Document:

exv10w3

Exhibit 10.3

 

SECOND AMENDED AND RESTATED GUARANTY OF PAYMENT OF DEBT

OF

FOREST CITY ENTERPRISES, INC.

Dated as of January 29, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1.
	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	ACKNOWLEDGMENTS, CONSIDERATION	 	 	5	 
	 
	 	 	 	 	 	 
	3.
	 	GUARANTY	 	 	6	 
	 
	 	 	 	 	 	 
	4.
	 	REINSTATEMENT	 	 	6	 
	 
	 	 	 	 	 	 
	5.
	 	WAIVERS	 	 	7	 
	 
	 	 	 	 	 	 
	6.
	 	ADDITIONAL AGREEMENTS	 	 	7	 
	 
	 	 	 	 	 	 
	7.
	 	REPRESENTATIONS AND WARRANTIES	 	 	10	 
	 
	 	 	 	 	 	 
	8.
	 	NOTICES	 	 	11	 
	 
	 	 	 	 	 	 
	9.
	 	COVENANTS	 	 	11	 
	 
	 	 	 	 	 	 
	10.
	 	DEFAULT; REMEDIES	 	 	34	 
	 
	 	 	 	 	 	 
	11.
	 	MISCELLANEOUS	 	 	37	 
	 
	 	 	 	 	 	 
	12.
	 	JURY TRIAL WAIVER	 	 	38	 
	 
	 	 	 	 	 	 
	13.
	 	NOTICES	 	 	38	 
	 
	 	 	 	 	 	 
	14.
	 	CONSENT TO JURISDICTION	 	 	38	 
	 
	 	 	 	 	 	 
	15.
	 	ENTIRE AGREEMENT	 	 	39	 
	 
	 	 	 	 	 	 
	16.
	 	INDEPENDENCE OF COVENANTS	 	 	39	 
	 
	 	 	 	 	 	 
	17.
	 	GENERAL LIMITATION OF LIABILITY	 	 	39	 

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SECOND AMENDED AND RESTATED GUARANTY OF PAYMENT OF DEBT

          THIS SECOND AMENDED AND RESTATED GUARANTY OF PAYMENT OF DEBT (this “Guaranty”) is made and
issued by FOREST CITY ENTERPRISES, INC., an Ohio corporation (the “Guarantor”), as of this
29th day of January, 2010, in order to induce the Banks (as hereinafter defined),
KEYBANK NATIONAL ASSOCIATION, as administrative agent for the Banks (the “Administrative Agent”),
PNC BANK, NATIONAL ASSOCIATION, as successor to National City Bank, as syndication agent for the
Banks (the “Syndication Agent” and together with the Administrative Agent, the “Agents”), and BANK
OF AMERICA, N.A., as documentation agent (the “Documentation Agent”), to enter into, and lend money
pursuant to, a certain Second Amended and Restated Credit Agreement of even date herewith (said
Second Amended and Restated Credit Agreement as it may be from time to time amended, restated, or
modified being herein called the “Agreement”), by and among the Banks, the Agents, the
Documentation Agent and FOREST CITY RENTAL PROPERTIES CORPORATION, a subsidiary of the Guarantor
(the “Borrower”).

W I T N E S S E T H:

          WHEREAS, the Guarantor previously executed an Amended and Restated Guaranty of Payment of
Debt, dated as of June 6, 2007, in favor of the Banks (as amended to the date hereof, the “Original
Guaranty”); and

          WHEREAS, Borrower, the Guarantor, the Banks, the Agents and the Documentation Agent desire to
amend and restate the Original Guaranty in its entirety as hereinafter set forth; and

          WHEREAS, in accordance with Section 13.02 of the Agreement, the Agents, the Documentation
Agent and the Banks have consented to the modifications to the Original Guaranty that are contained
herein;

          NOW, THEREFORE, the Original Guaranty is hereby amended and restated as follows:

          1. DEFINITIONS. As used in this Guaranty, the following terms shall have the
following meanings:

          “Cash Flow Coverage Ratio” shall mean, for any Test Period, the ratio of (a) Consolidated Net
Operating Cash Flow to (b) Guarantor Corporate Debt Service.

          “Company” shall mean the Guarantor and/or a Subsidiary of the Guarantor, as the context may
require.

 

 

          “Consolidated Shareholders’ Equity” shall mean the sum of (a) the consolidated shareholders
equity of the Guarantor, as reported on the Form 8-K most recently furnished by the Guarantor (or
on its behalf) to the Securities and Exchange Commission (it being understood and agreed that
Consolidated Shareholders’ Equity shall be calculated after net accumulated other comprehensive
losses but not after gains) and (b) accumulated depreciation as reported on such Form 8-K.

          “Consolidated Net Operating Cash Flow” shall mean, for any Test Period, Net Operating Income
less (a) (i) all scheduled payments of principal of non-recourse mortgage Indebtedness
owing by the Guarantor and/or its Subsidiaries (excluding any balloon payments), (ii) all interest
expense on such non-recourse Indebtedness as reported on the Form 8-K that is furnished by the
Guarantor (or on its behalf) to the Securities and Exchange Commission with respect to such Test
Period (to be calculated in a manner consistent with prior Test Periods), and (iii) Twelve Million
Dollars ($12,000,000) of normal recurring capital expenditures plus (b) (i) net income
(loss) before taxes, corporate interest expense and non-cash expenses incurred in connection with
stock-based compensation, in each case incurred by or charged to Land Group, (ii) net income (loss)
before taxes, corporate interest expense (including, but not limited to, interest incurred on Debt,
subordinated debt or any other third party debt) and non-cash expenses incurred in connection with
stock-based compensation, in each case incurred by or charged to the Corporate Activity Group of
the Guarantor, (iii) actual cash taxes paid on the Net Operating Income and the income set forth in
subsections (b)(i) and (b)(ii) above, (iv) non-cash interest expense accrued but not currently
payable up to a maximum of Five Million Dollars ($5,000,000) with respect to Indebtedness owing by
the Guarantor and its Subsidiaries other than Indebtedness owing by the Guarantor and/or its
Subsidiaries to the government of the United States or any state or municipality thereof or any
agencies of any of the foregoing and (v) non-cash interest expense accrued but not currently
payable with respect to Indebtedness by the Guarantor and/or its Subsidiaries owing to the
government of the United States or any state or municipality thereof or any agencies of any of the
foregoing.

          “Controlled Group” shall mean a controlled group of corporations as defined in Section 1563 of
the Code, of which Guarantor or any Subsidiary of the Guarantor is a part.

          “Convertible Notes Hedge Transactions” shall mean the hedge transactions that may be entered
into by the Guarantor in order to increase the effective conversion price of the common shares of
the Guarantor into which the 2009 Convertible Senior Notes outstanding as of the date hereof are
convertible; provided the cost of obtaining such hedge transactions does not exceed an
amount equal to ten percent (10%) of the aggregate principal face amount of the 2009 Convertible
Senior Notes.

          “Discretionary Bucket” shall have the meaning set forth in Section 9.8(a)(v) hereof.

          “ERISA Net Worth” shall mean (a) as to any Subsidiary of the Guarantor, the excess of the net
book value of such Subsidiary’s assets (other than patents, treasury stock, goodwill and similar
intangibles but including unamortized mortgage and lease costs) over all of

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its liabilities (other
than liabilities to any other Company), such excess being determined in accordance with GAAP
applied on a basis consistent with the Guarantor’s present accounting procedures, and (b) as to the
Guarantor, the excess of the net book value (after deducting all applicable reserves and deducting
any value attributable to the re-appraisal or write-up of any asset) of the Guarantor’s assets
(other than patents, good will, treasury stock and similar intangibles but including unamortized
mortgage and lease costs) over all of its liabilities as determined on an accrued and consolidated
and consolidating basis and in accordance with GAAP not inconsistent with the Guarantor’s present
accounting principles consistently applied.

          “Event of Default” shall have the meaning set forth in Section 10 hereof.

          “Guarantor Corporate Debt Service” shall mean, for any Test Period, the sum of (a) all
scheduled payments of principal of (excluding balloon payments) and interest on any Indebtedness
owing by the Guarantor and (b) without limiting the terms of Section 9.13 hereof, Dividends paid by
the Guarantor, in each case with respect to such Test Period.

          “Indemnification Lien” shall mean a Lien granted by the Guarantor pursuant to an Indemnity
Agreement entered into by the Guarantor with respect to one or more Performance Surety Bonds;
provided, that such Indemnification Lien extends only to the assigned property on which a
Surety provides a Performance Surety Bond and not to other property of the Guarantor or any
Subsidiary of the Guarantor and provided, further, that such Indemnification Lien
shall become effective only in the event that (a) the Guarantor fails to honor its obligations
under the related Indemnity Agreement or Performance Surety Bond; (b) the Guarantor abandons or
breaches a contract on a bonded project; (c) the Guarantor defaults under any other indebtedness or
liability owed to such Surety or (d) the Guarantor makes an assignment for the benefit of
creditors.

          “MTA Guaranty” shall mean that certain guaranty dated as of January 23, 2006, by the Guarantor
in favor of the Metropolitan Transit Authority for the State of New York and the Long Island Rail
Road Company (collectively, “MTA”), pursuant to which the Guarantor has agreed to guarantee the
obligations of Atlantic Rail Yards, LLC (“ARY”) under a temporary entry license agreement between
the MTA and ARY and as such guaranty may, from time to time, be amended, restated or otherwise
modified in accordance with the terms of this Guaranty.

          “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3) of
ERISA, to which the Guarantor, its Subsidiaries or any ERISA Affiliate is making or accruing an
obligation to make contributions or has within any of the five (5) plan years before that time made
or accrued an obligation to make contributions.

          “Obligor” shall mean any Person or entity who, or any of whose property is or shall be,
obligated on the Debt or any part thereof in any manner and includes, without limiting the
generality of the foregoing, the Borrower, the Guarantor and any co-maker, endorser, other
guarantor of payment, subordinating creditor, assignor, grantor of a security interest,
pledgor, mortgagor or hypothecator of property, if any.

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          “Performance Surety Bonds” shall mean the bonds, undertakings and like obligations executed by
a Surety for or on behalf of the Guarantor for one or more of the following purposes:

          (a) to guarantee the performance by the Guarantor or a Subsidiary of the Guarantor, as
applicable, that construction of a real estate project will be completed in accordance with
applicable plans and specifications and that all costs associated with such completion will be
paid;

          (b) to insure that any mechanics’ liens incurred in the normal course of constructing a real
estate project are duly paid and discharged;

          (c) as a condition to the issuance of a permit related to a real estate project;

          (d) as a condition to the issuance of state and local licenses required for the construction
and development of a real estate project; or

          (e) to support other obligations related to the construction and development of a real estate
project, provided that such obligations do not constitute Indebtedness.

          “Permitted Debt” shall have the meaning set forth in Section 9.10 hereof.

          “Plan” shall mean any employee pension benefit plan subject to Title IV of ERISA or Section
412 of the Code, established or maintained by the Guarantor, any Subsidiary of the Guarantor, or
any ERISA Affiliate, or any such plan to which the Guarantor, any Subsidiary of the Guarantor or
any ERISA Affiliate is required to contribute on behalf of its employees.

          “Possible Default” shall mean any event or condition which, with notice or lapse of time or
both, would constitute an Event of Default referred to in Section 10 hereof.

          “Project Cost Bucket” shall have the meaning set forth in Section 9.8(a)(v) hereof.

          “Puttable Notes Hedge and Warrant Transactions” shall mean the purchased call option and
warrant transactions that may be entered into from time to time by the Guarantor with respect to
its common stock, in connection with the 2006 Puttable Senior Notes outstanding as of the date
hereof.

          “Receivable” shall mean a claim for moneys due or to become due, whether classified as a
contract right, account, chattel paper, instrument, general intangible or otherwise.

          “Restricted Company” shall mean the Guarantor and/or a Restricted Subsidiary, as the context
may require.

          “Restricted Bucket” shall have the meaning set forth in Section 9.8(a)(v) hereof.

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          “Restricted Subsidiary” shall mean any Subsidiary of the Guarantor other than (a) the
Borrower, and (b) any Subsidiary of the Borrower.

          All capitalized terms used herein but not herein defined that are defined in the Agreement
shall have the respective meanings ascribed to them in the Agreement.

          All financial covenants contained in this Guaranty shall be measured on each Fiscal Quarterly
Date.

Accounting Principles

          Any accounting term not specifically defined in this Section 1 or elsewhere in this Guaranty,
shall have the meaning ascribed thereto by GAAP not inconsistent with the Guarantor’s present
accounting procedures, provided that if the Guarantor notifies the Administrative Agent
that the Guarantor requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the Restatement Effective Date in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Guarantor that the
Required Lenders request an amendment to any provision hereof for such purpose), regardless of
whether any such notice is given before or after such change in GAAP or in the application thereof,
then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

          Notwithstanding the foregoing, the financial statements furnished to the Banks pursuant hereto
shall be made and prepared in accordance with GAAP consistently applied throughout the periods
involved (except as set forth in the notes thereto or as otherwise disclosed in writing by the
Guarantor to the Banks), provided, that (a) all computations determining compliance with
Section 9.14 hereof, including defined terms used therein, shall utilize accounting principles
based on the Pro Rata Consolidation Method as opposed to the full consolidation method of
accounting, (b) all computations determining compliance with Sections 9.14 and 9.15 hereof,
including defined terms used therein, shall exclude interest income received by the Borrower or any
of its Subsidiaries with respect to loans made by the Borrower or such Subsidiary pursuant to
Sections 8.06(b) and/or (d) of the Agreement, unless such loans are funded with the proceeds from
Revolving Loans or the Senior Notes and (c) such financial statements must also include a report
(in the footnotes thereto or otherwise) of the financial results of the Guarantor using accounting
principles based on the Pro Rata Consolidation Method.

          2. ACKNOWLEDGMENTS, CONSIDERATION. The Guarantor desires that the Agents and the
Banks grant the Borrower and continue the loan(s), credit and financial accommodations provided for
under the Agreement. The Agreement provides, on and subject to certain conditions therein set
forth, for Revolving Loans and other extensions of credit by the Banks to the Borrower up to an
aggregate maximum principal amount of Five Hundred Million Dollars ($500,000,000) at any time outstanding. There exists and will hereafter exist
economic and business relationships between the Guarantor and the Borrower which will be of benefit
to

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the Guarantor. The Guarantor finds it to be in the direct business and economic interest of the
Guarantor that the Borrower obtain the loans, credit and financial accommodations from the Agents
and the Banks provided for in the Agreement. The Guarantor understands that the Agents and the
Banks are willing to grant and continue the loans, credit and financial accommodations to the
Borrower provided for in the Agreement only upon certain terms and conditions, one of which is that
the Guarantor unconditionally guarantee the payment of the Debt and this instrument is being
executed and delivered by the Guarantor to satisfy that condition and in consideration of the
Agents and the Banks entering into the Agreement.

          3. GUARANTY. The Guarantor hereby absolutely, irrevocably and unconditionally
guarantees (a) the punctual and full payment of all and every portion of the Debt when due, by
acceleration or otherwise, whether now owing or hereafter arising, (b) the prompt observance and
performance by the Borrower of each and all of the Borrower’s covenants, undertakings, obligations
and agreements set forth in the Agreement, the Notes and/or any other Related Writing evidencing or
pertaining thereto, and (c) the prompt payment of all expenses and costs, including reasonable
attorneys’ fees, incurred by or for the account of the Agents and/or the Banks in connection with
any action to enforce payment or collection of the Debt from the Borrower and/or the Guarantor or
to prepare any amendments, restatements or modifications of the Agreement, the Notes, this Guaranty
or any other Related Writing. If the Debt or any part thereof shall not be paid in full punctually
when due and payable, the Agents and/or the Banks in each case shall have the right to proceed
directly against the Guarantor under this Guaranty regardless of whether or not the Agents and/or
the Banks shall have theretofore proceeded or shall then be proceeding against the Borrower or any
other Obligor or Collateral, if any, or any of the foregoing, it being understood that the Agents
and/or the Banks in their sole discretion may proceed or not proceed against the Borrower, the
other Obligors and/or any Collateral and may exercise or not exercise each right, power or
privilege that the Agents and/or the Banks may at any time have, either simultaneously or
separately and, in any event, at such time or times and as often and in such order as the Agents
and/or the Banks in their sole discretion, may from time to time deem expedient, all without
affecting the obligations of the Guarantor hereunder or the right of the Agents and/or the Banks to
demand and/or enforce performance by the Guarantor of the Guarantor’s obligations hereunder, this
being a guaranty of payment and performance and not of collection. In furtherance of the
foregoing, Guarantor acknowledges that its liability under this Guaranty shall be primary, direct
and immediate and not conditional or contingent upon the pursuit of any remedies against the
Borrower or any other Person, nor against security interests or liens available to the Agents or
any Bank, their respective successors, successors in title, endorsees or assigns and Guarantor
hereby waives any right to require that an action be brought against the Borrower or any other
Person or to require that resort be had to any collateral security or to any balance of any deposit
account or credit on the books of any Agent or Bank in favor of Borrower or any other Person.

