange Act.

 

The limitations in Section
2.2(a) shall not apply, and any Investor Party may Transfer freely:

 

to
any Person (including any Affiliate of Investor) if such Person (A) has
executed and delivered to the Company a Transferee Agreement (as defined
below), and (B) has provided the Company with a certificate containing the
representations set forth on Exhibit D of the Investment Agreement (or,
to the extent necessitated by the organizational structure of the party
providing such certificate, a certificate substantially similar to such Exhibit
D) as modified to allow such Transferee to own stock or other equity
interests in a tenant of the Company or its Subsidiaries to the extent such
ownership would not result in (i) the Company or any of its REIT Subsidiaries
other than GGP-Natick Trust or GGP Ivanhoe, Inc. recognizing more than $1
million of “related

 

5

 

party rent” each year or
(ii) GGP-Natick Trust or GGP Ivanhoe, Inc. recognizing more than $100,000 of
“related party rent” each year;

 

to
one or more underwriters or initial purchasers acting in their capacity as such
in a manner not intended to circumvent the restrictions contained in 2.2(a);

 

in
a sale in the public market, in accordance with Rule 144, including the
volume and manner of sale limitations set forth therein;

 

in
any Merger Transaction (other than a transaction contemplated by Section
2.2(b)(v) below) or transaction contemplated by clause (iii) of the
definition of Change of Control (A) in which (in either case) no Investor Party
is the acquiror or part of the acquiring group or is proposed to be combined
with the Company and (B) that has been approved by the Board and a majority of
the stockholders (it being understood that this clause (iv) does not affect the
agreement of the parties under Sections 1.1(e) and (f));

 

in
connection with a tender or exchange offer that (A) is not solicited by any
Investor Party (unless such transaction was approved in accordance with Section
2.1(b)(ii)) and in which all holders of Common Stock are offered the
opportunity to sell shares of Common Stock and (B) complies with applicable
securities laws, including Rule 14d-10 promulgated under the Exchange Act; and

 

in
connection with any bona fide mortgage, encumbrance, pledge or hypothecation of
capital stock to a financial institution in connection with any bona fide loan.

 

No Transfer under Section
2.2(b)(i) shall be valid unless and until a Transferee Agreement has been
executed by the Transferee and delivered to the Company.  For the purpose of this Agreement a
“Transferee Agreement” executed by a Transferee means an agreement
substantially in the form of this Agreement or in such other form as is
reasonably satisfactory to the Company except that:

 

notwithstanding
Section 1.1(c), in connection with any stockholder meeting or consent
solicitation relating to the election of members of the Board, such Transferee
may vote the shares of Common Stock that it Beneficially Owns in favor of one
director candidate in its sole and absolute discretion and regarding any other
director candidates in such election must vote in proportion to Votes Cast;(5)

 

“Investor”
shall be defined to mean such Transferee; and

 

any
obligation on the part of Investor hereunder to cause the Investor Parties to
take any action or refrain from taking any action shall only apply to the
Investor Parties controlled by the Transferee and the Transferee Agreement
shall provide that the Transferee shall use all reasonable efforts to cause
Affiliates that the Transferee

 

(5)  In the Fairholme Non-Control Agreement, this
clause will be expanded to say that the restriction in 1.1(c) will apply only
to votes for or against directors and not votes on other matters.

 

6

 

does not control to take or
refrain from taking the action that it is otherwise required to cause under
this Agreement.

 

TERMINATION

 

Termination of Agreement.  This Agreement may be terminated as follows
(the date of such termination, the “Termination Date”)

 

if Investor and the Company
mutually agree to terminate this Agreement, but only if the Disinterested
Directors have approved such termination;

 

upon five (5) days notice by the Investor, at any time after (i) the
Other Stockholders Beneficially Own more than seventy
percent (70%) of the then-outstanding
Common Stock and (ii) the Investor Parties Beneficially Own less than fifteen percent (15%) of the
then-outstanding Common Stock on a Fully Diluted Basis;

 

without any further action
by the parties hereto, if Investor and the Investor Parties Beneficially Own
less than ten percent (10%) of the then-outstanding Common Stock on a Fully Diluted Basis;

 

without any other action by
the parties hereto, upon the consummation of a Change of Control not involving
Investor or any Investor Party as a purchaser of any direct or indirect
interest in the Company or any of its assets or properties; provided
that the Investor Parties shall not have violated this Agreement in connection
with any transaction under this clause; and

 

without any other action by
the parties hereto, upon the consummation of: (i) a sale of all or
substantially all of the assets the Company and its Subsidiaries (determined on
a consolidated basis), in one transaction or series of related transactions; or
(ii) the acquisition (by purchase, merger or otherwise) by any Person or Group
of Beneficial Ownership of voting securities of the Company entitling such
Person or Group to exercise ninety percent (90%) or more of the total voting power of all outstanding securities
entitled to vote generally in elections of directors of the Company; provided
that the Investor Parties shall not have violated this Agreement in connection
with any transaction under the preceding clauses (i) and (ii).

 

Procedure upon Termination.  In the event of termination pursuant to Section
3.1, this Agreement shall terminate on the Termination Date without further
action by Investor and the Company.

 

Effect of Termination.  In the event that this Agreement is validly
terminated as provided in this Article III, then each of the parties
hereto shall be relieved of their duties and obligations arising under this
Agreement after the date of such termination and such termination shall be
without liability to the other party; provided, however, that Article
V shall survive any such termination and shall be enforceable hereunder; provided
further, however, that nothing in this Section 3.3 shall
relieve any party hereto of any liability for a breach of a representation,
warranty or covenant in this Agreement prior to the Termination Date.

 

7

 

DEFINITIONS

 

Defined Terms.  For purposes of this Agreement, the following
terms, when used in this Agreement with initial capital letters, shall have the
respective meanings set forth in this Agreement:

 

“Affiliate”
of any particular Person means any other Person controlling, controlled by or
under common control with such particular Person.  For the purposes of this Agreement, “control”
means the possession, directly or indirectly, of the power to direct the
management and policies of a Person whether through the ownership of voting
securities, contract or otherwise.

 

“Beneficial
Ownership” by a Person of any securities means “beneficial ownership” as
used for purposes of Rule 13d-3 adopted by the SEC under the Exchange Act;
provided, however, to the extent the term “Beneficial Ownership” is used in
connection with any obligation on the part of an Investor Party to vote, or
direct the vote, of shares of Common Stock, “Beneficial Ownership” by a Person
of any securities shall be deemed to refer solely to those securities with
respect to which such Person possesses the power to vote or direct the
vote.  The term “Beneficially Own”
shall have a correlative meaning.

 

“Board”
means the Board of Directors of the Company.

 

“Brookfield
Non-Control Agreement” means the Non-Control Agreement, dated as of the
date hereof, among the Company and [insert names of Brookfield purchasers].

 

“Business
Day” means any day other than (i) a Saturday, (ii) a Sunday, or (iii) any
day on which commercial banks in New York, New York are required or authorized
to close by law or executive order.

 

“Change
of Control” means any transaction involving (i) a Merger Transaction, (ii)
a sale of all or substantially all of the assets the Company and its Subsidiaries
(determined on a consolidated basis), in one transaction or series of related
transactions, or (iii) the consolidation, merger, amalgamation, reorganization
(other than pursuant to the Plan contemplated by the Investment Agreement) of
the Company or a similar transaction in which the Company is combined with
another Person, unless shares of Common Stock held by holders who are not
affiliated with the Company or any entity acquiring the Company remain
unchanged or are exchanged for, converted into or constitute solely (except to
the extent of applicable appraisal rights or cash received in lieu of
fractional shares) the right to receive as consideration Public Stock and the
Persons or Group who beneficially own the outstanding Common Stock of the
Company immediately before consummation of the transaction beneficially own
more than 50% (by voting power) of the outstanding voting stock of the combined
or surviving entity or new parent immediately thereafter.

 

8

 

“Charter”
means [the Certificate of Incorporation of the Company dated as of xxxxxx xx,
2010][Insert Charter adopted pursuant to Section [      ]
of the Investment Agreement.]

 

“Common
Stock”  means the common stock, par
value $0.01 per share, of the Company, as authorized by the Charter as of the
Effective Date, and any successor security as provided by Section 5.11.

 

“Disinterested
Director” shall mean (i) with respect to an Affiliated Transaction or
potential Affiliated Transaction, a director who (A) is not Affiliated with,
and was not nominated by, any Investor Party that is a participant in such
transaction or potential transaction and (B) who has no personal financial
interest in the transaction (other than the same interest, if a stockholder of
the Company, as the other stockholders of the Company) and (ii) with respect to
any matter other than an Affiliated Transaction, a director who is not
Affiliated with, and was not nominated by, any Investor Party.

 

“Economic
Ownership” by a Person of any securities includes ownership by any Person
who, directly or indirectly, through any contract, arrangement, understanding,
relationship or otherwise, has (i) “beneficial ownership” as defined in Rule
13d-3 adopted by the SEC under the Exchange Act or (ii) economic interest in
such security as a result of any cash-settled total return swap transaction or
any other swap, other derivative or “synthetic” ownership arrangement (in which
case the number of securities with respect to which such Person has Economic Ownership
shall be determined by the Company in it reasonable judgment based on such
Person’s equivalent net long position); provided, however, that
for purposes of determining Economic Ownership, a Person shall be deemed to be
the Economic Owner of any securities which may be acquired by such Person
pursuant to any agreement, arrangement or understanding or upon the exercise of
conversion rights, exchange rights, warrants or options, or otherwise
(irrespective of whether the right to acquire such securities is exercisable
immediately or only after the passage of time, including the passage of time in
excess of sixty (60) days, the satisfaction of any conditions, the occurrence
of any event or any combination of the foregoing).  For purposes of this Agreement, a Person
shall be deemed to be the Economic Owner of any securities Economically Owned
by any Group of which such Person is or becomes a member.  The term “Economically Own” shall have
a correlative meaning.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any
successor federal statute, and the rules and regulations of the SEC promulgated
thereunder, all as the same may be amended and shall be in effect from time to
time.

 

“Fair
Market Value” means, with respect to each share of Public Stock,  the average of the daily volume weighted
average prices per share of such Public Stock for the ten consecutive trading
days immediately preceding the day as of which Fair Market Value is being
determined, as reported on the New York Stock Exchange, or if such shares are
not listed on the New York Stock Exchange, as reported by the principal U.S.
national or regional securities exchange or quotation system on which such
shares are then listed or quoted; provided, however, that in the
absence of such listing or quotations, the Fair Market Value of such shares
shall be the fair market value per share as determined by an

 

9

 

Independent Financial Expert
appointed for such purpose, using one or more valuation methods that the
Independent Financial Expert in its best professional judgment determines to be
most appropriate, assuming such shares are fully distributed and are to be sold
in an arm’s-length transaction and there was no compulsion on the part of any
party to such sale to buy or sell and taking into account all relevant factors.

 

[“Fairholme Non-Control Agreement”
means the Non-Control Agreement, dated as of the date hereof, among the Company
and [insert name of Fairholme purchaser].]

 

“Fully
Diluted Basis” means all outstanding shares of the Common Stock assuming
the exercise of all outstanding Share Equivalents, without regard to any
restrictions or conditions with respect to the exercisability of such Share
Equivalents.

 

“Governmental
Entity” means any (i) nation, region, state, province, county, city, town,
village, district or other jurisdiction, (ii) federal, state, local, municipal,
foreign or other government, (iii) governmental or quasi-governmental authority
of any nature (including any governmental agency, branch, department, court or
tribunal, or other entity), (iv) multinational organization or body or (v) body
entitled to exercise any administrative, executive, judicial, legislative,
police, regulatory or taxing authority or power of any nature or any other
self-regulatory organizations.

 

“Group”
has the meaning assigned to it in Section 13(d)(3) of the Exchange Act and
Rule 13d-5 thereunder.

 

“Independent
Financial Expert” means a nationally recognized financial advisory firm
approved by a majority of the Disinterested Directors.

 

“Investor
Investment Advisor” means any independently operated business unit of any
Affiliate of Investor that holds shares of Common Stock (i) in trust for the
benefit of persons other than any Investor Party, (ii) in mutual funds, open-
or closed-end investment funds or other pooled investment vehicles sponsored,
managed or advised or subadvised by such Investor Investment Advisor, (iii) as
agent and not principal, or (iv) in any other case where such Investor
Investment Advisor is disaggregated from Investor for the purposes of Section
13(d) of the Exchange Act; provided, however, that  (A)
in each case, such shares of Common Stock were acquired in the ordinary
course of business of the Investor Investment Advisor’s respective investment
management or securities business and not with the intent or purpose on the
part of Investor or the Investor Parties of influencing control of the Company
or avoiding the provisions of this Agreement and (B) where appropriate,
“Chinese walls” or other informational barriers and other procedures have been
established.  For avoidance of doubt, for
purposes of this Agreement shares of Common Stock held by an Investor
Investment Advisor shall not be deemed to be Beneficially Owned by Investor or
the Investor Parties.

 

“Investor
Parties” means Investor and its Affiliates; provided, however, that none of
the Company, any Subsidiary of the Company or any Investor Investment Advisor
shall be deemed to be an Investor Party.

 

10

 

“Large Stockholder” means a Person that is the
Beneficial Owner of more than ten percent (10%) of the outstanding shares of
Common Stock on a Fully Diluted Basis.

 

“Law”
means any statutes, laws (including common law), rules, ordinances,
regulations, codes, orders, judgments, decisions, injunctions, writs, decrees,
applicable to the Company, Common Stock or Investor Parties.

 

“Merger
Transaction” means any transaction involving the acquisition (by purchase,
merger or otherwise) by any Person or Group of Beneficial Ownership of voting
securities of the Company entitling such Person or Group to exercise a majority
of the total voting power of all outstanding securities entitled to vote
generally in elections of directors of the Company.

 

 “Ordinary Course of Business” means the
ordinary and usual course of day-to-day operations of the business of the
Company consistent with past practice.

 

“Other
Stockholder” means, as of the date of the action in question, any Person
not Affiliated with Brookfield Asset Management, Inc., Fairholme Capital
Management LLC, Pershing Capital Management L.P., any transferee who is a party
to a transferee agreement under the Brookfield Non-Control Agreement, the
[Fairholme][Pershing Square] Non-Control Agreement or this Agreement or any of
their respective Affiliates.

 

 “Ownership Cap” means the lower of (i)
[twenty-five percent (25%)][thirty percent
(30%)](6) of the then-outstanding
Common Stock on a Fully Diluted Basis and (ii) the sum of five percent (5%) and the
percentage of the outstanding Common Stock on a Fully Diluted Basis that the
Investor Parties Economically Own as of the Effective Date.

 

[“Pershing Square Non-Control Agreement” means the Non-Control
Agreement, dated as of the date hereof, among the Company and [insert names of Pershing Square purchasers].]

 

“Person”
means an individual, a group (including a “group” under Section 13(d) of
the Exchange Act), a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a Governmental Entity or any department, agency
or political subdivision thereof.

 

“Public
Stock” means common stock listed on a recognized U.S. national securities
exchange with an aggregate market capitalization (held by non-Affiliates of the
issuer) in excess of $1 billion in Fair Market Value.

 

“Rule
144” means Rule 144 promulgated by the SEC under the Securities Act, or any
successor rule or regulation hereafter adopted by the SEC, as the same may be
amended and shall be in effect from time to time.

 

(6)  Note to Draft: 25% for the Pershing Square
Non-Control Agreement and 30% for the Fairholme Non-Control Agreement.

 

11

 

“SEC”
means the Securities and Exchange Commission or any other federal agency then
administering the Exchange Act, the Securities Act and other federal securities
laws.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor federal
statute, and the rules and regulations of the SEC promulgated thereunder, all
as the same may be amended and shall be in effect from time to time.

 

“Share
Equivalent” means any stock, warrants, rights, calls, options or other
securities exchangeable or exercisable for, or convertible into, shares of
Common Stock.

 

“Subsidiary”
means, with respect to a Person, any corporation, limited liability company,
partnership, trust or other entity of which such Person owns (either alone,
directly, or indirectly through, or together with, one or more of its
Subsidiaries) 50% or more of the equity interests the holder of which is
generally entitled to vote for the election of the board of directors or
governing body of such corporation, limited liability company, partnership,
trust or other entity.

 

“Transaction
Documents” means, individually or collectively, the Investment Agreement or
the Warrant.

 

“Transferee”
means any proposed transferee of securities pursuant to Sections 2.2(b)(i)
or 2.2(b)(vi).

 

“Votes Cast” means the aggregate number of
shares of Common Stock that are properly voted for or against any action to be
taken by stockholders, excluding any shares if the holder of such shares
is contractually required to vote in proportion of the total number of votes
cast pursuant to this Agreement, the Brookfield
Non-Control Agreement, the [Fairholme][Pershing Square] Non-Control Agreement
or any transferee agreement executed hereunder or thereunder.

 

“Warrants”
means the New Warrants (as defined in the Investment Agreement).

 

MISCELLANEOUS

 

Notices. All notices
and other communications in connection with this Agreement shall be in writing
and shall be considered given if given in the manner, and be deemed given at
times, as follows:  (a) on the date
delivered, if personally delivered; (b) on the day of transmission if sent via
facsimile transmission to the facsimile number given below, and telephonic
confirmation of receipt is obtained promptly after completion of transmission;
or (c) on the next Business Day after being sent by recognized overnight mail service
specifying next business day delivery, in each case with delivery charges
pre-paid and addressed to the following addresses:

 

12

 

If
to Investor, to:

 

[insert name, address and contact details of Investor]

 

with a copy (which shall not constitute notice) to:

 

[insert name, address
and contact details of cc]

 

If
to Company, to:

 

General Growth Properties, Inc.

110 N. Wacker Drive

Chicago, IL 60606

Attention: Ronald L. Gern, Esq.

Facsimile: 312-960-5485

 

with a copy (which shall not constitute notice) to:

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention:        Marcia L. Goldstein, Esq.

                           Frederick S. Green, Esq.

                           Gary T. Holtzer

                           Malcolm E. Landau

Facsimile: (212) 310-8007

 

Assignment;
No Third Party Beneficiaries.  Neither this Agreement nor any of the rights,
interests or obligations under this Agreement may be assigned by any party
without the prior written consent of the other party.  This Agreement (including the documents and
instruments referred to in this Agreement) is not intended to and does not
confer upon any person other than the parties hereto any rights or remedies
under this Agreement.

 

Prior
Negotiations; Entire Agreement.  This Agreement (including the exhibits hereto
and the documents and instruments referred to in this Agreement) constitutes
the entire agreement of the parties hereto and supersedes all prior agreements,
arrangements or understandings, whether written or oral, between the parties
hereto with respect to the subject matter of this Agreement.

 

Governing
Law; Venue.  THIS
AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT)
THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE
NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT WILL BE GOVERNED AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE.  BOTH PARTIES HEREBY IRREVOCABLY SUBMIT TO THE

 

13

 

JURISDICTION OF, AND VENUE
IN, DELAWARE AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

 

Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each of the
parties hereto, and delivered to the other party (including via facsimile or
other electronic transmission), it being understood that each party need not
sign the same counterpart.

 

Expenses.  Except as otherwise provided in this
Agreement, Investor and the Company shall each bear its own expenses incurred
in connection with the negotiation and execution of this Agreement and each
other agreement, document and instrument contemplated by this Agreement and the
consummation of the transactions contemplated hereby and thereby.

 

Waivers
and Amendments.  Subject to Section
5.2, this Agreement may be amended, modified, superseded, cancelled,
renewed or extended, and the terms and conditions of this Agreement may be
waived, only by a written instrument signed by Investor and the Company (with
the approval of a majority of the Disinterested Directors) or, in the case of a
waiver, by the party waiving compliance, and subject, to the extent required,
to the approval of the Bankruptcy Court. 
No delay on the part of any party in exercising any right, power or
privilege pursuant to this Agreement shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any right, power or privilege
pursuant to this Agreement, nor shall any single or partial exercise of any
right, power or privilege pursuant to this Agreement, preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
pursuant to this Agreement.  The rights and
remedies provided pursuant to this Agreement are cumulative and are not
exclusive of any rights or remedies which any party otherwise may have at law
or in equity.

 

Construction.

 

The
headings in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

 

Unless
the context otherwise requires, as used in this Agreement:  (i) “or” shall mean “and/or”; (ii)
“including” and its variants mean “including, without limitation” and its
variants; (iii) words defined in the singular have the parallel meaning in the
plural and vice versa; (iv) references to “written” or “in writing” include in
visual electronic form; (v) words of one gender shall be construed to apply to
each gender; and (vi) the terms “Article” and “Section” refer to the specified
Article or Section of this Agreement.

 

Severability.  If any term or other provision of this
Agreement is invalid, illegal, or incapable of being enforced by any law or
public policy, all other terms or provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner materially
adverse to any party.  Upon such
determination that any term or other provision is invalid, illegal, or
incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties
hereto as closely as possible in an

 

14

 

acceptable manner in order
that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.

 

Equitable
Relief.  It is hereby acknowledged that
irreparable harm would occur in the event that any of the provisions of this
Agreement were not performed fully by the parties hereto in accordance with the
terms specified herein, and that monetary damages are an inadequate remedy for
breach of this Agreement because of the difficulty of ascertaining and
quantifying the amount of damage that will be suffered by the parties hereto
relying hereon in the event that the undertakings and provisions contained in
this Agreement were breached or violated. 
Accordingly, each party hereto hereby agrees that each other party hereto
shall be entitled to an injunction or injunctions to restrain, enjoin and
prevent breaches of the undertakings and provisions hereof and to enforce
specifically the undertakings and provisions hereof in any court of the United
States or any state having jurisdiction over the matter; it being understood
that such remedies shall be in addition to, and not in lieu of, any other
rights and remedies available at law or in equity.

 

Successor
Securities.  The
provisions of this Agreement pertaining to shares of Common Stock shall apply
to all shares of Common Stock Beneficially Owned by any Investor Party and any
voting equity securities of the Company, regardless of class, series,
designation or par value, that are issued as a dividend on or in any other distribution
in respect of, or as a result of a reclassification (including a change in par
value) in respect of, shares of Common Stock or other shares of the Company
which, as provided by this section, are considered as shares of Common Stock
for purposes of this Agreement and shall also apply to any voting equity
security issued by any company that succeeds, by merger, consolidation, a share
exchange, a reorganization of the Company or any similar transaction, to all or
substantially all the business of the Company, or to the ownership thereof, if
such security was issued in exchange for or otherwise as consideration for or
in respect of shares of Common Stock (or other shares considered as shares of
Common Stock, as provided by this definition) in connection with such
succession transaction.

 

Voting
Procedures.  If, in
connection with any stockholder meeting or consent solicitation, Investor or
the Investor Parties are required under the terms of this Agreement to vote in
proportion to the Unaffiliated Stockholders, then the parties shall cooperate
to determine appropriate procedures and mechanics to facilitate such
proportionate voting.

 

** REMAINDER OF PAGE INTENTIONALLY LEFT BLANK**

 

15

 

IN WITNESS WHEREOF, the
undersigned have caused this Agreement to be executed and delivered by each of
them or their respective officers thereunto duly authorized, all as of the date
first written above.

 

 

	
   

  	
  GENERAL GROWTH PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [INSERT NAME OF INVESTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[Signature
Page to Non-Control Agreement]

 

 

FORM OF

NON-CONTROL AGREEMENT (GGO Version)

 

This
Non-Control Agreement (this “Agreement”) is dated as of [•] 2010 (the “Effective Date”),
by and between General Growth Opportunities, Inc., a Delaware corporation (the “Company”),
[insert names of Pershing Square purchasers] (collectively, “Investor”).

 

WHEREAS,
Investor has entered into that certain Stock Purchase Agreement, dated as of [•], 2010 (the “Investment Agreement”), that
contemplates, among other things, the purchase by Investor of shares of Common
Stock subject to the terms and conditions contained therein;

 

WHEREAS,
the transactions contemplated by the Investment Agreement are intended to
assist the General Growth Properties, Inc. (“GGP”) in its plans to
recapitalize and emerge from bankruptcy and is not intended to constitute a
change of control of GGP or the Company or otherwise give Investor the power to
control the business and affairs of GGP or the Company;

 

WHEREAS,
as a material condition to GGP’s and Investor’s obligations to consummate the
transactions contemplated by the Investment Agreement, the Company and Investor
have agreed to execute this Agreement; and

 

WHEREAS,
certain terms used in this Agreement are defined in Section 4.1.

 

NOW
THEREFORE, in consideration of the premises and the mutual covenants and
agreements hereinafter contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

COMPANY
RELATED PRINCIPLES

 

Board of Directors.  So long as Investor and the Investor Parties,
collectively, shall Beneficially Own more than ten percent (10%) of the
outstanding shares of Common Stock, none
of Investor or the Investor Parties shall take any action that is inconsistent
with its support for the following corporate governance principles:

 

A majority of the members of
the Board shall be Independent Directors, where “Independent Director”
means a director who satisfies all standards for independence promulgated by
the New York Stock Exchange (or the applicable exchange where shares of Common
Stock are then listed);

 

the Board shall have a
nominating committee, a majority of which shall be Disinterested Directors;

 

except as regards voting to
elect the Purchaser GGO Board Designees (as such term is defined in the
Investment Agreement), in connection with any stockholder meeting or consent
solicitation relating to the election of members of the Board, Investor shall,
and shall cause the other Investor Parties to, vote in such election of members
of the Board all Common Stock that is Beneficially Owned by the Investor
Parties in proportion to the Votes Cast;

 

 

the
Board shall consist of nine (9) members and not be increased or reduced, unless
approved by seventy-five percent (75%)  of
the Board;

 

(e)           any
Change in Control (other than a transaction contemplated by Section 2.1(b)(ii))
in which a Large Stockholder or its controlled Affiliate is the acquiror or
part of the acquiror group or is proposed to be directly or indirectly combined
with the Company must be approved by a majority of the Disinterested Directors
as if it were an Affiliated Transaction involving such Large Stockholder and by
a majority of the voting power of the stockholders (other than such Large
Stockholder or its controlled Affiliates); and

 

(f)            any
Change in Control (other than a transaction contemplated by Section 2.2(b)(v))
in which any Large Stockholder or its controlled Affiliate receives per share
consideration in its capacity as a stockholder of the Company in excess of that
to be received by other stockholders, must be approved by a majority of the
Disinterested Directors as if it were an Affiliated Transaction involving such
Large Stockholder and by a majority of the voting power of the stockholders
(other than such Large Stockholder or its controlled Affiliates).

 

The Company shall not waive any provisions similar to
Sections 1.1(c), (e) or (f) above for any Large Stockholder under any other
agreement unless the Company grants a similar waiver under this Agreement.

 

Voting.

 

Subject to Sections 1.1(c),
(e) and (f), in connection with any matter being voted on at a stockholder
meeting or in a consent solicitation that the Board has recommended that the
stockholders of the Company approve, Investor and the other Investor Parties
may vote the shares of Common Stock that they Beneficially Own against or in
favor of such matter, in their sole and absolute discretion.

 

Subject to Sections 1.1(c),
(e) and (f), in connection with any matter being voted on at a stockholder
meeting or in a consent solicitation  that the Board
has recommended that the stockholders of the Company not approve, Investor
and the other Investor Parties may vote the shares of Common Stock that they
Beneficially Own:

 

against
such matter; or

 

in
favor of such matter; provided, however, that if Investor and the
other Investor Parties (taken as a whole) Beneficially Own shares of Common
Stock that represent more than the Voting Cap of the then-outstanding Common
Stock, then, with respect to the shares that account for the excess over the
Voting Cap, Investor shall, and shall cause the other Investor Parties to, vote
in proportion to the Votes Cast.

 

Related Party Transactions.

 

Without the approval of a
majority of the Disinterested Directors, Investor shall not, and shall not
permit any of the Investor Parties to, engage in any Affiliated
Transaction.  “Affiliated Transaction”
means (i) any transaction or series of related transactions, directly or
indirectly, between the Company or any Subsidiary of the Company, on the one
hand, and any of

 

2

 

the Investor Parties, on the other hand, or (ii)
without limiting the Company’s obligation to comply with Sections 1.5
and 1.6 hereof, with respect to the purchase or sale of Common Stock by
any of the Investor Parties, any waiver of any limitation or restriction with
respect to such purchase or sale in the Charter or the Transaction Documents,
including any exemption from the Ownership Limit (as defined in the Charter); provided,
however, that none of the following shall constitute an Affiliated
Transaction:

 

transactions
expressly contemplated in the Transaction Documents;

 

customary
compensation arrangements (whether in the form of cash or equity awards),
expense reimbursement, director insurance coverage and/or indemnification
arrangements (and related advancement of expenses) in each case for Board
designees, or any use by such persons, for Company business purposes, of
aircraft, vehicles, property, equipment or other assets owned or customarily
provided to members of the Board by the Company or any of its Subsidiaries; and

 

any
transaction or series of transactions if the same is in the Ordinary Course of
Business and does not involve payments by the Company in excess of [$•] in the aggregate for such transaction or series
of transactions.

 

Following the Closing (as
such term is defined in the Investment Agreement), any decisions by the Company
regarding material amendments or modifications of the Plan (as such term is
defined in the Investment Agreement) or waivers of the Company’s material
rights under the Plan, shall require the approval of the majority of
Disinterested Directors to the extent such amendment, modification or waiver
relates to any Investor Party’s rights or obligations.

 

No Other Voting Restrictions.  For the avoidance of doubt, except as
restricted herein or by applicable Law, Investor and the other Investor Parties may vote the Common Stock that they Beneficially Own in their sole and absolute discretion.

 

[Amendment of the Charter.  The Company hereby agrees that following the
Closing Date, without the consent of Investor, the Company shall not amend (or
propose to amend) the provisions of the Charter in a manner that would:  (a) amend the restriction on Beneficial
Ownership (as such term is defined in the Charter) of the outstanding capital
stock of the Company to a level other than 9.9%; (b) amend the restriction on
Constructive Ownership (as such term is defined in the Charter) of the
outstanding capital stock of the Company to a level other than 9.9%; or (c)
amend any waiver from the restrictions set forth in the foregoing clauses (a)
and (b) granted to Investor or any Investor Party in any manner adverse to
Investor or any Investor Party.

 

Waiver of Ownership Limited
in the Charter.  The Company and the Board shall take all
appropriate and necessary action to ensure that the ownership limitations set
forth in the Charter shall be waived with respect to Investor, the Investor
Parties, any Investor Investment Advisor and any Person (other than a
transferee under Section 2.2(b)(vi) unless such transferee executes a Transferee
Agreement) to whom Investor, any Investor Party or any Investor Investment
Advisor has transferred any of the Common Stock or Warrants in accordance with
the terms of this Agreement and the Investment Agreement, provided,
insofar as the waiver

 

3

 

relates to Investor, an Investor Party, an
Investor Investment Advisor or a transferee, as the case may
be, who owns (or would, following such transfer, own) interests in excess of
the Ownership Limit (as defined in the Charter), that the Company has been
provided with a certificate containing the representations and covenants
similar in kind to those set forth on Exhibit D to the Investment
Agreement from such Investor, Investor Party, Investor Investment Advisor or
transferee, or in the case of a transferee, a certificate containing the
representations and covenants set forth on Exhibit D to the Investment
Agreement as modified to allow such transferee to own stock or other equity
interests in a tenant of the Company or its Subsidiaries. The parties hereto
agree that the Company may, in the discretion of the Board, grant to third
parties any other waivers from restrictions set forth in the Charter.](7)

 

INVESTOR
RELATED COVENANTS

 

Ownership Limitations.

 

Except as provided in Section
2.1(b), Investor agrees that it (together with the other Investor Parties)
shall not acquire Economic Ownership of shares of Common Stock that would
result in the Investor Parties in the aggregate Economically Owning a percentage
of the then-outstanding Common Stock on a Fully Diluted Basis that is greater
than the Ownership Cap.  For the
avoidance of doubt, no Person shall be in violation of this Section 2.1
as a result of (i) any acquisition by the Company of any Common Stock; (ii) any
change in the percentage of the Investor Parties’ Economic Ownership of Common
Stock that results from a change in the aggregate number of shares of Common
Stock outstanding; or (iii) any change in the number of shares of Common Stock
Economically Owned by the Investor Parties as a result of any anti-dilution
adjustments to any Equity Securities (as defined in the Investment Agreement)
Economically Owned by any Investor Party.

 

Notwithstanding Section
2.1(a), any of the Investor Parties may acquire Economic Ownership of
shares of Common Stock that would result in the Investor Parties (taken as a
whole) having Economic Ownership of a percentage of the then-outstanding Common
Stock on a Fully Diluted Basis that is greater than the Ownership Cap under any
of the following circumstances:

 

acquisitions
of shares pursuant to any pro rata stock dividend or stock distribution
effected by the Company and approved by a majority of the Independent
Directors;

 

if
such acquisition is pursuant to a tender offer or exchange offer, in each case
that includes an offer for all outstanding shares of Common Stock owned by the
Target Stockholders, or a merger, consolidation, binding share exchange or
similar transaction pursuant to an agreement with the Company, so long as in
each case (A) such

 

(7)  Note to Draft: To be eliminated or
appropriately conformed to any comparable ownership restrictions that the
Company may have in its Charter as of the Effective Date.  A REIT representations letter similar in kind
to Exhibit D will be required only to the extent that the Company is a REIT as
of the effective date.

 

4

 

offer, merger,
consolidation, binding share exchange or similar transaction is approved by a
majority of the Disinterested Directors or by a special committee comprised of
Disinterested Directors (such tender offer or exchange offer, an “Approved Offer”,
and such merger, consolidation, binding share exchange or similar transaction,
an “Approved
Merger”), and (B) in any such Approved Offer, a majority of the
Target Shares are tendered into such Approved Offer and not withdrawn prior to
the final expiration of such Approved Offer, or in such Approved Merger, a
majority of the Target Shares that are voted (in person or by proxy) on the
related transaction proposal are voted in favor of such proposal.  As used in this Section 2.1(b)(ii):  “Target Shares” means the
then-outstanding shares of Common Stock not owned by the Investor Parties; and
“Target Stockholders” means the stockholders of the Company other than
the Investor Parties.

 

The limitation set forth in Section
2.1(a) may only be waived by the Company if a majority of the Disinterested
Directors consent thereto.

 

Transfer Restrictions.

 

Subject to Section 2.2(b),
unless approved by a majority of the Independent Directors, Investor shall not,
and shall not permit any of the Investor Parties to, sell or otherwise transfer
or agree to transfer (each of the foregoing, a “Transfer”), directly or
indirectly, any shares of Common Stock that are held directly or indirectly by
Investor or any of the other Investor Parties if, immediately after giving
effect to such Transfer, the Person that acquires such Common Stock (other than
any underwriter acting in such capacity in an underwritten public offering of
such shares) would, together with its Affiliates, to the actual knowledge (“Knowledge”)
of the transferor Beneficially Own more than ten percent (10%) of the
then-outstanding Common Stock.  A
transferor shall be deemed to have Knowledge of any transferee’s Beneficial
Ownership of Common Stock if the transferor has actual knowledge of the
identity of the transferee and such Beneficial Ownership has been, at the time
of the agreement to transfer, publicly disclosed in accordance with Section 13
of the Exchange Act.

 

The limitations in Section
2.2(a) shall not apply, and any Investor Party may Transfer freely:

 

to
any Person (including any Affiliate of Investor) if such Person [(A)] has
executed and delivered to the Company a Transferee Agreement (as defined
below), [and (B) has provided the Company with a certificate containing the
representations similar in kind to those set forth on Exhibit D of the
Investment Agreement as modified to allow such Transferee to own stock or other
equity interests in a tenant of the Company or its Subsidiaries];(8)

 

to
one or more underwriters or initial purchasers acting in their capacity as such
in a manner not intended to circumvent the restrictions contained in Section
2.2(a);

 

(8)  Note to Draft: A REIT representations letter
similar in kind to Exhibit D will be required only to the extent that the
Company is a REIT as of the Effective Date.

 

5

 

in
a sale in the public market, in accordance with Rule 144, including the
volume and manner of sale limitations set forth therein;

 

in
any Merger Transaction (other than a transaction contemplated by Section
2.2(b)(v) below) or transaction contemplated by clause (iii) of the
definition of Change of Control (A) in which (in either case) no Investor Party
is the acquiror or part of the acquiring group or is proposed to be combined
with the Company and (B) that has been approved by the Board and a majority of
the stockholders (it being understood that this clause (iv) does not affect the
agreement of the parties under Sections 1.1(e) and (f));

 

in
connection with a tender or exchange offer that (A) is not solicited by any
Investor Party (unless such transaction was approved in accordance with Section
2.1(b)(ii)) and in which all holders of Common Stock are offered the
opportunity to sell shares of Common Stock and (B) complies with applicable
securities laws, including Rule 14d-10 promulgated under the Exchange Act; and

 

in
connection with any bona fide mortgage, encumbrance, pledge or hypothecation of
capital stock to a financial institution in connection with any bona fide loan.

 

No Transfer under Section
2.2(b)(i) shall be valid unless and until a Transferee Agreement has been
executed by the Transferee and delivered to the Company.  For the purpose of this Agreement a
“Transferee Agreement” executed by a Transferee means an agreement
substantially in the form of this Agreement or in such other form as is
reasonably satisfactory to the Company except that:

 

notwithstanding
Section 1.1(c), in connection with any stockholder meeting or consent
solicitation relating to the election of members of the Board, such Transferee
may vote the shares of Common Stock that it Beneficially Owns in favor of one
director candidate in its sole and absolute discretion and regarding any other
director candidates in such election must vote in proportion to Votes Cast;

 

 “Investor” shall be defined to mean such
Transferee;

 

“Ownership
Cap” shall be defined to mean the lower of (x) forty percent (40%) and (y) the
sum of five percent (5%) and the percentage of the outstanding Common Stock on
a Fully Diluted Basis that the
Transferee Economically Owns as of the date of (and after giving effect to)
such Transfer;

 

“Voting
Cap” shall be defined to mean the lower of (x) thirty percent (30%) and (y) the
sum of five percent (5%) and the percentage of the outstanding Common Stock on
a Fully Diluted Basis that the
Transferee Beneficially Owns as of the date of (and after giving effect to)
such Transfer; and

 

any
obligation on the part of Investor hereunder to cause the Investor Parties to
take any action or refrain from taking any action shall only apply to the
Investor Parties controlled by the Transferee and the Transferee Agreement
shall provide that the Transferee shall use all reasonable efforts to cause
Affiliates that the Transferee

 

6

 

does not control to take or
refrain from taking the action that it is otherwise required to cause under
this Agreement.

 

Purchaser GGO Board
Designees.

 

Notwithstanding anything
contained herein to the contrary, the provisions in Article I
(collectively, the “Specified Provisions”) shall be suspended and shall
not apply in the event that the Purchaser GGO Board Designees  that Investor is entitled to designate under the terms of [Section 5.10(b)] of the Investment Agreement are not elected at a
stockholders’ meeting at which the stockholders voted on the election of such
Purchaser GGO Board Designees (any such period, a “Suspension Period”); provided,
however, that this Section 2.3(a) shall apply only if Investor
has complied with its obligations under [Section
5.10(b)] of the Investment Agreement, including Investor’s timely designation
of Purchaser GGO Board Designees.  No
Suspension Period shall be deemed to occur during any reasonable period of time
during which a Purchaser GGO Board Designee is being replaced upon the death,
resignation, retirement, disqualification or removal from office of such
Purchaser GGO Board Designee.  Any
Suspension Period shall end upon the election of the Purchaser GGO Board
Designees that Investor is entitled to designate under the terms of [Section 5.10(b)] of the Investment Agreement.  At all times other than during a Suspension
Period, the Specified Provisions shall apply in full force and effect.

 

Notwithstanding anything
contained herein or in the Investment Agreement, no Person that acquires Common
Stock from the Investor Parties or from any other Person shall have any rights
of Investor under [Section 5.10(b)] of the
Investment Agreement with respect to the designation of members of the Board.

 

TERMINATION

 

Termination of Agreement.  This Agreement may be terminated as follows
(the date of such termination, the “Termination Date”)

 

if Investor and the Company
mutually agree to terminate this Agreement, but only if the Disinterested
Directors have approved such termination;

 

upon five (5) days notice by the Investor, at any time after (i) the
Other Stockholders Beneficially Own more than seventy
percent (70%) of the then-outstanding
Common Stock and (ii) the Investor Parties Beneficially Own less than fifteen percent (15%) of the
then-outstanding Common Stock on a Fully Diluted Basis;

 

without any further action
by the parties hereto, if Investor and the Investor Parties Beneficially Own
less than ten percent (10%) of the then-outstanding Common Stock on a Fully Diluted Basis;

 

7

 

without any other action by
the parties hereto, upon the consummation of a Change of Control not involving
Investor or any Investor Party as a purchaser of any direct or indirect
interest in the Company or any of its assets or properties; provided
that the Investor Parties shall not have violated this Agreement in connection
with any transaction under this clause; and

 

without any other action by
the parties hereto, upon the consummation of: (i) a sale of all or
substantially all of the assets the Company and its Subsidiaries (determined on
a consolidated basis), in one transaction or series of related transactions; or
(ii) the acquisition (by purchase, merger or otherwise) by any Person or Group
of Beneficial Ownership of voting securities of the Company entitling such
Person or Group to exercise ninety percent (90%) or more of the total voting power of all outstanding securities
entitled to vote generally in elections of directors of the Company; provided
that the Investor Parties shall not have violated this Agreement in connection
with any transaction under the preceding clauses (i) and (ii).

 

Procedure upon Termination.  In the event of termination pursuant to Section
3.1, this Agreement shall terminate on the Termination Date without further
action by Investor and the Company.

 

Effect of Termination.  In the event that this Agreement is validly
terminated as provided in this Article III, then each of the parties
hereto shall be relieved of their duties and obligations arising under this
Agreement after the date of such termination and such termination shall be
without liability to the other party; provided, however, that Article
V shall survive any such termination and shall be enforceable hereunder; provided
further, however, that nothing in this Section 3.3 shall
relieve any party hereto of any liability for a breach of a representation,
warranty or covenant in this Agreement prior to the Termination Date.

 

DEFINITIONS

 

Defined Terms.  For purposes of this Agreement, the following
terms, when used in this Agreement with initial capital letters, shall have the
respective meanings set forth in this Agreement:

 

“Affiliate”
of any particular Person means any other Person controlling, controlled by or
under common control with such particular Person.  For the purposes of this Agreement, “control”
means the possession, directly or indirectly, of the power to direct the
management and policies of a Person whether through the ownership of voting
securities, contract or otherwise.

 

“Beneficial
Ownership” by a Person of any securities means “beneficial ownership” as
used for purposes of Rule 13d-3 adopted by the SEC under the Exchange Act;
provided, however, to the extent the term “Beneficial Ownership” is used in
connection with any obligation on the part of an Investor Party to vote, or
direct the vote, of shares of Common Stock, “Beneficial Ownership” by a Person
of any securities shall be deemed to refer solely to those securities with
respect to which such Person possesses the 

 

8

 

power
to vote or direct the vote.  The term “Beneficially
Own” shall have a correlative meaning.

 

“Board”
means the Board of Directors of the Company.

 

 “Business Day” means any day other than
(i) a Saturday, (ii) a Sunday, or (iii) any day on which commercial banks in
New York, New York are required or authorized to close by law or executive
order.

 

“Change
of Control” means any transaction involving (i) a Merger Transaction, (ii)
a sale of all or substantially all of the assets the Company and its
Subsidiaries (determined on a consolidated basis), in one transaction or series
of related transactions, or (iii) the consolidation, merger, amalgamation,
reorganization (other than pursuant to the Plan contemplated by the Investment
Agreement) of the Company or a similar transaction in which the Company is
combined with another Person, unless shares of Common Stock held by holders who
are not affiliated with the Company or any entity acquiring the Company remain
unchanged or are exchanged for, converted into or constitute solely (except to
the extent of applicable appraisal rights or cash received in lieu of
fractional shares) the right to receive as consideration Public Stock and the
Persons or Group who beneficially own the outstanding Common Stock of the
Company immediately before consummation of the transaction beneficially own
more than 50% (by voting power) of the outstanding voting stock of the combined
or surviving entity or new parent immediately thereafter.

 

“Charter”
means [the Certificate of Incorporation of the Company dated as of xxxxxx xx,
2010][Insert Charter adopted pursuant to Section [       ]
of the Investment Agreement.]

 

“Common
Stock”  means the common stock, par
value $0.01 per share, of the Company, as authorized by the Charter as of the
Effective Date, and any successor security as provided by Section 5.11.

 

“Disinterested
Director” shall mean (i) with respect to an Affiliated Transaction or
potential Affiliated Transaction, a director who (A) is not Affiliated with,
and was not nominated by, any Investor Party that is a participant in such
transaction or potential transaction and (B) who has no personal financial
interest in the transaction (other than the same interest, if a stockholder of
the Company, as the other stockholders of the Company) and (ii) with respect to
any matter other than an Affiliated Transaction, a director who is not
Affiliated with, and was not nominated by, any Investor Party.

 

“Economic
Ownership” by a Person of any securities includes ownership by any Person
who, directly or indirectly, through any contract, arrangement, understanding,
relationship or otherwise, has (i) “beneficial ownership” as defined in Rule
13d-3 adopted by the SEC under the Exchange Act or (ii) economic interest in
such security as a result of any cash-settled total return swap transaction or
any other swap, other derivative or “synthetic” ownership arrangement (in which
case the number of securities with respect to which such Person has Economic
Ownership shall be determined by the Company in it

 

9

 

reasonable judgment based on
such Person’s equivalent net long position); provided, however,
that for purposes of determining Economic Ownership, a Person shall be deemed
to be the Economic Owner of any securities which may be acquired by such Person
pursuant to any agreement, arrangement or understanding or upon the exercise of
conversion rights, exchange rights, warrants or options, or otherwise
(irrespective of whether the right to acquire such securities is exercisable
immediately or only after the passage of time, including the passage of time in
excess of sixty (60) days, the satisfaction of any conditions, the occurrence
of any event or any combination of the foregoing).  For purposes of this Agreement, a Person
shall be deemed to be the Economic Owner of any securities Economically Owned
by any Group of which such Person is or becomes a member.  The term “Economically Own” shall have
a correlative meaning.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any
successor federal statute, and the rules and regulations of the SEC promulgated
thereunder, all as the same may be amended and shall be in effect from time to
time.

