Document:

EXECUTION
COPY

    

    AMENDMENT NO. 3 TO THE
CONTRIBUTION AGREEMENT

     

    THIS AMENDMENT NO. 3 TO THE
CONTRIBUTION AGREEMENT, made this 30th day of
August, 2010 (this “Amendment”), is made
by and among Simon Property Group, Inc., a Delaware corporation (“Parent REIT”), Simon
Property Group, L.P., a Delaware limited partnership (“Parent OP”), Marco
Capital Acquisition, LLC, a Delaware limited liability company and a wholly
owned subsidiary of Parent OP (“Parent Sub,” and
together with Parent REIT and Parent OP, the “Parent Parties”),
Lightstone Prime, LLC, a Delaware limited liability company (“Lightstone Prime”)
(solely in its capacity as the Representative), and Prime Outlets Acquisition
Company LLC, a Delaware limited liability company (the “Company”).  Except
as expressly set forth in this Amendment, all capitalized terms used herein
shall have the meanings ascribed to them in the Contribution
Agreement.

     

    WITNESSETH:

     

    WHEREAS, the parties hereto
and certain of their affiliates have entered into that certain Contribution
Agreement, dated as of December 8, 2009, Amendment No. 1 thereto dated as
of May 13, 2010, and Amendment No. 2 thereto dated as of June 28, 2010
(such Contribution Agreement, including Amendment No. 1 and Amendment No. 2
thereto, as further amended from time to time, the “Contribution
Agreement”);

     

    WHEREAS, in accordance with
Section 7.1(b) of the Contribution Agreement, the Parent Parties and the
Company have agreed to amend the Contribution Agreement to provide that
(i) Prime Manager will transfer to the Company, without payment of any
additional consideration, the assets of Prime Manager (including specified
Contracts) relating to the operation of any of the Group Companies or their
properties, (ii) the Company will assume the liabilities of Prime Manager
under the specified Contracts assigned to the Company other than retained
liabilities (which will include any liabilities under such Contracts to Prime
Manager or any of the Contributors), and (iii) the Company shall distribute
pro rata to its members all of the ownership interests owned by the Company in
Prime Manager;

     

    WHEREAS, in accordance with
Section 9.3 of the Contribution Agreement, which provides that, among other
things, the Contribution Agreement may be amended or modified by a written
agreement executed and delivered by duly authorized officers of Parent REIT,
Parent OP, Parent Sub, the Company and the Representative, the parties hereto
desire to enter into this Amendment to amend the Contribution Agreement;
and

     

    WHEREAS, pursuant to
Section 11.1 of the Contribution Agreement, the Representative is
authorized to execute this Amendment on behalf of the Contributors, which
Amendment will thereupon be binding upon the Contributors.

     

    NOW, THEREFORE, in
consideration of the mutual promises and covenants contained herein, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties, intending to be legally bound, agree as
follows:

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    1.          Definitions.

     

    (a)        The
following definitions in Section 1.1 of the Contribution Agreement are
hereby amended and restated in their entirety to read as set forth
below:

     

    “Aggregate Consideration
Value” means (i) the Enterprise Value, increased by
(ii) the Net Working Capital Adjustment (if a positive number), decreased by
(iii) the absolute value of the Net Working Capital Adjustment (if a
negative number), decreased by
(iv) the amount of Closing Date Funded Indebtedness, decreased by
(v) the Company Transaction Expenses, increased by
(vi) the amount of Paid Post-Signing Allowances and Commissions, decreased by
(vii) the Minority Cash Amount.  For the avoidance of doubt, no
item (or element thereof) shall be included more than once in any of the
foregoing clauses in the calculation of the Aggregate Consideration
Value.  For illustrative purposes, attached as Schedule 1.1(A)
is a hypothetical calculation of the Aggregate Consideration Value.

     

    “Company Transaction
Expenses” means, without duplication, (i) the expenses of the Group
Companies incurred in connection with the negotiation and consummation of this
Agreement and the other Transaction Documents (or any alternative transaction)
that are either payable as of immediately prior to, at or after the Closing or
that are contingent upon the consummation of the Contemplated Transactions,
including attorney fees, financial advisor fees, accountant fees, and including,
for the avoidance of doubt, the fees and expenses of the Persons set forth on
Schedule 1.1(C),
(ii) the Company Consent Fees, (iii) the Company Transaction Taxes and
(iv) the Severance, Employment and Shut-Down Costs; provided, that in
each case, that Company Transaction Expenses shall not include any Unpaid
Post-Signing Allowances and Commissions.

     

    “Contemplated
Transactions” means the Contributions and the other transactions
contemplated by this Agreement and the other Transaction Documents (but not
including any of the Entity Distributions or the Prime Manager
Transfer).

     

    “Enterprise Value”
means two billion, one hundred sixty three
million dollars ($2,163,000,000) (equal to (i) two billion, one hundred forty eight
million dollars ($2,148,000,000) (the Enterprise Value in Amendment No. 2) plus
(ii) fifteen million dollars ($15,000,000)).

     

    “Estimated Aggregate
Consideration Value” means a good faith estimate of the Aggregate
Consideration Value prepared by the Company.  In connection with
determining the Estimated Aggregate Consideration Value, the Company
(a) shall use the actual Enterprise Value and the actual Minority Cash
Amount and (b) shall estimate the amount of (i) the Net Working
Capital Adjustment, (ii) the Paid Post-Signing Allowances and Commissions,
(iii) the Closing Date Funded Indebtedness, and (iv) Company
Transaction Expenses.

    
      
         

      

      
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    “Excluded Liabilities”
means any Loss, as such term is defined in Section 10.2(a),
incurred by Parent OP or its Affiliates (including the Group Companies) after
the Closing as a result of (i) the conduct of business by Grand Prairie,
Livermore, Prime Development or any of their respective Subsidiaries prior to
Closing, including construction, development and leasing activities and any debt
obligations, guarantees of debt or completion of construction guarantees of
Grand Prairie, Livermore, Prime Development or any of their respective
Subsidiaries; (ii) the ownership by Grand Prairie, Livermore, Prime
Development or any of their respective Subsidiaries as of Closing of any real
property; and (iii) the items set forth on Schedule 1.1(G);
provided, that
“Excluded Liabilities” shall not include (i) any Loss incurred by Parent OP
or its Affiliates (including the Group Companies) to the extent arising as a
result of any of the Entity Distributions or the Prime Manager Transfer or from
any liabilities of Prime Manager which are assumed by the Company pursuant to
the Prime Manager Transfer or (ii) any Excluded Grand Prairie Guarantee
Liabilities.

     

    “Funded Indebtedness”
means, as of any time, without duplication, the outstanding principal amount of,
and accrued and unpaid interest on, any obligations of any Group Company
consisting of (a) indebtedness for borrowed money, whether secured or
unsecured, or indebtedness issued in substitution or exchange for borrowed money
or for the deferred purchase price of property or services (but excluding any
trade payables and accrued expenses arising in the ordinary course of business
and included in the calculation of current liabilities for purposes of Net
Working Capital), (b) indebtedness evidenced by any note, bond, debenture
or other debt security, (c) obligations under any interest rate, currency
or other hedging agreements (valued at the termination value thereof),
(d) the outstanding shares of Prime Retail Series C Preferred, including
all accrued and unpaid dividends thereon, (e) obligations under capitalized
leases, (f) the obligation set forth on Schedule 1.1(F)
to the extent unpaid, and (g) the deferred purchase price for real properties or
Persons owning real properties (which, for the avoidance of doubt, shall not
include any amounts required to be paid to exercise any real property purchase
options), in each case, as of such date.  Notwithstanding the
foregoing, (x) “Funded Indebtedness” shall not include any
(i) obligations under operating leases, (ii) undrawn letters of
credit, (iii) LIBOR breakage fees and (iv) obligations of a Group
Company to any other Group Company and (y) solely for purposes of
calculating the Aggregate Consideration Value, “Funded Indebtedness” shall not
include any amount in respect of clause (f) above.

     

    “Group Companies”
means, collectively, the Company, Ewell, Mill Run and each of their respective
Subsidiaries (but excluding Livermore, Prime Development, Grand Prairie, Prime
Manager and each of their respective Subsidiaries).

     

    “Net Working Capital”
means, with respect to the Group Companies, net book value of those current
assets of the Group Companies as of immediately prior to the Closing (without
giving effect to the Contemplated Transactions) that are included in the line
item categories of current assets specifically identified on Exhibit C, less the net book
value of those current liabilities of the Group Companies as of immediately
prior to the Closing (without giving effect to the Contemplated Transactions)
that are included in the line item categories of current liabilities
specifically identified on Exhibit C, in
each case, without duplication, and as determined in a manner strictly
consistent with the principles used in the preparation of the Financial
Statements (the “Accounting
Principles”); provided, that
(a) Pre-Signing Allowances and Commissions shall be treated as current
liabilities (without regard to whether they would constitute current liabilities
in accordance with GAAP) and (b) Unpaid Post-Signing Allowances and
Commissions shall not be treated as current liabilities (without regard to
whether they would constitute current liabilities in accordance with
GAAP).  Notwithstanding anything to the contrary contained herein, in
no event shall “Net Working Capital” (including the determination of current
assets and current liabilities) include any amounts to the extent included in
the calculation of Closing Date Funded Indebtedness or Company Transaction
Expenses.

    
      
         

      

      
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    “Pre-Signing Allowances and
Commissions” means (a) any unpaid out-of-pocket payments under any
lease or sublease executed prior to the date hereof by any Group Company (as
lessor or sublessor, as applicable) and any tenant thereof that are required to
be paid by the landlord thereunder to, or for the benefit of, the tenant
thereunder which is in the nature of a tenant inducement or concession,
including, without limitation, tenant improvement costs, design, refurbishment
and other work allowances, lease buyout costs, and moving allowances (but
excluding free rent); and (b) all unpaid brokerage and leasing commissions
and other similar payments payable to brokers or leasing agents (including third
party brokers and leasing agents and brokers and leasing agents employed by or
providing services to any Group Company or an Affiliate thereof) required to be
paid by any Group Company, in each case with respect to any lease or sublease
executed prior to the date hereof by any Group Company (including by reason of
the exercise by a tenant under such a lease or sublease of any renewal option,
extension option, expansion option, lease of additional space, right of first
offer, right of first refusal or similar right or option or the lapse or waiver
by a tenant under any lease or sublease executed by any Group Company prior to
the date hereof of any right of cancellation in each case on or after the date
hereof).

     

    “Property Employees”
means all current employees of Prime Manager (other than Management Employees)
who provide individual services at a property of a Group Company, including
those on short-term disability (and expected to not go on long-term disability)
or short-term leave of absence, whether paid or unpaid, but not on a layoff or
long-term disability.

     

    “Severance, Employment and
Shut-Down Costs” means any out-of-pocket costs or expenses (including
reasonable legal expenses) reasonably incurred, or otherwise required to be paid
by Parent REIT, Parent OP or any of their Affiliates (including any Group
Company at or after the Closing), relating to or arising out of (i) the
termination of the Corporate Office Lease after September 30, 2010 (provided, that Parent
OP shall have  permitted the Representative at all times following the
Closing to control any negotiations with the landlord(s) thereunder in respect
of such termination and provided, further, that an
amount equal to one- (1-) month of rent thereunder shall be subtracted from the
amount of Severance, Employment and Shut-Down Costs) and (ii) any liability
or obligation, whether arising before or after the Closing Date, relating to or
arising out of (A) any Employee Benefit Plan or Employee Agreement,
(B) any employee benefit, welfare or pension or other employment
obligation, whether or not scheduled, of any Group Company or applicable to any
Employee that arises or is accrued on or prior to the Closing, (C) the
termination of an Employee at or prior to the Closing (including any change in
control and/or severance payments) other than liabilities under WARN as
described in the exception in Section 6.10(e)
and (D) any legal action taken against Parent REIT, Parent OP or any of
their Affiliates (including any Group Company), by any Employee described in the
preceding clause (C); provided, however,
that (x) claims arising out of any claim of employment discrimination
relating to events prior to the Closing (other than arising out of or relating
to the termination of any Employee as contemplated by Section 6.10)
shall not be included in the calculation of Severance, Employment and Shut-Down
Costs, (y) any costs or expenses included in the definition of Barceloneta
Severance, Employment and Shut-Down Costs (as defined in the Barceloneta
Contribution Agreement) which are also included in this definition of Severance,
Employment and Shut-Down Costs shall not be included in the calculation of
Barceloneta Severance, Employment and Shut-Down Costs and (z) any amounts
payable by a Group Company or Parent Party to any Retained Property
Employees that arise from and after the Closing Date shall not be
included in the calculation of Severance Employment and Shut-Down
Costs.

    
      
         

      

      
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    “Transaction
Documents” means this Agreement, Amendment No. 1, Amendment No. 2,
Amendment No. 3, the New Company Agreement, the LP Purchase Agreement, the Tax
Matters Agreements, the Escrow Agreement, the Prime Manager Assignment Agreement
and the Mill Run Letter Agreement.

     

    (b)        Section 1.1
of the Contribution Agreement is hereby amended by adding the following defined
terms:

     

    “Amendment No. 3”
means the Amendment No. 3 to this Agreement, dated as of August 30, 2010,
by and among the Parent Parties, Lightstone Prime and the Company.

     

    “Corporate Office
Lease” means the lease set forth on Schedule 1.1(E).

     

    “Paid Post-Signing Allowances
and Commissions” means (a) any out-of-pocket payments made by or on
behalf of any Group Company or Prime Manager prior to the Closing under any
lease or sublease executed on or after the date hereof by any Group Company (as
lessor or sublessor, as applicable) and any tenant thereof to, or for the
benefit of, the tenant thereunder which is in the nature of a tenant inducement
or concession, including, without limitation, tenant improvement costs, design,
refurbishment and other work allowances, lease buyout costs, and moving
allowances (but excluding free rent); and (b) an amount equal to the
brokerage and leasing commissions and other similar payments paid by or on
behalf of any Group Company or Prime Manager prior to the Closing to brokers or
leasing agents (including third party brokers and leasing agents and brokers and
leasing agents employed by or providing services to any Group Company, Prime
Manager or an Affiliate thereof), in each case with respect to any lease or
sublease executed on or after the date hereof by any Group Company (including by
reason of the exercise by a tenant under such a lease or sublease of any renewal
option, extension option, expansion option, lease of additional space, right of
first offer, right of first refusal or similar right or option or the lapse or
waiver by a tenant under any lease or sublease executed by any Group Company on
or after the date hereof of any right of cancellation in each case on or after
the date hereof).  Notwithstanding the foregoing, in no event shall
the amount of Paid Post-Signing Allowances and Commissions exceed
$682,103.

    
      
         

      

      
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    “Prime Manager Assigned
Assets” means the “Assets” and “Assigned Contracts”, each case as defined
in the Prime Manager Assignment Agreement.

     

    “Prime Manager
Distribution” has the meaning set forth in Section 2.7.

     

    “Prime Manager
Transfer” has the meaning set forth in Section 2.7.

     

    “Prime Manager Assignment
Agreement” means the assignment and assumption agreement attached hereto
in Exhibit H.

     

    “Unpaid Post-Signing
Allowances and Commissions” means (a) any unpaid out-of-pocket
payments under any lease or sublease executed on or after the date hereof by any
Group Company (as lessor or sublessor, as applicable) and any tenant thereof
that are required to be paid by the landlord thereunder to, or for the benefit
of, the tenant thereunder which is in the nature of a tenant inducement or
concession, including, without limitation, tenant improvement costs, design,
refurbishment and other work allowances, lease buyout costs, and moving
allowances (but excluding free rent); and (b) all unpaid brokerage and
leasing commissions and other similar payments payable to brokers or leasing
agents (including third party brokers and leasing agents and brokers and leasing
agents employed by or providing services to any Group Company or an Affiliate
thereof) required to be paid by any Group Company, in each case with respect to
any lease or sublease executed on or after the date hereof by any Group Company
(including by reason of the exercise by a tenant under such a lease or sublease
of any renewal option, extension option, expansion option, lease of additional
space, right of first offer, right of first refusal or similar right or option
or the lapse or waiver by a tenant under any lease or sublease executed by any
Group Company on or after the date hereof of any right of cancellation in each
case on or after the date hereof).

     

    (c)         Section 1.1
of the Contribution Agreement is hereby amended by deleting the defined terms
“Post-Signing Allowances and Commissions”, “Retained Management Employee” and
“Terminated Agreements”.

     

    2.          Amendment to
Section 2.3(b).  The sentence added at the end of
Section 2.3(b) of the Contribution Agreement pursuant to Amendment No. 2 is
hereby amended and restated as follows:

    
      
         

      

      
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     “For
the avoidance of doubt, except for the Prime Manager Assigned Assets and except
as provided in the definition of “Paid Post-Signing Allowances and Commissions”,
each of (i) the assets, liabilities and financial condition, including
working capital and debt, of Livermore, Prime Development, Grand Prairie, St.
Augustine, the St. Augustine Land, Prime Manager and any Subsidiaries of
Livermore, Prime Development, Grand Prairie, St. Augustine and Prime Manager and
(ii) the assets and liabilities of any Group Company related to or arising
with respect to Livermore, Prime Development, Grand Prairie, St. Augustine, the
St. Augustine Land, Prime Manager, any Subsidiaries of Livermore, Prime
Development, Grand Prairie, St. Augustine, Prime Manager, the Grand Prairie
Guarantee, the Prime Manager Transfer or any of the Entity Distributions, shall
be excluded from the calculation of the Final Aggregate Consideration Value and
the Estimated Aggregate Consideration Value and any component thereof, including
the calculation of Net Working Capital, Net Working Capital Adjustment, and
Funded Indebtedness. For further clarity, the Final Aggregate Consideration
Value and the Estimated Aggregate Consideration Value and any component thereof,
including the calculation of Net Working Capital, Net Working Capital
Adjustment, and Funded Indebtedness, shall be calculated assuming that the
contracts to be terminated pursuant to the Prime Manager Assignment Agreement
shall not have been terminated but instead shall have been assigned to the
Company immediately prior to Closing.”

     

    3.          
Amendment to
Section 2.3(d).

     

    Section 2.3(d)(i) of
the Contribution Agreement shall be amended and restated in its entirety to read
as follows:

     

    “As soon
as practicable, but no later than 120 calendar days after the Closing Date,
Parent OP shall prepare and deliver to the Representative (A) a proposed
calculation of the Net Working Capital as of immediately prior to the Closing,
(B) a proposed calculation of the amount of the Paid Post-Signing
Allowances, (C) a proposed calculation of the amount of Closing Date Funded
Indebtedness, (D) a proposed calculation of the amount of Company
Transaction Expenses (including each of the components thereof), and (E) a
proposed calculation of the Aggregate Consideration Value, and, in each case,
the components thereof.  The proposed calculations described in the
previous sentence shall collectively be referred to herein from time to time as
the “Proposed Closing
Date Calculations.””

    
      
         

      

      
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    Section 2.3(d)(ii) of
the Contribution Agreement shall be amended and restated in its entirety to read
as follows:

    

    “If the
Representative does not give written notice of dispute (an “Aggregate Consideration
Dispute Notice”) to Parent OP by 5:00 p.m. New York City time on the
30th
calendar day following receipt of the Proposed Closing Date Calculations, the
Representative (on behalf of the Contributors) and the Parent Parties agree that
the Proposed Closing Date Calculations shall be deemed to set forth the final
Net Working Capital, Paid Post-Signing Allowances and Commissions, Closing Date
Funded Indebtedness, Company Transaction Expenses and Aggregate Consideration
Value, in each case, for all purposes hereunder
(including, without limitation, the determination of the Actual
Adjustment).  If the Representative gives an Aggregate Consideration
Dispute Notice to Parent OP (which Aggregate Consideration Dispute Notice must
set forth, in reasonable detail, the items and amounts in dispute and all other
items and amounts not so disputed shall be deemed final) within such 30-day
period, Parent OP and the Representative shall use reasonable efforts to resolve
the dispute during the 30-day period commencing on the date Parent OP receives
the applicable Aggregate Consideration Dispute Notice from the
Representative.  If the Representative and Parent OP do not agree upon
a final resolution with respect to such disputed items within such 30-day
period, then the remaining items in dispute shall be submitted immediately to
PricewaterhouseCoopers or, if such firm is unable or unwilling to serve, to an
independent nationally-recognized accounting firm mutually acceptable to Parent
OP and the Representative (excluding their respective regularly used accounting
firms) (such accounting firm, the “Accounting
Firm”).  Parent OP and the Representative shall request the
Accounting Firm to render a determination (which determination shall be made
consistent with the terms of this Agreement for calculating the amount(s) in
dispute) with respect to the applicable dispute within 45 days after referral of
the matter to such Accounting Firm, which determination must be in writing and
must set forth, in reasonable detail, the basis therefor.  The
determination made by the Accounting Firm with respect to each of the remaining
disputed items (and only the remaining disputed items) shall not be greater than
or less than the amounts proposed by the Representative and Parent OP, as the
case may be, for each of such disputed items.  The terms of
appointment and engagement of the Accounting Firm shall be as agreed upon
between the Representative and Parent OP, and any associated engagement fees
shall initially be borne by Parent OP; provided, that such
fees shall ultimately be allocated in accordance with Section 2.3(d)(iii).  The
Accounting Firm shall act as an arbitrator and not an expert and the
determination of such Accounting Firm shall constitute an arbitral award and
shall be conclusive and binding upon the Parent Parties, the Contributors and
the Representative upon which a judgment may be rendered by a court having
proper jurisdiction thereover.  Parent OP and the Representative shall
jointly revise the Proposed Closing Date Calculations as appropriate to reflect
the resolution of any objections thereto pursuant to this Section 2.3(d)(ii),
and, as revised, such Proposed Closing Date Calculations shall be deemed to set
forth the final Net Working Capital, Paid Post-Signing Allowances and
Commissions, Closing Date Funded Indebtedness, Company Transaction Expenses and
Aggregate Consideration Value, in each case, for all purposes hereunder
(including, without limitation, the determination of the Actual
Adjustment).  The procedures set forth in this Section 2.3
shall be the sole and exclusive remedy with respect to the determination of the
Aggregate Consideration Value and any disputes with respect to any components
thereof.”

