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Exhibit 10.9  

 
 

2006 PERFORMANCE BASED RESTRICTED STOCK AGREEMENT    
    

        This 2006 Restricted Stock Agreement ("Agreement") has been entered into as of the 7th day of August, 2006, among Simon Property Group, L.P., a Delaware limited
partnership (the "Partnership"), Simon Property Group, Inc., a Delaware corporation (the "Company"), and «Fname»
«LName», a key personnel member of the Partnership or one of the Partnership's Affiliates ("Participant"), pursuant to the Simon Property Group, L.P.
1998 Stock Incentive Plan (the "Plan"). 

        WHEREAS,
the Compensation Committee (the "Committee") of the Board of the Company, appointed to administer the Plan, has allocated to Participant a dollar allocation which may, under the
terms of this Agreement and the Plan, be converted into an award of restricted stock; and 

        WHEREAS,
the parties desire to set forth the terms and conditions upon which the Participant's dollar allocation may be converted into an award of restricted stock to the Participant; 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the parties agree as follows: 

        1.     Capitalized
Terms.    All capitalized terms used in this Agreement and not otherwise defined shall have the meanings given them in
the Plan. 

        2.     Allocation
of Value.    The Partnership, with the approval of the Committee, has allocated to Participant  «Award_Value_» ("Value"), which Value, adjusted as described in
paragraph 6 below, may be converted into an award of
common stock of the Company, par value 0.0001 per share ("Common Stock"), subject to the satisfaction of Company performance objectives, vesting and other conditions set forth in this Agreement and
the Plan, as the same may be amended or modified from time to time by the Committee. 

        3.     Company
Performance Objectives.    For the calendar year commencing January 1, 2006 (the "Program Year"), a percentage of
the Value shall be considered earned (subject to adjustment as described in paragraph 6) and converted into an award of Common Stock if the following growth targets and goals of the Company and
the percentages allocated to each, are met for such Program Year (please refer to the attached Plan Description for a more detailed explanation of these terms): 

	 
	 	Company per
	 	Company per
	 	 
	 	 

	Program Year

Ending Dec. 31,
	 	Share FFO Target
	 	Share FFO Stretch
	 	RMS Goal

(annual)
	 	S&P 500 Goal

(annual)

	2006	 	$	5.30	 	$	5.36	 	Meet/exceed

Index return	 	Meet/exceed

Index return
	

Percentage of Value Earned and Awarded	
 	
 	

35%	
 	
 	

25%	
 	

25%	
 	

15%

The
above targets and goals are estimates of acceptable performance over the Program Year. The targets and goals are subject to revision hereafter at the discretion of the Committee. 

        4.     Value
Allocated to Program Year.    The total Value shall be allocated to the 2006 Program Year. 

        5.     Determination
Date.    The determination of whether the Company has met the annual targets and goals for the Program Year shall be
made as soon as practicable in the calendar year following the Program Year, but in no event later than March 31 of such following year. The date such determination takes place shall be the
"Determination Date". The Participant shall be considered the beneficial owner of the entire number of shares of Company Stock determined by the Committee to be earned and 

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awarded
with respect to such Program Year as of the Determination Date, calculated as provided in paragraph 6 below, and shall have the right to receive distributions on such shares and to vote
such shares on and after the Determination Date. 

        6.     Participant
Performance Objectives.    The performance of the Participant shall be reviewed by a performance review board ("Board")
composed of persons appointed from time-to-time by the Company's Chief Executive Officer. The Board will meet on or before the Determination Date to discuss the Participant's
performance for the Program Year. A Participant's individual performance will be measured by one or more of the following: 

	a.
	The
Participant's written performance review;

	b.
	The
Participant's skills and ability assessment; and

	c.
	The
results of a Participant's individual incentive compensation plan ("ICP"), if applicable. 

        Based
upon these performance measures and the data provided, the Board or Committee will review and approve the recommended rating for each Participant of "0" to "3" which shall mean the
following: 

	a.
	"3"—outstanding
performance

	b.
	"2"—above
average performance

	c.
	"1"—good/satisfactory
performance

	d.
	"0"—unacceptable
performance 

        The
rating assigned to the Participant will be used to calculate an adjustment to the Value ("Adjusted Value") for each Participant using the following percentages: 

	Rating
	 	 

	3	 	110% — 125%*
	2	 	100%
	1	 	75%
	0	 	0%

        *
Participants receiving a "3" rating will receive a minimum restricted stock award of 110% of Value, up to a maximum restricted stock award of 125% of Value. 

