Document:

TAUBMAN CENTERS, INC.

                   AMENDED AND RESTATED CASH TENDER AGREEMENT

         THIS AMENDED AND RESTATED CASH TENDER  AGREEMENT (this  "Agreement") is
entered  into as of the 16th day of May,  2000,  by and among  Taubman  Centers,
Inc., a Michigan  corporation (the "Company"),  The Taubman Realty Group Limited
Partnership,  a Delaware limited partnership  ("TRG"), and A. Alfred Taubman, A.
Alfred Taubman,  acting not individually but as Trustee of the A. Alfred Taubman
Restated  Revocable Trust, as amended and restated in its entirety by Instrument
dated January 10, 1989 and  subsequently  by Instrument  dated June 25, 1997, as
the same may  hereafter  be  amended  from  time to time,  and TRA  Partners,  a
Michigan partnership, based upon the following:

         A. The parties or their  predecessors  in  interest  entered  into that
certain  Cash  Tender   Agreement  as  of  November  30,  1992  (the   "Original
Agreement").

         B. On September 23, 1998,  TRG formed two limited  liability  companies
(the "Companies") pursuant to the Delaware Limited Liability Company Act and, in
exchange  for  all  of the  membership  interests  in  each  of  the  Companies,
contributed  to the  Companies all of its right,  title,  and interest in and to
certain of its assets, subject to certain liabilities.

         C. On September 30, 1998, TRG distributed  TRG's entire interest in the
Companies  to  GMPTS  Limited   Partnership   ("GMPTS"),   a  Delaware   limited
partnership, in redemption of GMPTS's entire interest in TRG.

         D. The  parties  now wish to amend  and  restate  in its  entirety  the
Original Agreement,  to reflect the redemption of GMPTS's entire interest in TRG
and certain related changes made to the Partnership Agreement (defined below).

         NOW, THEREFORE, in consideration,  the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

                                    Article 1
                                     Purpose

         1.1 Purpose.  The Company has agreed to purchase  Units of  Partnership
Interest  (defined  below) from the Holders  (defined  below) upon the tender of
those  Units  of  Partnership  Interest  to the  Company.  The  purpose  of this
Agreement is to set forth the terms and  conditions of the  agreement  among the
Holders,  TRG, and the Company in respect of the Company's agreement to purchase
from the Holders Units of Partnership Interest.

                                    Article 2
                                   Definitions

                  In this  Agreement,  whenever  the context so  indicates,  the
singular or plural number and the  masculine,  feminine,  or neuter gender shall
each be deemed to  include  the other and the  following  terms  shall  have the
indicated meanings:

<PAGE>

         2.1 "AAT" means A. Alfred  Taubman  and A. Alfred  Taubman,  acting not
individually but as Trustee of the A. Alfred Taubman  Restated  Revocable Trust,
as amended and restated in its entirety by Instrument dated January 10, 1989 and
subsequently  by  Instrument  dated June 25, 1997,  as the same may hereafter be
amended from time to time.

         2.2  "Actually"  means,  with  respect to  holding  or owning  Units of
Partnership Interest,  those Units of Partnership Interest with respect to which
the  referenced  Person is (i) set forth on the books and  records of TRG as the
owner (the "Record  Partner") or (ii) a designee of a Record Partner as provided
in Section 5.2(c) of the Partnership Agreement, in either case without regard to
Beneficial Ownership or Constructive Ownership.

         2.3      "Active Tender" is defined in Section 3.3 of this Agreement.

         2.4 "Applicable  Rate" means that rate of interest  announced  publicly
from time to time by The Chase  Manhattan  Bank, a New York State bank,  as such
Bank's prime commercial  lending rate, plus 1%, such interest to be computed and
compounded  on a daily basis using a year of 360 Days and, in such  computation,
effect shall be given to any change in the interest rate resulting from a change
in said prime commercial lending rate on the Day of such change.

         2.5 "Beneficial  Ownership"  means ownership of shares of Capital Stock
(or,  for purposes of the  definitions  of  "Actually"  and  "Eligible  Holder,"
Partnership  Interests),  (i) by a Person who owns such shares of Capital  Stock
(or  Partnership  Interests)  in his own name or would be treated as an owner of
such shares of Capital Stock (or Partnership  Interests)  constructively through
the application of Section 544 of the Code, as modified by Section  856(h)(1)(B)
of the Code; or (ii) by a person who falls within the  definition of "Beneficial
Owner" under Section 776(4) of the Michigan Business  Corporation Act. The terms
"Beneficial Owner",  "Beneficially Owns" and "Beneficially Owned" shall have the
correlative meanings.

         2.6 "Board of  Directors"  means the Board of  Directors of the Company
and any Committee of the Board of Directors  established pursuant to the By-laws
of the Company with  specific  authority in respect of this  Agreement  given to
such Committee.

         2.7 "Business Day" means  any  Day on which the New York Stock Exchange
is open for trading.

         2.8 "Capital  Stock" means the Common  Stock and the  Preferred  Stock,
including  shares of Common Stock and  Preferred  Stock that have become  Excess
Stock.

         2.9 "Cash Option"  means the Company's  option to purchase the Tendered
Interests for cash without engaging in a public offering of the Common Stock, as
provided in Section 3.1(d) of this Agreement.

         2.10 "Cash Tender Rights" is defined in Section 5.1 of this Agreement.

         2.11 "Code"  means the Internal Revenue Code of 1986, as the same shall
be in effect at the relevant time.

         2.12 "Commission"  means the Securities and Exchange  Commission or any
other federal agency at the time administering the Securities Act.

         2.13 "Common Stock" means the Common Stock of the  Company,  par  value
$.01 per share.

         2.14 "Common  Stock Price" means the closing  price of the Common Stock
as reported on the New York Stock Exchange on the Valuation Date.

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<PAGE>

         2.15 "Company" means Taubman Centers, Inc., a Michigan corporation.

         2.16 "Conditional Transfer Determination" is defined in Section  3.7 of
this Agreement.

         2.17 "Constructive  Ownership"  means  ownership  of shares of  Capital
Stock (or, for purposes of the definitions of "Actually" and "Eligible  Holder,"
Partnership  Interests)  by a Person who owns such  shares of Capital  Stock (or
Partnership  Interests)  in his own name or would be treated as an owner of such
shares of Capital Stock (or Partnership  Interests)  constructively  through the
application of Section 318 of the Code, as modified by Section  856(d)(5) of the
Code. The terms "Constructive Owner"  "Constructively  Owns" and "Constructively
Owned" shall have the correlative meanings.

         2.18 "Continuing   Offer"  means  the  Second  Amended   and   Restated
Continuing Offer, dated May 16, 2000, by the Company to certain holders of Units
of Partnership Interest and Incentive Options.

         2.19 "Day" means each calendar day, including  Saturdays,  Sundays, and
legal  holidays;  however,  if the Day on which a period of time for  consent or
approval or other  action ends is not a Business  Day,  such period shall end on
the next Business Day.

         2.20 "Delayed  Tender" means a Tender with respect to which the Company
has elected the Sale Option and the closing  described in Section 3.4(b) of this
Agreement has not occurred  within ninety (90) days after the  expiration of the
Opt-In Period in respect of such Tender.

         2.21 "Designated  Offeree" means (i) each Person (other than an Initial
Offeree) who Actually  holds Units of  Partnership  Interest,  provided that the
Company, upon the request of said Person, designates said Person in writing as a
Designated  Offeree and provided that said Person would be an Eligible Holder at
the time such person is so  designated  assuming  the  Continuing  Offer were to
extend to such Units of Partnership  Interest  Actually held by said Person,  or
(ii) each  assignee of a Person  described  in (i) above in this  definition  of
Designated Offeree, but only if such assignee would be an Eligible Holder at the
time of such  assignment  assuming  the  Continuing  Offer were to extend to the
Units of Partnership Interest acquired through such assignment.

         2.22 "Designated Representative" means the Person or Persons designated
by each Tendering  Holder to receive  notices under this  Agreement,  including,
without limitation,  notice of the Price, and who has or have the authority,  on
behalf of such  Tendering  Holder,  to make  decisions  as may be  necessary  or
required under this Agreement,  including,  without limitation,  the decision to
become or not to become a  Withdrawing  Holder and the  decision to  terminate a
Tender.

         2.23  "Eligible  Assignee  Units"  means  those  Units  of  Partnership
Interest  acquired  and Actually  held from time to time by Initial  Offerees or
Designated  Offerees provided that such Initial Offerees or Designated  Offerees
would be  Eligible  Holders  as of the  time of such  acquisition  assuming  the
Continuing Offer were to extend to the Units of Partnership Interest so acquired
and Actually held.

         2.24 "Eligible Holder" means at the relevant time the holder (or if the
holder is not the owner for Federal income tax purposes, such owner) of Units of
Partnership  Interest  who if he were to  exchange  for  shares of Common  Stock
pursuant to the Continuing Offer each Unit of Partnership  Interest that is both
(i) Beneficially  Owned or  Constructively  Owned by him (including each Unit of
Partnership  Interest that is subject to an Incentive  Option or Rights Actually
held  by  him)  and  (ii)  subject  to the  Continuing  Offer,  would  not  then
Beneficially  Own or  Constructively  Own, or by reason of its  Actually  owning
Units of Partnership  Interest would cause another Person to Beneficially Own or
Constructively  Own,  shares of Capital Stock in excess of the Ownership  Limit,
provided,  however,  if such holder is a Look Through Entity,  such Look Through
Entity's Beneficial Ownership or Constructive Ownership may exceed the Ownership
Limit  but in no

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<PAGE>

event may such Look Through Entity  directly or indirectly  (without taking into
account the ownership of Units of Partnership Interest) own in excess of 9.9% in
value of the outstanding shares of Capital Stock, provided further, however, the
Managing   General   Partner  shall  exempt  a  Look  Through  Entity  from  the
requirements  of clause (ii) of this  definition of Eligible  Holder if (a) such
Look Through Entity is a bank  chartered  under the laws of the United States or
any state of the United  States or is a United  States branch of a foreign bank,
and (b) TRG has no reasonable reason to believe after the receipt of the written
affirmation  and  undertaking  required to be provided by the definition of Look
Through Entity that such Look Through Entity would not be an Eligible Holder. In
measuring the Beneficial  Ownership or Constructive  Ownership for this purpose,
the Excess Stock Provisions shall be disregarded.

         2.25 "Equivalency Shares" means Registrable Securities equal in  number
to the Share Equivalency.

         2.26 "Excess Stock  Provisions"  means the provisions of Article III of
the Amended and Restated Articles of Incorporation, as in effect at the relevant
time of the Company.

         2.27  "Exchange  Act" means the  Securities  Exchange  Act of 1934,  as
amended, and the rules and regulations of the Commission thereunder,  all as the
same shall be in effect at the relevant time.

         2.28  "Family  Trust"  means a trust for the benefit of a Person or for
the benefit of any member or members of such  Person's  Immediate  Family or for
the benefit of such Person and any member or members of such Person's  Immediate
Family (for the purpose of determining whether or not a trust is a Family Trust,
the fact that one or more of the beneficiaries (but not the sole beneficiary) of
the trust  includes a Person or  Persons,  other than a member of such  Persons'
Immediate Family,  entitled to a distribution  after the death of the settlor if
he,  she,  it, or they shall have  survived  the  settlor of such  trust,  which
distribution is to be made of something other than a Partnership Interest and/or
includes an  organization  or  organizations  exempt from  federal  income taxes
pursuant  to the  provisions  of  Section  501(a) of the Code and  described  in
Section 501(c)(3) of the Code, shall be disregarded);  provided, however, that a
trust will be a "Family Trust" hereunder only if the trustee or trustees of such
Family Trust shall be solely such Person,  a member or members of such  Person's
Immediate Family, a responsible financial institution and/or an attorney that is
a member of the Bar of any State in the United  States  and/or an  individual or
individuals approved by the Managing General Partner.

