Document:

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                                                                   EXHIBIT 10.40

                       FIRST AMENDMENT TO CREDIT AGREEMENT

         This FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is made and
entered into as of this 9th day of May, 2003, by and among FOREST CITY RENTAL
PROPERTIES CORPORATION, an Ohio corporation (the "Borrower"), KEYBANK NATIONAL
ASSOCIATION, as Administrative Agent (the "Administrative Agent"), NATIONAL CITY
BANK, as Syndication Agent (the "Syndication Agent" and, together with the
Administrative Agent, the "Agents") and the banks party to the Credit Agreement
(as hereinafter defined) as of the date hereof (collectively, the "Banks" and
individually a "Bank"). Capitalized terms not otherwise defined herein shall
have the meaning attributed to them in the Credit Agreement, as hereinafter
defined.

                              W I T N E S S E T H:
                               - - - - - - - - - -

         WHEREAS, the Borrower, the Banks and the Agents have previously entered
into a certain Credit Agreement dated as of March 5, 2002 (the "Credit
Agreement"); and

         WHEREAS, in connection with the Credit Agreement, Forest City
Enterprises, Inc. (the "Parent") made and entered into a certain Guaranty of
Payment of Debt in favor of the Banks, dated as of March 5, 2002 (the
"Guaranty"); and

         WHEREAS, the Borrower, the Banks and the Agents desire to make certain
amendments to the Credit Agreement to acknowledge and allow for an indenture to
be entered into by the Parent under the terms of which up to $300,000,000 of
Indebtedness may be incurred by the Parent, subject to the terms and conditions
contained herein and in the First Amendment to Guaranty (as defined below); and

         WHEREAS, the Banks and the Agents are willing to amend the Credit
Agreement and the Guaranty, on the respective terms and conditions set forth
herein and in the First Amendment to Guaranty of Payment of Debt (the "First
Amendment to Guaranty") of even date herewith, respectively, and such terms and
conditions are agreeable to the Borrower and to the Parent.

         NOW, THEREFORE, it is mutually agreed as follows:

         1.       AMENDMENT TO ARTICLE I OF THE CREDIT AGREEMENT.  Article I of
the  Credit Agreement shall be amended as follows:

                  (a) Amendment of Definition of "Indenture". The definition of
"Indenture" contained in Article I of the Credit Agreement shall be amended by
deleting it in its entirety and replacing it with the following:

                           "Indentures" shall mean, collectively, the indenture
                  of the Parent to The Bank of New York, as indenture trustee,
                  dated as of March 16, 1998 and relating to the 1998 Senior
                  Notes, and the indenture of the Parent to The Bank of New
                  York, as indenture trustee, dated as of May 19, 2003, and
                  relating to the 2003 Senior Notes, and "Indenture" shall mean
                  either of them, as applicable.

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                  (b) Amendment of Definition of "Senior Notes". The definition
of "Senior Notes" contained in Article I of the Credit Agreement shall be
amended by deleting it in its entirety and replacing it with the following:

                           "Senior Notes" shall mean the 1998 Senior Notes and
                  the 2003 Senior Notes.

                  (c) Addition of Definition of "1998 Senior Notes". Article I
of the Credit Agreement shall be amended by adding in its appropriate
alphabetical place, the following definition for "1998 Senior Notes":

                           "1998 Senior Notes" shall mean the senior notes of
                  the Parent issued pursuant to the indenture dated as of March
                  16, 1998, between the Parent and The Bank of New York, as
                  indenture trustee, in the original aggregate principal amount
                  of $200,000,000.

                  (d) Addition of Definition of "2003 Senior Notes". Article I
of the Credit Agreement shall be amended by adding in its appropriate
alphabetical place, the following definition for "2003 Senior Notes":

                           "2003 Senior Notes" shall mean the senior notes of
                  the Parent issued pursuant to the indenture dated as of May
                  19, 2003, between the Parent and The Bank of New York, as
                  indenture trustee, in the original aggregate principal amount
                  of up to $300,000,000.

