Document:

Operating Agreement of Taubman Land Associates

     

     

    Exhibit
      10
      (ab)

    

    

    

    

    

    

    

    

    

    OPERATING
      AGREEMENT OF

    

    TAUBMAN
      LAND ASSOCIATES LLC

    

    a
      Delaware
      limited liability company

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    OPERATING
      AGREEMENT OF

    

    TAUBMAN
      LAND ASSOCIATES LLC

    

    TABLE
      OF
      CONTENTS

    

    

    ARTICLE
      I
      ORGANIZATION 

     

    1.1 Formation 

     

    1.2 Name 

     

    1.3 Purposes
      and
      Powers 

     

    1.4 Term 

     

    1.5 Principal
      Place of
      Business; Agent For Service of Process 

     

    1.6 Filing
      of
      Certificates 

     

    1.7 Nature
      of
      Membership Interests 

     

    1.8 Liability
      of
      Members 

     

    1.9 Taxation
      as a
      Partnership 

     

    1.10 Representations,
      Warranties, and Covenants

     

    1.11 Authority
      and
      Liability of Members

     

    ARTICLE
      II
      DEFINITIONS 

     

    ARTICLE
      III CAPITAL
      ACCOUNTS; CAPITAL CONTRIBUTIONS 

     

    3.1 Members’
Capital
      Accounts 

     

    3.2 Percentage
      Interests 

     

    3.3 Capital
      Contributions 

     

    3.4 Additional
      Funds;
      Anticipated Financing 

     

    3.5 Restrictions
      Relating to Capital 

     

    ARTICLE
      IV
      ALLOCATIONS OF PROFIT AND LOSS AND DISTRIBUTION OF AVAILABLE CASH

     

    4.1 Members’
Shares
      of
      Profits 

     

    4.2 Members’
Shares
      of
      Losses 

     

    4.3 Special
      Allocations 

     

    4.4 Allocation
      for
      Federal Income Tax Purposes 

     

    4.5 Distributions
      of
      Available Cash 

     

    4.6 Bank
      Acounts

     

    4.7 Books
      of Account
      and Reports

     

    4.8 Tax
      Returns and
      Audits

     

    
      
        
          i

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.9 Company
      Fiscal
      Year

     

    ARTICLE
      V
      MANAGEMENT; EXECUTION OF LEGAL INSTRUMENTS; OTHER VENTURES 

     

    5.1 Management;
      Authority of the Managing Member; Limitations on Authority 

     

    5.2 Response
      of the
      Members

     

    5.3 Compensation
      of
      Members and Affiliates

     

    5.4 Authority
      for
      Execution of Instruments

     

    5.5 Management
      Agreement

     

    5.6 Indemnification
      of
      the Members; Limit on Liability

     

    5.7 Bank
      Accounts

     

    5.8 Activities
      and
      Competing Ventures of the Members and Affiliates

     

    5.9 Tax
      Matters
      Member

     

    5.10 Specific
      Provisions
      Relating to Real Estate Investment Trust Status

     

    ARTICLE
      VI
      TRANSFERS OF MEMBERSHIP INTERESTS 

     

    6.1 General
      Restrictions on Dispositions

     

    6.2 Subsitution
      of
      Members

     

    6.3 Intentionally
      Omitted

     

    6.4 Right
      of First
      Refusal

     

    6.5 Buy-Sell

     

    6.6 Sale
      of the
      Property

     

    6.7 Closings

     

    6.8 Pledge
      of
      Membership Interests

     

    ARTICLE
      VII
      DISABLING EVENT IN RESPECT OF A MEMBER; SUCCESSION OF INTERESTS

     

    7.1 Disabling
      Event in
      Respect of a Member

     

    7.2 Single
      Respresentative to Act on Behalf of Successors

     

    7.3 Succession
      by
      Individuals to Membership Interests of Members

     

    7.4 References
      to
      "Member" and "Members" in the Event of Successors

     

    7.5 Waiver
      of
      Dissolution if Transfer is in full Compliance with Agreement; Negation of Right
      to Dissolve Except as Herein Provided; No Withdrawal

     

    7.6 Determination
      of
      Fair Market Value of Membership Interests

     

    ARTICLE
      VIII
      WINDING UP, LIQUIDATION, AND TERMINATION OF THE COMPANY

     

    8.1 Liquidation
      of the
      Assets of the Company and Disposition of the Proceeds Thereof

     

    8.2 Cancellation
      of
      Certificates

     

    ARTICLE
      IX
      MISCELLANEOUS

     

    
      
        
          ii

        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.1 Exculpation

     

    9.2 Notices

     

    9.3 Applicable
      Law

     

    9.4 Word
      Meanings;
      Gender

     

    9.5 Section
      Titles

     

    9.6 Entire
      Agreement

     

    9.7 Waiver

     

    9.8 Separability
      of
      Provisions

     

    9.9 Binding
      Agreement

     

    9.10 Equitable
      Remedies

     

    9.11 Partition

     

    9.12 Amendment

     

    9.13 No
      Third Party
      Rights Created Hereby

     

    9.14 Liability
      of
      Members

     

    9.15 Additional
      Acts and
      Instruments

     

    9.16 Organization
      Expenses

     

    9.17 Agreement
      in
      Counterparts

     

    9.18 Attorneys-in-Fact

     

    9.19 Consents,
      Approval,
      Etc.

     

    

    

     

    Exhibit
      A Property
      Description

    Exhibit
      B Members
      of
      Taubman

     

    

      

       

      
        
          
            iii

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

OPERATING
      AGREEMENT OF

    

    TAUBMAN
      LAND ASSOCIATES LLC

    

    a
      Delaware
      limited liability company

    

    

    THIS
      OPERATING AGREEMENT
      (this
“Agreement”)
      is made and
      entered into effective as of October 20, 2006, by and between TRG SUNVALLEY
      LLC,
      a Delaware limited liability company (“TRG
      LLC”),
      and TILC-SV,
      LLC, a Michigan limited liability company (“Taubman”)
      (individually a
“Member”
and
      together the
“Members”).

    

    ARTICLE
      I 

    ORGANIZATION

     

    1.1  Formation.
      The Company was
      formed pursuant to the applicable laws of the State of Delaware including the
      Delaware Limited Liability Company Act as in effect in the State of Delaware,
      as
      the same may be amended from time to time (all of such laws being hereinafter
      referred to as the “Limited
      Liability Company Law”),
      by the filing
      of a Certificate of Formation of the Company with the Secretary of State of
      the
      State of Delaware on October 5, 2006. The Company shall continue upon the terms
      and conditions herein set forth.

    

    1.2  Name.
      The name of the
      Company is “Taubman Land Associates LLC.” The Company may also conduct its
      business under one or more assumed names if so authorized by the
      Members.

    

    1.3  Purposes
      and Powers.
      The Company has
      been organized pursuant to the Limited Liability Company Law and in accordance
      with this Agreement solely in order to (i) acquire, hold, own, develop, improve,
      lease, finance, refinance, sell, transfer, exchange, and encumber the fee simple
      interest in that certain property consisting of approximately sixty-eight (68)
      acres located in Concord, California, which has been ground leased in part
      to
      SunValley Shopping Center LLC, as successor-in-interest, by various assignments,
      of Del E. Webb Corporation, an Arizona corporation, and ground leased in part
      to
      Sears, Roebuck and Co., and which has been developed as a regional retail
      shopping center known as “SunValley Shopping Center” (as more particularly
      described on Exhibit
      A
      hereto, the “Property”),
      and any other
      property that the Company shall acquire, directly or indirectly, that is related
      to the Property, and (ii) engage in any other activities in respect of any
      Company assets as the Members shall determine in accordance with the Limited
      Liability Company Law or as otherwise set forth in this Agreement. The Company
      shall have all such powers as are necessary or appropriate to carry out its
      purposes as described in this Section 1.3. Except as expressly and specifically
      provided in this Agreement, no Member shall have any authority to act for,
      bind,
      commit, or assume any obligation or responsibility on behalf of the Company,
      its
      properties, or the other Member.

    

    1.4  Term.
      The term of the
      Company commenced on the date of the initial filing of the Certificate of
      Formation of the Company and shall end, and the Company shall dissolve, on
      the
      first to occur of (i) the occurrence of any event which would, under the Limited
      Liability Company Law (notwithstanding the provisions of this Agreement) or
      under the terms of this Agreement, result in the dissolution of the Company;
      provided, however, that the term of the Company shall not end upon the
      occurrence of such an event if the Company is reconstituted 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    or
      otherwise
      continues as provided in this Agreement, (ii) cessation of the business of
      the
      Company in the ordinary course, or (iii) the determination by the Members to
      dissolve the Company. No Member shall have the unilateral right to terminate
      and
      dissolve the Company prior to the end of its term as provided in this Section
      1.4.

    

    1.5  Principal
      Place of Business; Agent For Service of Process.
      The principal
      office of the Company shall be located at 200 East Long Lake Road, Bloomfield
      Hills, Michigan 48304, and/or such other address(es) as may be designated from
      time to time by the Managing Member with written notice thereof to the
      Non-Managing Member. The name and address of the registered agent for service
      of
      process on the Company in the State of Delaware is Corporation Service Company,
      2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, or such other
      Person and address as shall be designated by the Managing Member, with written
      notice to the Non-Managing Member.

    

    1.6  Filing
      of Certificates.
      The Members
      hereby agree to execute, file and record all such other certificates and
      documents, including amendments to the Certificate of Formation of the Company
      and applications to qualify as a foreign limited liability company, and to
      do
      such other acts as the Managing Member deems appropriate to comply with all
      legal requirements necessary for the formation, continuation, and operation
      of a
      limited liability company, the ownership of property, and the conduct of
      business under the laws of the State of Delaware, the State of California,
      and
      any other jurisdiction in which the Company may own property or conduct
      business.

    

    1.7  Nature
      of Membership Interests.
      Membership
      Interests in the Company shall be personal property for all purposes. All
      property owned by the Company, whether real or personal, tangible or intangible,
      shall be deemed to be owned by the Company as an entity. No Member,
      individually, shall have ownership of such property.

    

    1.8  Liability
      of Members.
      Unless otherwise
      provided by law or expressly assumed in writing, a Person who is a Member shall
      not be liable for the acts, debts or liabilities of the Company.

    

    1.9  Taxation
      as a Partnership.
      The Members
      intend that the Company shall be taxed as a partnership, pursuant to Subchapter
      K of the Code, for federal, state, and local income tax purposes, and agree
      to
      report all Company items of income, gain, loss, deduction and credit in
      accordance with that Subchapter.

    

    1.10 Representations,
      Warranties, and Covenants.

    

    (a) TRG
      LLC hereby
      represents and warrants to Taubman as follows: 

    (i) TRG
      LLC is a
      Delaware limited liability company, duly formed, validly  existing
      and in
      good standing under the laws of the State of Delaware.

    

    (ii) This
      Agreement has
      been duly authorized, validly executed, and  constitutes
      the
      binding obligation of and is enforceable against TRG LLC in  accordance
      with its
      terms. TRG LLC has full power, authority, and capacity to enter  into
      this Agreement
      and to carry out its obligations as described in this
      Agreement.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (iii) No
      litigation or
      proceedings, including, without limitation arbitration  proceedings,
      are
      pending or, to the best knowledge of TRG LLC, threatened against  TRG
      LLC or any of
      its Affiliates which, if adversely determined, could individually or in the
      aggregate have  an
      adverse effect
      on the consummation and the performance of this Agreement by  TRG
      LLC.

     

    (iv) TRG
      LLC is not a
      "foreign person” within the meaning of the Foreign Investment in Real Property
      Tax Act of 1980. as amended.

     

    (v) TRG
      LLC is wholly
      owned by TRG.

     

    (b) Taubman
      hereby
      represents, warrants, and covenants to TRG LLC as follows: 

    

    (i) Taubman
      is a
      Delaware limited liability company, duly formed, validly existing and in good
      standing under the laws of the State of Delaware.

     

    (ii) This
      Agreement has
      been duly authorized, validly executed, and constitutes the binding obligation
      of and is enforceable against Taubman in accordance with its terms. Taubman
      has
      full power, authority, and capacity to enter into this Agreement, and to carry
      out its obligations as described in this Agreement.

     

    (iii) No
      litigation or
      proceedings, including, without limitation arbitration proceedings, are pending
      or, to the best knowledge of Taubman, threatened against Taubman or any of
      its
      Affiliates which, if adversely determined, could individually or in the
      aggregate have an adverse effect on the consummation and the performance of
      this
      Agreement by Taubman.

     

    (iv) Taubman
      is not a
      "foreign person" within the meaning of the Foreign Investment in Real Property
      Tax Act of 1980, as amended.

     

    (v) The
      current members
      of Taubman are identified on Exhibit B attached hereto.

    

    (c) The
      representations, warranties, and covenant in this Section 1.10 shall survive
      the
      formation and the termination of the Company.

    

    Section1.11  Authority
      and Liability of Members. Except
      as otherwise
      provided in this Agreement, no Member shall have any authority to act for,
      bind,
      commit, or assume any obligation or responsibility on behalf of the Company,
      its
      properties, or the other Member. No Member, in its capacity as a Member under
      this Agreement, shall be responsible or liable for any indebtedness or
      obligation of the other Member, nor shall the Company be responsible or liable
      for any indebtedness or obligation of any Member, incurred either before or
      after the execution and delivery of this Agreement by such Member.

    

    ARTICLE
      II  

    DEFINITIONS

     

    “Accountant”
is
      defined in
      Section 4.8 hereof.

    

    “Adjustments”
is
      defined in
      Section 7.6 hereof.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Adjustment
      Notice”
is
      defined in
      Section 7.6 hereof.

    

    “Affiliate”
      means (i) with
      respect to any individual, any member of such individual’s Immediate Family
      and/or a Family Trust with respect to such individual, and any entity in which
      such individual and/or his Affiliate(s) own, directly or indirectly, twenty-five
      percent (25%) or more of any class of Equity Security or of the aggregate
      Beneficial Interest of all beneficial owners, or in which such individual or
      his
      Affiliate is a managing general partner or a managing member, or which is
      Controlled By such individual and/or his Affiliates, directly or indirectly;
      and
      (ii) with respect to any Person (other than an individual), any Person (other
      than an individual) which Controls, is Controlled By, or is Under Common Control
      With, such Person, and any individual who is a general partner, or managing
      member, or who directly or indirectly Controls such Person. 

    

    “Agreement”
is
      defined in the
      Preamble hereto.

    

    “Auditor”
is
      defined in
      Section 4.8 hereof.

    

    "Available
      Cash"
      means the excess
      of the Company's cash and cash equivalents over the amount of cash needed by
      the
      Company, as reasonably determined by the Managing Member, to (1) service its
      debts and obligations to Third Parties, (2) service its debts and obligations
      to
      the Members and their Affiliates as provided in this Agreement, (3) maintain
      adequate capital and reserves for, by way of example and not limitation, working
      capital and reasonably foreseeable needs of the Company, and (3) conduct its
      business and carry out its purposes.

    

    "Bankruptcy"
      as to any Person
      means (i) applying for or consenting to the appointment of, or the taking of
      possession by, a receiver, custodian, trustee, administrator, liquidator, or
      the
      like of itself or of all or a substantial portion of its assets, (ii) admitting
      in writing its inability, or being generally unable or deemed unable under
      any
      applicable law, to pay its debts as such debts become due, (iii) convening
      a
      meeting of creditors for the purpose of consummating an out-of-court
      arrangement, or entering into a composition, extension, or similar arrangement,
      with creditors in respect of all or a substantial portion of its debts, (iv)
      making a general assignment for the benefit of its creditors, (v) placing itself
      or allowing itself to be placed, voluntarily or involuntarily, under the
      protection of the law of any jurisdiction relating to bankruptcy, insolvency,
      reorganization, winding-up, or composition or adjustment of debts, (vi) taking
      any action for the purpose of effecting any of the foregoing, or (vii) if a
      proceeding or case shall be commenced against such Person in any court of
      competent jurisdiction, seeking (a) the liquidation, reorganization,
      dissolution, winding-up, or composition or readjustment of debts, of such
      Person, (b) the appointment of a trustee, receiver, custodian, administrator,
      liquidator, or the like of such Person or of all or a substantial portion of
      such Person's assets, or (c) similar relief in respect of such Person under
      any
      law relating to bankruptcy, insolvency, reorganization, winding-up, or
      composition or adjustment of debts, and such proceeding or case shall continue
      undismissed or unstayed for a period of ninety (90) Days, or an order, judgment,
      or decree approving or ordering any of the foregoing shall be entered and
      continue unstayed and in effect for a period of sixty (60) Days, or an order
      for
      relief or other legal instrument of similar effect against such Person shall
      be
      entered in an involuntary case under such law and shall continue unstayed for
      a
      period of sixty (60) Days.

    

    “Beneficial
      Interest” means
      an interest,
      whether as partner, joint venturer, member, stockholder, cestui
      que
      trust,
      beneficiary of a
      trust, or otherwise, a contract right or a legal or equitable position under
      or
      by which the possessor participates in the economic or other results of the
      business organization to which such interest, contract right, or position
      relates.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Best
      Efforts”
means
      that the
      obligated party shall make a diligent, commercially reasonable, and good faith
      effort to accomplish the applicable objective. Such obligation, however, does
      not require the expenditure of funds or the incurrence of any liability on
      the
      part of the obligated party, nor does it require that the obligated party act
      in
      a manner which would otherwise be contrary to prudent business judgment or
      normal commercial practices in order to accomplish the objective. The fact
      that
      the objective is not actually accomplished is no indication that the obligated
      party did not in fact utilize its Best Efforts in attempting to accomplish
      the
      objective.