         2.29 "Holders" means and includes the Persons who are identified on the
schedule  attached to this  Agreement  as Exhibit A, and all Persons to whom the
Cash Tender Rights under this Agreement are  transferred in accordance  with the
provisions of Section 5.1 of this Agreement, to the extent such Persons hold any
Units of Partnership Interest at the time in question.

         2.30 "Immediate  Family"  means,  with  respect to  a Person,  (i) such
Person's  spouse  (former  or then  current),  (ii) such  Person's  parents  and
grandparents,  and (iii) ascendants and descendants (natural or adoptive, of the
whole or half blood) of such Person's parents or of the parents of such Person's
spouse (former or then current).

         2.31  "Incentive  Option" means an option  granted  pursuant to the TRG
1992  Incentive  Option Plan, as Amended and Restated  Effective as of September
30, 1997, to acquire a Partnership Interest or any future plan providing for the
granting to employees of options in respect of Units of Partnership Interest.

         2.32 "Initial  Offeree"  means (i) each Person who Actually holds Units
of Partnership  Interest as of the date of the Continuing  Offer,  but only with
respect to (x) Units of Partnership  Interest held Actually by such Person as of
the date of the  Continuing  Offer,  provided  such Person  would be an Eligible
Holder  on the  date of the  Continuing  Offer  with  respect  to such  Units of
Partnership  Interest Actually held by such Person assuming the Continuing Offer
were to extend to such Units of Partnership Interest,  and (y) Eligible Assignee
Units,  in either case  provided  that such Person is  identified  on Schedule A
hereto,  (ii) each  assignee of an Initial  Offeree,

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<PAGE>

but  only if such  assignee  would  be an  Eligible  Holder  at the time of such
assignment  assuming  the  Continuing  Offer  were to  extend  to such  Units of
Partnership  Interest  so  assigned,  provided,  however,  the  Initial  Offeree
assigning such Units of Partnership  Interest shall have the right to provide in
such  assignment  that such  assignee  shall not be an  Initial  Offeree,  (and,
therefore,  the Units of  Partnership  Interest so assigned,  while held by such
assignee,  shall not be subject to the Continuing Offer),  (iii) each Person who
is, or hereafter becomes, a holder of an Incentive Option or Rights, but only if
such person would be an Eligible Holder at the time of becoming a holder of such
Incentive  Option or Rights assuming the Continuing  Offer were to extend to the
Incentive Option or Rights so acquired, (iv) each Person who hereafter becomes a
holder of Units of Partnership  Interest pursuant to the exercise by such Person
of an Incentive  Option,  but only if such Person would be an Eligible Holder at
the time of such exercise  assuming the  Continuing  Offer were to extend to the
Units of  Partnership  Interest  acquired  through  such  exercise,  or (v) each
assignee of a holder of Units of Partnership Interest as of the date hereof, but
only if such assignee would be an Eligible Holder at the time of such assignment
assuming  the  Continuing  Offer  were to  extend  to the  Units of  Partnership
Interest acquired through such assignment.

         2.33 "Initiating Holder(s)" means any Holder or Holders that  initiates
a Tender.

         2.34 "Institutional  Lender" means (i) a pension fund,  profit-sharing
fund or similar fund, or an  organization or  organizations  exempt from federal
income  taxes  pursuant  to the  provisions  of  Section  501(a) of the Code and
described in Section  501(c)(3) of the Code, in each such case  possessing  more
than Fifty Million Dollars  ($50,000,000) in assets, (ii) pooled funds for Keogh
plans,  individual  retirement  plans,  profit-sharing  plans,  pension plans or
similar  tax-exempt  plans,  in each such case  possessing more than One Hundred
Million Dollars  ($100,000,000)  in assets,  and (iii) an insurance company or a
bank,   in  each  such  case   possessing   more   than  Two   Billion   Dollars
($2,000,000,000) in assets.

         2.35 "Lesser Valued Interest" is defined in  Section 3.1(f)   of   this
Agreement.

         2.36 "Look  Through  Entity"  means  any  Person  that  (i)  is not an
individual  or an  organization  described in Sections  401(a),  501(c)(17),  or
509(a) of the Code or a portion of a trust  permanently  set aside or to be used
exclusively  for the  purposes  described  in  Section  642(c)  of the Code or a
corresponding  provision of a prior income tax law, and (ii)  provides  TRG, not
less than ten days prior to becoming a holder of Units of Partnership  Interest,
with (a) a written affirmation and undertaking,  subject only to such exceptions
as  are  acceptable  to  TRG  in  its  sole  discretion,  that  (w) it is not an
organization described in Sections 401(a), 501(c)(17) or 509(a) of the Code or a
portion  of a trust  permanently  set  aside or to be used  exclusively  for the
purposes described in Section 642(c) of the Code or a corresponding provision of
a prior income tax law, (x) assuming that the Continuing Offer were to extend to
Units of Partnership  Interest held by such Person, after the application of the
rules for  determining  stock  ownership,  as set forth in Section 544(a) of the
Code,  as modified by Sections  856(h)(1)(B)  and  856(h)(3)(A)  of the Code, no
"individual"  would  own,   Beneficially  or   Constructively,   more  than  the
then-applicable Ownership Limit, such ownership,  solely for the purpose of this
clause (x) (but not for determining  whether such  "individual" is in compliance
with the Ownership Limit for any other purpose), to be determined by taking into
account only such "individual's"  Beneficial and Constructive  Ownership derived
solely from such Person,  (y) based on such Person's actual  knowledge,  no such
"individual"  would  not  qualify  as an  Eligible  Holder,  and (z) it does not
Constructively  Own 10% or more of the equity of any tenant with respect to real
property  from which the  Company or TRG  receives or accrues any rent from real
property,  and (b) such other information  regarding the Person that is relevant
to the Company's  qualification to be taxed as a real estate investment trust as
defined in Section 856 of the Code as TRG may reasonably request.

         2.37 "Managing   General  Partner" means  the Managing  General Partner
of  TRG  pursuant  to  the Partnership Agreement.

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<PAGE>

         2.38 "Notice"  means the written  notice,  provided by an  Initiating
Holder(s) to the Company and to TRG, initiating a Tender.

         2.39 "Notice  Date" means,  with respect to any Tender,  the date upon
which the Company receives the Notice initiating such Tender.

         2.40 "Opt-In  Period" means,  with respect to a Tender  initiated by an
Initiating  Holder, the twenty (20) Business Day period described in Section 3.2
of this  Agreement  during which any Holder may join in such Tender,  and,  with
respect to a Tender  initiated by the Company's  notice of a  registration,  the
twenty (20)  Business  Day period  described  in Section 3.6 of this  Agreement,
during which any Holder may exercise his right to Tender under this Agreement.

         2.41  "Ownership  Limit" means the Ownership  Limit as set forth in the
Amended and Restated  Articles of  Incorporation  of the Company at the relevant
time.

         2.42 "Partnership Agreement" means The Second Amendment and Restatement
of  Agreement  of  Limited  Partnership  of The  Taubman  Realty  Group  Limited
Partnership,  dated as of September 30, 1998, as amended through the date hereof
and as further amended from time to time.

         2.43 "Partnership  Interest"  means   an    interest,  as a Partner, in
TRG, as such terms are defined in the Partnership Agreement.

         2.44 "Partnership  Interest  Certificate" means a  certificate  of  TRG
representing one or more Units of Partnership Interest.

         2.45 "Percentage Interest" has the meaning assigned to such term in the
Partnership Agreement.

         2.46 "Permitted Condition" is   defined   in   Section   3.1(d) of this
Agreement.

         2.47 "Person" or "Persons" means an individual,  a partnership (general
or limited),  corporation,  limited liability company,  joint venture,  business
trust, cooperative, association, or other form of business organization, whether
or not regarded as a legal entity under  applicable law, a trust (inter vivos or
testamentary),  an  estate of a  deceased,  insane,  or  incompetent  person,  a
quasi-governmental  entity,  a government  or any agency,  authority,  political
subdivision, or other instrumentality thereof, or any other entity.

         2.48 "Price"  means  the  price  per  share at which  the   Registrable
Securities are proposed to be offered for sale to the public pursuant to Section
4.1 of this  Agreement,  prior to  reduction  for any  Registration  and Selling
Expenses.

         2.49 "Principal Amount" is  defined in  Section   2.72(a)(i)  of   this
Agreement.

         2.50 "Pro Rata" means the number of Registrable Securities allocated to
each Tendering Holder with respect to a given Tender  (calculated  separately as
to each  Tendering  Holder) over the aggregate  number of shares of Common Stock
registered in any registration statement covering the Registrable Securities.

         2.51 "Record Partner" is defined in the definition of Actually.

         2.52 "Registrable   Securities"  means  all  shares  of   Common  Stock
registered by the Company in a given registration upon its election to engage in
a public  offering  pursuant  to  Section  3.1(d) or to  register  Common  Stock
pursuant to Section 3.6 of this Agreement.

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<PAGE>

         2.53 The terms "register",  "registered" and "registration"  refer to a
registration  effected  by  preparing  and filing a  registration  statement  in
compliance  with the  Securities  Act,  and the  declaration  or ordering of the
effectiveness of such registration statement by the Commission.

         2.54 "Registration  Expenses" means all out-of-pocket expenses incurred
by the  Company  upon its  election to engage in a public  offering  pursuant to
Section 3.1(d) or Section 3.6 of this Agreement, including, without limitation:

                  (a)  all registration, filing and listing fees;

                  (b)  fees and  expenses of  compliance  with federal and state
         securities  or  real  estate   syndication   laws  (including   without
         limitation  reasonable  fees  and  disbursements  of  counsel  for  the
         underwriters  in  connection  with  state  securities  and real  estate
         syndication qualifications of the Registrable Securities under the laws
         of such jurisdictions as the managing underwriter may designate);

                  (c)  printing   (including  without  limitation   expenses  of
         printing or engraving  certificates for the Registrable Securities in a
         form eligible for deposit with  Depositary  Trust Company and otherwise
         meeting the  requirements of any securities  exchange on which they are
         listed and of printing prospectuses), messenger, telephone and delivery
         expenses;

                  (d)  fees and disbursements of counsel for the Company;

                  (e)  fees  and   disbursements   of  all  independent   public
         accountants of the Company  (including  without limitation the expenses
         of any annual or special audit and "cold comfort"  letters  required by
         the managing underwriter);

                  (f)   securities  act  liability  insurance  if the Company so
         desires or if the managing underwriter so requires;

                  (g)   fees  and   expenses  of   other   Persons    reasonably
         necessary in connection with the registration,  including  any experts,
         retained by the Company;

                  (h)   fees  and  expenses  incurred  in  connection  with  the
         listing of the Registrable  Securities on  each securities  exchange on
         which securities of the same class are then listed; and

                  (i)   fees  and  expenses   associated  with  any NASD  filing
         required to be made in connection with the registration statement.

         2.55 "Registration  and  Selling  Expenses"  means  the    sum  of  the
Registration Expenses and the Selling Expenses.

         2.56 "Registration  Rights  Agreement" means the Taubman  Centers, Inc.
Registration  Rights Agreement dated November 30, 1992, by and among the Company
and the General Motors Hourly Rate Employees  Pension Trust,  the General Motors
Salaried  Employees Pension Trust and the AT&T Master Pension Trust, as the same
may be amended.