    
      
         

      

      
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    4.          Amendment to
Section 2.7.  Section 2.7 of the Contribution
Agreement is hereby amended and restated in its entirety to read as
follows:

     

    “Section 2.7   Prime Manager Transfer;
Distribution of Ownership Interests in Prime Manager, Livermore, Prime
Development and Grand Prairie

     

    Upon the
terms and subject to the conditions set forth in this Agreement, immediately
prior to the Closing, (i) the Company and Prime Manager shall execute the
Prime Manager Assignment Agreement and consummate the assignment, assumption and
termination transactions contemplated thereby (collectively, the “Prime Manager
Transfer”) and (ii)(a) immediately following the Prime Manager Transfer,
the Company shall distribute pro rata to its members all of the ownership
interests owned by the Company in Prime Manager (the “Prime Manager
Distribution”), (b) the Company shall cause Prime Retail L.P. to
distribute to the Company all of the ownership interests owned by Prime Retail
L.P. in Livermore and the Company shall thereupon distribute pro rata to its
members all such ownership interests in Livermore (the “Livermore
Distribution”), (c) the Company shall distribute pro rata to its
members all of the ownership interests owned by the Company in Prime Development
(the “Prime
Development Distribution”) and (d) the Company shall cause Prime
Retail L.P. to distribute to the Company all of the ownership interests owned by
Prime Retail L.P. in Grand Prairie and the Company shall thereupon distribute
pro rata to its members all such ownership interests in Grand Prairie (the
“Grand Prairie
Distribution” and together with the Prime Manager Distribution, the
Livermore Distribution and the Prime Development Distribution, the “Entity
Distributions”), so that following the Closing, none of the Parent
Parties and their Affiliates (including the Group Companies) shall have any
direct or indirect ownership interest in Livermore, Prime Development, Grand
Prairie or Prime Manager.  The amount of any sales, use, transfer,
conveyance, recordation and filing fees, Taxes and assessments, including fees
in connection with the recordation of instruments related to the Prime Manager
Transfer and the Entity Distributions and other similar transaction Taxes
however designated (but not including income, franchise or gains Taxes), that
are properly levied by any Taxing Authority and are required by Law, applicable
to, imposed upon or arising out of the distribution of the ownership interests
as contemplated by this Section 2.7
shall be shared one-half by the Parent Parties and one-half by Lightstone Prime,
LVP OP and Pro-DFJV.”

     

    5.          Amendment to
Section 3.21.  The paragraph added at the end of
Section 3.21 of the Contribution Agreement pursuant to Amendment No 2 is
hereby amended and restated to read as follows:

     

    “Except
as set forth in Section 3.23,
notwithstanding anything to the contrary in this Agreement, the Company makes no
representations or warranties, express or implied, with respect to St.
Augustine, Livermore, Prime Development, Grand Prairie, Prime Manager, any of
their respective Subsidiaries, the St. Augustine Land, any of St. Augustine’s,
Livermore’s, Prime Development’s, Grand Prairie’s, Prime Manager’s or their
respective Subsidiaries’ respective businesses, assets or liabilities, the Prime
Manager Transfer or any of the Entity Distributions, to Parent REIT, Parent OP
or Parent Sub and hereby disclaims all liability and responsibility for any such
representation or warranty made, communicated, or furnished to Parent REIT,
Parent OP or Parent Sub.”

     

    6.          Amendment to
Section 3.23.  Section 3.23 of
the Contribution Agreement is hereby amended and restated to read as
follows:

     

    “The
Company hereby represents and warrants to Parent OP that the entry into
Amendment No. 2 and Amendment No. 3 does not and will not, except as set forth
in the Company Schedules, including Schedule 3.23,
and assuming the receipt of the Required Consents and repayment of the Floating
Rate Debt at Closing,  (i) result in a violation or breach of, or
cause acceleration, or constitute (with or without due notice or lapse of time
or both) a default (or give rise to any right of termination, cancellation or
acceleration), or require any notice or consent under any of the terms,
conditions or provisions of any Contract to which any Group Company is a party
or by which it or any of their respective properties is bound or affected,
(ii) conflict with or violate any Law or Order applicable to any Group
Company or any of their respective properties or assets or (iii) except as
expressly contemplated by this Agreement and the other Transaction Documents,
result in the creation of any Lien upon any of the assets of any Group Company,
the Company Membership Interests or any membership or other equity interest of
any Group Company; provided, that no
representation or warranty is being made in this Section 3.23
with respect to the Prime Manager Transfer, any of the Entity Distributions or
any antitrust or competition Laws (or any Orders or Contracts related thereto)
that may be applicable to the Contemplated Transactions, the Prime Manager
Transfer or any of the Entity Distributions.”

    
      
         

      

      
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    7.          Amendment to
Section 4.8.  The paragraph added at the end of
Section 4.8 of the Contribution Agreement pursuant to Amendment No 2 is
hereby amended and restated to read as follows:

     

    “Except
as set forth in Section 4.10,
notwithstanding anything to the contrary in this Agreement, the Contributors
make no representations or warranties, express or implied, with respect to St.
Augustine, Livermore, Prime Development, Grand Prairie, Prime Manager, any of
their respective Subsidiaries, the St. Augustine Land, any of St. Augustine’s,
Livermore’s, Prime Development’s, Grand Prairie’s, Prime Manager’s or their
respective Subsidiaries’ respective businesses, assets or liabilities, the Prime
Manager Transfer or any of the Entity Distributions, to Parent REIT, Parent OP
or Parent Sub and hereby disclaim all liability and responsibility for any such
representation or warranty made, communicated, or furnished to Parent REIT,
Parent OP or Parent Sub.”

     

    8.          Amendment to
Section 4.10.  Section 4.10 of the Contribution
Agreement is hereby amended and restated to read as follows:

     

    “Each
Contributor hereby, severally, and not jointly or jointly and severally,
represents and warrants to Parent OP that the entry into Amendment No. 2 and
Amendment No. 3 does not and will not, except as set forth in Schedule 3.23,
(i) conflict with or result in any breach of any provision of such
Contributor’s Governing Documents, (ii) result in a violation or breach of,
or cause acceleration, or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination, cancellation
or acceleration) under any of the terms, conditions or provisions of any note,
bond, mortgage, indenture, lease, license, contract, agreement or other
instrument or obligation of any material agreement to which such Contributor is
a party, or (iii) violate any Law or Order applicable to such Contributor,
except in the case of clauses (ii) and (iii) above, for violations
which would not prevent or materially impair or delay the ability of such
Contributor to perform its respective obligations under this Agreement and provided, that no
representation or warranty is being made in this Section 4.10
with respect to the Prime Manager Transfer, any of the Entity Distributions or
any antitrust or competition Laws (or any Orders or Contracts related thereto)
that may be applicable to the Contemplated Transactions, the Prime Manager
Transfer or any of the Entity Distributions.”

     

    9.          Amendment to
Section 5.11.  The paragraph added at the end of Section 5.11 of
the Contribution Agreement pursuant to Amendment No 2 is hereby amended and
restated to read as follows:

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    “Except
as set forth in Section 3.23 and
Section 4.10,
each of Parent REIT, Parent OP and Parent Sub hereby acknowledges and agrees
that, (i) neither the Company nor any of the Contributors makes any
representations or warranties, express or implied, with respect to St.
Augustine, Livermore, Prime Development, Grand Prairie, Prime Manager any of
their respective Subsidiaries, the St. Augustine Land, any of St. Augustine’s,
Livermore’s, Prime Development’s, Grand Prairie’s, Prime Manager’s or their
respective Subsidiaries’ respective businesses, assets or liabilities, the Prime
Manager Transfer or any of the Entity Distributions and (ii) no
representation, warranty or covenant of the Company or any Contributor in this
Agreement or any other Transaction Document shall be deemed breached as a result
of the execution, delivery and performance of Amendment No. 2 or Amendment No.
3, or the consummation of the Prime Manager Transfer or any of the Entity
Distributions or transactions related thereto.  In furtherance of the
foregoing, to the extent any representation, warranty or covenant (other than
Section 2.7) of
the Company (including in Section 3.4(a)
and Section 3.4(b))
or any Contributor in any Transaction Document may apply to or otherwise
include, by reference to a schedule or otherwise, any information or obligation
regarding St. Augustine, Livermore, Prime Development, Grand Prairie, Prime
Manager, any of their respective Subsidiaries, the St. Augustine Land, any of
St. Augustine’s, Livermore’s, Prime Development’s, Grand Prairie’s, Prime
Manager’s or their respective Subsidiaries’ respective businesses, assets or
liabilities, the Prime Manager Transfer or any of the Entity Distributions, such
representation, warranty or covenant shall be deemed modified to exclude any
application thereof to St. Augustine, Livermore, Prime Development, Grand
Prairie, Prime Manager, any of their respective Subsidiaries, the St. Augustine
Land, any of St. Augustine’s, Livermore’s, Prime Development’s, Grand Prairie’s,
Prime Manager’s or their respective Subsidiaries’ respective businesses, assets
or liabilities, the Prime Manager Transfer and the Entity Distributions, and
such representation, warranty or covenant, as so modified, shall not be deemed
breached to the extent such exclusion of St. Augustine, Livermore, Prime
Development, Grand Prairie, Prime Manager, any of their respective Subsidiaries,
the St. Augustine Land, any of St. Augustine’s, Livermore’s, Prime
Development’s, Grand Prairie’s, Prime Manager’s or their respective
Subsidiaries’ respective businesses, assets or liabilities, the Prime Manager
Transfer or any of the Entity Distributions would otherwise result in a breach
thereof.”

     

    10.        Amendment to
Section 5.14.  Section 5.14 of the Contribution
Agreement is hereby amended and restated to read as follows:

     

    “Parent
REIT, Parent OP and Parent Sub hereby jointly and severally represent and
warrant to the Company and the Contributors that the entry into Amendment No. 2
and Amendment No. 3 does not and will not (i) conflict with or result in
any breach of any provision of such Person’s Governing Documents,
(ii) result in a violation or breach of, or cause acceleration, or
constitute (with or without due notice or lapse of time or both) a default (or
give rise to any right of termination, cancellation or acceleration) under any
of the terms, conditions or provisions of any note, bond, mortgage, indenture,
lease, license, contract, agreement or other instrument or obligation of any
material agreement to which such Person is a party, or (iii) violate any
Law or Order applicable to such Person, except in the case of clauses
(ii) and (iii) above, for violations which would not prevent or
materially impair or delay the ability of such Person to perform its respective
obligations under this Agreement and provided, that no
representation or warranty is being made with respect to any antitrust or
competition Laws (or any Orders or Contracts related thereto) that may be
applicable to the Contemplated Transactions.”

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    11.        Amendment to
Section 6.10(a).  Section 6.10(a) is hereby amended
and restated in its entirety as follows:

     

    “(a)       
Parent OP or a Subsidiary of Parent REIT or Parent OP shall offer employment,
effective as of 9:00 a.m. on the Closing Date, to all of the Property Employees
set forth on Schedule 6.10(a).  Those Property Employees who
accept such offers are referred to herein as “Retained Property
Employees.”  For one year after the Closing Date, Parent REIT
and Parent OP shall, or shall cause their Subsidiaries to, provide each Retained
Property Employee with a base salary or base wages and pension and health
benefits (other than retention, sale, stay, special bonuses or other change of
control payments or awards) that are, in the aggregate, either, at the option of
Parent REIT and Parent OP, (A) no less favorable to each Retained Property
Employee than the base salary or base wages and pension and health benefits
provided to similarly situated employees of Parent REIT and Parent OP, or
(B) no less favorable to each Retained Property Employee than the base
salary or base wages and pension and health benefits provided to such Retained
Property Employees immediately prior to the Closing, in either case to be
determined for each Retained Property Employee in the sole discretion of Parent
REIT and Parent OP.”

     

    12.        Amendment to
Section 6.10(b).  All references in Section 6.10(b)
and Section 6.10(e) (as renumbered from Section 6.10(f) pursuant to
Section 9
hereof) to “Retained Property Employee and Retained Management Employee” shall
be amended to refer only to “Retained Property Employee.”

     

    13.        Deletion of
Section 6.10(e).  Section 6.10(e) is hereby deleted
in its entirety, and Section 6.10(f) shall be renumbered
Section 6.10(e) and all references to Section 6.10(f) shall be amended
to refer to Section 6.10(e).

     

    14.        New
Section 6.18.  The following new Section 6.18 is
hereby added to the Contribution Agreement:

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    “Section 6.18   Corporate
Office Lease

     

    From and
after Closing, (a) the Parent Parties shall not (and shall cause their
Affiliates and the Group Companies not to), without the prior written consent of
the Representative, (i) after September 30, 2010, use or occupy any
portion of the premises demised under the Corporate Office Lease,
(ii) enter into any agreement or understanding (including any modification
to the Corporate Office Lease) with the landlord(s) under the Corporate Office
Lease, (iii) enter into any agreement or understanding with any Person
other than the Representative to permit any Person to use or occupy all or any
portion of the premises demised under the Corporate Office Lease, (b) the
Parent Parties shall (and shall cause their Affiliates and the Group Companies
to) use their reasonable best efforts to permit the Representative and its
designees to (i) after September 30, 2010, use and occupy, without
payment of any additional consideration, any and all of the premises demised
under the Corporate Office Lease and (ii) direct and control any and all
negotiations with the landlord(s) under the Corporate Office Lease; provided
that none of the Parent Parties, their Affiliates or the Group Companies shall
be obligated to pay any sums to, or incur any liability or obligation to, any
third party in connection with this Section 6.18(b)
and (c) upon termination or expiration of the obligations of the Parent
Parties and their Affiliates (including the Group Companies) to pay rent under
the Corporate Office Lease (including by reason of an assignment of all
obligations under the Corporate Office Lease to the Representative or one of its
designees), Parent OP shall distribute, or cause to be distributed, within ten
(10) Business Days after such termination or expiration, out of the proceeds of
additional borrowings pursuant to the Financing which have the benefit of the
Member Guarantees, to the Representative (for further distribution to the
Contributors), an amount equal to the excess, if any, of (x) any amount
included in the calculation of the Estimated Aggregate Consideration Value or
Final Aggregate Consideration Value, as the case may be, in respect of the
Corporate Office Lease (including pursuant to clause (i) of the definition
of Severance, Employment and Shut-Down Costs) over (y) the excess of
(A) the amount of rent actually paid by the Parent Parties and their
Affiliates (including the Group Companies) after Closing to the landlord(s)
under the Corporate Office Lease over (B) an amount equal to the rent for
the month of September, 2010 under the Corporate Office Lease; provided,
however, that if (x) any amount required to be distributed by the Parent
Parties to the Representative pursuant to this Section 6.18(c)
is less than $100,000 and (y) the Final Aggregate Consideration Value has
not been finally determined pursuant to Section 2.3(d) on the date such
amount is required to be distributed pursuant to this Section 6.18(c),
the Parent Parties shall have the right to delay making such required
distribution until the third (3rd)
Business Day after the Final Aggregate Consideration Value is finally determined
pursuant to Section 2.3(d).”

     

    15.        Amendment to
Section 7.1.  Section 7.1 is hereby amended and
restated in its entirety as follows:

     

    “Section 7.1        [Intentionally
Omitted.]”

     

    16.        Amendment to
Section 8.2(e).  Clause (iv) of Section 8.2(e)
of the Contribution Agreement is hereby amended and restated to read as
follows:

     

    “(iv)     [Intentionally
Omitted.]”

     

    17.        Amendments to Company
Schedules.  The Company Schedules are hereby amended as
set forth in Exhibit A
hereto.

     

    18.        Amendments to
Exhibits and Annexes.

     

    (a)        Exhibit C
(Net Working Capital Line Items) of the Contribution Agreement is hereby amended
and restated in its entirety as set forth in Exhibit B
hereto.

     

    (b)        Exhibit H
(Prime Manager Assignment Agreement) is hereby attached to the Contribution
Agreement, which Exhibit H is set forth in Exhibit C
hereto.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (c)        Annex D
(Applicable Percentage Interest) of the Contribution Agreement is hereby amended
and restated in its entirety as set forth in Exhibit D
hereto.

     

    (d)        Annex G
(Escrow Unit Payment Percentage Interest) is hereby amended and restated in its
entirety as set forth in Exhibit E
hereto.

     

    19.        No Other
Amendments.  Except as otherwise expressly amended or modified
hereby, all of the terms and conditions of the Contribution Agreement shall
continue in full force and effect.  Each reference to “hereof”,
“hereunder”, “herein” and “hereby” and each similar reference in the
Contribution Agreement shall refer to the Contribution Agreement as amended
hereby.

     

    20.        Entire Agreement;
Assignment.

     

    (a)        This
Amendment, the Contribution Agreement (including Amendment No. 1 and Amendment
No. 2 thereto), the Barceloneta Contribution Agreement and the other Transaction
Documents contain the entire agreement of the parties hereto respecting the
subject matter hereof and supersede all prior agreements among the parties
hereto respecting the same.  The parties hereto have voluntarily
agreed to define their rights, liabilities and obligations respecting the
subject matter hereof exclusively in contract pursuant to the express terms and
provisions of this Amendment, the Contribution Agreement (including Amendment
No. 1 and Amendment No. 2 thereto), the Barceloneta Contribution Agreement and
the other Transaction Documents and the parties hereto expressly disclaim that
they are owed any duties or are entitled to any remedies not expressly set forth
in this Amendment, the Contribution Agreement (including Amendment No. 1 and
Amendment No. 2 thereto), the Barceloneta Contribution Agreement or the other
Transaction Documents.  Furthermore, the parties hereto each hereby
acknowledges that this Amendment embodies the justifiable expectations of
sophisticated parties derived from arm’s-length negotiations; all parties to
this Amendment specifically acknowledge that no party has any special
relationship with another party that would justify any expectation beyond that
of ordinary parties in an arm’s-length transaction.  The sole and
exclusive remedies for any breach of the terms and provisions of this Amendment,
the Contribution Agreement (including Amendment No. 1 and Amendment No. 2
thereto), the Barceloneta Contribution Agreement or the other Transaction
Documents (including any representations and warranties set forth herein, the
Contribution Agreement (including Amendment No. 1 and Amendment No. 2 thereto),
the Barceloneta Contribution Agreement or the other Transaction Documents, made
in connection herewith, the Contribution Agreement (including Amendment No. 1
and Amendment No. 2 thereto), the Barceloneta Contribution Agreement or the
other Transaction Documents or as an inducement to enter into this Amendment,
the Contribution Agreement (including Amendment No. 1 and Amendment No. 2
thereto), the Barceloneta Contribution Agreement or the other Transaction
Documents) or any claim or cause of action otherwise arising out of or related
to the Contemplated Transactions shall be those remedies available at law or in
equity for breach of contract only (as such contractual remedies have been
further limited or excluded pursuant to the express terms of the Contribution
Agreement (including Amendment No. 1 and Amendment No. 2 thereto), the
Barceloneta Contribution Agreement or the other Transaction Documents); and each
party hereto hereby agrees that no party hereto shall have any remedies or cause
of action (whether in contract or in tort) for any statements, communications,
disclosures, failures to disclose, representations or warranties not set forth
in this Amendment, the Contribution Agreement (including Amendment No. 1 and
Amendment No. 2 thereto), the Barceloneta Contribution Agreement or the other
Transaction Documents.  Notwithstanding the foregoing, claims by any
Parent Party against any Contributor, to the extent arising from the Fraud of
such Contributor, shall not be prohibited by this Section 20.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (b)        This
Amendment may not be assigned by any party (whether by operation of law or
otherwise) without the prior written consent of Parent REIT, Parent OP, the
Company and the Representative.  Any attempted assignment of this
Amendment not in accordance with the terms of this Section 20 shall
be void; provided, however, that so long
as such assignment would not prevent or materially impair or delay the Closing
of the Contemplated Transactions, Parent REIT, Parent OP or Parent Sub may
assign this Amendment and any of their rights under this Amendment to one or
more Affiliates of Parent REIT, Parent OP or Parent Sub; provided, that any
such assignment shall not relieve Parent REIT, Parent OP or Parent Sub of any of
their obligations hereunder.

