<SUBMISSION>
<ACCESSION-NUMBER>0001104659-09-011949
<TYPE>424B5
<PUBLIC-DOCUMENT-COUNT>3
<FILING-DATE>20090225
<DATE-OF-FILING-DATE-CHANGE>20090225
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>SIMON PROPERTY GROUP INC /DE/
<CIK>0001063761
<ASSIGNED-SIC>6798
<IRS-NUMBER>046268599
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B5
<ACT>33
<FILE-NUMBER>333-132513
<FILM-NUMBER>09632445
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>225 WEST WASHINGTON STREET
<CITY>INDIANAPOLIS
<STATE>IN
<ZIP>46204-3438
<PHONE>317-636-1600
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>225 WEST WASHINGTON STREET
<CITY>INDIANAPOLIS
<STATE>IN
<ZIP>46204-3438
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CORPORATE PROPERTY INVESTORS INC
<DATE-CHANGED>19980610
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>a09-6296_1424b5.htm
<DESCRIPTION>424B5
<TEXT>

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<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">As filed pursuant to Rule&nbsp;424(b)(5)</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Registration Statement No.&nbsp;333-132513</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PROSPECTUS
SUPPLEMENT<br>
(To Prospectus dated March&nbsp;17, 2006)</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CALCULATION OF REGISTRATION FEE</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="36%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:36.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Title&nbsp;of&nbsp;each&nbsp;class&nbsp;of&nbsp;securities&nbsp;to&nbsp;be&nbsp;registered&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Amount&nbsp;to&nbsp;be<br>
  registered</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Maximum&nbsp;<br>
  offering&nbsp;price&nbsp;<br>
  per&nbsp;share(1)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Maximum&nbsp;aggregate<br>
  offering&nbsp;price(1)&nbsp;</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Amount&nbsp;of&nbsp;<br>
  registration&nbsp;fee(1)&nbsp;</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:36.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-autospace:none;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:15.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" colspan="2" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:14.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:36.0%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-autospace:none;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common Stock,
  $0.0001 par value per share</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">500,000</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="10%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:10.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34.77</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="13%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:13.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17,385,000</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.88%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">684.00</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="269" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="90" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="81" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="104" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="8" style="border:none;"></td>
  <td width="96" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)&nbsp;Calculated
in accordance with Rule&nbsp;457(r)&nbsp;of the Securities Act. The price per
share is based on the average of the high and low sale prices reported on the
New York Stock Exchange for shares of the Registrant&#146;s common stock on February&nbsp;23,
2009.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PROSPECTUS SUPPLEMENT<a name="ProspectusSupplement_075241"></a></font></b></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(To
Prospectus dated March&nbsp;17, 2006)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">500,000 Shares</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman"><img border="0" width="225" height="49" src="g62961bci001.jpg"></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Simon Property Group,&nbsp;Inc.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Common Stock</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
prospectus supplement relates to resales of shares of common stock by the
selling stockholders named herein.&#160; We
will not receive any of the proceeds from the sale of the shares by the selling
stockholders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
selling stockholders, or their pledgees, donees, transferees or other
successors in interest, may offer the shares through public or private
transactions at prevailing market prices, at prices related to prevailing
market prices or at privately negotiated prices.&#160; Our common stock is traded on the
New&nbsp;York Stock Exchange under the symbol &#147;SPG.&#148; On February&nbsp;24, 2009,
the closing sale price as reported by the NYSE was $35.34&nbsp;per share.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You
should read carefully this prospectus supplement and accompanying prospectus before
you invest.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Investing
in our securities involves risk. &#160;See &#147;Risk
Factors&#148; beginning on page&nbsp;S-3.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-autospace:none;text-indent:.25in;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">The Securities and Exchange Commission and state
securities regulators have not approved or disapproved of these securities or
determined whether this prospectus is truthful or complete.&#160; Any representation to the contrary is a
criminal offense.</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The date of this prospectus supplement is February&nbsp;25,
2009</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TABLE OF
CONTENTS</font></b><a name="TableOfContents"></a></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="93%" valign="bottom" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="6%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:6.76%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Page</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-autospace:none;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ProspectusSupplement_075241" title="Click to goto ">Prospectus Supplement</a></font></u></b></p>
  </td>
  <td width="6%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#WhoWeAre_062824" title="Click to goto ">WHO WE ARE</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-2</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#UseOfProceeds_062825" title="Click to goto ">USE OF PROCEEDS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-2</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#RiskFactors_062831" title="Click to goto ">RISK FACTORS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-3</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#SellingStockholders_062831" title="Click to goto ">SELLING STOCKHOLDERS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-3</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#CertainFederalIncomeTaxConsiderat_062839" title="Click to goto ">CERTAIN
  FEDERAL INCOME TAX CONSIDERATIONS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-4</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#PlanOfDistribution_062851" title="Click to goto ">PLAN OF DISTRIBUTION</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-5</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-autospace:none;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Prospectus_062951" title="Click to goto ">Prospectus</a></font></u></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#AboutThisProspectus_063002" title="Click to goto ">ABOUT
  THIS PROSPECTUS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#WhereYouCanFindMoreInformation_063025" title="Click to goto ">WHERE YOU CAN FIND MORE INFORMATION</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#WhoWeAre_063032" title="Click to goto ">WHO WE ARE</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#UseOfProceeds_063042" title="Click to goto ">USE OF
  PROCEEDS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#RatioOfEarningsToFixedChargesAnd_063056" title="Click to goto ">RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK
  DIVIDENDS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#DescriptionOfSecuritiesBeingOffer_063107" title="Click to goto ">DESCRIPTION OF SECURITIES BEING OFFERED</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ImportantProvisionsOfOurGoverning_063217" title="Click to goto ">IMPORTANT PROVISIONS OF OUR GOVERNING DOCUMENTS AND
  DELAWARE LAW</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#RestrictionsOnOwnershipAndTransfe_063234" title="Click to goto ">RESTRICTIONS ON OWNERSHIP AND TRANSFER</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#FederalIncomeTaxConsiderations_063245" title="Click to goto ">FEDERAL INCOME TAX CONSIDERATIONS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#LegalMatters_063338" title="Click to goto ">LEGAL MATTERS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#Experts_063418" title="Click to goto ">EXPERTS</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#DisclosureOfCommissionPositionOnI_063430" title="Click to goto ">DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
  FOR SECURITIES ACT LIABILITIES</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#ForwardlookingStatementsMayproveI_063439" title="Click to goto ">FORWARD-LOOKING STATEMENTS MAY&nbsp;PROVE INACCURATE</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>
  </td>
 </tr>
 <tr>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.24%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#IncorporationOfInformationWeFileW_063449" title="Click to goto ">INCORPORATION OF INFORMATION WE FILE WITH THE SEC</a></font></p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">ABOUT THIS PROSPECTUS SUPPLEMENT</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">We provide information to you about our common stock in two separate
documents that offer varying levels of&#160;
detail:</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">The accompanying prospectus, which
provides general information, some of which may not apply to the offering of
our common stock; and</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">This prospectus supplement, which
provides a summary of the terms of the offering of our common stock.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Generally,
when we refer to this &#147;prospectus,&#148; we are referring to both documents combined.&#160; If information in this prospectus supplement
is inconsistent with the accompanying prospectus, you should rely on this
prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
have not authorized anyone to provide you with information different from that
contained or incorporated by reference in this prospectus supplement, the
accompanying prospectus and any other offering material.&#160; The selling stockholders are offering to
sell, and seeking offers to buy, our shares of common stock only in
jurisdictions where offers and sales are permitted.&#160; The information contained in this prospectus
supplement, the accompanying prospectus, any other offering material or the
documents incorporated by reference herein or therein is accurate only as of
their respective date, regardless of the time of delivery of this prospectus supplement,
the accompanying prospectus, any other offering material or of any sale of the
shares.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">WHO WE ARE</font></b><a name="WhoWeAre_062824"></a></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Simon
Property Group,&nbsp;Inc. owns, develops and manages retail real estate
properties, primarily regional malls, Premium Outlet</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">&#174;</font>&#160;centers, The Mills<font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">&#174;</font>&#160;and
community/lifestyle shopping centers. We have elected to be treated as a REIT
for United States federal income tax purposes. We own our properties and
conduct our business activities through our majority-owned subsidiary, Simon
Property Group, L.P., or the Operating Partnership.</p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
this prospectus supplement, &#147;we,&#148; &#147;us,&#148; &#147;our&#148; and &#147;Simon Property&#148; refer to
Simon Property Group,&nbsp;Inc. and the &#147;Operating Partnership&#148; refers to Simon
Property Group, L.P.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
core of our business originated with the shopping center businesses of Melvin
Simon, Herbert Simon, David Simon and other members and associates of the Simon
family. We have grown significantly by acquiring properties and merging with
other real estate companies, including our 1996 merger with DeBartolo Realty
Corporation, our 1998 combination with Corporate Property Investors,&nbsp;Inc.,
our 2004 acquisition of Chelsea Property Group,&nbsp;Inc. and our 2007
acquisition of a 50% interest in the joint venture that acquired The Mills
Corporation, or Mills.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in .1in .0001pt 0in;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of December&nbsp;31, 2008, we owned or
held an interest in 324&nbsp;income-producing properties in the United States,
which consisted of 164&nbsp;regional malls, 16 additional regional malls
acquired in the Mills acquisition, 40&nbsp;Premium Outlet centers, 74 community/lifestyle
centers, and 14 other shopping centers or outlet centers in 41 states and
Puerto Rico. In addition, we also own interests in four parcels of land in the
United States held for future development. Internationally as of December&nbsp;31,
2008, we have ownership interests in 52&nbsp;European shopping centers (France,
Italy and Poland); seven&nbsp;Premium Outlet centers in Japan; one Premium
Outlet center in Mexico; one Premium Outlet center in South Korea; and one
shopping center in China.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
predecessor was organized as a Massachusetts business trust in 1971 and
reorganized as a Delaware corporation on March&nbsp;10, 1998. Our principal
executive offices are located at 225 West Washington Street, Indianapolis,
Indiana 46204. Our telephone number is (317)&nbsp;636-1600. Our World Wide Web
site address is www.shopsimon.com. The information in our web site is not
incorporated by reference into this prospectus supplement or the accompanying
prospectus.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you
want to find more information about us and the Operating Partnership, please
see the sections entitled &#147;Where You Can Find More Information&#148; and &#147;Incorporation
of Information We File with the SEC&#148; in the accompanying prospectus.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">USE OF PROCEEDS</font></b><a name="UseOfProceeds_062825"></a></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
will not receive any proceeds from the sale of the shares by the selling
stockholders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
selling stockholders will pay any underwriting discounts and commissions and
expenses they incur for brokerage, accounting, tax or legal services or any
other expenses they incur in disposing of the shares.&#160; We will bear all other costs, fees and
expenses incurred in effecting the registration of the shares covered by this
prospectus.&#160; These may include, without
limitation, all registration and filing fees, NYSE listing fees, fees and
expenses of our counsel and accountants, and blue sky fees and expenses.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-2</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='S-2',FILE='C:\JMS\c900190\09-6296-1\task3384576\6296-1-bc.htm',USER='105533',CD='Feb 25 18:27 2009' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">RISK FACTORS</font></b><a name="RiskFactors_062831"></a></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:.25in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Your investment in our common stock involves certain risks.