         2.57 "Retained Amount" means that  portion  of  the  proceeds from  the
sale of the Equivalency Shares equal to the positive  remainder,  if any, of (a)
the Share Equivalency  Dividend,  minus (b) any other amount that the Company is
entitled to retain for its own account from the sale of the Equivalency  Shares,
minus (c) the amount of  distributions  with respect to the  Tendered  Interests
that the Company reasonably

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<PAGE>

anticipates  receiving from TRG between the closing date of the relevant  tender
and the Company's next anticipated dividend declaration date.

         2.58 "Rights"  means  Incentive   Options  that  have  been  exercised,
provided  that all payments with respect to the exercise have been fully paid to
TRG.

         2.59 "Sale Option" means the Company's  option to purchase the Tendered
Interests by using cash obtained by engaging in a public  offering of the Common
Stock as provided in Section 3.1(d) or Article 4 of this Agreement.

         2.60 "Securities Act" means the Securities Act of 1933, as amended, and
the rules and regulations of the Commission thereunder, all as the same shall be
in effect at the relevant time.

         2.61 "Selling  Expenses"  means all  underwriting  discounts,  selling
commissions and stock transfer taxes applicable to the Registrable Securities.

         2.62 "Share Equivalency"  means, with respect to any Tender,  shares of
Common Stock equal in number to the number of Tendered Interests.

         2.63  "Share  Equivalency  Dividend"  means  the  product  of  (a)  the
Company's  then-current  quarterly per share dividend rate multiplied by (b) the
Share Equivalency.

         2.64 "Tender" means a transaction initiated by the delivery of a Notice
pursuant to which the  Company is to acquire  Units of  Partnership  Interest as
provided in this Agreement.

         2.65 "Tendered  Interests" means, with respect to any Tender, the Units
of Partnership  Interest  tendered to the Company  pursuant to this Agreement by
the Tendering  Holders and with respect to which the Company has received or has
been deemed to have been provided Transfer Determinations.

         2.66 "Tendering  Holder"  means,   with  respect  to  any  Tender,  any
Initiating  Holder and any other Holder  joining in the same Tender  pursuant to
Section 3.2 or Section 3.6 of this  Agreement  who has not  withdrawn his tender
pursuant to Article 4 of this Agreement.

         2.67 "TRAP" means TRA Partners, a Michigan partnership.

         2.68 "Transfer Determination" has  the   meaning   set   forth  in  the
Partnership Agreement.

         2.69 "TRG" means  The  Taubman  Realty  Group  Limited  Partnership,  a
Delaware limited partnership.

         2.70 "Units  of  Partnership  Interest"  means  the  units  into  which
 Partnership Interests are divided.

         2.71 "Valuation Date" means,  with respect to any Tender,  the Business
Day most immediately  preceding the Notice Date. Whenever reference is made to a
Valuation Date, it shall mean, with respect to the Common Stock, as at the close
of trading on such Valuation Date, and with respect to any other item,  midnight
in Detroit, Michigan at the end of such Valuation Date.

         2.72 "Value of the Tendered  Interests"  means the total purchase price
to be  paid  by the  Company  to all of the  Tendering  Holders,  determined  as
follows:

                                       8
<PAGE>

                  (a) In the  case of an  election  by the  Company  of the Cash
         Option pursuant to Section 3.1(d) of this Agreement, the total purchase
         price to be paid by the Company to all of the  Tendering  Holders shall
         be equal to  Common  Stock  Price  multiplied  by the  total  number of
         Tendered  Interests  (the  "Base  Value  of the  Tendered  Interests"),
         adjusted as follows:

                           (i) there shall be subtracted  from the Base Value of
                  the Tendered Interests the product of the Percentage  Interest
                  represented by the Tendered Interests multiplied by the sum of
                  all  distributions  made  by TRG to  all  of  the  holders  of
                  Partnership  Interests from the proceeds  received by TRG from
                  the  sale,  financing,  or  refinancing  by  TRG of all or any
                  portion  of  TRG's  interest  in a  regional  retail  shopping
                  center, which distributions occur after the Valuation Date and
                  prior to the date of the closing  described in Section  3.4(a)
                  of this Agreement,  the resulting  amount being the "Principal
                  Amount", and

                           (ii) the Company shall pay interest at the Applicable
                  Rate on the Principal  Amount,  as the Principal Amount may be
                  from  time to time as  provided  in  Item  (i)  above  of this
                  Paragraph  (a),  to the  Tendering  Holders,  for  the  period
                  beginning  on, and  including,  the Notice Date  through,  and
                  including, the date of the closing described in Section 3.4(a)
                  of this Agreement.

                  (b) In the  case of an  election  by the  Company  of the Sale
         Option pursuant to Section 3.1(d) of this Agreement, the total purchase
         price to be paid by the Company to all of the  Tendering  Holders shall
         be equal to the lesser of:

                           (i)  the  Base  Value  of  the   Tendered   Interests
                  determined  under  Paragraph (a) of this Section  (without the
                  adjustment  set forth in the proviso in Item (i) of  Paragraph
                  (a) of this  Section),  plus interest at the  Applicable  Rate
                  calculated  on  such  Base  Value  of the  Tendered  Interests
                  (without the adjustment  provided in Item (i) of Paragraph (a)
                  of this Section), less the Retained Amount; and

                           (ii)  an  amount  equal  to (x)  the  gross  proceeds
                  received  by the  Company  upon  the  sale of the  Registrable
                  Securities (the "gross proceeds"), net of all Registration and
                  Selling Expenses payable by the Company in connection with the
                  sale of the Registrable Securities,  multiplied by a fraction,
                  having as its numerator the Share  Equivalency,  and having as
                  its denominator the number of Registrable Securities sold (the
                  "net proceeds"), minus (y) the Retained Amount.

         2.73 "Withdrawing   Holder"  means  any  Tendering  Holder   who,  upon
notification  of the Price,  withdraws  in a timely  manner  pursuant to Section
4.1(d)  of this  Agreement,  and any  Tendering  Holder  who in a timely  manner
pursuant to Section  4.1(e) of this Agreement  withdraws his Tendered  Interests
from a Delayed Tender.

                                       9
<PAGE>

                                    Article 3
                               Cash Tender Rights

         3.1 Tender of Units of Partnership Interest.  Subject to Section 3.3 of
this  Agreement,  upon the delivery of a Notice to the Company and to TRG (which
Notice shall include the name,  address and telephone  number of the  Designated
Representative(s)  of each Initiating  Holder),  provided that the Base Value of
the Tendered  Interests  tendered by the  Initiating  Holder(s) is not less than
$50,000,000  (except that the Base Value of the Tendered  Interests  may be less
than $50,000,000 if the Tendered  Interests of the Initiating  Holder constitute
all of the Partnership Interests owned by the Initiating Holder), then:

                  (a) TRG shall, within three Business Days  of its  receipt  of
         such Notice:

                           (i)  deliver to the  Company a list  identifying  all
                  Holders other than the  Initiating  Holder(s) who are eligible
                  to  join  in the  Tender  pursuant  to  Section  3.2  of  this
                  Agreement, and

                           (ii)  provide  (or  indicate  that  it is  unable  to
                  provide)  the  Company  and  each  Initiating  Holder  with  a
                  Transfer Determination.

                  (b) The Company,  upon  receipt of the list  described in Item
         (i) above of Paragraph (a) of this Section, shall promptly give written
         notice of the Tender to all  Holders  identified  on such list,  with a
         copy  thereof to the  Initiating  Holder,  including in such notice the
         following:

                           (i)    the name of the Initiating Holder;

                           (ii)   the number of  Units of  Partnership  Interest
                  tendered by the Initiating Holder;

                           (iii)  The Common Stock Price; and

                           (iv) If the  election of the Company  with respect to
                  the Cash  Option or the Sale  Option has been made and, if so,
                  what the Company has elected,  and, if the Company has elected
                  the Cash Option, the size, if any, of the Permitted Condition.

                  (c)  The  Company  shall   purchase  the  Tendered   Interests
         (including Units of Partnership Interest tendered by additional Holders
         joining in the Tender as provided in Section 3.2 of this Agreement) for
         cash in an amount equal to the Value of the Tendered Interests.

                  (d) The Company, within five Business Days of the Notice Date,
         shall give written notice to all Holder(s) of the Company's election to
         purchase  the  Tendered  Interests  for cash either (i) at a closing to
         occur at the time  provided in Section  3.4(a) of this  Agreement  (the
         "Cash  Option"),  or (ii) at a closing to occur at the time provided in
         Section 3.4(b) of this Agreement  (the "Sale  Option").  If the Company
         elects the Cash Option, such election may be expressly conditioned upon
         the  aggregate  Value of the Tendered  Interests,  determined as of the
         Valuation  Date,  tendered by any  additional  Holders  joining in such
         Tender  pursuant  to Section 3.2 of this  Agreement,  being less than a
         specified  maximum amount (the "Permitted  Condition").  If the Company
         elects the Cash  Option  subject  to the  Permitted  Condition  and the
         Permitted  Condition is not satisfied or waived,  (i) the Company shall
         promptly  notify  all  Tendering  Holders  of such  fact,  and (ii) the
         Company  shall be deemed to have  elected the Sale  Option  without any
         further action on the part of the Company,  the Initiating  Holder,  or
         any other Holder.  The purchase of the Tendered  Interests  pursuant to
         the Sale Option  shall be effected by the Company  engaging in a public
         offering of that number of its shares of Common  Stock equal to (a) the
         Share  Equivalency  or (b) the Share  Equivalency  plus such  number of
         additional  shares of Common  Stock that the  Company may elect to sell
         pursuant to Section 4.3 of this Agreement.

                                       10
<PAGE>

         Furthermore,  provided  that not less  than   $25,000,000  of  Tendered
         Interests are purchased  pursuant to the  Sale Option,  the Company may
         elect to purchase Tendered  Interests by  means of a combination of the
         Cash Option and the Sale Option.

                  (e) Each Tendering Holder shall continue to own his respective
         Tendered  Interests until transferred by instrument to the Company at a
         closing to occur on the date provided in Section 3.4 of this Agreement,
         and  will  continue  to be  treated  as the  holder  of  such  Tendered
         Interests  for all purposes of the  Partnership  Agreement,  including,
         without limitation,  for purposes of voting,  consent,  allocations and
         distributions   (subject  only  to  reasonable  accounting  conventions
         adopted  by TRG for  purposes  of  determining  the  partners'  varying
         Percentage  Interests  in  TRG  during  the  taxable  year).   Tendered
         Interests  will be  transferred to the Company only upon receipt by the
         Tendering Holder of payment in full therefor.

                  (f) Notwithstanding  the foregoing  provisions of this Section
         3.1, (i) in the event that the Base Value of the Tendered  Interests is
         less than  $50,000,000  and the Tendered  Interests  by the  Initiating
         Holder  constitute  all  of  the  Partnership  Interests  owned  by the
         Initiating Holder, or (ii) the Company determines that the Common Stock
         Price multiplied by the number of Units of Partnership Interest subject
         to this  Agreement  owned by any Holder is less than  $50,000,000  (the
         "Lesser Valued  Interest"),  provided that the Initiating Holder or the
         Holder of a Lesser Valued  Interest  would be an Eligible  Holder as of
         such date if all of the Units of Partnership  Interest Actually held as
         of  such  date by such  Holder,  including  the  Units  of  Partnership
         Interest becoming subject to the Continuing Offer as of such date, were
         subject to the Continuing Offer, the Company may, at its sole election,
         within three Business Days of receipt of the Notice or, with respect to
         a Holder of a Lesser Valued Interest, at any time, terminate the rights
         of the  Initiating  Holder or the  Holder of a Lesser  Valued  Interest
         under  this  Agreement,  provided  that  (a)  the  Company  grants  the
         Initiating  Holder or the  Holder of a Lesser  Valued  Interest  rights
         under the Continuing  Offer (by designating such Holder as a Designated
         Offeree),  or (b) the  Company  removes  the  Initiating  Holder or the
         Holder of a Lesser Valued  Interest  from Schedule B to the  Continuing
         Offer  if the  Initiating  Holder  or the  Holder  of a  Lesser  Valued
         Interest is an Initial Offeree.

