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Exhibit 10.1.7    
  

 
 

EIGHTH AMENDMENT TO THE
  AMENDED AND RESTATED
  LIMITED PARTNERSHIP AGREEMENT OF
  THE MACERICH PARTNERSHIP, L.P    
  

    THIS EIGHTH AMENDMENT (the "Amendment") TO THE AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT DATED AS OF
MARCH 16, 1994, AMENDED AS OF AUGUST 14, 1995, FURTHER AMENDED AS OF JUNE 27, 1997, FURTHER AMENDED AS OF NOVEMBER 16, 1997, FURTHER AMENDED AS OF FEBRUARY 25, 1998, FURTHER AMENDED AS OF FEBRUARY 26,
1998, FURTHER AMENDED AS OF JUNE 17, 1998, AND FURTHER AMENDED AS OF DECEMBER 23, 1998 (the "Agreement") OF THE MACERICH PARTNERSHIP, L.P. (the
"Partnership") is made and entered into effective as of November 9, 2000. 

    WHEREAS, the General Partner on behalf of the Partnership and on its own behalf is contemplating a repurchase of shares of the Common
Stock of the General Partner which would enable and be funded by a simultaneous redemption of a number of Common Units held by the General Partner at the price paid for the repurchased shares in the
manner described below; 

    WHEREAS, the General Partner and Partnership will effect such repurchase and redemption if they determine such transactions to be in
the best interest of the Partnership, the Partners and the stockholders of the General Partner, as applicable; and 

    WHEREAS, it is proposed that the Agreement be amended in accordance with the provisions thereof. 

    NOW, THEREFORE, pursuant to the authority granted to the General Partner under the Agreement, in its capacity as General Partner and as
a holder of a 1% Percentage Interest as General Partner and a 79% Percentage Interest as a Limited Partner in the Partnership, the Agreement is hereby amended as follows: 

    1.  Amendment to Article IX:  The caption of Article IX is changed
to "Redemptions"; and a new section 9.2 is added to the Agreement immediately following Section 9.1 thereof as follows: 

    9.2  Redemption on Share Repurchase.  Notwithstanding anything herein to the contrary, the General
Partner is hereby authorized to cause the Partnership to redeem for cash Common Units from the General Partner, in connection and simultaneous with any repurchase by the General Partner of Shares, at
the price paid for the repurchased Shares. The number of such Common Units will equal the number of repurchased Shares divided by the Conversion Factor and the aggregate redemption price of the Common
Units will be in an amount necessary to provide the General Partner with an amount in cash equal to the aggregate price paid by the General Partner to repurchase the Shares. 

    2.  Conforming Clarifications to Sections 6.2.  

    (a) Section 8.1 is amended to add to the beginning thereof the phrase "Except in the case of a redemption
authorized pursuant to Section 9.2," and decapitalizing the word "The" which follows; and 

    (b) Section 6.2 is amended by deletion of the "and" after clause (i) thereof, adding "; and" after
clause (j) thereof, and adding a new clause (k) as follows: 

    (k) To
take other action not inconsistent with applicable law expressly contemplated by other provisions of this Agreement." 

    3.  Defined Terms and Recitals.  As used in this Amendment, capitalized terms
used and defined in this Amendment shall have the meaning assigned to them in this Amendment, and capitalized terms 

used in this Amendment but not defined herein, shall have the meaning assigned to them in the Agreement. 

    4.  Ratification and Confirmation.  Except to the extent specifically amended by
this Amendment, the terms and provisions of the Agreement, as previously amended, are hereby ratified and confirmed. 

    5.  Notice.  The General Partner shall give notice of this Amendment to the
Partners as required by Section 12.1(b) of the Agreement. 

    IN WITNESS WHEREOF, the undersigned has executed this Amendment effective as of the date first above mentioned in its capacity as
General Partner and as the holder of a 1% Percentage Interest as General Partner and a 79% Percentage Interest as a Limited Partner. 

	 	 	THE MACERICH COMPANY
	

 	
 	
By:	
 	

	 	 	 	 	Richard A. Bayer

Executive Vice President,

General Counsel and Secretary

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Exhibit 10.1.7

EIGHTH AMENDMENT TO THE AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF THE MACERICH PARTNERSHIP, L.PPrepared by MERRILL CORPORATION www.edgaradvantage.com

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EXHIBIT 10.30    
  

    SECOND AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT  

among 

THE MACERICH PARTNERSHIP, L.P.,

a Delaware limited partnership,

as the Borrower,  

 THE ENTITIES FROM TIME TO TIME PARTIES HERETO

AS GUARANTORS,  

 THE MACERICH COMPANY,

a Maryland corporation,  

 THE BANKS AND OTHER FINANCIAL INSTITUTIONS

THAT EITHER NOW OR IN THE FUTURE

ARE PARTIES HERETO  

and 

WELLS FARGO BANK,

NATIONAL ASSOCIATION,

as the Agent  

March 22, 2001 

$150,000,000 

 
 
 

CONTENTS    
  

	ARTICLE 1.	 	DEFINITIONS AND RELATED MATTERS	 	1
	 	 	Section 1.1.	 	Definitions	 	1
	 	 	Section 1.2.	 	Related Matters.	 	21
	ARTICLE 2.	 	AMOUNT AND TERMS OF THE CREDIT FACILITIES	 	22
	 	 	Section 2.1.	 	Advances	 	22
	 	 	Section 2.2.	 	Letters of Credit	 	24
	 	 	Section 2.3.	 	Use of Proceeds	 	25
	 	 	Section 2.4.	 	Interest; Conversion/Continuation	 	25
	 	 	Section 2.5.	 	Note, Etc.	 	27
	 	 	Section 2.6.	 	Fees	 	27
	 	 	Section 2.7.	 	Termination, Reduction and Extension of Commitment	 	28
	 	 	Section 2.8.	 	Repayments and Prepayments	 	28
	 	 	Section 2.9.	 	Manner of Payment	 	29
	 	 	Section 2.10.	 	Pro Rata Treatment	 	29
	 	 	Section 2.11.	 	Mandatory Suspension and Conversion of Fixed Rate Advances	 	30
	 	 	Section 2.12.	 	Increased Regulatory Costs	 	30
	 	 	Section 2.13.	 	Fixed Rate Price Adjustment	 	31
	 	 	Section 2.14.	 	Purchase, Sale and Matching of Funds	 	31
	ARTICLE 3.	 	GUARANTY	 	31
	 	 	Section 3.1.	 	Guaranty	 	31
	 	 	Section 3.2.	 	Continuing and Irrevocable Guaranty	 	32
	 	 	Section 3.3.	 	Nature of Guaranty	 	32
	 	 	Section 3.4.	 	Authorization	 	32
	 	 	Section 3.5.	 	Certain Waivers	 	33
	 	 	Section 3.6.	 	Subrogation; Certain Agreements	 	34
	 	 	Section 3.7.	 	Bankruptcy No Discharge	 	34
	 	 	Section 3.8.	 	Maximum Liability of Guarantor	 	35
	 	 	Section 3.9.	 	Financial Benefit	 	35
	 	 	Section 3.10.	 	Additional Guarantors	 	35
	ARTICLE 4.	 	CONDITIONS PRECEDENT TO ADVANCES AND LETTERS OF CREDIT	 	36
	 	 	Section 4.1.	 	Conditions Precedent to Closing Date	 	36
	 	 	Section 4.2.	 	Conditions Precedent to Advances and Letters of Credit	 	36
	 	 	Section 4.3.	 	Additional Conditions Precedent and Provisions Applicable to Certain Acquisition Advances	 	37
	ARTICLE 5.	 	REPRESENTATIONS AND WARRANTIES	 	38
	 	 	Section 5.1.	 	Organization, Authority and Tax Status of the Borrower; Enforceability, Etc.	 	38

i

 

	 	 	Section 5.2.	 	Organization, Authority and REIT Status of the REIT; Enforceability, Etc.	 	39
	 	 	Section 5.3.	 	Organization, Authority and Tax Status of Guarantors; Enforceability, Etc.	 	39
	 	 	Section 5.4.	 	Consolidated Entities and Unconsolidated Joint Ventures; Management Companies	 	40
	 	 	Section 5.5.	 	No Conflict, Etc.	 	40
	 	 	Section 5.6.	 	Financial Information	 	41
	 	 	Section 5.7.	 	No Material Adverse Changes	 	41
	 	 	Section 5.8.	 	Litigation	 	41
	 	 	Section 5.9.	 	Agreements; Applicable Law	 	41
	 	 	Section 5.10.	 	Governmental Regulation	 	41
	 	 	Section 5.11.	 	Margin Regulations	 	42
	 	 	Section 5.12.	 	Employee Benefit Plans	 	42
	 	 	Section 5.13.	 	Title to Property; Liens	 	42
	 	 	Section 5.14.	 	Licenses, Trademarks, Etc.	 	42
	 	 	Section 5.15.	 	Environmental Condition	 	43
	 	 	Section 5.16.	 	Absence of Certain Restrictions	 	43
	 	 	Section 5.17.	 	Disclosure	 	43
	ARTICLE 6.	 	AFFIRMATIVE COVENANTS OF THE BORROWER PARTIES	 	44
	 	 	Section 6.1.	 	Financial Statements and Other Reports	 	44
	 	 	Section 6.2.	 	Records and Inspection	 	45
	 	 	Section 6.3.	 	Corporate Existence, Etc.	 	46
	 	 	Section 6.4.	 	Payment of Taxes and Charges	 	46
	 	 	Section 6.5.	 	Maintenance of Properties	 	46
	 	 	Section 6.6.	 	Maintenance of Insurance	 	46
	 	 	Section 6.7.	 	Conduct of Business	 	46
	 	 	Section 6.8.	 	Exchange Listing; Tax Status of Borrower Parties	 	46
	 	 	Section 6.9.	 	Subordination	 	46
	 	 	Section 6.10.	 	Remedial Action Regarding Hazardous Materials	 	47
	ARTICLE 7.	 	NEGATIVE COVENANTS OF THE BORROWER PARTIES	 	48
	 	 	Section 7.1.	 	Unsecured Debt and Claims	 	48
	 	 	Section 7.2.	 	Investments; Asset Mix	 	48
	 	 	Section 7.3.	 	Financial Covenants	 	50
	 	 	Section 7.4.	 	Maximum Unsecured Debt	 	50
	 	 	Section 7.5.	 	Aggregate Leased Area of Real Properties in Unencumbered Pool	 	50
	 	 	Section 7.6.	 	Restriction on Fundamental Changes	 	51
	 	 	Section 7.7.	 	Transactions with Affiliates	 	51
	 	 	Section 7.8.	 	Restricted Payments	 	51

ii

 

	 	 	Section 7.9.	 	ERISA	 	52
	 	 	Section 7.10.	 	Amendments of Charter and Bylaws	 	52
	 	 	Section 7.11.	 	Payments with Respect to Permitted Subordinated Debentures	 	52
	 	 	Section 7.12.	 	Acquisitions of Real Properties	 	52
	ARTICLE 8.	 	EVENTS OF DEFAULT	 	52
	 	 	Section 8.1.	 	Events of Default	 	52
	 	 	Section 8.2.	 	Remedies	 	55
	 	 	Section 8.3.	 	Rescission	 	55
	ARTICLE 9.	 	THE AGENT AND THE LENDERS	 	57
	 	 	Section 9.1.	 	Authorization and Action	 	57
	 	 	Section 9.2.	 	Exculpation; Agent's Reliance; Etc.	 	58
	 	 	Section 9.3.	 	Agent and Affiliates	 	58
	 	 	Section 9.4.	 	Lender Credit Decision	 	58
	 	 	Section 9.5.	 	Indemnification	 	58
	 	 	Section 9.6.	 	Successor Agent	 	59
	 	 	Section 9.7.	 	Excess Payments	 	59
	 	 	Section 9.8.	 	Lender Parties	 	59
	 	 	Section 9.9.	 	Default By The Borrower; Acceleration	 	59
	 	 	Section 9.10.	 	Payments; Availability of Funds; Certain Notices	 	60
	 	 	Section 9.11.	 	Obligations of Lender Parties Several; Enforcement by the Agent	 	61
	 	 	Section 9.12.	 	Reply of Lenders	 	61
	ARTICLE 10.	 	MISCELLANEOUS	 	62
	 	 	Section 10.1.	 	Expenses; Indemnity	 	62
	 	 	Section 10.2.	 	Waivers; Modifications in Writing	 	62
	 	 	Section 10.3.	 	Cumulative Remedies; Failure or Delay	 	63
	 	 	Section 10.4.	 	Notices, Etc.	 	63
	 	 	Section 10.5.	 	Successors and Assigns	 	63
	 	 	Section 10.6.	 	Confidentiality	 	65
	 	 	Section 10.7.	 	Choice of Forum	 	65
	 	 	Section 10.8.	 	Changes in Accounting Principles	 	65
	 	 	Section 10.9.	 	Survival of Agreements, Representations and Warranties	 	66
	 	 	Section 10.10.	 	Execution in Counterparts	 	66
	 	 	Section 10.11.	 	Complete Agreement	 	66
	 	 	Section 10.12.	 	Limitation of Liability	 	66
	 	 	Section 10.13.	 	Unsecured Advances; No Lien	 	66
	 	 	Section 10.14.	 	Amendment and Restatement	 	67
	 	 	Section 10.15.	 	Waiver of Trial by Jury	 	68

iii

 
 
 

EXHIBITS    
  

	Exhibit A	 	Form of Note
	Exhibit B-1A	 	Form of Notice of Borrowing (Advances)
	Exhibit B-1B	 	Form of Notice of Borrowing (Residual Advances)
	Exhibit B-2	 	Form of Borrowing Certificate
	Exhibit B-3	 	Form of Fixed Rate Notice
	Exhibit B-4	 	Form of Certificate of Real Property Acquisition
	Exhibit C-1	 	Form of Secretary's Certificate
	Exhibit C-2	 	Form of General Partners' Certificate
	Exhibit C-3	 	Form of Officer's Certificate
	Exhibit C-4	 	Form of Compliance Certificate
	Exhibit C-5	 	Form of Pricing Certificate
	Exhibit D	 	Form of Opinion of Borrower's, REIT's and Guarantors' Counsel
	Exhibit E	 	Form of Joinder Agreement
	Exhibit F	 	Form of Assignment and Acceptance
	Exhibit G	 	Form of Application and Agreement for Standby Letter of Credit

 
 

SCHEDULES    
  

	Schedule 1.1A	 	Commitments
	Schedule 1.1B	 	Lender Information
	Schedule 1.1C	 	Unencumbered Assets
	Schedule 4.1.2.	 	Closing Documents
	Schedule 5.1.	 	Partnership Units of Borrower
	Schedule 5.4.	 	Consolidated Entities and Unconsolidated Joint Ventures
	Schedule 5.5.	 	Consents and Approvals
	Schedule 5.8.	 	Litigation
	Schedule 5.15.	 	Environmental Condition
	Schedule 10.4.	 	Borrower Party Information

iv

 
 

SECOND AMENDED AND RESTATED
  CREDIT AND GUARANTY AGREEMENT    
  

    SECOND AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT, dated as of March 22, 2001 (as amended from
time to time, this "Agreement"), by and among THE MACERICH PARTNERSHIP, L.P., a Delaware limited
partnership (the "Borrower"), THE ENTITIES FROM TIME TO TIME PARTIES HERETO AS GUARANTORS, THE MACERICH
COMPANY, a Maryland corporation (the "REIT"), THE BANKS AND OTHER FINANCIAL INSTITUTIONS THAT EITHER NOW
OR IN THE FUTURE ARE PARTIES HERETO (collectively, the "Lenders" and each individually, a  "Lender"), and WELLS FARGO BANK, NATIONAL ASSOCIATION (including in its capacity as an issuer of Letters
of Credit, the "Agent Bank"), as agent and representative for the Lenders (the Agent Bank in such capacity or any successor in such capacity is referred
to herein as the "Agent"). The Lenders (including the Agent Bank) and the Agent are collectively referred to herein as the  "Lender Parties" and each
individually as a "Lender Party."

 
 

R E C I T A L S    
  

    A.  The
Borrower, the Guarantors, the REIT, the Agent and the Agent Bank have entered into a First Amended and Restated Credit and Guaranty Agreement dated as of
June 25, 1998, as amended (the "Existing Credit Agreement"). 

    B.  As
of the Closing Date, (I) the Existing Credit Agreement is being amended and restated as set forth herein and (II) all outstanding Advances (the  "Existing Advances") under the Existing Credit
Agreement will be considered "Advances" under this Agreement, all of which transactions will occur
contemporaneously. 

 
 

ARTICLE 1.    
  

 
  DEFINITIONS AND RELATED MATTERS    
  

    Section 1.1.  Definitions.  The following terms with initial capital letters have
the following meanings: 

    "Acquisition" means any direct or indirect purchase or acquisition (including pursuant to any merger with any Person other than a
Consolidated Entity prior to such merger) of any Capital Stock of any Person, or all or any substantial part of the business or assets of any Person, or the purchase or acquisition of any Real
Property of any other Person, in each case, either in one transaction or a series of transactions. 

    "Acquisition Advances" is defined in Section 4.3.1.3. 

    "Acquisition Agreement" is defined in Section 4.3.1.6. 

    "Advance" is defined in Section 2.1.1. 

    "Affiliate" means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such first Person. Unless otherwise indicated, "Affiliate" refers to an Affiliate of any Borrower Party. Notwithstanding the foregoing,
in no event shall any Lender Party or any Affiliate of any Lender Party be deemed to be an Affiliate of the Borrower. 

    "Agent" is defined in the Preamble. 

    "Agent Bank" is defined in the Preamble. 

    "Agent's Account" means the account identified on Schedule 1.1B as the Agent's
Account or such account as the Agent may hereafter designate by notice to the Borrower and each Lender. 

    "Agent's Office" means the office of the Agent identified as such on  Schedule 1.1.B, or such other office as the Agent may hereafter designate by notice to
the Borrower and each Lender. 

 

    "Agreement" is defined in the Preamble and includes all Schedules and Exhibits. 

    "Applicable Law" means all applicable provisions of all (i) constitutions, treaties, statutes, laws, rules, regulations and
ordinances of any Governmental Authority, (ii) Governmental Approvals and (iii) orders, decisions, judgments, awards and decrees of any Governmental Authority. 

    "Applicable Lending Office" means, with respect to any Lender, (i) in the case of any payment with respect to Fixed Rate
Advances, the Lender's LIBO Lending Office, and (ii) in the case of any payment with respect to Base Rate Advances or any other payment under the Loan Documents, the Lender's Domestic Lending
Office. 

    "Applicable LIBO Margin" means, in respect of Fixed Rate Advances at any date, (i) 1.350% per annum if the ratio of Total
Liabilities to Gross Asset Value (expressed as a percentage) as of the last day of the Fiscal Quarter most recently ended is less than 50.0%, (ii) 1.500% per annum if the ratio of Total
Liabilities to Gross Asset Value (expressed as a percentage) as of the last day of the Fiscal Quarter most recently ended is greater than or equal to 50.0% but less than 55.0%, (iii) 1.650% per
annum if the ratio of the Total Liabilities to Gross Asset Value (expressed as a percentage) as of the last day of the Fiscal Quarter most recently ended is greater than or equal to 55.0% but less
than 60.0%, or (iv) 1.800% per annum if none of clause (i), (ii) or (iii) applies (including if the Pricing Certificate showing that any of clause (i),
(ii) or (iii), as the case may be, is satisfied is not delivered when required hereby), provided in the case of any of clause (i),
(ii) or (iii), at least four Business Days shall have expired from the day on which the Borrower shall have delivered a Pricing Certificate showing that any of clause (i), (ii) or
(iii) is satisfied and provided, further, that any change in the Applicable LIBO Margin resulting from the change in the ratio of Total
Liabilities to Gross Asset Value shall not take effect until the fifth Business Day after the Pricing Certificate with respect to a Fiscal Quarter is (or is required to be) delivered. 

    "Applicable LIBO Rate" means, in respect of Fixed Rate Advances, the rate of interest, rounded upward (if necessary) to the nearest
whole multiple of .01%, equal to the sum of (x) the Applicable LIBO Margin, plus (y) the LIBO Rate, which LIBO Rate is divided by 1.00
minus the Reserve Percentage, which may be expressed as follows: 

	Applicable LIBO Rate	 	=	 	Applicable LIBO Margin +	 	LIBO Rate / (1 - Reserve Percentage)

    "Assigned Commitments" is defined in the Recitals. 

    "Assignment" and "Assignment and Acceptance" are defined in Section 10.5.2. 

    "Bankruptcy Code" means Title 11 of the United States Code (11 U.S.C. Section 101 et
seq.), as amended from time to time. 

    "Bankruptcy Remote Entity" means a Consolidated Entity (i) one hundred percent of the Capital Stock of which is owned, directly
or indirectly, by the Borrower or the REIT and (ii) which is a so-called "bankruptcy remote special purpose vehicle" or "bankruptcy remote SPV" that meets, or at the time such
Consolidated Entity first added the applicable provisions to its organizational documents met, the published criteria in effect from time to time of S&P, Moody's, Duff & Phelps Credit Rating
Co. or Fitch Investors Service Inc. 

    "Base Rate" means a fluctuating interest rate per annum as shall be in effect from time to time, which rate per annum shall at all
times be equal to the higher of: 

	(i)
	the
then effective Prime Rate; or

	(ii)
	the
then effective Federal Funds Rate plus 0.50%. 

2

 

Each
change in the interest rate on Advances based on a change in the Base Rate shall be effective as of the effective date of such change in the Base Rate. 

    "Base Rate Advance" means any Advance that constitutes or, when made, will constitute, part of the Base Rate Portion. 

    "Base Rate Portion" means, at any time, the portion or portions of the unpaid principal balance of all Advances bearing interest at a
rate determined by reference to the Base Rate. 

    "Board of Directors" means the Board of Directors, as constituted from time to time, of the REIT (in the case of actions to be taken by
the REIT, the Borrower or any other Borrower Party or Consolidated Entity of which the REIT is the general partner or manager) or of any other Borrower Party or Consolidated Entity (as in the case of
actions to be taken by such Borrower Party or Consolidated Entity or by any other Borrower Party or Consolidated Entity of which such Borrower Party or Consolidated Entity is the general partner or
manager). 

    "Borrower" is defined in the Preamble and includes its successors and permitted assigns. 

    "Borrower Account" means the account of the Borrower identified as such on  Schedule 10.4., or such other account as the Borrower may hereafter designate by
notice to the Agent (including in connection with a Credit Sweep
Program), provided that if such account is maintained with any Person other than the Agent Bank, such designation shall not be effective unless and
until a Funds Transfer Agreement and all documents contemplated thereby are executed and delivered by the Borrower to the Agent Bank. 

    "Borrower Party" means the Borrower, any Guarantor or the REIT. Notwithstanding anything herein to the contrary, recourse to the REIT
for payment and performance of the Obligations is limited as set forth in Section 10.12. 

    "Borrowing" means a contemporaneous borrowing of Advances or the issuance of a Letter of Credit, as applicable. 

    "Bullet Payment" means any payment of the entire unpaid balance of any Debt at its final maturity other than the final payment with
respect to a loan that is fully amortized over its term. 

    "Business Day" means a day of the week (but not a Saturday, Sunday or holiday) on which the offices of banks located in San Francisco
and Los Angeles, California are open to the public for carrying on substantially all of such banks' business functions, provided that with respect to
any Fixed Rate Advance, "Business Day" shall further mean any day on which commercial banks are open for dealings in Dollar deposits in the London interbank market. 

    "Capital Stock" means, with respect to any Person, all (i) shares, interests, participations or other equivalents (howsoever
designated) of capital stock or partnership or other equity interests of such Person and (ii) rights (other than debt securities convertible into capital stock or other equity interests),
warrants or options to acquire any such capital stock or partnership or other equity interests of such Person. The term "Capital Stock" includes the Partnership Units of the Borrower. 

    "Capitalized Leases" means all leases of the REIT and the Consolidated Entities of real or personal property that are required to be
capitalized on the consolidated balance sheets of such Persons. 

    "Capitalized Loan Fees" means, with respect to the REIT, any Consolidated Entity or any Unconsolidated Joint Venture, and with respect
to any period, any upfront, closing or similar fees paid by such Person in connection with the incurrence or refinancing of Debt during such period that are capitalized on the balance sheet of such
Person. 

    "Closing Date" means the earliest date upon which all of the conditions to the effectiveness of this Agreement set forth in
Section 4.1. are satisfied. 

3

 

    "Code" means the Internal Revenue Code of 1986, as amended from time to time. 

    "Collateral" is defined in Section 3.2. 

    "Commencement of Construction" with respect to a Real Property, means the commencement of material on-site work (including
grading) or the commencement of a work of improvement of such Real Property. 

    "Commitment" means, with respect to each Lender, the amount set forth for such Lender as its "Commitment" on  Schedule 1.1.A, as reduced or terminated from
time to time pursuant to the terms hereof. 

    "Commitment Usage" means, at any time, (i) with respect to any Lender, the sum of (A) the aggregate unpaid principal
amount of all Advances made by such Lender, plus (B) the Lender's pro rata share of all Letter of
Credit Liability, plus (C) the Lender's pro rata share of the Interest Reserve or
(ii) with respect to all Lenders, the sum of (A) the aggregate unpaid principal amount of all Advances made by all Lenders, plus
(B) all Letter of Credit Liability, plus (C) the Interest Reserve, in each case, giving effect to the Borrowings then requested. 

    "Compliance Certificate" means a certificate of the chief financial officer and the secretary of each Borrower Party, substantially in
the form of Exhibit C-4. 

    "Consolidated Entities" means, collectively, (i) the Borrower, (ii) any other Person the accounts of which are
consolidated with those of the REIT in the consolidated financial statements of the REIT in accordance with GAAP, and (iii) except for purposes of Sections 7.1.2. and 7.3., all Unconsolidated
Joint Ventures of which any Consolidated Entity is a general partner or of which any Consolidated Entity owns more than 50% of the Capital Stock. 

    "Construction-in-Process" means, with respect to any Retail Property Under Construction, the aggregate amount
of expenditures classified as "construction-in-process" on the REIT's balance sheet with respect thereto. 

    "Contingent Obligation" means, as to any Person, any obligation, direct or indirect, contingent or otherwise, of such Person
(i) with respect to any Debt or other obligation of another Person, including any direct or indirect guarantee of such Debt (other than any endorsement for collection in the ordinary course of
business) or any other direct or indirect obligation, by agreement or otherwise, to purchase or repurchase any such Debt or obligation or any security therefor, or to provide funds for the payment or
discharge of any such Debt or obligation (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), (ii) to provide funds to maintain the financial condition
of the other Person, or (iii) otherwise to assure or hold harmless the holders of Debt or other obligation of another Person against loss in respect thereof. The amount of any Contingent
Obligation shall be an
amount equal to the amount of the Debt or obligation guaranteed or otherwise supported thereby. Notwithstanding the foregoing, "Contingent Obligations"
shall not include (w) any obligation of the Borrower or any of the Consolidated Entities under any contract for the acquisition of Real Property entered into in the ordinary course to pay the
purchase price of such Real Property prior to the transfer of title to such Real Property, (x) any unliquidated contingent liabilities under environmental indemnities given by the Borrower or
any of the Consolidated Entities, (y) any unliquidated contingent liabilities under recourse exceptions to any Non-Recourse Debt to the extent that such exceptions relate to:
(1) misapplication or misappropriation of insurance or condemnation proceeds, security deposits or rents; (2) fraud; (3) waste; (4) violations of transfer provisions; or
(5) gross negligence or willful misconduct which results in the loss of property or (z) any amount representing the excess of the obligations of an Unconsolidated Joint Venture over the
Borrower's pro rata share of such obligations. 

4

 

    "Contractual Obligation" means, as applied to any Person, any provision of any security issued by that Person or of any agreement or
other instrument to which that Person is a party or by which it or any of the properties owned by it is bound or otherwise subject. 

    "Control" means the possession, directly or indirectly, of the power, whether or not exercised, to direct or cause the direction of the
management or policies of a Person, whether through the ownership of Capital Stock, by contract or otherwise, and the terms "controlled" and
"common control" have correlative meanings. 

    "Controlled Consolidated Entity" means any Consolidated Entity, except an Unconsolidated Joint Venture that is not controlled by the
REIT or the Borrower, provided that any Unconsolidated Joint Venture the general partners of which include both a Consolidated Entity (or a Person
controlled by a Consolidated Entity) and a Person (the "Third Person") other than a Consolidated Entity (or an Affiliate of a Consolidated Entity) shall
not be a Controlled Consolidated Entity as to any transaction or matter that such Third Person has the power, under Applicable Law, to engage in or undertake on behalf of the Unconsolidated Joint
Venture without the consent of the Consolidated Entity that is also a general partner (whether or not such consent would be required under the partnership agreement or any other Contractual Obligation
of the Third Person or the Unconsolidated Joint Venture). 

    "Controlled Group" means all domestic and foreign members of a controlled group of corporations under Section 1563(a) of the
Code (determined without regard to Section 1563(b)(2)(C) of the Code) and all trades or businesses (irrespective of whether incorporated) that are under common control with the REIT. With
regard to all Plans and Multiemployer Plans, "Controlled Group" includes all ERISA Affiliates. 

    "Credit Sweep Program" is defined in Section 2.1.3.3. 

    "Cut-off Date" is defined in Section 4.3.2.1. 