         2.       AMENDMENT TO SECTION 7.17 OF THE CREDIT AGREEMENT.  Section
7.17 of the Credit Agreement shall be amended by adding the following sentence
to the end of the Section:

                  A portion of the net proceeds of the 2003 Senior Notes shall
         be contributed to the Borrower as capital and shall be used by the
         Borrower to repay outstanding Debt on the Revolving Loans and for
         general working capital purposes, including the financing of ongoing
         development, acquisition and construction activities permitted by this
         Agreement.

         3.       AMENDMENT TO SECTION 8.16 OF THE CREDIT AGREEMENT.  Section
8.16 of the Credit Agreement shall be amended by deleting it in its entirety
and replacing it with the following:

                  SECTION 8.16. SENIOR NOTES. The Borrower shall not alter,
         amend, change or modify the terms of any of the Senior Notes (a) to
         allow the maturity date of any of the Senior Notes to be less than ten
         (10) years from the respective date of issue, (b) to provide for
         payment of interest under any of the Senior Notes less frequently than
         semi-annually, or (c) to modify the redemption provisions contained
         therein, including adding additional redemption provisions.

                                       2

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         4.       AMENDMENT TO SECTION 10.10 OF THE CREDIT AGREEMENT.  Section
10.10 of the Credit Agreement shall be amended by deleting it in its entirety
and replacing it with the following:

                  SECTION 10.10. DEFAULT UNDER GUARANTY OR SENIOR NOTES. If the
         Parent defaults in the payment or performance of any obligation in the
         Guaranty or in the performance of any other agreement, covenant, term
         or condition in the Guaranty, or in the payment or performance of any
         obligation under either of the Indentures or any of the Senior Notes
         (after giving effect to any applicable grace periods), or in the
         performance of any other agreement, covenant, term or condition in
         either of the Indentures or any of the Senior Notes (after giving
         effect to any applicable grace periods).

         5.       REPRESENTATIONS AND WARRANTIES.  The Borrower represents and
warrants to the Agents and each of the Banks as follows:

                  (a) INCORPORATION OF REPRESENTATIONS AND WARRANTIES. Each and
every representation and warranty made by the Borrower in Article IX of the
Credit Agreement is incorporated herein as if fully rewritten herein at length
and is true, correct and complete as of the date hereof (after giving effect to
any revisions to Schedule 9.22 or Schedule 9.23 that may have been delivered to
the Agents on or before the Amendment Closing Date);

                  (b) REQUISITE AUTHORITY.  The Borrower has all requisite
power and authority to execute and deliver and to perform its obligations in
respect of this Amendment and each and every other agreement, certificate, or
document required by this Amendment;

                  (c) DUE AUTHORIZATION; VALIDITY. The Borrower has taken all
necessary action to authorize the execution, delivery, and performance by it of
this Amendment and every other instrument, document, and certificate relating
thereto. This Amendment has been duly executed and delivered by the Borrower and
is the legal, valid, and binding obligation of the Borrower enforceable against
it in accordance with its terms;

                  (d) NO CONSENT.  No consent, approval, or authorization
of, or registration with, any governmental authority or other Person is
required in connection with the execution, delivery and performance of
this Amendment and the transactions contemplated hereby; and

                  (e) NO DEFAULTS. No event has occurred and no condition exists
which, with the giving of notice or the lapse of time, or both, would constitute
an Event of Default or Possible Default under the Credit Agreement.

         6.       CONDITIONS TO EFFECTIVENESS OF AMENDMENT.

                  (a) CLOSING CONDITIONS. Except as otherwise expressly provided
in this Amendment, prior to or concurrently with the Amendment Closing Date (as
hereinafter defined), and as conditions precedent to the effectiveness of the
amendments to the Credit Agreement provided for herein, the following actions
shall be taken, all in form and substance satisfactory to the Agents and the
Banks and their respective counsel:

                                       3

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                           (i)      LOAN DOCUMENTS AND CORPORATE DOCUMENTS. The
Borrower shall deliver or cause to be delivered to the Agents and the Banks
the following documents, in all cases duly executed, and delivered by the
Borrower and/or the Parent, and/or certified, as the case may be:

                                    (1) Certified copy of the resolutions of the
         board of directors of the Borrower evidencing approval of the
         execution, delivery and performance of this Amendment;