         3.2  Additional  Holders  Joining In Tender.  Subject to Section 3.3 of
this Agreement,  any Holder may join in a Tender made by an Initiating Holder(s)
by  delivering  a written  notice to the Company and to TRG (which  notice shall
include   the  name,   address   and   telephone   number   of  the   Designated
Representative(s)  of such Holder)  within 20 Business Days after receipt of the
written  notice from the  Company to such Holder or Holders  pursuant to Section
3.1(b) of this Agreement (the "Opt-In Period").  All additional  Holders joining
in the Tender  pursuant to this  Section 3.2 shall do so upon the same terms and
conditions   applicable  to  the  Initiating   Holder(s)   (including,   without
limitation,  the  Company's  election  of the Cash  Option or Sale  Option,  but
excluding  the  provision  requiring  the Base Value of the  Tendered  Interests
tendered by such  additional  Holder or Holders  joining in the Tender to be not
less than $50,000,000), and the Value of the Tendered Interests tendered by such
additional  Holders  joining in the Tender  shall be  determined  as of the same
Valuation  Date as is applicable to the Initiating  Holder(s).  Within three (3)
Business Days of receipt of a notice from a Holder joining in a Tender  pursuant
to this  Section  3.2,  TRG  shall  provide  (or  indicate  that it is unable to
provide) each such additional Tendering Holder with a Transfer Determination.

         3.3  Limitations on the Exercise of Cash Tender  Rights.  At all times,
every  Holder's  right (and the right of any  permitted  assignee  (pursuant  to
Section  5.1 of this  Agreement)  of any  Holder)  to  initiate  a Tender  or to
participate  in a Tender  pursuant  to this  Agreement  shall be  subject to the
following continuing limitations:

                                       11
<PAGE>

                  (a) After the initiation of a Tender with respect to which the
         Company elects the Sale Option (an "Active  Tender") or after notice of
         a  registration  is given to the  Holders by the  Company  pursuant  to
         Section 3.6 of this  Agreement,  another  Tender shall not be initiated
         within  the  period  commencing  on the Day of the  initiation  of such
         Tender and ending the earliest to occur of:

                           (i)  90  Days  after  the  Company  has   effected  a
                  registration  pursuant to this  Agreement with respect to such
                  Active   Tender,   or  after  the  Company  has  effected  the
                  registration  with  respect  to which it gave  notice  to each
                  Holder as provided in Section 3.6 of this  Agreement  and such
                  registration has been declared or ordered effective,

                           (ii)  180 Days  after  the Day immediately  following
                  the last Day of the  relevant Opt-In Period, or

                           (iii) 90 Days after each and every  Tendering  Holder
                  with  respect to such Active  Tender has become a  Withdrawing
                  Holder.

                  (b) A Holder (or any permitted  assignee,  pursuant to Section
         5.1  of  this  Agreement,  of  such  Holder),  may  participate  (as an
         Initiating  Holder  or as a  Holder  joining  in a Tender  pursuant  to
         Sections 3.2 or 3.6 of this  Agreement)  in only one Tender during each
         365 Day period  measured  from the Notice  Dates  initiating  each such
         Tender;  however,  a  Tendering  Holder  shall  not be  deemed  to have
         participated  in a Tender for  purposes of this  Section  3.3(b) if the
         number of Units of  Partnership  Interest  purchased  by the Company is
         reduced by 20% or more pursuant to Section 4.2 of this Agreement.

                  (c)      For purposes of this Section 3.3:

                           (i)  A Withdrawing  Holder shall be treated as not
                  having  participated  in a Tender from which he withdraws.

                           (ii) In the  event  that a Tender  is  terminated  as
                  provided in Section 3.9 of this  Agreement,  such Tender shall
                  be treated as never having occurred.

                           (iii) In  the  event  that TRG  indicates  that it is
                  unable  to  provide  a  Transfer  Determination  to  a  Holder
                  tendering Units of Partnership Interest,  such Holder shall be
                  treated as not having participated in such Tender.

                           (iv)  Action  taken  by  TRAP or AAT  (including  any
                  assignee to whom such rights have been  transferred)  shall be
                  deemed to have also been taken by AAT or TRAP, as the case may
                  be.

         3.4 Payment for  Tendered  Interests.  The Company  shall  purchase the
Tendered  Interests  by the payment of cash in good (or  immediately  available)
funds to each Tendering  Partner in an amount equal to each Tendering  Partner's
pro rata share of the Value of the Tendered Interests as follows:

                  (a) if the Company shall have  elected,  or shall be deemed to
         have  elected,  the Cash Option,  payment shall be made at a closing to
         occur on a date to be  determined  by the  Company  (written  notice of
         which  is to be  provided  to the  Tendering  Holders  within  two  (2)
         Business Days after the  expiration of the Opt-In  Period) but no later
         than 30 days after the Notice Date;

                                       12
<PAGE>

                  (b) if the Company shall have  elected,  or shall be deemed to
         have elected,  the Sale Option, then payment shall be made at a closing
         to occur on the next  Business  Day  following  the date upon which the
         Company  receives  payment for the  Registrable  Securities sold by the
         Company.

         In  no  event  shall  a  closing  occur  prior  to  the  expiration  or
termination   of  the   applicable   waiting   period,   if   any,   under   the
Hart-Scott-Rodino  Antitrust  Improvements  Act of 1976.  Payment  for  Tendered
Interests  shall only be made after  receipt by the  Company of the  Partnership
Interest  Certificate  or  Certificates  representing  the Units of  Partnership
Interest  to be  purchased,  together  with an  assignment  separate  from  such
Certificate  or  Certificates  with  respect  to each such  Unit of  Partnership
Interest.

         3.5  Tendering  Holders  Have No Rights as  Shareholders.  No Tendering
Holder  shall have a right to the  delivery of shares of Common  Stock or of any
other  securities of the Company,  or any other rights as a  shareholder  of the
Company under Michigan law, and shall have no rights to any proceeds obtained by
the  Company  upon  the  sale of the  Registrable  Securities  other  than as an
unsecured  general  creditor  of the  Company  to  receive  payment  in cash for
Tendered Interests.

         3.6  Notice of  Registration. The Company  shall  promptly  notify each
Holder, in writing, of the Company's determination to register any of its Common
Stock for its own account or upon exercise of the rights  granted to the parties
to the Registration  Rights  Agreement,  other than (i) a registration  relating
solely to employee  benefit  plans,  (ii) a  registration  relating  solely to a
Commission  Rule 145  transaction,  or (iii) a registration  relating  solely to
shares of Common Stock to be issued in connection with the Continuing Offer. Any
such notice shall  include (a) the name of each Person,  including  the Company,
that is  registering  shares  of Common  Stock  and (b) the  number of shares of
Common Stock that each Person is registering. In such case, for purposes of this
Agreement,  a Tender  shall be  deemed to have been  initiated  hereunder,  and,
subject to the limitations of Section 3.3 of this  Agreement,  each Holder shall
have, during the Opt-In Period, the right to deliver a notice to the Company and
to TRG joining in such Tender (which notice shall include the name,  address and
telephone number of the Tendering Holder's Designated  Representative(s)).  TRG,
within  three  Business  Days of its  receipt  of a notice  from a Holder of the
Holder's intent to tender Units of Partnership  Interest to the Company pursuant
to this Section,  shall provide (or indicate that it is unable to provide),  the
Company  and each such  Tendering  Holder,  with a Transfer  Determination.  The
Company  shall  purchase  the  Tendered  Interests  with respect to which it has
received or has been deemed to have been provided Transfer  Determinations,  for
cash in an amount equal to the value of the  Tendered  Interests  determined  as
though the Notice Date were the date upon which notice of the  registration  was
delivered by the Company to the Holders. All other applicable provisions of this
Agreement,  and  specifically,  without  limitation,  Paragraphs  (c) and (d) of
Section 3.1 of this Agreement, shall apply to Tenders made under this Section.

         3.7  Transfer Determinations. Transfer Determinations shall be given by
TRG in the manner and  subject to the  requirements  set forth in Section 8.1 of
the Partnership  Agreement. A Transfer Determination will be deemed to have been
provided if not refused by a writing delivered to the Company and the applicable
Tendering  Holder  within three  Business  Days of TRG's  receipt of a Notice or
within three  Business  Days of TRG's receipt of notice that a Holder is joining
in a Tender  pursuant  to  Sections  3.2 or 3.6 of this  Agreement.  A  Transfer
Determination   shall  be  effective  for  all  purposes   (including,   without
limitation,  for the  purpose  of  determining  whether a Tender is timely  made
within an applicable Opt-In Period), as of the date on which TRG receives notice
of the Tender from the Holder. In addition,  if the Company shall elect the Sale
Option,  TRG shall provide (or indicate that it is unable to provide) a Transfer
Determination,  within three Business Days of a request therefor,  that provides
that upon the withdrawal from the Tender of any Holder,  as permitted by Section
4.1(c) of this Agreement, the non-withdrawing Tendering Holders may increase the
number of Units of Partnership  Interest Tendered to the extent of the number of
Units of  Partnership  Interest  withdrawn  from the  Tender by the  Withdrawing
Holder(s), subject to whatever limitations TRG deems to be necessary as provided
in  Section  8.1  of  the  Partnership   Agreement  (a   "Conditional   Transfer
Determination"). A request for a

                                       13
<PAGE>

Conditional Transfer Determination must be made in writing by a Tendering Holder
either (i) at the time of the  delivery  of the Notice,  or the  written  notice
contemplated by Section 3.2 of this Agreement,  or (ii) during the 14 Day period
beginning upon the Day immediately following the last Day of the relevant Opt-In
Period.

         3.8  Hart-Scott-Rodino Act. The Company and the Tendering Holders shall
proceed  diligently  to  submit  any  notification  report  and  any  supporting
documentation  required by the Hart-Scott-Rodino  Antitrust  Improvements Act of
1976, and the regulations thereunder, and shall request early termination of the
waiting period required under such Act.

         3.9  Termination of Tender. In the event that the Company and Tendering
Holders owning Tendered Interests representing at least 90% of the Base Value of
the Tendered  Interests  agree to terminate a Tender,  such Tender shall for all
purposes terminate.

                                    Article 4
                                   Sale Option

         4.1  Company's  Election to Sell Shares. In the event and to the extent
that the Company elects, or is deemed to have elected, the Sale Option, then:

                  (a) As  soon  as  practicable  after  the  Company  gives  the
         Tendering  Holders notice of its election,  or the Permitted  Condition
         shall not have been satisfied or waived, the Company shall use its best
         efforts to proceed as  quickly as  possible  to effect a  registration,
         qualification,   or  compliance  (including,  without  limitation,  the
         execution  of  an  undertaking  to  file   post-effective   amendments,
         appropriate  qualification  under  applicable  blue sky or other  state
         securities or real estate syndication laws, and appropriate  compliance
         with  applicable  regulations  issued under the  Securities Act and any
         other  governmental  requirements  or  regulations)  as would permit or
         facilitate the sale and distribution of the Registrable Securities;

                  (b) Subject to the  provisions of the  succeeding  Sections of
         this Article 4, and unless Tendering Holders owning Tendered  Interests
         representing  at least 90% of the Base Value of the Tendered  Interests
         otherwise  agree in  writing,  the  Company  shall file a  registration
         statement  covering that number,  and only that number,  of Registrable
         Securities equal to the Share Equivalency.