In consultation with your own financial and legal advisers, you should carefully
consider, among other matters, the risk factors discussed in the accompanying
prospectus, our Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31,
2007, our Quarterly Report on Form&nbsp;10-Q for the quarter ended September&nbsp;</font></i><i><font style="font-style:italic;">30, 2008, and </font>any
subsequently filed periodic
reports (which are incorporated by reference into the accompanying prospectus)
before deciding whether an investment in our common stock is suitable for you.</i></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">SELLING STOCKHOLDERS</font></b><a name="SellingStockholders_062831"></a></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
shares of common stock covered by this prospectus supplement are being
registered pursuant to provisions of the Operating Partnership&#146;s agreement of
limited partnership or certain registration rights agreements by and among
Simon Property, the selling stockholders and other persons.&#160; The shares being registered for resale
represent shares of our common stock issued in exchange for an equal number of
units of limited partnership interest of the Operating Partnership.&#160; The shares of common stock were issued in
reliance upon the exemption from registration provided by Section&nbsp;4(2)&nbsp;of
the Securities Act of 1933, as amended, and accordingly, were subject to restrictions
on transfer at the time of issuance.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except
as otherwise indicated, the number of shares beneficially owned is determined under
rules&nbsp;promulgated by the SEC, and the information may not represent
beneficial ownership for any other purpose.&#160;
Except as indicated otherwise in the table below, each selling
stockholder has sole voting power and disposition power with respect to all
shares listed as owned by such selling stockholder.&#160; At February&nbsp;12, 2009, there were 231,311,288&nbsp;shares
of common stock outstanding.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We do
not know when or in what amounts the selling stockholders may offer shares for
sale.&#160; The selling stockholders may elect
not to sell any or all of the shares offered by this prospectus supplement.&#160; Because the selling stockholders may offer
all or some of the shares pursuant to this offering, and because there are
currently no agreements, arrangements or understandings with respect to the
sale of any of the shares that will be held by the selling stockholders after
completion of the offering, we cannot estimate the number of the shares that
will be held by the selling stockholders after completion of the offering.&#160; However, for purposes of this table, we have
assumed that, after completion of the offering, none of the shares covered by
the prospectus supplement will be held by the selling stockholders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">The following tables set forth, to our knowledge, certain information
about the selling stockholders as of February&nbsp;12, 2009.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;letter-spacing:0pt;">SHARES OF COMMON STOCK REGISTERED FOR RESALE</font></b></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="26%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:26.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Name&nbsp;of&nbsp;Selling&nbsp;Stockholder</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number&nbsp;of&nbsp;<br>
  Shares&nbsp;<br>
  Beneficially&nbsp;<br>
  Owned&nbsp;Prior&nbsp;<br>
  to&nbsp;Offering&nbsp;(1)</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Percentage&nbsp;of&nbsp;<br>
  Shares&nbsp;<br>
  Beneficially&nbsp;<br>
  Owned&nbsp;Prior&nbsp;<br>
  to&nbsp;Offering</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number&nbsp;of&nbsp;<br>
  Shares&nbsp;Offered&nbsp;<br>
  Hereby</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Number&nbsp;of&nbsp;<br>
  Shares&nbsp;<br>
  Beneficially&nbsp;<br>
  Owned&nbsp;After&nbsp;<br>
  Offering</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Percentage&nbsp;of&nbsp;<br>
  Shares&nbsp;<br>
  Beneficially&nbsp;<br>
  Owned&nbsp;After&nbsp;<br>
  Offering</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:26.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-autospace:none;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="26%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:26.5%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-autospace:none;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cynthia Simon
  Skjodt</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1,494,420</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">500,000</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">994,420</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .3in;text-autospace:none;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt .3in;text-autospace:none;text-indent:-.3in;"><hr size="1" width="25%" noshade color="black" align="left"></div>

<p style="letter-spacing:-.1pt;line-height:normal;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">*</font><font size="1" style="font-size:3.0pt;letter-spacing:0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;letter-spacing:0pt;">Less than
one percent (1%)</font></p>

<p style="letter-spacing:-.1pt;line-height:normal;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;line-height:normal;margin:0in 0in .0001pt .25in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">(1)</font><font size="1" style="font-size:3.0pt;letter-spacing:0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;letter-spacing:0pt;">Includes
units of limited partnership interest in the Operating Partnership which may be
exchanged for shares of common stock on a one-for-one basis or cash.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-3</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">CERTAIN FEDERAL
INCOME TAX CONSIDERATIONS</font></b><a name="CertainFederalIncomeTaxConsiderat_062839"></a></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
following summary of certain Federal income tax considerations regarding the
holding and disposition of our common stock is based on current law, is for
general information only and is not tax advice. This summary supplements the
discussion set forth under the heading &#147;Federal Income Taxation Considerations&#148;
in the accompanying prospectus. This discussion does not purport to deal with
all aspects of taxation that may be relevant to particular holders of our
common stock in light of their personal investment or tax circumstances.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Legislative or Other Actions
Affecting REITS</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rules&nbsp;dealing
with Federal income taxation are constantly under review by persons involved in
the legislative process and by the IRS and the U.S. Treasury Department. The
Housing and Economic Recovery Tax Act of 2008 (the &#147;2008 Act&#148;) was recently
enacted into law. The 2008 Act&#146;s sections that affect the REIT provisions of
the Code are generally effective for taxable years beginning after its date of
enactment, and for us will generally mean that the new provisions apply from
and after January&nbsp;1, 2009, except as otherwise indicated below.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Among
others, the 2008 Act made the following changes to, or clarifications of, the
REIT provisions of the Code that could be relevant for us:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Taxable REIT Subsidiaries.</u></b> The limit on
the value of taxable REIT subsidiaries&#146; securities held by a REIT has been
increased from 20 percent to 25 percent of the total value of such REIT&#146;s
assets. See &#147;Federal Income Tax Considerations&#151;Taxation of Simon Property&#151;Asset
Tests&#148; in the accompanying prospectus.</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Foreign Currency as Cash.</u></b> Foreign
currency that is the functional currency of a REIT or a qualified business unit
of a REIT and is held for use in the normal course of business of such REIT or
qualified business unit will be treated as cash for purposes of the 75% asset
test. The foreign currency must not be derived from dealing or engaging in
substantial and regular trading in securities. See &#147;Federal Income Tax
Considerations&#151;Taxation of Simon Property&#151;Asset Tests&#148; in the accompanying
prospectus.</p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Foreign Currency Gain.</u></b> Under the 2008
Act, with respect to transactions occurring after July&nbsp;30, 2008, real
estate foreign exchange gain is not treated as gross income for purposes of the
75% and 95% gross income tests. Real estate foreign exchange gain includes gain
derived from certain qualified business units of the REIT and foreign currency
gain attributable to (i)&nbsp;qualifying income under the 75% gross income
test, (ii)&nbsp;the acquisition or ownership of obligations secured by
mortgages on real property or interests in real property, or (iii)&nbsp;being
an obligor on an obligation secured by mortgages on real property or on
interests in real property. In addition, passive foreign exchange gain is not
treated as gross income for purposes of the 95% gross income test. Passive
foreign exchange gain includes real estate foreign exchange gain and foreign
currency gain attributable to (i)&nbsp;qualifying income under the 95% gross
income test, (ii)&nbsp;the acquisition or ownership of obligations, or (iii)&nbsp;being
the obligor on obligations and that, in the case of (ii)&nbsp;and (iii), does
not fall within the scope of the real estate foreign exchange definition.</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Expanded Prohibited Transactions Safe Harbor.</u></b>
The safe harbor from the prohibited transactions tax for certain sales of real
estate assets is expanded by reducing the required minimum holding period for
transactions occurring after July&nbsp;30, 2008, from four years to two years,
among other changes. See &#147;Federal Income Tax Considerations&#151;Taxation of Simon
Property&#151;Property Transfers&#148; in the accompanying prospectus.</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Hedging Income.</u></b> Income from a hedging
transaction entered into after July&nbsp;30, 2008 that complies with
identification procedures set out in Treasury regulations and hedges
indebtedness incurred or to be incurred by us to acquire or carry real estate
assets will not constitute gross income for purposes of both the 75% and 95%
gross income tests. See &#147;Federal Income Tax Considerations&#151;Taxation of Simon
Property&#151;Income Tests&#148; in the accompanying prospectus.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-4</font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Reclassification Authority.</u></b> The
Secretary of the Treasury is given broad authority to determine whether
particular items of gain or income recognized after July&nbsp;30, 2008 qualify
or not under the 75% and 95% gross income tests, or are to be excluded from the
measure of gross income for such purposes.</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">PLAN OF DISTRIBUTION</font></b><a name="PlanOfDistribution_062851"></a></h1>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
shares covered by this prospectus supplement may be offered and sold from time
to time by the selling stockholders.&#160; The
term &#147;selling stockholders&#148; includes pledgees, donees, transferees or other
successors in interest selling shares received after the date of this
prospectus supplement from one of the selling stockholders as a pledge, gift or
other non-sale related transfer.&#160; To the
extent required, this prospectus supplement may be amended and supplemented
from time to time to describe a specific plan of distribution.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">The selling stockholders will act independently of us in making decisions
with respect to the timing, manner and size of each sale.&#160; These sales may be made at a fixed price or
prices, which may be changed or at prices on the New York Stock Exchange and
under terms then prevailing or at prices related to the then current market
price.&#160; Sales may also be made in
negotiated transactions at negotiated prices, including pursuant to one or more
of the following methods:</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">purchases by a broker-dealer as
principal and resale by such broker-dealer for its own account pursuant to this
prospectus supplement,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">ordinary brokerage transactions and
transactions in which the broker solicits purchasers,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">an exchange distribution in
accordance with the rules&nbsp;of the New York Stock Exchange or other exchange
or trading system on which the shares are admitted for trading privileges,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">sales &#147;at the market&#148; to or through
a market maker or into an existing trading market, on an exchange or otherwise,
for the shares,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">sales in other ways not involving
market makers or established trading markets,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">through put or call transactions
relating to the shares,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">block trades in which the broker-dealer
will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction, and</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">in privately negotiated transactions.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">In connection with distributions of the shares or otherwise, the selling
stockholders may:</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the shares in the course of hedging the positions they assume,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">sell the shares short and redeliver
the shares to close out such short positions,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">enter into option or other
transactions with broker-dealers or other financial institutions which require
the delivery to them of shares offered by this prospectus, which they may in
turn resell,&nbsp;or</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">pledge shares to a broker-dealer or
other financial institution, which, upon a default, they may in turn resell.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
addition, any shares that qualify for sale pursuant to Rule&nbsp;144 may be
sold under Rule&nbsp;144 rather than pursuant to this prospectus supplement.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-5</font></p>

<div style="margin:0in 0in .0001pt;text-autospace:none;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
effecting sales, broker-dealers or agents engaged by the selling stockholders
may arrange for other broker-dealers to participate.&#160; Broker-dealers or agents may receive
commissions, discounts or concessions from the selling stockholders, in amounts
to be negotiated immediately prior to the sale.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
offering the shares covered by this prospectus supplement, the selling
stockholders, and any broker-dealers and any other participating broker-dealers
who execute sales for the selling stockholders may be deemed to be &#147;underwriters&#148;
within the meaning of the Securities Act in connection with these sales. &#160;Any profits realized by the selling
stockholders and the compensation of such broker-dealers may be deemed to be
underwriting discounts and commissions.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
order to comply with the securities laws of certain states, the shares must be
sold in those states only through registered or licensed brokers or dealers.&#160; In addition, in certain states the shares may
not be sold unless they have been registered or qualified for sale in the
applicable state or an exemption from the registration or qualification requirement
is available and is complied with.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
have advised the selling stockholders that the anti-manipulation rules&nbsp;of
Regulation&nbsp;M under the Exchange Act may apply to sales of shares in the
market and to the activities of the selling stockholders and their affiliates.&#160; In addition, we will make copies of this
prospectus supplement and accompanying prospectus available to the selling
stockholders for the purpose of satisfying the prospectus delivery requirements
of the Securities Act.&#160; The selling
stockholders may indemnify any broker-dealer that participates in transactions
involving the sale of the shares against certain liabilities, including
liabilities arising under the Securities&nbsp;Act.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">At the time a particular offer of shares is made, if required, a prospectus
supplement will be distributed that will set forth:</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">the number of shares being offered,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">the terms of the offering, including
the name of any underwriter, dealer or agent,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">the purchase price paid by any
underwriter,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">any discount, commission and other
underwriter compensation,</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">any discount, commission or
concession allowed or reallowed or paid to any dealer, and</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">the proposed selling price to the
public.</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
have agreed to indemnify the selling stockholders against certain liabilities,
including certain liabilities under the Securities Act.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">We have agreed with the selling stockholders to keep the Registration
Statement of which this prospectus constitutes a part effective until the
earlier of such time as:</font></p>

<p style="letter-spacing:-.1pt;margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;text-indent:.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">all of the shares covered by this
prospectus supplement have been disposed of pursuant to the Registration
Statement or</font></p>

<p style="color:black;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></p>

<p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:-.25in;"><font size="2" color="black" face="Symbol" style="color:windowtext;font-size:10.0pt;">&#183;</font><font size="1" color="black" style="color:windowtext;font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font color="black" style="color:windowtext;">we have delivered to the selling stockholders
an opinion of counsel to the effect that such shares may be sold pursuant to Rule&nbsp;144
without regard to any volume limitations.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">S-6</font></p>

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</div>
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<div>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-indent:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table
of Contents</a></font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROSPECTUS<a name="Prospectus_062951"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman"><img border="0" width="167" height="63" src="g62961bei001.gif" alt="GRAPHIC"></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIMON PROPERTY GROUP, INC.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common
Stock<br>
Preferred Stock<br>
Warrants<br>
Depository Shares</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus is part
of a registration statement that we filed with the Securities and Exchange
Commission under a &#147;shelf&#148; registration or continuous offering process. We may
sell any combination of the securities described in this prospectus in one or
more offerings. We may offer the securities separately or together, in separate
series or classes and in amounts, at prices and on terms described in one or
more supplements to this prospectus and other offering material.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus may also
be used to offer shares of common stock issued to limited partners of Simon
Property Group, L.P.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We or any selling
security holder may offer and sell these securities to or through one or more
underwriters, dealers and agents, or directly to purchasers, on a continuous or
delayed basis.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus
describes some of the general terms that may apply to these securities. The
specific terms of any securities to be offered, and any other information
relating to a specific offering, will be set forth in a post-effective
amendment to the registration statement of which this prospectus is a part, in
a supplement to this prospectus, in other offering material related to the
securities or may be set forth in one or more documents incorporated by
reference in this prospectus.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our common stock is
traded on the New&nbsp;York Stock Exchange under the symbol &#147;SPG.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You should read
carefully both this prospectus and any prospectus supplement or other offering
material before you invest. This prospectus may be used to offer and sell
securities only if accompanied by a prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE SECURITIES AND EXCHANGE
COMMISSION AND STATE SECURITIES REGULATORS HAVE NOT APPROVED OR DISAPPROVED OF
THESE SECURITIES OR DETERMINED WHETHER THIS PROSPECTUS IS TRUTHFUL OR COMPLETE.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><hr size="1" width="25%" noshade color="black" align="center"></div>

<p style="line-height:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">The date of this prospectus is March&nbsp;17, 2006</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ABOUT THIS PROSPECTUS<a name="AboutThisProspectus_063002"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus provides
you with a general description of the securities offered by us. Each time we
sell securities, we will provide a prospectus supplement that will contain
specific information about the terms of that offering. The prospectus
supplement and any other offering material may also add to, update or change
information contained in the prospectus or in documents we have incorporated by
reference into this prospectus and, accordingly, to the extent inconsistent,
information in or incorporated by reference in this prospectus is superseded by
the information in the prospectus supplement and any other offering material
related to such securities.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have not authorized
anyone to provide you with information different from that contained or
incorporated by reference in this prospectus. We are offering to sell, and
seeking offers to buy, our securities only in jurisdictions where offers and
sales are permitted. The information contained in this prospectus is accurate
only as of the date of this prospectus, regardless of the time of delivery of
this prospectus or of any sale of securities.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHERE YOU CAN FIND MORE INFORMATION<a name="WhereYouCanFindMoreInformation_063025"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We file reports, proxy
statements and other information with the Securities and Exchange Commission (&#147;SEC&#148;).
Our SEC filings are also available over the Internet at the SEC&#146;s website at
http://www.sec.gov. You may also read and copy any document we file by visiting
the SEC&#146;s public reference room in Washington, D.C. The SEC&#146;s address in
Washington, D.C. is 100 F Street, N.E., Washington, D.C. 20549. Please call the
SEC at 1-800-SEC-0330 for further information about the public reference room.
You may also inspect our SEC reports and other information at the New York
Stock Exchange,&nbsp;Inc., 20 Broad Street, New York, New York 10005.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have filed a registration
statement on Form&nbsp;S-3 with the SEC covering the securities that may be
sold under this prospectus. For further information on us and the securities
being offered, you should refer to our registration statement and its exhibits.