 

“Fair
Market Value” means, with respect to each share of Public Stock,  the average of the daily volume weighted
average prices per share of such Public Stock for the ten consecutive trading
days immediately preceding the day as of which Fair Market Value is being
determined, as reported on the New York Stock Exchange, or if such shares are
not listed on the New York Stock Exchange, as reported by the principal U.S.
national or regional securities exchange or quotation system on which such shares
are then listed or quoted; provided, however, that in the absence
of such listing or quotations, the Fair Market Value of such shares shall be
the fair market value per share as determined by an Independent Financial
Expert appointed for such purpose, using one or more valuation methods that the
Independent Financial Expert in its best professional judgment determines to be
most appropriate, assuming such shares are fully distributed and are to be sold
in an arm’s-length transaction and there was no compulsion on the part of any
party to such sale to buy or sell and taking into account all relevant factors.

 

“Fully
Diluted Basis” means all outstanding shares of the Common Stock assuming
the exercise of all outstanding Share Equivalents, without regard to any
restrictions or conditions with respect to the exercisability of such Share
Equivalents.

 

“Governmental
Entity” means any (i) nation, region, state, province, county, city, town,
village, district or other jurisdiction, (ii) federal, state, local, municipal,
foreign or other government, (iii) governmental or quasi-governmental authority
of any nature (including any governmental agency, branch, department, court or
tribunal, or other entity), (iv) multinational organization or body or (v) body
entitled to exercise any administrative, executive, judicial, legislative,
police, regulatory or taxing authority or power of any nature or any other
self-regulatory organizations.

 

“Group”
has the meaning assigned to it in Section 13(d)(3) of the Exchange Act and
Rule 13d-5 thereunder.

 

“Independent
Financial Expert” means a nationally recognized financial advisory firm
approved by a majority of the Disinterested Directors.

 

10

 

“Investor
Investment Advisor” means any independently operated business unit of any
Affiliate of Investor that holds shares of Common Stock (i) in trust for the
benefit of persons other than any Investor Party, (ii) in mutual funds, open-
or closed-end investment funds or other pooled investment vehicles sponsored,
managed or advised or subadvised by such Investor Investment Advisor, (iii) as
agent and not principal, or (iv) in any other case where such Investor
Investment Advisor is disaggregated from Investor for the purposes of Section 13(d)
of the Exchange Act; provided, however, that  (A)
in each case, such shares of Common Stock were acquired in the ordinary
course of business of the Investor Investment Advisor’s respective investment
management or securities business and not with the intent or purpose on the
part of Investor or the Investor Parties of influencing control of the Company
or avoiding the provisions of this Agreement and (B) where appropriate,
“Chinese walls” or other informational barriers and other procedures have been
established.  For avoidance of doubt, for
purposes of this Agreement shares of Common Stock held by an Investor
Investment Advisor shall not be deemed to be Beneficially Owned by Investor or
the Investor Parties.

 

“Investor
Parties” means Investor and its Affiliates; provided, however, that none of
the Company, any Subsidiary of the Company or any Investor Investment Advisor
shall be deemed to be an Investor Party.

 

“Large Stockholder” means a Person that is the
Beneficial Owner of more than ten percent (10%) of the outstanding shares of
Common Stock on a Fully Diluted Basis.

 

“Law”
means any statutes, laws (including common law), rules, ordinances,
regulations, codes, orders, judgments, decisions, injunctions, writs, decrees,
applicable to the Company, Common Stock or Investor Parties.

 

“Merger
Transaction” means any transaction involving the acquisition (by purchase,
merger or otherwise) by any Person or Group of Beneficial Ownership of voting
securities of the Company entitling such Person or Group to exercise a majority
of the total voting power of all outstanding securities entitled to vote
generally in elections of directors of the Company.

 

 “Ordinary Course of Business” means the
ordinary and usual course of day-to-day operations of the business of the Company
consistent with past practice.

 

“Other
Stockholder” means, as of the date of the action in question, any Person
not Affiliated with Brookfield Asset Management, Inc., Fairholme Capital
Management LLC, Pershing Capital Management L.P., any of transferee who is a
party to a Transferee Agreement or any of their respective Affiliates.

 

 “Ownership Cap” means forty percent
(40%).

 

“Person”
means an individual, a group (including a “group” under Section 13(d) of
the Exchange Act), a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a Governmental Entity or any department, agency
or political subdivision thereof.

 

11

 

“Public
Stock” means common stock listed on a recognized U.S. national securities
exchange with an aggregate market capitalization (held by non-Affiliates of the
issuer) in excess of $1 billion in Fair Market Value.

 

“Rule
144” means Rule 144 promulgated by the SEC under the Securities Act, or any
successor rule or regulation hereafter adopted by the SEC, as the same may be
amended and shall be in effect from time to time.

 

“SEC”
means the Securities and Exchange Commission or any other federal agency then
administering the Exchange Act, the Securities Act and other federal securities
laws.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor federal
statute, and the rules and regulations of the SEC promulgated thereunder, all
as the same may be amended and shall be in effect from time to time.

 

“Share
Equivalent” means any stock, warrants, rights, calls, options or other
securities exchangeable or exercisable for, or convertible into, shares of
Common Stock.

 

“Subsidiary”
means, with respect to a Person, any corporation, limited liability company,
partnership, trust or other entity of which such Person owns (either alone,
directly, or indirectly through, or together with, one or more of its
Subsidiaries) 50% or more of the equity interests the holder of which is
generally entitled to vote for the election of the board of directors or
governing body of such corporation, limited liability company, partnership,
trust or other entity.

 

“Transaction
Documents” means, individually or collectively, the Investment Agreement or
the Warrant.

 

“Transferee”
means any proposed transferee of securities pursuant to Sections 2.2(b)(i)
or 2.2(b)(vi).

 

“Votes Cast” means the aggregate number of
shares of Common Stock that are properly voted for or against any action to be
taken by stockholders, excluding any shares if the holder of such shares
is contractually required to vote in proportion of the total number of votes
cast pursuant to this Agreement or any Transferee
Agreement executed hereunder.

 

“Voting
Cap” means 30%.

 

“Warrants”
means the New Warrants (as defined in the Investment Agreement).

 

12

 

MISCELLANEOUS

 

Notices. All notices
and other communications in connection with this Agreement shall be in writing
and shall be considered given if given in the manner, and be deemed given at
times, as follows:  (a) on the date
delivered, if personally delivered; (b) on the day of transmission if sent via
facsimile transmission to the facsimile number given below, and telephonic
confirmation of receipt is obtained promptly after completion of transmission;
or (c) on the next Business Day after being sent by recognized overnight mail
service specifying next business day delivery, in each case with delivery
charges pre-paid and addressed to the following addresses:

 

If
to Investor, to:

 

[insert name, address and contact details of Investor]

 

with a copy (which shall not constitute notice) to:

 

[insert name, address
and contact details of cc]

 

If
to Company, to:

 

General Growth Opportunities, Inc.

[110 N. Wacker Drive

Chicago, IL 60606]

Attention:

Facsimile:

 

with a copy (which shall not constitute notice) to:

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attention:        Marcia L. Goldstein, Esq.

                           Frederick S. Green, Esq.

                           Gary T. Holtzer

                           Malcolm E. Landau

Facsimile: (212) 310-8007

 

Assignment;
No Third Party Beneficiaries.  Neither this Agreement nor any of the rights,
interests or obligations under this Agreement may be assigned by any party
without the prior written consent of the other party.  This Agreement (including the documents and
instruments referred to in this Agreement) is not intended to and does not
confer upon any person other than the parties hereto any rights or remedies under
this Agreement.

 

13

 

Prior
Negotiations; Entire Agreement.  This Agreement (including the exhibits hereto
and the documents and instruments referred to in this Agreement) constitutes
the entire agreement of the parties hereto and supersedes all prior agreements,
arrangements or understandings, whether written or oral, between the parties
hereto with respect to the subject matter of this Agreement.

 

Governing
Law; Venue.  THIS
AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT)
THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE
NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT WILL BE GOVERNED AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE.  BOTH PARTIES HEREBY IRREVOCABLY SUBMIT TO THE
JURISDICTION OF, AND VENUE IN, DELAWARE AND WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS.

 

Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each of the
parties hereto, and delivered to the other party (including via facsimile or
other electronic transmission), it being understood that each party need not
sign the same counterpart.

 

Expenses.  Except as otherwise provided in this
Agreement, Investor and the Company shall each bear its own expenses incurred
in connection with the negotiation and execution of this Agreement and each
other agreement, document and instrument contemplated by this Agreement and the
consummation of the transactions contemplated hereby and thereby.

 

Waivers
and Amendments.  Subject to Section
5.2, this Agreement may be amended, modified, superseded, cancelled,
renewed or extended, and the terms and conditions of this Agreement may be
waived, only by a written instrument signed by Investor and the Company (with
the approval of a majority of the Disinterested Directors) or, in the case of a
waiver, by the party waiving compliance, and subject, to the extent required,
to the approval of the Bankruptcy Court. 
No delay on the part of any party in exercising any right, power or
privilege pursuant to this Agreement shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any right, power or privilege
pursuant to this Agreement, nor shall any single or partial exercise of any
right, power or privilege pursuant to this Agreement, preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
pursuant to this Agreement.  The rights
and remedies provided pursuant to this Agreement are cumulative and are not
exclusive of any rights or remedies which any party otherwise may have at law
or in equity.

 

Construction.

 

The
headings in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

 

Unless
the context otherwise requires, as used in this Agreement:  (i) “or” shall mean “and/or”; (ii)
“including” and its variants mean “including, without limitation” and

 

14

 

its variants; (iii) words
defined in the singular have the parallel meaning in the plural and vice versa;
(iv) references to “written” or “in writing” include in visual electronic form;
(v) words of one gender shall be construed to apply to each gender; and (vi)
the terms “Article” and “Section” refer to the specified Article or Section of
this Agreement.

 

Severability.  If any term or other provision of this
Agreement is invalid, illegal, or incapable of being enforced by any law or
public policy, all other terms or provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party.  Upon
such determination that any term or other provision is invalid, illegal, or
incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties
hereto as closely as possible in an acceptable manner in order that the
transactions contemplated hereby are consummated as originally contemplated to
the greatest extent possible.

 

Equitable
Relief.  It is hereby acknowledged that
irreparable harm would occur in the event that any of the provisions of this
Agreement were not performed fully by the parties hereto in accordance with the
terms specified herein, and that monetary damages are an inadequate remedy for
breach of this Agreement because of the difficulty of ascertaining and
quantifying the amount of damage that will be suffered by the parties hereto
relying hereon in the event that the undertakings and provisions contained in
this Agreement were breached or violated. 
Accordingly, each party hereto hereby agrees that each other party
hereto shall be entitled to an injunction or injunctions to restrain, enjoin
and prevent breaches of the undertakings and provisions hereof and to enforce
specifically the undertakings and provisions hereof in any court of the United
States or any state having jurisdiction over the matter; it being understood
that such remedies shall be in addition to, and not in lieu of, any other
rights and remedies available at law or in equity.

 

Successor
Securities.  The
provisions of this Agreement pertaining to shares of Common Stock shall apply
to all shares of Common Stock Beneficially Owned by any Investor Party and any
voting equity securities of the Company, regardless of class, series,
designation or par value, that are issued as a dividend on or in any other
distribution in respect of, or as a result of a reclassification (including a
change in par value) in respect of, shares of Common Stock or other shares of
the Company which, as provided by this section, are considered as shares of
Common Stock for purposes of this Agreement and shall also apply to any voting
equity security issued by any company that succeeds, by merger, consolidation,
a share exchange, a reorganization of the Company or any similar transaction,
to all or substantially all the business of the Company, or to the ownership
thereof, if such security was issued in exchange for or otherwise as
consideration for or in respect of shares of Common Stock (or other shares
considered as shares of Common Stock, as provided by this definition) in
connection with such succession transaction.

 

Voting
Procedures.  If, in
connection with any stockholder meeting or consent solicitation, Investor or
the Investor Parties are required under the terms of this Agreement to vote in
proportion to the Unaffiliated Stockholders, then the parties shall cooperate
to determine appropriate procedures and mechanics to facilitate such
proportionate voting.

 

15

 

** REMAINDER OF PAGE INTENTIONALLY LEFT BLANK**

 

16

 

IN WITNESS WHEREOF, the
undersigned have caused this Agreement to be executed and delivered by each of
them or their respective officers thereunto duly authorized, all as of the date
first written above.

 

 

	
   

  	
  GENERAL GROWTH OPPORTUNITIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [INSERT NAME OF INVESTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit 10.3

 

EXECUTION VERSION

 

 

 

AMENDED AND RESTATED

 

STOCK PURCHASE AGREEMENT

 

effective as of March 31, 2010

 

between

 

THE PURCHASERS PARTY HERETO

 

and

 

GENERAL GROWTH PROPERTIES, INC.

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Article I

  	
  PURCHASE
  OF NEW COMMON STOCK; CLOSING

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Purchase
  of New Common Stock

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.2

  	
  Closing

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.3

  	
  Company
  Rights Offering Election

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.4

  	
  Company
  Election to Replace Certain Shares; Company Election to Reserve and Repurchase
  Certain Shares

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1.5

  	
  Pro
  Rata Reductions with Pershing Agreement

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Article II

  	
  GGO
  SHARE DISTRIBUTION AND PURCHASE OF GGO COMMON STOCK

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  GGO
  Share Distribution

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.2

  	
  Purchase
  of GGO Common Stock

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  Article III

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE COMPANY

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Organization
  and Qualification

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.2

  	
  Corporate
  Power and Authority

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.3

  	
  Execution
  and Delivery; Enforceability

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.4

  	
  Authorized
  Capital Stock

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.5

  	
  Issuance

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.6

  	
  No
  Conflict

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.7

  	
  Consents
  and Approvals

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.8

  	
  Company
  Reports

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.9

  	
  No
  Undisclosed Liabilities

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.10

  	
  No
  Material Adverse Effect

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.11

  	
  No
  Violation or Default: Licenses and Permits

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.12

  	
  Legal
  Proceedings

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.13

  	
  Investment
  Company Act

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.14

  	
  Compliance
  With Environmental Laws

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.15

  	
  Company
  Benefit Plans

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.16

  	
  Labor
  and Employment Matters

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.17

  	
  Insurance

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.18

  	
  No
  Unlawful Payments

  	
   

  	
  17

  
					

 

i

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.19

  	
  No
  Broker’s Fees

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.20

  	
  Real
  and Personal Property

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.21

  	
  Tax
  Matters

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.22

  	
  Material
  Contracts

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.23

  	
  Certain
  Restrictions on Charter and Bylaws Provisions; State Takeover Laws

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.24

  	
  No
  Other Representations or Warranties

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IV

  	
  REPRESENTATIONS
  AND WARRANTIES OF PURCHASER

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Organization

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.2

  	
  Power
  and Authority

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.3

  	
  Execution
  and Delivery

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.4

  	
  No
  Conflict

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.5

  	
  Consents
  and Approvals

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.6

  	
  Compliance
  with Laws

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.7

  	
  Legal
  Proceedings

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.8

  	
  No
  Broker’s Fees

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.9

  	
  Sophistication

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.10

  	
  Purchaser
  Intent

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.11

  	
  Reliance
  on Exemptions

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.12

  	
  REIT
  Representations

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.13

  	
  Financial
  Capability

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.14

  	
  No
  Other Representations or Warranties

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.15

  	
  Acknowledgement

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  Article V

  	
  COVENANTS
  OF THE COMPANY AND PURCHASER

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Bankruptcy
  Court Motions and Orders

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.2

  	
  Warrants,
  New Warrants and GGO Warrants

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.3

  	
  [Intentionally
  Omitted.]

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.4

  	
  Listing

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.5

  	
  Use
  of Proceeds

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.6

  	
  Access
  to Information

  	
   

  	
  29

  
					

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.7

  	
  Competing
  Transactions

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.8

  	
  Reservation
  for Issuance

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.9

  	
  Subscription
  Rights

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.10

  	
  [Intentionally
  Omitted.]

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.11

  	
  Notification
  of Certain Matters

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.12

  	
  Further
  Assurances

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.13

  	
  [Intentionally
  Omitted.]

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.14

  	
  Rights
  Agreement; Reorganized Company Organizational Documents

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.15

  	
  Stockholder
  Approval

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.16

  	
  Closing
  Date Net Debt

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VI

  	
  ADDITIONAL
  COVENANTS OF PURCHASER

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Information

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.2

  	
  Purchaser
  Efforts

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.3

  	
  Plan
  Support

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.4

  	
  Transfer
  Restrictions

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.5

  	
  [Intentionally
  Omitted.]

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.6

  	
  REIT
  Representations and Covenants

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.7

  	
  Non-Control
  Agreement

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.8

  	
  [Intentionally
  Omitted.]

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.9

  	
  Additional
  Backstop

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VII

  	
  CONDITIONS
  TO THE OBLIGATIONS OF PURCHASER

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Conditions
  to the Obligations of Purchaser

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  Article VIII

  	
  CONDITIONS
  TO THE OBLIGATIONS OF THE COMPANY

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Conditions
  to the Obligations of the Company

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  Article IX

  	
  [INTENTIONALLY
  OMITTED]

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
  Article X

  	
  SURVIVAL
  OF REPRESENTATIONS AND WARRANTIES

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  Survival
  of Representations and Warranties

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
  Article XI

  	
  TERMINATION

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.1

  	
  Termination

  	
   

  	
  55

  
									

 

iii

 

TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11.2

  	
  Effects
  of Termination

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
  Article XII

  	
  DEFINITIONS

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 12.1

  	
  Defined
  Terms

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  Article XIII

  	
  MISCELLANEOUS

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.1

  	
  Notices

  	
   

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.2

  	
  Assignment;
  Third Party Beneficiaries

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.3

  	
  Prior
  Negotiations; Entire Agreement

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.4

  	
  Governing
  Law; Venue

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.5

  	
  Company
  Disclosure Letter

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.6

  	
  Counterparts

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.7

  	
  Expenses

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.8

  	
  Waivers
  and Amendments

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.9

  	
  Construction

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.10

  	
  Adjustment
  of Share Numbers and Prices

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.11

  	
  Certain
  Remedies

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 13.12

  	
  Bankruptcy
  Matters

  	
   

  	
  79

  
						

 

iv

 

LIST
OF EXHIBITS AND SCHEDULES

 

	
  Exhibit A:

  	
   

  	
  Plan
  Summary Term Sheet

  
	
   

  	
   

  	
   

  
	
  Exhibit B:

  	
   

  	
  Post-Bankruptcy
  GGP Corporate Structure

  
	
   

  	
   

  	
   

  
	
  Exhibit C-1:

  	
   

  	
  Brookfield
  Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit C-2:

  	
   

  	
  Pershing
  Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit D:

  	
   

  	
  REIT
  Representation Letter

  
	
   

  	
   

  	
   

  
	
  Exhibit E:

  	
   

  	
  GGO
  Assets

  
	
   

  	
   

  	
   

  
	
  Exhibit F:

  	
   

  	
  Form of
  Approval Order

  
	
   

  	
   

  	
   

  
	
  Exhibit G:

  	
   

  	
  Form of
  Warrant Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit H:

  	
   

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit I:

  	
   

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit J:

  	
   

  	
  Form of
  REIT Opinion

  
	
   

  	
   

  	
   

  
	
  Exhibit K:

  	
   

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit L:

  	
   

  	
  [Intentionally
  Omitted]

  
	
   

  	
   

  	
   

  
	
  Exhibit M:

  	
   

  	
  Form of
  Non-Control Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit N:

  	
   

  	
  Certain
  REIT Investors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule
  I:

  	
   

  	
  GGO
  and GGP Pro Rata Shares

  

 

v

 

INDEX OF DEFINED TERMS

 

	
  Defined
  Term

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  2006 Bank Loan

  	
   

  	
  59

  
	
  Additional Financing

  	
   

  	
  48

  
	
  Additional Sales Period

  	
   

  	
  59

  
	
  Adequate Reserves

  	
   

  	
  22

  
	
  Affiliate

  	
   

  	
  59

  
	
  Agreement

  	
   

  	
  1

  
	
  Anticipated Debt Paydowns

  	
   

  	
  48

  
	
  Approval Motion

  	
   

  	
  28

  
	
  Approval Order

  	
   

  	
  28

  
	
  Asset Sales

  	
   

  	
  48

  
	
  Bankruptcy Cases

  	
   

  	
  1

  
	
  Bankruptcy Code

  	
   

  	
  1

  
	
  Bankruptcy Court

  	
   

  	
  1

  
	
  Blackstone

  	
   

  	
  75

  
	
  Blackstone Assigned Securities

  	
   

  	
  75

  
	
  Blackstone Assigned Shares

  	
   

  	
  75

  
	
  Blackstone Assigned Warrants

  	
   

  	
  75

  
	
  Blackstone Purchase Price

  	
   

  	
  75

  
	
  Brazilian Entities

  	
   

  	
  59

  
	
  Brookfield Agreement

  	
   

  	
  2

  
	
  Brookfield Consortium Member

  	
   

  	
  59

  
	
  Brookfield Investor

  	
   

  	
  2

  
	
  Business Day

  	
   

  	
  60

  
	
  Capital Raising Activities

  	
   

  	
  60

  
	
  Cash Equivalents

  	
   

  	
  60

  
	
  Change of Control

  	
   

  	
  60

  
	
  Chapter 11

  	
   

  	
  1

  
	
  Claims

  	
   

  	
  60

  
	
  Clawback Percentage

  	
   

  	
  5

  
	
  Clawback Shares

  	
   

  	
  5

  
	
  Closing

  	
   

  	
  4

  
	
  Closing Date

  	
   

  	
  4

  
	
  Closing Date Net Debt

  	
   

  	
  60

  
	
  Closing Date Net Debt W/O Reinstatement Adjustment and
  Permitted Claims Amounts

  	
   

  	
  61

  
	
  Closing Restraint

  	
   

  	
  57

  
	
  CMPC

  	
   

  	
  7

  
	
  CNDAS Dispute Notice

  	
   

  	
  38

  
	
  CNDAS Disputed Items

  	
   

  	
  38

  
	
  Code

  	
   

  	
  16

  
	
  Common Stock

  	
   

  	
  1

  
	
  Company

  	
   

  	
  2

  
	
  Company Benefit Plan

  	
   

  	
  61

  
	
  Company Board

  	
   

  	
  62

  

 

vi

 

	
  Company Disclosure Letter

  	
   

  	
  8

  
	
  Company Ground Lease Property

  	
   

  	
  20

  
	
  Company Mortgage Loan

  	
   

  	
  21

  
	
  Company Option Plans

  	
   

  	
  9

  
	
  Company Properties

  	
   

  	
  18

  
	
  Company Property

  	
   

  	
  18

  
	
  Company Property Lease

  	
   

  	
  20

  
	
  Company Rights Offering

  	
   

  	
  4

  
	
  Company SEC Reports

  	
   

  	
  13

  
	
  Competing Transaction

  	
   

  	
  62

  
	
  Conclusive Net Debt Adjustment Statement

  	
   

  	
  62

  
	
  Confirmation Order

  	
   

  	
  45

  
	
  Confirmed Debtors

  	
   

  	
  70

  
	
  Contract

  	
   

  	
  62

  
	
  Corporate Level Debt

  	
   

  	
  62

  
	
  Debt

  	
   

  	
  62

  
	
  Debtors

  	
   

  	
  1

  
	
  Designation Conditions

  	
   

  	
  4

  
	
  DIP Loan

  	
   

  	
  63

  
	
  Disclosure Statement

  	
   

  	
  63

  
	
  Disclosure Statement Order

  	
   

  	
  45

  
	
  Dispute Notice

  	
   

  	
  38

  
	
  Disputed Items

  	
   

  	
  38

  
	
  Effective Date

  	
   

  	
  4

  
	
  Encumbrances

  	
   

  	
  18

  
	
  Environmental Laws

  	
   

  	
  15

  
	
  Equity Exchange

  	
   

  	
  2

  
	
  Equity Securities

  	
   

  	
  10

  
	
  ERISA

  	
   

  	
  63

  
	
  ERISA Affiliate

  	
   

  	
  16

  
	
  Excess Surplus Amount

  	
   

  	
  63

  
	
  Exchangeable Notes

  	
   

  	
  63

  
	
  Excluded Claims

  	
   

  	
  63

  
	
  Excluded Non-US Plans

  	
   

  	
  17

  
	
  Fairholme

  	
   

  	
  65

  
	
  Foreign Plan

  	
   

  	
  17

  
	
  Fully Diluted Basis

  	
   

  	
  65

  
	
  GAAP

  	
   

  	
  65

  
	
  GGO

  	
   

  	
  2

  
	
  GGO Common Share Amount

  	
   

  	
  65

  
	
  GGO Common Stock

  	
   

  	
  6

  
	
  GGO Note Amount

  	
   

  	
  65

  
	
  GGO Per Share Purchase Price

  	
   

  	
  7

  
	
  GGO Pro Rata Share

  	
   

  	
  66

  
	
  GGO Promissory Note

  	
   

  	
  65

  
	
  GGO Purchase Price

  	
   

  	
  7

  

 

vii

 

	
  GGO Representative

  	
   

  	
  6

  
	
  GGO Setup Costs

  	
   

  	
  66

  
	
  GGO Share Distribution

  	
   

  	
  7

  
	
  GGO Shares

  	
   

  	
  7

  
	
  GGO Warrants

  	
   

  	
  29

  
	
  GGP

  	
   

  	
  1

  
	
  GGP Pro Rata Shares

  	
   

  	
  66

  
	
  Governmental Entity

  	
   

  	
  66

  
	
  Hazardous Materials

  	
   

  	
  16

  
	
  Hughes Agreement

  	
   

  	
  66

  
	
  Hughes Amount

  	
   

  	
  65

  
	
  Hughes Heirs Obligations

  	
   

  	
  66

  
	
  Identified Assets

  	
   

  	
  6

  
	
  Indebtedness

  	
   

  	
  66

  
	
  Indemnity Cap

  	
   

  	
  39

  
	
  Initial Investors

  	
   

  	
  2

  
	
  Investment Agreements

  	
   

  	
  2

  
	
  Joint Venture

  	
   

  	
  67

  
	
  Knowledge

  	
   

  	
  67

  
	
  Law

  	
   

  	
  67

  
	
  Liquidity Equity Issuances

  	
   

  	
  67

  
	
  Liquidity Target

  	
   

  	
  47

  
	
  Material Adverse Effect

  	
   

  	
  67

  
	
  Material Contract

  	
   

  	
  68

  
	
  Material Lease

  	
   

  	
  21

  
	
  Measurement Date

  	
   

  	
  9

  
	
  Most Recent Statement

  	
   

  	
  18

  
	
  MPC Assets

  	
   

  	
  68

  
	
  MPC Taxes

  	
   

  	
  69

  
	
  Net Debt Excess Amount

  	
   

  	
  69

  
	
  Net Debt Surplus Amount

  	
   

  	
  69

  
	
  New Common Stock

  	
   

  	
  1

  
	
  New Debt

  	
   

  	
  47

  
	
  New DIP Agreement

  	
   

  	
  44

  
	
  New Warrants

  	
   

  	
  29

  
	
  Non-Control Agreement

  	
   

  	
  69

  
	
  Non-Controlling Properties

  	
   

  	
  69

  
	
  NYSE

  	
   

  	
  29

  
	
  Offering Premium

  	
   

  	
  69

  
	
  Operating Partnership

  	
   

  	
  69

  
	
  Original Agreement

  	
   

  	
  1

  
	
  PBGC

  	
   

  	
  16

  
	
  Per Share Purchase Price

  	
   

  	
  3

  
	
  Permitted Claims

  	
   

  	
  70

  
	
  Permitted Claims Amount

  	
   

  	
  70

  
	
  Permitted Replacement Shares

  	
   

  	
  70

  

 

viii

 

	
  Permitted Title Exceptions

  	
   

  	
  18

  
	
  Pershing Agreement

  	
   

  	
  2

  
	
  Pershing Purchasers

  	
   

  	
  2

  
	
  Person

  	
   

  	
  70

  
	
  Petition Date

  	
   

  	
  1

  
	
  Plan

  	
   

  	
  1

  
	
  Plan Debtors

  	
   

  	
  70

  
	
  Plan Summary Term Sheet

  	
   

  	
  1

  
	
  PMA Claims

  	
   

  	
  70

  
	
  Preliminary Closing Date Net Debt Review Deadline

  	
   

  	
  70

  
	
  Preliminary Closing Date Net Debt Review Period

  	
   

  	
  71

  
	
  Preliminary Closing Date Net Debt Schedule

  	
   

  	
  37

  
	
  Proportionally Consolidated Debt

  	
   

  	
  71

  
	
  Proportionally Consolidated Unrestricted Cash

  	
   

  	
  71

  
	
  Proposed Approval Order

  	
   

  	
  28

  
	
  Proposed Securities

  	
   

  	
  31

  
	
  Purchase Price

  	
   

  	
  3

  
	
  Purchaser

  	
   

  	
  1

  
	
  Purchaser Group

  	
   

  	
  71

  
	
  Refinance Cap

  	
   

  	
  50

  
	
  Reinstated Amounts

  	
   

  	
  47

  
	
  Reinstatement Adjustment Amount

  	
   

  	
  71

  
	
  Reinstatement Amount

  	
   

  	
  71

  
	
  REIT

  	
   

  	
  23

  
	
  REIT Subsidiary

  	
   

  	
  23

  
	
  Reorganized Company

  	
   

  	
  1

  
	
  Reorganized Company Organizational Documents

  	
   

  	
  36

  
	
  Repurchase Notice

  	
   

  	
  5

  
	
  Reserve

  	
   

  	
  70

  
	
  Reserve Surplus Amount

  	
   

  	
  71

  
	
  Reserved Shares

  	
   

  	
  5

  
	
  Resolution Period

  	
   

  	
  38

  
	
  Rights Agreement

  	
   

  	
  72

  
	
  Rights Offering Election

  	
   

  	
  4

  
	
  Rouse Bonds

  	
   

  	
  72

  
	
  Rule 144

  	
   

  	
  41

  
	
  Sales Cap

  	
   

  	
  50

  
	
  SEC

  	
   

  	
  13

  
	
  Securities Act

  	
   

  	
  13

  
	
  Share Cap Number

  	
   

  	
  48

  
	
  Share Equivalent

  	
   

  	
  72

  
	
  Shares

  	
   

  	
  3

  
	
  Significant Subsidiaries

  	
   

  	
  72

  
	
  Specified Debt

  	
   

  	
  72

  
	
  Subscription Right

  	
   

  	
  31

  
	
  Subsidiary

  	
   

  	
  72

  

 

ix

 

	
  Synthetic Lease Obligation

  	
   

  	
  67

  
	
  Target Net Debt

  	
   

  	
  72

  
	
  Tax Protection Agreements

  	
   

  	
  72

  
	
  Tax Return

  	
   

  	
  23

  
	
  Taxes

  	
   

  	
  23

  
	
  Termination Date

  	
   

  	
  73

  
	
  Transactions

  	
   

  	
  73

  
	
  Transfer

  	
   

  	
  42

  
	
  TRUPS

  	
   

  	
  73

  
	
  Unrestricted Cash

  	
   

  	
  73

  
	
  Unrestricted Date

  	
   

  	
  40

  
	
  Unsecured Indebtedness

  	
   

  	
  73

  
	
  UPREIT Units

  	
   

  	
  73

  
	
  Warrant Agreement

  	
   

  	
  29

  
	
  Warrants

  	
   

  	
  29

  

 

x

 

AMENDED AND RESTATED STOCK
PURCHASE AGREEMENT, effective as
of March 31, 2010 (this “Agreement”), by and between General Growth
Properties, Inc., a Delaware corporation (“GGP”), and The Fairholme Fund, a series of Fairholme
Funds, Inc., a Maryland corporation (“The Fairholme Fund”) and
Fairholme Focused Income Fund, a series of Fairholme Funds, Inc., a
Maryland corporation, (each, together with its permitted nominees and assigns,
a “Purchaser”).

 

On
March 31, 2010, GGP and Purchasers entered into the Stock Purchase
Agreement (as subsequently amended on May 3, 2010 and May 7, 2010,
the “Original  Agreement”) to provide for the terms and conditions
for the consummation of the transactions contemplated herein.  Pursuant to Section 13.8 of the Original
Agreement, the parties thereto wish to amend and restate the Original Agreement
ab initio in its entirety as set forth
herein.  References herein to “date of
this Agreement” and “date hereof” shall refer to March 31, 2010.

 

RECITALS

 

WHEREAS, GGP is a debtor in possession in that certain
bankruptcy case under chapter 11 (“Chapter 11”) of Title 11 of the
United States Code, 11 U.S.C. §§ 101 -1532 (as amended, the “Bankruptcy Code”)
filed on April 16, 2009 (the “Petition Date”) in the United States
Bankruptcy Court for the Southern District of New York (the “Bankruptcy
Court”), Case No. 09-11977 (ALG).

 

WHEREAS,  each  Purchaser, separately and not jointly, desires to assist
GGP in its plans to recapitalize and emerge from bankruptcy and has agreed to
sponsor the implementation of a joint chapter 11 plan of reorganization based
on the Plan Summary Term Sheet (as defined below) (together with all documents
and agreements that form part of such plan or related plan supplement or are
related thereto, and as it may be amended, modified or supplemented from time
to time, in each case, to the extent it relates to the implementation and
effectuation of the Plan Summary Term Sheet and this Agreement, the “Plan”),
of GGP and its Subsidiaries and Affiliates who are debtors and debtors-in-possession
(the “Debtors”) in the chapter 11 cases pending and jointly administered
in the Bankruptcy Court (the “Bankruptcy Cases”).

 

WHEREAS, principal elements of the Plan (including a table
setting forth the proposed treatment of allowed claims and equity interests in
the Bankruptcy Cases) are set forth on Exhibit A hereto (the “Plan
Summary Term Sheet”).

 

WHEREAS, the Plan shall provide, among other things, that
(i) each holder of common stock, par value $0.01 per share, of GGP (the “Common
Stock”) shall receive, in exchange for each share of Common Stock held by
such holder, one share of new common stock (the “New Common Stock”) of a
new company that succeeds to GGP in the manner contemplated by Exhibit B
upon consummation of the Plan (the “Reorganized Company”) and
(ii) any Equity Securities (other than Common Stock) of the Company (as
defined below) or any of its Subsidiaries (as defined below) outstanding
immediately after the Effective Date that were previously convertible into, or
exercisable or exchangeable for, Common Stock shall thereafter be convertible
into, or exercisable or exchangeable for, New Common Stock (based upon the
number of shares of Common Stock underlying such Equity Securities) (the
transactions contemplated by clauses (i) and (ii) of this recital
being referred to herein as the “Equity 

 

 

Exchange”).  For purposes of this Agreement, the “Company”
shall be deemed to refer, prior to consummation of the Plan, to GGP and, on and
after consummation of the Plan, the Reorganized Company, as the context
requires.

 

WHEREAS,  each
Purchaser, separately and not jointly, desires to make an investment in the
Reorganized Company on the terms and subject to the conditions described herein
in the form of the purchase of shares of New Common Stock as contemplated
hereby.

 

WHEREAS, in addition to the Equity Exchange and the sale of
the Shares (as defined below), the Plan shall provide for the incorporation by
the Company of a new subsidiary (“GGO”), the contribution of certain
assets (and/or equity interests related thereto) of the Company to GGO and the
assumption by GGO of the liabilities associated with such assets, the
distribution to the shareholders of the Company (prior to the issuance of the
Shares and the issuance of other shares of New Common Stock contemplated by
this Agreement other than pursuant to the Equity Exchange) on a pro rata basis
and holders of UPREIT Units of all of the capital stock of GGO, and whereas
each Purchaser desires to make an investment in GGO on the terms and subject to
the conditions described herein in the form of the purchase of shares of GGO
Common Stock as contemplated hereby.

 

WHEREAS,  the Company
has requested that each Purchaser, separately and not jointly, commit to
purchase the Shares and the GGO Shares at a fixed price for the term hereof.

 

WHEREAS, each Purchaser, separately and not jointly, has
agreed to enter into this Agreement and commit to purchase the Shares and the
GGO Shares only on the condition that the Company, as promptly as practicable following
the date hereof (but no later than the date provided in Section 5.2
hereof), issue the Warrants contemplated herein and perform its other
obligations hereunder.

 

WHEREAS, on and effective as of the date hereof, the
Company entered into an agreement (in the form attached hereto as Exhibit C-1
together with any amendments thereto as have been approved by each Purchaser,
the “Brookfield Agreement”) with REP Investments LLC (the “Brookfield
Investor”) pursuant to which the Brookfield Investor has agreed to make
(i) an investment of up to $2,500,000,000 in the Reorganized Company in
the form of the purchase of shares of New Common Stock and (ii) an
investment of $125,000,000 in GGO in the form of the purchase of shares of GGO
Common Stock.

 

WHEREAS, on and effective as of the date hereof, the
Company entered into an agreement (in the form attached hereto as Exhibit C-2
together with any amendments thereto as have been approved by each Purchaser,
the “Pershing Agreement”  and,
together with this Agreement and the Brookfield Agreement, the “Investment
Agreements”) with Pershing Square, L.P., Pershing Square II, L.P., Pershing
Square International, Ltd. and Pershing Square International V, Ltd.
(the “Pershing Purchasers” and, together with each Purchaser and the
Brookfield Investor, the “Initial Investors”) pursuant to which the
Pershing Purchasers have agreed to make (i) an investment of up to
$1,085,714,290 in the Reorganized Company in the form of the purchase of shares
of New Common Stock and (ii) an investment of $62,500,000 in GGO in the
form of the purchase of shares of GGO Common Stock.

 

2

 

NOW, THEREFORE, in
consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein, the parties agree as follows:

 

ARTICLE I

 

PURCHASE OF NEW COMMON STOCK;
CLOSING

 

SECTION 1.1 
Purchase of New Common Stock.

 

(a)           On
the terms and subject to the conditions set forth herein, at the Closing (as
defined below), each Purchaser shall purchase from the Company, and the Company
shall sell to such Purchaser, a number of shares of New Common Stock (the “Shares”)
equal to its GGP Pro Rata Share of the Total Purchase Amount (as defined below)
for a price per share equal to $10.00 (the “Per Share Purchase Price”
and, in the aggregate, the “Purchase Price”); provided, that no
Purchaser shall be obligated to purchase a number of Shares less than its GGP
Pro Rata Share of 190,000,000, as determined pursuant to Section 1.4.  At the Closing, the Purchasers shall cause
the Purchase Price to be paid (i) first, to the extent that the Purchasers
elect by written notice to the Company not less than three Business Days prior
to the Closing Date, by the application of any claims against the Debtors that
are held by the Purchasers and outstanding as of the Effective Date in an
amount equal to the allowed amount (inclusive of prepetition and postpetition
interest accrued up to and on the Effective Date at the applicable rate
provided in the Plan), with each $10.00 in such amount of allowed claims so
applied being in satisfaction of the obligation to pay $10.00 of the Purchase
Price and (ii) second, by wire transfer of immediately available U.S.
Dollar funds.  For the avoidance of
doubt, the Purchasers may elect which claims to apply in satisfaction of the
Purchasers’ obligation to pay the Purchase Price for purposes of clause (i),
and the application of such claims against the Purchase Price in accordance
with clause (i) shall represent complete satisfaction of the Debtors’
obligations in respect of such allowed claims so applied.  For the avoidance of doubt and as provided in
the Plan, any application by the Purchaser of allowed claims in satisfaction of
a portion of the Purchase Price shall be effected by causing the Debtor liable
for such claims to make payment for such claims in accordance with the Plan and
by directing the amounts so payable to be paid to the Company and applied in
satisfaction of a portion of the Purchase Price.

 

(b)           The
“Total Purchase Amount” will be 380,000,000, subject to reduction
pursuant to Section 1.4.

 

(c)           All
Shares shall be delivered with any and all issue, stamp, transfer or similar
taxes or duties payable in connection with such delivery duly paid by the
Company to the extent required under the Confirmation Order or applicable Law.

 

(d)           Each
Purchaser, in its sole discretion, may assign its rights to receive Shares
hereunder or designate that some or all of the Shares be issued in the name of,
and delivered to, one or more of the other members of its Purchaser Group or
any third party to whom the shares could be transferred immediately after
Closing in accordance with Section 6.4, subject to (i) such
action not causing any delay in the obtaining of, or significantly increasing
the risk of not obtaining, any material authorizations, consents, orders,
declarations or approvals necessary to consummate the transactions contemplated
by this Agreement or otherwise delaying the 

 

3

 

consummation
of such transactions, (ii) such Person shall be an “accredited investor”
(within the meaning of Rule 501 of Regulation D under the Securities Act)
and shall have agreed in writing with and for the benefit of the Company to be
bound by the terms of this Agreement applicable to such Purchaser set forth in Section 6.4
and the applicable Non-Control Agreement, if any, including the delivery of the
letter certifying compliance with the representations and covenants set forth
on Exhibit D to the extent applicable to such assignee or designee
and (iii) such initial Purchaser not being relieved of any of its
obligations under this Agreement ((i), (ii) and (iii) collectively,
the “Designation Conditions”). 
Notwithstanding anything to the contrary in this Agreement, no Purchaser
may assign its rights to receive or designate Shares to any Person (other than
members of its Purchaser Group) if such assignment or designation would cause a
failure of the closing condition in Section 7.1(u) of the Brookfield
Agreement.

 

SECTION 1.2 
Closing.  Subject to the
satisfaction or waiver of the conditions (excluding conditions that, by their
nature, cannot be satisfied until the Closing, but subject to the satisfaction
or waiver of those conditions as of the Closing) set forth in Article VII
and Article VIII, the closing of the purchase of the Shares and the
GGO Shares by each Purchaser pursuant hereto (the “Closing”) shall occur
at 9:30 a.m., New York time, on the effective date of the Plan (the “Effective
Date”), at the offices of Weil, Gotshal & Manges LLP located at
767 Fifth Avenue, New York, NY 10153, or such other date, time or location as
agreed by the parties.  The date of the
Closing is referred to as the “Closing Date”.  Each of the Company and each Purchaser hereby
agrees that in no event shall the Closing occur unless all of the Shares and
the GGO Shares are sold to each applicable Purchaser (or to such other Persons
as each such applicable Purchaser may designate in accordance with and subject
to the Designation Conditions so long as such designation would not cause a
failure of the closing condition in Section 7.1(u) of the Brookfield
Agreement) on the Closing Date.

 

SECTION 1.3 
Company Rights Offering Election. 
The Company may at any time prior to the date of filing of the
Disclosure Statement, upon written notice to each Purchaser in accordance with
the terms hereof (the “Rights Offering Election”), irrevocably elect to
convert the obligation of such Purchaser to purchase the Shares as contemplated
by Section 1.1 hereof into an obligation of such Purchaser to
participate in a rights offering by the Company pursuant to which shareholders
and/or creditors of the Company are offered rights to subscribe for shares of
New Common Stock (a “Company Rights Offering”), subject to the execution
and delivery of definitive documentation therefor and the satisfaction of the
conditions described therein and other customary conditions for a public rights
offering.  To the extent the Company
makes a Rights Offering Election, (i) each Purchaser shall be entitled to
a minimum allocation of shares of New Common Stock in the Company Rights
Offering equal to the number of shares such Purchaser would otherwise be
required to purchase pursuant to Section 1.1 hereof had no such election
been made, (ii) the purchase price per share payable by such Purchaser
shall be equal to the Per Share Purchase Price and such Purchaser shall not be
otherwise adversely affected as compared to the transactions contemplated
hereby, (iii) the Company Rights Offering shall be effected in a manner
substantially consistent with the procedures contemplated by Section 2.2
of the Original Agreement; provided, that the Company Rights Offering
shall be completed by the Effective Date, and (iv) the Company and each
Purchaser shall cooperate in good faith to develop and agree upon documentation
that is reasonably acceptable to both the Company and each Purchaser governing
the further terms and conditions of the Company Rights Offering.

 

4

 

SECTION 1.4 
Company Election to Replace Certain Shares; Company Election to
Reserve and Repurchase Certain Shares.

 

(a)           In
the event that the Company has sold, or has binding commitments to sell on or
prior to the Effective Date, Permitted Replacement Shares, the Company may
elect by written notice to each Purchaser to reduce the Total Purchase Amount
by all or any portion of the number of such Permitted Replacement Shares as the
Company may determine in its discretion; provided, that the Total Purchase
Amount shall not be less than 190,000,000. 
No election by the Company under this Section 1.4(a) shall
be effective unless received by each Purchaser on or prior to the date that is
15 days before the commencement of the hearing to consider confirmation of the
Plan.  Any election by the Company under
this Section 1.4(a) shall be binding and irrevocable.

 

(b)           If
the Plan as presented for confirmation provides for the commencement on or
within 45 days after the Effective Date of a broadly distributed public
offering of New Common Stock, the Company
may elect, by written notice to each Purchaser on or prior to the date that is
15 days before the commencement of the hearing to consider confirmation of the
Plan, to specify a number of Shares to be  purchased by
the Purchasers at Closing as Shares to be subject to repurchase after Closing
pursuant to this Section 1.4(b) (the “Reserved Shares”);
provided, that the excess of (i) its GGP Pro Rata Share of the Total
Purchase Amount minus (ii) its Reserved Shares shall not be less than its
GGP Pro Rata Share of 190,000,000.  If the Company elects to designate any Reserved Shares, the Company
shall pay to each Purchaser in cash on the Effective Date an amount equal to
$0.25 per Reserved Share.  Upon payment of such amount, the Company
shall thereafter have the right to elect by written notice to each Purchaser (a
“Repurchase Notice”) on or prior to the 40th day after the Effective
Date (or, if not a Business Day, the next Business Day) to repurchase from each
Purchaser a number of Shares equal to the lesser of such Purchaser’s Clawback Percentage of (x) the aggregate number of Permitted
Replacement Shares (other than any Permitted Replacement Shares applied to
reduce the Total Purchase Amount pursuant to Section 1.4(a)) sold by the Company prior to the 45th day after the Effective Date and
(y) the sum of the initial number of Reserved Shares under this Agreement and
the initial number of Repurchase Shares (as defined in the Pershing Agreement)
under the Pershing Agreement.  The
purchase price for any Reserved Shares shall
be $10.00 per Share, payable in cash in immediately available funds against
delivery of the Reserved Shares on a
settlement date determined by the Company and each Purchaser and not later than
the date that is 45 days after the Effective Date. Any Repurchase Notice under
this Section 1.4(b) shall, when taken together with this
Agreement, constitute a binding offer and acceptance and be irrevocable.