                  (c) The Company shall advise the Designated  Representative of
         each of the  Tendering  Holders of the status of the  registration.  In
         addition, the Company and each such Designated  Representative may, but
         shall be under no obligation to, enter into  understandings  in writing
         whereby the Designated  Representative  will agree in advance as to the
         acceptability  of the Price.  Furthermore,  the Company shall establish
         pricing    notification    procedures   with   each   such   Designated
         Representative.

                  (d) The  Company,  upon  notification  of the  Price  from the
         managing  underwriter(s)  engaged  by the  Company in order to sell the
         Registrable  Securities,  shall  immediately  use its best  efforts  to
         notify the Designated  Representative  of each of the Tendering Holders
         of the Price (if there is more than one Designated  Representative of a
         Tendering  Holder,  the Company need only notify one of such Designated
         Representatives).  Subject to Section  4.1(c) of this  Agreement,  each
         Tendering  Holder  shall have one hour (as such time may be extended by
         the Company) to become a  Withdrawing  Holder.  If a Tendering  Holder,
         within  such  period,  does not  notify the  Company of such  Tendering
         Holder's  election  not to  become  a  Withdrawing  Holder,  then  such
         Tendering Holder shall,  except as otherwise  provided in any agreement
         executed   pursuant  to  the  provisions  of  Section  4.1(c)  of  this
         Agreement, be deemed to have elected to become a Withdrawing Holder. To
         the extent  that the Company is unable to notify any  Tendering  Holder
         (or his Designated  Representative),  such unnotified  Tendering Holder
         shall,  except as otherwise provided in any agreement executed pursuant
         to the

                                       14
<PAGE>

         provisions  of  Section    4.1(c)  of   this   Agreement,  be deemed to
         have elected to become a Withdrawing  Holder.  Each Holder  withdrawing
         pursuant to this Paragraph (d) shall pay to the Company within ten Days
         of receipt of an itemized  statement of the  Registration  Expenses his
         Pro Rata share of the Registration Expenses.  Each Tendering Holder who
         does not become a  Withdrawing  Holder  pursuant to this  Paragraph (d)
         shall  have  the  right,  subject  to  the  approval  of  the  managing
         underwriter(s) and all of the other Tendering Holders who do not become
         Withdrawing Holders, to tender additional Units of Partnership Interest
         (the Value of the  Tendered  Interests  so tendered to be equal to that
         withdrawn) in a number not to exceed the Units of Partnership  Interest
         withdrawn  from the  Tender by the  Withdrawing  Holder(s),  including,
         without limitation, any withdrawal pursuant to the provision of Section
         4.1(e) of this  Agreement,  provided that the Company has received from
         TRG, or has been deemed to have been provided,  a Conditional  Transfer
         Determination that would permit such additional Tender, as described in
         Section 3.6 of this Agreement. If more than one Tendering Holder elects
         to  tender  additional  Units  of  Partnership   Interest,   then  such
         additional  Units of  Partnership  Interest  shall be tendered on a pro
         rata basis.

                  (e) Any Tendering Holder may withdraw from a Delayed Tender at
         any time  after  the  expiration  of 90 Days  from the Day  immediately
         following the last Day of the Opt-In Period  applicable to such Delayed
         Tender,  but not later than one hour (as such time may be  extended  by
         the Company) after the Company  notifies such  Tendering  Holder of the
         Price.  In such case,  the  Withdrawing  Holder shall be treated as not
         having  participated in such Delayed Tender for the purposes of Section
         3.3(b)  of this  Agreement  and  shall  not be  required  to pay to the
         Company any portion of the Registration Expenses.

         4.2  Underwriting.  If and to the  extent the  Company  elects the Sale
Option, then the Company shall take all reasonable action in order to effectuate
the sale of the  Registrable  Securities  including,  but not  limited  to,  the
entering into of an  underwriting  agreement in customary form with the managing
underwriter  selected for such underwriting by the Company.  Notwithstanding any
other provision of this Agreement,  if the managing  underwriter(s)  advises the
Company in writing that marketing  factors require a limitation of the number of
shares  to be  underwritten,  then the  Company  shall so advise  all  Tendering
Holders,  and the number of Units of Partnership Interest to be purchased by the
Company  from each  such  Tendering  Holder  shall be  allocated  among all such
Tendering  Holders in proportion,  as nearly as  practicable,  to the respective
numbers of Units of  Partnership  Interest to be sold to the Company by all such
Tendering  Holders,  but the number of shares of Common  Stock being sold by the
Company  for its own account  pursuant  to either  Section 3.6 or Section 4.3 of
this Agreement shall not be limited or reduced until, pursuant to the foregoing,
the number of Units of Partnership  Interest to be purchased by the Company from
each  Tendering  Holder is reduced to zero. No Registrable  Securities  excluded
from  the  underwriting  by  reason  of  the  managing  underwriter's  marketing
limitation shall be included in such registration.

         4.3 Registration of Securities for Company's  Account.  The Company may
include  securities  for its own account in any  registration  filed pursuant to
Section 4.1(a) of this  Agreement.  If the managing  underwriter has not limited
the number of Registrable Securities to be underwritten, the Company may include
securities for the account of others in such  registration  if and to the extent
that the managing underwriter, the Company and Tendering Holders owning Tendered
Interests  representing at least 90% of the Base Value of the Tendered Interests
so agree in writing  and if the number of  Registrable  Securities  which  would
otherwise have been included in such registration and underwriting, the offering
price  for such  Registrable  Securities  and the  underwriting  commissions  or
discounts  for such  Registrable  Securities  will not  thereby  be  limited  or
adversely affected;  however, the foregoing shall in no event limit the right of
any  party to  tender  Partnership  Interests  to the  Company  pursuant  to the
Continuing Offer.

                                       15
<PAGE>

                                    Article 5
                         Transfer of Cash Tender Rights

         5.1  Transfer  of Tender  Rights.  The right to Tender and to cause the
Company to purchase Units of Partnership  Interest  granted under this Agreement
("Cash Tender  Rights") shall be  automatically  assigned in connection with the
assignment  of Units of  Partnership  Interest  (even if such  assignee does not
become a substitute partner in TRG).

         5.2 Participants with TRAP or AAT. TRAP and AAT may each include in any
Tender that it or he is permitted  to make  hereunder  any Units of  Partnership
Interest owned directly or indirectly by Robert C. Larson or by any Family Trust
for the  benefit  of Robert C.  Larson,  or by any  members  of AAT's  Immediate
Family,  or by any Family  Trust for the benefit of any one or more of them,  or
owned,  directly or indirectly,  by any partnership the partnership interests of
which are owned by any one or more of the foregoing Persons.

         5.3 Secured Creditor.  Cash Tender Rights may be exercised by a secured
creditor  (provided that the secured creditor  referenced in this Section 5.3 is
an  Institutional  Lender) to whom a Holder  has  pledged  Units of  Partnership
Interest  even though such secured  creditor does not become an assignee of such
Holder  pursuant to Section  5.1 of this  Agreement,  provided  that such Holder
grants to such secured  creditor in a written  instrument  the right to exercise
such Holder's Cash Tender Rights,  provided,  further, that the secured creditor
provides the Company at the time it exercises  any Cash Tender  Rights on behalf
of a Holder with such  indemnifications  and  certifications  as are  reasonably
satisfactory  in form and in substance to the Company.  The Company shall not be
required in any way to determine the validity or sufficiency, whether in form or
in substance,  of any written instrument  referred to in the preceding sentence,
and it shall be  sufficient if any writing  purporting to be such  instrument is
delivered  to the  Company  and  purports  on its face to be correct in form and
signed or otherwise executed by such Holder. The Company may continue to rely on
such  written  instrument  until such time,  if any,  that it receives a written
instrument  from such secured  creditor  revoking the  authority  granted by the
written instrument referred to in the first sentence of this Section 5.3.

                                    Article 6
                   Limitation on Registration Rights of Others

         The Company  covenants and agrees that, so long as any Holder holds any
Units of Partnership  Interest,  the Company shall not,  directly or indirectly,
grant to any Person or agree to or otherwise  become obligated in respect of any
demand or  "piggyback"  rights of  registration  of  securities  of the Company,
without the prior written consent of all of the Holders, provided, however, that
such consent shall deem to have been given by a Holder as long as such Holder or
his representative shall have been present at any Board of Directors meeting (or
have acted by written  consent in lieu  thereof)  which  approved  such grant of
registration rights and such Holder or his representative did not express orally
or in writing,  any objection to such grant. The Company represents and warrants
that it has not  previously  entered  into any  agreement  with  respect  to its
securities  granting any registration  rights to any person other than grants of
registration  rights to certain holders of convertible  preferred equity in TRG,
the Registration Rights Agreement,  and the undertaking of the Company set forth
in the Continuing Offer.

                                       16
<PAGE>

                                    Article 7
                               General Provisions

         7.1 Governing  Law.  This  Agreement  shall be governed in all respects
by the laws of the State of Michigan.

         7.2 Entire Agreement; Amendment. This Agreement and the other documents
delivered  pursuant  hereto  constitute  the full and entire  understanding  and
agreement  between the parties with regard to the  subjects  hereof and thereof.
This  Agreement  may be amended,  waived,  discharged  or  terminated  only by a
written instrument signed by the Company,  TRG (to the extent TRG is affected by
any such amendment), and all of the Holders.

         7.3 Notices, Etc. Each Notice, demand,  request,  request for approval,
consent, approval, disapproval, designation, or other communication (each of the
foregoing  being  referred to as a "notice")  required or desired to be given or
made under this Agreement shall be in writing  (except as otherwise  provided in
this  Agreement),  and shall be effective  and deemed to have been  received (i)
when delivered in person,  (ii) when sent by confirmed  facsimile  transmission,
(iii) three days after  having been mailed by  certified  or  registered  United
States  mail,  postage  prepaid,  return  receipt  requested,  or (iv)  the next
business day after having been sent by a nationally recognized overnight mail or
courier service,  receipt requested.  Notices shall be addressed as follows: (a)
if to a Holder,  at such  Holder's  address  set forth in  Exhibit A, or at such
other address or to the telecopier number as such Holder shall have furnished to
the Company in writing, or (b) if to any assignee of any Holder, at such address
or to the telecopier number as such assignee shall have furnished the Company in
writing, or (c) if to the Designated Representative of a Holder, at such address
or to the  telecopier  number as such Holder shall have furnished the Company in
writing,  or (d) if to the Company,  at the address of its  principal  executive
offices and addressed to the attention of the  Company's  Secretary,  or at such
other address or to the telecopier number as the Company shall have furnished to
each  Holder or  assignee  or  Designated  Representative.  Any  notice or other
communication  required to be given  hereunder to a Holder in connection  with a
Tender may instead be given to the Designated Representative(s) of such Holder.

         7.4  Counterparts.  This  Agreement  may be  executed  in any number of
counterparts,  each of which may be executed by fewer than all of the parties to
this Agreement but all of which together shall constitute one instrument.