    

    “Book
      Value”
is
      defined in
      Section 3.1(e) hereof.

    

    “Business
      Day”
means
      any day
      except a Saturday, a Sunday, or a legal holiday in San Francisco, California,
      and on which commercial banks are open for business in San Francisco,
      California.

    

    “Buyer”
is
      defined in
      Section 6.4(a) hereof.

    

    “Buy-Sell
      Offer”
is
      defined in
      Section 6.5(a) hereof.

    

    “Capital
      Account”
is
      defined in
      Section 3.1 hereof.

    

    “Capital
      Contribution”
means
      the initial
      amount of cash or the net fair market value of property contributed to the
      capital of the Company by a Member, increased by any additional contributions
      of
      cash or the net fair market value of property made to the capital of the Company
      by such Member in accordance with the provisions of this Agreement. Any
      reference to the Capital Contribution of a Member shall include the Capital
      Contributions made by a predecessor-in-interest of such Member.

    

    "Change
      of
      Control Event"
      means (i) any
      loss of the right of A. Alfred Taubman, any member of his Immediate Family,
      any
      heir of the foregoing, any trust for the benefit of the foregoing and any
      partnership or limited liability company or corporation Controlled By some
      or
      all of the foregoing (for any reason other than a voluntary sale of shares
      of
      Taubman Centers, Inc. by one (1) or more of the foregoing Persons) to nominate
      at least three (3) members of the Board of Directors, or (ii) the acquisition
      by
      any person or group or persons (within the meaning of Section 13(d)(3) or
      14(d)(2) of the Securities Exchange Act of 1934. as amended, other than A.
      Alfred Taubman, any members of his Immediate Family, any heir of the foregoing,
      any trust for the benefit of any of the foregoing, any private charitable
      foundation, or any partnership, limited liability company or corporation owned
      or Controlled By some or all of the foregoing, of beneficial ownership (within
      the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of
      1934,
      as amended) of forty percent (40%) or more of the outstanding voting capital
      stock of Taubman Centers, Inc. 

    

    “Code”
means
      the
      Internal Revenue Code of 1986, as amended from time to time (or any
      corresponding provision of succeeding law).

    

    “Communication”
and
“Communications”
are
      defined in
      Section 9.2(a) hereof.

    

    “Company”
means
      Taubman
      Land Associates LLC, a Delaware limited liability company.

    

    “Contribution
      Notice”
is
      defined in
      Section 3.4(d) hereof.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Control”
means
      (and its
      correlative terms “Controlled
      By”
and
“Under
      Common
      Control With”)
      with respect to
      any corporation, partnership, limited liability company, trust, or other
      business organization, possession, directly or indirectly, by the applicable
      individual or individuals, entity or entities, of the power to direct or cause
      the direction of the management and policies thereof, whether through the
      ownership of voting securities, by contract, or otherwise.

    

    “Day”
or
“Days”
means
      each
      calendar day, including Saturdays, Sundays, and legal holidays; provided,
      however, that 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.

     

    “Defaulting
      Member”
is
      defined in
      Section 3.4(e) hereof.

    

    “Deficit
      Member”
is
      defined in
      Section 3.4(b) hereof.

    

    “Depreciation”
means
      for each
      Fiscal Year of the Company or other period, an amount equal to the depreciation,
      amortization, or other cost recovery deduction allowable under the Code with
      respect to an asset for such year or other period, except that if the Book
      Value
      of an asset differs from its adjusted basis for federal income tax purposes
      at
      the beginning of such year or other period, Depreciation shall be an amount
      which bears the same ratio to such beginning Book Value as the federal income
      tax depreciation, amortization, or other cost recovery deduction for such year
      or other period bears to such beginning adjusted tax basis; provided, however,
      that if the federal income tax depreciation, amortization, or other cost
      recovery deduction for such year is zero, Depreciation shall be determined
      with
      reference to such beginning Book Value using any reasonable method selected
      by
      the Managing Member.

    

    “Disabled
      Member”
is
      defined in
      Section 7.1(a)(ii) hereof.

    

    “Disabling
      Event”
is
      defined in
      Section 7.1(a)(i) hereof.

    

    “Equity
      Security” has
      the meaning
      ascribed to it in the Securities Exchange Act of 1934, as amended to the date
      hereof, and the rules and regulations thereunder (and any successor laws, rules,
      and regulations of similar import).

    

    “Event
      of
      Withdrawal”
is
      defined in
      Section 7.1(a)(iv) hereof.

    

    “Excess
      Member”
is
      defined in
      Section 3.4(b) hereof.

    

    “Exercise
      Notice”
is
      defined in
      Section 6.4(a) hereof.

    

    “Exercise
      Period”
is
      defined in
      Section 6.4(a) hereof.

    

    “Excess
      Payment”
is
      defined in
      Section 3.4(b) hereof.

    

    “Family
      Trust”
means,
      with
      respect to any individual, a trust for the benefit of such individual or for
      the
      benefit of any member or members of such individual’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 individual’s 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 Membership Interest, directly or
      indirectly, in the Company and/or includes an organization or organizations
      exempt from federal income tax pursuant to the 

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    provisions
      of
      Sections 501(a) of the Code and described in Section 501(c)(3) of the Code
      shall
      be disregarded); provided, however, that in respect of transfers by way of
      testamentary or inter vivos trust the trustee or trustees shall be solely such
      individual, a member or members of such individual’s Immediate Family, a
      responsible financial institution, an attorney that is a member of the Bar
      of
      any State in the United States, or an individual or individuals approved by
      that
      Member or those Members then holding an aggregate Percentage Interest of at
      least eighty percent (80%).

    

    “Fiscal
      Year”
means
      (i) the
      period commencing on the effective date of this Agreement and ending on the
      following December 31, (ii) any subsequent twelve (12) month period commencing
      on January 1 and ending on December 31, or (iii) any portion of any period
      described in clause (ii) for which the Company is required to allocate Profits,
      Losses, and other items of Company income, gain, loss or deduction pursuant
      to
      Article IV of this Agreement.

    

    “Gross
      Income”
means
      the income
      of the Company and the net gain from sales of Company property before deduction
      of items of expense or deduction. 

    

    “Guarantor”
is
      defined in
      Section 3.4(b) hereof.

    

    “Immediate
      Family” means
      with respect
      to any individual such individual’s spouse (past or then current), descendants
      (natural or adoptive), grandparents, parents, siblings of the whole or half
      blood, and descendants of parents of such individual’s spouse (past or then
      current).

    

    “Initiating
      Member”
is
      defined in
      Section 6.5(a) hereof.

    

    “Limited
      Liability Company Law”
is
      defined in
      Section 1.1 hereof.

    

    “Liquidator”
is
      defined in
      Section 8.1(a) hereof.

    

    “Losses”
means
      the losses
      of the Company as determined in accordance with the method of accounting
      followed by the Company for federal income tax purposes, including any
      separately stated items under Code Section 702(a).

    

    “Major
      Decision”
is
      defined in
      Section 5.1(c) hereof.

    

    “Management
      Agreement”
is
      defined in
      Section 5.5 hereof.

    

    “Managing
      Member”
is
      defined in
      Section 5.1(a) hereof.

    

    “Member”
and
“Members”
are
      defined in
      the Preamble hereto.

    

    “Membership
      Interest” as
      to each Member
      means all of the rights of a Member in the Company and shall include, but not
      be
      limited to, a Member’s (i) right to inspect the Company’s books and records,
      (ii) right to participate in the management and affairs of, and vote on matters
      presented to, the Company, and (iii) right to share in allocations of Profits
      and Losses and distributions of Available Cash, all as and to the extent
      provided in this Agreement.

     

    “Member
      Nonrecourse Debt Minimum Gain”
is
      defined in
      Section 4.3(d) hereof.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Minimum
      Gain”
means
      an amount
      determined in accordance with Regulations Section 1.704-2(b)(2), by computing
      with respect to each nonrecourse liability (as defined in Regulations Section
      1.704-2(b)(3)) of the Company, the amount of gain (of whatever character),
      if
      any, that would be realized by the Company if (in a taxable transaction) it
      disposed of property subject to such liability in full satisfaction thereof,
      and
      by then aggregating the amounts so computed.

    

    “Net
      Value”
is
      defined in
      Section 7.6 hereof.

    

    “Non-Defaulting
      Member”
is
      defined in
      Section 3.4(e) hereof.

    

    “Non-Initiating
      Member”
is
      defined in
      Section 6.5(a) hereof.

    

    “Non-Managing
      Member”
means
      the Member
      that is not the Managing Member.

    

    “Non-Pledging
      Member”
is
      defined in
      Section 6.8(iii) hereof.

    

    “Non-Triggering
      Member”
is
      defined in
      Section 6.6(a) hereof.

    

    “Offer”
is
      defined in
      Section 6.4(a) hereof.

    

    “Ownership
      Requirement”
is
      defined in
      Section 1.10(b)(vi) hereof.

    

    “Percentage
      Interest”
is
      defined in
      Section 3.2 hereof.

    

    "Person"
      means an
      individual, a partnership (general or limited), limited liability company,
      corporation, 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 and 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.

    

    "Pledge"
      means any pledge,
      encumbrance, hypothecation, or other assignment of a Membership Interest or
      any
      proceeds thereof as collateral for a loan to or for the benefit of the Member
      whose Membership Interest or the proceeds thereof has been pledged.

    

    “Pledge
      Documents”
is
      defined in
      Section 6.8(iii) hereof.

    

    “Pledgee”
is
      defined in
      Section 6.8(a)(i) hereof.

    

    “Pledgee
      Rights”
means
      any of a
      Pledgee’s rights under a loan or pledge agreement, including, without
      limitation, foreclosure, a transfer in lieu of foreclosure, or sale pursuant
      to
      the applicable commercial code.

    

    “Pledging
      Member”
is
      defined in
      Section 6.8 hereof.

    

    “Prime”
shall
      mean that
      rate of interest equal to the prime rate of interest published from time to
      time
      by the Company’s principal bank, or if such bank ceases to announce such a rate,
      the average of the prime rates prevailing from time to time at the two (2)
      national banks in the State of California having the largest deposits for the
      calendar quarter immediately preceding the date that the prime rate is to be
      determined.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Profits”
means
      the income
      of the Company as determined in accordance with the method of accounting
      followed by the Company for federal income tax purposes, including any
      separately stated items under Code Section 702(a).

    

    “Property”
is
      defined in
      Section 1.3 hereof.

    

    “Regulations”
means
      the
      permanent and temporary regulations of the United State’s Department of the
      Treasury under the Code, as such regulations may be amended from time to time
      (including corresponding provisions of succeeding regulations).

    

    “Regulatory
      Allocations”
is
      defined in
      Section 4.3(h) hereof.

    

    “REIT”
means
      a real
      estate investment trust.

    

    “REIT
      Member”
is
      defined in
      Section 5.10 hereof.

    

    “Required
      Funds”
is
      defined in
      Section 3.4(b) hereof.

    

    “Return”
means
      a variable
      return, recalculated and compounded monthly, equal to Prime plus one percent
      (1%).

    

    “Sale
      Offer”
is
      defined in
      Section 6.6(a) hereof.

    

    “Sale
      Price”
is
      defined in
      Section 6.6(a) hereof.

    

    “Seller”
is
      defined in
      Section 6.4(a) hereof.

    

    “Subject
      Interest”
is
      defined in
      Section 6.4(a) hereof.

    

    “Successor”
is
      defined in
      Section 7.1(a)(iii) hereof.

    

    “Taubman”
is
      defined in the
      Preamble to this Agreement.

    

    “Tax
      Matters
      Member”
is
      defined in
      Section 5.9(a) hereof.

    

    "Third
      Party"
      or "Third
      Parties"
      means one (1) or
      more Persons who are neither Members nor Affiliates of a Member.

    

    “Total
      Price”
is
      defined in
      Section 6.5(a) hereof.

    

    “Transfer”
means
      any
      assignment, sale, transfer, conveyance, encumbrance, Pledge, granting of an
      option or proxy, or other disposition or act of alienation.

    

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

    

    “TRG
      Excess
      Contributions”
is
      defined in
      Section 3.4(c) hereof.

    

    “TRG
      LLC”
is
      defined in the
      Preamble to this Agreement.

    

    “Triggering
      Member”
is
      defined in
      Section 6.6(a) hereof.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Trigger
      Notice”
is
      defined in
      Section 6.6(a) hereof.

    

    “TTC”
means
      The Taubman
      Company LLC, a Delaware limited liability company.

    

    “Valuation
      Date”
is
      defined in
      Section 7.6 hereof.

    

    

    ARTICLE
      III 

    CAPITAL
      ACCOUNTS; CAPITAL CONTRIBUTIONS

     

    3.1  Members’
      Capital Accounts.
      The Company shall
      establish and maintain a separate capital account (“Capital
      Account”)
      for each Member,
      in accordance with the following provisions:

    

    (a)  To
      each Member’s
      Capital Account there shall be credited such Member’s Capital Contributions,
      such Member’s distributive share of Profits and any items in the nature of
      income or gain that are specially allocated pursuant to Article IV hereof,
      and
      the amount of any Company liabilities assumed by such Member or which are
      secured by any property distributed to such Member.

    

    (b)  To
      each Member’s
      Capital Account there shall be debited an amount of cash and the agreed-upon
      fair market value of any property distributed to such Member pursuant to any
      provisions of this Agreement, such Member’s distributive share of Losses and any
      items in the nature of expenses or losses that are specially allocated pursuant
      to Article IV hereof, and the amount of any liabilities of such Member that
      the
      Company assumes or takes subject to that have not been taken into account in
      determining the amount of such Member’s Capital Contributions.

    

    (c)  Except
      as provided
      in this Agreement with respect to the Return, no interest or other fixed return
      shall accrue or be paid on any Capital Contributions.

    (d)  It
      is intended that
      Capital Accounts be maintained in accordance with the provisions of Regulations
      Section 1.704-1(b) and shall be interpreted and applied as provided in the
      Regulations. In the event that the Managing Member reasonably determines that
      the manner in which the Capital Accounts, or any debits or credits thereto,
      are
      maintained or computed under the Regulations should be further reflected in
      an
      amendment hereto, the Members shall enter into an appropriate amendment to
      this
      Agreement.

     

    (e)  In
      the event that
      the Book Values of Company assets are adjusted as described below in this
      Section 3.1(e), the Capital Accounts of the Members shall be adjusted
      simultaneously to reflect the aggregate net adjustments as if the Company
      recognized gain or loss for federal income tax purposes equal to the amount
      of
      such aggregate net adjustment. For the purpose of this Agreement, the term
      “Book
      Value”
means,
      with
      respect to any asset, such asset’s adjusted basis for federal income tax
      purposes, except:

     

    (i)  the
      initial Book
      Value of any asset contributed by a Member to the Company shall be the gross
      fair market value of such asset;

     

    (ii)  the
      Book Value of
      all Company assets may be adjusted, as determined by the Members to be necessary
      or appropriate to reflect the relative economic interests of the Members, to
      equal their respective gross fair market values as of the following

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    times:
      (1) the
      acquisition from the Company, in exchange for more than a de
      minimis
      capital
      contribution, of a Membership Interest by an additional member or of an
      additional Membership Interest by an existing Member; (2) the distribution
      by
      the Company to a Member of more than a de
      minimis
      amount of Company
      property (including money) as consideration for an interest in the Company;
      and
      (3) the liquidation of the Company within the meaning of Regulations Section
      1.704-1(b)(2)(ii)(g);

     

    (iii)  if
      the Book Value
      of an asset has been determined or adjusted as provided in paragraphs (i) or
      (ii) above, the Book Value of such asset shall thereafter be adjusted by the
      Depreciation (as defined below) taken into account with respect to such asset
      for purposes of computing Profits and Losses; and

    

    (iv)  the
      Book Value of
      any Company asset distributed to any Member shall be the gross fair market
      value
      of such asset on the date of distribution.

     

    In
      the event that
      any provision of this Section 3.1 or Section 3.3 hereof requires the
      determination of the fair market value of any asset, such fair market value
      shall be as determined by the mutual agreement of the Members provided that
      (x)
      such value is reasonably agreed to by the Members in arm’s-length negotiations
      and (y) the Members have sufficiently adverse interests as provided in
      Regulations Section 1.704-1(b)(2)(iv)(h).
      In the event
      that the requirements of clauses (x) and (y) of this Section 3.1(e) are not
      met,
      then the fair market value shall be determined by an appraiser selected by
      the
      Members, and the cost of such appraisal shall be an expense of the
      Company.

    

    3.2  Percentage
      Interests.
      For the purpose
      of this Agreement, the term “Percentage
      Interest”
means
      with
      respect to each Member, fifty percent (50%), as the same may be adjusted
      pursuant to Section 3.4 (e) hereof.