     

    21.        Governing
Law.  This Amendment, and all claims or causes of action
(whether in contract or tort) that may be based upon, arise out of or relate to
this Amendment, or the negotiation, execution or performance of this Amendment
(including any claim or cause of action based upon, arising out of or related to
any representation or warranty made in or in connection with this Amendment or
as an inducement to enter into this Amendment), shall be governed by the
internal laws of the State of Delaware as applicable to agreements made and to
be performed entirely within the State of Delaware, without regard to conflict
of law principles or rules.

     

    22.        Fees and
Expenses.  Except as otherwise expressly set forth in this
Amendment, the Contribution Agreement or Annex E thereof, whether or not
the Closing is consummated, all fees and expenses incurred in connection with
this Amendment, the Contribution Agreement and the Contemplated Transactions,
including, without limitation, the fees and disbursements of counsel, financial
advisors and accountants, shall be paid by the party incurring such fees or
expenses.

     

    23.        Construction;
Interpretation.  The term “this Amendment” means this Amendment
together with all schedules, exhibits and annexes hereto, as the same may from
time to time be amended, modified, supplemented or restated in accordance with
the terms hereof.  The headings contained in this Amendment are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Amendment.  No party, nor its respective
counsel, shall be deemed the drafter of this Amendment for purposes of
construing the provisions hereof, and all provisions of this Amendment shall be
construed according to their fair meaning and not strictly for or against any
party hereto.  Unless otherwise indicated to the contrary herein by
the context or use thereof: (i) the words, “herein”, “hereto”, “hereof” and
words of similar import refer to this Amendment as a whole, including, without
limitation, the Schedules, exhibits and annexes, and not to any particular
section, subsection, paragraph, subparagraph or clause contained in this
Amendment; (ii) masculine gender shall also include the feminine and
neutral genders, and vice versa; and (iii) words importing the singular
shall also include the plural, and vice versa.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    24.        Exhibits, Annexes and
Schedules.  All exhibits, annexes and Schedules, or documents
expressly incorporated into this Amendment, are hereby incorporated into this
Amendment and are hereby made a part hereof as if set out in full in this
Amendment.  The specification of any dollar amount in this Amendment
or the inclusion of any specific item in any Schedule is not intended to
imply that such amounts, or higher or lower amounts or the items so included or
other items, are or are not material, and no party shall use the fact of the
setting of such amounts or the inclusion of any such item in any dispute or
controversy as to whether any obligation, items or matter not described herein
or included in a Schedule is or is not material for purposes of this
Amendment.

     

    25.        Severability.  If
any term or other provision of this Amendment is invalid, illegal or
unenforceable, all other provisions of this Amendment shall remain in full force
and effect so long as the economic or legal substance of the Contemplated
Transactions (as amended hereby) is not affected in any manner materially
adverse to any party.

     

    26.        Counterparts. This
Amendment may be executed in one or more counterparts, each of which shall be
deemed to be an original, but all of which shall constitute one and the same
agreement.  Delivery of an executed counterpart of a signature page to
this Amendment by facsimile or scanned pages shall be effective as delivery of a
manually executed counterpart to this Amendment.

     

    27.        Waiver of Jury
Trial.  Each party hereto hereby waives, to the fullest extent
permitted by law, any right to trial by jury of any claim, demand, action, or
cause of action (i) arising under this Amendment or (ii) in any way
connected with or related or incidental to the dealings of the parties in
respect of this Amendment or any of the transactions related hereto, in each
case, whether now existing or hereafter arising, and whether in contract, tort,
equity, or otherwise.  Each party hereto hereby further agrees and
consents that any such claim, demand, action, or cause of action shall be
decided by court trial without a jury and that the parties hereto may file a
copy of this Amendment with any court as written evidence of the consent of the
parties hereto to the waiver of their right to trial by jury.

     

    28.        Jurisdiction and
Venue.  Each of the parties hereto (i) submits to the
exclusive jurisdiction of any state or federal court sitting in Delaware, in any
action or proceeding (whether in contract or tort) arising out of or relating to
this Amendment, or the negotiation, execution or performance of this Amendment
(including any claim or cause of action based upon, arising out of or related to
any representation or warranty made in or in connection with this Amendment or
as an inducement to enter into this Amendment), (ii) agrees that all such
claims in respect of such action or proceeding shall be heard and determined in
any such court and (iii) agrees not to bring any such action or proceeding
in any other court.  Each of the parties hereto waives any defense of
inconvenient forum to the maintenance of any action or proceeding so brought and
waives any bond, surety or other security that might be required of any other
parties hereto with respect thereto.  Each of the parties hereto
agrees that service of summons and complaint or any other process that might be
served in any action or proceeding may be made on such party by sending or
delivering a copy of the process to the party to be served at the address of the
party and in the manner provided for the giving of notices in Section 12.2 of
the Contribution Agreement.  Nothing in this Section 28,
however, shall affect the right of any party hereto to serve legal process in
any other manner permitted by Law.  Each party hereto agrees that a
final, non-appealable judgment in any action or proceeding so brought shall be
conclusive and may be enforced by suit on the judgment or in any other manner
provided by Law.

    

    [Remainder
of page intentionally left blank.]

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed on the date first written above.

     

    
      
        	 	
                SIMON
      PROPERTY GROUP, INC.

              
	 	 
      
	 	
                By: 

              	
                 /s/ Stephen E.
    Sterrett

              
	 	 
      	
                Name:
      Stephen E. Sterrett

              
	 	 
      	
                Title:
      Executive Vice President and Chief Financial

                Officer

              
	 	 
      	 
      
	 	
                SIMON
      PROPERTY GROUP, L.P.

              
	 	
                By:

              	
                Simon
      Property Group, Inc. a Delaware corporation

              
	 	 
      	
                its
      General Partner

              
	 	 
      
	 	
                By:

              	
                /s/ Stephen E. Sterrett

              
	 	 
      	
                Name:
      Stephen E. Sterrett

              
	 	 
      	
                Title:
      Executive Vice President and Chief Financial

                Officer

              
	 	 
      	 
      
	 	
                MARCO
      CAPITAL ACQUISITION, LLC

              
	 	 
      
	 	
                By:

              	
                /s/ Stephen E. Sterrett

              
	 	 
      	
                Name:
      Stephen E. Sterrett

              
	 	 
      	
                Title:
      Executive Vice President and Chief Financial

                Officer

              
	 	 
      	 
      
	 	
                PRIME
      OUTLETS ACQUISITION COMPANY LLC

              
	 	 
      
	 	
                By:

              	
                /s/ Joseph E. Teichman

              
	 	 
      	
                Name:
      Joseph E. Teichman

              
	 	 
      	
                Title:
      Authorized Signatory

              
	 	 
      
	 	
                LIGHTSTONE
      PRIME, LLC

              
	 	
                Solely
      in its capacity as the Representative

              
	 	 
      
	 	
                By:

              	
                /s/ Joseph E. Teichman

              
	 	 
      	
                Name:
      Joseph E. Teichman

              
	 	 
      	
                Title:
      Authorized Signatory

              

      

    

    

    Signature
Page to Amendment No. 3 to the Contribution Agreement

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    Exhibit
A

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    Exhibit
B

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    Exhibit C
Addendum

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    Exhibit
C

     

    (See
attached)

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

    ASSIGNMENT,
ASSUMPTION AND TERMINATION AGREEMENT

     

    THIS
ASSIGNMENT, ASSUMPTION AND TERMINATION AGREEMENT, dated as of August 30,
2010 (this “Agreement”), by and
between Prime Retail Property Management, LLC, a Delaware limited liability
company (the “Assignor”), Prime
Outlets Acquisition Company LLC, a Delaware limited
liability company (the “Assignee”) and,
solely for the purpose of Section 3 hereof, the subsidiaries of the
Assignee set forth on the signature pages hereto.

     

    RECITALS

     

    WHEREAS,
The Assignor, the Assignee and certain other parties have entered into a
Contribution Agreement, dated at of December 8, 2009, as amended by
Amendment No. 1, dated as of May 13, 2010, and Amendment No. 2, dated as of
June 28, 2010, and Amendment No. 3, dated as of August 30, 2010 (as
further amended from time to time, the “Contribution
Agreement”).  This Agreement is being delivered in furtherance
of Section 2.7 of the Contribution Agreement.  Capitalized terms
used but not defined herein shall have the meanings ascribed to them in the
Contribution Agreement; and

     

    WHEREAS,
subject to the consummation of the transactions contemplated in the Contribution
Agreement, the Assignor desires to assign, transfer, and deliver to the Assignee
all of the Assets and the Assigned Contracts (each as defined below), and the
Assignee desires to accept such assignment, transfer and delivery from the
Assignor and agrees to assume the Assumed Liabilities (as defined
below).

     

    NOW,
THEREFORE, in consideration of the mutual promises made herein and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and upon the terms and subject to the conditions set forth herein,
the parties hereto hereby agree as follows:

     

    1.          Assignment and
Assumption.  The parties hereto hereby agree that, effective as
of immediately prior to the consummation of the transactions contemplated in the
Contribution Agreement, (a) the Assignor hereby assigns, transfers and
delivers to the Assignee, (i) all of the property and assets set forth in
Section A of Schedule 1 hereto (collectively, the “Assets”) and
(ii) all rights, benefits and interests of the Assignor under the Contracts
set forth in Section B of Schedule 1 hereto (the “Assigned Contracts”)
and (b) the Assignee hereby accepts the assignment, transfer and delivery
of the Assets and the Assigned Contracts and assumes and agrees to promptly and
fully pay when due, perform and discharge in accordance with their terms all
obligations, liabilities and commitments of the Assignor under the Assigned
Contracts, in each case whether arising prior to, on or after the Closing
(collectively, the “Assumed
Liabilities”).

     

    2.          Retained
Liabilities.  Notwithstanding anything to the contrary
contained in this Agreement, Assignee shall not be deemed by virtue of the
execution and delivery of this Agreement or as a result of the consummation of
the transactions contemplated in the Contribution Agreement, to have assumed, or
to have agreed to pay, perform or discharge, any liability or obligation of the
Assignor other than the Assumed Liabilities (the “Retain
Liabilities”).  For the avoidance of any doubt, the Retained
Liabilities shall not include any liabilities under the Terminated Contracts
(defined below).

    
      
         

      

      
        C-2

        
          

        

      

      
         

      

    

    3.          Termination.  The
parties hereto hereby agree that, effective as of immediately prior to the
consummation of the transactions contemplated in the Contribution Agreement, the
Contracts set forth in Section C of Schedule 1 hereto (the “Terminated
Contracts”) shall be terminated in full, and none of Assignor, the Group
Companies, the Parent Parties, or any of their respective affiliates, as the
case may be, shall have any further rights or obligations under the Terminated
Contracts following the closing.  Each of the parties hereto expressly
waives any requirement of or right to any prior notice or payments that may be
contained in the Terminated Contracts.

     

    4.          Closing.  The
closing of the transactions contemplated in Section 1 hereof (the “Closing”) shall take
place at the offices of Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285
Avenue of the Americas, New York, New York 10019-6064 on the date of
and immediately prior to the closing of the transactions contemplated by the
Contribution Agreement.

     

    5.          Further
Assurances.  The Assignor agrees to take such actions and
execute and deliver to the Assignee such further assignments or other transfer
documents as the Assignee may reasonably request to effectively assign, transfer
and convey, and to evidence such assignment, transfer and conveyance of, the
Assets and the Assigned Contracts to the Assignee, in each case, at the sole
cost and expense of the Assignee.  The Assignee agrees to take such
actions and execute and deliver to the Assignor such further assumptions or
other transfer documents as the Assignor may reasonably request to effectively
assume, and to evidence such assumption of, the Assumed Liabilities by the
Assignee, in each case, at the sole cost and expense of the
Assignor.

     

    6.          No Representations or
Warranties.  Neither the Assignor nor the Assignee makes any
representation or warranty under this Agreement with respect to the Assets or
the Assigned Contracts.  Nothing contained in this Agreement shall
release the Assignee from any of its obligations under the Contribution
Agreement or in any way diminish or modify any of the representations,
warranties, indemnities, covenants, agreements or in general, any of the
obligations of such party set forth in the Contribution Agreement.

     

    7.          Entire
Agreement(i)    . This Agreement contains the entire
agreement of the parties respecting the subject matter hereof and supersedes all
prior agreements among the parties respecting the same.  The parties
hereto have voluntarily agreed to define their rights, liabilities and
obligations respecting subject matter hereto exclusively in contract pursuant to
the express terms and provisions of this Agreement.This Agreement may not be
assigned by any party (whether by operation of law or otherwise) without the
prior written consent of the other parties.  Any attempted assignment
of this Agreement not in accordance with the terms of this Section 6 shall
be void.

    
      
         

      

      
        C-3

        
          

        

      

      
         

      

    

    8.          Notices.  All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by cable, telegram, facsimile, scanned pages or
telex, or by registered or certified mail (postage prepaid, return receipt
requested) as follows:

     

    To the
Assignor:

     

    c/o The
Lightstone Group

    1985
Cedar Bridge Avenue

    Lakewood,
New Jersey 08701

    Attention:           Joseph
E. Teichman, Esq.

    Facsimile:          732.612.1444

    

    and, with
a copy (which shall not constitute notice) to:

     

    Paul,
Weiss, Rifkind, Wharton & Garrison LLP

    1285
Avenue of the Americas

    New York,
New York 10019

    Attention:           Jeffrey
D. Marell, Esq.

      Robert B. Schumer,
Esq.

    Facsimile:          212.757.3990

    

    To the
Assignee:

    

    c/o Simon
Property Group, Inc

    225 West
Washington Street

    Indianapolis,
Indiana 46204

    Attention:           James
M. Barkley, Esq.

    Facsimile:          317.685.7377

    

    with a
copy (which copy shall not constitute notice) to:

    

    Fried,
Frank, Harris, Shriver and Jacobson LLP

    One
New York Plaza

    New York,
New York 10004

    Tel:                     212.859.8980

    Attention:           Peter
S. Golden, Esq.

      John E. Sorkin,
Esq.

    Facsimile:          212.859.4000

    

    or to
such other address as any party to whom notice is given may have previously
furnished to the others in writing in the manner set forth above.

     

    9.          Governing
Law.  This Agreement, and all claims or causes of action
(whether in contract or tort) that may be based upon, arise out of or relate to
this Agreement, or the negotiation, execution or performance of this Agreement
(including any claim or cause of action based upon, arising out of or related to
any representation or warranty made in or in connection with this Agreement or
as an inducement to enter into this Agreement), shall be governed by the
internal laws of the State of Delaware as applicable to agreements made and to
be performed entirely within the State of Delaware, without regard to conflict
of law principles or rules.

    
      
         

      

      
        C-4

        
          

        

      

      
         

      

    

    10.        Fees and
ExpensesExcept as otherwise expressly set forth in the Contribution
Agreement, all fees and expenses incurred in connection with such transactions
and this Agreement, including, without limitation, the fees and disbursements of
counsel, financial advisors and accountants, shall be paid by the party
incurring such fees or expenses.

     

    11.        Construction;
Interpretation.  The headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.  No party, nor its respective
counsel, shall be deemed the drafter of this Agreement for purposes of
construing the provisions hereof, and all provisions of this Agreement shall be
construed according to their fair meaning and not strictly for or against any
party.  Unless otherwise indicated to the contrary herein by the
context or use thereof: (i) the words, “herein,” “hereto,” “hereof” and
words of similar import refer to this Agreement as a whole, including, without
limitation, the Schedules and exhibits, and not to any particular section,
subsection, paragraph, subparagraph or clause contained in this Agreement;
(ii) masculine gender shall also include the feminine and neutral genders,
and vice versa; and (iii) words importing the singular shall also include
the plural, and vice versa.

     

    12.        Exhibits and
Schedules.  All exhibits are hereby incorporated into this
Agreement and are hereby made a part hereof as if set out in full in this
Agreement.  The inclusion of any specific item in any Schedule is
not intended to imply that such item, is or is not material, and no party shall
use the fact of the setting of such item in any dispute or controversy as to
whether any item not described herein or included in a Schedule is or is
not material for purposes of this Agreement.

     

    13.        Parties in
Interest.  This Agreement shall be binding upon and inure
solely to the benefit of the parties and their respective successors and
permitted assigns and nothing in this Agreement, express or implied, is intended
to or shall confer upon any other Person any rights, benefits or remedies of any
nature whatsoever under or by reason of this Agreement.

     

    14.        Severability.  If
any term or other provision of this Agreement is invalid, illegal or
unenforceable, all other provisions of this Agreement shall remain in full force
and effect.

     

    15.        Counterparts; Facsimile
Signatures.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement.  Delivery of an executed
counterpart of a signature page to this Agreement by facsimile or scanned pages
shall be effective as delivery of a manually executed counterpart to this
Agreement.

     

    16.        Waiver of Jury
Trial.  Each party hereby waives, to the fullest extent
permitted by law, any right to trial by jury of any claim, demand, action, or
cause of action (i) arising under this Agreement or (ii) in any way
connected with or related or incidental to the dealings of the parties in
respect of this Agreement or any of the transactions related hereto, in each
case, whether now existing or hereafter arising, and whether in contract, tort,
equity, or otherwise.  Each party hereby further agrees and consents
that any such claim, demand, action, or cause of action shall be decided by
court trial without a jury and that the parties may file a copy of this
Agreement with any court as written evidence of the consent of the parties to
the waiver of their right to trial by jury.

    
      
         

      

      
        C-5

        
          

        

      

      
         

      

    

    17.        Jurisdiction and
Venue.  Each of the parties (i) submits to the exclusive
jurisdiction of any state or federal court sitting in Delaware, in any action or
proceeding (whether in contract or tort) arising out of or relating to this
Agreement, or the negotiation, execution or performance of this Agreement
(including any claim or cause of action based upon, arising out of or related to
any representation or warranty made in or in connection with this Agreement or
as an inducement to enter into this Agreement), (ii) agrees that all such
claims in respect of such action or proceeding shall be heard and determined in
any such court and (iii) agrees not to bring any such action or proceeding
in any other court.  Each of the parties waives any defense of
inconvenient forum to the maintenance of any action or proceeding so brought and
waives any bond, surety or other security that might be required of any other
party with respect thereto.  Each party agrees that service of summons
and complaint or any other process that might be served in any action or
proceeding may be made on such party by sending or delivering a copy of the
process to the party to be served at the address of the party and in the manner
provided for the giving of notices in Section 7.  Nothing
in this Section 16,
however, shall affect the right of any party to serve legal process in any other
manner permitted by law.  Each party agrees that a final,
non-appealable judgment in any action or proceeding so brought shall be
conclusive and may be enforced by suit on the judgment or in any other manner
provided by law.

     

    18.        Remedies.  Except
as otherwise expressly provided in this Agreement or the Contribution Agreement,
any and all remedies expressly conferred upon a party to this Agreement shall be
cumulative with, and not exclusive of, any other remedy contained in this
Agreement, at law or in equity, and the exercise by a party to this Agreement of
any one remedy shall not preclude the exercise by it of any other
remedy.

     

    19.        Amendment and
Waiver.

     

    (a)        No
failure or delay on the part of the parties in exercising any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or
remedy.

    (b)        Any
amendment, supplement or modification of or to any provision of this Agreement,
any waiver of any provision of this Agreement, and any consent to any departure
by the parties from the terms of any provision of this Agreement, shall be
effective (i) only if it is made or given in writing and signed by the
parties, and (ii) only in the specific instance and for the specific
purpose for which made or given.