         7.5  Severability.  In the event that any  provision of this  Agreement
becomes or is declared  by a court of  competent  jurisdiction  to be illegal or
unenforceable  this  Agreement  shall  continue in full force and effect without
said provision,  unless the limitation of such provision  materially changes the
economic benefit of this Agreement to any party.

         7.6 Word Meanings. The words such as "herein," "hereinafter," "hereof,"
and  "hereunder"  refer  to this  Agreement  as a  whole  and  not  merely  to a
subdivision in which such words appear unless the context otherwise requires.

         7.7 Assignee.  Whenever in this Agreement the term  "assignee" is used,
it shall  include  each  assignee,  transferee,  distributee  (whether or not in
liquidation of the distributing  Person,  and including,  by way of illustration
and not limitation,  a partner in TRAP to whom Units of Partnership Interest are
assigned  pursuant to a distribution  by TRAP to its  partners),  assignee of an
assignee through one or more predecessor assignments and, by way of illustration
and not limitation, each Person who becomes an assignee as a result of a secured
creditor exercising its rights under a security agreement and/or applicable law,
in each case, whether the assignment  creating the assignee was effected with or
without  consideration,  by gift or bequest,  by operation of law, or otherwise.
The terms "assign", "assigned", and "assignment" shall be similarly construed.

                                       17
<PAGE>

         7.8  Section  Titles. Section titles are for  descriptive purposes only
and shall not  control or alter the meaning of this Agreement.

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

                                    TAUBMAN CENTERS, INC.

                                    By:      /s/ Lisa A. Payne
                                            ---------------------------
                                    Its:     Executive Vice President and Chief
                                             Financial Officer

                                    THE TAUBMAN REALTY GROUP LIMITED PARTNERSHIP

                                    By:      Taubman Centers, Inc., Managing
                                             General Partner

                                    By:      /s/ Lisa A. Payne
                                            ---------------------------
                                    Its:     Executive Vice President and Chief
                                             Financial Officer

                                    /s/ A. Alfred Taubman
                                    ---------------------------
                                    A. ALFRED TAUBMAN

                                    /s/ A. Alfred Taubman
                                    ---------------------------
                                    A.  Alfred Taubman, not individually, but as
                                    Trustee of the A.  Alfred  Taubman  Restated
                                    Revocable Trust,  as  amended  and  restated
                                    in its entirety by Instrument  dated January
                                    10, 1989 (as the same has   been   and   may
                                    hereafter be amended from time to time)

                                    TRA PARTNERS

                                    By:      /s/ A. Alfred Taubman
                                             ---------------------------
                                    Its:     Chairman

                                       18
<PAGE>SECOND AMENDED AND RESTATED CONTINUING OFFER

         For  valuable  consideration,  the  receipt  and  sufficiency  of which
Taubman Centers,  Inc., a Michigan  corporation  (the "Company"),  acknowledges,
effective  as of May 16,  2000,  the Company  hereby  amends and restates in its
entirety the Company's offer (as amended and restated,  this "Continuing Offer")
to each  Initial  Offeree (as  defined  below) and each  Designated  Offeree (as
defined below) to exchange any or all  Partnership  Interests (as defined below)
or Rights (as defined below) owned by each such person in exchange for shares of
Common Stock (as defined  below) upon the terms and  conditions set forth below.
This Continuing  Offer  supersedes a similar offer  originally made November 30,
1992, which such offer was amended and restated in its entirety  effective as of
September 30, 1997. The purpose of amending and restating this Continuing  Offer
is to make  technical  revisions  to  accurately  reflect the impact of the 1998
reorganization described as follows:

         A.  On  September   23,  1998,   the  Company's   principal   operating
partnership,  The Taubman Realty Group Limited  Partnership,  a Delaware limited
partnership  ("TRG") formed two limited  liability  companies (the  "Companies")
pursuant to the Delaware Limited  Liability Company Act and, in exchange for all
of the  membership  interests  in  each  of the  Companies,  contributed  to the
Companies all of its right, title, and interest in and to certain of its assets,
subject to certain liabilities.

         B. On September 30, 1998, TRG distributed  TRG's entire interest in the
Companies  to  GMPTS  Limited   Partnership   ("GMPTS"),   a  Delaware   limited
partnership, in redemption of GMPTS's entire interest in TRG.

         The  Company  now  wishes to amend and  restate  in its  entirety  this
Continuing  Offer,  to reflect the redemption of GMPTS's entire  interest in TRG
and certain related changes made to the Partnership  Agreement  (defined below).
The  Company has  determined  that this  modification  of the prior offer is not
adverse to the offerees of such prior offer.

         1.       Definitions.

         In this  Continuing  Offer,  whenever  the  context so  indicates,  the
singular or plural number, and the masculine,  feminine,  or neuter gender shall
each be deemed to include  the other,  the terms  "he",  "his," and "him"  shall
refer to an Initial  Offeree or a Designated  Offeree,  and the following  terms
shall have the indicated meanings:

         "Act" means the Securities  Act of 1933, as amended,  and the rules and
regulations of the Commission under such Act, all as the same shall be in effect
at the relevant time.

         "Actually"   means,   with  respect  to  holding  or  owning  Units  of
Partnership Interest,  those Units of Partnership Interest with respect to which
the  referenced  Person is (i) set forth on the books and  records of TRG as the
owner thereof (the "Record  Partner") or (ii) a designee of a Record  Partner as
provided in Section 5.2(c) of the Partnership Agreement,  in either case without
regard to Beneficial Ownership or Constructive Ownership.

         "Beneficial  Ownership" means ownership of shares of Capital Stock (or,
for purposes of the definitions of "Actually" and "Eligible Holder," Partnership
Interests) (i) by a Person who owns such shares of Capital Stock (or Partnership
Interests)  in his own name or is treated as an owner of such  shares of Capital
Stock (or  Partnership  Interests)  constructively  through the  application  of
Section 544 of the Code, as modified by Sections  856(h)(1)(B)  and 856(h)(3)(A)
of the Code; or (ii) by a person who falls within the

<PAGE>

definition of "Beneficial  Owner" under Section 776(4) of the Michigan  Business
Corporation  Act.  The  terms  "Beneficial   Owner",   "Beneficially  Owns"  and
"Beneficially Owned" shall have the correlative meanings.

         "Board of  Directors"  means the Board of  Directors of the Company and
any  Committee of the Board of Directors  established  pursuant to the Bylaws of
the Company with specific authority in respect of this Continuing Offer given to
such Committee.

         "Business  Day" means any Day on which the New York Stock  Exchange  is
open for trading.

         "Capital  Stock"  means  the  Common  Stock  and the  Preferred  Stock,
including  shares of Common Stock and  Preferred  Stock that have become  Excess
Stock.

         "Cash  Tender  Agreement"  means the Amended and  Restated  Cash Tender
Agreement,  dated as of May 16, 2000,  among the Company and certain  holders of
Partnership Interests.

         "Code" means the Internal Revenue Code of 1986, as the same shall be in
effect at the relevant time.

         "Common  Stock" means the Common  Stock of the Company,  par value $.01
per share.

         "Company" means Taubman Centers, Inc., a Michigan corporation.

         "Constructive  Ownership"  means  ownership of shares of Capital  Stock
(or,  for purposes of the  definitions  of  "Actually"  and  "Eligible  Holder,"
Partnership  Interests)  by a Person who owns such  shares of Capital  Stock (or
Partnership  Interests)  in his own name or would be treated as an owner of such
shares of Capital Stock (or Partnership  Interests)  constructively  through the
application of Section 318 of the Code, as modified by Section  856(d)(5) of the
Code. The terms "Constructive Owner", "Constructively Owns", and "Constructively
Owned" shall have the correlative meanings.

         "Day" means each calendar day, including Saturdays,  Sundays, and legal
holidays;  however, if the Day on which a period of time for consent or approval
or other  action ends is not a Business  Day,  such period shall end on the next
Business Day.

         "Designated  Offeree"  means (i) each  Person  (other  than an  Initial
Offeree) who Actually  holds Units of  Partnership  Interest,  provided that the
Company, upon the request of said Person, designates said Person in writing as a
Designated  Offeree and provided that said Person would be an Eligible Holder at
the time such person is so  designated  assuming this  Continuing  Offer were to
extend to such Units of Partnership  Interest  Actually held by said Person,  or
(ii) each  assignee of a Person  described  in (i) above in this  definition  of
Designated Offeree, but only if such assignee would be an Eligible Holder at the
time of such  assignment  assuming this  Continuing  Offer were to extend to the
Units of Partnership Interest acquired through such assignment.

         "Determination" shall be as defined in Section 2 hereof.

         "Eligible  Assignee  Units" means those Units of  Partnership  Interest
acquired and Actually  held from time to time by Initial  Offerees or Designated
Offerees  provided that such Initial  Offerees or Designated  Offerees  would be
Eligible  Holders as of the time of such  acquisition  assuming this  Continuing
Offer  were to extend to the  Units of  Partnership  Interest  so  acquired  and
Actually held.

                                       2
<PAGE>

         "Eligible  Holder"  means at the  relevant  time the  holder (or if the
holder is not the owner for Federal income tax purposes, such owner) of Units of
Partnership  Interest  who if he were to  exchange  for  shares of Common  Stock
pursuant to this Continuing Offer each Unit of Partnership Interest that is both
(i) Beneficially  Owned or  Constructively  Owned by him (including each Unit of
Partnership  Interest that is subject to an Incentive  Option or Rights Actually
held by him)  and  (ii)  subject  to  this  Continuing  Offer,  would  not  then
Beneficially  Own or  Constructively  Own, or by reason of its  Actually  owning
Units of Partnership  Interest would cause another Person to Beneficially Own or
Constructively  Own,  shares of Capital Stock in excess of the Ownership  Limit,
provided,  however,  if such holder is a Look Through Entity,  such Look Through
Entity's Beneficial Ownership or Constructive Ownership may exceed the Ownership
Limit  but in no event may such  Look  Through  Entity  directly  or  indirectly
(without taking into account the ownership of Units of Partnership Interest) own
in excess of 9.9% in value of the outstanding shares of Capital Stock,  provided
further,  however,  the  Managing  General  Partner  shall exempt a Look Through
Entity  from the  requirements  of clause  (ii) of this  definition  of Eligible
Holder if (a) such Look Through Entity is a bank chartered under the laws of the
United  States or any state of the United States or is a United States branch of
a  foreign  bank,  and (b) TRG has no  reasonable  reason to  believe  after the
receipt of the written  affirmation and  undertaking  required to be provided by
the definition of Look Through Entity that such Look Through Entity would not be
an Eligible  Holder.  In measuring  the  Beneficial  Ownership  or  Constructive
Ownership for this purpose, the Excess Stock Provisions shall be disregarded.

         "Excess  Stock"  means  shares of Common  Stock and shares of Preferred
Stock that have been  automatically  converted to Excess  Stock  pursuant to the
provisions  of Item (iii) of  Subsection  (d) of Section 2 of Article III of the
Company's Amended and Restated  Articles of  Incorporation,  as in effect at the
relevant time.

         "Excess Stock  Provisions"  means the  provisions of Article III of the
Amended and Restated  Articles of Incorporation of the Company,  as in effect at
the relevant time, relating to Excess Stock.

         "Exchange  Act"  shall mean the  Securities  Exchange  Act of 1934,  as
amended, and the rules and regulations of the Commission thereunder,  all as the
same shall be in effect at the relevant time.

         "HSR" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

         "Incentive  Option"  means an option  granted  pursuant to the TRG 1992
Incentive  Option Plan,  as Amended and Restated  Effective as of September  30,
1997,  to acquire a  Partnership  Interest or any future plan  providing for the
granting to employees of options in respect of Units of Partnership Interest.