 

For
the purposes of this Section 1.4, “Clawback Percentage”
means, for each Purchaser under this Agreement and the Pershing Agreement, the
quotient (expressed as a percentage) of (a) the number of Clawback Shares
such Purchaser is purchasing at Closing divided by (b) all the Clawback
Shares purchased at Closing under this Agreement and the Pershing
Agreement.  The aggregate Clawback
Percentages shall at all times equal 100%.

 

For
the purposes of this Section 1.4, “Clawback Shares” means
all Reserved Shares under this Agreement and all Repurchase Shares (but not Put
Shares) under the Pershing Agreement.

 

5

 

SECTION 1.5 
Pro Rata Reductions with Pershing Agreement.  No election by the Company pursuant to Section 1.4
shall be made unless the Company is making a similar election under the
Pershing Agreement, such that each of the aggregate number of Shares required
to be purchased at Closing is allocated as among each Purchaser and among each
of the Pershing Purchasers under the Pershing Agreement in accordance with the
applicable GGP Pro Rata Share.

 

ARTICLE II

 

GGO SHARE DISTRIBUTION AND
PURCHASE OF GGO COMMON STOCK

 

SECTION 2.1 
GGO Share Distribution.  On
the terms and subject to the conditions (including Bankruptcy Court approval)
set forth herein, the Plan shall provide for the following:

 

(a)           On
or prior to the Effective Date, the Company shall incorporate GGO with issued
and outstanding capital stock consisting of at least the GGO Common Share
Amount of shares of common stock (the “GGO Common Stock”), designate an
employee of the Company familiar with the Identified Assets and reasonably
acceptable to the other Initial Investors to serve as a representative of GGO
(the “GGO Representative”) and shall contribute to GGO (directly or
indirectly) the assets (and/or equity interests related thereto) set forth in Exhibit E
hereto and have GGO assume directly or indirectly the associated liabilities
(the “Identified Assets”); provided, however, that to the
extent the Company is prohibited by Law from contributing one or more of the
Identified Assets to GGO or the contribution thereof would breach or give rise
to a default under any Contract, agreement or instrument that would, in the
good faith judgment of the Company in consultation with the GGO Representative,
impair in any material respect the value of the relevant Identified Asset or
give rise to additional liability (other than liability that would not, in the
aggregate, be material) on the part of GGO or the Company or a Subsidiary of
the Company, the Company shall (i) to the extent not prohibited by Law or
would not give rise to such a default, take such action or cause to be taken
such other actions in order to place GGO, insofar as reasonably possible, in
the same economic position as if such Identified Asset had been transferred as
contemplated hereby and so that, insofar as reasonably possible, substantially
all the benefits and burdens (including all obligations thereunder but
excluding any obligations that arise out of the transfer of the Identified
Asset to the extent included in Permitted Claims) relating to such Identified
Asset, including possession, use, risk of loss, potential for gain and control
of such Identified Asset, are to inure from and after the Closing to GGO (provided
that as soon as a consent for the contribution of an Identified Asset is
obtained or the contractual impediment is removed or no longer applies, the
applicable Identified Asset shall be promptly contributed to GGO), or
(ii) to the extent the actions contemplated by clause (i) are not
possible without resulting in a material and adverse effect on the Company and
its Subsidiaries (as reasonably determined by the Company in consultation with
the GGO Representative), contribute other assets, with the separate consent of
each Purchaser (which such Purchaser shall not unreasonably withhold, condition
or delay), having an economically equivalent value and related financial impact
on the Company (in each case, as reasonably agreed by each Purchaser and the
Company in consultation with the GGO Representative) to the Identified Asset
not so contributed.  In no event shall
the Company (or any subsidiary of the Company) pay more than $16,000,000 in the
aggregate or make any other payment or provide 

 

6

 

any
other economic consideration to reduce the principal amount of the mortgage
related to 110 N. Wacker Drive, Chicago, Illinois.

 

(b)           The
GGO Common Share Amount of shares of GGO Common Stock, representing all of the
outstanding capital stock of GGO (other than shares of GGO Common Stock to be
issued (x) pursuant to Section 2.2 of this Agreement,
(y) to the other Initial Investors pursuant to Section 2.2 of their
respective Investment Agreements, and (z) upon exercise of the GGO
Warrants and the warrants issued to the other Initial Investors pursuant to
their respective Investment Agreements), shall be distributed, on or prior to
the Effective Date, to the shareholders of the Company (pre-issuance of the
Shares) on a pro rata basis and holders of UPREIT Units (the “GGO Share
Distribution”).

 

(c)           It
is agreed that neither the Company nor any of its Subsidiaries shall be
required to pay or cause payment of any fees or make any financial
accommodations to obtain any third-party consent, approval, waiver or other
permission for the contribution contemplated by Section 2.1(a), or
to seek any such consent, approval, waiver or other permission that is
inapplicable to the Company or any of its Debtor Subsidiaries pursuant to the
Bankruptcy Code.

 

(d)           The
parties currently contemplate that the GGO Share Distribution will be
structured as a “tax free spin-off” under the Code.  To the extent that the Company and each
Purchaser jointly determine that it is desirable for the GGO Share Distribution
to be structured as a taxable dividend, the parties will work together to
structure the transaction to allow for such outcome.

 

(e)           With
respect to the Columbia Master Planned Community (the “CMPC”), it is the
intention of the parties that office and mall assets currently producing any
material amount of income at the CMPC (including any associated right of access
to parking spaces) will be retained by the Company and the remaining non-income
producing assets at the CMPC will be transferred to GGO (including rights to
develop and/or redevelop (as appropriate) the  remainder of the CMPC).  On or
prior to the Effective Date, the Company and GGO shall enter into a mutually
satisfactory development and cooperation agreement with respect to the CMPC,
which agreement shall provide, among other things, that GGO shall grant
mutually satisfactory easements, to the extent not already granted, such that
the office buildings retained by GGP (as provided above) continuously shall
have access to parking spaces appropriate for such office buildings.

 

SECTION 2.2 
Purchase of GGO Common Stock.

 

(a)           On
the terms and subject to the conditions set forth herein, the Plan shall
provide that at the Closing, each Purchaser shall purchase from GGO, and GGO
shall sell to such Purchaser, a number of shares of GGO Common Stock (the “GGO
Shares”) equal to its GGO Pro Rata Share of 2,625,000 shares of GGO Common
Stock, for a price per share equal to $47.619048 (the “GGO Per Share
Purchase Price” and such $125,000,000 aggregate purchase price, the “GGO
Purchase Price”).  At the Closing the
Purchasers shall cause the GGO Purchase Price to be paid by wire transfer of
immediately available U.S. Dollar funds to such account or accounts as the
Company shall have designated in writing prior to the Closing.

 

7

 

(b)           All
GGO Shares shall be delivered with any and all issue, stamp, transfer or
similar taxes or duties payable in connection with such delivery duly paid by
GGO to the extent required under the Confirmation Order or applicable Law.

 

(c)           Each
Purchaser, in its sole discretion, may designate that some or all of the GGO
Shares be issued in the name of, and delivered to, the other members of its
Purchaser Group in accordance with and subject to the Designation Conditions.

 

ARTICLE III

 

REPRESENTATIONS AND WARRANTIES OF
THE COMPANY

 

The
Company represents and warrants to each Purchaser, as set forth below, except
(i) as set forth in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2009  (but
not in documents filed as exhibits thereto or documents incorporated by
reference therein) filed with the SEC on March 1, 2010 (other than in any
“risk factor” disclosure or any other forward-looking disclosures
contained in such reports under the headings “Risk Factors” or “Cautionary
Note” or any similar sections) or (ii) as set forth in the disclosure
schedule delivered by the Company to each Purchaser on the date of this
Agreement (the “Company Disclosure Letter”):

 

SECTION 3.1 
Organization and Qualification. 
The Company and each of its direct and indirect Significant Subsidiaries
is duly organized and is validly existing as a corporation or other form of
entity, where applicable, in good standing under the Laws of their respective
jurisdictions of organization, with the requisite power and authority to own,
operate or manage its properties and conduct its business as currently
conducted, subject, as applicable, to the restrictions that result from any
such entity’s status as a debtor-in-possession under Chapter 11, except to the
extent the failure of such Significant Subsidiary to be in good standing (to
the extent the concept of good standing is applicable in its jurisdiction of
organization) would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. 
The Company and each of its Significant Subsidiaries has been duly
qualified as a foreign corporation or other form of entity for the transaction
of business and, where applicable, is in good standing under the Laws of each
other jurisdiction in which it owns, manages, operates or leases properties or
conducts business so as to require such qualification, except to the extent the
failure to be so qualified or, where applicable, be in good standing would not
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

SECTION 3.2 
Corporate Power and Authority.

 

(a)           Subject
to the authorization of the Bankruptcy Court, which shall be contained in the
Confirmation Order, and the expiration or waiver by the Bankruptcy Court of the
14-day period set forth in Bankruptcy Rule 3020(e) following entry of
the Confirmation Order, the Company has the requisite power and authority to
enter into, execute and deliver this Agreement and to perform its obligations
hereunder (except with respect to (i) the issuance of the Warrants and
(ii) the provisions of the Approval Order).  The Company has taken all necessary corporate
action required for the due authorization, execution, delivery and performance
by it of this Agreement.

 

8

 

(b)           Subject
to the entry of the Approval Order, the Company has the requisite power and
authority to (i) issue the Warrants (assuming the accuracy of the
representations of each Purchaser contained in Exhibit D) and
(ii) perform its obligations pursuant to the provisions of the Approval
Order hereof.  No approval by any
securityholders of the Company or any Subsidiary of the Company is required in
connection with the issuance of the Warrants or the issuance of the shares of
Common Stock upon exercise of the Warrants.

 

(c)           The
Company has received written confirmation from the NYSE that the shares of New
Common Stock or other Equity Securities issuable by the Company to each
Purchaser and the other members of the Purchaser Group in connection with each
Purchaser’s exercise of its Subscription Rights contemplated by Section 5.9(a) hereof
shall not require stockholder approval and shall be eligible for listing on the
NYSE in the hands of such Purchaser or other members of the Purchaser Group
without any requirement for stockholder approval, in each case, during the five
(5) year period following the Closing Date.

 

SECTION 3.3 
Execution and Delivery; Enforceability.

 

(a)           This
Agreement has been duly and validly executed and delivered by the Company, and
subject to the authorization of the Bankruptcy Court, which shall be contained
in the Confirmation Order, and the expiration or waiver by the Bankruptcy Court
of the 14-day period set forth in Bankruptcy Rule 3020(e) following
entry of the Confirmation Order, shall constitute the valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, subject to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at Law or in equity) (except with respect
to (i) the issuance of the Warrants and (ii) the provisions of the Approval
Order).

 

(b)           Subject
to the entry of the Approval Order, the provisions of this Agreement relating
to (i) the issuance of the Warrants and (ii) the provisions of the
Approval Order shall constitute the valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms.

 

SECTION 3.4 
Authorized Capital Stock. 
As of the date of this Agreement, the authorized capital stock of the
Company consists of 875,000,000 shares of Common Stock and of 5,000,000 shares
of preferred stock.  The issued and
outstanding capital stock of the Company and the shares of Common Stock
available for grant pursuant to the Company’s 1993 Stock Incentive Plan, 1998
Stock Incentive Plan and 2003 Stock Incentive Plan (collectively, the “Company
Option Plans”) or otherwise as of March 26, 2010 (the “Measurement
Date”) is set forth on Section 3.4 of the Company Disclosure
Letter.  From the Measurement Date to the
date of this Agreement, other than in connection with the issuance of shares of
Common Stock pursuant to the exercise of options outstanding as of the
Measurement Date, there has been no change in the number of outstanding shares
of capital stock of the Company or the number of outstanding Equity Securities
(as defined below).  Except as set forth
on Section 3.4 of the Company Disclosure Letter, on the Measurement
Date, there was not outstanding, and there was not reserved for issuance, any
(i) share of capital stock or other voting securities of the Company or
its Significant Subsidiaries; (ii) security of the Company or its
Subsidiaries convertible into or exchangeable or exercisable for shares of
capital stock or voting securities of the Company or its 

 

9

 

Significant
Subsidiaries; (iii) option or other right to acquire from the Company or
its Subsidiaries, or obligation of the Company or its Subsidiaries to issue,
any shares of capital stock, voting securities or security convertible into or
exercisable or exchangeable for shares of capital stock or voting securities of
the Company or its Significant Subsidiaries, as the case may be; or
(iv) equity equivalent interest in the ownership or earnings of the
Company or its Significant Subsidiaries or other similar right, in each case to
which the Company or a Significant Subsidiary is a party (the items in clauses
(i) through (iv) collectively, “Equity Securities”).  Other than as set forth on Section 3.4
of the Company Disclosure Letter or as contemplated by this Agreement, or
pursuant to Contracts entered into by the Company after the date hereof and
prior to the Closing that are otherwise not inconsistent with any Purchaser’s
rights hereunder and with respect to the transactions contemplated hereby, and
do not confer on any other Person rights that are superior to those received by
any Purchaser hereunder or pursuant to the transactions contemplated hereby
other than rights and terms that are customarily granted to holders of any such
Equity Securities so issued and not customarily granted in transactions such as
the transactions contemplated hereby, there is no outstanding obligation of the
Company or its Subsidiaries to repurchase, redeem or otherwise acquire any
Equity Security.  Other than as set forth
on Section 3.4 of the Company Disclosure Letter or as contemplated
by this Agreement, or pursuant to Contracts entered into by the Company in
connection with the issuance of Equity Securities after the date hereof and
prior to the Closing that are otherwise not inconsistent with any Purchaser’s
rights hereunder and with respect to the transactions contemplated hereby, and
do not confer on any other Person rights that are superior to those received by
any Purchaser hereunder or pursuant to the transactions contemplated hereby
other than rights and terms that are customarily granted to holders of any such
Equity Securities so issued and not customarily granted in transactions such as
the transactions contemplated hereby, there is no stockholder agreement, voting
trust or other agreement or understanding to which the Company is a party or by
which the Company is bound relating to the voting, purchase, transfer or
registration of any shares of capital stock of the Company or preemptive rights
with respect thereto.  Section 3.4  of the Company Disclosure Letter sets forth a
complete and accurate list of the outstanding Equity Securities of the Company
as of the Measurement Date, including the applicable conversion rates and
exercise prices (or, in the case of options to acquire Common Stock, the
weighted average exercise price) relating to the conversion or exercise of such
Equity Securities into or for Common Stock.

 

SECTION 3.5 
Issuance.

 

(a)           Subject
to the authorization of the Bankruptcy Court, which shall be contained in entry
of the Confirmation Order, and the expiration or waiver by the Bankruptcy Court
of the 14-day period set forth in Bankruptcy Rule 3020(e) following
entry of the Confirmation Order, the issuance of the Shares and the New
Warrants has been duly and validly authorized. 
Subject to the entry of the Approval Order and assuming the accuracy of
the representations of such Purchaser contained in Exhibit D, the
issuance of the Warrants is duly and validly authorized.  When the Shares are issued and delivered in
accordance with the terms of this Agreement against payment therefor, the
Shares shall be duly and validly issued, fully paid and non-assessable and free
and clear of all taxes, liens, pre-emptive rights, rights of first refusal and
subscription rights, other than rights and restrictions under this Agreement,
the applicable Non-Control Agreement, if any, and applicable state and federal
securities Laws.  When the Warrants and
the New Warrants are issued and delivered in accordance with the terms of this
Agreement, the Warrants 

 

10

 

and
New Warrants shall be duly and validly issued and free and clear of all taxes,
liens, pre-emptive rights, rights of first refusal and subscription rights,
other than rights and restrictions under this Agreement, the terms of the
Warrants and New Warrants and under applicable state and federal securities
Laws.  When the shares of Common Stock
issuable upon the exercise of the Warrants and the shares of New Common Stock
issuable upon the exercise of the New Warrants are issued and delivered against
payment therefor, the shares of Common Stock and New Common Stock, as
applicable, shall be duly and validly issued, fully paid and non-assessable and
free and clear of all taxes, liens, pre-emptive rights, rights of first refusal
and subscription rights, other than rights and restrictions under this
Agreement, the applicable Non-Control Agreement, if any, and applicable state
and federal securities Laws.

 

(b)           Subject
to the authorization of the Bankruptcy Court, which shall be contained in the
entry of the Confirmation Order, and the expiration or waiver by the Bankruptcy
Court of the 14-day period set forth in Bankruptcy
Rule 3020(e) following entry of the Confirmation Order, when the GGO
Shares and the GGO Warrants are issued, the GGO Shares and GGO Warrants shall
be duly and validly authorized, duly and validly issued, fully paid and
non-assessable and free and clear of all taxes, liens, pre-emptive rights,
rights of first refusal and subscription rights, other than rights and
restrictions under this Agreement and under applicable state and federal
securities Laws.  When the shares of GGO
Common Stock issuable upon the exercise of the GGO Warrants are issued and
delivered against payment therefor, the shares of GGO Common Stock shall be
duly and validly issued, fully paid and non-assessable and free and clear of
all taxes, liens, pre-emptive rights, rights of first refusal and subscription
rights, other than rights and restrictions under this Agreement and under
applicable state and federal securities Laws.

 

SECTION 3.6 
No Conflict.

 

(a)           Subject
to (i) the receipt of the consents set forth on Section 3.6 of
the Company Disclosure Letter, (ii) such authorization as is required by
the Bankruptcy Court or the Bankruptcy Code, which shall be contained in the
entry of the Confirmation Order, and the expiration, or waiver by the
Bankruptcy Court, of the 14-day period set forth in Bankruptcy
Rule 3020(e) following entry of the Confirmation Order,
(iii) any provisions of the Bankruptcy Code that override, eliminate or
abrogate such consents or as may be ordered by the Bankruptcy Court and
(iv) the ability to employ the alternatives contemplated by Section 2.1
of the Agreement, the execution and delivery (or, with respect to the Plan, the
filing) by the Company of this Agreement and the Plan, the performance by the
Company of its respective obligations under this Agreement and compliance by
the Company with all of the provisions hereof and thereof and the consummation
of the transactions contemplated herein and therein, (x) shall not
conflict with, or result in a breach or violation of, any of the terms or
provisions of, or constitute a default under, or result in the acceleration of,
or the creation of any lien under, or give rise to any termination right under,
any Contract to which the Company or any of the Company’s Subsidiaries is a
party or by which any of their material assets are subject or encumbered,
(y) shall not result in any violation or breach of any terms, conditions
or provisions of the certificate of incorporation or bylaws of the Company, or
the comparable organizational documents of the Company’s Subsidiaries, and
(z) shall not conflict with or result in any violation or breach of, or
any termination or impairment of any rights under, any statute or any license,
authorization, injunction, judgment, order, decree, rule or regulation of
any court or governmental agency or body having jurisdiction over the Company
or any of its Subsidiaries or any of their respective 

 

11

 

properties
or assets, except, in the case of each of clauses (x) and (z) above,
for any such conflict, breach, acceleration, lien, termination, impairment,
failure to comply, default or violation that would not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect (except
with respect to (i) the issuance of the Warrants and (ii) the
provisions of the Approval Order).

 

(b)           Subject
to the entry of the Approval Order, (i) the issuance of the Warrants
(assuming the accuracy of the representations of each Purchaser contained in Exhibit D)
and (ii) the performance by the Company of its respective obligations
under the Approval Order and compliance by the Company with all of the provisions
thereof (x) shall not conflict with, or result in a breach or violation
of, any of the terms or provisions of, or constitute a default under, or result
in the acceleration of, or the creation of any lien under, or give rise to any
termination right under, any Contract, (y) shall not result in any
violation or breach of any terms, conditions or provisions of the certificate
of incorporation or bylaws of the Company, or the comparable organizational
documents of the Company’s Subsidiaries, and (z) shall not conflict with
or result in any violation or breach of, or any termination or impairment of
any rights under, any statute or any license, authorization, injunction,
judgment, order, decree, rule or regulation of any court or governmental
agency or body having jurisdiction over the Company or any of its Subsidiaries
or any of their respective properties or assets, except, in the case of each of
clauses (x) and (z) above, for any such conflict, breach,
acceleration, lien, termination, impairment, failure to comply, default or
violation that would not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect.

 

SECTION 3.7 
Consents and Approvals.

 

(a)           No
consent, approval, authorization, order, registration or qualification of or
with any Governmental Entity having jurisdiction over the Company or any of its
Subsidiaries or any of their respective properties is required for
(i) (1) the issuance and delivery of the New Warrants, (2) the
issuance, sale and delivery of Shares, (3) the issuance and delivery of
the Warrants, (4) the issuance, sale and delivery of the GGO Shares,
(5) the issuance and delivery of the GGO Warrants, (6) the issuance
of New Common Stock upon exercise of the New Warrants, (7) the issuance of
GGO Common Stock upon exercise of the GGO Warrants and (8) the issuance of
Common Stock upon exercise of the Warrants and (ii) the execution and
delivery by the Company of this Agreement or the Plan and performance of and
compliance by the Company with all of the provisions hereof and thereof and the
consummation of the transactions contemplated herein and therein, except
(A) such authorization as is required by the Bankruptcy Court or the
Bankruptcy Code, which shall be contained in the entry of the relevant Court
Order, and the expiration, or waiver by the Bankruptcy Court, of the 14-day
period set forth in Bankruptcy Rule 3020(e) following entry of the
Confirmation Order, as applicable (except with respect to (i) the issuance
of the Warrants and (ii) the provisions of the Approval Order),
(B) filings required under, and compliance with (other than shareholder
approval requirements in respect of the issuance of the Warrants), the
applicable requirements of the Exchange Act and the rules and regulations
promulgated thereunder, the Securities Act and the rules and regulations
promulgated thereunder, and the rules of the New York Stock Exchange, and
(C) such other consents, approvals, authorizations, orders, registrations
or qualifications that, if not obtained, made or given, would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect.

 

12

 

(b)           No
consent, approval, authorization, order, registration or qualification of or
with any Governmental Entity having jurisdiction over the Company or any of its
Subsidiaries or any of their respective properties is required for (1) the
issuance and delivery of the Warrants and (2) the performance of and
compliance by the Company with all of the provisions of the Approval Order
except (A) the entry of the Approval Order, (B) filings required
under, and compliance with (other than shareholder approval requirements in
respect of the issuance of the Warrants), the applicable requirements of the Exchange
Act and the rules and regulations promulgated thereunder, the Securities
Act and the rules and regulations promulgated thereunder, and the
rules of the New York Stock Exchange, and (C) such other consents,
approvals, authorizations, orders, registrations or qualifications that, if not
obtained, made or given, would not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect.

 

SECTION 3.8 
Company Reports.

 

(a)           The
Company has filed with or otherwise furnished to the Securities and Exchange
Commission (the “SEC”) all material forms, reports, schedules,
statements and other documents required to be filed or furnished by it under
the United States Securities Act of 1933, as amended (the “Securities Act”)
or the Exchange Act since December 31, 2007 (such documents, as
supplemented or amended since the time of filing, and together with all
information incorporated by reference therein, the “Company SEC Reports”).  No Subsidiary of the Company is required to
file with the SEC any such forms, reports, schedules, statements or other
documents pursuant to Section 13 or 15 of the Exchange Act.  As of their respective effective dates (in
the case of Company SEC Reports that are registration statements filed pursuant
to the requirements of the Securities Act) and as of their respective filing
dates (in the case of all other Company SEC Reports), except as and to the
extent modified, amended, restated, corrected, updated or superseded by any
subsequent Company SEC Report filed and publicly available prior to the date of
this Agreement, the Company SEC Reports (i) complied in all material
respects with the applicable requirements of the Securities Act and the
Exchange Act, and the rules and regulations of the SEC promulgated thereunder
applicable to such Company SEC Reports, and (ii) did not contain any
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.

 

(b)           The
Company maintains a system of “internal controls over financial reporting”
(as defined in Rules 13a-15(f) and 15a-15(f) under the Exchange
Act) that provides reasonable assurance regarding the reliability of the
Company’s financial reporting and the preparation of the Company’s financial
statements for external purposes in accordance with GAAP and that includes
policies and procedures that (i) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company, (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with GAAP, and that receipts and
expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company, and
(iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the Company’s
assets that could have a material effect on the Company’s financial statements.

 

13

 

(c)           The
Company maintains a system of “disclosure controls and procedures” (as
defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act)
that is reasonably designed to ensure that information required to be disclosed
by the Company in the reports that it files or submits under the Exchange Act
is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the SEC, and that information relating
to the Company is accumulated and communicated to the Company’s management as
appropriate to allow timely decisions regarding required disclosure and to make
the certifications of the Chief Executive Officer and Chief Financial Officer
of the Company required under the Exchange Act with respect to such reports.

 

(d)           Since
December 31, 2008, the Company has not received any oral or written
notification of a “material weakness” in the Company’s internal controls
over financial reporting.  The term “material
weakness” shall have the meaning assigned to it in the Statements of
Auditing Standards 112 and 115, as in effect on the date hereof.

 

(e)           Except
as and to the extent modified, amended, restated, corrected, updated or
superseded by any subsequent Company SEC Report filed and publicly available
prior to the date of this Agreement, the audited consolidated financial
statements and the unaudited consolidated interim financial statements
(including any related notes) included in the Company SEC Reports fairly
present in all material respects, the consolidated financial position of the
Company and its consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and their consolidated cash flows for
the periods set forth therein (subject, in the case of financial statements for
quarterly periods, to normal year-end adjustments) and were prepared in
conformity with GAAP consistently applied during the periods involved (except
as otherwise disclosed in the notes thereto).

 

SECTION 3.9 
No Undisclosed Liabilities. 
None of the Company or its Subsidiaries has any material liabilities
(whether absolute, accrued, contingent or otherwise) required to be reflected
or reserved against on a consolidated balance sheet of the Company prepared in
accordance with GAAP, except for liabilities (i) reflected or reserved
against or provided for in the Company’s consolidated balance sheet as of
December 31, 2009 or disclosed in the notes thereto, included in the
Company’s Annual Report on Form 10-K for the year ended December 31,
2009, (ii) incurred in the ordinary course of business consistent with
past practice since the date of such balance sheet, (iii) for fees and
expenses incurred in connection with the Bankruptcy Cases, which have been
estimated and included in the Admin/Priority Claims identified in the Plan
Summary Term Sheet; provided, however, that such amount is an
estimate and actual results may be higher or lower, (iv) incurred in the
ordinary course of performing this Agreement and certain other asset sales,
transfers and other actions permitted under this Agreement and (v) other
liabilities at Closing as contemplated by the Plan Summary Term Sheet.

 

SECTION 3.10 
No Material Adverse Effect. 
Since December 31, 2009, there has not occurred any event, fact or
circumstance that has had or would reasonably be expected to have,
individually, or in the aggregate, a Material Adverse Effect.

 

SECTION 3.11 
No Violation or Default: Licenses and Permits.  The Company and its Subsidiaries (a) are
in compliance with all Laws, statutes, ordinances, rules, regulations, orders,
judgments and decrees of any court or governmental agency or body having
jurisdiction over the 

 

14

 

Company
or any of its Subsidiaries or any of their respective properties, and
(b) has not received written notice of any alleged material violation of
any of the foregoing except, in the case of each of clauses (a) and
(b) above, for any such failure to comply, default or violation that would
not, individually or in the aggregate, be reasonably expected to have a
Material Adverse Effect or as may be the result of the Company’s or any of its
Subsidiaries’ Chapter 11 filing or status as a debtor-in-possession under
Chapter 11.  Subject to the restrictions
that result from the Company’s or any of its Subsidiaries’ status as a
debtor-in-possession under Chapter 11 (including that in certain instances the
Company’s or such Subsidiary’s conduct of its business requires Bankruptcy
Court approval), each of the Company and its Subsidiaries holds all material
licenses, franchises, permits, certificates of occupancy, consents,
registrations, certificates and other governmental and regulatory permits,
authorizations and approvals required for the operation of the business as
currently conducted by it and for the ownership, lease or operation of its
material assets except, in each case, where the failure to possess or make the
same would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

 

SECTION 3.12 
Legal Proceedings.  There
are no legal, governmental or regulatory investigations, actions, suits or
proceedings pending or, to the Knowledge of the Company, threatened against the
Company or any of its Subsidiaries which, individually, if determined adversely
to the Company or any of its Subsidiaries, would reasonably be expected to have
a Material Adverse Effect.

 

SECTION 3.13 
Investment Company Act. 
The Company is not, and, after giving effect to the offering and sale of
the Shares and the application of the proceeds thereof, shall not be required
to register as an “investment company” or an entity “controlled”
by an “investment company” within the meaning of the Investment Company
Act of 1940, as amended, and the rules and regulations of the SEC
thereunder.  As of the Effective Date,
GGO, after giving effect to the offering and sale of the GGO Shares and the
application of the proceeds thereof, shall not be required to register as an “investment
company” or an entity “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, and the
rules and regulations of the SEC thereunder.

 

SECTION 3.14 
Compliance With Environmental Laws.  Except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect,
(i) each of the Company and its Subsidiaries are and have been in
compliance with and each of the Company Properties are and have been maintained
in compliance with, any and all applicable federal, state, local and foreign Laws
relating to the protection of the environment or natural resources, human
health and safety as such relates to the environment, or the presence,
handling, or release of Hazardous Materials (collectively, “Environmental
Laws”), which compliance includes obtaining, maintaining and complying with
all permits, licenses or other approvals required under Environmental Laws to
conduct operations as presently conducted, and no action is pending or, to the
Knowledge of the Company, threatened that seeks to repeal, modify, amend,
revoke, limit, deny renewal of, or otherwise appeal or challenge any such
permits, licenses or other approvals, (ii) none of the Company or its
Subsidiaries have received any written notice of, and none of the Company
Properties have been the subject of any written notice received by the Company
or any of its Subsidiaries of, any actual or potential liability or violation
for the presence, exposure to, investigation, remediation, arrangement for
disposal, or release of any material classified, characterized or regulated as
hazardous, toxic, pollutants, or contaminants 

 

15

 

under
Environmental Laws, including petroleum products or byproducts, radioactive
materials, asbestos-containing materials, radon, lead-containing materials,
polychlorinated biphenyls, mold, and hazardous building materials
(collectively, “Hazardous Materials”), (iii) none of the Company
and its Subsidiaries are a party to or the subject of any pending, or, to the
Knowledge of the Company, threatened, legal proceeding alleging any liability,
responsibility, or violation under any Environmental Laws with respect to their
past or present facilities or their respective operations, (iv) none of
the Company and its Subsidiaries have released Hazardous Materials on any real
property in a manner that would reasonably be expected to result in an
environmental claim or liability against the Company or any of its Subsidiaries
or Affiliates, (v) none of the Company Properties is the subject of any
pending, or, to the Knowledge of the Company, threatened, legal proceeding
alleging any liability, responsibility, or violation under any Environmental
Laws, and (vi) to the Knowledge of the Company, there has been no release
of Hazardous Materials on, from, under, or at any of the Company Properties
that would reasonably be expected to result in an environmental claim or
liability against the Company or any of its Subsidiaries or Affiliates.

 

SECTION 3.15 
Company Benefit Plans.

 

(a)           Except
as would not, individually or in the aggregate, have a Material Adverse Effect,
each Company Benefit Plan is in compliance in design and operation in all
material respects with all applicable provisions of ERISA and the U.S. Internal
Revenue Code of 1986, as amended (the “Code”) and each Company Benefit
Plan that is intended to be qualified under Section 401(a) of the
Code has received a favorable determination letter from the Internal Revenue
Service with respect to its qualified status under Section 401(a) of
the Code and its related trust’s exempt status under
Section 501(a) of the Code and the Company is not aware of any
circumstances likely to result in the loss of the qualification of any such
plan under Section 401(a) of the Code.

 

(b)           Except
as would not, individually or in the aggregate, have a Material Adverse Effect,
with respect to each Company Benefit Plan that is subject to Title IV or
Section 302 of ERISA or Section 412 or 4971 of the Code:  (A) no Company Benefit Plan has failed
to satisfy the minimum funding standard (within the meaning of Sections 412 and
430 of the Code or Section 302 of ERISA) applicable to such Company
Benefit Plan, whether or not waived and no application for a waiver of the
minimum funding standard with respect to any Company Benefit Plan has been
submitted; (B) no reportable event within the meaning of
Section 4043(c) of ERISA for which the 30-day notice requirement has
not been waived has occurred (other than in connection with the Bankruptcy
Cases); (C) no liability (other than for premiums to the Pension Benefit
Guaranty Corporation (the “PBGC”)) under Title IV of ERISA has been
or is expected to be incurred by the Company or any entity that is required to
be aggregated with the Company pursuant to Section 414 of the Code (an “ERISA
Affiliate”); (D) the PBGC has not instituted proceedings to terminate
any such plan or made any inquiry which would reasonably be expected to lead to
termination of any such plan, and, no condition exists that presents a risk
that such proceedings will be instituted or which would constitute grounds
under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any such plan; and (E) no Company Benefit Plan
is, or is expected to be, in “at-risk” status (as defined in
Section 303(i)(4) of ERISA or Section 430(i)(4) of the
Code).

 

16

 

(c)           Except
as would not, individually or in the aggregate, have a Material Adverse Effect,
with respect to each Company Benefit Plan maintained primarily for the benefit
of current or former employees, officers or directors employed, or otherwise
engaged, outside the United States (each a “Foreign Plan”), excluding
any Foreign Plans that are statutorily required, government sponsored or not otherwise
sponsored, maintained or controlled by the Company or any of its Significant
Subsidiaries (“Excluded Non-US Plans”): (A) (1) all employer
and employee contributions required by Law or by the terms of the Foreign Plan
have been made, and all liabilities of the Company and its Significant
Subsidiaries have been satisfied, or, in each case accrued, by the Company and
its Significant Subsidiaries in accordance with generally accepted accounting
principles, and (2) the Company and its Significant Subsidiaries are in
compliance with all requirements of applicable Law and the terms of such
Foreign Plan; (B) as of the Effective Date, the fair market value of the
assets of each funded Foreign Plan, or the book reserve established for each
Foreign Plan, together with any accrued contributions, is sufficient to procure
or provide for the accrued benefit obligations with respect to all current and
former participants in such Foreign Plan determined on an ongoing basis (rather
than on a plan termination basis) according to the actuarial assumptions and
valuations used to account for such obligations as of the Effective Date in
accordance with applicable generally accepted accounting principles; and
(C) the Foreign Plan has been registered as required and has been maintained
in good standing with applicable regulatory authorities.

 

SECTION 3.16 
Labor and Employment Matters. 
(i) Neither the Company nor any of its Significant Subsidiaries is
a party to or bound by any collective bargaining agreement or any labor union
contract, nor are any employees of the Company or any of its Significant
Subsidiaries represented by a works council or a labor organization (other than
any industry-wide or statutorily mandated agreement in non-U.S. jurisdictions);
(ii) to the Knowledge of the Company, as of the date hereof, there are no
activities or proceedings by any labor union or labor organization to organize
any employees of the Company or any of its Significant Subsidiaries or to
compel the Company or any of its Significant Subsidiaries to bargain with any
labor union or labor organization; and (iii), except as would not, individually
or in the aggregate, have a Material Adverse Effect, there is no pending or, to
the Knowledge of the Company, threatened material labor strike, lock-out,
walkout, work stoppage, slowdown, demonstration, leafleting, picketing,
boycott, work-to-rule campaign, sit-in, sick-out, or similar form of
organized labor disruption.

 

SECTION 3.17 
Insurance.  The Company
maintains for itself and its Subsidiaries insurance policies in those amounts
and covering those risks, as in its judgment, are reasonable for the business
and assets of the Company and its Subsidiaries.

 

SECTION 3.18 
No Unlawful Payments.  No
action is pending or, to the Knowledge of the Company, is threatened against
the Company or any of its Subsidiaries or Affiliates, or any of their
respective directors, officers, or employees resulting from any (a) use of
corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity, (b) direct or indirect
unlawful payment to any foreign or domestic government official or employee
from corporate funds, (c) violations of any provision of the Foreign
Corrupt Practices Act of 1977 or any other applicable local anti-bribery or
anti-corruption Laws in any relevant jurisdictions or (d) other unlawful
payment, except in any such case, as would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

 

17

 

SECTION 3.19 
No Broker’s Fees.  Other
than pursuant to agreements (including amendments thereto) by and between the
Company and each of UBS Securities LLC and Miller Buckfire & Co., LLC,
or otherwise disclosed to each Purchaser prior to the date hereof and which
fees and expenses would be included in the definition of “Permitted Claims”,
none of the Company or any of its Subsidiaries is a party to any contract,
agreement or understanding with any person (other than this Agreement) that
would give rise to a valid claim against the Company or any of its Subsidiaries
for an investment banking fee, finder’s fee or like payment in respect of the
sale of the Shares contemplated by this Agreement.  None of the Company or any of its
Subsidiaries is a party to any contract, agreement or understanding with any
Person that would give rise to a valid claim against any Purchaser for a
brokerage commission, finder’s fee, investment banking fee or like payment in
connection with the transactions contemplated by this Agreement.

 

SECTION 3.20 
Real and Personal Property.

 

(a)           Section 3.20(a) of
the Company Disclosure Letter sets forth a true, correct and complete list in
all material respects of each material real property asset owned or leased (as
lessee), directly or indirectly, in whole or in part, by the Company and/or any
of its Subsidiaries (other than Identified Assets) (each such property that is
not a Non-Controlling Property and has a fair market value (in the reasonable
determination of the Company) in excess of $10,000,000 is individually referred
to herein as “Company Property” and collectively referred to herein as
the “Company Properties”).  All
Company Properties, Non-Controlling Properties and the Identified Assets are
reflected in accordance with the applicable rules and regulations of the
SEC in the Annual Report in Form 10-K as of, and for the year ended,
December 31, 2009 (the “Most Recent Statement”).

 

(b)           Except
(i) for such breach of this Section 3.20(b) as may be
caused fully or substantially by the third party member or partner in any Joint
Venture, without the Knowledge or consent of the Company or any of its
Subsidiaries or (ii) as would not individually or in the aggregate be
reasonably expected to have a Material Adverse Effect, the Company or one of
its Subsidiaries owns good and valid fee simple title or valid and enforceable
leasehold interests (except with respect to the Company’s right to reject any
such ground lease as part of a Bankruptcy plan of reorganization for the
remaining Debtor entities and subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar Laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of
equity, including principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at Law or
in equity)), as applicable, to each of the Company Properties, in each case,
free and clear of liens, mortgages or deeds of trust, claims against title,
charges that are liens or other encumbrances on title, rights of way,
restrictive covenants, declarations or reservations of an interest in title
(collectively, “Encumbrances”), except for the following (collectively,
the “Permitted Title Exceptions”): (i) Encumbrances relating to the
DIP Loan and to debt obligations reflected in the Company’s financial
statements and the notes thereto (including with respect to debt obligations
which are not consolidated) or otherwise disclosed to each Purchaser in Section 3.20(g)(i) of
the Company Disclosure Letter, (ii) Encumbrances that result from any
statutory or other liens for Taxes or assessments that are not yet due or
delinquent or the validity of which is being contested in good faith by
appropriate proceedings and for which a sufficient and appropriate reserve has
been set aside for the full 

 

18

 

payment
thereof, (iii) any contracts, or other occupancy agreements to third parties
for the occupation or use of portions of the Company Properties by such third
parties in the ordinary course of the business of the Company or its
Subsidiaries, (iv) Encumbrances imposed or promulgated by Law or any
Governmental Entity, including zoning, entitlement and other land use and
environmental regulations, (v) Encumbrances disclosed on existing title
policies and current title insurance commitments or surveys made available to
each Purchaser, (vi) Encumbrances on the landlord’s fee interest at any
Company Property where the Company or its Subsidiary is the tenant under any
ground lease, provided that, except as disclosed to each Purchaser in Section 3.20(b)(ii) of
the Company Disclosure Letter, neither the Company nor any of its Subsidiaries have
received a notice indicating the intention of the landlord under such ground
lease, or of any other Person, to (1) exercise a right to terminate such
ground lease, evict the lessee or otherwise collect the sub-rents thereunder,
or (2) take any other action that would be reasonably likely to result in
a termination of such ground lease, (vii) any cashiers’, landlords’,
workers’, mechanics’, carriers’, workmen’s, repairmen’s and materialmen’s liens
and other similar liens (1) incurred in the ordinary course of business
which (A) are being challenged in good faith by appropriate proceedings
and for which a sufficient and appropriate reserve has been set aside for the
full payment thereof or (B) have been otherwise fully bonded and
discharged of record or for which a sufficient and appropriate reserve has been
set aside for the full payment thereof or (2) disclosed on Section 3.20(b)(i) of
the Company Disclosure Letter and (viii) any other easements,
rights-of-way, restrictions (including zoning restrictions), covenants,
encroachments, protrusions and other similar charges or encumbrances, and title
limitations or title defects, if any, that (I) are customary for office,
industrial, master planned communities and retail properties or
(II) individually or in the aggregate, would not be reasonably expected to
have a Material Adverse Effect.  Other
than as set forth on Section 3.20(b)(ii) of the Company
Disclosure Letter, neither the Company nor any of its Subsidiaries has received
a written notice of a material default, beyond any applicable grace and cure
periods, of or under any Permitted Title Exceptions, except (w) as may
have been caused fully or substantially by the third party member or partner in
any Joint Venture, without the Knowledge or consent of the Company or any of
its Subsidiaries (x) as a result of the filing of the Bankruptcy Cases,
(y) where the Permitted Title Exceptions are in and of themselves evidence
of default (such as mechanics’ liens and recorded notices of default) or (z) as
would not, individually or in the aggregate, be reasonably expected to have a
Material Adverse Effect; provided, however, that where the
Company has otherwise represented and warranted to each Purchaser hereunder
(including as set forth on the Company Disclosure Letter pursuant to such
representations and warranties) with respect to the Company’s Knowledge of, the
Company’s receipt of notice of or the existence of a default in connection with
a particular category of Permitted Title Exceptions, such categories of Permitted
Title Exceptions shall not be included in the representation set forth in this
sentence (by way of illustration, but not exclusion, the representations set
forth in Section 3.20(f) with respect to defaults under
Material Leases shall be deemed to address the Company’s representations and
warranties with respect to the entire category of Permitted Title Exceptions
detailed in clause (iii) above).

 

(c)           To
the extent available, the Company and its Subsidiaries have made commercially
reasonable efforts to make available or will use commercially reasonable
efforts to make available upon request to each Purchaser those policies of
title insurance that the Company or its Subsidiaries have obtained in the last
six months.

 

19

 

(d)           With
respect to each Company Ground Lease Property, except as set forth on Section 3.20(d) of
the Company Disclosure Letter and except as may have been caused by, or
disclosed in the filing of the Bankruptcy Cases, as of the date hereof, to the
Company’s Knowledge, neither the Company nor any of its Subsidiaries has
received notice of material defaults (including, without limitation, payment
defaults, but limited to those circumstances where such default may grant the
landlord under such ground lease the right to terminate such ground lease,
evict the lessee or otherwise collect the sub-rents thereunder) at such Company
Ground Lease Property beyond any applicable grace and cure periods, except
(x) as would not, individually or in the aggregate, be reasonably expected
to have a Material Adverse Effect, (y) as may be caused fully or
substantially by the third party member or partner in any Joint Venture,
without the Knowledge or consent of the Company or any of its Subsidiaries and
(z) with respect to any Company Ground Lease Property which is leased by a
Subsidiary of the Company which has consummated a plan of reorganization in the
Bankruptcy Cases, all such material defaults at such Company Ground Lease
Property which existed prior to the effective date of such Person’s plan of
reorganization have been or will be cured in accordance with such plan.  As used herein the term “Company Ground
Lease Property” shall mean any Company Property having a fair market value
(in the reasonable determination of the Company) in excess of $25,000,000 which
is leased by a Subsidiary of the Company as tenant pursuant to a ground
lease.  With respect to the defaults
referenced in clause (z) above, the Bankruptcy Court approved the Debtors’
assumption of the applicable ground leases and the fixed cure amounts for such
defaults which predated assumption; provided, however, nothing
contained herein precludes any Person from raising issues in the future with
respect to defaults that may have predated such assumption.