    "Debt" means, with respect to any Person, the aggregate amount of, without duplication: (i) all obligations for borrowed money
including, in the case of the REIT, the Permitted Subordinated Debentures; (ii) all obligations evidenced by bonds, debentures, notes or other similar instruments; (iii) all obligations
to pay the deferred purchase price of property or services (excluding current trade accounts payable arising in the ordinary course of business not overdue by more than 60 days);
(iv) all Capitalized Leases; (v) all obligations or liabilities of others secured by a Lien on any asset owned by such Person or Persons whether or not such obligation or liability is
assumed; (vi) all obligations of such Person or Persons, contingent or otherwise, in respect of any letters of credit or bankers' acceptances; (vii) the maximum fixed redemption or
repurchase price of Disqualified Capital Stock of such Person at the date of determination, (viii) all Contingent Obligations and (ix) the Interest Reserve, which shall be considered
Unsecured Debt for purposes of this Agreement. 

    "Default" means any condition or event that, with the giving of notice or lapse of time or both, would, unless cured or waived, become
an Event of Default. 

    "Defaulting Lender" is defined in Section 9.10.2. 

    "Defined Benefit Plan" means any pension plan subject to Title IV of ERISA including a Multiemployer Plan and any money purchase
pension plan subject to the funding requirements of Section 412 of the Code. 

    "Depreciation and Amortization Expense" means (without duplication), for any period, the sum for such period of (i) total
depreciation and amortization expense, whether paid or accrued, of the REIT and the Consolidated Entities, plus (ii) the REIT's and any
Consolidated Entity's pro rata share of depreciation and amortization expenses of Unconsolidated Joint Ventures. For purposes of this definition, the
REIT's pro rata share of depreciation and amortization expense of any Unconsolidated Joint Venture shall be deemed equal to the product of
(i) the depreciation and amortization expense of 

5

 

such Unconsolidated Joint Venture, multiplied by (ii) the percentage of the total outstanding Capital Stock of such Person held by the REIT or
any Consolidated Entity, expressed as a decimal. 

    "Disqualified Capital Stock" of any Person means any Capital Stock of such Person (other than preferred stock of the REIT issued and
outstanding on the Closing Date) that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or otherwise (including upon the occurrence of any
event), is required to be redeemed or is redeemable for cash at the option of the holder thereof, in whole or in part (including by operation of a sinking fund), or is exchangeable for Debt (other
than at the option of such Person), in whole or in part, at any time prior to the 91st day after the Maturity Date. 

    "Dollars" and "$" means lawful money of the United States of America. 

    "Domestic Lending Office" means the office, branch or Affiliate of the Lender identified on  Schedule 1.1B designated as its Domestic Lending Office or such
other office, branch or Affiliate as such Lender may hereafter designate as its
Domestic Lending Office for one or more types of Advances by notice to the Borrower and the Agent. 

    "EBITDA" means, for any period, (i) Net Income, plus (without duplication)
(A) Interest Expense, (B) Tax Expense, and (C) Depreciation and Amortization Expense, in each case for such period. 

    "Effective Rate" is defined in Section 2.4.1. 

    "Eligible Assignee" is defined in Section 10.5.2. 

    "Environmental Damages" means all claims, judgments, damages, losses, penalties, liabilities (including strict liability), costs and
expenses, including costs of investigation, remediation, defense, settlement and attorneys' fees and consultants' fees, that are incurred at any time as a result of the existence of Hazardous
Materials upon, about or beneath any Real Property or migrating or threatening to migrate to or from any Real Property, or arising in any manner whatsoever out of any violation of Environmental
Requirements. 

    "Environmental Lien" means a Lien in favor of any Governmental Authority for Environmental Damages. 

    "Environmental Requirements" means all Applicable Laws relating to Hazardous Materials or the protection of human health or the
environment, including all requirements pertaining to reporting, permitting, investigation and remediation of releases or threatened releases of Hazardous Materials into the environment, or relating
to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials. 

    "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

    "ERISA Affiliate" means any Person that is or was a member of the controlled group of corporations or trades or businesses (as defined
in Subsection (b), (c), (m) or (o) of Section 414 of the Code) of which any Borrower Party is or was a member at any time within the last six years. 

    "Existing Advances" is defined in the Recitals. 

    "Existing Credit Agreement" is defined in the Recitals. 

    "Existing Letters of Credit" is defined in the Recitals. 

    "Extension Fee" is defined in Section 2.6.4. 

    "Event of Default" means any of the events specified in Section 8.1. 

    "Facility Fee" is defined in Section 2.6.3. 

6

 

    "fair salable value" is defined in Section 3.9. 

    "fair valuation" is defined in Section 3.9. 

    "Federal Funds Rate" means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100th of 1%) 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 next preceding Business Day) by the Federal Reserve Bank of New York on the Business Day next succeeding such day,  provided that if such rate is not so published for
any day that is a Business Day, the Federal Funds Rate for such day shall be the average rate charged
to the Agent Bank on such day on such transactions as determined by the Agent Bank. 

    "Federal Reserve Board" means the Board of Governors of the Federal Reserve System, or any successor thereto. 

    "Fee Letter" means that certain letter dated February  , 2001 between the Borrower and the Agent, as amended from time
to time. 

    "Fees" means, collectively, the fees described or referenced in the Fee Letter and in Section 2.6. 

    "Fiscal Year" means the fiscal year of the REIT, which shall be the 12-month period ending on December 31 in each
year or such other period as the REIT may designate and the Agent may approve in writing. "Fiscal Quarter" or "fiscal
quarter" means any three-month period ending on March 31, June 30 or September 30 of any Fiscal Year. 

    "Fixed Charges" means, for any period, the sum of the amounts for such period of (i) scheduled payments of principal of Debt of
the REIT and the Consolidated Entities (other than any Bullet Payment), (ii) the REIT's pro rata share of scheduled payments of principal of Debt
of Unconsolidated Joint Ventures (other than any Bullet Payment) that does not otherwise constitute Debt of and is not otherwise recourse to the REIT and the Consolidated Entities or their assets,
(iii) Interest Expense, (iv) payments of dividends in respect of Disqualified Capital Stock and (v) an amount equal to $0.05 per quarter, multiplied
by the Gross Leasable Area of all Real Properties wholly-owned by the Consolidated Entities and the pro rata share of the Gross
Leasable Area of all the Real Properties owned by the
Unconsolidated Joint Ventures and the Gross Leasable Area of all the Real Properties partially-owned by the Consolidated Entities, in each case, at the end of such period  minus (vi) to the extent
otherwise included in Interest Expense, dividends and other distributions paid during such period by the Borrower or the
REIT with respect to preferred stock. For purposes of clauses (ii) and (v), the REIT's pro rata share of payments by or square footage of any
Unconsolidated Joint Venture shall be deemed equal to the product of (a) the payments made by or square footage of such Unconsolidated Joint Venture, multiplied
by (b) the percentage of the total outstanding Capital Stock of such Person held by the REIT or any Consolidated Entity, expressed as a decimal. 

    "Fixed Charge Coverage Ratio" means, at any time, the ratio of (i) EBITDA for the fiscal quarter then most recently ended, to
(ii) Fixed Charges for such period. 

    "Fixed Rate" means the Applicable LIBO Rate as accepted by the Borrower as an Effective Rate for a particular Fixed Rate Period and
Fixed Rate Portion. 

    "Fixed Rate Advance" means any Advance that constitutes or, when made, will constitute, the Fixed Rate Portion of any Advance. 

    "Fixed Rate Commencement Date" is defined in Section 2.4.2.4. 

7

 
    "Fixed Rate Notice" means, with respect to any Fixed Rate Advance, a written notice, substantially in the form of  Exhibit B-3, which confirms the Fixed Rate for a particular Fixed Rate Period and the Fixed Rate Portion. 

    "Fixed Rate Period" means the period or periods of any Fixed Rate Advance, (a) one, two, three or six months; or (b) any
other period of at least one month that ends at the Maturity Date, which periods are selected by the Borrower pursuant to Section 2.4.2. and may be confirmed in a Fixed Rate Notice;  provided that
no Fixed Rate Period shall extend beyond the Maturity Date. Notwithstanding the foregoing: (a) if a Fixed Rate Advance is
continued, the Fixed Rate Period applicable to the continued or converted Advance shall commence on the day on which the Fixed Rate Period applicable to such Fixed Rate Advance ends; and
(b) any Fixed Rate Period applicable to a Fixed Rate Advance (1) that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day,
unless such succeeding Business Day falls in another calendar month, in which case such Fixed Rate Period shall end on the next preceding Business Day or (2) that begins on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Fixed Rate Period) shall end on the last Business Day of the calendar
month at the end of such Fixed Rate Period. 

    "Fixed Rate Portion" means the portion or portions of the unpaid principal balance of all Advances that the Borrower selects to have
subject to a Fixed Rate. The Fixed Rate Portion shall comply with Sections 2.4.2.7. 

    "Fixed Rate Price Adjustment" is defined in Section 2.13. 

    "Floating Rate Debt" is defined in Section 7.3.6. 

    "Funding Date" means any date on which an Advance is (or is requested to be) made or a Letter of Credit is (or is requested to be)
issued. 

    "Funds From Operations" or "FFO" means, for any period, the "Funds From Operations"
calculated for such period in accordance with NAREIT Guidelines, provided that, notwithstanding Section 10.8., the components of Funds From
Operations or FFO shall be calculated on the basis of, and in accordance
with, GAAP as it exists on the date of this Agreement, and no effect shall be given to any changes to such accounting principles that may be made from time to time after the Closing Date. It is
understood by the parties that, notwithstanding the internal accounting practices or operations of the Borrower, the defined terms included in this definition shall have the meanings set forth in this
Agreement. 

    "Funds Transfer Agreement" means a Funds Transfer Agreement for Disbursement of Loan Proceeds between the Agent Bank and the Borrower,
on the Agent Bank's standard form, executed and delivered after the date of the Existing Credit Agreement as contemplated by the definition of "Borrower Account," as such agreement may be amended from
time to time. 

    "GAAP" means generally accepted accounting principles as in effect in the United States of America (as such principles are in effect on
the date hereof), [except for such deviations or adjustments as are necessary in order to eliminate the effect of Staff Accounting Bulletin No. 101 issued by the Financial
Accounting Standards Board]. 

    "Governmental Approval" means an authorization, consent, approval, permit or license issued by, or a registration or filing with, any
Governmental Authority. 

    "Governmental Authority" means any nation and any state or political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government and any tribunal or arbitrator of competent jurisdiction. 

8

 

    "Gross Asset Value" means, at any time, 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) 8.25% (expressed as a decimal), in the
case of regional Retail Properties or (2) 9.50% (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) a percentage (expressed as a decimal) equal to the percentage of the
total outstanding
Capital Stock held by the Borrower of the Consolidated Entity or Unconsolidated Joint Venture holding title to such Retail Properties, plus

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

    (iv) for
Mortgage Loans that are Wholly-Owned, the lowest of (A) the book value of each such Mortgage Loan at the time it is initially acquired, (B) the
book value of each such Mortgage Loan at the time Gross Asset Value is being determined, or (C) the excess, if any, of (1) 80% of the Gross Asset Value of the Retail Property securing
such Mortgage Loan, determined pursuant to the applicable clause of this definition as if such Retail Property were Wholly-Owned, over (2) the amount of any Debt and other liabilities or
obligations, absolute or contingent, also secured by a Lien on such Retail Property, which Lien is senior to or pari passu with the Lien securing such
Mortgage Loan; plus

  (v)(a) 100%
of Construction-in-Process with respect to Retail Properties that are Wholly-Owned and (b) the product of (1) 100% 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 Borrower of the Consolidated Entity or Unconsolidated Joint Venture 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 the
Borrower of the Consolidated Entity or Unconsolidated Joint Venture holding title to such Retail 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 Borrower and the Consolidated Entities as a whole; 

    provided, however, that 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. 

    "Gross Leasable Area" means the total leasable square footage of buildings situated on Real Properties, excluding the square footage of
any department stores. 

    "Guarantor" means (i) any Initial Guarantor and (ii) any other Person who from time to time becomes a Guarantor hereunder
by executing and delivering a Joinder Agreement substantially in the 

9

 

form of Exhibit E, in each case unless and until such Person is released from any further liability hereunder pursuant to the terms of this
Agreement. 

    "Guaranty" is defined in Section 3.1. 

    "Hazardous Materials" means any chemical substance (i) the presence of which requires investigation or remediation under any
Applicable Law; or (ii) that is or becomes defined as a "hazardous waste" or "hazardous substance" under any Applicable Law, including the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. Section 9601 et seq.) or the Resource Conservation and Recovery Act (42 U.S.C. Section 6901  et seq.); or (iii) that
is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic, or otherwise hazardous and
is or becomes regulated by any Governmental Authority; or (iv) the presence of which on any Real Property causes or threatens to cause a nuisance upon the Real Property or to adjacent
properties or poses or threatens to pose a hazard to any Real Property or to the health or safety of Persons on or about any Real Property; or (v) which contains gasoline, diesel fuel or other
petroleum hydrocarbons; or (vi) which contains polychlorinated biphenyls (PCBs) or asbestos. 

    "Indemnified Liabilities" is defined in Section 10.1.3. 

    "Indemnitees" is defined in Section 10.1.3. 

    "Initial Guarantors" means MACERICH BRISTOL ASSOCIATES, a California general partnership, and its successors, 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, and MACERICH SASSAFRAS LIMITED PARTNERSHIP, a California limited partnership, and its successors. 

    "Insolvent" is defined in Section 3.9. 

    "Intangible Assets" means (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 REIT or any Consolidated Entity. 

    "Interest Coverage Ratio" means, at any time, the ratio of (i) EBITDA for the fiscal quarter then most recently ended, to
(ii) Interest Expense for such period. 

    "Interest Expense" means, for any period, the sum (without duplication) for such period of (i) total interest expense, whether
paid or accrued, of the REIT and the Consolidated Entities, including Fees payable pursuant to Section 2.6., charges in respect of Letters of Credit and the portion of any Capitalized Lease
Obligations allocable to interest expense, including the REIT's share of interest expenses in Unconsolidated 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 the REIT), (iii) capitalized interest, provided that
capitalized interest may be excluded from this clause (iii) to the extent such interest (A) does not exceed the Interest Reserve designated for such period or (B) is paid or
reserved out of any interest reserve established under a loan facility, (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), the REIT's pro
rata share of interest expense and other amounts of the type referred to in such clauses of the Unconsolidated Joint Ventures, and (vi) interest incurred on any
liability or obligation that constitutes a Contingent Obligation of the REIT or any Consolidated Entity. For purposes of clause (v), the REIT's pro
rata

10

 

share of interest expense or other amount of any Unconsolidated Joint Venture shall be deemed equal to the product of (a) the interest expense or other relevant amount of such Unconsolidated
Joint Venture, multiplied by (b) the percentage of the total outstanding Capital Stock of such Person held by the REIT or any Consolidated
Entity, expressed as a decimal. 

    "Interest Reserve" means, with respect to any Fiscal Quarter, the dollar amount designated by the Borrower as "Interest Reserve" for
such Fiscal Quarter in the Compliance Certificate submitted during such Fiscal Quarter; provided, however, that such dollar amount may not exceed the
lesser of (i) the
amount that the Borrower would be permitted to draw as an Advance under this Agreement or (ii) $10,000,000; provided further, however, that on
the date of this Agreement, the Interest Reserve shall be equal to $2,000,000. 

    "Investment" means, with respect to any Person, (i) any direct or indirect purchase or other acquisition by that Person of
Capital Stock, or any beneficial interest in Capital Stock, of any other Person or all or any substantial part of the business or assets of any other Person, or (ii) any direct or indirect
loan, advance or capital contribution by that Person to any other Person, including all indebtedness and accounts receivable from that other Person that are not current assets or did not arise from
sales to that other Person in the ordinary course of business. The amount of any Investment shall be the original cost of such Investment, plus the cost
of all additions thereto, without any adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with respect to such Investment. 

    "Joint Venture" means a joint venture, partnership, limited liability company, real estate investment trust, business trust or similar
arrangement, whether in corporate, partnership or other legal form; provided that, as to any such arrangement in corporate form, such corporation shall
not, as to any Person of which such corporation is a Subsidiary, be considered to be a Joint Venture to which such Person is a party. 

    "Lender" is defined in the Preamble, subject to Section 9.10.2. For purposes of the Sections referred to in (and subject to)
Section 10.5.3., "Lender" includes a holder of a Participation. 

    "Lender Party" is defined in the Preamble. For purposes of the Sections referred to in (and subject to) Section 10.5.3.,
"Lender Party" includes a holder of a Participation. 

    "Letter of Credit" means a standby letter of credit issued pursuant to this Agreement (including the Existing Letters of Credit) and a
Letter of Credit Agreement, either as originally issued or as amended, supplemented, modified, renewed or extended. 

    "Letter of Credit Agreement" means an Application and Agreement for Standby Letter of Credit in the form attached hereto as  Exhibit G. 

    "Letter of Credit Collateral" is defined in Section 8.4.2. 

    "Letter of Credit Collateral Account" is defined in Section 8.4.1. 

    "Letter of Credit Fee" is defined in Section 2.6.2. 

    "Letter of Credit Liability" means, at any time, all contingent liabilities of the Borrower to the Agent Bank in respect of Letters of
Credit outstanding at such time and shall equal the aggregate Stated Amount of all Letters of Credit then outstanding. 

    "LIBO Lending Office" means the office, branch or Affiliate of any Lender identified on  Schedule 1.1.B as its LIBO Lending Office or such other office,
branch or Affiliate as such Lender may hereafter designate as its LIBO Lending
Office by notice to the Borrower and the Agent. 

    "LIBO Rate" is the rate of interest, rounded upward (if necessary) to the nearest whole multiple of one-sixteenth of one
percent (.0625%), quoted by the Agent Bank as the London Inter-Bank Offered 

11

 

Rate for deposits in U.S. Dollars at approximately 11:00 a.m. (London time), on the second Business Day prior to (or, if the Agent Bank is then the sole Lender hereunder, on) a Fixed Rate
Commencement Date or on a Price Adjustment Date, as appropriate, for purposes of calculating effective rates of interest for loans or obligations making reference thereto for an amount approximately
equal to the Fixed Rate Portion and for a period of time approximately equal to a Fixed Rate Period or the time remaining in a Fixed Rate Period after a Price Adjustment Date, as appropriate. 

    "Lien" means any lien, mortgage, pledge, security interest, charge, or encumbrance of any kind (including any conditional sale or other
title retention agreement or any lease in the nature thereof) and any agreement to give or refrain from giving any lien, mortgage, pledge, security interest, charge, or other encumbrance of any kind. 

    "Loan Documents" means, collectively, this Agreement, the Notes, the Fee Letter, each Letter of Credit Agreement, each Letter of
Credit, any Funds Transfer Agreement and any other agreement, instrument or other writing executed or delivered by the Borrower, the REIT or any Subsidiary in connection herewith from time to time,
and all amendments, exhibits and schedules to any of the foregoing. 

    "M&F Gross Leaseable Area" means, with respect to any Real Property, the gross leaseable area of the mall and freestanding areas of
such Real Property (excluding the gross leaseable area of such Real Property that is, at the time of determination, undergoing substantial capital improvements other than any such capital improvements
made to a tenant space pursuant to or in anticipation of a new or renewed lease for such space). 

    "Management Companies" means Macerich Property Management Company, a California corporation, and Macerich Management Company, a
California corporation, and includes their respective successors. 

    "Management Contract" means any contract between any Management Company, on the one hand, and the Borrower and/or any other
Consolidated Entity or Unconsolidated Joint Venture, on the other hand, relating to the management of the Borrower, any other Consolidated Entity or any Unconsolidated Joint Venture or any of the
properties of such Person, as the same may be amended from time to time. 

    "Macerich Group Member" means any of the Borrower Parties, the Principal Investors, the Management Companies, any Consolidated Entity
(other than any of the foregoing), or any other Person involved in the day-to-day management of any Consolidated Entity or any Real Property held by it. 

    "Margin Regulations" means Regulations T, U and X of the Federal Reserve Board, as amended from time to time. 

    "Margin Stock" means "margin stock" as defined in Regulation U. 

    "Material," "Material Adverse Effect" or "Material Adverse
Change" means (i) a condition or event material to, (ii) a material adverse effect on or (iii) a material adverse change in, as the case may be, any one or
more of the following: (A) the business, assets, results of operations, financial condition or prospects of the REIT and the Consolidated Entities taken as a whole or (B) the ability of
any Borrower Party to perform its obligations under any Loan Document to which it is a party. 

    "Maturity Date" means May 26, 2002; provided, that if the Maturity Date shall
have been extended pursuant to Section 2.7.2., "Maturity Date" means May 26, 2003. 

12

 

    "Measuring Period" means 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 Interests" means all of the Partnership Units of the Borrower held by any Person other than the REIT. 

    "Moody's" means Moody's Investors Service, Inc. or any successor. 

    "Mortgage Loans" means all loans owned or held by the Borrower secured by mortgages or deeds of trust on Retail Properties. 

    "Multiemployer Plan" means a "multiemployer plan" as defined in Section 3(37) and Section 4001(a)(3) of ERISA to which
the Borrower or any of its ERISA Affiliates is making or accruing an obligation to make contributions or to which any such Person has made or accrued an obligation to make contributions. 

    "NAREIT Guidelines" means the guidelines published by the National Association of Real Estate Investment Trusts as in effect on the
date of this Agreement. 

    "Net Income" means, for any period, total net income (or loss) of the REIT and the Consolidated Entities for such period taken as a
single accounting period, including the REIT's pro rata share of the income (or loss) of any Unconsolidated Joint Venture for such period,  provided that
there shall be excluded therefrom (i) any charges for minority interests in the Borrower held by Persons holding Partnership Units
of the Borrower (other than the REIT), (ii) any income or loss attributable to extraordinary items, (iii) gains and losses from sales of assets (other than undeveloped land that
constitutes a portion of any Retail Property), (iv) except to the extent otherwise included hereunder, the income (or loss) of any Person accrued prior to the date it becomes a Consolidated
Entity or is merged with the REIT or any Consolidated Entity or such Person's assets are acquired by the REIT or any Consolidated Entity, and (v) any impairment loss required to be taken in
such period in accordance with Statement of Financial Accounting Standards No. 121 (Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of) with respect to any long-lived assets to be disposed
of and whose value is being reported during such period at the lower of its carrying amount or fair value. For purposes of this definition, the REIT's pro
rata share of income (or loss) of any Unconsolidated Joint Venture shall be deemed equal to the product of (i) the income (or loss) of such Unconsolidated Joint Venture,  multiplied
by (ii) the percentage of the total outstanding Capital Stock of such Person held by the REIT or any Consolidated Entity, expressed as
a decimal. 

    "Net Worth" means, at any date, the consolidated stockholders' equity of the REIT and the Consolidated Entities, excluding any amounts
attributable to Disqualified Capital Stock. 

    "New Lenders" is defined in the Recitals. 

    "Non-Recourse Debt" means Debt that (i) is non-recourse to the Consolidated Entities (other than such
Unconsolidated Joint Venture) and their assets and (ii) does not constitute Debt of the Consolidated Entities (other than such Unconsolidated Joint Venture). 

    "Non-Recourse Secured Debt" means Debt that (i) is non-recourse to the Consolidated Entities (other than
such Unconsolidated Joint Venture) and their assets, (ii) does not constitute Debt of the Consolidated Entities (other than such Unconsolidated Joint Venture) and (iii) is recourse only
to Retail Properties that secures such Debt. 

    "Note" means a promissory note made by Borrower payable to the order of any Lender, in the amount of such Lender's Commitment, which
note is substantially in the form of Exhibit A, as amended from time to time. 

    "Notice of Borrowing" is defined in Section 2.1.3.1. 

13

 

    "Obligated Party" is defined in Section 9.10.2. 

    "Obligations" means all present and future obligations and liabilities of the Borrower of every type and description arising under or
in connection with this Agreement, the Notes and the other Loan
Documents due or to become due to the Lender Parties or any Person entitled to indemnification, or any of their respective successors, transferees or assigns, whether for principal, interest, letter
of credit or other reimbursement obligations, cash collateral cover, Fees, expenses, indemnities or other amounts (including attorneys' fees and expenses) and whether due or not due, direct or
indirect, joint and/or several, absolute or contingent, voluntary or involuntary, liquidated or unliquidated, determined or undetermined, and whether now or hereafter existing, renewed or
restructured, whether or not from time to time decreased or extinguished and later increased, created or incurred, whether or not arising after the commencement of a proceeding under the Bankruptcy
Code (including post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding, and whether or not recovery of any such obligation or liability may be
barred by a statute of limitations or such obligation or liability may otherwise be unenforceable. 

    "Obligor" is defined in Section 3.2. 

    "Offering Circular" means, as the case may be, (i) with respect to the debentures described in clause (i) of the
definition of "Permitted Subordinated Debentures," the Offering Circular, dated June 20, 1997, pursuant to which the Permitted Subordinated Debentures were offered by the REIT or
(ii) with respect to any other Permitted Subordinated Debentures, the final offering document pursuant to which such Permitted Subordinated Debentures are offered by the REIT. 

    "Operatives" is defined in Section 10.12.2. 

    "Other Guarantor" is defined in Section 3.2. 

    "Other Guaranty" is defined in Section 3.2. 

    "Participation" is defined in Section 10.5.3. 

    "Partnership Units," "Preferred Partnership Units",
"Series A Partnership Units" and "Series B Partnership Units" are each defined in the
Partnership Agreement of the Borrower. Unless the context indicates otherwise, the term "Partnership Units" is used herein to refer, collectively, to
the Partnership Units, the Preferred Partnership Units and the Series A Partnership Units. 

    "PBGC" means the Pension Benefit Guaranty Corporation, as defined in Title IV of ERISA, or any successor. 

    "Permitted Investments" means (i) marketable direct obligations issued or unconditionally guaranteed by the United States
Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition thereof,
(ii) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within one year from
the date of acquisition thereof and having, at the time of acquisition, the highest rating obtainable from either Standard & Poor's Ratings Group, a division of The McGraw-Hill
Companies, or Moody's, (iii) commercial paper having, at the time of acquisition, the highest rating obtainable from either S&P or Moody's, (iv) certificates of deposit, other time
deposits, and bankers' acceptances maturing within one year from the date of acquisition thereof issued by any bank operating under the laws of the United States or any state thereof or the District
of Columbia that has combined capital and surplus of not less than $500,000,000, (v) institutional money market funds organized under the laws of the United States of America or any state
thereof that invest solely in any of the Investments permitted under the foregoing clauses (i), (ii), (iii) and (iv) or (vi) Capital Stock that is (x) traded on a national
securities exchange, (y) purchased in the secondary market and (z) not subject to any legal or contractual restrictions on transferability. 

14

 

    "Permitted Subordinated Debentures" means (i) the 71/4% Convertible Subordinated Debentures due 2002 of the REIT
in the aggregate principal amount of $161,400,000, offered pursuant to the Offering Circular, which debentures have such terms and are subject to such conditions as are set forth in the Offering
Circular and (ii) any other unsecured subordinated debentures issued by the REIT provided that, in the reasonable discretion of the Agent, the
terms and conditions related to subordination of such unsecured subordinated debentures are substantially similar to the terms and conditions related to subordination of the debentures described in
clause (i) of this definition. 

    "Person" means an individual, a corporation, a partnership, a limited liability company, a trust, an unincorporated organization or any
other entity or organization, including a government or any agency or political subdivision thereof and, for the purpose of the definition of "ERISA Affiliate," a trade or business. 

    "Plan" means any pension, retirement, disability, defined benefit, defined contribution, profit sharing, deferred compensation,
employee stock ownership, employee stock purchase, health, life insurance, or other employee benefit plan or arrangement, irrespective of whether any of the foregoing is funded, in which any personnel
of any Borrower Party or its ERISA Affiliates participates or from which any such personnel may derive a benefit. 

    "Post-Default Rate" means, at any time, a rate per annum equal to the Base Rate in effect at such time  plus 2%. 

    "Price Adjustment Date", with respect to any Fixed Rate Advance is defined in Section 2.13. 

    "Pricing Certificate" means a certificate of the chief financial officer of the Borrower, substantially in the form of  Exhibit C-5. 

    "Prime Rate" means a base rate of interest which the Agent Bank establishes from time to time and which serves as the basis upon which
effective rates of interest are calculated for those loans making reference thereto. Any change in an Effective Rate due to a change in the Prime Rate shall become effective on the day each such
change is announced within the Agent Bank. 

    "Principal Investors" means, collectively, Mace Siegel, Arthur Coppola, Dana Anderson and Edward Coppola. 

    "Pro Forma Unencumbered Asset Value" is defined in Section 4.3.1.. 

    "Prohibited Transaction" means a transaction that is prohibited under Section 4975 of the Code or Section 406 or 407 of
ERISA and not exempt under Section 4975 of the Code or Section 408 of ERISA. 

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

     (i) all
expenses for the operation of such Retail Property, including any management fees payable under the Management Contracts and all insurance expenses, but not
including any expenses incurred in connection with a sale or other capital or interim capital transaction; 

    (ii) water
charges, property taxes, sewer rents and other impositions, other than fines, penalties, interest or such impositions (or portions thereof) that are payable
by reason of the failure to pay an imposition timely; and 

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

15

 

    "Property Income" means, 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 (but not such
reimbursement for expenditures not deducted as a Property Expense). 

    "Property NOI" means, for any Retail Property for any period, (i) all Property Income for such period,  minus (ii) all Property Expenses for such period.

    "Raw Land" means (i) raw land or (ii) undeveloped land that constitutes a portion of any Retail Property, other than such
portions of the Retail Properties as are reasonably considered to be an integral part of or a pad site for such properties. 

    "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 Borrower or any other Consolidated Entity. 

