Document:

Exhibit
10.58

 

 

	
   

  

 

TRANSITION SERVICES
AGREEMENT

 

dated as of [·]

 

among

 

GGP LIMITED PARTNERSHIP,

 

GENERAL GROWTH MANAGEMENT, INC.,

 

and

 

THE HOWARD HUGHES
CORPORATION

 

	
   

  

 

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
  DEFINITIONS

  	
  1

  
	
  Section 1.01.

  	
  Certain Defined Terms

  	
  1

  
	
  ARTICLE II

  	
  SERVICES, DURATION AND SERVICE MANAGERS

  	
  3

  
	
  Section 2.01.

  	
  Services

  	
  3

  
	
  Section 2.02.

  	
  Duration of Services

  	
  3

  
	
  Section 2.03.

  	
  Additional Unspecified
  Services

  	
  4

  
	
  Section 2.04.

  	
  Transition Service
  Managers

  	
  5

  
	
  Section 2.05.

  	
  Personnel

  	
  6

  
	
  Section 2.06.

  	
  No Duplication

  	
  6

  
	
  ARTICLE III

  	
  GGP MATERIALS

  	
  6

  
	
  Section 3.01.

  	
  Corporate Policies

  	
  6

  
	
  Section 3.02.

  	
  Limitation on Rights and
  Obligations with Respect to the GGP Materials

  	
  7

  
	
  ARTICLE IV

  	
  OTHER ARRANGEMENTS AND ADDITIONAL AGREEMENTS

  	
  8

  
	
  Section 4.01.

  	
  Software and Software
  Licenses

  	
  8

  
	
  Section 4.02.

  	
  GGP Computer-Based and
  Other Resources

  	
  8

  
	
  Section 4.03.

  	
  Spinco Computer-Based and
  Other Resources

  	
  9

  
	
  Section 4.04.

  	
  Access

  	
  9

  
	
  Section 4.05.

  	
  Insider Trading Policy

  	
  9

  
	
  Section 4.06.

  	
  Cooperation

  	
  9

  
	
  ARTICLE V

  	
  COSTS AND DISBURSEMENTS

  	
  10

  
	
  Section 5.01.

  	
  Costs and Disbursements

  	
  10

  
	
  Section 5.02.

  	
  Taxes

  	
  11

  
	
  Section 5.03.

  	
  No Right to Set-Off

  	
  11

  
	
  ARTICLE VI

  	
  STANDARD FOR SERVICE

  	
  11

  
	
  Section 6.01.

  	
  Standard for Service

  	
  11

  
	
  Section 6.02.

  	
  Disclaimer of Warranties

  	
  12

  
	
  Section 6.03.

  	
  Compliance with Laws and
  Regulations

  	
  12

  
	
  ARTICLE VII

  	
  LIMITED LIABILITY AND INDEMNIFICATION

  	
  12

  
	
  Section 7.01.

  	
  Consequential and Other
  Damages

  	
  12

  
	
  Section 7.02.

  	
  Limitation of Liability

  	
  12

  
	
  Section 7.03.

  	
  Obligation to Reperform
  and GGP Indemnity

  	
  13

  

 

i

 

	
  Section 7.04.

  	
  Release and Spinco
  Indemnity

  	
  13

  
	
  Section 7.05.

  	
  Indemnification Procedures

  	
  13

  
	
  Section 7.06.

  	
  Liability for Payment
  Obligations

  	
  13

  
	
  Section 7.07.

  	
  Exclusion of Other
  Remedies

  	
  13

  
	
  ARTICLE VIII

  	
  DISPUTE RESOLUTION

  	
  14

  
	
  Section 8.01.

  	
  Dispute Resolution

  	
  14

  
	
  ARTICLE IX

  	
  TERM AND TERMINATION

  	
  14

  
	
  Section 9.01.

  	
  Term and Termination

  	
  14

  
	
  Section 9.02.

  	
  Effect of Termination

  	
  15

  
	
  Section 9.03.

  	
  Force Majeure

  	
  16

  
	
  ARTICLE X

  	
  GENERAL PROVISIONS

  	
  16

  
	
  Section 10.01.

  	
  No Agency

  	
  16

  
	
  Section 10.02.

  	
  Subcontractors

  	
  16

  
	
  Section 10.03.

  	
  Treatment of Confidential
  Information

  	
  17

  
	
  Section 10.04.

  	
  Further Assurances

  	
  18

  
	
  Section 10.05.

  	
  Notices

  	
  18

  
	
  Section 10.06.

  	
  Severability

  	
  19

  
	
  Section 10.07.

  	
  Entire Agreement

  	
  19

  
	
  Section 10.08.

  	
  No Third-Party
  Beneficiaries

  	
  19

  
	
  Section 10.09.

  	
  Governing Law

  	
  19

  
	
  Section 10.10.

  	
  Amendment

  	
  19

  
	
  Section 10.11.

  	
  Rules of Construction

  	
  20

  
	
  Section 10.12.

  	
  Counterparts

  	
  20

  
	
  Section 10.13.

  	
  Assignability

  	
  20

  
	
  Section 10.14.

  	
  Waiver of Jury Trial

  	
  21

  
	
  Section 10.15.

  	
  Specific Performance

  	
  21

  
	
  Section 10.16.

  	
  Non-Recourse

  	
  22

  

 

ii

 

TRANSITION SERVICES AGREEMENT

 

This Transition Services Agreement (this “Agreement”),
dated as of [·], is by and
among GGP Limited Partnership, a Delaware limited partnership (“GGPLP”),
General Growth Management, Inc., a Delaware corporation (“GGMI”
and, collectively with GGPLP, “GGP”), and The Howard Hughes Corporation,
a Delaware corporation (“Spinco”).

 

RECITALS

 

WHEREAS, General Growth Properties, Inc. (“GGPI”)
and Spinco entered into the Separation Agreement, dated as of the date hereof
(as amended, modified or supplemented from time to time in accordance with its
terms, the “Separation Agreement”); and

 

WHEREAS, pursuant to the Separation Agreement, the
Parties agreed that GGPI (and/or its Subsidiaries on the date of this Agreement
immediately after giving effect to, and subject to the occurrence of, the
Distribution, collectively referred to as the “GGP Entities”) shall
provide or cause to be provided to Spinco (and/or its Subsidiaries on the date
of this Agreement immediately after giving effect to, and subject to the
occurrence of, the Distribution, collectively referred to as the “Spinco
Entities”) certain services on a transitional basis and in accordance with
the terms and subject to the conditions set forth in this Agreement; and

 

WHEREAS, the Separation Agreement requires execution
and delivery of this Agreement by GGP and Spinco on or prior to the Plan
Effective Date.

 

NOW, THEREFORE, in consideration of the foregoing
and the mutual agreements contained in this Agreement, the Parties hereby agree
as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01.  Certain Defined Terms.  (a) Unless otherwise defined in this
Agreement, all capitalized terms used in this Agreement shall have the same
meaning as in the Separation Agreement.

 

(b)                                 The following
capitalized terms used in this Agreement shall have the meanings set forth
below:

 

“Additional Services” shall have the meaning
set forth in Section 2.03(a).

 

“Agreement” shall have the meaning set forth
in the Preamble.

 

“Competitor of GGP” shall mean an entity that
is directly or indirectly (or whose Affiliates are directly or indirectly) in
the business of owning or managing retail malls.

 

 

“Confidential Information” shall have the
meaning set forth in Section 10.03(a).

 

“Cost Multiplier” shall mean: 110% during the
period beginning on the Plan Effective Date and ending on the last day of the
6th month after the Plan Effective Date; 150% during the period beginning on
the first day of the 7th month after the Plan Effective Date and ending on the
last day of the 12th month after the Plan Effective Date; and 200% during the
period beginning on the first day of the 13th month after the Plan Effective
Date and ending on the date that this Agreement terminates.

 

“Direct Payroll Costs” shall mean, with
respect to each GGP Employee providing a particular Service, the applicable
hourly rate set forth on Exhibit I.

 

“Dispute” shall have the meaning set forth in
Section 8.01(a).

 

“GGMI” shall have the meaning set forth in
the Preamble.

 

“GGP” shall have the meaning set forth in the
Preamble.

 

“GGP Employee” shall mean an employee of any
of the GGP Entities.

 

“GGP Entities” shall have the meaning set
forth in the Recitals.

 

“GGP Indemnified Party” shall have the
meaning set forth in Section 7.04.

 

“GGP Intranet” shall mean GGPI’s internal
computer network Intranet site generally accessible only by GGP Employees.

 

“GGPI” shall have the meaning set forth in
the Recitals.

 

“GGPLP” shall have the meaning set forth in
the Preamble.

 

“GGP Materials” shall have the meaning set
forth in Section 3.01(a).

 

“GGP Overall Service Manager” shall have the
meaning set forth in Section 2.04(a).

 

“GGP Service Manager” shall have the meaning
set forth in Section 2.04(a).

 

“Interest Rate” shall have the meaning set
forth in Section 5.01(b).

 

“Out-of-Pocket Expenses” shall mean, with
respect to a particular Service, any out-of-pocket costs, fees and expenses
that GGP or any other member of the GGP Group actually pays to an unaffiliated
third party in the course of providing such Service, without any additional
charge or mark up.  The term “Out-of-Pocket
Expenses” shall not include any rent, utilities, taxes, clerical support, GGP
Employee compensation and benefits or any other general or administrative
overhead or other similar costs or expenses.

 

“Overall Service Managers” shall mean the GGP
Overall Service Manager and the Spinco Overall Service Manager.

 

2

 

“Party” shall mean GGP and Spinco
individually, and “Parties” means GGP and Spinco collectively, and, in
each case, their permitted successors and assigns.

 

“Representative” shall mean, with respect to
any Person, any director, officer, employee, agent, consultant, accountant,
auditor, attorney or other representative of such Person.

 

“Schedule(s)” shall have the meaning set
forth in Section 2.02.

 

“Separation Agreement” shall have the meaning
set forth in the Recitals.

 

“Service Charges” shall have the meaning set
forth in Section 5.01(a).

 

“Service Increases” shall have the meaning
set forth in Section 2.03(b).

 

“Service Resource Cost” shall mean, with
respect to a particular Service, (A) an amount equal to the product of
(x) the Direct Payroll Cost of the GGP Employee providing the Service multiplied
by (y) the number of hours such employee spent performing the Service,
or (B) if a different pricing methodology is expressly provided for in the
applicable Schedule with respect to such Service, an amount calculated based on
such pricing methodology.

 

“Services” shall have the meaning set forth
in Section 2.01.

 

“Spinco” shall have the meaning set forth in
the Preamble.

 

“Spinco Entities” shall have the meaning set
forth in the Recitals.

 

“Spinco Indemnified Party” shall have the
meaning set forth in Section 7.03.

 

“Spinco Intranet” shall have the meaning set
forth in Section 4.02(a).

 

“Spinco Overall Service Manager” shall have
the meaning set forth in Section 2.04(b).

 

“Spinco Service Manager” shall have the
meaning set forth in Section 2.04(b).

 

ARTICLE II

 

SERVICES,
DURATION AND SERVICE MANAGERS

 

Section 2.01.  Services.  Subject to the terms and conditions of this
Agreement, GGP shall provide (or cause to be provided) to the Spinco Entities,
as requested from time to time by Spinco, the services listed on Schedule A
(which may be grouped by type of Services in sub-schedules) to this Agreement
(the “Services”).  All of the
Services shall be for the sole use and benefit of the Spinco Entities as
constituted on the Plan Effective Date.

 

Section 2.02.  Duration of Services.  Subject to the terms of this Agreement,
commencing on the Plan Effective Date, GGP shall provide or cause to be
provided to the Spinco Entities each Service until the earlier to occur of,
with respect to each such Service, (i) the expiration of the period of the
maximum duration for such Service as set forth on the sub-

 

3

 

schedules attached hereto
defining such Service (each a “Schedule”, and collectively, the “Schedules”)
and (ii) the date on which such Service is terminated under Section 9.01;
provided, however, that Spinco shall use commercially reasonable
efforts in good faith to transition itself to a stand-alone entity with respect
to each Service during the period for such Service as set forth in the relevant
Schedules.  In the event that GGP sells,
transfers or otherwise disposes of its interest in any of its Subsidiaries that
is engaged in providing one or more Services, GGP shall (x) if requested
by Spinco, use commercially reasonable efforts to cause such Subsidiary or the
acquiror thereof to agree that such Subsidiary will continue to provide such
Services to the same extent provided pursuant to the terms of this Agreement or
(y) if requested by Spinco, or to the extent the Subsidiary or the
acquiror will not agree to provide such Services after GGP’s exertion of
commercially reasonable efforts pursuant to (x), secure such Services from a
reputable and experienced third-party vendor at substantially equivalent
service levels for the remaining term of such Services.

 

Section 2.03.  Additional Unspecified Services.  (a) After the Plan Effective Date, if
Spinco (i) identifies a service that the GGP Entities provided to the
Spinco Business prior to the Plan Effective Date that is reasonably necessary
in order for the Spinco Business to continue to operate in substantially the
same manner in which the Spinco Business operated prior to the Plan Effective
Date and is otherwise material to operations of the Spinco Business, and such
service was not included on the Schedules, and (ii) provides written
notice to GGP within one hundred twenty (120) days following the Plan Effective
Date requesting such additional service, then GGP shall, subject to the
negotiation of mutually acceptable terms of the applicable Schedule (as
described in the next sentence), provide such requested additional service
provided that (i) the GGP Entities have adequate resources to provide such
service, (ii) such service can be provided without unreasonable disruption
to the GGP Entities’ businesses and (iii) the provision of such service
will not violate (whether directly or by virtue of a cross-default) a material
contract or agreement of a GGP Entity or result in a violation of applicable
Law (such additional services, the “Additional Services”).  In connection with any request for Additional
Services in accordance with this Section 2.03(a), the GGP Service
Manager and the Spinco Service Manager shall in good faith negotiate the terms
of a supplemental Schedule, which terms shall be consistent with the terms of,
and the pricing methodology used for, similar Services provided under this
Agreement.  The Parties shall agree to
the applicable Service Charge and the supplemental Schedule shall describe in
reasonable detail the nature, scope, service period(s), termination provisions
and other terms applicable to such Additional Services.  Each supplemental Schedule, as agreed to in
writing by the Parties, shall be deemed part of this Agreement as of the date
of such Schedule and the Additional Services set forth therein shall be deemed “Services”
provided under this Agreement, in each case subject to the terms and conditions
of this Agreement.

 

(b)                                 After the Plan
Effective Date, if (i) (x) Spinco requests GGP to increase, relative
to historical levels prior to the Plan Effective Date, the volume, amount,
level or frequency, as applicable, of any Service provided by GGP and (ii) such
increase is reasonably determined by Spinco as necessary for Spinco to operate
its businesses (such increases, the “Service Increases”), then GGP
shall, subject to the negotiation of mutually acceptable terms of the
applicable Schedule (as described in the next sentence), provide the Service
Increases in accordance with such request; provided, that GGP shall not
be obligated to provide any Service Increase if it does not, in its reasonable
judgment, have adequate resources to provide such 

 

4

 

Service Increase or if the
provision of such Service Increase would significantly disrupt the operation of
any of its businesses or violate an existing material contract or agreement or
applicable Law.  In connection with any request
for Service Increases in accordance with this Section 2.03(b), the
GGP Service Manager and the Spinco Service Manager shall in good faith
negotiate the terms of an amendment to the applicable Schedule, which amendment
shall be consistent with the terms of, and the pricing methodology used for,
the applicable Service.  Each amended
Schedule, as agreed to in writing by the Parties, shall be deemed part of this
Agreement as of the date of such amendment to the Schedule and the Service
Increases set forth therein shall be deemed a part of the “Services” provided
under this Agreement, in each case subject to the terms and conditions of this
Agreement.