          4. REINSTATEMENT. This Guaranty shall continue to be effective or be reinstated, as
the case may be, if any amount paid by or on behalf of the Borrower to the Agents or the Banks on
or in respect of the Debt is rescinded, restored or returned in connection with the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Borrower or any
other Obligor, or as a result of the appointment of a receiver, intervenor or conservator of, or
trustee or

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similar officer for, the Borrower or any other Obligor or any part of the property of
the Borrower or any other Obligor, or otherwise, all as though such payment had not been made.

          5. WAIVERS. The Guarantor waives any and all contractual, legal and/or equitable
rights of subrogation, contribution, exoneration, indemnity and/or reimbursement from or against
the Borrower or any other Obligor with respect to the Debt and/or any payments made by the
Guarantor on account of this Guaranty.

          6. ADDITIONAL AGREEMENTS. Regardless of the duration of time, regardless of whether
the Borrower may from time to time cease to be indebted to the Banks and irrespective of any act,
omission or course of dealing whatever on the part of the Agents and/or the Banks, the Guarantor’s
liabilities and other obligations under this Guaranty shall remain in full force and effect until
the full and final payment of all of the Debt. Without limiting the generality of the foregoing:

          6.1. The obligations of the Guarantor hereunder shall not be released, discharged or in any
way affected, nor shall the Guarantor have any rights or recourse against the Agents or the Banks
by reason of any of the following, all of which the Guarantor hereby waives:

          6.1.1 any amendment or modification of the Agreement or any Related Writing, or any other
action the Agents or the Banks may take or omit to take;

          6.1.2 any defense raised or asserted by the Borrower against enforcement of the Agreement, the
Notes or any other Related Writing or any challenge to the sufficiency or enforceability of the
Agreement, any of the Notes, this Guaranty or any other Related Writing;

          6.1.3 any failure to perfect or continue the perfection of, or any impairment of, any security
interest in or other lien on any collateral securing payment of any of the Debt or the Guarantor’s
obligations hereunder;

          6.1.4 the invalidity, unenforceability, propriety of manner of enforcement of, or loss or
change in priority of any security interest or other lien or guaranty of, the Debt;

          6.1.5 any failure to protect, preserve or insure any such collateral;

          6.1.6 failure of Guarantor to receive notice of any intended disposition of such collateral;

          6.1.7 any defense arising by reason of the cessation from any cause whatsoever of liability of
the Borrower, including, without limitation, any failure, negligence or omission by the Agents or
the Banks in enforcing their claims against the Borrower;

          6.1.8 any release, settlement or compromise of any obligation of the Borrower or other
Obligor, other than as a result of the payment of the Debt;

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          6.1.9 the existence of any claim, setoff or other rights which the Guarantor or any other
Obligor may have at any time against either Agent, any Bank or the Borrower in connection herewith
or any unrelated transaction;

          6.1.10 either Agent’s or any Bank’s election, in any case instituted under chapter 11 of the
Bankruptcy Code, of the application of section 1111(b)(2) of the Bankruptcy Code;

          6.1.11 any borrowing, use of cash collateral, or grant of a security interest by the Borrower,
as debtor in possession, under sections 363 or 364 of the Bankruptcy Code;

          6.1.12 the disallowance of all or any portion of any of either Agent’s or any Bank’s claims
for repayment of the Debt under sections 502 or 506 of the Bankruptcy Code;

          6.1.13 any act or failure to act by the Borrower or any other Person which may adversely
affect the Guarantor’s subrogation rights, if any, against the Borrower to recover payments made
under this Guaranty;

          6.1.14 the failure of the Agents and the Banks to give notice of the existence, creation or
incurring of any new or additional indebtedness or obligation of the Borrower or of any action or
nonaction on the part of any other Person whomsoever in connection with any obligation hereby
guaranteed; and

          6.1.15 without duplication, any of the events or matters described in Section 6.5 hereof; and

          6.1.16 any other fact or circumstance which might otherwise constitute grounds at law or
equity for the discharge or release of the Guarantor from its obligations hereunder (except
irrevocable payment in full of the Debt), all whether or not the Guarantor shall have had notice or
knowledge of any act or omission referred to in the foregoing clauses of this Section.

          6.2. The obligations of the Guarantor under this Guaranty shall be satisfied strictly in
accordance with the terms of this Guaranty, under all circumstances whatsoever, including, without
limitation, the existence of any claim, setoff, defense or right which the Guarantor or the
Borrower may have at any time against the Agents or the Banks or any other Person, whether in
connection with this Guaranty, the Agreement, the Notes or any other Related Writing or the
transactions contemplated hereby or any unrelated transaction.

          6.3. The Banks shall at no time be under any duty to the Guarantor to grant any loans, credit
or financial accommodation to the Borrower, irrespective of any duty or commitment of the Banks to
the Borrower, or to follow or direct the application of the proceeds of any such loans, credit or
financial accommodation.

          6.4. The Guarantor waives (a) notice of the granting of any loan to the Borrower or the
incurring of any other Indebtedness, including, but not limited to the creation of the Debt by the
Borrower or the terms and conditions thereof, (b) presentment, notice of nonpayment, demand for
payment, protest, notice of protest and notice of dishonor of the Notes

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or any other Indebtedness
incurred by the Borrower to the Banks, (c) notice of any indulgence granted to any Obligor, (d)
notice of the Banks’ acceptance of this Guaranty, and (e) any other notice to which the Guarantor
might, but for the within waiver, be entitled.

          6.5. The Agents and/or the Banks in their sole discretion may, without prejudice to their
rights under this Guaranty, and without notice to or consent of the Guarantor, at any time or times
(a) grant the Borrower whatever loans, credit or financial accommodations that the Banks, or any
thereof, may from time to time deem advisable, even if the Borrower might be in default and even if
those loans, credit or financial accommodations might not constitute Debt the payment of which is
guaranteed hereunder, (b) assent to any renewal, extension, consolidation or refinancing of the
Debt or any part thereof, (c) forbear from demanding security, if the Agents and/or the Banks shall
have the right to do so, (d) release any Obligor or Collateral or assent to any exchange of
Collateral, if any, or enforce or refrain from enforcing, or compromise, settle, waive, subordinate
or surrender such Collateral or any part thereof irrespective of the consideration, if any,
received therefor, (e) grant any waiver or consent or forbear from exercising any right, power or
privilege that the Agents and/or the Banks may have or acquire, (f) assent to any amendment,
deletion, addition, supplement or other modification in, to or of any writing evidencing or
securing any Debt or pursuant to which any Debt is created or otherwise change the time for payment
of, the terms of or the interest on the Debt or any part thereof, (g) grant any other indulgence to
any Obligor, (h) accept any Collateral for or other Obligors upon the Debt or any part thereof, (i)
fail, neglect or omit in any way to realize upon, or impair or fail to perfect any Lien on, any
Collateral or to protect the Debt or any part thereof or any Collateral therefor, (j) accept and
hold any endorsement or guaranty of payment of the Debt or any part thereof, and discharge, release
or substitute any such obligation of any such endorser or guarantor, or any Person who has given
any security interest in any collateral as security for the payment of the Debt or any part
thereof, or any other Person in any way obligated to pay the Debt or any part thereof, and to
enforce or refrain from enforcing, or compromise or modify, the terms of any obligation of any such
endorser, guarantor, or Person, (k) direct the order or manner of disposition of any collateral
security for the Debt and the enforcement of any and all endorsements and guaranties relating to
the Debt or any part thereof as the Agent or the Banks in their sole discretion may determine and
(l) generally do or refrain from doing any act or thing which might otherwise, at law or in equity,
release the liability of the Guarantor as a guarantor or surety in whole or in part, and in no case
shall the Agents or the Banks be responsible, nor shall the Guarantor be released, either in whole
or in part for any act or omission in connection with the Agents or the Banks having sold any
security at an under value.

          6.6. The Guarantor’s liabilities and other obligations under this Guaranty shall survive any
merger, consolidation or dissolution of the Guarantor, the Borrower or any other Person.

          6.7. The Guarantor’s liabilities and other obligations under this Guaranty shall be absolute
and unconditional irrespective of any lack of capacity of the Borrower or any lack of validity or
enforceability of any agreement, instrument or document evidencing the Debt or related thereto, or
any other defense available to the Guarantor in respect of this Guaranty.

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          7. REPRESENTATIONS AND WARRANTIES.

          7.1. The Guarantor represents and warrants that (a) it is a duly organized and validly
existing corporation under the laws of the State of Ohio, (b) the execution, delivery and
performance of this Guaranty are within the Guarantor’s power and authority and have been duly
authorized by all necessary corporate action, (c) this Guaranty has been duly executed and
delivered by the Guarantor and is a valid and binding obligation of the Guarantor enforceable
against the Guarantor in accordance with its terms, and (d) as of October 31, 2009, there are
56,000,000 shares authorized of Class B Common Stock of the Guarantor of which 25,583,412 shares
are issued and outstanding.

          7.2. The Guarantor further represents and warrants that this Guaranty is made in furtherance
of the purposes for which the Guarantor was incorporated and is necessary to promote and further
the business of the Guarantor and that the assumption by the Guarantor of its obligations hereunder
will result in direct financial benefits to the Guarantor.

          7.3. This Guaranty is not made in connection with any consumer loan or consumer transaction.

          7.4. The Guarantor further represents and warrants that (a) the Guarantor has received
consideration which is the reasonably equivalent value of the obligations and liabilities that the
Guarantor has incurred to the Agents and/or the Banks, (b) the Guarantor is not insolvent as
defined in any applicable state or federal statute, nor will the Guarantor be rendered insolvent by
the execution and delivery of this Guaranty to the Agents and the Banks, (c) the Guarantor is not
engaged or about to engage in any business or transaction for which the assets retained by the
Guarantor shall be an unreasonably small capital, taking into consideration the obligations to the
Agents and the Banks incurred hereunder, and (d) the Guarantor does not intend to, nor does the
Guarantor believe, that the Guarantor will incur debts beyond the Guarantor’s ability to pay as
they become due.

          7.5. The Guarantor further represents and warrants that the Guarantor has no Indebtedness
outstanding from any Subsidiary of the Guarantor to the Guarantor.

          7.6. Neither the Guarantor nor any of its Subsidiaries is subject to or in violation of any
law, regulation, or list of any government agency (including, without limitation, the U.S. Office
of Foreign Asset Control list, Executive Order No. 13224 or the USA Patriot Act) that prohibits or
limits the conduct of business with or the receiving of funds, goods or services to or for the
benefit of any Persons specified therein or that prohibits or limits any Bank or the Agents from
making any advances or extensions of credit to the Guarantor or from otherwise conducting business
with the Guarantor.

          7.7. The Guarantor is not in default in the performance, observance or fulfillment of any of
the material obligations, covenants or conditions contained in any evidence of Indebtedness or
Contingent Obligations. Neither the execution and delivery of this Guaranty, nor the consummation
of the transactions contemplated hereby, nor compliance with the terms

-10-

 

and provisions hereof will
(a) violate the provisions of any applicable law or of any applicable judgment, decree, order or
regulation of any governmental authority having jurisdiction over the Guarantor, (b) conflict with
any of the organizational documents of the Guarantor or any material permit, license or
authorization, (c) conflict with or result in a breach of any of the terms, conditions or
provisions of any restriction or of any agreement or instrument to which the Guarantor is now a
party or constitute a default thereunder, (d) other than as provided in the Security Documents,
result in the creation or imposition of any Lien upon any of the properties or assets of the
Guarantor, or (e) other than the filing of a Form 8-K and this Guaranty as an exhibit to periodic
reports on Form 10-Q and/or Form 10-K by the Guarantor with the Securities and Exchange Commission,
require any consent or approval of or filing with any governmental authority or any other Person.

          7.8. Each of the representations and warranties in the Agreement concerning the Guarantor is
true and correct.

          8. NOTICES. The Agents and/or the Banks shall be deemed to have knowledge or to have
received notice of any event, condition or thing only if the Agents and/or the Banks shall have
received written notice thereof as provided in the Agreement. A written notice shall be deemed to
have been duly given to the Guarantor whenever a writing to that effect shall have been sent by
registered or certified mail to the Guarantor at the address set forth opposite the Guarantor’s
signature below (or to such other address of the Guarantor as the Guarantor may hereafter furnish
to the Banks in writing for such purpose), but no other method of giving notice to or making a
request of the Guarantor is hereby precluded.

          9. COVENANTS. The Guarantor hereby agrees to perform and observe and to cause each of
its Subsidiaries to perform and observe, all of the following covenants and agreements:

          9.1. INSURANCE. Each Company will:

          (a) insure itself and all of its insurable properties to such extent, by such insurers
and against such hazards and liabilities as is generally done by businesses similarly
situated, it being understood that the Guarantor has obtained a fidelity bond for such of
its employees as handle funds belonging to the Borrower or the Guarantor,

          (b) give the Administrative Agent prompt written notice of any material reduction or
adverse change in that Company’s insurance coverage and the details of such reduction or
such change, and

          (c) forthwith upon any Bank’s or the Administrative Agent’s written request, furnish to
each Bank and the Administrative Agent such information in writing about that Company’s insurance as any Bank or the Administrative Agent, as applicable,
may from time to time reasonably request.

          9.2. MONEY OBLIGATIONS. Each Company will pay in full:

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          (a) prior in each case to the date when penalties would attach, all taxes, assessments
and governmental charges and levies (except only those so long as, and to the extent that,
the same shall be contested in good faith by appropriate and timely proceedings diligently
pursued and there shall be set aside on its books such reserves with respect thereto as are
required by GAAP and taxes and assessments on inconsequential parcels of vacant land), the
nonpayment of which does not materially adversely affect the financial condition of the
Guarantor for which it may be or become liable or to which any or all of its properties may
be or become subject,

          (b) all of its wage obligations to its employees in compliance with the Fair Labor
Standards Act (29 U.S.C. Section 206-207) or any comparable provisions, and

          (c) all of its other obligations calling for the payment of money (except only those so
long as and to the extent that the same shall be contested in good faith by appropriate and
timely proceedings diligently pursued) before such payment becomes overdue; provided
that, (i) notwithstanding the foregoing, the Guarantor shall not make any payment on account
of any of the Senior Notes in the event of and during the continuance of any Payment Default
and (ii) with respect to such obligations that constitute Indebtedness, the foregoing shall
only apply to such Indebtedness to the extent any violation of this clause (c) would result
in an Event of Default under Section 10(d) below.

          9.3. RECORDS. Each Company will:

          (a) at all times maintain true and complete records and books of account and, without
limiting the generality of the foregoing, maintain appropriate reserves for possible losses
and liabilities, all in accordance with GAAP applied on a basis not inconsistent with its
present accounting procedures,

          (b) at all reasonable times and upon reasonable notice permit each Bank to examine that
Company’s books and records and to make excerpts therefrom and transcripts thereof, and

          (c) permit each Agent and each Bank to discuss the affairs, finances and accounts of
the Guarantor and its Subsidiaries with, and be advised as to the same by, their respective
executive officers, partners or members (or those officers who report directly to any of
them), all at such reasonable times and intervals as either Agent or any Bank may reasonably
request.

          The Banks shall use good faith efforts to coordinate any visits or inspections so as to
minimize the interference with and disruption to the normal business operations of the Companies.

          9.4. FRANCHISES. Each Company will preserve and maintain at all times its corporate
existence, rights and franchises; provided, that this Section shall not (a) apply to (i)
any

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merger of a Subsidiary of the Guarantor into the Guarantor or into another Subsidiary of the
Guarantor, (ii) any consolidation of a Subsidiary of the Guarantor with another Subsidiary of the
Guarantor, or (iii) any dissolution of any Subsidiary of the Guarantor, except in each case where
that Subsidiary is the Borrower or (b) prohibit any merger, consolidation, dissolution or transfer
permitted by Section 8.02 of the Agreement.