    "Regulation D" means Regulation D of the Federal Reserve Board, as amended from time to time. 

    "Regulation U" means Regulation U of the Federal Reserve Board, as amended from time to time. 

    "Regulatory Costs" are, collectively, future, supplemental, emergency or other changes in Reserve Percentages, assessment rates imposed
by the FDIC, or similar requirements or costs imposed by any domestic or foreign governmental authority and related in any manner to a Fixed Rate. 

    "Regulatory Change" means, with respect to any Lender, (i) the adoption or becoming effective after the date hereof of any
treaty, law, rule or regulation, (ii) any change in any such treaty, law, rule or regulation, or any change in the administration or enforcement thereof, by any Governmental Authority, central
bank or other monetary authority charged with the interpretation or administration thereof, in each case after the date hereof, or (iii) compliance after the date hereof by the Lender (or its
Applicable Lending Office or any holding company of the Lender) with, any interpretation, directive, request, order or decree (whether or not having the force of law) of any such Governmental
Authority, central bank or other monetary authority. 

    "REIT" is defined in the Preamble. 

    "Renovation LC Debt" means Debt with respect to any letter of credit provided on behalf of the Borrower or any Consolidated Entity
relating to the performance and/or completion of renovation construction at a Retail Property to the extent that (i) the Borrower or any Consolidated Entity has incurred Debt to fund such
renovation construction and (ii) the terms of such letter of credit provide that the amount of such letter of credit will be reduced upon the completion of the renovation construction, or
portion thereof, funded by the Debt referred to in clause (i) above. 

    "Required Lenders" means, (i) if the Commitments have not terminated, Lenders holding at least 662/3% of the
aggregate amount of the Commitments and, if the Agent Bank is not the sole Lender hereunder at such time, at least two Lenders, or (ii) if the Commitments have terminated, (a) Lenders
holding at least 662/3% of the sum of (x) the aggregate unpaid principal amount of the Advances plus (y) the aggregate
amount of all Letter of Credit Liability and (b) if the Agent Bank is not the sole Lender hereunder at such time, at least two Lenders, in each case giving effect to the provisions of
Section 9.10.2. 

    "Responsible Officer" is defined in Section 2.1.5.1. 

    "Reserve Percentage" is, at any time the percentage announced within the Agent Bank as the reserve percentage under Regulation D
for loans and obligations making reference to a LIBO Rate for a Fixed Rate Period or time remaining in a Fixed Rate Period on a Price Adjustment Date, as appropriate. The Reserve Percentage shall be
based on Regulation D or other regulations from time to time in effect concerning reserves for eurocurrency liabilities, as defined in Regulation D, from related institutions as
though the Agent Bank were in a net borrowing position, as promulgated by the Federal Reserve Board. 

16

  

    "Residual Advance" means that portion of an Advance that, after giving effect thereto, would result in the aggregate amount of
Unsecured Debt of the REIT and the Consolidated Entities (other than the Permitted Subordinated Debentures) exceeding 68.97% of the aggregate Unencumbered Asset Value. 

    "Residual Value" means, with respect to any Wholly-Owned Retail Property, the excess of (i) 70% of the Gross Asset Value of such
Retail Property over (ii) the aggregate outstanding amount of Debt secured by a Lien on such Retail Property, in each case, as determined as of the end of the most recently ended Measuring
Period. 

    "Restricted Cash" means any cash or cash equivalents held by the Borrower or any of the other Consolidated Entities with respect to
which the Borrower or the Consolidated Entity does not have unrestricted access and unrestricted right to expend such cash or expend or liquidate such Permitted Investments. 

    "Restricted Payment" means (i) any dividend or other distribution, direct or indirect, on account of any Capital Stock of the
Borrower, the REIT or any Subsidiary now or hereafter outstanding, except (a) a dividend or other distribution payable solely in shares of Capital Stock of the Borrower, the REIT or such
Subsidiary, as the case may be, and (b) the issuance of equity interests upon the exercise of outstanding warrants, options or other rights, or (ii) any redemption, retirement, sinking
fund or similar payment, purchase or other acquisition for value, direct or indirect, of any Capital Stock of the Borrower, the REIT or any Subsidiary now or hereafter outstanding. It is understood
that the conversion of any Capital Stock of the Borrower into Capital Stock of the REIT shall not constitute a Restricted Payment by the Borrower. 

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

    "Retail Property Under Construction" means Retail Property for which Commencement of Construction has occurred but construction of such
Retail Property is not substantially complete. 

    "SEC" means the United States Securities and Exchange Commission, and any successor. 

    "Senior Obligations" is defined in Section 9.10.2. 

    "Senior Officer" means, with respect to any Borrower Party, the Chairman of the Board of Directors, the Vice Chairman of the Board of
Directors, the President, the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, the General Counsel or any Vice President in charge of a principal
business unit or division of such Borrower Party. 

    "Senior Unsecured Interest Expense Coverage Ratio" means, at any time, the ratio of (i) Property NOI of all Unencumbered Assets
for the Fiscal Quarter then most recently ended, to (ii) Interest Expense on all Unsecured Debt for such period (other than Interest Expense attributable to the Permitted Subordinated
Debentures). 

    "Single Employer Plan" means a Plan other than a Multiemployer Plan. 

    "Stated Amount" means, with respect to a Letter of Credit, the maximum amount available to be drawn thereunder, without regard to
whether any conditions to drawing could be met. 

    "Subordinated Debt" is defined in Section 6.9. 

    "Subordinated Creditor" is defined in Section 6.9. 

    "Subsidiary" means, with respect to any Person, any other Person of which more than 50% of the total voting power of the Capital Stock
entitled to vote in the election of the board of directors (or other Persons performing similar functions) are at the time directly or indirectly owned by such first Person. Unless otherwise
specified, the term "Subsidiary" refers to any Subsidiary of a Borrower Party. 

17

 

    "S&P" means Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc., or any
successor. 

    "Tangible Net Worth" means, at any time, (i) Net Worth minus
(ii) Intangible Assets, plus (iii) solely for purposes of Section 7.3.1., any minority interest reflected in the balance sheet of
the REIT, but only to the extent attributable to Minority Interests, in each case at such time. 

    "Tax Expense" means (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 REIT and the Consolidated Entities, including the REIT's and Consolidated Entity's pro rata
share of tax expenses in the Unconsolidated Joint Venture. For purposes of this definition, the REIT's pro rata share of any such tax expense of any
Unconsolidated Joint Venture shall be deemed equal to the product of (i) such tax expense of such Unconsolidated Joint Venture, multiplied by
(ii) the percentage of the total outstanding Capital Stock of such Person held by the REIT or any Consolidated Entity, expressed as a decimal. 

    "Taxes" means, collectively, all withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise
taxes) imposed by any domestic or foreign Governmental Authority and related in any manner to a Fixed Rate. 

    "Third Person" is defined in the definition of "Controlled Consolidated Entity" in this Section 1.1. 

    "Total Liabilities" means, at any time, without duplication, the aggregate amount of (i) all Debt and other liabilities of the
Borrower and the Consolidated Entities reflected in the financial statements of the REIT or disclosed in the financial notes thereto, plus
(ii) all liabilities of all Unconsolidated Joint Ventures that is otherwise recourse to the Borrower or any Consolidated Entity or any of its assets or that otherwise constitutes Debt of the
Borrower or any Consolidated Entity, plus (iii) the Borrower's pro rata share of all Debt and
other liabilities of any Unconsolidated Joint Venture not otherwise constituting Debt of or recourse to the Borrower or any Consolidated Entity or any of its assets,  plus (iv) all liabilities of
the Borrower and the Consolidated Entities with respect to purchase and repurchase obligations, provided that such
obligations to acquire fully-constructed Retail Property shall not be included in Total Liabilities prior to the transfer of title of such Retail Property. For the purposes of clause (i), with
respect to any Retail Property Under Construction as to which the Borrower or 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 Debt incurred by the Borrower or any Consolidated Entity to fund construction with respect to any such Retail Property Under Construction, to
the extent not exceeding the amount of the applicable letter of credit and in an amount not to exceed $25,000,000 in the aggregate at any time, shall not be included. For purposes of
clause (iii), the Borrower's pro rata share of all Debt and other liabilities of any Unconsolidated Joint Venture shall be deemed equal to the
product of (a) such Debt or other liabilities, multiplied by (b) the percentage of the total outstanding Capital Stock of such Person held
by the Borrower or any Consolidated Entity, expressed as a decimal. 

    "Transferred Participations" is defined in the Recitals. 

    "Unconsolidated Joint Venture" means (i) any Joint Venture of the REIT or any Consolidated Entity in which the REIT or such
Consolidated Entity holds any Capital Stock but which would not be combined with the REIT in the consolidated financial statements of the REIT in accordance with GAAP, and (ii) any Investment
of the REIT or any Consolidated Entity in any Person that is not a Joint Venture. 

    "Unencumbered Asset" means, subject to Section 4.3., any Real Property that satisfies all of the following conditions: 

     (i) is
a neighborhood, community and regional shopping center or mall; 

18

 

    (ii) is Wholly-Owned, free and clear of any Lien on such Real Property or the Person holding title to such Real Property (unless approved in writing by the Required
Lenders in their discretion) (other than (a) easements, covenants, and other restrictions, charges or encumbrances not securing Debt that do not interfere materially with the ordinary
operations of the property and do not materially detract from the value of the property; (b) building restrictions, zoning laws and other Applicable Laws, and (c) leases and subleases of
the property in the ordinary course of business, provided that any such Liens under (c) that are ground leases entered into after the Closing
Date or that are ground leases with respect to Real Properties that become part of the Unencumbered Pool after the Closing Date shall have been approved by the Required Lenders in their discretion); 

    (iii) in
the case of any Real Property title to which is not held directly by the Borrower, (a) the Subsidiary holding title to such Real Property is a Guarantor
or becomes a Guarantor prior to the Real Property being treated as an Unencumbered Asset for purposes of determining the Unencumbered Pool, (b) the Capital Stock of such Subsidiary is not
subject to any Lien, and (c) such Subsidiary delivers to the Agent (1) an opinion of counsel, substantially in the form delivered to the Agent pursuant to Section 4.1 and by
counsel reasonably acceptable to the Agent, with respect to the matters covered by the closing opinion delivered pursuant to Section 4.1 with respect to the Initial Guarantors, and (2) a
copy of the charter documents of the Subsidiary, as in effect at that time; 

    (iv) unless
waived by the Agent, a title report from a title company of national repute for such Real Property is delivered to the Agent showing that no material
defects exist in or with respect to title to the Real Property (other than Liens permitted to exist pursuant to clause (ii)); 

    (v) unless
waived by the Required Lenders, a Phase I environmental study for such Real Property is delivered to the Agent showing that no material adverse environmental
conditions exist on or with respect to the Real Property; 

    (vi) not
less than 75% of the M&F Gross Leaseable Area of any Real Property included in the Unencumbered Pool shall be subject to a lease or a sublease pursuant to
which rent is being paid by the tenant thereunder; 

   (vii) the
Real Property has been otherwise expressly approved by the Required Lenders in writing as eligible for inclusion in the Unencumbered Pool in their discretion;
and 

   (viii) the
Real Property has been designated by the Borrower as an Unencumbered Asset. 

    Unless
the Borrower shall have notified the Agent and the Lenders to the contrary, the Real Properties listed as "Unencumbered Assets" in the Compliance Certificate most recently
delivered to the Agent pursuant to Section 6.1.3, shall be considered designated by the Borrower as Unencumbered Assets pursuant to clause (viii) above. As of the date hereof, all of the
Real Properties that have been approved by the Required Lenders as eligible for inclusion in the Unencumbered Pool and designated by the Borrower as Unencumbered Assets pursuant to clauses
(vii) and (viii) above, respectively, are set forth on Schedule 1.1C. If any Unencumbered Asset (including any of the properties
listed on Schedule 1.1C) no longer satisfies the conditions of the foregoing clauses (ii), (iii) or (vi), at the direction of the Required
Lenders, the Agent shall notify the Borrower that, effective upon the giving of such notice, such asset shall no longer be considered an Unencumbered Asset (irrespective of whether a Default or Event
of Default exists at that time or results therefrom). If the Borrower intends to designate a property as an Unencumbered Asset to be added to the Unencumbered Pool from time to time (other than those
listed on Schedule 1.1C), it will notify the Agent and the Lenders of such intention, which notice will include (a) a physical description
of the property to be added to the Unencumbered Pool, including its age and location and, if requested by the Agent, a recent title report, (b) if title to the property is held by a
Consolidated Entity other than the Borrower, the names and respective percentage interests of all Persons holding Capital Stock of such Consolidated Entity, 

19

 

(c) information regarding the occupancy of the property (a rent roll), (d) operating statements for the most recent Fiscal Quarter and the most recent Fiscal Year (and the previous
Fiscal Year, if available) and (e) an operating budget for the current Fiscal Year. The property shall become part of the Unencumbered Pool upon the written approval of the Required Lenders. If
the Borrower at any time intends to withdraw any Real Property from the Unencumbered Pool, it shall (i) notify the Agent and the Lenders of its intention, and (ii) deliver to the Agent
and the Lenders a certificate of its chief financial officer setting forth the calculations establishing that the Borrower will be in compliance with Section 7.4. with giving effect to such
withdrawal (and any concurrent addition of properties to the Unencumbered Pool), which calculations shall be substantially in the form of the calculations in  Exhibit C-4 relating to Section
 7.4. Effective automatically upon delivery of such notice and certificate by the Borrower,
(i) such property shall no longer constitute an Unencumbered Asset and (ii) if title to the property that is being released from the Unencumbered Pool is not held directly by the
Borrower and the Consolidated Entity holding title to such property holds title to no other Unencumbered Asset, such Consolidated Entity shall be released from the Guaranty, and shall cease to be a
Guarantor hereunder, in each case without any further action by the Agent or any Lender. 

    "Unencumbered Asset Value" means, at any time: 

     (i) with
respect to any specified Unencumbered Asset other than the Unencumbered Assets described in clauses (ii) or (iv) below, for each such property,
(a) the product of such property's Property NOI for the Measuring Period divided by (b) 9.50% (expressed as a decimal);  plus

    (ii) with
respect to any specified Unencumbered Asset that is a regional Retail Property other than a regional Retail Property described in clause (iv) below,
for each such property, (a) the product of such property's Property NOI for the Measuring Period, divided by (b) 8.25% (expressed as a
decimal); plus

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

 (iv)(a) 50%
of Construction-in-Process with respect to Retail Properties in the Unencumbered Pool that are Wholly-Owned and are Unencumbered
Assets and (b) the product of (1) 50% of Construction-in-Process with respect to Retail Properties in the Unencumbered Pool 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 Borrower of
the Consolidated Entity holding title to such Retail Properties in the Unencumbered Pool; provided,  however, that the Unencumbered Asset Value included in
this clause (iv) shall not constitute more than 10% percent of the total Unencumbered
Asset Value. 

    "Unencumbered Pool" means the pool of Unencumbered Assets. 

    "Unsecured Debt" means any Debt that is not secured by (i) a first priority Lien on Real Property of a Borrower Party,
(ii) a Lien on office machines, (iii) a Lien on automobiles, (iv) a Lien on personal property held at the property level used in the ongoing operation of any Retail Property or
(v) a second priority Lien on Real Property of a Borrower Party, provided that with respect to any Real Property that is the subject of a second
priority Lien (a) such Real Property is owned by a Bankruptcy Remote Entity, (b) the Debt secured by the second priority Lien on such Real Property is non-recourse to the
Borrower and (c) the sum of (x) the Debt secured by the first priority Lien on such Real Property and (y) the Debt that is secured by the second priority Lien on such Real
Property does not exceed 85% of the Gross Asset Value of such Real Property. 

20

 

    "Wholly-Owned" means, with respect to any Real Property or other asset owned or leased, that (i) title to such asset is held
directly by, or such asset is leased by, the Borrower, or (ii) in the case of Real Property, title to such property is held by, or 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 and the balance of the Capital Stock of which (if any) is held of record and beneficially by the REIT (or any wholly-
owned Subsidiary of the REIT). 

    "Wholly-Owned Entity" is defined in Section 7.2.2. 

    Section 1.2.  Related Matters.  

    1.2.1.  Construction.  Unless the context of this Agreement clearly requires
otherwise, references to the plural include the singular, the singular includes the plural, the part includes the whole, "including" is not limiting, and "or" has the inclusive meaning represented by
the phrase "and/or." The words "hereof," "herein," "hereby," "hereunder" and similar terms in this Agreement refer to this Agreement as a whole (including the Preamble, the Recitals, the Schedules and
the Exhibits) and not to any particular provision of this Agreement. Article, section, subsection, exhibit, schedule, recital and preamble references in this Agreement are to this Agreement unless
otherwise specified. References in this Agreement to any agreement, other document or law "as amended" or "as amended from time to time," or to amendments of any document or law, shall include any
amendments, supplements, replacements, renewals, waivers or other modifications. References in this Agreement to any law (or
any part thereof) include any rules and regulations promulgated thereunder (or with respect to such part) by the relevant Governmental Authority, as amended from time to time. 

    1.2.2.  Determinations.  Any determination or calculation contemplated by this
Agreement that is made by any Lender Party shall be final and conclusive and binding upon each Borrower Party, and, in the case of determinations by the Agent, also the other Lender Parties, in the
absence of manifest error. References in this Agreement to any "determination" by any Lender Party include good faith estimates by such Lender Party (in the case of quantitative determinations), and
good faith beliefs by such Lender Party (in the case of qualitative determinations). All references herein to "discretion" of any Lender Party (or terms of similar import) shall mean "absolute and
sole discretion." All consents and other actions of any Lender Party contemplated by this Agreement may be given, taken, withheld or not taken in such Lender Party's discretion (whether or not so
expressed), except as otherwise expressly provided herein. 

    1.2.3.  Accounting Terms and Determinations.  Unless otherwise specified herein,
all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared on a
consolidated basis in accordance with GAAP applied on a basis consistent (except for changes that the independent public accountants of the REIT deem necessary in order to allow them to render an
unqualified opinion to the REIT and for changes that are not deemed so necessary but are concurred in by such independent public accountants and the Agent) with the audited consolidated financial
statements of the REIT and the Consolidated Entities referred to in Section 5.6.1. Notwithstanding anything herein to the contrary, for purposes of determining the REIT's  pro rata share of any
income, expense, asset, liability or other item of or with respect to any Unconsolidated Joint Venture, as used in the defined
terms used in or by reference in Section 7.3., the percentage of the Capital Stock held by the REIT or any Consolidated Entity shall be the percentage required to be used under GAAP. 

    1.2.4.  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS (OTHER THAN THE RULES REGARDING CONFLICTS OF LAWS, EXCEPT THOSE CONTAINED IN CALIFORNIA CIVIL CODE SECTION 1646.5) OF THE STATE OF CALIFORNIA. 

21

 

    1.2.5.  Headings.  The Article and Section headings used in this Agreement are
for convenience of reference only and shall not affect the construction hereof. 

    1.2.6.  Severability.  If any provision of this Agreement shall be held to be
invalid, illegal or unenforceable under Applicable Law in any jurisdiction, such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability, which shall not
affect any other provisions hereof or the validity, legality or enforceability of such provision in any other jurisdiction. 

    1.2.7.  Independence of Covenants.  All covenants under this Agreement shall each
be given independent effect so that if a particular action or condition is not permitted by any such covenant, the fact that it would be permitted by another covenant, by an exception thereto, or be
otherwise within the limitations thereof, shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists. 

    1.2.8.  Other Definitions.  Terms otherwise defined in Preamble, the Recitals and
in any other provision of this Agreement or any of the other Loan Documents not defined or referenced in Section 1.1. have their respective defined meanings when used herein or therein. 

 
 

ARTICLE 2.
  
    AMOUNT AND TERMS OF THE CREDIT FACILITIES    
  

    Section 2.1.  Advances.  

    2.1.1.  Advances.  Upon the terms and subject to the conditions set forth in this
Agreement, (a) on the Closing Date, the Existing Credit Agreement is hereby superseded, amended and restated in its entirety, and (b) each Lender hereby severally agrees, at any time
from and after the Closing Date until the Business Day next preceding the Maturity Date, to make advances (each an "Advance," which term shall also
include amounts drawn under Letters of Credit pursuant to Section 2.2.4.1.) to the Borrower in an aggregate outstanding principal amount not to exceed at any time outstanding, when added to
other Commitment Usage of such Lender at such time, the Commitment of such Lender, provided that the Commitment Usage of all Lenders at any time, in the
aggregate, shall not exceed the aggregate Commitments of all Lenders; provided, further, that with respect to any Residual Advance, (i) the
aggregate amount of all outstanding Residual Advances shall not exceed the lesser of (A) $50,000,000 and (B) 25.0% of the aggregate Residual Value of all Wholly-Owned Retail Properties
and (ii) no principal amount of a Residual Advance shall remain outstanding more than 210 days after the earlier of (x) the Funding Date of such Residual Advance and
(y) the Funding Date of the earliest Residual Advance outstanding at the time such Residual Advance is made (the "Residual Advance Maturity
Date"). Advances may be voluntarily prepaid and, subject to the provisions of this Agreement
(including Section 2.13.), any amounts so prepaid may be re-borrowed, up to the amount available under this Section 2.1.1. at the time of such re-borrowing. 

    2.1.2.  Type of Advances and Minimum Amounts.  Advances made under this
Section 2.1. may be Base Rate Advances or Fixed Rate Advances, subject, however, to Section 2.4. Each Borrowing of Fixed Rate Advances to which the same Fixed Rate Period is applicable
shall be in a minimum amount of $2,000,000 and integral multiples of $1,000,000. 

    2.1.3.  Notice of Borrowing.  

    2.1.3.1.  When the Borrower desires to borrow pursuant to Section 2.1., it shall deliver to the
Agent, (i) in the case of an Advance other than a Residual Advance, a Notice of Borrowing substantially in the form of  Exhibit B-1A and a Borrowing Certificate substantially in the form of
 Exhibit B-2 (a "Borrowing Certificate") or (ii) in the case of a Residual
Advance, a Notice of Borrowing substantially in the form of Exhibit B-1B and a Borrowing Certificate, in each case, duly completed
and executed by a Responsible Officer (each Notice of Borrowing delivered pursuant to 

22

 

clause (i) and (ii) above, a "Notice of Borrowing"), no later than 10:00 a.m. (California time) (i) at least one Business
Day before (or, if the Agent Bank is the sole Lender hereunder at such time, on) the proposed Funding Date, in the case of a Base Rate Advance, or (ii) at least three Business Days (or, if the
Agent Bank is the sole Lender hereunder at such time, one Business Day), but not more than five Business Days, before the proposed Funding Date, in the case of a Fixed Rate Advance. 

    2.1.3.2.  In lieu of delivering a Notice of Borrowing for an Advance (other than with respect to a
Residual Advance), the Borrower, through a Responsible Officer, may give the Agent telephonic notice by the required time of the proposed borrowing for Advances of that type and all information
required by a Notice of Borrowing; provided, however, that such notice shall be confirmed in writing by delivery of a Notice of Borrowing by fax to the
Agent as soon as practicable one day prior to the proposed Funding Date. The Lender Parties shall incur no liability to the Borrower in acting upon any telephonic notice that the Agent believes to
have been given by a Person authorized to act on behalf of the Borrower or for otherwise acting in good faith under this Section 2.1. and in making any Advance in accordance with this Agreement
pursuant to any telephonic notice. 

    2.1.3.3.  Notwithstanding anything herein to the contrary, no Notice of Borrowing shall be required at
any time while the Agent Bank is the only Lender hereunder with respect to any Base Rate Advance while there shall be in effect, pursuant to subsequent mutual agreement between the Borrower and the
Agent Bank, a program (such as a credit sweep) whereby Base Rate Advances are made automatically to maintain a target balance in an account the Borrower maintains with the Agent Bank (a
"Credit Sweep Program"). The Agent Bank shall incur no liability to the Borrower making Advances pursuant to any Credit Sweep Program. 

    2.1.3.4.  The Agent shall promptly notify each Lender of the contents of any Notice of Borrowing (or
telephonic notice in lieu thereof) received by it and such Lender's pro rata portion of the Borrowing of Advances requested. Not later than
9:00 a.m. (California time) on the date specified in such notice as the Funding Date, each Lender, subject to the terms and conditions hereof, shall make its pro
rata portion of the Borrowing of Advances available, in immediately available funds, to the Agent at the Agent's Account. 

    2.1.4.  Funding of Advances.  Subject to and upon satisfaction of the applicable
conditions set forth in Article 4. as determined by the Agent, the Agent shall make the proceeds of the requested Advances available to the Borrower in Dollars in immediately available funds in
the Borrower Account. In addition, if the Borrower Account is maintained with a financial institution other than the Agent, all borrowings hereunder shall be subject to the terms and conditions of the
Funds Transfer Agreement. 

    2.1.5.  Responsible Officers With Respect to Advances.  

    2.1.5.1.  The Borrower shall notify the Agent of the names of its officers and employees authorized to
request and take other actions with respect to Advances on behalf of the Borrower (each a "Responsible Officer") and shall provide the Agent with a
specimen signature of each such officer or employee. The Agent shall be entitled to rely conclusively on a Responsible Officer's authority to request and take other actions (including any Notices of
Borrowing or telephonic notice in lieu thereof, notices pursuant to Section 2.4.2., or acceptance of telephonic quotes of Fixed Rates given by the Lender pursuant to Section 2.4.2.,)
with respect to Advances on behalf of the Borrower until the Agent receives written notice to the contrary. The Agent shall have no duty to verify the authenticity of the signature appearing on any
Notice of Borrowing or any other certificate or notice delivered pursuant to this Agreement. 

    2.1.5.2.  Any Notice of Borrowing (or telephone notice in lieu thereof) delivered pursuant to
Section 2.1.3. shall be irrevocable and the Borrower shall be bound to make a Borrowing in 

23

 

accordance therewith. Further, each Notice of Borrowing shall set forth that the Agent's Loan Number is 3959ZL and the Agent's Accounting Unit Number is 2924. 

    Section 2.2.  Letters of Credit.  

    2.2.1.  In General.  Upon the terms and subject to the conditions set forth in
this Agreement, at any time from and after the Closing Date until the day that is thirty (30) days prior to the Maturity Date, the Agent Bank shall issue for the account of the Borrower one or
more Letters of Credit, provided that (a) the aggregate Stated Amount of all outstanding Letters of Credit shall not exceed $20,000,000,
(b) the Stated Amount of the proposed Letter of Credit, when added to other Commitment Usage of all Lenders at such time, in the aggregate, shall not exceed the aggregate Commitments of all
Lenders, and (c) in no event shall Letters of Credit be issued for the benefit of any of the Lenders. Letters of Credit shall have expiry dates not later than 24 months from the date of
issuance and in any event not later than 10 Business Days prior to the Maturity Date. No Letter of Credit shall contain an automatic renewal or extension clause. The provisions of this
Section 2.2. and Section 4.2. shall apply to any supplement, amendment, extension, renewal or increase of a Letter of Credit as if it were a new Letter of Credit. 

    2.2.2.  Issuances of Letters of Credit.  When the Borrower desires the issuance
of a Letter of Credit, the Borrower shall deliver to the Agent Bank at least five (5) Business Days before the Funding Date, a Letter of Credit Agreement and such other documents and materials
as may be required by the Agent Bank, each in form and substance satisfactory to the Agent Bank. The Agent Bank shall, if it approves of the contents of the Letter of Credit Agreement and such other
documents and materials, and subject to the terms and conditions of this Agreement, issue the Letter of Credit on or before 5:00 p.m. (California time) on or before the day that is five
(5) Business Days following the receipt of all documents required under this Section 2.2.2. In the event of a conflict between the terms of any Letter of Credit Agreement and this
Agreement, the terms of this Agreement shall govern. Upon issuance of a Letter of Credit, the Agent shall promptly notify each Lender thereof and of such Lender's pro
rata share of such Letter of Credit. 

    2.2.3.  Participations in Letters of Credit.  Immediately upon the issuance of a
Letter of Credit (other than the Existing Letters of Credit), each Lender (other than the Agent Bank) shall be deemed to have irrevocably purchased from the Agent Bank a participation in such Letter
of Credit and any drawing thereunder in an amount equal to such Lender's pro rata share of the Stated Amount of such Letter of Credit. An amount equal
to the Letter of Credit Liability for each Letter of Credit shall be reserved under the Commitments and shall not be available for borrowing for any purpose other than reimbursement of amounts drawn
under the Letters of Credit pursuant to the terms of this Section 2.2. 

    2.2.4.  Drawings, Etc.  Notwithstanding any provisions to the contrary in any
Letter of Credit Agreement: 

    2.2.4.1.  In case of a drawing under any Letter of Credit, the amounts so drawn shall, from the date of
payment thereof by the Agent Bank, be deemed to be an Advance by the Agent Bank, as a Lender, and, to the extent reimbursed pursuant to Section 2.2.4.2., Advances by the other Lenders, for all
purposes hereunder. 

