Document:

Letter Agreement--Farallon Funds Lock-Up, dated February 12, 2007

 Exhibit 10.3 
 Farallon Capital Partners, L.P. 
 Farallon Capital Institutional Partners, L.P. 
 Farallon Capital Institutional Partners II, L.P. 
 Farallon Capital Institutional Partners III, L.P. 
 Tinicum Partners, L.P. 
 c/o Farallon Capital Management, L.L.C. 
 One Maritime Plaza, Suite 1325 
 San Francisco, CA 94111 
 February 12, 2007 
 The Mills Corporation 
 5425 Wisconsin Avenue 
 Chevy Chase, Maryland 20815 
 Re: Farallon Funds — Lock-Up Agreement 
 Ladies
and Gentlemen: 
 Reference is made to that certain Agreement and Plan of Merger, dated as of February 12, 2007 (as the same may be
amended from time to time, the “Merger Agreement”), by and among SPG-FCM Ventures, L.L.C., a Delaware limited liability company formed by the undersigned and Simon Property Group, L.P. (“Parent”), SPG-FCM
Acquisition, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Purchaser Sub”), SPG-FCM Acquisition, L.P., a Delaware limited partnership and wholly owned subsidiary of Purchaser Sub, The Mills Corporation, a
Delaware corporation (“Mills”), and The Mills Operating Partnership LP, a Delaware limited partnership and Mills’ operating partnership (“Mills LP”), which provides for, among other things, (i) the offer
by Parent (the “Tender Offer”) to purchase all of the Company Common Shares at the Offer Price and (ii) the subsequent merger of Purchaser Sub with and into Mills and Purchaser LP with and into Mills LP. Capitalized terms used
herein but not otherwise defined shall have the same meaning ascribed to such terms in the Merger Agreement. 
 In order to induce Mills and
Mills LP to enter into the Merger Agreement, each of the undersigned has agreed to enter into this letter agreement. 
 For good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned hereby severally and not jointly irrevocably agrees that, without the prior written consent of Mills, which shall not be unreasonably withheld, such
undersigned shall not offer for sale, sell, transfer, contract to sell, pledge or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the
future of) any Company Common Shares owned by such undersigned as of the date hereof for a period beginning from the date hereof until the earliest to occur of (x) the Acceptance Date and (y) the termination of the Merger Agreement;
provided, however, that nothing herein shall prohibit or restrict each of the 

 undersigned from (i) transferring Company Common Shares owned by the undersigned to funds managed by or affiliated
with Farallon Capital Management, L.L.C. so long as such transferees agree to be bound by the restrictions contained herein; (ii) transferring Company Common Shares owned by the undersigned to any transferee that agrees to tender such Company
Common Shares into the Tender Offer and be bound by the restrictions contained herein; or (iii) contributing Company Common Shares to Parent or Purchaser Sub prior to the Acceptance Date in furtherance of the transactions contemplated by the
Merger Agreement. 
 If Parent shall determine in accordance with Section 1.4 of the Merger Agreement to effect the transactions
contemplated by the Merger Agreement through the One-Step Merger, each of the undersigned hereby severally and not jointly irrevocably agrees that such undersigned shall vote all of the Company Common Shares owned by the undersigned to approve the
Merger Agreement and the transactions contemplated thereby, including the Merger. 
 Each undersigned hereby represents and warrants that
such undersigned has full power and authority to enter into this letter agreement. Any obligations of each undersigned shall be binding upon the successors and assigns of such undersigned. 
 This letter agreement shall be deemed to be made in and in all respects shall be interpreted, construed and governed by and in accordance with the laws
of the State of New York without regard to conflicts of law principles thereof. 
 This letter agreement may be executed in any number of
counterparts (including by facsimile), each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement. 
 [Remainder of page left intentionally blank] 

 Each undersigned understands that Mills and Mills LP are relying upon this letter agreement in connection
with execution and delivery of the Merger Agreement and proceeding toward consummation of the transactions contemplated thereby. 
  

					
	Very truly yours,
	
	FARALLON CAPITAL PARTNERS, L.P.
		
	By:	 	 Farallon Partners, L.L.C.,
 its general
partner

			
		 	By:	 	/s/ Richard B. Fried
		 		 	Richard B. Fried
		 		 	Managing Member
	
	 FARALLON CAPITAL INSTITUTIONAL
 PARTNERS,
L.P.

		
	By:	 	 Farallon Partners, L.L.C.,
 its general
partner

			
		 	By:	 	/s/ Richard B. Fried
		 		 	Richard B. Fried
		 		 	Managing Member
	
	 FARALLON CAPITAL INSTITUTIONAL
 PARTNERS II,
L.P.

		
	By:	 	 Farallon Partners, L.L.C.,
 its general
partner

			
		 	By:	 	/s/ Richard B. Fried
		 		 	Richard B. Fried
		 		 	Managing Member

 [Signature Page to Lock-Up Agreement] 

					
	 FARALLON CAPITAL INSTITUTIONAL
 PARTNERS III,
L.P.