     

    20.        Further
Assurances.  Each of the parties shall execute such documents
and perform such further acts (including, without limitation, obtaining any
consents, exemptions, authorizations or other actions by, or giving any notices
to, or making any filings with, any governmental authority or any other Person)
as may be reasonably required or desirable to carry out or to perform the
provisions of this Agreement.

     

    [Signature
page follows.]

    
      
         

      

      
        C-6

        
          

        

      

      
         

      

    

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

     

    
      
        
          
            
              
                	 
      	
                        ASSIGNOR:

                      
	 	 
	 
      	
                        PRIME RETAIL PROPERTY MANAGEMENT, LLC

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                           

                      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      
	 	 	 
	 
      	
                        ASSIGNEE:

                      
	 
      	 
      
	 
      	
                        PRIME
      OUTLETS ACQUISITION COMPANY LLC

                      
	 
      	 
      
	 
      	
                        By:

                      	
                           

                      
	 
      	 
      	
                        Name:

                      
	 
      	 
      	
                        Title:

                      

              

            

          

        

      

    

    
      
         

      

      
        C-7

        
          

        

      

      
         

      

    

    Acknowledged
and Accepted:

     

    
      	
              §

            	
              BIRCH RUN OUTLETS II,
      LLC

            

    

     

    
      	
              §

            	
              CALHOUN OUTLETS,
      LLC

            

    

     

    
      	
              §

            	
              CORAL ISLE FACTORY SHOPS
      LP

            

    

     

    
      	
              §

            	
              FLORIDA KEYS FACTORY SHOPS
      LP

            

    

     

    
      	
              §

            	
              GAFFNEY OUTLETS,
      LLC

            

    

     

    
      	
              §

            	
              GROVE CITY FACTORY SHOPS
      LP

            

    

     

    
      	
              §

            	
              GULF COAST FACTORY SHOPS
      LP

            

    

     

    
      	
              §

            	
              GULFPORT FACTORY SHOPS
      LP

            

    

     

    
      	
              §

            	
              HUNTLEY FACTORY SHOPS
      LP

            

    

     

    
      	
              §

            	
              LEE OUTLETS,
      LLC

            

    

     

    
      	
              §

            	
              OHIO FACTORY SHOPS
      PARTNERSHIP

            

    

     

    
      	
              §

            	
              ORLANDO DESIGN CENTER,
      LLC

            

    

     

    
      	
              §

            	
              ORLANDO OUTLET OWNER,
      LLC

            

    

     

    
      	
              §

            	
              OUTLET VILLAGE OF HAGERSTOWN
      LP

            

    

     

    
      	
              §

            	
              PRIME OUTLETS AT PISMO BEACH,
      LLC

            

    

     

    
      	
              §

            	
              PRIME OUTLETS AT PLEASANT
      PRAIRIE, LLC

            

    

     

    
      	
              §

            	
              PRIME OUTLETS AT PLEASANT
      PRAIRIE II, LLC

            

    

     

    
      	
              §

            	
              PRIME OUTLETS AT SAN
      MARCOS II LP

            

    

     

    
      	
              §

            	
              SAN MARCOS FACTORY STORES,
      LTD

            

    

     

    
      	
              §

            	
              SECOND HORIZON GROUP
      LP

            

    

     

    
      	
              §

            	
              THE PRIME OUTLETS AT LEBANON
      LP

            

    

     

    
      	
              §

            	
              WILLIAMSBURG MAZEL,
      LLC

            

    

     

    
      	
              §

            	
              WILLIAMSBURG OUTLETS,
      LLC

            

    

     

    
      
        
          
            
              	 	
                      By: 

                    	
                        

                    	 
      
	 	 
      	
                      Name:

                    	 
      
	 	 
      	
                      Title:

                    	 
      

            

          

        

      

    

     

    
      
         

      

      
        C-8

        
          

        

      

      
         

      

    

    Schedule 1

    
      
         

      

      
        C-9

        
          

        

      

      
         

      

    

    Exhibit
D

     

    “Annex
D

     

    Applicable Percentage
Interests – Base

     

    
      
        
          	
                  Entity

                	 	
                  Percentage

                  Interest

                	 
	 
      	 	 	 
	
                  Lightstone
      Prime LLC

                	 	 	41.170	%
	
                  Pro-DFJV
      Holdings LLC

                	 	 	14.755	 
	
                  BRM,
      LLC

                	 	 	16.448	 
	
                  Lightstone
      Value Plus REIT LP

                	 	 	26.144	 
	
                  Lightstone
      Holdings

                	 	 	1.483	 
	 
      	 	 	 	 
	
                  Total
      Percentage Interests

                	 	 	100.000	%”

        

      

    

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

    

    Exhibit
D

     

    “Annex
G

     

    Escrow Unit Payment
Percentage Interest

     

    
      
        
          	
                  Entity

                	 	
                  Percentage

                  Interest

                	 
	 
      	 	 	 
	
                  Lightstone
      Prime LLC

                	 	 	44.086	%
	
                  Pro-DFJV
      Holdings LLC

                	 	 	13.472	 
	
                  BRM,
      LLC

                	 	 	17.035	 
	
                  Lightstone
      Value Plus REIT LP

                	 	 	23.871	 
	
                  Lightstone
      Holdings

                	 	 	1.536	 
	 
      	 	 	 	 
	
                  Total
      Percentage Interests

                	 	 	100.000	%”

        

      

    

     

    
      
         

      

      
        E-1EXECUTION
COPY

       

      TAX
MATTERS AGREEMENT

       

      This TAX
MATTERS AGREEMENT (the “Agreement”), dated as of August 30, 2010, is made by and
among Simon Property Group, Inc., a Delaware corporation (“Parent REIT”), Simon
Property Group, L.P., a Delaware limited partnership (“Parent OP”), Marco LP
Units, LLC, a Delaware limited liability company (“New Company”), Prime Outlets
Acquisition Company LLC, a Delaware limited liability company (the “Company”),
Lightstone Value Plus Real Estate Investment Trust, Inc., a Maryland corporation
(“LVP REIT”), Lightstone Value Plus REIT, L.P., a Delaware limited partnership
(“LVP OP”), and Pro-DFJV Holdings LLC, a Delaware limited liability company
(“Pro-DFJV”), and solely for purposes of Section
14, Lightstone Prime, LLC, a Delaware limited liability company
(“Lightstone”), Lightstone Holdings, LLC, a Delaware limited liability company
(“Holdings”), BRM, LLC, a New Jersey limited liability company (“BRM”), and
David Lichtenstein, an individual with an address at 1985 Cedar Bridge
Avenue, Lakewood, New Jersey (“Lichtenstein”).

       

      WHEREAS,
pursuant to the Contribution Agreement, Holdings, Lightstone, BRM, LVP OP, and
Pro-DFJV have agreed to contribute their interests in the Company and Holdings
and BRM have agreed to contribute their interests in Ewell Holdings, LLC, a
Delaware limited liability company, and Mill Run, L.L.C., a New Jersey limited
liability company, to Parent OP (the “Contributions”);

       

      WHEREAS,
it is intended that the Contributions will be treated as tax-free contributions
of property to Parent OP under Section 721(a) of the Internal Revenue Code of
1986, as amended (the “Code”); and

       

      WHEREAS,
the Parties desire to set forth their rights and responsibilities with respect
to certain tax matters arising in connection with the
Contributions.

       

      NOW, THEREFORE, in consideration of the
premises and the mutual promises contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

       

      1.           Definitions.  All
capitalized terms used and not otherwise defined herein shall have the meanings
ascribed to such terms in the Contribution Agreement.

       

      “Adjusted Spreadsheet”
shall have the meaning set forth in Section
7.

       

      “Allocable Share”
shall mean, with respect to a given LVP Party, such Person’s economic interest
in New Company, expressed as a percentage, as set forth on Schedule
D.

       

      “Applicable
Spreadsheet” shall mean the Preliminary Spreadsheet, the Adjusted
Spreadsheet or the Final Spreadsheet, as applicable.

       

      “BRM” shall have the
meaning set forth in the recitals.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Built-In Gain” shall
mean gain allocable under Section 704(c) of the Code pursuant to Treasury
Regulations Section 1.704-1(b)(4)(i) to the LVP Parties (or their Indirect
Owners) with respect to the Properties, taking into account any special inside
basis of the LVP Parties (or their Indirect Owners) under Section 743(b) of the
Code with respect to the Properties.  Such Built-In Gain shall be the
amount determined on the Applicable Spreadsheet and thereafter shall be adjusted
from time to time pursuant to the principles set forth in the Code and the
Regulations thereunder.  Built-In Gain shall be reduced by any
Built-In Gain that is recognized for federal income tax purposes prior to or
during the Protected Period.

       

      “Capital Account”
shall have the meaning set forth in the OP Agreement.

       

      “Capital Contribution
Agreements” shall have the meaning set forth in Section
4(d).

       

      “Capital Contribution
Obligations” shall have the meaning set forth in Section
4(d).

       

      “CMBS Debt” shall mean
the indebtedness of the Company and its Subsidiaries set forth on Schedule C (the
“Original CMBS Debt”) and any indebtedness incurred in replacement thereof in
whole or in part that (i) is secured only by one or more of the Properties and
(ii) qualifies as both a “nonrecourse liability” for purposes of Treasury
Regulations Section 1.752-1(a)(2) and “qualified nonrecourse financing” for
purposes of Section 465(b)(6) of the Code.

       

      “Code” shall have the
meaning set forth in the recitals.

       

      “Company” shall have
the meaning set forth in the recitals.

       

      “Contribution
Agreement” shall mean that certain Contribution Agreement, dated as of
December 8, 2009, by and among Lightstone, Holdings, BRM, the Company, LVP OP,
LVP REIT, Parent OP, Parent REIT, New Company, and certain other parties
thereto, as amended on May 13, 2010, June 28, 2010, and the date
hereof.

       

      “Contributions” shall
have the meaning set forth in the recitals.

       

      “Dispute Firm” shall
have the meaning set forth in Section
6(c).

       

      “Distributable Amount”
means (a) the sum of the Special Distribution Amount plus (b) the amount
described in Section 2.6(b) of the Contribution Agreement plus (c) the amount
described in Section 2.3(e)(i) of the Contribution Agreement.

       

      “Final Spreadsheet”
shall have the meaning set forth in Section
7.

       

      “General Partner”
shall mean the general partner of Parent OP.

       

      “Guaranties” shall
mean the guaranties of collection by the LVP Parties in respect of the Section
15.28 Loan executed as of the Closing Date, which are substantially in the form
attached as Exhibit
B.

       

      “Holdings” shall have
the meaning set forth in the recitals.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      “Indirect Owner”
means, in the case of a LVP Party that is an entity that is classified as a
partnership or disregarded entity for federal income tax purposes, any Person
owning an equity interest in such LVP Party and, in the case of any Indirect
Owner that itself is an entity that is classified as a partnership or
disregarded entity for federal income tax purposes, any Person owning an equity
interest in such entity.

       

      “Lichtenstein” shall
have the meaning set forth in the recitals.

       

      “Lichtenstein Parties”
shall mean Lightstone, Holdings, BRM and Lichtenstein.

       

      “LVP Guaranty Failure”
shall have the meaning set fort in Section 4(e).

       

      “Lightstone” shall
have the meaning set forth in the recitals.

       

      “LVP REIT” shall have
the meaning set forth in the recitals.

       

      “LVP Parties” shall
mean LVP and Pro-DFJV.

       

      “New Company” shall
have the meaning set forth in the recitals.

       

      “New Company
Agreement” shall mean the limited liability company operating agreement
of New Company, dated as of the date hereof.

       

      “Non-Parent TPA
Obligations” shall have the meaning set forth in Section
14.

       

      “OP Agreement” shall
mean the Eighth Amended and Restated Agreement of Limited Partnership of Parent
OP, dated as of May 8. 2008, as it may be amended.

       

      “Original CMBS Debt”
shall have the meaning set forth the in the definition of CMBS
Debt.

       

      “Parent OP” shall have
the meaning set forth in the recitals.

       

      “Parent OP Debt” shall
mean debt that is (i) indebtedness for U.S. federal tax purposes, (ii) either
(x) indebtedness of Parent OP or (y) indebtedness of an entity that is
disregarded as an entity separate from Parent OP for U.S. federal income tax
purposes for which Parent OP has provided a full recourse guaranty of payment in
respect of the entire principal amount, and (iii) not required to be registered
at any time with the Securities and Exchange Commission pursuant to the
Securities Act of 1933.

       

      “Parent REIT” shall
have the meaning set forth in the recitals.

       

      “Permitted Transfer”
shall have the meaning set forth in Section
2(b).

       

      “Preliminary
Spreadsheet” shall have the meaning set forth in Section
7.

       

      “Pro-DFJV” shall have
the meaning set forth in the recitals.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      “Properties” shall
mean the properties transferred directly or indirectly by LVP and Pro-DFJV
pursuant to the Contributions, or any entity in which Parent OP or any of its
Subsidiaries subsequently holds a direct or indirect interest as “substituted
basis property” as defined in Section 7701(a)(42) of the Code with respect
to any of the Properties.

       

      “Property” shall mean
any one of the Properties.

       

      “Protected Period”
shall mean the period of time beginning on the Closing Date and ending on the
date set forth on Schedule B in respect
of each Property.

       

      “Refinancing” shall
mean debt that is (i) allocable under the rules of Treasury Regulations Section
1.163-8T to payments discharging the Section 15.28 Loan or an earlier
Refinancing and (ii) that is owed by Parent OP (or an entity that is disregarded
as an entity separate from Parent OP for U.S. federal income tax purposes) to a
Person that is not related to any partner of Parent OP for purposes of Treasury
Regulations Section 1.752-4(b).

       

      “Refinancing Guaranty”
shall have the meaning set forth in Section
4(b).

       

      “Representative” shall
mean Lightstone, acting as agent on behalf of each LVP Party, in its capacity as
representative of the LVP Parties.

       

      “Restricted Transfer”
means any transaction or series of transactions involving the sale, conveyance,
exchange, or other transfer of more than 50% of Parent OP’s gross assets,
whether in a single transaction or a series of transactions, other than
a  transaction entailing a transfer (i) to a Subsidiary of Parent OP,
(ii) to a Person other than a Subsidiary of Parent OP for consideration having a
fair market value approximately equal to that of the transferred assets, or
(iii) in a transaction pursuant to which the full amount of the LVP Parties’
Built-In Gain is recognized, resulting in Parent OP making payment in full to
the LVP Parties to the extent required hereunder.

       

      “Section 15.28 Loan”
shall mean the loan to Parent OP to be made in connection with the Closing
pursuant to Section 15.28 of the Credit Agreement dated December 8, 2009 by and
among Parent OP, the lenders party thereto, and JP Morgan Chase Bank, N.A., as
administrative agent.

       

      “Section 752 Gain”
shall mean without duplication (x) gain recognized under Section 731(a)(1) of
the Code because of a deemed distribution under Section 752(b) of the Code or
(y) gain recognized under Section 465(e) of the Code, in either case as a result
of a reduction of the amount of liabilities allocable to the LVP Parties for
purposes of Section 752 of the Code (including liabilities allocable to the LVP
Parties with respect to their interests in New Company).

       

      “Taking” shall have
the meaning set forth in Section
2(b).

       

      “Taxable Disposition”
shall have the meaning set forth in Section
2(c).

       

      “Taxable OP Unit
Disposition” shall have the meaning set forth in Section
2(c).

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      “Taxable Property
Disposition” shall have the meaning set forth in Section
2(a).

       

      “TPAs” shall have the
meaning set forth in Section
14.

       

      “Treasury Regulations”
shall mean the income tax regulations promulgated under the Code, as such
regulations may be amended from time to time.

       

      2.           Restrictions on Dispositions
of the Properties.

       

       (a)           Subject
to Section 2(b), at all times during the Protected Period, neither Parent OP nor
any entity in which Parent OP holds a direct or indirect interest will
consummate a sale, transfer, exchange, or other disposition of any Property (but
excluding any Permitted Transfer), or engage in any other transaction, that
would result in the recognition of all or any portion of the Built-In Gain by a
LVP Party or its Indirect Owner(s) (a “Taxable Property
Disposition”).

       

      (b)           Section
2(a) shall not apply to (i) the condemnation or other taking of any Property by
a governmental entity or authority in an eminent domain proceeding or otherwise
(such event, a “Taking”), or (ii) a transfer of any of the Properties in an
involuntary bankruptcy against Parent OP or any entity in which Parent OP holds
a direct or indirect interest in any of the Properties (each, a “Permitted
Transfer”); provided, however, that in the event that a Taking occurs with
respect to a Property, Parent OP and Parent REIT shall use their commercially
reasonable efforts to avoid recognition of gain with respect to such Taking by
acquiring appropriate replacement property and making any required elections in
accordance with Section 1033(a)(2) of the Code and the Regulations promulgated
thereunder; provided, however, nothing herein shall be deemed to require that
Parent OP, Parent REIT or the General Partner take any action to avoid or
prevent a Permitted Transfer.

       

      (c)           At
all times that the LVP Parties hold direct or indirect interests in Parent OP,
and so long as Parent OP or an Affiliate of Parent OP is the Manager, Manager
shall not cause New Company to (and New Company shall not) consummate a sale,
transfer, exchange, or other disposition of any Parent OP Common Units, or
engage in any other transaction that would result in the recognition of all or
any portion of the Built-In Gain by a LVP Party or its Indirect Owner(s) (a
“Taxable OP Unit Disposition”, and together with a Taxable Property Disposition,
a “Taxable Disposition”).

       

      (d)           For
the avoidance of doubt, a Taxable Disposition shall not include a sale,
transfer, exchange, or other disposition of any New Company Units or Parent OP
Common Units (including following a pledge of New Company Units or Parent OP
Common Units) by a LVP Party (or an Indirect Owner) or any Affiliate
thereof.

       

      3.           Obligation to Maintain and
Allocate Certain Debt.

       

      (a)           Parent
OP shall maintain the Section 15.28 Loan or the Refinancing with an outstanding
principal balance of no less than the Distributable Amount until the fourth
anniversary of the Closing Date, and shall not discharge the Section 15.28 Loan
(other than through a Refinancing) or the Refinancing prior to such
anniversary.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b)           Parent
OP, directly or indirectly, shall maintain the CMBS Debt at all times through
the scheduled maturity dates listed on Schedule C, in the
principal amounts set forth on Schedule C, as
adjusted for regularly scheduled principal payments.

       

      (c)           At
all times up to and including the scheduled maturity of the Original CMBS Debt,
Parent OP shall allocate “excess nonrecourse liabilities” (as described in
Treasury Regulations Section 1.752-3(a)(3)) in respect of each Property subject
to the CMBS Debt to each LVP Party (through its interest in New Company) up to
the amount of such Person’s Allocable Share of the Built-In Gain with respect to
each such Property, after taking into account allocations described in Treasury
Regulations Sections 1.752-3(a)(1) and 1.752-3(a)(2).

       

      (d)           The
CMBS Debt shall be allocated among the Properties in accordance with Treasury
Regulations Section 1.752-3(b).  The allocation of the CMBS Debt among
the Properties as of the Closing Date shall be set forth on a schedule to be
delivered to Parent OP as soon as practicable following the date hereof;
provided, that the amount of CMBS Debt allocated to the Property at
Jeffersonville, Ohio (“Jeffersonville”) shall be determined by negotiation
and agreement reached between Simon OP and the applicable servicer of the CMBS
Debt with respect to Jeffersonville.  As a frame of reference only, the
original CMBS Debt documents allocated approximately $75.1 million of debt to
Jeffersonville.

       

      (e)           All
tax returns filed by Parent OP shall report the outstanding principal amount of
the Section 15.28 Loan and any Refinancing as a recourse liability allocable
solely to the LVP Parties (through their interests in New Company) to the extent
of the Guaranties or Refinancing Guaranties for purposes of Section 752 of the
Code, except as required by a change in law or a determination under Section
1313 of the Code with respect to a LVP Party after the date hereof.

       

      (f)           For
federal, state and local tax purposes, the Section 15.28 Loan and any
Refinancing with respect to which the LVP Parties provide Refinancing Guaranties
shall be Parent OP Debt that satisfies the requirements for treatment as a
“nonrecourse liability” for purposes of Treasury Regulations Section
1.752-1(a)(2), and would not constitute “partner nonrecourse debt” or a “partner
nonrecourse liability” within the meaning of Treasury Regulations Section
1.704-2(b)(4) in the absence of any Guaranty or Refinancing Guaranty. For
avoidance of doubt, any “significant modification” (within the meaning of
Treasury Regulations Section 1.1001-3(e)) of the Section 15.28 Loan or a
Refinancing occurring as a result of actions by Parent OP or any of its
Affiliates shall itself be treated as the incurrence of new indebtedness for
purposes of this Agreement and must satisfy the requirements set forth in the
previous sentence.

