Document:

Exhibit 10.1

Exhibit 10.1

Employment Agreement

Agreement made as of February 23, 2010, by and between Builders FirstSource, Inc., a
Delaware corporation (the “Company”), and M. Chad Crow (the “Executive”).

Whereas, the Company desires that Executive serve as the Senior Vice President and
Chief Financial Officer of the Company, and Executive desires to hold such positions under the
terms and conditions of this Agreement; and

Whereas, the Board of Directors of the Company (the “Company Board”) has approved and
authorized the Company to enter into this Agreement with Executive.

Now, therefore, in consideration of the mutual covenants and agreements set forth
herein, and intending to be legally bound hereby, the parties agree as follows:

1. Employment. The Company hereby employs Executive, and Executive hereby accepts
employment with the Company, upon the terms and subject to the conditions set forth herein.

2. Term.

(a) Subject to Section 2(b) hereof, the term of employment by the Company of Executive
pursuant to this Agreement (as the same may be extended, the “Term”) shall commence on February
23, 2010 (the “Effective Date”), and terminate on the first anniversary thereof.

(b) Commencing on the first anniversary of the Effective Date and on each subsequent
anniversary thereof, the Term shall automatically be extended for one (1) additional year unless,
not later than ninety days (90) prior to any such anniversary date, either party hereto shall have
notified the other party hereto in writing that such extension shall not take effect.

3. Position. During the Term, Executive shall serve as the Senior Vice President and
Chief Financial Officer of the Company, supervising the financial operations and affairs of the
Company and performing such other duties as the Company Board shall determine.

4. Duties. During the Term, Executive shall devote his full time and attention during
normal business hours to the business and affairs of the Company, except vacations in accordance
with the Company’s policies and for illness or incapacity, in accordance with Section 6 hereof.

5. Salary and Bonus.

(a) During the Term, the Company shall pay to Executive a base salary at the rate of $350,000
per year (the “Base Salary”), subject to adjustments pursuant to the terms of Section 5(b) hereof.

 

 

 

(b) On or prior to each anniversary hereof during the Term (assuming the Term of the Agreement
is extended pursuant to Section 2(b) hereof), the Company Board or the Compensation Committee of
the Company Board (the “Compensation Committee”) shall review the Base Salary and may, in its sole
discretion, increase the Base Salary based upon performance and merit. Executive’s Base Salary
shall not be decreased below the amount set forth in Section 5(a) hereof. The Base Salary shall be
payable to Executive in substantially equal installments in accordance with the Company’s normal
payroll practices, but in no event less often than semi-monthly.

(c) For each fiscal year during the Term hereof, Executive shall be eligible to receive an
annual cash bonus equal to the amount provided for in the Company’s Annual Cash Incentive Plan
(“Annual Incentive Plan”) (which generally provides for a target bonus percentage of 100% of
Executive’s Base Salary), which Annual Incentive Plan is approved by the Company Board or the
Compensation Committee thereof. Executive’s target bonus percentage under the Annual Incentive
Plan shall not be reduced below 100% of his Base Salary. Annual cash bonuses shall be paid in the
calendar year following the year to which the bonus relates, and not later than March 15 of such
year.

6. Vacation, Holidays and Sick Leave. During the Term, Executive shall be entitled to
paid vacation, paid holidays and sick leave in accordance with the Company’s standard policies for
its senior executive officers.

7. Business Expenses. During the Term, Executive shall be reimbursed for all
reasonable and necessary business expenses incurred by him in connection with his employment,
including, without limitation, expenses for travel and entertainment incurred in conducting or
promoting business for the Company upon timely submission by Executive of receipts and other
documentation as required by the Internal Revenue Code of 1986, as amended (the “Code”), and in
accordance with the Company’s normal expense reimbursement policies. With respect to Executive’s
rights under this Section 7, (i) the amount reimbursable in any one calendar year shall not affect
the amount reimbursable in any other calendar year, (ii) the reimbursement of an eligible business
expense must be made no later than December 31 of the year after the year in which the business
expense was incurred, and (iii) such rights shall not be subject to liquidation or exchange for
another benefit.

8. Health, Welfare and Related Benefits. During the Term, Executive and eligible
members of his family shall be eligible to participate fully in all (a) health and dental benefits
and insurance programs; (b) life and short- and long-term disability benefits and insurance
programs; and (c) defined contribution and equity compensation programs, all as available to senior
executive officers of the Company generally.

 

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9. Confidentiality, Non-Competition.

(a) Executive acknowledges that: (i) the Executive has, and his employment hereunder will
require that Executive continue to have, access to and knowledge of Confidential Information (as
hereinafter defined); (ii) the direct and indirect disclosure of any such Confidential Information
to existing or potential competitors of the Company or its subsidiaries would place the Company at
a competitive disadvantage and would do damage, monetary or
otherwise, to the Company’s businesses; and (iii) the engaging by Executive in any of the
activities prohibited by this Section 9 may constitute improper appropriation and/or use of such
Confidential Information. Executive expressly acknowledges that the Confidential Information
constitutes a protectable business interest of the Company. As used herein, the term “Confidential
Information” shall mean information of any kind, nature or description which is disclosed to or
otherwise known to the Executive as a direct or indirect consequence of his association with the
Company, which information is not generally known to the public or in the businesses in which such
entities are engaged or which information relates to specific investment opportunities within the
scope of their business which were considered by the Company during the Term; provided,
however, that “Confidential Information” shall not be deemed to include information which
(i) is or becomes generally available to the public other than as a result of a disclosure by the
Executive, (ii) becomes available to the Executive on a non-confidential basis from a source other
than the Company, provided that such source is not bound by any contractual, legal or fiduciary
obligation with respect to such information or (iii) was in the Executive’s possession prior to
being furnished by the Company.

(b) During the Term of this Agreement and for a period of one year after the termination of
Executive’s employment hereunder (upon expiration of the Term or otherwise), Executive shall not,
directly or indirectly, whether individually, as a director, stockholder, owner, manager, member,
partner, employee, consultant, principal or agent of any business, or in any other capacity, use
for his own account, utilize or make known, disclose, furnish or make available to any person, firm
or corporation any of the Confidential Information, other than to authorized officers, directors
and employees of the Company in the proper performance of the duties contemplated herein, or as
required by a court of competent jurisdiction or other administrative or legislative body;
provided that, prior to disclosing any of the Confidential Information to a court
or other administrative or legislative body, Executive shall promptly notify the Company so that
the Company may seek a protective order or other appropriate remedy. Executive agrees to return
all Confidential Information, including all photocopies, extracts and summaries thereof, and any
such information stored electronically on tapes, computer disks or in any other manner to the
Company at any time upon request by the Company and upon the termination of his employment for any
reason.