                                    (2) Certified copy of the resolutions of the
         board of directors of the Parent evidencing approval of the execution,
         delivery and performance of the First Amendment to Guaranty, the 2003
         Senior Notes and the Indenture dated as of May 19, 2003;

                                    (3) Copies of the 2003 Senior Notes and the
         Indenture dated as of May 19, 2003, duly executed by each of the
         parties thereto, certified as being true, accurate and complete by the
         secretary or assistant secretary of the Parent;

                                    (4) A good standing certificate from the
         State of Ohio for the Borrower;

                                    (5) A good standing certificate from the
         State of Ohio for the Parent;

                                    (6) A certificate of the secretary or
         assistant secretary of the Borrower certifying the names of the
         officers of the Borrower authorized to sign this Amendment, together
         with the true signatures of such officers;

                                    (7) A certificate of the secretary or
         assistant secretary of the Parent certifying the names of the officers
         of the Parent authorized to sign the First Amendment to Guaranty,
         together with the true signatures of such officers;

                                    (8) Counterparts of this Amendment, executed
         and delivered by the Borrower, the Agent, and the Banks and the
         Parent's Acknowledgement of this Amendment;

                                    (9) Certificate from the secretary or the
         assistant secretary of the Borrower certifying that no changes,
         amendments or other modifications have been made to the Articles of
         Incorporation or Code of Regulations of the Borrower since true and
         complete copies were delivered to the Agents on or about March 5, 2002;

                                    (10) Certificate from the secretary or the
         assistant secretary of the Parent certifying that no changes,
         amendments or other modifications have been made to the Articles of
         Incorporation or Code of Regulations of the Parent since true and
         complete copies were delivered to the Agents on or about March 5, 2002;

                                       4
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                                    (11) Counterparts of the First Amendment to
         Guaranty, executed and delivered by the Parent, the Agents and the
         Banks; and

                                    (12) A certificate of the secretary or
         assistant secretary of the Borrower and the Parent certifying that as
         of the date of this Amendment no Event of Default or Possible Default
         exists under the Credit Agreement.

                           (ii) OPINION OF COUNSEL FOR PARENT. The Borrower
shall deliver or caused to be delivered to the Agents and the Banks a favorable
opinion of counsel for the Parent as to the due authorization, execution, and
delivery, and legality, validity and enforceability of the First Amendment to
Guaranty, the 2003 Senior Notes and the indenture dated as of May 19, 2003 and
such other matters as the Agent or the Banks may request.

                           (iii) OPINION OF COUNSEL FOR BORROWER. The Borrower
shall deliver or caused to be delivered to the Agents and the Banks a favorable
opinion of counsel for the Borrower as to the due authorization, execution, and
delivery, and legality, validity and enforceability of this Amendment and such
other matters as the Agent or the Banks may request.

                           (iv) PAYMENT OF FEES TO BANKS. On or before the
Amendment Closing Date, the Borrower shall have paid to the Agents and the Banks
all costs, fees and expenses incurred by them through the Amendment Closing Date
in the preparation, negotiation and execution of this Amendment and the First
Amendment to Guaranty (including, without limitation, legal fees and expenses of
Thompson Hine LLP). The Borrower shall pay an amendment fee to the
Administrative Agent for distribution to the Banks in the amount set forth in
the fee letter from the Agents to the Borrower dated as of May 9, 2003.

                           (v) REVISED SCHEDULES. If necessary to make the
representations and warranties in Section 5(a) true, correct and complete, the
Borrower shall have delivered to the Agents and the Banks a new Schedule 9.22
and/or Schedule 9.23.

                  (b) DEFINITION. The "Amendment Closing Date" shall mean the
date this Amendment is executed and delivered by the Borrower, the Banks and the
Agents and all the conditions set forth in subsection (a) of this Section 6 have
been satisfied or waived in writing by the Agents.

         7. NO WAIVER. Except as otherwise expressly provided herein, the
execution and delivery of this Amendment by the Agents and the Banks shall not
constitute a waiver or release of any obligation or liability of the Borrower
under the Credit Agreement as in effect prior to the effectiveness of this
Amendment or as amended hereby or waive or release any Event of Default or
Possible Default existing at any time.