    2.2.4.2.  Promptly after payment by the Agent Bank of any amount drawn under any Letter of Credit, the
Agent shall notify each Lender of the amount of such drawing and of such Lender's respective participation therein. Each Lender shall make available to the Agent Bank an amount equal to its respective
participation in immediately available funds, at the office of such Agent Bank specified in such notice, not later than the Business Day after the date on which the Agent gives such notice. Each
Lender's obligations under this Section 2.2.4.2. (a) shall not be subject to any set-off, counterclaim or defense to payment that the Lender may have against any Borrower
Party or against the Agent Bank and (b) shall be absolute, unconditional and irrevocable, and as a 

24

 
primary obligor, not as a surety, notwithstanding any circumstance or event whatsoever, including (i) the occurrence of an Event of Default or Default, (ii) the failure of any other
Lender to fund its participation as required hereby, (iii) the financial condition of any Borrower Party or Lender Party or any set-off, counterclaim or defense to payment that the
Borrower may have or (iv) the termination or cancellation of the Commitment of such Lender. If any Lender fails to make available to the Agent Bank the amount of such Lender's participation in
the Letter of Credit as provided in this Section 2.2.4.2., (A) such amount shall bear interest at the Federal Funds Rate (or, commencing with the third day, the Base Rate) from the day
on which the Agent's notice referred to above is given until paid and (B) upon demand by the Agent Bank, the Borrower shall make payment to the Agent Bank of such amount, together with interest
accrued thereon. 

    Section 2.3.  Use of Proceeds.  The proceeds of the Advances shall be used by the
Borrower only for pre-development and development costs, acquisition costs, capital improvements, working capital, Investments, repayment of Debt, scheduled amortization payments of Debt
and general corporate purposes, in each case to the extent otherwise permissible hereunder. No part of the proceeds of the Advances or Letters of Credit shall be used directly or indirectly
(a) to purchase Capital Stock of any Lender Party or any of their respective Affiliates, or (b) for the purpose, whether immediate, incidental or ultimate, of purchasing or carrying any
Margin Stock or maintaining or extending credit to others for such purpose or for any other purpose that otherwise violates the Margin Regulations. 

    Section 2.4.  Interest; Conversion/Continuation.  

    2.4.1.  Effective Rate.  

    2.4.1.1. The unpaid principal amount of all Advances (or portions thereof) shall bear interest at the Effective Rate.
The "Effective Rate" upon which interest shall be calculated for the Advances shall be one or more of the following: 

    2.4.1.1.1.  Provided no Default or Event of Default then exists: 

     (i) for
those portions of the principal balance of Advances that are not part of any Fixed Rate Portions, the Effective Rate shall be the Base Rate; and 

    (ii) for
those portions of the principal balance of Advances that are part of Fixed Rate Portions, the Effective Rate for the Fixed Rate Period thereof shall be the
Fixed Rate selected by the Borrower and set in accordance with the provisions hereof. 

    2.4.1.2.  During such time as a Default or Event of Default exists (whether or not the Obligations have
then become due and payable by acceleration) and from and after the Maturity Date, the interest rate applicable to the then outstanding principal balance of all Advances shall be the rate set forth in
Section 2.4.1.1.1. or, at the option of the Lenders holding 662/3% of the outstanding Advances, the Post-Default Rate. 

    2.4.2.  Selection of Fixed Rate for Advances.  Provided no Default or Event of
Default then exists, the Borrower, at its option and upon satisfaction of the conditions set forth herein, may request a Fixed Rate as the Effective Rate for calculating interest on any Advance being
requested pursuant to Section 2.1. or the portion of the unpaid principal balance of outstanding Advances, in each case for the period selected in accordance with and subject to the following
procedures and conditions: 

    2.4.2.1.  In the case of a request of a Fixed Rate with respect to outstanding Advances, at least three
Business Days (or, if the Agent Bank is the sole Lender hereunder at such time, one Business Day), but not more than five Business Days, before requesting a Fixed Rate, the Borrower shall give the
Agent advance telephonic notice that it will request a rate quotation for a portion of the principal balance of the Advances and for a period of time that conforms to a Fixed Rate Portion and Fixed
Rate Period and the other provisions hereof. The Agent will promptly notify the Lenders of such request. In the case of a new Advance, the Notice of Borrowing shall 

25

 

set forth the requested period of time, which shall conform to a Fixed Rate Portion and Fixed Rate Period and the other provisions hereof. 

    2.4.2.2.  In the case of a request of a Fixed Rate with respect to outstanding Advances, at
approximately 9:00 a.m. (California time) on the Business Day next following such advance notice, the Borrower shall telephonically request the Agent to quote telephonically an Applicable LIBO
Rate as a Fixed Rate for the Fixed Rate Portion and Fixed Rate Period selected by the Borrower. If upon the expiration of any Fixed Rate Period with respect to any Fixed Rate Portion, the Borrower
fails to select, or the Agent is unable to provide, a Fixed Rate with respect to such Fixed Rate Portion or any part thereof, such Fixed Rate Portion or part shall automatically convert into a Base
Rate Portion, and the Agent shall promptly notify the Lenders of such fact. The Borrower shall not be released from its obligation to pay interest at the Effective Rate and the Lender Parties shall
incur no liability to the Borrower if the
Borrower is unable to obtain, or the Agent is unable to provide, a telephonic quote on any Business Day. 

    2.4.2.3.  In the case of a new Advance that is a Fixed Rate Advance, at approximately 9:00 a.m.
(California time) on the Business Day before the Funding Date (or, if the Agent Bank is the sole Lender hereunder at such time, on the Funding Date) requested in the Notice of Borrowing, the Borrower
shall telephonically request the Agent to quote telephonically an Applicable LIBO Rate as a Fixed Rate for the Fixed Rate Portion and Fixed Rate Period selected by the Borrower in the related Notice
of Borrowing. The Lender Parties shall incur no liability to the Borrower if the Borrower is unable to obtain, or the Agent is unable to provide, a telephonic quote on any Business Day. In any such
case, the Borrower shall be deemed to have withdrawn its Notice of Borrowing without any further action being required by the Agent or the Borrower. 

    2.4.2.4.  If the Borrower accepts the Agent's telephonic quote of the Fixed Rate requested with respect
to any Advance by approximately 9:05 a.m. (California time) on the day of the Agent's quote, such Fixed Rate shall be the Effective Rate for the Fixed Rate Portion and Fixed Rate Period
selected. The date that is two Business Days after the day on which (or, if the Agent Bank is then the sole Lender hereunder, the day on which) the quoted Fixed Rate is telephonically accepted by the
Borrower shall be the "Fixed Rate Commencement Date" for that Fixed Rate Period. 

    2.4.2.5.  The Agent is authorized to rely upon the telephonic request by any Responsible Officer and
acceptance of the Agent's telephonic quote by any Person who purports to be a Responsible Officer. The Agent shall incur no liability to the Borrower in acting upon any telephonic notice or acceptance
of any telephonic quote that the Agent believes to have been given or made by a Person authorized to act on behalf of the Borrower or for otherwise acting in good faith under this
Section 2.4.2. 

    2.4.2.6.  The Borrower's acceptance of a Fixed Rate shall be confirmed by a written Fixed Rate Notice,
which the Agent shall promptly deliver to the Borrower and the Lenders not less than two days prior to the Fixed Rate Commencement Date. The Agent's failure to deliver the Fixed Rate Notice shall not
release the Lenders from funding any Advance requested pursuant to a Notice of Borrowing, or the Borrower from its obligation to pay interest at the Effective Rate pursuant to the terms hereof. 

    2.4.2.7.  The Borrower shall not have the right to request an Advance in the form of a Fixed Rate
Advance or request or accept a quote of a Fixed Rate applicable to Fixed Rate Advances if more than five Fixed Rate Portions are then subject to a Fixed Rate or if more than eight different Fixed Rate
Periods are then applicable to Fixed Rate Advances. 

    2.4.2.8.  All Advances made or deemed made pursuant to Section 2.2.4.1. shall initially be Base
Rate Advances. 

26

 

    2.4.3.  Payment of Interest.  Interest accrued on the Base Rate Portion and each
Fixed Rate Advance shall be due and payable in arrears (a) on the first Business Day of each month, commencing with the first month following the Closing Date and (b) on the Maturity
Date. 

    2.4.4.  Computations.  Interest on the Advances and other amounts payable
hereunder or the other Loan Documents shall be computed on the basis of a 360-day year and the actual number of days elapsed. Any change in the interest rate on any Advance or other amount
resulting from a change in the rate applicable thereto (or any component thereof) pursuant to the terms hereof shall become effective as of the opening of business on the Business Day on which such
change in the applicable rate (or component) shall become effective. Each determination of an interest rate by the Agent pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrower for all purposes, in the absence of manifest error. 

    2.4.5.  Maximum Lawful Rate of Interest.  The rate of interest payable on any
Advances or other amount shall in no event exceed the maximum rate permissible under Applicable Law. If the rate of interest payable on any Advances or other amount is ever reduced as a result of this
Section and at any time thereafter the maximum rate permitted by Applicable Law shall exceed the rate of interest provided for in this Agreement, then the rate provided for in this Agreement shall be
increased to the maximum rate provided by Applicable Law for such period as is required so that the total amount of interest received by the Lenders is that which would have been received by the
Lenders but for the operation of the first sentence of this Section. 

    Section 2.5.  Note, Etc.  

    2.5.1.  Advances Evidenced by Note.  The Advances made by each Lender shall be
evidenced by its own single Note. Each Note shall be dated the Closing Date and stated to mature in accordance with the provisions of this Agreement applicable to the relevant Advances. 

    2.5.2.  Notation of Amounts and Maturities, Etc.  Each Lender is hereby
irrevocably authorized to record on the schedule attached to its Note (or a continuation thereof) the information contemplated by such schedule. The failure to record, or any error in recording, any
such information shall not, however,
affect the obligations of the Borrower hereunder or under any Note to repay the principal amount of the Advances evidenced thereby, together with all interest accrued thereon. All such notations shall
constitute conclusive evidence of the accuracy of the information so recorded, in the absence of manifest error. 

    Section 2.6.  Fees.  

    2.6.1.  On the Closing Date and from time to time thereafter as specified in the Fee Letter, the
Borrower shall pay to the Agent the Fees specified in the Fee Letter. All Fees shall be fully earned when payable hereunder and under the Fee Letter and shall be non-refundable. 

    2.6.2.  The Borrower shall pay to the Agent, for the account of the Lenders, a standby letter of credit
fee (the "Letter of Credit Fee") for each Letter of Credit issued (which Letter of Credit Fee shall be remitted to the Lenders net of the Agent's usual
and customary operational charges related to the issuance, amendment or negotiation of any Letters of Credit) equal to one and one-half percent (1.50%) per annum ($500 minimum per annum)
of the Stated Amount of each Letter of Credit from the date of issuance of such Letter of Credit until its expiry. The Letter of Credit Fee shall be payable in advance upon the issuance of any Letter
of Credit. 

    2.6.3.  On each of April 1, July 1, October 1 and January 1 prior to the
Maturity Date and on the Maturity Date, the Borrower shall pay in arrears to the Agent for the pro rata benefit of the Lenders a fee (the  "Facility Fee")
equal to (i) 0.15% per annum of the Commitments of all Lenders if the ratio of Total Liabilities to Gross Asset Value (expressed
as a percentage) at the end of the Fiscal Quarter with respect to which the Facility Fee is being determined is less than 50% and (ii) 0.20% per annum of the Commitments of all Lenders if the
ratio of Total Liabilities to Gross Asset Value (expressed as a 

27

 

percentage) at the end of the Fiscal Quarter with respect to which the Facility Fee is being determined is greater than or equal to 50.0% but less than 55.0%, (iii) 0.25% per annum of the
Commitments of all Lenders if the ratio of Total Liabilities to Gross Asset Value (expressed as a percentage) at the end of the Fiscal Quarter with respect to which the Facility Fee is being
determined is greater than or equal to 55.0% but less than 60.0% or (iv) 0.30% if none of clauses (i), (ii) and (iii) applies (including if the Compliance Certificate showing that
any of clauses (i), (ii) and (iii), as the case may be, is satisfied is not delivered when required hereby), provided, however, that respect to
the Facility Fee to be paid on the Maturity Date, (a) such Facility Fee shall be calculated for the period commencing on the last day of the Fiscal Quarter most recently ended and ending on the
Maturity Date (the "Stub Period") and (b) shall be in an amount equal to the product of (x) a fraction, the numerator of which shall be the number of days of the Stub Period and the
denominator of which shall 90 and (y) the product of (1) the percentage (expressed as a decimal) used to calculate the Facility Fee for the most recently ended
Fiscal Quarter multiplied by (2) the Commitments of all Lenders immediately prior to the Maturity Date. 

    2.6.4.  If the extension option is exercised by the Borrower in accordance with Section 2.7.2.,
then the Borrower shall pay to the Agent for the pro rata benefit of the Lenders, a fee (the "Extension
Fee") equal to 0.25% of the aggregate amount of the Commitments. 

    Section 2.7.  Termination, Reduction and Extension of Commitment.  

    2.7.1.  Each Lender's Commitment shall terminate without further action on the part of such Lender on
the Maturity Date unless the Maturity Date is extended pursuant to Section 2.7.2. In addition, the Commitment shall terminate in accordance with Section 8.2. 

    2.7.2.  The Borrower may, by written notice to the Agent and the Lenders not less than 60 days
and not more than 120 days before the Maturity Date initially in effect, request that the Maturity Date be extended to the date that is one year following the initial Maturity Date. If the
Borrower shall so request such an extension, the Maturity Date shall be automatically extended to the date that is one year following the initial Maturity Date;  provided that no such extension shall be
effective unless (a) no Default or Event of Default shall exist either on the date of the notice
requesting such extension or on the Maturity Date initially in effect, (b) each of the representations and warranties of the Borrower Parties set forth in the Loan Documents shall be true and
complete on and as of each such date with the same force and effect as if made on and as of each such date (or, if any such representation or warranty is expressly stated to have been made as of a
specific date, as of such specific date), (c) each of the Lenders and the Agent shall have approved in writing the terms of any refinancing, repayment or other arrangement made by the REIT with
respect to the Debt outstanding with respect to Permitted Subordinated Debentures and (d) the Borrower shall have paid the Extension Fee. 

    2.7.3.  The Borrower shall have the right, at any time or from time to time after the Closing Date, to
terminate in whole or permanently reduce in part, without premium or penalty, the unused Commitments to an amount not less than the Commitment Usage of all Lenders outstanding at such time, by giving
the Agent not less than three Business Days' prior written notice of such termination or reduction and the amount of any partial reduction. Any such termination or partial reduction shall be effective
on the date specified in the Borrower's notice, shall be in a minimum amount of $1,000,000 and an integral multiple thereof and shall be applied to the reduction, on a proportionate basis, of each of
the Commitments and the maximum Stated Amount of all Letters of Credit as set forth in Section 2.2.1. 

    Section 2.8.  Repayments and Prepayments.  

    2.8.1.  Repayment.  The unpaid principal amount of all Advances shall be paid in
full on the Maturity Date. Notwithstanding the foregoing, the unpaid principal amount of a Residual Advance shall be paid in full on the earlier of the (i) Maturity Date and (ii) the
Residual Advance Maturity Date. 

28

 

    2.8.2.  Mandatory Prepayment for Excess Advances.  If at any time the outstanding
principal amount of (a) all Advances plus the Letter of Credit Liability exceeds the aggregate amount of the Commitments, or (b) the
aggregate outstanding principal amount of all Residual Advances shall exceed the lesser of (i) $50,000,000 and (ii) 25.0% of the aggregate Residual Value of all Wholly-Owned Retail
Properties, the Borrower shall, on the Business Day on which the Borrower learns or is notified of the excess, make mandatory prepayments of Advances so that, after such repayment, such excess is
eliminated. 

    2.8.3.  Reinstatement.  To the extent any Lender Party receives payment of any
amount under the Loan Documents, whether by way of payment by the Borrower, set-off or otherwise, which payment is subsequently invalidated, declared to be fraudulent or preferential, set
aside or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, other law or equitable cause, in whole or in part, then, to the extent of such payment received, the
Obligations or part thereof intended to be satisfied thereby shall be revived and continue in full force and effect as if such payment had not been received by such Lender Party. 

    Section 2.9.  Manner of Payment.  

    Except
as otherwise expressly provided, the Borrower shall make each payment hereunder or under the other Loan Documents to the Agent in Dollars and in immediately available funds,
without any deduction whatsoever, including any deduction for any set-off, recoupment, counterclaim or Taxes, at the Agent's Office, for the account of the Applicable Lending Offices of
the Lenders entitled to such payment, not later than 11:00 a.m. (California time) on the due date thereof. Any payments received after 11:00 a.m. (California time) on any Business Day
shall be deemed received on the next succeeding Business Day. Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall instead be made on the next
succeeding Business Day. Not later than 5:00 p.m. (California time) on the day such payment is credited to the Advances outstanding hereunder, the Agent shall deliver to each Lender, for the
account of the Lender's Applicable Lending Office, in Dollars and in immediately available funds, such Lender's share of the payment so made, determined pursuant to Section 2.10. Delivery shall
be made in accordance with the written instructions satisfactory to the Agent from time to time given to the Agent by each Lender. 

    Section 2.10.  Pro Rata Treatment.  Except to the extent otherwise expressly
provided herein, 

    2.10.1.  Advances shall be requested from, and all Letter of Credit Liability, the Interest Reserve and
all Fees payable pursuant to Sections 2.6.2, 2.6.3 and 2.6.4 shall be allocated to, the Lenders, pro rata according to their respective Commitments. 

    2.10.2.  Each reduction of the Commitments of the Lenders shall be applied to the respective Commitments
of the Lenders pro rata according to their respective Commitments before such reduction. 

    2.10.3.  Subject to Section 2.10.4, each payment or prepayment by the Borrower of principal of
the Advances shall be made for the account of the Lenders pro rata according to the respective unpaid principal amount of the Advances owed to the
Lenders, and each payment by the Borrower of interest on the Advances shall be made for the account of the Lenders pro rata according to the respective
accrued but unpaid interest on the Advances owed to such Lenders. 

    2.10.4.  If, pursuant to Section 8.2.2, the Agent shall have declared the unpaid principal amount
of all Advances together with any and all accrued interest thereon to be due and payable, all amounts received by the Agent or any of the Lenders (whether received by voluntary payment, by
counterclaim or cross action or by the enforcement of any or all of the Obligations) which are applicable to the payment of the Obligations, equitable adjustment will be made so that, in effect, all
such amounts will be shared among the Lenders ratably in accordance with their proportionate share of the amount to be 

29

 

so applied based on, in each case, the ratio of the aggregate principal amount of all outstanding Advances owed to each Lender to the aggregate principal amount of all outstanding Advances. 

    Section 2.11.  Mandatory Suspension and Conversion of Fixed Rate Advances.  If
any of the transactions necessary for the calculation of interest at any Fixed Rate requested or selected by the Borrower should be or become prohibited or unavailable to any Lender, or, if in the
Agent's good faith judgment, it is not possible or practical for the Agent to set a Fixed Rate for a Fixed Rate Portion or any Fixed Rate Period as requested or selected by the Borrower or to continue
to have outstanding any Fixed Rate Portion, the Effective Rate for such Fixed Rate Portion shall remain at or automatically revert to the Base Rate, and such Fixed Rate Advance then being requested by
the Borrower shall be
made as a Base Rate Advance, in each case, without any action on the part of the Borrower or the Lender Parties. 

    Section 2.12.  Increased Regulatory Costs.  

    2.12.1.  Taxes, Regulatory Costs and Percentages.  Upon any Lender's demand, the
Borrower shall pay to the Agent, in addition to all other amounts that may be, or become, due and payable under this Agreement or the other Loan Documents, any and all Taxes and Regulatory Costs, to
the extent they are not internalized by calculation of a Fixed Rate. Further, at each Lender's option, the Fixed Rate shall be automatically adjusted by adjusting the Reserve Percentage, as determined
by such Lender in its prudent banking judgment, from the date of imposition (or any subsequent date selected by such Lender) of any such Regulatory Costs. The relevant Lender shall give the Borrower
notice of any Taxes and Regulatory Costs as soon as practicable after their occurrence, but the Borrower shall be liable for any Taxes and Regulatory Costs regardless of whether or when notice is so
given. In addition, if, on or after the date hereof, any Regulatory Change (a) shall subject any Lender Party (or its Applicable Lending Office) to any Taxes with respect to Letters of Credit
or its obligations under or with respect thereto, or changes the basis of taxation of payments to any Lender Party of reimbursement obligations or related Fees or (b) shall impose, modify or
deem applicable any reserve, special deposit, compulsory loan, insurance or similar requirement against, or any fees or charges in respect of, assets held by, deposits with or other liabilities for
the account of, Letters of Credit or shall impose on any Lender Party (or its Applicable Lending Office) any other condition affecting any Letter of Credit or any obligation in respect of Letter of
Credit participations, and the effect of the foregoing is (i) to increase the cost to such Lender Party (or its Applicable Lending Office) of making, issuing, renewing or maintaining any Letter
of Credit or in respect of Letter of Credit participations or (ii) to reduce the amount of any sum received or receivable by such Lender Party (or its Applicable Lending Office) hereunder or
under any other Loan Document with respect thereto, then the Borrower shall from time to time pay to such Lender Party, within 10 days after request by such Lender Party, such additional
amounts as may be specified by such Lender Party as sufficient to compensate such Lender Party for such increased cost or reduction. 

    2.12.2.  Capital Costs.  If a Regulatory Change after the date hereof regarding
capital adequacy (including the adoption or becoming effective of any treaty, law, rule, regulation or guideline adopted pursuant to or arising out of the July 1988 report of the Basle
Committee on Banking Regulations and Supervisory Practices entitled "International Convergence of Capital Measurement and Capital Standards") has or would have the effect of reducing the rate of
return on the capital of or maintained by any Lender Party or any company controlling such Lender Party as a consequence of such Lender Party's Advances, Letters of Credit, participations therein or
obligations hereunder and other commitments of this type to a level below that which such Lender Party or such company could have achieved but for such Regulatory Change (taking into account such
Lender Party's or company's policies with respect to capital adequacy), then, subject to Section 2.14., the Borrower shall from time to time pay to such Lender Party, within 10 days
after request by such Lender Party, such additional amounts as may be specified by such Lender Party as sufficient to compensate such Lender Party or company for such reduction in return, to the
extent such Lender Party or such company determines such reduction to be
attributable to the existence, issuance or maintenance of such Advances, Letters of Credit, participations therein or obligations for the account of the Borrower. 

30

  

    Section 2.13.  Fixed Rate Price Adjustment.  The Borrower acknowledges that
prepayment or acceleration of a Fixed Rate Advance (including pursuant to Sections 2.8.2., 2.11., 2.12., 2.13. and 8.2.) during a Fixed Rate Period will result in the Lender Party holding such Fixed
Rate Advance incurring additional costs, expenses and/or liabilities and that it is extremely difficult and impractical to ascertain the extent of such costs, expenses and/or liabilities. Therefore,
on the date a Fixed Rate Portion is prepaid or the date all Obligations become due and payable, by acceleration or otherwise (a "Price Adjustment
Date"), the Borrower will pay each Lender Party (in addition to all other sums then owing to such Lender Party) an amount (the "Fixed Rate Price
Adjustment") equal to (i) the then present value, calculated by using as a discount rate, the LIBO Rate quoted on the Price Adjustment Date, of the amount of interest
that would have accrued on the Fixed Rate Portion then outstanding to such Lender Party for the remainder of the Fixed Rate Period at the Fixed Rate, set on the related Fixed Rate Commencement Date  less
(ii) the amount of interest that would accrue on the same Fixed Rate Portion for the same period if the Fixed Rate were set on the Price
Adjustment Date as the Applicable LIBO Rate in effect on the Price Adjustment Date. 

By
initialing this provision where indicated below, the Borrower confirms that each Lender Party's agreement to make the Advances evidenced by this Agreement at the interest rates and on the other
terms set forth herein and in the other Loan Documents constitutes adequate and valuable consideration, given individual weight by the Borrower, for this Agreement. 

BORROWER'S
INITIALS:           

    Section 2.14.  Purchase, Sale and Matching of Funds.  The Borrower understands,
agrees and acknowledges the following: (a) no Lender Party has any obligation to purchase, sell and/or match funds in connection with the use of a LIBO Rate as a basis for calculating a Fixed
Rate or Fixed Rate Price Adjustment; (b) a LIBO Rate is used merely as a reference in determining a Fixed Rate and Fixed Rate Price Adjustment; and (c) the Borrower has accepted a LIBO
Rate as a reasonable and fair basis for calculating a Fixed Rate and a Fixed Rate Price Adjustment. The Borrower further agrees to pay the Fixed Rate Price Adjustment, Taxes and Regulatory Costs, if
any, whether or not any Lender Party elects to purchase, sell and/or match funds. 

 
 

ARTICLE 3.    
  

 
  GUARANTY    
  

    Section 3.1.  Guaranty.  

    3.1.1.  The Guarantors unconditionally jointly and severally guaranty and promise to pay to the order of
the Agent, for the benefit of the Lender Parties, on demand, in lawful money of the United States of America, any and all Obligations from time to time owing to the Lender Parties (together with the
related provisions of this Article 3, this "Guaranty"). All Obligations shall be conclusively presumed to have been created in reliance on this
Guaranty. 

    3.1.2.  In addition, the Guarantors jointly and severally promise to pay to the Lender Parties, any and
all costs and expenses, including attorneys' fees and expenses, that the Lender Parties may incur in connection with (a) the collection of all sums guarantied hereunder or (b) the
exercise or enforcement of any of the rights, powers or remedies of the Lender Parties under this Guaranty or Applicable Law. All such amounts and all other amounts payable hereunder shall be payable
on demand, together with interest at a rate equal to the lesser of (i) the Post Default Rate, or (ii) the maximum rate allowed by Applicable Law, from and including the due date to and
excluding the date of payment. 

    3.1.3.  All payments under this Guaranty shall be made free and clear of any and all deductions,
withholdings and setoffs, including withholdings on account of Taxes. 

31

 

    Section 3.2.  Continuing and Irrevocable Guaranty.  This Guaranty is a continuing
guaranty of the Obligations and may not be revoked and shall not otherwise terminate unless and until the Obligations have been indefeasibly paid and performed in full. If, notwithstanding the
foregoing, any Guarantor shall have any right under Applicable Law to terminate this Guaranty prior to indefeasible payment in full of the Obligations, no such termination shall be effective until
noon the next Business Day after the Lender Parties shall receive written notice thereof, signed by such Guarantor. Any such termination shall not affect this Guaranty in relation to (a) any
Obligation that was incurred or arose prior to the effective time of such notice, (b) any Obligation incurred or arising after such effective time where such Obligation is incurred or arises
either pursuant to commitments existing at such effective time or incurred for the purpose of protecting or enforcing rights against the Borrower, any Guarantor or other guarantor of or other Person
directly or indirectly liable on the Obligations or any portion thereof (an
"Other Guarantor"; each of the Borrower, the Guarantors and the Other Guarantors is referred to herein as an
"Obligor") or any security ("Collateral") given for the Obligations or any other guaranties of the
Obligations or any portion thereof (an "Other Guaranty") (c) any renewals, extensions, readvances, modifications or rearrangements of any of the
foregoing or (d) the liability of any other Guarantor hereunder. 

    Section 3.3.  Nature of Guaranty.  The liability of each Guarantor under this
Guaranty is independent of and not in consideration of or contingent upon the liability of the Borrower or any other Obligor, and a separate action or actions may be brought and prosecuted against any
Guarantor, whether or not any action is brought or prosecuted against the Borrower or any other Obligor or whether the Borrower or any other Obligor is joined in any such action or actions. This
Guaranty shall be construed as a continuing, absolute and unconditional guaranty of payment (and not merely of collection) without regard to: 

    3.3.1.  the legality, validity or enforceability of this Agreement (including this Guaranty), the Note
or any other Loan Document, any of the Obligations, any Lien or Collateral or any Other Guaranty; 

    3.3.2.  any defense (other than payment), set-off or counterclaim that may at any time be
available to the Borrower or any other Obligor against, and any right of setoff at any time held by, any Lender Party; or 

    3.3.3.  any other circumstance whatsoever (with or without notice to or knowledge of each Guarantor or
any other Obligor), whether or not similar to any of the foregoing, that constitutes, or might be construed to constitute, an equitable or legal discharge of the Borrower or any other Obligor, in
bankruptcy or in any other instance. 

Any
payment by any Obligor or other circumstance that operates to toll any statute of limitations applicable to such Obligor shall also operate to toll the statute of limitations applicable to each
Guarantor. When making any demand hereunder (including by commencement or continuance of any legal proceeding), any Lender Party may, but shall be under no obligation to, make a similar demand on all
or any of the other Obligors, and any failure by any Lender Party to make any such demand shall not relieve any Guarantor of its obligations hereunder. 

    Section 3.4.  Authorization.  Each Guarantor authorizes each Lender Party,
without notice to or further assent by each Guarantor, and without affecting each Guarantor's liability hereunder (regardless of whether any subrogation or similar right that each Guarantor may have
or any other right or remedy of each Guarantor is extinguished or impaired), from time to time to: 

    3.4.1.  permit the Borrower to increase or create Obligations, or terminate, release, compromise,
subordinate, extend, accelerate or otherwise change the amount or time, manner or place of payment of, or rescind any demand for payment or acceleration of, the Obligations or any part thereof, or
otherwise amend the terms and conditions of this Agreement, any other Loan Document or any provision thereof; 

32

 

    3.4.2.  take and hold any Collateral from the Borrower or any other Person for the Obligations, perfect
or refrain from perfecting a Lien on such Collateral, and exchange, enforce, subordinate, release (whether intentionally or unintentionally), or take or fail to take any other action in respect of,
any such Collateral or Lien or any part thereof; 

    3.4.3.  exercise in such manner and order as it elects in its sole discretion, fail to exercise, waive,
suspend, terminate or suffer expiration of, any of the remedies or rights of any Lender Party against the Borrower or any other Obligor in respect of any Obligations or any Collateral; 

    3.4.4.  release, add or settle with any Obligor in respect of this Guaranty, any Other Guaranty of the
Obligations; 

    3.4.5.  accept partial payments on the Obligations and apply any and all payments or recoveries from any
Obligor or Collateral to such of the Obligations as any Lender Party may elect in its sole discretion, whether or not such Obligations are secured or guaranteed; 

    3.4.6.  refund at any time, at any Lender Party's sole discretion, any payments or recoveries received
by such Lender Party in respect of any Obligations or Collateral; and 

    3.4.7.  otherwise deal with the Borrower, any other Obligor and any Collateral as any Lender Party may
elect in its sole discretion. 