 

Section 2.04.  Transition Service Managers.  (a) GGP hereby appoints and designates
the individual holding the GGP position set forth on Exhibit II to
act as its initial service manager (the “GGP Overall Service Manager”),
who will be directly responsible for coordinating and managing the delivery of
the Services and have authority to act on GGP’s behalf with respect to matters
relating to this Agreement.  In addition,
GGP hereby appoints, with respect to each Service, the individual set forth on
the applicable Schedule as its initial service manager (each such manager, a “GGP
Service Manager”) with respect to such Service, who will be directly responsible
for coordinating and managing the delivery of such Service on a day-to-day
basis.  The GGP Service Managers will
work with the personnel of the GGP Entities to periodically address issues and
matters raised by Spinco relating to this Agreement.  The GGP Overall Service Manager will oversee
the GGP Service Managers and will be responsible for coordinating the overall
delivery of the Services. 
Notwithstanding the notice requirements of Section 10.05,
all communications from Spinco to GGP pursuant to this Agreement regarding
routine matters involving the Services set forth on the Schedules shall be made
through the applicable GGP Service Manager, or such other individual as
specified by the applicable GGP Service Manager in writing and delivered to Spinco
by email or facsimile transmission with receipt confirmed.  GGP shall notify Spinco of the appointment of
a different GGP Overall Service Manager or GGP Service Manager, if necessary,
in accordance with Section 10.05.

 

(b)                                 Spinco hereby
appoints and designates the individual holding the Spinco position set forth on
Exhibit II to act as its initial service manager (the “Spinco
Overall Service Manager”), who will be directly responsible for
coordinating and managing the receipt of the Services and have authority to act
on Spinco’s behalf with respect to matters relating to this Agreement.  In addition, Spinco hereby appoints, with
respect to each Service, the individual set forth on the applicable Schedule as
its initial service manager (each such manager, a “Spinco Service Manager”)
with respect to such Service, who will be directly responsible for coordinating
and managing the receipt of such Service on a day-to-day basis.  The Spinco Service Managers will work with
the personnel of Spinco Entities to periodically address issues and matters
raised by GGP relating to this Agreement. 
The Spinco Overall Service Manager will oversee the Spinco Service
Managers and will be responsible for coordinating the overall receipt of the
Services.  Notwithstanding the notice
requirements of Section 10.05, all communications from GGP to
Spinco pursuant to this Agreement regarding routine matters involving the
Services set forth on the Schedules shall be made through the applicable Spinco
Service Manager or such other individual as specified by the applicable Spinco
Service Manager in writing and delivered to GGP by email or facsimile
transmission with receipt confirmed. 
Spinco shall notify GGP of 

 

5

 

the appointment of a different
Spinco Overall Service Manager or Spinco Service Manager, if necessary, in
accordance with Section 10.05.

 

Section 2.05.  Personnel.  (a) GGP will make available such
appropriately qualified personnel as may be reasonably necessary to provide the
Services, and will use reasonable efforts to make available personnel
specifically requested by Spinco. 
Notwithstanding the foregoing, GGP will have the right, in its sole
reasonable discretion, to (i) designate which personnel it will assign to
perform each Service, and (ii) remove and replace such personnel at any
time with personnel of similar qualifications and experience levels, if such
action would not reasonably be expected to cause a material increase in costs
and/or a material decrease in level of service for Spinco with respect to such
Service; provided, however, that GGP will use its commercially
reasonable efforts to limit the disruption to Spinco in the transition of the
Services to different personnel.

 

(b)                                 In the event
that the provision of any Service by GGP requires, as set forth in the
Schedules, the cooperation and services of the applicable personnel of Spinco,
Spinco will make available to GGP such personnel (who shall be appropriately
qualified for purposes of the provision of such Service by GGP) as may be
necessary for GGP to provide such Service.

 

Section 2.06.  No Duplication.

 

(a)                                  GGP shall not
charge any Service Charges under this Agreement or any other amounts for any
Services performed by any GGP Employees if, and to the extent that, the
employees performing such Services are doing so pursuant to the Employee
Leasing Agreement, and the costs of such employees are being reimbursed
pursuant thereto.

 

(b)                                 GGP shall not
charge any Service Charges or other amounts for any Services if, and to the
extent that, such Service Charges are duplicative of services performed under
the Employee Leasing Agreement or the Employee Matters Agreement.

 

ARTICLE III

 

GGP
MATERIALS

 

Section 3.01.  Corporate Policies.  (a) At the Plan Effective Date or reasonably
promptly thereafter, GGP shall make available to Spinco its then existing
policies and manuals that GGP determines in good faith are reasonably necessary
for the operation of the Spinco Business (the “GGP Materials”).  Subject to the terms and conditions of this
Agreement, GGP grants to Spinco a non-exclusive, royalty-free, fully paid-up,
worldwide license to create or have created any derivative works or materials
based on the GGP Materials for distribution to employees and suppliers of
Spinco and use such materials in the operation of the Spinco Business in
substantially the same manner as the GGP Materials were used by GGP prior to
the Distribution.  It is understood and
agreed that GGP makes no representation or warranty, express or implied, as to
the accuracy or completeness of any of the GGP Materials, as to the
noninfringement of any of the GGP Materials or as to the suitability of any of
the GGP Materials for use by Spinco in respect of its business or otherwise.  Access to any GGP Materials shall be 

 

6

 

limited to those
Representatives of Spinco who need access in order to perform their
responsibilities.

 

(b)                                 Notwithstanding
the foregoing, the text of any materials related to or based upon any of the
GGP Materials created by, for or on behalf of Spinco may not contain any
references to the GGP Entities (or any use of the GGP Entities’ marks, names,
trade dress, logos or other source or business identifiers, including the GGP
Name and GGP Marks), the GGP Entities’ publications, the GGP Entities’
personnel (including senior management), the GGP Entities’ management
structures or any other indication that in each instance such materials are
based upon any of the GGP Materials.

 

Section 3.02.  Limitation on Rights and Obligations with
Respect to the GGP Materials.

 

(a)                                  Spinco
acknowledges and agrees that, except as expressly set forth above, GGP reserves
all rights (including all Intellectual Property rights) in, to and under the
GGP Materials and no rights with respect to ownership or use, except as
otherwise expressly provided in this Agreement, shall vest in Spinco.

 

(b)                                 GGP shall have
no obligation to (i) notify Spinco of any changes or proposed changes to
any of the GGP Materials, (ii) include Spinco in any consideration of
proposed changes to any of the GGP Materials, (iii) provide draft changes
of any of the GGP Materials to Spinco for review and/or comment or (iv) provide
Spinco with any updated materials relating to any of the GGP Materials except
to the extent such changes would affect the provision of Services in accordance
with the terms hereof.  The Parties
acknowledge and agree that the GGP Materials are the Confidential Information
of GGP.  Spinco shall use at least the
same degree of care to prevent and restrain the unauthorized use or disclosure
of any materials created by, for or on behalf of Spinco that are based upon any
of the GGP Materials as it uses for its other confidential information of a
like nature, but in no event less than a reasonable degree of care.  Spinco will allow GGP reasonable access to
its personnel and information as reasonably necessary to determine Spinco’s
compliance with the provisions set forth above; provided, however,
such access shall not unreasonably interfere with any of the business or
operations of Spinco.  Subject to Section 8.01,
in the event that GGP determines that Spinco has not materially complied with
some or all of its obligations with respect to any or all of the GGP Materials,
and such noncompliance is not cured within thirty (30) days following Spinco’s
receipt of written notice thereof from GGP, GGP may terminate Spinco’s rights
with respect to such GGP Materials upon written notice to Spinco and, in such
case, GGP shall be entitled to require such GGP Materials to be returned to GGP
or destroyed and any materials created by or for Spinco that are based upon
such GGP Materials to be destroyed (with such destruction certified by Spinco
in writing to GGP promptly after such termination).

 

(c)                                  If Spinco
determines to cease to avail itself of any of the GGP Materials or upon
expiration or termination of any period during which Spinco is permitted to use
any of the GGP Materials, GGP and Spinco shall cooperate in good faith to take
reasonable and appropriate actions to effectuate such determination, expiration
or termination, to arrange for the return to GGP or destruction of such GGP
Materials and to protect GGP’s rights and interests in such GGP Materials.

 

7

 

ARTICLE
IV

 

OTHER
ARRANGEMENTS AND ADDITIONAL AGREEMENTS

 

Section 4.01.  Software and Software Licenses.  If
and to the extent requested by Spinco, GGP shall use commercially reasonable
efforts to (x) obtain permission from third-party licensors of computer
software to allow GGP to provide services to Spinco as required hereunder and
(y) assist Spinco in its efforts to obtain licenses (or other appropriate
rights) to use, duplicate and distribute, as necessary and applicable, certain
computer software necessary for GGP to provide, or Spinco to receive, Services
(which assistance shall include to the extent appropriate providing Spinco the
opportunity to receive a copy of, or participate in, any communication between
GGP and the applicable third party licensor in connection therewith); provided,
however, that GGP and Spinco shall mutually agree upon the specific
types and quantities of any such software licenses; provided, further,
that GGP shall not be required to pay any fees or other payments unless such fees
and payments are reimbursed fully by Spinco or incur any obligations or
liabilities to enable GGP to provide such services or enable Spinco to obtain
any such license or rights; provided, further, that GGP shall not
be required to seek broader rights or more favorable terms for Spinco than
those applicable to GGP prior to the date of this Agreement or as may be
applicable to GGP from time to time hereafter; and, provided, further,
that Spinco shall bear only those costs that relate directly to obtaining such
licenses (or other appropriation rights), which shall not include any payments
relating to the discharge of Excluded Liabilities which are not related to the
provision of Services.  The Parties
acknowledge and agree that there can be no assurance that GGP’s efforts will be
successful or that Spinco will be able to obtain such licenses or rights on
acceptable terms or at all and, where GGP enjoys rights under any enterprise or
site license or similar license, the Parties acknowledge that such license typically
precludes partial transfers or assignments or operation of a service bureau on
behalf of unaffiliated entities.  In the
event that Spinco is unable to obtain such software licenses, the Parties shall
work together using commercially reasonable efforts to obtain an alternative
software license or modification to an existing GGP license to allow GGP to
provide, or Spinco to receive, such Services, and the Parties shall negotiate
in good faith an amendment to the applicable Schedule to reflect any such new
arrangement, which amended Schedule shall not require Spinco to pay for any
fees, expenses or costs relating to the software license that Spinco was unable
to obtain pursuant to the provisions of this Section 4.01.

 

Section
4.02.  GGP Computer-Based and Other
Resources.

 

(a)                                  As of the Plan
Effective Date, except as otherwise expressly provided in the Separation
Agreement, in any Schedule hereto, or in any other Transaction Documents,
Spinco and its Subsidiaries shall have no further access to, and GGP shall have
no obligation to otherwise provide access to, the GGP Intranet, and Spinco
shall have no access to, and GGP shall have no obligation to otherwise provide
access to, computer-based resources (including access to GGPI’s or its
Subsidiaries’ computer networks and databases) that require a password or are
available on a secured access basis only. Notwithstanding the foregoing, from
and after the Plan Effective Date, GGP shall use reasonable efforts to make
available to Spinco an intranet (the “Spinco Intranet”) accessible by
Spinco and its Subsidiaries that contains (i) the GGP Materials and (ii) any
materials that GGP determines in good faith that any member of the Spinco Group
needs to access in connection with the performance or delivery of any Service.

 

8

 

(b)                                 From and after
the Plan Effective Date, Spinco and its Subsidiaries shall cause all of their
personnel having access to the GGP Intranet or such other computer software,
networks, hardware, technology or computer-based resources pursuant to the
Separation Agreement, any Transaction Document or in connection with
performance, receipt or delivery of a Service to comply with all reasonable
security guidelines (including physical security, network access, Internet
security, confidentiality and personal data security guidelines) of GGPI and
its Subsidiaries (of which GGP provides Spinco notice).  Spinco shall ensure that the access
contemplated by this Section 4.02 shall be used by such personnel only
for the purposes contemplated by, and subject to the terms of, this Agreement.

 

Section 4.03.  Spinco Computer-Based and Other Resources.  From and after the date of this Agreement,
GGP and its Subsidiaries shall cause all of their personnel having access to
the Spinco Intranet or such other computer software, networks, hardware,
technology or computer based resources pursuant to the Separation Agreement,
any Transaction Document or in connection with performance, receipt or delivery
of a Service to comply with all reasonable security guidelines (including
physical security, network access, internet security, confidentiality and
personal data security guidelines) of Spinco and its Subsidiaries (of which
Spinco provides GGP notice).  GGP shall
ensure that the access contemplated by this Section 4.03 shall be used
by such personnel only for the purposes contemplated by, and subject to the
terms of, this Agreement.

 

Section 4.04.  Access.  (a) Spinco shall, and shall cause its
Subsidiaries to, allow GGP and its Representatives reasonable access to the
facilities of Spinco necessary for GGP to fulfill its obligations under this
Agreement.

 

(b)                                 Notwithstanding
the other rights of access of the Parties under this Agreement, each Party
shall, and shall cause its Subsidiaries to, afford the other Party, its
Subsidiaries and Representatives reasonable access, upon reasonable notice,
during normal business hours to the facilities, information, systems,
infrastructure, and personnel of the other Party as reasonably necessary for
the other Party to verify the adequacy of internal controls over information
technology, reporting of financial data and related processes employed in
connection with the Services, including in connection with verifying compliance
with Section 404 of the Sarbanes-Oxley Act of 2002; provided, however,
such access shall not unreasonably interfere with any of the business or
operations of such Party or its Subsidiaries.

 

Section 4.05.  Insider Trading Policy.  Each of the Parties hereby agrees that it
will instruct its Representatives that it is a violation of applicable Law for
any Representative to purchase or sell securities of the other Party based on
non-public information obtained in connection with the performance of this
Agreement.

 

Section 4.06.  Cooperation.  It is understood that it will require the
significant efforts of both Parties to implement this Agreement and to ensure
performance of this Agreement by the Parties at the agreed upon levels in
accordance with all of the terms and conditions of this Agreement. The Parties
will cooperate, acting in good faith and using commercially reasonable efforts,
to effect a smooth and orderly transition of the Services provided under this
Agreement from GGP to Spinco (including repairs and maintenance Services and
the assignment or transfer of the rights and obligations under any third-party
contracts relating to the Services) and Spinco 

 

9

 

agrees that it will use
commercially reasonable efforts to eliminate its need for the Services as
quickly as practicable; provided, however, that this Section
4.06 shall not require either Party to incur any out-of-pocket costs or
expenses unless and except as expressly provided in this Agreement or otherwise
agreed to in writing by the Parties (acknowledging that Spinco will be required
to incur costs and expenses in conjunction with eliminating its need for the
Services).