         8. EFFECT ON OTHER PROVISIONS. Except as expressly amended by this
Amendment, all provisions of the Credit Agreement continue unchanged and in full
force and effect and are hereby confirmed and ratified. All provisions of the
Credit Agreement shall be applicable to this Amendment.

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                  IN WITNESS WHEREOF, the parties hereto, each by an officer
thereunto duly authorized, have caused this First Amendment to Credit Agreement
to be executed and delivered as of the date first above written.

                                    FOREST CITY RENTAL PROPERTIES
                                    CORPORATION

                                    BY: /s/ Charles A. Ratner
                                        ---------------------------------------
                                         TITLE: Chairman of the Board
                                                -------------------------------

                                    KEYBANK NATIONAL ASSOCIATION,
                                    Individually and as Administrative Agent

                                    BY: /s/ Donald Woods
                                        ---------------------------------------
                                         TITLE: Assistant Vice President
                                                -------------------------------

                                    NATIONAL CITY BANK, Individually and
                                    as Syndication Agent

                                    BY: /s/ Anthony J. DiMare
                                        ---------------------------------------
                                         TITLE: Senior Vice President
                                                -------------------------------

                                    THE HUNTINGTON NATIONAL BANK

                                    BY: /s/ Richard Goss Jr.
                                        ---------------------------------------
                                         TITLE: Vice President
                                                -------------------------------

                                    U.S. BANK NATIONAL ASSOCIATION

                                    BY: /s/ Jeffrey Possin
                                        ---------------------------------------
                                         TITLE: Officer
                                                -------------------------------

             (Signature page to First Amendment to Credit Agreement)

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                                    COMERICA BANK

                                    BY: /s/ Charles Weddell
                                        ---------------------------------------
                                         TITLE: Vice President
                                                -------------------------------

                                    FIRST MERIT BANK

                                    BY: /s/ John F. Neumann
                                        ---------------------------------------
                                         TITLE: Senior Vice President
                                                -------------------------------

                                    LASALLE BANK N.A.

                                    BY: /s/ Marilyn Maloney
                                        ---------------------------------------
                                         TITLE: First Vice President
                                                -------------------------------

                                    MANUFACTURERS AND TRADERS
                                    TRUST COMPANY

                                    BY: /s/ Kevin B. Quinn
                                        ---------------------------------------
                                         TITLE: Vice President
                                                -------------------------------

                                    FIFTH THIRD BANK

                                    BY: /s/ James Byrnes
                                        ---------------------------------------
                                         TITLE: Vice President
                                                -------------------------------

             (Signature page to First Amendment to Credit Agreement)

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                                    FLEET NATIONAL BANK

                                    BY: /s/ James Magaldi
                                        ---------------------------------------
                                         TITLE: Vice President
                                                -------------------------------

                                    CREDIT LYONNAIS, NEW YORK BRANCH

                                    BY: /s/ Greg Nuber
                                        ---------------------------------------
                                         TITLE: Vice President
                                                -------------------------------

                                    THE PROVIDENT BANK

                                    BY: /s/ Tom Stewart
                                        ---------------------------------------
                                         TITLE: Vice President
                                                -------------------------------

             (Signature page to First Amendment to Credit Agreement)

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                              CONSENT OF GUARANTOR

         FOREST CITY ENTERPRISES, INC., an Ohio corporation, Guarantor under
that certain Guaranty of Payment of Debt issued on or about March 5, 2002 (the
"Guaranty of Payment of Debt") to and in favor of the Agents and the Banks in
respect of, inter alia., the indebtedness of FOREST CITY RENTAL PROPERTIES
CORPORATION under the Credit Agreement referenced in the foregoing First
Amendment to Credit Agreement, hereby acknowledges that it consents to the
foregoing First Amendment to Credit Agreement and confirms and agrees that its
Guaranty of Payment of Debt, as amended to the date hereof, is and shall remain
in full force and effect with respect to the Credit Agreement as in effect prior
to, and from and after, the amendment thereof pursuant to the foregoing First
Amendment to Credit Agreement.

Dated:  May 9, 2003           FOREST CITY ENTERPRISES, INC.