(c) During the Term of this Agreement and for a period of one year after termination of
Executive’s employment hereunder (upon expiration of the Term or otherwise), Executive shall not,
directly or indirectly, own any interest in, operate, join, control or participate as a partner,
member, director, manager, principal, officer, or agent of, enter into the employment of, act as a
consultant or advisor to, or perform any services for, any entity (in those geographic areas in
which the Company or any of its subsidiaries, as of the date of termination of the Executive’s
employment hereunder, have material operations) which entity is engaged in competition with the
Company or any of its subsidiaries. An entity shall be deemed to be engaged in competition with
the Company or its subsidiaries if it engages in a business which is the same as or substantially
similar to any business engaged in by the Company or such subsidiary during the Term.

 

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(d) During the Term of this Agreement and for a period of two years after termination of
Executive’s employment hereunder (upon expiration of the Term or otherwise), Executive shall not,
directly or indirectly, hire, solicit or recruit for hire any employee of the
Company or any of its subsidiaries or encourage any employee of the Company or any of its
subsidiaries to terminate his or her employment in order to obtain employment by any other person,
firm or corporation.

(e) Executive acknowledges that (A) in connection with rendering the services to be rendered
by Executive hereunder, Executive will have access to and knowledge of Confidential Information,
the disclosure of which would place the Company or its subsidiaries at a competitive disadvantage,
causing irreparable injury, and (B) the services to be rendered by Executive hereunder are of a
special and unique character, which gives this Agreement a peculiar value to the Company, the loss
of which may not be reasonably or adequately compensated for by damages in an action at law, and
that a material breach or threatened breach by Executive of any of the provisions contained in this
Section 9 will cause the Company irreparable injury. Executive, therefore, agrees that the Company
shall be entitled, in addition to any other right or remedy, to a temporary, preliminary and
permanent injunction, without the necessity of proving the inadequacy of monetary damages or the
posting of any bond or security, enjoining or restraining Executive from any such violation or
threatened violations.

(f) Executive further acknowledges and agrees that due to the uniqueness of his services and
confidential nature of the information he will possess, the covenants set forth herein are
reasonable and necessary for the protection of the business and goodwill of the Company; and it is
the intent of the parties hereto that if, in the opinion of any court of competent jurisdiction,
any provision set forth in this Section 9 is not reasonable in any respect, such court shall have
the right, power and authority to modify any and all such provisions in such a manner as to such
court shall appear not unreasonable and to enforce the remainder of this Section 9 as so modified.

10. Termination of Agreement. The employment by the Company of Executive pursuant to
this Agreement shall not be terminated prior to the end of the Term, except as set forth in this
Section 10.

(a) By Mutual Consent.

(i) The employment by the Company of Executive pursuant to this Agreement may
be terminated at any time by the mutual written agreement of the Company and
Executive.

(ii) In the event that (i) Executive’s employment is terminated by mutual
consent pursuant to this Section 10(a), and (ii) Executive and the Company determine
at that time that it is in their mutual best interest for Executive to continue to
be bound after his termination by the provisions of Section 9 of this Agreement for
the periods set forth therein, then the parties may enter into an agreement to that
effect, in exchange for which Executive would be entitled to the compensation
provided for in Section 10(e) hereof.

 

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(b) Death. The employment by the Company of Executive pursuant to this Agreement
shall be terminated upon the death of Executive, in which event Executive’s spouse or heirs shall
receive the following: (i) Executive’s Base Salary and benefits to be paid or
provided to Executive under this Agreement through the Date of Termination (“Accrued
Obligations”), payable no later than thirty (30) days after the Date of Termination, (ii)
continuation of Executive’s Base Salary for a period of one (1) year after the Date of Termination,
and (iii) continuation of the health benefits provided for pursuant to Section 8(a) hereof (“Health
Benefits”) and welfare benefits provided for pursuant to Section 8(b) hereof (“Welfare Benefits”)
for a period of one (1) year after the Date of Termination.

(c) Disability. The employment by the Company of Executive pursuant to this Agreement
may be terminated by written notice to Executive at the option of the Company in the event that as
a result of the Executive’s incapacity due to physical or mental illness (which physical or mental
illness shall be confirmed in writing by a physician or other medical expert acceptable to both
parties), the Executive is unable to perform his duties, services and responsibilities hereunder or
shall have been absent from his duties hereunder on a full-time basis for ninety (90) consecutive
days or for an aggregate of ninety (90) days or more in any six (6) month period, and within thirty
(30) days after notice is given by the Company (which notice may be delivered no earlier than
thirty days prior to the expiration of such ninety (90) consecutive days or six month period, as
the case may be), the Executive shall not have returned to the performance of his duties hereunder
on a full-time basis. In the event the employment by the Company of Executive is terminated
pursuant to this Section 10(c), Executive shall be entitled to receive the following: (i) the
Accrued Obligations, payable no later than thirty (30) days after the Date of Termination, (ii)
subject to Section 24 hereof, continuation of his Base Salary for a period of one (1) year after
the Date of Termination, (iii) continuation of Health Benefits for a period of one (1) year after
the Date of Termination, and (iv) subject to Section 24 hereof, continuation of Welfare Benefits
for a period of one (1) year after the Date of Termination; provided, however, that amounts payable
to Executive under this Section 10(c) shall be reduced by the proceeds of any short- and/or
long-term disability payments under the Company plans referred to in Section 8 hereof to which
Executive may be entitled during such period.

(d) By the Company for Cause. The employment of Executive pursuant to this Agreement
may be terminated by the Company by written notice to Executive (“Notice of Termination”) for Cause
(as hereafter defined). In the event the employment by the Company of Executive is terminated
pursuant to this Section 10(d), Executive shall be entitled to receive all Base Salary and benefits
to be paid or provided to Executive under this Agreement through the Date of Termination and no
more.