This prospectus summarizes material provisions of contracts and other documents
that we refer you to. Because the prospectus may not contain all the
information that you may find important, you should review the full text of
these documents. We have included copies of these documents as exhibits to our
registration statement of which this prospectus is a part.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;text-indent:0in;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHO WE ARE<a name="WhoWeAre_063032"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We own, develop and
manage retail real estate properties, primarily regional malls, Premium Outlet</font><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-3.0pt;">&#174;</font><font face="Times New Roman">&#160;centers and
community/lifestyle shopping centers. We have elected to be taxed as a real
estate investment trust or REIT for federal income tax purposes.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The core of our business
originated with the shopping center businesses of Melvin Simon, Herbert Simon,
David Simon and other members and associates of the Simon family. We have grown
significantly by acquiring properties and merging with other real estate
companies, including our 1996 merger with DeBartolo Realty Corporation, our
1998 combination with Corporate Property Investors,&nbsp;Inc. and our 2004
acquisition of Chelsea Property Group,&nbsp;Inc.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of December&nbsp;31,
2005, we owned or held an interest in 286&nbsp;income-producing properties in
the United States, which consisted of 171&nbsp;regional malls, 33&nbsp;Premium
Outlet centers, 71&nbsp;community/lifestyle centers, and 11&nbsp;other shopping
centers or outlet centers in 39&nbsp;states and Puerto Rico (collectively, the &#147;Properties&#148;
and, individually, a &#147;Property&#148;). In addition, we also own interests in ten
parcels of land held for future development. Finally, we have ownership
interests in 51&nbsp;European shopping centers (in France, Italy and Poland),
5&nbsp;Premium Outlet centers in Japan, and one Premium Outlet center in
Mexico.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our predecessor was
organized as a Massachusetts business trust in 1971 and reorganized as a
Delaware corporation on March&nbsp;10, 1998. Our principal executive offices
are located at National City Center, Suite&nbsp;15 East, 115&nbsp;West Washington
Street, Indianapolis, Indiana 46204. During 2006, we will be moving our
headquarters to 225 West Washington Street, Indianapolis, Indiana&nbsp;46204.
Our telephone number is (317)&nbsp;636-1600. Our Internet website address is
www.simon.com. The information in our website is not incorporated by reference
into this prospectus.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you want to find more
information about us, please see the sections entitled &#147;Where You Can Find More
Information&#148; and &#147;Incorporation of Information We File with the SEC&#148; in this prospectus.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In this prospectus, &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer to Simon Property Group,&nbsp;Inc. and its subsidiaries.
The &#147;Operating Partnership&#148; refers specifically to our majority-owned
subsidiary, Simon Property Group, L.P.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">USE OF PROCEEDS<a name="UseOfProceeds_063042"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We expect to use the net
proceeds from the sale of the securities for general corporate purposes, unless
otherwise specified in the prospectus supplement relating to a specific
offering. Our general corporate purposes may include repaying debt, financing
capital commitments and financing future acquisitions. If we decide to use the
net proceeds from an offering in some other way, we will describe the use of
the net proceeds in the prospectus supplement for that offering.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If a prospectus
supplement includes an offering of common stock by selling security holders, we
will not receive any proceeds from such sales.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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</div>
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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">RATIO OF EARNINGS TO FIXED CHARGES AND <a name="RatioOfEarningsToFixedChargesAnd_063056"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">PREFERRED
STOCK DIVIDENDS</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The following table sets
forth our historical unaudited ratios of earnings to fixed charges and
preferred stock dividends&#160; for the
periods indicated:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="51%" style="border-collapse:collapse;width:51.52%;">
 <tr>
  <td width="98%" colspan="9" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:98.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Year&nbsp;Ended&nbsp;December&nbsp;31,</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:20.3%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2005</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.82%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.6%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2004</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.6%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2003</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.6%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2002</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">2001</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.88%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="20%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:20.3%;">
  <p align="right" style="margin:0in 0in .0001pt 10.0pt;text-align:right;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.40</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.82%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:15.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.51</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:15.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.50</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:15.6%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.63</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:15.64%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.33</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.88%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">x</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:normal;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of
calculating the ratio of earnings to fixed charges and preferred stock
dividends, &#147;earnings&#148; have been computed by adding fixed charges, excluding
capitalized interest, to income (loss) from continuing operations including
income from minority interests and our share of income (loss)&#160; from 50%-owned affiliates which have fixed
charges, and including distributed operating income from unconsolidated joint
ventures instead of income from unconsolidated joint ventures. There are
generally no restrictions on our ability to receive distributions from our
joint ventures where no preference in favor of the other owners of the joint
venture exists. &#147;Fixed charges&#148; consist of interest costs, whether expensed or
capitalized, the interest component of rental expenses and amortization of debt
issuance costs.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The computation of the
ratio of earnings to fixed charges and preferred stock dividends has been
restated to comply with FASB Statement No.&nbsp;144 which requires the operating
results of the properties sold in the current year to be reclassified to
discontinued operations and requires restatement of previous year&#146;s operating
results of the properties sold to discontinued operations.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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</div>
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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">DESCRIPTION OF SECURITIES BEING OFFERED<a name="DescriptionOfSecuritiesBeingOffer_063107"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Authorized Stock</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We have the authority to
issue 750,000,000&nbsp;shares of capital stock, par value $0.0001&nbsp;per
share, consisting of the following:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">400,000,000&nbsp;shares
of common stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">12,000,000&nbsp;shares of Class&nbsp;B
common stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">4,000&nbsp;shares of Class&nbsp;C common
stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">100,000,000&nbsp;shares of preferred
stock, and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">237,996,000&nbsp;shares of excess common
stock.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Description of Common
Stock, Class&nbsp;B Common Stock and Class&nbsp;C Common Stock</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Terms of Common Stock.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">The holders of shares of common stock:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are entitled to one vote per share on all
matters to be voted on by stockholders, other than the election of four directors
who are elected exclusively by holders of Class&nbsp;B common stock, and the
election of two directors who are elected exclusively by holders of Class&nbsp;C
common stock;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are not entitled to cumulate their votes
in the election of directors;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are entitled to receive dividends as may
be declared from time to time by the board of directors, in its discretion,
from legally available assets, subject to preferential rights of holders of
preferred stock;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are not entitled to preemptive,
subscription or conversion rights; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are not subject to further calls or
assessments.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares of common
stock currently outstanding are, and the shares to be sold from time to time in
one offering or a series of offerings pursuant to this prospectus will be,
validly issued, fully paid and non-assessable. There are no redemption or
sinking fund provisions applicable to the common stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Terms of Class&nbsp;B Common Stock and Class&nbsp;C
Common Stock.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">As of December&nbsp;31,
2005, we had 8,000&nbsp;shares of Class&nbsp;B common stock outstanding and
4,000&nbsp;shares of Class&nbsp;C common stock outstanding. Holders of Class&nbsp;B
common stock and Class&nbsp;C common stock:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are entitled to one vote for each share
held of record on all matters submitted to a vote of the stockholders, other
than the election of four directors who are elected exclusively by the holders
of Class&nbsp;B common stock and the election of two directors who are elected
exclusively by the holders of Class&nbsp;C common stock;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are not entitled to cumulative voting for
the election of directors; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">are entitled to receive ratably such
dividends as may be declared by the board of directors out of legally available
funds, subject to preferential rights of holders of preferred stock;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If we are liquidated,
each outstanding share of common stock, Class&nbsp;B common stock and Class&nbsp;C
common stock, including shares of Excess Common Stock, if any, will be entitled
to participate <i>pro rata</i> in the
assets remaining after payment of, or adequate provision for, all of our known
debts and liabilities, subject to the right of the holders of preferred stock,
including any excess preferred stock into which shares such series has been
converted, to receive preferential distributions.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All outstanding shares
of Class&nbsp;B common stock are held in a voting trust of which Melvin,
Herbert and David Simon are the voting trustees. The holders of Class&nbsp;B
common stock are entitled to elect four of our 13 directors. However, they will
be entitled to elect only two directors if their portion of the aggregate
equity interest of us, including common stock, Class&nbsp;B common stock and
units of limited partnership interests of the Operating Partnership considered
on an as-converted basis decreases to less than 50% of the amount that they
owned as of August&nbsp;9, 1996.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares of Class&nbsp;B
common stock may be converted at the holder&#146;s option into an equal number of
shares of common stock. If the aggregate equity interest of the Simon family in
us on a fully diluted basis has been reduced to less than 5%, the outstanding
shares of Class&nbsp;B common stock convert automatically into an equal number
of shares of common stock. Shares of Class&nbsp;B common stock also convert
automatically into an equal number of shares of common stock upon the sale or
transfer thereof to a person not affiliated with the Simon family. Holders of
shares of common stock and Class&nbsp;B common stock have no sinking fund
rights, redemption rights or preemptive rights to subscribe for any of our
securities.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All outstanding shares
of Class&nbsp;C common stock are held by the DeBartolo family. Except with
respect to the right to elect directors, as summarized below, each share of Class&nbsp;C
common stock has the same rights and restrictions as a share of Class&nbsp;B
common stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The holders of Class&nbsp;C
common stock are entitled to elect two of our 13 directors, one of whom must be
an &#147;independent director&#148; as defined in our charter. However, they will be
entitled to elect only one director if their portion of the aggregate equity
interest of us, including common stock, Class&nbsp;B common stock and units of
limited partnership interest in the Operating Partnership considered on an
as-converted basis, decreases to less than 50% of the amount that they owned as
of August&nbsp;9, 1996. Shares of Class&nbsp;C common stock may be converted at
the holder&#146;s option into an equal number of shares of common stock. If the
aggregate equity interest of the DeBartolos in us on a fully diluted basis is
reduced to less than 5%, the outstanding shares of Class&nbsp;C common stock
convert automatically into an equal number of shares of common stock. Shares of
Class&nbsp;C common stock also convert automatically into an equal number of
shares of common stock upon the sale or transfer thereof to a person not
affiliated with the DeBartolos. Holders of shares of Class&nbsp;C common stock
have no sinking fund rights, redemption rights or preemptive rights to
subscribe for any of our securities.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under our charter, so
long as any shares of both Class&nbsp;B common stock and Class&nbsp;C common
stock are outstanding, the number of members of the board of directors shall be
13. The charter further provides that so long as any shares of Class&nbsp;B
common stock, but no Class&nbsp;C common stock, are outstanding, or if any
shares of Class&nbsp;C common stock, but no shares of Class&nbsp;B common
stock, are outstanding, the number of members of the board of directors shall
be nine. Finally, the charter provides that if no shares of Class&nbsp;B common
stock or Class&nbsp;C common stock are outstanding, the number of members of
the board of directors shall be fixed by the board of directors from time to
time. Under the charter, at least a majority of the directors shall be
independent directors. The charter further provides that, subject to any
separate rights of holders of Preferred Stock or as described below, any
vacancies on the board of directors resulting from death, disability,
resignation, retirement, disqualification, removal from office, or other cause
of a director shall be filled by a vote of the stockholders or a majority of
the directors then in office provided that:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any vacancy relating to a director
elected by the Class&nbsp;B common stock is to be filled by the holders of the Class&nbsp;B
common stock; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any vacancy relating to a director
elected by the holders of Class&nbsp;C common stock is to be filled as provided
in the charter.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The charter provides
that, subject to the right of holders of any class or series separately
entitled to elect one or more directors, if any such right has been granted,
directors may be removed with or without </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cause upon the
affirmative vote of holders of at least a majority of the voting power of all
the then outstanding shares entitled to vote generally in the election of
directors, voting together as a single class.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transfer Agent.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Mellon Investor Services LLC is the transfer agent for the
shares of common stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preferred Stock</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Of the 100,000,000
authorized shares of preferred stock, the following have been designated:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">209,249 shares of 6.50% Series&nbsp;A
Convertible Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">5,000,000 shares of 6.50% Series&nbsp;B
Convertible Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">209,249 shares of Series&nbsp;A Excess
Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">5,000,000 shares of Series&nbsp;B Excess
Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">2,700,000 shares of 7.00% Series&nbsp;C
Convertible Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">2,700,000 shares of 8.00% Series&nbsp;D
Cumulative Redeemable Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">1,000,000 shares of 8.00% Series&nbsp;E
Cumulative Redeemable Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">8,000,000 shares of 8</font><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-2.0pt;">3</font><font face="Symbol">&#164;</font><font size="1" face="Times New Roman" style="font-size:6.5pt;">4</font><font face="Times New Roman">% Series&nbsp;F
Cumulative Redeemable Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">3,000,000 shares of 7.89% Series&nbsp;G
Cumulative Step-Up Premium Rate Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">4,530,000&nbsp;shares of Series&nbsp;H
Variable Rate Preferred Stock,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">17,998,848&nbsp;shares of 6% Series&nbsp;I
Convertible Perpetual Preferred Stock, and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">796,948&nbsp;shares of 8</font><font size="1" face="Times New Roman" style="font-size:6.5pt;position:relative;top:-2.0pt;">3</font><font face="Symbol">&#164;</font><font size="1" face="Times New Roman" style="font-size:6.5pt;">8</font><font face="Times New Roman">% Series&nbsp;J
Cumulative Redeemable Preferred Stock.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As of December&nbsp;31,
2005, there were 8,000,000&nbsp;shares of Series&nbsp;F Cumulative Redeemable
Preferred Stock, 3,000,000&nbsp;shares of Series&nbsp;G Cumulative Step-Up
Premium Rate Preferred Stock, 13,835,174&nbsp;shares of Series&nbsp;I
Convertible Perpetual Preferred Stock and 796,948&nbsp;shares of Series&nbsp;J
Cumulative Redeemable Preferred Stock outstanding. As of December&nbsp;31,
2005, there were no shares of Series&nbsp;A Convertible Preferred Stock, Series&nbsp;A
Excess Preferred Stock, Series&nbsp;B Convertible Preferred Stock, Series&nbsp;B
Excess Preferred Stock, Series&nbsp;C Convertible Preferred Stock, Series&nbsp;D
Preferred Stock, Series&nbsp;E Cumulative Redeemable Preferred Stock or Series&nbsp;H
Variable Rate Preferred Stock outstanding.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Future Series.</font></i></font><font face="Times New Roman"> This
section is only a summary of the preferred stock that we may offer. We urge you
to read carefully our charter and the designation we will file in relation to
an issue of any particular series of preferred stock before you buy any
preferred stock. This section describes the general terms and provisions of the
preferred stock we may offer by this prospectus. The applicable prospectus
supplement will describe the specific terms of the series of the preferred
stock then offered, and the terms and provisions described in this section will
apply only to the extent not superceded by the terms of the applicable
prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are authorized to
issue up to 100,000,000 shares of preferred stock, par value $0.0001 per share.