 

ARTICLE
V

 

COSTS
AND DISBURSEMENTS

 

Section 5.01.  Costs and Disbursements.  (a) Spinco shall pay to GGP a fee for each
Service (such fee constituting a “Service Charge” and, the fees for all
Services collectively, “Service Charges”) equal to the sum of (A)
the product of (i) the Cost Multiplier multiplied by (ii) the
applicable Service Resource Cost plus (B) the amount of any
Out-of-Pocket Expenses incurred with respect to such Service; provided, however,
that the Cost Multiplier shall be held constant at 110% for the term of this
Agreement with respect to Services in support of the JD Edwards application
(including, for the avoidance of doubt, the applicable Services set forth in
Schedule A-7: Accounting and Schedule A-10: Information Technology Services),
in each case solely to the extent such Services are in support of the JD
Edwards application.

 

(b)                                 GGP shall
invoice Spinco for the Service Charges monthly in arrears; provided that
the Service Charges shall be pro rated for any partial month.  Spinco shall pay the amount of each such
invoice by wire transfer or check to GGP within thirty (30) days of the receipt
of each such invoice.  If Spinco fails to
pay such amount (other than any portion of such amount being disputed in good
faith in accordance with the terms of this Agreement) by such date, Spinco shall
be obligated to pay to GGP, in addition to the amount due, interest thereon at
an annual percentage rate of ten percent (10%) (the “Interest Rate”)
accruing from the date the payment was due through the date of actual
payment.  Each invoice shall specify, for
each type of Service, (A) (i) the aggregate number of hours GGP Employees in
each group level set forth on Exhibit I spent performing such Service and
(ii) the Direct Payroll Costs for each such group level (or the
calculation under a different pricing methodology, as applicable), (B) the Cost
Multiplier in effect and (C) any Out-of-Pocket Expenses incurred with respect
to such Service.  Together with any
invoice for Service Charges, GGP shall provide Spinco with data and
documentation (including documentation of Out-of-Pocket Expenses) as reasonably
requested by Spinco for the purpose of verifying the accuracy of the
calculation of such Service Charges; provided, however, that GGP
shall provide Spinco with copies of all applicable third-party invoices as soon
as reasonably practicable following receipt by GGP, it being understood that
GGP’s receipt of applicable third-party invoices may be delayed for thirty (30)
or more days.

 

(c)                                  At any time
during the term of this Agreement, and for two (2) years after the expiration
or termination of this Agreement, Spinco or its auditors or other reputable
accounting firm, upon ten (10) business days’ prior written notice to GGP, may
audit the books and records of the GGP Group relating to this Agreement for the
purpose of verifying the Service Charges (at Spinco’s sole expense).  GGP shall, and shall cause its Affiliates to,
reasonably cooperate in such audit, make available on a timely basis the
information reasonably required to conduct the review, and assist the designated
representatives of Spinco or its auditors as reasonably necessary.  GGP shall, and shall cause its Affiliates to,
retain all such books and 

 

10

 

records relating to this
Agreement and the performance of the Services for two (2) years after the
expiration or termination of this Agreement or such longer period as may be
required by applicable law.  GGP shall
refund any overcharges or other amounts owed to Spinco, occurring at any time
during the term of this Agreement, disclosed by such audit, within thirty (30)
days after the completion of such audit.

 

Section 5.02.                             Taxes.

 

(a)                                  Without
limiting any provisions of this Agreement, Spinco shall pay any sales, use and
other similar taxes imposed on, or payable with respect to, any Services provided
to it under this Agreement; provided, however, that Spinco shall
not pay, or be responsible for, any applicable income, franchise or gross
receipts taxes imposed on, or payable with respect to, the income derived by
GGP from providing these Services to Spinco.

 

(b)                                 Notwithstanding
anything to the contrary in Section 5.02(a) or elsewhere in this
Agreement, Spinco shall be entitled to withhold from any payments to GGP any
such taxes that Spinco is required by law to withhold and shall pay over such
taxes to the applicable taxing authority.

 

Section 5.03.  No Right to Set-Off.  Spinco shall pay the full amount of Service
Charges and shall not set-off, counterclaim or otherwise withhold any amount
owed to GGP under this Agreement on account of any obligation owed by GGP to
Spinco that has not been finally adjudicated, settled or otherwise agreed upon
by the Parties in writing.

 

ARTICLE
VI

 

STANDARD
FOR SERVICE

 

Section 6.01.  Standard for Service.  Except where GGP is restricted by an existing
Contract with a third party or by Law, GGP agrees (i) to perform the Services
such that the nature, quality, standard of care and the service levels at which
such Services are performed are no less than that which are substantially
similar to the nature, quality, standard of care and service levels at which
the same or similar services were performed by or on behalf of GGP prior to the
Plan Effective Date (or, if not so previously provided, then substantially
similar to that which are applicable to similar services provided to GGP’s
Subsidiaries or other business components), but in any event, in at least a
good and workmanlike manner in accordance with past practice; (ii) upon receipt
of written notice from Spinco identifying any outage, interruption or other
failure of any Service, to respond to such outage, interruption or other
failure of any Services in a manner that is no less than that which is
substantially similar to the manner in which GGP or its Subsidiaries responded
to any outage, interruption or other failure of the same or similar services
prior to the Plan Effective Date (the Parties acknowledge that an outage,
interruption or other failure of any Service shall not be deemed to be a breach
of the provisions of this Section 6.01 so long as GGP complies with this
clause (ii)).  As of or following the
date of this Agreement, if GGP is or becomes aware of any restriction on GGP by
an existing Contract with a third-party that would restrict the nature,
quality, standard of care or service levels applicable to delivery of the
Services to be provided by GGP to Spinco, GGP shall (x) promptly notify
Spinco of any such restriction (which notice shall in any event promptly 

 

11

 

follow any change to, or
reduction in, the nature, quality, standard of care or service levels
applicable to delivery of the Services resulting from such restriction), (y)
use commercially reasonable efforts to negotiate an amendment to the Contract
to remove such restriction or otherwise obtain the third party’s consent to
allow the Services to be performed to the standards described in this Section
6.01, and (z) use commercially reasonable efforts to provide such Services
in a manner as closely as possible to the standards described in this Section
6.01 while attempting to secure the amendment or consent contemplated by
(y).  To the extent that GGP is unable to
obtain the amendment or consent described above, the Parties shall negotiate in
good faith an amendment to the applicable Schedule to reflect any such new
arrangement.

 

Section 6.02.  Disclaimer
of Warranties.  Except as expressly set forth in
this Agreement or any Schedule, the Parties acknowledge and agree that the
Services are provided as-is, that Spinco assumes all risks and liability arising
from or relating to its use of and reliance upon the Services and GGP makes no
representation or warranty with respect thereto.  EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, GGP HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES
REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY
REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE, NONINFRINGEMENT,
COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS OF THE SERVICES FOR A PARTICULAR
PURPOSE.

 

Section 6.03.  Compliance with Laws and Regulations.  Each Party shall be responsible for its own
compliance with any and all Laws applicable to its performance under this
Agreement.  No Party will knowingly take
any action in violation of any such applicable Law that results in liability
being imposed on the other Party.

 

ARTICLE
VII

 

LIMITED
LIABILITY AND INDEMNIFICATION

 

Section 7.01.  Consequential and Other Damages.  Notwithstanding anything to the contrary
contained in the Separation Agreement or this Agreement, neither Spinco or its
Subsidiaries, on the one hand, nor GGP or its Subsidiaries, on the other hand,
shall be liable to the other Party or any of its Subsidiaries or
Representatives, whether in contract, tort (including negligence and strict
liability) or otherwise, at law or equity, for any special, indirect,
incidental or consequential damages whatsoever (including lost profits or
damages calculated on multiples of earnings approaches), which in any way arise
out of, relate to or are a consequence of, the performance or nonperformance by
the Party (including any Subsidiaries and Representatives of such Party and, in
the case of GGP, any third-party providers providing the applicable Services)
under this Agreement or the provision of, or failure to provide, or termination
of, any Services under this Agreement, including with respect to loss of
profits, business interruptions or claims of customers (provided, that any
liability with respect to a Third Party Claim shall be considered direct
damages).

 

Section 7.02.  Limitation of Liability.  Subject to Section 7.03, the
Liabilities of GGP and its Subsidiaries and Representatives, collectively,
under this Agreement for any act or failure to act in connection herewith
(including the performance or breach of this Agreement), or 

 

12

 

from the sale, delivery,
provision, use or termination of any Services provided under or contemplated by
this Agreement, whether in contract, tort (including negligence and strict
liability) or otherwise, shall not exceed the greater of (a) the total
aggregate Service Charges (excluding any Out-of-Pocket Expenses included in
such Service Charges) actually paid to GGP by Spinco pursuant to this Agreement
and (b) $10,000,000.

 

Section 7.03.  Obligation to Reperform and GGP Indemnity.  In the event of any breach of this Agreement
by GGP with respect to the provision of any Services, GGP shall
(a) promptly correct in all material respects any error or defect
resulting in such breach or reperform in all material respects such Services at
the request of Spinco and at the sole cost and expense of GGP and (b) subject
to the limitations set forth in Sections 7.01 and 7.02,
indemnify Spinco and its Subsidiaries and Representatives (each, a “Spinco
Indemnified Party”) for Liabilities (including direct damages, whether
arising out of a Third Party Claim or otherwise) attributable to such breach by
GGP; provided, however, that, to the extent any such breach can
be cured through reperformance, the reperformance remedy set forth in Section
7.03(a) shall be the sole and exclusive remedy of Spinco for such portion
of such breach; provided, further, however, that GGP shall
indemnify each Spinco Indemnified Party to the extent any such party incurs
indemnifiable losses that cannot be cured through reperformance.  Any request for reperformance in accordance
with Section 7.03(a) by Spinco must be in writing and specify in
reasonable detail the particular error or defect resulting in such breach.

 

Section 7.04.  Release and Spinco Indemnity.  Subject to Section 7.01, Section 7.02
and Section 7.03, Spinco hereby releases GGP and its Subsidiaries and
Representatives (each, a “GGP Indemnified Party”), and Spinco hereby
agrees to indemnify, defend and hold harmless each such GGP Indemnified Party
from and against any and all Liabilities arising from, relating to or in
connection with the use of any Services by Spinco or any of its Subsidiaries,
Representatives or other Persons using such Services, except to the extent that
such Liabilities arise out of, relate to or are a consequence of the applicable
GGP Indemnified Party’s bad faith, gross negligence or willful misconduct.

 

Section 7.05.  Indemnification Procedures.  The provisions of Article V of the
Separation  Agreement shall govern claims
for indemnification under this Agreement.

 

Section 7.06.  Liability for Payment Obligations.  Nothing in this Article VII shall be
deemed to eliminate or limit, in any respect, Spinco’s express obligation in
this Agreement to pay Service Charges for Services rendered in accordance with
this Agreement.

 

Section 7.07.  Exclusion of Other Remedies.  The provisions of Sections 7.03 and 7.04
of this Agreement shall be the sole and exclusive remedies for any claim, loss,
damage, expense or liability, whether arising from statute, principle of common
or civil law, principles of strict liability, tort, contract or otherwise under
this Agreement.

 

13

 

ARTICLE
VIII

 

DISPUTE
RESOLUTION

 

Section 8.01.  Dispute Resolution.

 

(a)                                  In the event of
any dispute, controversy or claim arising out of or relating to the
transactions contemplated by this Agreement, or the validity, interpretation,
breach or termination of any provision of this Agreement, or calculation or
allocation of the costs of any Service, including claims seeking redress or
asserting rights under any Law (each, a “Dispute”), GGP and Spinco agree
that the GGP Overall Service Manager and the Spinco Overall Service Manager (or
such other Persons as GGP and Spinco may designate) shall negotiate in good
faith in an attempt to resolve such Dispute amicably.  If such Dispute has not been resolved to the
mutual satisfaction of the Overall Service Managers within fifteen (15) days
after the initial written notice of the Dispute by one Party to another Party
(or such longer period as the Parties may agree), then the respective Chief
Executive Officers of GGPI and Spinco shall negotiate in good faith in an
attempt to resolve such Dispute amicably. 
If such Dispute has not been resolved to the mutual satisfaction of the
Chief Executive Officers of GGPI and Spinco within fifteen (15) days after the
Dispute was referred to them for negotiation (or such longer period as the
Parties may agree), then the Dispute shall be resolved in accordance with the
dispute resolution process set forth in Sections 7.3 and 7.4 of the
Separation Agreement; provided, that such dispute resolution process
shall not modify or add to the remedies available to the Parties under this
Agreement.

 

(b)                                 Notwithstanding
anything to the contrary in this Agreement, either Party may immediately seek
equitable relief (without the necessity of posting a bond) including, without
limitation, temporary injunctive relief, against the other Party with respect
to any and all equitable remedies sought in connection with this Agreement in
accordance with Article VII of the Separation Agreement.

 

(c)                                  In any Dispute
regarding the amount of a Service Charge, if after such Dispute is finally
resolved pursuant to the dispute resolution process set forth or referred to in
Section 8.01(a), it is determined that the Service Charge that GGP has
invoiced Spinco, and that Spinco has paid to GGP, is greater or less than the
amount that the Service Charge should have been, then (a) if it is determined
that Spinco has overpaid the Service Charge, GGP shall within ten (10) business
days after such determination reimburse Spinco an amount of cash equal to such
overpayment, plus interest thereon at the Interest Rate accruing from the date
of such overpayment to the time of reimbursement by GGP, and (b) if it is
determined that Spinco has underpaid the Service Charge, Spinco shall within
ten (10) business days after such determination pay GGP an amount of cash equal
to such underpayment, plus interest thereon at the Interest Rate accruing from
the date of such underpayment (or when such payment was due if not paid at all)
to the time of payment by Spinco.

 

ARTICLE
IX

 

TERM
AND TERMINATION

 

Section 9.01.  Term and Termination.  (a) This Agreement shall commence immediately
upon the Plan Effective Date and shall terminate upon the earlier to occur of:
(i) the last date on which either Party is obligated to provide any Service to
the other Party and the completion of all other obligations hereunder in
accordance with the terms of this Agreement and (ii) the mutual written
agreement of the Parties to terminate this Agreement in its entirety.  Notwithstanding anything to the contrary
contained in this Agreement or any Schedule, 

 

14

 

(i) GGP’s obligation to
provide, or cause to be provided, Services to the Spinco Entities shall
terminate, at GGP’s sole option, with respect to any Spinco Entity that Spinco,
directly or indirectly, sells, or otherwise transfers ownership and control of,
to a non-Spinco Entity (e.g., pursuant to equity sale, asset sale, merger or
otherwise) and (ii) in no event shall the provision of any Service extend
beyond the date that is twenty-four (24) months from the Plan Effective Date.