(e) By the Company Without Cause. The employment by the Company of Executive pursuant
to this Agreement may be terminated by the Company at any time without Cause by delivery of a
Notice of Termination to Executive. In the event the employment by the Company of Executive is
terminated pursuant to this Section 10(e), Executive shall be entitled to receive the following:
(i) the Accrued Obligations, payable no later than thirty (30) days after the Date of Termination,
(ii) subject to Section 24 hereof, continuation of his Base Salary for a period of one (1) year
after the Date of Termination, (iii) continuation of Health Benefits for a period of one (1) year
after the Date of Termination, (iv) subject to Section 24 hereof, continuation of Welfare Benefits
for a period of one (1) year after the Date of Termination, and (v) subject to Section 24 hereof,
an amount equal to his Average Bonus Compensation (as hereafter defined), payable in accordance
with Section 10(j).

 

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(f) By Executive. The employment of Executive by the Company pursuant to this
Agreement may be terminated by Executive by written notice to the Company of his resignation (a
“Notice of Resignation”) at any time. In the event the employment by the Company of Executive is
terminated pursuant to this Section 10(f), Executive shall be entitled to receive all Base Salary
and benefits to be paid or provided to Executive under this Agreement through the Date of
Termination and no more; provided, however, that if Executive terminates his employment due to (i)
a material adverse diminution of Executive’s job title or responsibilities from those currently in
effect; or (ii) a relocation of Executive’s principal place of employment more than 100 miles from
its current location without his consent, then Executive shall instead be entitled to the
compensation provided for in Section 10(e) hereof.

(g) Non-Renewal. In the event that at any time during the Term (as it may be
extended) the Company notifies Executive of its intent not to renew this Agreement pursuant to
Section 2(b) hereof, and Executive then delivers a Notice of Resignation to the Company within
ninety (90) days of receipt of such notice of non-renewal, Executive shall be entitled to receive
the following: (i) the Accrued Obligations, payable no later than thirty (30) days after the Date
of Termination, (ii) subject to Section 24 hereof, continuation of his Base Salary for a period of
one (1) year after the Date of Termination, (iii) continuation of Health Benefits for a period of
one (1) year after the Date of Termination, (iv) subject to Section 24 hereof, continuation of
Welfare Benefits for a period of one (1) year after the Date of Termination, and (iv) subject to
Section 24 hereof, an amount equal to his Average Bonus Compensation (as hereafter defined),
payable in accordance with Section 10(j).

(h) Previously Earned Bonus. Notwithstanding any other provision of this Section 10,
in the event that Executive’s employment pursuant to this Agreement is terminated at a time when
Executive shall have earned a bonus under the Annual Incentive Plan for performance during the
prior fiscal year which has not yet been paid, Executive shall be paid such bonus in addition to
the amounts otherwise provided for in this Section 10. Such bonus shall be paid in the fiscal year
following the fiscal year for which it is earned, and not later than March 15 of such year, in
accordance with the Company’s normal practices.

(i) Date of Termination. Executive’s Date of Termination shall be: (i) if the parties
hereto mutually agree to terminate this Agreement pursuant to Section 10(a) hereof, the date
designated by the parties in such agreement; (ii) if Executive’s employment by the Company is
terminated pursuant to Section 10(b), the date of Executive’s death; (iii) if Executive’s
employment by the Company is terminated pursuant to Section 10(c), the last day of the applicable
period referred to in Section 10(c) hereof; (iv) if Executive’s employment by the Company is
terminated pursuant to Section 10(d), the date on which a Notice of Termination is given; and (v)
if Executive’s employment by the Company is terminated pursuant to Sections 10(e), 10(f) or 10(g),
the date the Notice of Termination or Notice of Resignation, as the case may be, is given.

 

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(j) Payment of Post-Termination Compensation. After Executive’s Date of Termination,
all payments of Base Salary and Average Bonus Compensation to Executive pursuant to this Section 10
shall be paid in accordance with the Company’s normal payroll practices, but in no event less often
than semi-monthly. In the event of a breach by Executive of Section 9 of this Agreement during the
applicable period following his Date of Termination,
Executive agrees (i) that the Company shall have no further obligation to make any payments to
Executive under Section 10 of the Agreement and (ii) that any payments of Base Salary or Average
Bonus Compensation previously made to Executive after his Date of Termination shall be returned to
the Company.

(k) Continuation of Welfare Benefits. With respect to Executive’s rights to
continuation of Welfare Benefits provided for in Sections 10(b), (c), (e) and (g), (i) the benefits
provided in any one calendar year shall not affect the benefits provided in any other calendar
year, (ii) the reimbursement of an eligible expense must be made no later than December 31 of the
year after the year in which the business expense was incurred, and (iii) such rights shall not be
subject to liquidation or exchange for another benefit.

11. Representations.

(a) The Company represents and warrants that this Agreement has been authorized by all
necessary corporate action of the Company and is a valid and binding agreement of the Company
enforceable against the Company in accordance with its terms.

(b) Executive represents and warrants that he is not a party to any agreement or instrument
which would prevent him from entering into or performing his duties in any way under this Agreement
and that this Agreement is a valid and binding agreement of Executive enforceable against Executive
in accordance with its terms.

12. Successors. This Agreement is a personal contract and the rights and interests of
Executive hereunder may not be sold, transferred, assigned, pledged, encumbered, or hypothecated by
him, except as otherwise expressly permitted by the provisions of this Agreement. This Agreement
shall inure to the benefit of and be enforceable by Executive and his personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
If Executive should die while any amount would still be payable to him hereunder had Executive
continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to his devisee, legatee or other designee or, if there is no such
designee, to his estate.

13. Entire Agreement. This Agreement contains all the understandings between the
parties hereto pertaining to the matters referred to herein, and supersedes any other undertakings
and agreements (other than any stock option or restricted stock agreement between Executive and the
Company), whether oral or in writing, previously entered into by them with respect thereto.
Executive represents that, in executing this Agreement, he does not rely and has not relied upon
any representation or statement made by the Company not set forth herein with regard to the subject
matter or effect of this Agreement or otherwise.

14. Termination; Amendment or Modification; Waiver.

(a) This Agreement may be terminated at any time by mutual written consent of the Company and
Executive.

 

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(b) No provision of this Agreement may be amended or waived unless such amendment or waiver is
agreed to in writing, signed by Executive and by a duly authorized
officer of the Company. No waiver by any party hereto of any breach by another party hereto
of any condition or provision of this Agreement to be performed by such other party shall be deemed
a waiver of a similar or dissimilar condition or provision at the same time, any prior time or any
subsequent time.