       

      4.           Guaranties; Capital
Contribution Obligations.

       

      (a)           At
all times up to and including the maturity of the Section 15.28 Loan, Parent OP
shall permit each LVP Party to maintain a Guaranty in an amount at least equal
to such Person’s Allocable Share of the Distributable Amount, as determined from
time to time.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (b)           Each
LVP Party shall be given the opportunity to provide a guaranty of collection
with respect to any Refinancing that is substantially identical to the Guaranty
in all respects including the amount of the guaranty (the “Refinancing
Guaranty”) contemporaneously with the consummation of each such Refinancing, and
shall be permitted to maintain such Refinancing Guaranty at all times up to and
including the maturity of each Refinancing in an amount at least equal to such
LVP Party’s Allocable Share of Distributable Amount; provided, that Parent OP
shall have no obligation to offer the LVP Parties the opportunity to provide
Refinancing Guaranties with respect to any Refinancing consummated after the
fourth anniversary of the Closing Date; provided further, at any time after the
fourth anniversary of the Closing Date, Parent OP shall be permitted to repay or
satisfy, in whole or in part, modify or otherwise take any actions with respect
to the 15.28 Loan or any Refinancing without limitation.

       

      (c)           Parent
REIT shall not be an obligor with respect to the Section 15.28 Loan or any
Refinancing with respect to which the LVP Parties provide Refinancing
Guaranties.

       

      (d)           At
all times that the LVP Parties hold direct or indirect interests in Parent OP
(other than through the ownership of stock of Parent REIT), Parent OP shall
offer the LVP Parties the opportunity to enter into capital contribution
agreements substantially in the form of Exhibit A (the
“Capital Contribution Agreements”), pursuant to which the LVP Parties shall have
capital contribution obligations in respect of indebtedness of Parent OP that
would qualify as “nonrecourse liabilities” for purposes of Treasury Regulations
Section 1.752-1(a)(2) in the absence of such agreements (the “Capital
Contribution Obligations”).  The LVP Parties shall designate the
initial amounts of the Capital Contribution Obligations on the Closing Date on
Schedule E, and
such amounts shall be increased from time to time pursuant to the terms of the
Capital Contribution Agreements.  Parent OP shall maintain sufficient
amounts of indebtedness described in the first sentence of this paragraph in
order to support the Capital Contribution Obligations, taking into account any
other similar obligations of other direct or indirect owners of Parent OP, at
all times that the LVP Parties hold direct or indirect interests in Parent
OP.

       

      (e)           If
a LVP Party declines to execute a Refinancing Guaranty that Parent OP tenders to
such LVP Party (a “LVP Guaranty Failure”), the loan to which such guaranty
opportunity relates, and any refinancing of such loan, shall no longer be
subject to the provisions of this Section 4 and, accordingly, Parent OP shall
not be required at any point in the future to offer such LVP Party an
opportunity to guaranty such Refinancing or any loan that refinances such
Refinancing.

       

      5.           Section 704(c)
Method.  Parent OP and any other entity in which Parent OP has
a direct or indirect interest shall use, to the extent permitted under the Code,
the “traditional method” (without “curative allocations”) under Treasury
Regulations Section 1.704-3(b) for purposes of making allocations under Code
Section 704(c) with respect to each Property to take into account the
book-tax disparities as of the Closing Date and with respect to any revaluation
of such Property pursuant to Treasury Regulations Sections 1.704-1(b)(2)(iv)(f),
1.704-1(b)(2)(iv)(g), and 1.704-3(a)(6).

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
         

        6.           Indemnification.

         

        (a)

         

      

      (i)           In
the event that Parent OP or New Company breaches its obligations under Section 2, Parent OP
and Parent REIT shall indemnify and hold harmless each LVP Party from and
against, and Parent OP and Parent REIT shall  be jointly and severally
liable to each LVP Party for (x) the amount of Taxes deemed incurred by such LVP
Party with respect to such LVP Party’s Allocable Share of the Built-In Gain that
is recognized as a result of such Taxable Disposition and (y) a “gross-up”
amount so that, after the hypothetical payment by such LVP Party of all Taxes on
amounts received pursuant to this Section 6(a)(i), such LVP Party would retain
from such payments hereunder an amount equal to its total deemed income tax
liability incurred as a result of the Taxable Disposition and recognition of
Built-In Gain.

       

      (ii)           In
the event that Parent OP breaches its obligations under Section 3 or Section 4, Parent OP
and Parent REIT shall indemnify and hold harmless each LVP Party from and
against, and Parent OP and Parent REIT shall be jointly and severally liable to
each LVP Party for (x) the amount of Taxes deemed incurred by such LVP Party
with respect to the Section 752 Gain or other gain recognized by such LVP Party
as a result of such breach and (y) a “gross-up” amount so that, after the
hypothetical payment by such LVP Party of all Taxes on amounts received pursuant
to this Section 6(a)(ii), such LVP Party would retain from such payments
hereunder an amount equal to its total deemed income tax liability incurred as a
result of such breach and its recognition of Section 752 Gain or other
gain.

       

      (iii)           In
the event that Parent OP breaches its obligations under Section 5, Parent OP
and the REIT shall indemnify and hold harmless each LVP Party from and against,
and Parent OP and the REIT shall be jointly and severally liable to each LVP
Party for (x) the amount of Taxes deemed incurred by such LVP Party as a result
of, or in connection with, such breach (taking into account all Taxes imposed
with respect to items allocated to the LVP Party as a result of allocations not
permitted by Section
5) and (y) a “gross-up” amount so that, after the hypothetical payment by
such LVP Party of all Taxes on amounts received pursuant to this Section
6(a)(iii), such LVP Party would retain from such payments hereunder an amount
equal to its total deemed income tax liability incurred as a result of such
breach.

       

      (b)           Notwithstanding
anything herein to the contrary, it is the understanding and the intention of
the parties hereto that Parent OP and Parent REIT shall have no liability under
this Agreement as a result of (i) any actions or failure to take actions prior
to the Closing, (ii) any change in Law or interpretation thereof after the date
hereof, (iii) the structure and effectuation of the transactions contemplated by
this Agreement, the Contribution Agreement or any other Transaction Document or
(iv) any action taken by LVP OP or LVP REIT or any LVP Party (or its Indirect
Owner) or any Affiliate of any of the foregoing (regardless of when such action
is taken). 

       

      (c)           For
purposes of determining the amount of the deemed income Taxes incurred by each
LVP Party and the amount of the indemnity under Section 6(a), (i) all
income arising from a transaction or event that is taxable at ordinary income
rates (including, without limitation, “recapture” under Code Sections 1245 or
1250 and net short-term capital gain) under the applicable provisions of the
Code and allocable to a given LVP Party shall be treated as subject to federal,
state and local income tax at the then applicable effective tax rate imposed on
the income of corporations doing business in New Jersey, determined using the
maximum federal rate of tax on ordinary income and the maximum state and local
rates of tax on income then in effect in New Jersey and (ii) the benefits of the
deductibility of state and local income taxes shall be taken into
account.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      7.           Determination of Built-In
Gain.  As soon as practicable following the Closing, the LVP
Parties shall provide to Parent OP, a spreadsheet (the “Preliminary
Spreadsheet”) showing their good faith estimate of the amount of Built-In Gain
with respect to the Properties as of the Closing Date.  Promptly
following the determination of the Actual Adjustment, the LVP Parties and Parent
OP shall jointly prepare a spreadsheet showing the amount of the Built-In Gain
with respect to the Properties as of the Closing Date, prepared on a basis
consistent with the Preliminary Spreadsheet and updated to reflect the Actual
Adjustment (the “Adjusted Spreadsheet”). Promptly following the disbursement of
all amounts from the Escrow Account, the LVP Parties and Parent OP shall jointly
prepare a spreadsheet showing the amount of the Built-In Gain with respect to
the Properties as of the Closing Date, prepared on a basis consistent with the
Adjusted Spreadsheet and updated to reflect the settlement of the Escrow (the
“Final Spreadsheet”).  Each Applicable Spreadsheet shall reflect any
sales of Properties prior to the preparation of such spreadsheet.

       

      8.           Cooperation Regarding
Post-Closing Tax Matters.  The LVP Parties agree to, and agree
to cause their Affiliates to, cooperate and to provide such information and
assistance as may be reasonably requested by Parent OP in connection with any
tax reporting or compliance obligations of Parent OP or its Affiliates or any
obligations of Parent OP under this Agreement.  Such cooperation shall
include the provision of information required for Parent OP to properly prepare
and file any U.S. federal or state tax returns or reports relating to the
transactions contemplated in the Contribution Agreement or the Properties and
any information reasonably relevant to the determination of any potential
liability of Parent OP under Section
6.

       

      9.           Reporting.

       

      (a)           For
Federal, state and local income tax purposes, the Contributions and the
distribution of the Distributable Amount shall be reported by all parties hereto
as follows:

       

      (i)           The
Contributions shall be treated as nontaxable contributions in exchange for
Parent OP Common Units under Section 721(a) of the Code.

       

      (ii)           The
distribution of the Distributable Amount from the proceeds of the Section 15.28
Loan shall be treated as a nontaxable distribution to a partner pursuant to
Section 731 of the Code and Treasury Regulations Section 1.707-5(b), without
separate disclosure pursuant to Section 6662(d)(2)(B)(ii) or any other provision
of the Code or Treasury Regulations or similar provisions of state and local
law, except as required by a change in law after the date hereof; provided that, upon a
reasonable request from Parent OP or its accountant, the LVP Parties shall
provide (at Parent OP’s expense) to Parent OP, at the LVP Parties’ election,
either (i) a letter from a nationally recognized accounting firm or law firm
with expertise in U.S. federal income taxation of partnerships addressed to
Parent OP or its accountant or (ii) an opinion letter from such a firm, which
shall provide that Parent OP or its accountant is entitled to rely on it, in
each case providing the required level of comfort to Parent OP or its accountant
in order to sign the return or returns.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (iii)           Pursuant
to Notice 89-35, 1989-1 C.B. 675, for purposes of applying the interest-tracing
rules of Treasury Regulations Section 1.163-8T, the Company shall treat the
distribution of the Distributable Amount as being made from the proceeds of the
Section 15.28 Loan.

       

      10.          No Limitations After
Expiration of Term of the Agreement; Sole and Exclusive Remedy; No
Representations or Warranties; Limitation on Rights.

       

      (a)           After
the expiration of the Protected Period with respect to any Property, (i) the
restriction set forth in Section 2 with respect to such Property shall be of no
force and effect, (ii) neither Parent OP nor the General Partner shall be under
any restriction or limitation as to the actions it can take with respect to such
Property, whether by reason of fiduciary duty or otherwise, regardless of the
tax consequences that such action (or any failure to act) might have for the LVP
Parties, and (iii) the Parent OP and the General Partner shall have no duty to
consider the tax consequences to LVP Parties of any action (or failure to act)
with respect to such Property.

       

      (b)           The
sole and exclusive remedy of LVP Parties against Parent OP and the General
Partner and any affiliates thereof with respect to any breach or alleged or
prospective breach of the covenants set forth in Sections 2, 3 or 4 shall be to
receive the payment from the Parent OP provided in Section 6 hereof, it being
intended by the parties that in no event shall any LVP Party have any right to
specific performance or equitable relief with respect to any obligation of
Parent OP under this Agreement or with respect to the breach of Section 2 any
right to money damages of any nature, consequential or otherwise, for any breach
under this Agreement, except for the specific payment provided for in Section
6(a) hereof.

       

      (c)           Each
of the LVP Parties acknowledges and agrees that none of the Parent OP, General
Partner, any Affiliate of Parent OP or Parent REIT, or any employee or officer
of any of the foregoing has made or hereby makes any representation or warranty
to any LVP Party regarding the federal income tax treatment of Parent OP (other
than to the extent set forth in the Contribution Agreement) or the federal
income tax consequences of any of the transactions contemplated by the
Contribution Agreement, including whether or not the transfer of the Properties
to Parent OP as contemplated under the Contribution Agreement will be effective
to avoid the recognition by any taxpayer of all or any portion of the gain that
otherwise would be required to be recognized for federal income tax purposes
upon a fully taxable disposition of the Properties, and in that event the LVP
Parties shall bear the cost of all income taxes associated therewith. Each LVP
Party further acknowledges and agrees that the transactions contemplated by the
Contribution Agreement shall be treated as having occurred outside of this
Agreement and, accordingly, are not intended to be, and shall not be, covered by
this Agreement.

       

      11.          Provision of Information to
the LVP
Parties.

      (a)           At
the time Parent OP and any entity in which Parent OP holds a direct or indirect
interest enters into an agreement to consummate a Taxable Disposition that, if
consummated, would result in the recognition by the LVP Parties of all or any
portion of their Built-In Gain, and in any case not less than thirty (30) days
prior to consummating such Taxable Disposition, Parent OP shall notify
Representative in writing of such proposed Taxable Disposition and all details
of the Taxable Disposition that are relevant to the calculation of the
indemnities set forth herein including, but not limited to (i) the Property, or
portion thereof disposed of, (ii) the amount and nature of the consideration to
be received, and (iii) the expected amount of gain (including Built-In Gain)
allocable to the LVP Parties (or their Indirect Owners, if applicable) as a
result of such Taxable Disposition.  The failure to provide any such
written notice shall not affect the amount, if any, of Parent OP’s
indemnification obligation.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (b)           At
the time Parent OP and any entity in which Parent OP holds a direct or indirect
interest enters into an agreement to consummate a transaction that, if
consummated, would result in the recognition by the LVP Parties of Section 752
Gain, and in any case not less than thirty (30) days prior to consummating such
transaction, Parent OP shall notify Representative in writing of such proposed
transaction and all details that are relevant to the calculation of the
indemnities set forth herein including, but not limited to the expected amount
of Section 752 Gain allocable to the LVP Parties (or their Indirect Owners, if
applicable) as a result of such transaction.  The failure to provide
any such written notice shall not affect the amount, if any, of Parent OP’s
indemnification obligation.

       

      (c)           Following
a request by a LVP Party, Parent OP shall deliver to such LVP Party (or the
direct or indirect owner of such LVP Party, if applicable) a good-faith estimate
of such Person’s Capital Account and allocation of  Partnership
liabilities pursuant to each of  Treasury Regulations Sections
1.752-2(a), 1.752-3(a)(1), (2), and (3).  Parent OP shall have no
liability (and its indemnification obligation under this Agreement shall not be
affected) if it fails to provide any such good faith estimate or if such
estimate is not accurate.

       

      12.          Contests.

       

      (a)           Nothing
in this Agreement shall be construed to prevent the General Partner from
contesting in good faith, as the tax matters partner of Parent OP in accordance
with the OP Agreement, any claim that, if successful, would result in an
indemnity payment pursuant to Section 6.

       

      (b)           The
LVP Parties shall provide written notice to Parent OP promptly after learning of
any audit or other proceeding involving a LVP Party for which Parent OP could
have an indemnification obligation under Section 6 (a “Proceeding”).  Failure
to provide prompt written notice of a Proceeding shall preclude any indemnity
hereunder to the extent Parent OP is materially prejudiced thereby.

       

      (i)           Upon
receipt of notice of a Proceeding, Parent OP shall either (i) assume the conduct
and control of the settlement or defense of such Proceeding, and the LVP Parties
shall cooperate with Parent OP in connection therewith (including, for example,
signing a power of attorney with respect to such Proceeding) or (ii) advise the
LVP Parties that it does not wish to control such Proceeding, in which case
Parent OP shall bear all costs and expenses of a nationally recognized law firm
retained to represent the LVP Parties in such Proceeding, which counsel shall be
reasonably acceptable to Parent OP. In either event, the party not controlling
the Proceeding shall be given the right to participate in such Proceeding, at
its own expense. So long as Parent OP is reasonably contesting any Proceeding,
the LVP Parties (or their Indirect Owners) shall not pay or settle any such
Proceeding without the consent of Parent OP, which consent may be withheld in
Parent OP’s sole discretion.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      (ii)           Subject
to Section
12(b)(iii), (a) a final
determination under Section 1313 of the Code of the claim underlying the
Proceeding shall be binding on Parent OP and the LVP Parties and (b) if the LVP
Parties are found liable for the Taxes that were the subject of the Proceeding,
and it is determined that such Taxes were caused by Parent OP’s breach of this
Agreement, Parent OP shall promptly pay the LVP Parties the amount payable
pursuant to Section
6 of this Agreement.

       

      (iii)           Notwithstanding
the foregoing, if either Parent OP or the LVP Parties disputes the finding with
respect to causation, Parent OP shall select a nationally recognized accounting
firm or law firm experienced in tax protection matters and reasonably acceptable
to Representative (the “Dispute Firm”) to review the indemnification claim and
the applicable provisions of this Agreement.  The Dispute Firm shall
have fifteen (15) business days (or such additional time as the Dispute Firm
determines is reasonably necessary) to review such materials and deliver to
Parent OP and Representative its determination of whether any amount is due
under this Agreement.  The determination of the Dispute Firm shall be
final and binding on the parties to this Agreement, and Parent OP shall promptly
pay over to the LVP Parties such amounts determined by the Dispute Firm to be
due under this Agreement and the LVP Parties shall have no further recourse
against Parent OP for the indemnification claim with respect to which such
amounts have been paid.  Parent OP shall bear all costs and expenses
of the Dispute Firm; provided, the LVP
Parties shall bear such costs if Parent OP is found to have no liability
pursuant to this Agreement.

       

      (c)           Subject
to paragraphs (a) and (b) above, the LVP Parties shall have the right to
participate in any audit, claim for refund, or administrative or judicial
proceeding involving any asserted Tax liability, refund, or adjustment to the
taxable income of any party hereto that could result in disallowance of the tax
treatment set forth in Section 9 at its own
expense.

       

      13.          Transfer of Parent OP’s
Assets.  For so long as the LVP Parties hold direct or indirect
interests in Parent OP, neither Parent OP nor its Affiliates shall consummate a
Restricted Transfer unless the transferee assumes the liabilities and
obligations of Parent OP under this Agreement; provided, that Parent OP shall
not be released from such liabilities and obligations as a result of such
assumption.

       

      14.          Assumption of Existing Tax
Protection Agreements.  Parent OP and Parent REIT shall
indemnify and hold harmless LVP OP, LVP REIT, each LVP Party, each Lichtenstein
Party, or any of their Affiliates from and against, and Parent OP and Parent
REIT shall be jointly and severally liable for all liabilities and obligations
arising under the Tax Protection Agreements set forth on Schedule F (such
Agreements, the “TPAs”)  solely
as a result of Parent OP, Parent REIT or any of their Affiliates (including the
Company) taking an action or failing to take an action after the Closing that
triggers an indemnification obligation under a TPA (such liabilities and
obligations, the “Parent TPA Obligations”).  For the avoidance of
doubt, the Parent TPA Obligations shall not include any liabilities or
obligations under the TPAs with respect to (a) the structure of the
contributions and debt arrangements that are the subject of the TPAs, (b) any
transactions occurring prior to the Closing, (c) the structure and effectuation
of the transactions contemplated by the Contribution Agreement or any other
Transaction Document, (d) any actions taken by any Member of the New Company,
LVP OP or LVP REIT (regardless of when such action is taken), or (e) a change in
Law or interpretation thereof after the date hereof.  The LVP OP and
LVP REIT shall indemnify and hold harmless Parent OP from and against and LVP OP
and LVP REIT shall be jointly and severally liable for any liability arising
under the TPAs that is not a Parent TPA Obligation (“Non-Parent TPA
Obligations”).  The Non-Parent TPA Obligations shall not be
subject to any limitations, including without limitation, the limitations on
indemnification described in Article 10 of the Contribution
Agreement.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      15.          Miscellaneous
Provisions.

       

      (a)           Assignment.  No
party shall assign this Agreement or its rights hereunder to any Person without
the prior written consent of the other party, which consent such other party may
grant or withhold in its sole discretion, and any such assignment undertaken
without such consent shall be null and void.

       

      (b)           Integration,
Waiver.  This Agreement (including the Exhibits hereto)
embodies and constitutes the entire understanding among the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements,
understandings, representations and statements, whether oral or
written.  Neither this Agreement nor any provision hereof may be
waived, modified, amended, discharged or terminated except by an instrument
signed by the party against whom the enforcement of such waiver, modification,
amendment, discharge or termination is sought, and then only to the extent set
forth in such instrument. No waiver by a party hereto of any failure or refusal
by any other party to comply with its obligations hereunder shall be deemed a
waiver of any other or subsequent failure or refusal to so comply.