          9.5. NOTICE. The Guarantor will cause its Chief Financial Officer, or in his or her
absence another officer designated by the Chief Financial Officer, to promptly notify the Banks
whenever (a) any Event of Default or Possible Default may occur (including, without limitation, any
default under any of the Senior Notes, any of the Senior Notes Indentures or any other document
relating thereto (after giving effect to any applicable grace period)) or any representation or
warranty made herein may for any reason cease in any material respect to be true and complete,
and/or (b) any Subsidiary shall (i) be in default of any material (with respect to the Guarantor)
obligation for payment of borrowed money, or, to the knowledge of the Guarantor, any material
obligations in respect of guarantees, taxes and/or Indebtedness for goods or services purchased by,
or other contractual obligations of, such Subsidiary (it being understood and agreed that for
purposes of this clause (b)(i) a “material” obligation of such Subsidiary with respect to the
Guarantor shall include any non-recourse Indebtedness constituting in principal amount more than
ten percent (10%) of the aggregate non-recourse Indebtedness of the Guarantor and its Subsidiaries)
and/or (ii) not, to the knowledge of the Guarantor, be in compliance with any law, order, rule,
judgment, ordinance, regulation, license, franchise, lease or other agreement that has or could
reasonably be expected to have a Material Adverse Effect and/or (c) the Guarantor and/or any
Restricted Subsidiary shall have received notice, or have knowledge, of any actual, pending or
threatened claim, notice, litigation, citation, proceeding or demand relating to any matter(s)
described in subclauses (b)(i) and (b)(ii) of this Section 9.5. Further, the Guarantor shall
provide to the Banks a copy of any proposed amendment or modification of any of the Senior Notes or
the Senior Notes Indentures not less than ten (10) days in advance of entering into the same,
whether or not the Guarantor believes that the consent of the Required Banks is needed therefor
pursuant to Section 9.10(h)(iii) hereof.

          9.6. ERISA COMPLIANCE.

          (a) No Company will incur any material accumulated funding deficiency within the
meaning of ERISA or any material liability to the PBGC in connection with any Plan.

          (b) Each Company will furnish promptly after receipt thereof a copy of any notice
received from the PBGC, the Internal Revenue Service, any governmental agency, or any other
party with respect to any Plan administered by such Company or any
ERISA Affiliate; provided, that this clause shall not apply to notices of
general application promulgated by the PBGC or the Internal Revenue Service.

          (c) Each Company will furnish as soon as possible and in any event within thirty (30)
days after such Company knows or has reason to know that any of the following with respect
to any Plan has occurred, a statement of the Chief Financial

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Officer of such Company setting
forth details as to such event and the action which such Company proposes to take with
respect thereto, together with a copy of any related notice if a copy of such notice is
available to such Company:

          (i) that a Reportable Event has occurred, and, promptly after filing the PBGC Form 10,
PBGC Form 10-Advance, or PBGC Form 200, as applicable, with the PBGC or otherwise disclosing
a Reportable Event to the Department of Labor in writing pursuant to an application for a
private letter ruling or exemption, each Company shall furnish copies of such filing or
disclosure of the Reportable Event and copies of each annual report (Form 5500) with respect
to each Plan established or maintained by such Company for each plan year that is required
to be filed with the Internal Revenue Service, including (x) where required by law, a
statement of assets and liabilities of such Plan as of the end of such plan year and
statements of changes in fund balance and in financial position, or a statement of changes
in net assets available for plan benefits, for such plan year, certified by an independent
public accountant satisfactory to the Banks, and (y) an actuarial statement of such Plan
applicable to such plan year, certified by an enrolled actuary of recognized standing
acceptable to the Banks;

          (ii) that a material accumulated funding deficiency has been incurred or any
application may be or has been made to the Secretary of the Treasury for a waiver or
modification of the minimum funding standard (including any required installment payments)
or an extension of any amortization period under Section 412 of the Code with respect to a
Plan;

          (iii) that a material contribution required to be made to a Plan has not been timely
made;

          (iv) that a Plan has been or may be terminated, reorganized, partitioned or declared
insolvent under Title IV of ERISA;

          (v) that a Plan has an Unfunded Current Liability giving rise to a Lien under ERISA or
the Code;

          (vi) that proceedings may be or have been instituted to terminate or appoint a trustee
to administer a Plan;

          (vii) that a proceeding has been instituted pursuant to Section 515 of ERISA to collect
a delinquent contribution to a Plan;

          (viii) that such Company will or may incur any material liability (including any
indirect, contingent or secondary liability) to or on account of the termination of or
withdrawal from a Plan under Section 4062, 4069, 4201, 4204 or 4212 of ERISA or with respect
to a Plan under Section 401(a)(29), 4971, 4975, or 4980 of the Code or Sections 409 or
502(i) or 501(1) of ERISA;

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          (ix) that such Company may incur any material liability pursuant to any employee
welfare benefit plan (as defined in Section 3(1) of ERISA) that provides benefits to retired
employees or other former employees (other than as required by Section 601 of ERISA) or any
employee pension benefit plan (as defined in Section 3(2) of ERISA);

          (x) with respect to any Multiemployer Plan, the following: (a) the imposition on any
Company of a “withdrawal liability” (as defined in Section 4201 of ERISA) that is material,
(b) a determination that such Multiemployer Plan is or is expected to be in reorganization
(as defined in Section 4241 of ERISA), endangered, or critical status (under Section 305 of
ERISA), in circumstances that could reasonably be expected to result in material liability
to such Company or any ERISA Affiliate, (c) the termination of such Multiemployer Plan, (d)
material liability incurred or expected to be incurred by a Company in connection with an
event described in this subsection or the withdrawal by any of them from a Multiemployer
Plan during a plan year;

          (xi) that a Plan has engaged in a non-exempt prohibited transaction within the meaning
of Section 4975 of the Code or Section 406 of ERISA;

          (xii) that such Company adopts or commences contributions to any Plan;

          (xiii) that such Company adopts any amendment to a Plan subject to Section 412 of the
Code which results in a material increase in contribution obligations of such Company; or

          (xiv) that any other event or condition may occur that might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or for the
appointment of a trustee to administer, any Plan, other than a standard termination.

          As used in this Section 9.6, “material” means the measure of a matter of significance which
shall be determined as being an amount equal to five percent (5%) of the applicable Company’s ERISA
Net Worth.

          9.7. FINANCIAL STATEMENTS; ETC. The Guarantor will (or will cause the Borrower to)
furnish to each Bank:

          (a) within forty-five (45) days (or fifty (50) days so long as the Guarantor will not
be reporting an Event of Default on such Form 10-Q report) after the
end of each quarter-annual fiscal period of each fiscal year of the Guarantor, a copy
of the Guarantor’s Form 10-Q quarterly report as filed by the Guarantor (or on its behalf)
with the Securities and Exchange Commission,

          (b) within forty-five (45) days (or fifty (50) days so long as the Guarantor shall not
have reported an Event of Default to the Securities and Exchange

-15-

 

Commission during such
fiscal period or on its most recent filing with the Securities and Exchange Commission)
after the end of each of the first three (3) quarter-annual fiscal periods of each fiscal
year of the Guarantor, an unaudited consolidated and consolidating balance sheet of the
Guarantor as at the end of that period and an unaudited consolidated and consolidating
statement of income of the Guarantor for the Guarantor’s current fiscal year to date, all
prepared in form and detail in accordance with GAAP, consistently applied, or the Pro Rata
Consolidation Method, as applicable, and certified by a Senior Officer of the Guarantor,
subject to changes resulting from quarter-end adjustments, together with a certificate of a
Senior Officer of the Guarantor (i) specifying the nature and period of existence of each
Event of Default and/or Possible Default, if any, and the action taken, being taken or
proposed to be taken by the Guarantor in respect thereof or if none, so stating, and (ii)
certifying that the representations and warranties of the Guarantor set forth herein are
true and correct in all material respects as of the date of such certificate, or, if not,
all respects in which they are not, and (iii) a covenant compliance worksheet in the form
and substance of Schedule 9.7(b) hereof completed as of the end of such fiscal quarterly
period,

          (c) within ninety (90) days (or ninety-five (95) days so long as the Guarantor shall
not have reported an Event of Default to the Securities and Exchange Commission during such
fiscal period or on its most recent filing with the Securities and Exchange Commission)
after the end of each fiscal year of the Guarantor, an annual report on Form 10-K as filed
by the Guarantor (or on its behalf) with the Securities and Exchange Commission, including
the complete audited consolidated balance sheets and statements of income of the Guarantor
for that year certified by an independent public accountant satisfactory to the Banks, and
an unaudited consolidating balance sheet and statement of income of the Guarantor for the
current fiscal year, each in form and detail satisfactory to the Banks, and prepared in
accordance with GAAP, consistently applied, or the Pro Rata Consolidation Method, as
applicable, together with (i) a report of the independent certified public accountant with
an opinion that is not qualified as to the scope of the audit or as to the status of the
Guarantor or the Borrower as a going concern, (ii) a certificate of a Senior Officer of the
Guarantor (X) specifying the nature and period of existence of each Event of Default and/or
Possible Default, if any, and the action taken, being taken or proposed to be taken by the
Guarantor in respect thereof or if none, so stating, and (Y) certifying that the
representations and warranties of the Guarantor set forth herein are true and correct in all
material respects as of the date of such certificate, or, if not, all respects in which they
are not, and (iii) a fully completed covenant compliance worksheet in the form and substance
of Schedule 9.7(b) hereof relating to such fiscal year,

          (d) concurrently with furnishing any quarterly financial statement or audit report
pursuant to this Section 9.7, a certificate from any Senior Officer of the Guarantor stating
whether any Company has made any guaranty or incurred any Indebtedness referred to in
Section 9.10(d) or Section 9.12(g) hereof and, if so, the details thereof,

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          (e) as soon as available, copies of all notices, reports, proxy statements and other
similar documents sent by the Guarantor to its shareholders, to the holders of any of its
debentures or bonds or the trustee of any indenture securing the same or pursuant to which
they have been issued, to any securities exchange or to the Securities and Exchange
Commission or any similar federal agency having regulatory jurisdiction over the issuance of
the Guarantor’s securities,

          (f) within forty-five (45) days (or fifty (50) days so long as the Guarantor shall not
have reported an Event of Default to the Securities and Exchange Commission during such
fiscal period or on its most recent filing with the Securities and Exchange Commission)
after the end of each fiscal quarter of the Guarantor (i) a schedule setting forth the
aggregate Measured Credit Risk as of the last day of such fiscal quarter, along with the
remaining available Measured Credit Risk permitted by Section 9.10(k) hereof and (ii) a
statement of the aggregate notional amount of all Hedge Agreements on which the Guarantor,
the Borrower, FCCC and/or any other Subsidiary of the Borrower (other than a SPE Subsidiary)
are obligated as of the last day of such fiscal quarter and the aggregate amount of the cash
risk to the Guarantor, the Borrower, FCCC and such other Subsidiaries in respect of such
Hedge Agreements as of the last day of such fiscal quarter,

          (g) within sixty (60) days (or sixty-five (65) days so long as the Guarantor shall not
have reported an Event of Default to the Securities and Exchange Commission during such
fiscal period or on its most recent filing with the Securities and Exchange Commission)
after the end of each fiscal quarter of the Guarantor, (i) a summary of the prior fiscal
quarter’s actual Cash Sources and the uses thereof by the Guarantor and the Borrower and
their respective Subsidiaries in detail reasonably acceptable to the Agent to be consistent
in form with Schedule B attached to the Side Letter and (ii) a cumulative accounting of the
uses of Cash Sources (including the amount of each application thereof on a
category-by-category basis) since January 31, 2009 with respect to the projects listed on
Schedule A attached to the Side Letter by the Guarantor, the Borrower and their respective
Subsidiaries,

          (h) within forty-five (45) days (or fifty (50) days so long as the Guarantor shall not
have reported an Event of Default to the Securities and Exchange Commission during such
fiscal period or on its most recent filing with the Securities and Exchange Commission)
after the end of each semi-annual fiscal period of each fiscal year of the Guarantor (which
end on January 31 and July 31 of each year), an updated budget of projected Cash Sources and
the uses thereof, for the portion of the fiscal year following such January 31 or July 31
date, as applicable, and the immediately subsequent
fiscal year of the Guarantor, such updated budget of projected Cash Sources and the
uses thereof to be consistent in form with Schedule B attached to the Side Letter,

          (i) within five (5) Cleveland Banking Days of receipt, notice of any event generating
External Capital of any Company in excess of One Million Dollars

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($1,000,000) and whether
such External Capital is allocable to the Project Cost Bucket, the Discretionary Bucket or
the Restricted Bucket as provided in Section 9.8(a)(v) hereof,

          (j) concurrently with furnishing any covenant compliance worksheet under Section 9.7(b)
or (c) above, such schedules, details and explanations supporting the calculations contained
in such covenant compliance worksheet as may be reasonably required by the Banks,

          (k) within forty-five (45) days (or fifty (50) days so long as the Guarantor shall not
have reported an Event of Default to the Securities and Exchange Commission during such
fiscal period or on its most recent filing with the Securities and Exchange Commission)
after the end of each fiscal quarter of the Guarantor, a summary of the allocation of
External Capital to the Project Cost Bucket, the Discretionary Bucket and the Restricted
Bucket as provided in Section 9.8(a)(v) hereof,

          (l) within forty-five (45) days (or fifty (50) days so long as the Guarantor shall not
have reported an Event of Default to the Securities and Exchange Commission during such
fiscal period or on its most recent filing with the Securities and Exchange Commission)
after the end of each fiscal quarter of the Guarantor, a schedule setting forth the face
amount and date of each outstanding Performance Surety Bond issued at the request of the
Guarantor pursuant to an Indemnity Agreement along with all other Surety Bonds then
outstanding,

          (m) within one hundred twenty (120) days after the end of each fiscal year of the
Guarantor, a calculation of the consolidated leverage of the Guarantor as of the last day of
such fiscal year, with such details and explanations as may be reasonably required by the
Banks, and

          (n) forthwith upon Agent’s or any Bank’s written request, such other information of any
Company’s financial condition, properties and operations, including, but not limited to,
financial statements and any management letters of accountants addressed to the Guarantor or
the Borrower in each case as the Agent or such Bank may from time to time reasonably
request.