15. Notices. All notices and other communications required or permitted to be given
hereunder shall be in writing and shall be (i) delivered by hand, (ii) delivered by a nationally
recognized commercial overnight delivery service, (iii) mailed postage prepaid by first class mail
or (iv) transmitted by facsimile transmitted to the party concerned at the address or telecopier
number set forth below:

To Executive at:

Builders FirstSource, Inc.

2001 Bryan Street, Suite 1600

Dallas, Texas 75201

Attention: M. Chad Crow

To the Company at:

Builders FirstSource, Inc.

2001 Bryan Street, Suite 1600

Dallas, Texas 75201

Attention: General Counsel

with copies to:

JLL Partners

450 Lexington Avenue

New York, New York 10017

Facsimile: (212) 286-8626

Attention: Ramsey Frank

Warburg Pincus LLC

450 Lexington Avenue, 32nd Floor

New York, New York 10017

Facsimile (212) 878-9100

Attention: Kevin Kruse

and

Skadden, Arps, Slate, Meagher & Flom LLP

One Rodney Square

P.O. Box 636

Wilmington, Delaware 19899

Facsimile: (302) 651-3001

Attention: Robert B. Pincus

 

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Such notices shall be effective: (i) in the case of hand deliveries when received; (ii) in the
case of an overnight delivery service, on the next business day after being placed in the
possession of such delivery service, with delivery charges prepaid; (iii) in the case of mail,
seven (7) days after deposit in the postal system, first class mail, postage prepaid; and (iv) in
the case of facsimile notices, when electronic confirmation of receipt is received by the sender.
Any party may change its address and telecopy number by written notice to the other given in
accordance with this Section 15; provided, however, that such change shall be
effective when received.

16. Severability. If any provision or clause of this Agreement or the application of
any such provision or clause to any party or circumstances shall be determined by any court of
competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this
Agreement or the application of such provision or clause to such person or circumstances other than
those to which it is so determined to be invalid and unenforceable, shall not be affected thereby,
and each provision or clause hereof shall be validated and shall be enforced to the fullest extent
permitted by law.

17. Survivorship. The respective rights and obligations of the parties hereunder
shall survive any termination of this Agreement to the extent necessary to the intended
preservation of such rights and obligations.

18. Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Delaware, without regard to its conflicts of law principles.

19. Headings. All descriptive headings of sections and paragraphs in this Agreement
are intended solely for convenience, and no provision of this Agreement is to be construed by
reference to the heading of any section or paragraph.

20. Withholding. All payments to Executive under this Agreement shall be reduced by
all applicable withholding required by federal, state or local law.

21. Specific Performance. Each party hereto acknowledges that money damages would be
both incalculable and an insufficient remedy for any breach of this Agreement by such party and
that any such breach would cause the other parties, irreparable harm. Accordingly, each party
hereto also agrees that, in the event of any breach or threatened breach of the provisions of this
Agreement by such party, the other parties shall be entitled to equitable relief without the
requirement of posting a bond or other security, including in the form of injunctions and orders
for specific performance, in addition to all other remedies available to such other parties at law
or in equity.

22. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.

 

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23. Definitions.

(a) “Cause” means the determination, in good faith, by the Company Board, after notice to
Executive that one or more of the following events has occurred: (i) any act of
gross negligence, fraud, willful misconduct or moral turpitude by Executive materially
injuring the interest, business or reputation of the Company, or any of its parents, subsidiaries
or affiliates; (ii) Executive’s conviction of any felony; (iii) violation by Executive of the
Company’s Drug Policy; (iv) any misappropriation or embezzlement of the property of the Company, or
any of its parents, subsidiaries or affiliates; or (v) any material breach by Executive of this
Agreement, including, without limitation, a material breach of Section 9 hereof, which breach, to
the extent it is capable of being cured, remains uncorrected for a period of thirty (30) days after
receipt by Executive of written notice from the Company setting forth such breach.

(b) “Average Bonus Compensation” shall mean an amount equal to the average of the
annual bonus amounts earned by Executive under the Company’s Annual Incentive Plan during the two
most recent fiscal years ended prior to Executive’s Date of Termination.

24. Code Section 409A.

(a) Notwithstanding anything in this Agreement to the contrary, to the extent that any amount
or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of
the Code would otherwise be payable or distributable hereunder by reason of the occurrence of
Executive’s separation from service, such amount or benefit will not be payable or distributable to
Executive by reason of such separation from service unless (i) the circumstances giving rise to
such separation from service meet any description or definition of “separation from service” in
Section 409A of the Code and applicable regulations (without giving effect to any elective
provisions that may be available under such definition), or (ii) the payment or distribution of
such amount or benefit would be exempt from the application of Section 409A of the Code by reason
of the short-term deferral exemption or otherwise. This provision does not prohibit the vesting of
any amount upon a separation from service, however defined. If this provision prevents the payment
or distribution of any amount or benefit, such payment or distribution shall be made on the date,
if any, on which an event occurs that constitutes a Section 409A-compliant “separation from
service.”

(b) Notwithstanding anything in this Agreement to the contrary, if any amount or benefit
specified herein as “subject to Section 24 hereof,” or any other amount or benefit that would
otherwise constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code
would otherwise be payable or distributable under this Agreement by reason of the Executive’s
separation from service during a period in which he is a Specified Employee (as defined below),
then, subject to any permissible acceleration of payment by the Company under Treas. Reg. Section
1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi)
(payment of employment taxes):

(i) if the payment or distribution is payable in a lump sum, Executive’s right to
receive payment or distribution of such non-exempt deferred compensation will be delayed
until the earlier of Executive’s death or the first day of the seventh month following
Executive’s separation from service (the “Delay Period”); and

 

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(ii) if the payment or distribution is payable over time, the amount of such
non-exempt deferred compensation that would otherwise be payable during the six-month
period immediately following Executive’s separation from service will be accumulated
and Executive’s right to receive payment or distribution of such accumulated amount will be
delayed until the earlier of Executive’s death or the end of the Delay Period, whereupon the
accumulated amount will be paid or distributed to Executive and the normal payment or
distribution schedule for any remaining payments or distributions will resume; and

(iii) to the extent that this Section 24(b) applies to the provision of Welfare
Benefits, Executive shall be entitled to pay the full cost of premiums to maintain the
Welfare Benefits during the Delay Period, and the Company shall pay to Executive an amount
equal to the amount of such premiums promptly following the end of the Delay Period.