		
	By:	 	 Farallon Partners, L.L.C.,
 its general
partner

			
		 	By:	 	/s/ Richard B. Fried
		 		 	Richard B. Fried
		 		 	Managing Member
	
	TINICUM PARTNERS, L.P.
		
	By:	 	 Farallon Partners, L.L.C.,
 its general
partner

			
		 	By:	 	/s/ Richard B. Fried
		 		 	Richard B. Fried
		 		 	Managing Member

  

			
	Accepted and Agreed,
	as of the date first written above
	
	THE MILLS CORPORATION
		
	By:	 	/s/ Mark S. Ordan
	Name:	 	Mark S. Ordan
	Title:	 	Chief Executive Officer and President

 [Signature Page to Lock-Up Agreement]Short Form Merger Option Agreement, dated February 12, 2007

 Exhibit 10.4 
 SHORT FORM MERGER OPTION AGREEMENT 
 This AGREEMENT, dated as of February 12, 2007 (this “Option Agreement”), among The Mills Corporation, a Delaware corporation (the “Company”), SPG-FCM Ventures, LLC, a Delaware
limited liability company (“Parent”), and SPG-FCM Acquisition, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Sub”). 
 WHEREAS, concurrently with the execution of this Option Agreement, the Company, The Mills Limited Partnership, a Delaware limited partnership, Parent,
Sub and SPG-FCM Acquisition, L.P., a Delaware limited partnership, are entering into an Agreement and Plan of Merger (as amended or modified from time to time in accordance with its terms, the “Merger Agreement”) providing for the
making of a tender offer (the “Offer”) to purchase all of the issued and outstanding shares of the Company’s Common Stock, par value $0.01 per share (the “Shares”), and, following the completion of the Offer,
the merger (the “Merger”) of Sub and the Company, in which each Share not purchased pursuant to the Offer (other than Shares owned by the Company, Parent or any of its wholly owned subsidiaries and Shares as to which appraisal
rights are asserted) or not otherwise acquired by Parent will be converted into the per share consideration paid pursuant to the Offer, in accordance with the terms of the Merger Agreement; and 
 WHEREAS, the Company desires to induce Parent and Sub to enter into the Merger Agreement and to facilitate the prompt completion of the Merger following
the purchase of Shares pursuant to the Offer. 
 NOW, THEREFORE, the parties hereto agree as follows: 
 1. Grant of Option. The Company hereby irrevocably grants to Parent and Sub (or any permitted assignee under Section 9 hereof) an option (the
“Option”) to purchase up to 43,114,769 newly issued Shares, or such lesser 

 number of Shares as may be authorized but not outstanding at the time of exercise of the Option (the “Optioned
Shares”) (it being understood and agreed that, for the avoidance of doubt, from and after the date hereof and prior to the earlier of (i) the exercise of the Option and (ii) the termination of the Merger Agreement in accordance
with its terms, the Company shall not, other than as contemplated by or in compliance with the provisions of the Merger Agreement (including the Company Disclosure Letter delivered in connection therewith), issue any Shares that are not currently
outstanding or transfer any Shares which are issued but not outstanding) for a consideration per share equal to the price per Share paid in the Offer, payable at the time of exercise in the form of (i) $0.01 in cash per Optioned Share and
(ii) a promissory note (a “Note”) of Parent in the principal amount of the price per Share paid in the Offer less $0.01, which Note shall (a) be due and payable 5 years from the date of its issue, (b) bear
interest, at the prime rate in effect from time to time of Citibank N.A., payable annually on each anniversary of the date of its issue, and (c) be prepayable at any time without penalty at Parent’s option. 
 2. Exercise of the Option. The Option may be exercised by either Parent or Sub (or any permitted assignee) at any time within six business days
after the later of (i) the first date of acceptance for payment by Parent of Shares pursuant to the Offer in accordance with the terms of the Merger Agreement and (ii) the expiration of any subsequent offer periods under the Offer;
provided that Parent or Sub may only exercise the Option if, and for a number of Shares so that, after the exercise of 
  