       

      (c)           Governing
Law.  This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York, without regard to principles
of conflicts of laws.

       

      (d)           Captions Not Binding:
Exhibits.  The captions in this Agreement are inserted for
reference only and in no way define, describe or limit the scope or intent of
this Agreement or of any of the provisions hereof.  All Exhibits
attached hereto shall be incorporated by reference as if set out herein in
full.

       

      (e)           Binding Effect; No
Third-Party Beneficiaries.  This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns.  No Person, other than the parties
hereto, shall have any rights against Parent OP as a result of this
Agreement.  The parties hereto further acknowledge that there are no
intended third-party beneficiaries to this Agreement.

       

      (f)           Severability.  If
any term or provision of this Agreement or the application thereof to any
persons or circumstances shall, to any extent, be invalid or unenforceable, the
remainder of this Agreement or the application of such term or provision to
Persons or circumstances other than those as to which it is held invalid or
unenforceable shall not be affected thereby, and each term and provision of this
Agreement shall be valid and enforced to the fullest extent permitted by
law.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      (g)           Notices.  All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by cable, telegram, facsimile, scanned pages or
telex, or by registered or certified mail (postage prepaid, return receipt
requested) as follows:

       

      To Parent REIT, Parent OP or
Parent Sub:

       

      Simon
Property Group, Inc

      225 West
Washington Street

      Indianapolis,
Indiana 46204

      Attention:       James
M. Barkley

      Facsimile:       317-685-7377

       

      with a
copy (which copy shall not constitute notice) to:

       

      Fried,
Frank, Harris, Shriver and Jacobson LLP

      One New
York Plaza

      New York,
New York 10004

      Tel:
212.859.8980

      Attention:       Peter
S. Golden

       Alan
S. Kaden

      Facsimile:       212.859.4000

       

      To the
Representative:

       

      Lightstone
Prime, LLC

      c/o The
Lightstone Group

      1985
Cedar Bridge Avenue

      Lakewood,
NJ  08701

      Attention:             
Joseph E. Teichman, Esq.

      Facsimile:             
732-612-1444

       

      with a copy (which shall not
constitute notice) to:

       

      Paul,
Weiss, Rifkind, Wharton & Garrison LLP

      1285
Avenue of the Americas

      New York,
New York  10019-6064

      Attention:       Jeffrey
D. Marell

        Jeffrey
B. Samuels

      Facsimile:      
212-757-3990

       

      or to
such other address as any party to whom notice is given may have previously
furnished to the others in writing in the manner set forth above.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      (h)           Counterparts.  This
Agreement may be executed in counterparts, each of which shall be an original
and all of which counterparts taken together shall constitute one and the same
agreement. The signature page of any counterpart may be detached therefrom
without impairing the legal effect of the signature(s) thereon provided such
signature page is attached to any other counterpart identical thereto except
having additional signature pages executed by other parties to this Agreement
attached thereto.

       

      (i)           Construction.  The
parties acknowledge that each party and its counsel have reviewed and revised
this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement or any amendment or Exhibit
hereto.

       

      [Remainder
of Page Intentionally Left Blank]

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, EACH PARTY HERETO
HAS CAUSED THIS Agreement to be duly executed on its behalf on the date first
above written.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                Simon
      Property Group, Inc.

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ Stephen E. Sterrett

                                              
	 
      	
                                                Name:
      Stephen E. Sterrett

                                              
	 
      	
                                                Title:
      Executive Vice President and Chief

                                                Financial
      Officer

                                              
	 
      	 
      
	
                                                Simon
      Property Group, L.P.

                                              
	 	 
	
                                                By:

                                              	
                                                Simon
      Property Group, Inc., its general partner

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ Stephen E. Sterrett

                                              
	 
      	
                                                Name:
      Stephen E. Sterrett

                                              
	 
      	
                                                Title:
      Executive Vice President and Chief

                                                Financial
      Officer

                                              
	 
      	 
      
	
                                                Prime
      Outlets Acquisition Company LLC

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ David Lichtenstein

                                              
	Name:
      David Lichtenstein
	Title:
      Authorized Signatory
	 
      	 
      
	
                                                Marco
      LP Units, LLC

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ Stephen E. Sterrett

                                              
	 
      	
                                                Name:
      Stephen E. Sterrett

                                              
	 
      	
                                                Title:
      Executive Vice President and Chief Financial Officer

                                              
	 
	
                                                Lightstone
      Prime, LLC

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ David Lichtenstein

                                              
	 
      	
                                                Name:
      David Lichtenstein

                                              
	 
      	
                                                Title:
      Authorized
Signatory

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      [Signature
page to DL Tax Matters Agreement]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                Lightstone
      Holdings, LLC

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ David Lichtenstein

                                              
	 
      	
                                                Name:
      David Lichtenstein

                                              
	 
      	
                                                Title:
      Authorized Signatory

                                              
	 
      	 
      
	
                                                Pro-DFJV
      Holdings LLC

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ David Lichtenstein

                                              
	 
      	
                                                Name:
      David Lichtenstein

                                              
	 
      	
                                                Title:
      Authorized Signatory

                                              
	 
      	 
      
	
                                                BRM,
      LLC

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ David Lichtenstein

                                              
	 
      	
                                                Name:
      David Lichtenstein

                                              
	 
      	
                                                Title:
      Authorized Signatory

                                              
	 
      	 
      
	
                                                Lightstone
      Value Plus Real Estate Investment Trust, Inc.

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ David Lichtenstein

                                              
	 
      	
                                                Name:
      David Lichtenstein

                                              
	 
      	
                                                Title:
      Authorized Signatory

                                              
	 
      	 
      
	
                                                Lightstone
      Value Plus REIT, L.P.

                                              
	 	 
	
                                                By:

                                              	
                                                /s/ David Lichtenstein

                                              
	 
      	
                                                Name:
      David Lichtenstein

                                              
	 
      	
                                                Title:
      Authorized Signatory

                                              
	 
      	 
      
	
                                                /s/ David Lichtenstein

                                              
	
                                                David
      Lichtenstein

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      [Signature
page to LVP Tax Matters Agreement]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      SCHEDULE
A

       

      Schedule
A intentionally omitted.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
B

       

      PROTECTED
PERIODS

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      	
                                                              Property

                                                            	 	
                                                              End of Protected Period

                                                            
	 	 	 
	
                                                              Ellenton

                                                            	 	
                                                              Eighth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              San
      Marcos

                                                            	 	
                                                              Eighth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Orlando

                                                            	 	
                                                              Eighth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Grove
      City

                                                            	 	
                                                              Eighth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Jeffersonville

                                                            	 	
                                                              Eighth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Pleasant
      Prairie I

                                                            	 	
                                                              Sixth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Williamsburg

                                                            	 	
                                                              Sixth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Pleasant
      Prairie II

                                                            	 	
                                                              Sixth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Williamsburg
      Mazel

                                                            	 	
                                                              Sixth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Queenstown

                                                            	 	
                                                              Sixth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Lee

                                                            	 	
                                                              Sixth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Hagerstown

                                                            	 	
                                                              Sixth
      anniversary of the Closing

                                                            
	 	 	 
	
                                                              Calhoun

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Naples

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Florida
      City

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Gaffney

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Gulfport

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Huntley

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Lebanon

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Pismo
      Beach

                                                            	 	
                                                              June
      26, 2013

                                                            
	 	 	 
	
                                                              Birch
      Run

                                                            	 	
                                                              June
      26, 2013

                                                            

                                                    

                                                    

                                                      
                                                        
                                                           

                                                        

                                                        
                                                           

                                                          
                                                            

                                                          

                                                        

                                                        
                                                           

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      SCHEDULE
C

       

      CMBS
DEBT

      
         

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  	
                                                                          Lender

                                                                        	 	
                                                                          Loan

                                                                        	 	
                                                                          Property

                                                                        	 	 	
                                                                          Amount

                                                                          Outstanding

                                                                        	 	
                                                                          Maturity

                                                                        
	 	 	 	 	 	 	 	 	 	 
	
                                                                          Wachovia

                                                                        	 	
                                                                          Megadeal

                                                                        	 	
                                                                          Ellentown

                                                                        	 	$	
                                                                          609.1
      million

                                                                        	 	
                                                                          January
      11, 2016

                                                                        
	 
      	 	 
      	 	
                                                                          Florida
      City

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Grove
      City

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Gulfport

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Huntley

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Jeffersonville

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Lebanon

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Naples

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          San
      Marcos

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Pleasant
      Prairie I

                                                                        	 	 	 
      	 	 
      
	
                                                                          Citigroup

                                                                        	 	
                                                                          2nd
      Horizon

                                                                        	 	
                                                                          Pismo
      Beach

                                                                        	 	$	
                                                                          100.0
      million

                                                                        	 	
                                                                          November
      6, 2016

                                                                        
	 
      	 	 
      	 	
                                                                          Queenstown

                                                                        	 	 	 
      	 	 
      
	
                                                                          CIBC

                                                                        	 	
                                                                          Bridge
      Portfolio

                                                                        	 	
                                                                          Calhoun

                                                                        	 	$	
                                                                          112.0
      million

                                                                        	 	
                                                                          September
      1, 2016

                                                                        
	 
      	 	 
      	 	
                                                                          Gaffney

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Lee

                                                                        	 	 	 
      	 	 
      
	
                                                                          Wachovia

                                                                        	 	
                                                                          Triple
      Outlet World
      Loans

                                                                        	 	
                                                                          Birch
      Run

                                                                        	 	$	
                                                                          308.1
      million

                                                                        	 	
                                                                          April
      11, 2016

                                                                        
	 
      	 	 
      	 	
                                                                          Hagerstown

                                                                        	 	 	 
      	 	 
      
	 
      	 	 
      	 	
                                                                          Williamsburg

                                                                        	 	 	 
      	 	 
      
	
                                                                          CIBC

                                                                        	 	
                                                                          Pleasant
      Prairie II

                                                                        	 	
                                                                          Pleasant
      Prairie II

                                                                        	 	$	
                                                                          37.6
      million

                                                                        	 	
                                                                          December
      1, 2016

                                                                        

                                                                

                                                              

                                                              
                                                                
                                                                   

                                                                

                                                                
                                                                   

                                                                  
                                                                    

                                                                  

                                                                

                                                                
                                                                   

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      SCHEDULE
D

       

      ALLOCABLE
SHARES

       

      
        
          
            
              
                
                  
                    
                      	
                              LVP Party

                            	 	
                              Allocable Shares

                            	 
	 	 	 	 	 
	
                              Lightstone
      Value Plus REIT, L.P.

                            	 	 	26.144	%
	 	 	 	 	 
	
                              Pro-DFJV
      Holdings, LLC

                            	 	 	14.755	%

                    

                  

                

              

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SCHEDULE
E

       

      CAPITAL
CONTRIBUTION OBLIGATIONS

       

      
        
          
            
              
                
                  
                    
                      	
                              LVP
      Party

                            	 	
                              Amount
      of Capital Contribution Obligation

                              as
      of the Closing Date

                            	 
	 	 	 	 	 
	
                              Lightstone
      Value Plus REIT, L.P.

                            	 	$	100,000,000	 

                    

                  

                

              

            

          

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       SCHEDULE
F

       

      TAX
PROTECTION AGREEMENTS

       

      
        	
                 
      

              	
                1.

              	
                Tax
      Protection Agreement, dated August 25, 2009, by and between
      Lightstone Value Plus REIT, L.P. and Central Jersey Holdings II
      LLC.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Tax
      Protection Agreement, dated August 25, 2009, by and between
      Lightstone Value Plus REIT, L.P. and JT Prime
  LLC.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Tax
      Protection Agreement, dated August 25, 2009, by and between
      Lightstone Value Plus REIT, L.P. and Trac Central Jersey
    LLC.

              

      

       

      
        	
                 
      

              	
                4.

              	
                Tax
      Protection Agreement, dated June 26, 2008, by and among Lightstone
      Value Plus REIT, L.P., the Company, and AR Prime Holdings,
      LLC.

              

      

       

      
        	
                 
      

              	
                5.

              	
                Series
      C Optional Tax Indemnification, attached as Exhibit H to Fourth Amended
      and Restated Agreement of Limited Partnership of Prime Retail,
      L.P.

              

      

       

      
        	
                 
      

              	
                6.

              	
                Tax
      Protection Agreement, dated June 26, 2008, by and between Lightstone
      Value Plus REIT, L.P. and Arbor National CJ,
  LLC.

              

      

       

      
        	
                 
      

              	
                7.

              	
                Tax
      Protection Agreement, dated June 26, 2008, by and between Lightstone
      Value Plus REIT, L.P. and Arbor Mill Run JRM
  LLC.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      FORM
OF CAPITAL CONTRIBUTION AGREEMENT

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
B

       

      FORM
OF GUARANTY OF COLLECTION

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      EXECUTION
COPY

       

      GUARANTY
OF COLLECTION

       

      THIS
GUARANTY OF COLLECTION is made as of August 30, 2010 (this “Agreement”) by
Lightstone Value Plus REIT, L.P., a Delaware limited partnership (the
“Guarantor”), to and for the benefit of JPMorgan Chase Bank, N.A., as
Administrative Agent (the “Agent”), each of the Lenders (as such term is defined
in the Credit Agreement (as defined below)), and any of their respective
successors and assigns with respect to the obligations of Simon Property Group,
L.P., a Delaware limited partnership (the “Borrower”), in respect of the Loans
(as hereinafter defined), and is acknowledged by the Agent, as representative
acting on behalf of the Lenders.

       

      RECITALS:

       

      WHEREAS,
the Guarantor indirectly owns a limited partnership interest in the
Borrower;

       

      WHEREAS,
pursuant to the Credit Agreement dated December 8, 2009, by and among the
Borrower, the Lenders party thereto and the Agent (the “Credit Agreement”) and
the other Loan Documents (as defined in the Credit Agreement), the Lenders have
agreed to provide to Borrower a revolving credit facility in an aggregate amount
of $3,695,000,000 (the “Loans”);

       

      WHEREAS,
the Lenders have made certain Loans to the Borrower , a portion of which will be
drawn down for the purpose described in Section 15.28 of the Credit Agreement
(the “Section 15.28 Loan”) which draw down shall be accompanied by the delivery
of one or more Guarantees as defined and described in said Section 15.28;
and

       

      WHEREAS,
the Guarantor will directly benefit from the Section 15.28 Loan being made to
the Borrower;

       

      NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Guarantor hereby agrees as
follows:

       

      1.           Guaranty.  Subject
to the terms and conditions set forth in this Agreement, the Guarantor hereby
irrevocably, unconditionally, absolutely and directly agrees to pay to the Agent
(for the benefit of the Lenders) the principal amount of the Section 15.28 Loan
(which, for the avoidance of doubt, shall include any Loans to Borrower in
respect of amounts to be distributed or deposited pursuant to Sections
2.3(e)(i), 2.5, and 2.6(b) of the Contribution Agreement dated as of December 8,
2009, and amended on May 13, 2010, June 28, 2010, and the date hereof, by and
among Borrower, Simon Property Group, Inc., a Delaware corporation, Marco
Capital Acquisition LLC, a Delaware limited liability company, Prime Outlets
Acquisition Company LLC, a Delaware limited liability company, and the
Contributors party thereto (the “Contribution Agreement”)), together with
interest thereon, in each case to the extent provided for in the Loan Documents,
(the “Guaranteed Obligations”); provided, however, that the Guarantor shall have
no obligation to make a payment hereunder with respect to any other costs, fees,
expenses, penalties, charges or similar items payable by the Borrower and any
other person or entity (a “Person”) that has guaranteed any payment under the
Loan Documents other than the Guarantor (collectively, the “Borrower Parties”)
in respect of the Section 15.28 Loan or under the Credit
Agreement.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      2.           Guaranty of Collection and
Not of Payment.  Notwithstanding any other provision of this
Agreement, this Agreement is a guaranty of collection and not of payment, and
the Guarantor shall not be obligated to make any payment hereunder until each of
the following is true: (a) Borrower shall have failed to make a payment due to
the Lenders in respect of such Guaranteed Obligations and the Section 15.28 Loan
shall have been accelerated, (b) the Lenders shall have exhausted all Lender
Remedies (as defined below), and (c) the Lenders shall have failed to collect
the full amount of the Guaranteed Obligations.  The term “Lender
Remedies” shall mean all rights and remedies at law and in equity that the Agent
or the Lenders may have against any Borrower Party, any collateral deposited in
the Letter of Credit Collateral Account (as such term is defined in the Credit
Agreement) (the “LC Collateral”) or any other Person that has provided credit
support in respect of the applicable Guaranteed Obligations, to collect, or
obtain payment of, the Guaranteed Obligations, including, without limitation,
foreclosure or similar proceedings, litigation and collection on all applicable
insurance policies, and termination of all commitments to advance additional
funds to the Borrower under the Loan Documents.  For the avoidance of
doubt, Lender Remedies shall not have been exhausted with respect to any LC
Collateral unless and until the value thereof has been included in Section
3(a)(y)(ii).

       

      3.           Cap.  Notwithstanding
any other term or condition of this Agreement it is agreed that Guarantor’s
maximum liability under this Agreement shall not exceed the sum of (a) the
difference between (x) the sum of $138,010,000.00 plus any amounts to be
received directly or indirectly by the Guarantor pursuant to Sections 2.3(e)(i)
and 2.6(b) of the Contribution Agreement, minus (y) the sum of (i) any payments
of principal made by or on behalf of Borrower or any other Borrower Party to the
Lenders (or any one of them) in respect of the Section 15.28 Loan following an
Event of Default under the Credit Agreement, plus (ii) any amount of cash
proceeds collected or otherwise realized (including by way of set off) by or on
behalf of any Lender, pursuant to, or in connection with, the Section 15.28
Loan, including, but not limited to, any cash proceeds collected or realized
from the exercise of any Lender Remedies (but excluding any cash payments of
principal (to the extent such payment is already included in clause (i) above),
premium or interest (it being understood that the paid premium or interest shall
not be deemed to be unpaid for purposes of clause (b) below) received from the
Borrower and any amount received as a reimbursement of expenses, indemnification
payment or fees), plus (iii) the amount of principal or accrued and unpaid
interest or accrued and unpaid premium otherwise owing by the Borrower Parties
which is affirmatively discharged, forgiven or otherwise compromised by the
Agent or the Lenders, plus (b) any unpaid premium on, or unpaid interest
accruing under the Loan Documents on, the amount described in clause (a)(x)
above.  For purposes of this Agreement, the Section 15.28 Loan will be
deemed to be outstanding and not repaid until all other Loans under the Credit
Agreement have been repaid and not reborrowed.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      4.           Notice.  As
a condition to the enforcement of this Agreement, the Guarantor shall have
received written notice of any failure by Borrower to pay any Guaranteed
Obligations to the Lenders.  Except for the notice required under the
preceding sentence, the Guarantor hereby waives notice of acceptance of this
Agreement, demand of payment, presentment of this or any instrument, notice of
dishonor, protest and notice of protest, or other action taken in reliance
hereon and all other demands and notices of any description in connection with
this Agreement.  Subject to the last sentence of Section 2, the
Guarantor further waives and forgoes all defenses which may be available by
virtue of any valuation, moratorium law or other similar law now or hereafter in
effect, any right to require the marshalling of assets, and all suretyship
defenses generally.