For purposes of this Agreement, the term “Specified Employee” has the meaning given such term
in Code Section 409A and the final regulations thereunder.”

[Signature Page Follows]

 

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In witness whereof, the parties hereto have executed and delivered this Employment
Agreement as of the date first above written.

	 	 	 	 	 
	 	Builders FirstSource, Inc.

 	 
	 	By:  	/s/ Floyd Sherman
 	 
	 	 	Floyd Sherman 	 
	 	 	Chief Executive Officer 	 
	 
	 	Executive

 	 
	 	/s/ M. Chad Crow
 	 
	 	M. Chad Crow 	 

 

12exv10ws

Exhibit 10 (s)

ANNEX TO SECOND AMENDMENT TO THE SECOND

AMENDMENT AND RESTATEMENT OF AGREEMENT OF

LIMITED PARTNERSHIP OF THE TAUBMAN

REALTY GROUP LIMITED PARTNERSHIP

Designation, Distribution, Redemption, Exchange, and Consent Provisions

with Respect to the 9% Series C Cumulative Redeemable Preferred Equity

     THIS ANNEX (this “Annex”) TO THE SECOND AMENDMENT (the “Second Amendment”) TO
THE SECOND AMENDMENT AND RESTATEMENT OF AGREEMENT OF LIMITED PARTNERSHIP OF THE TAUBMAN REALTY
GROUP LIMITED PARTNERSHIP (as amended through the date hereof, the “Partnership
Agreement”), entered into effective September 3, 1999, serves as a further amendment to the
Partnership Agreement entered into pursuant to Section 4.1(c) of the Partnership Agreement, and is
made by, between, and among TAUBMAN CENTERS, INC., a Michigan corporation (“TCO”), TG
PARTNERS LIMITED PARTNERSHIP, a Delaware limited partnership (“TG”), and TAUB-CO
MANAGEMENT, INC., a Michigan corporation (“Taub-Co”), who, as the Appointing Persons,
pursuant to Section 13.11 of the Partnership Agreement, have the full power and authority to amend
the Partnership Agreement on behalf of all of the Partners of The Taubman Realty Group Limited
Partnership, a Delaware limited partnership (the “Partnership”), with respect to the
matters herein provided. (Capitalized terms used herein that are not herein defined, shall have
the meanings ascribed to them in the Partnership Agreement.)

     A. On September 3, 1999, TCO, TG, and Taub-Co entered into the Second Amendment to provide for
the contribution of preferred capital to the Partnership in exchange for a preferred equity
interest, and for certain other purposes.

     B. Pursuant to Section 4.1(c) of the Partnership Agreement and as authorized by Section 13.11
of the Partnership Agreement, the parties hereto wish to enter into this Annex to

 

provide for the
designation, distribution, redemption, exchange, and consent
provisions with respect to that certain series of Parity Preferred Equity herein designated as “9%
Series C Cumulative Redeemable Preferred Equity.”

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

(i) Designation: There is hereby established a series of Parity Preferred Equity designated “9%
Series C Cumulative Redeemable Preferred Equity” (the “Series C Preferred Equity”). The
Parity Preferred Rate with respect to the Series C Preferred Equity is hereby designated as nine
percent (9%) per annum. The Parity Preferred Return in respect of the Series C Preferred Equity is
hereinafter referred to as the “Series C Return.” The holder of the Series C Preferred
Equity is hereinafter referred to as the “Series C Preferred Partner.” The Parity
Preferred Equity Balance of the Series C Preferred Partner is hereinafter referred to as the
“Series C Preferred Equity Balance”. The Unpaid Parity Preferred Return of the Series C
Preferred Partner is hereinafter referred to as the “Unpaid Series C Preferred Return”.

(ii) Payment of Distributions/Allocations: The Series C Preferred Partner shall be entitled to
receive cumulative cash distributions equal to the Series C Preferred Return. Such distributions
shall accrue from the date of the contribution to the Partnership of the Series C Preferred Equity,
and shall be payable when, as and if determined by the Managing General Partner, on or before the
last Day of each March, June, September, and December of each Partnership Fiscal Year (a
“Distribution Date”) and on a priority basis as against all distributions other than those
required to be made under the Partnership Agreement and other than distributions required by any
series of Preferred Equity existing as of the date hereof or any other series of Parity Preferred
Equity. The amount of the distribution payable for any period shall be computed on the basis of a
360-Day year of twelve 30-Day months and for any period shorter than a full quarterly period for
which distributions are computed, the amount

2

 

of the distribution payable shall be computed on the
basis of the actual number of days elapsed in such a 30-Day month. If any date on which
distributions are to be made on the Series C Preferred Equity is not a
Business Day, then payment of the distribution to be made on such date shall be made on the next
succeeding Day that is a Business Day (and without any interest or other payment in respect of any
such delay) except that, if such Business Day is in the next succeeding Partnership Fiscal Year,
such payment shall be made on the immediately preceding Business Day, in each case with the same
force and effect as if made on such date. Notwithstanding the foregoing, no distribution shall be
made to the Series C Preferred Partner which would reduce its Adjusted Capital Account Balance
below zero. Distributions on the Series C Preferred Equity shall be made to the Series C Preferred
Partner of record on the fifteenth (15th) Day of the calendar month in which the
applicable Distribution Date falls or such other date established by the Managing General Partner
for determining the holders of record of the Series C Preferred Equity for such distribution (the
“Distribution Record Date”), which date shall not be more than thirty (30) Days nor less
than ten (10) Days prior to such Distribution Date. In the event of the issuance of Series C
Preferred Stock (as defined below), the Distribution Record Date for the Series C Preferred Equity
shall be the Dividend Record Date (as defined in the Restated Articles of Incorporation of TCO, as
amended) for the Series C Preferred Stock. Unpaid Series C Preferred Return will not compound.
The Series C Preferred Equity Balance distributed to the Series C Preferred Partner pursuant to
Section 11.1(a)(5) of the Partnership Agreement shall be computed after giving effect to a
“book-up” of all Partnership assets to their respective fair market values and allocations under
the Partnership Agreement of Profits and Losses resulting therefrom.

