Document:

Exhibit
10.2

 

EXECUTION COPY

 

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

 

by and among

 

THE
MACERICH PARTNERSHIP, L.P.,

as
the Borrower

 

THE MACERICH COMPANY

as
Guarantor

 

DEUTSCHE
BANK TRUST COMPANY AMERICAS,

JPMORGAN CHASE BANK,

and

THE
INSTITUTIONS FROM TIME TO TIME PARTY HERETO

as Lenders

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as the Administrative Agent for the Lenders

 

DEUTSCHE BANK SECURITIES INC.

and

J.P.
MORGAN SECURITIES INC.,

as the Joint Lead Arrangers and Joint Bookrunners

 

JPMORGAN CHASE BANK

and

BANK ONE, N.A.,

as the Co-Syndication Agents

 

EUROHYPO AG, New York Branch

and

WELLS FARGO BANK, National
Association

as the Co-Documentation Agents

 

COMMERZBANK AG, New York and Grand
Cayman Branches

and

FLEET NATIONAL BANK

as the Managing Agents

 

U.S. BANK NATIONAL ASSOCIATION

and

SOCIETE GENERALE

as the Co-Agents

 

Amended and Restated as of
July 30, 2004

 

 

TABLE OF CONTENTS

 

	
  RECITALS

  	
   

  
	
  AGREEMENT

  	
   

  
	
   

  	
   

  
	
  1.

  	
  Credit Facility

  	
   

  
	
   

  	
  1.1

  	
  Term Loan
  Amount

  	
   

  
	
   

  	
  1.2

  	
  Funding of
  Term Loan

  	
   

  
	
   

  	
  1.3

  	
  Repayment
  of Principal

  	
   

  
	
   

  	
  1.4

  	
  Term Loan
  Extension

  	
   

  
	
   

  	
  1.5

  	
  Interest

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Interest
  Rate and Yield-Related Provisions

  	
   

  
	
   

  	
  2.1

  	
  Applicable
  Interest Rate

  	
   

  
	
   

  	
  2.2

  	
  Payment of
  Interest

  	
   

  
	
   

  	
  2.3

  	
  Procedures
  for Interest Rate Election

  	
   

  
	
   

  	
  2.4

  	
  Inability
  to Determine Rate

  	
   

  
	
   

  	
  2.5

  	
  Illegality

  	
   

  
	
   

  	
  2.6

  	
  Funding

  	
   

  
	
   

  	
  2.7

  	
  Requirements
  of Law; Increased Costs

  	
   

  
	
   

  	
  2.8

  	
  Obligation
  of Lenders to Mitigate; Replacement of Lenders

  	
   

  
	
   

  	
  2.9

  	
  Funding
  Indemnification

  	
   

  
	
   

  	
  2.10

  	
  Taxes

  	
   

  
	
   

  	
  2.11

  	
  [RESERVED]

  	
   

  
	
   

  	
  2.12

  	
  Post-Default
  Interest

  	
   

  
	
   

  	
  2.13

  	
  Computations

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Payments

  	
   

  
	
   

  	
  3.1

  	
  Evidence of
  Indebtedness

  	
   

  
	
   

  	
  3.2

  	
  Nature and
  Place of Payments

  	
   

  
	
   

  	
  3.3

  	
  Prepayments

  	
   

  
	
   

  	
  3.5

  	
  Allocation
  of Payments Received

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Credit Support

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
  Guaranties.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Conditions
  Precedent

  	
   

  
	
   

  	
  5.1

  	
  Conditions
  to Funding of Term Loan

  	
   

  
	
   

  	
  5.2

  	
  Outside
  Closing Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Representations
  and Warranties

  	
   

  
	
   

  	
  6.1

  	
  Financial
  Condition

  	
   

  
	
   

  	
  6.2

  	
  No Material
  Adverse Effect

  	
   

  
	
   

  	
  6.3

  	
  Compliance
  with Laws and Agreements

  	
   

  
	
   

  	
  6.4

  	
  Organization,
  Powers; Authorization; Enforceability

  	
   

  
	
   

  	
  6.5

  	
  No Conflict

  	
   

  
	
   

  	
  6.6

  	
  No Material
  Litigation

  	
   

  
	
   

  	
  6.7

  	
  Taxes

  	
   

  

 

i

 

	
   

  	
  6.8

  	
  Investment
  Company Act

  	
   

  
	
   

  	
  6.9

  	
  Subsidiary
  Entities

  	
   

  
	
   

  	
  6.10

  	
  Federal Reserve
  Board Regulations

  	
   

  
	
   

  	
  6.11

  	
  ERISA
  Compliance

  	
   

  
	
   

  	
  6.12

  	
  Assets
  and Liens

  	
   

  
	
   

  	
  6.13

  	
  Securities
  Acts

  	
   

  
	
   

  	
  6.14

  	
  Consents,
  Etc.

  	
   

  
	
   

  	
  6.15

  	
  Hazardous
  Materials

  	
   

  
	
   

  	
  6.16

  	
  Regulated
  Entities

  	
   

  
	
   

  	
  6.17

  	
  Copyrights,
  Patents, Trademarks and Licenses, etc.

  	
   

  
	
   

  	
  6.18

  	
  REIT
  Status

  	
   

  
	
   

  	
  6.19

  	
  Insurance

  	
   

  
	
   

  	
  6.20

  	
  Full
  Disclosure

  	
   

  
	
   

  	
  6.21

  	
  Indebtedness

  	
   

  
	
   

  	
  6.22

  	
  Real Property

  	
   

  
	
   

  	
  6.23

  	
  Brokers

  	
   

  
	
   

  	
  6.24

  	
  No
  Default

  	
   

  
	
   

  	
  6.25

  	
  Solvency

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Affirmative
  Covenants

  	
   

  
	
   

  	
  7.1

  	
  Financial
  Statements

  	
   

  
	
   

  	
  7.2

  	
  Certificates;
  Reports; Other Information

  	
   

  
	
   

  	
  7.3

  	
  Maintenance
  of Existence and Properties

  	
   

  
	
   

  	
  7.4

  	
  Inspection
  of Property; Books and Records; Discussions

  	
   

  
	
   

  	
  7.5

  	
  Notices

  	
   

  
	
   

  	
  7.6

  	
  Expenses

  	
   

  
	
   

  	
  7.7

  	
  Payment of
  Indemnified Taxes and Other Taxes and Charges

  	
   

  
	
   

  	
  7.8

  	
  Insurance

  	
   

  
	
   

  	
  7.9

  	
  Hazardous
  Materials

  	
   

  
	
   

  	
  7.10

  	
  Compliance
  with Laws and Contractual Obligations; Payment of The Taxes

  	
   

  
	
   

  	
  7.11

  	
  Further Assurances

  	
   

  
	
   

  	
  7.13

  	
  REIT Status

  	
   

  
	
   

  	
  7.14

  	
  Use of Proceeds

  	
   

  
	
   

  	
  7.15

  	
  RESERVED

  	
   

  
	
   

  	
  7.16

  	
  Management of Projects

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Negative Covenants

  	
   

  
	
   

  	
  8.1

  	
  Liens

  	
   

  
	
   

  	
  8.2

  	
  Indebtedness

  	
   

  
	
   

  	
  8.3

  	
  Fundamental Change

  	
   

  
	
   

  	
  8.4

  	
  Dispositions

  	
   

  
	
   

  	
  8.5

  	
  Investments

  	
   

  
	
   

  	
  8.6

  	
  Transactions
  with Partners and Affiliates

  	
   

  
	
   

  	
  8.7

  	
  Margin Regulations;
  Securities Laws

  	
   

  
	
   

  	
  8.8

  	
  Organizational Documents

  	
   

  
	
   

  	
  8.9

  	
  Fiscal Year

  	
   

  
	
   

  	
  8.10

  	
  Senior Management

  	
   

  
	
   

  	
  8.11

  	
  Distributions

  	
   

  

 

ii

 

	
   

  	
  8.12

  	
  Financial
  Covenants of Borrower Parties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Events of Default

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10

  	
  The Agents

  	
   

  
	
   

  	
  10.1

  	
  Appointment

  	
   

  
	
   

  	
  10.2

  	
  Delegation of Duties

  	
   

  
	
   

  	
  10.3

  	
  Exculpatory Provisions

  	
   

  
	
   

  	
  10.4

  	
  Reliance by the Agents

  	
   

  
	
   

  	
  10.5

  	
  Notice of Default

  	
   

  
	
   

  	
  10.6

  	
  Non-Reliance
  on Agents and Other Lenders

  	
   

  
	
   

  	
  10.7

  	
  Indemnification

  	
   

  
	
   

  	
  10.8

  	
  Agents in Their
  Individual Capacity

  	
   

  
	
   

  	
  10.9

  	
  Successor Administrative
  Agent

  	
   

  
	
   

  	
  10.11

  	
  Limitations on Agents
  Liability

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Miscellaneous
  Provisions

  	
   

  
	
   

  	
  11.1

  	
  No Assignment by Borrower
  Parties

  	
   

  
	
   

  	
  11.2

  	
  Modification

  	
   

  
	
   

  	
  11.3

  	
  Cumulative Rights; No
  Waiver

  	
   

  
	
   

  	
  11.4

  	
  Entire Agreement

  	
   

  
	
   

  	
  11.5

  	
  Survival

  	
   

  
	
   

  	
  11.6

  	
  Notices

  	
   

  
	
   

  	
  11.7

  	
  Governing Law

  	
   

  
	
   

  	
  11.8

  	
  Assignments,
  Participations, Etc.