 

(e)           Except
as set forth on Section 3.20(e) of the Company Disclosure
Letter, neither the Company nor any of its Subsidiaries is a party to any
agreement relating to the property management (but not including any leasing,
development, construction or brokerage agreements) of any of the Company
Properties by a party other than Company or any wholly owned Company
Subsidiaries, except (i) management agreements that may be terminated
without cause or payment of a termination fee upon no more than 60 days notice
or (ii) as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

 

(f)            Except
as set forth on Section 3.20(f) of the Company Disclosure
Letter, to the Company’s Knowledge, as of February 15, 2010, (i) each
Material Lease is in full force and effect, (ii) no tenant is in arrears
in the payment of rent, additional rent or any other material charges due under
any Material Lease, and no tenant is materially in default in the performance
of any other obligations under any Material Lease, (iii) no bankruptcy or
insolvency proceeding has been commenced (and is continuing) by or against any
tenant under any Material Lease, and (iv) neither the Company nor any of
its Subsidiaries has received a written notice from a current tenant under any
Material Lease exercising a right to terminate or otherwise cancel its Material
Lease (y) as a result of or in connection with the termination or
cancellation of any other lease, sublease, license or occupancy agreement for space
at any Company Property (each, a “Company Property Lease”), or
(z) as a result of or in connection with any other tenant that occupies,
or had previously occupied, another Company Property Lease, allowing, or having
had allowed, all or any portion of the premises leased pursuant to such other
Company Property Lease to “go dark” or otherwise be abandoned or
vacated; except, (A) in the case of each of clauses (i),
(ii) (iii) and (iv) above, as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect,
(B) as a result of the filing of the Bankruptcy Cases 

 

20

 

or
in connection with any Bankruptcy Court approved process and (C) as may
have been caused fully or substantially by the third party member or partner in
any Joint Venture, without the Knowledge or consent of the Company or its
Subsidiaries.  “Material Lease”
means for any Company Property any lease in which the Company or its
Subsidiaries is the landlord, and all amendments, modifications, supplements,
renewals, exhibits, schedules, extensions and guarantees related thereto,
(1) to an “anchor tenant” occupying at least 80,000 square feet
with respect to such Company Property or (2) that is one of the five
(5) largest leases, in terms of gross annual minimum rent, with respect to
a Company Property that has an annual net operating income, as determined in
accordance with GAAP (provided, however, that for purposes of
such calculation, the following were reflected as expenses: (a) ground
rent payments to a third party and (b) an assumed management fee equal to
3% of base minimum and percentage rent) with respect to the trailing twelve
(12) calendar month period, equal to at least $7,500,000.00.  For purposes of Section 7.1(c),
(y) the representations and warranties made in Section 3.20(f)(i),
(iii) and (iv), disregarding all qualifications and
exceptions contained therein relating to “materiality” or “Material
Adverse Effect”, shall be shall be true and correct at and as of the
Closing Date as if made at and as of the Closing Date, except for such failures
to be true and correct that, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect and (z) the
representation and warranties contained in Section 3.20(f)(ii),
disregarding all qualifications and exceptions contained therein relating to “materiality”
or “Material Adverse Effect”, shall be true and correct (A) at and
as of the last day of the calendar month that is two (2) calendar months
prior to the calendar month in which the Closing Date occurs as if made at and
as of such date, if the Closing Date occurs on or prior to the fifteenth (15th)
day of a calendar month, or (B) at and as of the fifteenth (15th) day of
the calendar month that is one (1) calendar month prior to the calendar
month in which the Closing Date occurs as if made at and as of such date, if
the Closing Date occurs on or after the sixteenth (16th) day of a calendar
month, except for such failures to be true and correct that, individually or in
the aggregate, would not reasonably be expected to have a Material Adverse
Effect.

 

(g)           With
respect to each Company Property:

 

(i)                                     As of the date
listed thereunder, Section 3.20(g) of the Company Disclosure
Letter sets forth a true, correct and complete list in all material respects of
(i) all loans (other than the DIP Loan) and other indebtedness secured by
a mortgage, deed of trust, deed to secure debt or indemnity deed of trust in
such Company Property (each, a “Company Mortgage Loan”), (ii) the
outstanding principal balance of each such Company Mortgage Loan,
(iii) the rate of interest applicable to such Company Mortgage Loan and
(iv) the maturity date of such Company Mortgage Loan;

 

(ii)                                  Except as set
forth in Section 3.20(g) of the Company Disclosure Letter,
neither the Company nor any of its Subsidiaries have received a written notice
of default (beyond any applicable grace or cure periods) in the
(y) payment of interest, principal or other material amount due to the
lender under any Company Mortgage Loan, whether as the primary obligor or as a
guarantor thereof or (z) performance of any other material obligations
under any Company Mortgage Loan, except (i) with respect to (y) and
(z) 

 

21

 

above, as a result of the filing of the Bankruptcy
Cases, or as is prohibited, stayed or otherwise suspended as a result of the
Company’s or any Subsidiary’s Chapter 11 filing or status as a
debtor-in-possession under Chapter 11, and (ii) with respect solely to
(z) above, which would not individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect; and

 

(iii)                               For purposes of
Section 7.1(c) the representations and warranties made in Section 3.20(g)(i),
disregarding all qualifications and exceptions contained therein relating to “materiality”
or “Material Adverse Effect”, shall be true and correct at and as of the
Closing Date as if made at and as of the Closing Date, except for (A) such
inaccuracies caused by sales, purchases, transfers of assets, refinancing or
other actions effected in accordance with, subject to the limitations contained
in, and not otherwise prohibited by, the terms and conditions in this
Agreement, including, without limitation, in Article VII,
(B) amortization payments made pursuant to any applicable Company Mortgage
Loans and (C) such failures to be true and correct that, individually or
in the aggregate, would not reasonably be expected to have a Material Adverse
Effect.

 

(h)           To
the Knowledge of the Company, (i) except as set forth on Section 3.20(h) of
the Company Disclosure Letter, neither the Company nor any of its Subsidiaries
has received a written notice exercising an option, “buy-sell” right or
other similar right to purchase a Company Property or any material portion
thereof which has not previously closed, except as would not, individually or
in the aggregate, reasonably be expected to have a material adverse effect with
respect to such Company Property and (ii) no Company Property is subject
to a purchase and sale agreement or any similar legally binding agreement to
purchase such Company Property or any material portion thereof (other than
(x) with respect to condominium purchase and sale agreements and purchase
and sale and early occupancy agreements or other similar agreements for the
sale of condominium units at the Natick Nouvelle, (y) with respect to
builder lot purchase agreements and
other similar agreements for the sale of vacant lots of land to builders at
Bridgeland and (z) as set forth in (i) above) which has not
previously closed.

 

(i)            The
Company has conducted due inquiry with respect to the representations and
warranties made in Section 3.20(d), Section 3.20(f) and
Section 3.20(h).

 

SECTION 3.21 
Tax Matters.  Except as
disclosed on Section 3.21(a) of the Company Disclosure Letter:

 

(a)           Except
in cases where the failure of any of the following to be true would not result
in a Material Adverse Effect: (i) the Company and each of its Significant
Subsidiaries have filed all Tax Returns required to be filed by applicable Law
prior to the date hereof; (ii) all such Tax Returns were true, complete
and correct in all respects and filed on a timely basis (taking into account
any applicable extensions); (iii) the Company and each of its Significant
Subsidiaries have paid all amounts of Taxes that are due, claimed or assessed
by any taxing authority to be due for the periods covered by such Tax Returns,
other than any Taxes for which adequate reserves (“Adequate Reserves”)
have been established in accordance with GAAP or a 

 

22

 

claim
has been filed in the Bankruptcy Cases; and (iv) all adjustments of
federal U.S. Tax liability of the Company and its Significant Subsidiaries
resulting from completed audits or examinations have been reported to
appropriate state and local taxing authorities and all resulting Taxes payable
to state and local taxing authorities have been paid.  “Taxes” means any U.S. federal, state,
local, or foreign income, gross receipts, license, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Section 59A of the Code), customs duties, capital
stock, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, sales, use,
transfer, registration, value added, alternative or add-on minimum, estimated,
or other tax of any kind whatsoever, including any interest, penalty, or
addition thereto, whether disputed or not. 
“Tax Return” means any return, declaration, report, claim for
refund, or information return or statement relating to Taxes, including any
schedule or attachment thereto, and including any amendment thereof, including,
where permitted or required, combined or consolidated returns for any group of
entities that include the Company or any of its Significant Subsidiaries.

 

(b)           The
Company and each of its REIT Subsidiaries (x) for all taxable years
commencing with the taxable year ended December 31, 2005 through
December 31, 2009, has been subject to taxation as a real estate
investment trust within the meaning of Section 856 of the Code (a “REIT”)
and has satisfied all requirements to qualify as a REIT for such years;
(y) has operated since January 1, 2010 to the date hereof in a manner
consistent with the requirements for qualification and taxation as a REIT; and
(z) intends to continue to operate in such a manner as to qualify as a
REIT for the current taxable year.  None
of the transactions contemplated by this Agreement will prevent the Company or
any of its REIT Subsidiaries from so qualifying.  No Subsidiary of the Company other than a
REIT Subsidiary is a corporation for U.S. federal income tax purposes, other
than a corporation that qualifies as a “taxable REIT subsidiary” within
the meaning of Section 856(l) of the Code.  For the purposes of this Agreement, “REIT
Subsidiary” means each of GGP Ivanhoe, Inc., GGP Holding, Inc.,
GGP Holding II, Inc., Victoria Ward, Limited, GGP-Natick Trust and
GGP/Homart, Inc.

 

(c)           Each
Company Subsidiary other than its REIT Subsidiaries that is a partnership,
joint venture, or limited liability company and which has not elected to be a “taxable
REIT subsidiary” within the meaning of Section 856(l) of the Code
has been since its formation treated for U.S. federal income tax purposes as a
partnership or disregarded entity, as the case may be, and not as a corporation
or an association taxable as a corporation, except where failure to do so would
not have a Material Adverse Effect.

 

(d)           Except
where the failure to be true would not have a Material Adverse Effect, the
Company and each of its Significant Subsidiaries have (i) complied in all
respects with all applicable Laws, rules, and regulations relating to the
payment and withholding of Taxes (including withholding and reporting
requirements under sections 1441 through 1464, 3401 through 3406, 6041 and 6049
of the Code and similar provisions under any other Laws) and (ii) within
the time and in the manner prescribed by Law, withheld from employee wages and
paid to the proper Governmental Entities all amounts required to be withheld
and paid over.

 

(e)           Except
where the failure to be true would not have a Material Adverse Effect, no
audits or other administrative proceedings or court proceedings are presently
pending or to the Knowledge of the Company threatened with regard to any Taxes
or Tax Returns of the Company 

 

23

 

or
any of its Significant Subsidiaries, other than any audit or administrative
proceeding relating to Taxes for which a claim has been filed in a Debtor’s
Chapter 11 case or any other audit or administrative or court proceeding that
is not reasonably expected to result in a material Tax liability to the Company
or any of its Significant Subsidiaries.

 

(f)            The
Company has made available to each Purchaser complete and accurate copies of
all material Tax Returns requested by any Purchaser and filed by or on behalf
of the Company or any of its Significant Subsidiaries for all taxable years
ending on or prior to the Effective Date and for which the statute of
limitations has not expired.

 

(g)           There
are no Tax Protection Agreements except for those the breach of which would not
reasonably be expected to have a Material Adverse Effect.  Neither the Company nor any Significant
Subsidiary has any liability for Taxes of any Person under Treasury Regulation
Section 1.1502-6 (or any similar provision of any state, local or foreign
Law), or as a transferee or successor (by contract or otherwise), other than
(i) to a Subsidiary of the Company or (ii) where any such liability
would not reasonably be expected to have a Material Adverse Effect.

 

SECTION 3.22 
Material Contracts.  Except
as would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect, each Material Contract that shall survive the
Bankruptcy Cases is valid and binding on the Company or any of its
Subsidiaries, as applicable, and, to the Knowledge of the Company, on each
other Person party thereto, and is in full force and effect.  Other than as a result of the commencement of
the Bankruptcy Cases, each of the Company and its Subsidiaries has performed,
in all material respects, all obligations required to be performed by it under
each Material Contract that shall survive the Bankruptcy Cases, except, in each
case, as would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.  Other
than those caused as a result of the filing of the Bankruptcy Cases, neither
the Company nor any of its Significant Subsidiaries is in breach or default of
any Material Contract to which it is a party and which shall survive the
Bankruptcy Cases, except, in each case, as would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.  The Company has made available to each
Purchaser true, accurate and complete copies of the Material Contracts as of
the date of this Agreement, except for those Material Contracts available to
the public on the website maintained by the SEC.  To the Knowledge of the Company, no party to
any Material Contract that shall survive the Bankruptcy Cases has given written
notice of any action to terminate, cancel, rescind or procure a judicial
reformation of such Material Contract or any material provision thereof, which
termination, cancellation, rescission or reformation would reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.  For the avoidance of doubt, Material
Contracts do not include intercompany contracts.

 

SECTION 3.23 
Certain Restrictions on Charter and Bylaws Provisions; State Takeover
Laws.

 

(a)           The
Company and the Company Board have taken all appropriate and necessary actions
to ensure that the ownership limitations set forth in Article IV of the
Company’s certificate of incorporation shall not apply to (i) the
acquisition of beneficial ownership by any Purchaser and any other member of
the Purchaser Group of the Warrants and the shares of Common Stock issuable
upon exercise of the Warrants, (ii) any antidilution adjustments to those 

 

24

 

Warrants
pursuant to the Warrant Agreement and (iii) any Common Stock that any
Purchaser or any member of the Purchaser Group may be deemed to own by no
actions of its own and the acquisition of beneficial ownership of up to an
additional amount totaling 1.786% of the issued and outstanding shares of
Common Stock, in the aggregate, by any Purchaser or any other member of the
Purchaser Group; provided, however, that such exception to the
ownership limitations are only effective as to any Purchaser or a member of the
Purchaser Group so long as (i) the Company has received executed copies of
the representation certificate contained in Exhibit D from such
Purchaser or any such member of the Purchaser Group, it being understood that a
member of the Purchaser Group (not otherwise a Purchaser hereunder) shall be
required to provide such representations at such times and only at such times
as such member of the Purchaser Group “beneficially owns” or “constructively
owns” (as such terms are defined in the certificate of incorporation of the
Company) Common Stock or New Common Stock in excess of the relevant ownership
limit set forth in the certificate of incorporation of the Company or any stock
or other equity interest owned by such member of the Purchaser Group in a
tenant of the Company would be treated as constructively owned by the Company
and (ii) the representations so provided are true, correct and complete as
of the date made and continue to be true, correct and complete.

 

(b)           The
Company Board has taken all action necessary to render inapplicable to each
Purchaser the restrictions on “business combinations” set forth in
Section 203 of the Delaware General Corporation Law and, to the knowledge
of the Company, any similar “moratorium,” “control share,” “fair
price,” “takeover” or “interested stockholder” law applicable
to transactions between each Purchaser and the Company.

 

SECTION 3.24 
No Other Representations or Warranties.  Except for the representations and warranties
made by the Company in this Article III, neither the Company nor
any other Person makes any representation or warranty with respect to the
Company or its Subsidiaries or their respective business, operations, assets,
liabilities, condition (financial or otherwise) or prospects, notwithstanding
the delivery or disclosure to each Purchaser or any other members of the
Purchaser Group or their respective representatives of any documentation,
forecasts or other information with respect to any one or more of the
foregoing.

 

ARTICLE IV

 

REPRESENTATIONS AND WARRANTIES OF
PURCHASER

 

Each
Purchaser severally, and not jointly and severally, represents and warrants to
the Company with respect to itself, and not with respect to any other
Purchaser, as set forth below:

 

SECTION 4.1 
Organization.  Purchaser is
duly established as a series of a corporation that is duly organized and is
validly existing and in good standing under the Laws of its jurisdiction of
organization, with the requisite corporate power and authority to undertake and
effectuate the transactions contemplated by this Agreement.  Purchaser is a series of a corporation that
has been duly qualified as a foreign corporation or other form of entity for
the transaction of business and, where applicable, is in good standing under
the Laws of each other jurisdiction in which it operates so as to require such
qualification, except where the failure to be so qualified, licensed or in good
standing would not, individually or in the aggregate, have or be 

 

25

 

reasonably
expected to materially delay or prevent the consummation of the transactions contemplated
by this Agreement.

 

SECTION 4.2 
Power and Authority. 
Purchaser has the requisite power and authority to enter into, execute
and deliver this Agreement and to perform its obligations hereunder and has
taken all necessary action required for the due authorization, execution,
delivery and performance by it of this Agreement.

 

SECTION 4.3 
Execution and Delivery. 
This Agreement has been duly and validly executed and delivered by
Purchaser and constitutes its valid and binding obligation, enforceable against
Purchaser in accordance with its terms.

 

SECTION 4.4 
No Conflict.  The execution
and delivery of this Agreement and the performance by Purchaser of its
obligations hereunder and compliance by Purchaser with all of the provisions
hereof and the consummation of the transactions contemplated herein
(i) shall not conflict with, or result in a breach or violation of, any of
the terms or provisions of, or constitute a default under, or result in the
acceleration of, or the creation of any lien under, or give rise to any
termination right under, any material contract to which Purchaser is a party,
(ii) shall not result in any violation or breach of any provisions of the
organizational documents of Purchaser and (iii) shall not conflict with or
result in any violation of, or any termination or material impairment of any
rights under, any statute or any license, authorization, injunction, judgment,
order, decree, rule or regulation of any court or governmental agency or
body having jurisdiction over Purchaser or Purchaser’s properties or assets,
except with respect to each of (i), (ii) and (iii), such conflicts,
violations or defaults as would not be reasonably expected to have a material
adverse effect on the ability of Purchaser to consummate the transactions
contemplated hereunder.

 

SECTION 4.5 
Consents and Approvals.  No
consent, approval, order, authorization, registration or qualification of or
with any Governmental Entity having jurisdiction over Purchaser is required in
connection with the execution and delivery by Purchaser of this Agreement or
the consummation of the transactions contemplated hereby, except such consents,
approvals, orders, authorizations, registration or qualification as would not
reasonably be expected to materially and adversely affect the ability of
Purchaser to perform its obligations under this Agreement.

 

SECTION 4.6 
Compliance with Laws. 
Since the date of its formation, Purchaser has been in compliance with
all Laws applicable to Purchaser, except, in each case, for such non-compliance
as would not reasonably be expected to materially and adversely affect the
ability of Purchaser to perform its obligations under this Agreement.

 

SECTION 4.7 
Legal Proceedings.  There
are no legal, governmental or regulatory investigations, actions, suits or
proceedings pending or, to the knowledge of Purchaser, threatened against
Purchaser which, individually or in the aggregate, if determined adversely to
Purchaser, would materially and adversely affect the ability of Purchaser to
perform its obligations under this Agreement.

 

26

 

SECTION 4.8 
No Broker’s Fees. 
Purchaser is not party to any contract, agreement or understanding with
any Person that would give rise to a valid claim against the Company for an
investment banking fee, commission, finder’s fee or like payment in connection
with the transactions contemplated by this Agreement.

 

SECTION 4.9 
Sophistication.  Purchaser
is, as of the date hereof and shall be as of the Effective Date, an “accredited
investor” within the meaning of Rule 501(a) under the Securities
Act.  Purchaser understands and is able
to bear any economic risks associated with such investment (including, without
limitation, the necessity of holding such Shares and GGO Shares for an
indefinite period of time).

 

SECTION 4.10 
Purchaser Intent. 
Purchaser is acquiring the Shares, the Warrants, the GGO Shares, the New
Warrants and the GGO Warrants for investment purposes only and not with a view
to or for distributing or reselling such Shares, Warrants, GGO Shares, New
Warrants and GGO Warrants or any part thereof, without prejudice, however, to
Purchaser’s right, subject to the provisions of this Agreement, at all times to
sell or otherwise dispose of all or any part of such Shares, Warrants, GGO
Shares, New Warrants and GGO Warrants pursuant to an effective registration
statement under the Securities Act or under an exemption from such registration
and in compliance with applicable federal and state securities Laws.  Purchaser understands that Purchaser must
bear the economic risk of its investment indefinitely.

 

SECTION 4.11 
Reliance on Exemptions. 
Purchaser understands that the Shares and the GGO Shares are being
offered and sold to Purchaser in reliance upon specific exemptions from the
registration requirements of United States federal and state securities Laws.

 

SECTION 4.12 
REIT Representations.  The
representations provided by Purchaser and, to the extent applicable, its
Affiliates, members or Affiliates of members, set forth on Exhibit D
are true, correct and complete as of the date hereof, and shall be true as of
the date of the issuance of the Warrants and as of the Closing Date, it being
understood that Purchaser’s Affiliates, members or Affiliates of members shall
be required to provide such representations only if such Person “beneficially
owns” or “constructively owns” (as such terms are defined in the
certificate of incorporation of the Company) Common Stock or New Common Stock
in excess of the relevant ownership limit set forth in the certificate of
incorporation of the Company or any stock or other equity interest owned by
such Person in a tenant of the Company would be treated as constructively owned
by the Company.

 

SECTION 4.13 
Financial Capability.  Such
Purchaser has sufficient binding capital commitments or available funds to
satisfy its obligations under this Agreement, including without limitation the
payment of the applicable Purchase Price and the GGO Purchase Price.

 

SECTION 4.14 
No Other Representations or Warranties.  Except for the representations and warranties
made by Purchaser in this Article IV, neither Purchaser nor any
other Person on behalf of Purchaser makes any representation or warranty with
respect to Purchaser or its assets, liabilities, condition (financial or
otherwise) or prospects.

 

SECTION 4.15 
Acknowledgement.  Purchaser
acknowledges that (a) neither the Company nor any Person on behalf of the
Company is making any representations or warranties 

 

27

 

whatsoever,
express or implied, beyond those expressly given by the Company in Article III
of this Agreement and (b) Purchaser has not been induced by, or relied
upon, any representations, warranties or statements (written or oral), whether
express or implied, made by any Person, that are not expressly set forth in Article III
of this Agreement.  Without limiting the
generality of the foregoing, except with respect to the representations and
warranties contained in Article III, Purchaser acknowledges that no
representations or warranties are made with respect to any projections,
forecasts, estimates, budgets, plans or prospect information that may have been
made available to Purchaser or any of its representatives.

 

ARTICLE V

 

COVENANTS OF THE COMPANY AND
PURCHASER

 

SECTION 5.1 
Bankruptcy Court Motions and Orders.

 

(a)           No
later than the close of business on the date that is two (2) Business Days
following the date of this Agreement, the Company shall file with the
Bankruptcy Court a motion in form and substance satisfactory to each Purchaser
(the “Approval Motion”) seeking to obtain entry of an order in the form
attached hereto as Exhibit F (the “Proposed Approval Order”),
which order in the final form if approved by the Bankruptcy Court (the “Approval
Order”) shall approve, among other things, the issuance of the Warrants to
each Purchaser and the warrants contemplated by each other Investment Agreement
to be issued to the applicable Initial Investor, and the performance by the
Company of its obligations under the Warrant Agreement.

 

(b)           The
Approval Motion, including any exhibits thereto and any notices or other
materials in connection therewith, and any modifications or amendments to the
foregoing, must be in form and substance reasonably satisfactory to each
Purchaser.

 

(c)           If
the Approval Order shall be appealed by any Person (or a petition for
certiorari or motion for reconsideration, amendment, clarification,
modification, vacation, stay, rehearing or reargument shall be filed with
respect to such order), the Company shall diligently defend against any such
appeal, petition or motion and shall use its reasonable best efforts to obtain
an expedited resolution of any such appeal, petition or motion.  The Company shall keep each Purchaser
reasonably informed and updated regarding the status of any such appeal,
petition or motion.

 

(d)           The
Company shall provide draft copies of all motions, notices, statements,
schedules, applications, reports and other papers the Company intends to file
with the Bankruptcy Court in connection with the Approval Order to each
Purchaser within a reasonable period of time prior to the date the Company
intends to file any of the foregoing, and shall consult in advance in good
faith with each Purchaser regarding the form and substance of any such proposed
filing with the Bankruptcy Court.

 

SECTION 5.2 
Warrants, New Warrants and GGO Warrants.  Within one Business Day of the date of the
entry of the Approval Order, the Company and the warrant agent shall execute
and deliver the warrant and registration rights agreement in the form attached
hereto as Exhibit G  

 

28

 

(with
only such changes thereto as may be reasonably requested by the warrant agent
and reasonably approved by each Purchaser) (the “Warrant Agreement”)
pursuant to which there will be issued to each Purchaser its GGP Pro Rata Share
of 60,000,000 warrants (the “Warrants”) each of which, when issued,
delivered and vested in accordance with the terms of the Warrant Agreement,
will entitle the holder to purchase one (1) share of Common Stock at an initial
price of $15.00 per share subject to adjustment as provided in the Warrant
Agreement.  The Warrant Agreement shall
provide that the Warrants shall vest in accordance with
Section 2.2(b) and Schedule A of the Warrant Agreement.  For the avoidance of doubt, Warrants that
have not vested may not be exercised. 
The Plan shall provide that upon the Effective Date, the Warrants,
regardless of whether or not vested, shall be cancelled for no consideration.  The Plan shall also provide that there shall
be issued to each Purchaser pro rata in accordance with the number of shares of
New Common Stock or GGO Common Stock, as the case may be, purchased, an
aggregate of (i) 42,857,143 fully vested warrants (the “New Warrants”)
each of which entitles the holder to purchase one (1) share of New Common
Stock at an initial purchase price of $10.50 per share subject to adjustment as
provided in the underlying warrant agreement and (ii) 2,000,000 fully
vested warrants (the “GGO Warrants”) each of which entitles the holder
to purchase one (1) share of GGO Common Stock at a price of $50.00 per
share subject to adjustment as provided in the underlying warrant agreement,
each in accordance with the terms set forth in a warrant and registration
rights agreement with terms substantially similar to the terms set forth in the
Warrant Agreement, except that the expiration date for each New Warrant and GGO
Warrant shall be the seventh year anniversary of the date on which such
warrants are issued.

 

SECTION 5.3 
[Intentionally Omitted.]

 

SECTION 5.4 
Listing.  The Company shall
use its reasonable best efforts to cause the Shares and the New Warrants to be
listed on the New York Stock Exchange
(the “NYSE”).  The Plan
shall provide that the Company shall use its reasonable best efforts to cause
GGO to use its reasonable best efforts to cause the GGO Shares and the GGO
Warrants to be listed on a U.S. national securities exchange.

 

SECTION 5.5 
Use of Proceeds.  The Plan
shall provide that the Company and its Subsidiaries, and GGO, shall apply the
net proceeds from the sale of the Shares and the GGO Shares and the Capital
Raising Activities, as applicable, as provided in the Plan Summary Term Sheet
and the Plan.  The parties intend that
the New Warrants, GGO Warrants, New Common Shares and GGO Shares will be
offered and sold under the Plan, to the fullest extent permitted by law, in
exchange for a claim against, an interest in, or a claim for an administrative
expense in the Bankruptcy Case, or principally in such exchange and partly for
other cash or property, for purposes of Section 1145, and the parties
shall take all reasonable actions necessary consistent with applicable law to
cause such securities to be so offered and sold, including without limitation,
reflecting the foregoing in the initial filing of the Plan with the Bankruptcy
Court.

 

SECTION 5.6 
Access to Information. 
Subject to applicable Law and the Company’s receipt of customary
assurances of confidentiality by each Purchaser, upon reasonable notice, the
Company shall afford each Purchaser and its directors, officers, employees,
investment bankers, attorneys, accountants and other advisors or
representatives, reasonable access during normal business hours, throughout the
period prior to the Effective Date, to its employees, books, 

 

29

 

contracts
and records and, during such period, the Company shall (and shall cause its
Subsidiaries to) furnish promptly to each Purchaser such information concerning
its business, properties and personnel as may reasonably be requested by such
Purchaser, including copies of all monthly financial information provided to
its lenders under its existing debtor in possession financing agreements; provided,
that, notwithstanding anything to the contrary, the Company shall not be
required to share confidential information relating to any Competing
Transaction except as contemplated by Section 5.7.

 

SECTION 5.7 
Competing Transactions. 
From the date of this Agreement until the earlier to occur of the
Closing and the termination of this Agreement, the Company shall provide
written notice to each Purchaser not less than 48 hours prior to the Company or
any Subsidiary of the Company (i) entering into a definitive agreement
providing for a Competing Transaction or (ii) filing a motion with the
Bankruptcy Court seeking to obtain bid procedures or bid protections for or in
connection with a Competing Transaction.

 

SECTION 5.8 
Reservation for Issuance. 
The Company shall reserve that number of shares of Common Stock sufficient
for issuance upon exercise or conversion of the Warrants.  In connection with the issuance of the New
Warrants, the Plan shall provide that the Company shall reserve for issuance
that number of shares of New Common Stock sufficient for issuance upon exercise
of the New Warrants.  The Plan shall
provide that GGO shall reserve for issuance that number of shares of GGO Common
Stock sufficient for issuance upon exercise of the GGO Warrants.

 

SECTION 5.9 
Subscription Rights.

 

(a)           Company
Subscription Right.

 

(i)                                     Sale
of New Equity Securities.  If the Company or any Subsidiary of the
Company at any time or from time to time following the Closing Date makes any
public or non-public offering of any shares of New Common Stock (or securities
that are convertible into or exchangeable or exercisable for, or linked to the
performance of, New Common Stock) (other than (1) pursuant to the granting
or exercise of employee stock options or other stock incentives pursuant to the
Company’s stock incentive plans and employment arrangements as in effect from
time to time or the issuance of stock pursuant to the Company’s employee stock
purchase plan as in effect from time to time, (2) pursuant to or in
consideration for the acquisition of another Person, business or assets by the
Company or any of its Subsidiaries, whether by purchase of stock, merger,
consolidation, purchase of all or substantially all of the assets of such
Person or otherwise, (3) to strategic partners or joint venturers in
connection with a commercial relationship with the Company or its Subsidiaries
or to parties in connection with them providing the Company or its Subsidiaries
with loans, credit lines, cash price reductions or similar transactions, under
arm’s-length arrangements, (4) pursuant to the Equity Exchange or any
conversion or exchange of debt or other claims into equity in connection with
the Plan, (5) the sale of Backstop Shares (as 

 

30

 

defined in the Pershing Agreement) pursuant to the
Pershing Agreement or (6) as set forth on Section 5.9(a) of
the Company Disclosure Letter) (the “Proposed Securities”), each
Purchaser shall have the right to acquire from the Company (the “Subscription
Right”) for the same price (net of any underwriting discounts or sales
commissions or any other discounts or fees if not purchasing from or through an
underwriter, placement agent or broker) and on the same terms as such Proposed
Securities are proposed to be offered to others, up to the amount of such Proposed
Securities in the aggregate required to enable it to maintain its aggregate
proportionate New Common Stock-equivalent interest in the Company on a Fully
Diluted Basis determined in accordance with the following sentence, in each
case, subject to such limitations as may be imposed by applicable Law or stock
exchange rules.  The amount of such
Proposed Securities that each Purchaser shall be entitled to purchase in the
aggregate in any offering pursuant to the above shall (subject to such
limitations as may be imposed by applicable Law or stock exchange rules) be
determined by multiplying (x) the total number of such offered shares of
Proposed Securities by (y) a fraction, the numerator of which is the
number of shares of New Common Stock held by such Purchaser on a Fully Diluted
Basis as of the date of the Company’s notice pursuant to Section 5.9(a)(ii) in
respect of the issuance of such Proposed Securities, and the denominator of
which is the number of shares of New Common Stock then outstanding on a Fully Diluted
Basis.  For the avoidance of doubt, the
actual amount of securities to be sold or offered to each Purchaser pursuant to
its exercise of the Subscription Right hereunder shall be proportionally
reduced if the aggregate amount of Proposed Securities sold or offered is
reduced.  Any offers and sales pursuant
to this Section 5.9 in the context of a registered public offering
shall be conditioned upon reasonably acceptable representations and warranties
of the applicable Purchaser regarding its status as the type of offeree to whom
a private sale can be made concurrently with a registered public offering in
compliance with applicable securities Laws.

 

(ii)                                  Notice.  In the event the Company proposes to offer
Proposed Securities, it shall give each Purchaser written notice of its
intention, describing the estimated price (or range of prices), anticipated
amount of securities, timing and other terms upon which the Company proposes to
offer the same (including, in the case of a registered public offering and to
the extent possible, a copy of the prospectus included in the registration
statement filed with respect to such offering), no later than 10 Business Days
after the commencement of marketing with respect to such offering or after the
Company takes substantial steps to pursue any other offering.  Each Purchaser shall have three
(3) Business Days from the date of receipt of such a notice to notify the
Company in writing that it intends to exercise its Subscription Right and as to
the amount of Proposed Securities such Purchaser desires to purchase, up to the
maximum amount calculated pursuant to Section 5.9(a)(i).  In connection with an underwritten public 

 

31

 

offering, such notice shall constitute a non-binding
indication of interest to purchase Proposed Securities at such a range of
prices as such Purchaser may specify and, with respect to other offerings, such
notice shall constitute a binding commitment of such Purchaser to purchase the
amount of Proposed Securities so specified at the price and other terms set
forth in the Company’s notice to such Purchaser.  The failure of such Purchaser to so respond
within such three (3) Business Day period shall be deemed to be a waiver
of the Subscription Right under this Section 5.9 only with respect
to the offering described in the applicable notice.  In connection with an underwritten public
offering or a private placement, each Purchaser shall further enter into an
agreement (in form and substance customary for transactions of this type) to
purchase the Proposed Securities to be acquired by it contemporaneously with
the execution of any underwriting agreement or purchase agreement entered into
with the Company, the underwriters or initial purchasers of such underwritten
public offering or private placement, and the failure of such Purchaser to
enter into such an agreement at or prior to such time shall constitute a waiver
of the right to purchase the applicable portion of the Proposed Securities in
respect of such offering.

 

(iii)                               Purchase
Mechanism.  If a
Purchaser exercises its Subscription Right provided in this Section 5.9,
the closing of the purchase of the Proposed Securities with respect to which
such right has been exercised shall take place concurrently with the sale to
the other investors in the applicable offering, which period of time for the
closing of the purchase of the Proposed Securities with respect to which such
right has been exercised shall be extended for a maximum of 180 days in order
to comply with applicable Laws (including receipt of any applicable regulatory
or stockholder approvals).  The Company
and each Purchaser shall use its reasonable best efforts to secure any
regulatory or stockholder approvals or other consents, and to comply with any Law
necessary in connection with the offer, sale and purchase of, such Proposed
Securities.

 

(iv)                              Failure
of Purchase. In the event (A) a Purchaser fails to
exercise its Subscription Right provided in this Section 5.9 within
said three Business Day period, or (B) if so exercised, a Purchaser fails
or is unable to consummate such purchase within the 180 day period specified in
Section 5.9(a)(iii), without prejudice to other remedies, the
Company shall thereafter be entitled during the Additional Sale Period to sell
the Proposed Securities not elected to be purchased pursuant to this Section 5.9
or which such Purchaser fails to or is unable to purchase, at a price and upon
terms no more favorable in any material respect to the purchasers of such
securities than were specified in the Company’s notice to such Purchaser.  In the event the Company has not sold the
Proposed Securities within the Additional Sale Period, the Company shall not
thereafter offer, issue or sell such Proposed Securities without first offering
such securities to the applicable Purchaser in the manner provided above.

 

32

 

(v)                                 Non-Cash
Consideration.  In the case
of the offering of securities for a consideration in whole or in part other
than cash, including securities acquired in exchange therefor (other than
securities by their terms so exchangeable), the consideration other than cash
shall be deemed to be the fair value thereof as determined by the Company
Board; provided, however, that such fair value as determined by
the Company Board shall not exceed the aggregate market price of the securities
being offered as of the date the Company Board authorizes the offering of such
securities.

 

(vi)                              Cooperation. The Company
and each Purchaser shall cooperate in good faith to facilitate the exercise of
such Purchaser’s Subscription Right hereunder, including using reasonable
efforts to secure any required approvals or consents.

 

(vii)                           [Intentionally
Omitted.]

 

(viii)                        General.  Notwithstanding anything herein to the
contrary, (A) if (1) a Purchaser exercises its Subscription Right
pursuant to this Section 5.9 and is unable to complete the purchase
of the Proposed Securities concurrently with the sales to the other investors
in the applicable offering as contemplated by Section 5.9(a)(iii) due
to applicable regulatory or stockholder approvals and (2) the Company or
the Company Board determines in good faith that any delay in completion of an
offering in respect of which such Purchaser is entitled to Subscription Rights
would materially impair the financing objective of such offering, the Company
may proceed with such offering without the participation of such Purchaser in
such offering, in which event the Company and such Purchaser shall promptly
thereafter agree on a process otherwise consistent with this Section 5.9
as would allow such Purchaser to purchase, at the same price (net of any
underwriting discounts or sales commissions or any other discounts or fees if
not purchasing from or through an underwriter, placement agent or broker) as in
such offering, up to the amount of shares of New Common Stock (or securities
that are convertible into or exchangeable or exercisable for, or linked to the
performance of, New Common Stock) as shall be necessary to enable such
Purchaser to maintain its aggregate proportionate New Common Stock-equivalent
interest in the Company on a Fully Diluted Basis, (B) if the Company or
the Company Board determines in good faith that compliance with the notice
provisions in Section 5.9(a)(ii) would materially impair the
financing objective of an offering in respect of which a Purchaser is entitled
to Subscription Rights, the Company shall be permitted by notice to such
Purchaser to reduce the notice period required under Section 5.9(a)(ii) (but
not to less than one (1) Business Day) to the minimum extent required to
meet the financing objective of such offering and such Purchaser shall have the
right to either (x) exercise its Subscription Rights during the shortened
notice periods specified in such notice or (y) require the Company to
promptly thereafter agree on a process otherwise 

 

33

 

consistent with this Section 5.9 as
would allow such Purchaser to purchase, at the same price (net of any
underwriting discounts or sales commissions or any other discounts or fees if
not purchasing from or through an underwriter, placement agent or broker) as in
such offering, up to the amount of shares of New Common Stock (or securities
that are convertible into or exchangeable or exercisable for, or linked to the
performance of, New Common Stock) as shall be necessary to enable such
Purchaser to maintain its aggregate proportionate New Common Stock-equivalent
interest in the Company on a Fully Diluted Basis and (C) in the event the
Company is unable to issue shares of New Common Stock (or securities that are
convertible into or exchangeable or exercisable for, or linked to the
performance of, New Common Stock) to a Purchaser as a result of a failure to receive
regulatory or stockholder approval therefor, the Company shall take such action
or cause to be taken such other action in order to place such Purchaser,
insofar as reasonably practicable (subject to any limitations that may be
imposed by applicable Law or stock exchange rules), in the same position in all
material respects as if such Purchaser was able to effectively exercise its
Subscription Rights hereunder, including, without limitation, at the option of
such Purchaser, issuing to such Purchaser another class of securities of the
Company having terms to be agreed by the Company and such Purchaser having a
value at least equal to the value per share of New Common Stock, in each case,
as shall be necessary to enable such Purchaser to maintain its proportionate
New Common Stock-equivalent interest in the Company on a Fully Diluted Basis.

 

(ix)                                Termination.  This Section 5.9 shall terminate
at such time as the members of the Purchaser Group collectively beneficially
own less than 5% of the outstanding shares of New Common Stock on a Fully
Diluted Basis.

 

(b)           GGO
Subscription Rights.  The Plan shall
provide that in connection with the consummation of the Plan, GGO shall enter
into an agreement with each Purchaser with substantially similar terms to those
set forth in Section 5.9(a) above with respect to any issuance
of GGO Common Stock (or securities that are convertible into or exchangeable or
exercisable for, or otherwise linked to, GGO Common Stock) after the Effective
Date.

 

SECTION 5.10 
[Intentionally Omitted.]

 

SECTION 5.11 
Notification of Certain Matters.

 

(a)           The
Company shall (i) give prompt written notice to each Purchaser of any
written notice or other written communication from any Person alleging that the
consent of such Person which is or may be required in connection with the
transactions contemplated by this Agreement is not likely to be obtained prior
to Closing, if the failure to obtain such consent would reasonably be expected
to be adverse and material to the Company and its Subsidiaries taken as a whole
or would materially impair the ability of the Company to consummate the
transactions contemplated hereby or perform its obligations hereunder, and
(ii) facilitate adding 

 

34

 

such
individuals as designated by each Purchaser to the electronic notification
system such that the designated individuals will receive electronic notice of
the entry of any Bankruptcy Court Order.

 

(b)           To
the extent permitted by applicable Law, (i) the Company shall give prompt
notice to each Purchaser of the commencement of any investigation, inquiry or
review by any Governmental Entity with respect to the Company or its
Subsidiaries which would reasonably be expected to be adverse and material to
the Company and its Subsidiaries taken as a whole or would materially impair
the ability of the Company to consummate the transactions contemplated hereby
or perform its obligations hereunder, and (ii) the Company shall give
prompt notice to each Purchaser, and each Purchaser shall give written prompt
notice to the Company, of any event or circumstance that would result in any
representation or warranty of the Company or such Purchaser, as applicable,
being untrue or any covenant or agreement of the Company or such Purchaser, as
applicable, not being performed or complied with such that, in each such case,
the conditions set forth in Article VII or Article VIII,
as applicable, would not be satisfied if such event or circumstance existed on
the Closing Date.

 

(c)           No
information received by a party pursuant to this Section 5.11 nor
any information received or learned by a party or any of its representatives
pursuant to an investigation made under this Section 5.11 shall be
deemed to (A) qualify, modify, amend or otherwise affect any
representations, warranties, conditions, covenants or other agreements of the
other party set forth in this Agreement, (B) amend or otherwise supplement
the information set forth in the Company Disclosure Letter, (C) limit or
restrict the remedies available to such party under this Agreement, applicable
Law or otherwise arising out of a breach of this Agreement, or (D) limit
or restrict the ability of such party to invoke or rely on, or effect the
satisfaction of, the conditions to the obligations of such party to consummate
the transactions contemplated by this Agreement set forth in Article VII
or Article VIII, as applicable.

 

SECTION 5.12 
Further Assurances.  From
and after the Closing, the Company shall (and shall cause each of its
Subsidiaries to) execute and deliver, or cause to be executed and delivered,
such further instruments or documents or take such other action and cause
entities controlled by them to take such action as may be reasonably necessary
(or as reasonably requested by any Purchaser) to carry out the transactions
contemplated by this Agreement.

 

SECTION 5.13 
[Intentionally Omitted.]

 

SECTION 5.14 
Rights Agreement; Reorganized Company Organizational Documents.

 

(a)           Prior
to the issuance of the Warrants, the Rights Agreement shall be amended to
provide that (i) the Rights Agreement is inapplicable to (1) the
acquisition by members of the Purchaser Group of the Warrants and the
underlying securities thereof, (2) any antidilution adjustments to those
Warrants pursuant to the Warrant Agreement, (3) any shares of New Common
Stock that a Purchaser or a member of its Purchaser Group may be deemed to own
by no actions of its own and (4) up to an additional amount totaling
1.786% of the issued and outstanding shares of Common Stock in the aggregate by
the Purchaser Group, (ii) no Purchaser, or any member of the Purchaser
Group, shall be deemed to be an Acquiring Person (as defined in the Rights
Agreement), (iii) neither a Shares Acquisition Date (as defined in the
Rights 

 

35

 

Agreement)
nor a Distribution Date (as defined in the Rights Agreement) shall be deemed to
occur and (iv) the Rights (as defined in the Rights Agreement) shall not
separate from the Common Stock, in each case under (ii), (iii) and (iv),
as a result of the acquisition by members of the Purchaser Group of the
Warrants, the underlying securities thereof and the acquisition of beneficial
ownership of up to an additional amount totaling 1.786% of the issued and
outstanding shares of Common Stock in the aggregate by the Purchaser Group.

 

(b)           The
certificate of incorporation and bylaws of the Reorganized Company (the “Reorganized
Company Organizational Documents”) shall be in form mutually agreed to by
the Company and each Purchaser, provided, that in the event that the
Company and such Purchaser are not able to agree on such form prior to the
Effective Date, the Reorganized Company Organizational Documents shall be
substantially in the same form as the certificate of incorporation and bylaws
of the Company as in existence on the date of this Agreement (except that the
number of authorized shares of capital stock of the Reorganized Company shall
be increased), provided, however, that (i) the restriction
on Beneficial Ownership (as such term is defined in the certificate of
incorporation of the Company) shall be set at 9.9% of the outstanding capital
stock of the Reorganized Company, (ii) the restriction on Constructive
Ownership (as such term is defined in the certificate of incorporation of the
Company) shall be set at 9.9% of the outstanding capital stock of the
Reorganized Company, (iii) there shall not be an exemption from the
restrictions set forth in the foregoing clauses (i) and (ii) for the
current Existing Holder (as such term is defined in the existing certificate of
incorporation of the Company), (iv) the Reorganized Company shall provide
a waiver from the restrictions set forth in the foregoing clauses (i) and
(ii) to any member of the Purchaser Group if such member provides the
Reorganized Company with a certificate containing the representations and
covenants set forth on Exhibit D and (v) the definition of “Person”
shall be revised so that it does not include a “group” as that term is
used for purposes of Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended.

 

(c)           In
the event the Reorganized Company adopts a rights plan analogous to the Rights
Agreement on or prior to the Closing, the Plan shall provide that (i) the
Reorganized Company’s Rights Agreement shall be inapplicable to this Agreement
and the transactions contemplated hereby, (ii) no Purchaser, nor any other
member of its Purchaser Group, shall be deemed to be an Acquiring Person (as
defined in the Rights Agreement) whether in connection with the acquisition of
Shares, New Warrants, shares
issuable upon exercise of the New Warrants or otherwise, (iii) neither a
Shares Acquisition Date (as defined in the Rights Agreement) nor a Distribution
Date (as defined in the Rights Agreement) shall be deemed to occur and
(iv) the Rights (as defined in the Rights Agreement) will not separate
from the New Common Stock, in each case under (ii), (iii) and (iv), as a
result of the execution, delivery or performance of this Agreement, the
consummation of the transactions contemplated hereby including the acquisition
of shares of New Common Stock by any Purchaser or other member of the Purchaser
Group after the date hereof as otherwise permitted by this Agreement, the New
Warrants or as otherwise contemplated by the applicable Non-Control Agreement,
if any.

 

(d)           In
the event GGO adopts a rights plan analogous to the Rights Agreement on or
prior to the Closing, the Plan shall provide that (i) GGO’s Rights
Agreement shall be inapplicable to this Agreement and the transactions contemplated
hereby, (ii) no Purchaser, nor any other member of its Purchaser Group,
shall be deemed to be an Acquiring Person (as defined 

 

36

 

in
the Rights Agreement) whether in connection with the acquisition of shares of
GGO Common Stock or GGO Warrants or the shares issuable upon exercise of the
GGO Warrants, (iii) neither a Shares Acquisition Date (as defined in the
Rights Agreement) nor a Distribution Date (as defined in the Rights Agreement)
shall be deemed to occur and (iv) the Rights (as defined in the Rights
Agreement) will not separate from the GGO Common Stock, in each case under
(ii), (iii) and (iv), as a result of the execution, delivery or
performance of this Agreement, or the consummation of the transactions
contemplated hereby including the acquisition of shares of GGO Common Stock by
any Purchaser or other member of the Purchaser Group after the date hereof as
otherwise permitted by this Agreement or the GGO Warrants.

 

(e)           Newco
(as defined in Exhibit B) will be formed by the Operating
Partnership solely for the purpose of engaging in the transactions contemplated
by this Agreement, including Exhibit B and Capital Raising
Activities permitted pursuant to this Agreement.  Prior to the Closing, Newco will not engage
in any business activity, nor conduct its operations, other than as
contemplated by this Agreement (which, for greater certainty, shall include
Capital Raising Activities permitted pursuant to this Agreement).