     In no event shall Profits for any Partnership Fiscal Year allocated to the Series C Preferred
Partner exceed nineteen and 95/100ths percent (19.95%) of the Profits of the Partnership for such
Partnership Fiscal Year (the “19.95% Profits Allocation Limit”), provided however, that the
19.95%

3

 

Profits Allocation Limit will not apply to TCO. Further, in applying Section 704(c) of the
Code with respect to the Series C Preferred Partner, the Partnership shall, consistent with the
requirements of the applicable Regulations, utilize a reasonable method of allocation, provided
that such method shall not have the effect of allocating to the Series C Preferred Partner a
greater amount of taxable income for any
Partnership Fiscal Year than the amount of Profits allocated to the Series C Preferred Partner for
such Partnership Fiscal Year.

	(iii)	 	Optional Redemption:

     (A) Partnership’s Redemption Right: The Series C Preferred Equity is not redeemable prior to
September 3, 2004. On or after September 3, 2004, the Partnership, at its option, upon not less
than thirty (30) nor more than sixty (60) Days’ written notice, may redeem the Series C Preferred
Equity, in whole or in part, at any time and from time to time, at a redemption price (the
“Redemption Price”), payable in cash equal in amount to the amount of contributed capital
plus Unpaid Series C Preferred Return, in each case, with respect to that portion of the Series C
Preferred Equity Balance being redeemed. Immediately prior to such redemption, the Capital
Accounts of the Partnership shall be adjusted to give effect to a “book-up” of all Partnership
assets to their respective fair market values and allocations under the Partnership Agreement of
Profits and Losses resulting therefrom. If less than all of the Series C Preferred Equity is
redeemed, the Capital Account of the holder of the Series C Preferred Equity shall, as a result of
the redemption, be reduced by only the portion of such Capital Account attributable to the interest
redeemed.

     (B) Limitations on Redemption:

          Unless the accrued Series C Return has been distributed in full for all quarterly distribution
periods terminating on or prior to the date of redemption, the Partnership may not redeem less than
the entire outstanding amount of the Series C Preferred
Equity. Further, the Redemption Price
(other than the portion thereof consisting of Unpaid Series C Preferred

4

 

Return) shall be payable
solely out of the sale proceeds of other “partnership interests” of the Partnership, or “capital
stock” of TCO. For purposes of the preceding sentence, the term “partnership interests” and
“capital stock” means any equity securities of the Partnership and/or TCO, respectively (including
“Units of Partnership Interests”, “preferred equity interests”, “common stock” and “preferred
stock”), shares, interest, participation, or other ownership interests (however designated)
and any rights (other than debt securities convertible into or exchangeable for equity
securities) or options to purchase any of the foregoing.

     (C) Procedure for Redemption: Notice of redemption shall be (i) faxed and (ii) mailed by the
Partnership, by certified mail, postage prepaid, not less than thirty (30) nor more than sixty (60)
Days prior to the Redemption Date (as defined below), addressed to the Series C Preferred Partner
at its address as it appears on the records of the Partnership. In addition to any information
required by law, each such notice shall state: (a) the redemption date (the “Redemption
Date”), (b) the Redemption Price, (c) the percentage of the Series C Preferred Equity to be
redeemed, and (d) the place where a Certificate of Withdrawal in the form of Exhibit 1 hereto, is
to be delivered in exchange for payment of the Redemption Price.

     If the Partnership gives a notice of redemption in respect of the Series C Preferred Equity or
any portion thereof (which notice shall be irrevocable) then, by 12:00 noon, New York City time, on
the Redemption Date, the Partnership shall deposit irrevocably in trust for the benefit of the
Series C Preferred Partner funds sufficient to pay the Redemption Price and shall give irrevocable
instructions and authority to pay such Redemption Price to the Series C Preferred Partner upon
delivery of a Certificate of Withdrawal at the place designated in the notice of redemption. If
any date fixed for redemption of the Series C Preferred Equity is not a Business Day, then payment
of the Redemption Price shall be made on the next succeeding Business Day (without any interest or
any payment in respect of any such delay) except that if such Business Day falls in the next
calendar year, such payment shall be made on the

5

 

immediately preceding Business Day, in each case
with the same force and effect as if made on the Redemption Date. If payment of the Redemption
Price is improperly withheld or refused and not paid by the Partnership, the Series C Return on the
portion of the Series C Preferred Equity to be redeemed shall continue to accrue from the
Redemption Date to the date of payment, in which case the actual payment date will be considered
the date fixed for redemption in the redemption notice for purposes of calculating the applicable
Redemption Price.

	(iv)	 	Exchange Rights:

     (A) Right to Exchange:

          (1) The Series C Preferred Equity shall be exchangeable in whole but not in part unless
expressly otherwise provided herein at any time on or after September 3, 2009 for Series C
Preferred Stock of TCO (the “Series C Preferred Stock”) at an exchange rate (the
"Exchange Rate”) of Seventy Five Dollars ($75) of Series C Preferred Equity Balance (as
computed after giving effect to a “book-up” of all Partnership assets to their respective fair
market values and allocations under the Partnership Agreement of Profits and Losses resulting
therefrom but in no event shall such Series C Preferred Equity Balance (as so computed) exceed an
amount equal to the capital contribution plus any Unpaid Series C Preferred Return) for one (1)
share of Series C Preferred Stock to be delivered by TCO, subject to adjustment as described below.
In the event of an exchange, the Unallocated Series C Preferred Return shall be reduced to zero.
At such time as TCO receives approval to amend its Restated Articles of Incorporation, as amended,
to increase the number of authorized shares of Preferred Stock (as defined therein), and further
amends such Restated Articles of Incorporation, as amended, by increasing the number of shares of
Series C Preferred Stock to Two Million (2,000,000) shares, which amendments TCO has undertaken to
use its commercially reasonable efforts to cause to