  	
   

  
	
   

  	
  11.9

  	
  Counterparts

  	
   

  
	
   

  	
  11.10

  	
  Sharing of Payments

  	
   

  
	
   

  	
  11.11

  	
  Confidentiality

  	
   

  
	
   

  	
  11.12

  	
  Consent to Jurisdiction

  	
   

  
	
   

  	
  11.13

  	
  Waiver of Jury Trial

  	
   

  
	
   

  	
  11.14

  	
  Indemnity

  	
   

  
	
   

  	
  11.15

  	
  Telephonic Instruction

  	
   

  
	
   

  	
  11.16

  	
  Marshalling; Payments
  Set Aside

  	
   

  
	
   

  	
  11.17

  	
  Set-off

  	
   

  
	
   

  	
  11.18

  	
  Severability

  	
   

  
	
   

  	
  11.19

  	
  No Third Parties Benefited

  	
   

  

 

iii

 

SCHEDULE OF
ANNEXES, SCHEDULES AND EXHIBITS

 

ANNEXES:

 

	
  Annex 1

  	
  Glossary

  
	
   

  	
   

  
	
  SCHEDULES:

  	
   

  
	
   

  	
   

  
	
  Schedule 6.6

  	
  Material Litigation

  
	
   

  	
   

  
	
  Schedule 6.9

  	
  Subsidiary Entities

  
	
   

  	
   

  
	
  Schedule 6.11

  	
  ERISA

  
	
   

  	
   

  
	
  Schedule 6.14

  	
  Consents

  
	
   

  	
   

  
	
  Schedule 6.15

  	
  Hazardous Materials

  
	
   

  	
   

  
	
  Schedule 6.19

  	
  Insurance

  
	
   

  	
   

  
	
  Schedule 6.21

  	
  Indebtedness

  
	
   

  	
   

  
	
  Schedule 6.22

  	
  Real Property

  
	
   

  	
   

  
	
  Schedule 7.16

  	
  Wholly-Owned Projects
  with Non-Standard Management Agreements

  
	
   

  	
   

  
	
  Schedule 8.1

  	
  Additional Permitted
  Liens

  
	
   

  	
   

  
	
  Schedule 8.6

  	
  Transactions with
  Affiliates

  
	
   

  	
   

  
	
  Schedule 11.6

  	
  Addresses for Notices,
  Etc.

  
	
   

  	
   

  
	
  Schedule G-1

  	
  Percentage Share

  
	
   

  	
   

  
	
  Schedule G-2

  	
  Description of
  Guaranties

  
	
   

  	
   

  
	
  EXHIBITS:

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Form of Assignment and
  Acceptance Agreement

  
	
   

  	
   

  
	
  Exhibit B

  	
  Form of Closing
  Certificate

  
	
   

  	
   

  
	
  Exhibit C

  	
  Form of Compliance
  Certificate

  
	
   

  	
   

  
	
  Exhibit D

  	
  Form of Management
  Agreement

  
	
   

  	
   

  
	
  Exhibit E

  	
  Form of Note

  
	
   

  	
   

  
	
  Exhibit F

  	
  Form of Rate Request

  

 

iv

 

CREDIT AGREEMENT

 

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

 

RECITALS

 

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

 

B.            The Lenders party
hereto have agreed to amend and restate such credit facility and DBTCA has
agreed to act as administrative agent on behalf of the Lenders on the terms and
subject to the conditions set forth herein and in the other Loan Documents (as
that term and capitalized terms are defined in, or the location of the
definitions thereof referenced in, the Glossary attached hereto as Annex I
and by this reference incorporated herein).

 

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

 

NOW, THEREFORE, in
consideration of the above Recitals and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree that the Existing Credit Agreement is hereby amended and
restated to read in its entirety as follows:

 

AGREEMENT

 

ARTICLE 1.           Credit Facility.

 

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

 

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

 

1

 

other Lender of its
obligation hereunder to advance its Percentage Share thereof, but no Lender
shall be responsible for the failure of any other Lender to make its required
advance.

 

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

 

1.4           Term Loan Extension.

 

(1)           Provided that no
Potential Default or Event of Default shall have occurred and be continuing,
the Borrower shall have the option, to be exercised by giving written notice to
the Administrative Agent at least thirty (30) days prior to the Original
Maturity Date, subject to the terms and conditions set forth in this Agreement,
to extend the Original Maturity Date by twelve (12) months to May 13, 2008 (the
“Extended Maturity Date”).  The
request by the Borrower for the extension of the Original Maturity Date shall
constitute a representation and warranty by the Borrower Parties that no
Potential Default or Event of Default then exists and that all of the
conditions set forth in Section 1.4(2) below shall have been
satisfied on the Original Maturity Date. 
The Administrative Agent shall notify the Lenders if it receives a
request by the Borrower for the extension of the Original Maturity Date.

 

(2)           The obligations of the
Administrative Agent and the Lenders to extend the Original Maturity Date as
provided in Section 1.4(1) shall be subject to the prior
satisfaction of each of the following conditions precedent as determined by the
Administrative Agent in its good faith judgment:  (A) on the Original Maturity Date there shall exist no Potential
Default or Event of Default; (B) the Borrower shall have paid to the
Administrative Agent for the ratable benefit of the Lenders an extension fee (the
“Extension Fee”) equal to one-quarter of one percent (0.25%) of the then
outstanding principal balance of the Term Loan (which fee the Borrower hereby
agrees shall be fully earned and nonrefundable under any circumstances when
paid); (C) the representations and warranties made by the Borrower Parties in
the Loan Documents shall have been true and correct in all material respects
when made and shall also be true and correct in all material respects on the
Original Maturity Date (provided, however, that any factual matters disclosed
in the Schedules referenced in Article 6 shall be subject to update in
accordance with clause (D) below); (D) the Borrower Parties shall have
delivered updates to the Administrative Agent of all the Schedules set forth in
Article 6 hereof and such updated Schedules shall be acceptable to
Administrative Agent in its reasonable judgment; (E) the Borrower shall have
delivered to the Administrative Agent a Compliance Certificate demonstrating
that the Borrower Parties are in compliance with the covenants set forth in Article 8;
(F) the Borrower shall have paid all reasonable out-of-pocket costs and
expenses incurred by the Administrative Agent and all reasonable fees and
expenses paid to third party consultants (including reasonable attorneys’ fees
and expenses) by Administrative Agent in connection with such extension; (G)
MAC shall have acknowledged and ratified that its obligations under the
Guaranty remains in full force and effect, and the Guaranty continues to
guaranty the Obligations under the Loan Documents, as extended; (H) the
outstanding amount of the Obligations owed hereunder (including, without
limitation, the outstanding principal balance of the Term Loan, all accrued and
unpaid interest thereon and all fees, costs and expenses owed hereunder) shall
not

 

2

 

exceed $200,000,000 as of
the Original Maturity Date; and (I) all amounts owed under the Existing Term
Facility shall have been paid in full on or prior to the Original Maturity
Date.

 

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

 

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

 

ARTICLE 2.           Interest Rate and Yield-Related
Provisions.

 

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

 

2.2           Payment of Interest.

 

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

 

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

 

2.3           Procedures for
Interest Rate Election.

 

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

 

(2)           The Borrower may elect
to have the Term Loan or portions thereof funded on the Closing Date as Base
Rate Loans and may from time to time thereafter elect to convert portions of
the Term Loan outstanding as LIBO Rate Loans to Base Rate Loans by

 

3

 

giving the Administrative
Agent irrevocable notice of such election no later than 1:00 p.m. (New York
time) on the third Eurodollar Business Day preceding the proposed funding or
conversion date.

 

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

 

(4)           No portion of the Term
Loan shall be funded or continued as a LIBO Rate Loan and no portion of the
Term Loan shall be converted into a LIBO Rate Loan if an Event of Default or
Potential Default has occurred and is continuing on the day occurring three
Eurodollar Business Days prior to the date of, or on the date of, the requested
funding, continuation or conversion.

 

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

 

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

 

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

 

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

 

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

 

4

 

in the event that the
circumstances giving rise thereto no longer pertain and that adequate and
reasonable means exist for ascertaining the LIBO Rate for the Interest Period
requested by the Borrower, and, following withdrawal of such notice by the
Administrative Agent, the Borrower shall have the right to convert any Base
Rate Loan to a LIBO Rate Loan and to continue any LIBO Rate Loan as such in
accordance with the terms and conditions of this Agreement.

 

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

 

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

 

2.7           Requirements of Law;
Increased Costs.

 

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

 

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

 

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

 

5

 

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

 

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

 

(2)           If a Lender becomes
entitled to claim any additional amounts pursuant to this Section 2.7,
it shall promptly notify the Borrower of the event by reason of which it has
become so entitled.  A certificate as to
any additional amounts so claimed payable containing the calculation thereof in
reasonable detail submitted by a Lender to the Borrower, accompanied by a
certification that such Lender has required substantially all obligors under
other commitments of this type made available by such Lender to similarly so
compensate such Lender, shall constitute prima facie evidence thereof.

 

(3)           Failure or delay on the
part of any Lender to demand compensation pursuant to this Section 2.7
shall not constitute a waiver of such Lender’s right to demand such
compensation.  The provisions of this Section 2.7
shall survive the termination of this Agreement and payment of the Term Loan
and all other Obligations.

 

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

 

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

 

(2)           If the Borrower
receives a notice pursuant to Section 2.7 above or pursuant to Section 2.10
below or a notice pursuant to Section 2.5 above stating that a
Lender is unable to maintain LIBO Rate Loans (for reasons not generally
applicable to the Required

 

6

 

Lenders), so long as (i)
no Potential Default or Event of Default shall have occurred and be continuing,
(ii) the Borrower has obtained a commitment from another Lender or an Eligible
Assignee to purchase at par such Lender’s Percentage Share of the Term Loan and
accrued interest and fees and to assume all obligations of the Lender to be
replaced under the Loan Documents and (iii) such Lender to be replaced is
unwilling to withdraw the notice delivered to the Borrower, upon thirty (30)
days’ prior written notice to such Lender and the Administrative Agent, the
Borrower may require, at the Borrower’s expense, the Lender giving such notice
to assign, without recourse, all of its Percentage Share of the Term Loan and
accrued interest and fees to such other Lender or Eligible Assignee pursuant to
the provisions of Section 11.8 below.

 

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

 

2.10         Taxes.

 

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

 

7

 

deductions and
(iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

 

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

 

(3)           The Borrower shall
indemnify the Administrative Agent and each Lender, within ten (10) Business
Days after written demand therefore, for the full amount of any Indemnified
Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 2.10)
paid by the Administrative Agent or such Lender, as the case may be, and any
penalties, interest (except to the extent such penalties and/or interest arise
as a result of a Lender’s delay in dealing with any such Indemnified Tax) and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender or by the Administrative Agent on its own
behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

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

 

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

 

8

 

2.11         [RESERVED]

 

2.12         Post-Default Interest.  During such time as there shall have
occurred and be continuing an Event of Default, all Obligations outstanding
shall, at the election of the Administrative Agent, bear interest at a per
annum rate equal to two percent (2.0%) above the Applicable Base Rate in effect
during the applicable calculation period (whether or not such Applicable Base
Rate shall otherwise have been elected by the Borrower in accordance with this
Agreement).

 

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

 

ARTICLE 3.           Payments.