 

(b)                                 Without
prejudice to Spinco’s rights with respect to a Force Majeure, Spinco may from
time to time terminate this Agreement with respect to the entirety of any
individual Service but not a portion thereof, (A) for any reason or no reason
upon providing to GGP the requisite prior written notice for such termination
as specified in the applicable Schedule or, if no such notice period is
provided in the applicable Schedule, on five (5) days’ prior written notice, or
(B) if GGP has failed to perform any of its material obligations under this
Agreement with respect to such Service, and such failure shall continue to
exist thirty (30) days after receipt by GGP of written notice of such failure
from Spinco; and (ii) GGP may terminate this Agreement with respect to one or
more Services, in whole but not in part, at any time upon prior written notice
to Spinco if Spinco has failed to perform any of its material obligations under
this Agreement relating to such Services, including making payment of any Service
Charges when due, and such failure shall be continued uncured for a period of
thirty (30) days after receipt by Spinco of a written notice of such failure
from GGP.  The relevant Schedule shall be
updated to reflect any terminated Service. 
In the event that any Service is terminated other than at the end of a
month, the Service Charge associated with such Service shall be pro-rated as
applicable.  In the event that Spinco
terminates any Service pursuant to clause (A) of this Section 9.01(b),
the GGP Group shall have the right to (i) terminate or discontinue any contract
or other arrangement with an unaffiliated third party to the extent such
contract or arrangement relates to such terminated Service, and any charges and
out-of-pocket costs, fees and expenses payable by any member of the GGP Group
in connection with the exercise of such right (other than severance obligations
or other amounts payable to any GGP Employee) shall be reimbursed by Spinco
promptly upon GGP’s presentation to Spinco of the applicable third party
invoice therefor and (ii) charge Spinco for any applicable Service Charges
incurred in connection with the orderly unwinding and transfer of such
terminated Service.

 

(c)                                  Without
prejudice to the rights and obligations of the Parties in Section 2.03
and Section 4.06, either Party may from time to time request a reduction
in part of the scope or amount of any Service. 
If requested to do so by the other Party, each Party agrees to discuss
in good faith appropriate reductions to the relevant Service Charges in light
of all relevant factors including the costs and benefits to the Parties of any
such reductions.  If, after such
discussions, Spinco and GGP do not agree to any requested reduction of the scope
or amount of any Service and the relevant Service Charges in connection
therewith, then there shall be no change to the scope or amount of any Services
or Service Charges under this Agreement. 
In the event that Spinco and GGP agreed to any reduction of Service and
the relevant Service Charges, the relevant Schedule shall be updated to reflect
such reduced Service and relevant Service Charges if any.  In the event that any Service is reduced
other than at the end of a month, the Service Charge associated with such
Service for the month in which such Service is reduced shall be pro-rated
appropriately.

 

Section 9.02.  Effect of Termination.  Upon termination of any Service pursuant to
this Agreement, GGP will have no further obligation to provide the terminated
Service, and 

 

15

 

Spinco will have no
obligation to pay any future Service Charges relating to any such Service; provided,
that Spinco shall remain obligated to GGP for the Service Charges owed and
payable in respect of Services provided prior to the effective date of
termination as set forth in the Schedule relating to such Service.  In connection with termination of any
Service, the provisions of this Agreement not relating solely to such
terminated Service shall survive any such termination, and in connection with a
termination of this Agreement, Article I, Article VII (including
liability in respect of any indemnifiable Liabilities under this Agreement
arising or occurring on or prior to the date of termination), Article VIII,
Article IX, Article X, all confidentiality obligations under this
Agreement and liability for all due and unpaid Service Charges shall continue
to survive indefinitely.

 

Section 9.03.  Force Majeure.  (a) GGP (and any Person acting on its behalf)
shall not have any liability or responsibility for failure to fulfill any
obligation under this Agreement so long as and to the extent to which the
fulfillment of such obligation is prevented, frustrated, hindered or delayed as
a consequence of circumstances of Force Majeure; provided, that (i) GGP
(or such Person) shall have exercised commercially reasonable efforts to
minimize the effect of Force Majeure on its obligations; and (ii)  the nature, quality and standard of care that
GGP shall provide in delivering a Service after a Force Majeure shall be
substantially the same  as the nature,
quality and standard of care that GGP provides to its Subsidiaries and its
other business components with respect to such Service.  In the event of an occurrence of a Force
Majeure, GGP shall give notice of suspension as soon as reasonably practicable
to the other Party stating the date and extent of such suspension and the cause
thereof, and GGP shall resume the performance of such obligations as soon as
reasonably practicable after the removal of such cause.

 

(b)                                 During the
period of a Force Majeure, Spinco shall be entitled to seek an alternative
service provider with respect to such Service(s) and shall be entitled to
permanently terminate such Service(s) (and shall be relieved of the obligation
to pay Service Charges for such Services(s) throughout the duration of such
Force Majeure) if a Force Majeure shall continue to exist for more than fifteen
(15) consecutive days, it being understood that Spinco shall not be required to
provide any advance notice of such termination to GGP in connection therewith.

 

ARTICLE
X

 

GENERAL
PROVISIONS

 

Section 10.01.  No Agency.  Nothing in this Agreement shall be deemed in
any way or for any purpose to constitute any Party an agent of another
unaffiliated Party in the conduct of such other Party’s business.  GGP shall act as an independent contractor
and not as the agent of Spinco in performing such Services, maintaining control
over GGP Employees, GGP’s subcontractors and their employees and complying with
all withholding of income and other requirements of Law, whether federal,
state, local or foreign and no member of the GGP Group shall have any authority
to bind any member of the Spinco Group by contract or otherwise.

 

Section 10.02.  Subcontractors.  GGP may hire or engage one or more
subcontractors to perform any or all of its obligations under this Agreement; provided,
that 

 

16

 

(i) GGP shall use the
same degree of care in selecting any such subcontractor as it would if such
contractor was being retained to provide similar services to GGP, (ii) GGP
shall in all cases remain primarily responsible for all of its obligations
under this Agreement with respect to the scope of the Services, the standard
for services as set forth in Article VI and the content of the Services
provided to Spinco and (iii) without the prior written consent of the
applicable Spinco Service Manager (not to be unreasonably withheld, conditioned
or delayed), GGP shall not remove and/or replace any subcontractor if such
action would reasonably be expected to cause a material increase in cost with
respect to the applicable Service. 
Notwithstanding the foregoing, (x) Spinco (or any other member of the
Spinco Group) shall have the right to hire or engage any subcontractor directly
and (y) if GGP does hire or engage any subcontractor to provide any Service
hereunder, then, notwithstanding any provision of this Agreement or any other
Transaction Document to the contrary, the applicable Service Charge for the
provision of such Service performed by such subcontractor shall be only the
amount actually paid to such subcontractor for providing such Service, without
any additional charge or mark up.

 

Section 10.03.  Treatment of Confidential Information.

 

(a)                                  The Parties
shall not, and shall cause their respective Representatives and all other
Persons providing Services or having access to information of the other Party
that is known to such Party as confidential or proprietary (“Confidential
Information”) not to, disclose to any other Person or use, except for
purposes of this Agreement, any Confidential Information of the other Party; provided,
however, that each Party may disclose Confidential Information of the
other Party and to the extent permitted by applicable Law: (i) to its
Representatives on a need-to-know basis in connection with the performance of
such Party’s obligations under this Agreement; (ii) in any report, statement,
testimony or other submission required to be made to any Governmental Authority
having jurisdiction over the disclosing Party; or (iii) in order to comply with
applicable Law, or in response to any summons, subpoena or other legal process
or formal or informal investigative demand issued to the disclosing Party in
the course of any litigation, investigation or administrative proceeding.  In the event that a Party becomes legally
compelled (based on advice of counsel) by deposition, interrogatory, request
for documents, subpoena, civil investigative demand or similar judicial or
administrative process to disclose any Confidential Information of the other
Party, such disclosing Party shall provide the other Party with prompt prior
written notice of such requirement, and, to the extent reasonably practicable,
cooperate with the other Party (at such other Party’s expense) to obtain a
protective order or similar remedy to cause such Confidential Information not
to be disclosed, including interposing all available objections thereto, such
as objections based on settlement privilege. 
In the event that such protective order or other similar remedy is not
obtained, the disclosing Party shall furnish only that portion of the
Confidential Information that has been legally compelled, and shall exercise
its commercially reasonable efforts (at such other Party’s expense) to obtain
assurance that confidential treatment will be accorded such Confidential
Information.

 

(b)                                 Each Party
shall, and shall cause its Representatives to protect the Confidential
Information of the other Party by using the same degree of care to prevent the
unauthorized disclosure of such as the Party uses to protect its own
confidential information of a like nature but in any event not less than
reasonable means.

 

17

 

(c)                                  Each Party
shall cause its Representatives to agree to be bound by the same restrictions
on use and disclosure of Confidential Information as are binding upon such
Party in advance of the disclosure of any such Confidential Information to
them.

 

(d)                                 The restrictions
set forth in Sections 10.03(a) and (b) shall not prevent either
Party from disclosing Confidential Information which belongs to that Party or
(a) is in or enters the public domain without breach of this Agreement or any
other Transaction Document, (b) the receiving Party was lawfully and
demonstrably in possession of prior to first receiving it from the disclosing
Party, (c) the receiving Party can demonstrate was developed by the receiving
Party independently and without use of or reference to the disclosing Party’s
Confidential Information, (d) the receiving Party receives from a third party
without restriction on disclosure and without breach of a nondisclosure
obligation, or (e) is approved by the other Party for disclosure.

 

(e)                                  Each Party shall
comply with all applicable state, federal and foreign privacy and data
protection Laws that are or that may in the future be applicable to the
provision of Services under this Agreement.

 

Section 10.04.  Further Assurances.  Each Party covenants and agrees that, without
any additional consideration, it shall execute and deliver any further legal
instruments and perform any acts that are or may become necessary to effectuate
this Agreement.

 

Section 10.05.  Notices.  Except with respect to routine communications
by the GGP Service Managers and Spinco Service Managers under Section 2.04,
all notices, requests, claims, demands and other communications under this
Agreement shall be in writing and shall be given or made (and shall be deemed
to have been duly given or made upon receipt) by delivery in person, by
overnight courier service, by facsimile or electronic transmission with receipt
confirmed (followed by delivery of an original via overnight courier service)
or by registered or certified mail (postage prepaid, return receipt requested)
to the respective Parties at the following addresses (or at such other address
for a Party as shall be specified in a notice given in accordance with this Section 10.05):

 

	
  (i)

  	
  if to GGP:

  
	
   

  	
   

  
	
   

  	
  General Growth Properties, Inc.

  
	
   

  	
  110 N. Wacker Drive

  
	
   

  	
  Chicago, IL 60606

  
	
   

  	
  Attention:

  	
  General Counsel

  
	
   

  	
  Facsimile:

  	
  (312) 960-5485

  
	
   

  	
   

  
	
  (ii)

  	
  if to Spinco:

  
	
   

  	
   

  
	
   

  	
  The Howard Hughes
  Corporation

  
	
   

  	
  13355 Noel Road

  
	
   

  	
  Suite 950

  
	
   

  	
  Dallas, TX 75240

  
	
   

  	
  Attention:

  	
  Grant Herlitz

  
	
   

  	
  Facsimile:

  	
  (214) 741-3021

  

 

18

 

	
  (iii)

  	
  in each case, with a copy to:

  
	
   

  	
   

  
	
   

  	
  Weil, Gotshal & Manges LLP

  
	
   

  	
  767 Fifth Avenue

  
	
   

  	
  New York, NY 10153

  
	
   

  	
  Attention:

  	
  Gary Holtzer and Marcia
  Goldstein

  
	
   

  	
  Facsimile:

  	
  (212) 310-8007

  

 

Section 10.06.  Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced under any Law or
as a matter of public policy, all other conditions and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated by this Agreement
is not affected in any manner materially adverse to any Party.  Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the Parties
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the Parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated by this Agreement be
consummated as originally contemplated to the greatest extent possible.

 

Section 10.07.  Entire Agreement.  Except as otherwise expressly provided in
this Agreement, this Agreement, the Separation Agreement and the other
Transaction Documents constitute the entire agreement of the Parties with
respect to the subject matter of this Agreement and supersede all prior
agreements and undertakings, both written and oral, between or on behalf of the
Parties with respect to the subject matter of this Agreement.

 

Section 10.08.  No Third-Party Beneficiaries.  Except as provided in Article VII with respect to GGP
Indemnified Parties, this Agreement is for the sole benefit of the Parties and
their permitted successors and assigns and nothing in this Agreement, express
or implied, is intended to or shall confer upon any other Person, including any
union, any current or former GGP Employee or any current or former employee of
Spinco, any legal or equitable right, benefit or remedy of any nature
whatsoever, including any rights of employment for any specified period, under
or by reason of this Agreement.

 

Section 10.09.  Governing Law.  This Agreement (and any claims or disputes
arising out of or related to this Agreement or to the transactions contemplated
by this Agreement or to the inducement of any Party to enter into this
Agreement or the transactions contemplated by this Agreement, whether for
breach of contract, tortious conduct or otherwise and whether predicated on
common law, statute or otherwise) shall in all respects be governed by, and
construed in accordance with, the Laws of the State of New York, including all
matters of construction, validity and performance, in each case without
reference to any conflict of Law rules that might lead to the application of
the Laws of any other jurisdiction.

 

Section 10.10.  Amendment.  No provision of this Agreement, including any
Schedules to this Agreement, may be amended, supplemented or modified except by
a written instrument making specific reference to this Agreement or any such
Schedules to this Agreement, as applicable, signed by all the Parties.

 

19

 

Section 10.11.  Rules of Construction.  Interpretation of this Agreement shall be
governed by the following rules of construction:  (a) words in the singular shall be held
to include the plural and vice versa, and words of one gender shall be held to
include the other gender as the context requires; (b) references to the terms
Article, Section, paragraph and Schedule are references to the Articles,
Sections, paragraphs and Schedules of this Agreement unless otherwise
specified; (c) references to “$” shall mean U.S. dollars; (d) the word “including”
and words of similar import when used in this Agreement shall mean “including
without limitation,” unless otherwise specified; (e) the word “or” shall not be
exclusive; (f) references to “written” or “in writing” include in electronic
form; (g) provisions shall apply, when appropriate, to successive events
and transactions; (h) the headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement; (i) GGP and Spinco have each participated in
the negotiation and drafting of this Agreement and if an ambiguity or question
of interpretation should arise, this Agreement shall be construed as if drafted
jointly by the Parties and no presumption or burden of proof shall arise
favoring or burdening either Party by virtue of the authorship of any of the
provisions in this Agreement or any interim drafts of this Agreement; (j) a
reference to any Person includes such Person’s successors and permitted
assigns; (k) any reference to “days” means calendar days unless business days
are expressly specified; and (l) when calculating the period of time before
which, within which or following which any act is to be done or step taken
pursuant to this Agreement, the date that is the reference date in calculating
such period shall be excluded, if the last day of such period is not a business
day, the period shall end on the next succeeding business day.

 

Section 10.12.  Counterparts.  This Agreement may be executed in one or more
counterparts, and by each Party in separate counterparts, each of which when
executed shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement. 
Delivery of an executed counterpart of a signature page to this
Agreement by facsimile or portable document format (PDF) shall be as effective
as delivery of a manually executed counterpart of this Agreement.