          9.8. CASH SOURCES AND PERMITTED USES OF CASH SOURCES. (a) Notwithstanding anything to
the contrary in this Guaranty, the Agreement or any other Related Writing, the Guarantor and the
Borrower shall only use, and cause each of their respective Subsidiaries to only use, Cash Sources
for any or all of the following purposes (the “Permitted Uses of Cash Sources”):

          (i) funding up to one hundred percent (100%) of the anticipated investment in real
estate properties, including equity investments for purposes of (A) paying development costs
and (B) keeping any related development loan current with respect to any principal and/or
interest installments thereon (limited to the projects set forth on Schedule A attached to
the Side Letter, in each case as reflected on Schedule B

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attached to the Side Letter;
provided that the Companies shall only be permitted to spend up to the maximum
aggregate limit for (x) “total property level uses of capital,” (y)
“hedges/swaps/paydowns/buyouts” and (z) “capital expenditures”, as set forth on said
Schedule A;

          (ii) to make partial amortization payments on maturing Indebtedness of the Borrower and
its Subsidiaries in order to refinance, restructure and/or extend such Indebtedness and/or
to Retire non-recourse mortgage Indebtedness of the Borrower and its Subsidiaries at a
discount in advance of its maturity up to an aggregate amount of (unless otherwise approved
by the Majority Banks) (x) Forty Million Dollars ($40,000,000) during any fiscal year of the
Borrower and (y) One Hundred Twenty Million Dollars ($120,000,000), in the aggregate, during
the 2009, 2010 and 2011 fiscal years of the Borrower; provided that (A) unused
amounts under such $40,000,000 annual limitation for any of the aforementioned fiscal years
shall roll into, and thereby increase on a dollar-for-dollar basis, the $40,000,000 annual
limitation for subsequent fiscal years and (B) such limitations on the repayment of
Indebtedness shall not apply to investments pursuant to clause (i) above in projects set
forth on Schedule A attached to the Side Letter;

          (iii) to Retire any or all of the remaining 2006 Puttable Senior Notes and, subject to
the conditions set forth in the penultimate sentence of Section 9.13(d) hereof, to Retire or
reserve for any or all of the remaining Senior Notes;

          (iv) to repay or prepay the Loans in accordance with the terms of the Agreement; and

          (v) with respect to any External Capital (other than External Capital allocable to the
Project Cost Bucket as provided below) in excess of the Two Hundred Fifty Million Dollars
($250,000,000) of External Capital referred to below in subclauses (y) and (z) of the
proviso contained in this clause (v), the reduction of the Commitments (including the
Reserved Commitment) by an amount equal to fifty percent (50%) of such External Capital, and
the corresponding prepayment of the Loans, as required by Section 5.07 of the Agreement,
and, only then following any such reduction and, if required, prepayment, utilization of an
amount equal to the other fifty percent (50%) of such External Capital at the Borrower’s or
the Guarantor’s discretion for any purposes not otherwise prohibited by this Guaranty, the
Agreement or any other Related Writing; provided that, notwithstanding the foregoing
requirements with respect to the utilization of External Capital for the reduction of the
Commitments and the corresponding prepayment of the Loans, (x) the first One Hundred Million
Dollars ($100,000,000) of External Capital generated from sales of development projects
listed on Schedule A attached to the Side Letter or joint venture or other equity interests in any such
projects may be utilized by the Borrower and/or the Guarantor solely for purposes of
covering costs associated with any development project listed on said Schedule A (the
“Project Cost Bucket”), (y) the first One Hundred Million Dollars ($100,000,000) of External
Capital generated after October 8, 2009 (excluding net proceeds from the 2009

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Convertible
Senior Notes and from the refinancing of the Millenium project consummated on or about
October 29, 2009) not constituting External Capital allocable to the Project Cost Bucket may
be utilized at the Borrower’s and/or the Guarantor’s discretion for any purposes not
otherwise prohibited by this Guaranty, the Agreement or any other Related Writing (the
“Discretionary Bucket”) and (z) following the generation of the first One Hundred Million
Dollars ($100,000,000) of External Capital as contemplated by clause (y) above, the next One
Hundred Fifty Million Dollars ($150,000,000) of External Capital generated after October 8,
2009 (excluding net proceeds from the 2009 Convertible Senior Notes and from the refinancing
of the Millenium project consummated on or about October 29, 2009) not constituting External
Capital allocable to the Project Cost Bucket or the Discretionary Bucket may be utilized at
the Borrower’s and/or the Guarantor’s discretion towards any of the Permitted Uses of Cash
Sources included in clauses (i), (ii), (iii) (but only towards the Retirement of the 2006
Puttable Senior Notes) and (iv) of this Section 9.8(a) (the “Restricted Bucket”).

          (b) Notwithstanding the foregoing, (i) Cash Sources may not be applied to the voluntary
Retirement of recourse Indebtedness of the Borrower or the Guarantor or their respective
Subsidiaries, other than the Debt or any Indebtedness of a Subsidiary (other than the
Borrower) that is recourse only to such Subsidiary, if a Material Possible Default or an
Event of Default then exists or would occur as a result thereof and (ii) subject to the
previous clause (i), and to the extent no breach or default of any provision of this
Guaranty, the Agreement or any other Related Writing occurs as a result thereof, the
Borrower shall be permitted to invest a total of Twenty Million Dollars ($20,000,000) of
Cash Sources during the term of the Agreement without regard to the foregoing restrictions
on Permitted Uses of Cash Sources.

          (c) Cash Sources may be held in Unrestricted Cash or Cash Equivalents until applied to
the foregoing Permitted Uses of Cash Sources.

          (d) The Guarantor shall, and shall cause each of its Subsidiaries to, adhere to the
uses of capital attached as Schedule A to the Side Letter; provided that the
Guarantor and its Subsidiaries shall be permitted to utilize up to Twenty-Five Million
Dollars ($25,000,000) annually of the “Contingency” amount set forth on Schedule B attached
to the Side Letter (it being acknowledged and agreed that such Twenty-Five Million Dollars
($25,000,000) does not increase the annual or aggregate “Contingency” amount set forth on
said Schedule B).

          (e) For the avoidance of doubt, any External Capital that results in a mandatory
reduction of the Commitments pursuant to Section 9.8(a)(v) hereof and Section 5.07 of the
Agreement and that is not required to be used to prepay the Loans or
fund the Reserve Deficiency Account pursuant to Section 5.07 of the Agreement may only
be applied by the Borrower and/or the Guarantor to any of the Permitted Uses of Cash Sources
set forth in Sections 9.8(a)(i), (ii), (iii) and (iv) hereof.

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          9.9. COMBINATIONS, BULK TRANSFERS. (a) No Restricted Company will be a party to any
consolidation or merger or lease, sell or otherwise transfer all or any substantial part of its
assets or sell, pledge, hypothecate or transfer its stock or other ownership interests in any
Subsidiary of the Guarantor; provided, that this Section 9.9 shall not apply to any
transfer (as opposed to a pledge) by any Restricted Subsidiary of its assets effected in the normal
course of business on commercially reasonable terms and provided, further, that a
Restricted Company shall only be permitted to pledge its stock or other ownership interests in any
of its Subsidiaries that is a single asset or special purpose entity (it being acknowledged and
agreed that the Borrower is not and shall not be a single asset or special purpose entity) (each, a
“Pledged Subsidiary”) and such pledge may only secure the following:

          (i) additional or mezzanine Indebtedness incurred with respect to a project encumbered
by a first mortgage at the time such additional or mezzanine Indebtedness is incurred, so
long as such additional or mezzanine Indebtedness is permitted under Section 9.10 hereof;
provided, that the
sum of the then existing Indebtedness with respect to such project plus such
additional or mezzanine Indebtedness does not exceed eighty percent (80%) of the appraised
value of the project at the time such additional or mezzanine Indebtedness is incurred; or

          (ii) primary Indebtedness (or the re-financing thereof) incurred solely for the purpose
of acquiring real property or for construction or redevelopment purposes, so long as such
primary Indebtedness is permitted under Section 9.10 hereof; provided, that such
primary Indebtedness (or the re-financing thereof) does not exceed one hundred percent
(100%) of the appraised value of the acquired property at the time of such financing or
re-financing, as applicable.

          (b) In addition to the foregoing, except to the extent permitted by Section 9.19(b)(i)
hereof, (i) such pledges of stock or other ownership interests in a Pledged Subsidiary may
only be made to secure Indebtedness incurred with respect to a project owned or to be
acquired by such Pledged Subsidiary (or any direct or indirect wholly-owned Subsidiary of
such Pledged Subsidiary) and not to secure Indebtedness incurred with respect to a project
owned or to be acquired by any other Subsidiary, (ii) such pledges of stock or other
ownership interests in a Pledged Subsidiary given to secure Indebtedness described in
Section 9.9(a)(i) above may only secure the additional or mezzanine Indebtedness being
incurred with respect to such project and not all of the Indebtedness on such project and
(iii) such pledges of stock or other ownership interests in a Pledged Subsidiary given to
secure Indebtedness described in Section 9.9(a)(ii) above may only secure the primary
Indebtedness being incurred with respect to the acquisition of real property or such
construction or redevelopment purposes.

          (c) The Guarantor will deliver to the Agents and the Banks an updated schedule, in the
form of Schedule 9.9 attached hereto, listing all of the properties as to which a pledge of
stock or other ownership interests has been provided to a lender in accordance with Section
9.9(b) above, within forty-five (45) days after each Fiscal Quarterly Date.

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          9.10. BORROWINGS. No Restricted Company will create, assume or suffer to exist any
Indebtedness of any kind including, but not limited to, leases required to be capitalized under
Financial Accounting Standards Board Standard No. 13 or any reimbursement obligations or other
liabilities with respect to letters of credit issued for any Restricted Company’s account;
provided, that this Section 9.10 shall not apply to any of the following (collectively,
“Permitted Debt”):

          (a) [Reserved],

          (b) any loan obtained from the Guarantor or any Restricted Subsidiary by any Restricted
Subsidiary, provided, that (i) such loans shall be made only in the ordinary course
of business and (ii) Guarantor shall not cause or permit any Restricted Subsidiary to take
any action to enforce any payment of any loan made by a Restricted Subsidiary to another
Restricted Subsidiary without the prior written consent of the Banks,

          (c) any real estate loan heretofore or hereafter obtained or guaranteed by a Restricted
Company for the purpose of financing any building or purchasing equipment, furniture or
fixtures related thereto to be used only for the business of a Restricted Company,
provided, that (i) no such loan shall exceed eighty percent (80%) of the lender’s
appraisal of the real estate being financed and (ii) except as permitted in Sections
9.12(d), (f), (g), (h), (i), (j), (l) and (m) below, no Restricted Company (other than a
Restricted Company whose sole assets consist of contiguous parcels of land which are being
purchased or developed with such financing, the improvements, if any, thereon, furniture,
fixtures and other equipment used in connection therewith, receivables arising from tenants
in connection therewith and the proceeds of such receivables and other property directly
obtained from the ownership of such assets) shall have any personal liability for such
Indebtedness, the creditors’ recourse being solely to the property being pledged as
collateral for such Indebtedness and the income therefrom,

          (d) any loan or letter of credit that is obtained or guaranteed by a Restricted
Company; provided, that such Restricted Company’s aggregate personal liability in
respect of all such loans (other than any loan obtained by such Restricted Company and
permitted by any other clause of this Section 9.10) and letters of credit and in respect of
all guaranteed loans referred to in clause (f) of Section 9.12 hereof, does not then exceed
and after incurring such loan or letter of credit or the guarantee thereof in question would
not exceed, Ten Million Dollars ($10,000,000),

          (e) leases required to be capitalized under Financial Accounting Standards Board
Standard No. 13 in the aggregate amount for all Restricted Subsidiaries of Eighteen Million
Dollars ($18,000,000); provided, that (i) the foregoing dollar limitation shall not
apply to any such capitalized lease, the obligations of which are not recourse to the
Guarantor or the Borrower or any of its Subsidiaries (other than Barclays Event Center, LLC,
a Delaware limited liability company) and which relates solely to the Atlantic Yards Arena
project located in Brooklyn, New York and (ii) all Indebtedness

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incurred under Section 8.04(k) of the Agreement shall be included, without duplication, in calculating whether the
dollar limitation contained in this clause (e) has been met,

          (f) any secured Indebtedness of a Restricted Company created in the course of
purchasing or developing real estate or financing construction (or any refinancings thereof)
or other improvements thereon or purchasing furniture, fixtures or other equipment therefor
or any other Indebtedness of any Restricted Company or any refinancings thereof;
provided, that, except as permitted in Sections 9.12(d), (f), (g), (h), (i), (j),
(l) and (m) below, no Restricted Company (other than a Restricted Company whose sole assets
consist of contiguous parcels of land which are being purchased or developed with such
financing, the improvements, if any, thereon, furniture, fixtures and other equipment used
in connection therewith, receivables arising from tenants in connection therewith and the
proceeds of such receivables and other property directly obtained from the ownership of such
assets) shall have any personal liability for such Indebtedness, the creditors’ recourse
being solely to the property being pledged as collateral for such Indebtedness and the
income therefrom,

          (g) any Indebtedness or other obligations under any Performance Surety Bond or the
related Indemnity Agreement; provided, that the terms and conditions of each such
Indemnity Agreement shall be substantially the same as the terms and conditions of the
Agreement of Indemnity dated November 14, 2005, between the Guarantor and Zurich American
Insurance Company, that was previously delivered to the Agents,

          (h) any Indebtedness or obligations of the Guarantor under the Senior Notes existing as
of the date hereof and any refinancing of any such Senior Notes as permitted by Section
9.13(d) hereof, the Puttable Notes Hedge and Warrant Transactions and/or the Convertible
Notes Hedge Transactions; provided, that:

          (i) [Reserved];

          (ii) the Indebtedness represented by the Senior Notes, the Puttable Notes Hedge
and Warrant Transactions and the Convertible Notes Hedge Transactions shall be
unsecured, pari passu with the Guarantor’s obligations under this Guaranty and
structurally subordinate to the Debt;

          (iii) none of the Senior Notes or the Senior Notes Indentures shall be amended
or modified (x) without the prior written consent of the Required Banks including,
without limitation, (A) to allow the maturity of any of the 2003 Senior Notes, the
2004 Senior Notes or the 2005 Senior Notes to be less than ten (10) years from the
date of issuance, (B) to allow the maturity of any of the 2006 Puttable Senior Notes
or the 2009 Convertible Senior Notes to be less than five (5) years from the date of
issue, (C) to allow the maturity of any of the 2009 Puttable Senior Notes to be
earlier than July 1, 2014, (D) to provide for payment of interest under any of the
Senior Notes more frequently than quarterly,

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(E) to provide additional circumstances pursuant to which holders of the 2006 Puttable Senior Notes or any of the 2009
Puttable Senior Notes may put the same to the Guarantor or to increase the put rate
available to such holders, other than as provided in the 2006 Puttable Senior Notes
Indenture or the 2009 Puttable Senior Notes Indenture, as applicable, (F) to provide
any circumstances pursuant to which holders of the 2009 Convertible Senior Notes may
put to the Guarantor, or any additional circumstances pursuant to which such holders
may require the Guarantor to repurchase the 2009 Convertible Senior Notes, other
than as provided in the 2009 Convertible Senior Notes Indenture as the same exists
as of the date hereof, (G) to permit the Guarantor to redeem any of the Senior Notes
prior to their maturity other than in accordance with Section 9.13(d) or (e) of this
Guaranty or to modify any redemption provisions contained in the Senior Notes,
including adding additional redemption provisions, or (H) to increase the rate of
interest payable on or any fees associated with any of the Senior Notes and (y) to
the extent any such amendment or modification is to be entered into in connection
with a refinancing permitted by Section 9.13(d) hereof, without the prior written
consent of the Administrative Agent; provided that amendments or
modifications that do not adversely affect the Agreement or this Guaranty or their
relationship to any of the Senior Notes or the Senior Notes Indentures shall not
require the consent of the Required Banks as provided in subclause (x) of this
Section 9.10(h)(iii) (but may require the consent of the Administrative Agent to the
extent provided in Section 9.13 hereof);

          (iv) the outstanding and unredeemed principal amount of the 2003 Senior Notes,
the 2004 Senior Notes and the 2005 Senior Notes shall not, at any time, exceed Five
Hundred Fifty Million Dollars ($550,000,000) in the aggregate;

          (v) the outstanding and unredeemed principal amount of the 2006 Puttable Senior
Notes and 2009 Puttable Senior Notes shall not, at any time, exceed Three Hundred
Five Million One Hundred Thousand Dollars ($305,100,000) in the aggregate;

          (vi) without duplication of the limitation set forth in the immediately
preceding clause (v), the outstanding and unredeemed principal amount of the 2009
Puttable Senior Notes shall not, at any time, exceed Two Hundred Million Dollars
($200,000,000) in the aggregate;

          (vii) the outstanding and unredeemed principal amount of the 2009 Convertible
Senior Notes shall not, at any time, exceed Two Hundred Million Dollars
($200,000,000) in the aggregate;

          (viii) the full amount of the Senior Notes have been issued and the Guarantor
has no further right under this Guaranty or the Agreement to issue any additional
Senior Notes; and

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          (ix) the terms and conditions of the Convertible Notes Hedge Transactions shall
not be amended or modified without the prior written consent of the Required Banks,

          (i) [Reserved],

          (j) any Indebtedness or obligations of the Guarantor under the Surety Bonds or the
related Indemnity Agreements to a maximum aggregate principal amount of Thirty Million
Dollars ($30,000,000) minus the aggregate stated amount of all Letters of Credit
then outstanding for the account of the Borrower under the Agreement in excess of Ten
Million Dollars ($10,000,000); provided, such Indebtedness is fully subordinated to
the obligations of the Guarantor under this Guaranty as set forth in the related
Subordination Agreement,

          (k) any Indebtedness of the Guarantor under any Hedge Agreement relating to
Indebtedness otherwise permitted under this Guaranty or the Agreement, provided that
any Hedge
Agreement proposed to be entered into or guaranteed by the Guarantor, along with all
Hedge Agreements entered into or guaranteed by the Borrower, FCCC or any other Subsidiary of
the Borrower (other than a SPE Subsidiary), in each case with a Person that is not a Bank
that results in an aggregate Measured Credit Risk for all Hedge Agreements entered into with
Persons other than a Bank, in excess of Thirty Three Million Five Hundred Thousand Dollars
($33,500,000), shall require the prior written consent of the Required Banks (such written
consent to be delivered by each consenting Bank to the Administrative Agent not more than
three (3) Cleveland Banking Days after the request for such consent has been delivered by
the Guarantor to the Administrative Agent, provided that each Bank that does not
deliver such written consent within such three (3) Cleveland Banking Day period shall be
deemed to have denied the request for such Hedge Agreement),

          (l) any Indebtedness of the Guarantor with respect to deferred taxes that are due and
payable in excess of twelve (12) months from the date of the incurrence of such tax
liability,

          (m) any guarantee or indemnity permitted by Section 9.12 hereof to the extent such
guarantee or indemnity constitutes Indebtedness,

          (n) any Indebtedness of the Guarantor permitted by Section 9.13(d) hereof that
refinances the Indebtedness evidenced by the Senior Notes, or

          (o) any Indebtedness of the Guarantor, up to a maximum principal amount outstanding at
any time of Five Million Dollars ($5,000,000), which is incurred in the ordinary course of
business; provided that all Indebtedness incurred under Section 8.04(j) of the
Agreement shall be included, without duplication, in calculating whether the dollar
limitation contained in this clause (o) has been met.