    

    3.3  Capital
      Contributions. To
      acquire the fee
      interest in the Property, the Members will each contribute funds in an amount
      equal to fifty percent (50%) of the purchase price and the anticipated immediate
      working capital needs of the Company.

    

    3.4  Additional
      Funds; Anticipated Financing.

    

    (a)  In
      order to carry
      on the business of the Company, the Members acknowledge that funds may be
      required in addition to the Capital Contributions reflected in Section
      3.3 hereof.
      All such
      additional funds shall be obtained as provided in this Section 3.4.

    

    (b) It
      is the intent of
      the Members to obtain, and the Managing Member shall use its Best Efforts to
      obtain, all
      funds required
      to pay for costs, expenses, and fees of
      the Company (the
      "Required
      Funds")
      from the
      proceeds of loans from Third Parties, pursuant to such terms, provisions, and
      conditions and in such manner (including the engagement of brokers and/or
      investment bankers to assist in providing such financing) as the Managing Member
      shall determine. The Managing Member shall seek to obtain Company financing
      on a
      basis that is without recourse to the Members. Such financing may be secured
      by
      a mortgage or mortgages on all or any portion of the Property and/or the
      Company’s interest therein. In the event that a Member or its Affiliate (a
      "Guarantor")
      is required to
      make any payment under any guaranty or indemnity executed by such Guarantor
      in
      connection with any Company financing, then in such event, (i) if each Member,
      or its Affiliate, is a Guarantor and if such payments are made by all

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Guarantors
      and are
      in the same ratio as the respective Percentage Interests of their affiliated
      Members, such payments shall be treated as additional Capital Contributions
      by
      the Members and shall be credited to their respective Capital Accounts, and
      (ii)
      if any Member, or its Affiliate, who is a Guarantor makes a payment that is
      greater than its pro rata share of the aggregate amount of the total payments
      made by both Members (or their Affiliates) under, or in respect of, such
      guaranty or indemnity based upon its (or its affiliated Member’s) Percentage
      Interest (the Member affiliated with such paying Guarantor being referred to
      herein as the "Excess
      Member",
      and the amount
      of the disproportionate payment, the "Excess
      Payment")
      and within ten
      (10) Days after receipt of notice from the Excess Member, the Member (or its
      Affiliate) that has made a payment that is less than (including making no
      payment at all) such Member’s pro rata share of such total payment based on its
      Percentage Interest (the "Deficit
      Member")
      has not paid the
      Excess Member an amount (up to the Deficit Member’s pro rata share) equal to the
      Excess Payment, the Excess Payments shall be treated as an additional Capital
      Contribution by the Excess Member and shall be credited to its Capital Account,
      and the Excess Member, as its sole remedy, shall have the right to dilute the
      Percentage Interest of the Deficit Member in accordance with Section 3.4(e)
      hereof. If a Deficit Member pays the Excess Member an amount equal to the Excess
      Payment within the prescribed ten (10) Day period, then the total payments
      made
      by the Excess Member under the guaranty or indemnity (excluding an amount equal
      to the reimbursed Excess Payment), and the total payments made by the Deficit
      Member under such guaranty or indemnity as well as any Excess Payment made
      by
      the Deficit Member to the Excess Member, shall be treated as an additional
      Capital Contribution by the paying Member and shall be credited to its Capital
      Account. Each Member hereby waives any and all rights it may have against the
      Company to recover any payment made by such Member (or its Affiliate) as a
      Guarantor.

     

    (c)
 To
      the extent
      Required Funds are not available from Third Parties as provided in Section
      3.4(b) hereof, the Managing Member may elect to contribute the Required Funds
      to
      the capital of the Company. All funds ("TRG
      Excess
      Contributions”)
      contributed to
      the capital of the Company by the Managing Member pursuant to this Section
      3.4(c) shall bear the Return from and after the date of contribution to the
      Company until distributed in full to the Managing Member pursuant to this
      Agreement.

     

    (d) 
      To the extent
      Required Funds are not available from Third Parties as provided in Section
      3.4(b) hereof, and the Managing Member elects not to contribute the Required
      Funds to the capital of the Company pursuant to Section 3.4(c) hereof, upon
      the
      request of the Managing Member, the Members shall contribute all such Required
      Funds to the capital of the Company in proportion to their respective Percentage
      Interests. The Managing Member shall make any such request by written notice
      (a
      "Contribution
      Notice")
      to the Members,
      identifying the amount of the Required Funds, each Member’s share of the
      Required Funds, and the date on which the Required Funds are to be contributed,
      which date shall be not less than thirty (30) Days after the date of the
      Contribution Notice.

     

    (e) 
      In the event that
      any Member (a "Defaulting
      Member”)
      fails to
      contribute timely its proportionate share determined in accordance with its
      Percentage Interest, of any Required Funds pursuant to Section 3.4(d) hereof
      or
      reimburse timely an Excess Member pursuant to Section 3.4(b) hereof, the other
      Member (the "Non-Defaulting
      Member")
      may give the
      Defaulting Member written notice of such default. The Defaulting Member shall
      then have ten (10) Business Days after receipt of such notice to cure its
      default. If the Defaulting Member fails to cure its default within such ten
      (10)
      Business Day period, such default shall constitute an event of default whereupon
      the Non-Defaulting Member, as its sole and exclusive remedy, may reduce the
      Defaulting Member’s Percentage Interest to a percentage equal to the ratio
      (expressed as a percentage) that the Defaulting Member’s total contributions to
      the capital of the Company 

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (excluding
      TRG
      Excess Contributions, if any) bears to the total contributions of both Members
      to the capital of the Company (excluding TRG Excess Contributions, if any).
      The
      amount of the reduction of the Defaulting Member’s Percentage Interest shall be
      added to the Percentage Interest of the Non-Defaulting Member, and the
      adjustments shall become effective as of the last Day of the ten (10) Business
      Day period referred to above.

     

    Notwithstanding
      anything set forth in this Agreement to the contrary, if the Percentage Interest
      of a Member falls below twenty-five percent (25%), such Member will lose its
      consent rights with respect to Company decisions. 

    

    (f) The
      provisions of
      this Section 3.4 are intended to serve only for the benefit of the
      Members,
      inter
      se,
      and no Third
      Party shall have any right whatsoever to benefit from the provisions hereof.
      None of the provisions of this Agreement shall be construed as existing for
      the
      benefit of any creditor of the Company or of any creditor of any of the Members,
      and none of such provisions shall be enforceable by any Person who is not a
      Member.

    

    3.5  Restrictions
      Relating to Capital.
      No Member shall
      have the right to withdraw or reduce its Capital Contributions, and no Member
      shall have the right to a partition of any property owned by the Company or
      to
      receive property other than cash, if any, in return for its Capital
      Contributions.

    

    ARTICLE
      IV

    ALLOCATIONS
      OF PROFIT AND LOSS AND DISTRIBUTION OF AVAILABLE CASH 

     

    

    4.1  Members’
      Shares of Profits.
      After giving
      effect to the special allocations set forth in Section 4.3 hereof, Profits
      (and
      each item thereof) for each Fiscal Year or other period shall be allocated
      as
      follows:

    

    (a) First,
      to the
      Members until the aggregate amount of Profits allocated to the Members pursuant
      to this Section 4.1(a) for such Fiscal Year and all prior Fiscal Years is equal
      to the aggregate amount of Losses allocated to the Members for all prior Fiscal
      Years pursuant to Section 4.2(c) hereof (in proportion to such
      amounts);

    

    (b) Second,
      to the
      Members in accordance with the ratio in which any Losses for all prior Fiscal
      Years were allocated pursuant to Section 4.2(b) hereof, until the aggregate
      amount of Profits allocated pursuant to this Section 4.1(b) for such Fiscal
      Year
      and all prior Fiscal Years is equal to the aggregate amount of Losses allocated
      pursuant to Section 4.2(b) hereof for all prior Fiscal Years; and

    

    (c) Thereafter,
      to the
      Members in accordance with their respective Percentage Interests.

    

    4.2  Members’
      Shares of Losses.
      After giving
      effect to the special allocations set forth in Section 4.3 hereof, Losses (and
      each item thereof) for each Fiscal Year or other period shall be allocated
      as
      follows:

    

    (a) First,
      to the
      Members until the aggregate amount of Losses allocated pursuant to this Section
      4.2(a) for such Fiscal Year and all prior Fiscal Years is equal to the aggregate
      

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    amount
      of Profits
      allocated pursuant to Section 4.1(c) hereof for all prior Fiscal Years (in
      proportion to such amounts);

    

    (b) Second,
      to the
      Members in proportion to and to the extent of the positive balances in their
      Capital Accounts;

    

    (c) Thereafter,
      the
      balance, if any, to the Members in accordance with their respective Percentage
      Interests.

    

    4.3  Special
      Allocations.
      The following
      special allocations shall be made in the following order of
      priority:

    

    (a) Gross
      Income Allocation.
      For each Fiscal
      Year of the Company, Gross Income shall be allocated (prior to any allocations
      pursuant to Section 4.1 and Section 4.2 hereof) to TRG LLC to the extent, if
      any, of the Return distributed to TRG LLC pursuant to Section 4.5(a)(1) hereof
      for the current Fiscal Year and distributable to TRG LLC pursuant to Section
      8.1(a)(5) hereof if such Fiscal Year is the year in which the Company is to
      be
      liquidated. In addition, to the extent that the cumulative amount of the Return
      distributed to TRG LLC for all prior Fiscal Years exceeds the cumulative amount
      of Gross Income allocated to TRG LLC pursuant to this Section 4.3(a), then,
      in
      the current Fiscal Year, Gross Income shall be allocated to the TRG LLC to
      the
      extent of the cumulative amount of the Return distributed to TRG LLC as to
      which
      TRG LLC did not receive a Gross Income allocation pursuant to this Section
      4.3(a).

    

    (b) Qualified
      Income Offset.
      In the event any
      Member unexpectedly receives any adjustments, allocations or distributions
      described in Sections 1.704-1(b)(2)(ii)(d)(4),
      1.704-1(b)(2)(ii)(d)(5)
      or
      1.704-1(b)(2)(ii)(d)(6)
      of the
      Regulations, items of Company income and gain shall be specially allocated
      to
      such Member in an amount and manner sufficient to eliminate, to the extent
      required by the Regulations, the Capital Account deficit of the Member as
      quickly as possible, provided that an allocation pursuant to this Section 4.3(a)
      shall be made only if and to the extent that the Member would have a Capital
      Account deficit after all other allocations provided for in this Article IV
      have
      been tentatively made as if this Section 4.3(a) were not in the
      Agreement.

    

    (c) Minimum
      Gain Chargeback.
      If, for any
      Fiscal Year of the Company, there is a net decrease in Company Minimum Gain,
      each Member who has previously been allocated any nonrecourse deductions or
      received distributions of proceeds attributable to any nonrecourse borrowing
      of
      the Company in any Fiscal Year of the Company shall be allocated items of
      Company income and gain for the Fiscal Year in which there is a net decrease
      in
      Company Minimum Gain in proportion to such prior allocations equal to that
      Member’s share of the net decrease in Company Minimum Gain consistently with the
      requirements of Regulations Section 1.704-2. The items to be allocated pursuant
      to this Section 4.3(b) shall be determined in accordance with Regulations
      Section 1.704-2(f) and (j).

    

    (d) Member
      Minimum Gain Chargeback.
      In the event that
      there is a net decrease in Minimum Gain attributable to a Member Nonrecourse
      Debt (as defined in Regulations Section 1.704-2(b)(4) and hereinafter referred
      to as “Member
      Nonrecourse Debt Minimum Gain”)
      for a Company
      Fiscal Year, then, subject to the exceptions set forth in Regulations Section
      1.704-2(i)(4), each Member with a share of Member Nonrecourse Debt Minimum
      Gain
      at the beginning of such Company Fiscal Year shall be allocated items of income
      and gain for such Company Fiscal Year (and, if necessary, for subsequent Company
      Fiscal Years) equal to such 

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Member’s
      share of
      the net decrease in Member Nonrecourse Debt Minimum Gain as determined in a
      manner consistent with the provisions of Regulations Section 1.704-2(g)(2).
      The
      items to be allocated pursuant to this Section 4.3(d) shall be determined in
      accordance with Regulations Section 1.704-2(i)(4) and (j).

    

    (e) Nonrecourse
      and Recourse Deductions.
      If, for any
      Fiscal Year of the Company, the Company shall have any losses, deductions,
      or
      Code Section 705(a)(2)(B) expenditures attributable to Company recourse or
      nonrecourse liabilities (including nonrecourse liabilities for which a Member
      bears the economic risk of loss), such items shall be allocated in accordance
      with Regulations Section 1.704-2 and Section 752 of the Code.

     

    (f) Excess
      Nonrecourse Liabilities.
      For the purpose
      of determining each Member’s share of excess nonrecourse liabilities of the
      Company, and solely for such purpose, each Member’s interest in Company profits
      shall be reasonably determined by the Managing Member in accordance with
      Internal Revenue Service authority interpreting Regulations Section
      1.752-3(a)(3).

    

    (g) Limitation
      on Deductions.
      No Member shall
      receive an allocation of any Company deduction or Loss that would cause the
      total allocations of Loss or items thereof to such Member to exceed the amount
      of its Capital Account balance increased by its share of Company Minimum Gain,
      Member Nonrecourse Debt Minimum Gain, and any other amount a Member is
      unconditionally obligated to restore on liquidation of the Company.

    

    (h) Curative
      Allocations. The
      allocations set
      forth in Sections 4.3(a), (b), (c), (d, (e), (f) and (g) hereof (the
      "Regulatory
      Allocations")
      are intended to
      comply with certain requirements of the Regulations. It is the intent of the
      Members that, to the extent possible, all Regulatory Allocations shall be offset
      either with other Regulatory Allocations or with special allocations of other
      items of Company income, gain, loss or deduction pursuant to this Section
      4.3(h). Therefore, notwithstanding any other provision of this Section 4.3
      (other than the Regulatory Allocations), the Managing Member shall make such
      offsetting special allocations of Company income, gain, loss or deduction in
      whatever manner it determines to be reasonably appropriate so that, after such
      offsetting allocations are made, each Member’s Capital Account balance is, to
      the extent possible, equal to the Capital Account balance such Member would
      have
      had if the Regulatory Allocations were not part of the Agreement and all Company
      items were allocated pursuant to Sections 4.1 and 4.2 hereof.

    

    4.4 Allocations
      for Federal Income Tax Purposes.
      The following
      allocations shall be made solely for federal income tax purposes:

    

    (a) Code
      Section 704(c).
      In accordance with
      Sections 704(b) and 704(c) of the Code and the Regulations thereunder, income,
      gain, loss, and deduction with respect to any property contributed to the
      capital of the Company shall, solely for federal income tax purposes, be
      allocated between the Members so as to take account of any variation between
      the
      adjusted basis of such property to the Company for federal income tax purposes
      and the initial Book Value of such property. If the Book Value of any Company
      property is adjusted pursuant to Section 3.1(e) hereof, subsequent allocations
      of income, gain, loss, and deduction with respect to such asset shall take
      account of any variation between the adjusted basis of such asset for federal
      income tax purposes and the Book Value of such asset in the manner prescribed
      under Sections 704(b) and 704(c) of the Code and the Regulations
      thereunder.

    
      
        
        

      

      
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    (b) Section
      754 Adjustments.
      In the event of a
      sale or exchange of a Member’s Membership Interest or a portion thereof or upon
      the death of a Member, if the Company has not theretofore elected, pursuant
      to
      Section 754 of the Code, to adjust the basis of Company property, the Managing
      Member shall cause the Company to elect, if the Person acquiring such Membership
      Interest or portion thereof so requests, pursuant to Section 754 of the Code,
      to
      adjust the basis of Company property. In addition, in the event of a
      distribution referred to in Section 734(b) of the Code, if the Company has
      not
      theretofore elected, the Members may, in the exercise of their discretion,
      cause
      the Company to elect, pursuant to Section 754 of the Code, to adjust the basis
      of Company property. Except as provided in Regulations Section
      1.704-1(b)(2)(iv)(m),
      such adjustment
      shall not be reflected in the Members’ Capital Accounts and shall be effective
      solely for federal and (if applicable) state and local income tax purposes.
      Each
      Member hereby agrees to provide the Company with all information necessary
      to
      give effect to such election with respect to such election.

     

    (c) Miscellaneous.
      Except as provided
      in Sections 4.4(a) and 4.4(b) hereof, for federal income tax purposes, each
      item
      of income, gain, loss, or deduction shall be allocated among the Members in
      the
      same manner as its correlative item of “book” income, gain, loss, or deduction
      has been allocated pursuant to Sections 4.1, 4.2, and 4.3 hereof.

     

    4.5 Distributions
      of Available Cash.

    

    (a) 
      Subject to Section
      4.5(b) hereof and Section 8.1(a) hereof, Available Cash shall be distributed,
      as
      and when the Managing Member shall determine, but not less frequently than
      quarterly, as follows:

    

    (i) First,
      to TRG LLC
      in an amount equal to its accrued but undistributed Return on the TRG Excess
      Contributions; 

    

    (ii) Second,
      to TRG LLC
      in an amount equal to the TRG Excess Contributions to the extent not previously
      distributed to TRG LLC pursuant to this clause (ii); and

     

    (iii)
 Thereafter,
      to the
      Members in accordance with their respective  Percentage
      Interests. 