 

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

 

3.2           Nature and Place of
Payments.  All payments made on
account of the Obligations shall be made by the Borrower, without setoff or
counterclaim, in lawful money of the United States of America in immediately
available same day funds, free and clear of and without deduction for any
Indemnified Taxes or Other Taxes, fees or other charges of any nature
whatsoever imposed by any taxing authority and must be received by the
Administrative Agent by 1:00 p.m. (New York time) on the day of payment,
it being expressly agreed and understood that if a payment is received after
1:00 p.m. (New York time) by the Administrative Agent, such payment will
be considered to have been made by the Borrower on the next succeeding Business
Day and interest thereon shall be payable by the Borrower at the rate otherwise
applicable thereto during such extension. 
All payments on account of the Obligations shall be made to the
Administrative Agent through the Contact Office.  If any payment required to be made by the Borrower hereunder
becomes due and payable on a day other than a Business Day, the due date
thereof shall be extended to the next succeeding Business Day and interest
thereon shall be payable at the then applicable rate during such extension.

 

3.3           Prepayments.

 

(1)           Upon not less than one
(1) Business Day’s prior written notice (in the case of Base Rate Loans or LIBO
Rate Loans with Interest Periods expiring on the date of payment) or three (3)
Eurodollar Business Days’ prior written notice (in the case of LIBO Rate Loans
with an Interest Period not expiring on the date of payment) to the
Administrative Agent (which shall promptly provide telephonic notice of the
receipt thereof to each of the Lenders), the Borrower may voluntarily prepay
principal amounts outstanding under the Term Loan in

 

9

 

whole or in part;
provided, however, that voluntary prepayments shall be in the minimum amount of
$1,000,000 and integral multiples of $100,000 in excess thereof.

 

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

 

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

 

3.4          [RESERVED]

 

3.5           Allocation of
Payments Received.

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)           The order of priority
set forth in Section 3.5(2) and the related provisions of this
Agreement are set forth solely to determine the rights and priorities of the

 

10

 

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

 

ARTICLE 4.           Credit
Support.  As credit support for
the Obligations, on or before the Closing Date, MAC shall execute and deliver
to the Administrative Agent, for the benefit of the Lenders, the REIT Guaranty.

 

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

 

ARTICLE 5.           Conditions Precedent.

 

5.1           Conditions to
Funding of Term Loan.  As conditions
precedent to the agreement of the Lenders to fund their respective Percentage
Shares of the Term Loan:

 

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

 

(A)          This Agreement;

 

(B)           To the extent requested
by any Lender pursuant to Section 3.1 above, a Note payable to such
Lender;

 

(C)           The Guaranty;

 

11

 

(D)          The Fee Letter;

 

(E)           A certificate of the
Secretary or Assistant Secretary of the general partner of the Borrower
attaching copies of resolutions duly adopted by the Board of Directors of such
general partner approving the execution, delivery and performance of the Loan
Documents on behalf of the Borrower and certifying the names and true
signatures of the officers of such general partner authorized to sign the Loan
Documents to which the Borrower is a party;

 

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

 

(G)           An opinion of counsel
for the Borrower Parties as of the Closing Date, in form and substance
reasonably acceptable to the Administrative Agent and the Lenders;

 

(H)          Copies of the
Certificate of Incorporation, Certificate of Formation, or Certificate of
Limited Partnership of each of the Borrower Parties, certified by the Secretary
of State of the state of formation of such Person as of a recent date; provided
that if there has been no amendment or modification to the aforementioned
documents since they were delivered to the Administrative Agent on
July 26, 2002, then each Borrower Party may deliver a certificate from the
Secretary or an Assistant Secretary of such Borrower Party (or if such Person
is a limited partnership, an authorized representative of its general partner)
as of the date of this Agreement certifying that the documents as previously
delivered are true and correct and that there have been no amendments or
changes to such documents;

 

(I)            Copies of the
Organizational Documents of each of the Borrower Parties (unless delivered
pursuant to clause (G) above) certified by the Secretary or an Assistant
Secretary of such Person (or if such Person is a limited partnership, an
authorized representative of its general partner) as of the date of this
Agreement as being accurate and complete; provided that if there has been no
amendment or modification to the aforementioned documents since they were
delivered to the Administrative Agent on July 26, 2002, then each Borrower
Party may deliver a certificate from the Secretary or an Assistant Secretary of
such Borrower Party (or if such Person is a limited partnership, an authorized
representative of its general partner) as of the date of this Agreement
certifying that the documents as previously delivered are true and correct and
that there have been no amendments or modifications to such documents;

 

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

 

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

 

12

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5.2           Outside Closing Date.  If all conditions precedent set forth in Section 5.1
above shall not have been met to the satisfaction of the Administrative Agent
and the Lenders on or before May 15, 2003, then the agreement of the Lenders to
fund their respective Percentage Shares of the Term Loan shall terminate and
this Agreement shall automatically be deemed of no further force or effect
(except to the extent terms and provisions of this Agreement specifically
provide that they shall survive termination hereof).

 

ARTICLE 6.           Representations and Warranties.  As an inducement to the Administrative Agent
and each Lender to enter into this Agreement and for the Lenders to advance
their respective Percentage Shares of the Term Loan, each of the Borrower and
MAC, collectively and severally, represent and warrant as of the date hereof,
to the Administrative Agent and each Lender that:

 

13

 

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

 

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

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

 

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

 

6.4           Organization,
Powers; Authorization; Enforceability.

 

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

 

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

 

(3)           Each Affiliate
Guarantor (A) is either a corporation, a limited partnership or a limited
liability company duly incorporated, formed or organized, validly existing, and
in good standing under the laws of the State of its incorporation, organization
and/or formation, (B) is duly qualified to do business and is in good standing
under the laws of

 

14

 

each jurisdiction in
which failure to be so qualified and in good standing will have or is
reasonably expected to have a Material Adverse Effect, and (C) has all
requisite corporate, partnership or limited liability company power and authority
to own, operate and encumber its Property and to conduct its business as
presently conducted and as proposed to be conducted in connection with and
following the consummation of the transactions contemplated by this Agreement.

 

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

 

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

 

(6)           Each of the Loan
Documents to which each Borrower Party is a party has been duly executed and
delivered on behalf of such Borrower Party and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms
(subject to bankruptcy, insolvency, reorganization, or other laws affecting
creditors’ rights generally and to principles of equity, regardless of whether
considered in a proceeding in equity or at law), is in full force and effect
and all the terms, provisions, agreements and conditions set forth therein and
required to be performed or complied with by such Borrower Party on or before
the date hereof have been performed or complied with, and no Potential Default
or Event of Default exists thereunder.

 

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

 

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

 

15

 

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

 

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

 

6.9           Subsidiary Entities.  Schedule 6.9 (A) contains charts
and diagrams reflecting the corporate structure of the Borrower Parties and
their respective Subsidiary Entities indicating the nature of the corporate,
partnership, limited liability company or other equity interest in each Person
included in such chart or diagram; and (B) accurately sets forth (1) the
correct legal name of such Person, the type of organization, and the
jurisdiction of its incorporation or organization, and (2) each class of
outstanding Capital Stock of such Persons along with the percentage thereof
owned by the Borrower Parties and their Subsidiaries.  None of such issued and outstanding Capital Stock or Securities
is subject to any vesting, redemption, or repurchase agreement, and there are
no warrants or options outstanding with respect to such Securities, except as
noted on Schedule 6.9. The outstanding Capital Stock of each
Subsidiary Entity shown on Schedule 6.9 as being owned by a
Borrower Party or its Subsidiary is duly authorized, validly issued, fully paid
and nonassessable.  Except where failure
may not have a Material Adverse Effect, each Subsidiary Entity of Borrower
Parties: (A) is a corporation, limited liability company, or partnership, as
indicated on Schedule 6.9, duly organized, validly existing and, if
applicable, in good standing under the laws of the jurisdiction of its
organization, (B) is duly qualified to do business and, if applicable, is in
good standing under the laws of each jurisdiction in which failure to be so
qualified and in good standing would limit its ability to use the courts of
such jurisdiction to enforce Contractual Obligations to which it is a party,
and (C) has all requisite power and authority to own, operate and encumber its
Property and to conduct its business as presently conducted and as proposed to
be conducted hereafter.

 

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

 

6.11         ERISA Compliance.  Except as disclosed on Schedule 6.11:

 

16

 

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

 

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

 

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

 

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

 

(5)           None of the Borrower
Parties or their respective Subsidiaries, nor any ERISA Affiliate has incurred,
nor reasonably expects to incur, any liability under Title IV of ERISA
with respect to any Pension Plan (other than premiums due and not delinquent
under Section 4007 of ERISA) which has resulted or could reasonably be
expected to result in a Material Adverse Effect.

 

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

 

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

 

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

 

17

 

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

 

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

 

6.15         Hazardous Materials.  The Borrower Parties and the Macerich Core
Entities have caused Phase I and the other environmental assessments as set
forth in Schedule 6.15 to be conducted or have taken other steps to
investigate the past and present environmental condition and use of their Properties
(as used in this Section 6.15 and Section 7.9, the “Environmental
Properties”).  Based on such
investigation, except as otherwise disclosed on Schedule 6.15, to
the best knowledge of the Borrower and MAC: (1) no Hazardous Materials have
been discharged, disposed of, or otherwise released on, under, or from the
Environmental Properties so as to be reasonably expected to result in a
violation of Hazardous Materials Laws and a material adverse effect to such
Environmental Property or the owner thereof; (2) the owners of the
Environmental Properties have obtained all material environmental, health and
safety permits and licenses necessary for their respective operations, and all
such permits are in good standing and the holder of each such permit is currently
in compliance with all terms and conditions of such permits, except to the
extent the failure to obtain such permits or comply therewith is not reasonably
expected to result in a Material Adverse Effect or any material violation of
Hazardous Materials Laws or in a material adverse effect to such Environmental
Property or the owner thereof; (3) none of the Environmental Properties is
listed or proposed for listing on the National Priorities List (“NPL”)
pursuant to CERCLA or on the Comprehensive Environmental Response Compensation
Liability Information System List (“CERCLIS”) or any similar applicable
state list of sites requiring remedial action under any Hazardous Materials
Laws; (4) none of the owners of the Environmental Properties has sent or directly
arranged for the transport of any hazardous waste to any site listed or
proposed for listing on the NPL, CERCLIS or any similar state list; (5) there
is not now on or in any Environmental Property: (a) any landfill or surface
impoundment; (b) any underground storage tanks; (c) any asbestos-containing
material; or (d) any polychlorinated biphenyls (PCB), which in the case of any
of clauses (a) through (d) could reasonably result in a violation of any
Hazardous Materials Laws and a material adverse effect to such Environmental
Property or the owner thereof; (6) no environmental Lien has attached to any
Environmental Properties; and (7) no other event has occurred with respect to
the presence of Hazardous Materials on or under any of the Properties of the Borrower
Parties or the Macerich Core Entities, which would reasonably be expected to

 

18

 

result in a Material
Adverse Effect.    Notwithstanding the
foregoing, on the Closing Date all of the representations set forth above shall
be true and correct with respect to all Properties of the Borrower Parties and
the Macerich Core Entities (and not only the Designated Environmental
Properties).