 

Section 10.13.  Assignability.  (a) This Agreement shall not be assigned by
operation of Law or otherwise without the prior written consent of GGP and
Spinco, except that each Party may:

 

(i)                                     assign all of
its rights and obligations under this Agreement to any of its Subsidiaries; provided, that no such assignment shall release GGP or Spinco, as the case
may be, from any liability or obligation under this Agreement;

 

(ii)                                  in connection
with the divestiture of any Subsidiary or business of Spinco to an acquiror
that is not a Competitor of GGP, assign to the acquiror of such Subsidiary or
business its rights and obligations as a recipient with respect to the Services
provided to such divested Subsidiary or business under this Agreement; provided, that (i) no such assignment shall release GGP or Spinco, as the
case may be, from any liability or obligation under this Agreement, (ii) any
and all costs and expenses incurred by either Party in connection with such
assignment (including in connection with clause (iii) of this proviso) shall be
borne solely by the assigning Party, and (iii) the Parties shall in good faith
negotiate any amendments to this 

 

20

 

Agreement, including the
Annexes and Schedules to this Agreement, that may be necessary or appropriate
in order to assign such Services; and

 

(iii)                               in connection
with the divestiture of any Subsidiary or business of Spinco to an acquiror
that is a Competitor of GGP, assign to the acquiror of such Subsidiary or
business its rights and obligations as a recipient with respect to the Services
provided to such divested Subsidiary or business under this Agreement; provided, that (i) no such assignment shall release GGP or Spinco, as the
case may be, from any liability or obligation under this Agreement, (ii) any
and all costs and expenses incurred by either Party in connection with such
assignment (including in connection with clause (iii) of this proviso) shall be
borne solely by the assigning Party, (iii) the Parties shall in good faith
negotiate any amendments to this Agreement, including the Annexes and Schedules
to this Agreement, that may be necessary or appropriate in order to ensure that
such assignment will not (x) materially and adversely affect the businesses and
operations of each of the Parties and their respective Subsidiaries or (y) create
a competitive disadvantage for GGP with respect to an acquiror that is a
Competitor of GGP, and (iv) GGP shall not be obligated to provide any such
assigned Services to an acquiror that is a Competitor of GGP if the provision
of such assigned Services to such acquiror would disrupt the operation of GGP’s
businesses or create a competitive disadvantage for GGP with respect to such
acquiror.

 

(b)                                 In the event of
the (i) merger, amalgamation or consolidation of Spinco and another Person,
(ii) sale of all or substantially all of the assets of Spinco to another
Person, (iii) the acquisition of a majority of the voting stock of Spinco by
any Person or “group” (within the meaning of Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended) or (iv) the election of, or appointment to,
the board of directors of Spinco of directors constituting a majority of the
directors then serving if such elected or appointed directors have not been
nominated as directors by the Nominating Committee of the board of directors
prior to their election or appointment, then the requirement of GGP to provide
Services hereunder shall automatically terminate without further action by the
Parties thirty (30) days after the occurrence of such event.

 

Section 10.14.  Waiver of Jury Trial.  EACH PARTY TO THIS AGREEMENT WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT. 
EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER;
AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY TO THIS AGREEMENT HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER TRANSACTION AGREEMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
10.14.

 

Section 10.15.                       Specific
Performance.  The
provisions of Section 7.4 of the Separation 
Agreement shall govern specific performance under this Agreement.

 

21

 

Section 10.16.  Non-Recourse.  Other than the GGP Group and the Spinco
Group, no past, present or future director, officer, employee, incorporator,
member, partner, stockholder, Affiliate, agent, attorney or representative of
either GGP or Spinco or their Subsidiaries shall have any liability for any
obligations or liabilities of GGP or Spinco, respectively, under this Agreement
or for any claims based on, in respect of, or by reason of, the transactions
contemplated by this Agreement.

 

[The remainder of this page
is intentionally left blank.]

 

22

 

IN WITNESS WHEREOF, the Parties have caused this
Agreement to be executed on the date first written above by their respective
duly authorized officers.

 

 

	
   

  	
  GGP LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL GROWTH MANAGEMENT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE HOWARD
  HUGHES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Signature Page to Transition Services
AgreementExhibit 10.59

 

TAX MATTERS AGREEMENT

 

by and between

 

General Growth Properties, Inc.

 

and

 

The Howard Hughes
Corporation

 

Dated as of []

 

 

TAX MATTERS AGREEMENT

 

THIS
TAX MATTERS AGREEMENT (this “Agreement”), dated as of [], is by and
between General Growth Properties, Inc., a Delaware corporation (“GGP”)
and The Howard Hughes Corporation, a Delaware corporation (“Spinco”).  Each of GGP and Spinco is sometimes referred
to herein as a “Party” and, collectively, as the “Parties.”

 

WHEREAS,
the board of directors of GGP has determined that it is in the best interests
of GGP and its shareholders to create a new publicly traded company which shall
operate the Spinco Business;

 

WHEREAS,
the board of directors of GGP and the board of directors of Spinco have approved
(i) the Restructuring, and (ii) the Distribution, all as more fully
described in the Separation Agreement and the other Transaction Documents;

 

WHEREAS,
for U.S. federal income tax purposes, certain steps of the Restructuring and
the Distribution are intended to qualify for tax-free treatment under Sections
351, 355, 368(a) and related provisions of the Code;

 

WHEREAS,
GGP has received the Private Letter Ruling from the IRS to the effect that,
among other things, (i) certain steps of the Restructuring and the
Distribution, taken together, qualify as a transaction (a) that is
described in Sections 355(a) and 368(a)(1)(G) of the Code, (b) in
which the Spinco Common Stock distributed is “qualified property” under Section 361(c) of
the Code and (c) in which the holders of GGP Common Shares recognize no
income or gain for U.S. federal income tax purposes under Section 355 of
the Code, and (ii) certain other steps of the Spinoff Plan qualify as
transactions that are described in Sections 355(a) and 368(a)(1)(G) of
the Code;

 

WHEREAS,
as a result of the Restructuring and Distribution, the Parties desire to enter
into this Agreement to provide for certain Tax matters, including the
assignment of responsibility for the preparation and filing of Tax Returns, the
payment of and indemnification for Taxes (including any Taxes incurred in
connection with the Restructuring and Distribution), entitlement to refunds of
Taxes, and the prosecution and defense of any Tax controversies;

 

NOW,
THEREFORE, in consideration of the foregoing and the terms, conditions,
covenants and provisions of this Agreement, each of the Parties mutually
covenants and agrees as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01.        General.  As used in this Agreement, the following
terms shall have the following meanings:

 

 

“Accounting
Firm” has the meaning set forth in Section 9.01.

 

“Adjusted
CDND” has the meaning ascribed to it in the Investment Agreements.

 

“Adjustment”
means any proposed or final change in the Tax liability of a taxpayer.

 

“Agreement”
has the meaning set forth in the preamble to this Agreement.

 

“Common
Parent” means (i) for U.S. federal income tax purposes, the “common
parent corporation” of an “affiliated group” (in each case, within the meaning
of Section 1504 of the Code) filing a U.S. federal consolidated income Tax
Return, or (ii) for state, local or foreign Tax purposes, the common
parent (or the equivalent thereof) of a Tax Group.

 

“Consolidated
Return” means, with respect to the GGP Group and Spinco Group,
respectively, the U.S. federal income Tax Return required to be filed by (i) a
GGP Entity as the Common Parent or (ii) a Spinco Entity as the Common
Parent.

 

“Cornerstone
Investment Agreement” means that certain Cornerstone Investment Agreement
effective as of March 31, 2010 between REP Investments LLC and GGP, as
amended to the date hereof.

 

“Disqualifying
Action” means a GGP Disqualifying Action or a Spinco Disqualifying Action.

 

“Due
Date” means (i) with respect to a Tax Return, the date (taking into
account all valid extensions) on which such Tax Return is required to be filed
under applicable Law and (ii) with respect to a payment of Taxes, the date
on which such payment is required to be made to avoid the incurrence of
interest, penalties and/or additions to Tax.

 

“Effective
Date” means the date of the Distribution.

 

“Excess
Surplus Amount” has the meaning ascribed to it in the Investment
Agreements.

 

“Final
Determination” means the final resolution of liability for any Tax for any
taxable period, by or as a result of (i) a final decision, judgment,
decree or other order by any court of competent jurisdiction that can no longer
be appealed; (ii) a final settlement with the IRS, a closing agreement or
accepted offer in compromise under Sections 7121 or 7122 of the Code, or a
comparable agreement under the Laws of other jurisdictions, which resolves the
entire Tax liability for any taxable period; (iii) any allowance of a
refund or credit in respect of an overpayment of Tax, but only after the
expiration of all periods during which such refund or credit may be recovered
by the jurisdiction imposing the Tax; or (iv) any other final resolution,
including by reason of the expiration of the applicable statute of limitations
or the execution of a pre-filing agreement with the IRS or other Taxing
Authority.

 

“GGP”
has the meaning set forth in the preamble to this Agreement.

 

2

 

“GGP
Disqualifying Action” means (i) any action (or the failure to take any
action) within its control by any GGP Entity (including entering into any
agreement, understanding or arrangement or any negotiations with respect to any
transaction or series of transactions) that, (ii) any event (or series of
events) involving the capital stock of GGP or any assets of any GGP Entity
that, or (iii) any breach by any GGP Entity of any representation,
warranty or covenant made by them in the Transaction Documents that, in each
case, would reasonably be expected to negate the Tax-Free Status of the
Transactions; provided, however, the term “GGP Disqualifying
Action” shall not include any action required by the Separation Agreement
or any other Transaction Document or that is undertaken pursuant to the
Restructuring or the Distribution.

 

“GGP
Entity” means any member of the GGP Group.

 

“GGP
Liability Percentage” means the quotient, expressed as a percentage and
rounded to two (2) decimal points, of (i) the GGP Market
Capitalization, divided by (ii) the sum of the GGP Market Capitalization
plus the Spinco Market Capitalization.

 

“GGP
Market Capitalization” means the product of (i) the volume-weighted
average trading price per share of GGP Common Shares for the twenty (20)
consecutive trading days beginning on and following the thirty-first (31st)
trading day following the Effective Time, as quoted by Bloomberg Financial
Services through its “Volume at Price” function, rounded to the nearest whole
cent, multiplied by (ii) the arithmetic average of the number of GGP
Common Shares outstanding, on a fully-diluted basis, on each of such twenty
(20) trading days, rounded to two (2) decimal points.

 

“GGP
Taxes” means any Taxes allocated to GGP pursuant to Article II.

 

“Income
Taxes” means any Taxes based upon, measured by, or calculated with respect
to net income, profits, or gains (including, but not limited to, any capital
gains, minimum Tax or any Tax on items of Tax preference, but not including
sales, use, real or personal property, excise, or transfer or similar Taxes).

 

“Indemnity
Cap” has the meaning ascribed to it in Section 2.01(b).

 

“Indemnifying
Party” means the Party from which the other Party is entitled to seek
indemnification pursuant to the provisions of Article IV.

 

“Indemnified
Party” means the Party which is entitled to seek indemnification from the
other Party pursuant to the provisions of Article IV.

 

“Independent
Firm” has the meaning set forth in Section 8.01(b).

 

“Information”
has the meaning set forth in Section 8.01(a).

 

“Information
Request” has the meaning set forth in Section 8.01(a).

 

“IRS”
means the U.S. Internal Revenue Service or any successor thereto, including,
but not limited to its agents, representatives, and attorneys.

 

3

 

“MPC
Assets” means residential and commercial lots in the “master planned communities”
owned, for federal income tax purposes, by Howard Hughes Properties, Inc.
or The Hughes Corporation or related to the Emerson Master Planned Community.

 

“MPC
Taxes” means all liability for Income Taxes in respect of sales of MPC
assets sold prior to March 31, 2010.

 

“New
GGPI” means, after the Distribution, the publicly held corporation that
will indirectly acquire 100% of the outstanding common stock of GGP.

 

“Notified
Action” has the meaning set forth in Section 7.02(a).

 

“Party”
has the meaning set forth in the preamble to this Agreement.

 

“Past
Practice” has the meaning set forth in Section 3.03(a)(i).

 

“Pre-Closing
Period” means any taxable period ending on or before the Effective Date.

 

“Post-Closing
Period” means any taxable period beginning after the Effective Date.

 

“Refund”
means any refund (or credit in lieu thereof) of Taxes (including any
overpayment of Taxes that can be refunded or, alternatively, applied to other
Taxes payable), including any interest paid on or with respect to such refund
of Taxes.

 

“Restructuring/Distribution
Taxes” means any Taxes incurred in or by reason of the Restructuring or the
Distribution, other than Spin-Off Taxes. 
For the avoidance of doubt, Restructuring/Distribution Taxes include
Taxes by reason of deferred intercompany transactions triggered by the
Restructuring or the Distribution.

 

“Representative”
has the meaning set forth in Section 8.01(b).

 

“Response
Deadline” has the meaning set forth in Section 8.01(b).

 

“Separate
Return” means (i) in the case of the GGP Group, a Tax Return of any
GGP Entity (including any Consolidated, combined, affiliated, or unitary Tax
Return) that does not include, for any portion of the relevant taxable period,
any Spinco Entity that is a regarded entity for U.S. federal income tax
purposes and (ii) in the case of the Spinco Group, a Tax Return of any
Spinco Entity (including any Consolidated, combined, affiliated, or unitary Tax
Return) and that does not include, for any portion of the relevant taxable
period, any GGP Entity that is a regarded entity for U.S. federal income tax
purposes.

 

“Separation
Agreement” means the Separation Agreement by and between the Parties dated
as of [].

 

“Spin-off
Taxes” means any Taxes or other Liabilities incurred solely as a result of
the failure of the Tax-Free Status of the Transactions.

 

4

 

“Spinco”
has the meaning set forth in the preamble to this Agreement.

 

“Spinco
Disqualifying Action” means (i) any action (or the failure to take any
action) within its control by any Spinco Entity (including entering into any
agreement, understanding or arrangement or any negotiations with respect to any
transaction or series of transactions) that, (ii) any event (or series of
events) involving the capital stock of Spinco or any assets of any Spinco
Entity that, or (iii) any breach by any Spinco Entity of any
representation, warranty or covenant made by them in the Transaction Documents
that, in each case, would reasonably be expected to negate the Tax-Free Status
of the Transactions; provided, however, the term “Spinco
Disqualifying Action” shall not include any action required by the
Separation Agreement or any other Transaction Document or that is undertaken
pursuant to the Restructuring or the Distribution.

 

“Spinco
Entity” means any member of the Spinco Group.

 

“Spinco
Liability Percentage” means the difference, expressed as a percentage, of (i) one
hundred percent (100%) minus (ii) the GGP Liability Percentage.

 

“Spinco
Market Capitalization” means the product of (i) the volume-weighted
average trading price per share of shares of Spinco Common Stock for the twenty
(20) consecutive trading days beginning on and following the thirty-first
(31st) trading day following the Effective Time, as quoted by Bloomberg
Financial Services through its “Volume at Price” function, rounded to the
nearest whole cent, multiplied by (ii) the arithmetic average of the
number of shares of Spinco Common Stock outstanding, on a fully-diluted basis,
on each of such twenty (20) trading days, rounded to two (2) decimal
points.

 

“Spinco
Taxes” means any Taxes allocated to Spinco pursuant to Article II.

 

“Straddle
Period” means any taxable period that begins on or before and ends after
the Effective Date.

 

“Supplemental
Ruling” means a private letter ruling, without substantive qualifications,
of the IRS, to the effect that a transaction will not affect the Tax-Free
Status of the Transactions.