Our board of directors may issue from time to time shares of preferred stock in
one or more series and with the relative powers, rights and preferences and for
the consideration our board of directors may determine.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our board of directors
may, without further action of the shareholders, determine and set forth in a
designation to the following for each series of preferred stock:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the serial designation and the number of
shares in that series;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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</div>
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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the dividend rate or rates, whether
dividends shall be cumulative and, if so, from what date, the payment date or
dates for dividends, and any participating or other special rights with respect
to dividends;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any voting powers of the shares;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">whether the shares will be redeemable
and, if so, the price or prices at which, and the terms and conditions on which
the shares may be redeemed;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the amount or amounts payable upon the
shares in the event of voluntary or involuntary liquidation, dissolution or
winding up of us prior to any payment or distribution of our assets to any
class or classes of our stock ranking junior to the preferred stock;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">whether the shares will be entitled to the
benefit of a sinking or retirement fund and, if so entitled, the amount of the
fund and the manner of its application, including the price or prices at which
the shares may be redeemed or purchased through the application of the fund;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">whether the shares will be convertible
into, or exchangeable for, shares of any other class or of any other series of
the same or any other class of our stock or the stock of another issuer, and if
so convertible or exchangeable, the conversion price or prices, or the rates of
exchange, and any adjustments to the conversion price or rates of exchange at
which the conversion or exchange may be made, and any other terms and
conditions of the conversion or exchange; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any other preferences, privileges and
powers, and relative, participating, optional, or other special rights, and
qualifications, limitations or restrictions, as our board of directors may deem
advisable and as shall not be inconsistent with the provisions of our charter.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depending on the rights
prescribed for a series of preferred stock, the issuance of preferred stock
could have an adverse effect on the voting power of the holders of common stock
and could adversely affect holders of common stock by delaying or preventing a
change in control of us, making removal of our present management more
difficult or imposing restrictions upon the payment of dividends and other
distributions to the holders of common stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The preferred stock,
when issued, will be fully paid and nonassessable. Unless the applicable
prospectus supplement provides otherwise, the preferred stock will have no
preemptive rights to subscribe for any additional securities which may be
issued by us in the future. The transfer agent and registrar for the preferred
stock will be specified in the applicable prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Warrants</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">General.</font></i></font><font face="Times New Roman"> This
section describes the general terms and provisions of the warrants that we may
offer pursuant to this prospectus. The applicable prospectus supplement will
describe the specific terms of the warrants then offered, and the terms and
provisions described in this section will apply only to the extent not
superceded by the terms of the applicable prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may issue warrants
for the purchase of common stock or preferred stock. Warrants may be issued
alone or together with common stock or preferred stock offered by any
prospectus supplement and may be attached to or separate from those securities.
Each series of warrants will be issued under warrant agreements between us and
a bank or trust company, as warrant agent, which will be described in the
applicable prospectus supplement. The warrant agent will act solely as our
agent in connection with the warrants and will not act as an agent or trustee
for any holders or beneficial holders of warrants.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This section summarizes
the general terms and provisions of the forms of warrant agreements and warrant
certificates. Because this is only a summary, it does not contain all of the
details found in the full text of the warrant agreements and the warrant
certificates. We urge you to read the applicable form of </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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<div>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">warrant agreement and
the form of warrant certificate that we will file in relation to an issue of
any warrants.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If warrants for the
purchase of common stock or preferred stock are offered, the applicable
prospectus supplement will describe the terms of those warrants, including the
following if applicable:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the offering price;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the total number of shares that can be
purchased upon exercise and, in the case of warrants for preferred stock, the
designation, total number and terms of the series of preferred stock that can
be purchased upon exercise;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the designation and terms of the series
of preferred stock with which the warrants are being offered and the number of
warrants being offered with each share of common stock or preferred stock;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the date on and after which the holder of
the warrants can transfer them separately from the related common stock or
series of preferred stock;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the number of shares of common stock or
preferred stock that can be purchased upon exercise and the price at which the
common stock or preferred stock may be purchased upon exercise;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the date on which the right to exercise
the warrants begins and the date on which that right expires;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">United States federal income tax
consequences; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any other terms of the warrants.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless the applicable
prospectus supplement provides otherwise, warrants will be in registered form
only. Until any warrants to purchase preferred stock or common stock are
exercised, holders of the warrants will not have any rights of holders of the
underlying preferred stock or common stock, including any right to receive
dividends or to exercise any voting rights.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A holder of warrant
certificates may:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">exchange them for new certificates of
different denominations;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">present them for registration of
transfer; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">exercise them at the corporate trust
office of the warrant agent or any other office indicated in the applicable
prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exercise of Warrants.</font></i></font><font face="Times New Roman"> Each holder
of a warrant is entitled to purchase the number of shares of common stock or
preferred stock at the exercise price described in the applicable prospectus
supplement. After the close of business on the day when the right to exercise
terminates, or a later date if we extend the time for exercise, unexercised
warrants will become void.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless the applicable
prospectus supplement provides otherwise, a holder of warrants may exercise
them by following the general procedure outlined below:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">delivering to the warrant agent the
payment required by the applicable prospectus supplement to purchase the
underlying security;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">properly completing and signing the
reverse side of the warrant certificate representing the warrants; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">delivering the warrant certificate
representing the warrants to the warrant agent within five business days of the
warrant agent receiving payment of the exercise price.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you comply with the
procedures described above, your warrants will be considered to have been
exercised when the warrant agent receives payment of the exercise price. After
you have completed those procedures, we will, as soon as practicable, issue and
deliver to you preferred stock or common stock that you purchased upon
exercise. If you exercise fewer than all of the warrants represented by a
warrant certificate, a new warrant certificate will be issued to you for the
unexercised amount of warrants. Holders of warrants will be required to pay any
tax or governmental charge that may be imposed in connection with transferring
the underlying securities in connection with the exercise of the warrants.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendments and Supplements to Warrant
Agreements.</font></i></font><font face="Times New Roman"> Unless the applicable prospectus
supplement provides otherwise, the following describes generally the provisions
relating to amending and supplementing the warrant agreements.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may amend or supplement
a warrant agreement without the consent of the holders of the applicable
warrants if the changes are not inconsistent with the provisions of the
warrants and do not materially adversely affect the interests of the holders of
the warrants. We and the warrant agent may also modify or amend a warrant
agreement and the terms of the warrants if a majority of the then outstanding
unexercised warrants affected by the modification or amendment consent.
However, no modification or amendment that accelerates the expiration date,
increases the exercise price, reduces the majority consent requirement for any
modification or amendment or otherwise materially adversely affects the rights
of the holders of the warrants may be made without the consent of each holder
affected by the modification or amendment.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Warrant Adjustments.</font></i></font><font face="Times New Roman"> The warrant
certificate and the applicable prospectus supplement will describe the events
requiring adjustment to the warrant exercise price or the number or principal
amount of securities issuable upon exercise of the warrant.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositary Shares</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:auto;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">General.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">We may issue receipts for depositary shares, each of which
will represent a fractional interest of a share of a particular series of
preferred stock, as specified in the applicable prospectus supplement. Shares
of preferred stock of each series represented by the depositary shares will be
deposited under a separate deposit agreement between us, the depositary named
therein and the holders of the depositary receipts. Subject to the terms of the
deposit agreement, each depositary receipt owner will be entitled, in
proportion to the fractional interest of a share of a particular series of
preferred stock represented by the depositary shares evidenced by such
depositary receipt, to all the rights and preferences of the preferred stock
represented thereby.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depositary receipts
issued pursuant to the applicable deposit agreement will evidence the
depositary shares. Immediately following our issuance and delivery of the
preferred stock to the depositary, we will cause the depositary to issue, on
our behalf, the depositary receipts. Upon request, we will provide you with
copies of the applicable form of deposit agreement and depositary receipt.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dividends and Other Distributions.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">The depositary will distribute all cash dividends or other
cash distributions received in respect of the preferred stock to the record
holders of depositary receipts evidencing the related depositary shares in
proportion to the number of depositary receipts owned by the holders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If there is a
distribution other than in cash, the depositary will distribute property
received by it to the record holders of depositary receipts entitled thereto.
If the depositary determines that it is not feasible to make such distribution,
the depositary may, with our approval, sell the property and distribute the net
proceeds from such sale to the holders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Withdrawal of Stock.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Upon surrender of the depositary receipts at the corporate
trust office of the depositary, unless the related depositary shares have
previously been called for redemption, the holders</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">thereof will be entitled
to delivery, to or upon such holders&#146; order, of the number of whole or
fractional shares of the preferred stock and any money or other property
represented by the depositary shares evidenced by the depositary receipts.
Holders of depositary receipts will be entitled to receive whole or fractional
shares of the related preferred stock on the basis of the proportion of
preferred stock represented by each depositary share as specified in the
applicable prospectus supplement. Thereafter, holders of such shares of
preferred stock will not be entitled to receive depositary shares for the
preferred stock. If the depositary receipts delivered by the holder evidence a
number of depositary shares in excess of the number of depositary shares
representing the number of shares of preferred stock to be withdrawn, the
depositary will deliver to the holder a new depositary receipt evidencing the
excess number of depositary shares.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Redemption of Depositary Shares.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Provided we shall have paid in full to the depositary the
redemption price of the preferred stock to be redeemed plus an amount equal to
any accrued and unpaid dividends thereon to the redemption date, whenever we
redeem shares of preferred stock held by the depositary, the depositary will
redeem as of the same redemption date the number of depositary shares
representing shares of the preferred stock so redeemed. The redemption price
per depositary share will be equal to the redemption price and any other
amounts per share payable with respect to the preferred stock. If fewer than
all the depositary shares are to be redeemed, the depositary shares to be
redeemed will be selected as nearly as may be practicable without creating
fractional depositary shares, pro rata, or by any other equitable method we
determine.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">From and after the date
fixed for redemption, all dividends in respect of the shares of preferred stock
so called for redemption will cease to accrue, the depositary shares called for
redemption will no longer be deemed to be outstanding and all rights of the
holders of the depositary receipts evidencing the depositary shares so called
for redemption will cease, except the right to receive any moneys payable upon
such redemption and any money or other property to which the holders of such
depositary receipts were entitled to receive upon such redemption upon
surrender to the depositary of the depositary receipts representing the
depositary shares.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Voting of the Preferred Stock.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Upon receipt of notice of any meeting at which the holders
of the preferred stock are entitled to vote, the depositary will mail the
information contained in such notice of meeting to the record holders of the
depositary receipts evidencing the depositary shares that represent such
preferred stock. Each record holder of depositary receipts evidencing
depositary shares on the record date, which will be the same date as the record
date for the preferred stock, will be entitled to instruct the depositary as to
the exercise of the voting rights pertaining to the amount of preferred stock
represented by such holder&#146;s depositary shares. The depositary will vote the
amount of preferred stock represented by such depositary shares in accordance
with such instructions, and we will agree to take all reasonable action that
may be deemed necessary by the depositary in order to enable the depositary to
do so. If the depositary does not receive specific instructions from the
holders of depositary receipts evidencing such depositary shares, it will
abstain from voting the amount of preferred stock represented by such
depositary shares. The depositary shall not be responsible for any failure to
carry out any instruction to vote, or for the manner or effect of any such vote
made, as long as any such action or non-action is in good faith and does not
result from the depositary&#146;s negligence or willful misconduct.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Liquidation Preference.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Upon our liquidation, dissolution or winding up, whether voluntary
or involuntary, the holders of each depositary receipt will be entitled to the
fraction of the liquidation preference accorded each share of preferred stock
represented by the depositary share evidenced by such depositary receipt, as
set forth in the applicable prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conversion of Preferred Stock.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Except with respect to certain conversions in connection
with the preservation of our REIT status, the depositary shares are not
convertible into our common stock or any other of our securities or property.
Nevertheless, if the applicable prospectus supplement so specifies, the</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">holders of the
depositary receipts may surrender their depositary receipts to the depositary
with written instructions to the depositary to instruct us to cause conversion
of the preferred stock represented by the depositary shares evidenced by such
depositary receipts into whole shares of common stock, other shares of our
preferred stock or other shares of our capital stock, and we have agreed that
upon receipt of such instructions and any amounts payable in respect thereof,
we will cause the conversion of the depositary shares utilizing the same
procedures as those provided for delivery of preferred stock to effect such
conversion. If the depositary shares evidenced by a depositary receipt are to
be converted in part only, the depositary will issue a new depositary receipt
for any depositary shares not to be converted. No fractional shares of common
stock will be issued upon conversion, and if such conversion will result in a
fractional share being issued, we will pay an amount in cash equal to the value
of the fractional interest based upon the closing price of the common stock on
the last business day prior to the conversion.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment and Termination of the Deposit
Agreement.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">By
agreement, we and the depositary at any time can amend the form of depositary
receipt and any provision of the deposit agreement. However, any amendment that
materially and adversely alters the rights of the holders of depositary
receipts or that would be materially and adversely inconsistent with the rights
granted to holders of the related preferred stock will be effective only if the
existing holders of at least two-thirds of the depositary shares have approved
the amendment. No amendment shall impair the right, subject to certain
exceptions in the deposit agreement, of any holder of depositary receipts to
surrender any depositary receipt with instructions to deliver to the holder the
related preferred stock and all money and other property, if any, represented
thereby, except in order to comply with law. Every holder of an outstanding
depositary receipt at the time an amendment becomes effective shall be deemed,
by continuing to hold the depositary receipt, to consent and agree to the
amendment and to be bound by the deposit agreement as amended thereby.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon 30&nbsp;days&#146; prior
written notice to the depositary, we may terminate the deposit agreement if (a)&nbsp;such
termination is necessary to preserve our status as a REIT or (b)&nbsp;a
majority of each series of preferred stock affected by such termination
consents to such termination. Upon the termination of the deposit agreement,
the depositary shall deliver or make available to each holder of depositary
receipts, upon surrender of the depositary receipts held by such holder, such
number of whole or fractional shares of preferred stock as are represented by
the depositary shares evidenced by the depositary receipts together with any
other property held by the depositary with respect to the depositary receipt.