 

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

 

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

 

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

 

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

 

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

 

6.21         Indebtedness.  Schedule 6.21 sets forth, as of
March 31, 2004, all Indebtedness for borrowed money of each of the
Borrower Parties and the Macerich Core Entities, and, except as set forth on
such Schedule 6.21, there are no defaults in the payment of
principal or interest on any such Indebtedness, and no payments thereunder have
been deferred

 

19

 

or extended beyond their
stated maturity, and there has been no material change in the type or amount of
such Indebtedness since March 31, 2004.

 

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

 

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

 

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

 

6.25         Solvency.  After giving effect to the Term Loan, and
the disbursement of the proceeds thereof to reduce the outstanding indebtedness
under the Revolving Credit Facility, the Borrower Parties are each Solvent.

 

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

 

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

 

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

 

20

 

with such consolidated
financial statements has been made in accordance with generally accepted
auditing standards;

 

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

 

(3)           Together with each
delivery of any quarterly or annual report pursuant to paragraphs (1) through
(2) of this Section 7.1, MAC shall deliver a Compliance Certificate
signed by MAC’s Responsible Financial Officer representing and certifying (1)
that the Responsible Financial Officer signatory thereto has reviewed the terms
of the Loan Documents, and has made, or caused to be made under his/her
supervision, a review in reasonable detail of the transactions and consolidated
financial condition of MAC and its Subsidiaries, during the fiscal quarter
covered by such reports, that such review has not disclosed the existence
during or at the end of such fiscal quarter, and that such officer does not
have knowledge of the existence as at the date of such Compliance Certificate,
of any condition or event which constitutes an Event of Default or Potential
Default, or, if any such condition or event existed or exists, specifying the
nature and period of existence thereof and what action the Borrower Parties or
their Subsidiaries have taken, are taking and propose to take with respect
thereto, (2) the calculations (with such specificity as the Administrative
Agent may reasonably request) for the period then ended which demonstrate
compliance with the covenants and financial ratios set forth in Article 8,
(3) a schedule of Total Liabilities in respect of borrowed money in the
level of detail disclosed in MAC’s Form 10-Q filings with the Securities and
Exchange Commission, as well as such other information regarding such Indebtedness
as may be reasonably requested by the Administrative Agent, and (4) a
schedule of EBITDA.

 

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

 

(5)           Copies of all proxy
statements, financial statements, and reports which the Borrower or MAC send to
their respective stockholders or limited partners, and copies of all regular,
periodic and special reports, and all registration statements under the Act
which the Borrower or MAC file with the Securities and Exchange Commission or
any Governmental Authority which may be substituted therefore, or with any
national securities exchange; provided, however, that there shall not be
required to be delivered hereunder such copies for any

 

21

 

Lender of prospectuses
relating to future series of offerings under registration statements filed
under Rule 415 under the Act or other items which such Lender has indicated in
writing to the Borrower or MAC from time to time need not be delivered to such
Lender.

 

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

 

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

 

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

 

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

 

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

 

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

 

7.4           Inspection of
Property; Books and Records; Discussions. The Borrower Parties shall, and
shall cause each of the Macerich Core Entities, to keep proper books of record
and account in which full, true and correct entries in conformity with GAAP and
all material

 

22

 

Requirements of Law shall
be made of all dealings and transactions in relation to its business and
activities, and shall permit representatives of the Administrative Agent or any
Lender to visit and inspect any of its properties and examine and make copies
or abstracts from any of its books and records at any reasonable time during
normal business hours and as often as may reasonably be desired by the
Administrative Agent or any Lender, and to discuss the business, operations,
properties and financial and other condition of the Borrower Parties and the
Macerich Core Entities with officers and employees of such Persons, and with
their independent certified public accountants (provided that representatives
of such Persons may be present at and participate in any such discussion).

 

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

 

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

 

(2)           The institution of, or
written threat of, any action, suit, proceeding, governmental investigation or
arbitration against or affecting the Borrower Parties or the Macerich Core
Entities and not previously disclosed, which action, suit, proceeding,
governmental investigation or arbitration (i) exposes, or in the case of
multiple actions, suits, proceedings, governmental investigations or
arbitrations arising out of the same general allegations or circumstances
expose, such Persons, in the Borrower’s reasonable judgment, to liability in an
amount aggregating $10,000,000 or more and is or are not covered by insurance,
or (ii) seeks injunctive or other relief which, if obtained, may have a
Material Adverse Effect providing such other information as may be reasonably
available to enable Administrative Agent and its counsel to evaluate such
matters.  The Borrower, upon request of
the Administrative Agent, shall promptly give written notice of the status of
any action, suit, proceeding, governmental investigation or arbitration;

 

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

 

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

 

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

 

7.6           Expenses.  The Borrower shall pay all reasonable
out-of-pocket expenses (including reasonable fees and disbursements of outside
counsel):  (1) of the
Administrative Agent and JPMorgan Chase Bank incident to the preparation,
negotiation and administration of the Loan Documents, including any proposed
Modifications or waivers with respect thereto, the syndication of the Term Loan
(but such expenses shall not include any fees paid to the syndicate

 

23

 

members), and the
preservation and protection of the rights of the Lenders and the Administrative
Agent under the Loan Documents, and (2) of the Administrative Agent and
each of the Lenders incident to the enforcement of payment of the Obligations,
whether by judicial proceedings or otherwise, including, without limitation, in
connection with bankruptcy, insolvency, liquidation, reorganization, moratorium
or other similar proceedings involving any Borrower Party or a “workout” of the
Obligations; provided that only one property inspection or site visit performed
pursuant to Section 7.4 shall be paid for by the Borrower each
year, unless a Potential Default or Event of Default has occurred and is
continuing, in which case there shall be no limit to property inspections or
site visits performed pursuant to Section 7.4, and the Borrower
shall pay the costs associated with each such inspection and visit performed
during such periods.  The obligations of
the Borrower under this Section 7.6 shall survive payment of all
other Obligations.

 

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

 

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

 

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

 

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

 

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

 

24

 

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

 

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

 

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

 

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

 

7.12                           [RESERVED]

 

7.13                           REIT Status. 
MAC shall maintain its status as a REIT and (i) all of the
representations and warranties set forth in clauses (1), (2) and (4) of Section 6.18
shall remain true and correct at all times and (ii) all of the representations
and warranties set forth in clause (3) of Section 6.18 shall remain
true and correct in all material respects. 
MAC will do or cause to be done all things necessary to maintain the
listing of its Capital Stock on the New York Stock

 

25

 

Exchange, the American
Stock Exchange or the Nasdaq National Market System (or any successor thereof),
and the Borrower will do or cause to be done all things necessary to cause it
to be treated as a partnership for purposes of federal income taxation and the
tax laws of any state or locality in which the Borrower is subject to taxation
based on its income.

 

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

 

7.15                           RESERVED.

 

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

 

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

 

8.1                                 Liens.

 

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

 

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

 

(B)                                Permitted
Encumbrances;

 

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

 

(D)                               Liens
listed on Schedule 8.1.

 

(2)                                  No Liens on the Capital Stock held by MAC
in the Borrower shall be created or suffered to exist.  If any of the Borrower Parties or any of the
Macerich Core Entities creates or suffers to exist any Lien upon the Capital
Stock of any other Subsidiary Entity, as a condition to creating or permitting
such Lien, Borrower shall: (i) cause the Obligations to be secured by a Lien
that is equal and ratable with any and all other Indebtedness thereby secured,
(ii) enter into valid and binding security agreements and execute and deliver
such other documents (including UCC-1 financing statements) and instruments as
the Administrative Agent deems appropriate in its sole good faith judgment to
effect the rights set forth in subpart (i) above, and (iii) cause the holder of
such Indebtedness secured by such Lien to enter into intercreditor arrangements
with the Administrative Agent, for the benefit of the Lenders, in a form
satisfactory to the Administrative Agent in its sole good faith judgment, to
effect the rights set forth in subpart (i) above; provided that,
notwithstanding the foregoing, this

 

26

 

covenant shall not
be construed as a consent by the Administrative Agent or any Lender to any
creation or assumption of any such Lien not permitted by the provisions of
Section 8.1(1) above.

 

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

 

8.3                                 Fundamental Change.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

27

 

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

 

	
  Permitted Investment

  	
   

  	
  Limitations

  
	
  Wholly-Owned Raw Land

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Individual Projects

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Portfolio of Projects

  	
   

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

  
	
   

  	
   

  	
   

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

  	
   

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

  

 

28

 

	
   

  	
   

  	
  Value

  
	
   

  	
   

  	
   

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

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Real Property Under
  Construction

  	
   

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

  
	
   

  	
   

  	
   

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

  	
   

  	
  Unlimited

  
	
   

  	
   

  	
   

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

  	
   

  	
  The Aggregate
  Investment Value of all such Mortgage Loans shall not exceed 10% of the Gross
  Asset Value

  
	
   

  	
   

  	
   

  
	
  Capital Stock of
  Management Companies

  	
   

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

  
	
   

  	
   

  	
   

  
	
  Cash and Cash
  Equivalents

  	
   

  	
  Unlimited

  
	
   

  	
   

  	
   

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

  	
   

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

  

 

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

 

29

 

transaction with a Person
not a Transactional Affiliate; provided that any management agreement
substantially in the form of the Master Management Agreements shall be deemed
to satisfy the criteria set forth in this Section 8.6.

 

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

 

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

 

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

 

8.10                           Senior Management.  The Macerich Partnership and MAC shall cause Art Coppola and
either Ed Coppola or Thomas E. O’Hern to remain part of their senior management
until the indefeasible payment in full of the Obligations.  In the event of death, incapacitation,
retirement, or dismissal of any of these individuals, the Macerich Partnership
and MAC shall have 180 calendar days thereafter in which to retain a senior
management replacement reasonably acceptable to the Required Lenders.