       

      5.           Absolute
Obligation.  Subject to the provisions of Sections 1, 2, 3 and
4, the obligations of the Guarantor hereunder shall be absolute and
unconditional and shall not be subject to any reduction, limitation, impairment
or termination for any reason, including, without limitation, any claim of
waiver, release, surrender, alteration or compromise, and shall not be subject
to any setoff, counterclaim, deduction, diminution, abatement, suspension,
reduction, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Guaranteed Obligations.  Without
limiting the generality of the foregoing, subject to the provisions of Sections
1, 2, 3 and 4, the obligations of the Guarantor hereunder shall not be released,
discharged, impaired or otherwise affected by any circumstance or condition
whatsoever (whether or not the Borrower, any other Borrower Party, the
Guarantor, the Agent or any Lender has knowledge thereof) which may or might in
any manner or to any extent vary the risk of the Guarantor or otherwise operate
as a release or discharge of the Guarantor as a matter of law or equity (other
than the indefeasible payment in full of all of the Guaranteed Obligations),
including, without limitation:

       

      (a)           any
amendment, modification, addition, deletion or supplement to or other change to
any of the terms of the Loan Documents, or any assignment or transfer of any
thereof, or any furnishing, acceptance, surrender, substitution, modification or
release of any security for, or guaranty of, the Guaranteed
Obligations;

       

      (b)           any
failure, omission or delay on the part of the Borrower or any other Borrower
Party to comply with any term of any of the Loan Documents;

       

      (c)           any
waiver of the payment, performance or observance of any of the obligations,
conditions, covenants or agreements contained in the Loan Documents or any of
them or any delay on the part of the Agent or the Lenders to enforce, assert or
exercise any right, power or remedy conferred on the Agent or the Lenders in the
Loan Documents;

       

      (d)           any
extension of the time for payment of the principal of or premium (if any) or
interest on any of the Guaranteed Obligations, or of the time for performance of
any other obligations, covenants or agreements under or arising out of the Loan
Documents or any of them, or the extension or the renewal
thereof;

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (e)           to
the extent permitted by applicable law, any voluntary or involuntary bankruptcy,
insolvency, reorganization, moratorium, arrangement, adjustment, readjustment,
composition, assignment for the benefit of creditors, receivership,
conservatorship, custodianship, liquidation, marshaling of assets and
liabilities or similar proceedings with respect to the Borrower, any other
Borrower Party or the Guarantor or any other Person or any of their respective
properties or creditors, or any action taken by any trustee or receiver or by
any court in any such proceeding (including, without limitation, any automatic
stay incident to any such proceeding);

       

      (f)           any
limitation, invalidity, irregularity or unenforceability, in whole or in part,
limiting the liability or obligation of the Borrower or any other Borrower Party
or any security therefor or guarantee thereof or the Agent’s or the Lenders’
recourse to any such security or limiting the Agent’s or the Lenders’ right to a
deficiency judgment against the Borrower, any other Borrower Party, the
Guarantor or any other Person; and

       

      (g)           any
other act, omission, occurrence, circumstance, happening or event whatsoever,
whether similar or dissimilar to the foregoing, whether foreseen or unforeseen,
and any other circumstance which might otherwise constitute a legal or equitable
defense, release or discharge (including the release or discharge of the
liabilities of a guarantor or surety or which might otherwise limit recourse
against the Borrower, any other Borrower Party, the Guarantor or any other
Person, whether or not the Borrower, any other Borrower Party, the Guarantor,
the Agent or any Lender shall have notice or knowledge of the
foregoing).

       

      6.           Subrogation.  To
the extent that the Guarantor shall have made any payments under this Agreement,
the Guarantor shall be subrogated to, and shall acquire, all rights of the
Lenders against the Borrower Parties and the LC Collateral with respect to such
payments, including without limitation, (a) all rights of subrogation,
reimbursement, exoneration, contribution or indemnification, and (b) all rights
to participate in any claim or remedy of any Lender or any trustee on behalf of
any Lender against any Borrower Party or the LC Collateral, in each case,
whether or not such claim, remedy or right arises in equity or under contract,
statute or common law, including, without limitation, the right to take or
receive from the Borrower Parties, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account of
such claim, remedy or right; provided, however, that the Guarantor shall not
exercise any right of subrogation, contribution, indemnity or reimbursement or
any other rights it may have now or hereafter have, and any and all rights of
recourse to any Borrower Party or any of its assets with respect to any payment
it makes under this Agreement until (x) all of the Obligations (as defined in
the Credit Agreement) (other than contingent indemnification obligations not yet
asserted by the Person entitled thereto) shall have been indefeasibly paid,
performed or discharged in full in cash, and (y) no Person has any further right
to obtain any loans, advances or other extensions of credit under any of the
Loan Documents.  If any amount is paid to the Guarantor in violation
of the foregoing limitation, then such amount shall be held in trust for the
benefit of the Lenders and shall forthwith be paid to the Agent (for the benefit
of the Lenders) to reduce the amount of the Guaranteed Obligations, whether
matured or unmatured.  Notwithstanding any other provision of this
Agreement or applicable law, the Guarantor shall not have, with respect to any
payments made by the Guarantor under this Agreement, any right of subrogation,
contribution, indemnity, reimbursement or other right whatsoever, whether by
contract at law, in equity or otherwise, against, and shall have no recourse
whatsoever to, any Borrower Party other than the Borrower and its Subsidiaries;
provided, that, (x) nothing in this sentence shall provide the Guarantor with
greater rights or recourse with respect to the Borrower or its Subsidiaries than
the Guarantor would otherwise have under applicable law, and (y) all such rights
and recourse shall subject in all respects to the other provisions of this
Section 6.  For the avoidance of doubt, this Agreement shall not limit
the ability of the Guarantor or its subsidiaries to ask for, sue, demand,
receive and retain payments and other consideration from the Borrower or any
other Borrower Party in respect of obligations of such Persons to the Guarantor
and/or its subsidiaries which do not arise under this
Agreement.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      7.           Continuity of Guaranteed
Obligations; Bankruptcy or Insolvency.  If all or any part of
any payment applied to any Guaranteed Obligation is or must be recovered,
rescinded or returned to the Borrower, the Guarantor or any other Person (other
than the Lenders) for any reason whatsoever (including, without limitation,
bankruptcy or insolvency of any party), such Guaranteed Obligation shall be
deemed to have continued in existence and this Agreement shall continue in
effect as to such Guaranteed Obligation, all as though such payment had not been
made. For the avoidance of doubt, the bankruptcy, insolvency, or dissolution of,
or the commencement of any case or proceeding under any bankruptcy, insolvency,
or similar law in respect of, the Borrower or any other Borrower Party shall not
require the Guarantor to make any payment under this Agreement until all of the
conditions in Section 2 and Section 4 have been satisfied (including, without
limitation, the exhaustion of all Lender Remedies).

       

      8.           No
Waiver.  No delay or omission on the part of the Agent or any
Lender in exercising any rights hereunder shall operate as a waiver of such
rights or any other rights, and no waiver of any right on any one occasion shall
result in a waiver of such right on any future occasion or of any other rights;
nor shall any single or partial exercise of any right hereunder preclude any
other or further exercise thereof or the exercise of any other
right.

       

      9.           Representations and
Warranties.  The Guarantor represents and warrants that (a) it
is a limited partnership duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, (b) the execution,
delivery and performance by the Guarantor of this Agreement, and the
consummation of the transactions contemplated hereby, are within its powers and
have been duly authorized by all necessary action; (c) this Agreement has been
duly executed and delivered by the Guarantor, and constitutes the Guarantor’s
legal, valid and binding obligation enforceable in accordance with its terms;
(d) the making and performance of this Agreement does not and will not violate
the provisions of any applicable law, regulation or order applicable to or
binding on the Guarantor, and does not and will not result in the breach of, or
constitute a default or require any consent under, any material agreement,
instrument, or document to which the Guarantor is a party or by which the
Guarantor or any of its property may be bound or affected; (e) all consents,
approvals, licenses and authorizations of, and filings and registrations with,
any governmental authority or regulatory body or other third party for the
execution, delivery and performance of this Guarantee by the Guarantor have been
obtained or made and are in full force and effect; and (f) by virtue of the
Guarantor’s relationship with the Borrower, the execution, delivery and
performance of this Agreement is for the direct benefit of the Guarantor and the
Guarantor has received adequate consideration for this
Agreement.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      10.           Enforcement
Expenses.  The Guarantor hereby agrees to pay all out-of-pocket
costs and expenses of the Agent and each Lender in connection with the
enforcement of this Agreement (including, without limitation, the reasonable
fees and disbursements of counsel employed by the Agent or any of the Lenders);
provided that no payment shall be due and owing under this Section 10 during the
pendancy of any good faith dispute between the Guarantor and the Agent or the
Lenders regarding the enforcement of this Agreement against the Guarantor and
such payment shall be due only if (A) Guarantor agrees to make such payment or
(B) a court of competent jurisdiction has determined pursuant to a final
non-appealable order that this Agreement may be enforced against the
Guarantor.

       

      11.           Fraudulent
Conveyance.  Notwithstanding any provision of this Agreement to
the contrary, it is intended that this Agreement, the Guarantor’s guarantee of
the Guaranteed Obligations hereunder and any liens and security interests
securing the Guarantor’s obligations under this Agreement, not constitute a
Fraudulent Conveyance (as defined below).  Consequently, Guarantor
agrees that if this Agreement, the Guarantor’s guarantee of the Guaranteed
Obligations hereunder or any liens or security interests securing the
Guarantor’s obligations under this Agreement, would, but for the application of
this sentence, constitute a Fraudulent Conveyance, this Agreement, such
guarantee and each such lien and security interest shall be valid and
enforceable only to the maximum extent that would not cause this Agreement, such
guarantee or such lien or security interest to constitute a Fraudulent
Conveyance, and this Agreement shall automatically be deemed to have been
amended accordingly at all relevant times.  For purposes of this
Section 11, the term “Fraudulent Conveyance” means a fraudulent conveyance under
Section 548 of the Bankruptcy Code (as defined in the Credit Agreement) or a
fraudulent conveyance or fraudulent transfer under the provisions of any
applicable fraudulent conveyance or fraudulent transfer law or similar law of
any state, nation or other governmental unit, as in effect from time to
time.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      12.           Exculpation of
Lenders.  The Guarantor acknowledges and agrees, on behalf of
itself and each of its Affiliates, that none of J.P. Morgan Chase Bank, N.A.,
J.P. Morgan Securities Inc., Bank of America, N.A., Bank of America Securities
LLC or any of the other Lenders from time-to-time under the Credit Agreement, or
any of their respective Affiliates, successors or assigns, or any officer,
director, partner, trustee, equity holder, agent, employee, attorney,
attorney-in-fact, advisor or controlling Person of any of the foregoing
(collectively, the “Lender Parties”) shall have any duty (including any
fiduciary duty or any other express or implied duty), liability, obligation or
responsibility whatsoever to the Guarantor or any of its Affiliates arising
from, in connection with or relating to (i) the Loans and other extensions of
credit contemplated by the Credit Agreement and the other Loan Documents (the
“Debt Financing”), or (ii) any of the transactions contemplated by this
Agreement, the Credit Agreement or any of the other Loan Documents or any
agreement, instrument certificate or instrument referred to in the Loan
Documents, including, without limitation, any actual or alleged breach,
misrepresentation or failure to perform any of their respective duties or
obligations (including, but not limited to, any failure to fund or otherwise
extend credit) under any Loan Document or any agreement, certificate or
instrument related thereto (clauses (i) and (ii), collectively, the “Financing
Matters”).  No Lender Party shall be liable to the Guarantor or any of
its Affiliates for any action taken or not taken by such Lender Party in
connection with any of the Financing Matters; provided, that, for the avoidance
of doubt, the foregoing sentence shall not, in and of itself, operate as a
waiver of defenses by the Guarantor to enforcement of this Agreement. The
Guarantor hereby waives, releases and forever discharges each of the Lender
Parties from any and all actions, causes of action, suits, debts, losses, costs,
controversies, damages, liabilities, judgments, claims and demands whatsoever,
in law or equity or otherwise, whether known or unknown (collectively, “Claims”)
directly or indirectly arising out of or relating to any of the Financing
Matters, that the Guarantor or any of its Affiliates ever had, now has or
hereafter can, shall or may have against any of the Lender Parties, except to
the extent arising as a result of (x) a demand for payment hereunder prior to
the conditions in Section 2 and Section 4 being satisfied or (y) any act of
gross negligence or willful misconduct committed by such Person at any time
following the date hereof as determined by a court of competent jurisdiction
pursuant to a final non-appealable order.  Furthermore, the Guarantor
covenants not to sue any Lender Party in connection with or assert, and agrees
to cause its Affiliates not to sue any Lender Party in connection with or
assert, any Claims which they or any other party now or may hereafter have in
connection with any Financing Matter, except to the extent arising as a result
of (x) a demand for payment hereunder prior to the conditions in Section 2 and
Section 4 being satisfied or (y) any act of gross negligence or willful
misconduct committed by such Person at any time following the date hereof as
determined by a court of competent jurisdiction pursuant to a final
non-appealable order. Each of the Lender Parties shall be an intended third
party beneficiary of this Section 12 and may enforce the terms of this Section
12 as if such Lender Party were a direct party to this Agreement, and this
Section 12 may not be amended, supplemented, waived or otherwise modified
without the prior written consent of each of JPMorgan Chase Bank, N.A. and Bank
of America, N.A.

       

      13.           Miscellaneous.

       

      (a)           This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York applicable to agreements made and to be performed entirely in
New York.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      (b)           The
Guarantor hereby irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of any New York State court or federal
court of the United States of America sitting in New York City and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to this Agreement, or for recognition or enforcement of any judgment, and the
Agent hereby irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding shall be heard and determined exclusively in
any such New York State court or, to the extent permitted by law, in such
federal court.  The Guarantor agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any party (other than the
Guarantor) may otherwise have to bring any action or proceeding relating to this
Agreement in the courts of any jurisdiction.  The Guarantor
irrevocably and unconditionally waives, to the fullest extent it may legally and
effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this
Agreement in any New York State or federal court.  The Guarantor
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

       

      (c)           This
Agreement shall inure to the benefit of and be binding upon the Guarantor and
its successors and assigns and the Agent, the Lenders and their respective
successors and assigns.

       

      (d)           This
Agreement constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and
understandings, oral or written, between the parties related
thereto.

       

      (e)           Each
reference herein to the Guarantor shall be deemed to include the successors and
assigns of the Guarantor, all of whom shall be bound by the provisions of this
Agreement; provided, however, that the Guarantor shall not, without obtaining
the prior written consent of the Lenders (which consent may be withheld or
conditioned in the Lenders’ sole discretion), assign or transfer this Agreement
or the Guarantor’s obligations and liabilities under this Agreement, in whole or
in part, to any other Person (and any attempted assignment or transfer by
Guarantor without such prior written consent shall be null and void). Upon the
written request of the Lenders, the Guarantor shall assign this Agreement to any
Person who acquires all or substantially all of the assets of Guarantor;
provided, that the Lenders shall have no duty or obligation to make such
request. Each reference herein to the Lenders shall be deemed to include the
successors and assigns of the Lenders under the Credit Agreement; it being
understood that this Agreement shall not be for the benefit of, or be assigned
to, any refinancing or refunding source with respect to the Guaranteed
Obligations (it being acknowledged that an amendment, restatement, waiver or
other modification of the terms of the Credit Agreement or other Loan Documents
shall not constitute a refinancing or refunding for purposes of this provision)
without the prior written consent of the Guarantor, provided, that in no event
shall the foregoing prevent or restrict any Lender from making an assignment,
selling a participation in, pledging or granting a security interest in or
otherwise transferring all or any portion of its interests in the Loans (and its
corresponding interest in the guarantee provided for hereunder) under the
applicable provisions of Section 15.1 of the Credit Agreement (as in effect on
the date hereof, except to the extent the Guarantor consents to any subsequent
amendment or other modification to such provisions) or impair any Lender’s
rights under this Agreement as a result of any such assignment, participation,
pledge, security interest or transfer made in accordance with such
provisions.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (f)           This
Agreement is for the benefit only of the Agent and the Lenders, shall be
enforceable by them alone, is not intended to confer upon any third party any
rights or remedies hereunder, and shall not be construed as for the benefit of
any third party; provided, however, that (i) the Agent shall be permitted, in
its sole discretion, to pay or to direct the Guarantor to pay any and all
amounts payable pursuant to this Agreement to any Lender or any third party, and
(ii) each of the Lender Parties may enforce the provisions of Section 12 of this
Agreement.

       

      (g)           EACH
PARTY HERETO, FOR ITSELF AND ITS AFFILIATES, HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THE ACTIONS OF THE PARTIES HERETO OR
THEIR RESPECTIVE AFFILIATES PURSUANT TO THIS AGREEMENT IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF AND THEREOF. THE PARTIES AGREE
THAT ANY SUCH ACTION OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT
A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR
RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO
ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART,
TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION
HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

       

      14.           Miscellaneous.

       

      (a)           This
Agreement may not be modified or amended except by an instrument or instruments
in writing signed by each of the parties hereto and, with respect to any
amendment or modification of Section 11, each of JPMorgan Chase Bank, N.A. and
Bank of America, N.A.

       

      (b)           All
notices and other communications hereunder will be in writing and given by
certified or registered mail, return receipt requested, nationally recognized
overnight delivery service, such as Federal Express or facsimile (or like
transmission) with confirmation of transmission by the transmitting equipment or
personal delivery against receipt to the party to whim it is given, in each
case, at such party’s address or facsimile number set forth below or such other
address or facsimile number as such party may hereafter specify by notice to the
other parties hereto given in accordance herewith. Any such notice or other
communication shall be deemed to have been given as of the date so personally
delivered or transmitted by facsimile or like transmission (with confirmation of
receipt), on the next business day when sent by overnight delivery services or
five days after the date so mailed if by certified or registered
mail:

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      If to the
Guarantor:

       

      c/o The
Lightstone Group

      1985
Cedar Bridge Avenue

      Lakewood,
NJ  08701

      Attention:              Donna
Brandin

      Facsimile:              732-612-1444

      

      with a
copy to:

      

      Paul,
Weiss, Rifkind, Wharton & Garrison LLP

      1285
Avenue of the Americas

      New York,
New York  10019-6064

      Attention:              Jeffrey
D. Marell

       Jeffrey B. Samuels

      Facsimile:              212-757-3990

      

      If to the
Agent:

      

      JPMorgan
Chase Bank, N.A., as Agent

      383
Madison Avenue

      New York,
NY 10172

      Attn:  Marc
Costantino

      Telecopy:  212-622-8167

      

      (c)           If
any term or provision of this Agreement, or the application thereof to any
Person or circumstance, shall to any extent be held invalid or unenforceable in
any jurisdiction, then (i) as to such jurisdiction, the remainder of this
Agreement, or the application of such term or provision to Persons or
circumstances other than those as to which such term or provision is held
invalid or unenforceable in such jurisdiction, shall not be affected thereby,
(ii) the court making such determination shall have the power to reduce the
scope, duration, area or applicability of such provision, to delete specific
words or phrases, or to replace any invalid or unenforceable provision with a
provision that is valid and enforceable and comes closest to expressing the
intention of the invalid or unenforceable provision, and (iii) each remaining
term and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by applicable law. Any such invalidity or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

       

      (d)           This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement, and will become effective when one or
more counterparts have been signed by a party and delivered to the other
parties.  Copies of executed counterparts transmitted by telecopy,
telefax or other electronic transmission service shall be considered original
executed counterparts for purposes of this Section 14(d), provided that receipt
of copies of such counterparts is confirmed.

       

      [The next
page is the signature page]

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the Guarantor has executed this Agreement as of the date first
above written.

      

      
        
          
            
              	
                      By:

                    	
                      Lightstone
      Value Plus REIT, L.P.

                    
	
                      By:

                    	
                      Lightstone
      Value Plus Real Estate Investment

                    
	 
      	
                      Trust,
      Inc., its General Partner

                    
	 
      	 
      
	
                      By:

                    	 
      
	 
      	
                      Name:

                    
	 
      	
                      Title:

                    

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        	
                                ACCEPTED
      AND AGREED TO:

                              
	 
      	 
      
	
                                JPMORGAN
      CHASE BANK, N.A., as Agent

                              
	 
      	 
      
	
                                By:

                              	 
      
	
                                Name:

                              
	
                                Title:

                              

                      

                    

                  

                

              

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      EXECUTION
COPY

      

      CAPITAL CONTRIBUTION
COMMITMENT AGREEMENT

       

      THIS
CAPITAL CONTRIBUTION COMMITMENT AGREEMENT (“Agreement”) is made
as of the 30th day of August 2010, by and among Lightstone Value Plus REIT,
L.P.(the “Committed
Party”), Pro-DFJV Holdings LLC, a Delaware limited liability company
(“Pro-DFJV”),
Marco LP Units, LLC, a Delaware limited liability company, its successors and
assigns, having an address at 225 West Washington Street, Indianapolis, Indiana
46204 (“New
Company”), and Simon Property Group, L.P., a Delaware limited
partnership, its successors and assigns, having an address at 225 West
Washington Street, Indianapolis, Indiana 46204 (“SPGLP”).