                              By: /s/ Charles A. Ratner
                                  ---------------------------------------------
                                   Title: President and Chief Executive Officer
                                          -------------------------------------<PAGE>
                                                                   EXHIBIT 10.41

                               FIRST AMENDMENT TO
                           GUARANTY OF PAYMENT OF DEBT

         This FIRST AMENDMENT TO GUARANTY OF PAYMENT OF DEBT (this "First
Amendment to Guaranty") is made and entered into as of this 9th day of May,
2003, by and among FOREST CITY ENTERPRISES, INC., an Ohio corporation (the
"Guarantor"), KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (the
"Administrative Agent"), NATIONAL CITY BANK, as Syndication Agent (the
"Syndication Agent" and, together with the Administrative Agent, the "Agents")
and the banks party to the Credit Agreement (as hereinafter defined) as of the
date hereof (the "Banks").

                              W I T N E S S E T H;

         WHEREAS, Forest City Rental Properties Corporation (the "Borrower"),
the Banks, and the Agents previously entered into a certain Credit Agreement
dated as of March 5, 2002 (the "Original Credit Agreement"); and

         WHEREAS, the Banks required, as a condition to entering into the
Original Credit Agreement, that the Guarantor execute and deliver to the Agents
and the Banks a certain Guaranty of Payment of Debt, dated as of March 5, 2002
(the "Guaranty") and the Guarantor agreed to and did execute and deliver the
Guaranty to the Agents and the Banks; and

         WHEREAS, the Borrower and the Guarantor have requested that the Banks
and the Agents agree to certain amendments to the Original Credit Agreement and
to the Guaranty; and

         WHEREAS, the Borrower, the Banks and the Agents have entered into a
First Amendment to Credit Agreement dated as of the date hereof (together with
the Original Credit Agreement, the "Credit Agreement"), that requires as one of
its conditions that the Guarantor enter into this First Amendment to Guaranty.

         NOW, THEREFORE, it is mutually agreed as follows:

         1.       AMENDMENT TO SECTION 1 OF THE GUARANTY.   Section 1 of the
Guaranty shall be amended as follows:

                  (a) Definition of "Indenture." The definition of "Indenture"
         contained in Section 1 of the Guaranty shall be amended by deleting it
         in its entirety and replacing it with the following:

                           "Indentures" shall mean, collectively, the indenture
                  of the Parent to The Bank of New York, as indenture trustee,
                  dated as of March 16, 1998 and relating to the 1998 Senior
                  Notes, and the indenture of the Parent to The Bank of New
                  York, as indenture

<PAGE>

                  trustee, dated as of May 19, 2003, and relating to the 2003
                  Senior Notes, and "Indenture" shall mean either of them, as
                  applicable.

                  (b) Definition of "Senior Notes." The definition of "Senior
         Notes" contained in the Guaranty shall be amended by deleting it in its
         entirety and replacing it with the following:

                           "Senior Notes" shall mean the 1998 Senior Notes and
                  the 2003 Senior Notes.

                  (c) Addition of Definition of "1998 Senior Notes". Article I
         of the Credit Agreement shall be amended by adding in its appropriate
         alphabetical place, the following definition for "1998 Senior Notes":

                           "1998 Senior Notes" shall mean the senior notes of
                  the Parent issued pursuant to the indenture dated as of March
                  16, 1998, between the Parent and The Bank of New York, as
                  indenture trustee, in the original aggregate principal amount
                  of $200,000.000.

                  (d) Addition of Definition of "2003 Senior Notes." Article I
         of the Credit Agreement shall be amended by adding in its appropriate
         alphabetical place, the following definition for "2003 Senior Notes":

                           "2003 Senior Notes" shall mean the senior notes of
                  the Parent issued pursuant to the indenture dated as of May
                  19, 2003, between the Parent as The Bank of New York, as
                  indenture trustee, in an original aggregate principal amount
                  of up to $300,000,000.

         2.       AMENDMENT TO SECTION 9.2(C) OF THE GUARANTY.  Section 9.2(c)
of the Guaranty shall be amended by inserting the words "of any" after the word
"account" contained in the proviso therein, but leaving it the same in all
other respects.