 

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

 

8.12                           Financial Covenants of Borrower
Parties.

 

(1)                                  Minimum Tangible Net Worth.
As of the last day of any Fiscal Quarter, Tangible Net Worth shall not be less
than the sum of (a) $750,000,000, minus (b) 100% of the cumulative
Depreciation and Amortization Expense deducted in determining Net Income for
all Fiscal Quarters ending after June 30, 2004, plus (c) 90% of the
cumulative net cash proceeds received from and the value of assets acquired
(net of Indebtedness incurred or

 

30

 

assumed in connection
therewith) through the issuance of Capital Stock of MAC or the Borrower after
July 30, 2004.  For purposes of
clause (c), “net” means net of underwriters’ discounts, commissions and other reasonable
out-of-pocket expenses of issuance actually paid to any Person (other than a
Borrower Party or any Affiliate of a Borrower Party).

 

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

 

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

 

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

 

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

 

(6)                                  RESERVED.

 

(7)                                  Maximum Floating Rate Debt.  The Borrower Parties shall maintain Hedging
Obligations on a notional amount of Total Liabilities in respect of borrowed
Indebtedness so that such notional amount, when added to the aggregate
principal amount of such Total Liabilities which bears interest at a fixed
rate, equals or exceeds 65% of the aggregate principal amount of all Total
Liabilities in respect of borrowed Indebtedness.

 

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

 

9.1                                 The
Borrower shall fail to make any payment of principal or interest on the Term
Loan on the date when due or shall fail to pay any other Obligation within
three days of the date when due; or

 

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

 

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

 

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

 

31

 

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

 

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

 

9.7                                 (1) Any
of the Borrower Parties or any Consolidated Entities (other than a De Minimis
Subsidiary), shall commence any case, proceeding or other action (i) under
any existing or future law of any jurisdiction, domestic or foreign, relating
to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have
an order for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (ii) seeking appointment of a receiver, trustee,
custodian or other similar official for it or for all or any substantial part
of its assets, or making a general assignment for the benefit of its creditors;
or (2) there shall be commenced against any of the Borrower Parties or any
Consolidated Entities (other than a De Minimis Subsidiary) any case, proceeding
or other action of a nature referred to in clause (1) above which
(i) results in the entry of an order for relief or any such adjudication
or appointment, or (ii) remains undismissed, undischarged or unbonded for
a period of ninety (90) days; or (3) there shall be commenced against
any of the Borrower Parties or any Consolidated Entities (other than a De
Minimis Subsidiary)  any case,
proceeding or other action seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or substantially all of its assets
which results in the entry of an order for any such relief which shall not have
been vacated, discharged, stayed, satisfied or bonded pending appeal within
ninety (90) days from the entry thereof; or (4) any of the Borrower
Parties or any Consolidated Entities (other than a De Minimis Subsidiary) shall
take any action in furtherance of, or indicating its consent to, approval of,
or acquiescence in (other than in connection with a final settlement), any of
the acts set forth in clause (1), (2) or (3) above; or (5) any of the
Borrower Parties or any Consolidated Entities (other than a De Minimis
Subsidiary) shall generally not, or shall be unable to, or shall admit in
writing its inability to pay its debts as they become due; or

 

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

 

32

 

with respect to its
withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan, which has resulted or could reasonably be expected to result in a
Material Adverse Effect; or

 

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

 

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

 

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

 

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

 

9.13                           There
shall occur an Event of Default under the Revolving Credit Facility; or

 

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

 

9.15                           There
shall occur a Change of Control;

 

THEN,

 

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

 

ARTICLE 10.                          The
Agents.

 

10.1                           Appointment. 
Each Lender hereby irrevocably designates and appoints the
Administrative Agent as the agent of such Lender under the Loan Documents and
each such

 

33

 

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

 

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

 

10.3                           Exculpatory Provisions.  None of the Administrative Agent, the other
Agents, nor any of their respective officers, directors, employees, agents,
attorneys-in-fact or affiliates shall be (1) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in
connection with the Loan Documents (except for its or such Person’s own gross
negligence or willful misconduct), or (2) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made
by the Borrower Parties or any officer thereof contained in the Loan Documents
or in any certificate, report, statement or other document referred to or
provided for in, or received by the Administrative Agent under or in connection
with the Loan Documents or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of the Loan Documents or for any failure of the
Borrower Parties to perform their obligations hereunder.  The Administrative Agent and all other
Agents shall not be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained
in, or conditions of, the Loan Documents or to inspect the properties, books or
records of the Borrower Parties.

 

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

 

34

 

under the Loan Documents in
accordance with a request of one hundred percent (100%) of the Lenders (or, if
a provision of this Agreement expressly provides that the Administrative Agent
shall be required to act or refrain from acting at the request of a lesser
number of the Lenders, such lesser number of Lenders), and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders.

 

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

 

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

 

35

 

10.7                           Indemnification.  The Lenders agree to indemnify the Administrative Agent and the
other Agents in their respective capacity as such (to the extent not reimbursed
by the Borrower and without limiting the obligation of the Borrower to do so),
ratably according to the respective amounts of their Percentage Shares, from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including without limitation at any time
following the payment of the Obligations) be imposed on, incurred by or
asserted against the Administrative Agent or the other Agents in any way
relating to or arising out of the Loan Documents or any documents contemplated
by or referred to herein or the transactions contemplated hereby or any action
taken or omitted by the Administrative Agent or the other Agents under or in
connection with any of the foregoing; provided that no Lender shall be liable
for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Administrative Agent’s or any other Agent’s gross negligence
or willful misconduct, respectively. 
The provisions of this Section 10.7 shall survive the
indefeasible payment of the Obligations and the termination of this Agreement.

 

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

 

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

 

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

 

36

 

the Joint Lead Arrangers,
in such capacities, shall have any right, power, obligation, liability,
responsibility or duty under this Agreement.

 

ARTICLE 11.                          Miscellaneous Provisions.

 

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

 

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

 

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

 

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

 

37

 

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

 

11.6                           Notices.  All
notices given by any party to the others under this Agreement and the other
Loan Documents shall be in writing unless otherwise provided for herein, and
any such notice shall become effective (i) upon personal delivery thereof,
including, but not limited to, delivery by overnight mail and courier service,
(ii) four (4) days after it shall have been mailed by United States mail, first
class, certified or registered, with postage prepaid, or (iii) in the case of
notice by a telecommunications device, when properly transmitted, in each case
addressed to the party at the address set forth on Schedule 11.6
attached hereto.  Any party may change
the address to which notices are to be sent by notice of such change to each
other party given as provided herein. 
Such notices shall be effective on the date received or, if mailed, on
the third Business Day following the date mailed.

 

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

 

11.8                           Assignments, Participations, Etc.

 

(1)                                  With
the prior written consent of the Administrative Agent and, but only if there
has not occurred and is continuing an Event of Default or Potential Default,
MAC, such consents not to be unreasonably withheld or delayed, any Lender may
at any time assign and delegate to one or more Eligible Assignees (provided
that no written consent of MAC or the Administrative Agent shall be required in
connection with any assignment and delegation by a Lender to an Affiliate of
such Lender or to another Lender or its Affiliate) (each an “Assignee”)
all or any part of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Percentage Share of the Term Loan at the
time owing to it) and the other Obligations held by such Lender hereunder, in a
minimum amount of $5,000,000 (or (A) if such Assignee is another Lender or an
Affiliate of a Lender, $1,000,000; and (B) if such Lender’s Percentage Share of
the Term Loan is less than $5,000,000, one hundred percent (100%) thereof);
provided, however, that MAC, the Borrower and the Administrative Agent may
continue to deal solely and directly with such Lender in connection with the
interest so assigned to an Assignee until (i) written notice of such
assignment, together with payment instructions, addresses and related
information with respect to the Assignee, shall have been given to the Borrower
and the Administrative Agent by such Lender and the Assignee; (ii) such
Lender and its Assignee shall have delivered to the Borrower and the
Administrative Agent an Assignment and Acceptance Agreement and (iii) the
Assignee has paid to the Administrative Agent a processing fee in the amount of
$3,500.

 

(A)                              From
and after the date that the Administrative Agent notifies the assignor Lender
and the Borrower that it has received an executed Assignment and Acceptance
Agreement and payment of the above-referenced processing fee:  (i) the Assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder and under
the other Loan Documents have been assigned to it pursuant to such Assignment
and

 

38

 

Acceptance Agreement,
shall have the rights and obligations of a Lender under the Loan Documents,
(ii) the assignor Lender shall, to the extent that rights and obligations
hereunder and under the other Loan Documents have been assigned by it pursuant
to such Assignment and Acceptance Agreement, relinquish its rights and be
released from its obligations under the Loan Documents (but shall be entitled
to indemnification as otherwise provided in this Agreement with respect to any
events occurring prior to the assignment) and (iii) this Agreement shall be deemed
to be amended to the extent, but only to the extent, necessary to reflect the
addition of the Assignee and the resulting adjustment of the Percentage Shares
resulting therefrom.

 

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

 

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

 

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

 

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

 

39

 

11.10                     Sharing of Payments.  If any Lender shall receive and retain any
payment, whether by setoff, application of deposit balance or security, or
otherwise, in respect of the Obligations in excess of such Lender’s Percentage
Share thereof, then such Lender shall purchase from the other Lenders for cash
and at face value and without recourse, such participation in the Obligations
held by them as shall be necessary to cause such excess payment to be shared
ratably as aforesaid with each of them; provided, that if such excess payment
or part thereof is thereafter recovered from such purchasing Lender, the
related purchases from the other Lenders shall be rescinded ratably and the
purchase price restored as to the portion of such excess payment so recovered,
but without interest.  Each Lender is
hereby authorized by the Borrower Parties to exercise any and all rights of
setoff, counterclaim or bankers’ lien against the full amount of the
Obligations, whether or not held by such Lender.  Each Lender hereby agrees to exercise any such rights first
against the Obligations and only then to any other Indebtedness of the Borrower
to such Lender.