     

    (b) Notwithstanding
      Section 4.5(a) hereof and irrespective of the order of priorities therein set
      forth and subject to the provisions of Section 8.1(a) hereof, to the extent
      that
      for any Fiscal Year of the Company while all or any portion of TRG’s Excess
      Contributions remain outstanding, Taubman receives an allocation of net taxable
      income from the Company without a concomitant distribution of Available Cash
      (taking into account the cumulative distributions of Available Cash previously
      made to Taubman pursuant to the provisions of Section 4.5(a)(iii) hereof, and
      by
      taking into account on a cumulative basis any losses (of the same character)
      of
      the Company for prior Fiscal Years of the Company), the Company shall, within
      ninety (90) Days after the end of such Fiscal Year, make a distribution of
      Available Cash to Taubman such that Taubman is distributed an amount equal
      to
      its combined federal and state tax liability determined by multiplying the
      Company’s taxable income by the highest marginal federal and State of Michigan
      income tax rates applicable to individuals in effect for such Fiscal Year.
      The
      amount of any distribution pursuant to this Section 4.5(b) shall be credited,
      on
      a cumulative basis, against any other distributions of Available Cash to be
      made
      to Taubman pursuant to Section 4.5(a)(iii) hereof and/or Section 8.1(a)(7)
      hereof.

    
      
        
        

      

      
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    4.6 Bank
      Accounts.
      One
      or more
      accounts in the name of the Company shall be maintained in such bank or banks
      as
      the Managing Member may from time to time select. Any checks of the Company
      may
      be signed by any Person(s) designated, from time to time, by the Managing
      Member.

    

    4.7 Books
      of
      Account and Reports.

    (a)
 The
      Company shall
      maintain at its principal office and in accordance with generally accepted
      accounting principles, complete and accurate books of account and records of
      its
      operations showing the assets, liabilities, costs, expenditures, receipts,
      profits, and losses of the Company and which shall include provision for
      separate Capital Accounts for the Members and shall provide for such other
      matters and information as a Member shall reasonably request, together with
      copies of all documents executed on behalf of the Company. Each Member and
      its
      representatives, duly authorized in writing, shall have the right to inspect
      and
      examine, at all reasonable times, at the principal office of the Company, all
      such books of account, records, and documents.

     

    (b)
 The
      Managing Member
      shall deliver, or cause to be delivered, to the Non-Managing Member within
      ninety (90) Days after the end of each Fiscal Year of the Company, unaudited
      financial statements prepared in accordance with generally accepted accounting
      principles. In the event the Managing Member causes audited financial statements
      to be prepared for itself or others, it shall deliver a copy of such audited
      financial statements to the Non-Managing Member.

     

    (c)
 To
      the extent the
      Managing Member prepares, or causes to be prepared, for itself or others,
      unaudited quarterly financial statements, the Managing Member shall deliver,
      or
      cause to be delivered, to the Non-Managing Member within forty-five (45) Days
      after the end of each calendar quarter, such unaudited financial statements
      prepared in accordance with accounting principles consistently applied on an
      historical basis and with such additional details reasonably requested by the
      Non-Managing Member to convert such financial statements into ones consistent
      with generally accepted accounting principles.

     

    (d)
 The
      Managing Member
      shall also prepare, or cause to be prepared, on behalf of the Company, such
      financial statements, reports, and other information as may be required by
      any
      Third Party lender of the Company.

     

    (e) 
      The cost of all
      reporting provided for or authorized in this Section 4.7 shall be paid by the
      Company. Any Member may, at any time, and at its sole expense, cause an audit
      of
      the Company’s books to be made by a certified public accountant of such Member’s
      own selection. 

    

    4.8
 Tax
      Returns and Audits.
      The initial
      accountant for the Company (the "Accountant")
      shall be
      Deloitte Tax LLP. The Accountant shall prepare all applicable tax returns,
      including any schedules or additional information reasonably required by any
      Member in order to file its tax returns, all of the foregoing at the expense
      of
      the Company. The Managing Member shall provide the Accountant such information
      as is reasonably necessary to permit the Accountant to prepare such tax returns
      within ninety (90) Days after the end of each Fiscal Year of the Company, and
      the Managing Member shall timely file such tax returns, subject to its right
      to
      file an extension. In the event, the Managing Member determines, in its sole
      discretion, to appoint an auditor for the Company, the initial auditor for
      the
      Company (the “Auditor”)
      shall be KPMG.
      The expense of the Auditor will be borne by the Company.

    
      
        
        

      

      
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    4.9 Company
      Fiscal Year.
      The Company’s
      fiscal and taxable year shall be the calendar year. 

    

    ARTICLE
      V

    MANAGEMENT;
      EXECUTION OF 

    LEGAL
      INSTRUMENTS; OTHER VENTURES

     

    5.1 Management;
      Authority of the Managing Member; Limitations on
      Authority. 

    

    (a) Except
      as otherwise
      provided herein regarding Major Decisions, the Company shall be managed solely
      and exclusively by the Managing Member (the "Managing
      Member").
      TRG LLC is
      hereby designated as the Managing Member. The Managing Member shall use its
      Best
      Efforts to carry out the purposes of the Company and shall have, in respect
      of
      its management of the Company, all of the powers of the Company and shall devote
      such time and attention to the Company as is reasonably necessary for the proper
      management of the Company and its properties; it being acknowledged however
      that
      the Managing Member shall not be required to devote its time exclusively to
      the
      operation of the Company. Except as otherwise provided herein regarding Major
      Decisions, all actions, decisions, determinations, designations, directions.
      appointments, consents, approvals, selections, and the like, to be taken, made,
      or given by and/or with respect to the Company, its business and property as
      well as management of all Company affairs, shall in each and every case be
      made
      by. and only by, the Managing Member, and all such actions, decisions,
      determinations, designations. directions, appointments, consents, approvals,
      selections, and the like shall be controlling and binding upon the Company
      and
      the Members.

     

    Accordingly,
      the
      Managing Member shall have the exclusive right, power, and authority, on behalf
      of the Company, subject only to the limitations set forth in this Agreement,
      including Section 5.1(c) hereof, and subject to carrying out the purposes of
      the
      Company, to negotiate, enter into, perform, amend, and take all actions in
      respect of any and all agreements, instruments, and documents; to acquire,
      assets of any nature; to borrow money, incur and repay debts and liabilities
      and
      obligations, issue evidences of indebtedness, and secure such indebtedness
      by
      granting mortgage(s), liens, or charges upon any property of the Company; to
      cause the Managing Member, in the event that it decides to contribute Required
      Funds to the capital of the Company pursuant to Section 3.2(c) hereof, to
      receive the Return thereon; to maintain and lease the Property, to enter into
      one or more leases, subleases, and similar related and ancillary documents
      in
      respect of the Property; to retain Third Parties on behalf of the Company
      including, without limitation, engineers, auditors, attorneys, consultants,
      and
      brokers; to maintain insurance; to obtain through contract or otherwise, goods
      and services; and to perform all acts that a Member may legally do pursuant
      to
      the Limited Liability Company Law that are consistent with the terms of this
      Agreement.

     

    (b) 
      The Managing
      Member shall consult with and inform the Non-Managing Member from time to time
      as shall be reasonably requested by the Non-Managing Member. The Non-Managing
      Member shall have no right or authority to act on behalf of or bind the Company
      in any manner except as may otherwise be agreed to by the Managing Member in
      writing.

     

    (c) 
      Notwithstanding
      Sections 5.1(a) and 5.1(b) hereof, without the prior written consent of the
      Non-Managing Member, the Managing Member shall not have the power to bind the
      Company in connection with any of the following (each a "Major
      Decision"):
      

    
      
        
        

      

      
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    (i)
 the
      financing or
      refinancing of the Property, including the mortgaging or the placing or
      suffering of any other encumbrance on the Property or any portion thereof or
      the
      guaranty of any such financing or refinancing; 

    

    (ii) the
      sale, ground
      leasing, or other transfer of the Property (or any portion thereof) other than
      in accordance with Section 6.6 hereof, or the development of the Property (or
      any portion thereof); 

    

    (iii) 
      other than as
      provided in Section 1.4 hereof, the dissolution and liquidation of the
      Company;

     

    (iv) 
      other than in
      accordance with Article VI hereof, the admission of additional Members to the
      Company; 

     

    (v) 
      the entering into
      of contracts or agreements with any Member or any Affiliate of a Member on
      behalf of the Company other than the lease of all or any portion of the Property
      to SunValley Shopping Center LLC and the material amendment of any such
      contracts or agreements;

     

    (vi) 
      the acquisition of
      any real property or interest therein including any interest in any Person
      owning real property other than the Property or the expansion of the purposes
      of
      the Company beyond those specified in Section 1.3 hereof; 

    

    (vii) 
      the making of any
      investment in, or any advance to, any Person;

     

    (viii) 
      the decision to
      call for capital from the Members or to require a guaranty of Company financing
      by the Members;

     

    (ix) 
      the filing of any
      request or suit or the entering into of any agreement of extension requiring
      the
      consent of the Members pursuant to Section 5.8 hereof;

     

    (x) 
      the conduct of
      Company operations in a manner inconsistent with the provisions of Section
      5.9
      hereof; 

    

    (xi) 
      the confession of
      any judgment against the Company;

     

    (xii) 
      the execution and
      delivery of any assignment for the benefit of creditors of the Company;

    

    (xiii) 
      the filing of any
      petition seeking reorganization, readjustment, arrangement. composition, or
      similar relief for the Company under the federal bankruptcy laws or any similar
      law;

    

    (xiv) 
      the merger or
      other business combination or division of the Company; and 

    

    (xviii)
       the
      amendment of
      this Agreement. 

    

    (d) TRG
      LLC shall serve
      as the Managing Member for the Company unless and until its Percentage Interest
      is reduced to less than twenty-five percent (25%), or it has suffered a
      Disabling Event or an Event of Withdrawal. In the event that TRG LLC’s
      Percentage Interest is 

    
      
        
        

      

      
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    reduced
      to less
      than twenty-five percent (25%), or it has suffered a Disabling Event or an
      Event
      of Withdrawal, Taubman (provided that Taubman’s Percentage Interest has not been
      reduced to less than twenty-five percent (25%) and Taubman has not suffered
      a
      Disabling Event or an Event of Withdrawal) may notify TRG LLC in writing that
      Taubman will assume all rights and all obligations of the Managing Member under
      this Agreement. If Taubman assumes the rights and obligations of the Managing
      Member pursuant to this Section 5.1(d) and thereafter Taubman’s Percentage
      Interest is reduced to less than twenty-five percent (25%) or Taubman suffers
      a
      Disabling Event or an Event of Withdrawal, the Managing Member shall be that
      Member designated by Members holding in excess of fifty percent (50%) of the
      Percentage Interests. 

    

    (e) 
      The Members, by
      their execution and delivery of this Agreement, irrevocably authorize the
      Managing Member to do any act that the Managing Member has the right, power,
      and
      authority to do under the provisions of this Agreement and under the Limited
      Liability Company Law (but only to the extent not inconsistent with the terms
      of
      this Agreement), without any other or subsequent authorizations or consents
      of
      any kind. Except in the case of a Major Decision, no Person dealing with the
      Company shall be required to investigate or inquire as to the authority of
      the
      Managing Member to exercise the rights, powers, and authority herein conferred
      upon it. Any Person dealing with the Company shall, except in the case of a
      Major Decision, be entitled to rely upon any action taken and/or any document
      or
      instrument executed and delivered by the Managing Member or a Person designated
      by the Managing Member, and the Company shall be bound thereby. Except in the
      case of a Major Decision, no purchaser of any property or interest owned by
      the
      Company, or lender, shall be required to determine the sole and exclusive
      authority of the Managing Member to execute and deliver on behalf of the Company
      any such instrument of transfer or security, or to see to the application or
      distribution of revenues or proceeds paid or credited in connection therewith.
      

    

    5.2  Response
      of the Members.
      Unless otherwise
      specifically provided in this Agreement, whenever any Member is requested by
      any
      other Member to cast a vote, grant an approval, or execute a consent of any
      nature whatsoever in connection with the Company, such request shall be made
      in
      writing to the other Member at its address set forth herein, and such Member
      shall respond to such request with reasonable promptness by means of a written
      response signed by such Member and sent to the requesting Member, which shall
      be
      binding on the responding Member, and in any event not more than ten (10)
      Business Days after the receipt of the request, unless such request identifies
      an emergency situation, in which event not more than three (3) Business Days
      after the receipt of the request. The response shall indicate any reasons for
      withholding consent. The failure of a Member to respond in writing within the
      applicable time period shall constitute a ratification and approval by such
      Member of the matter requested. 

    

    5.3  Compensation
      of Members and Affiliates.  The
      Managing Member
      shall not be entitled to any fees to act as Managing Member hereunder. The
      Managing Member shall be entitled to reimbursement for any reasonable or
      necessary expenses incurred or expenditures made by it (to the extent not
      otherwise reimbursed) for or on behalf of the Company. 

    

    5.4 Authority
      for Execution of Instruments.
      All
      contracts of
      the Company, leases, promissory notes, deeds of trust, mortgages, and other
      evidences of indebtedness of the Company, and other Company instruments or
      documents, need be executed, signed, or endorsed only by the Managing Member
      or
      that Person or those Persons (who need not be Members) designated in writing
      by
      the Managing Member, and such designated Person's(s') signature(s) shall be
      sufficient to bind the Company and its properties.

    
      
        
        

      

      
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    5.5 Management
      Agreement.
      The Company has
      entered into a management agreement with TTC, dated the date hereof, (the
“Management
      Agreement”),
      which will
      provide for certain services with respect to the Property, including, without
      limitation, financing. Notwithstanding
      anything to the contrary contained herein, in the event of a Change of Control
      Event, the Company shall solicit bona fide, arms-length proposals from Persons
      other than TTC that have management experience and a reputation comparable
      to
      TTC’s, to provide the management, administrative, and other services in respect
      of the Property then provided by TTC. In the event that the terms of any such
      proposal are more favorable to the Company than the terms of the current
      Management Agreement, then unless TTC agrees to provide the required services
      upon the same terms and conditions as are contained in the proposal, the Company
      shall terminate the Management Agreement, and shall enter into a new management
      agreement with such other Person for the provision of such services. In the
      event that the terms of any such proposal are not more favorable to the Company
      than the terms of the current Management Agreement, then the Company shall
      retain TTC as the manager.

    

    

    5.6 Indemnification
      of the Members; Limit on Liability.
      Without
      duplication of amounts reimbursed to a Member pursuant to Section 5.3 hereof,
      the Company shall and does hereby, to the fullest extent permitted by law,
      indemnify and hold harmless each Member (including the Managing Member), its
      successors, and assigns, from and against any and all losses, liabilities,
      obligations, claims, causes of action, demands, costs and expenses (including
      reasonable attorneys’ fees), incurred by the Member with respect to any act or
      omission performed by such Member within the scope of the authority conferred
      upon it by this Agreement, except for acts or omissions that constitute fraud,
      willful misconduct, gross negligence, or a material breach of this Agreement.
      Except for acts that constitute fraud, willful misconduct, gross negligence,
      or
      a material breach of this Agreement, a Member shall not be liable to the Company
      or to the other Member (and the interest of each Member in the Company, and
      in
      its property and assets, shall be free of any claims by the Company or the
      other
      Member) by reason of any act performed for or on behalf of the Company, or
      in
      furtherance of the Company business, or by reason of any omission. Any indemnity
      under this Section 5.6 shall be provided out of and to the extent of Company
      assets only, and no Member shall have any personal liability on account thereof.
      The indemnity and the limit on liability provided in this Section 5.5 shall
      survive the dissolution and termination of the Company and the termination
      of
      this Agreement.

    

    5.7 Bank
      Accounts.
      The
      bank account or
      accounts of the Company shall be maintained in the banking institution or
      institutions selected by the Managing Member. All funds of the Company shall
      be
      deposited into account(s) of the Company and any and all checks or other
      instruments used to draw funds of the Company shall require the signature of
      the
      Managing Member or those individuals authorized by the Managing
      Member.

     

    5.8 Activities
      and Competing Ventures of the Members and Affiliates.
      The Members
      acknowledge that each of them and their Affiliates may have interests in other
      present or future ventures, including ventures that are competitive with the
      Company, and that, notwithstanding its status as a Member in the Company, a
      Member and its Affiliates shall be entitled to obtain and/or continue their
      respective individual participation in all such ventures without (i) accounting
      to the Company or the other Members for any profits with respect thereto,

    
      
        
        

      

      
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    (ii)
      any obligation
      to advise the other Members of business opportunities for the Company which
      may
      come to its or its Affiliate’s attention as a result of its or its Affiliate’s
      participation in such other ventures or in the Company, and (iii) being subject
      to any claims whatsoever on account of such participation.

    

    5.9 Tax
      Matters Member.

     

    (a) 
      As used in this
      Agreement, “Tax
      Matters
      Member”
has
      the meaning
      ascribed to “tax matters partner” in Section 6231(a)(7) of the Code. The
      Managing Member is hereby designated Tax Matters Member for the Company. The
      Tax
      Matters Member shall comply with the requirements of Sections 6221 through
      6231
      of the Code applicable to a Tax Matters Member.