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          9.11. LIENS. No Restricted Company will:

          (a) sell or otherwise transfer any Receivables, including, but not limited to, any
mortgages held by the Guarantor or any of its Subsidiaries, other than in the ordinary
course of business,

          (b) acquire any property subject to any land contract, conditional sale contract or
other title retention contract, or

          (c) suffer or permit any property now owned or hereafter acquired by it to be or become
encumbered by any mortgage, security interest, financing statement, encumbrance or Lien of
any kind or nature;

provided, that this Section 9.11 shall not apply to:

          (i) any Lien for a tax, assessment or other governmental charge or levy so long as the
payment thereof is not required by Section 9.2(a) hereof,

          (ii) any Lien securing only worker’s compensation, unemployment insurance or similar
obligations,

          (iii) any mechanic’s, warehousemen’s, carrier’s or similar common law or statutory Lien
incurred in the normal course of business,

          (iv) any mortgage, security interest or other Lien encumbering property of any
Restricted Subsidiary for the purpose of securing any Permitted Debt owing by only that
Subsidiary,

          (v) any mortgage, security interest or other Lien encumbering property of a Restricted
Company and securing any Indebtedness or liability of such Restricted Company by Section
9.10(c) hereof,

          (vi) any Lien permitted by Section 8.05 of the Agreement,

          (vii) any Indemnification Lien granted pursuant to an Indemnity Agreement related to
one or more Performance Surety Bonds permitted under this Guaranty,

          (viii) any financing statement perfecting a security interest permitted by this Section
9.11, or

          (ix) any Lien permitted by Sections 9.19(b)(i) and (vi) hereof.

          9.12. GUARANTEES. No Restricted Company will be or become a guarantor of any kind;
provided, that this Section 9.12 shall not apply to:

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          (a) any endorsement of a check or other medium of payment for deposit or collection
through normal banking channels or any similar transaction in the normal course of business,

          (b) any indemnity or guaranty of a surety bond for the performance by a customer of a
Restricted Company of the customer’s obligations under a land development contract,

          (c) any guarantee by the Guarantor of a real estate loan permitted by clause (c) of
Section 9.10 hereof,

          (d) subject to the limitations set forth in Section 9.19 hereof, any Completion
Guaranty with respect to a real estate building project, if the Guarantor or any Company is
the developer of such project or has a property interest in such project (including, but not
limited to, a Non-Affiliate Construction Project),

          (e) the guarantee by the Guarantor set forth in Section 3 hereof,

          (f) any other guarantee by the Guarantor, provided, that the Guarantor’s
aggregate personal liability in respect of all of such other guarantees and all Indebtedness
described in subsection (a) of the definition of Indebtedness (other than any loan permitted
by clauses (a) through (c), inclusive, of Section 9.10 hereof) does not exceed, and after
making the guarantee in question would not exceed, Ten Million Dollars ($10,000,000),

          (g) any unsecured guarantee by the Guarantor or any Restricted Subsidiary of the equity
investment or performance of a Subsidiary of the Guarantor (other than any Indebtedness of
such Subsidiary incurred for borrowed money) in connection with a real estate project in
favor of a partner or member, or a partnership or limited liability company in which such
Subsidiary is a general partner or a member, as applicable, when the Guarantor or such
Restricted Subsidiary, as the case may be, deems it to be in its best interest not to be a
partner, a member, or have a direct interest in the partnership or limited liability
company, as applicable,

          (h) the guarantee by the Guarantor of the obligations of Franklin Town Towers
Associates located in Philadelphia, Pennsylvania, with respect to Museum Towers, in the
original principal amount of Twenty Million Four Hundred Thousand Dollars ($20,400,000);
provided, that such obligations shall only be amended, restated, extended or
refinanced on terms and conditions substantially similar to those initially applicable to
such obligations and the aggregate principal amount of such obligations will not be
increased thereby,

          (i) any guarantee or indemnity by the Guarantor or any Restricted Subsidiary for fraud,
misappropriation, misapplication or environmental problems, as are usual and customary in
commercial mortgage loan transactions entered into by the

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Guarantor and/or such Restricted Subsidiary, provided, that such a guarantee or indemnity may be given by the
Guarantor or a Restricted Subsidiary, but not both (unless such Restricted Subsidiary is
also the borrower in the particular commercial mortgage loan transaction), in connection
with any particular commercial mortgage loan transaction,

          (j) subject to Section 9.10(k) hereof, any guarantee by the Guarantor of an unsecured
Hedge Agreement permitted by Section 8.04 of the Agreement entered into by a Subsidiary of
the Guarantor (other than the Borrower),

          (k) the MTA Guaranty; provided, that (i) the maximum principal amount of the
Guarantor’s obligations thereunder shall not exceed Thirty Million Dollars ($30,000,000) and
(ii) the Guarantor shall not enter into or agree to enter into any amendment, supplement or
other modification to the MTA Guaranty that, in the opinion of the Agents, is or would be
materially adverse to the interests of the Banks,

          (l) subject to the limitations set forth in Section 9.19 hereof, any Completion
Guaranty, or

          (m) the guarantee by the Guarantor in connection with 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 2003-B, provided, that such guarantee obligations shall not be amended,
restated or otherwise modified without the prior written consent of the Banks.

          9.13. REDEMPTIONS, PREPAYMENTS, AND DIVIDENDS.

          (a) The Guarantor will not directly or indirectly purchase, acquire, redeem or retire
any shares of its Capital Stock at any time outstanding or set aside funds for any such
purpose, except that, so long as no Event of Default or violation of Section 9.14 hereof
shall have occurred or will result after giving effect thereto, and so long as the Debt
remains outstanding, Guarantor shall be permitted to purchase shares of its Class A Common
Stock, in an amount not to exceed Four Million Dollars ($4,000,000) in the aggregate unless
the prior written approval of the Administrative Agent is obtained, such purchases to be
made solely for purposes of covering employees’ minimum statutory tax withholding
requirement in connection with the vesting of restricted stock granted under the Guarantor’s
1994 Stock Plan, as amended, and only as the need to pay such minimum statutory tax
withholding requirement arises.

          (b) The Guarantor will not directly or indirectly pay any principal of, make sinking
fund payments in respect of or purchase any Indebtedness now or hereafter owing by the
Guarantor other than any principal payment, sinking fund payment or purchase the omission of
which would (or with the giving of notice or the lapse of any

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applicable grace period or both would) accelerate, or give anyone the right to accelerate, the maturity of such
Indebtedness in accordance with the original terms thereof; provided, that,
notwithstanding the foregoing, (i) the Guarantor shall not make any payment on account of
any of the Senior Notes in the event of and during the continuance of any Payment Default,
(ii) the Guarantor shall be permitted to Retire, refinance and/or reserve for any or all of
the Senior Notes (other than the 2006 Puttable Senior Notes) only to the extent permitted by
Section 9.13(d) below, (iii) the Guarantor shall be permitted to Retire any or all of the
2006 Puttable Senior Notes only as contemplated by Section 9.8(a)(iii) hereof and only with
proceeds of Loans requested under the Reserved Commitment or funds on deposit in the Reserve
Deficiency Account if Retired prior to their stated maturity and (iv) the Guarantor shall be
permitted to refinance any or all of the 2006 Puttable Senior Notes only to the extent
permitted by Section 9.13(d) below.

          (c) The Guarantor will not directly or indirectly declare or pay any Dividends.

          (d) The Guarantor shall not directly or indirectly exercise its optional redemption
rights, under the terms of any of the Senior Notes (other than the 2006 Puttable Senior
Notes) or the Senior Notes Indentures (other than the 2006 Puttable Senior Notes Indenture)
(it being understood and agreed that as of the date of this Guaranty, the Guarantor has no
optional redemption rights under the 2009 Convertible Senior Notes or the 2009 Convertible
Senior Notes Indenture), to redeem any of the Senior Notes (other than the 2006 Puttable
Senior Notes) prior to its respective maturity date, or to deposit monies or other assets
with the trustee under the Senior Notes Indentures (other than the 2006 Puttable Senior
Notes Indenture) for the payment of any one or more Senior Notes (other than the 2006
Puttable Senior Notes) or the release of restrictive covenants thereunder, by defeasance,
without in each case the prior written consent of the Required Banks, except that the
Guarantor may take any of the above listed actions in connection with a refinancing of any
or all of the Indebtedness represented by the Senior Notes without the prior consent of the
Banks, in each case only so long as the terms and conditions applicable to such refinancing
are satisfactory to, and pursuant to documentation approved by, the Administrative Agent.
Notwithstanding anything to the contrary in this Section 9.13(d) or Section 9.13(e) below,
upon the full Retirement of the 2006 Puttable Senior Notes, the extension of the maturity of
the 2006 Puttable Senior Notes in connection with a refinancing on terms and conditions
satisfactory to the Administrative Agent or the establishment of the Reserve Commitment
and/or the funding in full of the Reserve Deficiency Account for the payment of the 2006
Puttable Senior Notes, and so long as (A) the Guarantor has provided evidence satisfactory
to the Administrative Agent that the Borrower, the Guarantor and their respective
Subsidiaries have sufficient Cash Sources to fund anticipated uses of such Cash Sources
consistent with Schedule B attached to the Side Letter and (B) no Material Possible Default
or Event of Default then exists or would occur as a result thereof, the Guarantor shall be
permitted to utilize External Capital allocated to the Discretionary Bucket for purposes of
Retiring and/or reserving for any or all of the remaining Senior Notes. Executed copies of
any and all documentation (whether or not such

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documentation is subject to the approval of the Administrative Agent as required by this Section 9.13(d)) evidencing or relating to any
such refinancing shall be delivered to the Administrative Agent within five (5) Cleveland
Banking Days of the execution of such documentation.

          (e) Other than with proceeds of Loans requested under the Reserved Commitment or funds
on deposit in the Reserve Deficiency Account, the Guarantor shall not directly or indirectly
exercise its optional redemption rights, under the terms of any of the 2006 Puttable Senior
Notes or the 2006 Puttable Senior Notes Indenture, to Retire any of the 2006 Puttable Senior
Notes prior to its maturity date, or to deposit monies or other assets with the trustee
under the 2006 Puttable Senior Notes Indenture for the payment of any one or more 2006
Puttable Senior Notes or the release of restrictive covenants thereunder, by defeasance,
without in each case the prior written consent of the Required Banks.

          (f) The Guarantor shall not cause the Borrower to declare, pay, or make, and shall not
accept payment of, any Dividends in respect of Capital Stock of the Borrower other than as
permitted under Section 8.14 of the Agreement, or, notwithstanding any other provision of
the Agreement or this Guaranty to the contrary, any loans or advances to the Guarantor.

          9.14. CASH FLOW COVERAGE RATIO. The Guarantor will not permit the Cash Flow Coverage
Ratio, for any Test Period, to be less than 2.25:1.00.

          For purposes of calculating the Cash Flow Coverage Ratio, Net Operating Income for recently
completed development or redevelopment properties and debt service on construction and interim
loans, land loans, and other financings secured by such assets shall be excluded until the earlier
of (a) ninety percent (90%) occupancy (based on a rentable square footage basis or, with respect to
any residential property, based on the number of units for such property sold or occupied, as
applicable) of the improvements related to such development property or financed with the proceeds
of any such loan, and (b) twenty-four (24) months following the issuance of a certificate of
occupancy with respect to such improvements, so long as such debt service is covered by a funded
and available loan reserve or a deposit in the form of Cash or a letter of credit that is
sufficient to cover applicable operating
shortfalls and debt service payments. If such reserve or deposit is insufficient to cover
such debt service or is unavailable, Net Operating Income and such debt service from the applicable
assets and financings shall be included in the calculation of the Cash Flow Coverage Ratio until
such time as such reserve or deposit is sufficient and available. The Guarantor shall provide the
Administrative Agent with a projection of the interest reserve or deposit necessary to cover debt
service (from the applicable project loan budget), which shall be subject to the Administrative
Agent’s reasonable review and approval.

          9.15. CONSOLIDATED SHAREHOLDERS’ EQUITY. The Guarantor will not permit the
Consolidated Shareholders’ Equity to be less than (a) on the Restatement Effective Date, Two
Billion Three Hundred Million Dollars ($2,300,000,000) and (b) at any date of

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determination
thereafter, the sum of (i) Two Billion Three Hundred Million Dollars ($2,300,000,000), plus
(ii) seventy-five percent (75%) of the net cash proceeds from any sale or issuance of equity by the
Guarantor.

          9.16. ENVIRONMENTAL COMPLIANCE. The Guarantor will comply with any and all
Environmental Laws including, without limitation, all Environmental Laws in jurisdictions in which
the Guarantor or any Restricted Subsidiary owns property, operates, arranges for disposal or
treatment of hazardous substances, solid waste or other wastes, accepts for transport any hazardous
substances, solid waste or other wastes or holds any interest in real property or otherwise. The
Guarantor will furnish to the Banks promptly after receipt thereof a copy of any notice the
Guarantor or any Restricted Subsidiary may receive from any governmental authority, private person
or entity or otherwise that any litigation or proceeding pertaining to any environmental, health or
safety matter has been filed or is threatened against the Guarantor or such Restricted Subsidiary,
any real property in which the Guarantor or such Restricted Subsidiary holds any interest or any
past or present operation of the Guarantor or such Restricted Subsidiary. The Guarantor will not,
and will not knowingly allow any other Person to, store, release or dispose of hazardous waste,
solid waste or other wastes on, under or to any real property in which the Guarantor holds any
direct or indirect interest or performs any of its operations, in violation of any Environmental
Law. As used in this Section, “litigation or proceeding” means any demand, claim, notice, suit,
suit in equity, action, administrative action, investigation or inquiry whether brought by any
governmental authority, private person or entity or otherwise. The Guarantor shall defend,
indemnify and hold harmless the Banks against all costs, expenses, claims, damages, penalties and
liabilities of every kind or nature whatsoever (including attorneys’ fees) arising out of or
resulting from the noncompliance of the Guarantor or any Restricted Subsidiary with any
Environmental Law, provided, that, so long as and to the extent that the Banks are not
required to make any payment or suffer to exist any unsatisfied judgment, order, or assessment
against them, the Guarantor may pursue rights of appeal to comply with such Environmental Laws. In
any case of noncompliance with any Environmental Law by a Restricted Subsidiary, the Banks’
recourse for such indemnity herein shall be limited solely to the property of the Restricted
Subsidiary holding title to the property involved in such noncompliance and such recovery shall not
be a lien, or a basis of a claim of lien or levy of execution, against either the Guarantor’s
general assets or the general assets of any of its Restricted Subsidiaries.

          9.17. PLAN. Neither the Guarantor nor any Restricted Subsidiary will suffer or permit
any Plan to be amended if, as a result of such amendment, the current liability under such Plan is
increased so that the actuarial present value of the accumulated plan benefits under such Plan is
less than sixty percent (60%) of the fair market value of the assets of such Plan, as determined in
accordance with Section 412 of the Code, or results in any material increase in liability for the
Guarantor or such Restricted Subsidiary.