 

11.11                     Confidentiality.

 

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

 

(2)                                  Notwithstanding anything to the contrary set
forth herein or in any other written or oral understanding or agreement to
which the parties hereto are parties or by which they are bound, the parties
hereto acknowledge and agree that (i) any obligations of confidentiality
contained herein and therein do not apply and have not applied from the
commencement of discussions between the parties to the United States federal
tax treatment and United States federal tax structure of the transactions
contemplated by the Loan Documents (and any related transactions or
arrangements), and (ii) each party (and each of its employees,
representatives, or other agents) may disclose to any and all parties as
required, without limitation of any kind, the United States federal tax
treatment and United States federal tax structure of the transactions
contemplated by the Loan Documents and all materials of any kind

 

40

 

(including
opinions or other tax analyses) that are provided to such party relating to
such tax treatment and tax structure, all within the meaning of U.S. Treasury
Regulations Section 1.6011-4; provided, however, that each party recognizes
that the privilege each has to maintain, in its sole discretion, the
confidentiality of a communication relating to the transactions contemplated by
the Loan Documents, including a confidential communication with its attorney or
a confidential communication with a federally authorized tax practitioner under
Section 7525 of the Code, is not intended to be affected by the foregoing.

 

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

 

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

 

41

 

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

 

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

 

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

 

42

 

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

 

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

 

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

 

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

 

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

 

[Signature Pages Following]

 

43

 

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

 

	
  BORROWER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE MACERICH
  PARTNERSHIP, L.P.,

  
	
   

  	
   

  	
  a Delaware limited
  partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  The Macerich Company,

  
	
   

  	
   

  	
   

  	
  a Maryland corporation,

  
	
   

  	
   

  	
   

  	
  Its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  Richard A. Bayer

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice
  President, Secretary

  
	
   

  	
   

  	
   

  	
   

  	
  and General Counsel

  
	
   

  	
   

  	
   

  
	
  GUARANTOR:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE MACERICH COMPANY,

  
	
   

  	
   

  	
  a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Richard A. Bayer

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice
  President, Secretary

  
	
   

  	
   

  	
   

  	
   

  	
  and General Counsel

  
								

 

S-1

 

	
  LENDERS AND AGENTS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE BANK TRUST
  COMPANY AMERICAS,

  
	
   

  	
   

  	
  as Administrative Agent
  and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-2

 

	
   

  	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-3

 

	
   

  	
   

  	
  BANK ONE, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-4

 

	
   

  	
   

  	
  EUROHYPO AG, New York
  Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

S-5

 

	
   

  	
   

  	
  WELLS FARGO BANK,
  National Association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-6

 

	
   

  	
   

  	
  COMMERZBANK AG, NEW
  YORK and

  
	
   

  	
   

  	
  GRAND CAYMAN BRANCHES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

S-7

 

	
   

  	
   

  	
  FLEET NATIONAL BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-8

 

	
   

  	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION, a national banking association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-9

 

	
   

  	
   

  	
  SOCIETE GENERALE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

S-10

ANNEX
I:  GLOSSARY

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

“Agents” shall mean the Administrative Agent,
the Co-Syndication Agents, the Joint Lead Arrangers, the Co-Documentation
Agents, the Managing Agents, the Co-Agents and any other Persons acting in the
capacity of an agent for the Lenders under the Credit Agreement, together with
their permitted successors and assigns.

 

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

 

“Applicable Base Rate” shall mean the floating
rate per annum equal to the daily average Base Rate in effect during the
applicable calculation period plus one percent (1.0%); provided that in
no event shall the Applicable Base Rate at any time be less than 4.0% per
annum.

 

“Applicable LIBO Rate” shall mean, with respect
to any LIBO Rate Loan for the Interest Period applicable to such LIBO Rate
Loan, the per annum rate equal to the Reserve Adjusted LIBO Rate plus
two and one-half percent (2.50%); provided that in no event shall the
Applicable LIBO Rate at any time be less than 4.0% per annum.

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

“Borrower” shall mean the Macerich Partnership.

 

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

 

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

 

“Business Day” shall mean any day other than a
Saturday, a Sunday or a day on which banks in Los Angeles, California or New
York, New York are authorized or obligated to close their regular banking
business.

 

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

 

3

 

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

 

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

 

“Capital Stock” means (i) with respect to
any Person that is a corporation, any and all shares, interests, participations
or other equivalents (however designated and whether or not voting) of
corporate stock, including, without limitation, each class or series of common
stock and preferred stock of such Person and (ii) with respect to any
Person that is not a corporation, any and all investment units, partnership,
membership or other equity interests of such Person.

 

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

 

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

 

“Change of Control” shall mean, with respect to
MAC, the occurrence of either of the following: (i) a change in the beneficial ownership within the meaning of Rule
13d-3 of the Securities and Exchange Commission under the Securities Exchange
Act of 1934 of more than twenty-five percent (25%) of the Capital Stock of MAC
having

 

4

 

general voting rights so that such Capital Stock
is held by a Person, or two (2) or more Persons acting in concert, unless the
Administrative Agent and the Required Lenders have approved in advance in
writing the identity of such Person or Persons or (ii) the resignation or
removal from the Board of Directors of fifty percent (50%) or more of the
members of MAC’s Board of Directors during any twelve (12) month period for any
reason other than death, disability or voluntary retirement or personal
reasons, unless otherwise approved in advance in writing by the Required
Lenders.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

6

 

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

 

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

 

“DBTCA” shall mean Deutsche Bank Trust Company
Americas.

 

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

 

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

 

“Designated Environmental Properties” shall
have the meaning given such term in Section 7.9 of the Credit
Agreement.

 

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

 

“Disqualified Capital Stock” shall mean with
respect to any Person any Capital Stock of such Person (other than preferred
stock of MAC issued and outstanding on the date hereof) that by its terms (or
by the terms of any security into which it is convertible or for which it is
exchangeable), or otherwise (including upon the occurrence of any event), is
required to be redeemed or is redeemable for cash at the option of the holder
thereof, in whole or in part (including by operation of a sinking fund), or is
exchangeable for Indebtedness (other than at the option of such Person), in
whole or in part, at any time.

 

7

 

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

 

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

 

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

 

“Eligible Assignee” shall mean any of the
following:

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

“Evidence of No Withholding” shall have the
meaning given such term in Section 2.10 of the Credit Agreement.

 

“Excluded Taxes” shall mean, with respect to
the Administrative Agent, any Lender, or any other recipient of any payment to
be made by or on account of any obligation of the Borrower hereunder,
(a) income or franchise taxes imposed on (or measured by) its net income
by the United States of America, or by any state, locality or

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

that, with respect to any Project that has not achieved Stabilization,
Fixed Charges for such Project shall be calculated for the most recent fiscal
quarter and annualized).

 

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

 

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

 

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

 

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

 

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

 

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

 

(i) for Retail Properties that are Wholly-Owned the
sum of, for each such property, (a) such property’s Property NOI for the
Measuring Period, divided by (b) (1) 8.00% (expressed as a decimal), in the
case of regional Retail Properties or (2) 9.00%

 

11

 

(expressed as a decimal) in the case of Retail Properties that are not
regional Retail Properties; plus

 

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

 

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

 

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

 

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

 

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

 

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

 

12

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Hedging Obligations” of a Person means any and
all obligations of such Person or any of its Subsidiaries, whether absolute or
contingent and howsoever and whenever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions
therefor), under (a) any and all agreements, devices or arrangements
designed to protect at least one of the parties thereto from the fluctuations
of interest rates, commodity prices, exchange rates or forward rates applicable
to such party’s assets, liabilities or exchange transactions, including, but
not limited to, dollar-denominated or cross-currency interest rate exchange agreements,

 

13

 

forward currency exchange agreements, interest rate cap or collar
protection agreements, forward rate currency or interest rate options, puts and
warrants, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any of the foregoing.

 

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

 

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

 

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

 

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

 

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

 

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

 

14

 

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

 

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

 

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

 

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

 

“Interest Period” shall mean, with respect to a
LIBO Rate Loan, a period of one, two, three or six months commencing on a
Eurodollar Business Day selected by the Borrower pursuant to the Credit
Agreement.  Such Interest Period shall
end on (but exclude) the day which corresponds numerically to such date one,
two, three or six

 

15

 

months thereafter, provided, however, that if there is no such
numerically corresponding day in such next, second, third or sixth succeeding
month, such Interest Period shall end on the last day of such next, second,
third or sixth succeeding month.  If an
Interest Period would otherwise end on a day which is not a Eurodollar Business
Day, such Interest Period shall end on the next succeeding Eurodollar Business
Day, provided, however, that if said next succeeding Eurodollar Business Day
falls in a new calendar month, such Interest Period shall end on the
immediately preceding Eurodollar Business Day.

 

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

 

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

 

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

 

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

 

16

 

provided, all references in the Loan Documents to a “Joint Venture”
shall mean a Joint Venture of MAC.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

19

 

“Multiemployer Plan” shall mean a
“multiemployer plan” (within the meaning of Section 4001(a)(3) of ERISA)
and to which any Consolidated Entity or any ERISA Affiliate makes, is making,
or is obligated to make contributions or, during the preceding three calendar
years, has made, or been obligated to make, contributions.

 

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

 

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

 

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

 

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

 

“Note” shall mean a promissory note in the form
of that attached to the Credit Agreement as Exhibit E issued by the
Borrower at the request of a Lender pursuant to Section 3.1 of the
Credit Agreement.

 

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

 

20

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

21

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

22

 

(k)                                  Liens
on personal property.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Property Expense” shall mean, for any Retail
Property, all operating expenses relating to such Retail Property, including
the following items (provided, however, that Property
Expenses shall not include debt service, tenant improvement costs, leasing
commissions, capital improvements, Depreciation and Amortization Expenses and
any extraordinary items not considered operating expenses under GAAP): (i) all
expenses for

 

23

 

the operation of such Retail Property, including any management fees
payable under the Management Contracts and all insurance expenses, but not
including any expenses incurred in connection with a sale or other capital or
interim capital transaction; (ii) water charges, property taxes, sewer rents
and other impositions, other than fines, penalties, interest or such
impositions (or portions thereof) that are payable by reason of the failure to
pay an imposition timely; and (iii) the cost of routine maintenance, repairs
and minor alterations, to the extent they can be expensed under GAAP.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

24

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	
  Reserve Adjusted LIBO Rate =

  	
  LR

  
	
   

  	
  1-LRP

  

 

where

LR   =  LIBO Rate

LRP =  LIBO
Reserve Percentage

 

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

 

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

 

25

 

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

 

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

 

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

 

“Revolving Credit Agreement” shall mean that
certain Amended and Restated Credit Agreement evidencing the Revolving Credit
Facility dated as of July 30, 2004, by and among the Borrower, as borrower
and MAC as guarantor who are signatory thereto, the lenders signatory thereto
and DBTCA, as administrative agent.