    

    (b) The
      Tax Matters
      Member shall have the continuing obligation to provide the Internal Revenue
      Service with sufficient information so that proper notice can be mailed to
      all
      Members as provided in Section 6223 of the Code, provided that each Member
      shall
      furnish the Tax Matters Member with all such information (including information
      specified in Section 6230(e) of the Code) as is required with respect to such
      Member for such purpose.

     

    (c) The
      Tax Matters
      Member shall keep each Member informed on a current and on-going basis of all
      administrative and/or judicial proceedings for the adjustment of partnership
      items (as defined in Section 6231(a)(3) of the Code) at the Company level.
      Without limiting the generality of the foregoing sentence, within five (5)
      Business Days after receiving any written or oral notice of the time and place
      of a meeting or other administrative or judicial proceeding from the Internal
      Revenue Service regarding a proceeding (and in any event, within a reasonable
      time prior to such meeting or proceeding), the Tax Matters Member shall furnish
      a copy of such written communication or notice to each Member or inform each
      Member of the substance of any such oral communication. The foregoing obligation
      of the Tax Matters Member to inform the other Member shall extend to routine
      and
      minor events.

    

    (d)
 Each
      Member shall
      promptly notify the Tax Matters Member of its treatment of any Company item
      on
      its federal income tax return which is or may be inconsistent with the treatment
      of that item on the Company’s return. In addition, if any Member intends to file
      a request for administrative adjustment with the Internal Revenue Service,
      such
      Member shall notify the Tax Matters Member (who shall notify any unaffiliated
      Member) of such fact and its terms at least thirty (30) Days prior to such
      filing.

     

    (e) If
      any Member
      intends to enter into a settlement agreement with the Secretary of the Treasury
      (or his authorized delegate) with respect to any Company item, such Member
      shall
      notify the Tax Matters Member (who shall notify any unaffiliated Member) of
      such
      fact and its terms at least twenty (20) Days prior to such settlement agreement
      and shall notify the Tax Matters Member (who shall notify any unaffiliated
      Member) of any such settlement agreement and its terms within thirty (30) Days
      after the date of settlement.

     

    (f) 
      If the Tax Matters
      Member elects not to file suit under Section 6226 or Section 6228 of the Code
      concerning an administrative adjustment or request for administrative adjustment
      and any other Member elects to file such a suit, such Member shall notify the
      Tax Matters Member (who shall notify any unaffiliated Member) of such intention,
      and the forum or forums in which such suit shall be filed shall be determined
      by
      such Member. 

    
      
        
        

      

      
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    (g) Without
      the
      approval of the other Member, the Tax Matters Member shall not enter into any
      written correspondence with the Internal Revenue Service, extend the statute
      of
      limitations with respect to the Company, file a request for administrative
      adjustment, file suit concerning any tax refund or deficiency relating to any
      Company administrative adjustment or enter into any settlement agreement
      relating to any Company adjustment or enter into any settlement agreement
      relating to any item of income, gain, loss, deduction or credit for any taxable
      year of the Company. Further, any and all communications with the Internal
      Revenue Service, including, without limitation, the calling of meetings with
      the
      Internal Revenue Service, shall be only with the participation of the other
      Member.

    

    (h) Each
      Member shall
      be entitled to participate in all administrative proceedings with the Internal
      Revenue Service, as provided in Section 6224(a) of the Code.

    

    (i) The
      Tax Matters
      Member shall not make any available election pursuant to the Code without the
      prior approval of the other Member, such approval not to be unreasonably
      withheld.

    

    (j) The
      obligations
      imposed on the Tax Matters Member and the participation rights afforded the
      other Member by this Section 5.9 and the Code may not be restricted or limited
      in any fashion by the Tax Matters Member without the prior written consent
      of
      the other Member.

    

    (k) The
      Tax Matters
      Member shall be responsible for representing the Company in all dealings with
      any state, local, or foreign tax authority, subject to the requirement that
      the
      provisions of this Section 5.9 shall apply with equal force to all dealings
      with
      any such tax authority.

    

    5.10 Specific
      Provisions Relating to Real Estate Investment Trust
      Status. Anything
      herein to
      the contrary notwithstanding, so long as any Member is, or is owned, directly
      or
      indirectly, to the extent of at least ten percent (10%) by a Person who is
      a
      REIT (hereinafter each a "REIT
      Member"),
      the Managing
      Member shall cause the Company to conduct operations in a manner consistent
      with
      the following provisions and any variance from the following shall require
      the
      written consent of all of the REIT Members:

     

    (a) 
      To the extent
      required for any rents from all or any part of the Property to qualify as "rents
      from real property’ within the meaning of Section 856 of the Code and the
      Regulations thereunder, any Person rendering services to a lessee or sublessee
      of all or any part of the Property shall be a taxable REIT subsidiary within
      the
      meaning of Section 856(l) of the Code and any Regulations thereunder or an
      "independent contractor" within the meaning of Section 856(d)(3) of the Code
      and
      the Regulations thereunder from whom the Company does not derive or receive
      any
      income, except as permitted by Section 856(d)(7)(C)(ii) of the
      Code;

     

    (b) 
      To the extent
      required for any rents from all or any part of the Property to qualify as "rents
      from real property" within the meaning of Section 856 of the Code and the
      Regulations thereunder, any manager or advisor to the Company shall be a taxable
      REIT subsidiary (or an entity in which a taxable REIT subsidiary owns a
      substantial interest) within the meaning of Section 856(l) of the Code and
      any
      Regulations thereunder or an "independent contractor within the meaning of
      Section 856(d)(3) of the Code and the Regulations thereunder;

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    (c) 
      To the extent
      required for any rents from all or any part of the Property to qualify as "rents
      from real property" within the meaning of Section 856 of the Code and the
      Regulations thereunder, the Company shall not manage the Property other than
      through a taxable REIT subsidiary (or an entity principally owned by a taxable
      REIT subsidiary) within the meaning of Section 856(l) of the Code and any
      Regulations thereunder or an independent contractor within the meaning of
      Section 856(d)(3) of the Code and the Regulations thereunder;

     

    (d) 
      The Company shall
      not enter into any lease with any Person, other than Sun Valley Shopping Center
      LLC, who is directly or indirectly related (within the meaning of Section
      856(d)(2)(B) of the Code) to any real estate investment trust which owns,
      directly or indirectly, a REIT Member;

     

    (e) 
      The Company shall
      not (i) form an association taxable as a corporation other than a taxable REIT
      subsidiary within the meaning of Section 856(l) of the Code, (ii) form a trust,
      or (iii) acquire securities in any issuer, except for the acquisition of
      government securities; 

    

    (f) 
      No lease or
      sublease of all or any part of the Property shall provide for any rents that
      are
      contingent, in whole or in part, on the net income or profits derived by the
      lessee or sublessee;

     

    (g) 
      The Company shall
      not enter into any lease of personal property, under or in connection with
      the
      lease of real property, if the rent attributable to such personal property
      exceeds ten percent (10%) of the total rent for the taxable year attributable
      to
      both the real and personal property leased under or in connection with such
      lease; 

    

    (h) 
      The Company shall
      not enter into any lending transaction if any amount received or accrued,
      directly or indirectly, therewith by the Company, depends in whole or in part
      on
      the income or profits of any Person; nor shall the Company enter into any
      lending transaction if the loan by the Company does not meet the “straight debt”
safe harbor of Section 856(m)(1)(A) of the Code; and 

    

    (i) 
      The Company shall
      not engage in any “prohibited transaction" within the meaning of Section
      857(b)(6) of the Code (for purposes hereof, the determination of whether a
      transaction constitutes a "prohibited transaction" shall not take into account
      the provisions of Section 857(b)(6)(C) of the Code).

     

    Any
      attempted
      action that violates any of the foregoing shall be null and void and ineffective
      for all purposes; provided, however, that any such attempted action shall
      constitute a material breach of this Agreement. 

     

    ARTICLE
      VI

    TRANSFERS
      OF MEMBERSHIP INTERESTS

     

    

    6.1  General
      Restrictions on Dispositions.

    

    (a) 
      Except as
      expressly provided in this Article VI or Section 7.3 hereof, no Member may
      Transfer all or any part of its Membership Interest (including the right to
      distributions) without the prior written consent of the other Member, provided
      that no Member may, under any 

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    circumstances,
      Transfer all or any part of its Membership Interest if such Transfer would
      constitute a default under any indebtedness or other Third-Party obligations
      or
      agreements of the Company.

    

    (b) In
      the event a
      Member desires to Transfer its Membership Interest in accordance with and as
      permitted by the provisions of this Article VI, such Member shall give the
      non-transferring Member thirty (30) Days prior written notice of its desire
      to
      Transfer and shall disclose the identity of the transferee and, if an entity,
      its beneficial ownership. 

    

    (c) An
      assignment of
      all or a part of a Membership Interest occurring by operation of law
      (e.g.,
      bankruptcy,
      attachment, etc.)
      shall not entitle
      the successor to participate in the management and affairs of the Company or
      to
      exercise any rights of a Member, including the right to vote on or consent
      to
      any matter requiring a vote or a consent of the Members, unless and until such
      transferee is admitted as a Member in accordance with Section 6.2 hereof. In
      the
      event of an assignment occurring by operation of law, the assignor Member shall
      be entitled to continue to exercise the rights of a Member under this Agreement,
      and such assignor Member and its transferee shall be jointly and severally
      liable to the Company for such Member’s obligations to the Company under this
      Agreement or under the Limited Liability Company Law.

    

    (d) For
      purposes of
      this Agreement, any Transfer of any direct or indirect membership interest,
      partnership interest, stock or other equity interest in any Member shall be
      deemed to be a Transfer by such Member of its Membership Interest in the
      Company, except for any direct or indirect Transfer of direct or indirect
      interests in (a) TRG or (b) Taubman, so long as at all times after any such
      Transfer at least fifty-one percent (51%) of the direct and indirect ownership
      interests in Taubman, as applicable, are owned by, and Taubman is solely
      Controlled By, members of A. Alfred Taubman’s Immediate Family and/or their
      respective estates and/or a Family Trust in respect of any of the
      foregoing.

     

    6.2  Substitution
      of Members.
      Regardless of
      compliance with any of the provisions hereof (including, without limitation,
      the
      provisions of Article VII hereof) permitting a Transfer of a Membership
      Interest, no Transfer of a Membership Interest shall be recognized by or be
      binding upon the Company unless: 

    

    (i)
 such
      instruments as
      may be required by the Limited Liability Company Law or other applicable law
      or
      to effect the continuation of the Company and the Company’s ownership of its
      properties are executed and delivered and/or filed;

     

    (ii)
 the
      instrument of
      assignment binds the assignee to all of the terms and conditions of this
      Agreement as if the assignee were a signatory party hereto and does not release
      the assignor from any liability or obligation, accruing prior to the date of
      the
      Transfer, of or in respect of the Membership Interest which is the subject
      of
      the Transfer;

     

    (iii)
 the
      instrument of
      assignment is manually signed by the assignee and assignor and is otherwise
      reasonably acceptable in form and substance to the non-transferring
      Member;

     

    (iv)
 if
      there is more
      than a single assignee (or successor-in-interest), the assignees or successors
      shall have complied with the provisions of Section 7.2 hereof;

     

    (v)
 such
      Transfer or
      Pledge shall not be prohibited by, or cause a breach of, or cause events,
      including, without limitation, by reason of the nature of the transferee or
      pledgee (e.g.
      tax-exempt
      status), that are unacceptable to the non-transferring or non-

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    pledging
      Member in
      the exercise of its reasonable discretion to occur pursuant to, any agreement,
      obligation, or understanding by which the assignor or the assignee or any
      properties of the Company or the Company itself is bound or
      affected;

     

    (vi)
 the
      non-transferring Member shall receive such evidence (including opinions of
      counsel) of the due authorization, execution and delivery of instruments by,
      and
      the validity and enforceability of such instruments against, such transferee
      as
      the non-transferring Member shall reasonably request; 

    

    (vii)
 any
      required
      consent of the mortgagee or beneficiary under any mortgage or deed of trust
      or
      lease of the Property to such Transfer and substitution or Pledge shall have
      been obtained;

     

    (viii)
 the
      assignee shall
      pay all expenses incurred by the Company in admitting the assignee as a Member,
      and

     

    (ix)
 in
      the event of a
      Pledge of a Member’s Membership Interest, the provisions of Section 6.8 hereof
      are complied with.

     

    An
      assignee of a
      Membership Interest pursuant to a Transfer permitted in this Agreement who
      is
      admitted as a member in the Company in the place and stead of the assignor
      Member in respect of the Membership Interest acquired from the assignor Member
      shall have all of the rights, powers, obligations, and liabilities, and be
      subject to all of the restrictions, of the assignor Member, including, without
      limitation, but without release of the assignor Member, the liability of the
      assignor Member for any existing unperformed obligations of the assignor Member.
      Each of the Members, on behalf of itself and its permitted successors and
      assigns, HEREBY AGREES AND CONSENTS to the admission of any such additional
      members as herein provided. 

    

    6.3 Intentionally
      Omitted. 

    

    6.4 Right
      of
      First Refusal. 

    

    (a) If
      any Member
      desires to Transfer all or any portion of its Membership Interest (the
      "Subject
      Interest")
      to any Person
      (other than pursuant to a Pledge), and such Transfer is not otherwise permitted
      by Sections 6.1 or 6.3 hereof, then, such Member (the "Seller")
      shall submit to
      the other Member (the "Buyer")
      a true copy of a
      bona tide written offer to purchase the Subject Interest (the "Offer"),
      which Offer
      shall in any event (i) provide for (x) an all cash at closing purchase price
      that provides for no contingent payments, participation features or other
      payments other than as are customary to a Transfer for an all cash at closing
      purchase price, or (y) a purchase price that can be paid with cash, marketable
      securities, and/or units in an operating partnership which are convertible
      into
      marketable securities, and that can, strictly for purposes of this provision
      and
      the calculation hereinafter referenced, be converted to an all cash at closing
      purchase price equivalent, and (ii) disclose the price and terms of such
      proposed sale and the name, address, and beneficial ownership of the proposed
      purchaser. The Buyer shall have the absolute right to purchase the Subject
      Interest upon the terms and conditions set forth in the Offer, or if such Offer
      provides for a purchase price to be paid in other than all cash at the closing,
      the Buyer may purchase the Subject Interest for an all cash at closing purchase
      equivalent; provided, however, that, regardless of such terms and conditions,
      the date, time, and place for the consummation of such purchase shall be as
      designated by the Buyer, provided that the date so designated shall be a
      Business Day within seventy-five (75) Days after the Exercise Notice (as defined
      below) with at least ten (10) Days’ advance written notice thereof to the
      Seller. The Buyer 

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    shall,
      within
      forty-five (45) Days after receipt of the Offer (the "Exercise
      Period"),
      specify in a
      notice (an "Exercise
      Notice")
      to the Seller
      whether or not it desires to purchase the Subject Interest. Such Exercise Notice
      shall be accompanied by a cash earnest money deposit equal to five percent
      (5%)
      of the purchase price if the Buyer elects to purchase the Subject Interest.
      If
      the Buyer fails to give an Exercise Notice (and deposit) within the Exercise
      Period as to the Subject Interest, such failure shall constitute an election
      to
      reject the Offer. The closing of a purchase by a Buyer shall be held in
      accordance with the provisions of Section 6.7 hereof. At the closing, the
      Buyer’s earnest money deposit, together with interest thereon, shall be credited
      against the purchase price for the Subject Interest (or returned in the event
      that the purchase price is to be paid in other than cash); provided, however,
      that if the closing shall fail to occur because of a default by the Buyer,
      the
      Buyer may not submit an Offer, a Buy-Sell Notice, or a Sale Notice, for a period
      of twelve (12) months after the scheduled closing date, and the Seller shall
      have the right, as its exclusive remedy, to retain the Buyer’s deposit, together
      with interest thereon, as liquidated damages, it being agreed that in such
      instance, the Seller’s damages would be difficult, if not impossible, to
      ascertain.

     

    (b) The
      Seller may sell
      the Subject Interest, if the Offer was not so accepted, to the proposed
      purchaser whose name and address were disclosed in the Offer but only (i) upon
      the same terms and conditions set forth therein (except that the purchase price
      for the Subject Interest may be ninety-five percent (95%) or more of the
      purchase price for the Subject Interest as set forth in the Offer), (ii) within
      seventy-five (75) Days after the expiration of the Exercise Period, and (iii)
      after the Seller has obtained any Third Party consents necessary to effectuate
      the sale; otherwise, any such sale shall be null and void and of no force or
      effect whatsoever. 

    

    Notwithstanding
      anything to the contrary contained herein, a Member may not submit an Offer
      in
      accordance with this Section 6.4 if (x) a Member has given a Buy-Sell Offer
      in
      accordance with Section 6.5 hereof or a Sale Offer in accordance with Section
      6.6 hereof, in either case, that is outstanding or pursuant to which a purchase
      has not yet been consummated, or (y) a Member is marketing the Property as
      provided in Section 6.6 hereof.