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 the Option, Parent or Sub shall own at least 90% of the outstanding Shares, after giving effect to the issuance of the
Optioned Shares and including any number of Shares held by Parent immediately prior to the exercise of the Option. In the event Parent, Sub or any permitted assignee wishes to exercise the Option, Parent, Sub or any permitted assignee shall give
written notice (the “Notice”) to the Company specifying the total number of Optioned Shares it will purchase pursuant to the exercise of the Option and a place and a time not less than one day from the date of the Notice for the
closing of such purchase. 
 3. Payment and Delivery of Certificates. At any closing hereunder: (i) Parent, Sub or a permitted
assignee will make payment to the Company of the aggregate price for the Shares so purchased by (a) check or wire transfer in the amount of the aggregate cash consideration to be paid for all such Shares and (b) a Note in the aggregate
principal amount of the consideration to be paid by Note for all such Shares; and (ii) the Company will deliver or cause to be delivered to Parent, Sub or the assignee a certificate or certificates representing the number of Shares so
purchased. Each of Parent, Sub and any assignee and the Company hereby represents to the other party that such person will not offer to sell, sell or otherwise dispose of, any Shares or Note, as the case may be, acquired by it pursuant to this
Option Agreement in violation of the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “1933 Act”). 
 4. Covenant. Each of Parent and Sub agrees to consummate the Merger as promptly as practicable following the closing of the purchase of Optioned Shares in accordance with Section 253 of the Delaware
General Corporation Law and the terms and conditions of the Merger Agreement. 
 5. Representations and Warranties of the Company. The
Company hereby represents and warrants to Parent and Sub that, except as set forth in Schedule I hereto: 
 5.1. The Company has all requisite
corporate power and authority to enter into and perform all of its obligations under this Option Agreement. The execution, delivery and performance of this Option Agreement and all of the transactions, contemplated hereby have been duly authorized
by all necessary corporate action on the part of the Company. This Option Agreement has been duly executed and delivered by the Company. 
  

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 5.2. The Company has taken all necessary corporate action to authorize and reserve for issuance the
Optioned Shares upon exercise of the Option. 
 5.3. The Shares to be issued upon due exercise, in whole or in part, of the Option, when paid
for as provided herein, will be duly authorized, validly issued, fully paid and non-assessable. 
 5.4. The execution and delivery of this
Option Agreement do not, and the performance of this Option Agreement will not, (i) conflict with any provision of the Company’s Certificate of Incorporation or By-Laws, or (ii) violate any law, rule or regulation, or any judgment,
decree or order of any court or governmental agency or instrumentality, to which the Company or any of its subsidiaries is subject, or (iii) conflict with, or result in a breach or violation of, or accelerate the performance required by, or
result in early termination under, or result in any loss of benefits under, the terms of any agreement, indenture, mortgage or other instrument to which the Company or any of its subsidiaries is a party or to which any of its or their property is
subject, or constitute a default thereunder or an event which, with the lapse of time or action by a third party, could result in a default thereunder or the creation of any lien, charge or encumbrance upon any of the assets or properties of the
Company or any of its 
  

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 subsidiaries, except if the effect of any of the foregoing contained in subsections (ii) or (iii) above, singly
or in the aggregate, would not have a material adverse effect on the business or financial condition of the Company and its subsidiaries, considered as a whole. 
 6. Representations and Warranties of Parent and Sub. Each of Parent and Sub hereby represents and warrants to the Company that (i) it has all requisite power and authority to enter into and perform all of
its obligations under this Option Agreement, (ii) all of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Parent and Sub and (iii) this Option Agreement has been duly executed and
delivered by Parent and Sub. 
 7. Adjustment Upon Changes in Capitalization. In the event of any change in the Shares by reason of
stock dividends, split-ups, recapitalizations, combinations, exchanges of shares or the like, the number of Optioned Shares and/or the purchase price per Optioned Share shall be adjusted appropriately. 
 8. Termination. This Option Agreement will terminate upon termination of the Merger Agreement. 
 9. Assignment. Without the prior written consent of the Company, the right to exercise the Option granted pursuant to this Option Agreement shall
not be assigned by Parent or Sub except to any direct or indirect wholly-owned subsidiary of Parent. Any attempted assignment in violation of this Section 9 shall be null and void. 
 10. Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given (and shall be deemed
to have been duly received if so given) delivered by the means and to the addresses specified in Section 8.2 of the Merger Agreement. 
  

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 11. Specific Performance. The Company agrees that damages would be an inadequate remedy for a
breach of the provisions of this Option Agreement and that Parent and Sub shall be entitled to specific performance of the terms hereof in addition to any other remedies at law or in equity. 
 12. Governing Law. This Option Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard
to the conflict of laws provisions thereof. 
 13. Counterparts. This Option Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. 
  

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 IN WITNESS WHEREOF, this Option Agreement has been executed by duly authorized officers of each of the
parties hereto all as of the date first above written. 
  

			
	THE MILLS CORPORATION
		
	By:	 	/s/ Mark S. Ordan
		 	 
	Name:	 	Mark S. Ordan
	Title:	 	Chief Executive Officer and President
	
	SPG-FCM VENTURES, LLC
		
	By:	 	/s/ Richard B. Fried
		 	 
	Name:	 	Richard B. Fried
	Title:	 	
	
	SPG-FCM ACQUISITION, INC.
		
	By:	 	/s/ Richard B. Fried
		 	 
	Name:	 	Richard B. Fried
	Title:	 	

 [Signature Page to Short Form Merger Option Agreement]

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