 

“Revolving Credit Facility” shall mean that
certain amended and restated credit facility evidenced by the Revolving Credit
Agreement, which provides for the funding of certain revolving loans and the
issuance of letters of credit to, and on behalf of, the Borrower in the
aggregate amount not to exceed $1,000,000,000.

 

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

 

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

 

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

 

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

 

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

 

“Single Purpose Entity” shall mean shall mean a
Person, other than an individual, which (A) is formed or organized solely
for the purpose of holding, directly or

 

26

 

indirectly, an ownership interest in the Westcor Principal Entities,
(B) does not engage in any business unrelated to clause (A) above,
(C) has not and will not have any assets other than those related to its
activities in accordance with clauses (A) and (B) above, (D) maintains its
own separate books and records and its own accounts, in each case which are
separate and apart from the books and records and accounts of any other Person,
(E) holds itself out as being a Person, separate and apart from any other
Person, (F) does not and will not commingle its funds or assets with those
of any other Person, (G) conducts its own business in its own name,
(H) maintains separate financial statements and files its own tax returns
(or if its tax returns are consolidated with those of MAC, such returns shall
clearly identify such Person as a separate legal entity), (I) pays its own
debts and liabilities when they become due out of its own funds,
(J) observes all partnership, corporate, limited liability company or
trust formalities, as applicable, and does all things necessary to preserve its
existence, (K) except as expressly permitted by the Loan Documents,
maintains an arm’s-length relationship with its Transactional Affiliates and
shall not enter into any Contractual Obligations with any Affiliates except as
permitted under the Credit Agreement, (L) pays the salaries of its own
employees, if any, and maintains a sufficient number of employees in light of
its contemplated business operations, (M) does not guarantee or otherwise
obligate itself with respect to the debts of any other Person, or hold out its
credit as being available to satisfy the obligations of any other Person,
except with respect to the Loans and as otherwise permitted under the Loan
Documents, (N) does not acquire obligations of or securities issued by its
partners, members or shareholders, (O) allocates fairly and reasonably
shared expenses, including any overhead for shared office space, (P) uses
separate stationery, invoices, and checks, (Q) does not and will not
pledge its assets for the benefit of any other Person (except as permitted
under the Loan Documents) or make any loans or advances to any other Person
(except with respect to the Loans), (R) does and will correct any known
misunderstanding regarding its separate identity, (S) maintains adequate
capital in light of its contemplated business operations, and (T) has and
will have a partnership or operating agreement, certificate of incorporation or
other organizational document which complies with the requirements set forth in
this definition.

 

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

 

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

 

27

 

“Statement Date”  shall mean December 31, 2003.

 

“Subsidiary” shall mean, with respect to any
Person:  (a) any corporation more than
fifty percent (50%) of the outstanding securities having ordinary voting power
of which shall at the time be owned or controlled, directly or indirectly, by
such Person or by one or more of its Subsidiaries or by such Person and one or
more of its Subsidiaries, (b) any partnership, limited liability company,
association, joint venture or similar business organization more than fifty
percent (50%) of the ownership interests having ordinary voting power of which
shall at the time be so owned or controlled, (c) with respect to MAC, any other
Person in which MAC owns, directly or indirectly, any Capital Stock and which
would be combined with MAC in the consolidated financial statements of MAC in
accordance with GAAP; or (d) with respect to the Westcor Guarantors and the
Westcor Principal Entities, any other Person in which they own, directly or
indirectly, any Capital Stock and which would be combined with them in
consolidated financial statements in accordance with GAAP.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

28

 

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

 

“Total Liabilities” shall mean, at any time,
without duplication, the aggregate amount of (i) all Indebtedness and other
liabilities of the Consolidated Entities reflected in the financial statements
of MAC or disclosed in the notes thereto (to the extent the same would
constitute a Contingent Obligation), plus (ii) all Indebtedness and other
liabilities of all Joint Ventures reflected in the financial statements of such
Joint Ventures or disclosed in the notes thereto (to the extent the same would
constitute a Contingent Obligation) which are otherwise recourse to any
Consolidated Entity or any of its assets or that otherwise constitutes
Indebtedness of any Consolidated Entity (including any recourse obligations
arising as a result of a Consolidated Entity serving as a general partner,
directly or indirectly, in such Joint Ventures, unless such general partner is
a corporation whose sole asset is its general partnership interest and who
otherwise meets the criteria set forth in clauses (D) through (T) in the
definition of Single Purpose Entity); provided that, notwithstanding this clause
(ii), those certain guarantees described on Schedule G-2 to the
Credit Agreement, which liabilities thereunder are recourse, directly or indirectly,
to any of the Westcor Principal Entities or their Subsidiaries, shall be
considered an obligation governed by clause (iii) below, plus (iii) the Consolidated
Entities’ pro
rata share of all Indebtedness and other liabilities reflected in
the financial statements of any Joint Venture or disclosed in the notes thereto
(to the extent the same would constitute a Contingent Obligation) not otherwise
constituting Indebtedness of or recourse to any Consolidated Entity or any of
its assets, plus
(iv) all liabilities of the Consolidated Entities with respect to purchase and
repurchase obligations, provided that any obligations to acquire
fully-constructed Real Property shall not be included in Total Liabilities
prior to the transfer of title of such Real Property.  With respect to any Real Property Under Construction as to which
any Consolidated Entity has provided an outstanding and undrawn letter of
credit relating to the performance and/or completion of construction at such
property, the amount of Indebtedness evidenced by such letter of credit shall
be included in Total Liabilities if: (a) such Indebtedness does not duplicate
Indebtedness incurred in respect of such Real Property Under Construction
(including any off-site improvements associated therewith); (b) such
Indebtedness is required by GAAP to be reflected on the liability side of any
Consolidated Entities’ balance sheet; and (c) to the extent such Indebtedness
is not required by GAAP to be reflected on the liability side of any
Consolidated Entities’ balance sheet, then such Indebtedness shall only be
included to the extent the amount of such Indebtedness exceeds
$40,000,000.  For purposes of clause
(iii), the Consolidated Entities’ pro rata share of all Indebtedness and
other liabilities of any Joint Venture shall be deemed equal to the product of
(a) such Indebtedness or other liabilities, multiplied by (b) the percentage of the
total outstanding Capital Stock of such Person held by any Consolidated Entity,
expressed as a decimal.

 

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

 

“UCC” shall mean the Uniform Commercial Code.

 

29

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Wholly-Owned” shall mean, with respect to any
Real Property, Capital Stock, or other Property owned or leased, that (i) title
to such Property is held directly by, or such Property is leased by, the
Borrower, or (ii) in the case of Real Property or Capital Stock, title to such
property is held by, or (in the case of Real Property) such Property is leased
by, a Consolidated Entity at least 99% of the Capital Stock of which is held of
record and beneficially by the Borrower (or a Person whose Capital Stock is owned
100% by the Borrower) and the balance of the Capital Stock of which (if any) is
held of record and beneficially by MAC (or a Person whose Capital Stock is
owned 100% by MAC).  References to
Property Wholly-Owned by Westcor or a Macerich Entity shall mean property 100%
owned by such Person.

 

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

 

30

 

Other Interpretive Provisions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

31Exhibit 10.1

 

NON-COMPETE
AGREEMENT

 

DOVER
DOWNS GAMING & ENTERTAINMENT, INC.

 

AND

 

PATRICK J. BAGLEY

 

 

THIS AGREEMENT, is by and between Dover Downs Gaming
& Entertainment, Inc. (the “Company”) and Patrick J. Bagley (the
“Director”) and is effective as of this 16th day of June 2004 (the “Effective
Date”).

 

W I
T N E S S E T H:

 

WHEREAS, the Director is currently a director of the
Company and employed by the Company or an affiliate thereof in an executive
position; and

 

WHEREAS, the Director has, in the course of his tenure
as a Director, developed relationships with employees and customers of the
Company, and learned valuable and sensitive information concerning the
Company’s operations, policies and procedures; and

 

WHEREAS, the Director has, in the course of his tenure
as a Director, been exposed to valuable and sensitive Company reports, files,
memoranda, records, software, and other property; and

 

WHEREAS, the Company recognizes that the solicitation
of its employees and customers, and the use or disclosure of the policies,
procedures, information, documents, and property of the Company would be
damaging to the Company’s interests; and

 

WHEREAS, the Company has determined that it is in the
best interests of the Company to protect its interests through the use of
Employment and Non-Compete Agreements; and

 

WHEREAS, the Company has determined that it is in the
best interests of the Company and its shareholders for the Company to agree to
provide benefits under the circumstances described below to the Director and
other executives who agree to such an agreement.

 

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

 

 

Section
1

Definitions

 

“Announcement” shall mean a press release issued by
the Company announcing the signing of an agreement whereby the Company will be
acquired by or merge with any other entity or a tender offer for the shares of
the Company stock will be initiated.

 

“Change in Control” shall mean the earlier to occur of
(a) ten (10) days following the closing of a tender offer for the Company’s
stock following the Announcement or (b) the closing of a merger or similar
transaction (“Transaction”) of the Company and any other entity; provided,
however, a Transaction the result of which is the shareholders of the Company’s
voting securities immediately prior to the Transaction own, directly or
indirectly in substantially the same proportion, at least 60% of the voting
securities of the survivor of such Transaction immediately following such
Transaction shall not be a Change in Control.

 

“Change in Control Fee” shall mean $100,000.

 

“Code” shall mean the Internal Revenue Code of 1986,
as amended.

 

Section
2

Term of Agreement

 

This Agreement shall be effective as of the Effective
Date but shall automatically terminate if no Announcement occurs within two (2)
years of the Effective Date or if the Director’s employment is terminated prior
to an Announcement.  Renewal of this
Agreement for successive two (2) year terms shall require approval of the
Company’s Compensation and Stock Incentive Committee.

 

Section
3

Benefits

 

On the date of a Change in Control, the Company shall pay to the
Director in cash the Change in Control Fee. 
Such amount shall be deemed earned on the date of the Change in Control
and not forfeitable.