 

“Suspended
Deductions” means the interest deductions of The Hughes Corporation
suspended by Section 163(j) of the Code and available for use as of
the Effective Date.  Such deductions were
estimated to be approximately $406,000,000 as of December 31, 2009.  The amount of Suspended Deductions available
for use as of the Effective Date will be calculated based on an interim closing
of the books and records of The Hughes Corporation as of the close of business
on the Effective Date.

 

“Tax”
means (i) all taxes, charges, fees, duties, levies, imposts, or other
similar assessments, imposed by any U.S. federal, state or local or foreign
governmental authority, including, but not limited to, income, gross receipts,
excise, property, sales, use, license, capital stock, transfer, franchise,
payroll, withholding, social security, value added and other taxes, (ii) any
interest, penalties or additions attributable thereto and (iii) all
liabilities in respect of any 

 

5

 

items
described in clauses (i) or (ii) payable by reason of assumption,
transferee or successor liability, operation of Law or Treasury Regulation Section 1.1502-6(a) (or
any predecessor or successor thereof or any analogous or similar provision
under Law).

 

“Tax
Attributes” means net operating losses, capital losses, earnings and
profits, overall foreign losses, previously taxed income, separate limitation
losses, deferred or suspended losses or deductions, foreign tax credits or
other tax credits and all other Tax attributes.

 

“Tax Detriment” shall
mean an increase in the Tax liability of a Person for any Taxable Period.  Except as otherwise provided in this
Agreement, a Tax Detriment shall be deemed to have been realized or suffered
from a Tax Item or Items in a taxable period only if and to the extent that the
Tax liability of such Person for such period is greater than it would have been
if such Tax liability were determined without regard to such Tax Item.

 

“Tax-Free
Status of the Transactions” means the tax-free treatment accorded to
certain of the transactions taken in connection with the Restructuring and the
Distribution as set forth in the Private Letter Ruling.

 

“Tax
Group” means any U.S. federal, state, local or foreign affiliated,
consolidated, combined, unitary or similar group or fiscal unity that joins in
the filing of a single Tax Return.

 

“Taxing
Authority” means any governmental authority or any subdivision, agency,
commission or entity thereof or any quasi-governmental or private body having
jurisdiction over the assessment, determination, collection or imposition of
any Tax (including the IRS).

 

“Tax
Item” shall mean any item of income, gain, loss, deduction, credit,
recapture of credit, Tax Attribute, or any other item which may have the effect
of increasing or decreasing Taxes paid or payable.

 

“Tax
Matter” has the meaning set forth in Section 8.01(a).

 

“Tax
Package” means all relevant Tax-related information relating to the
operations of the GGP Business or the Spinco Business, as applicable, that is
reasonably necessary to prepare and file the applicable Tax Return.

 

“Tax
Proceeding” means any audit, assessment of Taxes, pre-filing agreement,
other examination by any Taxing Authority, proceeding, appeal of a proceeding
or litigation relating to Taxes, whether administrative or judicial, including
proceedings relating to competent authority determinations.

 

“Tax
Return” means any return, report, certificate, form or similar statement or
document (including any related or supporting information or schedule attached
thereto and any information return, or declaration of estimated Tax) supplied
to, or filed with, or required to be supplied to, or filed with, a Taxing
Authority with respect to Taxes.

 

6

 

“Treasury
Regulations” means the final and temporary (but not proposed) income Tax
regulations promulgated under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

 

“Unqualified
Tax Opinion” means a “will” opinion, without substantive qualifications, of
a nationally recognized law firm, which law firm is reasonably acceptable to
GGP and Spinco, to the effect that a transaction will not affect the Tax-Free
Status of the Transactions.

 

Section 1.02.        Additional Definitions.

 

(a)           Capitalized terms not defined in this Agreement shall have
the meaning ascribed to them in the Separation Agreement.

 

ARTICLE II

 

ALLOCATION OF TAX LIABILITIES AND
REFUNDS

 

Section 2.01.        Allocation of Tax
Liabilities.

 

(a)           Income and Other Taxes.

 

(i)            Except as provided in Section 2.01 (d), GGP shall be
liable for all Taxes of GGP Entities for all taxable periods; provided,
that Spinco shall be liable for and shall indemnify GGP from and against all
Taxes imposed on a GGP Entity pursuant to Treasury Regulation Section 1.1502-6(a) (or
any predecessor or successor thereof or any analogous or similar provision
under Law) resulting from operations of a Spinco Entity.

 

(ii)           Except as provided in Section 2.01(b), (c) and
(d), Spinco shall be liable for all Taxes of Spinco Entities for all taxable
periods; provided that (A), notwithstanding any provision of any of the
Investment Agreements to the contrary, if Spinco is obligated to pay in cash
(after utilization of any available Tax Attributes), in the period ending 36
months after the Effective Date, any MPC Taxes and GGP is not liable for its
allocable share of such MPC Taxes pursuant to Section 2.01(b) below
as a consequence of the Indemnity Cap, then GGP shall loan to Spinco the amount
of such MPC Taxes not payable by GGP as a consequence of the Indemnity Cap (any
such loan shall have the terms and conditions described in Section 5.17(g) of
the Cornerstone Investment Agreement); and (B) GGP shall be liable for and
shall indemnify Spinco from and against Taxes imposed on a Spinco Entity
pursuant to Treasury Regulation Section 1.1502-6(a) (or any
predecessor or successor thereof or any analogous or similar provision under
Law) resulting from operations of a GGP Entity.

 

(b)           MPC Taxes. 
Notwithstanding any provision of any of the Investment Agreements or any
provision of this Agreement or any of the other Transaction Documents to the
contrary, GGP shall be liable for 93.75% of any MPC Taxes payable in cash by
Spinco or any of its Subsidiaries; provided, however, that,
except as provided herein with respect to interest or penalties, GGP’s
liability pursuant to this Section 2.01(b) shall be capped at
the lesser of (i) $303,750,000 and (ii) the then effective Excess
Surplus Amount (if any) (the applicable amount described in clause (i) or
clause (ii) is referred to herein as the “Indemnity Cap”).  In the event

 

7

 

 

 

that any Suspended Deductions are utilized by Spinco
or any of its Subsidiaries to offset taxable income or gain realized by Spinco
or any of its Subsidiaries other than taxable income attributable to sales of
MPC Assets sold prior to March 31, 2010, GGP’s current and future
liability, if any, pursuant to this Section 2.01(b) shall be
reduced by an amount equal to 93.75% of the incremental Taxes that would have
been payable in cash by Spinco or any of its Subsidiaries had such Suspended
Deductions not been so utilized.  In the
event that any Tax Attributes other than Suspended Deductions are utilized by
Spinco or any of its Subsidiaries to offset and reduce taxable income or gain
generated with respect to sales of MPC Assets sold prior to March 31,
2010, GGP shall be liable for 93.75% of any Income Taxes payable in cash by
Spinco or any of its Subsidiaries that would not have been so payable had such
Tax Attributes not been so utilized.  In
addition, notwithstanding any provision of the Investment Agreements or any
provision of this Agreement or any of the other Transaction Documents to the
contrary, GGP shall also be liable for one hundred percent (100%) of any
interest or penalties attributable to any MPC Taxes which interest or penalties
accrue with respect to periods ending on or before the date that Spinco assumes
control of all Tax Proceedings relating to MPC Taxes pursuant to Section 6.03
(it being understood and agreed by the parties hereto that, for purposes of
this Agreement, all penalties are deemed to accrue as of the date that the
applicable penalty has been asserted or claimed by the IRS) and GGP’s liability
for such interest or penalties shall not be limited by or subject to the
Indemnity Cap.  Spinco shall use
commercially reasonable efforts to utilize the Suspended Deductions as
expeditiously as possible and will not take any action, the principal purpose
of which is, to cause GGP’s aggregate liability pursuant to this Section 2.01(b) to
be materially greater than it would have been had such action not been taken.

 

In
order to place Spinco and GGP in the same economic position as they would have
been had certain post-Effective Date determinations been made as of the
Effective Date, the Indemnity Cap shall be re-calculated and adjusted to
reflect any such determination using the Adjusted CDND as provided in the
Investment Agreements.  Additionally, to the extent any promissory
note was issued by Spinco in favor of GGP pursuant to Section 2.01(a)(ii),
then, in order to place Spinco and GGP in the same economic position as they
would have been had the recalculated Indemnity Cap been used for purposes of
calculating such note, (i) the principal amount of such note will be
reduced based on the new calculation using the Adjusted CDND, and (ii) to
the extent applicable, any interest payments made by Spinco to GGP on such note
prior to such re-calculation shall be refunded in respect of such reductions
and accrued but unpaid interest in respect of such reductions shall be
eliminated.  Consistent with the foregoing,
this Section 2.01(b) shall be retroactively applied using the
recalculated Indemnity Cap and any resulting amounts payable thereunder shall
be promptly paid by GGP.

 

(c)           Restructuring/Distribution Taxes.

 

(i)            GGP shall be liable for all Restructuring/Distribution
Taxes.

 

(d)           Spin-Off Taxes.

 

(i)            GGP shall be liable for any Spin-Off Taxes attributable
to a GGP Disqualifying Action.

 

8

 

(ii)           Spinco shall be liable for any Spin-Off Taxes attributable
to a Spinco Disqualifying Action.

 

(iii)          Any Spin-Off Taxes that are not the result of a
Disqualifying Action shall be allocated between GGP and Spinco according to the
GGP Liability Percentage and the Spinco Liability Percentage, respectively.

 

Section 2.02.        Allocation of Refunds.

 

(a)           Except as provided in Section 2.02(b), GGP shall be
entitled to all Refunds with respect to Taxes for which GGP is or may be liable
pursuant to Article II, and Spinco shall be entitled to all Refunds of
Taxes for which Spinco is or may be liable pursuant to Article II.  A Party receiving a Refund to which the other
Party is entitled pursuant to this Agreement shall pay the amount to which such
other Party is entitled (less any costs or Taxes incurred with respect to the
receipt thereof) within ten (10) days after the receipt of such Refund.

 

(b)           To the extent that the amount of any Refund under this Section 2.02
is later reduced by a Taxing Authority or a Tax Proceeding, such reduction
shall be allocated to the Party to which such Refund was allocated pursuant to
this Section 2.02 and an appropriate adjusting payment shall be made.

 

ARTICLE III

 

PREPARATION, FILING AND
PAYMENT OF TAXES SHOWN DUE ON TAX RETURNS

 

Section 3.01.        Preparation and Filing of
Tax Returns.  GGP shall
prepare and file all Tax Returns of the GGP Group (including Consolidated
Returns of the GGP Group) relating to any taxable period and shall pay all
Taxes shown to be due and payable on such Tax Returns.  Spinco shall prepare and file all Tax Returns
of the Spinco Group (including Consolidated Returns of the Spinco Group)
relating to any taxable period and shall pay all Taxes shown to be due and
payable on such Tax Returns.

 

Section 3.02.        Amended Tax Returns.

 

(a)           Returns Filed by GGP.  GGP shall, in its sole discretion, be
permitted to amend any Tax Return that a GGP Entity is responsible for filing
pursuant to Section 3.01; provided, however, that,
unless otherwise required by Law or a Final Determination, GGP shall not amend
any such Tax Return to the extent that any such amendment would reasonably be
expected to cause a Spinco Entity to experience any Tax Detriment (including
through an increase in Taxes or a loss or reduction of a Tax Attribute
regardless of whether or when such Tax Attribute otherwise would have been
used), without the prior written consent of Spinco, which consent shall not be
unreasonably withheld or delayed.

 

(b)           Returns Filed by Spinco.  Spinco shall, in its sole discretion, be
permitted to amend any Tax Return that a Spinco Entity is responsible for
filing pursuant to Section 3.01; provided, however,
that, unless otherwise required by Law or a Final Determination, Spinco shall
not amend any such Tax Return to the extent that any such amendment would
reasonably 

 

9

 

be expected to cause a GGP Entity to experience any
Tax Detriment (including through an increase in Taxes or a loss or reduction of
a Tax Attribute regardless of whether or when such Tax Attribute otherwise
would have been used) without the prior written consent of GGP, which consent
shall not be unreasonably withheld or delayed.

 

Section 3.03.        Tax Return Procedures.

 

(a)           Procedures Relating to the Manner of Preparing Tax
Returns.

 

(i)            All Tax Returns prepared by GGP that include a member of
the Spinco Group or by Spinco that include a member of the GGP Group shall be
prepared in accordance with past practices, accounting methods, elections and
conventions (“Past Practice”), unless otherwise required by Law or
agreed to in writing by Spinco or GGP, as applicable.

 

(ii)           In the event that Past Practice is not applicable to a
particular item or matter arising in a Tax Return described in Section 3.03(a)(i),
GGP or Spinco, as applicable, shall determine the reporting of such item or matter
provided that such reporting is more likely than not to be sustained and
provided further that the other Party shall agree as to the reporting of any
such item or matter which is not more likely than not to be sustained.  The Parties shall attempt in good faith to
mutually resolve any disagreements, including by appointing an Accounting Firm
pursuant to Section 9.01, regarding such items or matters prior to the Due
Date for filing the applicable Tax Return; provided, that the failure to
resolve all disagreements prior to such date shall not relieve the Indemnified
Party of its obligation to file (or cause to be filed) such Tax Return.

 

(b)           Timing of Tax Return Filing and Payments.  All Taxes or Tax Returns required to be paid
or filed pursuant to this Article III by either GGP or Spinco to or with
an applicable Taxing Authority shall be paid or filed on or before the Due Date
for the payment or filing of such Taxes or Tax Returns.

 

(c)           Review of Tax Returns.  With respect to any Tax Return including
Taxes subject to indemnification pursuant to Article IV, the Indemnified
Party preparing such Tax Return shall, at least 10 days prior to the Due Date
applicable to such Tax Return, prepare and deliver to the Indemnifying Party a
schedule showing in reasonable detail the Indemnified Party’s good faith
calculation of any indemnification payments to be made by the Indemnifying
Party.  The Indemnifying Party shall have
the right to review and approve (such approval shall not be unreasonably
withheld) such schedule.  The Parties
shall attempt in good faith to mutually resolve any disagreements, including by
appointing an Accounting Firm pursuant to Section 9.01, regarding such
schedule prior to the Due Date for filing the applicable Tax Return; provided,
however, that the failure to resolve all disagreements prior to such
date shall not relieve the Indemnified Party of its obligation to file (or
cause to be filed) such Tax Return.

 

Section 3.04.        Expenses.  Except as otherwise provided in this
Agreement, each Party shall bear its own expenses incurred in connection with
this Article III.

 

10

 

ARTICLE IV

 

INDEMNIFICATION

 

Section 4.01.        Indemnification by GGP.  GGP shall pay, and shall indemnify and hold
the Spinco Indemnified Parties harmless from and against, without duplication, (i) all
GGP Taxes, (ii) all Taxes incurred by Spinco or any Spinco Entity by
reason of the breach by GGP of any of its representations, warranties or
covenants hereunder, and (iii) any costs and expenses related to the
foregoing (including reasonable attorneys’ fees and expenses).

 

Section 4.02.        Indemnification by Spinco.  Spinco shall pay, and shall indemnify and
hold the GGP Indemnified Parties harmless from and against, without
duplication, (i) all Spinco Taxes, (ii) all Taxes incurred by GGP or
any GGP Entity by reason of the breach by Spinco of any of its representations,
warranties or covenants hereunder, and (iii) any costs and expenses
related to the foregoing (including reasonable attorneys’ fees and expenses).