        Once
the Determination Date occurs and the Committee determines that one or more of the targets or goals have been met, and the Participant's rating is determined by the Board, then the
Adjusted Value shall be converted into a number of shares of Common Stock determined by dividing such Adjusted Value by the "Conversion Share Price" and those shares of Common Stock shall be
considered earned and awarded to the Participant. The "Conversion Share Price" shall mean the average of the Common Stock closing prices for the ten consecutive trading day period commencing upon the
third trading day following the Company's public release of annual earnings for the Program Year. Any fractional shares of Common Stock will be rounded to the next full share. 

        7.     Vesting.    Shares
of Common Stock earned and awarded for a Program Year shall vest and be delivered to Participant subject to the
following vesting schedule: twenty-five percent (25%) of the shares shall vest on January 1 of each of the four consecutive calendar years following the year in which the
Determination Date occurs, provided that the Participant is an employee of the Partnership or one of its Affiliates on the date of vesting. Except as expressly provided in the Plan Description
attached hereto and incorporated herein, any shares earned and awarded which do not vest because the Participant is not an employee of the Partnership or one of its Affiliates on the date of vesting
shall be forfeited. 

        8.     Incorporation
of Plan Description and Plan Controlling.    Attached to this Agreement is a Plan Description which provides further
detail regarding the 2006 Program Year. The terms and conditions of the Plan Description are incorporated into this Agreement by reference. Included in paragraph 14 of the Plan Description are
the terms and conditions upon which a Participant may continue to vest in awards of restricted Common Stock under the Plan which shall be applicable to the 2006 Program Year and any prior Program Year
for which the Participant received an award of restricted Common Stock under the Plan. Accordingly, all prior restricted stock agreements between the Partnership and the Participant, and the terms
governing any prior award of restricted stock to Participant under the Plan, are hereby amended solely for the purpose of incorporating the provisions of paragraph 14 of the attached Plan
Description. 

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        9.     Qualification
of Rights.    Neither this Agreement nor the existence of any allocation of Value described herein shall be construed
as giving the Participant any right (a) to be retained as a director or employee of the Partnership or any of its Affiliates; or (b) as a shareholder with respect to the shares of Common
Stock underlying the Value or Adjusted Value until the certificates for the Common Stock have been issued and delivered to the Participant. 

        10.   Governing
Law; Entire Agreement.    This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware. This Agreement and the Plan contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior understandings, if any, with respect thereto.
This Agreement may not be modified, supplemented or terminated except as expressly provided herein or in the Plan or by written instrument signed by the parties hereto. 

        11.   Notices.    All
notices and other communications required or permitted under this Agreement shall be in writing, signed by or on
behalf of the party by which given, and shall be considered to have been duly given when (a) delivered by hand, (b) sent by telecopier (with receipt confirmed), provided that a copy is
mailed (on the same date) by certified or registered mail, return receipt requested, postage prepaid, or (c) received by the addressee, if sent by Express Mail, Federal Express or other
reputable express delivery service (receipt requested), or by first class certified or registered mail, return receipt requested, postage prepaid, addressed as follows: if to the Partnership or the
Company, to the Company's executive offices in Indianapolis, Indiana, and if to the Participant or his or her successor, to the address last furnished by the Participant to the Company. Each notice
and communication shall be deemed to have been given when received by the Company or the Participant. 

        12.   Representations
and Warranties of Participant.    The Participant represents and warrants that he or she has received and reviewed
a copy of the Plan. The Participant further represents and warrants that the Plan, and the written Agreements between the Partnership, the Company and the Participant, and no other plans or
agreements, govern the Participant's opportunity to earn restricted Common Stock. 

        13.   Successors
and Assigns.    This Agreement shall be binding upon and inure to the benefit of the successors, assigns and heirs of
the respective parties. 

        14.   Waiver.    The
failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be
considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. 

        15.   Titles.    Titles
are provided herein for convenience only and are not to serve as a basis for interpretation or construction of
the Agreement. The masculine pronoun shall include the feminine and neuter and the singular shall include the plural, when the context so indicates. 

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        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

	

 	
 	

SIMON PROPERTY GROUP, L.P., a Delaware limited partnership
	

 	
 	

By:	

SIMON PROPERTY GROUP, INC., a Delaware

corporation, General Partner
	

 	
 	

By:	

 
	 	 	 	    

	 	 	SIMON PROPERTY GROUP, INC., a Delaware corporation
	

 	
 	

By:	

    

	 	 	 	 
	

 	
 	

 Signature of Participant
	 	 	 	 
	 	 	    
 Printed Name

(please return a signed copy to Human Resources)  

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2006 PERFORMANCE BASED RESTRICTED STOCK AGREEMENTExhibit 10.12  

DESCRIPTION OF DIRECTOR AND EXECUTIVE COMPENSATION ARRANGEMENTS
  (February 28, 2007) 

Compensation of Non-Employee Directors  

        Annual Retainer.    Non-employee members of the Board receive a retainer in cash and restricted stock: 

	•
	The
cash component is $55,000.