If the deposit agreement is terminated to preserve our status as a REIT, then
we will use our best efforts to list the preferred stock issued upon surrender
of the related depositary shares on a national securities exchange.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The deposit agreement
will automatically terminate if (a)&nbsp;all outstanding depositary shares
shall have been redeemed, (b)&nbsp;there shall have been a final distribution
in respect of the related preferred stock in connection with our liquidation,
dissolution or winding up and such distribution shall have been distributed to
the holders of depositary receipts evidencing the depositary shares
representing such preferred stock or (c)&nbsp;each share of the related
preferred stock shall have been converted into our capital stock not so
represented by depositary shares.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charges of Depositary.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">We will pay all transfer and other taxes and governmental
charges arising solely from the existence of the deposit agreement. In
addition, we will pay the fees and expenses of the depositary in connection
with the performance of its duties under the deposit agreement. However,
holders of depositary receipts will pay certain other transfer and other taxes
and governmental charges. The holders will also pay the fees and expenses of
the depositary for any duties, outside of those expressly provided for in the
deposit agreement, the holders request to be performed.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Resignation and Removal of Depositary.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">The depositary may resign at any time by delivering to us
notice of its election to do so. We may at any time remove the depositary, any
such resignation or removal will take effect upon the appointment of a successor
depositary. A successor depositary must be appointed</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">within 60 days after
delivery of the notice of resignation or removal and must be a bank or trust
company having its principal office in the United States and having a combined
capital and surplus of $50,000,000 or more.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Miscellaneous.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">The depositary will forward to holders of depositary
receipts any reports and communications from us which are received by the
depositary with respect to the related preferred stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We and the depositary
will not be liable if either of us is prevented from or delayed in, by law or
any circumstances beyond its control, performing its obligations under the
deposit agreement. Our obligations and the depositary&#146;s obligations under the
deposit agreement will be limited to performing the duties thereunder in good
faith and without negligence, in the case of any action or inaction in the
voting of preferred stock represented by the depositary shares, gross
negligence or willful misconduct. If satisfactory indemnity is furnished, we
and the depositary will be obligated to prosecute or defend any legal
proceeding in respect of any depositary receipts, depositary shares or shares
of preferred stock represented thereby. We and the depositary may rely on
written advice of counsel or accountants, or information provided by persons
presenting shares of preferred stock represented by depositary receipts for
deposit, holders of depositary receipts or other persons believed in good faith
to be competent to give such information, and on documents believed in good
faith to be genuine and signed by a proper party.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event the
depositary shall receive conflicting claims, requests or instructions from any
holders of depositary receipts, on the one hand, and us, on the other hand, the
depositary shall be entitled to act on our claims, requests or instructions.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">IMPORTANT PROVISIONS OF
OUR GOVERNING DOCUMENTS AND DELAWARE LAW<a name="ImportantProvisionsOfOurGoverning_063217"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Partnership Agreement</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
limited partnership agreement of the Operating Partnership contains voting
requirements that limit the possibility that we will be acquired or undergo a
change in control, even if some of our stockholders believe that a change would
be in our and their best interests. Specifically, the partnership agreement
provides that we must have the approval of the holders of a majority of the
units of limited partnership interest held by limited partners in order to:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">merge, consolidate or engage in any
combination with another person other than a general partner of the Operating
Partnership, or</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">sell all or substantially all of our
assets.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Delaware Law and Certain
Charter and By-law Provisions</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our charter and by-laws
and certain provisions of the Delaware General Corporation Law may have an
anti-takeover effect. These provisions may delay, defer or prevent a tender
offer or takeover attempt that a stockholder would consider in its best
interest. This includes an attempt that might result in a premium over the
market price for the shares held by stockholders. These provisions are expected
to discourage certain types of coercive takeover practices and inadequate
takeover bids. They are also expected to encourage persons seeking to acquire
control of us to negotiate first with our board of directors. We believe that
the benefits of these provisions outweigh the potential disadvantages of
discouraging takeover proposals because, among other things, negotiation of
takeover proposals might result in an improvement of their terms.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Delaware Anti-Takeover
Law.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">We are a
Delaware corporation and are subject to the provisions of Section&nbsp;203 of
the Delaware General Corporation Law. In general, Section&nbsp;203 prohibits a
public Delaware corporation from engaging in a &#147;business combination&#148; with an &#147;interested
stockholder&#148; for three years after the time at which the person became an
interested stockholder unless:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">prior to that time, the board of
directors approved either the business combination or transaction in which the
stockholder became an interested stockholder; or</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">upon becoming an interested stockholder,
the stockholder owned at least 85% of the corporation&#146;s outstanding voting
stock other than shares held by directors who are also officers and certain
employee benefit plans; or</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the business combination is approved by
both the board of directors and by holders of at least 66</font><font size="1" style="font-size:6.5pt;position:relative;top:-2.0pt;">2</font><font face="Symbol">&#164;</font><font size="1" style="font-size:6.5pt;">3</font><font face="Times New Roman">% of the corporation&#146;s outstanding voting
stock at a meeting and not by written consent, excluding shares owned by the
interested stockholder.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For these purposes, the
term &#147;business combination&#148; includes mergers, asset sales and other similar
transactions with an &#147;interested stockholder.&#148; &#147;Interested stockholder&#148; means a
person who, together with its affiliates and associates, owns, or under certain
circumstances has owned within the prior three years, more than 15% of the
outstanding voting stock. Although Section&nbsp;203 permits a corporation to
elect not to be governed by its provisions, we have not made this election.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Advance Notice
Provisions for Stockholder Nominations and Stockholder Proposals.</font></i></font><font face="Times New Roman"> Our by-laws
establish an advance notice procedure for stockholders to make nominations of
candidates for election as directors or bring other business before an annual
meeting of stockholders. This procedure provides that</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the only persons who will be eligible for
election as directors are persons who are nominated by or at the direction of
the board of directors, or by a stockholder who has given timely written notice
containing specified information to the Secretary prior to the meeting at which
directors are to be elected, and</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the only business that may be conducted
at an annual meeting is business that has been brought before the meeting by or
at the direction of the Chairman of the board of directors or by a stockholder
who has given timely written notice to the Secretary of the stockholder&#146;s
intention to bring the business before the meeting.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In general, we must
receive written notice of stockholder nominations to be made or business to be
brought at an annual meeting not less than 120&nbsp;days prior to the first
anniversary of the date of the proxy statement for the previous year&#146;s annual
meeting, in order for the notice to be timely. The notice must contain
information concerning the person or persons to be nominated or the matters to
be brought before the meeting and concerning the stockholder submitting the
proposal.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
purposes of requiring stockholders to give us advance notice of nominations and
other business include the following:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">to afford the board of directors a
meaningful opportunity to consider the qualifications of the proposed nominees
or the advisability of the other proposed business;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">to the extent deemed necessary or
desirable by the board of directors, to inform stockholders and make recommendations
about such qualifications or business; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">to provide a more orderly procedure for
conducting meetings of stockholders.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our by-laws do not give
our board of directors any power to disapprove stockholder nominations for the
election of directors or proposals for action. However, they may have the
effect of precluding a contest for the election of directors or the
consideration of stockholder proposals if the proper procedures are not</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

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<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">followed. Our by-laws
may also discourage or deter a third party from soliciting proxies to elect its
own slate of directors or to approve its own proposal, without regard to whether
consideration of the nominees or proposals might be harmful or beneficial to us
and our stockholders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director Action.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Our charter and by-laws and the Delaware General Corporation
Law generally require that a majority of a quorum is necessary to approve any
matter to come before the board of directors. Certain matters, including sales
of property, transactions with the Simons or the DeBartolos and certain
affiliates and certain other matters, will also require approval of a majority
of the independent directors on the board of directors.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director Liability
Limitation and Indemnification.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Our charter provides that no director will be personally
liable to us or to our stockholders for monetary damages for breach of
fiduciary duty as a director. This will not, however, eliminate or limit the
liability of a director for the following:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any breach of the director&#146;s duty of
loyalty to us and our stockholders;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">acts or omissions not in good faith;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any transaction from which the director
derived an improper personal benefit; or</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">any matter in respect of which the
director would be liable under Section&nbsp;174 of the Delaware General
Corporation Law.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">These provisions may
discourage stockholders&#146; actions against directors. Directors&#146; personal
liability for violating the federal securities laws is not limited or otherwise
affected. In addition, these provisions do not affect the ability of
stockholders to obtain injunctive or other equitable relief from the courts
with respect to a transaction involving gross negligence on the part of a
director.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
charter provides that we shall indemnify to the fullest extent permitted under
and in accordance with Delaware law any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative by
reason of the fact that</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">he is or was our director or officer, or</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">is or was serving at our request as a
director, officer or trustee of or in any other capacity with another
corporation, partnership, joint venture, trust or other enterprise.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With
respect to such persons, we shall indemnify against expenses, including
attorneys&#146; fees, judgments, fines and amounts paid in settlement actually and
reasonably incurred by the person in connection with the action, suit or
proceeding if the following standards are met:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the person acted in good faith and in a
manner he reasonably believed to be in or not opposed to our best interests,
and,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Delaware General
Corporation Law provides that indemnification is mandatory where a director or
officer has been successful on the merits or otherwise in the defense of any
proceeding covered by the indemnification statute.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Delaware General Corporation Law generally permits indemnification for expenses
incurred in the defense or settlement of third-party actions or action by or in
right of the corporation, and for judgments in third-party actions, provided
the following determination is made:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the person seeking indemnification acted
in good faith and in a manner reasonably believed to be in, or not opposed to,
the best interests of the corporation, or</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">in a criminal proceeding, the person had
no reason to believe his or her conduct to be unlawful.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The determination must
be made by directors who were not parties to the action, or if directed by such
directors, by independent legal counsel or by a majority vote of a quorum of
the stockholders. Without court approval, however, no indemnification may be
made in respect of any action by or in right of the corporation in which such
person is adjudged liable.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under Delaware law, the
indemnification provided by statute shall not be deemed exclusive of any rights
under any by-law, agreement, vote of stockholders or disinterested directors or
otherwise. In addition, the liability of officers may not be eliminated or
limited under Delaware law.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The right of
indemnification, including the right to receive payment in advance of expenses,
conferred by our charter is not exclusive of any other rights to which any
person seeking indemnification may otherwise be entitled.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

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<div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">RESTRICTIONS ON
OWNERSHIP AND TRANSFER<a name="RestrictionsOnOwnershipAndTransfe_063234"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our
charter contains certain restrictions on the number of shares of capital stock
that individual stockholders may own. Certain requirements must be met for us
to maintain our status as a REIT, including the following:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">not more than 50% in value of the
outstanding capital stock of Simon Property may be owned, directly or
indirectly, by five or fewer individuals, as defined in the Internal Revenue
Code to include certain entities, during the last half of a taxable year other
than the first year, and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the capital stock also must be
beneficially owned by 100 or more persons during at least 335&nbsp;days of a
taxable year of 12&nbsp;months or during a proportionate part of a shorter
taxable year.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In part because we
currently believe it is essential for Simon Property to maintain its status as
a REIT, the provisions of our charter with respect to Excess Stock contain
restrictions on the acquisition of our capital stock intended to ensure
compliance with these requirements.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our charter provides
that, subject to certain specified exceptions, no stockholder may own, or be
deemed to own by virtue of the attribution rules&nbsp;of the Internal Revenue
Code, more than the ownership limit. The ownership limit is equal to 8%, or 18%
in the case of the Simons, of any class of capital stock. The ownership limit
is calculated based on the lower of outstanding shares, voting power or value.