 

SECTION 5.15 
Stockholder Approval.  For
so long as any Purchaser has Subscription Rights as contemplated by Section 5.9(a) in
connection with the expiration of the five (5) year period referenced in Section 3.2(c),
the Company shall put up for a stockholder vote at the immediately prior annual
meeting of its stockholders, and include in its proxy statement distributed to
such stockholders in connection with such annual meeting, approval of such
Purchaser’s Subscription Rights for the maximum period permitted by the NYSE.  The Plan shall provide that GGO shall, for
the benefit of each Purchaser, to the extent required by any U.S. national
securities exchange upon which shares of GGO Common Stock are listed, for so
long as any Purchaser has subscription rights as contemplated by Section 5.9(b),
put up for a stockholder vote at the annual meeting of its stockholders, and
include in its proxy statement distributed to such stockholders in connection
with such annual meeting, approval of such Purchaser’s subscription rights for
the maximum period permitted by the rules of such U.S. national securities
exchange.

 

SECTION 5.16 
Closing Date Net Debt.

 

(a)           The
Company shall deliver to each Purchaser a schedule (the “Preliminary Closing
Date Net Debt Schedule”) on or before the first Business Day that is five
calendar days following approval of the Disclosure Statement, that:
(i) sets forth the Company’s good faith estimate for each of the three
components of the Closing Date Net Debt W/O Reinstatement Adjustment and
Permitted Claims Amounts along with a reasonably detailed explanation and
calculation of each such component and (ii) discloses the Company’s good
faith estimate of the Closing Date Net Debt W/O Reinstatement Adjustment and
Permitted Claims Amounts and GGO Setup Costs.

 

(b)           Each
Purchaser shall review the Preliminary Closing Date Net Debt Schedule during
the Preliminary Closing Date Net Debt Review Period, during which time the
Company shall allow such Purchaser reasonable access to all non-privileged and
non-work product documents or records or personnel used in the preparation of
the Preliminary Closing Date Net Debt Schedule. 
On or prior to the Preliminary Closing Date Net Debt Review Deadline,
any 

 

37

 

Purchaser
may deliver to the Company a notice (the “Dispute Notice”) listing those
items on the Preliminary Closing Date Net Debt Schedule to which such Purchaser
takes exception, which Dispute Notice shall (i) specifically identify such
items, and provide a reasonably detailed explanation of the basis upon which
such Purchaser has delivered such list, (ii) set forth the amount of
Closing Date Net Debt W/O Reinstatement Adjustment and Permitted Claims Amounts
that such Purchaser has calculated based on the information contained in the Preliminary
Closing Date Net Debt Schedule, and (iii) specifically identify such
Purchaser’s proposed adjustment(s).  If a
Purchaser timely provides the Company with a Dispute Notice, then such
Purchaser and the Company shall, within ten (10) days following receipt of
such Dispute Notice by the Company (the “Resolution Period”), attempt to
resolve their differences with respect to the items specified in the Dispute
Notice (the “Disputed Items”).  If
a Purchaser and the Company do not resolve all Disputed Items by the end of the
Resolution Period, then all Disputed Items remaining in dispute shall be
submitted to the Bankruptcy Court for resolution at or concurrent with the
Confirmation Hearing.  The Bankruptcy
Court shall consider only those Disputed Items that such Purchaser, on the one
hand, and the Company, on the other hand, were unable to resolve.  All other matters shall be deemed to have
been agreed upon by such Purchaser and the Company.  If a Purchaser does not timely deliver a
Dispute Notice, then such Purchaser shall be deemed to have accepted and agreed
to the Preliminary Closing Date Net Debt Schedule and to have waived any right
to dispute the matters set forth therein.

 

(c)           The
Company shall deliver to each Purchaser a draft of the Conclusive Net Debt
Adjustment Statement no later than 15 calendar days prior to the Effective
Date.  Each Purchaser shall be afforded
an opportunity to review the Conclusive Net Debt Adjustment Statement and
reasonable access to all non-privileged and non-work product documents or
records or personnel used in the preparation of such statement.  On or prior to close of business on the 7th
calendar day following receipt of the Conclusive Net Debt Adjustment Statement,
any Purchaser may deliver to the Company a notice (the “CNDAS Dispute Notice”)
listing those items to which such Purchaser takes exception, which CNDAS
Dispute Notice shall (i) specifically identify such items, and provide a
reasonably detailed explanation of the basis upon which such Purchaser has
delivered such list, (ii) set forth the alternative amounts that such
Purchaser has calculated based on the information contained in the Conclusive
Net Debt Adjustment Statement, and (iii) specifically identify such
Purchaser’s proposed adjustment(s).  If a
Purchaser timely provides the Company with a CNDAS Dispute Notice, then such
Purchaser and the Company shall attempt to resolve the items specified in the
CNDAS Dispute Notice (the “CNDAS Disputed Items”) consensually.  If such Purchaser and the Company do not resolve
all CNDAS Disputed Items prior to the Effective Date, then for purposes of
Closing and subject to subsequent adjustment consistent with the Bankruptcy
Court’s ruling, the highest number shall be used for purposes of any
calculations set forth on the Conclusive Net Debt Adjustment Statement.  Within 10 days after Closing, the Company
shall file a motion for resolution by the Bankruptcy Court.  The Purchasers and the Company agree to seek
expedited consideration of any such dispute. 
The dispute submitted to the Bankruptcy Court shall be limited to only
those CNDAS Disputed Items that a Purchaser, on the one hand, and the Company,
on the other hand, were unable to resolve. 
All other matters shall be deemed to have been agreed upon by the
Purchasers and the Company.  If a
Purchaser does not timely deliver a CNDAS Dispute Notice, then such Purchaser
shall be deemed to have accepted and agreed to the Conclusive Net Debt
Adjustment Statement and to have waived any right to dispute the matters set
forth therein.  To the extent that one or
more CNDAS Disputed Items must be submitted to the Bankruptcy Court for
adjudication, the 

 

38

 

Purchasers
and the Company agree that this should not delay the Effective Date or the
Closing Date.  Following adjudication of
the dispute, appropriate adjustments shall be made to the Conclusive Net Debt
Adjustment Statement, the GGO Promissory Note and the other applicable
documentation to put all parties in the same economic position as if the
corrected Conclusive Net Debt Adjustment Statement governed at Closing.

 

(d)           It
is the intention of the parties that any Reserve should not alter the intended
allocation of value between GGO and the Company as Claims are resolved over
time.  Accordingly, the Plan shall
provide that, if a GGO Promissory Note is required to be issued at Closing and
there is a Reserve Surplus Amount as of the end of any fiscal quarter prior to
the maturity of the GGO Promissory Note, then the principal amount of the GGO
Promissory Note shall be reduced, but not below zero, by (i) if and to the
extent that such Reserve Surplus Amount as of such date is less than or equal
to the Net Debt Surplus Amount, 80% of the Reserve Surplus Amount, and
otherwise (ii) 100% of an amount equal to the Reserve Surplus Amount;
provided, however, that because this calculation may be undertaken on a
periodic basis, for purposes of clauses (i) and (ii), no portion of the
Reserve Surplus Amount shall be utilized to reduce the amount of the GGO
Promissory Note if it has been previously utilized for such purpose.  In the event that any party requests an
equitable adjustment to this formula, the other parties shall consider the
request in good faith.

 

(e)           The
Plan shall provide that, if there is an Offering Premium, the principal amount
of the GGO Promissory Note shall be reduced (but not below zero) by 80% of the
aggregate Offering Premium on the 30th day following the Effective Date and
from time to time thereafter upon receipt of Offering Premium until the last to occur of (x) 45 days after the Effective Date, (y) the
Settlement Date (as defined in the Pershing Agreement), if applicable, and (z) the
Bridge Note Maturity Date (as defined in the Pershing Agreement), if applicable.

 

(f)            The
Plan and the agreements relating to the GGO Share Distribution shall provide
that from and after the Closing, the Company shall indemnify GGO and its
Subsidiaries from and against 93.75% of any and all losses, claims, damages,
liabilities and reasonable expenses to which GGO and its Subsidiaries may
become subject, in each case solely to the extent directly attributable to MPC
Taxes actually paid at or after the Effective Date; provided, that in no
event shall the Company be required to make any indemnification payment
hereunder to the extent such payment would result in aggregate payments under
this Section 5.16(f) that would exceed the lower of
(i) $303,750,000 and (ii) the then effective Excess Surplus Amount
(the “Indemnity Cap”). The Plan shall provide that if GGO or its
Affiliates receives any refund or realizes any reduction of its Tax liability
in respect of the MPC Assets for which it has received a payment or realized a
benefit pursuant to this Agreement, GGO shall pay an amount equal to such
refund or reduction in Tax liability (less any costs or Taxes incurred with
respect to the receipt thereof) to the Reorganized Company within ten
(10) Business Days of the receipt or realization thereof.

 

(g)           If
GGO is obligated to pay MPC Taxes with respect to the tax year 2010 and the
Company is not then obligated to indemnify GGO as a consequence of the
Indemnity Cap, then solely with respect to such payments, the Company shall pay
such amount of MPC Taxes and the principal amount of the GGO Promissory Note
shall be increased by the amount of such payment and if at such time no GGO
Promissory Note is outstanding, on the date of any such payment, 

 

39

 

GGO
shall issue in favor of the Company a promissory note in the aggregate
principal amount of such payment on the same terms as the GGO Promissory Note.

 

ARTICLE VI

 

ADDITIONAL COVENANTS OF PURCHASER

 

SECTION 6.1 
Information.  From and
after the date of this Agreement until the earlier to occur of the Closing Date
and the termination of this Agreement, each Purchaser agrees to provide the
Debtors with such information as the Debtors reasonably request regarding such
Purchaser for inclusion in the Disclosure Statement as necessary for the
Disclosure Statement to contain adequate information for purposes of
Section 1125 of the Bankruptcy Code.

 

SECTION 6.2 
Purchaser Efforts.  Each
Purchaser shall use its reasonable best efforts to obtain all material permits,
consents, orders, approvals, waivers, authorizations or other permissions or
actions required for the consummation of the transactions contemplated by this
Agreement from, and shall have given all necessary notices to, all Governmental
Entities necessary to satisfy the condition in Section 8.1(b) (provided,
however, that such Purchaser shall not be required to pay or cause
payment of any fees or make any financial accommodations to obtain any such
consent, approval, waiver or other permission, except filing fees as required),
and provide to such Governmental Entities all such information as may be
necessary or reasonably requested relating to the transactions contemplated
hereby.

 

SECTION 6.3 
Plan Support.  From and
after the date of the Approval Order until the earliest to occur of
(i) the Effective Date, (ii) the termination of this Agreement and
(iii) the date the Company or any Subsidiary of the Company makes a public
announcement, enters into an agreement or files any pleading or document with
the Bankruptcy Court, in each case, evidencing its intention to support any
Competing Transaction, or the Company or any Subsidiary of the Company enters
into a Competing Transaction (such date, the “Unrestricted Date”), each
Purchaser agrees (unless otherwise consented to by the Company) (provided
that (x) the Company is not in material breach of this Agreement and
(y) the terms of the Plan are and remain consistent with the Plan Summary
Term Sheet and this Agreement, and are otherwise in form and substance satisfactory
to each Purchaser) to (and shall use reasonable best efforts to cause its
Affiliates to):

 

(a)           Not
pursue, propose, support, vote to accept or encourage the pursuit, proposal or
support of, any Chapter 11 plan, or other restructuring or reorganization for
the Company, or any Subsidiary of the Company, that is not consistent with the
Plan;

 

(b)           Not,
nor encourage any other Person to, interfere with, delay, impede, appeal or
take any other negative action, directly or indirectly, in any respect regarding
acceptance or implementation of the Plan; and

 

(c)           Not
commence any proceeding, or prosecute any objection to oppose or object to the
Plan or to the Disclosure Statement and not to take any action that would delay
approval or confirmation, as applicable, of the Disclosure Statement and the
Plan, in each case (i) except as intended to ensure the consistency of the
Disclosure Statement and the Plan with the terms of this 

 

40

 

Agreement
and the rights and obligations of the parties thereto and (ii) without
limiting any rights any Purchaser may have to terminate this Agreement pursuant
to Section 11.1(b) (including Section 11.1(b)(ix))
hereof.

 

SECTION 6.4 
Transfer Restrictions. 
Each Purchaser covenants and agrees that the Shares and the GGO Shares
(and shares issuable upon exercise of Warrants, New Warrants and GGO Warrants)
shall be disposed of only pursuant to an effective registration statement under
the Securities Act or pursuant to an available exemption from the registration
requirements of the Securities Act, and in compliance with any applicable state
securities Laws.  Each Purchaser agrees
to the imprinting, so long as is required by this Section 6.4, of
the following legend on any certificate evidencing the Shares or GGO Shares
(and shares issuable upon exercise of Warrants, New Warrants and GGO Warrants):

 

THE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED
(THE “ACT”) OR UNDER ANY STATE SECURITIES LAWS (“BLUE SKY”) OR
THE SECURITIES LAWS OF ANY OTHER RELEVANT JURISDICTION.  THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE. 
THE SHARES MAY NOT BE SOLD, ASSIGNED, MORTGAGED, PLEDGED,
ENCUMBERED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS EITHER
(I) A REGISTRATION STATEMENT WITH RESPECT TO THE SHARES IS EFFECTIVE UNDER
THE ACT AND APPLICABLE BLUE SKY LAWS AND THE SECURITIES LAWS OF ANY OTHER
RELEVANT JURISDICTION ARE COMPLIED WITH OR (II) UNLESS WAIVED BY THE ISSUER,
THE ISSUER RECEIVES AN OPINION OF LEGAL COUNSEL SATISFACTORY TO THE ISSUER THAT
NO VIOLATION OF THE ACT OR OTHER APPLICABLE LAWS WILL BE INVOLVED IN SUCH
TRANSACTION.

 

Certificates
evidencing the Shares (and shares issuable upon exercise of Warrants and New
Warrants) shall not be required to contain such legend (A) while a
registration statement covering the resale of the Shares is effective under the
Securities Act, or (B) following any sale of any such Shares pursuant to
Rule 144 of the Exchange Act (“Rule 144”), or
(C) following receipt of a legal opinion of counsel to the applicable
Purchaser that the remaining Shares held by such Purchaser are eligible for
resale without volume limitations or other limitations under Rule 144.  In addition, the Company will agree to the
removal of all legends with respect to shares of New Common Stock deposited
with DTC from time to time in anticipation of sale in accordance with the
volume limitations and other limitations under Rule 144, subject to the
Company’s approval of appropriate procedures, such approval not to be
unreasonably withheld, conditioned or delayed.

 

Following
the time at which such legend is no longer required (as provided above) for
certain Shares, the Company shall promptly, following the delivery by the
applicable Purchaser to the Company of a legended certificate representing such
Shares, deliver or cause to be delivered to such Purchaser a certificate
representing such Shares that is free from such legend.  In the event the above legend is removed from
any of the Shares, and thereafter the effectiveness of a registration statement
covering such Shares is suspended or the Company determines that a supplement
or amendment thereto is required by applicable securities Laws, then the
Company may require that the above legend be placed on any such Shares that
cannot then be sold 

 

41

 

pursuant
to an effective registration statement or under Rule 144 and such
Purchaser shall cooperate in the replacement of such legend.  Such legend shall thereafter be removed when
such Shares may again be sold pursuant to an effective registration statement
or under Rule 144.

 

The
Plan shall provide, in connection with the consummation of the Plan, for GGO to
enter into an agreement with each Purchaser with respect to GGO Shares and GGO
Warrants containing the same terms as provided above in this Section 6.4
but replacing references to (A) “the Company” with GGO, (B) “New
Common Stock” with GGO Common Stock, (C) “Shares” with “GGO
Shares” and (D) “Warrants” or “New Warrants” with GGO
Warrants.

 

The
Fairholme Fund further covenants and agrees not to sell, transfer or dispose of
(each, a “Transfer”) the Warrants or the shares of Common Stock issuable
upon exercise of the Warrants (other than to a member of the Purchaser Group)
prior to the Unrestricted Date or any Shares, New Common Stock or New Warrants
in violation of the Non-Control Agreement.

 

For
the avoidance of doubt, each Purchaser’s Subscription Rights pursuant to Section 5.9
may not be Transferred to a Person that is not a member of the Purchaser Group.

 

The
Plan shall provide that in addition to the covenants provided in the
Non-Control Agreement, at the time of an underwritten offering of equity or
convertible securities by the Company on or prior to the 30th day after the
Effective Date, to the extent reasonably requested in connection with such
offering by UBS or any other managing underwriter selected by the Company, each
Purchaser and the other members of the Purchaser Group will covenant and agree
that it does not currently intend to, and will not, sell, transfer or dispose
of (each, a “Transfer”) any Shares for a period of time not to exceed
120 days from the date of completion of the offering without the consent of the
representatives of such underwriter; provided, however, that a Purchaser
or member of its Purchaser Group may Transfer its Shares in such amounts, and
at such times, as Fairholme, as such Purchaser’s or Purchaser Group members’
manager, determines after the Closing Date to be in such Purchaser’s or
Purchaser Group members’ best interests in light of its then current
circumstances and the laws and regulations applicable to it as a management
investment company registered under the Investment Company Act of 1940, as
amended, with a policy of qualifying as a “regulated investment company”
as defined in Subchapter M of the Internal Revenue Code of 1986, as amended.

 

SECTION 6.5 
[Intentionally Omitted.]

 

SECTION 6.6 
REIT Representations and Covenants.  At such times as shall be reasonably
requested by the Company, for so long as any Purchaser (or, to the extent
applicable, its Affiliates, members or Affiliates of members) “beneficially
owns” or “constructively owns” (as such terms are defined in the
certificate of incorporation of the Company) in excess of the relevant
ownership limit set forth in the certificate of incorporation of the Company of
the outstanding Common Stock or New Common Stock, such Purchaser shall (and, to
the extent applicable, cause its Affiliates, members or Affiliates of members
to) use reasonable best efforts to provide the Company with customary
representations and covenants, in the form attached hereto as Exhibit D
which shall, among other things, enable the Company to waive Purchaser from the
ownership limit set forth in the certificate of incorporation of the Company
and ensure that the Company can appropriately monitor any “related party
rent” issues raised by the 

 

42

 

Warrants
and the purchase of the Shares by such Purchaser, it being understood that
Purchaser’s Affiliates, members or Affiliates of members shall be required to
provide such representations and covenants only if such Person “beneficially
owns” or “constructively owns” (as such terms are defined in the
certificate of incorporation of the Company) Common Stock or New Common Stock
in excess of the relevant ownership limit set forth in the certificate of
incorporation of the Company or any stock or other equity interest owned by
such Person in a tenant of the Company would be treated as constructively owned
by the Company.

 

SECTION 6.7 
Non-Control Agreement.  At
or prior to the Closing, The Fairholme Fund shall enter into the Non-Control
Agreement with the Company.

 

SECTION 6.8 
[Intentionally Omitted.]

 

SECTION 6.9 
Additional Backstop.

 

(a)           If
the Company requests the Initial Investors, in writing, at any time prior to
fifteen (15) days before the commencement of solicitation of acceptances of the
Plan, each Initial Investor agrees that it shall, severally but not jointly and
severally, provide or cause a designee to provide its pro rata share of a
backstop for new bonds, loans or preferred stock (as determined by the Initial
Investor) in an aggregate amount equal to $1,500,000,000 less the Reinstated
Amounts, at a market rate and market commitment fees, and otherwise on terms
and conditions to be mutually agreed among the Initial Investors and the
Company.  Any such notice shall be revocable
by the Company in its sole discretion. 
The new bonds, loans or preferred stock would require no mandatory
interim cash principal payments prior to the third anniversary of issuance
(unless funded from committed junior indebtedness or junior preferred stock),
and would yield proceeds to the Company on the Closing Date net of OID of at
least $1,500,000,000 less the Reinstated Amounts.  Any Initial Investor may at any time
designate in writing one or more financial institutions with a corporate investment
grade credit rating (from S&P or Moody’s) to make a substantially similar
undertaking as that provided herein and, upon the receipt of such an
undertaking by the Company in form and substance reasonably satisfactory to the
Company, such Initial Investor shall be released from its obligations under its
applicable Investment Agreement.

 

(b)           For
the purposes of Section 6.9(a), the “pro rata share” or “pro
rata basis” of each Initial Investor shall be determined in accordance with
the maximum number of shares of New Common Stock each Initial Investor has
committed to purchase at Closing pursuant to its Investment Agreement as of the
date hereof, but excluding any shares of New Common Stock the Brookfield
Investor or the Pershing Purchasers have committed to purchase pursuant to
Section 6.9 of the other Investment Agreements.

 

ARTICLE VII

 

CONDITIONS TO THE OBLIGATIONS OF
PURCHASER

 

SECTION 7.1 
Conditions to the Obligations of Purchaser.  The obligation of each Purchaser to purchase
the Shares and the GGO Shares pursuant to this Agreement on the Closing 

 

43

 

Date
is subject to the satisfaction (or waiver (to the extent permitted by
applicable Law) by such Purchaser) of the following conditions as of the
Closing Date:

 

(a)           No
Injunction.  No judgment, injunction,
decree or other legal restraint shall prohibit the consummation of the Plan or
the transactions contemplated by this Agreement.

 

(b)           Regulatory
Approvals; Consents.  All permits,
consents, orders, approvals, waivers, authorizations or other permissions or
actions of third parties and Governmental Entities required for the
consummation of the transactions contemplated by this Agreement and the Plan
shall have been made or received, as the case may be, and shall be in full
force and effect, except for those permits, consents, orders, approvals,
waivers, authorizations or other permissions or actions the failure of which to
make or receive would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect (it being agreed that any permit,
consent, order, approval, waiver, authorization or other permission or action
in respect of any Identified Asset for which any of the alternatives in Section 2.1(a) shall
have been employed shall be deemed hereunder to have been made or received, as
the case may be, and in full force and effect).

 

(c)           Representations
and Warranties and Covenants.  Except
for changes permitted or contemplated by this Agreement or the Plan Summary
Term Sheet, each of (i) the representations and warranties of the Company
contained in Section 3.1, Section 3.2, Section 3.3,
Section 3.5, Section 3.20(a) (except for such
inaccuracies in Section 3.20(a) caused by sales, purchases or
transfers of assets which have been effected in accordance with, subject to the
limitations contained in, and not otherwise prohibited by, the terms and
conditions in this Agreement, including, without limitation, this Article VII)
and Section 3.23 shall be true and correct at and as of the Closing
Date as if made at and as of the Closing Date (except for representations and
warranties made as of a specific date, which shall be true and correct only as
of such specific date), (ii) the representations and warranties of the
Company contained in Section 3.4 shall be true and correct (except
for de minimis inaccuracies) at and as of
the Closing Date as if made at and as of the Closing Date (except for
representations and warranties made as of a specific date, which shall be true
and correct (except for de minimis
inaccuracies) only as of such specific date) and (iii) the other
representations and warranties of the Company contained in this Agreement,
disregarding all qualifications and exceptions contained therein relating to “materiality”
or “Material Adverse Effect”, shall be true and correct at and as of the
Closing Date as if made at and as of the Closing Date (except for
representations and warranties made as of a specified date, which shall be true
and correct only as of the specified date), except for such failures to be true
and correct that, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect (it being agreed that the condition
in this subclause (iii) as it relates to undisclosed liabilities of the
Company and its Subsidiaries comprised of Indebtedness shall be deemed to be
satisfied if the condition in Section 7.1(p) is
satisfied.  In addition, for purposes of this Section 7.1(c) as it
relates to Section 3.20(b) of this Agreement, the reference to
“DIP Loan” in clause (i) of such Section 3.20(b) shall be
deemed to refer to that certain Senior Secured Debtor in Possession Credit,
Security and Guaranty Agreement, dated as of July 23, 2010, by and among
the Company, GGP Limited Partnership, the lenders party thereto, Barclays
Capital, as the Sole Arranger, Barclays Bank PLC, as the Administrative Agent
and Collateral Agent, and the guarantors party thereto (the “New DIP
Agreement”).  The Company shall have complied in all
material respects with all of its obligations under this 

 

44

 

Agreement,
provided that with respect to its obligations under Section 5.14(a),
Section 5.14(b) (to the extent applicable) and Section 5.14(c) the
Company shall have complied therewith in all respects.  The Company shall have provided to each
Purchaser a certificate delivered by an executive officer of the Company,
acting in his or her official capacity on behalf of the Company, to the effect
that the conditions in this clause (c) and the immediately following
clause (d) have been satisfied as of the Closing Date and each Purchaser
shall have received such other evidence of the conditions set forth in this Section 7.1
as it shall reasonably request.

 

(d)           No
Material Adverse Effect.  Since the
date of this Agreement, there shall not have occurred any event, fact or
circumstance, that has had or would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

 

(e)           Plan
and Confirmation Order.  The Plan, in
form and substance satisfactory to each Purchaser, shall have been confirmed by
the Bankruptcy Court by order in form and substance satisfactory to each
Purchaser (the “Confirmation Order”), which Confirmation Order shall be
in full force and effect (without waiver of the 14-day period set forth in
Bankruptcy Rule 3020(e)) as of the Effective Date and shall not be subject
to a stay of effectiveness. 
Notwithstanding anything to the contrary in the Plan Term Sheet, the
Plan shall have allowed the Specified Debt in an amount no less than par plus
unpaid pre-petition and post-petition interest accrued at the stated
non-default rate (or contract rate in the case of Class M).

 

(f)            Disclosure
Statement.  The Disclosure Statement,
in form and substance acceptable to each Purchaser, shall have been approved by
order of the Bankruptcy Court in form and substance satisfactory to each
Purchaser (the “Disclosure Statement Order”).

 

(g)           Conditions
to Confirmation.  The conditions to
confirmation and the conditions to the Effective Date of the Plan, including
the consummation of the transactions contemplated by Exhibit B,
shall have been satisfied or waived in accordance with the Plan and the
Reorganized Company Organizational Documents as set forth in the Plan shall be
in effect.

 

(h)           GGO.  The GGO Share Distribution and the issuance
by GGO of the GGO Warrants shall have occurred in accordance with this
Agreement. In connection with the implementation of the GGO Share
Distribution, (i) the Company shall have provided each Purchaser with
reasonable access to all relevant information and consulted and cooperated in
good faith with each Purchaser and the GGO Representative with respect to the
contribution of the Identified Assets to GGO in accordance with Section 2.1(a),
and (ii) all actions taken by the Company and its Subsidiaries related
thereto and all documentation related to the formation and organization of GGO,
the implementation of the GGO Share Distribution, to separate the business of
the Company and GGO and other intercompany arrangements between the Company and
GGO, in each case, shall be reasonably satisfactory to each Purchaser and shall
be in full force and effect.

 

(i)            GGO
Common Stock.  GGO shall not have
issued and outstanding on a Fully Diluted Basis immediately following the
Closing more than the GGO Common Share Amount of shares of GGO Common Stock
(plus (A) an aggregate 5,250,000 shares issuable to the respective Initial
Investors pursuant to the respective Investment Agreements, (B) 2,000,000
shares of GGO Common Stock issuable upon exercise of the GGO Warrants,
(C) 6,000,000 shares of GGO 

 

45

 

Common
Stock issuable upon the exercise of warrants that may be issued to the other
Initial Investors pursuant to the other Investment Agreements).

 

(j)            Valid
Issuance.  The Shares, Warrants, New
Warrants and GGO Warrants and the GGO Shares shall be validly issued to each
Purchaser (against payment therefor in the case of the Shares and the GGO
Shares).  The Company and GGO shall have
executed and delivered the warrant agreement for each of the New Warrants and
the GGO Warrants, together with such other customary documentation as each
Purchaser may reasonably request in connection with such issuance; each warrant
agreement shall be in full force and effect and neither the Company nor GGO
shall be in breach of any representation, warranty, covenant or agreement
thereunder in any material respect.

 

(k)           No
Legal Impediment to Issuance.  No
action shall have been taken and no statute, rule, regulation or order shall
have been enacted, adopted or issued by any federal, state or foreign
governmental or regulatory authority that prohibits the issuance or sale of,
pursuant to this Agreement, the Shares, the issuance of Warrants, New Warrants,
GGO Shares, GGO Warrants, the issuance of New Common Stock upon exercise of the
New Warrants or the issuance of GGO Common Stock upon exercise of the GGO
Warrants; and no injunction or order of any federal, state or foreign court
shall have been issued that prohibits the issuance or sale, pursuant to this
Agreement, of the Shares, the GGO Shares, the Warrants, New Warrants, GGO
Warrants, the issuance of New Common Stock upon exercise of the New Warrants or
the issuance of GGO Common Stock upon exercise of the GGO Warrants.

 

(l)            Registration
Rights.  The Company shall have filed
with the SEC and the SEC shall have declared effective, as of Closing, to the
extent permitted by applicable SEC rules, a shelf registration statement on
Form S-1 or Form S-11, as applicable, covering the resale by each
Purchaser and member of the Purchaser Group of the Shares, any securities
issued pursuant to Section 6.9(a) and the New Common Stock
issuable upon exercise of the New Warrants, containing a plan of distribution
reasonably satisfactory to each Purchaser. 
In addition, each of the Company and GGO shall have entered into
registration rights agreements with each Purchaser with respect to all
registrable securities issued to or held by members of the Purchaser Group from
time to time in a manner that permits the registered offering of securities
pursuant to such methods of sale as a Purchaser may reasonably request from
time to time.  Each registration rights
agreement shall provide for (i) an unlimited number of shelf registration
demands on Form S-3 to the extent that the Company or GGO, as applicable,
is then permitted to file a registration statement on Form S-3,
(ii) if the Company or GGO, as applicable, is not eligible to use
Form S-3, the filing by the Company or GGO, as applicable, of a
registration statement on Form S-1 or Form S-11, as applicable, and
the Company or GGO, as applicable, using its reasonable best efforts to keep
such registration statement continuously effective; (iii) piggyback rights
not less favorable than those provided in the Warrant Agreement; (iv) with
respect to the Company, at least three underwritten offerings during the term
of the registration rights agreement, but not more than one underwritten
offering in any 12-month period and, with respect to GGO, at least three
underwritten offerings during the term of the registration rights agreement,
but not more than one in any 12-month period; (v) “black-out”
periods not less favorable than those provided in the Warrant Agreement;
(vi) “lock-up” agreements by the Company or GGO, as applicable, to
the extent requested by the managing underwriter in any underwritten public
offering requested by a Purchaser, consistent with those provided in the
Warrant Agreement (it being understood 

 

46

 

that
the registration rights agreement will include procedures reasonably acceptable
to such Purchaser and the Company designed to ensure that the total number of
days that the Company or GGO, as applicable, may be subject to a lock-up shall
not, in the aggregate after taking into account any applicable lock-up periods
resulting from registration rights agreements between the Company or GGO, as
applicable, and the other Initial Investors exceed 120 days in any 365-day
period; (vii) to the extent that the Purchasers and the members of the
Purchaser Group are Affiliates of the Company or GGO, as applicable, at the
time of an underwritten public offering by the Company or GGO, as applicable,
each Purchaser and the other members of the Purchaser Group will agree to a
60-day customary lock up to the extent requested by the managing underwriter;
and (viii) other terms and conditions reasonably acceptable to each
Purchaser.  The registration rights agreement
shall be in full force and effect and neither the Company nor GGO shall be in
breach of any representation, warranty, covenant or agreement thereunder in any
material respect.

 

(m)          Listing.  The Shares shall be authorized for listing on
the NYSE, subject to official notice of issuance, and the shares of New Common
Stock issuable upon exercise of the New Warrants shall be eligible for listing
on the NYSE.  The GGO Shares shall be
authorized for listing on a U.S. national securities exchange, subject to official
notice of issuance, and the shares of GGO Common Stock issuable upon exercise
of the GGO Warrants shall be eligible for listing on a U.S. national securities
exchange.

 

(n)           Liquidity.  The Company shall have, on the Effective Date
and after giving effect to the use of proceeds from Capital Raising Activities
permitted under this Agreement and the issuance of the Shares, and the payment
and/or reserve for all allowed and disputed claims under the Plan, transaction
fees and other amounts required to be paid in cash or Shares under the Plan as
contemplated by the Plan Summary Term Sheet, an aggregate amount of not less
than $350,000,000 of Proportionally Consolidated Unrestricted Cash (the “Liquidity
Target”) plus the net proceeds of the Additional Financings and the
aggregate principal amount of the Anticipated Debt Paydowns (or such higher
number as may be agreed to by each Purchaser and the Company) plus the excess,
if any, of (A) the aggregate principal amount of New Debt and the
Reinstated Amounts over (B) $1,500,000,000.

 

(o)           [Intentionally
Omitted.]

 

(p)           Debt
of the Company.  Immediately
following the Closing after giving effect to the Plan, the aggregate
outstanding Proportionally Consolidated Debt shall not exceed $22,250,000,000
in the aggregate minus (i) the amount of Proportionally Consolidated Debt
attributable to assets sold, returned, abandoned, conveyed, transferred or
otherwise divested during the period between the date of this Agreement through
the Closing and minus (ii) the excess, if any, of $1,500,000,000 over the
aggregate principal amount of new Unsecured Indebtedness incurred after the
date of this Agreement and on or prior to the Closing Date for cash (“New
Debt”) and the aggregate principal amount of any Debt under the Rouse Bonds
or the Exchangeable Notes that is reinstated under the Plan (such amounts
reinstated, the “Reinstated Amounts”) minus (iii) the amount of
Proportionally Consolidated Debt attributable to Identified Assets contributed
to GGO pursuant to Section 2.1(a), minus (iv) the amount of
Proportionally Consolidated Debt attributable to assets other than Identified
Assets contributed to GGO pursuant to Section 2.1(a) minus
(v) the principal and/or liquidation preference of the 

 

47

 

TRUPS
and the UPREIT Units not reinstated, plus (vi) in the event the Closing
occurs prior to September 30, 2010, the amount of scheduled amortization
on Proportionally Consolidated Debt (other than Corporate Level Debt) from the
Closing Date to September 30, 2010 that otherwise would have been paid by
September 30, 2010, minus (vii) in the event the Closing occurs on or
after September 30, 2010, the amount of actual amortization paid on
Proportionally Consolidated Debt (other than Corporate Level Debt) from
September 30, 2010 to the Closing Date, plus (viii) (A) the
excess of the aggregate principal amount of new Debt incurred to refinance
existing Debt in accordance with Section 7.1(r)(vii) hereof
over the principal amount of the Debt so refinanced and (B) new Debt
incurred to finance unencumbered Company Properties and Non-Controlling
Properties after the date of this Agreement and on or prior to the Closing
(such amounts contemplated by clauses (A) and (B) collectively, the “Additional
Financing”) plus (ix) the amount of other principal paydowns,
writedowns and resulting impact on amortization (or payments in the anticipated
amortization schedule with respect to Fashion Show Mall (Fashion Show Mall
LLC), The Shoppes at the Palazzo and Oakwood Shopping Center (Gretna, LA))
currently anticipated to be made by the Company in connection with
refinancings, or completion of negotiations in respect of its property level
Debt which the Company determines in good faith are not actually required to be
made prior to Closing (“Anticipated Debt Paydowns”) plus (x) the
excess, if any, of (A) the aggregate principal amount of New Debt and the
Reinstated Amounts over (B) $1,500,000,000 plus (xi) the aggregate
amount of the Bridge Notes (as defined in the Pershing Agreement) issued pursuant
to Section 1.4 of the Pershing Agreement (and the parties agree that such
Bridge Notes shall not be included in the calculation of Closing Date Net Debt
or Closing Date Net Debt W/O Reinstatement Adjustment).

 

(q)           Outstanding
Common Stock.  The
number of issued and outstanding shares of New Common Stock on a Fully Diluted
Basis (including the Shares) shall not exceed the Share Cap Number.  The “Share Cap Number” means
1,104,683,256 plus the number of shares (if any) issued to settle or otherwise
satisfy Hughes Heirs Obligations, plus up to 65,000,000 shares of New Common
Stock issued in Liquidity Equity Issuances, plus 42,857,143 shares of New
Common Stock issuable upon the exercise of the New Warrants, plus the shares of
New Common Stock issuable upon the exercise of those certain warrants issued to
the Brookfield Consortium Members pursuant to the Brookfield Agreement and to
the Pershing Purchasers pursuant to the Pershing Agreement, plus the number of
shares of Common Stock issued as a result of the exercise of employee stock
options to purchase Common Stock outstanding on the date hereof, plus, in the
event shares of New Common Stock are issued pursuant to Section 6.9 of
the other Investment Agreements, the difference between (i) the number of
shares of New Common Stock issued to existing holders of Common Stock, the
Brookfield Investor and the Pershing Purchasers, in each case, pursuant to Section 6.9
of the other Investment Agreements minus (ii) 50,000,000 shares of New
Common Stock, minus the number of Put Shares (as defined in the Pershing
Agreement) under the Pershing Agreement (which shall not be considered Share
Equivalents for purposes of this calculation); provided, that if
Indebtedness under the Rouse Bonds or the Exchangeable Notes is reinstated
under the Plan, or the Company shall have incurred New Debt, or between the
date of this Agreement and the Closing Date the Company shall have sold for
cash real property assets outside of the ordinary course of business (“Asset
Sales”), the Share Cap Number shall be reduced by the quotient (rounded up
to the nearest whole number) obtained by dividing (x) the sum of
(a) the lesser of (I) $1,500,000,000 and (II) the sum of
Reinstated Amounts and the net cash proceeds to the Company from the 

 

48

 

issuance
of New Debt, and (b) the net cash proceeds to the Company from Asset Sales
in excess of $150,000,000 by (y) the Per Share Purchase Price.

 

(r)            Conduct
of Business.  The following shall be
true in all material respects as of the Closing Date:

 

Except
as otherwise expressly provided or permitted, or contemplated, by this
Agreement or the Plan Summary Term Sheet (including, without limitation, in
connection with implementing the matters contemplated by Article II
hereof) or any order of the Bankruptcy Court in effect on the date of the
Agreement, during the period from the date of this Agreement to the Closing,
the following actions shall not have been taken without the prior written
consent of each Purchaser (which consent such Purchaser agrees shall not be
unreasonably withheld, conditioned or delayed):

 

(i)                                     the Company
shall not have (A) declared, set aside or paid any dividends on, or made
any other distributions in respect of, any of the Company’s capital stock
(other than dividends required to retain REIT status or to avoid the imposition
of entity level taxes, (B) split, combined or reclassified any of its
capital stock or issued or authorized the issuance of any other securities in
respect of, in lieu of or in substitution for its capital stock, or
(C) purchased, redeemed or otherwise acquired (other than as set forth on Section 7.1(r)(i) of
the Company Disclosure Letter or pursuant to Company Benefit Plans) any shares
of its capital stock or any rights, warrants or options to acquire any such
shares;

 

(ii)                                  the Company
shall not have amended the Company’s certificate of incorporation or bylaws
other than to increase the authorized shares of capital stock;

 

(iii)                               neither the
Company nor any of its Subsidiaries shall have acquired or agreed to acquire by
merging or consolidating with, or by purchasing a substantial portion of the
stock, or other ownership interests in, or substantial portion of assets of, or
by any other manner, any business or any corporation, partnership, association,
joint venture, limited liability company or other entity or division thereof
except (A) in the ordinary course of business, (B) for transactions
with respect to joint ventures existing on the date hereof valued at less than
$10,000,000 or (C) for transactions valued at less than $10,000,000 in the
aggregate;

 

(iv)                              none of the
Company Properties, Non-Controlling Properties or Identified Assets shall have
been sold or otherwise transferred, except, (A) in the ordinary course of
business, (B) to a wholly owned Subsidiary of the Company (which
Subsidiary shall be subject to the same restrictions under this subsection
(iv)), and (C) for sales or other transfers, the net proceeds 

 

49

 

of which shall not exceed $1,000,000,000 in the
aggregate, when taken together with all such sales and other transfers of
Company Properties, Non-Controlling Properties and Identified Assets (the “Sales
Cap”); provided that the Sales Cap shall not apply with respect to sales or
transfers of Identified Assets to the extent the same shall have been
consummated in accordance with the express terms and conditions set forth in Article II
hereof;

 

(v)                                 [Intentionally
Omitted;]

 

(vi)                              (vi) none
of the Company or any of its Subsidiaries shall have issued, delivered,
granted, sold or disposed of any Equity Securities (other than
(A) issuances of shares of Common Stock issued pursuant to, and in
accordance with, Section 7.1(u), but subject to
Section 7.1(q), (B) pursuant to the Equity Exchange, (C) the
issuance of shares pursuant to the exercise of employee stock options issued
pursuant to the Company Option Plans, (D) as set forth on Section 7.1(u) of
the Company Disclosure Letter), or (E) the issuance of shares to existing
holders of Common Stock, the Brookfield Investor and the Pershing Purchasers,
in each case, pursuant to Section 6.9 of the other Investment Agreements);

 

(vii)                           none of the
Company Properties or Identified Assets shall have been mortgaged, or pledged,
nor shall the owner or lessee thereof have granted a lien, mortgage, pledge,
security interest, charge, claim or other Encumbrance relating to debt
obligations of any kind or nature on, or otherwise encumbered, any Company
Property or Identified Assets except in the ordinary course of business
consistent with past practice, other than encumbrances of Company Properties or
Identified Assets of Debtors in connection with (A) a restructuring of
existing indebtedness for borrowed money related to any such Company Property or
Identified Asset with the existing lender(s) thereof or (B) a
refinancing of existing indebtedness for borrowed money related to any Company
Property or Identified Asset in an amount not to exceed $300,000,000 (the “Refinance
Cap”), provided that (x) the Refinance Cap shall not apply to a
refinancing of the existing first lien indebtedness secured by the Fashion Show
Mall, (y) in the event that a refinancing is secured by mortgages, deeds
of trust, deeds to secure debt or indemnity deeds of trust encumbering multiple
Company Properties and Identified Assets, the proceeds of such refinancing
shall not exceed an amount equal to the Refinance Cap multiplied by the number
of Company Properties and Identified Assets so encumbered, and (z) in
connection with refinancing the indebtedness of a Company Property or
Identified Asset owned by a Joint Venture, the Refinance Cap shall apply with
respect to the aggregate share of such indebtedness which is allocable to, or
guaranteed by (but without duplication), the Company and/or its Subsidiaries;

 

50

 

(viii)                        none of the
Company or any of its Subsidiaries shall have undertaken any capital
expenditure that is out of the ordinary course of business consistent with past
practice and material to the Company and its Subsidiaries taken as a whole,
except as contemplated in the Company’s business plan for fiscal year 2010
adopted by the board of directors of the Company prior to the date hereof; or

 

(ix)                                the Company
shall not have changed any of its methods, principles or practices of financial
accounting in effect, other than as required by GAAP or regulatory guidelines
(and except to implement purchase accounting and/or “fresh start”
accounting if the Company elects to do so).

 

(s)           REIT
Opinion.  Each Purchaser shall have
received an opinion of Arnold & Porter LLP, dated as of the Closing
Date, substantially in the form attached hereto as Exhibit J,
that the Company (x) for all taxable years commencing with the
taxable year ended December 31, 2005 through December 31, 2009, has
been subject to taxation as a REIT and (y) has operated
since January 1, 2010 to the Closing Date in a manner consistent with the
requirements for qualification and taxation as a REIT.

 

(t)            Non-Control
Agreements.  The Company shall have
entered into the Non-Control Agreement with The Fairholme Fund.  The Non-Control Agreement shall be in full
force and effect and the Company shall not be in breach of any representation,
warranty, covenant or agreement thereunder in any material respect.

 

(u)           Issuance
or Sale of Common Stock.  Neither the
Company nor any of its Subsidiaries shall have issued or sold any shares of
Common Stock (or securities, warrants or options that are convertible into or
exchangeable or exercisable for, or linked to the performance of, Common Stock)
(other than (A) pursuant to the Equity Exchange, (B) the issuance of
shares pursuant to the exercise of employee stock options issued pursuant to
the Company Option Plans, (C) as set forth on Section 7.1(u) of
the Company Disclosure Letter or (D) the issuance of shares to existing
holders of Common Stock, the Brookfield Investor and the Pershing Purchasers,
in each case, pursuant to Section 6.9 of the other Investment Agreements),
unless (1) the purchase price (or, in the case of securities that are
convertible into or exchangeable or exercisable for, or linked to the
performance of, Common Stock, the conversion, exchange or exercise price) shall
not be less than $10.00 per share (net of all underwriting and other discounts,
fees and any other compensation; provided, that for purposes hereof,
payments to the Purchasers or the Pershing Purchasers in accordance with Section 1.4
of this Agreement or the Pershing Agreement, respectively, shall not be
considered a discount, fee or other compensation), (2) following such
issuance or sale, (x) no Person (other than (i) an Initial Investor
and their respective Affiliates pursuant to the Investment Agreements and
(ii) any institutional underwriter or initial purchaser acting in an
underwriter capacity in an underwritten offering) shall, after giving effect to
such issuance or sale, beneficially own more than 10% of the Common Stock of
the Company on a Fully Diluted Basis, and (y) no four Persons (other than
the Purchasers, members of the Fairholme Purchaser Group, the members of the
Pershing Purchaser Group, the Brookfield Consortium Members or the Brookfield
Investor) shall, after giving effect to such issuance or sale, beneficially own
more than thirty percent (30%) of the Common Stock on a Fully Diluted Basis; provided,
that this clause (2) shall not be applicable to 

 

51

 

any
conversion or exchange of claims against the Debtors into New Common Stock
pursuant to the Plan; provided, further, that subclause
(y) of this clause (2) shall not be applicable with respect to any
Person listed on Exhibit N and (3) each Purchaser shall have
been offered the right to purchase up to its GGP Pro Rata Share of 15% of such
shares of Common Stock (or securities, warrants or options that are convertible
into or exchangeable or exercisable for Common Stock) on terms otherwise
consistent with Section 5.9 (except the provisions of such Section 5.9
with respect to issuances contemplated by this Section 7.1(u) shall
apply from the date of this Agreement) (provided that the right
described in this clause (3) shall not be applicable to the issuance of
shares or warrants contemplated by the other Investment Agreements, or any
conversion or exchange of debt or other claims into equity in connection with
the Plan).