 

Section 4.03.        Characterization of and
Adjustments to Payments.  For
all Tax purposes, GGP and Spinco agree to treat (i) any payment required
by this Article IV (other than payments with respect to interest accruing
after the Effective Date) as either a contribution by GGP to Spinco or a
distribution by Spinco to GGP, as the case may be, occurring immediately prior
to the Effective Date or as a payment of an assumed or retained liability and (ii) any
payment of non-federal Taxes by or to a Taxing Authority or any payment of
interest as taxable or deductible, as the case may be, to the Party entitled
under this Agreement to retain such payment or required under this Agreement to
make such payment, in either case except as otherwise required by applicable
Law.

 

Section 4.04.        Timing of Indemnification
Payments. 
Indemnification payments in respect of any Liabilities for which an
Indemnified Party is entitled to indemnification pursuant to this
Article IV shall be paid by the Indemnifying Party to the Indemnified
Party (i) with respect to Liabilities requiring a payment to a Taxing
Authority, not later than one business day prior to the Due Date of such
Liability, and (ii) with respect to any other Liabilities, as such
Liabilities are incurred upon demand by the Indemnified Party, including
reasonably satisfactory documentation setting forth the basis for the amount of
such indemnification payment.

 

ARTICLE V

 

CARRYBACKS, AMENDMENTS AND
TAX ITEMS

 

Section 5.01.        Carrybacks.

 

(a)           The carryback of any loss, credit or other Tax Attribute
from any Post-Closing Period shall be in accordance with the provisions of the
Code and Treasury Regulations (and any applicable state, local or foreign
Laws).

 

(b)           To the extent permitted by applicable Law, GGP and Spinco
shall waive the right to carryback any Tax Attribute of a member of their
respective Groups arising in a Post-Closing Period to a Pre-Closing or Straddle
Period; provided, however, 
that (i) GGP and Spinco may carryback any Tax Attribute if such carryback
claim is reported on a Separate Return or is 

 

11

 

utilized to offset and reduce the liability for MPC
Taxes, (ii) GGP may carryback any Tax Attribute if such carryback claim is
reported on a Consolidated Return of the GGP Group, and (iii) Spinco may
carryback any Tax Attribute if such carryback claim is reported on a
Consolidated Return of the Spinco Group.

 

(c)           In the event that, notwithstanding Section 5.01(b),
GGP or Spinco is required to carryback Tax Attributes in order to avoid losing
the benefit of such Tax Attributes, the Party responsible for filing the Tax
Return on which such carryback claim is reported will cooperate with the other
Party in seeking from the appropriate Taxing Authority any Refund that would be
allocated to the other Party pursuant to Section 2.02 and that reasonably
would result from such carryback (including by filing an amended Tax Return) at
the other Party’s cost and expense; provided, however, that no
Party shall be required or permitted to seek such Refund to the extent that
such Refund would reasonably be expected to result in a Tax Detriment to a GGP
Entity or a Spinco Entity, as the case may be, (including through an increase
in Taxes or a loss or reduction of a Tax Attribute regardless of whether or
when such Tax Attribute otherwise would have been used), in each case, without
the prior written consent of GGP or Spinco, as applicable, which consent shall
not be unreasonably withheld or delayed.

 

Section 5.02.        Tax Items.

 

(a)           Tax Items arising in a Pre-Closing Period shall be
allocated to the GGP Group and the Spinco Group in accordance with the Code and
Treasury Regulations (and any applicable state, local and foreign Laws) and in
accordance with the allocation of Tax Liabilities in Article II.  GGP and Spinco shall jointly determine the
allocation of such Tax Items arising in Pre-Closing Periods as soon as
reasonably practicable following the Effective Date, and hereby agree to
compute all Taxes for all Straddle Periods and Post-Closing Periods
consistently with that determination unless otherwise required by Law or a
Final Determination.

 

(b)           To the extent that the amount of any Tax Item is later
reduced or increased by a Taxing Authority or Tax Proceeding, such reduction or
increase shall be allocated to or borne by the Party to which such Tax Item was
allocated pursuant to Section 5.02(a).

 

Section 5.03.        Treatment of Deductions
Associated with Equity-Related Compensation.

 

(a)           To the extent permitted by Law, solely GGP, New GGPI, or a
GGP Entity, as the case may be, shall be entitled to claim any Tax deduction
associated with the following items:

 

(i)            The exercise of any Spinco stock options or stock
appreciation rights by any GGP Employee (as defined below) and the vesting of
Spinco restricted stock or the vesting or settlement of Spinco restricted stock
units held by any GGP Employee and the payment of any dividends with respect to
such Spinco restricted stock.

 

(ii)           The exercise of any GGP or New GGPI stock options or stock
appreciation rights by any GGP Employee and the vesting of GGP or New GGPI
restricted stock or the vesting or settlement of GGP or New GGPI restricted
stock units held by any GGP Employee (and payment of any dividends on such GGP
restricted stock).

 

12

 

(b)           To the extent permitted by Law, solely Spinco or a Spinco
Entity, as the case may be, shall be entitled to claim any Tax deduction
associated with the following items:

 

(i)            The exercise of any GGP or New GGPI stock options or
stock appreciation rights by any Spinco Employee (as defined below) and the
vesting of GGP or New GGPI restricted stock or the vesting or settlement of GGP
or New GGPI restricted stock units held by any Spinco Employee and the payment
of any dividends on such restricted stock at any time on or after the first
date any Spinco Entity employed such Spinco Employee.

 

(ii)           The exercise of any Spinco stock options or stock
appreciation rights by any Spinco Employee and the vesting of Spinco restricted
stock or the vesting or settlement of Spinco restricted stock units held by any
Spinco Employee and the payment of any dividends with respect to such Spinco
restricted stock.

 

(c)           The following terms shall have the following meanings:

 

(i)            “Spinco Employee”
means any person employed or formerly employed by any Spinco Entity at the time
of the exercise, vesting, settlement, disqualifying disposition or payment, as
appropriate, unless, at such time, such person is employed by a member of the
GGP Group or was more recently employed by a GGP Entity than by a Spinco
Entity;

 

(ii)           “GGP Employee”
means any person employed or formerly employed by any GGP Entity at the time of
the exercise, vesting, settlement, disqualifying disposition or payment, as
appropriate, unless, at such time, such person is a Spinco Employee.

 

ARTICLE VI

 

TAX PROCEEDINGS

 

Section 6.01.        Notification of Tax
Proceedings.  Within ten (10) days
after an Indemnified Party becomes aware of the commencement of a Tax
Proceeding that may give rise to Taxes for which an Indemnifying Party is
responsible pursuant to Article II, such Indemnified Party shall notify
the Indemnifying Party of such Tax Proceeding, and thereafter shall promptly
forward or make available to the Indemnifying Party copies of notices and
communications relating to such Tax Proceeding. 
The failure of the Indemnified Party to notify the Indemnifying Party of
the commencement of any such Tax Proceeding within such ten (10) day
period or promptly forward any further notices or communications shall not
relieve the Indemnifying Party of any obligation which it may have to the
Indemnified Party under this Agreement except to the extent that the
Indemnifying Party is actually prejudiced by such failure.

 

Section 6.02.        Statute of Limitations.  Any extension of the statute of limitations
for any Taxes or a Tax Return for any Pre-Closing Period or a Straddle Period
shall be made by the Party required to file such Tax Return or pay such Taxes
to a Taxing Authority; provided that to the extent such Taxes or Tax
Return may result in an indemnity payment pursuant to this Agreement by the
Party other than the filing Party, the Indemnifying Party may, in its
reasonable discretion, require that the filing Party extend the applicable statute
of limitations for such period as determined by the Indemnifying Party.

 

13

 

Section 6.03.        Tax Proceeding Procedures
Generally.  Except as
provided herein or in Section 6.04, each Party shall be entitled to
contest, compromise and settle any Adjustment proposed, asserted or assessed
pursuant to any Tax Proceeding involving a Tax reported (or that, it is
asserted, should have been reported) on a Tax Return that such Party is
responsible for preparing and filing (or causing to be prepared and filed)
pursuant to Article III; provided, however, that (A) GGP
shall retain exclusive control over all Tax Proceedings relating to MPC Taxes
(whether ongoing as of the date of this Agreement or not) for so long as GGP
may be liable under Section 2.01(b) for more than 50% of the total
MPC Taxes at issue in the relevant Tax Proceeding, (B) GGP may not enter
into any closing, settlement or other similar agreement with any Taxing
Authority with respect to Tax Proceedings described in the preceding clause (A) without
the prior written consent of Spinco, which consent shall not be unreasonably
withheld, (C) GGP shall keep Spinco informed in a timely manner of all
actions proposed to be taken by GGP and shall permit Spinco to observe (at its
own cost) all proceedings with respect to such Tax Proceedings, (D) GGP
shall provide Spinco with written notice reasonably in advance of, and Spinco
shall have the right to attend and participate in (at its own cost), any
scheduled meetings with any Taxing Authority with respect to such Tax
Proceedings and (E) notwithstanding the foregoing, Spinco shall have the
right (but not the obligation) to immediately assume control of any and all Tax
Proceedings relating to MPC Taxes, at its own cost and expense, if, at any time
prior to the conclusion of such Tax Proceeding, the potential liability of GGP
for MPC Taxes under the provisions set forth in Section 2.01(b) is
less than fifty percent (50%) of the total liability for MPC Taxes at issue in
the relevant Tax Proceeding.

 

Section 6.04.        Tax Proceedings in Respect
of Indemnified Taxes.

 

(a)           In General. 
Notwithstanding Section 6.03, if the Party entitled to
control a Tax Proceeding is an Indemnified Party, any defense of the Tax
Proceeding shall be conducted by such Party diligently and in good faith; provided,
however, that the Indemnified Party shall keep the Indemnifying Party
informed in a timely manner of all actions proposed to be taken by the
Indemnified Party and shall permit the Indemnifying Party to observe (at its
own cost) all proceedings with respect to such Tax Proceeding; and provided
further, that, if the applicable Tax Proceeding (or any Adjustments
proposed or asserted in connection therewith) reasonably would be expected to
give rise to an indemnity obligation in excess of $1 million, in the aggregate,
then, unless waived by the Parties in writing, the Indemnified Party shall (a) prepare
all correspondence or filings to be submitted to any Taxing Authority or
judicial authority in a manner consistent with the Tax Return which is the
subject of such Adjustment as filed and timely provide the Indemnifying Party
with copies of any such correspondence or filings for the Indemnifying Party’s
prior review and consent, which consent shall not be unreasonably withheld, (b) provide
the Indemnifying Party with written notice reasonably in advance of, and the
Indemnifying Party shall have the right to attend and participate in (at its
own cost), any formally scheduled meetings with any Taxing Authority or
hearings or proceedings before any judicial authority with respect to such
Adjustment, (c) not enter into any closing, settlement or other similar
agreement with any Taxing Authority with respect to the relevant Tax Proceeding
(or any proposed Adjustment) without the prior written consent of the
Indemnifying Party, which consent shall not be unreasonably withheld and (d) not
contest any proposed or asserted Adjustment before a judicial authority unless (A) such
Adjustment (separately or together with other proposed or asserted Adjustments)
reasonably would be expected to give rise to Taxes payable by the Indemnified
Party in an amount of $1 million or more, in the aggregate, or (B) the 

 

14

 

Indemnified Party has received an opinion of a
nationally recognized law firm that it is more likely than not to prevail on
the merits.

 

(b)           Tax Proceedings in Respect of
Restructuring/Distribution Taxes and Disqualifying Actions.  Notwithstanding Section 6.03, GGP and
Spinco shall be entitled to jointly contest, compromise and settle any
Adjustment proposed, asserted or assessed pursuant to any Tax Proceeding
relating to (i) Restructuring/Distribution Taxes and (ii) any Taxes
attributable to a Spinco Disqualifying Action. 
Notwithstanding Section 6.03, GGP shall be entitled to contest,
compromise and settle any Adjustment proposed, asserted or assessed pursuant to
any Tax Proceeding relating to any Taxes attributable to a GGP Disqualifying
Action and shall defend such Adjustment diligently and in good faith; provided,
that, unless waived by the Parties in writing, GGP shall (i) keep
Spinco informed in a timely manner of all actions taken or proposed to be taken
by GGP, (ii) provide copies of all correspondence or filings to be
submitted to any Taxing Authority or judicial authority to Spinco for its prior
review and consent, which consent shall not be unreasonably withheld and (iii) provide
Spinco with written notice reasonably in advance of, and Spinco shall have the
right to attend (at its own cost), any formally scheduled meetings with any
Taxing Authority or hearings or proceedings before any judicial authority.

 

ARTICLE VII

 

TAX-FREE STATUS OF THE
DISTRIBUTION

 

Section 7.01.        Representations and
Warranties.

 

(a)           Tax Reporting. 
Each of GGP and Spinco covenants and agrees that it will not take, and
will cause its respective Affiliates to refrain from taking, any position on
any Tax Return that is inconsistent with the Tax-Free Status of the
Transactions.

 

(b)           Restrictions Relating to the Distribution.  Neither GGP nor Spinco shall, nor shall GGP
or Spinco permit any GGP Entity or any Spinco Entity, respectively, to, take or
fail to take, as applicable, any action that constitutes a Disqualifying Action
described in the definitions of GGP Disqualifying Action and Spinco
Disqualifying Action, respectively.

 

(c)           Ordinary Course of Business.  GGP represents that neither it nor any of its
Subsidiaries altered the manner in which they satisfied their respective Tax
payment obligations as a result of the pendency of the Restructuring and
Distribution.

 

Section 7.02.        Procedures Regarding
Opinions and Rulings.

 

(a)           If Spinco notifies GGP that it desires to take one of the
actions potentially described in Section 7.01 (a “Notified Action”),
GGP shall cooperate with Spinco and use its reasonable best efforts to seek to
obtain, as expeditiously as possible, a Supplemental Ruling or an Unqualified
Tax Opinion for the purpose of permitting Spinco to take the Notified Action
unless GGP shall have waived the requirement to obtain such ruling or
opinion.  If such a ruling is to be
sought, GGP shall apply for such ruling and GGP and Spinco shall jointly
control the process of obtaining such ruling. 
In no event shall GGP be required to file any such request unless Spinco
represents that (i) it has read such request, and (ii) all
information and

 

15

 

 

representations, if any, relating to any member of
the Spinco Group, contained in such request documents are (subject to any
qualifications therein) true, correct and complete.  Spinco shall reimburse GGP for all reasonable
costs and expenses incurred by the GGP Group in obtaining a Supplemental Ruling
or Unqualified Tax Opinion requested by Spinco within ten (10) days after
receiving an invoice from GGP therefor.