The board of directors may exempt a person from the ownership limit if the
board of directors receives a ruling from the Internal Revenue Service or an
opinion of tax counsel that such ownership will not jeopardize Simon Property&#146;s
status as a REIT.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Anyone acquiring shares
in excess of the ownership limit will lose control over the power to dispose of
the shares, will not receive dividends declared and will not be able to vote
the shares. In the event of a purported transfer or other event that would, if
effective, result in the ownership of shares of stock in violation of the
ownership limit, the transfer or other event will be deemed void with respect
to that number of shares that would be owned by the transferee in excess of the
ownership limit. The intended transferee of the excess shares will acquire no
rights in those shares of stock. Those shares of stock will automatically be
converted into shares of Excess Stock according to rules&nbsp;set forth in the
charter.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Upon a purported
transfer or other event that results in Excess Stock, the Excess Stock will be
deemed to have been transferred to a trustee to be held in trust for the
exclusive benefit of a qualifying charitable organization designated by Simon
Property. The Excess Stock will be issued and outstanding stock, and it will be
entitled to dividends equal to any dividends which are declared and paid on the
stock from which it was converted. Any dividend or distribution paid prior to
the discovery by Simon Property that stock has been converted into Excess Stock
is to be repaid upon demand. The recipient of the dividend will be personally
liable to the trust. Any dividend or distribution declared but unpaid will be
rescinded as void with respect to the shares of stock and will automatically be
deemed to have been declared and paid with respect to the shares of Excess
Stock into which the shares were converted. The Excess Stock will also be
entitled to the voting rights as are ascribed to the stock from which it was
converted. Any voting rights exercised prior to discovery by Simon Property
that shares of stock were converted to Excess Stock will be rescinded and
recast as determined by the trustee.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">While Excess Stock is
held in trust, an interest in that trust may be transferred by the purported
transferee, or other purported holder with respect to the Excess Stock, only to
a person whose ownership of the shares of stock would not violate the ownership
limit. Upon such transfer, the Excess Stock will be automatically exchanged for
the same number of shares of stock of the same type and class as the shares of
stock for which the Excess Stock was originally exchanged.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our charter contains
provisions that are designed to ensure that the purported transferee or other
purported holder of the Excess Stock may not receive in return for such a
transfer an amount that reflects</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any appreciation in the
shares of stock for which the Excess Stock was exchanged during the period that
the Excess Stock was outstanding. Any amount received by a purported transferee
or other purported holder in excess of the amount permitted to be received must
be paid over to the trust. If the foregoing restrictions are determined to be
void or invalid by virtue of any legal decision, statute, rule&nbsp;or
regulation, then the intended transferee or holder of any Excess Stock may be
deemed, at the option of Simon Property, to have acted as an agent on behalf of
the trust in acquiring or holding the Excess Stock and to hold the Excess Stock
on behalf of the trust.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our charter further
provides that Simon Property may purchase, for a period of 90&nbsp;days during
the time the Excess Stock is held by the trustee in trust, all or any portion
of the Excess Stock from the original transferee-stockholder at the lesser of
the following:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the price paid for the stock by the
purported transferee, or if no notice of such purchase price is given, at a
price to be determined by the board of directors, in its sole discretion, but
no lower than the lowest market price of such stock at any time prior to the
date Simon Property exercises its purchase option, and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the closing market price for the stock on
the date Simon Property exercises its option to purchase.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 90-day period begins
on the date of the violative transfer or other event if the original
transferee-stockholder gives notice to Simon Property of the transfer or, if no
notice is given, the date the board of directors determines that a violative
transfer or other event has occurred.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our charter further
provides that in the event of a purported issuance or transfer that would, if
effective, result in Simon Property being beneficially owned by fewer than 100
persons, such issuance or transfer would be deemed null and void, and the
intended transferee would acquire no rights to the stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All certificates
representing shares of any class of our stock bear a legend referring to the
restrictions described above.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All persons who own,
directly or by virtue of the attribution rules&nbsp;of the Internal Revenue
Code, more than 5%, or such other percentage as may be required by the Internal
Revenue Code or regulations promulgated thereunder, of the outstanding stock
must file an affidavit with Simon Property containing the information specified
in the charter before January&nbsp;30 of each year. In addition, each
stockholder shall, upon demand, be required to disclose to Simon Property in
writing such information with respect to the direct, indirect and constructive
ownership of shares as the board of directors deems necessary to comply with
the provisions of the charter or the Internal Revenue Code applicable to a
REIT.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Excess Stock
provision will not be removed automatically even if the REIT provisions of the
Internal Revenue Code are changed so as to no longer contain any ownership
concentration limitation or if the ownership concentration limitation is
increased. In addition to preserving Simon Property&#146;s status as a REIT, the
ownership limit may have the effect of precluding an acquisition of control of
Simon Property without the approval of its board of directors.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">FEDERAL INCOME TAX
CONSIDERATIONS<a name="FederalIncomeTaxConsiderations_063245"></a></font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
following discussion is based on the opinion of Baker&nbsp;&amp; Daniels LLP,
our tax counsel, as to the material United States federal income tax
considerations involved in our treatment as a REIT. This discussion is based
on:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the facts described in the registration
statement of which this prospectus supplement is a part;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the Internal Revenue Code of 1986, as
amended;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">current, temporary and proposed Treasury
regulations promulgated under the Internal Revenue Code;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

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<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the legislative history of the Internal
Revenue Code;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">current administrative interpretations
and practices of the Internal Revenue Service (&#147;IRS&#148;); and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">court decisions,</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">all as of the date of
this prospectus. In addition, the administrative interpretations and practices
of the IRS include its practices and policies as expressed in private letter
rulings that are not binding on the IRS, except with respect to the particular
taxpayers who requested and received those rulings. Future legislation,
treasury regulations, administrative&nbsp;interpretations and practices and/or
court decisions may adversely affect the tax considerations contained in this
discussion. Any change could apply retroactively to transactions preceding the
date of the change. The tax considerations contained in this discussion may be
challenged by the IRS, and we have not requested, and do not plan to request,
any rulings from the IRS concerning the tax treatment of the exchange of
unregistered notes for the exchange notes.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As a condition to the
closing of each offering of securities offered by this prospectus, as otherwise
specified in the applicable prospectus supplement, our tax counsel will render
an opinion to the underwriters of that offering to the effect that, commencing
with our taxable year December&nbsp;31, 1973, we (as Corporate Property
Investors) have been organized in conformity with the requirements for
qualification as a REIT, and our method of operation has enabled us to meet,
and our proposed method of operation will enable us to continue to meet, the
requirements for qualification and taxation as a REIT under the Code. It must
be emphasized that this opinion will be based on various assumptions and
representations that we will make as to factual matters, including
representations to be made in a factual certificate to be provided by one of
our officers. In addition, this opinion will be based on our factual
representations set forth in this prospectus and in the applicable prospectus
supplement. Our tax counsel will have no obligation to update its opinion
subsequent to the date it is rendered. Moreover, our qualification and taxation
as a REIT depend on our ability to meet, through actual annual operating
results, asset diversification, distributions and diversity of stock ownership,
the various qualification tests imposed by the Code, discussed below, the
results of which will not be reviewed by our tax counsel. Accordingly, no
assurance can be given that our actual results of operations for any particular
taxable year will satisfy those requirements. Further, the anticipated U.S.
federal income tax treatment described in this prospectus may be changed,
perhaps retroactively, by legislative, administrative or judicial action at any
time.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">YOU SHOULD CONSULT YOUR
OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES OF THE PURCHASE,
OWNERSHIP AND DISPOSITION OF OUR SECURITIES, INCLUDING THE APPLICABILITY AND
EFFECT OF ANY STATE, LOCAL, FOREIGN OR OTHER TAX LAWS.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taxation of Simon
Property</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">General.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">We have</font><font face="Times New Roman"> elected to
be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code.
We believe we have been organized and operated in a manner which allows us to
qualify for taxation as a REIT under the Internal Revenue Code. We intend to
continue to operate in this manner. However, our qualification and taxation as
a REIT depend upon our ability to meet, through actual annual operating
results, asset diversification, distribution levels and diversity of stock
ownership, the various qualification tests imposed under the Internal Revenue
Code. Accordingly, we cannot assure you that we have operated or will continue
to operate in a manner so as to qualify or remain qualified as a REIT. See &#147;&#151;Failure
to Qualify.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
sections of the Internal Revenue Code that relate to the qualification and
operation as a REIT are highly technical and complex. The following sets forth
the material aspects of the sections of the Internal Revenue Code that govern
the federal income tax treatment of a REIT and its stockholders. This</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">summary
is qualified in its entirety by the applicable Internal Revenue Code
provisions, relevant rules&nbsp;and regulations promulgated under the Internal
Revenue Code, and administrative and judicial interpretations of the Internal
Revenue Code.</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
we qualify for taxation as a REIT, we generally will not be subject to federal
corporate income taxes on our net income that is currently distributed to our
stockholders. This treatment substantially eliminates the &#147;double taxation,&#148;&#151;at
the corporate level when earned and again at the stockholder level when
distributed&#151;that generally results from investment in a corporation. However,
we will be subject to federal income tax as follows:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">We will be taxed at regular corporate
rates on any undistributed REIT taxable income, including undistributed net
capital gains.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">We may be subject to the &#147;alternative
minimum tax&#148; on items of tax preference under certain circumstances.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">If we have (1)&nbsp;net income from the
sale or other disposition of &#147;foreclosure property&#148; which is held primarily for
sale to customers in the ordinary course of business; or (2)&nbsp;other
specified nonqualifying income from foreclosure property, we will be subject to
tax at the highest corporate rate on this income. Foreclosure property is
defined generally as property acquired through foreclosure or after a default
on a loan secured by the property or a lease of the property.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">We will be subject to a 100% tax on any
net income from prohibited transactions. Prohibited transactions are, in
general, certain sales or other dispositions of property held primarily for
sale to customers in the ordinary course of business other than foreclosure
property.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">If we fail to satisfy the 75% gross
income test or the 95% gross income test (described below) but have maintained
our qualification as a REIT because we satisfied certain other requirements, we
will be subject to a 100% tax on an amount equal to (a)&nbsp;the gross income
attributable to the greater of (i)&nbsp;the amount by which we fail the 75%
gross income test, discussed below and (ii)&nbsp;the amount by which we fail
the 95% gross income test (b)&nbsp;multiplied by a fraction intended to reflect
our profitability.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">If we fail to satisfy any of the REIT
asset tests (described below) by more than a <i>de minimis</i>
amount, due to reasonable cause, and we nonetheless maintain our REIT
qualification because of specified cure provisions, we will be required to pay
a tax equal to the greater of $50,000 or the highest corporate tax rate
multiplied by the net income generated by the nonqualifying assets.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">If we fail to satisfy any provision of
the Internal Revenue Code that would result in our failure to qualify as a REIT
(other than a violation of the REIT gross income or asset tests described
below) and the violation is due to reasonable cause, we may retain our REIT
qualification but we will be required to pay a penalty of $50,000 for each such
failure.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">We will be subject to a 4% excise tax on
the excess of the required distribution over the amounts actually distributed,
or deemed distributed, during each calendar year. The required distribution for
a calendar year equals the sum of (1)&nbsp;85% of our REIT ordinary income for
the year, (2)&nbsp;95% of our REIT capital gain net income for the year, and (3)&nbsp;any
undistributed taxable income from prior periods.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">If we acquire any asset from a
corporation which is or has been a C&nbsp;corporation, <i>i.e.</i>, generally a corporation subject to
full corporate-level tax, in a transaction such as a merger or other
reorganization in which the basis of the acquired asset in our hands is
determined by reference to the basis of the asset in the hands of the C
corporation, then the acquired asset will be treated as a built-in gain asset.
If we subsequently recognize gain on the disposition of the built-in gain asset</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 30.25pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">during the ten-year period beginning on the date
on which we acquired the asset, then we will be subject to tax at the highest
regular corporate tax rate on this gain to the extent of the built-in gain. The
built-in gain is equal to the excess of (a)&nbsp;the fair market value of the
asset over (b)&nbsp;our adjusted basis in the asset, in each case determined as
of the beginning of the ten-year period. The results described in this
paragraph with respect to the recognition of built-in gain assume that the C
corporation from which the built-in gain asset was acquired will not make an
election pursuant to section&nbsp;1.337(d)-7(c)(5)&nbsp;of the Treasury
Regulations. An election pursuant to section&nbsp;1.337(d)-7(c)(5)&nbsp;of the
Treasury Regulations would cause the C corporation to recognize gain as if it
had sold the property we acquired to an unrelated party at fair market value.
In the event of such an election, the property we acquired would not be treated
as a built-in gain asset and we would not be subject to a corporate level tax
if we sold the property within ten years.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">We could be subject to a 100% tax
attributable to certain non-arm&#146;s length transactions with any of our taxable
REIT subsidiaries or with tenants that receive services from such taxable REIT
subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Requirements for
Qualification as a REIT.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">The Internal
Revenue Code defines a REIT as a corporation, trust or association that:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">is managed by one or more trustees or
directors;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">issues transferable shares or
transferable certificates to evidence its beneficial ownership;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">would be taxable as a domestic
corporation, but for Sections 856 through 859 of the Internal Revenue Code;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">is not a financial institution or an
insurance company within the meaning of certain provisions of the Internal
Revenue Code;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">is beneficially owned by 100 or more
persons;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">not more than 50% in value of the
outstanding stock of which is owned, actually or constructively, by five or fewer
individuals, as defined in the Internal Revenue Code to include certain
entities, during the last half of each taxable year; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">meets certain other tests, described
below, regarding the nature of its income and assets and the amount of its
distributions.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Internal Revenue
Code provides that the first four conditions must be met during the entire
taxable year and that the fifth condition must be met during at least
335&nbsp;days of a taxable year of twelve months, or during a proportionate
part of a taxable year of less than twelve months. The fifth and sixth
conditions do not apply until after the first taxable year for which an
election is made to be taxed as a REIT. For purposes of the sixth condition,
pension funds and certain other tax-exempt entities are treated as individuals,
subject to a &#147;look-through&#148; exception with respect to pension funds.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We believe that we have
satisfied each of these conditions. In addition, our charter provides for
restrictions regarding ownership and transfer of shares. These restrictions are
intended to assist us in continuing to satisfy the share ownership requirements
described above. These ownership and transfer restrictions are described in &#147;Restrictions
on Ownership and Transfer.&#148; These restrictions, however, may not ensure that we
will, in all cases, be able to satisfy the share ownership requirements. If we
fail to satisfy these share ownership requirements, our status as a REIT will
terminate, unless we are eligible for specified relief provisions as described
below. However, if we comply with the rules&nbsp;contained in applicable
Treasury Regulations that require us to ascertain the actual ownership of our
shares and we do not know, or would not have known through the exercise of
reasonable diligence, that we failed to meet the share ownership requirement,
we will be treated as having met that requirement.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, a
corporation may not elect to become a REIT unless its taxable year is the
calendar year. We have and will continue to have a calendar taxable year.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ownership of Interests in Partnerships and
Qualified REIT Subsidiaries.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">In the case of a REIT which is a partner in a partnership,
the Treasury Regulations provide that the REIT will be deemed to own its
proportionate share, generally in proportion to its capital interest in such
partnership, of the assets of the partnership. Also, the REIT will be deemed to
be entitled to the income of the partnership attributable to its proportionate
share, based on its capital interest, of such assets. The character of the
assets and gross income of the partnership retain the same character in the
hands of the REIT for purposes of Section&nbsp;856 of the Internal Revenue
Code, including satisfying the gross income tests and the asset tests. Thus,
our proportionate share of the assets and items of income of the Operating
Partnership, including the Operating Partnership&#146;s share of these items of any
partnership in which it owns an interest, are treated as our assets and items
of our income for purposes of applying the requirements described in this
prospectus, including the income and asset tests described below. We have
included a brief summary of the rules&nbsp;governing the federal income
taxation of partnerships and their partners below in &#147;&#151;Tax Aspects of the
Operating Partnership and the Joint Ventures.&#148;&#160;
We have direct control of the Operating Partnership and will continue to
operate it consistent with the requirements for our qualification as a REIT.