 

(v)           Hughes
Heirs Obligations.  The Hughes Heirs
Obligations shall have been determined by order of the Bankruptcy Court entered
on or prior to the Effective Date (which order may be the Confirmation Order or
another order entered by the Bankruptcy Court) and satisfied in accordance with
the terms of the Plan.  For the avoidance of doubt, to the extent that holders of Hughes Heirs
Obligations or other Claims against or interests in the Debtors arising under
or related to the Hughes Agreement receive any consideration in respect of such
obligations, Claims or interests under the Plan, there shall be no reduction in
the number of shares of New Common Stock or GGO Common Stock otherwise to have been
distributed on the Effective Date under the Plan in the Equity Exchange or the
GGO Share Distribution, as applicable.

 

(w)          GGO
Promissory Note.  The GGO Promissory
Note, if any, shall have been issued by GGO (or one of its Subsidiaries,
provided that the GGO Promissory Note is guaranteed by GGO) in favor of the
Operating Partnership.

 

(x)            Other
Conditions.  With respect to each
other Initial Investor, either (A) its Investment Agreement shall be in
full force and effect without amendments or modifications (other than those
that are materially no less favorable to the Company than those provided in
such Investment Agreement as in effect on the date hereof), the conditions to
the consummation of the transactions under such Investment Agreement as in effect
on the date hereof to be performed on the Closing Date shall have been
satisfied or waived with the prior written consent of each Purchaser, acting
separately and not jointly, and such Initial Investor shall have subscribed and
paid for such shares of New Common Stock that such Initial Investor is
obligated to purchase thereunder, (B) the funding to be provided by such
Initial Investor under its Investment Agreement shall have been provided by one
or more other investors or purchasers acceptable to each Purchaser on terms and
conditions that such Purchaser has agreed are materially no less favorable to
the Company than the terms and conditions of the applicable Investment
Agreement as in effect on the date hereof or (C) in the case of an Initial
Investor (other than a Brookfield Consortium Member), such Initial Investor has
breached its obligation to fund at Closing when required to do so in accordance
with the terms of its Investment Agreement (it being understood that the
foregoing shall not limit the Company’s right to reduce the Total Purchase
Amount under Section 1.4 hereof).

 

52

 

ARTICLE VIII

 

CONDITIONS TO THE OBLIGATIONS OF
THE COMPANY

 

SECTION 8.1 
Conditions to the Obligations of the Company.  The obligation of the Company to issue the
Shares and the obligation of GGO to issue the GGO Shares pursuant to this
Agreement on the Closing Date are subject to the satisfaction (or waiver by the
Company) of the following conditions as of the Closing Date:

 

(a)           No
Injunction.  No judgment, injunction,
decree or other legal restraint shall prohibit the consummation of the Plan or
the transactions contemplated by this Agreement.

 

(b)           Regulatory
Approvals; Consents.  All permits,
consents, orders, approvals, waivers, authorizations or other permissions or
actions of third parties and Governmental Entities required for the
consummation of the transactions contemplated by this Agreement and the Plan
shall have been made or received, as the case may be, and shall be in full
force and effect, except for those permits, consents, orders, approvals,
waivers, authorizations or other permissions or actions the failure of which to
make or receive would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.

 

(c)           Representations
and Warranties and Covenants.  Each
of (i) the representations and warranties of each Purchaser contained in Section 4.1,
Section 4.2, Section 4.3, and Section 4.12
in this Agreement shall be true and correct at and as of the Closing Date as if
made at and as of the Closing Date (except for representations and warranties
made as of a specific date, which shall be true and correct only as of such
specific date), and (ii) the other representations and warranties of each
Purchaser contained in this Agreement, disregarding all qualifications and
exceptions contained therein relating to “materiality”, shall be true
and correct at and as of the date of this Agreement and at and as of the
Closing Date as if made at and as of the Closing Date (except for
representations and warranties made as of a specified date, which shall be true
and correct only as of the specified date), except for such failures to be true
and correct that, individually or in the aggregate, would not reasonably be
expected to have a material adverse effect on the ability of such Purchaser to
consummate the transactions contemplated by this Agreement.  Each Purchaser shall have complied in all
material respects with all of its obligations under this Agreement.  Each Purchaser shall have provided to the Company
a certificate delivered by an executive officer of the managing member of such
Purchaser, acting in his or her official capacity on behalf of such Purchaser,
to the effect that the conditions in this clause (c) have been satisfied
as of the Closing Date.

 

(d)           Plan
and Confirmation Order.  The Plan
shall have been confirmed by the Bankruptcy Court by order, which order shall
be in full force and effect and not subject to a stay of effectiveness.

 

(e)           Conditions
to Confirmation.  The conditions to
confirmation and the conditions to the Effective Date of the Plan shall have
been satisfied or waived in accordance with the Plan.

 

(f)            GGO.  The GGO Share Distribution shall have
occurred.

 

53

 

(g)           No
Legal Impediment to Issuance.  No
action shall have been taken and no statute, rule, regulation or order shall
have been enacted, adopted or issued by any federal, state or foreign
governmental or regulatory authority that prohibits the issuance or sale of,
pursuant to this Agreement, the Shares, the issuance of Warrants, New Warrants,
GGO Shares, GGO Warrants, the issuance of New Common Stock upon exercise of the
New Warrants or the issuance of GGO Common Stock upon exercise of the GGO
Warrants; and no injunction or order of any federal, state or foreign court
shall have been issued that prohibits the issuance or sale, pursuant to this
Agreement, of the Shares, the GGO Shares, the Warrants, the New Warrants, GGO
Warrants, the issuance of New Common Stock upon exercise of the New Warrants or
the issuance of GGO Common Stock upon exercise of the GGO Warrants.

 

(h)           Reorganization
Opinion.  The Company shall have
received an opinion of Weil, Gotshal & Manges LLP, dated as of the
Closing Date, in form and substance reasonably satisfactory to the Company,
substantially to the effect that, on the basis of the facts, representations
and assumptions set forth in such opinion, the exchange of Common Stock for New
Common Stock in the Equity Exchange should be treated as a reorganization
within the meaning of Section 368(a) of the Code.  In rendering such opinion, Weil,
Gotshal & Manges LLP may require and rely upon representations and
covenants made by the parties to this Agreement.

 

(i)            IRS
Ruling.  The Company shall have
obtained a favorable written ruling from the United States Internal Revenue
Service confirming the qualification of each of the GGO Share Distribution and
the prerequisite internal spin-offs each as a “tax free spin-off” under
the Code.

 

(j)            Funding.  The applicable Purchaser shall have paid to
the Company and GGO, as applicable, all amounts payable by such Purchaser under
Article I and Article II of this Agreement, by wire
transfer of immediately available funds to such account or accounts as shall
have been designated in writing by the Company at least three (3) Business
Days prior to the Closing Date.

 

(k)           REIT
Matters.  The representations and
covenants set forth on Exhibit D in respect of the applicable
Purchaser and, to the extent applicable, its Affiliates, members, Affiliates of
members or designees, shall be true and correct in all material respects as of
the Closing Date as if made at and as of the Closing Date, it being understood
that such Purchaser’s Affiliates, members or Affiliates of members shall be
required to provide such representations and covenants only if such Person “beneficially
owns” or “constructively owns” (as such terms are defined in the
certificate of incorporation of the Company) Common Stock or New Common Stock
in excess of the relevant ownership limit set forth in the certificate of
incorporation of the Company or any stock or other equity interest owned by
such Person in a tenant of the Company would be treated as constructively owned
by the Company.

 

(l)            Non-Control
Agreements.  The Fairholme Fund shall
have entered into the Non-Control Agreement with the Company.  The Non-Control Agreement shall be in full
force and effect and The Fairholme Fund shall not be in breach of any
representation, warranty, covenant or agreement thereunder in any material
respect.

 

54

 

(m)          GGO
Promissory Note.  The GGO Promissory
Note, if any, shall have been issued by GGO (or one of its Subsidiaries,
provided that the GGO Promissory Note is guaranteed by GGO) in favor of the
Operating Partnership.

 

ARTICLE IX

 

[INTENTIONALLY OMITTED]

 

ARTICLE X

 

SURVIVAL OF REPRESENTATIONS AND
WARRANTIES

 

SECTION 10.1 
Survival of Representations and Warranties.  The representations and warranties made in
this Agreement shall survive the execution and delivery of this Agreement but
shall terminate and be of no further force and effect following the earlier of
(i) the termination of this Agreement in accordance with Article XI
and (ii) the Closing.

 

ARTICLE XI

 

TERMINATION

 

SECTION 11.1  Termination.  This Agreement and the
obligations of the parties hereunder shall terminate automatically without any
action by any party if (i) the Company has not filed the Approval Motion
within two (2) Business Days following the date of this Agreement,
(ii) the Approval Order, in form and substance satisfactory to each
Purchaser, approving, among other things, the issuance of the Warrants and the
warrants contemplated by each other Investment Agreement, is not entered by the
Bankruptcy Court on or prior to the date that is 43 days after the date of this
Agreement, (iii) if the Debtors withdraw the Approval Motion, or
(iv) the conditions to the obligations of any other Initial Investor
pursuant to the other Investment Agreements to consummate the closings as set
forth therein are amended or modified in any respect prior to the entry of the
Approval Order, in each of cases (i), (ii), (iii) and (iv) unless
each Purchaser and the Company otherwise agrees in writing.  In addition, this Agreement may be
terminated and the transactions contemplated hereby may be abandoned at any
time prior to the Closing Date:

 

(a)           by
mutual written consent of each Purchaser and the Company;

 

(b)           by
each Purchaser by written notice to the Company upon the occurrence of any of
the following events (which notice shall specify the event upon which such
termination is based):

 

(i)                                     if the
Effective Date and the purchase and sale contemplated by Article I
have not occurred by the Termination Date; provided, however,
that the right to terminate this Agreement under this Section 11.1(b)(i) shall
not be available to any Purchaser if any Purchaser has breached in any material
respect its obligations under this Agreement in any manner that shall have 

 

55

 

proximately caused the Closing Date not to occur on
or before the Termination Date;

 

(ii)                                  if any
Bankruptcy Cases of the Company or any Debtor which is a Significant Subsidiary
shall have been dismissed or converted to cases under chapter 7 of the
Bankruptcy Code or if an interim or permanent trustee or an examiner shall be
appointed to oversee or operate any of the Debtors in their Bankruptcy Cases,
in each case, except (x) as would not reasonably be expected to have a
Material Adverse Effect or (y) with respect to the Bankruptcy Cases for
Phase II Mall Subsidiary, LLC, Oakwood Shopping Center Limited Partnership and
Rouse Oakwood Shopping Center, LLC;

 

(iii)                               if, from and
after the issuance of the Warrants, the Approval Order shall without the prior
written consent of each Purchaser, cease to be in full force and effect
resulting in the cancellation of any Warrants or a modification of any
Warrants, in each case, other than pursuant to their terms, that adversely
affects any Purchaser;

 

(iv)                              if, without a
Purchaser’s consent, the Warrants have not been issued to such Purchaser in
accordance with Section 5.2, or if after the Warrants are issued,
any shares of Common Stock underlying the Warrants cease at any time to be
authorized for issuance on a U.S. national securities exchange;

 

(v)                                 if there has
been a breach by the Company of any representation, warranty, covenant or
agreement of the Company contained in this Agreement or the Company shall have
taken any action which, in each case, (A) would result in a failure of a
condition set forth in Article VII and (B) cannot be cured
prior to the Termination Date, after written notice to the Company of such
breach and the intention to terminate this Agreement pursuant to this Section; provided,
however, that the right to terminate this Agreement under this
Section shall not be available to any Purchaser if any Purchaser has
breached in any material respect its obligations under this Agreement;

 

(vi)                              following the
issuance of the Warrants, if (a) the Company consummates a Competing
Transaction, (b) on or after November 1, 2010, the Company enters
into an agreement or files any pleading or document with the Bankruptcy Court,
in each case, evidencing its decision to support any Competing Transaction, or
(c) the Company files notice of a hearing to confirm a plan of reorganization
that contemplates a Change of Control without such Change of Control being
subject to either (1) the written consent of the holders a majority in
number of the outstanding shares of Common Stock or (2) soliciting the
approval of the holders of a majority in number of the outstanding shares of
Common Stock in accordance with the Bankruptcy Code (in either case, regardless
of whether such approval is obtained) and providing for a period of at least 20
Business Days for 

 

56

 

acceptance or rejection by such holders in
connection with such solicitation;

 

(vii)                           if the Company
or any Subsidiary of the Company issues any shares of Common Stock or New
Common Stock (or securities convertible into or exchangeable or exercisable for
Common Stock or New Common Stock) at a purchase price (or in the case of
securities that are convertible into or exchangeable or exercisable for, or
linked to the performance of, Common Stock or New Common Stock, the conversion,
exchange, exercise or comparable price) of less than $10.00 per share (net of
all underwriting and other discounts, fees and any other compensation and
related expenses; provided, that for purposes hereof, payments to the
Purchasers or the Pershing Purchasers in accordance with Section 1.4
of this Agreement or the Pershing Agreement, respectively, shall not be
considered a discount, fee or other compensation) of Common Stock or New Common
Stock or converts any claim against any of the Debtors into New Common Stock at
a conversion price less than $10.00 per share of Common Stock or New Common
Stock (in each case, other than pursuant to (A) the exercise, exchange or
conversion of Share Equivalents of the Company existing on the date of this
Agreement in accordance with the terms thereof as of the date of this
Agreement, (B) the Equity Exchange, (C) the issuance of shares upon
the exercise of employee stock options issued pursuant to the Company Option
Plans, (D) the issuance of shares as set forth on Section 7.1(u) of
the Company Disclosure Letter, or (E) the issuance of shares to existing
holders of Common Stock, the Brookfield Investor and the Pershing Purchasers,
in each case, pursuant to Section 6.9 of the other Investment Agreements;

 

(viii)                        if the
Bankruptcy Court shall have entered a final and non-appealable order denying
confirmation of the Plan;

 

(ix)                                if this
Agreement, including the Plan Summary Term Sheet, or the Plan, is revised or
modified (except as otherwise permitted pursuant to this Agreement) by the Company
or an order of the Bankruptcy Court or other court of competent jurisdiction in
a manner that is unacceptable to any Purchaser or a plan of reorganization with
respect to the Debtors involving the Transactions that is unacceptable to any
Purchaser is filed by the Debtors with the Bankruptcy Court or another court of
competent jurisdiction;

 

(x)                                   if any
Governmental Entity of competent jurisdiction shall have issued a final and
nonappealable order permanently enjoining or otherwise prohibiting the consummation
of the transactions contemplated by this Agreement (the “Closing Restraint”);

 

(xi)                                prior to the
issuance of the Warrants, if the Company (A) makes a public announcement,
enters into an agreement or files any pleading or document 

 

57

 

with the Bankruptcy Court, in each case, evidencing
its decision to support any Competing Transaction, or (B) the Company or
any Subsidiary of the Company enters into a definitive agreement providing for
a Competing Transaction or the Company provides notice to any Purchaser of the
Company’s or any of its Subsidiaries’ decision to enter into a definitive
agreement providing for a Competing Transaction pursuant to Section 5.7;
or

 

(c)           by
the Company upon the occurrence of any of the following events:

 

(i)                                     if the
Effective Date and the purchase and sale contemplated by Article I
have not occurred by the Termination Date; provided, however,
that the right to terminate this Agreement under this Section 11.1(c)(i) shall
not be available to the Company to the extent that it has breached in any
material respect its obligations under this Agreement in any manner that shall
have proximately caused the Closing Date not to occur on or before the
Termination Date (it being agreed that this proviso shall not limit the
Company’s ability to terminate this Agreement pursuant to Section 11.1(c)(ii) or
any other clause of this Section 11.1(c));

 

(ii)                                  prior to the
entry of the Confirmation Order, upon notice to each Purchaser, for any reason
or no reason, effective as of such time as shall be specified in such notice; provided,
however, that prior to the entry of the Approval Order, the Company
shall not have the right to terminate this Agreement under this Section 11.1(c)(ii) during
the 48 hour notice period contemplated by Section 5.7;

 

(iii)                               if all
conditions to the obligations of each Purchaser to consummate the transactions
contemplated by this Agreement set forth in Article VII shall have
been satisfied (other than those conditions that are to be satisfied (and
capable of being satisfied) by action taken at the Closing if such Purchaser
had complied with its obligations under this Agreement) and the transactions
contemplated by this Agreement fail to be consummated as a result of the breach
by any Purchaser of its obligation to pay to the Company and GGO, as
applicable, all amounts payable by such Purchaser under Article I
and Article II of this Agreement, by wire transfer of immediately
available funds in accordance with the terms of this Agreement; or

 

(iv)                              if a Closing
Restraint is in effect.

 

SECTION 11.2 
Effects of Termination.

 

(a)           In
the event of the termination of this Agreement pursuant to Article XI,
this Agreement shall forthwith become void and there shall be no liability or
obligation on the part of any party hereto except the covenants and agreements
made by the parties herein under Article XIII shall survive
indefinitely in accordance with their terms. 
Except as otherwise expressly 

 

58

 

provided
in the Warrants or paragraph (b) below, the Warrants when issued in
accordance with Section 5.2 hereof and all of the obligations of
the Company under the Warrant Agreement shall survive any termination of this
Agreement.

 

(b)           In
the event of a termination of this Agreement by the Company pursuant to Section 11.1(c)(iii),
the parties agree that the Warrants held by any member of the Purchaser Group
at the time of such termination (but no Warrants held by any other Person if
transferred as permitted hereunder) shall be deemed cancelled, null and void
and of no further effect.  The foregoing
shall be a term of the Warrants.

 

ARTICLE XII

 

DEFINITIONS

 

SECTION 12.1 
Defined Terms.  For
purposes of this Agreement, the following terms, when used in this Agreement
with initial capital letters, shall have the respective meanings set forth in
this Agreement:

 

(a)           “2006
Bank Loan” means that certain Second Amended and Restated Credit Agreement,
dated as of February 24, 2006, by and among the Company, the Operating
Partnership and GGPLP L.L.C., as borrowers, the lenders named therein, Banc of
America Securities LLC, Eurohypo AG, New York Branch and Wachovia Capital
Markets, LLC, as joint arrangers and joint bookrunners, Eurohypo AG, New York
Branch, as administrative agent, Bank of America, N.A. and Wachovia Bank,
National Association, as syndication agents, and Commerzbank AG and Lehman
Commercial Paper, Inc., as co-documentation agents.

 

(b)           “Additional
Sales Period” means in the case of Section 5.9(a)(iv)(A), the
120 day period following the date of the Company’s notice to Purchaser pursuant
to Section 5.9(a)(ii), and in the case of Section 5.9(a)(iv)(B),
the 120 day period following (x) the expiration of the 180 day period
specified in Section 5.9(a)(iii) or (y) if earlier, the
date on which it is finally determined that Purchaser is unable to consummate
such purchase contemplated by Section5.9(a)(iii) within such 180
day period specified in Section 5.9(a)(iii).

 

(c)           “Affiliate”
of any particular Person means any other Person controlling, controlled by or
under common control with such particular Person.  For the purposes of this definition, “control”
means the possession, directly or indirectly, of the power to direct the
management and policies of a Person whether through the ownership of voting
securities, contract or otherwise.

 

(d)           “Brazilian
Entities”  means those certain
Persons in which the Company indirectly owns an interest which own real
property assets or have operations located in Brazil.

 

(e)           “Brookfield
Consortium Member” means Brookfield Asset Management Inc. or any controlled
Affiliate of Brookfield Asset Management Inc. or any Person of which Brookfield
Asset Management Inc. or any Subsidiary or controlled Affiliate of Brookfield
Asset Management Inc. is a general partner, managing member or equivalent
thereof or a wholly owned subsidiary of the foregoing.

 

59

 

(f)            “Business
Day” means any day other than (a) a Saturday, (b) a Sunday,
(c) any day on which commercial banks in New York, New York are required
or authorized to close by Law or executive order.

 

(g)           “Capital
Raising Activities” means the Company’s efforts to consummate equity and
debt financings for the Company, and sales of properties and other assets of
the Company and its Subsidiaries for cash.

 

(h)           “Cash
Equivalents” means as to any Person, (a) securities issued or directly
and fully guaranteed or insured by the United States or any agency or
instrumentality thereof (provided, that the full faith and credit of the
United States is pledged in support thereof) having maturities of not more than
90 days from the date of acquisition by such Person, (b) time deposits and
certificates of deposit of any commercial bank having, or which is the
principal banking subsidiary of a bank holding company organized under the Laws
of the United States, any State thereof or the District of Columbia having
capital, surplus and undivided profits aggregating in excess of $500,000,000,
having maturities of not more than 90 days from the date of acquisition by such
Person, (c) repurchase obligations with a term of not more than 90 days
for underlying securities of the types described in
subsection (a) above entered into with any bank meeting the
qualifications specified in subsection (b) above, (d) commercial
paper issued by any issuer rated at least A-1 by S&P or at least P-1 by
Moody’s or carrying an equivalent rating by a nationally recognized rating
agency, if both of the two named rating agencies cease publishing ratings of
commercial paper issuers generally, and in each case maturing not more than one
year after the date of acquisition by such Person or (e) investments in
money market funds substantially all of whose assets are comprised of securities
of the types described in subsections (a) through (d) above.

 

(i)            “Change
of Control” means any transaction or series of related transactions, in
which, after giving effect to such transaction or transactions, (i) any
Person other than a member of a Purchaser Group of the Pershing Purchasers or
Fairholme Purchasers acquires beneficial ownership (within the meaning of
Rules 13d-3 and 13d-5 promulgated under the Exchange Act), directly or
indirectly, of more than fifty percent (50%) of either (A) the then-outstanding
shares of capital stock of the Company or (B) the combined voting power of
the then-outstanding voting securities of the Company entitled to vote
generally in the election of directors of the Company or (ii) there occurs
a direct or indirect sale, lease, exchange or transfer or other disposition of
all or substantially all of the assets of the Company and its Subsidiaries on a
consolidated basis (including securities of the entity’s directly or indirectly
owned Subsidiaries).

 

(j)            “Claims”
shall have the meaning set forth in section 101(5) of the Bankruptcy Code.

 

(k)           “Closing
Date Net Debt” means, as of the Effective Date but prior to giving effect
to the Plan, the sum of, without duplication:

 

(i)                                     the aggregate
outstanding Proportionally Consolidated Debt plus any accrued and unpaid
interest thereon plus the amount of the New Debt,

 

(ii)                                  less the
Reinstatement Adjustment Amount,

 

60

 

(iii)                               plus the
Permitted Claims Amount,

 

(iv)                              plus the amount
of Proportionally Consolidated Debt attributable to assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, transferred or
otherwise divested during the period between the date of this Agreement and
through the Closing, but excluding any deficiency, guaranty or other similar
claims associated with the Special Consideration Properties (as such term is
defined in the plan of reorganization for the applicable Confirmed Debtor),

 

(v)                                 less
Proportionally Consolidated Unrestricted Cash; provided, however,
that the net proceeds attributable to sales of assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, or otherwise
transferred during the period between the date of this Agreement and through
the Closing shall be deducted prior to subtracting Proportionally Consolidated
Unrestricted Cash.

 

(l)            “Closing
Date Net Debt W/O Reinstatement Adjustment and Permitted Claims Amounts”
means, as of the Effective Date but prior to giving effect to the Plan, the sum
of, without duplication:

 

(i)                                     the aggregate
outstanding Proportionally Consolidated Debt plus any accrued and unpaid
interest thereon plus the amount of the New Debt,

 

(ii)                                  plus the amount
of Proportionally Consolidated Debt attributable to assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, transferred or
otherwise divested during the period between the date of this Agreement and
through the Closing, but excluding any deficiency, guaranty or other similar
claims associated with the Special Consideration Properties (as such term is
defined in the plan of reorganization for the applicable Confirmed Debtor), and

 

(iii)                               less
Proportionally Consolidated Unrestricted Cash; provided, however,
that the net proceeds attributable to sales of assets of the Company, its
Subsidiaries and other Persons in which the Company, directly or indirectly,
holds a minority interest sold, returned, abandoned, conveyed, or otherwise
transferred during the period between the date of this Agreement and through
the Closing shall be deducted prior to subtracting Proportionally Consolidated
Unrestricted Cash.

 

(m)          “Company
Benefit Plan” means each “employee benefit plan” within the meaning
of Section 3(3) of ERISA and each other stock purchase, stock option,
restricted stock, severance, retention, employment, consulting,
change-of-control, collective bargaining, bonus, incentive, deferred
compensation, employee loan, fringe benefit and other benefit plan, 

 

61

 

agreement,
program, policy, commitment or other arrangement, whether or not subject to
ERISA (including any related funding mechanism now in effect or required in the
future), whether formal or informal, oral or written, in each case sponsored or
maintained by the Company or any of its Significant Subsidiaries for the
benefit of any past or present director, officer, employee, consultant or
independent contractor of the Company or any of its Significant Subsidiaries
has any present or future right to benefits.

 

(n)           “Company
Board” means the board of directors of the Company.

 

(o)           “Competing
Transaction”  means, other than the
transactions contemplated by this Agreement or the Plan Summary Term Sheet, or
by the other Investment Agreements, any offer or proposal relating to (i) a
merger, consolidation, business combination, share exchange, tender offer,
reorganization, recapitalization, liquidation, dissolution or similar
transaction involving the Company or (ii) any direct or indirect purchase
or other acquisition by a “person” or “group” of “beneficial ownership” (as
used for purposes of Section 13(d) of the Exchange Act) of, or a
series of transactions to purchase or acquire, assets representing 30% or more
of the consolidated assets or revenues of the Company and its Subsidiaries
taken as a whole or 30% or more of the Common Stock of the Company (or
securities convertible into or exchangeable or exercisable for 30% or more of
the Common Stock of the Company) or (iii) any recapitalization of the
Company or the provision of financing to the Company that shall cause any
condition in Section 7.1 not to be satisfied, in each case, other than the
recapitalization and financing transactions contemplated by this Agreement and
the Plan Summary Term Sheet (or the financing provided by the Initial
Investors) or that will be effected together with the transactions contemplated
hereby.

 

(p)           “Conclusive
Net Debt Adjustment Statement” means a statement that: (i) sets forth
each of the five components of the Closing Date Net Debt (for the avoidance of
doubt, this shall include (x) the Permitted Claims Amount, which shall
include the Reserve, (y) the Reinstatement Adjustment Amount, and
(z) with respect to clauses (i), (iv) and (v) of the definition
of Closing Date Net Debt, the Closing Date Net Debt Amount W/O Reinstatement
Adjustment and Permitted Claims Amounts as determined through the process
provided for in this Agreement shall be used), and (ii) sets forth the Net
Debt Excess Amount or the Net Debt Surplus Amount, as applicable.

 

(q)           “Contract”
means any agreement, lease, license, evidence of indebtedness, mortgage,
indenture, security agreement or other contract.

 

(r)            [Intentionally
Omitted.]

 

(s)           “Corporate
Level Debt” means the debt described in Sections II A, H through O, Q, R,
S, W and X of the Plan Summary Term Sheet plus accrued and unpaid interest
thereon.

 

(t)            “Debt”
means all obligations of the Company, its Subsidiaries and other Persons in
which the Company, directly or indirectly, holds a minority interest
(a) evidenced by (i) notes, bonds, debentures or other similar
instruments (including, for avoidance of doubt, mezzanine debt), or
(ii) trust preferred shares, trust preferred units and other preferred
instruments, and/or (b) secured by a lien, mortgage or other encumbrance; provided,
however, that Debt shall exclude (x) any form of municipal
financing including, but not limited to, special improvement 

 

62

 

district
bonds or tax increment financing, (y) an agreement for the use or possession
of property creating obligations that do not appear on the balance sheet of
such Person but which, upon the insolvency or bankruptcy of such Person, would
be characterized as the indebtedness of such Person (without regard to
accounting treatment), and (z) intercompany notes or preferred interests
between and among the Company and its wholly owned Subsidiaries.

 

(u)           “DIP
Loan” means that certain Senior Secured Debtor in Possession Credit,
Security and Guaranty Agreement, dated as of May 15, 2009, by and among
the lenders named therein, UBS AG, Stamford Branch, as administrative agent for
the lenders, the Company and the Operating Partnership, as borrowers, and the
certain subsidiaries of the Company named therein, as guarantors.

 

(v)           “Disclosure
Statement” means the disclosure statement to accompany the Plan as amended,
modified or supplemented.

 

(w)          “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

(x)            [Intentionally
Omitted.]

 

(y)           “Excess
Surplus Amount” means the sum of: (i) if, after giving effect to the
application of the Reserve Surplus Amount to reduce the principal amount of the
GGO Promissory Note pursuant to Section 5.16(d), any Reserve
Surplus Amount remains, (A) if and to the extent that such Reserve Surplus
Amount is less than or equal to the Net Debt Surplus Amount, 80% of such
remaining Reserve Surplus Amount, and otherwise (B) 100% of the remaining
Reserve Surplus Amount; and (ii) (A) if a GGO Promissory Note is
required to be issued at Closing, 80% of the aggregate Offering Premium, if
any, less the amount of any reduction in the principal amount of the GGO
Promissory Note pursuant to Section 5.16(e) hereof, or
(B) if the GGO Promissory Note is not required to be issued at Closing,
the sum of (x) 80% of the aggregate Offering Premium and (y) 80% of
the excess, if any, of the Net Debt Surplus Amount over the Hughes Amount.

 

(z)            “Exchangeable
Notes” means the 3.98% Exchangeable Senior Notes Due 2027 issued pursuant
to that certain Indenture, dated as of April 16, 2007, by and between the
Operating Partnership, as issuer, and The Bank of New York Mellon Corporation,
as trustee.

 

(aa)         “Excluded
Claims” means:

 

(i)                                     prepetition and
postpetition Claims secured by cashiers’, landlords’, workers’, mechanics’,
carriers’, workmen’s, repairmen’s and materialmen’s liens and other similar
liens,

 

(ii)                                  except with
respect to Claims related to GGO or the assets or businesses contributed
thereto, prepetition and postpetition Claims for all ordinary course trade
payables for goods and services related to the operations of the Company and
its Subsidiaries (including, without limitation, ordinary course obligations to
tenants, anchors, vendors, customers, utility providers or forward contract
counterparties related to utility services, 

 

63

 

employee payroll, commissions, bonuses and benefits
(but excluding the Key Employee Incentive Plan approved by the Bankruptcy Court
pursuant to an order entered on October 15, 2009 at docket no. 3126),
insurance premiums, insurance deductibles, self insured amounts and other
obligations that are accounted for, consistent with past practice prior to the
Petition Date, as trade payables); provided, however, that Claims
or expenses related to the administration and conduct of the Bankruptcy Cases
(such as professional fees and disbursements of financial, legal and other
advisers and consultants retained in connection with the administration and
conduct of the Company’s and its Subsidiaries’ Bankruptcy Cases and other
expenses, fees and commissions related to the reorganization and
recapitalization of the Company pursuant to the Plan, including related to the
Investment Agreements, the issuance of the New Debt, Liquidity Equity Issuances
and any other equity issuances contemplated by this Agreement and the Plan)
shall not be Excluded Claims,

 

(iii)                               except with
respect to Claims related to GGO or the assets or businesses contributed
thereto, Claims and liabilities arising from the litigation or potential litigation
matters set forth in that certain Interim Litigation Report of the Company
dated March 29, 2010 and the Company’s litigation audit response to
Deloitte & Touche dated February 25, 2010, both have been made
available to each Purchaser prior to close of business on March 29, 2010
and other Claims and liabilities arising from ordinary course litigation or
potential litigation that was not included in such schedule solely because the
amount of estimated or asserted liabilities or Claims did not meet the
threshold amount used for the preparation of such schedule, in each case, to
the extent that such Claims and liabilities have not been paid and satisfied as
of the Effective Date, are continuing following the Effective Date, excluding
Claims against or interests in the Debtors arising under or related to the
Hughes Agreement,

 

(iv)                              except with
respect to Claims related to GGO or the assets or businesses contributed
thereto, all tenant, anchor and vendor Claims required to be cured pursuant to
section 365 of the Bankruptcy Code, in connection with the assumption of an
executory contract or unexpired lease under the Plan,

 

(v)                                 any deficiency,
guaranty or other similar Claims associated with the Special Consideration
Properties (as such term is defined in the plans of reorganization for the
applicable Confirmed Debtors),

 

(vi)                              MPC Taxes,

 

(vii)                           surety bond
Claims relating to Claims of the type identified in clauses (i) through
(vi) of this definition,

 

64

 

(viii)                        GGO Setup Costs
(other than professional fees and disbursements of financial, legal and other
advisers and consultants retained in connection with the administration and
conduct of the Company’s and its Subsidiaries’ Bankruptcy Cases), and

 

(ix)                                any liabilities
assumed by GGO and paid on the Effective Date by GGO or to be paid after the
Effective Date by GGO (for avoidance of doubt, this includes any Claims that,
absent assumption of the liability by GGO, would be a Permitted Claim)..

 

(bb)         “Fairholme”
means Fairholme Capital Management, LLC.

 

(cc)         “Fully
Diluted Basis” means all outstanding shares of the Common Stock, New Common
Stock or GGO Common Stock, as applicable, assuming the exercise of all
outstanding Share Equivalents (other than (x) any options issued to an
employee of the Company or its Subsidiaries pursuant to the terms of a Company
Benefit Plan or to an employee of GGO or its Subsidiaries pursuant to the terms
of an employee equity plan of GGO or (y) preferred UPREIT Units) without
regard to any restrictions or conditions with respect to the exercisability of
such Share Equivalents.

 

(dd)         “GAAP”
means generally accepted accounting principles in the United States.

 

(ee)         “GGO
Common Share Amount” means 32,468,326 plus a number (rounded up to the
nearest whole number) equal to 0.1 multiplied by the number of shares of Common
Stock issued on or after the Measurement Date and prior to the record date of
the GGO Share Distribution as a result of the exercise, conversion or exchange
of any Share Equivalents of the Company outstanding on the Measurement Date
into Common Stock and employee stock options issued pursuant to the Company
Option Plans.

 

(ff)           [Intentionally
Omitted.]

 

(gg)         “GGO
Note Amount” means: (i) in the event there is a Net Debt Excess
Amount, the sum of the Net Debt Excess Amount set forth on the Conclusive Net
Debt Adjustment Statement and the Hughes Heirs Obligations to the extent
satisfied with assets of the Company (including cash (but excluding any cash
paid prior to the Effective Date in settlement or satisfaction of Hughes Heirs
Obligations which had the effect of reducing Proportionally Consolidated
Unrestricted Cash for purposes of calculating Closing Date Net Debt, Closing
Date Net Debt W/O Reinstatement Adjustment and Permitted Claims Amounts, and
Net Debt Excess Amount/Net Debt Surplus Amount, as applicable) or shares of New
Common Stock, but excluding Identified Assets) (such amount so satisfied, the “Hughes
Amount”); and (ii) in the event there is a Net Debt Surplus Amount,
the Hughes Amount less 80% of the Net Debt Surplus Amount, provided, that in no
event shall the GGO Note Amount be less than zero.

 

(hh)         “GGO
Promissory Note” means an unsecured promissory note payable by GGO (or one
of its Subsidiaries, provided that the GGO Promissory Note is guaranteed by
GGO) in favor of the Operating Partnership in the aggregate principal amount of
the GGO Note Amount, as adjusted pursuant to Section 5.16(d), Section 5.16(e) and
Section 5.16(g), (i) bearing interest at a rate equal to the
lower of (x) 7.5% per annum and (y) the weighted average effective
rate of 

 

65

 

interest
payable (after giving effect to the payment of any underwriting and all other
discounts, fees and any other compensation) on each series of New Debt issued
in connection with the Plan and (ii) maturing on the fifth anniversary of
the Closing Date (or if such date is not a Business Day, the next immediately
following Business Day), and (iii) including prohibitions on dividends and
distributions, no financial covenants and such other customary terms and
conditions as reasonably agreed to by each Purchaser and the Company.

 

(ii)           “GGO
Pro Rata Share” means, with respect to each Purchaser, the percentage set
forth on Schedule I for such Purchaser.

 

(jj)           [Intentionally
Omitted.]

 

(kk)         “GGO
Setup Costs” means such cash liabilities, costs and expenses as may be
incurred by the Company or its Subsidiaries in connection with the formation
and organization of GGO and the implementation of the GGO Share Distribution,
including any and all liabilities for any sales, use, stamp, documentary,
filing, recording, transfer, gross receipts, registration, duty, securities
transactions or similar fees or Taxes or governmental charges (together with
any interest or penalty, addition to Tax or additional amount imposed) as
levied by any taxing authority, in each case, determined as of the Effective
Date and further including, to the extent the Company or any Subsidiary of the
Company has made or will make a payment to reduce the principal amount of the
mortgage related to 110 N. Wacker Drive, Chicago, Illinois, then 50% of
any such payment or a contractual obligation to make a payment.

 

(ll)           [Intentionally
Omitted.]

 

(mm)       “GGP
Pro Rata Share” means, with respect to each Purchaser, the percentage set
forth on Schedule I for such Purchaser.

 

(nn)         “Governmental
Entity” means any (a) nation, region, state, province, county, city,
town, village, district or other jurisdiction, (b) federal, state, local,
municipal, foreign or other government, (c) governmental or
quasi-governmental authority of any nature (including any governmental agency,
branch, department, court or tribunal, or other entity), (d) multinational
organization or body or (e) body entitled to exercise any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature or any other self-regulatory organizations.

 

(oo)         “Hughes
Agreement” means that certain Contingent Stock Agreement, effective as of
January 1, 1996, by The Rouse Company in favor of and for the benefit of
the Holders (named in Schedule I thereto) and the Representatives (therein
defined), as amended.

 

(pp)         “Hughes
Heirs Obligations” means claims or interests against the Debtors arising
under or relating to sections 2.07 and 2.08 of the Hughes Agreement and
pertaining to the delivery of contingent shares for business units to be valued
as of December 31, 2009 and claims arising out of or related to the
foregoing.

 

(qq)         “Indebtedness”
means, with respect to a Person without duplication, (a) all indebtedness
of such Person for borrowed money, (b) all obligations of such Person for
the deferred purchase price of property (other than trade payables and accrued
expenses incurred in 

 

66

 

the
ordinary course of such Person’s business), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments,
trust preferred shares, trust preferred units and other preference instruments,
(d) all indebtedness created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or lender under such agreement
in the event of default are limited to repossession or sale of such property),
(e) all obligations in respect of capital leases under GAAP of such
Person, (f) all obligations of such Person, contingent or otherwise, as an
account party or applicant under acceptance, letter of credit, surety bond or
similar facilities, (g) the monetary obligations of a Person under
(x) a so-called synthetic, off-balance sheet or tax retention lease, or
(y) an agreement for the use or possession of property creating
obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment) (each, a “Synthetic
Lease Obligation”), (h) guaranties of such Person with respect to
obligations of the type described in clauses (a) through (g) above,
(i) all obligations of other Persons of the kind referred to in clauses
(a) through (h) above secured by any lien on property owned by such
Person, whether or not such Person has assumed or become liable for the payment
of such obligation, (j) the net obligations of such Person in respect of
hedge agreements and swaps and (k) any obligation that, in accordance with GAAP,
would be required to be reflected as debt on the consolidated balance sheet of
such Person.

 

(rr)           “Joint
Venture” means a Subsidiary of the Company which is owned partly by another
Subsidiary of the Company and partly by a third party.

 

(ss)         “Knowledge”
of the Company means the actual knowledge, as of the date of this Agreement, of
the individuals listed on Section 12.1(ss) of the Company
Disclosure Letter.

 

(tt)           “Law”
means any statutes, laws (including common law), rules, ordinances,
regulations, codes, orders, judgments, decisions, injunctions, writs, decrees,
applicable to the Company or any of its Subsidiaries or any Purchaser, as
applicable, or their respective properties or assets.

 

(uu)         “Liquidity
Equity Issuances” means issuances of shares of New Common Stock in the Plan
for cash in an aggregate amount of up to 65,000,000 shares of New Common Stock.

 

(vv)         “Material
Adverse Effect” means any change, event or occurrence which (x) has a
material adverse effect on the results of operations or financial condition of the
Company and its direct and indirect Subsidiaries taken as a whole, other than
changes, events or occurrences (i) generally affecting (A) the retail
mall industry in the United States or in a specific geographic area in which
the Company operates, or (B) the economy, or financial or capital markets,
in the United States or elsewhere in the world, including changes in interest
or exchange rates or the availability of capital, or (ii) arising out of,
resulting from or attributable to (A) changes in Law or regulation or in
generally accepted accounting principles or in accounting standards, or changes
in general legal, regulatory or political conditions, (B) the negotiation,
execution, announcement or performance of any agreement between the Company and/or
its Affiliates, on the one hand, and any Purchaser and/or its Purchaser Group
(or members thereof), on the other hand, or the consummation of the
transactions contemplated hereby or operating performance or 

 

67

 

reputational
issues arising out of or associated with the Bankruptcy Cases, including the
impact thereof on relationships, contractual or otherwise, with tenants,
customers, suppliers, distributors, partners or employees, or any litigation or
claims arising from allegations of breach of fiduciary duty or violation of Law
or otherwise, related to the execution or performance of this Agreement or the
transactions contemplated hereby, including, without limitation, any
developments in the Bankruptcy Cases, (C) acts of war, sabotage or
terrorism, or any escalation or worsening of any such acts of war, sabotage or
terrorism threatened or underway as of the date of the this Agreement,
(D) earthquakes, hurricanes, tornadoes or other natural disasters,
(E) any action taken by the Company or its Subsidiaries as contemplated or
permitted by any agreement between the Company and/or its Affiliates, on the
one hand, and any Purchaser and/or Purchaser Group (or members thereof), on the
other hand, or with each Purchaser’s consent, or any failure by the Company to
take any action as a result of any restriction contained in any agreement
between the Company and/or its Affiliates, on the one hand, and any Purchaser
and/or its Purchaser Group (or any member thereof), on the other hand, or
(F) in each case in and of itself, any decline in the market price, or
change in trading volume, of the capital stock or debt securities of the
Company or any direct or indirect subsidiary thereof, or any failure to meet
publicly announced or internal revenue or earnings projections, forecasts,
estimates or guidance for any period, whether relating to financial performance
or business metrics, including, without limitation, revenues, net operating
incomes, cash flows or cash positions, it being further understood that any
event, change, development, effect or occurrence giving rise to such decline in
the trading price or trading volume of the capital stock or debt securities of
the Company or such failure to meet internal projections or forecasts as
described in the preceding clause (F), as the case may be, may be the cause of
a Material Adverse Effect; so long as, in the case of clauses (i)(A) and
(i)(B), such changes or events do not have a materially disproportionate
adverse effect on the Company and its Subsidiaries, taken as a whole, as
compared to other entities that own and manage retail malls throughout the
United States, or (y) materially impairs the ability of the Company to
consummate the transactions contemplated by this Agreement or perform its
obligations hereunder or under the other agreements executed in connection with
the transactions contemplated hereby.

 

(ww)       “Material
Contract” means, with respect to the Company and its Subsidiaries, any:

 

(i)                                     Contract that
would be considered a material contract pursuant to Item 601(b)(10) of
Regulation S-K promulgated by the SEC, had the Company been the registrant
referred to in such regulation; or

 

(ii)                                  Contract for
capital expenditures, the future acquisition or construction of fixed assets or
the future purchase of materials, supplies or equipment that provides for the
payment by the Company or its Subsidiaries of more than $5,000,000 and is not
terminable by the Company or any of its Subsidiaries by notice of not more than
sixty (60) days for a cost of less than $1,000,000.

 

(xx)          “MPC
Assets” means residential and commercial lots in the “master
planned communities” owned by the Howard Hughes Corporation or The
Hughes Corporation or related to the Emerson Master Planned Community.

 

68

 

(yy)         “MPC
Taxes” means all liability for income Taxes in respect of sales of MPC
Assets sold prior to the date of this Agreement.

 

(zz)          [Intentionally
Omitted.]

 

(aaa)       “Net
Debt Excess Amount” means, the amount, which shall in no event be less than
$0, that is calculated by subtracting the Target Net Debt from the Closing Date
Net Debt (as reflected on the Conclusive Net Debt Adjustment Statement).

 

(bbb)      “Net
Debt Surplus Amount” means, the amount, which shall in no event be less
than $0, that is calculated by subtracting Closing Date Net Debt (as reflected
on the Conclusive Net Debt Adjustment Statement) from the Target Net Debt.

 

(ccc)       “Non-Control
Agreement” means the Non-Control Agreement the form of which is attached
hereto as Exhibit M.

 

(ddd)      “Non-Controlling
Properties” means the Company Properties listed on Section 12.1(ddd)
of the Company Disclosure Letter.  Each
of the Non-Controlling Properties is owned by a Joint Venture in which neither
the Company nor any of its Subsidiaries is a controlling entity.  For purposes of this Section 12.1(ddd),
the term “control” shall mean, possession, directly or indirectly, of
the power to direct the management and policies of a Person whether through the
ownership of voting securities, contract or otherwise; provided, however,
that the rights of any Person to exercise Major Decision Rights under a Joint
Venture shall not constitute or be deemed to constitute “control” for
the purposes hereof.  “Controlling”
and “controlled” shall have meanings correlative thereto.  For purposes of this Section 12.1(ddd),
the term “Major Decision Rights” shall mean, the right to, directly or
indirectly, approve, consent to, veto or exercise a vote in connection with a
Person’s voting or other decision-making authority in respect of the collective
rights, options, elections or obligations of such Person under a Joint Venture.