    Section 3.5.  Certain Waivers.  Each Guarantor hereby waives: 

    3.5.1.  the right to require any Lender Party to proceed against the Borrower or any other Obligor, to
proceed against or exhaust any Collateral or to pursue any other remedy in such Lender Party's power whatsoever and the right to have the property of the Borrower or any other Obligor first applied to
the discharge of the Obligations; 

    3.5.2.  all rights and benefits under Section 2809 of the California Civil Code and any other
Applicable Law purporting to reduce a guarantor's obligations in proportion to the obligation of the principal or providing that the obligation of a surety or guarantor must neither be larger nor in
other respects more burdensome than that of the principal; 

    3.5.3.  the benefit of any statute of limitations affecting the Obligations or Guarantor's liability
hereunder and of Section 359.5 of the California Code of Civil Procedure; 

    3.5.4.  any requirement of marshaling or any other principle of election of remedies and all rights and
defenses arising out of an election of remedies by any Lender Party, even though that election of remedies, such as nonjudicial foreclosure with respect to the security for a guaranteed obligation,
has destroyed such Guarantor's rights of subrogation, and reimbursement against the Borrower by the operation of Section 580d of the California Code of Civil Procedure or otherwise; 

    3.5.5.  any right to assert against any Lender Party any defense (legal or equitable),
set-off, counterclaim and other right that such Guarantor may now or any time hereafter have against the Borrower or any other Obligor; 

    3.5.6.  presentment, demand for payment or performance (including diligence in making demands
hereunder), notice of dishonor or nonperformance, protest, acceptance and notice of acceptance of this Guaranty, and all other notices of any kind; 

    3.5.7.  all defenses that at any time may be available to such Guarantor by virtue of any valuation,
stay, moratorium or other law now or hereafter in effect; 

    3.5.8.  any rights, defenses and other benefits such Guarantor may have by reason of any failure of any
Lender Party to comply with Applicable Law in connection with the disposition of Collateral; 

33

 

    3.5.9.  any rights or defenses the Guarantor may have because the Obligations are secured by real
property or an estate for years, including any rights or defenses that are based upon, directly or indirectly, the application of Section 580a, 580b, 580d, or 726 of the California Code of
Civil Procedure to the Obligations; and 

    3.5.10.  without limiting the generality of the foregoing or any other provision hereof, EACH GUARANTOR
HEREBY WAIVES ALL RIGHTS AND DEFENSES THAT ARE OR MAY BECOME AVAILABLE TO THE GUARANTOR BY REASON OF SECTIONS 2787 TO 2855, INCLUSIVE, AND SECTION 3433 OF THE CALIFORNIA CIVIL CODE. 

    Section 3.6.  Subrogation; Certain Agreements.  

    3.6.1.  EACH GUARANTOR WAIVES ANY AND ALL RIGHTS OF SUBROGATION, INDEMNITY, CONTRIBUTION OR REIMBURSEMENT, AND ANY AND ALL
BENEFITS OF AND RIGHTS TO ENFORCE ANY POWER, RIGHT OR REMEDY THAT ANY LENDER PARTY MAY NOW OR HEREAFTER HAVE IN RESPECT OF THE OBLIGATIONS AGAINST THE BORROWER OR ANY OTHER OBLIGOR, ANY AND ALL
BENEFITS OF AND RIGHTS TO PARTICIPATE IN ANY COLLATERAL, WHETHER REAL OR PERSONAL PROPERTY, NOW OR HEREAFTER HELD BY ANY LENDER PARTY, AND ANY AND ALL OTHER RIGHTS AND CLAIMS (AS DEFINED IN THE
BANKRUPTCY CODE) THE GUARANTOR MAY HAVE AGAINST THE BORROWER OR ANY OTHER OBLIGOR, UNDER APPLICABLE LAW OR OTHERWISE, AT LAW OR IN EQUITY, BY REASON OF ANY PAYMENT HEREUNDER, UNLESS AND UNTIL THE
OBLIGATIONS SHALL HAVE BEEN PAID IN FULL. Without limitation, each Guarantor shall exercise no voting rights, shall file no claim, and shall not participate or appear in any
bankruptcy or insolvency case involving the Borrower with respect to the Obligations unless and until all the Obligations shall have been paid in full. If, notwithstanding the foregoing, any amount
shall be paid to any Guarantor on account of any such rights at any time, such amount shall be held in trust for the benefit of the Lender Parties and shall forthwith be paid to the Lender Parties to
be credited and applied in accordance with the terms of this Agreement and the other Loan Documents upon the Obligations, whether matured, unmatured, absolute or contingent, in the discretion of the
Agent. 

    3.6.2.  Each Guarantor assumes the responsibility for being and keeping itself informed of the financial
condition of the Borrower and each other Obligor and of all other circumstances bearing upon the risk of nonpayment of the Obligations that diligent inquiry would reveal, and agrees that the Lender
Parties shall have no duty to advise any Guarantor of information regarding such condition or any such circumstances. 

    Section 3.7.  Bankruptcy No Discharge.  

    3.7.1.  Without limiting Section 3.3 this Guaranty shall not be discharged or otherwise affected
by any bankruptcy, reorganization or similar proceeding commenced by or against the Borrower, any Guarantor or any other Obligor, including (i) any discharge of, or bar or stay against
collecting, all or any part of the Obligations in or as a result of any such proceeding, whether or not assented to by any Lender Party, (ii) any disallowance of all or any portion of any
Lender Party's claim for repayment of the Obligations, (iii) any use of cash or other collateral in any such proceeding, (iv) any agreement or stipulation as to adequate protection in
any such proceeding, (v) any failure by any Lender Party to file or enforce a claim against the Borrower, any Guarantor or any other Obligor or its estate in any bankruptcy or reorganization
case, (vi) any amendment, modification, stay or cure of any Lender Party's rights that may occur in any such proceeding, (vii) any election by any Lender Party under
Section 1111(b)(2) of the Bankruptcy Code, or (viii) any borrowing or grant of a Lien under Section 364 of the Bankruptcy Code. Each Guarantor understands and acknowledges that by
virtue of this Guaranty, it has specifically assumed any and all risks of any such proceeding with respect to the Borrower and each other Obligor. 

34

 

    3.7.2.  Notwithstanding anything herein to the contrary, any Event of Default under Section 8.1.7
and 8.1.8 of this Agreement shall render all Obligations under this Guaranty, automatically due and payable for purposes of this Guaranty, without demand on the part of any Lender Party. 

    3.7.3.  Notwithstanding anything to the contrary herein contained, this Guaranty shall continue to be
effective or be reinstated, as the case may be, if at any time any payment, or any part thereof, of any or all of the Obligations is rescinded, invalidated, declared to be fraudulent or preferential
or otherwise required to be restored or returned by any Lender Party in connection with any bankruptcy, reorganization or similar proceeding involving the Borrower, any other Obligor or otherwise or
if such Lender Party elects to return any such payment or proceeds or any part thereof in its sole discretion, all as though such payment had not been made or such proceeds not been received. 

    Section 3.8.  Maximum Liability of Guarantor.  If the obligations of each of the
Guarantors hereunder otherwise would be subject to avoidance under Section 548 of the Bankruptcy Code or any applicable state law relating to fraudulent conveyances or fraudulent transfers,
taking into consideration such Guarantor's (i) rights of reimbursement and indemnity from the Borrower with respect to amounts paid by such Guarantor, (ii) rights of subrogation to the
rights of the Lender Parties and (iii) rights of contribution from each other Obligor, then such obligations hereby are reduced to the largest amount that would make them not subject to such
avoidance. Any Person asserting that such Guarantor's
obligations are so avoidable shall have the burden (including the burden of production and of persuasion) of proving (a) that, without giving effect to this Section 3.8, such Guarantor's
obligations hereunder would be avoidable and (b) the extent to which such obligations are reduced by operation of this Section 3.8. 

    Section 3.9.  Financial Benefit.  Each Guarantor hereby acknowledges and warrants
it has derived or expects to derive a financial advantage from each Advance and each other relinquishment of legal rights, made or granted or to be made or granted by any Lender Party in connection
with the Obligations. After giving effect to this Guaranty, and the transactions contemplated hereby, such Guarantor is not Insolvent or left with assets or capital that is unreasonably small in
relation to its business or the Obligations. "Insolvent" means, with respect to each Guarantor, that (a) determined on the basis of a "fair
valuation" or their "fair salable value" (whichever is the applicable test under Section 548 and other relevant provisions of the Bankruptcy Code and the relevant state fraudulent conveyance or
transfer laws) the sum of such Guarantor's assets is less than its debts, or (b) such Guarantor is generally not paying its debts as they become due. The meaning of the terms
"fair valuation" and "fair salable value" and the calculation of assets and liabilities shall be
determined and made in accordance with the relevant provisions of the Bankruptcy Code and applicable state fraudulent conveyance or transfer laws. 

    Section 3.10.  Additional Guarantors.  

    The
Borrower will cause each Consolidated Entity that is required or desires to become a Guarantor after the Closing Date to execute and deliver to the Agent (a) a Joinder
Agreement in the form of Exhibit E hereto pursuant to which such Consolidated Entity will unconditionally guarantee the Obligations from time to
time owing to the Lender Parties and (b) other documents required by the Agent confirming the authorization, execution and delivery and enforceability (subject to customary exceptions) of the
Guaranty by such Consolidated Entity. 

35

 
 
 

ARTICLE 4.    
  

 
  CONDITIONS PRECEDENT TO ADVANCES AND
  LETTERS OF CREDIT    
  

    Section 4.1.  Conditions Precedent to Closing Date.  The obligations of the
Lenders to make any Advances or of the Agent Bank to issue any Letters of Credit on any Funding Date shall be subject to the occurrence of the following conditions precedent: 

    4.1.1.  Closing Date.  The Closing Date shall occur on or before March 31,
2001. 

    4.1.2.  Certain Documents.  The Agent shall have received the documents listed on  Schedule
 4.1.2., all of which shall be in form and substance satisfactory to the Agent. 

    4.1.3.  Fees and Expenses Paid.  The Borrower shall have paid all of the Fees and
expenses due and payable on or before the Closing Date, including the Fees specified in the Fee Letter and all legal fees and disbursements of the Agent's counsel (including, without limitation,
allocated costs of in-house counsel) for which the Borrower shall have been billed on or prior to such date. 

    4.1.4.  General.  All other documents and legal matters in connection with the
transactions contemplated by this Agreement shall have been delivered or executed or recorded in form and substance satisfactory to the Agent and the Agent shall have received all such counterpart
originals or certified copies thereof as the Agent may request. 

    Section 4.2.  Conditions Precedent to Advances and Letters of Credit.  The
obligation of the Lenders to make any Advances (except pursuant to Section 2.2.4.) or of the Agent Bank to issue any Letters of Credit on any Funding Date shall be subject to the following
conditions precedent: 

    4.2.1.  Closing Date.  The conditions precedent set forth in Section 4.1.
shall have been satisfied or waived in writing by the Agent before the Notice of Borrowing (or telephonic notice in lieu thereof) is given or the Letter of Credit Agreement is delivered. 

    4.2.2.  Notice of Borrowing, Letter of Credit Agreement, Etc.  The Borrower shall
have delivered, in accordance with the applicable provisions of this Agreement, (a) to the Agent, a Notice of Borrowing (or telephonic notice in lieu thereof (other than with respect to a
Residual Advance)), in the case of an Advance (except in the case of any borrowing of a Base Rate Advance pursuant to a Credit Sweep
Program, if the Agent Bank is the sole Lender hereunder), provided with respect to any Residual Advance, such Notice of Borrowing shall specify that a
Residual Advance is requested thereunder and shall be accompanied by a certificate of a Responsible Officer setting forth the calculations required pursuant to Section 2.1.3.1, or (b) to
the Agent Bank, a Letter of Credit Agreement (and such other documents and instruments as the Agent Bank may require under Section 2.2.2.), in the case of a Letter of Credit. 

    4.2.3.  Representations and Warranties.  All of the representations and
warranties of the Borrower contained in the Loan Documents shall be true and correct in all material respects on and as of the Funding Date as though made on and as of that date (except to the extent
that such representations and warranties expressly were made only as of a specific date). 

    4.2.4.  Letter of Credit Fees.  In the case of any issuance of a Letter of
Credit, the Borrower shall have paid to the Agent Bank, for the account of the Lenders, the Letter of Credit Fees then due and payable in respect of such Letter of Credit. 

    4.2.5.  No Default.  No Default or Event of Default shall exist or result from
the making of the Advance or the issuance of the Letter of Credit. 

    4.2.6.  No Material Adverse Change.  No Material Adverse Change shall have
occurred since the date of the financial statements referred to in Section 5.6. 

36

 

    4.2.7.  Orders of Governmental Authority, Etc.  No order, judgment or decree of,
or any request or directive (whether or not having the force of law) from, any Governmental Authority, or any other Applicable Law, shall purport by its terms to enjoin, restrain, prohibit or
otherwise prevent the Agent Bank from issuing letters of credit generally or the Letter of Credit or shall impose upon the Agent Bank or any Lender with respect to that Letter of Credit (or any
participation therein) any restriction, unreimbursed reserve requirement or unreimbursed cost or expense that was not applicable, in effect or known to the Agent Bank or such Lender on the Closing
Date and that the Agent Bank or such Lender in good faith deems materially adverse to it. 

    Each
borrowing of an Advance (including any Advance made pursuant to any Credit Sweep Program or upon any draw under a Letter of Credit) and Letter of Credit issuance shall constitute
a representation
and warranty by the Borrower as of the Funding Date that the conditions contained in Sections 4.2.5. through 4.2.7. have been satisfied. 

    Section 4.3.  Additional Conditions Precedent and Provisions Applicable to Certain Acquisition
Advances.  

    4.3.1.  Certain Conditions.  The Borrower may request, and the Lenders shall be
required to make Advances pursuant to Section 2.1.1, for the purpose of making an Acquisition of a Real Property (a) that, once acquired, qualifies as an Unencumbered Asset (including
the previous approval by the Required Lenders pursuant to subsection (vii) of the definition of "Unencumbered Asset"), and (b) without inclusion of which in the Unencumbered Pool, the
Borrower would not be in compliance with Section 7.4 giving effect to such Advances, if, in addition to the other conditions set forth in this Agreement (including Section 4.2), all of
the following conditions shall be satisfied as of the Funding Date: 

    4.3.1.1.  The Borrower shall be in compliance with Section 7.4 giving effect to the Acquisition
and the funding of the Advances; 

    4.3.1.2.  The Borrower shall have previously delivered to the Agent and the Lenders the information
required to be delivered to them under the definition of "Unencumbered Asset" as to each Real Property constituting, or part of, such Acquisition, and such Real Property shall have been approved as
eligible for inclusion in the Unencumbered Pool as contemplated by clause (ii) of such definition; 

    4.3.1.3.  The Borrower shall have delivered to the Agent a separate Notice of Borrowing with respect to
that portion of such Advances that could not be made in compliance with Section 7.4 without giving effect to the inclusion of such Real Property in the Unencumbered Pool (such portion being the
"Acquisition Advances"); 

    4.3.1.4.  The Borrower shall have delivered to the Agent concurrently with its Notice of Borrowing
referred to in Section 4.3.1.3 above, a certificate in the form attached hereto as Exhibit B-4, duly executed by a Senior
Officer of the Borrower, describing the proposed Acquisition and any Real Property acquired pursuant thereto, designating such Real Property as an Unencumbered Asset effective upon consummation of the
Acquisition, and setting forth the Unencumbered Asset Value of such Real Property as if it were an Unencumbered Asset as of the date of such Notice of Borrowing (the "Pro Forma
Unencumbered Asset Value"); 

    4.3.1.5.  All statements set forth in the certificate referred to in 4.3.1.4 above shall be true and
correct as of the date thereof and the Funding Date; 

    4.3.1.6.  The Borrower shall have provided to the Agent and the Lenders such information as may be
reasonably requested by the Agent and the Lenders in order to verify the terms, timing and method of payment specified in the contract between a Borrower Party, as purchaser of the 

37

 

Real Property to be acquired, and the seller of such property (the "Acquisition Agreement"), or to determine compliance with this Section 4.3.;
and 

    4.3.1.7.  No Required Lender shall have notified the Borrower (and, if the notice is given by any
Lender, also the other Lenders and the Agent) that it is not satisfied in its discretion that the requested Acquisition Advances are consistent with the terms of the Acquisition Agreement, that such
Acquisition Agreement is bona fide, and that the Real Property will qualify as an Unencumbered Asset upon the completion of the Acquisition of such
property pursuant to the terms of the Acquisition Agreement. 

    Each
borrowing of an Acquisition Advance shall constitute a representation and warranty by the Borrower as of the Funding Date that the conditions contained in this
Section 4.3.1 have been satisfied. 

    4.3.2.  Certain Provisions Applicable to Acquisition Advances.  

    4.3.2.1.  The amount of the Pro Forma Unencumbered Asset Value reflected in the certificate referred to
in Section 4.3.1.4 with respect to a Real Property, the Acquisition of which is financed through Acquisition Advances, shall, notwithstanding that such Real Property is not yet an Unencumbered
Asset, be added to, and treated as part of, the Unencumbered Asset Value for a period commencing on the related Funding Date and ending no later than the earlier to occur of (i) seven calendar
days thereafter, or (ii) the date on which the Acquisition is consummated (the "Cut-off Date"). 

    4.3.2.2.  The Borrower agrees and covenants that the proceeds of all Acquisition Advances shall be used
only to acquire the relevant Real Property and that, if the Acquisition of such Real Property is not consummated by, or such Real Property does not qualify as an Unencumbered Asset on the
Cut-off Date, then the Borrower shall immediately prepay outstanding Advances under the Credit Agreement in an amount equal to the amount of such Acquisition Advances. 

 
 

ARTICLE 5.    
  

 
  REPRESENTATIONS AND WARRANTIES    
  

    Each Borrower Party represents and warrants to the Lender Parties as follows: 

    Section 5.1.  Organization, Authority and Tax Status of the Borrower; Enforceability,
Etc.  

    5.1.1.  Organization and Authority; Tax Status.  The Borrower has been duly
formed, is validly existing as a limited partnership in good standing under the laws of the State of Delaware, and is duly qualified to transact business and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of property requires such qualification except where the absence of such qualification would not have a Material Adverse Effect. The
Borrower has all requisite power and authority to own or hold under lease the property it purports to own (including the properties listed on  Schedule 1.1C that are designated as owned by the
Borrower) or hold under lease, to carry on its business as now conducted and as proposed to be
conducted, to execute and deliver the Loan Documents to which it is a party and to perform its obligations hereunder and thereunder. The Borrower 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. 

    5.1.2.  Authorization; Binding Effect.  The Borrower has by all necessary action
duly authorized (a) the execution and delivery of the Loan Documents to which the Borrower is a party and (b) the performance of its obligations thereunder. Each Loan Document to which
the Borrower is a party constitutes the legal, valid and binding obligation of the Borrower, enforceable against it in accordance with its respective terms, except as enforcement may be limited by
equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors' rights generally. 

38

 

    5.1.3.  Partnership Units; General Partner.  All of the Partnership Units of the
Borrower are validly issued and non-assessable and owned of record in the percentage amounts and by the Persons set forth on  Schedule 5.1., as amended from time to time. The REIT owns (i)
 33,612,462 Partnership Units of the
Borrower, (ii) 4,846,522 Preferred Partnership Units of the Borrower, (iii) 5,487,471 Series B Preferred Partnership Units of the Borrower and (iv) 3,627,131
Series A Preferred Partnership Units of the Borrower, free and clear of any Liens. Such Partnership Units were offered and sold in compliance with all Applicable Laws (including, without
limitation, federal and state securities laws). There are no outstanding securities convertible into or exchangeable for Partnership Units of the Borrower, or options, warrants or rights to purchase
any such Partnership Units, or, except as set forth on Schedule 5.1, commitments of any kind for the issuance of additional Partnership Units or
any such convertible or exchangeable securities or options, warrants or rights to purchase such Partnership Units. The REIT is the sole general partner of the Borrower. 

    Section 5.2.  Organization, Authority and REIT Status of the REIT; Enforceability,
Etc.  

    5.2.1.  Organization and Authority.  The REIT is a corporation duly organized,
validly existing and in good standing under the laws of Maryland, and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its
ownership or leasing of property requires such qualification except where the absence of such qualification would not have a Material Adverse Effect. The REIT has all requisite power and authority to
own or hold under lease the property it purports to own or hold under lease, to carry on its business as now conducted and as proposed to be conducted, to execute and deliver this Agreement and to
perform its obligations hereunder. 

    5.2.2.  Authorization; Binding Effect.  The REIT has by all necessary action duly
authorized the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of the REIT, enforceable
against it in accordance with its respective terms, except as enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
creditors' rights generally. 

    5.2.3.  REIT Status.  The REIT is organized in conformity with the requirements
for qualification as a real estate investment trust under the Code and its ownership and method of operation enables it to meet the requirements for taxation as a real estate investment trust under
the Code. 

    Section 5.3.  Organization, Authority and Tax Status of Guarantors; Enforceability,
Etc.  

    5.3.1.  Organization and Authority.  Each of the Guarantors has been duly formed,
is validly existing as a general partnership or a limited partnership, as the case may be, in good standing under the laws of the State of California, and is duly qualified to transact business and is
in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification except where the absence of such qualification would not
have a Material Adverse Effect.
Each of the Guarantors has all requisite power and authority to own or hold under lease the property it purports to own (including the property listed on  Schedule 1.1C that is designated as owned
by such Guarantor) or hold under lease, to carry on its business as now conducted and as proposed to be
conducted, to execute and deliver the Loan Documents to which it is a party and to perform its obligations thereunder. Each of the Guarantors is a partnership for purposes of federal income taxation
and for purposes of the tax laws of any state or locality in which such Guarantor is subject to taxation based on its income. 

    5.3.2.  Authorization; Binding Effect.  Each of the Guarantors has by all
necessary action duly authorized the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of
each Guarantor, enforceable against it in accordance with its respective terms, except as enforcement may be limited by 

39

 

equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors' rights generally. 

    Section 5.4.  Consolidated Entities and Unconsolidated Joint Ventures; Management
Companies.  

    5.4.1.  Ownership.  Schedule 5.4.
(as amended from time to time) contains complete and correct lists of the Consolidated Entities (other than the Borrower) and the Unconsolidated Joint Ventures, showing, in each case, the correct name
thereof, the type of organization, the jurisdiction of its organization, and the percentage of Capital Stock outstanding and owned by the Borrower Parties and the Consolidated Entities, as the case
may be. All of the outstanding shares of Capital Stock of each Consolidated Entity or Unconsolidated Joint Venture shown in Schedule 5.4. as
being owned by any Borrower Party or any Consolidated Entity have been validly issued and are owned by such Borrower Party or Consolidated Entity free and clear of any Lien (except as otherwise
disclosed on Schedule 5.4.). 

    5.4.2.  Organization and Ownership.  Each Consolidated Entity and Unconsolidated
Joint Venture is a corporation, partnership or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified to
transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification except where the absence of such
qualification would not have a Material Adverse Effect. Each such Consolidated Entity and Unconsolidated Joint Venture has all requisite power and authority to own or hold under lease the property it
purports to own or hold under lease, to carry on its business as now conducted and as proposed to be conducted. Each such Consolidated Entity or Unconsolidated Joint Venture organized as a partnership
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. 

    5.4.3.  Management Companies.  Each of the Management Companies is a corporation
duly organized, validly existing and in good standing under the laws of jurisdiction of incorporation, and is duly qualified to transact business and is in good standing in each jurisdiction in which
the conduct of its business or its ownership or leasing of property requires such qualification. Each of the Management Companies has all requisite power and authority to own or hold under lease the
property it purports to own or hold under lease, to carry on its business as now conducted and as proposed to be conducted. The Borrower is the sole owner of record of all of the issued and
outstanding shares of preferred stock of each of the Management Companies. Each of the Management Contracts constitutes the legal, valid and binding obligations of the signatories that are party
thereto, enforceable against each of them in accordance with its terms. 

    Section 5.5.  No Conflict, Etc.  

    5.5.1.  No Conflict.  The execution, delivery and performance by each Borrower
Party of each Loan Document to which it is party, and the consummation of the transactions contemplated thereby, do not and will not (a) violate any provision of the charter, bylaws or
partnership agreement of any Borrower Party, as the case may be, (b) conflict with, result in a breach of, or constitute (or, with the giving of notice or lapse of time or both, would
constitute) a default under, or require the approval or consent of any person pursuant to (except as disclosed in Schedule 5.5., which consents
have been obtained and are in full force and effect), any Contractual Obligation of any Borrower Party, or violate any provision of Applicable Law binding on any Borrower Party, or (c) result
in the creation or imposition of any Lien upon any material asset of any Borrower Party. 

    5.5.2.  Governmental Approvals.  Except for filings and recordings which are
described on Schedule 5.5., which in each case have been made and are in full force and effect, no Governmental Approval is or will be required
in connection with the execution, delivery and performance of any Borrower Party of this Agreement or any Loan Document to which it is party or the transactions contemplated hereby or thereby or to
ensure the legality, validity or enforceability hereof or thereof. Each of the REIT, the Borrower and the other Consolidated Entities possesses all material Governmental Approvals, in full force and
effect, free from burdensome restrictions, that are necessary for the ownership, maintenance and operation of its properties and conduct of its business as now conducted and proposed to be conducted,
and is not in violation thereof. 

40

  

    Section 5.6.  Financial Information.  

    5.6.1.  The consolidated balance sheet of the REIT and the Consolidated Entities for the Fiscal Years
ended December 31, 1997, December 31, 1998, and December 31, 1999, and the consolidated statements of income, retained earnings and cash flow of the REIT and the Consolidated
Entities for the Fiscal Year then ended, in each case certified by the Borrower's independent certified public accountants, copies of which have been delivered to the Agent, were prepared in
accordance with GAAP consistently applied and fairly present the consolidated financial position of the REIT and the Consolidated Entities as at the respective dates thereof and the results of
operations and cash flow of the REIT and the Consolidated Entities for the respective periods then ended. Neither the REIT nor any Consolidated Entity had on such dates any material Contingent
Obligations, liabilities for Taxes or long-term leases, unusual forward or long-term commitments or unrealized losses from any unfavorable commitments which are not reflected
in the foregoing statements or in the notes thereto and which are material to the business, assets, prospects, results of operation or financial condition of the REIT and the Consolidated Entities
taken as a whole. 

    5.6.2.  The unaudited consolidated balance sheet of the REIT as at September 30, 2000 and related
statements of income, retained earnings and cash flow for the period then ended, approved by the Chief Financial Officer of the REIT, a copy of which has been delivered to the Agent, were prepared in
accordance with GAAP consistently applied (except to the extent noted therein) and fairly present the consolidated financial position of the REIT and the Consolidated Entities as of such date and the
results of operations and cash flow for the period covered thereby, subject to normal year-end audit adjustments. Neither the REIT nor any Consolidated Entity had on such date any material
Contingent Obligations, liabilities for Taxes or long-term leases, unusual forward or long-term commitments or unrealized losses from any unfavorable commitments which are not
reflected in the foregoing statements or in the notes thereto and which are Material. 

    Section 5.7.  No Material Adverse Changes.  Since December 31, 1999, there
has been no Material Adverse Change that has not been disclosed in any report filed by the REIT with the SEC prior to date hereof. 

    Section 5.8.  Litigation.  Except as disclosed in  Schedule 5.8. hereto,
there are no actions, suits or proceedings pending or, to the best knowledge of the Borrower Parties, threatened against or
affecting the REIT or any Consolidated Entity or any of its or their respective properties before any Governmental Authority (a) in which there is a reasonable possibility of an adverse
determination that could have a Material Adverse Effect, or (b) which draws into question the validity or the enforceability of this Agreement, any other Loan Document or any transaction
contemplated hereby or thereby. 

    Section 5.9.  Agreements; Applicable Law.  Neither the REIT nor any Consolidated
Entity is in violation of any Applicable Law, or in default under any Contractual Obligations to which it is a party or by which its properties are bound, except where such violation or default could
not, individually or in the aggregate, have a Material Adverse Effect. Neither the REIT or any Consolidated Entity is a party to or bound by any unduly burdensome Contractual Obligation which could
have a Material Adverse Effect that has not been disclosed in any report filed by the REIT with the SEC prior to date hereof. 

    Section 5.10.  Governmental Regulation.  Neither the REIT nor any Consolidated
Entity is (a) an "investment company" registered or required to be registered under the Investment Company Act of 1940, as amended, or a company controlled by such a company, or
(b) subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Interstate Commerce Act or to any Federal or state, statute or regulation limiting its
ability to incur Debt for money borrowed. 

41

 

    Section 5.11.  Margin Regulations.  Neither the REIT nor any Consolidated Entity
is engaged principally, or as one of its important activities, in the business of extending credit for the purposes of purchasing or carrying Margin Stock. The execution, delivery and performance of
the Loan Documents by the Borrower Parties will not violate the Margin Regulations. The value of all Margin Stock held by the Borrower Parties and their Subsidiaries constitutes less than 25% of the
value, as determined in accordance with the Margin Regulations, of all assets of the Borrower Parties and their Subsidiaries. 