         3.       AMENDMENTS TO SECTION 9.5 OF THE GUARANTY.

                  (a) Section 9.5(a). Section 9.5(a) of the Guaranty shall be
         amended by deleting the first parenthetical contained therein and
         replacing it with the following parenthetical:

                           (including, without limitation, any default under any
                  of the Senior Notes, either of the Indentures or any other
                  document relating to any of them (after giving effect to any
                  applicable grace period)).

                                       2

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                  (b) Section 9.5. The last sentence of Section 9.5 of the
         Guaranty shall be amended by deleting it in its entirety and replacing
         it with the following sentence:

                           Further, the Guarantor shall notify the Banks not
                  less than thirty (30) days in advance of entering into any
                  proposed amendment or modification of any of the Senior Notes
                  or either of the Indentures, whether or not the Guarantor
                  believes that the consent of the Required Banks is needed
                  therefor pursuant to Section 9.10(h)(ii) of this Guaranty.

         4.       AMENDMENT TO SECTION 9.10(H) OF THE GUARANTY.  Section 9.10(h)
of the Guaranty shall be amended as follows:

                  (a) Clause (i). Clause (i) of Section 9.10(h) of the Guaranty
         shall be amended by deleting it in its entirety and replacing it with
         the following:

                           (i) neither of the Indentures nor any of the Senior
                  Notes may provide that an Event of Default under the Agreement
                  or this Guaranty constitutes a default under such Indenture or
                  any of the Senior Notes, except in the case of an Event of
                  Default that results in the acceleration of the payment of the
                  Debt or constitutes the failure to pay the Debt when due after
                  acceleration or maturity;.

                  (b) Clause (ii). Clause (ii) of Section 9.10(h) of the
         Guaranty shall be amended by deleting it in its entirety and replacing
         it with the following:

                           (ii) the Indebtedness represented by the Senior Notes
                  shall be unsecured, pari passu with the Guarantor's
                  obligations under this Guaranty and structurally subordinate
                  to the Borrower's Obligations to the Banks under the Credit
                  Agreement;.

                  (c) Clause (iii). Section 9.10 (h) of the Guaranty shall be
         amended by adding a new clause (iii) as follows:

                           (iii) neither of the Indentures nor any of the Senior
                  Notes shall be amended or modified without the prior written
                  consent of the Required Banks, including, without limitation,
                  (A) to allow the maturity date of any of the Senior Notes to
                  be less than ten (10) years from the respective date of issue,
                  (B) to provide for payment of interest under any of the Senior
                  Notes less frequently than semi-annually, or (C) to modify the
                  redemption provisions contained therein, including adding
                  additional redemption provisions, other than amendments or
                  modifications that do not adversely affect the Credit
                  Agreement and this Guaranty or their relationship to either of
                  the Indentures or any of the Senior Notes;.

                                       3

<PAGE>

                  (d) Clause (iv). Section 9.10(h) of the Guaranty shall be
         amended by adding a new clause (iv) as follows:

                           (iv) after giving effect to the redemption of the
                  1998 Senior Notes as contemplated in Section 9.13(d) of this
                  Guaranty, the outstanding and unredeemed principal amount of
                  the 1998 Senior Notes and the 2003 Senior Notes shall not, at
                  any time, exceed $300,000,000, in the aggregate; and.

                  (e) Clause (v). Section 9.10(h) of the Guaranty shall be
         amended by adding a new clause (v) as follows:

                           (v) the terms and conditions of the 2003 Senior Notes
                  and the related Indenture dated as of May 19, 2003, shall be
                  satisfactory, in form and substance, to the Agents and the
                  Banks.

         5.       AMENDMENT TO SECTION 9.12(L) OF THE GUARANTY.  Section 9.12(l)
of the Guaranty shall be amended by deleting it in its entirety and replacing
it with the following:

                  (l) the guarantee by the Guarantor of the obligations of the
         Park Creek Metropolitan District and Stapleton Land LLC located in
         Stapleton, Colorado, with respect to the $19,000,000 Park Creek
         District Subordinate Limited Property Tax Revenue Bonds, Series 2003A
         and the $10,000,000 Park Creek District Subordinate Limited Property
         Tax Revenue Bonds, Series 2003B, provided, that such guarantee
         obligations shall not be amended, restated or otherwise modified
         without the prior written consent of the Banks.