          9.18. ANTI-TERRORISM LAWS. Neither the Guarantor nor any of its Subsidiaries shall be
in violation of any law, regulation, or list of any government agency (including, without
limitation, the U.S. Office of Foreign Asset Control list, Executive Order No. 13224 or the USA
Patriot Act) that prohibits or limits the conduct of business with or the

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receiving of funds, goods
or services to or for the benefit of any Persons specified therein or that prohibits or limits any
Bank or either Agent from making any advances or extensions of credit to the Guarantor or from
otherwise conducting business with the Guarantor.

          9.19. CROSS COLLATERALIZATION AND CROSS DEFAULTS.

          (a) Except as expressly permitted by this Section 9.19, neither the Guarantor nor any
Restricted Subsidiary will (i) cross-default or agree to cross-default any Permitted Debt to
this Guaranty or the Debt; (ii) agree to any financial covenants based on the performance of
the Guarantor under any other Permitted Debt (other than the Debt); or (iii)
cross-collateralize, or agree to cross-collateralize Permitted Debt (other than the Debt)
owing to any one lender under one or more different loan agreements or arrangements,
provided, that the cross-defaulted and/or cross-collateralized Indebtedness set
forth on Schedule 9.19 attached hereto shall be permitted, provided,
further, that such Schedule 9.19 shall not be amended or otherwise modified after
the Restatement Effective Date without the prior written consent of the Administrative
Agent.

          (b) Notwithstanding Section 9.19(a) above:

          (i) with respect to construction projects that are constructed in multiple phases
and/or stabilized properties, any Restricted Company shall be permitted to cross-default
and/or Cross-Collateralize any Permitted Debt with other Permitted Debt (other than, in each
case, the Debt), but only if the phases to be Cross-Collateralized and/or cross-defaulted
consist of a single identifiable project;

          (ii) under a Completion Guaranty granted by the Guarantor to a construction lender, the
Guarantor shall be permitted to agree to a financial covenant solely with respect to the
Guarantor’s net worth, but only if (A) the Indebtedness related to such Completion Guaranty
is in excess of One Hundred Million Dollars ($100,000,000), (B) the Indebtedness related to
such Completion Guaranty has a maturity of two (2) years or greater, not including
extensions, (C) any net worth financial covenant is calculated in substantially the same
manner as the covenant set forth in Section 9.15 hereof and requires a net worth for the
Guarantor of not more than Two Hundred Seventy Five Million Dollars ($275,000,000) and (D)
the aggregate of all Indebtedness subject to such Completion Guaranties shall not exceed
Four Hundred Million Dollars ($400,000,000), exclusive of the Indebtedness incurred in
connection with the projects set forth on Schedule 9.19 attached hereto;

          (iii) under any Completion Guaranty granted by the Guarantor that contains the net
worth financial covenant referred to in Section 9.19(b)(ii) above, (A) the construction
lender shall not be permitted to call upon such Completion Guaranty due solely to a
violation of such net worth financial covenant and (B) the construction lender shall only be
permitted to call upon such Completion Guaranty if the project is not performing (i.e. not
on budget and/or schedule);

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          (iv) with respect to Hedge Agreements permitted by this Guaranty, the related
documentation may provide that an Event of Default will constitute an event of default under
such Hedge Agreement, provided, that the Hedge Agreement also provides that the
counterparty may not terminate or exercise any remedy under the Hedge Agreement on account
of any Event of Default unless (A) the Banks have provided a written notice of such Event of
Default to the Borrower, (B) all applicable cure periods have lapsed without such Event of
Default being cured and (C) the Banks may accelerate the maturity of the Debt on the basis
of such Event of Default;

          (v) none of the Senior Notes Indentures or the documents evidencing the Puttable Notes
Hedge and Warrant Transactions and the Convertible Notes Hedge Transactions may provide that
an Event of Default constitutes a default under such Senior Notes Indenture, the Puttable
Notes Hedge and Warrant Transactions or the Convertible Notes Hedge Transactions, as
applicable, except in the case of an Event of Default that constitutes the failure to pay
the principal of any Debt when due and payable after the expiration of any applicable grace
period with respect thereto that results in the Debt becoming or being declared due and
payable prior to the date on which it would otherwise have become due and payable or
constitutes the failure to pay any portion of the principal of the Debt when due and payable
at maturity or by acceleration, and

          (vi) to the extent Permitted Debt of the Borrower or any Subsidiary of the Borrower may
be secured under Section 8.05 of the Agreement, the Guarantor may provide cash or letters of
credit as additional collateral to secure such Permitted Debt.

          9.20. OWNERSHIP OF LAND. The Guarantor shall not, and shall not permit any Restricted
Subsidiary to purchase, lease or otherwise acquire any real property of any kind after the
Restatement Effective Date, other than any real property to be used only for the business of the
Guarantor or any such Restricted Subsidiary, in each case, as such business has been conducted
prior to the Restatement Effective Date.

          9.21. PERMITTED NON-AFFILIATE LOAN REPORTS. Within forty-five (45) days after each
Fiscal Quarterly Date, the Guarantor will furnish to each Bank a report setting forth (a) each
Permitted Non-Affiliate Loan that is outstanding as of such Fiscal Quarterly Date and (b) for the
three year period ending on such Fiscal Quarterly Date, the aggregate amount of gain deferred for
federal income tax purposes on the consolidated return of the Guarantor in connection with any
Non-Affiliate Construction Projects, and, if requested by the Agents or any Bank, accompanied by
all applicable tax forms filed or to be filed in connection with such Non-Affiliate Construction
Projects.

          9.22. LISTING. The common stock of Guarantor shall at all times be listed for trading
and be traded on the New York Stock Exchange, the American Stock Exchange or another national
exchange approved by the Administrative Agent, unless otherwise consented to by the Required Banks.

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          9.23. COVENANTS IN AGREEMENT. The Guarantor shall comply with all covenants in the
Agreement which are applicable to the Guarantor.

          10. DEFAULT; REMEDIES. Each of the following shall be an “Event of Default” for
purposes of this Guaranty:

          (a) any representation or warranty made or deemed made by the Guarantor, or any of its
officers, herein, or in any written statement or certificate furnished at any time in
connection herewith, shall prove untrue in any material respect as of the date it was made
or deemed made, or

          (b) the Guarantor shall fail to observe, perform, or comply with any obligation,
covenant, agreement, or undertaking of the Guarantor set forth in Sections 3, 9.5(a), 9.8,
9.13, 9.14, 9.15 and/or (to the extent the proviso in Section 10(c) hereof does not
eliminate the notice and cure period provided therein) 9.18 hereof, or

          (c) the Guarantor shall fail to observe, perform, or comply with any obligation,
covenant, agreement, or undertaking of the Guarantor set forth in any section or provision
hereof other than those identified specifically in subsections (a) and (b) above and the
Guarantor shall not have corrected such failure within thirty (30) days (or, in the case of
any failure or omission to perform or observe any provision of Section 9.5(b) or (c) hereof,
fifteen (15) days) after the giving of written notice thereof to the Guarantor by the
Administrative Agent that the specified failure is to be corrected; provided that
the thirty (30) day notice and cure period shall only apply to any failure to perform under
Section 9.18 hereof to the extent it is possible for the Guarantor to correct any such
failure, or

          (d) the Guarantor and/or any Subsidiary defaults (i) in any payment of principal or
interest due and owing upon any Indebtedness in excess of Five Million Dollars ($5,000,000)
(whether due and owing by scheduled maturity, required prepayment, acceleration, demand or
otherwise) beyond any period of grace provided with respect thereto, or (ii) in the case of
the Guarantor, in the payment or performance of any obligation permitted to be outstanding
or incurred pursuant to Sections 9.10 and/or 9.12 hereof in excess of Five Million Dollars
($5,000,000), beyond any period of grace provided with respect thereto or (iii) in the
performance of any other agreement, term or condition contained in any agreement under which
any such obligation is created, if the effect of such default under this clause (iii) is to
accelerate the maturity of the related Indebtedness or to permit the holder thereof to cause
such
Indebtedness to become due or to cause the same to be purchased or redeemed prior to
its stated maturity or to foreclose on any Lien on property of the Guarantor securing the
same, except that defaults in payment or performance of non-recourse obligations of the
Guarantor or any Subsidiary shall not constitute Events of Default under this Section 10(d)
unless such defaults, individually or in the aggregate, (x) have a material adverse effect
on the business or financial condition of the Guarantor or (y) involve non-recourse
Indebtedness in principal amount in excess of twenty percent (20%) of all non-recourse Indebtedness of the

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Guarantor and its Subsidiaries; provided, that it shall be an
Event of Default if any default occurs (after giving effect to any applicable grace period)
under any of the Senior Notes or under any of the Senior Notes Indentures, or

          (e) (i) any Restricted Subsidiary shall (A) generally not pay its debts as such debts
become due, or (B) make a general assignment for the benefit of creditors, or (C) apply for
or consent to the appointment of a receiver, a custodian, a trustee, an interim trustee or
liquidator of itself or all or a substantial part of its assets, or (D) be adjudicated a
debtor or have entered against it an order for relief under Title 11 of the Bankruptcy Code,
whether in a voluntary or involuntary case or proceeding, or (E) file a voluntary petition
in bankruptcy or file a petition or an answer seeking reorganization or an arrangement with
creditors or seeking to take advantage of any other law (whether federal or state) relating
to relief of debtors, or admit (by answer, by default or otherwise) the material allegations
of a petition filed against it in any bankruptcy, reorganization, insolvency or other
proceeding (whether federal or state) relating to relief of debtors, or (F) suffer or permit
to continue unstayed and in effect for thirty (30) consecutive days any judgment, decree or
order, entered by a court of competent jurisdiction, which approves a petition seeking its
reorganization or appoints a receiver, custodian, trustee, interim trustee or liquidator of
itself or of all or a substantial part of its assets, or (G) take or omit to take any other
action in order thereby to effect any of the foregoing or (H) fail to pay and discharge all
lawful taxes, assessments, and governmental charges or levies imposed upon it or its income,
profits, or properties, and/or all lawful claims for labor, materials, and supplies, which,
if unpaid, might become a Lien or charge against such properties, in all cases before the
same shall become in default, or (I) fail to comply with any and all Environmental Laws
applicable to such Subsidiary, its properties, or activities, or (J) fail to observe,
perform, or fulfill any of its obligations, covenants or conditions contained in any decree,
order, judgment, or instrument to which such Subsidiary is a party or by which it or its
assets are bound, and (ii) any such event or events described in (i) above shall in the
reasonable judgment of the Banks have a material adverse effect on the business or financial
condition of the Guarantor, or

          (f) an Event of Default specified in Article X of the Agreement shall have occurred and
be continuing, or

          (g) the Guarantor shall (i) discontinue business, or (ii) generally not pay its debts
as such debts become due, or (iii) make a general assignment for the benefit of creditors,
or (iv) apply for or consent to the appointment of a receiver, a custodian, a trustee, an
interim trustee or liquidator of all or a substantial part of its assets, or (v) be
adjudicated a debtor or have entered against it an order for relief under the Bankruptcy
Code, whether in a voluntary or involuntary case or proceeding, or (vi) file a voluntary
petition under any chapter or provision of the Bankruptcy Code or file a petition or an
answer seeking reorganization or an arrangement with creditors or seeking to take advantage
of any other law (whether federal or state) relating to relief of debtors, or admit (by
answer, by default or otherwise) the material allegations of a petition filed against it in
any bankruptcy, reorganization, insolvency or other proceeding (whether federal or

-35-

 

state) relating to relief of debtors, or (vii) suffer or permit to continue unstayed and in effect
for thirty (30) consecutive days any judgment, decree or order entered by a court or
governmental commission of competent jurisdiction, which assumes custody or control of the
Guarantor, approves a petition seeking reorganization of the Guarantor or any other judicial
modification of the rights of its creditors, or appoints a receiver, custodian, trustee,
interim trustee or liquidator for the Guarantor or of all or a substantial part of its
assets, or (viii) take or omit to take any action in order thereby to effect any of the
foregoing, or

          (h) the Guarantor defaults in the performance of any obligation in the Subordination
Agreement or in the performance of any other agreement, covenant, term or condition in the
Subordination Agreement, or

          (i) an Event of Default specified in Section 10.05 of the Agreement shall have occurred
and be continuing, provided that any reference to Plan in that section shall mean a Plan
defined under this Guaranty and any reference to Borrower in that section shall mean a
Company defined under this Guaranty, or

          (j) any failure by the Guarantor, any of its Subsidiaries, or an ERISA Affiliate to
make a required material contribution or other payment under Section 302(f)(1) of ERISA or
Section 412(n)(1) of the Code has resulted in a determination of liability under Section
302(f)(3) of ERISA or Section 412(n)(3) of the Code and such failure shall not have been
fully corrected or remedied to the full satisfaction of the Banks within thirty (30) days
after the giving of written notice of such determination to the Borrower by the Banks, or

          (k) the aggregate Unfunded Current Liabilities with respect to all Plans exceeds five
percent (5%) of the aggregate Companies’ ERISA Net Worth, and the same shall not have been
fully corrected or remedied to the full satisfaction of the Banks within thirty (30) days
after the giving of written notice of such determination to the Borrower by the Banks, or

          (l) the aggregate annual contributions and other payments required to be made by the
Guarantor, any of its Subsidiaries, or an ERISA Affiliate to any Plan as a result of any
withdrawal liability (as defined in Section 4201 of ERISA) or the reorganization or
termination of any Plan that is a Multiemployer Plan exceeds five percent (5%) of the
aggregate Companies’ ERISA Net Worth, or can reasonably be expected to exceed that amount as
a result of any additional withdrawal liability or any such reorganization or termination
which is the subject of a notice that any of them has received from the sponsor of such
Multiemployer Plan, or

          (m) the Guarantor denies that it has any liability or obligation under this Guaranty,
shall notify the Agent or any of the Banks of Guarantor’s intention to attempt to cancel or
terminate this Guaranty or shall contest or challenge the validity or enforceability of its
obligations under this Guaranty,

-36-

 

then, in any such event (other than an Event of Default referred to in Section 10(g) above), and at
any time thereafter, the Administrative Agent may, and/or the Administrative Agent at the direction
of the Required Banks shall, by written notice delivered or mailed to the Guarantor, do any one or
more of the following: (a) declare the Debt to be immediately due and payable, and upon any such
declaration such Debt shall become and be forthwith due and payable by Guarantor without any
further notice, presentment, or demand of any kind, all of which are expressly waived by the
Guarantor, or (b) require the Guarantor to purchase the Debt at par value, without recourse, within
ten (10) days after such notice, by paying to the Administrative Agent, in immediately available
U.S. funds, an amount equal to the unpaid principal amount then outstanding on the Notes and any
other matured or unmatured Debt owing to the Banks, plus the unpaid accrued interest on the Notes
at the rate or rates determined in accordance with the Agreement. If any Event of Default referred
to in Section 10.07(e), 10.07(f) or 10.07(g) of the Agreement or any Event of Default referred to
in Section 10(g) hereof shall occur, the Debt shall become and thereafter be immediately due and
payable by the Guarantor without any presentment, demand, or notice of any kind, all of which are
hereby waived by the Guarantor. The foregoing rights, powers, and remedies of the Administrative
Agent and the Banks are not exclusive and are in addition to any and all other rights, powers, and
remedies provided for hereunder (including, without limitation, under Section 13 hereof), at law,
and/or in equity. The exercise by the Administrative Agent and/or the Banks of any right, power,
or remedy shall not waive or preclude the exercise of any other rights, powers, and/or remedies.