       

      WITNESSETH:

       

      WHEREAS,
the Committed Party is an indirect owner of an interest in SPGLP;
and

       

      WHEREAS,
SPGLP has obtained, or may in the future obtain, unsecured term indebtedness
that is nonrecourse with respect to its limited partners and the REIT (as
defined below), excluding any revolving credit facility obtained by SPGLP from
time-to-time (each a “Loan” and
collectively, the “Loans”) from one or
more financial institutions (each a “Lender” and
collectively, the “Lenders”);
and

       

      WHEREAS,
Simon Property Group, Inc. (the “REIT”) is the sole
general partner of SPGLP; and

       

      WHEREAS,
the Loans are or will be evidenced by one or more promissory notes
(collectively, the “Notes”) and other
loan documents (collectively, the “Loan Documents”);
and

       

      WHEREAS,
the Committed Party has agreed to contribute capital to SPGLP (the “Committed
Contribution”) in an amount set forth herein (the amount of such
Committed Contribution, taken together with the maximum aggregate amount of all
other similar capital contribution commitments of direct and indirect owners of
SPGLP pursuant to agreements similar to this Agreement, the “Total Committed
Capital”), all on the terms and conditions hereafter set
forth;

       

      WHEREAS,
SPGLP would use the proceeds of the Committed Contribution to repay a portion of
one or more of the Loans, if necessary; and

       

      WHEREAS,
the Committed Party expects to derive benefits, directly or indirectly, from the
Loans.

       

      NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Committed Party hereby covenants and agree with SPGLP, Pro-DFJV, and New Company
as follows:

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      1.           Loan
Documents.  The Committed Party acknowledges that it is
familiar with (x) the Loans that are outstanding as of the date hereof and the
Loan Documents evidencing such Loans, (y) the Limited Liability Company
Operating Agreement of New Company (the “New Company
Agreement”), and (z) the Eighth Amended and Restated Limited Partnership
Agreement of SPGLP (the “SPGLP
Agreement”).  On request of the Committed Party, SPGLP will
provide to the Committed Party (i) copies of Loan Documents entered into,
modified, or amended after the date hereof and all documents relating thereto
or, at SPGLP’s option, a summary of all material provisions of the Loans and all
such documents, and (ii) information as to the Total Committed Capital and the
total amount of the Loans from time to time.  SPGLP shall promptly
notify the Committed Party when SPGLP obtains new Loans or repays, modifies, or
amends existing Loans.

       

      2.           Intentionally
Omitted.

       

      3.           Capital Contribution
Obligations.

       

      (a)          The
Committed Party hereby irrevocably and unconditionally agrees to contribute
capital to SPGLP (the “Committed
Contribution”) in an amount, up to a maximum amount set forth opposite
its name on Exhibit A hereto (the “Maximum Amount”),
equal to the Committed Party’s Proportionate Share of any Loan Recovery
Shortfall Amount (such amount, with respect to the Committed Party, being
adjusted as provided herein and, as so adjusted, being referred to herein as its
“Capital Contribution
Obligation”) at the time and manner as required hereunder.

       

      (b)          The
Committed Party shall be permitted to designate a new Maximum Amount at the
following times: (i) on or before December 31, 2010, (ii) upon the fourth
anniversary of the date hereof or, if later, the expiration of the Refinancing
Guaranties (as defined in the Tax Matters Agreement dated as of the date hereof,
by and among the parties hereto, the REIT, and Prime Outlets Acquisition Company
LLC, a Delaware limited liability company (the “LVP Tax Matters
Agreement”)) that are in effect on such anniversary and (iii) as of the
first repayment in full or in part of the CMBS Debt (as defined in the Tax
Matters Agreement), other than through regularly scheduled principal payments
that are made prior to maturity.  SPGLP shall provide the Committed
Party with written notice of any repayment described in clause (iii) of the
preceding sentence at least ninety (90) days prior to such
repayment.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (c)           For
the purposes of this Agreement, (x) the term “Proportionate Share”
shall mean the proportion that the Committed Party’s Committed Contributions
bears to Total Committed Capital, (y) “Loan Recovery Shortfall
Amount” shall mean the excess of (i)  Total Committed Capital
(up to a maximum of the aggregate amount due under the Loans at the time that
notice is given under Section 5 of this Agreement ), over (ii) all Remedy
Proceeds, and (z) the term “Remedy Proceeds”
shall mean the aggregate amount received by one or more Lenders with respect to
Loans that are declared in default by the Lender, after the date of the
declaration of default with respect to each such Loan, and/or realized by any
Lender in any exercise of its remedies, whether under the applicable Loan
Documents or otherwise in connection with any Loan that is declared in default
by the Lender, and shall include all additional amounts any Lender would be
entitled to receive if such Lender realized on all remedies available to it,
whether by agreement or under law.  For avoidance of doubt, (i) the
amount of the Committed Party’s Capital Contribution Obligation shall be
reduced, dollar-for-dollar, by the product of (a) the Committed Party’s
Proportionate Share and (b) all Remedy Proceeds and, for this purpose, all
Remedy Proceeds shall be applied, based on their Proportionate Shares, solely
against the Capital Contribution Obligations of the Committed Party and all
other similar capital contribution obligations of direct and indirect owners of
SPGLP pursuant to agreements similar to this Agreement until the aggregate
amount thereof has been reduced to zero and (ii) SPGLP shall exhaust all other
remedies available to it for the repayment of any Loan that is declared in
default by the Lender prior to enforcing the obligations of the Committed Party
under this Agreement.  Notwithstanding anything to the contrary in
this Agreement, if at any time the Total Committed Capital exceeds 30% of the
aggregate principal amount of the Loans, then the Committed Contribution of the
Committed Party shall be reduced dollar for dollar by the amount that is the
product of the Committed Party’s Proportionate Share and the dollar amount of
such excess.

       

      4.           Commitment
Absolute.  This Agreement is an absolute, unconditional,
present and continuing obligation of the Committed Party to make its Committed
Contribution.  No setoff, counterclaim, reduction or diminution of an
obligation, except as set forth in Section 3 of this Agreement, or any defense
of any kind or nature (other than (a) performance by the Committed Party of the
Capital Contribution Obligations, (b) payment in full of the unpaid principal
balance of the Loans or, if less, the Loan Recovery Shortfall Amount, (c)
existence of Remedy Proceeds equal to or greater than the Loan Recovery
Shortfall Amount or (d) violation by New Company or SPGLP of any of its
agreements or obligations under this Agreement, including, without limitation,
those set forth in Section 10(c) of this Agreement) which the Committed Party
has or may have with respect to a claim under this Agreement shall be available
hereunder to the Committed Party against New Company or SPGLP.

       

      5.           Time, Method And Place Of
Payment.  All payments of Committed Contributions by the
Committed Party under or by virtue of this Agreement shall be made to SPGLP in
lawful money of the United States of America and in immediately available funds
at  SPGLP’s offices specified in Section 16 of this Agreement, or at
such other place or places as SPGLP may hereafter designate in
writing.  Any payments hereunder to be made by the Committed Party
will be due and payable within ten (10) business days after notice from New
Company and SPGLP stating the amount of the Capital Contribution Obligations, as
determined in accordance with the provisions of Section 3 of this Agreement,
accompanied by support documentation adequate to substantiate the amount
due.

       

      6.           SPGLP Agreement And New Company
Agreement; U.S. Federal Income Tax Treatment.  For purposes of
the New Company Agreement and the SPGLP Agreement, and for U.S. federal income
tax purposes, (a) the Committed Party shall be deemed to have made a
contribution of capital to Pro-DFJV in an amount equal to the product of (1) its
Committed Contribution and (2) the quotient of (A) Pro-DFJV’s Allocable Share
(as defined in the LVP Tax Matters Agreement) over (B) the sum of the Allocable
Shares of the Committed Party and Pro-DFJV (the amount of such contribution, the
“Pro-DFJV Amount”), (b) Pro-DFJV shall be deemed to have contributed the
Pro-DFJV Amount to New Company, (c) the Committed Party shall be deemed to have
made a contribution of capital to New Company in an amount equal to the
Committed Contribution minus the Pro-DFJV Amount, and (d) New Company shall be
deemed to have immediately contributed the Committed Contribution to
SPGLP.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      7.           Waivers.  Except
as expressly provided herein to the contrary, the Committed Party hereby waives
notice of any liability to which this Agreement may apply, notice and proof of
reliance by New Company or SPGLP upon this Agreement, presentment and demand for
payment, notice of dishonor, protest and notice of protest of compliance with
the terms and provisions of any of the Loan Documents, or of non-performance or
non-observance thereof.

       

      8.           Committed Party’s Consent
Not Required.  Except
as otherwise provided herein, so far as the Committed Party is concerned, SPGLP
and the Lenders may agree at any time and from time to time, without the consent
of, or notice to, the Committed Party, and, without impairing or releasing any
of the Capital Contribution Obligations of the Committed Party, to:

       

      (a)           change
the manner, place or terms of, and/or change or extend the time of payment, or
modify, renew or alter, any of the Loan Documents, or any liability incurred
directly or indirectly in respect thereto, or waive any breach of, or any act,
omission or default under, the Loan Documents, or consent to any of the
foregoing, and this Agreement shall continue in full force and effect
notwithstanding any such changes, extensions, modifications, renewals or
alterations, and each reference in this Agreement to the Loan Documents shall
include such change, extension, modification, renewal or
alteration;

       

      (b)           settle
or compromise any claim pursuant to the Loan Documents, or any liability
incurred directly or indirectly in respect thereof (except for liabilities of
the Committed Party for Capital Commitments), or consent to any of the
foregoing; and

       

      (c)           apply
any sums by whomsoever paid or howsoever realized to whatever obligations of
SPGLP in respect of any Loan or the Loan Documents as are then outstanding, as
SPGLP and the Lenders may deem appropriate, regardless of what Capital
Contribution Obligations of the Committed Party then remain unsatisfied, the
order and method of such application to be in SPGLP's and the Lenders’
discretion; provided, however, that SPGLP shall not take any action described in
this Section 8, a principal purpose of which would be to cause the Committed
Party to become obligated to make payments of Committed Contributions to
SPGLP.

       

      9.           No Impairment or
Defense.  No invalidity, irregularity or unenforceability of
all or any part of the Capital Commitment Obligations or of any of the Loan
Documents (including, without limitation, by reason of any insolvency or
bankruptcy of SPGLP or other primary obligor or guarantor of any Loan or any
disaffirming of any such obligation by or on behalf of SPGLP or other primary
obligor or guarantor), nor any delay on the part of any Lender in exercising any
of its rights, powers or options under any of the Loan Documents or a partial or
single exercise thereof, shall, except as otherwise provided in this Agreement,
affect, impair or be a defense to this Agreement, and this Agreement shall be
construed as a continuing, absolute and unconditional commitment without regard
to the validity, regularity or enforceability of the Loan Documents or any other
instrument or document with respect thereto at any time or from time to time
held by Lenders.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      10.           Certain Covenants
of
SPGLP.  At all times that the Committed Party holds a direct or
indirect interest in SPGLP, SPGLP and New Company represent, covenant and agree
as follows with the Committed Party:

       

      (a)           In
the absence of the obligations undertaken by the Committed Party hereunder, each
of the Loans would be a “nonrecourse liability,” within the meaning of Treas.
Reg. Sec. 1.752-1(a)(2) as in effect on the date hereof, and New Company and
SPGLP shall take such action as may be necessary to cause such Loans to retain
(and shall refrain from taking any action that would cause such Loans to lose)
such status as long as the Committed Party has any Capital Contribution
Obligation hereunder, unless SPGLP has made the offer to the Committed Party
described in Section 10(c) below;

       

      (b)           Taking
into account the obligations under this Agreement, SPGLP and New Company shall
take such action as may be necessary to cause the Loans to be treated (and shall
refrain from taking any action that would cause such obligation to cease to be
treated), for federal income tax purposes, as a “recourse liability,” as such
term is used in Treas. Reg. Sec. 1.752-2 as in effect on the date hereof with
respect to the Committed Party (including through its interest in Pro-DFJV), to
the extent of the Committed Party’s Committed Capital;

       

      (c)           In
the event that (i) (A) SPGLP incurs additional indebtedness in excess of one
billion dollars in the aggregate that is senior to any of the Loans or (B) any
Loan is refinanced or repaid in accordance with its terms, and (ii) SPGLP offers
any limited partner that has entered into a similar capital contribution
agreement an opportunity to have the “economic risk of loss,” within the meaning
of Treas. Reg. Sec. 1.752-1 and 1.752-2, with respect to any indebtedness of
SPGLP which is senior to the Loans, SPGLP shall provide a similar and no less
favorable opportunity to the Committed Party to replace all or a portion of its
obligation under this Agreement.

       

      (d)           SPGLP
shall maintain Loans with a sufficient principal balance such that the Committed
Party would be required to make a Committed Contribution equal to its Maximum
Amount, as determined from time to time, in the event that the Lender receives
no Remedy Proceeds, taking into account the limitations on Committed
Contributions imposed by this Agreement and all similar capital contribution
commitments of direct and indirect owners of SPGLP pursuant to agreements
similar to this Agreement.

       

      11.           Amendments; Governing
Law.  This Agreement may not be waived, modified, cancelled,
terminated or amended except by an agreement in writing signed by SPGLP, New
Company, Pro-DFJV, and the Committed Party, so long as it has not ceased to be
the Committed Party pursuant to Section 15 of this Agreement.  The
respective rights and obligations of the Committed Party, Pro-DFJV, New Company,
and SPGLP shall be governed by and construed in accordance with the laws of the
State of Delaware.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      12.           Successors and
Assigns.  Subject to the remainder of this Section 12 and to
Section 15, below, this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and
assigns.  Except for the parties hereto and their respective
successors and assigns, no other person shall be entitled to the benefits of
this Agreement or to rely hereon and, in particular, the Lenders shall not be,
and shall not be deemed to be, a third party beneficiary of this
Agreement.  Upon the transfer of a portion or all of the Committed
Party’s indirect interest in SPGLP, the successors, assigns, distributees and/or
transferees of the Committed Party (the “Transferees”) may
assume or otherwise undertake the Capital Contribution Obligation of the
Committed Party, by entering into and delivering a substitute or replacement of
this Agreement which shall contain substantially the same terms and provisions
of this Agreement, in order to satisfy all or any portion of the obligations of
the Committed Party.  If one or more, but not all, of the Transferees
elect to assume or otherwise undertake the Capital Contribution Obligation of
the Committed Party, then all those making such election shall be severally
liable for the Committed Contribution, provided each such Transferee’s
proportionate share shall be either: (a) that percentage which results from
multiplying the Committed Party’s Committed Contribution by a fraction whose
numerator is one (1) and whose denominator is the aggregate number of
Transferees, or (b) such percentage as is agreed to by all of such
Transferees.  Any Transferee that does not elect to assume or
otherwise undertake the Capital Contribution Obligation of the Committed Party
shall have no liability for the Committed Party’s Capital Contribution
Obligation.

       

      13.           Actions and
Proceedings.  Any action or proceeding in connection with this
Agreement may be brought in a court of record of the State of domicile of the
party against whom the action or proceeding is brought or the United States
District Court for such State of domicile, the parties hereby consenting to the
jurisdiction thereof, and service of process may be made upon any party by
mailing a copy of the summons and complaint to such party, by registered or
certified mail, at its address to be used for the giving of notices under this
Agreement.  In an action or proceeding relating to this Agreement, the
parties mutually waive trial by jury.

       

      14.           Severability.  If
this Agreement would be held or determined to be void, invalid or unenforceable
by reason of the amount of the Committed Party’s liability under this Agreement,
then, notwithstanding any other provision of this Agreement to the contrary, the
maximum amount of the liability of the Committed Party under this Agreement
shall, without any further action by the Committed Party, Pro-DFJV, New Company,
SPGLP any other person, be automatically limited and reduced to an amount which
is valid and enforceable.

       

      15.           Termination Of Contribution
Obligation.  In the event that:

       

      (a)           the
Committed Party ceases to own a direct or indirect interest in
SPGLP;

       

      (b)           upon
request of the Committed Party, within six months of a substantial
reorganization of SPGLP or the REIT for business or tax purposes, which
reorganization results in a substantial increase in SPGLP debt; or

       

      (c)           upon
request of the Committed Party made at any time during the 60-day period
following each successive six-year anniversary of the date of this
Agreement,

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      then each
party’s obligations hereunder shall terminate and be of no further force or
effect and each shall execute such documents acknowledging the termination of
the such party’s obligations hereunder as the other parties may reasonably
request; except that, in the case of an event described in Section 15(a), (c) or
(d) above, if, in the reasonable judgment of SPGLP, there is a significant
possibility that within one year of such event the obligation of the Committed
Party hereunder would be called upon by SPGLP to satisfy the Loans, then the
Committed Party's obligations hereunder shall terminate and be of no further
force or effect only with respect to Capital Contribution Obligations arising
more than one year after the date of the event.

       

      16.           Notices.  All
notices or other communications hereunder to either party shall be in writing
and shall be sent by (a) overnight courier service or United States Express Mail
against receipt or (b) Certified Mail, Return Receipt Requested, postage
prepaid.  Notices shall be deemed given one (1) business day after
being sent if sent by overnight courier service or United States Express Mail or
three (3) business days after being sent if sent by Certified
Mail.  Notices to a party shall be sent to its or his address set
forth below or to such other address as shall be stated in a notice similarly
given:

       

      If to
SPGLP:

       

      Simon
Property Group, Inc

      225 West
Washington Street

      Indianapolis,
Indiana 46204

      Attention:              James
M. Barkley

      Facsimile:              317-685-7377

       

      With a
copy (which copy shall not constitute notice) to:

       

      Fried,
Frank, Harris, Shriver and Jacobson LLP

       

      One New
York Plaza

      New York,
New York 10004

      Tel:
212.859.8980

      Attention:              Peter
S. Golden

       Alan S. Kaden

      Facsimile:              212.859.4000

       

      If to New
Company:

       

      Marco LP
Units, LLC

      225 West
Washington Street

      Indianapolis,
Indiana 46204

       

      With a
copy (which copy shall not constitute notice) to:

       

      If to the Committed Party or
Pro-DFJV:

       

      c/o The
Lightstone Group

      1985
Cedar Bridge Avenue

      Lakewood,
NJ  08701

      Attention:              Donna
Brandin

      Facsimile:              732-612-1444

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      With a
copy (which copy shall not constitute notice) to:

       

      Paul,
Weiss, Rifkind, Wharton & Garrison LLP

      1285
Avenue of the Americas

      New York,
New York  10019-6064

      Attention:              Jeffrey
D. Marell

       Jeffrey B. Samuels

      Facsimile:              212-757-3990

      

      17.           Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be an
original and all of which shall constitute one and the same
instrument.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the Committed Party and Pro-DFJV have duly executed this
Agreement as of the day and year first above written.

       

      
        
          
            
              
                
                  
                    	
                            COMMITTED
      PARTY:

                          
	 
      	 
      
	
                            By:

                          	
                            Lightstone
      Value Plus REIT, L.P.

                          
	 
      	
                            By:
      Lightstone Value Plus Real Estate

                            Investment
      Trust, Inc., its General Partner

                          
	 
      	 
      
	
                            By:

                          	 
      
	
                            Name:

                          	 
      
	
                            Title:

                          	 
      

                  

                

              

            

          

        

      

      

      
        
          
            
              
                
                  
                    	
                            PRO-DFJV:

                          
	 
      	 
      
	
                            PRO-DFJV
      HOLDINGS LLC

                          
	 
      	 
      
	
                            By:

                          	 
      
	 
      	
                            Print
      Name:

                          
	 
      	
                            Duly
      Authorized

                          

                  

                

              

            

          

        

      

      

      Signature
Page to Capital Commitment

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, SPGLP and New Company have duly executed this Agreement as of
the day and year first above written.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    SPGLP:

                                  
	 
      	 
      
	
                                    SIMON
      PROPERTY GROUP, L.P., a Delaware

                                    limited
      partnership

                                  
	 
      	 
      
	
                                    By:

                                  	
                                    SIMON
      PROPERTY GROUP, INC., a

                                    Delaware
      corporation, its General Partner

                                  
	 
      	 
      
	
                                    By:

                                  	 
      
	 
      	
                                    Print
      Name:

                                  
	 
      	
                                    Duly
      Authorized

                                  
	 
      	 
      
	
                                    NEW
      COMPANY:

                                  
	 
      	 
      
	
                                    MARCO
      LP UNITS, LLC

                                  
	 
      	 
      
	
                                    By:

                                  	 
      
	 
      	
                                    Print
      Name:

                                  
	 
      	
                                    Duly
      Authorized

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      Signature
Page to Capital Commitment

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit A to Capital
Contribution Commitment Agreement

       

      
        
          
            
              
                
                  
                    	
                            Committed
      Party

                          	 	
                            Committed
      Contribution

                          	 
	 	 	 	 	 
	
                            Lightstone
      Value Plus REIT, L.P.

                          	 	$	100,000,000.00	 

                  

                

              

            

          

        

      

      
        
           

        

        
          A-1

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