    Section 5.12.  Employee Benefit Plans.  

    5.12.1.  Each Borrower Party and each of the ERISA Affiliates is in compliance in all Material respects
with all Applicable Laws including any applicable provisions of ERISA and the Code and the regulations and published interpretations thereunder with respect to all Plans and Multiemployer Plans. There
have been no Prohibited Transactions with respect to any Plan which could result in any Material liability of any Borrower Party or any of the ERISA Affiliates. Neither any Borrower Party nor any of
the ERISA Affiliates has participated in or contributed to any Defined Benefit Plan at any time. Neither any Borrower Party nor any of the ERISA Affiliates has failed to make any Material payments
required to be made under any agreement relating to a Multiemployer Plan or any law pertaining thereto. The Borrower Parties and the ERISA Affiliates have not had asserted and do not expect to have
asserted against them any Material penalty, interest or excise tax under Sections 4971, 4972, 4975, 4976, 4977, 4979, 4980 or 4980B of the Code or Sections 502(c)(1) or 502(i) of ERISA. Each
Plan covering employees of the Borrower Parties or any of the ERISA Affiliates is able to pay benefits thereunder when due. There are no Material claims pending or overtly threatened, involving any
Plan, nor is there any reasonable basis to anticipate any claims involving any such Plans. 

    5.12.2.  The investment in the Borrower Parties by benefit plan investors is not significant within the
meaning of Department of Labor Regulation Section 2510.3-101(f). 

    Section 5.13.  Title to Property; Liens.  

    5.13.1.  Each of the REIT, the Controlled Consolidated Entities and, to the best knowledge of the
Borrower Parties, the other Consolidated Entities or Unconsolidated Joint Ventures has good and marketable title to, or valid and subsisting leasehold interests in, all of its Real Property and other
property reflected in its books and records as being owned by it. On and after the Closing Date, each Real Property from time to time designated by the Borrower as an Unencumbered Asset meets the
conditions set forth in the definition of "Unencumbered Asset" (other than those set forth in clause (iv) thereof). 

    5.13.2.  Neither the REIT, any Controlled Consolidated Entity nor, to the best knowledge of the Borrower
Parties, any other Consolidated Entity or Unconsolidated Joint Venture is in default in the performance or observance of any of the covenants or conditions contained in any of its Contractual
Obligations, except where such default or defaults, if any, would not have a Material Adverse Effect. 

    Section 5.14.  Licenses, Trademarks, Etc.  The REIT, the Controlled Consolidated
Entities and, to the best knowledge of the Borrower Parties, the other Consolidated Entities or Unconsolidated Joint Ventures own or hold valid licenses in all necessary trademarks, copyrights,
patents, patent rights and other similar rights which are Material to the conduct of their respective businesses as heretofore operated and as proposed to be conducted. Neither the REIT, any
Controlled Consolidated Entity nor, to the best knowledge of the Borrower Parties, any other Consolidated Entity or Unconsolidated Joint Venture has been charged or, to the best knowledge of the
Borrower Parties, threatened to be charged with any infringement of, nor has any of them infringed on, any unexpired trademark, patent, patent registration, copyright, copyright registration or other
proprietary right of any Person except where the effect thereof individually or in the aggregate would not have a Material Adverse Effect. 

42

 

    Section 5.15.  Environmental Condition.  Except as set forth on  Schedule 5.15. hereto: 

    5.15.1.  To the best of each Borrower Party's knowledge, all Real Property owned or used by the REIT or
any Consolidated Entity is free from contamination from any Hazardous Materials except contamination that would not have a Material Adverse Effect that has not been disclosed in any report filed by
the REIT with the SEC prior to date hereof. To the best of each Borrower Party's knowledge, no polychlorinated biphenyls (PCBs) (including any transformers, capacitors, ballasts, or other equipment
which contains dielectric fluid containing PCBs) or asbestos is constructed within, stored, disposed of or location on such Real Property except for matters that would not have a Material Adverse
Effect or that have not been disclosed in any report filed by the REIT with the SEC prior to date hereof. Neither the REIT nor any Consolidated Entity has caused or suffered, nor to the knowledge of
any Borrower Party has any other owner or user of such Real Property caused or suffered any Environmental Damages that has had or which could have a Material Adverse Effect that has not been disclosed
in any report filed by the REIT with the SEC prior to date hereof. 

    5.15.2.  Neither the REIT nor any Consolidated Entity nor, to the best knowledge of each Borrower Party,
any prior owner or occupant of the Real Property owned or used by the REIT or any Consolidated Entity has received notice of any alleged violation of Environmental Requirements, or notice of any
alleged liability for Environmental Damages in connection with the Real Property, which could reasonably be expected to have a Material Adverse Effect that has not been disclosed in any report filed
by the REIT with the SEC prior to date hereof. There exists no order, judgment or decree outstanding, nor any action, suit, proceeding, citation or investigation, pending or threatened, relating to
any alleged liability arising out of the suspected presence of Hazardous Material, any alleged violation of Environmental Requirements or any alleged liability for Environmental Damages in connection
with the Real Property or the business or operations of the REIT and the Consolidated Entities that has had or which could have a Material Adverse Effect that has not been disclosed in any report
filed by the REIT with the SEC prior to date hereof nor, to the best of each Borrower Party's knowledge, does there exist any basis for such action, suit, proceeding, citation or investigation being
instituted or filed. 

    Section 5.16.  Absence of Certain Restrictions.  Neither any Controlled
Consolidated Entity nor, to the best knowledge of the Borrower Parties, any other Consolidated Entity or Unconsolidated Joint Venture is subject to any Contractual Obligation which restricts or limits
its ability to (a) pay dividends or make any distributions on its Capital Stock, (b) incur or pay Debt owed the REIT or any other Consolidated Entity, (c) make any loans or
advances to the Borrower or (d) transfer any of its property to the Borrower; provided that the foregoing restrictions in subclauses (b),
(c) and (d) shall not apply to any Bankruptcy Remote Entity to the extent such restrictions are required by any rating agency as a condition to the rating of the Debt of such Bankruptcy
Remote Entity. 

    Section 5.17.  Disclosure.  The information in any document, certificate or
written statement furnished to the Lender by or on behalf of the REIT, the Borrower or any other Consolidated Entity with respect to the business, assets, prospects, results of operation or financial
condition of the REIT, the Borrower, or any other Consolidated Entity or any Unconsolidated Joint Venture, including operating statements and rent rolls, for use in connection with the transactions
contemplated by this Agreement has been true and correct or, in the case of any information relating to any Consolidated Entity that is not a
Controlled Consolidated Entity or to any Unconsolidated Joint Venture, true and correct to the best knowledge of the Borrower Parties. There is no fact known to the Borrower Parties (other than
matters of a general economic nature) that has a Material Adverse Effect or could reasonably be expected to have a Material Adverse Effect, which has not been disclosed herein or in such other
documents, certificates, and statements. 

43

 
 
 

ARTICLE 6.
  
    AFFIRMATIVE COVENANTS OF THE BORROWER PARTIES    
  

    So long as any portion of the Commitments shall be in effect and until all Obligations are paid in full: 

    Section 6.1.  Financial Statements and Other Reports.  The Borrower Parties will
deliver to the Agent, with sufficient copies for the Lender Parties: 

    6.1.1.  within 90 days after the end of each Fiscal Year, the consolidated balance sheet of the
REIT and the Consolidated Entities as of the end of such Fiscal Year and the related consolidated statements of income, stockholders' equity and cash flow of the REIT and the Consolidated Entities 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 Agent, which
report shall be unqualified (except for qualifications that the Required Lenders do not consider Material in their discretion) and shall state that such consolidated financial statements fairly
present the financial position of the REIT and the Consolidated Entities as at the date indicated and the results of their operations and cash flow for the periods indicated in conformity with GAAP
(except as otherwise stated therein) and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing
standards; 

    6.1.2.  within 50 days after the end of each Fiscal Quarter, a consolidated balance sheet of the
Borrower and the Consolidated Entities as at the end of such quarter and the related combined statements of income and cash flow of the REIT and the Consolidated Entities 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 the REIT's chief 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; 

    6.1.3.  together with each delivery of financial statements pursuant to Sections 6.1.1. and 6.1.2.
above, a Compliance Certificate and a Pricing Certificate duly completed and setting forth the calculations required to establish whether the Borrower Parties were in compliance with Sections 7.2.2.,
7.3., 7.4. and 7.5 on the date of such financial statements and the Applicable LIBO Rate and Facility Fee percentage for the current Fiscal Quarter; 

    6.1.4.  promptly after any Borrower Party becomes aware of the occurrence of any Default or Event of
Default, a certificate of a Senior Officer of the Borrower Party setting forth the details thereof and the action which the Borrower Party is taking or proposes to take with respect thereto; 

    6.1.5.  not later than five (5) days after their being filed with the SEC, copies of all
financial statements, reports, notices and proxy statements sent or made available by the REIT to its security holders, all registration statements (other than the exhibits thereto) and annual,
quarterly or monthly reports, if any, filed by the REIT with the SEC (other than reports under Section 16 of the Securities Exchange Act of 1934, as amended) and all press releases by the REIT
or any Consolidated Entity concerning material developments in the business of the REIT or any Consolidated Entity; 

44

 

    6.1.6.  not later than ten (10) days after being filed, Tax returns, reports, declarations,
statements, information statements or any other document filed by the REIT with respect to the income Taxes of the REIT or the qualification of the REIT as a real estate investment trust under the
Code; 

    6.1.7.  promptly after any Borrower Party obtains knowledge thereof, notice of all litigation or
proceedings commenced or threatened affecting the REIT or any Consolidated Entity in which there is a reasonable possibility of an adverse decision and (a) which involves alleged liability in
excess of $2,500,000 (in the aggregate) which is not covered by insurance, (b) in which injunctive or similar relief is sought which if obtained could have a Material Adverse Effect or
(c) which questions the validity or enforceability of any Loan Document; 

    6.1.8.  within 120 days after the end of each Fiscal Year, a forecast for the next succeeding two
Fiscal Years of the consolidated results of operations and cash flows of the REIT, together with (a) an outline of the major assumptions upon which the forecast is based and
(b) information regarding the capital expenditures forecast for such period (including leasing commissions, tenant improvements, renovations and other capital expenditures, all broken down by
appropriate categories), other than capital expenditures attributable to acquisitions of Real Properties (or to the Real Properties so acquired) that may occur (but have not yet occurred) during the
period covered by the forecast; 

    6.1.9.  for each Unencumbered Asset held in the Unencumbered Pool: 

    6.1.9.1.  within 90 days after the end of each Fiscal Year, a property budget with respect to
such Unencumbered Asset for the next Fiscal Year; and 

    6.1.9.2.  within 45 days after the end of each Fiscal Quarter, operating statements, rent rolls
and lease status reports with respect to such Unencumbered Asset; 

    6.1.10.  for each Retail Property that constitutes Construction-in-Process the
value of which is estimated to be $40,000,000 or greater: 

    6.1.10.1.  within 45 days after the Commencement of Construction, a property budget with respect
to such Retail Property; and 

    6.1.10.2.  within 45 days after the Commencement of Construction, a pro forma operating statement
respect to such Retail Property; 

    6.1.11.  promptly after the receipt thereof, a copy of any notice, summons, citation or written
communication concerning any actual, alleged, suspected or threatened Material violation of Environmental Requirements, or Material liability of any Borrower Party or any Consolidated Entity for
Environmental Damages in connection with its Real Property or past or present activities of any Person thereon; and 

    6.1.12.  from time to time such additional information regarding the financial position or business of
the REIT and the Consolidated Entities or regarding any of the Real Properties as the Agent may reasonably request on behalf of any Lender. 

    Section 6.2.  Records and Inspection.  Each Borrower Party shall, and shall cause
each Consolidated Entity to, maintain adequate books, records and accounts as may be required or necessary to permit the preparation of consolidated financial statements in accordance with sound
business practices and GAAP. Each Borrower Party shall, and shall cause each Consolidated Entity to, permit such persons as any Lender may designate, at reasonable times and as often as may be
reasonably requested, to (a) visit and inspect any properties of the Borrower Parties and the Consolidated Entities, (b) inspect and copy their books and records, and (c) discuss
with their officers and employees and their independent accountants, their respective businesses, assets, liabilities, prospects, results of operation and financial condition. 

45

 

    Section 6.3.  Corporate Existence, Etc.  Each Borrower Party shall, and shall
cause each Consolidated Entity to, at all times preserve and keep in full force and effect its partnership, corporate or other legal existence, as the case may be, and any licenses, permits, rights
and franchises material to its business, provided, however, that the partnership, corporate or other legal existence of any Consolidated Entity (other
than the Borrower) may be terminated if, in the good faith judgment of the REIT, such termination is in the best interest of the Borrower and is not disadvantageous in any material respect to any
Lender Party. 

    Section 6.4.  Payment of Taxes and Charges.  The Borrower Parties shall, and
shall cause each Consolidated Entity to, file all tax returns required to be filed in any jurisdiction and, if applicable, pay and discharge all 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 Taxes, provided,
however, that, unless and until foreclosure, distraint, levy, sale or similar proceedings shall have commenced, the Borrower Parties and the Consolidated Entities need not pay
or discharge any such Tax so long as the validity or amount thereof is contested in good faith and by appropriate proceedings and so long as any reserves or other appropriate provisions as may be
required by GAAP shall have been made therefor. 

    Section 6.5.  Maintenance of Properties.  Each Borrower Party shall, and shall
cause each Consolidated Entity to, maintain or cause to be maintained in good repair, working order and condition (ordinary wear and tear excepted), all Real Properties and all other Material
properties useful or necessary to its business, and from time to time the Borrower Parties will make or cause to be made all appropriate repairs, renewals and replacements thereto. 

    Section 6.6.  Maintenance of Insurance.  Each Borrower Party shall, and shall
cause each Consolidated Entity to, maintain with financially sound and reputable insurance companies, insurance in at least such amounts, of such character and against at least such risks as are
usually insured against in the same general area by companies of established repute engaged in the same or a similar business. 

    Section 6.7.  Conduct of Business.  No Borrower Party or Consolidated Entity
shall engage in any business other than the business of owning and operating Retail Properties or the assets and other properties set forth in Section 7.2.2. or any businesses incident thereto.
Each Borrower Party shall, and shall cause each Consolidated Entity to, conduct its business in compliance in all material respects with Applicable Law and all material Contractual Obligations. 

    Section 6.8.  Exchange Listing; Tax Status of Borrower Parties.  The REIT will do
or cause to be done all things necessary to maintain the listing of its Capital Stock on the New York Stock Exchange, the American Stock Exchange or the Nasdaq National Market System and continue to
qualify as a real estate investment trust under the Code, 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. 

    Section 6.9.  Subordination.  

    6.9.1.  The REIT, the Borrower and each Guarantor (each a "Subordinated
Creditor") hereby absolutely subordinates, both in right of payment and in time of payment, (a) in the case of the REIT, any and all present or future obligations and
liabilities of the Borrower or any Guarantor to the REIT, (b) in the case of any Guarantor, any and all present or future obligations and liabilities of the Borrower or any other Guarantor to
such Guarantor and (c) in the case of the Borrower, any and all present and future obligations and liabilities of the REIT or any Guarantor to the Borrower (such obligations and liabilities
referred to in clause (a) or (b) being "Subordinated Debt"), to the prior payment in full in cash of the Obligations or the obligations of
such Person under the Guaranty, as applicable. Each Subordinated Creditor agrees to make no claim for, or receive payment with respect to, such Subordinated Debt until all Obligations and such
obligations have been fully discharged in 

46

 

cash. Notwithstanding the foregoing, the Borrower shall be entitled to declare and pay dividends with respect to its Capital Stock, as long as no Event of Default then exists, but subject to
Section 7.8.3. 

    6.9.2.  All amounts and other assets that may from time to time be paid or distributed to or otherwise
received by any Subordinated Creditor in respect of Subordinated Debt in violation of this Section 6.9. shall be segregated and held in trust by the Subordinated Creditor for the benefit of the
Lender Parties and promptly paid over to the Agent. 

    6.9.3.  Each Subordinated Creditor further agrees not to assign all or any part of the Subordinated Debt
unless the Agent is given prior notice and such assignment is expressly made subject to the terms of this Agreement. If the Agent so requests, (a) all instruments evidencing the Subordinated
Debt shall be duly endorsed and delivered to the Agent, (b) all security for the Subordinated Debt shall be duly assigned and delivered to Agent for the benefit of the Lenders, (c) the
Subordinated Debt shall be enforced, collected and held by the relevant Subordinated Creditor as trustee for the Lender Parties and shall be paid over to the Agent for the benefit of the Lenders on
account of the Advances, and (d) the Subordinated Creditors shall execute, file and record such documents and instruments and take such other action as the Agent deems necessary or appropriate
to perfect, preserve and enforce the Lender Parties' rights in and to the Subordinated Debt and any security therefor. If any Subordinated Creditor fails to take any such action, the Lender, as
attorney-in-fact for such Subordinated Creditor, is hereby authorized to do so in the name of the Subordinated Creditor. The foregoing power of attorney is coupled with an
interest and cannot be revoked. 

    6.9.4  In any bankruptcy or other proceeding in which the filing of claims is required by Applicable
Law, each Subordinated Creditor shall file all claims relating to the Subordinated Debt that the Subordinated Creditor may have against the obligor thereunder and shall assign to the Agent, for the
benefit of the Lenders, all rights of the relating to the Subordinated Debt thereunder. If any Subordinated Creditor does not file any such claim, the Agent, as
attorney-in-fact for the Subordinated Creditor, is hereby authorized to do so in the name of the Subordinated Creditor or, in the Agent's discretion, to assign the claim to a
nominee and to cause proof of claim to be filed in the name of the Agent or the Agent's nominee. The foregoing power of attorney is coupled with an interest and cannot be revoked. The Agent or its
nominee shall have the right, in its reasonable discretion, to accept or reject any plan proposed in such proceeding and to take any other action which a party filing a claim is entitled to do. In all
such cases, whether in administration, bankruptcy or otherwise, the Person or Persons authorized to pay such claim shall pay to the Agent for the benefit of the Lenders the amount payable on such
claim and, to the full extent necessary for that purpose, each Subordinated Creditor hereby assigns to the Agent for the benefit of the Lenders all of the Subordinated Creditor's rights to any such
payments or distributions; provided, however, the Subordinated Creditor's obligations hereunder shall not be satisfied except to the extent that the
Agent receives cash by reason of any such payment or distribution. 

    Section 6.10.  Remedial Action Regarding Hazardous Materials.  The Borrower shall
promptly take, and shall cause its Subsidiaries promptly to take, any and all necessary remedial action in connection with the presence, storage, use, disposal, transportation or release of any
Hazardous Materials on, under or about any Real Property in order to comply with all applicable Environmental Requirements. In the event that the Borrower or any of its Subsidiaries undertakes any
remedial action with respect to any Hazardous Materials on, under or about any Real Properties, the Borrower and such Subsidiary shall
conduct and complete such remedial action in compliance with all applicable Environmental Requirements and in accordance with the policies, orders and directives of all Governmental Authorities. 

47

 
 
 

ARTICLE 7.
  
    NEGATIVE COVENANTS OF THE BORROWER PARTIES    
  

    So long as any portion of the Commitments shall be in effect and until all Obligations are paid in full: 

    Section 7.1.  Unsecured Debt and Claims.  

    7.1.1.  The Borrower Parties shall not, and shall not permit any other Consolidated Entity to, directly
or indirectly, create, incur, assume, guarantee, or otherwise become or remain liable with respect to, any Unsecured Debt, except (a) the Obligations, (b) guaranties and deferred
purchase obligations related to Acquisitions and deferred Acquisition costs and (c) Permitted Subordinated Debentures. 

    7.1.2.  The Borrower Parties shall not, and shall not permit any other Consolidated Entity to, directly
or indirectly, create, incur, assume, guarantee, or otherwise become or remain liable with respect to, any liabilities or claims (excluding (a) Unsecured Debt, (b) Permitted Subordinated
Debentures and (c) Debt of Wholly-Owned Persons and Unconsolidated Joint Ventures that constitutes Non-Recourse Debt) if, as a result, the sum of (i) the amount of all such
liabilities and claims of the REIT and the Consolidated Entities, plus the REIT's pro rata share of all
liabilities and claims of the Unconsolidated Joint Ventures (excluding Non-Recourse Debt), would exceed (ii) the sum of the amount of all tenant and other receivables and cash and
cash equivalents of the REIT and the Consolidated Entities plus the REIT's pro rata share of tenant and
other receivables and cash and cash equivalents of the Unconsolidated Joint Ventures, by more than 2.50% of Gross Asset Value. For purposes of this Section, the REIT's pro
rata share of liabilities, claims, receivables, cash or cash equivalents of any Unconsolidated Joint Venture shall be deemed equal to the product of (i) the liabilities,
claims, receivables, cash or cash equivalents, as applicable, of such Unconsolidated Joint Venture, multiplied by (ii) the percentage of the
total outstanding Capital Stock of such Person held by the REIT or any Consolidated Entity, expressed as a decimal. 

    Section 7.2.  Investments; Asset Mix.  

    7.2.1.  The REIT shall not at any time make or own any Investment in any Person, or purchase, lease or
own any other asset or property, except in (a) the Borrower, (b) any Capital Stock of the Consolidated Entities (other than the Borrower) listed in  Schedule 5.4. on the Closing Date, or
any Capital Stock of any Consolidated Entity (including a Bankruptcy Remote Entity) formed or acquired
after the Closing Date and added to Schedule 5.4. in accordance with Section 10.2.2.,  provided that such Investment in such formed or acquired
Consolidated Entity shall not exceed one percent (1%) of the Capital Stock of such Consolidated
Entity, and (c) any cash or other property that is being distributed to the shareholders of the REIT substantially contemporaneous with the REIT's receipt of such property from the Borrower. 

    7.2.2.  The Borrower shall not at any time make or own any Investment in any Person, or purchase, lease
or own any Real Property or other asset, except that the Borrower may own or lease the following, subject to the limitations set forth below: 

	Asset Type
	 	Limitation on Value for each Asset Type

	1.	 	Wholly-Owned Retail Properties (other than Retail Property Under Construction)	 	Unlimited
	

2.	
 	

Wholly-Owned Raw Land that is not under development and for which no development is planned to commence within 12 months after the date on which it was acquired	
 	

5% of Gross Asset Value
	
	
 	

 	
 	

 

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3.	
 	

Wholly-Owned Real Property (other than Retail Properties, Retail Properties Under Construction or Raw Land referred to in clause 2.)	
 	

5% of Gross Asset Value
	

4.	
 	

Wholly-Owned Capital Stock of any corporation (other than any Person (a "Wholly-Owned Entity") at least 99% of of the the Capital Stock of which is held of record and beneficially by the Borrower and the
balance of the Capital Stock of which (if any) is held of record and beneficially by the REIT (or any wholly-owned Subsidiary of the REIT))	
 	

5% of Gross Asset Value, provided that the Borrower may hold Capital Stock of corporate Subsidiaries formed to acquire one or more Retail Properties if, together with any other Capital Stock, holdings in
such Capital Stock do not exceed 30% of Gross Asset Value
	

5.	
 	

Wholly-Owned Mortgage Loans; provided that the mortgage or deed of trust securing any such Mortgage Loan is a first priority mortgage or deed of trust	
 	

15% of Gross Asset Value
	

6.	
 	

Retail Properties of Joint Ventures (other than corporations or Wholly-Owned Entities (as defined above)) of which the Borrower is a general partner or of which the Borrower owns more than 50% of the Capital Stock	
 	

50% of Gross Asset Value
	

7.	
 	

Retail Property Under Construction (as measured by Construction-in-Process)	
 	

10% of Gross Asset Value
	

8.	
 	

Permitted Investments	
 	

Unlimited
	

9.	
 	

Capital Stock of Management Companies	
 	

5% of Gross Asset Value
	

10.	
 	

Capital Stock of taxable REIT Subsidiaries	
 	

Not more than $30,000,000 (based on cost)
	

11.	
 	

Other GAV Assets	
 	

5% of Gross Asset Value

    Notwithstanding
the foregoing, Investments and other assets in the foregoing categories 2 through 11 may not exceed, at any time, 50% of Gross Asset Value. Without limitation of
Section 1.2.3., all values of Investments and other assets shall be the book values of such Investments and assets, determined in accordance with GAAP, except as otherwise expressly provided. 

49

  

    Section 7.3.  Financial Covenants.  

    7.3.1.  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) $450,000,000, minus (b) 100% of the cumulative Depreciation and Amortization
Expense deducted in determining Net Income for all fiscal quarters ended or ending after December 31, 1999, plus (c) 90% of the cumulative
net cash proceeds received from and the value of assets acquired (net of Debt incurred or assumed in connection therewith) through the issuance of Capital Stock of the REIT or the Borrower after
December 31, 1999. 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 Macerich Group Member or any Affiliate of any Borrower Party). 

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

    7.3.3.  Minimum Interest Coverage Ratio.  As of the last day of any fiscal
quarter, the Interest Coverage Ratio shall not be less than 1.80. 

    7.3.4.  Minimum Fixed Charge Coverage Ratio.  As of the last day of any fiscal
quarter, the Fixed Charge Coverage Ratio shall not be less than 1.60. 

    7.3.5.  Minimum Senior Unsecured Interest Expense Coverage Ratio.  As of the last
day of any fiscal quarter, the Senior Unsecured Interest Expense Coverage Ratio shall not be less than 1.25. 

    7.3.6.  Maximum Floating Rate Debt.  The sum of the following shall not exceed
$700,000,000 at any time (without duplication): (a) Floating Rate Debt of the REIT and the Consolidated Entities, plus (b) the REIT's  pro rata
share of all Floating Rate Debt of the Unconsolidated Joint Ventures that does not otherwise constitute Debt of the REIT or any Consolidated
Entity. For purposes of the foregoing, (i) "Floating Rate Debt" means any Debt interest on which accrues at a floating rate (including any Fixed
Rate), except to the extent there is then in full force and effect an interest rate swap or "cap" agreement that does not expire or terminate prior to the maturity date with respect to such Debt that
entitles the obligor under such Debt to payments from the counterparty equal to, and payable at the
same time as, the floating rate payable on such Debt (or that portion thereof exceeding the "cap"), in return for payments by the obligor of fixed amounts to such counterparty, and (ii) the
REIT's pro rata share of Floating Rate Debt of any Unconsolidated Joint Venture shall be deemed equal to the product of (A) the Floating Rate
Debt of such Unconsolidated Joint Venture (other than Debt that is a Contingent Obligation of any Borrower Party), multiplied by (B) the
percentage of the total outstanding Capital Stock of such Person held by the REIT or any Consolidated Entity, expressed as a decimal. 

    Section 7.4.  Maximum Unsecured Debt.  At no time shall the aggregate outstanding
amount of Unsecured Debt of the REIT and the Consolidated Entities (other than (i) the Permitted Subordinated Debentures and (ii) the aggregate amount, not to exceed $25,000,000, of
Renovation LC Debt outstanding at such time and approved by the Agent, at its discretion, for exclusion from Unsecured Debt for the purposes of this Section 7.4) exceed the lesser of
(a) 83.33% of the aggregate Unencumbered Asset Value and (b) an amount equal to the sum of (i) 68.97% of the aggregate Unencumbered Asset Value  plus (ii) an amount not to exceed the
lesser of (A) $50,000,000 and (B) 25.0% of the aggregate Residual Value of all Wholly-Owned
Retail Properties. 

    Section 7.5.  Aggregate Leased Area of Real Properties in Unencumbered Pool.  As
of the last day of any fiscal quarter, the ratio (expressed as a percentage) of (i) the aggregate M&F Gross Leaseable Area of the Retail Properties included in the Unencumbered Pool that is
subject to a bona fide lease pursuant to which the contractually agreed rent is being paid by the tenant thereunder to (ii) the aggregate M&F Gross Leaseable Area of the Retail Properties
included in the Unencumbered Pool shall not be less than 85%; provided that the M&F Gross Leaseable Area of any Retail Property 

50

 

included in the Unencumbered Pool that constitutes a Retail Property Under Construction shall be excluded from the calculation provided for in clause (i) and (ii). 

    Section 7.6.  Restriction on Fundamental Changes.  The REIT and the Consolidated
Entities shall not enter into any merger, consolidation or reorganization or any sale of all or a substantial portion of the assets of the REIT and the Consolidated Entities, taken as a whole, or
liquidate, wind up or dissolve, except that: 

    7.6.1.  as long as no Default or Event of Default shall exist after giving effect to such merger or
consolidation, any Consolidated Entity (other than the Borrower) may be merged or consolidated with or into the Borrower; 

    7.6.2.  any Person may merge or consolidate with and into the Borrower or any other Consolidated Entity
and the Borrower or any other Consolidated Entity may merge or consolidate with and into any Person, in each case, with the prior written approval of the Required Lenders. 