          11. MISCELLANEOUS. The foregoing rights, powers, and remedies of the Administrative
Agent and the Banks are not exclusive and are in addition to any and all other rights, powers, and
remedies provided for hereunder, at law, and/or in equity. The exercise by the Administrative
Agent and/or the Banks of any right,
power, or remedy shall not waive or preclude the exercise of any other rights, powers, and/or
remedies. This Guaranty shall bind the Guarantor and its successors and assigns and shall inure to
the benefit of the Agents and the Banks and their respective successors and assigns including
(without limitation) each holder of any Note, provided, that the Guarantor may not assign or
transfer any of its rights or obligations hereunder without the prior written consent of all of the
Banks (other than any Delinquent Bank). The provisions of this Guaranty and the respective rights
and duties of the Guarantor and the Agents and/or the Banks hereunder shall be interpreted and
determined in accordance with Ohio law, without regard to principles of conflict of laws. If at
any time one or more provisions of this Guaranty is or becomes invalid, illegal or unenforceable in
whole or in part, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby. This Guaranty constitutes a final written expression
of all of the terms of this Guaranty, is a complete and exclusive statement of those terms and
supersedes all oral representations, negotiations, and prior writings, if any, with respect to the
subject matter hereof. The relationship between the Guarantor and the Agents and/or the Banks with
respect to this Guaranty is and shall be solely that of debtor and creditor, respectively, and the
Agents and/or the Banks have no fiduciary obligation to the Guarantor with respect to this Guaranty
or the transactions contemplated thereby. All representations and warranties of the Guarantor
shall survive the execution and delivery of this Guaranty and be and remain true and correct until
this Guaranty is discharged. Captions herein are for convenient reference only and shall have no

-37-

 

effect on the interpretation of any provision hereof. The Guarantor acknowledges that it, either
directly or indirectly through its representatives, has participated in the drafting of this
Guaranty, and any applicable rule of construction that ambiguities are to be resolved against the
drafting party shall not be applied in connection with the construction or interpretation of this
Guaranty.

          12. JURY TRIAL WAIVER. THE GUARANTOR WAIVES THE RIGHT TO HAVE A JURY PARTICIPATE IN
RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN OR AMONG THE
GUARANTOR AND THE AGENTS, THE BANKS, AND/OR THE BORROWER ARISING OUT OF OR IN CONNECTION WITH THE
AGREEMENT, THIS GUARANTY, OR ANY OTHER AGREEMENT, INSTRUMENT OR DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION THEREWITH OR THE TRANSACTIONS RELATED THERETO. THE GUARANTOR (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY BANK OR ANY AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH BANK OR AGENT WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER
AND (B) ACKNOWLEDGES THAT THE AGENTS AND THE BANKS HAVE BEEN INDUCED TO ENTER INTO THE AGREEMENT,
THE NOTES AND THE OTHER RELATED WRITINGS TO WHICH THEY ARE PARTIES, AND TO ACCEPT THIS GUARANTY,
BY, AMONG OTHER THINGS, THE WAIVER CONTAINED IN THIS SECTION 12. THE GUARANTOR ACKNOWLEDGES THAT
IT HAS HAD AN OPPORTUNITY TO REVIEW THIS SECTION 12 WITH LEGAL COUNSEL AND THAT THE GUARANTOR
AGREES TO THE FOREGOING AS ITS FREE, KNOWING AND VOLUNTARY ACT.

          13. NOTICES. Except as otherwise expressly provided herein, all notices, requests,
demands and other communications provided for hereunder shall be in writing (including telegraphic,
telex, facsimile, transmission or cable communication) and mailed, telexed, telegraphed, facsimile
transmitted, cabled or delivered, if to the Guarantor, addressed to it at the address specified on
the signature pages of this Guaranty, if to a Bank, addressed to the address of such Bank specified
on the signature pages of the Agreement (or in any Assignment and Assumption Agreement executed by
such Bank substantially in the form of Exhibit G attached to the Agreement) and if to the Agents,
addressed to them at the address of the Administrative Agent or the Syndication Agent, as
applicable, specified on the signature pages of the Agreement. All notices, statements, requests,
demands and other communications provided for hereunder shall be deemed to be given or made when
delivered or forty-eight (48) hours after being deposited in the mails with postage prepaid by
registered or certified mail or delivered to a telegraph company, addressed as aforesaid, except
that notices from the Guarantor to the Agents or the Banks pursuant to any of the provisions hereof
shall not be effective until received by the Agents or the Banks.

          14. CONSENT TO JURISDICTION. The Guarantor agrees that any action or proceeding to
enforce or arising out of this Guaranty may be commenced in the Court of Common Pleas for Cuyahoga
County, Ohio or in the District Court of the United States for the Northern District of Ohio, and
the Guarantor waives personal service of process and agrees that a summons and complaint commencing
an action or proceeding in any such court shall be properly

-38-

 

served and shall confer personal jurisdiction over the Guarantor
if served on the Guarantor at the address listed opposite the signature of the Guarantor at the end
of this Guaranty or as otherwise provided by the laws of the State of Ohio or the United States.
In furtherance of the foregoing, the Guarantor irrevocably waives any objection it may now or
hereafter have as to the venue of any such proceeding brought in such a court or that such a court
is an inconvenient forum.

          15. ENTIRE AGREEMENT. This Guaranty and any other agreement, document or instrument
attached hereto or referred to herein or executed on or as of the date hereof integrate all the
terms and conditions mentioned herein or incidental hereto and supersede all oral representations
and negotiations and prior writings with respect to the subject matter hereof.

          16. INDEPENDENCE OF COVENANTS. All covenants hereunder shall be given independent
effect so that if a particular action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or be otherwise within the limitations of,
another covenant shall not avoid the occurrence of an Event of Default if such action is taken or
condition exists, and if a particular action or condition is expressly permitted under any
covenant, unless expressly limited to such covenant, the fact that it would not be permitted under
the general provisions of another covenant shall not constitute an Event of Default if such action
is taken or condition exists.

          17. GENERAL LIMITATION OF LIABILITY. No claim may be made by the Guarantor or any
Subsidiary of the Guarantor, against the Administrative Agent, the Syndication Agent, the
Documentation Agent or any Bank or the Affiliates, directors, officers, employees, attorneys or
agents of any of them for any damages other than compensatory damages in respect of any claim for
breach of contract or any other theory of liability arising out of or related to the transactions
contemplated by the Agreement, the Notes, this Guaranty or any other Related Writing, or any act,
omission or event occurring in connection therewith; and the Guarantor, hereby, to the fullest
extent permitted under applicable law, waives, releases and agrees not to sue or counterclaim upon
any such claim for any special, consequential or punitive damages, whether or not accrued and
whether or not known or suspected to exist in its favor.

[Remainder of page intentionally left blank; signature page follows]

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          IN WITNESS WHEREOF, the Guarantor, by an officer thereunto duly authorized, has caused this
Guaranty to be executed as of the date set forth above.

	 	 	 	 	 
	Address: 

1100 Terminal Tower	 FOREST CITY ENTERPRISES, INC.

 	 
	Cleveland, Ohio  44113  	By:  	/s/
Robert G. O’Brien	 
	 	 	Name: 	Robert G. O’Brien 	 
	 	 	Title:	Chief Financial Officer & Executive Vice
President 	 

 

 

SCHEDULE 9.7(b)

FORM OF COVENANT COMPLIANCE CERTIFICATE

     I, the undersigned, Chief Financial Officer of Forest City Enterprises, Inc., a corporation
organized and existing under the laws of the State of Ohio (the “Company”), do hereby certify, as
such officer and not individually, that:

     1. This Certificate is furnished pursuant to Section 9.7 of the Second Amended and
Restated Guaranty of Payment of Debt dated as of January ___, 2010, executed and delivered by the
Company in favor of the Banks from time to time party to the Second Amended and Restated Credit
Agreement, KeyBank National Association, as Administrative Agent, PNC Bank, National Association,
as successor to National City Bank, as Syndication Agent and Bank of America, N.A., as
Documentation Agent (such Second Amended and Restated Guaranty of Payment of Debt, as in effect on
the date of this Certificate, being herein called the “Guaranty”). Unless otherwise defined
herein, capitalized terms used in this Certificate shall have the respective meanings set forth in
the Guaranty.

     2. On the date hereof, the representations and warranties contained in the Guaranty are true
and correct in all material respects (it being understood and agreed that any representation or
warranty which by its terms is made as of a specified date shall be required to be true and correct
in all material respects only as of such specified date).

     3. On the date hereof, no Possible Default or Even of Default has occurred and is continuing
under the Guaranty.

     4. On the date hereof, the Company is in full compliance with the covenants set forth in
Sections 9.13, 9.14 and 9.15 of the Guaranty as evidenced by the covenant compliance worksheets
accompanying this Certificate.

	 	 	IN WITNESS WHEREOF, I have hereunto set my hand this
______ day of ____________,
______.

	 	 	 	 	 
	 
	 	FOREST CITY ENTERPRISES, INC.

 	 
	 	
 	 
	 	Name:  	 	 
	 	Chief Financial Officer 	 
	 

 

 

SCHEDULE 9.9

as of 10/31/09

	 	 	 	 	 	 	 	 	 
	 	     	Pledgor	 	Property
	 
	1)	 	F.C. White Flint, Inc.	 	 	 	The Grand
	 
	 	 	 	 	 	 	 	Apartments
	 
	 	 	 	 	 	 	 	 
	2)
	 	a)	 	Post Office Plaza	 	 	 	MK-Ferguson
	 
	 	 	 	 	 	 	 	 
	 
	 	b)	 	Skylight Office Tower	 	 	 	Skylight Office Tower
	 
	 	 	 	Limited Partnership	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	c)	 	Terminal Tower	 	 	 	Terminal Tower

	 	 	 
	NOTE:
	 	Tower City Central Distribution Plant (TCCDP) is a partnership comprised of the various building owners
 within Tower City.  This partnership purchases electricity at wholesale prices and redistributes at market
 prices.  The proportionate share of profits/losses is allocated to the various partners based on usage. While each building
 owner has pledged it partnership interest in TCCDP as additional security, it did not obtain any additional
indebtedness related specifically to this pledge.

	 	 	 	 	 	 	 
	3)
	 	Station Square	 	 	 	Station Square
	 
	4)
	 	FC Consolidated, LLC	 	 	 	Tobacco Row
	 
	5)
	 	FC Phillip Morris, Inc.	 	 	 	Tobacco Row
	 
	6)
	 	FC East River Associates, LLC	 	 	 	Washburn Wire
	 
	7)
	 	RRG Yonkers, LLC and FC Member, Inc.	 	 	 	Ridge Hill Retail
	 
	8)
	 	FC Eighth Ave., LLC	 	 	 	New York Times Building
	 
	9a)
	 	Forest City Capital Corporation	 	 	 	Stapleton  Land II
	 
	9b)
	 	FC Stapleton Inc	 	 	 	Stapleton Park Creek Jr Bonds
	 
	10)
	 	FC Beekman Mezzanine, LLC	 	 	 	Beekman
	 
	11)
	 	Forest City Capital Corporation	 	 	 	Lucky Strike
	 
	12)
	 	Forest City Capital Corporation	 	 	 	Fort Benning
	 
	13)
	 	FC DeKalb Mezzanine, LLC	 	 	 	80 DeKalb
	 
	14)
	 	Forest City Capital Corporation	 	 	 	Haverhill
	 
	15)
	 	FC Echo/Barr SPE, LLC	 	 	 	Echo Forest and Barrington
	 
	16)
	 	FC Crossroads SPE, LLC	 	 	 	Crossroads
	 
	17)
	 	FC Presidio Member, LLC (first) and	 	 	 	Presidio Jr. Mezz
	 
	 
	 	FC Presidio PHSH, LLC (second)	 	 	 	 
	 
	18)
	 	FC Presidio PHSH, LLC	 	 	 	Presidio Sr, Mezz
	 
	19)
	 	Forest City Capital Corporation	 	 	 	Millender Center

 

 

Schedule 9.19

Construction/Permanent Loans

With Cross-Default and/or Cross-Collateralization Provisions

as of October 31, 2009

NoneExhibit 10.17

Exhibit 10.17

MONSTER WORLDWIDE, INC.

622 THIRD AVENUE

NEW YORK, NY 10017

March 2, 2007

Mr. Darko Dejanovic

2007 Bennett Avenue

Evanston, IL 60201

Dear Darko:

This will confirm our understanding and agreement (the “Agreement”) with respect to your
employment as Senior Vice President-Global Chief Information Officer
of Monster Worldwide, Inc. (the “Company”). You and the Company hereby agree as follows:

1. The Company agrees to employ you and you agree to be employed by the Company as Senior Vice
President-Global Chief Information Officer, with such duties and responsibilities with respect to
the Company and its affiliates as the Company’s Chief Executive Officer (“CEO”) or his designee
reasonably direct. You agree to devote your best efforts, energies, abilities and full business
time, skill and attention to your duties. You agree to perform the duties and responsibilities
assigned to you to the best of your ability, in a diligent, trustworthy, businesslike and efficient
manner for the purpose of advancing the business of the Company and to adhere to any and all of the
employment policies of the Company. The start date of your employment pursuant to this agreement
shall be on or about April 16, 2007.

2. In consideration for your services and other agreements hereunder, during your employment
the Company shall (a) pay you a base salary of $450,000 per year (prorated for periods of less than
a full year) in regular installments in accordance with the Company’s payroll practice for salaried
employees, (b) provide you with medical, dental and disability coverage, if any, and 401(k) Plan,
life insurance and other benefit plan eligibility, if any, in accordance with the Company’s
policies, (c) provide you with four weeks vacation per year in accordance with the Company’s
policies (prorated for periods of less than a full year), (d) provide you with the opportunity to
earn annual performance based bonuses with the target of 100% of his base salary in amounts
determined by and on the basis of satisfaction of such performance goals as are established by the
Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”)
under the Company’s 1999 Long Term Incentive Plan (or any similar or successor plan) and (e)
provide you the opportunity to participate in any long-term equity plan for executives of your
level which may be instituted from time to time. Your base salary will be reviewed on an annual
basis, it being understood that any increases in compensation shall be subject to the sole
discretion of the Company.

If you have not been terminated with “cause” prior to such time, the Company shall pay you a
one-time sign-on bonus no later than 30 days after your start date in the amount of $100,000 minus
all applicable withholding and other taxes. Should your employment
cease with the Company prior to your one-year anniversary with the
Company, you shall be required to pay back to the Company such
bonus pro-rated for the amount of time served with the Company over
that twelve-month period. You
shall not be required to pay back any portion of such sign-on bonus if you are terminated without
“cause” as defined herein.

 

 

 

Assuming your continued employment with the Company through December 31, 2007, your 2007
bonus shall be a minimum of $450,000, minus all applicable withholding and other taxes. All
bonuses in addition to or subsequent to the 2007 bonus, if any, are at the discretion of the
Company.

Subject to approval from the Company’s Compensation Committee and the requirements of the
relevant securities laws, the Company shall also issue you 12,000 restricted stock units pursuant
to the Company’s standard form including the four-year vesting schedule.

The Company shall also pay your reasonably incurred relocation expenses to the Massachusetts
area consistent with the Company’s relocation policy.

3. You may terminate this Agreement at any time upon 60 days’ prior written notice. The
Company may terminate this agreement at any time upon written notice. This Agreement shall also
terminate automatically in the event you should die or, in the reasonable determination of the
Company, become unable to perform by reason of physical or mental incompetency your obligations
hereunder for a period of 120 days in any 365 day period. It is understood and agreed that in the
event that this agreement is terminated by the Company other than for Cause (as defined in Section
4 below) then subject to (i) your execution and delivery of the Company’s then current form of
separation agreement and general release applicable to similarly situated employees and (ii) the
expiration of any rescission period provided thereby (without the rescission having been
exercised), you shall, as your sole and exclusive remedy, be entitled to (a) receive severance
equal to one times your then applicable annual base salary, payable over a period of twelve months
(deleted “Non Compete Period) in regular installments in accordance with the Company’s applicable
payroll practice for salaried employees and (b) for a period of 12 months after the effective date
of termination of your employment, have the Company make available to you (through COBRA) medical
and dental benefits on the same terms and conditions as would have been made available to you
(including employee premium contributions) had you remained employed by the Company during such
period. The Company may accelerate the timing of any payment payable to you under this agreement in
the event the Company determines that such acceleration would minimize or eliminate the risk that
any payment to you hereunder would be deemed to violate Section 409 of the Internal Revenue Code of
1986, as it may be amended from time to time.

Except as expressly provided in this Section 3 sentence, in the event of the termination of
this agreement or your employment for any reason, the Company shall have no further obligations to
you hereunder or with respect to your employment from the effective date of termination. “Cause”
shall mean the occurrence of any one or more of the following events: (i) your willful failure or
gross negligence in performance of your duties or compliance with the reasonable directions of the
CEO or the Board that remains not remedied for a period of twenty (20) days after the CEO or the
Board has given written notice specifying in reasonable detail your failure to perform such duties
or comply with such directions; (ii) your failure to comply with a material employment policy of
the Company that remains unremedied for a period of twenty (20) days after the CEO or the Board
has given written notice to you specifying in reasonable detail your failure to comply; or (iii)
your commission of (a) a felony, (b) criminal dishonesty or (c) fraud.