     

    6.5
 Buy-Sell.

     

    (a) TRG
      LLC or Taubman
      (the "Initiating
      Member")
      shall have the
      right, at any time, to initiate a termination of the Company in accordance
      with
      this Section 6.5. The Initiating Member shall deliver to whichever of TRG LLC
      or
      Taubman is not the Initiating Member (the "Non-Initiating
      Member")
      an offer (the
      "Buy-Sell
      Offer")
      in writing
      stating a cash purchase price (the "Total
      Price")
      attributable to
      one hundred percent (100%) of the Company’s assets. The Non-Initiating Member
      then shall have the option either: 

    

    (i)
 to
      purchase the
      Membership Interest of the Initiating Member in the Company for cash at a price
      equal to the amount that the Initiating Member would receive under Section
      8.1(a) hereof if the Company’s assets were sold for the Total Price and all of
      the liabilities of the Company were satisfied; or 

    

    (ii)
 to
      sell to the
      Initiating Member the Membership Interest of the Non- Initiating Member in
      the
      Company for cash at a price equal to the amount that the Non-Initiating Member
      would receive under Section 8.1(a) hereof if the Company’s assets were sold for
      the Total Price and all of the liabilities of the Company were
      satisfied.

     

    The
      Non-Initiating
      Member shall give written notice of such election to the Initiating Member
      within forty-five (45) Days after receipt of the Buy-Sell Offer. Such notice
      shall be 

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    accompanied
      by a
      cash earnest money deposit equal to five percent (5%) of the purchase price
      if
      the Non-Initiating Member elects to purchase the Membership Interest of the
      Initiating Member. Failure of the Non-Initiating Member to give the Initiating
      Member notice that the Non-Initiating Member has elected under Section 6.5(a)(i)
      hereof (and to deliver the required deposit) within the foregoing forty-five
      (45) Day period shall be conclusively deemed to be an election to sell under
      Section 6.5(a)(ii) hereof. In the event that the Non-Initiating Member does
      not
      elect to purchase the Membership Interest of the Initiating Member, the
      Initiating Member shall give the Non-Initiating Member, a cash earnest money
      deposit equal to five percent (5%) of the purchase price of the Non-Initiating
      Member’s Membership Interest, within ten (10) Days after (i) the receipt of the
      Non-Initiating Member’s election to sell under Section 6.5(a)(i) hereof, or (ii)
      if no election is made by the Non-Initiating Member, the expiration of the
      forty-five (45) Day period within which the Non-Initiating Member could have
      sent its election, as applicable.

     

    (b) The
      closing of a
      purchase pursuant to Section 6.5(a) hereof shall be held in accordance with
      the
      provisions of Section 6.7 hereof at the principal office of the Company on
      a
      Business Day agreed to by the Initiating Member and the Non-Initiating Member
      that is not more than seventy-five (75) Days after receipt of the written notice
      of the election of the Non-Initiating Member or not more than one hundred five
      (105) Days after receipt of the Buy-Sell Offer if the Non-Initiating Member
      fails to give such notice. At the closing, the Initiating Member’s or
      Non-Initiating Member’s, as applicable, earnest money deposit, together with
      interest thereon, shall be credited against the purchase price of the Membership
      Interest being purchased; provided, however, that if the closing shall fail
      to
      occur because of a default by the purchasing Member, the purchasing Member
      may
      not submit a Buy-Sell Offer, an Offer, or a Sale Offer, for a period of twelve
      (12) months after the scheduled closing date, and the selling Member shall
      have
      the right, as its exclusive remedies, to (i) retain the purchasing Member’s
      earnest money deposit, together with interest thereon, as liquidated damages,
      it
      being agreed that in such instance, the selling Member’s damages would be
      difficult, if not impossible, to ascertain, and/or (ii) elect, within sixty
      (60)
      Days after such default, to purchase the purchasing Member’s Membership Interest
      for a cash purchase price equal to the amount that such purchasing Member would
      receive under clause (i) or clause (ii) of Section 6.5(a) hereof, as applicable,
      provided that such Member includes a cash earnest money deposit equal to five
      percent (5%) of such purchase price with its election. Notwithstanding anything
      to the contrary contained herein, a Member may not submit a Buy-Sell Offer
      in
      accordance with this Section 6.5 if (x) a Member has given an Offer in
      accordance with Section 6.4 hereof or a Sale Offer in accordance with Section
      6.6 hereof, in either case, that is outstanding or pursuant to which a purchase
      has not yet been consummated, or (y) a Member is marketing the Property as
      provided in Section 6.6 hereof. 

    

    6.6 Sale
      of
      the Property. 

    

    (a) If
      TRG LLC or
      Taubman desires to market and sell the Property to a Third Party, TRG LLC or
      Taubman as applicable (the "Triggering
      Member”)
      shall deliver to
      whichever of TRG LLC and Taubman is not the Triggering Member (the “Non-Triggering
      Member”)
      an irrevocable
      offer (the "Sale
      Offer”)
      in writing
      stating a cash purchase price attributable to one hundred percent (100%) of
      the
      Company’s assets. The Non-Triggering Member shall then have the option to
      purchase the Membership Interest of the Triggering Member for cash at a price
      equal to the amount (the "Sale
      Price")
      that the
      Triggering Member would receive under Section 8.1(a) hereof, if the Company’s
      assets were sold for the purchase price set forth in the Sale Offer and all
      of
      the liabilities of the Company were satisfied.

     

    The
      Non-Triggering
      Member shall specify in a notice (a “Trigger
      Notice”)
      to the
      Triggering Member, within forty-five (45) Days after receipt of the Sale Offer,
      whether or not it desires to 

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    accept
      the Sale
      Offer and purchase the Membership Interest of the Triggering Member for the
      Sale
      Price. Such Trigger Notice shall be accompanied by a cash earnest money deposit
      equal to five percent (5%) of the purchase price of the Triggering Member’s
      Membership Interest if the Non-Triggering Member has elected to purchase the
      Triggering Member’s Membership Interest. Failure to give a Trigger Notice that
      the Non-Triggering Member has elected to purchase the Membership Interest of
      the
      Triggering Member (and to deliver the required deposit) within such forty-five
      (45) Day period, shall constitute an election to reject the Sale Offer.

    

    If
      the Sale Offer
      was not so accepted by the Non-Triggering Member, the Triggering Member may
      sell
      the Property and all other assets of the Company to a Third Party for an all
      cash at closing purchase price that is equal to (or greater than) ninety-five
      (95%) of the purchase price for one hundred percent (100%) of the Company’s
      assets as set forth in the Sale Offer and that provides for no contingent
      payments, participation features or other payments other than are customary
      to a
      Transfer for an all cash at closing purchase price. The closing of any such
      sale
      to a Third Party shall occur within two hundred ten (210) Days after the
      expiration of the forty-five (45) Day period within which the Non-Triggering
      Member could have sent the Trigger Notice; otherwise, any such sale shall be
      null and void and of no force or effect whatsoever. 

    

    (b) The
      closing of a
      sale by a Triggering Member to a Non-Triggering Member pursuant to Section
      6.6(a) hereof shall be held in accordance with the provisions of Section 6.7
      hereof at the principal office of the Company on a Business Day agreed to by
      the
      Triggering Member and the Non-Triggering Member that is not more than one
      hundred five (105) Days after receipt of a Trigger Notice. At the closing,
      the
      Non-Triggering Member’s earnest money deposit, together with interest thereon,
      shall be credited against the purchase price of the Triggering Member’s
      Membership Interest; provided, however, that if the closing shall fail to occur
      because of a default by the Non-Triggering Member, the Non-Triggering Member
      may
      not submit a Sale Offer, an Offer, or a Buy-Sell Offer, for a period of twelve
      (12) months after the scheduled closing date, and the Triggering Member shall
      have the right, as its exclusive remedy, to retain the Non-Triggering Member’s
      earnest money deposit, together with interest thereon, as liquidated damages,
      it
      being agreed that in such instance, the Triggering Member’s damages would be
      difficult, if not impossible, to ascertain. Notwithstanding anything to the
      contrary contained herein, a Member may not submit a Sale Offer in accordance
      with this Section 6.6 if a Member has given an Offer in accordance with Section
      6.4 hereof or a Buy-Sell Offer in accordance with Section 6.5 hereof, in either
      case, that is outstanding or pursuant to which a purchase has not yet been
      consummated.

     

    6.7 Closings.
      At the closing of
      the purchase of a Member’s Membership Interest pursuant to this Agreement, the
      selling Member shall transfer to the Purchasing Member such Membership Interest
      (including, without limitation, any rights of the selling Member to receive
      (i)
      repayment of any loans (other than those secured by the Property) made by it
      to
      the Company, with any accrued and unpaid interest thereon, (ii) repayment of
      such Member’s Capital Contributions, if any, including, in the case of TRG LLC,
      any TRG Excess Contributions and any accrued but unpaid Return thereon, (iii)
      distributions of Available Cash, and (iv) distributions on termination or
      dissolution, free and clear of all liens, security interests, and claims of
      others, and shall deliver to the purchasing Member such instruments of transfer
      with respect to the assets of the Company and such evidence of due
      authorization, execution and delivery, and of the absence of any liens, security
      interests, or claims of others as the purchasing Member shall reasonably
      request. The instruments of transfer shall be without representations or
      warranties except as to the absence of any liens, security interests or claims
      of others. The selling Member shall be responsible for any stamp, recording,
      transfer, and similar transactional taxes (including any state or local taxes
      measured by the gain to such selling Member) payable upon such transfer.

    
      
        
        

      

      
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    At
      such closing,
      the purchasing Member shall pay the purchase price payable by it, at the option
      of the purchasing Member, by good certified or official bank check payable
      to
      the order of the selling Member or by Fedwire transfer of immediately available
      funds. The purchasing Member shall be responsible for obtaining all Third Party
      consents necessary to effectuate the purchase and shall also deliver or cause
      to
      be delivered to the selling Member a release or releases from all recourse
      obligations and liabilities of the Company. Notwithstanding anything to the
      contrary contained herein, in the event that the purchasing Member is unable
      to
      obtain Third Party consents necessary to effectuate a sale hereunder (having
      used its Best Efforts to do so), it shall send written notice thereof to the
      selling Member who may then seek to obtain such Third Party consents. In the
      event that one or more Third Party consents necessary to effectuate the sale
      has
      not been obtained by the date of the closing, any such sale shall be null and
      void and of no force of effect. The selling Member shall be entitled to
      Available Cash allocable to its Membership Interest through the date of closing.
      

    

    6.8 Pledge
      of Membership Interests.
      Each Member (each
      being hereinafter referred to as a "Pledging
      Member”)
      may Pledge all or
      any portion of its Membership Interest or any of the proceeds thereof, at any
      time subject to the following conditions: 

    

    (i) the
      Person (the
      "Pledgee")
      to whom the
      Pledging Member’s Membership Interest or the proceeds thereof have been pledged
      in accordance with the provisions of this Section 6.8 shall not have the right
      to become a substitute Member in the Company; 

    

    (ii) in
      the event that
      the Pledgee begins to effect any of its Pledgee Rights under the loan and/or
      pledge agreement, including, without limitation, foreclosure or sale pursuant
      to
      the applicable commercial code, the Pledging Member shall no longer have any
      management, approval, or consent rights provided in this Agreement;

     

    (iii) the
      documents
      governing the Pledge of all or any portion of the Pledging Member’s Membership
      Interest pursuant to this Section 6.8 (the “Pledge
      Documents")
      shall contain a
      provision reasonably acceptable to the other Member (the "Non-Pledging
      Member")
      providing that
      upon the exercise of any of its Pledgee Rights, in no event shall the Pledgee
      be
      entitled to realize an amount in excess of an amount approved by the
      Non-Pledging Member (in its sole discretion) as set forth in the Pledge
      Documents; and 

    

    (iv) the
      Pledge
      Documents shall contain a provision reasonably acceptable to the Non-Pledging
      Member acknowledging and providing that, notwithstanding anything in this
      Agreement or in the Pledge Documents to the contrary, upon a Transfer of the
      Pledging Member’s Membership Interest pursuant to the exercise of any of the
      Pledgee Rights, the right of first refusal in respect of the Pledging Member’s
      Membership Interest provided to the Buyer in Section 6.4 hereof shall apply.
      In
      the event that the Pledgee Right effected by the Pledgee does not entail a
      cash
      sale of the Pledging Member’s Membership Interest, the purchase price of the
      Pledging Member’s Membership Interest pursuant to Section 6.4 shall equal the
      outstanding principal amount of the Pledging Member’s indebtedness to the
      Pledgee and any other amounts owed to the Pledgee with respect thereto,
      including, without limitation, any and all accrued but unpaid interest thereon.
      In the event that the Non-Pledging Member exercises its right of first refusal,
      upon payment of the purchase price, the Pledgee (or any other Person acquiring
      the Pledging Member’s Membership Interest as a result of the exercise of the
      Pledgee Rights) shall Transfer the pledged Membership Interest to the
      Non-Pledging Member, free and clear of any lien, pledge, or other encumbrance
      associated with the Pledge or the Pledging Member’s 

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    obligation
      secured
      thereby. The Pledgee, the Pledging Member, and the Non- Pledging Member shall
      have executed an agreement, in form and substance reasonably satisfactory to
      the
      Non-Pledging Member, in order to implement the provisions of this Section 6.8.
      Any Pledge of a Pledging Member’s Membership Interest that violates the
      requirements of this Section 6.8 shall be null and void ab
      initio.

    

    

    ARTICLE
      VII

    DISABLING
      EVENT IN RESPECT OF A MEMBER;

    SUCCESSION
      OF INTERESTS

    

    7.1 Disabling
      Event in Respect of a Member. 

    (a) For
      purposes
      hereof: 

    (i)
 a
      "Disabling
      Event"
      means, with
      respect to a Member, such Member’s (A) in the case of a Member that is a natural
      Person, death, (B) Bankruptcy, (C) in the case of a Member who is a natural
      Person, the entry by a court of competent jurisdiction adjudicating him
      incompetent to manage his Person or his property, (D) in the case of a Member
      who is acting as a Member by virtue of being a trustee of a trust, the
      termination of the trust (but not merely the substitution of a new trustee),
      (E)
      in the case of a Member that is a separate partnership or limited liability
      company, the dissolution and commencement of winding up of the separate
      partnership or limited liability company, or (F) in the case of a Member that
      is
      a corporation, the filing of a certificate of dissolution, or its equivalent,
      for the corporation or the revocation of its charter and the expiration of
      ninety (90) Days after the date of notice to the corporation of revocation
      without a reinstatement of its charter; 

    

    (ii)
 a
      "Disabled
      Member”
      shall be a Member
      who has suffered a Disabling Event or an Event of Withdrawal; and

     

    (iii)
 a
      "Successor"
      shall be, with
      respect to a Disabled Member, such Disabled Member’s successor(s) in interest,
      personal representative(s), heirs at law, legatee(s), or estate; and

    

    (iv)
 "Event
      of
      Withdrawal"
      means, with
      respect to a Member, such Member’s retirement, resignation, other withdrawal
      from the Company pursuant to the Limited Liability Company Law or any other
      event (which is not a Disabling Event) that causes a Member to cease to be
      a
      member under the Limited Liability Company Law.

    

    (b) Upon
      the occurrence
      of a Disabling Event or an Event of Withdrawal in respect of a Member, the
      Company shall not be dissolved, but shall be continued, and the Successor to
      such Disabled Member, subject to Section 6.2 hereof, shall have the rights
      of
      such Disabled Member in the Company subject to the terms and provisions of
      this
      Agreement. 

    

    7.2 Single
      Representative to Act on Behalf of Successors.
      In the event that
      a Member’s Membership Interest is, at any time during the term of this Agreement
      (including any period of dissolution and winding up of the Company), held by
      more than one Person, then all of the Persons holding such Member’s original
      Membership Interest shall forthwith, but in any event within thirty (30) Days
      after the date on which the Membership Interest of such Member is held by more
      than a single Person, designate one or more individuals as their collective
      authorized 

    
      
        
        

      

      
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    representative(s)
      for purposes of Section 5.2 hereof, who shall each have the power and authority,
      acting alone, to represent and bind and act on behalf of all of the Members
      so
      joined together and represented in connection with all matters relating to
      this
      Agreement or the Company. An authorized representative designated as required
      herein shall act at the direction of that Member or those Members, represented
      by such authorized representative, who at the relevant time holds or
      collectively hold, as the case may be, a Percentage Interest which is in excess
      of fifty percent (50%) of the total Percentage Interest held by all the Members
      represented by such authorized representative.

     

    7.3 Succession
      by Individuals to Membership Interests of Members.
      In the event that
      any individual succeeds to the interest of any Member in accordance with the
      terms of this Agreement, then the interest of such individual Member in the
      Company, subject to the provisions of Section 7.2 hereof, may be:

     

    (i) Transferred
      or
      disposed of by will or intestacy to or for the benefit of  any
      member or
      members of the deceased Member’s Immediate Family; or 

    

    (ii) Transferred
      during
      his lifetime or at his death to a Family Trust for such  individual.
      