However, the Operating Partnership has non-managing ownership interests in
certain joint ventures. If a joint venture takes or expects to take actions
which could jeopardize our status as a REIT or subject us to tax, we may be
forced to dispose of our interest in such joint venture. In addition, it is
possible that a joint venture could take an action which could cause us to fail
a REIT income or asset test, and that we would not become aware of such action
in a time frame which would allow us to dispose of our interest in the joint
venture or take other corrective action on a timely basis. In such a case, we
could fail to qualify as a REIT.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We own 100% of the stock
of several subsidiaries that are qualified REIT subsidiaries and we may acquire
stock of one or more new subsidiaries. A subsidiary will qualify as a qualified
REIT subsidiary if we hold 100% of its stock and we do not elect to treat the
subsidiary as a taxable REIT subsidiary. A qualified REIT subsidiary is not
treated as a separate corporation, and all assets, liabilities and items of
income, deduction and credit of a qualified REIT subsidiary will be treated as
our assets, liabilities and such items, as the case may be, for all purposes of
the Internal Revenue Code, including the REIT qualification tests. For this
reason, references under &#147;Certain Federal Income Tax Considerations&#148; to our
income and assets include the income and assets of each of our qualified REIT
subsidiaries. A qualified REIT subsidiary will not be subject to federal income
tax, and our ownership of the voting stock of a qualified REIT subsidiary will
not violate the restrictions against ownership of securities of any one issuer
which constitute more than 10% of the value or total voting power of such
issuer or more than 5% of the value of our total assets, as described below
under &#147;&#151;Asset Tests.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ownership of Interests in Taxable REIT
Subsidiaries.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">The Internal
Revenue Code provides that for taxable years beginning after December&nbsp;31,
2000, REITs may own more than ten percent of the voting power and value of
securities in taxable REIT subsidiaries. A corporation is treated as a taxable
REIT subsidiary if a REIT owns stock in the corporation and the REIT and the
corporation jointly elect such treatment in accordance with the requirements
specified by the IRS. In the event such an election is made, any corporation of
which the taxable REIT subsidiary owns 35% of the total voting power or value
of the outstanding securities is also treated as a taxable REIT subsidiary.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although the activities
and income of taxable REIT subsidiaries are subject to tax at regular corporate
tax rates, taxable REIT subsidiaries are permitted to engage in certain
activities that the REIT could not engage in itself. Additionally, under
certain limited conditions, a REIT may receive income from a taxable REIT
subsidiary that would be treated as rent. See the discussion under &#147;&#151;Income
Tests&#148;&nbsp;below. As discussed more fully under &#147;&#151;Asset Tests&#148; below, not more
than 20% of the fair market value of a REIT&#146;s</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">assets can be composed
of securities of taxable REIT subsidiaries and stock of a taxable REIT
subsidiary is not a qualified asset for purposes of the 75% asset test.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The amount of interest
on related party debt a taxable REIT subsidiary may deduct is limited. Further,
a 100% excise tax applies to any interest payments by a taxable REIT subsidiary
to its affiliated REIT to the extent the interest rate is set above a
commercially reasonable level. A taxable REIT subsidiary is permitted to deduct
interest payments to unrelated parties without any such restrictions.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Internal Revenue
Code allows the Internal Revenue Service to reallocate costs between a REIT and
its taxable REIT subsidiary. Any deductible expenses allocated away from a
taxable REIT subsidiary would increase its tax liability, and the amount of
such increase would be subject to interest charges. Further, any amount by
which a REIT understates its deductions and overstates those of its taxable
REIT subsidiary will, subject to certain exceptions, be subject to a 100%
excise tax.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Affiliated REITs.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">We own, indirectly through the Operating Partnership, more
than 99% of the outstanding stock of Retail Property Trust, a Massachusetts
business trust, Chelsea Property Group,&nbsp;Inc., a Maryland corporation, and
Simon Kravco LLC, a Delaware limited liability company, each of which has
elected to be taxed as a REIT. Each of these subsidiaries must meet the same
tests discussed above that apply to us. Each of them may be subject to tax on
certain of its income as discussed above. See, &#147;&#151;Taxation of Simon
Property&#151;General.&#148; The failure of any or all of them to qualify as a REIT would
cause us to fail to qualify as a REIT because we would own more than 10% of the
voting securities and value of an issuer that was not a REIT, a qualified REIT
subsidiary or a taxable REIT subsidiary. As a result, each of these
subsidiaries must also satisfy the REIT tests that are discussed in this
section. We believe that each of these subsidiaries has satisfied those tests
and have been organized and operated in a manner that will permit it to qualify
as a REIT.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Income Tests.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">We must satisfy two gross income requirements annually to
maintain qualification as a REIT. First, in each taxable year, we must derive
directly or indirectly at least 75% of our gross income, excluding gross income
from prohibited transactions, from investments relating to real property or
mortgages on real property, including &#147;rents from real property,&#148; dividends
from other REITs (but not taxable REIT subsidiaries), and, in certain
circumstances, income from certain types of temporary investments. Second, in
each taxable year, we must derive at least 95% of our gross income, excluding
gross income from prohibited transactions, from these real property
investments, dividends, including dividends from taxable REIT subsidiaries,
interest and gain from the sale or disposition of stock or securities, or from
any combination of the foregoing. The term &#147;interest&#148; generally does not
include any amount received or accrued, directly or indirectly, if the determination
of the amount depends in whole or in part on the income or profits of any
person. However, an amount received or accrued generally will not be excluded
from the term &#147;interest&#148; solely by reason of being based on a fixed percentage
or percentages of receipts or sales.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rents
qualify as &#147;rents from real property&#148; in satisfying the gross income
requirements for a REIT described above only if the following conditions are
met:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the amount of rent must not be based in
whole or in part on the income or profits of any person. However, an amount
received or accrued generally will not be excluded from the term &#147;rents from
real property&#148; solely by reason of being based on a fixed percentage or
percentages of receipts or sales;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">except for rents received from a taxable
REIT subsidiary as discussed below, rents received from a tenant will not
qualify as &#147;rents from real property&#148; in satisfying the gross income tests if
the REIT, or an actual or constructive owner of 10% or more of the REIT,
actually or constructively owns, in the case of a corporate tenant, 10% or more
of the stock by vote or value of such tenant, and, in the case of any other
tenant, 10% or more of the profits or capital of such tenant;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">if rent is received from a taxable REIT
subsidiary with respect to any property, no more than 10% of the leased space
at the property may be leased to taxable REIT subsidiaries and related party
tenants and rents received from such property must be substantially comparable
to rents paid by other tenants, except related party tenants, of the REIT&#146;s
property for comparable space;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">if rent attributable to personal
property, leased in connection with a lease of real property, is greater than
15% of the total rent received under the lease, then the portion of rent
attributable to personal property will not qualify as &#147;rents from real
property;&#148; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">for rents received to qualify as &#147;rents
from real property,&#148; the REIT generally must not furnish or render services to
the tenants of the property, subject to a 1% de minimis exception, other than
through an independent contractor from whom the REIT derives no revenue or
through a taxable REIT subsidiary. The REIT may, however, directly perform
certain services that are &#147;usually or customarily rendered&#148; in connection with
the rental of space for occupancy only and are not otherwise considered &#147;rendered
to the occupant&#148; of the property.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
do not and will not, as the general partner of the Operating Partnership, permit
the Operating Partnership to:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">charge rent for any property that is
based in whole or in part on the income or profits of any person, except by
reason of being based on a percentage of receipts or sales, as described above;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">lease any property to a related party
tenant unless we determine that the income from such lease would not jeopardize
our status as a REIT;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">lease any property to a taxable REIT
subsidiary, unless we determine not more than 10% of the leased space at such
property is leased to related party tenants and our taxable REIT subsidiaries
and the rents received from such lease are substantially comparable to those
received from other tenants, except rent from related party tenants, for
comparable space;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">derive rental income attributable to
personal property, other than personal property leased in connection with the
lease of real property, the amount of which is less than 15% of the total rent
received under the lease; or</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">perform services considered to be
rendered to the occupant of the property, other than through an independent
contractor from whom we derive no revenue or through a taxable REIT subsidiary,
unless we determine that the income from such services would not jeopardize our
status as a REIT.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although members of the
Simon family may own up to a 10% interest in our tenants, the Simon family does
not currently own a sufficient interest to cause any of our tenants to become a
related party tenant with the exception of one small tenant in Circle Center
Mall in Indianapolis, Indiana. Income from a related party tenant does not
qualify in satisfying our 75% income test or our 95% income test. As previously
indicated, we will not lease property to any related party tenant unless we
determine that the income from such tenant would not jeopardize our status as a
REIT.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although the Operating
Partnership and other of our affiliates perform all development, construction
and leasing services for, and operate and manage, wholly-owned properties
directly without using an &#147;independent contractor,&#148; we believe that, in almost
all instances, the only services to be provided to lessees of these properties
are those usually or customarily rendered in connection with the rental of
space for occupancy only. To the extent any noncustomary services are provided,
such services shall generally, but not necessarily in all cases, be performed
by a taxable REIT subsidiary. In any event, we intend to limit the amounts we
receive for noncustomary services that may constitute &#147;impermissible tenant
service income&#148; from any one property to 1% or less of the total amount
collected from such property during the taxable year.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A
REIT is subject to a 100% excise tax on any rents it receives from tenants
receiving services from the REIT&#146;s taxable REIT subsidiary to the extent such
rents are above the amount that would be charged to tenants not receiving such
services, unless:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">the taxable REIT subsidiary provides a
substantial amount of services to third parties at the same prices offered to
tenants of the REIT;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">rents for comparable leased space at the
REIT&#146;s property received from tenants not receiving such services and leasing
at least 25% of the REIT&#146;s net leasable space are comparable to rents charged
to tenants who receive services from the taxable REIT subsidiary and charges
for such services are separately stated; or</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">income from the taxable REIT subsidiary
providing services to the REIT&#146;s tenants is at least 150% of the direct costs
of providing the services.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
we fail to satisfy one or both of the 75% or 95% gross income tests for any
taxable year, we may nevertheless qualify as a REIT for the year if we are
entitled to relief under certain provisions of the Internal Revenue Code.
Generally, the relief provisions would apply to us if:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">following our
identification of the failure to meet these tests for any taxable year, we file
a schedule with the IRS setting forth each item of our gross income for
purposes of the 75% or 95% gross income tests for such taxable year in
accordance with Treasury regulations to be issued; and</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">Our failure to meet
these tests was due to reasonable cause and not due to willful neglect.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is not possible to
state whether we would be entitled to the benefit of these relief provisions in
all circumstances. If these relief provisions do not apply to a particular set
of circumstances, we will not qualify as a REIT. As discussed above in &#147;&#151;Taxation
of Simon Property&#151;General,&#148; even if these relief provisions apply, and we
retain our status as a REIT, a tax would be imposed with respect to our excess
net income. We may not always be able to maintain compliance with the gross
income tests for REIT qualification despite periodic monitoring of our income.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Asset Tests.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">At the close of each quarter of our taxable year, we also
must satisfy three tests relating to the nature and diversification of our
assets. First, at least 75% of the value of our total assets must be
represented by real estate assets, including stock of other REITs, cash, cash
items and government securities. For purposes of this test, real estate assets
include stock or debt instruments that are purchased with the proceeds of a
stock offering or a long-term (at least five years) public debt offering, but
only for the one-year period beginning on the date we receive such proceeds.
Second, not more than 25% of our total assets may be represented by securities,
other than those securities includable in the 75% asset test. Third, not more
than 20% of the value of our total assets may be represented by securities of
one or more taxable REIT subsidiaries, and except with respect to taxable REIT
subsidiaries and qualified REIT subsidiaries, of the investments included in
the 25% asset class, the value of any one issuer&#146;s securities may not exceed 5%
of the value of our total assets, we may not own more than 10% of any one
issuer&#146;s outstanding voting securities and we may not own more than 10% of the
total value of any one issuer&#146;s outstanding securities other than certain
securities qualifying as &#147;straight debt&#148; and other excluded securities, as
described in the Internal Revenue Code, including, but not limited to, any loan
to an individual or an estate, any obligation to pay rents from real property
and any security issued by a REIT. Additionally, (1)&nbsp;our interest as a
partner in a partnership is not considered a security for purposes of applying
the 10% value test; (2)&nbsp;any debt instrument issued by a partnership (other
than straight debt or other excluded security) will not be considered a
security issued by the partnership if at least 75% of the partnership&#146;s gross
income is derived from sources that would qualify for the 75% REIT gross income
test, and (3)&nbsp;any debt instrument issued by a partnership (other than
straight debt or other excluded security) will not be considered a security
issued by the partnership to the extent of our interest as a partner in the
partnership.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not more than 20% of the
fair market value of a REIT&#146;s assets can be composed of securities of taxable
REIT subsidiaries and securities of taxable REIT subsidiaries are not real
estate assets for purposes of the 75% asset test. The value of the securities
of our taxable REIT subsidiaries does not exceed 20% of the fair market value
of our assets and more than 75% of our assets are represented by real estate
assets without treating the securities of our taxable REIT subsidiaries as real
estate assets.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After initially meeting
the asset tests at the close of any quarter, we will not lose our status as a
REIT for failure to satisfy the asset tests at the end of a later quarter
solely by reason of changes in asset values. If we fail to satisfy the asset tests
because we acquire securities or other property during a quarter, including an
increase in our interests in assets held, directly or indirectly, by the
Operating Partnership, we can cure this failure by disposing of sufficient
nonqualifying assets within 30&nbsp;days after the close of that quarter. We
believe we have maintained and will continue to maintain adequate records of
the value of our assets to ensure compliance with the asset tests and to take
such other actions within the 30&nbsp;days after the close of any quarter as
may be required to cure any noncompliance. If we fail to satisfy the 5% or 10%
asset tests described above after the 30 day cure period, we will be deemed to
have met such tests if the value of our non-qualifying assets (1)&nbsp;does not
exceed the lesser of (a)&nbsp;1% of the total value of our assets at the end of
the applicable quarter or (b)&nbsp;$10,000,000 and (2)&nbsp;we take such action
as is necessary for us to meet the asset test within (a)&nbsp;six months after
the last day of the quarter in which the failure to satisfy the asset tests is
discovered or (b)&nbsp;the period of time prescribed by Treasury regulations to
be issued. For violations due to reasonable cause and not willful neglect that
are in excess of the de minimis exception described above, we may avoid
disqualification as a REIT under any of the asset tests, after the 30 day cure
period, by taking steps including (1)&nbsp;meeting the asset test within (a)&nbsp;six
months after the last day of the quarter in which the failure to satisfy the
asset tests is discovered or (b)&nbsp;the period of time prescribed by Treasury
regulations to be issued, (2)&nbsp;paying a tax equal to the greater of (a)&nbsp;$50,000
or (b)&nbsp;the highest corporate tax rate multiplied by the net income
generated by the non-qualifying assets, and (3)&nbsp;disclosing certain
information to the IRS. If we do not meet the conditions of these relief
provisions, or if we fail to timely cure any noncompliance with the asset
tests, we would cease to qualify as a REIT.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Annual Distribution Requirements.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">To maintain qualification as a REIT, we are required to
distribute dividends, other than capital gain dividends, to our stockholders in
an amount at least equal to the difference between (1)&nbsp;the sum of 90% of
our &#147;REIT taxable income,&#148; computed without regard to the dividends paid
deduction and net capital gain, and 90% of our after-tax net income, if any,
from foreclosure property, and (2)&nbsp;the amount of certain items of noncash
income, <i>i.e.</i>,&nbsp;income
attributable to leveled stepped rents, original issue discount on purchase
money debt, or a like-kind exchange that is later determined to be taxable, in
excess of 5% of &#147;REIT taxable income.&#148; In addition, if we are allocated any
built-in gain as a result of the disposition during the restriction period of
any asset subject to the built-in gain rules, then we will be required to
distribute at least 90% of such built-in gain less the amount of tax we
incurred as a result of such gain.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dividends declared and
payable to stockholders of record in the last three months of any year must be
paid by the end of January&nbsp;of the year following the taxable year in which
the dividends were declared, unless they were declared before the due date of
our tax return for the taxable year in which they were declared. If they were
declared before such due date, whether declared in the last three months of the
year or otherwise, they must be distributed on or before the end of January&nbsp;of
the following taxable year, or, if later, the earlier of the first regular
dividend payment after the declaration or the close of the taxable year
following the taxable year to which they relate. The amount distributed must
not be preferential. This means that every stockholder of the class of stock to
which a distribution is made must be treated the same as every other
stockholder of that class, and no class of stock may be treated otherwise than
in accordance with its dividend rights as a class. We believe we have made and
will continue to make timely distributions sufficient to satisfy these annual
distribution requirements.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We expect that our REIT
taxable income will be less than our cash flow due to the allowance of depreciation
and other non-cash charges in computing REIT taxable income. Accordingly, we
anticipate that we will generally have sufficient cash or liquid assets to
satisfy the distribution requirements described above. However, from time to
time, we may not have sufficient cash or other liquid assets to meet these
distribution requirements due to timing differences between the actual receipt
of income and actual payment of deductible expenses, and the inclusion of
income and deduction of expenses in arriving at our taxable income. If these
timing differences occur, in order to meet the distribution requirements, we
may need to arrange for short-term, or possibly long-term, borrowings or need
to pay dividends in the form of taxable stock dividends. To the extent we
satisfy the distribution requirements but distribute less than 100% of the net
capital gain or 100% of our REIT taxable income, we will be subject to tax on
such income at regular corporate rates.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under certain
circumstances, we may be able to rectify a failure to meet the distribution
requirement for a year by paying &#147;deficiency dividends&#148; to stockholders in a
later year, which may be included in our deduction for dividends paid for the
earlier year. Thus, we may be able to avoid being taxed on amounts distributed
as deficiency dividends. However, we will be required to pay interest based
upon the amount of any deduction taken for deficiency dividends.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Furthermore, we would be
subject to a 4% excise tax on the excess of the required distribution over the
amounts actually distributed if we should fail to distribute during each
calendar year, or in the case of distributions with declaration and record
dates falling in the last three months of the calendar year, by the end of January&nbsp;immediately
following such year, at least the sum of 85% of our REIT ordinary income for
such year, 95% of our REIT capital gain income for the year and any
undistributed taxable income from prior periods. Any REIT taxable income and
net capital gain on which corporate income tax is imposed for any year is
treated as an amount distributed during that year for purposes of calculating
such tax.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Property Transfers.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Any gain we realize on the sale of any property held as
inventory or other property held primarily for sale to customers in the
ordinary course of business, including our share of any such gain realized by
the Operating Partnership, either directly or through its subsidiary
partnerships, will be treated as income from a prohibited transaction that is
subject to a 100% penalty tax. This prohibited transaction income may also
adversely affect our ability to satisfy the income tests for qualification as a
REIT. Under existing law, whether property is held as inventory or primarily
for sale to customers in the ordinary course of a trade or business is a
question of fact that depends on all the facts and circumstances surrounding
the particular transaction. The Operating Partnership intends to hold its
properties for investment with a view to long-term appreciation, to engage in the
business of acquiring, developing and owning its properties and to make
occasional sales of the properties as are consistent with the Operating
Partnership&#146;s investment objectives. However, the Internal Revenue Service may
successfully contend that some or all of the sales made by the Operating
Partnership or its subsidiaries are prohibited transactions. We would be
subject to the 100% penalty tax on our allocable share of the gains resulting
from any such sales.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Failure to Qualify</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If we fail to qualify
for taxation as a REIT in any taxable year, and the relief provisions described
above do not apply, we will be subject to tax, including any applicable
alternative minimum tax, on our taxable income at regular corporate rates.