 

(eee)       “Offering
Premium” means, with respect to any shares of New Common Stock issued for
cash in conjunction with issuances of New Common Stock or Share Equivalents permitted by this Agreement (including any
Liquidity Equity Issuance) and completed prior
to the date that is the last to occur of (x) 45 days after the Effective
Date, (y) the Settlement Date (as defined in the Pershing Agreement), if
applicable, and (z) the Bridge Note Maturity Date (as defined in the
Pershing Agreement), if applicable, the product of
(i) (A) the per share offering price of the shares of New Common
Stock (or offering price of Share Equivalents
corresponding to one underlying share of New Common Stock) issued
(net of all underwriting and other discounts, fees or other compensation, and
related expenses) less (B) the Per Share Purchase Price and (ii) the
number of shares of New Common Stock sold pursuant thereto.  For the purposes hereof, the issuance for
cash of notes mandatorily convertible into New Common Stock on the Effective
Date shall constitute an issuance of the underlying number of shares of New
Common Stock for cash at a price per share offering equal to the offering price
for the corresponding amount of notes.

 

(fff)         “Operating
Partnership” means GGP Limited Partnership, a Delaware limited partnership
and a Subsidiary of the Company.

 

69

 

(ggg)      “Permitted
Claims” means, as of the Effective Date, other than Excluded Claims,
(a) all Claims against the Debtors covered by the Plan (the “Plan
Debtors”) that are classified in those certain classes of Claims described
in Sections II B through E, G and P in the Plan Summary Term Sheet (the “PMA
Claims”), (b) all Claims or other amounts required to be paid pursuant
to the Plan to indenture trustees or similar servicing or administrative
agents, with respect to administrative fees incurred by or reimbursement
obligations owed to such indenture trustees or similar servicing or
administrative agents in their capacity as such under the Corporate Level Debt
documents, (c) any claims of a similar type as the PMA Claims that are or
have been asserted against affiliates of the Plan Debtors that are or were
debtors in the Bankruptcy Cases and for which a plan of reorganization has
already been confirmed (the “Confirmed Debtors”), (d) Claims or
interests against the Debtors arising under or related to the Hughes Agreement
(other than Hughes Heirs Obligations) and (e) surety bond Claims relating
to the types of Claims identified in clauses (a) through (d) of this
definition.

 

(hhh)      “Permitted
Claims Amount” means, as of the Effective Date, an amount equal to the sum
of, without duplication, (a) the aggregate amount of accrued and unpaid
Permitted Claims that have been allowed (by order of the Bankruptcy Court or
pursuant to the terms of the Plan) as of the Effective Date, plus (b) the
aggregate amount of the reserve to be estimated pursuant to the Plan with
respect to accrued and unpaid Permitted Claims that have not been allowed or
disallowed (in each case by order of the Bankruptcy Court or pursuant to the
terms of the Plan) as of the Effective Date (the “Reserve”), plus
(c) the aggregate amount of the GGO Setup Costs (other than professional
fees and disbursements of financial, legal and other advisers and consultants
retained in connection with the administration and conduct of the Company’s and
its Subsidiaries’ Bankruptcy Cases) as of the Effective Date; provided, however,
that there shall be no duplication with any amounts otherwise included in
Closing Date Net Debt.

 

(iii)          “Permitted
Replacement Shares” means shares of New Common Stock, or notes mandatorily
convertible into or exchangeable for shares of New Common Stock, that are sold
for cash proceeds immediately payable to the Company (net of all underwriting
and other discounts, fees, and related consideration) of not less than $10.50
per share of New Common Stock (or in the case of notes, convertible or
exchangeable at not less than $10.50 per share of New Common Stock); provided,
that Permitted Replacement Shares shall not include any New Common Stock sold
to any of the Initial Investors or their Affiliates, except pursuant to the
exercise of Subscription Rights pursuant to this Agreement, the Brookfield
Agreement or the Pershing Agreement (in each case, as defined herein or therein
as applicable).

 

(jjj)          “Person”
means an individual, a group (including a “group” under
Section 13(d) of the Exchange Act), a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization and a Governmental Entity or any
department, agency or political subdivision thereof.

 

(kkk)       “Preliminary
Closing Date Net Debt Review Deadline” means the end of the Preliminary
Closing Date Net Debt Review Period, which date shall be the first business day
that is at least twenty (20) calendar days after delivery of the Preliminary
Closing Date Net Debt Schedule, and which shall be the deadline by which a
Purchaser shall deliver to the Company a Dispute Notice.

 

70

 

(lll)          “Preliminary
Closing Date Net Debt Review Period” means the period between the Company’s
delivery of the Preliminary Closing Date Net Debt Schedule and the Preliminary
Closing Date Net Debt Review Deadline.

 

(mmm)    “Proportionally
Consolidated Debt”  means
consolidated Debt of the Company less (1) all Debt of Subsidiaries of the
Company that are not wholly-owned and other Persons in which the Company,
directly or indirectly, holds a minority interest, to the extent such Debt is
included in consolidated Debt, plus (2) the Company’s share of Debt for
each non-wholly owned Subsidiary of the Company and each other Persons in which
the Company, directly or indirectly, holds a minority interest based on the
company’s pro-rata economic interest in each such Subsidiary or Person or, to
the extent to which the Company is directly or indirectly (through one or more
Subsidiaries or Persons) liable for a percent of such Debt that is greater than
such pro-rata economic interest in such Subsidiary or Person, such larger
amount;  provided, however, for purposes
of calculating Proportionally Consolidated Debt, the Debt of the Brazilian
Entities shall be deemed to be $110,437,781.

 

(nnn)      “Proportionally
Consolidated Unrestricted Cash” means the consolidated Unrestricted Cash of
the Company less (1) all Unrestricted Cash of Subsidiaries of the Company
that are not wholly-owned and Persons in which the Company, directly or
indirectly, owns a minority interest, to the extent such Unrestricted Cash is
included in consolidated Unrestricted Cash of the Company, plus (2) the
Company’s share of Unrestricted Cash for each non-wholly owned Subsidiary of
the Company and Persons in which the Company, directly or indirectly, owns a
minority interest based on the Company’s pro rata economic interest in each
such Subsidiary or Person; provided, however, for purposes of
calculating Proportionally Consolidated Unrestricted Cash, the Unrestricted
Cash of the Brazilian Entities shall be deemed to be $82,000,000, provided,
further, that any distributions of Unrestricted Cash made from the date
of this Agreement to the Closing by Brazilian Entities to the Company or any of
its Subsidiaries shall be disregarded for purposes of calculating
Proportionally Consolidated Unrestricted Cash.

 

(ooo)      “Purchaser
Group”  means, with respect to each
Purchaser, such Purchaser, its investment manager and their respective “controlled
Affiliates”.  For such purpose, one
or more investment funds under common investment management shall constitute “controlled
Affiliates” of their investment manager.

 

(ppp)      “Reinstatement
Adjustment Amount” means the difference resulting from subtracting the
Reinstatement Amount from the aggregate amount of Corporate Level Debt.

 

(qqq)      “Reinstatement
Amount” means the amount of Corporate Level Debt to the extent such obligations
will be reinstated pursuant to the Plan, including, to the extent applicable,
based on the elections of the holders of such Corporate Level Debt prior to the
election deadline established by the Bankruptcy Court.

 

(rrr)         “Reserve
Surplus Amount” means, as of any date of determination, (x) the
Reserve minus (y) the aggregate amount paid with respect to Permitted
Claims through such date of determination to the extent such Permitted Claims
were included in the calculation of the Reserve minus (z) any amount
included in the Reserve with respect to Permitted Claims that the 

 

71

 

Company
Board, based on the exercise of its business judgment and information available
to the Company Board as of the date of determination, considers necessary to
maintain as a reserve against Permitted Claims yet to be paid.

 

(sss)       “Rights
Agreement” means that certain Rights Agreement, dated as of
November 18, 1998, by and between the Company and BNY Mellon Shareowner
Services, as successor to Norwest Bank Minnesota, N.A., as amended on
November 10, 1999, December 31, 2001 and November 18, 2008, and
from time to time.

 

(ttt)         “Rouse
Bonds” means (i) the 6-3/4% Senior Notes Due 2013 issued pursuant to
the Indenture, dated as of May 5, 2006, by and among The Rouse Company LP
and TRC Co-Issuer, Inc., as co-issuers and The Bank of New York Mellon
Corporation, as trustee, and (ii) unsecured debentures issued pursuant to
the Indenture, dated as of February 24, 1995, by and between The Rouse
Company, as issuer, and The Bank of New York Mellon Corporation, as trustee.

 

(uuu)      “Share
Equivalent” means any stock, warrants, rights, calls, options or other
securities exchangeable or exercisable for, or convertible into, shares of
Common Stock, New Common Stock or GGO Common Stock, as applicable.

 

(vvv)      “Significant
Subsidiaries” means the operating Subsidiaries of the Company that
generated revenues in excess of $30,000,000 for the year ended
December 31, 2009.

 

(www)    “Specified
Debt” means Claims in Classes H through N inclusive, in each case as
provided on the Plan Summary Term Sheet.

 

(xxx)        “Subsidiary”
means, with respect to a Person (including the Company), (a) a company a
majority of whose capital stock with voting power, under ordinary circumstances,
to elect a majority of the directors is at the time, directly or indirectly,
owned by such Person, by a subsidiary of such Person, or by such Person and one
or more subsidiaries of such Person, (b) a partnership in which such
Person or a subsidiary of such Person is, at the date of determination, a
general partner of such partnership, (c) a limited liability company of
which such Person, or a Subsidiary of such Person, is a managing member or
(d) any other Person (other than a company) in which such Person, a
subsidiary of such Person or such Person and one or more subsidiaries of such
Person, directly or indirectly, at the date of determination thereof, has
(i) at least a majority ownership interest or (ii) the power to elect
or direct the election of a majority of the directors or other governing body
of such Person.

 

(yyy)      “Target
Net Debt” means $22,970,800,000.

 

(zzz)        “Tax
Protection Agreements” means any written agreement to which the Company,
its Operating Partnership or any other Subsidiary is a party pursuant to which:
(i) in connection with the deferral of income Taxes of a holder of
interests in the Operating Partnership, the Company, the Operating Partnership
or the other Subsidiaries have agreed to (A) maintain a minimum level of
Indebtedness or continue any particular Indebtedness, (B) retain or not
dispose of assets for a period of time that has not since expired,
(C) make or refrain from making Tax elections, and/or (D) only
dispose of assets in a particular manner; and/or (ii) limited partners of
the Operating Partnership have guaranteed Indebtedness of the Operating
Partnership.

 

72

 

(aaaa)     “Termination
Date” means December 31, 2010; provided, that if the
Confirmation Order shall have been entered on or prior to December 15,
2010 but the Company, despite its commercially reasonable efforts, is unable to
consummate the Closing on or prior to December 31, 2010, the Company may
extend the Termination Date for so long as Closing by January 31, 2011 is
feasible and the Company continues to diligently pursue Closing; provided,
further, that the Termination Date shall not be extended beyond
January 31, 2011.

 

(bbbb)    “Transactions”
means the purchase of the Shares and the GGO Shares and the other transactions
contemplated by this Agreement.

 

(cccc)     “TRUPS”
means certain preferred securities issued by GGP Capital Trust I.

 

(dddd)    “Unrestricted
Cash” means all cash and Cash Equivalents of the Company and of the
Subsidiaries of the Company, but excluding any cash or Cash Equivalents that
are controlled by or subject to any lien, security interest or control
agreement, other preferential arrangement in favor of any creditor or otherwise
encumbered or restricted in any way; provided that cash and Cash Equivalents of
the Company and of the Subsidiaries of the Company that are controlled by or
subject to any lien, security interest, control agreement, preferential
arrangement or other encumbrance or restriction pursuant to the New DIP
Agreement shall not be excluded from “Unrestricted Cash.”.

 

(eeee)     “Unsecured
Indebtedness” means all indebtedness of the Company for borrowed money or
obligations of the Company evidenced by notes, bonds, debentures or other
similar instruments that are not secured by a lien on any Company Property or
other assets of the Company or any Subsidiary.

 

(ffff)        “UPREIT
Units” means preferred or common units of limited partnership interests of
the Operating Partnership.

 

ARTICLE XIII

 

MISCELLANEOUS

 

SECTION 13.1 
Notices.  All notices and
other communications in connection with this Agreement shall be in writing and
shall be considered given if given in the manner, and be deemed given at times,
as follows: (x) on the date delivered, if personally delivered;
(y) on the day of transmission if sent via facsimile transmission to the
facsimile number given below, and telephonic confirmation of receipt is
obtained promptly after completion of transmission; or (z) on the next
Business Day after being sent by recognized overnight mail service specifying
next business day delivery, in each case with delivery charges pre-paid and
addressed to the following addresses:

 

(a)           If
to a Purchaser (which shall constitute notice to such Purchaser), to:

 

Fairholme
Capital Management, LLC

4400
Biscayne Boulevard, 9th Floor

Miami,
Florida  33137

 

73

 

	
  Attention:

  	
  Charles M. Fernandez

  
	
  Facsimile:

  	
  (305) 358-8002

  
	
   

  	
   

  
	
  with
  a copy (which shall not constitute notice) to:

  
	
   

  	
   

  
	
  Sullivan &
  Cromwell LLP

  
	
  125
  Broad Street

  
	
  New
  York, New York 10004

  
	
  Attention:

  	
  Andrew
  G. Dietderich, Esq.

  
	
   

  	
  Alan
  J. Sinsheimer, Esq.

  
	
  Facsimile:

  	
  (212)
  558-3588

  
	
   

  	
   

  
	
  Greenberg
  Traurig, LLP

  
	
  401 East Las Olas Boulevard, Suite 2000

  
	
  Fort Lauderdale, Florida 33301

  
	
  Attention:

  	
  Bruce
  I. March, Esq.

  
	
   

  	
  Matthew
  M. Robbins, Esq.

  
	
  Facsimile:

  	
  (954)
  765-1477

  
	
   

  	
   

  
	
  Herrick,
  Feinstein, LLP

  
	
  2
  Park Avenue

  
	
  New
  York, NY 10016

  
	
  Attention:

  	
  Joshua
  J. Angel, Esq.

  
	
   

  	
  John
  Rogers, Esq.

  
	
  Facsimile:

  	
  (212)
  592-1500

  
			

 

(b)           If
to the Company, to:

 

	
  General
  Growth Properties, Inc.

  
	
  110
  N. Wacker Drive

  
	
  Chicago, Illinois
  60606

  
	
  Attention:

  	
  Ronald
  L. Gern, Esq.

  
	
  Facsimile:

  	
  (312)
  960-5485

  
	
   

  	
   

  
	
  with
  a copy (which shall not constitute notice) to:

  
	
  Weil,
  Gotshal & Manges LLP

  
	
  767
  Fifth Avenue

  
	
  New
  York, New York 10153

  
	
  Attention:

  	
  Marcia
  L. Goldstein, Esq.

  
	
   

  	
  Frederick S. Green, Esq.

  
	
   

  	
  Gary T. Holtzer, Esq.

  
	
   

  	
  Malcolm E. Landau, Esq.

  
	
  Facsimile:

  	
  (212) 310-8007

  

 

SECTION 13.2  Assignment; Third Party
Beneficiaries.  Neither
this Agreement nor any of the rights, interests or obligations under this Agreement
may be assigned by any party without the prior written consent of the other
party.  Notwithstanding the previous
sentence, this 

 

74

 

Agreement,
or a Purchaser’s rights, interests or obligations hereunder (including, without
limitation, the right to receive any securities pursuant to the Transactions),
may be assigned or transferred, in whole or in part, by such Purchaser
(a) to one or more members of its Purchaser Group; provided, that
no such assignment shall release such Purchaser from its obligations hereunder
to be performed by such Purchaser on or prior to the Closing Date or
(b) with the prior written consent of the Company, not to be unreasonably
withheld, conditioned or delayed, to one or more credit-worthy financial
institutions who agree in writing to perform the applicable obligations of such
Purchaser hereunder (any assignment under clause (b) to which the Company
has so consented shall release such Purchaser from its obligations hereunder to
the extent of the obligations assigned). 
Without prejudice to the foregoing, the Company agrees that Purchasers
may designate to Blackstone Real Estate Partners VI L.P., a Delaware limited
partnership (together with its permitted assigns, “Blackstone”),  (i) the Purchasers’ right to purchase
20,719,738 of the Shares (the “Blackstone Assigned Shares”) and 100,191
of the GGO Shares (together with the Blackstone Assigned Shares, the “Blackstone
Assigned Securities”), in each case, that the Purchasers are entitled to
purchase at Closing pursuant to this Agreement, (ii) the Purchasers’ right
to receive 1,785,714 of the New Warrants (the “Blackstone Assigned Warrants”)
and 83,333 of the GGO Warrants, in each case, issuable to the Purchasers
pursuant to this Agreement, and (iii) the Purchasers’ right to receive
7.634% of the shares of Common Stock (and other Share Equivalents) which are
offered to the Purchasers pursuant to the Purchasers’ pre-Closing subscription
rights set forth in Section 7.1(u) in the event the Purchasers
elect to purchase the shares offered to them in such offering, provided that
(1) the Company’s agreement as aforesaid is subject to Blackstone
(A) paying to the Company and GGO, as applicable, by wire transfer of
immediately available funds at the Closing the aggregate purchase price payable
pursuant to this Agreement for the Blackstone Assigned Securities (the “Blackstone
Purchase Price”) and the purchase price for shares received by Blackstone
pursuant to clause (iii) above, (B) agreeing in a writing reasonably
satisfactory to, and for the benefit of, the Company that the Blackstone
Assigned Securities shall be subject to such transfer restrictions/lock-ups as
contemplated by Section 6.4 of the Pershing Agreement (and not the longer
lock-ups applicable to shares sold to the Brookfield Investor), including being
subject to a limited 120-day lock-up in connection with certain equity sales
within 30 days of the Effective Date but excluding any restrictions imposed by
the Non-Control Agreement, and (C) entering into joinder agreements
reasonably acceptable to, and for the benefit of, the Company with respect to
the provisions of clause (B) and the registration rights agreement
referred to in the following sentence, and (2) in no event shall any Purchaser
be released from any of its obligations hereunder (including in respect of the
Blackstone Assigned Securities) unless and until Blackstone shall have complied
with clauses (A), (B) and (C) above. 
In the event of the closing of the purchase by Blackstone from the
Company and GGO, as applicable, of the Blackstone Assigned Securities and the
payment by Blackstone to the Company and GGO, as applicable, of the Blackstone
Purchase Price at Closing as aforesaid, (x) the Purchasers shall be
released from the obligation to pay the Company the purchase price for the
Blackstone Assigned Securities (but not from the obligation to pay the purchase
price pursuant to this Agreement for any other Shares or GGO Shares or other
obligations hereunder) and (y) the shelf registration statement
contemplated by Section 7.1(l) of the Pershing Agreement shall cover
the resale by Blackstone of the Blackstone Assigned Shares and the New Common
Stock issuable upon exercise of the Blackstone Assigned Warrants and the registration
rights agreement of the Company referenced in Section 7.1(l) of the
Pershing Agreement shall include Blackstone and its securities to the same
extent as it 

 

75

 

applies
to the Pershing Purchasers and their securities (except that demand
registration rights shall not be available to Blackstone).  Blackstone may assign the foregoing rights,
in whole or in part, to one or more Affiliates, provided that no such
assignment shall release Blackstone Real Estate Partners VI L.P. from any
obligations assigned by a Purchaser to it. 
This Agreement (including the documents and instruments referred to in
this Agreement) is not intended to and does not confer upon any person other than
the parties hereto any rights or remedies under this Agreement.  Notwithstanding the foregoing, or any other
provisions herein to the contrary, no Purchaser may assign any of its rights,
interests or obligations under this Agreement to the extent such assignment
would preclude the applicable securities Laws exemptions from being available
or such assignment would cause a failure of the closing condition in
Section 7.1(u) of the Brookfield Agreement.

 

SECTION 13.3 
Prior Negotiations; Entire Agreement.  This Agreement (including the exhibits hereto
and the documents and instruments referred to in this Agreement) constitutes
the entire agreement of the parties and supersedes all prior agreements,
arrangements or understandings, whether written or oral, between the parties
with respect to the subject matter of this Agreement.

 

SECTION 13.4 
Governing Law; Venue.  THIS
AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK.  EACH
PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF, AND VENUE IN,
THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND
EACH PARTY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS.

 

SECTION 13.5 
Company Disclosure Letter. 
The Company Disclosure Letter shall be arranged to correspond to the
Articles and Sections of this Agreement, and the disclosure in any portion of
the Company Disclosure Letter shall qualify the corresponding provision in Article III
and any other provision of Article III to which it is reasonably
apparent on the face of the disclosure that such disclosure relates.  No disclosure in the Company Disclosure
Letter relating to any possible non-compliance, breach or violation of any
Contract or Law shall be construed as an admission that any such
non-compliance, breach or violation exists or has actually occurred.  In the Company Disclosure Letter,
(a) all capitalized terms used but not defined therein shall have the
meanings assigned to them in this Agreement and (b) the Section numbers
correspond to the Section numbers in this Agreement.

 

SECTION 13.6 
Counterparts.  This
Agreement may be executed in any number of counterparts, all of which shall be
considered one and the same agreement and shall become effective when
counterparts have been signed by each of the parties; and delivered to the
other party (including via facsimile or other electronic transmission), it
being understood that each party need not sign the same counterpart.

 

SECTION 13.7 
Expenses.  Each party shall
bear its own expenses incurred or to be incurred in connection with the
negotiation and execution of this Agreement and each other agreement, document
and instrument contemplated by this Agreement and the consummation of the
transactions contemplated hereby and thereby.

 

76

 

SECTION 13.8 
Waivers and Amendments. 
This Agreement may be amended, modified, superseded, cancelled, renewed
or extended, and the terms and conditions of this Agreement may be waived, only
by a written instrument signed by the parties or, in the case of a waiver, by
the party waiving compliance, and subject, to the extent required, to the
approval of the Bankruptcy Court.  No
delay on the part of any party in exercising any right, power or privilege
pursuant to this Agreement shall operate as a waiver thereof, nor shall any
waiver on the part of any party of any right, power or privilege pursuant to
this Agreement, nor shall any single or partial exercise of any right, power or
privilege pursuant to this Agreement, preclude any other or further exercise
thereof or the exercise of any other right, power or privilege pursuant to this
Agreement.  The rights and remedies
provided pursuant to this Agreement are cumulative and are not exclusive of any
rights or remedies which any party otherwise may have at law or in equity.

 

SECTION 13.9 
Construction.

 

(a)           The
headings in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

 

(b)           Unless
the context otherwise requires, as used in this Agreement:  (i) an accounting term not otherwise
defined in this Agreement has the meaning ascribed to it in accordance with
GAAP; (ii) “or” is not exclusive; (iii) “including” and
its variants mean “including, without limitation” and its variants;
(iv) words defined in the singular have the parallel meaning in the plural
and vice versa; (v) references to “written” or “in writing”
include in visual electronic form; (vi) words of one gender shall be
construed to apply to each gender; (vii) the terms “Article,” “Section,”
and “Schedule” refer to the specified Article, Section, or Schedule of
or to this Agreement; and (viii) the term “beneficially own” shall
have the meaning determined pursuant to Rule 13d-3 under the Exchange Act
as in effect on the date hereof; provided, however, that a Person
will be deemed to beneficially own (and have beneficial ownership of) all
securities that such Person has the right to acquire, whether such right is
exercisable immediately or with the passage of time or the satisfaction of
conditions.  The terms “beneficial
ownership” and “beneficial owner” have correlative meanings.

 

(c)           Notwithstanding
anything to the contrary, and for all purposes of this Agreement, any public
announcement or filing of factual information relating to the business,
financial condition or results of the Company or its Subsidiaries, or a
factually accurate (in all material respects) public statement or filing that
describes the Company’s receipt of an offer or proposal for a Competing Transaction
and the operation of this Agreement with respect thereto, or any entry into a
confidentiality agreement, shall not be deemed to evidence the Company’s or any
Subsidiary’s intention to support any Competing Transaction.

 

(d)           In
the event of a conflict between the terms and conditions of this Agreement and
the Plan Summary Term Sheet, the terms and conditions of this Agreement shall
govern.

 

(e)           Unless
otherwise agreed in writing between the Company and each Purchaser, wherever
this Agreement requires the action by, consent of or delivery to Purchaser,
Purchasers, each Purchaser or similar parties, each Purchaser hereby appoints
Fairholme as its attorney-in-fact to exercise all of the rights of such
Purchaser hereunder (except for the assumption of any funding or related
liabilities or obligations), and the Company may rely on any instructions or 

 

77

 

elections
made by such Person; provided, that any such action by, consent of or
delivery to Fairholme hereunder shall constitute the separate, and not joint,
action by, consent of or delivery to each Purchaser.

 

SECTION 13.10 
Adjustment of Share Numbers and Prices.  The number of Shares to be purchased by each
Purchaser at the Closing pursuant to Article I, the Per Share
Purchase Price, the GGO Per Share Purchase Price, the number of GGO Shares to
be purchased by such Purchaser pursuant to Article II and any other
number or amount contained in this Agreement which is based upon the number or
price of shares of GGP or GGO shall be proportionately adjusted for any
subdivision or combination (by stock split, reverse stock split, dividend,
reorganization, recapitalization or otherwise) of the Common Stock, New Common
Stock or GGO Common Stock that occurs during the period between the date of
this Agreement and the Closing.  In
addition, if at any time prior to the Closing or
the consummation of the repurchase of Repurchase Shares (as defined in the
Pershing Agreement) or the Put Option (as defined in the Pershing Agreement),
as applicable, the Company or GGO shall declare or make a
dividend or other distribution whether in cash or property (other than a
dividend or distribution payable in common stock of the Company or GGO, as
applicable, the GGO Share Distribution or a distribution of rights contemplated
hereby), the Per Share Purchase Price or the GGO Per Share Purchase Price, or the applicable price for the definition of Permitted Replacement Shares, as
applicable, shall be proportionally adjusted thereafter by the Fair Market
Value (as defined in the Warrant Agreement) per share of the dividend or
distribution. If a transaction results in any adjustment to the exercise price
for and number of Shares underlying the Warrants pursuant to Article 5 of
the Warrant Agreement, the exercise price for and number of shares underlying
each of the New Warrants and GGO Warrants described in Section 5.2
of this Agreement shall be adjusted for that transaction in the same manner.

 

SECTION 13.11 
Certain Remedies.

 

(a)           The
parties agree that irreparable damage would occur in the event that any of the
provisions of this Agreement or of any other agreement between them with
respect to the Transaction were not performed in accordance with their specific
terms or were otherwise breached.  It is
accordingly agreed that, in addition to any other applicable remedies at law or
equity, the parties shall be entitled to an injunction or injunctions, without
proof of damages, to prevent breaches of this Agreement or of any other
agreement between them with respect to the Transaction and to enforce
specifically the terms and provisions of this Agreement.

 

(b)           To
the fullest extent permitted by applicable law, the parties shall not assert,
and hereby waive, any claim or any such damages, whether or not accrued and
whether or not known or suspect to exist in its favor, against any other party
and its respective Affiliates, members, members’ affiliates, officers,
directors, partners, trustees, employees, attorneys and agents on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) (whether or not the claim therefor is based on
contract, tort or duty imposed by any applicable legal requirement) arising out
of, in connection with, or as a result of, this Agreement or of any other
agreement between them with respect to the Transaction or the transactions
contemplated hereby or thereby.

 

78

 

(c)           Prior
to the entry of the Confirmation Order, other than with respect to the
Company’s obligations under Section 5.1(c), each Purchaser’s right
to receive the Warrants on the terms and subject to the conditions set forth in
this Agreement shall constitute the sole and exclusive remedy of any nature
whatsoever (whether for monetary damages, specific performance, injunctive
relief, or otherwise) of such Purchaser against the Company for any harm,
damage or loss of any nature relating to or as a result of any breach of this
Agreement by the Company or the failure of the Closing to occur for any reason;
provided, that, following the entry of the Approval Order, each
Purchaser shall be entitled to specific performance of the Company’s obligation
to issue the Warrants as well as the Company’s obligations under Section 5.1(c) hereof.

 

(d)           Following
the entry of the Confirmation Order, each Purchaser shall be entitled to
specific performance of the terms of this Agreement, in addition to any other
applicable remedies at law

 

(e)           The
Company, on behalf of itself and its respective heirs, successors, and assigns,
hereby covenants and agrees never to institute or cause to be instituted or
continue prosecution of any suit or other form of action or proceeding of any
kind or nature whatsoever against any member of any Purchaser or its Purchaser
Group by reason of or in connection with the Transaction; provided, however,
that nothing shall prohibit the Company from instituting an action against any
Purchaser in connection with this Agreement in accordance with the provisions
of this Section 13.11.

 

(f)            For
the avoidance of doubt, the failure of any Purchaser under this Agreement to
satisfy its obligations hereunder shall not relieve any other Purchaser from
its obligations hereunder, including the obligation to consummate the
transactions hereunder if all other conditions to such Purchaser’s obligations
have been satisfied or waived.

 

SECTION 13.12 
Bankruptcy Matters.  For
the avoidance of doubt, all obligations of the Company and its Subsidiaries in
this Agreement are subject to and conditioned upon (a) with respect to the
issuance of the Warrants and the other obligations contained in the Approval
Order, entry of the Approval Order, and (b) with respect to the remainder
of the provisions hereof, entry of the Confirmation Order.

 

[Signature Page Follows]

 

79

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be executed and
delivered by each of them or their respective officers thereunto duly
authorized, all as of the date first written above.

 

 

	
   

  	
  FAIRHOLME FUNDS, INC.,

  
	
   

  	
  on behalf of its series The Fairholme Fund

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Bruce R. Berkowitz

  
	
   

  	
  Name:

  	
  Bruce R. Berkowitz

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FAIRHOLME FUNDS, INC.,

  
	
   

  	
  on behalf of its series Fairholme Focused Income
  Fund

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Bruce R. Berkowitz

  
	
   

  	
  Name:

  	
  Bruce R. Berkowitz

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL
  GROWTH PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas H. Nolan, Jr.

  
	
   

  	
  Name:

  	
  Thomas
  H. Nolan, Jr.

  
	
   

  	
  Title:

  	
  President
  and Chief Operating Officer

  

 

[SIGNATURE PAGE OF AMENDED AND RESTATED STOCK PURCHASE AGREEMENT]

 

 

EXHIBIT A - PLAN SUMMARY TERM SHEET

 

 

 

GENERAL GROWTH PROPERTIES, INC.

PLAN SUMMARY TERM SHEET(1)

 

8/2/2010

 

This
term sheet (the “Term Sheet”) describes the material terms of a proposed
chapter 11 joint plan of reorganization (the “Plan”) of the Plan Debtors
(as defined below) solely for the purposes of the Investment Agreements (as
defined below).  The transactions
contemplated by this term sheet are subject to conditions to be set forth in
definitive documents, including the Investment Agreements and to the approval
by the United States Bankruptcy Court for the Southern District of New York
(the “Bankruptcy Court”).  This
Term Sheet is not an offer or solicitation for any chapter 11 plan and is being
presented for discussion and settlement purposes only.  Acceptance of any such plan by any party
(including those named herein) will not be solicited from any person or entity
until such person or entity has received the disclosures required under or
otherwise in compliance with applicable law. 
Accordingly, this Term Sheet does not bind any creditor or other party
to vote in favor of or support any chapter 11 plan.  In the event of any inconsistency between the
terms of the Plan and this Term Sheet, or the terms of any applicable
Investment Agreement and this Term Sheet, the terms of the Plan and the
Investment Agreements, respectively, shall control for their respective
purposes.

 

PARTIES/AGREEMENTS

 

	
  GGP

  	
   

  	
  General Growth Properties, Inc. (“GGP”) on or before the
  Effective Date and GGP, as reorganized, from and after the Effective Date

  
	
   

  	
   

  	
   

  
	
  Plan Debtors

  	
   

  	
  The
  debtors, including GGP, whose chapter 11 cases are pending in the Bankruptcy
  Court under Chapter 11 Case No. 09-11977 (ALG), whose chapter 11 cases
  have not otherwise been confirmed and whose chapter 11 cases will be treated
  pursuant to the Plan (collectively, the “Plan Debtors”)

  
	
   

  	
   

  	
   

  
	
  Confirmed Debtors

  	
   

  	
  The
  subsidiary debtors other than the Plan Debtors whose chapter 11 plans have
  been confirmed as of the Effective Date (the “Confirmed Debtors”)

  
	
   

  	
   

  	
   

  
	
  Debtors

  	
   

  	
  Plan
  Debtors, Confirmed Debtors and to the extent applicable, any debtor whose
  chapter 11 case is pending under Chapter 11 Case No. 09-11977 (ALG) but
  that is not a Plan Debtor or a Confirmed Debtor

  
	
   

  	
   

  	
   

  
	
  REP

  	
   

  	
  REP
  Investments LLC (“REP”)

  
	
   

  	
   

  	
   

  
	
  Fairholme

  	
   

  	
  Fairholme
  Capital Management, LLC, on behalf of one or more of its managed funds or
  affiliates of such managed funds (“Fairholme”)

  

 

(1)                                  Capitalized terms used but
not otherwise defined herein shall have the meanings ascribed to them in the
Investment Agreement to which this Term Sheet is attached.

 

 

	
  Pershing

  	
   

  	
  Pershing
  Square Capital Management, L.P., on behalf of one or more of its managed
  funds (“Pershing” and together with REP and Fairholme, the “Purchasers”)

  
	
   

  	
   

  	
   

  
	
  Confirmed Plans

  	
   

  	
  The
  chapter 11 plans of the Confirmed Debtors (the “Confirmed Plans”)

  
	
   

  	
   

  	
   

  
	
  CIA

  	
   

  	
  Amended
  and Restated Cornerstone Investment Agreement effective as of March 31,
  2010 between REP and GGP (the “CIA”)

  
	
   

  	
   

  	
   

  
	
  Fairholme Stock Purchase
  Agreement

  	
   

  	
  Amended
  and Restated Stock Purchase Agreement effective as of March 31, 2010
  between the purchasers parties thereto and GGP (the “Fairholme SPA”)

  
	
   

  	
   

  	
   

  
	
  Pershing Stock Purchase Agreement

  	
   

  	
  Amended
  and Restated Stock Purchase Agreement effective as of March 31, 2010
  between the purchasers parties thereto and GGP (the “Pershing SPA” and
  together with the CIA and the Fairholme SPA, the “Investment Agreements”)

  

 

TREATMENT
OF CLAIMS AND INTERESTS

 

	
  DIP Loan
  Claims

  	
   

  	
  Treatment: Paid in
  full, in cash on the effective date (the “Effective Date”) of the Plan.

   

  The Plan Debtors may, at
  their option, satisfy all or a portion of the DIP Loan Claims through a
  conversion to New Common Stock (a “DIP Conversion”), provided GGP
  engages in a “Qualified Rights Offering” in accordance with the terms of the
  order approving the DIP facility or on such other terms as the parties may
  agree.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Administrative Expense Claims

  	
   

  	
  Treatment: Paid in
  full, in cash on the Effective Date or on such other terms as the parties may
  agree.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Priority Non-Tax Claims

  	
   

  	
  Treatment: Paid in
  full, in cash on the Effective Date or on such other terms as the parties may
  agree.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Priority Tax Claims

  	
   

  	
  Treatment: At the Plan
  Debtors’ election, (i) paid in full, in cash on the Effective Date,
  (ii) receive the treatment provided for in section 1129(a)(9)(c) of
  the Bankruptcy Code or (iii) receive treatment on such other terms as
  the parties may agree.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Secured Tax Claims

  	
   

  	
  Treatment: At the Plan
  Debtors’ election, (i) paid in full, in cash on the Effective Date,
  (ii) receive the treatment provided for in section 1129(a)(9)(d) of
  the Bankruptcy Code or (iii) receive treatment on such other terms as
  the parties may agree.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Mechanics’ Lien Claims

  	
   

  	
  Treatment: Paid in
  full, in cash on the Effective Date, as well as any amounts allowed and
  required to be paid pursuant to section 506(b) of the Bankruptcy Code,
  including postpetition interest at the Federal Judgment Rate (as defined in
  the Confirmed Plans) unless there is

  

 

 

	
   

  	
   

  	
  an applicable contractual rate or rate of interest
  under state law, in which case interest shall be paid at such rate of
  interest, provided the claimant satisfies certain notice requirements
  consistent with those terms contained in the Confirmed Plans. The mechanics’
  liens securing the Mechanics’ Lien Claims shall be deemed released and shall
  require no further action on the part of the holders of the Mechanics’ Lien
  Claims.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Other Secured Claims

  	
   

  	
  Treatment: At the Plan
  Debtors’ option, on the Effective Date, holders of allowed Other Secured
  Claims shall either (a) be reinstated and rendered unimpaired,
  (b) receive cash in an amount equal to such allowed Other Secured Claim
  plus any interest allowed and required to be paid under section
  506(b) of the Bankruptcy Code, (c) receive the collateral securing
  its allowed Other Secured Claim or (d) such other treatment as the
  holder of the Other Secured Claim and the Plan Debtors may agree.

  
	
   

  	
   

  	
   

  
	
  Rouse
  8.00% Note Claims

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed Rouse 8.00% Note Claims shall be satisfied in
  full, in cash or shall receive such other treatment as is permissible
  pursuant to section 1129 of the Bankruptcy Code. In addition, the Plan
  Debtors shall pay in cash any outstanding reasonable agent or trustee fees
  and expenses provided for under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  Rouse
  3.625% Note Claims

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed Rouse 3.625% Note Claims shall be satisfied in
  full, in cash or shall receive such other treatment as is permissible
  pursuant to section 1129 of the Bankruptcy Code. In addition, the Plan
  Debtors shall pay in cash any outstanding reasonable agent or trustee fees
  and expenses provided for under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  Rouse
  5.375% Note Claims

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed Rouse 5.375% Note Claims (i) shall be cured
  and reinstated in accordance with section 1124 of the Bankruptcy Code, or
  (ii) shall receive such other treatment as is permissible under section
  1129 of the Bankruptcy Code.  In addition, the Plan Debtors shall pay in
  cash any outstanding reasonable agent or trustee fees and expenses provided
  for under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  Rouse 63⁄4%
  Note Claims

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed Rouse 63⁄4  % Note Claims (i) shall be
  cured and reinstated in accordance with section 1124 of the Bankruptcy Code,
  or (ii) shall receive such other treatment as is permissible under
  section 1129 of the Bankruptcy Code. In addition, the Plan Debtors shall pay
  in cash any outstanding reasonable agent or trustee fees and expenses
  provided for under the applicable indenture.

  

 

 

	
  Rouse
  7.20% Note Claims

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed Rouse 7.20%  Note
  Claims (i) shall be cured and reinstated in accordance with section 1124
  of the Bankruptcy Code, or (ii) shall receive such other treatment as is
  permissible under section 1129 of the Bankruptcy Code. In addition, the Plan
  Debtors shall pay in cash any outstanding reasonable agent or trustee fees
  and expenses provided for under the applicable indenture.

  
	
   

  	
   

  	
   

  
	
  2006 Bank
  Loan Claims

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed 2006 Bank Loan Claims shall be satisfied in full,
  in cash. In addition, the Plan Debtors shall pay in cash any outstanding
  reasonable agent fees and expenses provided for under the applicable loan
  agreement.

  
	
   

  	
   

  	
   

  
	
  144A
  Exchangeable Notes Claims

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed 144A Exchangeable Note Claims (i) shall be
  cured and reinstated in accordance with section 1124 of the Bankruptcy Code
  or at the option of such holders, shall be satisfied in cash at par plus
  accrued interest at the stated non-default contract rate and shall be deemed
  to have waived any other claims, or (ii) shall receive such other
  treatment as is permissible under section 1129 of the Bankruptcy Code. In
  addition, the Plan Debtors shall pay in cash any outstanding reasonable agent
  or trustee fees and expenses provided for under the applicable indenture. For
  the avoidance of doubt, in the event the Plan Debtors determine to provide
  the treatment option pursuant to subsection (ii) above subsequent to a
  holder of an Allowed 144A Exchangeable Notes Claim electing to receive cash
  at par plus accrued interest, such election shall not be binding on such
  holder.

  
	
   

  	
   

  	
   

  
	
  2006
  Trust Preferred Shared and Junior Subordinated Notes (the “TRUPs Claims”)

  	
   

  	
  Treatment: On the
  Effective Date, the Allowed TRUPs Claims shall be cured and reinstated in
  accordance with section 1124 of the Bankruptcy Code or shall receive such
  other treatment permissible under section 1129 of the Bankruptcy Code. In
  addition, the Plan Debtors shall pay in cash any outstanding reasonable
  trustee fees and expenses provided for under the applicable trust agreement.

  
	
   

  	
   

  	
   

  
	
  Allowed
  General Unsecured Claims

  	
   

  	
  Treatment: On the
  Effective Date, holders of Allowed General Unsecured Claims shall
  (i) receive payment in full, in cash with postpetition interest at the
  Federal Judgment Rate, unless there is an applicable contractual rate or rate
  of interest under state law, in which case interest shall be paid at such
  rate of interest, provided the claimant satisfies certain notice requirements
  consistent with those terms contained in the Confirmed Plans or
  (ii) shall receive such other treatment permissible under section 1129
  of the Bankruptcy

  

 

 

	
   

  	
   

  	
  Code.

  
	
   

  	
   

  	
   

  
	
  Partner
  Note GGP/Homart II, L.L.C. Claims

  	
   

  	
  Treatment: On the
  Effective Date, at the election of the Plan Debtors, the Allowed Partner Note
  GGP/Homart II L.L.C. Claims (i) shall be cured and reinstated in
  accordance with section 1124 of the Bankruptcy Code, (ii) shall be
  satisfied in full, in cash or (iii) shall receive such other treatment
  permissible under section 1129 of the Bankruptcy Code.

  
	
   

  	
   

  	
   

  
	
  Partner
  Note GGP Ivanhoe, Inc. Claims

  	
   

  	
  Treatment: On the
  Effective Date, at the election of the Plan Debtors, the Allowed Partner Note
  GGP Ivanhoe, Inc. Claims (i) shall be cured and reinstated in
  accordance with section 1124 of the Bankruptcy Code, (ii) shall be
  satisfied in full, in cash or (iii) shall receive such other treatment
  permissible under section 1129 of the Bankruptcy Code. In the event the
  holders of Allowed Partner Note GGP Ivanhoe, Inc. Claims are reinstated,
  the guaranty currently securing the obligations under the GGP
  Ivanhoe, Inc. Partner Note shall be affirmed and shall continue post emergence.

  
	
   

  	
   

  	
   

  
	
  GGP TRS
  Retained Debt Claims

  	
   

  	
  Treatment: On the
  Effective Date, the joint venture agreement between GGP LP and TRS JV Holdco,
  LLC shall be assumed, and the Plan Debtors shall make any cure payments
  required thereunder.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Project Level Debt Guaranty Claims(2)

  	
   

  	
  Treatment: On the
  Effective Date, at the election of the Plan Debtors, the holders of allowed
  Project Level Debt Guaranty Claims shall receive a replacement guaranty or
  such other treatment under the Plan as contemplated by the Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  Allowed
  Hughes Heirs Obligations

  	
   

  	
  Treatment: On the
  Effective Date, the holders of allowed Hughes Heirs Obligations shall receive
  property of a value (a) as agreed to by the Debtors and such holders or
  (b) ordered by the Bankruptcy Court, in satisfaction of the allowed
  amount of their claims or interests; provided
  that, to the extent permissible, the Hughes Heirs Obligations may
  be satisfied, in whole or in part, through the issuance of GGO Stock.

  
	
   

  	
   

  	
   

  
	
  Intercompany
  Obligations

  	
   

  	
  Treatment: On the Effective
  Date, Intercompany Obligations shall be reinstated and treated in the
  ordinary course of business or eliminated in the ordinary course of business,
  including the elimination of any Intercompany Obligations owed to or from any
  entities to be transferred to GGO.

  
	
   

  	
   

  	
   

  
	
  GGPLP LLC
  Preferred

  	
   

  	
  Treatment: On the
  Effective Date, the holder of GGPLP 

  

 

(2) 
Allowed Project Level Debt Guaranty Claims include Existing Credit Enhancement
Claims (as such term is defined in the Confirmed Plans) with respect to the
Special Consideration Properties (as such term is defined in the Confirmed
Plans).

 

 

	
  Equity Interests

  	
   

  	
  LLC preferred equity interests (“GGPLP LLC
  Preferred Equity Interests”) will receive (i) (a) a
  distribution of Cash based on its share of dividends accrued and unpaid prior
  to the Effective Date and (b) reinstatement of its preferred units in
  Reorganized GGPLP LLC, which shall be in the same number of preferred units
  in Reorganized GGPLP LLC as it held as of the Record Date in GGPLP LLC or (ii) if
  the Bankruptcy Court determines that holders of such interests are impaired,
  such other treatment as is required under section 1129(b) of the
  Bankruptcy Code, less any applicable tax withholding as required by the
  applicable agreements.

  
	
   

  	
   

  	
   

  
	
  GGPLP
  Preferred Equity Interests

  	
   

  	
  Treatment: On the
  Effective Date, holders of GGPLP Preferred Equity Interests will receive
  (i) (a) a distribution of Cash based on their pro rata share of
  dividends accrued and unpaid prior to the Effective Date,
  (b) reinstatement of their preferred units in Reorganized GGPLP, which
  shall be in the same number of preferred units in Reorganized GGPLP as they
  held as of the Record Date in GGPLP, provided, however, that any prepetition
  direct or indirect redemption rights which may have, at GGP’s option, been
  satisfied in shares of GGP Common Stock or 8.5% Cumulative Convertible
  Preferred Stock, Series C, as applicable, shall, in accordance with the
  applicable provisions of their prepetition agreements, subsequently be
  satisfied, at New GGP’s option, in shares of New GGP Common Stock or New GGP
  Series C Preferred Stock, as applicable, on terms consistent with such
  prepetition agreements and (c) a pro rata amount of Spinco Common Stock
  as if such holder of GGP LP Preferred Equity Units had converted to GGP LP
  Common UPREIT Units immediately prior to the Distribution Record Date or
  (ii) if the Bankruptcy Court determines that holders of such interests
  are impaired, such other treatment as is required under section
  1129(b) of the Bankruptcy Code, less any applicable tax withholding as
  required by the applicable agreements.