    

    7.4 References
      to "Member" and "Members" in the Event of Successors.
      In the event that
      a Member’s Membership Interest is held by one or more successors to such Member,
      references in this Agreement to "Member" and "Members" shall refer, as
      applicable and except as otherwise provided herein, to the collective Membership
      Interests of all successors to the Membership Interest of such Member; and
      all
      decisions, consents, approvals, determinations, actions, and selections of
      the
      Members (to the extent any such decisions, consents, approvals, determinations,
      actions, and selections of the Members are provided for in this Agreement)
      and
      the Company shall, as herein provided but subject to the provisions of Article
      VII hereof, require the decision, consent, approval, determination, action,
      or
      selection of such Member or an authorized representative of all of the
      successors to the Membership Interest of such Member (acting in the manner
      provided in Section 7.2 hereof). 

    

    
      	 	
              7.5
                

            	
              Waiver
                of Dissolution if Transfer is in Full Compliance with Agreement;
                Negation
                of Right to Dissolve Except as Herein Provided; No
                Withdrawal.
                

            

    

    

    (a) Each
      of the Members
      hereby waives its right to terminate or cause the dissolution of the Company
      (as
      such right is provided under the Limited Liability Company Law) upon the
      Transfer of any Member’s Membership Interest, provided that any such Transfer is
      permitted by and completed fully in accordance with the terms of this Agreement.
      

    

    (b) Except
      as provided
      in this Agreement, no Member shall have the right to terminate this Agreement
      or
      dissolve the Company by such Member’s express will. 

    

    (c) No
      Member shall
      have any right to retire, resign, or otherwise withdraw from the Company and
      have the value of such Member’s Membership Interest ascertained and receive an
      amount equal to the value of such Membership Interest. 

    

    (d) In
      the event that a
      Member withdraws from the Company in breach of this Agreement but pursuant
      to
      such Member’s statutory rights under the Limited Liability Company Law, to the
      extent that such rights exist in the face of a prohibition against withdrawal
      in
      this Agreement, then the value of such Member’s Membership Interest shall be
      ascertained in 

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    accordance
      with
      Section 7.6 hereof and the Limited Liability Company Law, and such Member shall
      receive from the Company in exchange for the relinquishment of such Member’s
      Membership Interest an amount equal to the value of such Member’s Membership
      Interest as so determined less twenty-five percent (25%) of such value as
      liquidated damages and not as a penalty. In no event shall a Member be
      considered to have withdrawn from the Company solely as a result of such Member
      having suffered a Disabling Event. 

    

    7.6 Determination
      of Fair Market Value of Membership Interests.
      Solely for
      purposes of Section 7.5(d) hereof, if it shall be necessary to determine the
      fair market value of a Member’s Membership Interest, fair market value shall be
      equal to the amount, determined as hereinafter set forth in this Section 7.6,
      that would be distributed to such Member pursuant to Section 8.1(a) hereof,
      assuming no reserves have been established by the Managing Member and that
      there
      are no costs attendant upon such liquidation, but taking into account any and
      all allocations pursuant to Section 4.1, Section 4.2, and Section 4.3 hereof
      and
      distributions pursuant to Section 4.5 hereof through the date of such
      determination, if all of the assets of the Company were sold for their fair
      market value; provided, however, that (i) the fair market value of such
      Membership Interest shall be reduced by the amount of any distributions made
      to
      the Member whose Membership Interest is being sold subsequent to the date of
      the
      balance sheet to be prepared pursuant to this Section 7.6, (ii) the fair market
      value of such Membership Interest shall be further reduced by the fees of the
      Auditor and appraisers for the services rendered by them in accordance with
      this
      Section 7.6, and (iii) any indebtedness to the Company of the Member whose
      Membership Interest is to be sold at the date of the consummation of the
      purchase shall be paid to the Company in repayment of such indebtedness (such
      repayment to be treated as having occurred immediately prior to the
      sale).

    

    To
      determine the
      fair market value of the Company’s assets, the Auditor shall prepare a balance
      sheet for the Company as of the last Day of the month preceding the date of
      the
      event giving rise to the necessity to determine fair market value (the
      "Valuation
      Date").
      Such balance
      sheet shall be prepared in the manner in which prior balance sheets of the
      Company have been consistently prepared. The Auditor shall then determine the
      excess of the total assets of the Company over the total liabilities of the
      Company (the "Net
      Value").
      Net Value shall
      be adjusted to reflect (1) the actual value of any negotiable securities
      included in the Company’s assets on the Valuation Date, and (2) the fair market
      value of all the Company’s real property (taking into account any participation
      features of any debt encumbering such property), including all improvements
      thereon and thereto, and other assets of the Company based upon an appraisal
      of
      the Company’s real property by a member of the American Institute of Real Estate
      Appraisers and an appraisal of the other assets of the Company by a qualified
      appraiser, each such appraiser to be selected jointly by the Members. If the
      Members are unable to agree upon an appraiser, then each Member shall appoint
      an
      appraiser. The appraisals shall be averaged to calculate the appraised fair
      market value of the Company’s property unless such appraisals differ by more
      than five percent (5%) of the lower appraisal, in which event, the two (2)
      appraisers shall select a third appraiser who shall independently appraise
      the
      Company’s property. The appraised fair market value of the Company’s property
      shall then be the average of those appraisals which differ from the middle
      appraisal by less than five percent (5%) of the lowest appraisal. If none of
      the
      appraisals differ from the middle appraisal by less than five percent (5%)
      of
      the lowest appraisal, then the value of the middle appraisal shall be the
      appraised fair market value of the Company’s property. The fee of each of the
      appraisers shall be borne by the selling Member.

     

    Ninety
      (90) Days
      after the preparation of any such balance sheet, the Auditor shall prepare
      an
      adjusted balance sheet, in the manner set forth above, for the Company, to
      reflect disputed and/or unknown operating income and expense items and real
      estate tax increases for the current 

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    year
      if actual real
      estate taxes are unknown at the time the initial balance sheet is prepared
      (the
      "Adjustments").
      The Managing
      Member shall provide the Non-Managing Member with written notice (an
      "Adjustment
      Notice")
      of the
      Adjustments within ten (10) Days after the Auditor’s determination thereof. The
      fair market value of the Company’s assets and the fair market value of a
      Member’s Membership Interest shall be adjusted to reflect the Adjustments. The
      selling Member or the acquiring Member, as the case may be, shall pay to the
      other, within ten (10) Days after the receipt of the Adjustment Notice, the
      net
      amount due such Member, based upon the Adjustments. The provisions of this
      Section 7.6 shall survive the dissolution and termination of the
      Company.

    

    ARTICLE
      VIII

    WINDING
      UP,
      LIQUIDATION, AND

    TERMINATION
      OF THE COMPANY

    

    8.1 Liquidation
      of the Assets of the Company and Disposition of the Proceeds
 Thereof. 

    

    (a) Upon
      the
      dissolution of the Company, the Managing Member (unless the Managing Member
      shall have suffered a Disabling Event in which event the Non-Managing Member)
      (herein referred to as the "Liquidator")
      shall proceed to
      wind up the affairs of the Company, liquidate the property and assets of the
      Company, and terminate the Company, and the proceeds of such liquidation shall
      be applied and distributed in the following order of priority:

     

    (1) to
      the expenses of
      liquidation: and then

     

    (2) to
      the payment of
      the debts and liabilities of the Company owing to Persons other than Members
      and
      their Affiliates; and then

     

    (3) to
      the
      establishment of any reserves that the Liquidator deems necessary or appropriate
      to provide for any contingent or unforeseen liabilities or obligations of the
      Company (other than those owing to Members) or of the Members arising out of
      or
      in connection with the Company (which reserves may be held by a liquidating
      trust established for the benefit of the Members for the purpose of liquidating
      Company assets, collecting amounts owed to the Company, and paying any
      contingent or unforeseen liabilities of the Company); provided, however, that
      after the expiration of a one year period, any excess reserves remaining shall
      be distributed in the manner hereinafter provided in this Section 8.1(a); and
      then

     

    (4) to
      the satisfaction
      of any obligations of the Company to Members and/or their Affiliates not
      otherwise provided for in this Section 8.1(a); and then

     

    (5) to
      TRG LLC in an
      amount equal to any accrued but unpaid Return on the TRG Excess Contributions;
      and then

     

    (6)
 to
      TRG LLC in an
      amount equal to the TRG Excess Contributions to the extent that the TRG Excess
      Contributions have not been previously distributed to TRG LLC; and
      then

     

    (7) to
      the Members in
      proportion to and to the extent of their positive Capital Account balances.
      For
      this purpose, the determination of the Members’ Capital Account balances shall
      be made after adjustment to reflect the allocation of all Profits, Losses,
      and
      items in the nature of income, gain, expense, or loss under Section 4.1, Section
      4.2, and Section 4.3 hereof and distributions pursuant to Section 4.5 hereof
      and
      clauses (5) and (6) of this 

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    Section
      8.1(a)
      through the Fiscal Year of liquidation of the Company. Subject to the provisions
      of clause (3) of this Section 8.1(a), all distributions pursuant to this Section
      8.1 shall be made by the end of the fiscal year of liquidation (or, if later,
      within ninety (90) Days after the date of such liquidation). 

    

    (b) Subject
      to the
      requirements of Regulations Section 1.704-1(b)(2)(ii)(b)(2) a reasonable time
      shall be allowed for the orderly liquidation of the property and assets of
      the
      Company and the payment of the debts and liabilities of the Company in order
      to
      minimize the losses normally attendant upon a liquidation.

     

    (c)
 Each
      Member hereby
      appoints the Liquidator as its true and lawful attorney-in-fact to hold,
      collect, and disburse, in accordance with this Agreement, the applicable
      requirements of Regulations Section 1.704-1(b), and the terms of any receivables
      existing at the time of the termination of the Company and the proceeds of
      the
      collection of such receivables, including those arising from the sale of Company
      property and assets. Notwithstanding anything to the contrary in this Agreement,
      the foregoing power of attorney shall terminate upon the distribution of the
      proceeds of all such receivables in accordance with the provisions of this
      Agreement. 

    

    (d) Notwithstanding
      anything to the contrary contained in this Section 8.1, but subject to Section
      5.1(c) hereof, if the Liquidator shall determine not to liquidate the property
      and assets of the Company because the property and assets are not assignable
      to
      other than the Members or because a complete liquidation of all of the property
      and assets of the Company would involve substantial losses or be impractical
      under the circumstances or for any other reason or for no given reason, the
      Liquidator shall liquidate that portion of the assets of the Company sufficient
      to pay the expenses of liquidation and the debts and liabilities of the Company
      (excluding the debts and liabilities of the Company to the extent that they
      are
      adequately secured by mortgages on, or security interests in, assets of the
      Company or to the extent adequate provision is made for such debts and
      liabilities), and the remaining assets shall be distributed to the Members
      as
      tenants-in-common or partitioned in accordance with applicable statutes or
      apportioned in accordance with the provisions of Section 8.1(a) hereof, or
      distributed in such other reasonable manner, not inconsistent with the economic
      effect of Section 8.1(a) hereof and applicable requirements of Regulations
      Section 1.704-1 and within the time period therein set forth, as shall be
      reasonably determined by the Liquidator. The distribution of such remaining
      assets to the Members shall be made subject to any mortgages or security
      interests encumbering such assets.

     

    8.2 Cancellation
      of Certificates.
      After the affairs
      of the Company have been wound up, the property and assets of the Company have
      been liquidated, and the proceeds thereof have been applied and distributed
      as
      provided in Section 8.1(a) hereof (and/or, if applicable, there has been a
      distribution of property and assets, as provided in Section 8.1(d) hereof),
      and
      the Company has been terminated, the Members shall execute, deliver, and file
      a
      certificate of cancellation of the Certificate of Formation.

     

    ARTICLE
      IX

    MISCELLANEOUS

    

    9.1 Exculpation.
      Except in the case
      of fraud, willful misconduct, gross negligence, or a material breach of this
      Agreement, the doing of any act or the failure to do any act by a Member, the
      effect of which may cause or result in loss or damage to the Company, if done
      in
      good faith to promote the interests of the Company and if not done in material
      violation of the provisions of this Agreement, shall not subject such Member
      to
      any personal liability.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    9.2 Notices. 

    

    (a)
 Any
      and all
      notices, consents, offers, elections, and other communications (hereinafter
      referred to collectively as the "Communications"
      and individually
      as a "Communication")
      required or
      permitted under this Agreement shall be deemed adequately given only if in
      writing.

     

    (b)
 All
      Communications
      to be sent hereunder shall be given or served only if addressed to a Member
      at
      its address set forth in the records of the Company, and if delivered by hand
      (with delivery receipt required) or delivered by certified mail, return receipt
      requested, or Federal Express or similar expedited overnight commercial carrier.
      All such notices, demands, and requests shall be deemed to have been properly
      given or served, if delivered by hand, or mailed, on the date of receipt or
      of
      refusal to accept shown on the delivery receipt or return receipt, and, if
      delivered by Federal Express or similar expedited overnight commercial carrier,
      on the date that is one Day after the date upon which the same shall have been
      delivered to Federal Express or similar expedited overnight commercial carrier,
      addressed to the recipient, with all shipping charges prepaid, provided that
      the
      same is actually received (or refused) by the recipient in the ordinary course.
      The time to respond to any Communication given pursuant to this Agreement shall
      run from the date of receipt or confirmed delivery.

    

    (c)
 All
      Communications
      shall be addressed: 

    

    If
      to TRG LLC, to:

    

    The
      Taubman Company

    200
      East Long Lake
      Road 

    Bloomfield
      Hills,
      Michigan 48304 

    Attn:
      Chris B.
      Heaphy, Esq.

    

    If
      to Taubman,
      to:

    

    The
      Taubman Asset
      Group 

    200
      East Long Lake
      Road 

    Bloomfield
      Hills,
      Michigan 48304 

    Attn:
      Robert S.
      Taubman and William S. Taubman

     

    (d)
 By
      giving to the
      other parties written notice thereof, the parties hereto and their respective
      successors and assigns shall have the right from time to time and at any time
      during the term of this Agreement to change the Person(s) to receive notice
      and
      their respective addresses effective upon receipt by the other parties of such
      notice, and each shall have the right to specify as its address any other
      address within the United States of America.

     

    9.3
 Applicable
      Law.
      This Agreement
      shall be governed by, and construed in accordance with, the laws (other than
      the
      law governing choice of law) of the State of California. In the event of a
      conflict between any provision of this Agreement and any non-mandatory provision
      of the Limited Liability Company Law, the provision of this Agreement shall
      control and take precedence. 

    

    9.4  Word
      Meanings; Gender.
      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 

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    words
      appear unless
      the context otherwise requires. The singular shall include the plural and the
      masculine gender shall include the feminine and neuter, and vice versa, unless
      the context otherwise requires.

     

    9.5  Section
      Titles.
      Section titles are
      for descriptive purposes only and shall not control or alter the meaning of
      this
      Agreement as set forth in the text.

     

    9.6
 Entire
      Agreement.
      This Agreement
      contains the entire agreement between the parties hereto relative to the
      Company. 

    

    9.7
 Waiver.
      No consent or
      waiver, express or implied, by a Member to or of any breach or default by
      another Member in the performance by such other Member of its obligations
      hereunder shall be deemed or construed to be a consent or waiver to or of any
      other breach or default in the performance by such other Member of the same
      or
      any other obligation of such Member hereunder. A consent or waiver by a Member
      to any breach or default by the other Member under this Agreement shall be
      effective only if in writing and signed by the Member against whom enforcement
      of the consent or waiver is sought. Failure on the part of a Member to object
      to
      any act or failure to act of another Member or to declare another Member in
      default, irrespective of how long such failure continues, shall not constitute
      a
      waiver by such Member of its rights hereunder. 

    

    9.8
 Separability
      of Provisions.
      Each provision of
      this Agreement shall be considered separable and if for any reason any provision
      or provisions herein are determined to be invalid, unenforceable, or illegal
      under any existing or future law, such invalidity, unenforceability, or
      illegality shall not impair the operation of or affect those portions of this
      Agreement that are valid, enforceable, and legal. 

    

    9.9
 Binding
      Agreement.
      Subject to the
      restrictions on Transfers set forth herein, this Agreement shall inure to the
      benefit of and be binding upon the undersigned Members and their respective
      successors and assigns. Whenever, in this Agreement, a reference to any party
      or
      Member is made, such reference shall be deemed to include a reference to the
      permitted successors and assigns of such party or Member. 

    

    9.10
 Equitable
      Remedies.
      Except as
      otherwise provided in this Agreement, the rights and remedies of the Members
      hereunder shall not be mutually exclusive,
      i.e.,
the
      exercise of a
      right or remedy under any given provision hereof shall not preclude or impair
      exercise of any other right or remedy hereunder. Each of the Members confirms
      that damages at law may not always be an adequate remedy for a breach or
      threatened breach of this Agreement and agrees that, in the event of a breach
      or
      threatened breach of any provision hereof, the respective rights and obligations
      hereunder shall be enforceable by specific performance, injunction, or other
      equitable remedy, but nothing herein contained is intended to, nor shall it,
      limit or affect any rights at law or by statute or otherwise of any party
      aggrieved as against the other for a breach or threatened breach of any
      provision hereof.

     

    9.11
 Partition.
      No Member nor any
      successor-in-interest to a Member shall have the right while this Agreement
      remains in effect to have any property of the Company partitioned, or to file
      a
      complaint or institute any proceeding at law or in equity to have such property
      of the Company partitioned, and each Member, on behalf of itself and its
      successors and assigns, hereby waives any such right. It is the intention of
      the
      Members that the rights of the parties hereto and their successors-in-interest
      to Company property, as among themselves, shall be governed by the terms of
      this
      Agreement, and that the rights of the Members and their
      successors-in-

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    interest
      to
      Transfer any interest in the Company shall be subject to the limitations and
      restrictions set forth in this Agreement.