         6.       AMENDMENT TO SECTION 9.13 OF THE GUARANTY.  Section 9.13 of
the Guaranty shall be amended as follows:

                  (a) Section 9.13(b). Section 9.13(b) of the Guaranty shall be
         amended by adding the words "of any" after the word "account" contained
         in the proviso therein, but leaving it the same in all other respects.

                  (b) Section 9.13(d). Section 9.13(d) of the Guaranty shall be
         amended by deleting it in its entirety and replacing it with the
         following:

                           (d) the Guarantor shall not directly or indirectly
                  exercise its optional redemption rights, under the terms of
                  either of the Indentures or any of the Senior Notes, to redeem
                  any of the Senior Notes prior to its maturity date, or to
                  deposit monies or other assets with the respective trustee
                  under each respective Indenture for the payment of any of the
                  one or more Senior Notes or the release of restrictive
                  covenants thereunder, by defeasance, without in each case the
                  prior written consent of the Required Banks, provided, that
                  the Guarantor may, and the Guarantor hereby agrees that it
                  will, redeem all of the outstanding principal amount

                                       4

<PAGE>

                  of the 1998 Senior Notes as soon as practicable, and in any
                  event prior to July 21, 2003.

         7.       AMENDMENT TO SECTION 10(D) OF THE GUARANTY.  Section 10(d) of
the Guaranty shall be amended by deleting the proviso contained therein and
replacing it with the following proviso:

                           provided, that it shall be an Event of Default
         hereunder if any default occurs (after giving effect to any applicable
         grace period) under any of the Senior Notes permitted by Section
         9.10(h) of this Guaranty or under either of the Indentures, or.

         8.       REPRESENTATIONS AND WARRANTIES.  The Guarantor represents and
warrants to the Agents and each of the Banks as follows:

                  (a) INCORPORATION OF REPRESENTATIONS AND WARRANTIES. Each and
         every representation and warranty made by the Guarantor in Section 7 of
         the Guaranty is incorporated herein as if fully rewritten herein at
         length and is true, correct and complete as of the date hereof and no
         Event of Default or Possible Default exists on such date;

                  (b) REQUISITE AUTHORITY. The Guarantor has all requisite power
         and authority to execute and deliver and to perform its obligations in
         respect of this First Amendment to Guaranty and each and every other
         agreement, certificate, or document required to be delivered as a
         condition precedent to this First Amendment to Guaranty or to the First
         Amendment to Credit Agreement;

                  (c) DUE AUTHORIZATION; VALIDITY. The Guarantor has taken all
         necessary action to authorize the execution, delivery, and performance
         by it of this First Amendment to Guaranty and every other instrument,
         document, and certificate relating thereto. This First Amendment to
         Guaranty has been duly executed and delivered by the Guarantor and is
         the legal, valid, and binding obligation of the Guarantor enforceable
         against it in accordance with its terms; and

                  (d) NO CONSENT. No consent, approval, or authorization of, or
         registration with, any governmental authority or other Person is
         required in connection with the execution, delivery, and performance of
         this First Amendment to Guaranty and the transactions contemplated
         hereby.

         9. NO WAIVER. Except as otherwise expressly provided herein, the
acceptance, execution, and/or delivery of this First Amendment to Guaranty by
the Agents and the Banks shall not constitute a waiver or release of any
obligation or liability of the Guarantor under the Guaranty as in effect prior
to the effectiveness of this First Amendment to Guaranty or as amended hereby or
waive or release any Event of Default or Possible Default existing at any time.