4. You acknowledge that you have not relied on any representation not set forth in this
Agreement. You represent that you are free to enter into this employment arrangement and that you
are not bound by any restrictive covenants or similar provisions restricting the performance of
your duties hereunder other than what was previously disclosed.

 

Page 2

 

5. In
the event there is a Change in Control (as defined in paragraph 6 below), any shares of
Company Common Stock covered by any restricted stock unit agreement between you and the Company
shall automatically and immediately become fully vested. In addition, be entitled to (a) receive
severance equal to one times your then applicable annual base salary, payable over a period of
twelve months in regular installments in accordance with the Company’s applicable payroll practice
for salaried employees and (b) for a period of 12 months after the effective date of termination of
your employment, have the Company make available to you (through
COBRA) medical and dental benefits
on the same terms and conditions as would have been made available to you (including employee
premium contributions) had you remained employed by the Company during such period, in the event of
change of control and if one of the following occurs:

(i) your employment with the Company is terminated.

(ii) you voluntarily resign as a result of reduction in the nature or scope of your authority
or duties, a reduction in your compensation or benefits, or a change in the city in which you are
required to perform your duties.

6. For purposes hereof, the term “Change in Control” shall be deemed to occur if (1) there
shall be consummated (A) any consolidation, merger or reorganization involving the Company, unless
such consolidation, merger or reorganization is a “Non-Control Transaction” (as defined below) or
(B) any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of the Company, or (2) the stockholders
of the Company shall approve any plan or proposal for liquidation or dissolution of the Company, or
(3) any person (as such term is used in Section 13(d) and 14(d)(2) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)), shall become the beneficial owner (within the meaning of
Rule 13d-3 under the Exchange Act) of more than 50% of the combined voting power of the Company’s
then outstanding voting securities other than (a) a person who owns or owned shares of Class B
Common Stock of the Company, (b) pursuant to a plan or arrangement entered into by such person and
the Company, or (c) pursuant to receipt of such shares from a stockholder of the Company pursuant
to such stockholder’s will or the laws of descent and distribution. A “Non-Control Transaction”
shall mean a consolidation, merger or reorganization of the Company where (1) the stockholders of
the Company immediately before such consolidation, merger or reorganization own, directly or
indirectly, at least a majority of the combined voting power of the outstanding voting securities
of the corporation resulting from such consolidation, merger or reorganization (the “Surviving
Corporation”), (2) the individuals who were members of the Board of the Company immediately prior
to the execution of the agreement providing for such consolidation, merger or reorganization
constitute at least 50% of the members of the Board of Directors of the Surviving Corporation, or a
corporation directly or indirectly beneficially owning a majority of the voting securities of the
Surviving Corporation and (3) no person (other than (a) the Company, (b) any subsidiary of the
Company, (c) any employee benefit plan (or any trust forming a part thereof) maintained by the
Company, the Surviving Corporation or any subsidiary, or (d) any person who, immediately prior to
such consolidation, merger or reorganization, beneficially owned more than 50% of the combined
voting power of the Company’s then outstanding voting securities) beneficially
owns more than 50% of the combined voting power of the Surviving Corporation’s then outstanding
voting securities.

 

Page 3

 

7. You acknowledge that during the course of your employment with the Company you will have
access to trade secret, proprietary and confidential information relating to the Company and its
clients, including but not limited to marketing data, financial information, client lists
(including without limitation Rolodex type or computer based compilations maintained by the Company
or you), details of Company or client programs and methods, pricing policies, strategies, profit
margins and software. During the course of your employment and thereafter, you agree to keep secret
and retain in strictest confidence all of such trade secret, proprietary and confidential
information and not to disclose, disseminate or use such information to your own advantage or for
the advantage of any party other than the Company.

8. During the Non-Solicitation Period, you agree that you will not, directly or indirectly,
(a) call on, solicit, perform services for, interfere with or
endeavor to entice away from the
Company any client to whom the Company provided services at any time during the 12 months preceding
the last day of your employment with the Company, or any prospective client to whom the Company had
made a presentation at any time during the 12 months preceding the last day of your employment with
the Company; and (b) hire, attempt to hire, solicit for
employment or encourage the departure of any
employee of the Company or any individual who was employed by the Company at any time during the 12
months preceding the last day of your employment with the Company. This non-solicitation does not
restrict me from working for any competitor of Monster or any other firm at any time after my last
day of employment with Monster, subject to my compliance with item 9 below.

9. During the Noncompete Period of three months, you agree that you shall not, anywhere in the
United States or elsewhere in the world, directly or indirectly, engage, participate or assist in
lines of business directly competitive to the business of the Company and its subsidiaries. The
foregoing covenant is intended to prohibit you from engaging in such activities as owner, creditor,
partner, stockholder, consultant, advisor or lender (except as a holder of equity securities that
are publicly traded on a stock exchange or the recognized
over-the-counter market, and then only to
the extent of owning not more than three percent (3%) of the issued and outstanding equity
securities of the relevant issuer so long as you is not an affiliate of such issuer), contractor or
agent for any person, firm or corporation that directly competes with the business of the Company
or its subsidiaries.

10. You understand and agree that the covenants set forth in Sections 7, 8 and 9 (the
“Restrictive Covenants”) are reasonable in scope and have been agreed to by you in connection with
the benefits to be received by you hereunder. You further acknowledge that the scope of the
business of the Company and its subsidiaries is independent of location (such that it is not
practical to limit the restrictions contained in the Restrictive Covenants to a specified county,
city, or part thereof) and that, accordingly, the geographical restriction contained in the
Restrictive Covenants is reasonable in all respects and necessary to protect the goodwill and
confidential information and work product of the business of the Company and its subsidiaries and
that, without such protection, the customer and client relations of the Company and its
subsidiaries and competitive advantage of the Company and its subsidiaries would be materially
adversely affected. It is specifically recognized by you that the Company and its subsidiaries have
a protectable interest in prohibiting you from competing with the
Company and its subsidiaries as provided in the Restrictive Covenants, and that money damages are
insufficient to protect such interests, and that the Company would not enter into this agreement
without the restrictions contained in the Restrictive Covenants. You
further acknowledge that the
restrictions contained in the Restrictive Covenants do not impose an undue hardship on you and,
since you have general business skills which may be used in industries other than the business of
the Company or its subsidiaries, do not deprive you of your livelihood. You agree that the
Restrictive Covenants shall be construed as agreements independent of any other provisions of this
Agreement and shall survive any order of a court of competent jurisdiction terminating any other
provisions of this agreement.

 

Page 4

 

11. The parties agree that to the extent any provision or portion of the Restrictive Covenants
shall be held, found or deemed to be unreasonable, unlawful or unenforceable by a court of
competent jurisdiction, then any such provision or portion thereof shall be deemed to be modified
to the extent necessary in order that any such provision or portion thereof shall be legally
enforceable to the fullest extent permitted by applicable law, and further agree that if any part
of the Restrictive Covenants shall be so found or deemed unreasonable, unlawful or
unenforceable, such unenforceability shall not affect the remaining portions of the Restrictive
Covenants, which shall be fully enforced; and the parties do further agree that any court of
competent jurisdiction shall, and the parties hereto do hereby expressly authorize, require and
empower any court of competent jurisdiction to, enforce any such provision or portion thereof in
order that any such provision or portion thereof shall be enforced to the fullest extent permitted
by applicable law.

12. As the violation by you of the Restrictive Covenants would cause irreparable harm which
cannot be adequately compensated in damages to the Company due to, among other things, the
knowledge by you of trade secrets and proprietary information of the business of the Company and
its subsidiaries, and there is no adequate remedy at law for such violation, the Company shall have
the right in addition to any other remedies available, at law or in equity, to injunctive or other
equitable relief to restrain you from violating such provisions (without any requirement to post a
bond or other security). You hereby waive any and all defenses you
may have on the ground of lack
of competence of the court to grant an injunction or other equitable relief. The existence of this
right shall not preclude any other rights and remedies at law or in equity which the Company may
have.

13. All notices, demands or other communications to be given or delivered under or by reason
of this agreement shall be in writing and shall be deemed to have been properly served if delivered
personally, by courier, or by certified or registered mail, return receipt requested and first
class postage prepaid, in case of notice to the Company, to the attention of the Chief Executive
Officer (with a copy to the General Counsel) and in the case of notices to you to your office or
residence address, or such other addresses as the recipient party has specified by prior written
notice to the sending party. All such notices and communications shall be deemed received upon the
actual delivery thereof in accordance with the foregoing.

14. You may not assign or delegate this agreement or any of your rights or obligations
hereunder without the prior written consent of the Company. All references in this agreement to
practices or policies of the Company are references to such practices or policies as may be in
effect from time to time.

 

Page 5

 

15. This
Agreement (a) constitutes the entire agreement between the parties with respect to
the subject matter hereof and supersedes any previous arrangements relating thereto, as well as any
previous arrangements relating to employment between you and any of the Company’s affiliates, (b)
may be signed in counterparts, (c) shall be governed by the laws of the State of Massachusetts
(other than the conflicts of laws provisions thereof) and (d) may not be amended, terminated,
extended or waived orally.

Please understand that while it is our hope that our relationship will be a long one, your
employment will strictly be on at “at will” basis. Nothing in this letter should be construed as
creating any other type of employment relationship.

Please sign the additional originally executed copy of this letter in the space provided for
your signature below to indicate your acceptance and agreement with the terms of this letter
agreement and return one fully executed original to me.

	 	 	 	 	 
	 	Very truly yours,

MONSTER WORLDWIDE, INC.

 	 
	 	By:  	/s/
Erin Barriere
 	 
	 	 	Name:  	Erin Barriere 	 
	 	 	Title:  	VP, Human Resources, Technology 	 
	 

	 	 	 
	Accepted and agreed
	 	 
	 
	 	 
	/s/ Darko Dejanovic
 

	 	3/15/07 
	Darko Dejanovic
	 	 

 

Page 6

 

SECTION 409A COMPLIANCE AMENDMENT

TO EXECUTIVE EMPLOYMENT AGREEMENT

This Agreement is entered into as of January 1, 2009, by and between Monster Worldwide, Inc.,
a Delaware corporation (the “Company”), and Darko Dejanovic (the “Executive”).

WHEREAS, the Company and the Executive previously entered into an Employment Agreement, dated
March 2, 2007 (the “Agreement”), which Agreement may be amended by a written instrument executed
by both parties; and

WHEREAS, the Company and the Executive desire to amend the Agreement to comply in all
respects with the provisions of Section 409A of the Internal Revenue Code and applicable
regulations thereunder (the “Code”):

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, and
intending to be legally bound hereby, the parties agree to amend the Agreement as follows,
effective January 1, 2009; provided, however, that any provision below required to apply as of a
date prior to January 1, 2009 in order for the Agreement to comply with Code Section 409A shall be
effective as of such earlier date:

1. Termination of Employment. Where the Agreement refers to the Executive’s
termination of employment for purposes of receiving any payment, whether such a termination has
occurred will be determined in accordance with Section 409A of the Internal Revenue Code and
applicable regulations thereunder, generally described (as currently in effect) in Exhibit A.

2. Timing of Payments. Where the Agreement requires the following payments to be made
to the Executive, the following rules shall apply, and any inconsistent provision in the Agreement
shall be superseded:

	 	(a)	 	To the extent that the Agreement requires that a payment shall be made upon or
as soon as reasonably practicable after an event (e.g., termination of employment),
such payment shall be made no later than 90 days after the occurrence of such event
(or, if earlier, within 21/2 months following the end of the
Executive’s taxable year in which such event occurs). The Executive may not designate
the taxable year of such payment.

	 	(b)	 	To the extent that any payment in the Agreement is contingent upon the
Executive entering into a separation and release agreement with the Company, the
Executive shall sign and return the separation and release agreement within the
reasonable time period designated by the Company, in order to assure that payment shall
be made within the time period set forth in paragraph (a) above but not prior to
expiration of any period specified for revocation of such Agreement by the Executive.

 

 

 

	 	(c)	 	To the extent that the Agreement provides for the reimbursement of specified
expenses incurred by the Executive, such reimbursement shall be made in accordance with
the provisions of the Agreement, but in no event later than the
last day of the Executive’s taxable year following the taxable year in which the
expense was incurred. The amount of expenses eligible for reimbursement or in-kind
benefits provided by the Company in any taxable year of the Executive shall not
affect the amount of expenses or in-kind benefits to be reimbursed or provided in
any other year (except in the case of maximum benefits to be provided under a
medical reimbursement arrangement, if applicable).

	 	(d)	 	Annual bonus otherwise payable under the Agreement after the end of a bonus
plan performance period shall be paid within
21/2 months after the end of the fiscal
year of the Company to which such bonus relates.

	 	(e)	 	The last sentence of the first paragraph of Section 3 of the Agreement is deleted.

3.
Section 409A Compliance. The following provision is added to the Agreement as new Section
16:

16.
 Code Section 409A. Payments in respect of the Executive’s Termination of
Employment under the Agreement are designated as separate payments for purposes of the
short-term deferral rules under Treasury
Regulation Section 1.409A-1(b)(4)(i)(F) and the
exemption for involuntary terminations under separation pay plans under Treasury Regulation
Section 1.409A-1(b)(9)(iii). As a result, (a) any payments that become vested as a result of
the Executive’s Termination of Employment under the Agreement that are made on or before the
15th day of the third month of the calendar year following the calendar year of the
Executive’s Termination of Employment, and (b) any additional payments that are made on or
before the last day of the second calendar year following the year of the Executive’s
Termination of Employment and do not exceed the lesser of two times Base Salary or two times
the limit under Code Section 401(a)(17) then in effect, and (c) the payment of medical
expenses within the applicable COBRA period, are exempt from the requirements of Code
Section 409A. If the Executive is designated as a “specified employee” within the meaning of
Code Section 409A (and Company is publicly traded on any securities market), to the extent
that any deferred compensation payments to be made during the first six month period
following Executive’s termination of employment exceed such exempt amounts, the payments
shall be withheld and the amount of the payments withheld will be paid in a lump sum,
without interest, during the seventh month after Executive’s termination; provided, however,
that if the Executive dies prior to the expiration of such six month period, payment to the
Executive’s beneficiary shall be made as soon as practicable following the Executive’s
death. The Company shall identify in writing delivered to the Executive any payments it
reasonably determines are subject to delay under this Section 16. In no event shall the
Company have any liability or obligation with respect to taxes for which the Executive may
become liable as a result of the application of Code Section 409A.

 

2

 

IN WITNESS WHEREOF, the parties have executed this Amendment on or prior to December 31, 2008,
as of the date and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	MONSTER WORLDWIDE, INC.	 	 
	 
	 	 	By:	 	/s/ Salvatore Iannuzzi	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:
	 	Chairman of the Board, President
and

Chief Executive Officer	 	 

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/
Darko Dejanovic
 	 

 

3

 

EXHIBIT A TO

SECTION 409A COMPLIANCE AMENDMENT

TO EXECUTIVE EMPLOYMENT AGREEMENT

Addendum to Paragraph 1 Regarding Termination of Employment

	 	(a)	 	The Executive shall not be treated as having incurred a voluntary termination
of employment while on military leave, sick leave, or other bona fide leave of absence
if the period of such leave does not exceed six months, or if longer, so long as the
Executive’s right to reemployment with the Company is provided either by statute or by
contract. If the period of leave exceeds six months and the right to reemployment is
not provided either by statute or by contract, the employment relationship is deemed to
terminate on the first date immediately following such six-month period.

	 	(b)	 	Whether the Executive shall have incurred a termination of employment shall be
determined based on all relevant facts and circumstances. In situations in which the
Executive continues to be carried on the payroll of the Company but performs only
nominal services, or ceases to be an employee but continues to provide substantial
services in another capacity, such as pursuant to a consulting agreement, the
determination of whether a termination of employment has occurred shall be determined
in accordance with Treasury Regulation Section 1.409A-1(h)(1)(ii), or any successor
thereto.

	 	(c)	 	For additional information,
see Treasury Regulation Section 1.409A-1(h).

 

4

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