     

    9.12 Amendment.
      Except as provided
      in Section 3.1(d) hereof, a proposed amendment to this Agreement may be adopted
      and effective as an amendment hereto only upon the written agreement of all
      of
      the Members.

     

    9.13
 No
      Third
      Party Rights Created Hereby.
      The provisions of
      this Agreement are solely for the purpose of defining the interests of the
      Members, inter
      se;
      and no other
      Person, firm, or entity (i.e.,
      a party who is not
      a signatory hereto or a permitted successor to such signatory hereto) shall
      have
      any right, power, title, or interest by way of subrogation or otherwise, in
      and
      to the rights, powers, titles, and provisions of this Agreement.

     

    9.14
 Liability
      of Members.
      Except as
      otherwise provided in this Agreement, any liability or debt of the Company
      shall
      first be satisfied out of the assets of the Company, including the proceeds
      of
      any liability insurance which the Company may recover, and thereafter, in
      accordance with the applicable provisions of the Limited Liability Company
      Law.

     

    9.15
 Additional
      Acts and Instruments.
      Each Member hereby
      agrees to do such’ further acts and things and to execute any and all
      instruments necessary or desirable and as reasonably required in the future
      to
      carry out the full intent and purpose of this Agreement.

     

    9.16
 Organization
      Expenses.
      The Members
      authorize the Company to elect, pursuant to Section 709(b) of the Code, to
      deduct in the taxable year the Company began business amounts paid or incurred
      to organize the Company to the extent, if any, permitted by Section 709(b)
      of
      the Code and to amortize the balance of the organizational expenses over a
      period of one hundred eighty (180) months beginning in the taxable year the
      Company began business.

    

    9.17
 Agreement
      in Counterparts.
      This Agreement may
      be executed in two (2) or more counterparts, all of which as so executed shall
      constitute one Agreement, binding on all of the parties hereto, notwithstanding
      that all the parties are not signatory to the original or the same counterpart;
      provided, however, that no provision of this Agreement shall become effective
      and binding unless and until all parties hereto have duly executed this
      Agreement, at which time this Agreement shall then become effective and binding
      as of the date first-above written. Any executed counterpart of this Agreement
      that is delivered by facsimile transmission or other electronic transmission
      shall be deemed to have been fully and properly executed and delivered for
      all
      purposes of this Agreement. 

    

    9.18
 Attorneys-in-Fact.
      Any Member may
      execute a document or instrument or take any action required or permitted to
      be
      executed or taken under the terms of this Agreement by and through an
      attorney-in-fact duly appointed for such purpose (or for purposes including
      such
      purpose) under the terms of a written power of attorney (including any power
      of
      attorney granted herein).

     

    9.19
 Consents,
      Approval, Etc.
      Whenever the
      consent or approval of a Member is required under any provision of this
      Agreement or a matter is subject to the satisfaction of a Member, then, except
      as otherwise specifically provided in this Agreement, such Member shall not
      unreasonably withhold or delay such consent or approval and shall not be
      unreasonable or delay in deciding whether such matter is
      satisfactory.

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

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

     

    TRG
      SUNVALLEY LLC,
      a Delaware limited liability company 

    

    
      	 	
              By:

            	
              The
                Taubman
                Realty Group Limited Partnership, a Delaware limited partnership
                

            

    

    

    

    By: /s/
      Chris B. Heaphy     _____ 

    Chris
      B. Heaphy,
      Authorized Signatory

    

     

    AND:

    

    

    TILC-SV,
      LLC, a
      Michigan limited liability company

    

    
      	 	
              By:

            	
              The
                Robert S.
                Taubman Revocable Trust dated August 9, 1982, as amended, a
                manager

            

    

    

    

    By:/s/
      Robert S.
      Taubman      

    Robert
      S. Taubman,
      Trustee

     

     

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

     

    Legal
      Description

     

    The
      land referred
      to is situated in the County of Contra Costa, City of Concord, State of
      California, and is described as follows:

    

    PARCEL
      ONE:

    

    All
      that portion of
      the Rancho Monte Del Diablo designated “Parcel One” in that certain Decree
      Quieting Title, entered in Contra Costa County Superior Court, Case No. 69596,
      a
      certified copy of which was recorded November 29, 1957 in Book 3082 of Official
      Records, Page 495, being the portion thereof designated “Parcel Three” in the
      Deed from Johnne Burnett to Hope Bartnett Belloc recorded November 15, 1961
      in
      Book 3995 of Official Records, Page 262, which portion is more particularly
      described as follows:

    

    BEGINNING
      at the
      most Southerly corner of said “Parcel One” (3082-OR-495); thence, along the
      exterior boundary thereof North 07° 14’ 34” West 2860.93 feet (to the South line
      of the parcel of land firstly described in the Deed from Antonio A. Lucos,
      et
      ux, to Eugenia Gianelli, et al, recorded February 5, 1925 in Book 482 of Deeds,
      at Page 372); thence (along the South line of Gianelli) North 79° 59’ 40” East
      722.04 feet (to the Eastern line of the land described secondly in 482-Dds-372);
      thence North 09° 55’ 06” West 318.24 feet to the intersection thereof with the
      Southwesterly line of the land designated “Parcel One” in the Deed to the State
      of California recorded March 29, 1962 in Book 4086 of Official Records, at
      Page
      235; thence, along the Southwesterly line of said State land: South 32° 17’ 20”
East 1240.77 feet; South 26° 54’ 09” East 1001.11 feet; Southwesterly along the
      arc of a curve to the Right, with a radius of 125.00 feet, tangent to the last
      mentioned course, 159.09 feet; South 42° 48’ 36” West, tangent to the last
      mentioned curve, 205.65 feet; and South 38° 44’ 22” East 30.05 feet to the
      Southeasterly line of “Parcel One” of said Decree Quieting Title (3082-OR-495);
      thence South 51° 16’ 07” West, along said Southeasterly line, to the Point of
      Beginning.

    

    EXCEPT
      the portion
      of the aforesaid land described in Deed to City of Concord, a California general
      law city, recorded February 27, 1963 in Book 4311 of Official Records, at Page
      647, to wit: BEGINNING on the East line of the State Highway leading from
      Pacheco to Walnut Creek, at the Southern corner of the tract of land described
      as “Parcel One” in the Decree of Distribution (in the Matter of the Estate of
      Peter Bartnett), a certified copy of which was recorded April 7, 1959 in Book
      3350 of Official Records, at Page 100; thence North 07° 18’ 20” West, along said
      East line, 700.00 feet; thence North 82° 41’ 40” East 20.00 feet; thence South
      08° 22’ 00” East 270.05 feet to a point, hereinafter referred to as Station “A”;
      thence South 12° 00’ 00” East 292.71 feet to a point on the arc of a tangent
      curve to the Left, having a radius of 30.00 feet; thence Southerly and Easterly
      on said curve, through an angle of 113°00’ 00”, an arc distance of 59.17 feet;
      thence North 55° 00’ 00” East 292.47 feet to a line drawn parallel with and
      30.00 feet Northwesterly, measured at right angles, from the Southeast line
      of
      said Decree’s “Parcel One” (3350-OR-100); thence North 51° 16’ 07” East, along
      said parallel line, 1197.84 feet; thence South 38° 43’ 06” East 30.00 feet to
      said Southeast line (“Parcel One” 3350-OR-100); thence South 51° 16’ 07” West,
      along said Southeast line, 1628.39 feet to the Point of Beginning.

    

    AND
      EXCEPT the
      interest of the City of Pleasant Hill, a California municipal corporation,
      by
      Deed recorded January 1, 1966 in Book 5062 of Official Records, at Page 8,
      as to
      that portion of the foregoing land described as follows: BEGINNING at the
      Northwestern corner of the parcel 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    of
      land described
      as Parcel Two-C in the Lis Pendens recorded July 29, 1960 in Book 3671 of
      Official Records, at Page 76 (being the same parcel of land described in Deed
      to
      the City of Concord recorded in Book 4311 of Official Records, at Page 647);
      thence North 07° 14’ 34” West 2160.88 feet to the Southerly line of the 22.16
      acre parcel of land described in Deed to Eugenia Gianelli, et al, recorded
      February 5, 1925 in Book 482 of Deeds, at Page 372; thence North 80° 00’ 11”
East 16.89 feet; thence South 07° 18’ 19” East 2161.65 feet; thence South 82°
41’ 40” West 20.00 feet to the Point of Beginning.

    

    ALSO
      EXCEPT the
      portion of the aforesaid land designated “Parcel One” in the Deed to the State
      of California recorded August 21, 1978 in Book 8975 of Official Records, at
      Page
      108, being more particularly described as follows: COMMENCING at the
      Southeasterly terminus of that certain course described as “N. 26° 54’ 09” W.,
      1001.11 feet” in “Parcel 1” of the Deed to the State of California recorded
      March 29, 1962 in Book 4086 of Official Records, at Page 235; thence, along
      the
      general Southwesterly line of said “Parcel 1”, from a tangent that bears South
      26° 54’ 09” East, along a curve to the Right, with a radius of 125.00 feet,
      through an angle of 69° 42’ 45”, an arc length of 152.00 feet and South 42° 48’
36” West 176.22 feet; thence North 25° 53’ 01” West 44.94 feet; thence North 37°
19’ 32” West 136.13 feet; thence along a tangent curve to the Right, with a
      radius of 250.00 feet, through an angle of 59° 40’ 50”, an arc length of 260.41
      feet to a point of reverse curvature; thence, along a tangent curve to the
      Left,
      with a radius of 550.00 feet, through an angle of 43° 18’ 04”, an arc length of
      415.66 feet to said general Southwesterly line of “Parcel 1” (4086-OR-235);
      thence, along last said line, South 26° 54’ 09” East 594.74 feet to the Point of
      Commencement.

    

    AND
      ALSO EXCEPT the
      interest dedicated to the City of Concord by that certain Offer recorded
      September 28, 1978 in Book 9030 of Official Records, at Page 665, and accepted
      by Resolution recorded November 19, 1979 in Book 9085 of Official Records,
      at
      Page 354, the affected land being more particularly described as follows:
      BEGINNING at the most Westerly corner of the land described as “Parcel 1” in the
      Deed from Burnett, et al, to the State of California recorded March 29, 1962
      in
      Book 4086 of Official Records, at Page 235, being the “True Point of
      Commencement” described in said Deed and lying on the Northwesterly line of
      Willow Pass Road, 110.00 feet in width; thence, along the Northwesterly line
      of
      Willow Pass Road, South 51° 15’ 38” West 314.00 feet; thence leaving said line,
      at right angles, North 38° 44’ 22” West 29.00 feet; thence North 51° 15’ 38”
East 12.00 feet; thence South 83° 44’ 10” East 31.12 feet to a point 7.00 feet
      (measured at right angles) from said Northwesterly line of Willow Pass Road;
      thence, parallel to said line, North 51° 15’ 38” East 327.12 feet to a point on
      the Northwesterly line the aforementioned State Parcel (4086-OR-235); thence,
      along said line, South 42° 48’ 36” West 47.63 feet to the Point of
      Beginning.

    AND
      FURTHER EXCEPT
      all of the aforesaid land encompassed with the boundaries of the land shown
      and
      designated Parcels “A” and “B” on Parcel Map MSC 36-80 filed January 27, 1981 in
      Book 92 of Parcel Maps, at Page 7, in the Office of the Contra Costa County
      Recorder.

    

    APN(s):
      153-230-023, 024 and 025

    

    PARCEL
      TWO:

    

    Parcel
“A”
as
      shown
      on Parcel Map MSC 36-80, filed January 27, 1981 in Book 92 of Parcel Maps,
      at
      Page 7, in the Office of the Contra Costa County Recorder.

    

    APN(s):
      153-230-007
      and 022

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    PARCEL
      THREE:

    

    Parcel
“B”
as
      shown
      on the Parcel Map MSC 36-80, filed January 27, 1981 in Book 92 of Parcel Maps,
      at Page 7, in the Office of the Contra Costa County Recorder.

    EXCEPT
      all that
      real property interest contained or created in those certain Quitclaim Deeds
      to
      Carter Hawley Hale Stores, Inc., a California corporation, recorded January
      29,
      1982 in Book 10660 of Official Records, at Pages 114 and 118, under respective
      Recorder’s Serial Numbers 82-10034 and 82-10035, being more particularly
      described as:

    

    All
      buildings,
      structures and other improvements, together with all fixtures located and to
      be
      located in or on Parcel “B” as shown on the Map of MSC 36-80, filed January 27,
      1981 in Book 92 of Parcel Maps, at Page 7, in the Office of the Contra Costa
      County Recorder, which buildings, structures, improvements and fixtures are
      and
      shall remain real property.

    

    APN:
      153-230-021

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Exhibit
      B

    Members
      of
      Taubman

    

    
      	
              Name
                of Member

            	
              Membership
                Interest

            
	
              The
                Robert S.
                Taubman Revocable Trust dated August 9, 1982, as amended

            	
              16.66666666%

            
	
              The
                William
                S. Taubman Revocable Trust dated June 10, 1993

            	
              16.66666666%

            
	
              The
                Gayle
                Taubman Kalisman Revocable Trust dated March 22, 1981, as
                amended.

            	
              1.0%

            
	
              The
                Alexander
                Taubman Irrevocable Trust, under the Robert S. Taubman Irrevocable
                Trust
                Agreement dated May 2, 2006 

            	
              4.16666666%

            
	
              The
                Ghislaine
                Taubman Irrevocable Trust, under the Robert S. Taubman Irrevocable
                Trust
                Agreement dated May 2, 2006

            	
              4.16666666%

            
	
              The
                Theodore
                Taubman Irrevocable Trust, under the Robert S. Taubman Irrevocable
                Trust
                Agreement dated May 2, 2006

            	
              4.16666666%

            
	
              The
                Sebastian
                Taubman Irrevocable Trust, under the Robert S. Taubman Irrevocable
                Trust
                Agreement dated May 2, 2006

            	
              4.16666666%

            
	
              The
                Abigail
                Taubman Irrevocable Trust, under the William S. Taubman Irrevocable
                Trust
                Agreement dated December 14, 2006

            	
              8.33333333%

            
	
              The
                Oliver
                Taubman Irrevocable Trust, under the William S. Taubman Irrevocable
                Trust
                Agreement dated December 14, 2006

            	
              8.33333333%

            
	
              The
                PTK 2000
                Trust, under Trust Agreement dated May 26, 2004

            	
              16.16666666%

            
	
              The
                JTK
                Trust, under Trust Agreement dated May 26, 2004

            	
              16.16666666%Summary of Compensation for the Board of Directors

     

     

    Exhibit
      10 (ae)

     

    SUMMARY
      OF
      COMPENSATION FOR

    THE
      BOARD
      OF DIRECTORS OF 

    TAUBMAN
      CENTERS, INC.

     

     

      
        

      

    

     

     

    Non-employee
      directors receive the following compensation:

     

    
      	
               

              Compensation

               

            	
               

              Amount

               

            
	
               

              Annual
                Cash
                Retainer (1)

               

            	
               

              $35,000
                in
                aggregate, paid quarterly in advance 

               

            
	
               

              Annual
                Equity
                Retainer (1)

               

            	
               

              Taubman
                Centers, Inc. (the “Company”) common stock having a fair market value (as
                of the last business day of the preceding quarter) of $50,000 in
                aggregate, granted quarterly in advance

               

            
	
               

              Meeting
                Fee
                (board or committee meetings):

               

            	
               

              $1,500
                per
                meeting attended 

               

            
	
               

              Annual
                Fee
                for Audit Committee Chair:

               

            	
               

              $12,500
                

               

            
	
               

              Annual
                Fee
                for Compensation Committee Chair: 

               

            	
               

              $7,500
                

               

            
	
               

              Annual
                Fee
                for Nominating and Corporate Governance Committee Chair:

               

            	
               

              $5,000
                

               

            

    

    ________________________

    (1)
      In accordance with the Taubman Centers, Inc. Non-Employee Directors’ Deferred
      Compensation Plan, non-employee directors are permitted to defer the receipt
      of
      all or a portion of the annual cash retainer and annual equity retainer until
      the termination of his or her service on the Board of Directors and for such
      deferred compensation to be denominated in restricted stock units, representing
      the right to receive shares of the Company’s common stock at the end of the
      deferral period. During the deferral period, when the Company pays cash
      dividends on its common stock, the directors’ deferral accounts will be credited
      with dividend equivalents on their deferred restricted stock units, payable
      in
      additional restricted stock units based on the then-fair market value of the
      Company’s common stock. Each director's account is 100% vested at all
      times.

    

     

    The
      Company also
      reimburses members of the Board of Directors for all expenses incurred in
      attending meetings or performing their duties as directors. 

     

     

    Members
      of the
      Board of Directors who are employees or officers of the Company or any of its
      subsidiaries do not receive any compensation for serving on the Board of
      Directors or any committees thereof. 

     

     

      
        

      

    

    Effective
      January
      1, 2007.

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