         "Initial  Offeree"  means (i) each Person who  Actually  holds Units of
Partnership  Interest  as of the date of this  Continuing  Offer,  but only with
respect to (x) Units of Partnership  Interest held Actually by such Person as of
the date of this  Continuing  Offer,  provided  such Person would be an Eligible
Holder  on the date of this  Continuing  Offer  with  respect  to such  Units of
Partnership Interest Actually held by such Person assuming this Continuing Offer
were to extend to such Units of Partnership Interest,  and (y) Eligible Assignee
Units,  in either case  provided  that such Person is  identified  on Schedule A
hereto,  (ii) each  assignee of an Initial  Offeree,  but only if such  assignee
would  be an  Eligible  Holder  at the  time of such  assignment  assuming  this
Continuing  Offer  were to  extend  to such  Units of  Partnership  Interest  so
assigned,  provided,  however,  the  Initial  Offeree  assigning  such  Units of
Partnership  Interest  shall have the right to provide in such  assignment  that
such assignee shall not be an Initial  Offeree,  (and,  therefore,  the Units of
Partnership  Interest so  assigned,  while held by such  assignee,  shall not be
subject  to this  Continuing  Offer),  (iii) each  Person  who is, or  hereafter
becomes,  a holder of an  Incentive  Option or Rights,  but only if such  person
would be an Eligible  Holder at the time of becoming a holder of such  Incentive
Option or Rights

                                       3
<PAGE>

assuming this Continuing  Offer were to extend to the Incentive Option or Rights
so  acquired,  (iv)  each  Person  who  hereafter  becomes  a holder of Units of
Partnership  Interest  pursuant to the  exercise by such Person of an  Incentive
Option,  but only if such Person would be an Eligible Holder at the time of such
exercise  assuming  this  Continuing  Offer  were  to  extend  to the  Units  of
Partnership  Interest acquired through such exercise,  or (v) each assignee of a
holder of Units of Partnership  Interest as of the date hereof, but only if such
assignee  would be an Eligible  Holder at the time of such  assignment  assuming
this  Continuing  Offer  were to  extend to the  Units of  Partnership  Interest
acquired through such assignment.

         "Letter  of  Transmittal"  means  the form of letter  attached  to this
Continuing  Offer pursuant to which an Initial  Offeree or a Designated  Offeree
may tender his Partnership  Interests or Rights in exchange for shares of Common
Stock.

         "Look  Through  Entity"  shall  mean  any  Person  that  (i)  is not an
individual  or an  organization  described in Sections  401(a),  501(c)(17),  or
509(a) of the Code or a portion of a trust  permanently  set aside or to be used
exclusively  for the  purposes  described  in  Section  642(c)  of the Code or a
corresponding  provision of a prior income tax law, and (ii)  provides  TRG, not
less than ten days prior to becoming a holder of Units of Partnership  Interest,
with (a) a written affirmation and undertaking,  subject only to such exceptions
as  are  acceptable  to  TRG  in  its  sole  discretion,  that  (w) it is not an
organization described in Sections 401(a), 501(c)(17) or 509(a) of the Code or a
portion  of a trust  permanently  set  aside or to be used  exclusively  for the
purposes described in Section 642(c) of the Code or a corresponding provision of
a prior income tax law, (x) assuming that this  Continuing  Offer were to extend
to Units of Partnership  Interest held by such Person,  after the application of
the rules for determining stock ownership, as set forth in Section 544(a) of the
Code,  as modified by Sections  856(h)(1)(B)  and  856(h)(3)(A)  of the Code, no
"individual"  would  own,   Beneficially  or   Constructively,   more  than  the
then-applicable Ownership Limit, such ownership,  solely for the purpose of this
clause (x) (but not for determining  whether such  "individual" is in compliance
with the Ownership Limit for any other purpose), to be determined by taking into
account only such "individual's"  Beneficial and Constructive  Ownership derived
solely from such Person,  (y) based on such Person's actual  knowledge,  no such
"individual"  would  not  qualify  as an  Eligible  Holder,  and (z) it does not
Constructively  Own 10% or more of the equity of any tenant with respect to real
property  from which the  Company or TRG  receives or accrues any rent from real
property,  and (b) such other information  regarding the Person that is relevant
to the Company's  qualification to be taxed as a real estate investment trust as
defined in Section 856 of the Code as TRG may reasonably request.

         "Managing  General  Partner" means the Managing  General Partner of TRG
pursuant to the Partnership Agreement.

         "Offeree" means an Initial Offeree or a Designated Offeree.

         "Ownership Limit" means the Ownership Limit as set forth in the Amended
and Restated Articles of Incorporation of the Company at the relevant time.

         "Partnership  Agreement"  means The Amended and  Restated  Agreement of
Limited  Partnership  of The Taubman  Realty Group  Limited  Partnership,  dated
November 30, 1992,  as amended by a First  Amendment to The Amended and Restated
Agreement  of  Limited   Partnership   of  The  Taubman   Realty  Group  Limited
Partnership,  dated as of September  30, 1997,  as further  amended from time to
time.

         "Partnership Interest" means an interest, as a Partner, in TRG, as such
terms are defined in the Partnership Agreement.

                                       4
<PAGE>

         "Partnership   Interest   Certificate"   means  a  certificate  of  TRG
representing one or more Units of Partnership Interest.

         "Person" or "Persons"  means an individual,  a partnership  (general or
limited), corporation, limited liability company, joint venture, business trust,
cooperative, association, or other form of business organization, whether or not
regarded  as a legal  entity  under  applicable  law,  a trust  (inter  vivos or
testamentary),  an  estate of a  deceased,  insane,  or  incompetent  person,  a
quasi-governmental  entity,  a government  or any agency,  authority,  political
subdivision, or other instrumentality thereof, or any other entity.

         "Preferred  Stock" means the shares of preferred stock that the Company
may issue in accordance  with the terms of its Amended and Restated  Articles of
Incorporation,  in one or more  series  having  such  rights,  preferences,  and
priorities as the Company's Board of Directors may determine from time to time.

         "Record Partner" is defined in the definition of Actually.

         "Restricted Offeree" is defined in Section 3 of this Continuing Offer.

         "Rights" means  Incentive  Options that have been  exercised,  provided
that all payments with respect to the exercise have been fully paid to TRG.

         "Settlement Date" is defined in Section 3 of this Continuing Offer.

         "Transfer  Determination"  has the  same  meaning  as set  forth in the
Partnership Agreement.

         "TRG" means The Taubman  Realty Group Limited  Partnership,  a Delaware
limited partnership.

         "Units of Partnership  Interest" means the units into which Partnership
Interests are divided.

         2.       Terms of this Continuing Offer.

         Upon the terms and subject to the conditions of this Continuing  Offer,
the Company will  exchange  shares of Common Stock for  outstanding  Partnership
Interests or Rights owned by an Initial Offeree or a Designated Offeree that are
properly  tendered.  This  Continuing  Offer may not be withdrawn,  changed,  or
modified by the  Company,  without  the prior  written  consent of each  Initial
Offeree and Designated Offeree, except that a change or modification that is for
the  benefit  of, or not  adverse to the rights of,  the  Initial  Offerees  and
Designated Offerees may be made unilaterally by the Company. Notwithstanding the
foregoing,  a change  or  modification  that is only  adverse  to the  rights of
certain  Initial  Offerees or  Designated  Offerees  requires the prior  written
consent only of the adversely affected Initial Offerees or Designated Offerees.

         No tendering Initial Offeree or Designated Offeree will have any rights
as a shareholder  of the Company until such time as that person becomes a holder
of record of shares of Common Stock.

         3.       Acceptance for Payment and Payment for  Partnership  Interests
 or Rights.

         Upon the terms and subject to the conditions of this Continuing  Offer,
the Company will purchase and pay for  Partnership  Interests or Rights properly
tendered  at the rate of one share of Common  Stock  for each  tendered  Unit of
Partnership  Interest (including each Unit of Partnership Interest in respect of
a

                                       5
<PAGE>

properly  tendered  Right).  Each  Offeree  tendering  outstanding   Partnership
Interests  (but not  Rights)  shall pay to the  Company on the  Settlement  Date
(defined below), in cash, an amount equal to the sum of (a) minus (b), where (a)
equals the number of tendered Units of Partnership  Interest (excluding Units of
Partnership  Interest in respect of tendered Rights) multiplied by the Company's
then-current  per  share  quarterly  dividend,  and (b)  equals  the  amount  of
distributions  (as  determined by the Company)  that the Company can  reasonably
expect to receive from TRG under  Section  5.2(a) of the  Partnership  Agreement
with  respect  to  the  tendered  Units  of  Partnership  Interest  between  the
Settlement Date and the next record date for the Company's quarterly dividend on
the Common  Stock.  The Company  will  purchase  and pay for  properly  tendered
Partnership  Interests or Rights on the date (the "Settlement Date") that is the
later  of:  (i) the  expiration  of three  Business  Days from the date that the
Company  receives  the tender of the  Partnership  Interests or Rights in proper
form and  meeting  all of the  requirements  of this  Continuing  Offer (or such
shorter period that is the then prevailing  settlement  period for trades on the
New York Stock Exchange),  and (ii) the expiration or termination of the waiting
period  applicable to each tender,  if any, under the HSR. The Company agrees to
use its best  efforts  to  obtain an early  termination  of the  waiting  period
applicable to each tender, if any, under HSR.  Furthermore,  each tender and the
issuance of Common Stock with  respect  thereto will be subject to any change in
securities or other  applicable law imposing limits or conditions on such tender
or the  issuance  of Common  Stock with  respect to such  tender.  In all cases,
payment  for the  Partnership  Interests  or Rights  tendered  pursuant  to this
Continuing  Offer will be made only after  timely  receipt by the Company of the
Partnership Interest Certificate or a copy of the agreement evidencing the grant
of the Rights,  together  with  evidence of exercise and payment with respect to
the exercise, a properly completed and duly executed Letter of Transmittal,  and
any other documents required by the Letter of Transmittal.

         Notwithstanding   the  foregoing,   the  maximum  number  of  Units  of
Partnership Interest that a person listed on Schedule B to this Continuing Offer
(each, a "Restricted Offeree") may tender under this Continuing Offer during any
90 day period with respect to outstanding Partnership Interests Actually held or
Constructively  or  Beneficially  Owned by such Offeree (but excluding from this
restriction all Units of Partnership Interest in respect of Incentive Options or
Rights  Actually held by such Offeree)  shall not exceed the number of shares of
Common  Stock that such Offeree  would be entitled to sell under Rule  144(e)(1)
under the Act,  assuming that at the time of each sale during such 90 day period
such Restricted  Offeree is an "affiliate" (as defined in Rule 144(a)(1)) of the
Company.

         Under no  circumstances  will interest be paid by the Company by reason
of any delay in making such  issuance  of shares of Common  Stock as a result of
the conditions set forth in the preceding or following paragraph.

         Except as provided below, the Company will use its best efforts to have
and  maintain  an  effective  registration  statement  under the Act so that the
Company's  issuance of the shares of Common Stock under this Continuing Offer or
the resale of such shares by an Offeree who is not an "affiliate" (as defined in
Rule 144(a)(1) under the Securities Act) of the Company will be registered under
the Act;  however,  the  Company  shall  not be  required  to  maintain  such an
effective  registration  statement  for the  use of the  persons  identified  on
Schedule B to this Continuing  Offer.  Anything in this Continuing  Offer to the
contrary notwithstanding, the Company shall not be required to accept any tender
or issue any Common  Stock at any time if to do so would cause any  violation of
the Act or the Exchange Act or any applicable blue sky or other state securities
or real estate syndication laws.