                                       5
<PAGE>

          10. CONDITIONS TO CLOSING. Except as otherwise expressly provided in
 this First Amendment to Guaranty, prior to or concurrently with the execution
 and delivery of this First Amendment to Guaranty, and as conditions precedent
 to the effectiveness of the amendments to the Guaranty provided for herein, the
 Agents and the Banks and their respective counsel shall have received such
 opinions of counsel to the Guarantor, certified copies of resolutions of the
 Board of Directors of the Guarantor, and such other documents as shall be
 required by the Agents, the Banks, or their respective counsel to evidence and
 confirm the due authorization, execution, and delivery of this First Amendment
 to Guaranty, all in form and substance satisfactory to the Agents and the Banks
 and their respective counsel; the Agents and the Banks shall have received duly
 executed copies of the 2003 Senior Notes and the Indenture dated as of May 19,
 2003 related thereto and each shall be in form and substance satisfactory to
 the Agents and the Banks; all conditions to the First Amendment to Credit
 Agreement shall have been satisfied; and all costs, fees, and expenses required
 by the First Amendment to Credit Agreement to have been paid by the Borrower in
 connection with the First Amendment to Credit Agreement and/or this First
 Amendment to Guaranty shall have been paid.

         11. CONFIRMATION OF GUARANTY. The Guarantor hereby confirms that the
Guaranty is in full force and effect on the date hereof and that, upon the
amendments herein provided becoming effective, the Guaranty will continue in
full force and effect in accordance with its terms, as hereby amended.

                                      * * *

                                       6

<PAGE>

         IN WITNESS WHEREOF, the parties hereto, each by an officer thereunto
duly authorized, have caused this First Amendment to Guaranty of Payment of Debt
to be executed and delivered as of the date first above written.

                                    FOREST CITY ENTERPRISES, INC.

                                    BY: /s/ Charles A. Ratner
                                        ----------------------------------------
                                        TITLE: President and Chief Executive
                                               Officer
                                               --------------------------------

                                    KEYBANK NATIONAL ASSOCIATION,
                                    Individually and as Administrative Agent

                                    BY: /s/ Donald Woods
                                        ---------------------------------------
                                        TITLE: Assistant Vice President
                                               --------------------------------

                                    NATIONAL CITY BANK, Individually and as
                                    Syndication Agent

                                    BY: /s/ Anthony J. DiMare
                                        ---------------------------------------
                                        TITLE: Senior Vice President
                                               --------------------------------

                                    THE HUNTINGTON NATIONAL BANK

                                    BY: /s/ Richard Goss Jr.
                                        ---------------------------------------
                                        TITLE: Vice President
                                               --------------------------------

                                    FIRST MERIT BANK

                                    BY: /s/ John F. Neumann
                                        ---------------------------------------
                                        TITLE: Senior Vice President
                                               --------------------------------

                                    U.S. BANK NATIONAL ASSOCIATION

                                    BY:
                                       ----------------------------------------
                                        TITLE:
                                              ---------------------------------

       (Signature page to First Amendment to Guaranty of Payment of Debt.)

<PAGE>

                                    COMERICA BANK

                                    BY:  /s/ Charles Weddell
                                         --------------------------------------
                                        TITLE: Vice President
                                               --------------------------------

                                    FIRST MERIT BANK

                                    BY: /s/ John Neumann
                                        ---------------------------------------
                                        TITLE: Senior Vice President
                                              ---------------------------------

                                    LASALLE BANK N.A.

                                    BY: /s/ Marilyn Maloney
                                        ---------------------------------------
                                        TITLE: First Vice President
                                               --------------------------------

                                    MANUFACTURERS AND TRADERS
                                    TRUST COMPANY

                                    BY: /s/ Kevin B. Quinn
                                        ---------------------------------------
                                        TITLE: Vice President
                                               --------------------------------

                                    FIFTH THIRD BANK

                                    BY: /s/ James Byrnes
                                        ---------------------------------------
                                        TITLE: Vice President
                                               --------------------------------

       (Signature page to First Amendment to Guaranty of Payment of Debt)

<PAGE>

                                    FLEET NATIONAL BANK

                                    BY: /s/ James Magaldi
                                        --------------------------------------
                                        TITLE: Vice President
                                               -------------------------------

                                    CREDIT LYONNAIS, NEW YORK BRANCH

                                    BY: /s/ Greg Nuber
                                        --------------------------------------
                                        TITLE: Vice President
                                               -------------------------------

                                    THE PROVIDENT BANK

                                    BY: /s/ Tom Stewart
                                        --------------------------------------
                                        TITLE: Vice President
                                               -------------------------------

       (Signature page to First Amendment to Guaranty of Payment of Debt)

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