    Section 7.7.  Transactions with Affiliates.  None of the REIT, the Borrower and
the other Consolidated Entities shall, directly or indirectly, enter into any transaction (including the purchase, sale, lease, or exchange of any property or the rendering of any service)
(i) in the case of a transaction to which the REIT is a party, with the Borrower or any Consolidated Entity or Unconsolidated Joint Venture, and (ii) in the case of any other
transaction, with any Affiliate of the Borrower or of any Consolidated Entity (other than a transaction with a Consolidated Entity that is not a Bankruptcy Remote Entity), in each case unless
(a) such transaction is not otherwise prohibited by this Agreement, (b) such transaction is in the ordinary course of business and (c) such transaction is on fair and reasonable
terms no less favorable to the Borrower, Consolidated Entity or Unconsolidated Joint Venture party thereto, as the case may be, than those terms which might be obtained at the time in a comparable
arm's length transaction with a Person who is not the REIT or such an Affiliate or, if such transaction is not one which by its nature could be obtained from such other Person, is on fair and
reasonable terms and was negotiated in good faith, provided that this Section 7.7. shall not restrict (a) dividends, distributions and
other payments and transfers on account of any shares of Capital Stock of any Consolidated Entity, provided that such dividends, distributions or other
payments are not otherwise prohibited by the terms of this Agreement or would result in a Default or an Event of Default, and (b) transactions between any Unconsolidated Joint Venture that is
not controlled by the REIT or by any Consolidated Entity and any Affiliate of such Unconsolidated Joint Venture that is not also an Affiliate of the REIT or of any Consolidated Entity. 

    Section 7.8.  Restricted Payments.  The Borrower shall not, and shall not permit
the REIT or any Subsidiary to, directly or indirectly, declare, pay or make, or agree to declare, pay or make, any Restricted Payment, except: 

    7.8.1.  dividends, distributions or payments (a) by the Borrower to the REIT (to the extent used
by the REIT for the payment of dividends permissible under Section 7.8.2. or 7.8.3.), or (b) by any Subsidiary to the Borrower or to a Guarantor; 

    7.8.2.  if no Default or Event of Default shall then exist or result from such Restricted Payment, the
REIT, the Borrower and any Subsidiary may pay or make Restricted Payments so long as the aggregate amount of all Restricted Payments pursuant to this Section 7.8.2. paid during the four Fiscal
Quarters immediately preceding the Fiscal Quarter in which such Restricted Payment is proposed to be made (treated as a single accounting period), together with the Restricted Payment proposed to be
made, does not exceed 95% of the aggregate amount of Funds From Operations for such period of four Fiscal Quarters, provided, however, that
notwithstanding the foregoing, the Borrower may acquire Capital Stock of the REIT in an aggregate amount not to exceed $75,000,000, so long as no Default or Event of Default shall then exist or result
from such acquisition; 

51

 

    7.8.3.  if a Default or Event of Default (other than a Default or Event of Default under
Section 8.1.1.) shall then exist or result from such Restricted Payment, the REIT may pay or make Restricted Payments only in the amount necessary to enable the REIT to meet the requirements
for taxation as a real estate investment trust under the Code, but in any event not in excess of 95% of the aggregate amount of Funds From Operations for the four Fiscal Quarters immediately preceding
the Fiscal Quarter in which such Restricted Payment is proposed to be made (treated as a single accounting period).. 

    Section 7.9.  ERISA.  No Borrower Party shall, and no Borrower Party shall permit
any current ERISA Affiliate to: 

    7.9.1.  engage in any Prohibited Transaction or engage in any conduct or commit any act or suffer to
exist any condition that could give rise to any Material excise tax, penalty, interest or liability under Sections 4971, 4972, 4975, 4976, 4977, 4979, 4980 or 4980B of the Code or Sections 502(c) or
502(i) of ERISA; 

    7.9.2.  permit the benefit liabilities (whether or not vested) under all Plans (excluding all Plans with
assets greater than or equal to liabilities (whether or not vested)) to exceed the current value of the assets of such Plans allocable to such benefits by more than $500,000; 

    7.9.3.  adopt or contribute to any Plan that is a Defined Benefit Plan; 

    7.9.4.  create or suffer to exist any liability with respect to Plans that are welfare plans within the
meaning of Section 3(1) of ERISA if, after immediately giving effect to such liability, the aggregate annualized cost with respect to such Plans for post retirement benefits for any fiscal year
would exceed $500,000; or 

    7.9.5.  Allow any investment in any Borrower Party by benefit plan investors to become significant
within the meaning of Department of Labor Regulation Section 2510.3-101(f). 

    Section 7.10.  Amendments of Charter and Bylaws.  No Borrower Party will make any
amendment of its charter, bylaws, partnership agreement or other organizational document, as the case may be, if such amendment could have a Material Adverse Effect or could otherwise be materially
disadvantageous to the Lender Parties without the prior written approval of the Required Lenders. 

    Section 7.11.  Payments with Respect to Permitted Subordinated Debentures.  The
REIT will not make any payment of principal (including redemption price) of or premium, if any, or interest on, or additional amounts or purchase price payable with respect to the Permitted
Subordinated Debentures (including any amounts payable upon repurchase at the election of the holders of such Permitted Subordinated Debentures upon the occurrence of a Designated Event, as such term
is defined in the Offering Circular for such Permitted Subordinated Debentures), unless (i) no Default or Event of Default under Section 8.1.1. or 8.1.7. and (ii) no other Event
of Default, then exists or would exist giving effect to such payment on a pro forma basis. 

    Section 7.12.  Acquisitions of Real Properties.  Neither the Borrower nor any
Consolidated Entity shall make any Acquisition, the gross purchase price of which exceeds 25% of the Gross Asset Value immediately prior to such Acquisition, without the prior written approval of the
Required Lenders. 

 
 

ARTICLE 8.
  
    EVENTS OF DEFAULT    
  

    Section 8.1.  Events of Default.  The occurrence of any one or more of the
following events, acts or occurrences shall constitute an event of default (an "Event of Default"): 

    8.1.1.  Failure to Make Payments.  The Borrower (i) shall fail to pay when
due any principal (whether at stated maturity, upon acceleration, upon required prepayment or otherwise) of any 

52

 

Advance or (ii) shall fail to pay interest on any Advance or any other amount payable under the Loan Documents within three Business Days of the date when due; or 

    8.1.2.  Default in Other Debt.  The REIT or any Consolidated Entity shall
(a) default in the payment (whether at stated maturity, upon acceleration, upon required prepayment or otherwise), beyond any period of grace provided therefor, of any principal of or interest
on any Non-Recourse Secured Debt with a principal amount in excess of $40,000,000 or any other Debt with a principal amount in excess of $1,000,000 or (b) be in default, breach or
violation, beyond any period of grace or notice provided therefor, of any other agreement, covenant, representation, warranty or obligation under any Non-Recourse Secured Debt with a
principal amount in excess of $40,000,000 or any other Debt with a principal amount in excess of $1,000,000 and as a result of such default, breach or violation the holder or holders of such Debt (or
a Person on behalf of such holder or holders) shall cause such Debt to become or be declared due and payable prior to its stated maturity, provided that
the foregoing shall not apply to Non-Recourse Debt of Unconsolidated Joint Ventures; or 

    8.1.3.  Breach of Certain Nonfinancial Covenants.  The Borrower shall fail to
perform, comply with or observe any agreement, covenant or obligation under Section 2.3., 6.1.4., 6.3. (insofar as such Section requires the preservation of the corporate existence of any
Borrower Party), 6.8., 6.9., 7.6., 7.7., 7.8., 7.10., 7.11. or 7.12.; or 

    8.1.4.  Breach of Certain Financial Covenants.  The Borrower shall fail to comply
with or observe any agreement, covenant or obligation under Section 7.1., 7.2., 7.3., 7.4. or 7.5. and such failure shall not have been remedied within 30 days after written notice
thereof from the Agent or any Lender; or 

    8.1.5.  Breach of Warranty.  Any representation or warranty or certification made
or furnished by any Borrower Party under this Agreement or the other Loan Documents or any agreement, instrument or document contemplated hereby and thereby shall prove to have been false or incorrect
in any material respect when made (or deemed made); or 

    8.1.6.  Other Defaults Under Agreement and Other Loan Documents.  Any Borrower
Party shall fail to perform, comply with or observe any agreement, covenant or obligation to be performed, observed or complied with by it under this Agreement (other than those provisions referred to
in Section 8.1.3. or 8.1.4. above) or under the other Loan Documents (other than a Letter of Credit Agreement) and such failure shall not have been remedied within 60 days after written
notice thereof from the Agent or any Lender, or there shall occur any "Event of Default" (as defined in the Letter of Credit Agreement); or 

    8.1.7.  Involuntary Bankruptcy; Appointment of Receiver, Etc.  There shall be
commenced against any Borrower Party or any Consolidated Entity an involuntary case seeking the liquidation or reorganization of any such Borrower Party or Consolidated Entity under Chapter 7 or
Chapter 11, respectively, of the Bankruptcy Code or any similar proceeding under any other Applicable Law or an involuntary case or proceeding seeking the appointment of a receiver, liquidator,
sequestrator, custodian, trustee or other officer having similar powers of any such Borrower Party or Consolidated
Entity or to take possession of all or a substantial portion of its property or to operate all or a substantial portion of its business, and any of the following events occur: (i) any such
Borrower Party or Consolidated Entity consents to the institution of the involuntary case or proceeding; (ii) the petition commencing the involuntary case or proceeding is not timely
controverted; (iii) the petition commencing the involuntary case or proceeding remains undismissed and unstayed for a period of 60 days (provided,
however, that, during the pendency of such period, the Lenders shall be relieved of the Commitments); or (iv) an order for relief shall have been issued or entered
therein; or 

    8.1.8.  Voluntary Bankruptcy; Appointment of Receiver, Etc.  Any Borrower Party
or any Consolidated Entity shall institute a voluntary case seeking liquidation or reorganization under Chapter 7 or Chapter 11, respectively, of the Bankruptcy Code or any similar proceeding under
any other 

53

 

Applicable Law, or shall consent thereto; or shall consent to the conversion of an involuntary case to a voluntary case; or shall file a petition, answer a complaint or otherwise institute any
proceeding seeking, or shall consent or acquiesce to the appointment of, a receiver, liquidator, sequestrator, custodian, trustee or other officer with similar powers of it or to take possession of
all or a substantial portion of its property or to operate all or a substantial portion of its business; or shall make a general assignment for the benefit of creditors; or shall generally not pay its
debts as they become due; or the Board of Directors (or respective governing body) of any Borrower Party or Consolidated Entity (or any committee thereof) adopts any resolution or otherwise authorizes
action to approve any of the foregoing; or 

    8.1.9.  Judgments and Attachments.  Any Borrower Party or any Consolidated Entity
shall suffer any money judgments, writs or warrants of attachment or similar processes which individually or in the aggregate involve an amount or value in excess of $1,000,000 and such judgments,
writs, warrants or other orders shall continue unsatisfied and unstayed for a period of 10 days unless the amount of such judgments, writs, warrants or attachments are fully covered by
insurance (other than deductibles substantially the same as those in effect on the Closing Date and provided that any deductible in excess of $100,000 is supported by a bond or letter of credit in at
least the amount by which such deductible exceeds $100,000) and the insurer has in writing accepted liability therefor; or a judgment creditor shall obtain possession of any material portion of the
assets of the REIT or any Consolidated Entity by any means, including, without limitation, levy, distraint, replevin or self-help; or 

    8.1.10.  ERISA Liabilities.  Any violation of Section 7.9.3. or 7.9.5.
shall occur; or 

    8.1.11.  Change of Control or Management.  Any of the following events occurs:
(i) the Principal Investors no longer control, directly or indirectly, at least 5% of the Capital Stock of the Borrower (which percentage shall be subject to adjustment to give effect to any
dilution of such holdings by virtue of the
issuance of any Capital Stock of the Borrower or the REIT after the Closing Date) or (ii) Arthur Coppola is no longer a Senior Officer, or both of Edward Coppola and Thomas E. O'Hern are no
longer Senior Officers, of the REIT and the Borrower, provided that in the event of the death, incapacitation, retirement or dismissal of Arthur
Coppola, Edward Coppola or Thomas E. O'Hern, such event shall not constitute an Event of Default under this Section 8.1.11. unless the REIT and the Borrower have not replaced such officer or
officers with an officer or officers satisfactory to the Required Lenders within 180 days after such occurrence; or 

    8.1.12.  General Partner.  The REIT shall cease to be the general partner of the
Borrower; or 

    8.1.13.  Invalidity of Guaranty or Subordination.  The Guaranty or the
subordination provisions of Section 6.9. shall for any reason be revoked or invalidated, or otherwise cease to be in full force and effect, or any Guarantor or Subordinated Creditor shall
contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder; or 

    8.1.14.  Change of Tax Status.  

    8.1.14.1.  The REIT shall either determine in good faith or receive written notice from the relevant
taxing authority that the REIT does not conform or no longer conforms to the requirements for qualification as a real estate investment trust under the Code (except as a result of the enactment of any
Applicable Law with which the REIT cannot or has determined in good faith not to comply); or 

    8.1.14.2.  The Borrower or any Guarantor shall either determine in good faith or receive written notice
from the relevant taxing authority that the Borrower or any Guarantor does not conform or no longer conforms to the requirements for qualification as a partnership under the Code. 

54

 

    Section 8.2.  Remedies.  Upon the occurrence of an Event of Default: 

    8.2.1.  If an Event of Default occurs under Section 8.1.7. or 8.1.8., then the Commitments shall
automatically and immediately terminate, and the obligation of the Lenders to make any Advances and of the Agent Bank to issue any Letter of Credit hereunder shall cease, and the unpaid principal
amount of and any accrued interest on all Advances shall automatically become immediately due and
payable, without presentment, demand, protest, notice or other requirements of any kind, all of which are hereby expressly waived by the Borrower. 

    8.2.2.  If an Event of Default occurs under Section 8.1. hereof, other than under
Section 8.1.7. or 8.1.8., (a) the Agent shall, at the request of the Required Lenders, by written notice to the Borrower, declare that the Commitments shall be terminated on the date
that is 60 days after the date of such notice or on such earlier date as may be determined by the Required Lenders, whereupon the obligation of the Lenders to make any Advance and of the Agent
Bank to issue any Letter of Credit hereunder shall cease on such day, and/or (b) the Agent shall, at the request of the Required Lenders, by written notice to the Borrower, declare the unpaid
principal amount of all Advances together with any and all accrued interest thereon to be, and the same shall become, due and payable on the date that is 60 days after the date of such notice
or on such earlier date as may be determined by the Required Lenders, without presentment, demand, protest, any additional notice whatsoever or other requirements of any kind, all of which are hereby
expressly waived by the Borrower. 

    Section 8.3.  Rescission.  At any time after the Advances shall have been
declared due and payable pursuant to Section 8.2.2. or a demand shall have been made pursuant to Section 8.4, the Required Lenders, by written notice by the Agent to the Borrower, may
rescind and annul any such declaration or demand and its consequences, provided the Required Lenders hold 662/3% of the outstanding
Advances. No rescission and annulment under this Section 8.3. will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 

    Section 8.4.  Actions in Respect of Letters of Credit.  

    8.4.1.  Letter of Credit Collateral Account.  If, at any time and from time to
time, any Letter of Credit shall have been issued hereunder and an Event of Default shall have occurred and be continuing, then, upon the occurrence and during the continuation thereof, the Agent
shall at the request of the Required Lenders, whether in addition to the taking by the Agent of any of the actions described in this Article 8 or otherwise, make a demand upon the Borrower to,
and forthwith upon such demand (but in any event within ten days after such demand) the Borrower shall, (i) pay to the Agent, on behalf of the Lender Parties, in same day funds at the Agent's
office designated in such demand, for deposit in a special interest-bearing cash collateral account (the "Letter of Credit Collateral Account") to be
maintained in the name of "The Macerich Partnership, L.P., who executed a Security Agreement Rights to Payment in favor of Wells Fargo Bank, National Association, as Agent for the Lender Parties" and
under the Agent's sole dominion and control at such place as shall be designated by the Agent, an amount equal to the amount of the Letter of Credit Liability under the Letters of Credit, and
(ii) execute and deliver to the Agent all such documents, instruments and/or certificates as the Agent shall reasonably request in order to perfect, and maintain a perfected security interest
in, the Letter of Credit Collateral (including, without limitation, a Security Agreement Rights to Payment, Uniform Commercial Code financing statements and any notice required to perfect the Agent's
security interest in the Letter of Credit). The Borrower authorizes and empowers the Agent, as its attorney-in-fact, and
as its agent, irrevocably, with full power of substitution for it and in its name, following the occurrence of an Event of Default, to give any authorization, to furnish any information, to make any
demands, to execute and/or deliver any documents, instruments and/or certificates (including, without limitation, a Security Agreement Rights to Payment, Uniform Commercial Code financing statements
and notices required to perfect the Agent's security interest in the Letter of Credit Collateral) and to take any and all other action on behalf of and in the name of the Borrower which in 

55

 

the opinion of the Agent may be necessary or appropriate to be given, furnished, made, exercised or taken to perfect or maintain the perfection of the Agent's security interest in the Letter of Credit
Collateral. This power-of-attorney is irrevocable and coupled with an interest, and any similar or dissimilar powers heretofore given by the Borrower in respect of the Letter
of Credit Collateral to any other Person are hereby revoked. 

    8.4.2.  Pledge of Letter of Credit Collateral.  The Borrower hereby pledges,
assigns and grants to the Agent, as collateral agent for its benefit and the ratable benefit of the other Lender Parties a lien on and a security interest in, the following collateral (the
"Letter of Credit Collateral"): 

    8.4.2.1.  the Letter of Credit Collateral Account, all cash deposited therein and all certificates and
instruments, if any, from time to time representing or evidencing the Letter of Credit Collateral Account; 

    8.4.2.1.  all notes, certificates of deposit and other instruments from time to time hereafter delivered
to or otherwise possessed by the Agent for or on behalf of the Borrower in substitution for or in respect of any or all of the then existing Letter of Credit Collateral; 

    8.4.2.1.  all interest, dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of the then Existing Letters of Credit Collateral; and 

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

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

    8.4.3.  Application of Funds in Letter of Credit Collateral Account.  The
Borrower hereby authorizes the Agent for the ratable benefit of the Lenders to apply, from time to time after funds are deposited in the Letter of Credit Collateral Account, funds then held in the
Letter of Credit Collateral Account to the payment of any amounts, in such order as the Agent may elect, as shall have become due and payable by the Borrower to the Lender Parties in respect of the
Letters of Credit. 

    8.4.4.  Limitation on the Borrower's Rights.  Neither the Borrower nor any Person
claiming or acting on behalf of or through the Borrower shall have any right to withdraw any of the funds held in the Letter of Credit Collateral Account, except as provided in Section 8.4.8
hereof. 

    8.4.5.  Negative Covenants.  The Borrower agrees that it will not (i) sell
or otherwise dispose of any interest in the Letter of Credit Collateral or (ii) create or permit to exist any lien, security interest or other charge or encumbrance upon or with respect to any
of the Letter of Credit Collateral, except for the security interest created by this Section 8.4. 

    8.4.6.  Rights of Agent on Event of Default.  If any Event of Default shall have
occurred and be continuing: 

    8.4.6.1.  The Agent may, in its sole discretion, without notice to the Borrower except as required by
law and at any time from time to time, charge, set off or otherwise apply all or any part of first, (x) amounts previously drawn on any Letter of
Credit that have not been reimbursed by the Borrower and (y) any Letter of Credit Liability that is then due and payable, and second, any other
unpaid Obligations then due and payable against the Letter of Credit Collateral Account or any part thereof, in accordance with Section 2.10.5. The rights of the Agent under this
Section 8.4 are in addition to any rights and remedies which any Lender may have. 

    8.4.6.2.  The Agent may also exercise, in its sole discretion, in respect of the Letter of Credit
Collateral Account, in addition to the other rights and remedies provided herein or otherwise available to it, all the rights and remedies of a secured party upon default under the Uniform Commercial
Code in effect in the State of California at that time. 

56

  

    8.4.7.  Standard of Care.  The Agent shall be deemed to have exercised reasonable
care in the custody and preservation of the Letter of Credit Collateral if the Letter of Credit Collateral is accorded treatment substantially equal to that which the Agent accords its own property,
it being understood that, assuming such treatment, the Agent shall not have any responsibility or liability with respect thereto. 

    8.4.8.  Cure.  At such time as all Events of Default have been cured or waived in
writing, all amounts remaining in the Letter of Credit Collateral Account shall be promptly returned to the Borrower. Absent such cure or written waiver, any surplus of the funds held in the Letter of
Credit Collateral Account and remaining after payment in full of all of the Obligations of the Borrower hereunder and under any other Loan Document after the Maturity Date shall be paid to the
Borrower or to whomsoever may be lawfully entitled to receive such surplus. 

 
 

ARTICLE 9.
  
    THE AGENT AND THE LENDERS    
  

    Section 9.1.  Authorization and Action.  

    9.1.1.  Each Lender hereby irrevocably appoints and authorizes the Agent Bank to act as its agent
hereunder and under the other Loan Documents, to execute and deliver or accept, on its behalf, the other Loan Documents and any other documents, instruments and agreements related thereto or hereto to
take such action on its behalf under the provisions hereof and thereof and to exercise such rights, remedies, powers and privileges hereunder and thereunder as are delegated to the Agent by the terms
hereof and thereof, together with such rights, remedies, powers and privileges as are reasonably incidental thereto. 

    9.1.2.  Except for any matters expressly subject to the consent or approval of the Agent under the Loan
Documents, the Agent shall not, without the prior approval of the Required Lenders (or, as provided in Section 10.2., all of the Lenders), waive any default or otherwise amend this Agreement or
any other Loan Documents. The Agent will, to the extent practicable under the circumstances, consult with the other Lender Parties prior to taking action on their behalf under the Loan Documents and
in acting as their Agent thereunder. The Agent will not take any action contrary to the written direction of
Required Lenders, will take any lawful action not contrary to the provisions of the Loan Documents prescribed in written instructions of the Required Lenders (or, as provided in Section 10.2.,
all the Lenders) and, as to any matters not expressly provided for by the Loan Documents (including enforcement or collection), may decline to take any action, except upon the written instructions of
the Required Lenders (or, as provided in Section 10.2., all the Lenders). If such instructions are requested reasonably promptly, the Agent shall be absolutely entitled to refrain from taking
any action and shall not have any liability to any Borrower Party or any Lender for refraining from taking any action until it shall have received such instructions; provided,
however, that the Agent shall in no event be required to take or refrain from taking any action that would, in the Agent's opinion, be inconsistent with the Agent's practice in
similar situations when acting solely for its own account or be contrary to the provisions of any Loan Document or Applicable Law. 

    9.1.3.  The Agent shall not have any duties or responsibilities except those expressly set forth in the
Loan Documents. The Agent shall not be required to exercise any right, power, remedy or privilege granted to it in any Loan Document, to ascertain or inquire whether any Default or Event of Default
has occurred and is continuing, or to inspect the property (including the books and records) of any Borrower Party or to take any other affirmative action, except as provided in Sections 8.2. and 8.4,
or unless requested or directed to do so in accordance with the provisions of Section 9.1.2. 

    9.1.4.  The duties of the Agent shall be mechanical and administrative in nature. The Agent shall not
have by reason of this Agreement a fiduciary relationship in respect of any other Lender Party. 

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Except for notices, reports and other documents and information expressly required to be furnished by the Agent for the Lender Parties hereunder, the Agent shall not have any duty or responsibility to
provide any Lender Party with any credit or other information concerning the affairs, financial condition or business of any Borrower Party that may come into the possession of the Agent or any of its
Affiliates. 

    Section 9.2.  Exculpation; Agent's Reliance; Etc.  Neither the Agent nor any of
its directors, officers, agents, attorneys or employees shall be liable to any Borrower Party or any other Lender Party for any action taken or omitted to be taken by it or them under or in connection
with any Loan Document (a) with the consent or at the request of the Required Lenders (or, as provided in Section 10.2., all the Lenders), or (b) in any other circumstances,
except for its or their own gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction. The Agent makes no warranty or representation to any other
Lender Party and shall not be responsible to any other Lender Party for any recitals, statements, warranties or representations made in, or in connection with, any Loan Document or for the execution,
effectiveness, genuineness, validity, enforceability, collectibility, or sufficiency of any Loan Document or any financial information, opinions of counsel or other documents executed and delivered
pursuant thereto, or for the financial condition of any Borrower Party. The Agent shall not be responsible to any Lender for the satisfaction of any condition
specified in Article 4., except receipt of items required to be delivered to the Agent. The Agent may treat the payee of any Note as the holder thereof until the Agent receives the related
Assignment and Acceptance signed by such holder and the assignee and in form satisfactory to the Agent. The Agent shall be entitled to rely upon any notice, certificate or other writing believed by
the Agent to be genuine and correct and to have been signed or sent by the proper Person or Persons. The Agent shall be entitled to consult with legal counsel, independent public accountants and other
experts selected by the Agent and to act in reliance upon the advice of such counsel and other experts concerning its actions and duties hereunder. 

    Section 9.3.  Agent and Affiliates.  In its capacity as a Lender and issuer of
Letters of Credit, the Agent Bank shall have the same rights, powers and obligations under this Agreement and the other Loan Documents as any other Lender and may exercise or refrain from exercising
the same as though it were not the Agent or such issuer, including the right to give or deny consent to any action requiring consent or direction of the Required Lenders or all the Lenders. The Agent
Bank and its Affiliates may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, any Borrower Party, any Subsidiary of a Borrower
Party and any Affiliate of any Borrower Party, all as if the Agent were not the Agent and without any duty to account therefor to the Lenders. The Agent Bank shall be entitled to receive from the
Borrower its fees or portions thereof in connection with this transaction without any liability to account therefor to any other Lender, except as the Agent Bank may have expressly agreed. 

    Section 9.4.  Lender Credit Decision.  Each Lender Party acknowledges that it
has, independently and without reliance upon the Agent or any other Lender Party and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to
enter into this Agreement. Each Lender Party also acknowledges that it will, independently and without reliance upon the Agent or any other Lender Party and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents. 

    Section 9.5.  Indemnification.  The Agent shall in no event be required to take
any action under the Loan Documents or in relation thereto unless it shall first be indemnified to its satisfaction by the other Lender Parties against any and all liability and expense that it may
incur by reason of taking any such action. Each Lender agrees to indemnify and hold the Agent harmless (to the extent not promptly paid or reimbursed by the Borrower), ratably according to their
respective Commitments, from and against any and all (a) costs, expenses and other amounts incurred by the Agent otherwise payable by 

58

 

the Borrower pursuant to Section 10.1. and (b) Indemnified Liabilities that may be imposed on, incurred by, or asserted against the Agent, except to the extent they are finally adjudged
by a court of competent jurisdiction to have directly resulted from the gross negligence or willful misconduct of the Agent. Without limitation of the foregoing, each Lender agrees to reimburse the
Agent promptly upon
demand for its ratable share of any out-of-pocket expenses (including outside counsel fees) incurred by the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, the Loan
Documents, to the extent that the Agent is not promptly reimbursed for such expenses by the Borrower. 

    Section 9.6.  Successor Agent.  The Agent may resign at any time as Agent under
the Loan Documents by giving not less than 30-days' written notice thereof to the Lenders and the Borrower and the Agent may be removed at any time with cause by written action of all
Lenders (other than the Agent) delivered to the Agent. Upon any such resignation or removal, the Required Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have
been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent's notice of resignation or the removal of the Agent, then the
retiring or removed Agent may, on behalf of the other Lender Parties, appoint a successor Agent, which shall be a financial institution having a combined capital and surplus of at least $100,000,000,
or a branch or agency of such a financial institution, organized or licensed to do business under the laws of the United States of America or any State thereof, and which shall have a minimum rating
of "Baa-2" by Moody's and a minimum long-term debt rating of "BBB" by S&P. Upon the acceptance of any appointment as the Agent by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged of its duties and obligations under the Loan
Documents. Upon any retiring Agent's resignation or removal, the provisions of this Article 9. (as well as other expense reimbursement, indemnification and exculpatory provisions in the other
Loan Documents) shall continue in effect for its benefit as to any actions taken or omitted by it while it was Agent. 

    Section 9.7.  Excess Payments.  If any Lender shall obtain any payment or other
recovery (whether voluntary, involuntary, by application of setoff or otherwise) on account of any Obligations in excess of its pro rata share of
payments and other recoveries on account of such Obligations obtained by all Lenders, such Lender shall purchase from the other Lenders such participations in such Obligations held by them as shall be
necessary to cause such purchasing Lender to share the excess payment or other recovery ratably with each of the other Lenders; provided, however, that
if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing Lender, the purchase shall be rescinded and the purchase price restored to such Lender to the
extent of such recovery, but without interest. The Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 9.7. may, to the fullest extent
permitted by Applicable Law, exercise all of its rights of payment (including setoff) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the
amount of such participation. 

    Section 9.8.  Lender Parties.  The provisions of this Article 9. are
solely for the benefit of the Agent and the other Lender Parties, and the Borrower shall not have any rights to rely on or enforce any of the provisions hereof (except that the provisions of Sections
9.6. are also for the benefit of the Borrower). In performing its functions and duties under the Loan Documents, the Agent shall act solely as agent
of the Lenders and does not assume and shall not be deemed to have assumed any obligation toward or relationship of agency or trust with or for the Borrower. 

    Section 9.9.  Default By The Borrower; Acceleration.  The Agent will send to each
Lender copies of any notices of a Default or an Event of Default sent by the Agent to the Borrower under the terms of the Loan Documents concurrently with sending the same to the Borrower. In the
event of any Default or Event of Default of which the Agent has actual knowledge, the Agent shall (as soon as is practicable 

59

 

under the circumstances) consult with the Lenders in an effort to determine a mutually acceptable course of action with respect to the Default or Event of Default. The Agent may deliver to the Lenders
a written recommendation of a course of action (the "recommended course of action"), in which case each Lender shall either approve such action in writing or object in writing to such action within
thirty (30) days (or such lesser period as specified in the notice from the Agent) following such notice. Failure to deliver a written objection within thirty (30) days (or such lesser
period which will not be less than five (5) business days) will be deemed to constitute an approval. The Agent may take the recommended course of action if consented or approved as provided
above by the Required Lenders (or, as provided in Section 10.2., all Lenders), provided that no rights shall be released without the consent of
all Lenders. In furtherance of the foregoing, and notwithstanding anything herein to the contrary, each Lender hereby appoints and constitutes the Agent its agent with full power and authority to
exercise in the name of, and on behalf of each Lender, any and all rights and remedies which each Lender may have with respect to, and to the extent necessary under Applicable Law for, the enforcement
of the Loan Documents, or which the Agent may have as a matter of law. It is understood and agreed that in the event the Agent determines it is necessary to engage counsel for the Lenders from and
after the occurrence of an Event of Default, said counsel shall be selected by the Agent and written notice of the same shall be delivered to the Lenders. 