                                       6
<PAGE>

         4.       Procedure for Tendering Partnership Interests or Rights.

         Subject to the  conditions  set forth in this  Continuing  Offer,  each
tendering  Initial  Offeree  or  Designated   Offeree  may  tender  any  or  all
Partnership  Interests  or Rights owned by such  Initial  Offeree or  Designated
Offeree by  delivering  to the Company,  at 200 East Long Lake Road,  Suite 300,
Bloomfield  Hills,  Michigan  48304 (or such other  address as the Company shall
provide in writing to each Initial Offeree and Designated  Offeree), a completed
and duly executed Letter of Transmittal and any other documents  required by the
Letter of  Transmittal.  Each tendering  Initial  Offeree or Designated  Offeree
shall  simultaneously  deliver to TRG,  at 200 East Long Lake  Road,  Suite 300,
Bloomfield Hills,  Michigan 48304 (or such other address as TRG shall provide in
writing to each  Initial  Offeree or  Designated  Offeree),  a copy of such duly
executed Letter of Transmittal and any other documents required by the Letter of
Transmittal.

         If a Transfer  Determination  shall not have already  been  obtained or
deemed obtained by the tendering  Initial  Offeree or Designated  Offeree at the
time of the tender  (i.e.,  at the time of receipt by the Company of a Letter of
Transmittal),  then TRG (within three  Business Days of receipt by TRG of a copy
of a Letter of Transmittal from an Initial Offeree or Designated  Offeree) shall
provide,  if it is able to then provide  pursuant to the Partnership  Agreement,
each such  Person  and the  Company  with a Transfer  Determination.  A Transfer
Determination  will be deemed to have been  provided if not refused by a writing
delivered  to the  Company and each  applicable  Initial  Offeree or  Designated
Offeree  within  such  three  Business  Day  period.  If an  Initial  Offeree or
Designated Offeree (i) is refused a Transfer Determination, such Person shall be
deemed to have  withdrawn  the tender in its entirety or (ii) receives a limited
Transfer  Determination,  such  Person  shall be deemed to have  withdrawn  such
amount of  Partnership  Interests  or Rights as is necessary in order to satisfy
the limited Transfer Determination.

         Unless an exception  applies under applicable law and regulations,  the
Company  will be required to  withhold,  and will  withhold,  31% (or such other
amount as subsequent  law may require) of the gross proceeds  (including  dollar
equivalent  of shares of Common  Stock) paid to a tendering  Initial  Offeree or
Designated  Offeree pursuant to this Continuing Offer unless the Initial Offeree
or  Designated  Offeree  provides  his  tax   identification   number  (employer
identification  number or Social Security Number) and certifies that such number
is  correct.  Unless  such  an  exception  exists  and  is  proved  in a  manner
satisfactory  to the  Company,  each  tendering  Initial  Offeree or  Designated
Offeree  should,  therefore,  complete and sign the main  signature  form on the
Letter of Transmittal  and sign the Substitute  Form W-9 included as part of the
Letter of  Transmittal,  so as to  provide  the  information  and  certification
necessary to avoid backup withholding.

         The tender of Partnership Interests or Rights pursuant to the foregoing
will  constitute a binding  agreement  between the tendering  Initial Offeree or
Designated  Offeree and the Company upon the terms and subject to the conditions
of this Continuing  Offer and will not be subject to withdrawal or change except
as provided in Section 2 or this Section 4 of this Continuing Offer.

         All questions as to the validity and form of any tender of  Partnership
Interests or Rights will be  determined  in the sole  discretion of the Company,
which determination shall be final and binding.

         5.       Rights as a Partner.

         Until  the  Settlement   Date,  each  tendering   Initial  Offeree  and
Designated  Offeree shall  continue to own his respective  tendered  Partnership
Interests  or  Rights,  and will  continue  to be  treated as the holder of such
tendered  Partnership  Interests or Rights for all  purposes of the  Partnership
Agreement,  including,  without  limitation,  for  purposes of voting,  consent,
allocations and distributions (subject only to reasonable

                                       7
<PAGE>

accounting  conventions adopted by TRG for purposes of determining the partners'
varying  percentage  interests  in  TRG  during  the  taxable  year).   Tendered
Partnership  Interests  will be  transferred to the Company only upon receipt by
the tendering Initial Offeree or Designated Offeree of shares of Common Stock in
payment in full therefor.

         6.       Covenants of TRG.

         In  addition  to  its  obligations  contained  in  Section  4  of  this
Continuing  Offer,  TRG agrees to promptly  notify the Company in writing of the
name of each holder of an Incentive Option who becomes a holder of Rights.

         7.       Miscellaneous.

                  (a)  This  Continuing  Offer shall be governed in all respects
by the laws of the State of Michigan.

                  (b)  This  Continuing  Offer  and the  Letter  of  Transmittal
constitute  the full and entire  understanding  and agreement with regard to the
subjects of this Continuing Offer and the Letter of Transmittal.

                  (c)  Each  notice,  demand,  request,  request  for  approval,
consent, approval, disapproval,  designation or other communication (each of the
foregoing  being  referred  to herein as a  "notice")  required or desired to be
given or made  under  this  Continuing  Offer  shall be in  writing  (except  as
otherwise  provided in this Continuing Offer), and shall be effective and deemed
to have been received (i) when delivered in person,  (ii) when sent by facsimile
transmission  with  receipt  acknowledged,  (iii)  three days after  having been
mailed by certified or registered  United States mail,  postage prepaid,  return
receipt  requested,  or (iv) the next  business  day after having been sent by a
nationally  recognized overnight mail or courier service,  receipt requested (a)
if to an Initial Offeree, at such Initial Offeree's address set forth in Exhibit
A or as shall have been  furnished  by such  Initial  Offeree to the  Company in
writing,  or at such other  address  or to the  telefax  number as such  Initial
Offeree shall have furnished to the Company in writing, (b) if to any Designated
Offeree,  at such address or to the telefax  number as such  Designated  Offeree
shall have  furnished the Company in writing,  or (c) if to the Company,  at the
address of its principal executive offices and addressed to the attention of the
Treasurer,  or at such other  address or to the  telefax  number as the  Company
shall have furnished to each Initial Offeree or Designated Offeree.

                  (d) In the event that any provision of this  Continuing  Offer
becomes or is  declared  by a court of  competent  jurisdiction  to be  illegal,
unenforceable,  or void, this Continuing  Offer shall continue in full force and
effect  without said  provision;  provided  that no such  severability  shall be
effective if it materially changes the economic benefit of this Continuing Offer
to any Person.

                  (e)  The  words   "herein",   "hereinafter",   "hereof",   and
"hereunder"  refer to this  Continuing  Offer  as a whole  and not  merely  to a
subdivision in which such words appear unless the context otherwise requires.

                  (f) Whenever in this Agreement the term "assignee" is used, it
shall  include  each  assignee,  transferee,  distributee  (whether  or  not  in
liquidation of the distributing Person),  assignee of an assignee through one or
more  predecessor  assignments  and, by way of illustration  and not limitation,
each Person who becomes an assignee as a result of a secured creditor exercising
its rights  under a security  agreement  and/or  applicable  law,  in each case,
whether the  assignment  creating  the  assignee  was  effected

                                       8
<PAGE>

with or without  consideration,  by gift or  bequest,  by  operation  of law, or
otherwise. The terms "assign",  "assigned",  and "assignment" shall be similarly
construed.

                  (g) Section titles are for descriptive purposes only and shall
not  control or alter the meaning of this  Continuing  Offer as set forth in the
text.

                                           TAUBMAN CENTERS, INC.

                                           By:      /s/ Lisa A. Payne
                                                    ----------------------------
                                           Its:     Executive Vice President and
                                                    Chief Financial Officer

         The undersigned  executes this Continuing Offer for the sole purpose of
agreeing to be bound by the  provisions  of the second  paragraph  of Section 4,
Section 5, and Section 6 of this Continuing Offer.

                                           THE TAUBMAN REALTY GROUP LIMITED
                                           PARTNERSHIP

                                           By:      Taubman Centers, Inc.

                                           Its:     Managing General Partner

                                           By:      /s/ Lisa A. Payne
                                                    ----------------------------
                                           Its:     Executive Vice President and
                                                    Chief Financial Officer

                                       9
<PAGE>

                                   SCHEDULE A

Robert S. Taubman
The Taubman Company
200 E. Long Lake Road
Suite 300
Bloomfield Hills, MI  48304

William S. Taubman
The Taubman Company
200 E. Long Lake Road
Suite 300
Bloomfield Hills, MI  48304

Gayle T. Kalisman
117 E. 72nd Street
Apt. 10
New York, NY  10021

Burkhardt Family Trust
c/o Joseph E. Burkhardt
5025 S. McCarron Boulevard
Suite 356
Reno, NV  89502

Leonard Dobbs
117 East 57th Street
Apt. 38B
New York, NY  10022

Gloria Dobbs
c/o Robert Ganer, CPA
Ganer & Ganer P.C.
1995 Broadway
New York, NY  10023

Max M. Fisher,  acting not individually  but as Trustee,  or the successor(s) in
trust,  of The Max M. Fisher  Revocable  Trust,  as amended and  restated in its
entirety by Instrument  dated May 11, 1992 (as the same may be amended from time
to time)
2700 Fisher Building
27th Floor
Detroit, Michigan 48202

Richard P. Kughn
Kughn Enterprises
22842 Orchard Lake Road
Farmington, Michigan  48336-3223

<PAGE>

The Kughn Real Properties Co.
22842 Orchard Lake Road
Farmington, Michigan  48336-3223

Robert C. Larson
The Taubman Company
200 E. Long Lake Road
Suite 300
Bloomfield Hills, MI  48304

Marvin G. Leech
691 Christina Drive
Incline Village, NV  89450

Margaret Putnam
1361 Cedar Bend Drive
Bloomfield Hills, MI 48302

Avner and Gloria Frank Naggar Living Trust
c/o Avner Naggar
3205 Ralston Avenue
Hillsborough, CA  94010

Michaela Naggar Bourne
10 Pilgrim Road
Short Hills, NJ  07078

Auri Neal Naggar
336 Valdez
Half Moon Bay, CA  94019

Ron Naggar
140 East Terrace
Fresno, CA  93704

David Naggar
3205 Ralston Avenue
Hillsborough, CA  94010

Tamara Naggar
15444 Wyandotte
Van Nuys, CA  91406

Sidney R. Unobskey
2770 Green Street
San Francisco, CA  94123

<PAGE>

Charles Carlise
87 Biltmore Estates
Phoenix, Arizona  85016

El Camino Associates
Attn:  Charles Carlise
87 Biltmore Estates
Phoenix, Arizona  85016

Grossman/Southwest Associates Limited Partnership
c/o Grossman Company Properties
Attn:  Samuel M. Grossman
3101 North Central Avenue, Suite 1390
Phoenix, Arizona  85012

Southwest Associates
c/o Paul Holste
Grossman Company Properties
3101 North Central Avenue, Suite 1390
Phoenix, Arizona  85012

Pacific Telesis Group Master Pension Trust
Attn:  Barbara McDowell
Corporate Manager - Alternative Investments
175 E. Houston, Room 7 C 8
San Antonio, Texas  78205

<PAGE>

                                   SCHEDULE B

Robert S. Taubman

William S. Taubman

Gayle T. Kalisman

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