  
	
   

  	
   

  	
   

  
	
  GGPLP
  Common UPREIT Units

  	
   

  	
  Treatment: On the
  Effective Date, holders of GGPLP Common UPREIT Units will receive (a) a
  distribution of Cash equal to $.019 per unit and may elect between
  (a) (i) reinstatement of such units in Reorganized GGPLP, which
  shall be in the same number as held as of the Record Date, provided, however,
  that any prepetition redemption or conversion rights, as applicable, held by
  such GGP LP Common UPREIT Unit holders which GGP had the obligation or
  option, as applicable, to satisfy in shares of GGP Common Stock, shall, in
  accordance with the applicable provisions of their prepetition agreement,
  subsequently

  

 

 

	
   

  	
   

  	
  be satisfied, at New GGP’s option or obligation,
  in shares of New GGP Common Stock on conversion or redemption terms
  consistent with such prepetition agreements, plus, a pro rata amount of GGO
  Common Stock on account of such units or (ii) being deemed to have
  converted or redeemed, as applicable, their GGPLP Common UPREIT Units
  effective the day prior to the Distribution Record Date in exchange for GGP
  Common Stock on terms consistent with such holder’s prepetition agreements,
  thereby receiving such treatment as if such holder owned GGP Common Stock on
  the Distribution Record Date or (b) if the Bankruptcy Court determines
  that holders of such interests are impaired, such other treatment as is
  required under section 1129(b) of the Bankruptcy Code, less any
  applicable tax withholding as required by the applicable agreements.

  
	
   

  	
   

  	
   

  
	
  GGP
  Common Stock

  	
   

  	
  Treatment: On the
  Effective Date, each holder of GGP Common Stock shall receive its
  proportionate share of (i) the New Common Stock and (ii) the GGO
  Share Distribution.

  
	
   

  	
   

  	
   

  
	
  REIT
  Preferred Stock Interests

  	
   

  	
  On the Effective Date,
  holders of REIT Preferred Stock Interests will receive (1) a
  distribution of Cash based on their pro rata share of dividends accrued and
  unpaid prior to the Effective Date (if any) and (2) reinstatement of
  their REIT Preferred Stock Interests in the same number as they held as of
  the Distribution Record Date.

  
	
   

  	
   

  	
   

  
	
  Outstanding
  Warrants

  	
   

  	
  Treatment: On the
  Effective Date, the outstanding Warrants (as such term is defined in the
  Investment Agreements) shall be cancelled and each holder of the Warrants (or
  certain qualifying affiliates) shall receive fully vested warrants to
  purchase New Common Stock and fully vested warrants to purchase GGO Common
  Stock, in each case, in such numbers and on such terms as provided in the
  applicable Investment Agreement.

  
	
   

  	
   

  	
   

  
	
  Outstanding
  Options

  	
   

  	
  Treatment: On the
  Effective Date, the Debtors shall assume outstanding prepetition option
  awards to purchase GGP Common Stock, which may entitle option holders to an
  option to purchase New Common Stock and an option to purchase GGO Common
  Stock or a contractual right to elect to cash out.

  

 

CLOSING
DATE DEBT AND GGO PROMISSORY NOTE

 

	
  Closing
  Date Net Debt and GGO Promissory Note

  	
   

  	
  The Closing Date Net Debt
  shall be determined in accordance with the CIA and the Plan and the GGO
  Promissory Note, if any, shall be issued on the Effective Date.

  

 

 

OTHER PLAN
TERMS

 

	
  Executory
  Contracts and Unexpired Leases

  	
   

  	
  All executory contracts
  (including employee benefit plans, insurance, supply contracts, etc.)
  and unexpired leases will be assumed unless expressly rejected under the Plan
  or through a separate motion.

  
	
   

  	
   

  	
   

  
	
  Provisions
  Concerning Resolution of Disputed, Contingent, and Unliquidated Claims and
  Claims Payable by Third Parties

  	
   

  	
  The Plan will contain
  usual and customary provisions for resolving disputed, contingent and
  unliquidated claims and claims payable by third parties, including (to the
  extent appropriate) provisions consistent with the terms contained in the
  Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  Employee/
  Officer/ Director Indemnification Obligations

  	
   

  	
  The Plan Debtors’
  indemnification obligations for employees, officers, directors, trustees or
  managers shall be deemed assumed, in accordance with the provisions in the
  Confirmed Plans, unless otherwise expressly rejected by separate motion or under
  the Plan.

  
	
   

  	
   

  	
   

  
	
  Provisions
  Concerning Plan Implementation

  	
   

  	
  The Plan shall provide for
  usual and customary means of implementation, including (to the extent
  appropriate) implementation provisions consistent with the terms contained in
  the Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  Transfer
  Restrictions

  	
   

  	
  The plan shall provide
  that, in addition to the covenants set forth in the Non Control Agreement,
  REP shall not sell, transfer or dispose of (x) any Shares, New Warrants,
  or shares issuable upon exercise of the New Warrants during the period from
  and after the Closing Date to the six (6) month anniversary of the
  Closing Date, (y) in excess of (A) 8.25% of the Shares and
  (B) 8.25% of the New Warrants or shares issuable upon exercise of the
  New Warrants, in the aggregate, during the period from and after the six
  (6) month anniversary of the Closing Date to the one (1) year
  anniversary of the Closing Date and (z) in excess of (A) 16.5% of
  the Shares and (B) 16.5% of the New Warrants or the shares issuable upon
  exercise of the New Warrants, in the aggregate (and taken together with any
  Transfers effected under clause (y)), during the period from and after the
  six (6) month anniversary of the Closing Date to the eighteen (18) month
  anniversary of the Closing Date. For clarity, Purchaser shall not be
  restricted from Transferring any Shares, New Warrants, or shares issuable
  upon exercise of the New Warrants from and after the eighteen (18) month
  anniversary of the Closing Date.

  
	
   

  	
   

  	
   

  
	
  Insurance
  Policies, Benefit

  	
   

  	
  The Plan Debtors’ insurance
  policies, benefit plans,

  

 

 

	
  Plans, Surety Bonds

  	
   

  	
  workers’ compensation claims, and surety bonds
  shall be treated in a manner consistent with that provided in the Confirmed
  Plans.

  
	
   

  	
   

  	
   

  
	
  Retention
  of Causes of Action

  	
   

  	
  All causes of action shall
  vest with GGP or GGO, as applicable

  
	
   

  	
   

  	
   

  
	
  Conditions
  for Consummation and Confirmation

  	
   

  	
  Usual and customary for
  transactions of this type

  
	
   

  	
   

  	
   

  
	
  Discharge,
  Releases and Exculpation

  	
   

  	
  The Plan will contain
  discharge, release and exculpation provisions in a manner consistent with
  those provided in the Confirmed Plans.

  
	
   

  	
   

  	
   

  
	
  Governing
  Law

  	
   

  	
  To the extent the
  Bankruptcy Code or other federal law does not apply, New York law shall
  govern.

  

 

 

EXHIBIT E

 

GGO ASSETS

 

Pursuant to Section 2.1(a),
and subject to the conditions, exceptions and qualifications set forth therein,
the Company will contribute to GGO (directly or indirectly) the assets (and/or
equity interests related thereto) listed below:

 

·                  Master Planned Communities

 

·                  Bridgeland

 

·                  Columbia — subject to Section 2.1(e) of the
Agreement and including a right of first offer and purchase option with respect
to certain office buildings in Columbia pursuant to the terms of the
development agreement that will be attached to the Separation Agreement.  For the avoidance of doubt, The Mall in
Columbia and Gateway Overlook (including related development rights) shall not
to be transferred to GGO.

 

·                  Emerson

 

·                  Fairwoods

 

·                  Summerlin

 

·                  Woodlands — joint venture interest

 

ARTICLE I.110 N. Wacker (leasehold interest) — joint venture
interest

 

·                  Ala Moana Tower — air rights over existing parking
deck

 

·                  Alameda Plaza, Idaho

 

·                  Allen Towne Plaza, Texas

 

ARTICLE II.Arizona 2 Office Note — A note that will approximate
the capital lease revenue from Arizona 2 Office only; there will be no transfer
to GGO of underlying properties or any ownership or occupancy interest therein

·                  Bridges at Mint Hill, North Carolina

 

·                  Century Plaza, Alabama

 

·                  Circle T Ranch & Power Centre, Texas — joint
venture interest

 

ARTICLE III.Condos Nouvelle at Natick — rights to income from
assets sold and for which a closing has occurred prior to Closing remain with
GGP

 

·                  Cottonwood Mall and Cottonwood Square

 

·                  Elk Grove Promenade

 

 

ARTICLE IV.Fashion Show Air Rights - Springing right to acquire
an 80% ownership interest in the air above the portions of Fashion Show Mall
owned by GGP upon satisfaction of the existing loans and guaranties at Fashion
Show Mall and The Shoppes at the Palazzo as described in and pursuant to the
provisions of the Fashion Show Core Principles document that will be attached
to the Separation Agreement.

 

ARTICLE V.Golf course interests - TPC Summerlin & TPC
Canyons

 

·                  Hexalon (but not Hexalon’s interest in General Growth
Management, Inc.)

 

·                  Kendall Towne Center, Miami — land

 

·                  Landmark Mall

 

·                  Maui Ranch property

 

·                  Park West Mall

 

·                  Princeton, New Jersey — land

 

·                  Rio West, New Mexico

 

·                  Riverwalk Market Place

 

·                  South Street Seaport

 

·                  Summerlin Centre

 

ARTICLE VI.Summerlin Hospital — joint venture interest

 

·                  Victoria Ward

 

·                  Village of Redlands, California (Redlands Mall and
Redlands Promenade)

 

·                  Volo, Illinois — land

 

 

Exhibit M

 

FORM OF

NON-CONTROL AGREEMENT (GGP Version)

 

This
Non-Control Agreement (this “Agreement”) is dated as of [·] 2010 (the “Effective Date”),
by and between General Growth Properties, Inc., a Delaware corporation (the “Company”),
[insert names of Pershing Square or Fairholme purchasers](3) (collectively, “Investor”).

 

WHEREAS, Investor
has entered into that certain Stock Purchase Agreement, dated as of [·], 2010 (the “Investment
Agreement”), that contemplates, among other things, the purchase by
Investor of shares of Common Stock subject to the terms and conditions
contained therein;

 

WHEREAS,
the transactions contemplated by the Investment Agreement are intended to
assist the Company in its plans to recapitalize and emerge from bankruptcy and
is not intended to constitute a change of control of the Company or otherwise
give Investor the power to control the business and affairs of the Company;

 

WHEREAS,
as a material condition to the Company’s and Investor’s obligations to
consummate the transactions contemplated by the Investment Agreement, the
Company and Investor have agreed to execute this Agreement; and

 

WHEREAS,
certain terms used in this Agreement are defined in Section 4.1.

 

NOW
THEREFORE, in consideration of the premises and the mutual covenants and
agreements hereinafter contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

COMPANY
RELATED PRINCIPLES

 

Board of Directors.  So long as Investor and the Investor Parties,
collectively, shall Beneficially Own more than ten percent (10%) of the
outstanding shares of Common Stock, none
of Investor or the Investor Parties shall take any action that is inconsistent
with its support for the following corporate governance principles:

 

A majority of the members of the Board shall be
Independent Directors, where “Independent Director” means a director who
satisfies all standards for independence promulgated by the New York Stock
Exchange (or the applicable exchange where shares of Common Stock are then
listed);

 

(3) 
The purchasers under Pershing Square’s Investment Agreement will collectively
sign one Non-Control Agreement and the purchasers under Fairholme’s Investment
Agreement will collectively sign another Non-Control Agreement.  The terms of those two agreements will be
substantially similar except for the differences described in the footnotes
later in this agreement.

 

 

the Board shall have a nominating committee, a
majority of which shall be Disinterested Directors;

 

in connection with any stockholder meeting or
consent solicitation relating to the election of members of the Board, if
Investor and the Investor Parties, collectively, Beneficially Own a number of
shares of Common Stock greater than 10% of the shares of Common Stock outstanding
as of the applicable record date (or, if larger, the largest number of shares
that any Large Stockholder would be permitted to vote in such election,
ignoring for this purpose the right of any Large Stockholder that is a party to
the Brookfield Non-Control Agreement to cast votes for Purchaser Board
Designees and the right of any Large Stockholder that is a party to a
transferee agreement in the form required by this Agreement or the Brookfield
Non-Control Agreement to vote for one director in its sole discretion), then
Investor shall, and shall cause the other Investor Parties to, vote in such
election of members all shares they Beneficially Own in excess of such number
of shares in proportion to the Votes
Cast;(4)

 

the Board shall consist of
nine (9) members and not be increased or reduced, unless approved by
seventy-five percent (75%)  of
the Board;

 

(e)           any
Change in Control (other than a transaction contemplated by
Section 2.1(b)(ii)) in which a Large Stockholder or its controlled
Affiliate is the acquiror or part of the acquiror group or is proposed to be
directly or indirectly combined with the Company must be approved by a majority
of the Disinterested Directors as if it were an Affiliated Transaction
involving such Large Stockholder and by a majority of the voting power of the
stockholders (other than such Large Stockholder or its controlled Affiliates);
and

 

(f)            any
Change in Control (other than a transaction contemplated by
Section 2.2(b)(v)) in which any Large Stockholder or its controlled Affiliate
receives per share consideration in its capacity as a stockholder of the
Company in excess of that to be received by other stockholders, must be
approved by a majority of the Disinterested Directors as if it were an
Affiliated Transaction involving such Large Stockholder and by a majority of
the voting power of the stockholders (other than such Large Stockholder or its
controlled Affiliates).

 

The Company shall not waive any provisions similar to
Sections 1.1(c), (e) or (f) above for any Large Stockholder under any
other agreement unless the Company grants a similar waiver under this
Agreement.

 

Related Party Transactions.

 

Without the approval of a majority of the
Disinterested Directors, Investor shall not, and shall not permit any of
the Investor Parties to, engage in any Affiliated Transaction.  “Affiliated Transaction” means
(i) any transaction or series of related transactions, directly or
indirectly, between the Company or any Subsidiary of the Company, on the one
hand, and any of

 

(4) 
In the Fairholme Non-Control Agreement, this will read: “in connection with any
stockholder meeting or consent solicitation, if Investor and the Investor
Parties have voting control over a number of shares of Common Stock in excess
of 10% of the number of shares of Common Stock outstanding as of the applicable
record date, then Investor shall, and shall cause the other Investor Parties
to, vote all shares over which they have voting control in excess of such
percentage in proportion to the Votes Cast;”

 

2

 

the
Investor Parties, on the other hand, or (ii) without limiting the
Company’s obligation to comply with Sections 1.4 and 1.5 hereof,
with respect to the purchase or sale of Common Stock by any of the Investor Parties,
any waiver of any limitation or restriction with respect to such purchase or
sale in the Charter or the Transaction Documents, including any exemption from
the Ownership Limit (as defined in the Charter); provided, however,
that none of the following shall constitute an Affiliated Transaction:

 

transactions expressly
contemplated in the Transaction Documents;

 

customary compensation
arrangements (whether in the form of cash or equity awards), expense
reimbursement, director insurance coverage and/or indemnification arrangements
(and related advancement of expenses) in each case for Board designees, or any
use by such persons, for Company business purposes, of aircraft, vehicles,
property, equipment or other assets owned or customarily provided to members of
the Board by the Company or any of its Subsidiaries; and

 

any transaction or series of
transactions if the same is in the Ordinary Course of Business and does not
involve payments by the Company in excess of [$·] in the
aggregate for such transaction or series of transactions.

 

Following the Closing (as such term is defined in
the Investment Agreement), any decisions by the Company regarding material
amendments or modifications of the Plan (as such term is defined in the
Investment Agreement) or waivers of the Company’s material rights under the
Plan, shall require the approval of the majority of Disinterested Directors to
the extent such amendment, modification or waiver relates to any Investor
Party’s rights or obligations.

 

No Other Voting Restrictions.  For the avoidance of doubt, except as
restricted herein or by applicable Law, Investor and the other Investor Parties may vote the Common Stock that they Beneficially Own in their sole and absolute discretion.

 

Amendment of the Charter.  The Company hereby agrees that following the
Closing Date, without the consent of Investor, the Company shall not amend (or
propose to amend) the provisions of the Charter in a manner that would:  (a) amend the restriction on Beneficial
Ownership (as such term is defined in the Charter) of the outstanding capital
stock of the Company to a level other than 9.9%; (b) amend the restriction
on Constructive Ownership (as such term is defined in the Charter) of the
outstanding capital stock of the Company to a level other than 9.9%; or
(c) amend any waiver from the restrictions set forth in the foregoing
clauses (a) and (b) granted to Investor or any Investor Party in any
manner adverse to Investor or any Investor Party.

 

Waiver of Ownership Limited in the Charter.  The Company
and the Board shall take all appropriate and necessary action to ensure that
the ownership limitations set forth in the Charter shall be waived with respect
to Investor, the Investor Parties, any Investor Investment Advisor and any
Person (other than a transferee under Section 2.2(b)(vi) unless
such transferee executes a Transferee Agreement) to whom Investor, any Investor
Party or any Investor Investment Advisor has transferred any of the Common
Stock or Warrants in accordance with the terms of this Agreement and the
Investment Agreement, provided, insofar as the waiver

 

3

 

relates
to Investor, an Investor Party, an Investor Investment Advisor or a transferee, as the case may be, who owns (or would, following such transfer, own)
interests in excess of the Ownership Limit (as defined in the Charter), that
the Company has been provided with a certificate containing the representations
and covenants set forth on Exhibit D to the Investment Agreement
(or, to the extent necessitated by the organizational structure of the party
providing such certificate, a certificate substantially similar to such Exhibit D)
from such Investor, Investor Party, Investor Investment Advisor or
transferee, or in the case of a transferee, a certificate containing the
representations and covenants set forth on Exhibit D to the
Investment Agreement (or, to the extent necessitated by the organizational
structure of the party providing such certificate, a certificate substantially
similar to Exhibit D) as modified to allow such transferee to own
stock or other equity interests in a tenant of the Company or its Subsidiaries
to the extent such ownership would not result in (i) the Company or any of
its REIT Subsidiaries other than GGP-Natick Trust or GGP Ivanhoe, Inc.
recognizing more than $1 million of “related party rent” in any year or
(ii) GGP Natick Trust or GGP Ivanhoe, Inc. recognizing more than
$100,000 of “related party rent” in any year. 
The parties hereto agree that the Company may, in the discretion of the
Board, grant to third parties any other waivers from restrictions set forth in
the Charter.

 

INVESTOR
RELATED COVENANTS

 

Ownership Limitations.

 

Except as provided in Section 2.1(b), Investor
agrees that it (together with the other Investor Parties) shall not acquire
Economic Ownership of shares of Common Stock that would result in the Investor
Parties in the aggregate Economically Owning a percentage of the
then-outstanding Common Stock on a Fully Diluted Basis that is greater than the
Ownership Cap.  For the avoidance of
doubt, no Person shall be in violation of this Section 2.1 as a
result of (i) any acquisition by the Company of any Common Stock;
(ii) any change in the percentage of the Investor Parties’ Economic
Ownership of Common Stock that results from a change in the aggregate number of
shares of Common Stock outstanding; or (iii) any change in the number of
shares of Common Stock Economically Owned by the Investor Parties as a result
of any anti-dilution adjustments to any Equity Securities (as defined in the
Investment Agreement) Economically Owned by any Investor Party.

 

Notwithstanding Section 2.1(a), any of
the Investor Parties may acquire Economic Ownership of shares of Common Stock
that would result in the Investor Parties (taken as a whole) having Economic
Ownership of a percentage of the then-outstanding Common Stock on a Fully
Diluted Basis that is greater than the Ownership Cap under any of the following
circumstances:

 

acquisitions of shares
pursuant to any pro rata stock dividend or stock distribution effected by the
Company and approved by a majority of the Independent Directors;

 

if such acquisition is
pursuant to a tender offer or exchange offer, in each case that includes an
offer for all outstanding shares of Common Stock owned by the

 

4

 

Target Stockholders, or a merger, consolidation,
binding share exchange or similar transaction pursuant to an agreement with the
Company, so long as in each case (A) such offer, merger, consolidation,
binding share exchange or similar transaction is approved by a majority of the
Disinterested Directors or by a special committee comprised of Disinterested
Directors (such tender offer or exchange offer, an “Approved Offer”, and such merger,
consolidation, binding share exchange or similar transaction, an “Approved Merger”),
and (B) in any such Approved Offer, a majority of the Target Shares are
tendered into such Approved Offer and not withdrawn prior to the final
expiration of such Approved Offer, or in such Approved Merger, a majority of
the Target Shares that are voted (in person or by proxy) on the related
transaction proposal are voted in favor of such proposal.  As used in this Section 2.1(b)(ii):  “Target Shares” means the then-outstanding
shares of Common Stock not owned by the Investor Parties; and “Target
Stockholders” means the stockholders of the Company other than the Investor
Parties.

 

The limitation set forth in Section 2.1(a) may
only be waived by the Company if a majority of the Disinterested Directors
consent thereto.

 

Transfer Restrictions.

 

Subject to Section 2.2(b), unless
approved by a majority of the Independent Directors, Investor shall not,
and shall not permit any of the Investor Parties to, sell or otherwise transfer
or agree to transfer (each of the foregoing, a “Transfer”), directly or
indirectly, any shares of Common Stock that are held directly or indirectly by
Investor or any of the other Investor Parties if, immediately after giving
effect to such Transfer, the Person that acquires such Common Stock (other than
any underwriter acting in such capacity in an underwritten public offering of
such shares) would, together with its Affiliates, to the actual knowledge (“Knowledge”)
of the transferor Beneficially Own more than ten percent (10%) of the
then-outstanding Common Stock.  A
transferor shall be deemed to have Knowledge of any transferee’s Beneficial
Ownership of Common Stock if the transferor has actual knowledge of the
identity of the transferee and such Beneficial Ownership has been, at the time
of the agreement to transfer, publicly disclosed in accordance with
Section 13 of the Exchange Act.

 

The limitations in Section 2.2(a) shall
not apply, and any Investor Party may Transfer freely:

 

to any Person (including any
Affiliate of Investor) if such Person (A) has executed and delivered to
the Company a Transferee Agreement (as defined below), and (B) has
provided the Company with a certificate containing the representations set
forth on Exhibit D of the Investment Agreement (or, to the extent
necessitated by the organizational structure of the party providing such
certificate, a certificate substantially similar to such Exhibit D)
as modified to allow such Transferee to own stock or other equity interests in
a tenant of the Company or its Subsidiaries to the extent such ownership would
not result in (i) the Company or any of its REIT Subsidiaries other than
GGP-Natick Trust or GGP Ivanhoe, Inc. recognizing more than $1 million of
“related party rent” each year or (ii) GGP-Natick Trust or GGP
Ivanhoe, Inc. recognizing more than $100,000 of “related party rent” each
year;

 

5

 

to one or more underwriters
or initial purchasers acting in their capacity as such in a manner not intended
to circumvent the restrictions contained in 2.2(a);

 

in a sale in the public
market, in accordance with Rule 144, including the volume and manner of
sale limitations set forth therein;

 

in any Merger Transaction
(other than a transaction contemplated by Section 2.2(b)(v) below)
or transaction contemplated by clause (iii) of the definition of Change of
Control (A) in which (in either case) no Investor Party is the acquiror or
part of the acquiring group or is proposed to be combined with the Company and
(B) that has been approved by the Board and a majority of the stockholders
(it being understood that this clause (iv) does not affect the agreement
of the parties under Sections 1.1(e) and (f));

 

in connection with a tender
or exchange offer that (A) is not solicited by any Investor Party (unless
such transaction was approved in accordance with Section 2.1(b)(ii))
and in which all holders of Common Stock are offered the opportunity to sell
shares of Common Stock and (B) complies with applicable securities laws,
including Rule 14d-10 promulgated under the Exchange Act; and

 

in connection with any bona
fide mortgage, encumbrance, pledge or hypothecation of capital stock to a
financial institution in connection with any bona fide loan.

 

No Transfer under Section 2.2(b)(i) shall
be valid unless and until a Transferee Agreement has been executed by the
Transferee and delivered to the Company. 
For the purpose of this Agreement a “Transferee Agreement” executed by a
Transferee means an agreement substantially in the form of this Agreement or in
such other form as is reasonably satisfactory to the Company except that:

 

notwithstanding Section 1.1(c),
in connection with any stockholder meeting or consent solicitation relating to
the election of members of the Board, such Transferee may vote the shares of
Common Stock that it Beneficially Owns in favor of one director candidate in
its sole and absolute discretion and regarding any other director candidates in
such election must vote in proportion to Votes Cast;(5)

 

“Investor” shall be defined
to mean such Transferee; and

 

any obligation on the part
of Investor hereunder to cause the Investor Parties to take any action or
refrain from taking any action shall only apply to the Investor Parties
controlled by the Transferee and the Transferee Agreement shall provide that
the Transferee shall use all reasonable efforts to cause Affiliates that the
Transferee does not control to take or refrain from taking the action that it
is otherwise required to cause under this Agreement.

 

(5) 
In the Fairholme Non-Control Agreement, this clause will be expanded to say
that the restriction in 1.1(c) will apply only to votes for or against
directors and not votes on other matters.

 

6

 

TERMINATION

 

Termination of Agreement.  This Agreement may be terminated as follows
(the date of such termination, the “Termination Date”)

 

if Investor and the Company mutually agree to
terminate this Agreement, but only if the Disinterested Directors have approved
such termination;

 

upon five
(5) days notice by the Investor, at any time after
(i) the Other Stockholders Beneficially Own more than seventy percent (70%) of the
then-outstanding Common Stock and (ii) the Investor Parties Beneficially Own
less than fifteen percent (15%) of the then-outstanding Common Stock on a Fully Diluted Basis;

 

without any further action by the parties hereto, if
Investor and the Investor Parties Beneficially Own less than ten percent (10%) of the
then-outstanding Common Stock on a Fully Diluted Basis;

 

without any other action by the parties hereto, upon
the consummation of a Change of Control not involving Investor or any Investor
Party as a purchaser of any direct or indirect interest in the Company or any
of its assets or properties; provided that the Investor Parties shall
not have violated this Agreement in connection with any transaction under this
clause; and

 

without any other action by the parties hereto, upon
the consummation of: (i) a sale of all or substantially all of the assets
the Company and its Subsidiaries (determined on a consolidated basis), in one
transaction or series of related transactions; or (ii) the acquisition (by
purchase, merger or otherwise) by any Person or Group of Beneficial Ownership
of voting securities of the Company entitling such Person or Group to exercise ninety percent (90%) or more of the
total voting power of all outstanding securities entitled to vote generally in
elections of directors of the Company; provided that the Investor
Parties shall not have violated this Agreement in connection with any
transaction under the preceding clauses (i) and (ii).

 

Procedure upon Termination.  In the event of termination pursuant to Section 3.1,
this Agreement shall terminate on the Termination Date without further action
by Investor and the Company.

 

Effect of Termination.  In the event that this Agreement is validly
terminated as provided in this Article III, then each of the
parties hereto shall be relieved of their duties and obligations arising under
this Agreement after the date of such termination and such termination shall be
without liability to the other party; provided, however, that Article V
shall survive any such termination and shall be enforceable hereunder; provided
further, however, that nothing in this Section 3.3 shall
relieve any party hereto of any liability for a breach of a representation,
warranty or covenant in this Agreement prior to the Termination Date.

 

7

 

DEFINITIONS

 

Defined Terms.  For purposes of this Agreement, the following
terms, when used in this Agreement with initial capital letters, shall have the
respective meanings set forth in this Agreement:

 

“Affiliate” of any
particular Person means any other Person controlling, controlled by or under
common control with such particular Person. 
For the purposes of this Agreement, “control” means the possession,
directly or indirectly, of the power to direct the management and policies of a
Person whether through the ownership of voting securities, contract or
otherwise.

 

“Beneficial Ownership”
by a Person of any securities means “beneficial ownership” as used for purposes
of Rule 13d-3 adopted by the SEC under the Exchange Act; provided,
however, to the extent the term “Beneficial Ownership” is used in connection
with any obligation on the part of an Investor Party to vote, or direct the
vote, of shares of Common Stock, “Beneficial Ownership” by a Person of any
securities shall be deemed to refer solely to those securities with respect to
which such Person possesses the power to vote or direct the vote.  The term “Beneficially Own” shall have
a correlative meaning.

 

“Board” means the
Board of Directors of the Company.

 

“Brookfield Non-Control
Agreement” means the Non-Control Agreement, dated as of the date hereof,
among the Company and [insert names of Brookfield purchasers].

 

“Business Day” means
any day other than (i) a Saturday, (ii) a Sunday, or (iii) any
day on which commercial banks in New York, New York are required or authorized
to close by law or executive order.

 

“Change of Control”
means any transaction involving (i) a Merger Transaction, (ii) a sale
of all or substantially all of the assets the Company and its Subsidiaries
(determined on a consolidated basis), in one transaction or series of related
transactions, or (iii) the consolidation, merger, amalgamation,
reorganization (other than pursuant to the Plan contemplated by the Investment
Agreement) of the Company or a similar transaction in which the Company is
combined with another Person, unless shares of Common Stock held by holders who
are not affiliated with the Company or any entity acquiring the Company remain
unchanged or are exchanged for, converted into or constitute solely (except to
the extent of applicable appraisal rights or cash received in lieu of
fractional shares) the right to receive as consideration Public Stock and the
Persons or Group who beneficially own the outstanding Common Stock of the
Company immediately before consummation of the transaction beneficially own
more than 50% (by voting power) of the outstanding voting stock of the combined
or surviving entity or new parent immediately thereafter.

 

8

 

“Charter” means [the
Certificate of Incorporation of the Company dated as of xxxxxx xx, 2010][Insert
Charter adopted pursuant to Section [      ]
of the Investment Agreement.]

 

“Common Stock”  means the common stock, par value $0.01 per
share, of the Company, as authorized by the Charter as of the Effective Date,
and any successor security as provided by Section 5.11.

 

“Disinterested Director”
shall mean (i) with respect to an Affiliated Transaction or potential
Affiliated Transaction, a director who (A) is not Affiliated with, and was
not nominated by, any Investor Party that is a participant in such transaction
or potential transaction and (B) who has no personal financial interest in
the transaction (other than the same interest, if a stockholder of the Company,
as the other stockholders of the Company) and (ii) with respect to any
matter other than an Affiliated Transaction, a director who is not Affiliated
with, and was not nominated by, any Investor Party.

 

“Economic Ownership”
by a Person of any securities includes ownership by any Person who, directly or
indirectly, through any contract, arrangement, understanding, relationship or
otherwise, has (i) “beneficial ownership” as defined in Rule 13d-3
adopted by the SEC under the Exchange Act or (ii) economic interest in
such security as a result of any cash-settled total return swap transaction or
any other swap, other derivative or “synthetic” ownership arrangement (in which
case the number of securities with respect to which such Person has Economic
Ownership shall be determined by the Company in it reasonable judgment based on
such Person’s equivalent net long position); provided, however,
that for purposes of determining Economic Ownership, a Person shall be deemed
to be the Economic Owner of any securities which may be acquired by such Person
pursuant to any agreement, arrangement or understanding or upon the exercise of
conversion rights, exchange rights, warrants or options, or otherwise
(irrespective of whether the right to acquire such securities is exercisable
immediately or only after the passage of time, including the passage of time in
excess of sixty (60) days, the satisfaction of any conditions, the occurrence
of any event or any combination of the foregoing).  For purposes of this Agreement, a Person
shall be deemed to be the Economic Owner of any securities Economically Owned
by any Group of which such Person is or becomes a member.  The term “Economically Own” shall have
a correlative meaning.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended, or any successor federal
statute, and the rules and regulations of the SEC promulgated thereunder,
all as the same may be amended and shall be in effect from time to time.

 

“Fair Market Value”
means, with respect to each share of Public Stock,  the average of the daily volume weighted
average prices per share of such Public Stock for the ten consecutive trading
days immediately preceding the day as of which Fair Market Value is being
determined, as reported on the New York Stock Exchange, or if such shares are not
listed on the New York Stock Exchange, as reported by the principal U.S.
national or regional securities exchange or quotation system on which such
shares are then listed or quoted; provided, however, that in the
absence of such listing or quotations, the Fair Market Value of such shares
shall be the fair market value per share as determined by an

 

9

 

Independent Financial Expert appointed for such
purpose, using one or more valuation methods that the Independent Financial
Expert in its best professional judgment determines to be most appropriate,
assuming such shares are fully distributed and are to be sold in an
arm’s-length transaction and there was no compulsion on the part of any party
to such sale to buy or sell and taking into account all relevant factors.

 

[“Fairholme
Non-Control Agreement” means the Non-Control Agreement, dated as of the
date hereof, among the Company and [insert name of Fairholme purchaser].]

 

“Fully Diluted Basis”
means all outstanding shares of the Common Stock assuming the exercise of all
outstanding Share Equivalents, without regard to any restrictions or conditions
with respect to the exercisability of such Share Equivalents.

 

“Governmental Entity”
means any (i) nation, region, state, province, county, city, town,
village, district or other jurisdiction, (ii) federal, state, local,
municipal, foreign or other government, (iii) governmental or
quasi-governmental authority of any nature (including any governmental agency,
branch, department, court or tribunal, or other entity),
(iv) multinational organization or body or (v) body entitled to
exercise any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power of any nature or any other self-regulatory
organizations.

 

“Group” has the
meaning assigned to it in Section 13(d)(3) of the Exchange Act and
Rule 13d-5 thereunder.

 

“Independent Financial
Expert” means a nationally recognized financial advisory firm approved by a
majority of the Disinterested Directors.

 

“Investor Investment
Advisor” means any independently operated business unit of any Affiliate of
Investor that holds shares of Common Stock (i) in trust for the benefit of
persons other than any Investor Party, (ii) in mutual funds, open- or
closed-end investment funds or other pooled investment vehicles sponsored,
managed or advised or subadvised by such Investor Investment Advisor,
(iii) as agent and not principal, or (iv) in any other case where
such Investor Investment Advisor is disaggregated from Investor for the
purposes of Section 13(d) of the Exchange Act; provided, however,
that  (A) in each case, such shares of Common Stock were acquired
in the ordinary course of business of the Investor Investment Advisor’s
respective investment management or securities business and not with the intent
or purpose on the part of Investor or the Investor Parties  of influencing control of the Company or
avoiding the provisions of this Agreement and (B) where appropriate,
“Chinese walls” or other informational barriers and other procedures have been
established.  For avoidance of doubt, for
purposes of this Agreement shares of Common Stock held by an Investor
Investment Advisor shall not be deemed to be Beneficially Owned by Investor or
the Investor Parties.

 

“Investor Parties”
means Investor and its Affiliates; provided, however, that none of the Company,
any Subsidiary of the Company or any Investor Investment Advisor shall be
deemed to be an Investor Party.

 

10

 

“Large
Stockholder” means a Person that is the Beneficial Owner of more than ten
percent (10%) of the outstanding shares of Common Stock on a Fully Diluted
Basis.

 

“Law” means any
statutes, laws (including common law), rules, ordinances, regulations, codes,
orders, judgments, decisions, injunctions, writs, decrees, applicable to the
Company, Common Stock or Investor Parties.

 

“Merger Transaction”
means any transaction involving the acquisition (by purchase, merger or
otherwise) by any Person or Group of Beneficial Ownership of voting securities
of the Company entitling such Person or Group to exercise a majority of the
total voting power of all outstanding securities entitled to vote generally in
elections of directors of the Company.

 

“Ordinary Course of
Business” means the ordinary and usual course of day-to-day operations of
the business of the Company consistent with past practice.

 

“Other Stockholder”
means, as of the date of the action in question, any Person not Affiliated with
Brookfield Asset Management, Inc., Fairholme Capital Management LLC,
Pershing Capital Management L.P., any transferee who is a party to a transferee
agreement under the Brookfield Non-Control Agreement, the [Fairholme][Pershing
Square] Non-Control Agreement or this Agreement or any of their respective
Affiliates.

 

“Ownership Cap” means
the lower of (i) [twenty-five percent (25%)][thirty percent (30%)](6) of the
then-outstanding Common Stock on a Fully Diluted Basis and (ii) the sum of
five percent (5%) and the percentage of the outstanding Common Stock on a Fully Diluted
Basis that the Investor Parties Economically Own as of the Effective Date.

 

[“Pershing
Square Non-Control Agreement” means the Non-Control Agreement,
dated as of the date hereof, among the Company and [insert names of Pershing Square purchasers].]

 

“Person” means an
individual, a group (including a “group” under Section 13(d) of the
Exchange Act), a partnership, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a Governmental Entity or any department, agency or political
subdivision thereof.

 

“Public Stock” means
common stock listed on a recognized U.S. national securities exchange with an
aggregate market capitalization (held by non-Affiliates of the issuer) in
excess of $1 billion in Fair Market Value.

 

“Rule 144” means
Rule 144 promulgated by the SEC under the Securities Act, or any successor
rule or regulation hereafter adopted by the SEC, as the same may be amended
and shall be in effect from time to time.

 

(6) 
Note to Draft: 25% for the Pershing Square Non-Control Agreement and 30% for
the Fairholme Non-Control Agreement.

 

11

 

“SEC” means the
Securities and Exchange Commission or any other federal agency then
administering the Exchange Act, the Securities Act and other federal securities
laws.

 

“Securities Act”
means the Securities Act of 1933, as amended, or any successor federal statute,
and the rules and regulations of the SEC promulgated thereunder, all as
the same may be amended and shall be in effect from time to time.

 

“Share Equivalent”
means any stock, warrants, rights, calls, options or other securities
exchangeable or exercisable for, or convertible into, shares of Common Stock.

 

“Subsidiary” means,
with respect to a Person, any corporation, limited liability company,
partnership, trust or other entity of which such Person owns (either alone,
directly, or indirectly through, or together with, one or more of its
Subsidiaries) 50% or more of the equity interests the holder of which is
generally entitled to vote for the election of the board of directors or
governing body of such corporation, limited liability company, partnership,
trust or other entity.

 

“Transaction Documents”
means, individually or collectively, the Investment Agreement or the Warrant.

 

“Transferee” means
any proposed transferee of securities pursuant to Sections 2.2(b)(i) or
2.2(b)(vi).

 

“Votes
Cast” means the aggregate number of shares of Common Stock that are
properly voted for or against any action to be taken by stockholders, excluding
any shares if the holder of such shares is contractually required to vote in
proportion of the total number of votes cast pursuant to this Agreement, the Brookfield Non-Control Agreement, the [Fairholme][Pershing
Square] Non-Control Agreement or any transferee agreement executed hereunder or
thereunder.

 

“Warrants” means the
New Warrants (as defined in the Investment Agreement).

 

MISCELLANEOUS

 

Notices. All notices and other
communications in connection with this Agreement shall be in writing and shall
be considered given if given in the manner, and be deemed given at times, as
follows:  (a) on the date delivered,
if personally delivered; (b) on the day of transmission if sent via
facsimile transmission to the facsimile number given below, and telephonic
confirmation of receipt is obtained promptly after completion of transmission;
or (c) on the next Business Day after being sent by recognized overnight mail
service specifying next business day delivery, in each case with delivery
charges pre-paid and addressed to the following addresses:

 

12

 

If
to Investor, to:

 

[insert name, address and contact details of Investor]

 

with a copy (which shall not constitute notice) to:

 

[insert name, address and contact details of cc]

 

If
to Company, to:

 

General Growth Properties, Inc.

110 N. Wacker Drive

Chicago, IL 60606

Attention: Ronald L. Gern, Esq.

Facsimile: 312-960-5485

 

with a copy (which shall not constitute notice) to:

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

	
  Attention:

  	
  Marcia L. Goldstein, Esq.

  
	
   

  	
  Frederick S. Green, Esq.

  
	
   

  	
  Gary T. Holtzer

  
	
   

  	
  Malcolm E. Landau

  

Facsimile: (212) 310-8007

 

Assignment; No Third Party Beneficiaries.  Neither this Agreement nor any of the rights,
interests or obligations under this Agreement may be assigned by any party
without the prior written consent of the other party.  This Agreement (including the documents and
instruments referred to in this Agreement) is not intended to and does not
confer upon any person other than the parties hereto any rights or remedies
under this Agreement.

 

Prior Negotiations; Entire Agreement.  This Agreement (including the exhibits hereto
and the documents and instruments referred to in this Agreement) constitutes
the entire agreement of the parties hereto and supersedes all prior agreements,
arrangements or understandings, whether written or oral, between the parties
hereto with respect to the subject matter of this Agreement.

 

Governing Law; Venue.  THIS AGREEMENT, AND ALL CLAIMS OR CAUSES OF
ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF
OR RELATE TO THIS AGREEMENT OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF
THIS AGREEMENT WILL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF DELAWARE.  BOTH
PARTIES HEREBY IRREVOCABLY SUBMIT TO THE

 

13

 

JURISDICTION
OF, AND VENUE IN, DELAWARE AND WAIVES ANY OBJECTION BASED ON FORUM NON
CONVENIENS.

 

Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each of the
parties hereto, and delivered to the other party (including via facsimile or
other electronic transmission), it being understood that each party need not
sign the same counterpart.

 

Expenses.  Except as otherwise provided in this
Agreement, Investor and the Company shall each bear its own expenses
incurred in connection with the negotiation and execution of this Agreement and
each other agreement, document and instrument contemplated by this Agreement
and the consummation of the transactions contemplated hereby and thereby.

 

Waivers and Amendments.  Subject to Section 5.2, this
Agreement may be amended, modified, superseded, cancelled, renewed or extended,
and the terms and conditions of this Agreement may be waived, only by a written
instrument signed by Investor and the Company (with the approval of a majority
of the Disinterested Directors) or, in the case of a waiver, by the party
waiving compliance, and subject, to the extent required, to the approval of the
Bankruptcy Court.  No delay on the part
of any party in exercising any right, power or privilege pursuant to this
Agreement shall operate as a waiver thereof, nor shall any waiver on the part
of any party of any right, power or privilege pursuant to this Agreement, nor
shall any single or partial exercise of any right, power or privilege pursuant
to this Agreement, preclude any other or further exercise thereof or the
exercise of any other right, power or privilege pursuant to this
Agreement.  The rights and remedies
provided pursuant to this Agreement are cumulative and are not exclusive of any
rights or remedies which any party otherwise may have at law or in equity.

 

Construction.

 

The headings in this
Agreement are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement.

 

Unless the context otherwise
requires, as used in this Agreement: 
(i) “or” shall mean “and/or”; (ii) “including” and its
variants mean “including, without limitation” and its variants;
(iii) words defined in the singular have the parallel meaning in the
plural and vice versa; (iv) references to “written” or “in writing”
include in visual electronic form; (v) words of one gender shall be
construed to apply to each gender; and (vi) the terms “Article” and
“Section” refer to the specified Article or Section of this
Agreement.

 

Severability.  If any term or other provision of this
Agreement is invalid, illegal, or incapable of being enforced by any law or
public policy, all other terms or provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party.  Upon
such determination that any term or other provision is invalid, illegal, or
incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties
hereto as closely as possible in an

 

14

 

acceptable
manner in order that the transactions contemplated hereby are consummated as
originally contemplated to the greatest extent possible.

 

Equitable Relief.  It is hereby acknowledged that irreparable
harm would occur in the event that any of the provisions of this Agreement were
not performed fully by the parties hereto in accordance with the terms
specified herein, and that monetary damages are an inadequate remedy for breach
of this Agreement because of the difficulty of ascertaining and quantifying the
amount of damage that will be suffered by the parties hereto relying hereon in
the event that the undertakings and provisions contained in this Agreement were
breached or violated.  Accordingly, each
party hereto hereby agrees that each other party hereto shall be entitled to an
injunction or injunctions to restrain, enjoin and prevent breaches of the
undertakings and provisions hereof and to enforce specifically the undertakings
and provisions hereof in any court of the United States or any state having
jurisdiction over the matter; it being understood that such remedies shall be
in addition to, and not in lieu of, any other rights and remedies available at
law or in equity.

 

Successor Securities.  The provisions of this Agreement pertaining
to shares of Common Stock shall apply to all shares of Common Stock
Beneficially Owned by any Investor Party and any voting equity securities of
the Company, regardless of class, series, designation or par value, that are
issued as a dividend on or in any other distribution in respect of, or as a
result of a reclassification (including a change in par value) in respect of,
shares of Common Stock or other shares of the Company which, as provided by
this section, are considered as shares of Common Stock for purposes of this
Agreement and shall also apply to any voting equity security issued by any
company that succeeds, by merger, consolidation, a share exchange, a
reorganization of the Company or any similar transaction, to all or
substantially all the business of the Company, or to the ownership thereof, if
such security was issued in exchange for or otherwise as consideration for or
in respect of shares of Common Stock (or other shares considered as shares of
Common Stock, as provided by this definition) in connection with such
succession transaction.

 

Voting Procedures.  If, in connection with any stockholder
meeting or consent solicitation, Investor or the Investor Parties are
required under the terms of this Agreement to vote in proportion to the
Unaffiliated Stockholders, then the parties shall cooperate to determine
appropriate procedures and mechanics to facilitate such proportionate voting.

 

** REMAINDER OF PAGE INTENTIONALLY LEFT BLANK**

 

15

 

IN WITNESS WHEREOF, the
undersigned have caused this Agreement to be executed and delivered by each of
them or their respective officers thereunto duly authorized, all as of the date
first written above.

 

 

	
   

  	
  GENERAL GROWTH PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [INSERT NAME OF INVESTOR]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

16

 

SCHEDULE I – GGO AND GGP PRO RATA SHARES

 

For
the purpose of this Schedule I:

 

“Aggregate
GGP Pro Rata Share” means the quotient of 2.5 divided by 3.5.

 

	
  Purchaser

  	
   

  	
  GGO Pro Rata Share

  
	
   

  	
   

  	
   

  
	
  The
  Fairholme Fund

  	
   

  	
  49.4650%

  
	
   

  	
   

  	
   

  
	
  Fairholme
  Focused Income Fund

  	
   

  	
  0.5350%

  

 

	
  Purchaser

  	
   

  	
  GGP Pro Rata Share

  
	
   

  	
   

  	
   

  
	
  The
  Fairholme Fund

  	
   

  	
  The
  Aggregate GGP Pro Rata Share multiplied by 98.9358239%

  
	
   

  	
   

  	
   

  
	
  Fairholme
  Focused Income Fund

  	
   

  	
  The
  Aggregate GGP Pro Rata Share multiplied by 1.0641761%

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