	•
	The
restricted stock award has a value of $82,5001.

	•
	The
retainer is payable annually, upon election, re-election or appointment to the Board2. 

        Committee Chair Retainers.    Each non-employee Committee Chair receives: 

	•
	Audit—$20,000,
payable one-half in cash and one-half in restricted stock.

	•
	All
other Committees (except Executive Committee)—$15,000, payable one-half in cash and one-half in restricted stock. 

        Meeting Fees.    Non-employee directors do not receive any fees for attending Board meetings.
Non-employee directors receive $1,000 per committee meeting for attendance (whether in person, by telephone or video conference). 

        Lead Director Compensation.    The non-employee director designated as Lead Director receives an additional retainer
of $25,000 annually, payable one-half in cash and one-half in restricted stock2. 

        Vesting of Restricted Stock.    All restricted stock compensation received by non-employee directors vests one year
after the award. 

        Director Ownership Guidelines.    Under the Company's Governance Principles, directors must own 3,000 shares or more of Company
common stock within two years after their initial election or appointment and 5,000 shares or more three years from such date. Restricted stock qualifies for this purpose only after full vesting. 

        Deferred Compensation.    Non-employee directors may elect to defer all or a portion of their cash compensation
under the Company's Nonqualified Deferred Compensation Plan (the "Deferred Compensation Plan"). To date, none of our non-employee directors has elected to do so. All restricted stock
issued to non-employee directors as retainers will be placed in the Deferred Compensation Plan. Dividends paid on the restricted stock in this account must be reinvested in Company common
stock. Amounts in the Deferred Compensation Plan will not be released until a director retires and resigns from the Board or is not re-elected. 

	(1)
	Awards
of restricted stock are determined by dividing the cash value of the award by the 20 trading day average closing price of Company common stock ending on the trading day
immediately preceding the date of such award.

	(2)
	Pro-rated
for partial years of service. 

Compensation of Named Executive Officers  

        Base Salaries.    The executive officers of the Company serve at the discretion of the Board of Directors. The Compensation
Committee of the Board sets or ratifies the base salaries of the Company's executive officers. The following are the current annual base salary levels for the Company's Chief Executive Officer, Chief
Financial Officer and its three other most highly compensated executive officers (the "Named Executive Officers") required to be identified in the proxy statement for the Company's 2007 annual meeting
of stockholders: 

	 
	 	 

	David Simon

Chief Executive Officer(1)	 	$	800,000
	

Steven Sterrett

Executive Vice President and

Chief Financial Officer	
 	
 	

475,000
	

Richard S. Sokolov

President and Chief Operating Officer	
 	
 	

762,000
	

Gary Lewis

Senior Executive Vice President	
 	
 	

500,000
	

James M. Barkley

General Counsel and Secretary	
 	
 	

500,000

	(1)
	The
Compensation Committee has an evaluation underway with regards to base compensation for David Simon. This amount shown represents his current base salary. 

        Employment Agreements.    Mr. Sokolov has entered into an employment agreement with the Company, a copy of which have
been filed as exhibits to the Company's Annual Report on Form 10-K for the year ended December 31, 2004 (the "2004 10-K"). 

        Bonus Plan.    Each of the Named Executive Officers is also eligible to receive an annual bonus under the Company's bonus
program. For each participant, the Company sets a bonus target, generally expressed as a percentage of base salary. Actual bonus payments may range from 0 to 200% of the target amount. The Company
sets specific criteria for corporate, business unit (if applicable) and individual (if applicable) objectives. The criteria may also include subjective measures of performance or financial measures
such as EBITDA or other measures related to an executive's primary areas of responsibility. In the case of our Named Executive Officers, the bonus criteria are approved by the Compensation Committee.
In the recent past, the payment of bonuses has been made subject to achievement of the Company's overall budget for the year. The Company also includes "stretch" levels which may justify higher
payments if Company performance exceeds its budget. If an executive officer's bonus criteria are objective, then the achievement of those criteria are reviewed by the Compensation Committee.
Achievement of the bonus criteria is generally determined in February of the year after the performance year and bonuses are paid in March. 

        The
Compensation Committee determined that the Company's actual performance in 2006 exceeded budget and approved the following bonuses for the Named Executive Officers for 2006: 

	David Simon

Chief Executive Officer	 	[$	            -	]*
	

Steven Sterrett

Executive Vice President and

Chief Financial Officer	
 	
$	

500,000	
 
	

Richard S. Sokolov

President and Chief Operating Officer	
 	
$	

800,000	
 
	

Gary Lewis

Senior Executive Vice President	
 	
$	

393,641	
 
	

James M. Barkley

General Counsel and Secretary	
 	
$	

550,000	
 

	*
	Amount
to be determined. As of the date of this filing on Form 10-K, the Compensation Committee had not yet determined the amount of the award for David Simon. 