6

 

be made, the Exchange Rate will be reduced to
Thirty-Seven and 50/100 Dollars ($37.50). The terms of the Series C Preferred Stock shall be as
set forth on Schedule A attached hereto. Notwithstanding the foregoing, the Series C Preferred
Equity shall become exchangeable at any time, in whole but not in part unless expressly provided
otherwise herein, for Series C Preferred Stock if (x) at any time the accrued Series C Return shall
not have been distributed in full to the Series C Preferred Partner with respect to six (6) prior
quarterly distribution periods, whether or not consecutive, provided, however, a distribution of
the Series C Return shall be considered timely if made within two (2) Business Days after the
Distribution Date for the Series C Return if at the time of such late payment there shall not
be any prior quarterly distribution periods in respect of which the full amount of the accrued
Series C Return was not timely made or (y) upon receipt by the Series C Preferred Partner of (a)
notice from the Managing General Partner that the Partnership has taken the position that the
Partnership is, or upon the consummation of an identified event in the immediate future will be
taxable as a corporation and (b) an opinion rendered by independent counsel familiar with such
matters addressed to the Series C Preferred Partner that the Partnership is or likely is, or upon
the occurrence of an identified event in the immediate future will be or likely will be, taxable as
a corporation. The Series C Preferred Equity may be exchanged, in whole but not in part, for
Series C Preferred Stock if the Series C Preferred Partner concludes at any time that there exists
in the reasonable judgment of the Series C Preferred Partner an imminent and substantial risk that
the Series C Preferred Partner’s interest in the Partnership represents or will represent more than
nineteen and 95/100ths percent (19.95%) of the capital or profits of the Partnership determined in
accordance with Regulations Section 1.731-2(e)(4). In addition, if the Partnership sells in one
(1) or more taxable transactions two (2) or more properties on Schedule E to the Partnership
Agreement, and after giving effect to such sales or exchanges (and related tax distributions by the
Partnership) it is reasonably expected that the net income of the Partnership as computed on

7

 

the
basis of tax depreciation and not book depreciation will be below $33.75 million for the taxable
year of the sale or the next succeeding taxable year, then the Series C Preferred Equity shall be
exchangeable, in whole, but not in part, at the exchange rate set forth above. Further, the Series
C Preferred Equity shall be exchangeable, in whole but not in part at the exchange rate set forth
above, if the Series C Preferred Partner, in its reasonable judgment, determines that less than
ninety percent (90%) of the gross income of the Partnership for any taxable year will or will
likely constitute “qualifying income” within the meaning of Section 7704(d) of the Code.

          (2) Notwithstanding anything to the contrary set forth in Paragraph (iv)(A)(1) above, if an
Exchange Notice (as defined below) has been delivered to TCO, then
TCO may, at its option, within thirty (30) Business Days after receipt of the Exchange Notice,
purchase directly or elect to cause the Partnership to redeem, all or a portion of the outstanding
Series C Preferred Equity by redeeming or, as applicable, purchasing, the corresponding portion of
the Series C Preferred Equity Balance (in each case, as computed after giving effect to a “book-up”
of all Partnership assets to their respective fair market values and allocations under the
Partnership Agreement of Profits and Losses resulting therefrom) for cash in an amount equal to the
Series C Preferred Equity Balance or portion thereof being redeemed.

          (3) In the event an exchange of the Series C Preferred Equity would violate the provisions on
ownership limitation of TCO as set forth in the Restated Articles of Incorporation of TCO, as
amended, the Series C Preferred Partner shall be entitled to exchange, pursuant to the provisions
of Paragraph (iv)(A)(1) hereof, a percentage of the Series C Preferred Equity Balance that would
comply with the provisions on ownership limitation of TCO and any portion of the Series C Preferred
Equity Balance not so exchanged (the “Excess Preferred Equity”) shall be redeemed by the
Partnership for cash in an amount equal to the Series C Preferred Equity Balance allocable to the
Excess Preferred Equity, subject to any

8

 

restriction thereon contained in any debt instrument or
agreement of the Partnership and provided that such redemption would not adversely impact the
rating of any outstanding debt of the Partnership.

     (B) Procedure for Exchange and/or Redemption of Series C Preferred Equity:

          (1) Any exchange shall be exercised pursuant to a notice of exchange (the “Exchange
Notice”) delivered to TCO by the Series C Preferred Partner by (a) fax and (b) by certified
mail, postage prepaid. TCO may effect any exchange of the Series C Preferred Equity or exercise its
option to cause the Partnership to redeem any portion of the Series C Preferred Equity for cash
pursuant to Paragraph (iv)(A)(2) above or redeem Excess Preferred Equity pursuant to Paragraph
(iv)(A)(3) above by delivering to the Preferred Equity Partner, within thirty (30) Business Days
after receipt of the Exchange Notice, (a) if TCO elects to acquire any of the Series C Preferred
Equity then outstanding,
(1) a written notice stating (A) the date of the exchange, which may be the date of such
written notice or any other date which is not later than sixty (60) Days after the receipt of the
Exchange Notice, and (B) the place where the Certificate of Withdrawal is to be delivered and (2)
certificates representing the Series C Preferred Stock being issued in exchange for the Series C
Preferred Equity and corresponding Series C Preferred Equity Balance being exchanged, or (b) if TCO
elects to cause the Partnership to redeem all of the Series C Preferred Equity then outstanding in
exchange for cash or elects to cause the Partnership to redeem any Excess Preferred Equity for
cash, a written notice stating (1) the redemption date, which may be the date of such written
notice or any other date which is not later than sixty (60) Days after the receipt of the Exchange
Notice, (2) the redemption price, and (3) the place where the Certificate of Withdrawal is to be
delivered. The Series C Preferred Equity shall be deemed canceled simultaneously with the delivery
of the Certificate of Withdrawal (with respect to the Series C Preferred Equity Balance exchanged)
or simultaneously with the redemption date (with respect to Series C Preferred Equity Balance

9

 

redeemed). Notwithstanding anything to the contrary contained herein, any and all Series C
Preferred Equity to be exchanged for Series C Preferred Stock pursuant to this Paragraph (iv) shall
be so exchanged in a single transaction at one (1) time. As a condition to exchange, TCO may
require the Series C Preferred Partner to make such representations and warranties including,
without limitation, warranties as to ownership and absence of restrictions, liens, and encumbrances
and representations as may be reasonably necessary for TCO to establish that the issuance of Series
C Preferred Stock pursuant to the exchange shall not be required to be registered under the
Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws.
Any Series C Preferred Stock issued pursuant to this Paragraph (iv) shall be delivered as shares
which are duly authorized, validly issued, fully paid, and nonassessable, free of any pledge, lien,
encumbrance or restriction other than those provided in the Restated Articles of Incorporation, as
amended, the Restated By-Laws of TCO, the Securities Act, and relevant state securities or blue sky
laws. The certificates representing the Series C Preferred
Stock issued upon exchange of the Series C Preferred Equity shall contain the following
legend:

     THE AMENDED AND RESTATED ARTICLES OF INCORPORATION, AS THE SAME MAY BE AMENDED (THE
“ARTICLES”), IMPOSE CERTAIN RESTRICTIONS ON THE TRANSFER AND OWNERSHIP OF THE SHARES REPRESENTED BY
THIS CERTIFICATE BASED UPON THE PERCENTAGE OF THE OUTSTANDING SHARES OWNED BY THE SHAREHOLDER. AT
NO CHARGE, ANY SHAREHOLDER MAY RECEIVE A WRITTEN STATEMENT OF THE RESTRICTIONS ON TRANSFER AND
OWNERSHIP THAT ARE IMPOSED BY THE ARTICLES.

     THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED,
HYPOTHECATED, OR OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT), OR (B) IF THE

10

 

CORPORATION HAS BEEN
FURNISHED WITH A SATISFACTORY OPINION OF COUNSEL FOR THE HOLDER OF THE SHARES REPRESENTED HEREBY,
OR OTHER EVIDENCE SATISFACTORY TO THE CORPORATION, THAT SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION, OR OTHER DISPOSITION IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF THE ACT AND THE
RULES AND REGULATIONS THEREUNDER.

          (2) In the event of an exchange of the Series C Preferred Equity for Series C Preferred Stock,
fractional Series C Preferred Stock of TCO is not to be issued upon the exchange but, in lieu
thereof, TCO shall pay a cash adjustment based on the fair market value of the Series C Preferred
Stock on the Day prior to the exchange date as determined in good faith by the Board of Directors
of TCO.

          (3) Adjustment of Exchange Price. In the event that TCO shall be a party to any transaction
(including, without limitation, a merger, consolidation, statutory share exchange, tender offer for
all or substantially all of TCO’s capital stock, or sale of all or substantially all of TCO’s
assets), in each case as a result of which the Series C Preferred Stock will be converted into the
right to receive shares of capital stock, other securities or
other property (including cash or any combination thereof), the Series C Preferred Equity
Balance will thereafter be exchangeable into the kind and amount of shares of capital stock and
other securities and property receivable (including cash or any combination thereof) upon the
consummation of such transaction by a holder of that number of Series C Preferred Stock of TCO or
fraction thereof into which the Series C Preferred Equity Balance was exchangeable immediately
prior to such transaction. TCO may not become a party to any such transaction unless the terms
thereof are consistent with the foregoing.

(v) No Other Conversion Rights. Subject to TCO’s right to convert the Series C Preferred Equity
Balance to an Additional Interest pursuant to Section 8.1(c) of the Partnership

11

 

Agreement, the
Series C Preferred Partner shall not have any right to convert the Series C Preferred Equity
Balance or any portion thereof into any other securities of, or interest in, the Partnership.

(vi) No Sinking Fund: No sinking fund shall be required for the retirement or redemption of the
Series C Preferred Equity Balance.

(vii) Certain Voting Rights: The Series C Preferred Partner shall not have any voting rights or
rights to consent to any Partnership matter requiring the consent or approval of Partners, except
as set forth below.

     So long as any Series C Preferred Equity Balance remains outstanding, the Partnership shall
not, without the affirmative vote of Series C Preferred Partners holding at least two-thirds
(2/3rds) of the Series C Preferred Equity Balance at the time, (x) authorize or create, or increase
the authorized or issued amount of, any class or series of Partnership Interests ranking senior to
the Series C Preferred Equity with respect to payment of distributions or rights upon liquidation,
dissolution, or winding up (including, without limitation, any future issuances of Preferred
Equity), or reclassify any Partnership Interests of the Partnership into any such Partnership
Interest, or create, authorize or issue any obligations or security convertible into or
exchangeable for or evidencing the right to purchase any such Partnership Interests, (y)
consolidate, merge into or with, or convey, transfer or lease its assets substantially as an
entirety to, any corporation or other entity,
or amend or alter Sections 1.2, 1.3, 1.4, 5.1, 5.2(a)(i), 5.5, 5.7(a), 6.10, 8.1(a), 8.1(c), or
11.1(a)(5) of the Partnership Agreement or any other sections of the Partnership Agreement which
would affect such sections, or the rights or obligations of the Series C Preferred Partner under
the Partnership Agreement, or this Annex, whether by merger, consolidation, amendment or otherwise,
in each such case in a manner that would materially and adversely affect the rights of the Series C
Preferred Equity or the Series C Preferred Partner; provided, however, that with respect to the
occurrence of any event set forth

12

 

in clause (y) above, so long as (1) the Partnership is the
surviving entity and the Series C Preferred Equity remains outstanding with the terms thereof
unchanged, or (2) the resulting, surviving or transferee entity is a partnership, limited liability
company, or other pass-through entity organized under the laws of any state and substitutes for the
Series C Preferred Equity other interests in such entity having substantially the same terms and
rights as the Series C Preferred Equity, including with respect to distributions, redemptions,
transfers, voting rights, and rights upon liquidation, then the occurrence of any such event shall
not be deemed to materially and adversely affect such rights of the Series C Preferred Partner; and
provided further, that any increase or issuance in the amount of Partnership Interests or the
creation or issuance of any other class or series of Partnership Interests, in each case ranking
(a) junior to the Series C Preferred Equity with respect to payment of distributions or the
distribution of assets upon liquidation, or (b) on a parity to the Series C Preferred Equity with
respect to payment of distributions or the distribution of assets upon liquidation shall not be
deemed to materially and adversely affect such rights.

     Notwithstanding anything to the contrary contained herein or in the Partnership Agreement, in
determining what is a class or series ranking senior, or on parity to the Series C Preferred
Equity, the 19.95% Profits Allocation Limit shall be disregarded.

13

 

     IN WITNESS WHEREOF, the undersigned Appointing Persons, in accordance with Section 13.11 of
the Partnership Agreement, on behalf of all of the Partners have entered into this Annex as of the
date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	TAUBMAN CENTERS, INC., a Michigan	 	 
	 	 	corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Lisa A. Payne	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Its: 	 	Executive Vice President	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TG PARTNERS LIMITED PARTNERSHIP, a	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TG Michigan, Inc., a Michigan	 	 
	 	 	 	 	Corporation, Managing General	 	 
	 	 	 	 	Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert S Taubman	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Its: 
	 	President	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TAUB-CO MANAGEMENT, INC.,	 	 
	 	 	a Michigan corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Lisa A. Payne	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Its:	 	Executive Vice President	 	 
	 	 	 	 	 	 	 

14

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