 

(b)           GGP shall have the right to
obtain a Supplemental Ruling or an Unqualified Tax Opinion at any time in its
sole and absolute discretion. If GGP determines to obtain such ruling or
opinion, Spinco shall (and shall cause each Spinco Entity to) cooperate with
GGP and take any and all actions reasonably requested by GGP in connection with
obtaining such ruling or opinion (including by making any representation or
reasonable covenant or providing any materials requested by the IRS or the law
firm issuing such opinion); provided that Spinco shall not be required to make
(or cause a Spinco Entity to make) any representation or covenant that is
inconsistent with historical facts or as to future matters or events over which
it has no control. In connection with obtaining such ruling, GGP shall apply
for such ruling and shall have sole and exclusive control over the process of
obtaining such ruling.  GGP shall
reimburse Spinco for all reasonable costs and expenses incurred by the Spinco
Group in obtaining a Supplemental Ruling or Unqualified Tax Opinion requested
by GGP.

 

(c)           Except as provided in
Sections 7.02(a) and (b), no Spinco Entity shall seek any guidance from
the IRS or any other Tax Authority (whether written, verbal or otherwise) at
any time concerning the Restructuring or Distribution (including the impact of
any transaction on the Restructuring or Distribution).

 

ARTICLE VIII

 

COOPERATION

 

Section 8.01.        General Cooperation.

 

(a)           Subject to Section 8.03,
the Parties shall each cooperate fully (and each shall cause its respective
Subsidiaries to cooperate fully) with all reasonable requests in writing (“Information
Request”) from another Party hereto, or from an agent, representative or
advisor to such Party, in connection with the preparation and filing of Tax
Returns (including the preparation of Tax Packages), claims for Refunds, Tax
Proceedings, and calculations of amounts required to be paid pursuant to this
Agreement, in each case, related or attributable to or arising in connection
with Taxes of any of the Parties or their respective Subsidiaries covered by
this Agreement and the establishment of any reserve required in connection with
any financial reporting (a “Tax Matter”).  Such cooperation shall include the provision
of any information reasonably necessary or helpful in connection with a Tax
Matter (“Information”) and shall include, without limitation, at each
Party’s own cost:

 

(i)            the provision of any Tax
Returns of the Parties and their respective Subsidiaries, books, records
(including information regarding ownership and Tax basis of property),
documentation and other information relating to such Tax Returns, including
accompanying schedules, related work papers, and documents relating to rulings
or other determinations by Taxing Authorities;

 

16

 

(ii)           the execution of any
document (including any power of attorney) in connection with any Tax
Proceedings of any of the Parties or their respective Subsidiaries, or the
filing of a Tax Return or a Refund claim of the Parties or any of their
respective Subsidiaries;

 

(iii)          the use of the Party’s
reasonable best efforts to obtain any documentation in connection with a Tax
Matter; and

 

(iv)          the use of the Party’s
reasonable best efforts to obtain any Tax Returns (including accompanying
schedules, related work papers, and documents), documents, books, records or
other information in connection with the filing of any Tax Returns of any of
the Parties or their Subsidiaries.

 

Each
Party shall make its employees, advisors, and facilities available, without
charge, on a reasonable and mutually convenient basis in connection with the
foregoing matters.

 

(b)           Subject to Section 8.03,
with respect to any written request by a Party in accordance with the
provisions of Section 8.01(a) for access to Information or
Representatives of the other Party and members of such other Party’s Tax Group
in connection with any Tax Return, Tax Proceeding or otherwise in connection
with this Agreement:

 

(i)            The responding Party shall (A) make
available to the requesting Party the requested Information within the deadline
reasonably agreed upon by the Parties (the Response Deadline”), and (B) following
the Response Deadline, promptly (and no later than five (5) days following
its discovery of such Information) make available to the requesting Party any
other Information it discovers that is within its possession or control which
would reasonably be expected to be relevant to the Information Request.

 

(ii)           In the event that the
responding Party breaches its obligations under the preceding sentence by (A) failing
to respond to the Information Request by the Response Deadline without
providing a legitimate reason for such failure that is reasonably satisfactory
to the requesting Party (provided, that the provision of Information by
the responding Party after the Response Deadline pursuant to paragraph (b)(i)(B) shall
not be deemed to be a breach described in this clause (A)) or (B) withholding
Information within its possession or control that is material to the
Information Request, then the provisions of paragraph (b)(iii) shall apply.

 

(iii)          In the event of a breach
described in paragraph (b)(ii)(A) that is not cured within ten (10) days
following the Response Deadline or an alleged breach described in Paragraph
(b)(ii)(B), the requesting Party shall have the right to engage an independent
consulting, accounting or law firm selected in its sole discretion (the “Independent
Firm”) to access any and all books, records and other documents of the
responding Party and any applicable members of such responding Party’s group or
an agent, representative or advisor of the responding Party (or such members of
their relevant group) (“Representative”) for purposes of identifying and
extracting the Information requested by the requesting Party and the responding
Party shall be required to provide to the Independent Firm access to all such
books, records and other documents and Representatives; provided, that (x) the
Independent Firm shall have executed, for the benefit of both parties, a
non-disclosure and confidentiality agreement that 

 

17

 

is in form and substance customary for similar
engagements, (y) such access shall be provided by the responding Party
only upon at least two (2) days prior written notice and during reasonable
business hours, and (z) in the event of a breach described in paragraph
(b)(ii)(A) that is not cured within ten (10) days following the
Response Deadline or a breach described in paragraph (b)(ii)(B), as determined
by the Independent Firm following its extraction of Information pursuant to
this sentence, the costs and expenses of the Independent Firm shall be borne by
(i) the responding Party in the event of a breach by the responding Party
of paragraph (b)(i), or (ii) the requesting Party in the event there has
been no breach by the responding Party of paragraph (b)(i).

 

Section 8.02.        Retention of Records.  GGP and Spinco shall retain or cause to be
retained all Tax Returns, schedules and workpapers, and all material records or
other documents relating thereto in their possession, until sixty (60) days
after the expiration of the applicable statute of limitations (including any
waivers or extensions thereof) of the taxable periods to which such Tax Returns
and other documents relate or until the expiration of any additional period
that any Party reasonably requests, in writing, with respect to specific
material records or documents.  A Party
intending to destroy any material records or documents shall provide the other
Party with reasonable advance notice and the opportunity to copy or take
possession of such records and documents. 
The Parties hereto will notify each other in writing of any waivers or
extensions of the applicable statute of limitations that may affect the period
for which the foregoing records or other documents must be retained.

 

Section 8.03.        Confidentiality.  Notwithstanding any other provision of this
Agreement or any other Transaction Document, any information obtained by either
Party under this Agreement shall be kept confidential, except as may be
necessary in connection with the filing of Tax Returns or claims for Refunds or
in connection with any Tax Proceeding or any dispute, proceeding, suit or
action concerning any issues or matters addressed in this Agreement, or unless
a Party is compelled to disclose information by judicial or administrative
process, or, in the opinion of its counsel, by other requirements of Law.  Spinco shall not be required to make
available to GGP or its representatives any books, records, documents or other
information that Spinco reasonably determines to be subject to attorney-client
privilege; provided, however, that Spinco shall be required to
make available to GGP any information reasonably requested by GGP pursuant to Section 8.01
in connection with the preparation of any Tax Return required to be prepared by
GGP pursuant to this Agreement or any Tax Proceeding in connection with such
Tax Returns.  GGP shall not be required
to make available to Spinco or its representatives any books, records,
documents or other information that GGP reasonably determines to be subject to
attorney-client privilege; provided, however, that GGP shall be
required to make available to Spinco any information reasonably requested by
Spinco pursuant to Section 8.01 in connection with the preparation of any
Tax Return required to be prepared by Spinco pursuant to this Agreement or any
Tax Proceeding in connection with such Tax Returns.

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.01.        Dispute Resolution.  Other than as set forth in Section 8.01(b)(iii),
with respect to any dispute between the Parties as to any matter covered by
this Agreement, the 

 

18

 

Parties shall appoint a nationally recognized
independent public accounting firm (the “Accounting Firm”) to resolve
such dispute.  In this regard, the
Accounting Firm shall make determinations with respect to the disputed items
based solely on representations made by GGP and Spinco and their respective
representatives, and not by independent review, and shall function only as an
expert and not as an arbitrator and shall be required to make a determination
in favor of one Party only.  The Parties
shall require the Accounting Firm to resolve all disputes no later than thirty
(30) days after the submission of such dispute to the Accounting Firm, but in
no event later than the Due Date for the payment of Taxes or the filing of the
applicable Tax Return, if applicable, and agree that all decisions by the
Accounting Firm with respect thereto shall be final and conclusive and binding
on the Parties.  The Accounting Firm
shall resolve all disputes in a manner consistent with this Agreement and, to
the extent not inconsistent with this Agreement, in a manner consistent with
the Past Practices of GGP and its Subsidiaries, except as otherwise required by
applicable Law.  The Parties shall
require the Accounting Firm to render all determinations in writing and to set
forth, in reasonable detail, the basis for such determination.  The fees and expenses of the Accounting Firm
shall be paid by the non-prevailing Party.

 

Section 9.02.        Tax Sharing Agreements.  All Tax sharing, indemnification and similar
agreements, written or unwritten, as between a GGP Entity, on the one hand, and
a Spinco Entity, on the other (other than this Agreement or any other
Transaction Document), shall be or shall have been terminated on or before the
Effective Date and, after the Effective Date, no GGP Entity, on the one hand,
or Spinco Entity, on the other, shall have any further rights or obligations
with respect to each other under any such Tax sharing, indemnification or
similar agreement.

 

Section 9.03.        Interest on Late Payments.  With respect to any payment between the
Parties pursuant to this Agreement not made by the due date set forth in this
Agreement for such payment, the outstanding amount will accrue interest at a
rate per annum equal to the rate in effect for underpayments under Section 6621
of the Code from such due date to and including the earlier of the ninetieth
(90th) day or the payment date and thereafter will accrue interest at a rate
per annum equal to 9%.

 

Section 9.04.        Survival of Covenants.  Except as otherwise contemplated by this
Agreement, all covenants and agreements of the Parties contained in this
Agreement shall survive the Effective Date and remain in full force and effect
in accordance with their applicable terms, provided, however, that the
representations and warranties and all indemnification for Taxes shall survive
until sixty (60) days following the expiration of the applicable statute of
limitations (taking into account all extensions thereof), if any, of the Tax
that gave rise to the indemnification, provided, further, that, in the event
that notice for indemnification has been given within the applicable survival
period, such indemnification shall survive until such time as such claim is
finally resolved.

 

Section 9.05.        Termination.  This Agreement may not be terminated except
by an agreement in writing signed by each of the Parties to this Agreement.

 

Section 9.06.        Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced under any Law or
as a matter of public policy, all 

 

19

 

other conditions and provisions of this Agreement
shall remain in full force and effect. 
Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, the Parties to this Agreement shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the Parties as closely as possible in a mutually acceptable manner.

 

Section 9.07.        Entire Agreement.  Except as otherwise expressly provided in
this Agreement, this Agreement constitutes the entire agreement of the Parties
hereto with respect to the subject matter of this Agreement and supersedes all
prior agreements and undertakings, both written and oral, between or on behalf
of the Parties hereto with respect to the subject matter of this Agreement.

 

Section 9.08.        Assignment; No Third-Party
Beneficiaries.  This
Agreement shall not be assigned by any Party without the prior written consent
of the other Party hereto, except that GGP may assign (i) any or all of
its rights and obligations under this Agreement to any of its Affiliates and (ii) any
or all of its rights and obligations under this Agreement in connection with a
sale or disposition of any assets or entities or lines of business of GGP; provided,
however, that, in each case, no such assignment shall release GGP from
any liability or obligation under this Agreement nor change any of the steps in
the Spinoff Plan.  Except as provided in Article IV
with respect to indemnified Parties, this Agreement is for the sole benefit of
the Parties to this Agreement and their respective Subsidiaries and their
permitted successors and assigns and nothing in this Agreement, express or
implied, is intended to or shall confer upon any other Person any legal or
equitable right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.

 

Section 9.09.        Specific Performance.  In the event of any actual or threatened
default in, or breach of, any of the terms, conditions and provisions of this
Agreement, the Party who is or is to be thereby aggrieved shall have the right
to specific performance and injunctive or other equitable relief of its rights
under this Agreement, in addition to any and all other rights and remedies at
law or in equity, and all such rights and remedies shall be cumulative.  The Parties agree that the remedies at law
for any breach or threatened breach, including monetary damages, may be
inadequate compensation for any loss and that any defense in any action for
specific performance that a remedy at law would be adequate is waived.  Any requirements for the securing or posting
of any bond with such remedy are waived by the Parties to this Agreement.

 

Section 9.10.        Amendment.  No provision of this Agreement may be amended
or modified except by a written instrument signed by the Parties to this
Agreement.  No waiver by any Party of any
provision of this Agreement shall be effective unless explicitly set forth in
writing and executed by the Party so waiving. 
The waiver by any Party of a breach of any provision of this Agreement
shall not operate or be construed as a waiver of any other subsequent breach.

 

Section 9.11.        Rules of Construction.  Interpretation of this Agreement shall be
governed by the following rules of construction:  (i) words in the singular shall be held
to include the plural and vice versa and words of one gender shall be held to
include the other gender as the context requires; (ii) references to the
terms Article, Section, paragraph, clause, Exhibit and 

 

20

 

Schedule are references to the Articles, Sections,
paragraphs, clauses, exhibits and schedules of this Agreement unless otherwise
specified; (iii) the terms “hereof,” “herein,” “hereby,” “hereto,” and
derivative or similar words refer to this entire Agreement, including the
Schedules and Exhibits hereto; (iv) references to “$” shall mean U.S.
dollars; (v) the word “including” and words of similar import when used in
this Agreement shall mean “including without limitation,” unless otherwise
specified; (vi) the word “or” shall not be exclusive; (vii) references
to “written” or “in writing” include in electronic form; (viii) provisions
shall apply, when appropriate, to successive events and transactions; (ix) the
table of contents and headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement; (x) GGP and Spinco have each participated in the
negotiation and drafting of this Agreement and if an ambiguity or question of
interpretation should arise, this Agreement shall be construed as if drafted
jointly by the parties hereto and no presumption or burden of proof shall arise
favoring or burdening either Party by virtue of the authorship of any of the
provisions in this Agreement or any interim drafts of this Agreement; and (xi) a
reference to any Person includes such Person’s successors and permitted
assigns.

 

Section 9.12.        Counterparts.  This Agreement may be executed in one or more
counterparts each of which when executed shall be deemed to be an original but
all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this Agreement by facsimile or portable document format
(PDF) shall be as effective as delivery of a manually executed counterpart of
any such Agreement.

 

Section 9.13.        Coordination with the
Employee Matters Agreement.  To the extent any covenants or agreements
between the Parties with respect to employee withholding Taxes are set forth in
the Employee Matters Agreement, such Taxes shall be governed exclusively by the
Employee Matters Agreement and not by this Agreement.

 

Section 9.14.        Coordination with the
Separation Agreement.  To the
extent any representations, warranties, covenants or agreements between the
parties with respect to Taxes or other Tax matters are set forth in this
Agreement, such Taxes and other Tax matters shall be governed exclusively by
this Agreement and not by the Separation Agreement.

 

Section 9.15.        Effective Date.  This Agreement shall become effective only upon
the occurrence of the Distribution.

 

[The remainder of this page is intentionally
left blank.]

 

21

 

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

 

	
   

  	
  GGP, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  [name]

  
	
   

  	
   

  	
  [title]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The
  Howard Hughes Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  [name]

  
	
   

  	
   

  	
  [title]

  

 

Signature page – Tax
Matters Agreement

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