        Stock-Based Awards.    The Named Executive Officers are eligible to receive discretionary awards under the Simon Property Group,
L.P. 1998 Stock Incentive Plan (the "1998 Plan"). Under the 1998 Plan, the Compensation Committee may make the following types of equity-based awards: incentive stock options, nonqualified stock
options, stock appreciation rights, performance units and restricted stock. The only forms of awards the Compensation Committee has granted have been options and restricted stock. No stock options
have been granted to employees since 2001. 

        Each
year the Compensation Committee creates an annual stock incentive program under the 1998 Plan. The stock incentive program provides participants an opportunity to receive an award
of restricted shares of common stock if financial and return-based performance measures for the program year are achieved. Until 2006, award opportunities were for a specific number of restricted
shares that
would be granted in the following year if the performance measures for the program year were met. Beginning with the 2006 stock incentive program, award opportunities were designated as a specific
dollar value which is to be converted into shares of restricted stock if the awards are granted. 

        The
performance measures and weightings for the 2006 stock incentive program were: 

	Measure
 
	 	Weighting
	 
	"Target" FFO per Share Goal	 	35	%
	"Stretch" FFO per Share Goal	 	25	%
	Total Stockholder Return vs. MSCI US REIT Index (meet or exceed)	 	25	%
	Total Stockholder Return vs. S&P 500 Index (meet or exceed)	 	15	%
	 	 	
	 
	 	Total	 	100	%

        The
2006 stock incentive program also recognizes evaluations of individual performance on a positive or negative basis. The committee assigns each executive officer an individual rating
for his or her program year performance ranging from "0" to "3." Participants with the highest rating of "3" receive 110% to 125% of the initial allocation based on corporate performance (the
"Calculated Award"). Participants with a rating of "2" receive 100% of the Calculated Award. Participants with a rating of "1" receive 75% of the Calculated Award, and participants with a rating of 0,
which represents unacceptable performance, receive no award. 

        The
Compensation Committee allocated to the Named Executive Officers, other than David Simon, the opportunity to receive restricted shares with an aggregate value of $4.3 million
under the 2006 stock incentive program. David Simon was allocated the opportunity to receive an award of restricted shares with a value of $1.4 million under the 2006 stock incentive plan. The
$4.3 million in 

restricted
shares was awarded to the Named Executive Officers, other than David Simon. David Simon's restricted stock award is still under consideration by the Compensation Committee. 

        Insurance and 401(k) Plan.    The Company pays employee and dependent life insurance premiums for each Named Executive Officer
and makes annual contributions to the accounts of the Named Executive Officers under the Company's 401(k) retirement plan. The Company's basic contribution to the 401(k) retirement plan is equal to
1.5% of the Named Executive Officer's compensation and for contributions made prior to January 1, 2007 becomes vested 30% after completion of three years of service, 40% after four years of
service and an additional 20% after each additional year of service until fully vested after seven years. Company basic contributions made after January 1, 2007 will vest 20% after completion
of two years and an additional 20% after each additional year of service until fully vested after six years. The Company matches 100% of the first 3% of the Named Executive Officer's contribution and
50% of the next 2% of the Named Executive Officer's contribution. Company matching contributions are vested when made. The Company's basic and matching contributions are subject to applicable IRS
limits and regulations. 

        Non-Qualified Plan.    The Named Executive Officers may also participate in the Deferred Compensation Plan, a
non-qualified deferred compensation plan for certain executives, key employees and directors. While the Deferred Compensation Plan is an unfunded plan for purposes of the Employee
Retirement Income Security Act of 1974, as amended, certain assets have been set aside in the Simon Property Group, L.P. Deferred Compensation Plan Trust to be used to pay benefits to participants,
except to the extent the Company becomes insolvent. 

        The
Deferred Compensation Plan permits eligible employees to defer receipt of up to 100% of their compensation, including Company stock awarded under the 1998 Plan. The Deferred
Compensation Plan also authorizes the Company to make matching contributions based on each eligible employee's elective cash deferrals. The Company has not made any matching contributions since the
inception of the Deferred Compensation Plan. Participants in the Deferred Compensation Plan are 100% vested in all elective cash deferrals. Deferrals of Company stock awarded under the 1998 Plan vest
in accordance with the terms of the 1998 Plan. Employee elective cash deferrals generate earnings based on investment elections made by individual participants. 

        Heath and Welfare Benefits.    The Named Executive Officers also participate in health and welfare benefit plans on the same
terms as other salaried employees.

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