 

If all, or any portion, of the payment provided under this Agreement,
if any, either alone or together with other payments and benefits which the
Director receives or is entitled to receive from the Company, would constitute
an excess “parachute payment” within the meaning of Section 280G of the Code
(whether or not under an existing plan, arrangement, or other agreement) (each
such parachute payment, a “Parachute Payment”), and would result in the
imposition on the Director of an excise tax under Section 4999 of the Code,
then, in addition to any other benefits to which the Director is entitled under
this Agreement or otherwise, the Director shall be paid an amount in cash equal
to the sum of the excise taxes payable by the Director by reason of receiving
Parachute Payments plus the amount necessary to place the Director in the same
after-tax position (taking into account any and all applicable federal, state
and local excise, income or other taxes at the highest possible applicable
rates on such Parachute Payments (including, without limitation, any payments
under this Section) as if no excise taxes had been imposed with respect to
Parachute Payments (the “Parachute Gross-Up”). 
Any

 

2

 

Parachute Gross-Up
otherwise required by this Section shall not be made later than the time of the
corresponding payment or benefit hereunder giving rise to the underlying
Section 4999 excise tax, even if the payment of the excise tax is not required
under the Code until a later time.

 

Except as may otherwise be agreed to by the Company and the Director,
any gross up payable under this Section shall be as conclusively determined by
the KPMG LLP, or such other firm as mutually agreed to by the Company and the
Director (“Independent Tax Counsel”), whose determination or determinations
shall be final and binding on all parties. 
The Director shall agree to utilize such determination or determinations,
as applicable, in filing all of the Director’s tax returns with respect to the
excise tax imposed by Section 4999 of the Code, if any.  If such Independent Tax Counsel fails or
refuses to make the required determinations for any reason, then such determinations
shall be made by a comparable firm or group of national reputation to which the
parties reasonably mutually agreed.  All
fees and expenses of the Independent Tax Counsel or its replacement shall be
paid by the Company.

 

As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Independent Tax
Counsel hereunder, it is possible that Parachute Gross-Up payments, if any,
which will not have been made by the Company, should have been made, together
with any interest, penalties or taxes of any kind thereon, consistent with the
calculations required to be made hereunder (an “Underpayment”).  The Company shall pay all such Underpayments
to or for the benefit of the Director. 
The Director shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment within ten (10) business days after the
Director is informed in writing of such claim. 
The Company shall notify the Director within ten (10) business days of
receipt of the Director notice that the Company (x) will pay the Underpayment
and do so on or before the date due, or (y) that it desires to contest such
claim.  The Director will cooperate with
the Company in any such contest; provided, however, that the Company shall bear
and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with such contest and shall indemnify and
hold the Director harmless, on an after-tax basis, for any Excise Tax or income
tax (including interest and penalties with respect thereto) imposed as a result
of such representation and payment of costs and expenses.  Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Director shall be entitled, at Director’s
expense, to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

 

References herein to Code sections shall apply to comparable Code
sections in the event of any amendment to the Code.

 

Section
4

Litigation
Expenses and Arbitration

 

In addition to the Company’s other obligations under
this Agreement, the Company shall pay all legal fees and expenses incurred in a
legal proceeding (including arbitration) by the Director in seeking to obtain
or enforce any right or benefit provided by this Agreement

 

3

 

(including, without limitation, any rights to a tax
gross-up).  Such payments are to be made
within five days after the Director’s request for payment accompanied with such
evidence of fees and expenses incurred as the Company reasonably may require;
provided, however, that if the Director institutes a proceeding and the judge
or other decision-maker presiding over the proceeding affirmatively finds that
the Director has failed to prevail substantially, he shall pay his own costs
and expenses (and, if applicable, return any amounts theretofore paid on his
behalf under this Section).

 

All disputes with respect to the subject matter of
this Agreement and the enforcement of rights hereunder shall be submitted to
binding arbitration in accordance with the rules of the American Arbitration
Association (the “AAA”).  Each party
hereto shall designate one arbitrator (who need not be impartial) within
fifteen (15) days after notice of the dispute. The two arbitrators so
designated shall endeavor to designate promptly a third, neutral arbitrator. If
the two arbitrators have not designated the third arbitrator by the fifteenth
(15th) day following the designation of the second arbitrator, or if
a second arbitrator has not been designated by the (15th) day
following the designation of the first, either Party may request the AAA to
designate the remaining arbitrator(s). The third arbitrator shall take an oath
of neutrality. The arbitrators shall not be bound by judicial formalities and
may abstain from following the strict rules of evidence and shall interpret this
Agreement as an honorable engagement and not merely as a legal obligation. The
arbitrators shall have the power to render equitable relief as may be available
in accordance with applicable law. 
Unless otherwise agreed by the parties, any such arbitration shall take
place in such City within the United States as Director may designate, and
shall be conducted in accordance with the Rules of the AAA.  The determination reached in such
arbitration shall be final and binding on both parties without any right of
appeal or further dispute. The arbitrators’ award may be confirmed in, and
judgment upon the award entered by, any federal or state court having
jurisdiction over the parties.

 

Section
5

Restrictive Covenants

 

(a) For a period of one year following the Change in Control, whether
or not Director continues his engagement with the Company, Director agrees not
to, directly or indirectly, individually or on behalf of persons not now
parties to this Agreement, or as a director, officer, principal, agent, executive,
or in any other capacity or relationship, engage in the casino business (except
as a passive investor holding not more than 3% of the equity of such business),
or aid or endeavor to assist any business or legal entity, that is in the
casino business and that competes with the Company anywhere in the
Territory.  The Territory shall consist
of both the entire State of Delaware and a 50-mile radius around the Company’s
facility in Dover, Delaware.  The
Company and Director acknowledge the reasonableness of this covenant not to
compete and the reasonableness of the geographic area and duration of time
which are a part of said covenant.

 

(b) Unless waived in writing by the Company, Director further agrees
that he will not, directly or indirectly, during the Extension Period, solicit
the trade or patronage of any of the customers of the Company, regardless of
the location of such customers of the Company with respect to any services,
products, or other matters in which the Company is active.

 

4

 

(c) Unless waived in writing by the Company, Director
further agrees that he will not, directly or indirectly, during the Extension
Period, solicit or attempt to entice away from the Company any director, agent
or employee of the Company.

 

(d) Director acknowledges that the Company has no
adequate remedy at law and would be irreparably harmed if Director breaches or
threatens to breach any of the provisions of this Section and, therefore,
agrees that the Company shall be entitled to injunctive relief to prevent any
such breach or threatened breach thereof and to specific performance of the
terms of this Section.  Director further
agrees that Director shall not, in any equity proceeding relating to the
enforcement of this Section, raise the defense that the Company has an adequate
remedy at law.  Nothing in this
Agreement shall be construed as prohibiting the Company from pursuing any other
remedies at law or in equity that it may have under and in respect of this
Agreement or any other agreement.

 

Section
6

Severability

 

If, for any reason, any one or more of the provisions
or part of a provision contained in this Agreement shall be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement not held so invalid, illegal or unenforceable, and each other
provision or part of a provision shall to the fullest extent consistent with
law continue in full force and effect.

 

Section
7

Amendment, Termination, or Modification

 

Except as provided below, this Agreement may not be
terminated, modified or amended other than by an instrument in writing signed
by the parties hereto.  No term or
condition of this Agreement shall be deemed to have been waived, nor shall
there be any estoppel against the enforcement of any provision of this
Agreement, except by written instrument signed by the party charged with such
waiver or estoppel.  No such written
waiver shall be deemed a continuing waiver unless specifically stated therein,
and each such waiver shall operate only as to the specific term or condition
waived and shall not constitute a waiver of such term or condition for the
future or as to any act other than that specifically waived.

 

Section
8

Tax
Withholding

 

The Company may withhold from any payments made under
this Agreement all federal, state or other taxes as shall be required pursuant
to any law or governmental regulation or ruling.

 

Section
9

Entire Understanding

 

This Agreement contains the entire understanding
between the Company and the Director with respect to the subject matter hereof
and supersedes any prior agreement between the Company and the Director
regarding non-compete provisions, except that this Agreement shall

 

5

 

not affect or operate to reduce any benefit or
compensation inuring to the Director of any kind elsewhere provided and not
expressly dealt with in this Agreement.

 

Section
10

Binding Agreement

 

This Agreement shall be binding upon, and shall inure
to the benefit of, the Director and the Company and their respective permitted
successors and assigns.

 

Section
11

Director Status

 

Nothing herein contained shall
be deemed to create an agreement between the Company and the Director providing
for the Director’s tenure with the Company to continue for any fixed period of
time prior to a Change in Control. There are no other agreements or
understandings between the Company and the Director which guarantee his
continued tenure with the Company or guarantee any level of compensation,
including incentive or bonus payments, to the Director.

 

Section
12

No
Attachment

 

Except as required by law, no right to receive
payments under this Agreement shall be subject to anticipation, commutation,
alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or
to execution, attachment, levy or similar process or assignment by operation of
law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect.

 

Section
13

Notices

 

All notices, requests, demands and other
communications required or permitted hereunder shall be given in writing and
shall be deemed to have been duly given if delivered or mailed, postage
prepaid, first class as follows:

 

(a) to the Company, at its Dover, Delaware address

 

(b) to the Director, at the address maintained by the
Company for the Director for payroll purposes;

 

or to such address as either party shall have
previously specified in writing to the other.

 

Section
14

Revocation and Director Acknowledgments

 

The Director acknowledges that he has read and
understands the provisions of this Agreement. 
The Director further acknowledges that he has been given an opportunity
for his legal counsel to review this Agreement and that the provisions of this
Agreement are reasonable and that he has received a copy of this Agreement.

 

6

 

Section
15

Headings of No Effect

 

The section headings contained in this Agreement are
included solely for convenience of reference and shall not in any way affect
the meaning or interpretation of any of the provisions of this Agreement.

 

Section
16

Applicable Law

 

This Agreement and its validity, interpretation,
performance, and enforcement shall be governed by the laws of the State of
Delaware.

 

Section
17

Counterparts

 

This Agreement may be executed in two or more
counterparts, each of which shall be an original and all of which shall be
deemed to constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, the Company through its officer
duly authorized, and the

 

7

 

Director both intending to be legally bound have duly
executed and delivered this Agreement, to be effective as of the Effective
Date.

 

	
   

  	
  Dover Downs Gaming
  & Entertainment,

  Inc.

  
	
   

  	
   

  
	
   

  	
    /S/  Denis
  McGlynn

  
	
   

  	
  Its

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DIRECTOR

  
	
   

  	
   

  
	
   

  	
    /S/  Patrick
  J. Bagley

  

 

8

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