    Section 9.10.  Payments; Availability of Funds; Certain Notices.  

    9.10.1.  If the Agent shall fail to deliver to any other Lender Party its share of any payment received
from the Borrower as and when required by Section 2.9., the Agent shall pay to such Lender its share of such payment together with interest on such amount at the Federal Funds Rate, for each
day from the date such amount was required to be paid to such Lender until the date the Agent pays such amount to such Lender, calculated as set forth in Section 2.4.4. 

    9.10.2.  Unless (a) the Agent shall have been notified by a Lender prior to the date upon which
an Advance is to be made pursuant to Section 2.1. or (b) the Agent shall have been notified by the Borrower prior to the date on which the Borrower is required to make any payment
hereunder, that such Lender or the Borrower, as the case may be (the "Obligated Party"), does not intend to make
available to the Agent the Obligated Party's portion of such Advance or such payment, the Agent may assume that the Obligated Party will make such amount available to the Agent on such date and the
Agent may, in reliance upon such assumption (but shall not be required to), make available to the Borrower (in the case of an Advance) or the Lenders (in the case of a payment by the Borrower) a
corresponding amount. If such corresponding amount is not in fact made available to the Agent by the Obligated Party, the Agent shall be entitled to recover such amount on demand from the Obligated
Party (or, in the case of an Advance, if the Lender that is the Obligated Party fails to pay such amount forthwith upon such demand, from the Borrower). Such amount shall be payable together with
interest thereon from the day on which such corresponding amount was made available by the Agent to the Lender or the Borrower, as applicable, to the date of payment by the Obligated Party (or the
Borrower, as applicable), at a rate of interest equal to (i) in the case of any payment by any other Lender Party, the Federal Funds Rate, and (ii) in the case of any payment by the
Borrower, the interest rate applicable to the Advance. In addition, no Lender that fails to make any such payment or otherwise fails to perform any of its obligations hereunder within the time frame
specified for payment or performance or, if no time frame is specified, if such failure continues for five Business Days after notice from the Agent (each a "Defaulting
Lender") shall have the right to vote on, or be considered to be a "Lender" with respect to, any matter for which a vote of the Required Lenders or all or any Lenders is
required or may be taken under this Agreement during any period commencing on the date upon which such Lender Party is required to make such payment or render such performance through the date upon
which such payment, together with the interest thereon at the Federal Funds Rate, is made or such performance is rendered. Furthermore, (a) until such time as a Defaulting Lender has funded its  pro rata share of a Borrowing or a participation in a Letter of Credit, or until all other 

60

 

Lender Parties have received payment in full (whether by repayment or prepayment) of all their Advances included in such Borrowing or used to fund such participation, and all interest and Fees due in
respect thereof (collectively, the "Senior Obligations"), (i) all of the Obligations (including principal, interest and Fees) owing to such
Defaulting Lender hereunder shall be subordinated in right of payment to the prior payment in full of all Senior Obligations, and (ii) all amounts paid by any Borrower Party or otherwise due to
be applied to the Obligations owing to the Defaulting Lender pursuant to the terms hereof if due with respect to Advances, shall be distributed by the Agent to the other Lender Parties in accordance
with their respective pro rata shares (recalculated for purposes hereof to exclude the Defaulting Lender's Commitment), until all Senior Obligations
have been paid in full. This provision governs only the relationship among the Agent, each Defaulting Lender, and the other Lender Parties; nothing hereunder shall limit the obligation of any Borrower
Party to repay all Advances and other Obligations in accordance with the terms of this Agreement and the other Loan Documents. The Agent shall be entitled to (1) withhold or set off and to
apply to the payment of the defaulted amount and any related interest any amounts to paid to such Defaulting Lender under this Agreement and (2) bring an action or suit against such Defaulting
Lender in a court of competent jurisdiction to recover the defaulted amount and any related interest. The provisions of this section shall apply and be effective regardless of whether an Event of
Default occurs and is then continuing, and notwithstanding (i) any other provision of this Agreement to the contrary, (ii) any instruction of any Borrower Party as to its desired
application of payments or (iii) the suspension of such Defaulting Lender's right to vote on matters which are subject to the consent or approval of Required Lenders or all or any Lenders. In
addition, the Defaulting Lender shall indemnify, defend and hold the Agent and each of the other Lender Parties harmless from and against any and all liabilities, cost and expenses, plus interest
thereon at the Post-Default Rate, which they may sustain or incur by reason of or as a
direct consequence of the Defaulting Lender's failure or refusal to abide by its obligations under this Agreement. 

    9.10.3.  The Agent shall promptly notify the Lenders by telex or telecopy (or telephone, in the case of
notice contemplated by Section 2.4.) of each interest period chosen by the Borrower, the LIBO Rate for each interest period (and the relevant interest rate), the date of any expected payment
and all other material notices transmitted by the Borrower. 

    Section 9.11.  Obligations of Lender Parties Several; Enforcement by the Agent.  

    9.11.1.  Each Lender Party's obligations hereunder are several, and not joint or joint and several. The
failure of any Lender Party to make any Advance or otherwise to perform its obligations hereunder will not increase the obligations of any other Lender Party. Notwithstanding the foregoing, any Lender
may assume, but shall have no obligation to any Person to assume, any non-performing Lender's obligation to make an Advance. Nothing contained in this Agreement and no action taken by the
Agent or any other Lender Party pursuant to this Agreement shall be deemed to constitute the Agent and any other Lender Party to be a partnership, an association, a joint venture or any other kind of
entity. 

    9.11.2.  Each Lender agrees that, except with the prior written consent of the Agent, no Lender Party
shall have any right individually to enforce any Loan Document or any provision thereof, or make demand thereunder, it being agreed that such rights and remedies may only be exercised by the Agent for
the ratable benefit of the Lenders upon the terms of this Agreement. 

    Section 9.12.  Reply of Lenders.  Each Lender shall promptly reply to any
communication from the Agent to the Lenders requesting the Lenders' determination, consent, approval or disapproval under this Agreement, but in any event no later than ten Business Days (or such
other period as may be required under this Agreement to respond) after receipt of the request therefor by the Agent for those matters requiring the consent of the Lenders. Except as otherwise provided
in this Agreement, including Section 9.9., if any Lender fails to reply within the applicable time periods, such Lender shall 

61

 

be deemed to have given its consent or approval to the action or actions recommended by the Agent with respect to the matter for which the Agent requested such Lender's determination, consent,
approval or disapproval. 

 
 

ARTICLE 10.
  
    MISCELLANEOUS    
  

    Section 10.1.  Expenses; Indemnity.  The Borrower shall pay on demand: 

    10.1.1.  any and all reasonable attorneys' fees and disbursements (including allocated costs of
in-house counsel) and out-of-pocket cost and expenses incurred by the Agent in connection with the development, drafting and negotiation of this Agreement and the
other Loan Documents, the administration hereof and thereof (including any amendments), the closing of the transactions contemplated thereby and the syndication of the credit facilities hereunder; and 

    10.1.2.  all costs and expenses (including fees and disbursements of in-house and other
attorneys, appraisers and consultants) of the Lender Parties in any workout, restructuring or similar arrangements or, after a Default, in connection with the protection, preservation, exercise or
enforcement of any of the terms of the Loan Documents or in connection with any foreclosure, collection or bankruptcy proceedings. 

    10.1.3.  The Borrower shall indemnify, defend and hold harmless each Lender Party and the officers,
directors, employees, agents, attorneys, affiliates, successors and assigns of each Lender Party (collectively, the "Indemnitees") from and against
(a) any and all transfer taxes, documentary taxes, assessments or charges made by any Governmental Authority by reason of the execution and delivery of the Loan Documents or the making of the
Advances or the issuance of any Letter of Credit, and (b) any and all liabilities, losses, damages, penalties, judgments, claims, costs and expenses of any kind or nature whatsoever (including
reasonable attorneys' fees and disbursements in connection with any actual or threatened investigative, administrative or judicial proceeding, whether or not such Indemnitee shall be designated a
party thereto) that may be imposed on, incurred by or asserted against such Indemnitee, in any manner relating to or arising out of the Loan Documents, the Advances, Letters of Credit, the use or
intended use of the proceeds of the Advances or Letters of Credit (including the failure of the Agent Bank to honor a drawing as a result of any act or omission, whether rightful or wrongful, of any
Governmental Authority) (the "Indemnified Liabilities"); provided that (i) no Indemnitee shall
have the right to be indemnified or held harmless hereunder for its own gross negligence or willful misconduct, as determined by a final judgment of a court of competent jurisdiction, and
(ii) Indemnified Liabilities shall include amounts attributable to the passive or active negligence of any Lender Party. 

    10.1.4.  To the extent that the undertaking to indemnify and hold harmless set forth in
Section 10.1.3. may be unenforceable because it is violative of any Applicable Law or public policy, the Borrower shall make the maximum contribution to the payment and satisfaction of each of
the Indemnified Liabilities that is permissible under Applicable Law. All Indemnified Liabilities shall be payable on demand. 

    Section 10.2.  Waivers; Modifications in Writing.  

    10.2.1.  No amendment of any provision of this Agreement or any other Loan Document (including a waiver
thereof or consent relating thereto) shall be effective unless the same shall be in writing and signed by the Agent and the Required Lenders. Notwithstanding the foregoing, 

    10.2.1.1.  no amendment that has the effect of (a) reducing the rate or amount, or extending the
stated maturity or due date, of any amount payable by the Borrower to any Lender Party under the Loan Documents, (b) increasing the amount, or extending the stated termination or 

62

 

reduction date, of any Lender's Commitment hereunder or subjecting any Lender Party to any additional obligation to extend credit, (c) altering the rights and obligations of the Borrower to
prepay the Advances, (d) releasing any Borrower Party under the Guaranty, (e) changing this Section 10.2. or the definition of the term "Required Lenders," (f) amending the
definitions of "Gross Asset Value," "Unencumbered Asset Value" or "Unencumbered Asset," or (g) approving the forgiveness of interest, principal or Fees shall be effective unless the same shall
be signed by or on behalf of all of the Lenders; 

    10.2.1.2.  no amendment that has the effect of (a) increasing the duties or obligations of the
Agent, (b) increasing the standard of care or performance required on the part of the Agent, or (c) reducing or eliminating the indemnities or immunities to which the Agent is entitled
(including any amendment of this Section 10.2.1.2.), shall be effective unless the same shall be signed by or on behalf of the Agent; and. 

    10.2.1.3.  no amendment that has the effect of (a) increasing the duties or obligations of the
Agent Bank with respect to Letters of Credit, (b) increasing the standard of care or performance required on the part of the Agent Bank with respect to Letters of Credit, or (c) reducing
or eliminating the indemnities or immunities to which the Agent Bank with respect to Letters of Credit is entitled (including any amendment of this Section 10.2.1.3.), shall be effective unless
the same shall be signed by or on behalf of the Agent Bank. 

    10.2.2.  Notwithstanding anything to the contrary, (a) the Borrower may, by written notice
furnished to the Agent, amend Schedules 1.1C, 5.4. and 10.4. to the extent the changes to such Schedules
are expressly permissible under this Agreement, and (b) a Guarantor may be released hereunder as specified in the definition of "Unencumbered Asset." 

    10.2.3.  Any waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given. No notice to or demand on any Borrower Party in any case shall entitle such Borrower Party to any other or further notice or demand in similar or other circumstances. Any
amendment effected in accordance with this Section 10.2. shall be binding upon each present and future Lender Party and the Borrower. 

    Section 10.3.  Cumulative Remedies; Failure or Delay.  The rights and remedies
provided for under this Agreement are cumulative and are not exclusive of any rights and remedies that may be available to the Lender Parties under Applicable Law or otherwise. No failure or delay on
the part of any Lender Party in the exercise of any power, right or remedy under the Loan Documents shall impair such power, right or remedy or operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude other or further exercise thereof or of any other power, right or remedy. 

    Section 10.4.  Notices, Etc.  All notices and other communications under this
Agreement shall be in writing and (except for financial statements, other related informational documents and routine communications, which may be sent by first-class mail, postage prepaid) shall be
personally delivered or sent by prepaid courier, by overnight mail, by overnight, registered or certified mail (postage prepaid), or by prepaid telex, telecopy or telegram, and shall be deemed given
when received by the intended recipient thereof. Unless otherwise specified in a notice sent or delivered in accordance with this Section 10.4., all notices and other communications shall be
given to the parties hereto at their respective addresses (or to their respective telex or telecopier numbers) indicated on Schedule 1.1B (in the
case of the Lender Parties) or 10.4. (in the case of the Borrower Parties). 

    Section 10.5.  Successors and Assigns.  

    10.5.1.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. The Borrower Parties may not assign or transfer any interest hereunder without the prior written consent of each Lender Party. 

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    10.5.2.  Each Lender shall have the right at any time to assign (an
"Assignment") all or any portion of such Lender's Commitment, Advances or participations in Letters of Credit to one or more banks or other financial
institutions each having a combined capital and surplus of at least $100,000,000, a minimum long-term debt rating of "Baa-2" by Moody's and a minimum long-term debt
rating of "BBB" by S&P, at the time of such assignment (or participation, as the case may be), and which have not been involved in material litigation with the Agent regarding an assigned,
participated, or syndicated credit (an "Eligible Assignee"); provided, however, that (a) each
Assignment of any Commitment shall be of a portion of the Commitments at least equal to $10,000,000 and, unless otherwise agreed by the Agent, each assignment shall be of a constant, and not a
varying, percentage of all of such Lender's rights and obligations under this Agreement and the other Loan Documents; (b) no Assignment (other than an Assignment to a Person that is then a
Lender) shall be effective without the consent of the Agent and the Borrower, which consents shall not be unreasonably withheld or delayed, and which consents will not be required if a Default or
Event of Default exists; (c) the parties to the Assignment shall execute and deliver to the Agent an Assignment and Acceptance substantially in the form of  Exhibit F (an "Assignment and Acceptance"); and (d) the assignee shall pay to the Agent a
processing and recordation fee of $3,000. From and after the date on which the conditions in the foregoing clauses and the Assignment and Acceptance have been satisfied, the assignee shall be a
"Lender" hereunder and, to the extent that rights and obligations hereunder have been assigned to it, shall have the rights and obligations (including the obligation to participate in Letters of
Credit) of the assigning Lender hereunder, and the assigning Lender shall, to the extent that rights and obligations hereunder have been assigned by it, relinquish its rights and be released from its
obligations under this Agreement (and, in the case of an Assignment covering all or the remaining portion of the assigning Lender's rights and obligations under this Agreement, cease to be a party
hereto). Notwithstanding anything herein to the contrary, for so long as Wells Fargo Bank, National Association is the Agent under this Agreement the Commitment of Wells Fargo Bank, National
Association shall not be less than the Commitment of the Lender having the second largest Commitment. 

    10.5.3.  Each Lender shall have the right at any time to grant or sell participations (each a
"Participation") in all or any portion of such Lender's Commitment, Advances or participations in Letters of Credit to one or more Eligible Assignees,
subject to the terms and conditions set forth in this Section 10.5.3. If the Lender sells or grants a Participation, (a) such Lender shall make and receive all payments for the account
of its participant, (b) such Lender's obligations under this Agreement shall remain unchanged, (c) such Lender shall continue to be the sole holder of the Note or Notes and other Loan
Documents subject to the Participation and shall have the sole right to enforce its rights and remedies under the Loan Documents, (d) the Borrower shall continue to deal solely and directly
with such Lender in connection with such Lender's rights and obligations under the Loan Documents, and (e) the Participation agreement shall not restrict such Lender's ability to agree to any
amendment of the terms of the Loan Documents, or to exercise or refrain from exercising any powers or rights that such Lender may have under or in respect of the Loan Documents, shall be limited to
the right to consent to any (A) reduction of the rate or amount, or any extension of the stated maturity or due date, of any principal, interest or Fees payable by the Borrower and subject to
the Participation or (B) increase in the amount or extension of the stated termination or reduction date of the affected Commitment. A Participant shall have the rights of the Lenders under
Sections 2.11. and 2.12., subject to the obligations imposed by such Sections; provided that amounts payable to any Participant shall not exceed the
amounts that would have been payable under such Sections to the Lender granting the Participation,
had such Participation not been granted, unless the Participation is made with the prior written consent of the Borrower. 

    10.5.4.  Anything in this Agreement to the contrary notwithstanding, and without the need to comply with
any of the formal or procedural requirements of this Agreement, including Sections 10.5.2. or 10.5.3., any Lender may at any time and from time to time pledge and assign all or any portion of 

64

 

its rights under all or any of the Loan Documents to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from its obligations thereunder. To facilitate any
such pledge or assignment, Agent shall, at the request of such Lender, enter into a letter agreement with the Federal Reserve Bank in, or substantially in, the form of the exhibit to Appendix C
to the Federal Reserve Bank of New York Operating Circular No. 10, as amended from time to time. 

    10.5.5.  Subject to the provisions of Section 10.6., each Lender shall have the right at any time
to furnish one or more potential assignees or participants with any information concerning the Borrower and the Consolidated Entities that has been supplied by the Borrower to any Lender Party. The
Borrower shall supply all reasonably requested information and execute and deliver all such instruments and take all such further action (including, in the case of an Assignment, the execution and
delivery of replacement Notes) as the Agent may reasonably request in connection with any Assignment or Participation arrangement. 

    Section 10.6.  Confidentiality.  Each Lender Party will maintain any confidential
information that it may receive from any Borrower Party pursuant to this Agreement confidential and shall not disclose such information to third parties without the prior consent of the Borrower,
except for disclosure: (a) to any other Lender Party or an affiliate of any Lender Party or any officer, director, employee, agent, advisor, legal counsel, accountant or other professional
advisor to such Lender Party or affiliate; (b) to regulatory officials having jurisdiction over such Lender Party; (c) as required by Applicable Law or in connection with any legal
proceeding; (d) to another Person in connection with a potential Assignment or Participation, provided such Person shall have agreed in writing
to be subject to this Section 10.6.; and (e) of information that has been previously disclosed publicly without breach of this provision. 

    Section 10.7.  Choice of Forum.  

    10.7.1.  All actions or proceedings arising in connection with this Agreement and the other Loan
Documents shall be tried and litigated in state or Federal courts located in Los Angeles, County of Los Angeles, State of California, unless such actions or proceedings are required to be brought in
another
court to obtain subject matter jurisdiction over the matter in controversy. EACH OF THE BORROWER PARTIES AND THE LENDER PARTIES WAIVES ANY RIGHT IT MAY HAVE TO ASSERT THE
DOCTRINE OF FORUM NON CONVENIENS, TO ASSERT THAT IT IS NOT SUBJECT TO THE JURISDICTION OF SUCH COURTS OR TO OBJECT TO VENUE TO
THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

    10.7.2.  IN ANY ACTION AGAINST ANY BORROWER PARTY, SERVICE OF PROCESS MAY BE
MADE UPON SUCH BORROWER PARTY BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS INDICATED IN SCHEDULE 10.4., WHICH SERVICE SHALL BE DEEMED SUFFICIENT FOR PERSONAL JURISDICTION
AND SHALL BE DEEMED EFFECTIVE 10 DAYS AFTER MAILING.

    10.7.3.  Nothing contained in this Section 10.7. shall preclude the Lender Parties from bringing
any action or proceeding arising out of or relating to this Agreement and the other Loan Documents in the courts of any place where any Borrower Party or any of its assets may be found or located. 

    Section 10.8.  Changes in Accounting Principles.  Except as otherwise provided
herein (including, without limitation, the definition of "Funds from Operations"), if any changes in generally accepted accounting principles from those used in the preparation of the financial
statements referred to in this Agreement hereafter result from by the promulgation of rules, regulations, pronouncements, or opinions of or required by the Financial Accounting Standards Board or the
American Institute of Certified Public Accountants (or successors thereto or agencies with similar functions), or there shall occur any change in the Borrower's fiscal or tax years and, as a result of
any such changes, there shall result a change in the method of calculating any of the financial covenants, negative covenants, 

65

 

standards or other terms or conditions found in this Agreement, then the parties agree to enter into negotiations in order to amend such provisions so as to equitably reflect such changes with the
desired result that the criteria for evaluating the Borrower's financial condition shall be the same after such changes as if such changes had not been made. 

    Section 10.9.  Survival of Agreements, Representations and Warranties.  All
agreements, representations and warranties made herein shall survive the execution and delivery of this Agreement, the closing and the extensions of credit hereunder and shall continue until payment
and performance of any and all Obligations. Any investigation at any time made by or on behalf of the Lender Parties shall not diminish the right of the Lender Parties to rely thereon. 

    Section 10.10.  Execution in Counterparts.  This Agreement may be executed in any
number of counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the
same Agreement. 

    Section 10.11.  Complete Agreement.  This Agreement, together with the
Exhibits and Schedules hereto, and the other Loan Documents is intended by the parties as the final expression of their agreement regarding the subject matter hereof and as a complete and exclusive
statement of the terms and conditions of such agreement. 

    Section 10.12.  Limitation of Liability.  

    10.12.1.  No claim shall be made by any Borrower Party against any Lender Party or the Affiliates,
directors, officers, employees, attorneys or agents of any Lender Party for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or under any other
theory of liability arising out of or related to the transactions contemplated by this Agreement or the other Loan Documents, or any act, omission or event occurring in connection therewith; and each
Borrower Party hereby waives, releases and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 

    10.12.2.  Except as otherwise provided in Section 10.12.3., neither the REIT nor any officer,
employee, servant, controlling person, executive, director, agent or authorized representative thereof (herein referred to as "Operatives") shall be
liable personally for the Obligations. The sole recourse of any Lender Party for satisfaction of the Obligations shall be to the Borrower, and each Guarantor of which the REIT is not a general
partner, as an entity, and to the Borrower's and each Guarantor's assets, and not to any assets of the REIT or its Operatives. In the event that an Event of Default occurs in connection with the
Obligations, no action shall be brought against the REIT or its Operatives. 

    10.12.3.  Notwithstanding anything in Section 10.12.2. to the contrary, (a) nothing herein
shall limit or otherwise prejudice in any way the right of any Lender Party to proceed against (i) the Borrower, or any Guarantor of which the REIT is not a general partner, with respect to the
enforcement of any Obligations or the liability of the Borrower or such Guarantor for such Obligations, or (ii) the assets of any Guarantor with respect to the enforcement of any Obligations,
(b) nothing herein shall limit or otherwise prejudice in any way the right of any Lender Party to proceed against the REIT with respect to any breach of its representations, warranties,
covenants and obligations in this Agreement or its liability for any violation of such provisions, and (c) Section 10.12.2. shall not apply to, or constitute a waiver of any claim by any
Lender Party for fraud, deceit, intentional or willful misrepresentation or bad faith waste. It is expressly agreed that any Lender Party shall have full recourse against the REIT and its Operatives
for any matters referred to in clause (c) of this section. 

    Section 10.13.  Unsecured Advances; No Lien.  The Advances and Letters of Credit
contemplated in this Agreement are unsecured loans and extensions of credit and no Lien is intended to be created 

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upon the Unencumbered Assets or any other property of the REIT or any Consolidated Entity by any provision in this Agreement or the other Loan Documents. 

    Section 10.14.  Amendment and Restatement.  On the Closing Date, (a) this
Agreement shall supersede the Existing Credit Agreement insofar as the two are inconsistent, (b) all Existing Advances will be considered "Advances" outstanding under this Agreement and
(c) all outstanding Existing Letters of Credit will be considered "Advances" and "Letters of Credit" outstanding under this Agreement. However, the execution and delivery of this Agreement
shall not excuse, or constitute a waiver of, any defaults under the Existing Credit Agreement, it being understood that this Agreement is not a termination of the Existing Credit Agreement, but is a
modification (and, as modified, a continuation) of the Existing Credit Agreement. 

[REST OF PAGE INTENTIONALLY LEFT BLANK]  

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       Section 10.15.  Waiver of Trial by Jury.  EACH PARTY TO
THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THE LOAN DOCUMENTS, INCLUDING ANY PRESENT OR FUTURE AMENDMENT
THEREOF OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES OR ANY OF THEM WITH RESPECT TO THE LOAN DOCUMENTS (AS NOW OR HEREAFTER AMENDED) OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND REGARDLESS OF WHICH PARTY ASSERTS SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION; AND EACH PARTY HEREBY AGREES
AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF ANY RIGHT THEY MIGHT OTHERWISE HAVE TO TRIAL BY JURY.

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first set forth above. 

	 	 	Borrower:
	

 	
 	
THE MACERICH PARTNERSHIP, L.P., a Delaware limited partnership
	

 	
 	

By:	
 	
THE MACERICH COMPANY, a Maryland corporation, the Sole General Partner
	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	Richard A. Bayer
	 	 	 	 	Title:	 	Executive Vice President, General Counsel and Secretary

68

 

	

 	
 	
Initial Guarantors:
	

 	
 	
MACERICH BRISTOL ASSOCIATES, a California general partnership
	

 	
 	

By:	
 	
THE MACERICH COMPANY, a Maryland corporation, a General Partner
	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	Richard A. Bayer
	 	 	 	 	Title:	 	Executive Vice President, General Counsel and Secretary

	

 	
 	

By:	
 	
THE MACERICH PARTNERSHIP, L.P., a Delaware limited partnership, a General Partner
	

 	
 	

 	
 	

By:	
 	
THE MACERICH COMPANY, a Maryland corporation, the Sole General Partner
	

 	
 	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	 	 	Name:	 	Richard A. Bayer
	 	 	 	 	 	 	Title:	 	Executive Vice President, General Counsel and Secretary

	

 	
 	
MACERICH GREAT FALLS LIMITED PARTNERSHIP, a California limited partnership
	

 	
 	

By:	
 	
MACERICH GREAT FALLS GP CORP., a Delaware corporation, the sole General Partner
	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	Richard A. Bayer
	 	 	 	 	Title:	 	Executive Vice President, General Counsel and Secretary
	

 	
 	
MACERICH OKLAHOMA LIMITED PARTNERSHIP, a California limited partnership
	

 	
 	

By:	
 	
MACERICH OKLAHOMA GP CORP., a Delaware corporation, the sole General Partner
	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	Richard A. Bayer
	 	 	 	 	Title:	 	Executive Vice President, General Counsel and Secretary

69

 

	

 	
 	
MACERICH WESTSIDE ADJACENT LIMITED PARTNERSHIP, a California limited partnership
	

 	
 	

By:	
 	
MACERICH WESTSIDE ADJACENT GP CORP., a Delaware corporation, the sole General Partner
	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	Richard A. Bayer
	 	 	 	 	Title:	 	Executive Vice President, General Counsel and Secretary
	

 	
 	
MACERICH SASSAFRAS LIMITED PARTNERSHIP, a California limited partnership
	

 	
 	

By:	
 	
MACERICH SASSAFRAS GP CORP., a Delaware corporation, the sole General Partner
	

 	
 	

 	
 	

By:	
 	

	 	 	 	 	Name:	 	Richard A. Bayer
	 	 	 	 	Title:	 	Executive Vice President, General Counsel and Secretary

	

 	
 	
REIT:
	

 	
 	
THE MACERICH COMPANY, a Maryland corporation
	

 	
 	

By:	
 	

	 	 	Name:	 	Richard A. Bayer
	 	 	Title:	 	Executive Vice President, General Counsel and Secretary
	

 	
 	
Agent:
	

 	
 	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent
	

 	
 	

By:	
 	

	 	 	Name:	 	Wayne H. Choi
	 	 	Title:	 	Vice President
	

 	
 	
Lenders:
	

 	
 	
WELLS FARGO BANK, NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

	 	 	Name:	 	Wayne H. Choi
	 	 	Title:	 	Vice President

70

 

	

 	
 	
U.S. BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

	 	 	Name:	 	Wayne Brander
	 	 	Title:	 	Senior Vice President
	

 	
 	
DRESDNER BANK AG, New York and Grand Cayman Branches
	

 	
 	

By:	
 	

	 	 	Name:	 	 
	 	 	Title:	 	 
	

 	
 	

By:	
 	

	 	 	Name:	 	 
	 	 	Title:	 	 

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QuickLinks

EXHIBIT 10.30

CONTENTS

EXHIBITS

SCHEDULES

SECOND AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

R E C I T A L S

ARTICLE 1.

DEFINITIONS AND RELATED MATTERS

ARTICLE 2. AMOUNT AND TERMS OF THE CREDIT FACILITIES

ARTICLE 3.

GUARANTY

ARTICLE 4.

CONDITIONS PRECEDENT TO ADVANCES AND LETTERS OF CREDIT

ARTICLE 5.

REPRESENTATIONS AND WARRANTIES

ARTICLE 6. AFFIRMATIVE COVENANTS OF THE BORROWER PARTIES

ARTICLE 7. NEGATIVE COVENANTS OF THE BORROWER PARTIES

ARTICLE 8. EVENTS OF DEFAULT

ARTICLE 9. THE AGENT AND THE LENDERS

ARTICLE 10. MISCELLANEOUS

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