Distributions to stockholders in any year in which we fail to qualify will not
be deductible by us and we will not be required to distribute any amounts to
our stockholders. As a result, our failure to qualify as a REIT would reduce
the cash available for distribution to our stockholders. In addition, if we
fail to qualify as a REIT, all distributions to stockholders will be taxable as
ordinary income to the extent of our current and accumulated earnings and
profits, and subject to certain limitations of the Internal Revenue Code, corporate
distributees may be eligible for the dividends received deduction and
non-corporate stockholders may be eligible for reduced rates of tax on </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">dividend distributions.
Unless entitled to relief under specific statutory provisions, we will also be
disqualified from taxation as a REIT for the four taxable years following the
year during which we lost our qualification. It is not possible to state
whether in all circumstances we would be entitled to this statutory relief.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax Aspects of the
Operating Partnership and the Joint Ventures</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">General.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">All of our income-producing properties are held directly or
indirectly through the Operating Partnership. In addition, the Operating
Partnership holds certain of its investments indirectly through joint ventures.
In general, partnerships are &#147;pass-through&#148; entities which are not subject to
federal income tax. Rather, partners are allocated their proportionate shares
of the items of income, gain, loss, deduction and credit of a partnership, and
are potentially subject to tax thereon, without regard to whether the partners
receive a distribution from the partnership. We include in our income our
proportionate share of the foregoing partnership items for purposes of the
various REIT income tests and in the computation of our REIT taxable income.
Moreover, for purposes of the REIT asset tests, we will include our proportionate
share of assets held by the Operating Partnership and joint ventures. See &#147;&#151;Taxation
of Simon Property.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Entity Classification.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Our interests in the Operating Partnership and its
subsidiary partnerships, including joint ventures, involve special tax considerations,
including the possibility of a challenge by the Internal Revenue Service of the
status of the Operating Partnership or a subsidiary partnership as a
partnership as opposed to an association taxable as a corporation for federal
income tax purposes. If the Operating Partnership or a subsidiary partnership
were treated as an association, it would be taxable as a corporation and
therefore be subject to an entity-level tax on its income. In such a situation,
the character of our assets and items of gross income would change and preclude
us from satisfying the asset tests and possibly the income tests. See &#147;&#151;Taxation
of Simon Property&#151;Asset Tests&#148; and &#147;&#151;Income Tests&#148;. This, in turn, would
prevent us from qualifying as a REIT. See &#147;&#151;Failure to Qualify&#148; for a
discussion of the effect of our failure to meet these tests for a taxable year.
In addition, a change in the Operating Partnership&#146;s or a partnership&#146;s status
for tax purposes might be treated as a taxable event. If so, we might incur a
tax liability without any related cash distributions.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Treasury Regulations
that apply for tax periods beginning on or after January&nbsp;1, 1997 provide
that a domestic business entity not otherwise classified as a corporation and
which has at least two members will be taxed as a partnership for federal
income tax purposes unless it elects to be treated as a corporation or it was
in existence prior to January&nbsp;1, 1997, and it reported its income as a
corporation under the entity classification Treasury Regulations in effect prior
to this date. In addition, such an entity which did not exist, or did not claim
a classification, prior to January&nbsp;1, 1997, will be classified as a
partnership for federal income tax purposes unless it elects otherwise. The
Operating Partnership and each of its subsidiary partnerships have claimed
classification as a partnership under the final Treasury Regulations, and, as a
result, we believe such partnerships will be classified as partnerships for
federal income tax purposes.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Treasury Regulations
also provide that certain specified foreign entities are taxed as corporations.
Foreign entities with two or more members are taxed as partnerships if (1)&nbsp;at
least one of the members has unlimited liability for the liabilities of the
entity or (2)&nbsp;the entity elects to be taxed as a partnership. Each foreign
entity having two or more members in which we are treated as an owner for tax
purposes has elected or will elect to be taxed as a partnership or as a taxable
REIT subsidiary. Certain foreign entities with only one member are also taxed
as corporations unless the entity elects to have its existence as separate from
its member disregarded for tax purposes. A foreign entity with a single member
is also disregarded for tax purposes if the member has unlimited liability for
such entity&#146;s debts. Each eligible foreign entity in which we are the only
member has elected or will elect to be treated as a disregarded entity.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We intend to elect to
treat each foreign entity in which we acquire an interest as a partnership, a
disregarded entity or a taxable REIT subsidiary. However, on occasion, our
foreign partners have acquired or organized additional foreign entities or
changed the legal status of existing foreign entities in which we have an
interest without informing us. As a result, we have been forced to seek
extensions of time from the IRS to file the appropriate elections. Each of the
requested extensions has been granted by the IRS. We believe that we have
procedures in place to prevent the recurrence of similar problems. However, if
we subsequently fail to file an appropriate election with respect to any entity
in which we directly or indirectly own an interest, there can be no assurance
that the IRS would grant an extension of time to file an election with respect
to those entities. In such event, the failure to obtain an extension of time
could result in termination of our REIT status.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Allocations of Operating Partnership Income,
Gain, Loss and Deduction.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">A partnership is not a taxable entity for federal income tax
purposes. Rather, a partner is required to take into account its allocable
share of a partnership&#146;s income, gains, losses, deductions and credits for any
taxable year of the partnership ending within or with the taxable year of the
partner, without regard to whether the partner has received or will receive any
distributions from the partnership. Although a partnership agreement will
generally determine the allocation of income and losses among partners, such
allocations will be disregarded for tax purposes under section&nbsp;704(b)&nbsp;of
the Internal Revenue Code if they do not comply with the provisions of section&nbsp;704(b)&nbsp;of
the Internal Revenue Code and the Treasury Regulations promulgated thereunder
as to substantial economic effect.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If an allocation is not
recognized for federal income tax purposes because it does not have substantial
economic effect, the item subject to the allocation will be reallocated in
accordance with the partners&#146; interests in the partnership, which will be
determined by taking into account all of the facts and circumstances relating
to the economic arrangement of the partners with respect to such item. The
allocations of taxable income and loss of the Operating Partnership and
subsidiary partnerships are intended to comply with the requirements of
section&nbsp;704(b)&nbsp;of the Internal Revenue Code and the Treasury
Regulations promulgated thereunder.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taxation of Taxable U.S.
Stockholders</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As
used below, the term &#147;U.S. stockholder&#148; means a holder of shares of our common
or preferred stock who, for United States federal income tax purposes, is:</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">a citizen or resident of the United
States;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">a corporation, partnership, or other
entity created or organized in or under the laws of the United States or of any
state thereof or in the District of Columbia, unless, in the case of a
partnership, Treasury Regulations provide otherwise;</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">an estate the income of which is subject
to United States federal income taxation regardless of its source; or</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">a trust whose administration is subject
to the primary supervision of a United States court and which has one or more
United States persons who have the authority to control all substantial
decisions of the trust.</font></p>

<p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the
preceding sentence, to the extent provided in Treasury Regulations, certain
trusts in existence on August&nbsp;20, 1996, and treated as United States
persons prior to this date that elect to continue to be treated as United
States persons, shall also be considered U.S. stockholders.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distributions Generally.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">As long as we qualify as a REIT, distributions out of our
current or accumulated earnings and profits, other than capital gain dividends
discussed below, will constitute dividends taxable to our taxable U.S.
stockholders as ordinary income. These distributions will not be</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>

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<div>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">eligible for the
dividends-received deduction in the case of U.S. stockholders that are corporations.
Individual U.S. stockholders may be eligible for reduced rates of tax to the
extent that these distributions constitute &#147;qualified dividend income&#148;. Such
amounts will be specified in a written notice to stockholders. However, we do
not expect a significant portion of the distributions will be eligible for
treatment as &#147;qualified dividend income.&#148;&#160;
For purposes of determining whether distributions to holders of common
stock are out of current or accumulated earnings and profits, our earnings and
profits will be allocated first to the outstanding preferred stock and then to
the common stock.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To the extent that we
make distributions in excess of our current and accumulated earnings and
profits, these distributions will be treated first as a tax-free return of
capital to each U.S. stockholder. This treatment will reduce the adjusted
basis, but not below zero, which each U.S. stockholder has in his shares of
stock for tax purposes by the amount of the distribution in excess of current
and accumulated earnings and profits. Such distributions in excess of a U.S.
stockholder&#146;s adjusted basis in its shares will be taxable as capital gains,
provided that the shares have been held as a capital asset, and will be taxable
as long-term capital gain if the shares have been held for more than one year.
Dividends declared in October, November, or December&nbsp;of any year and
payable to a stockholder of record on a specified date in any of these months
shall be treated as both paid by us and received by the stockholder on December&nbsp;31
of that year, provided we actually pay the dividend on or before January&nbsp;31
of the following calendar year. Stockholders may not include in their own
income tax returns any of our net operating losses or capital losses.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Capital Gain Dividends.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Dividends to U.S. stockholders that are properly designated
by us as capital gain dividends will be treated as long-term capital gain to
the extent they do not exceed our actual net capital gain for the taxable year
without regard to the period for which the stockholder has held its stock.
Dividends designated as capital gains will be taxed to each individual at a
rate up to 25% depending on the tax characteristics of the assets which
produced such gain and such individual&#146;s situation. Corporate stockholders,
however, may be required to treat up to 20% of certain capital gain dividends
as ordinary income.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We may elect to retain
and pay income tax on some or all of our undistributed net capital gains, in
which case our stockholders will include such retained amount in their income.
In that event, the stockholders would be entitled to a tax credit or refund in
the amount of the tax we paid on the undistributed gain allocated to the
stockholders, and the stockholders would be entitled to increase their tax basis
by the amount of undistributed capital gains allocated to such stockholders
reduced by the amount of the credit.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.0pt;"><font style="font-style:italic;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">Passive Activity Losses and Investment Interest
Limitations.</font></i></font><i><font face="Times New Roman" style="font-style:italic;">  </font></i><font face="Times New Roman">Dividends
that Simon Property pays and gain arising from the sale or exchange by a U.S.
stockholder of shares will not be treated as passive activity income. As a
result, U.S. stockholders generally will not be able to apply any &#147;passive
losses&#148; against this income or gain. Dividends, to the extent they do not
constitute a return of capital, generally will be treated as investment income
for purposes of computing the investment interest limitation. Gain arising from
the sale or other disposition of shares, however, will not be treated as
investment income except to the extent the stockholder elects to reduce the
amount of his net capital gain eligible for the capital gains rate.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dispositions of Shares</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt 10.0pt;page-break-after:avoid;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin:0in 0in .0001pt;text-indent:20.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A U.S. stockholder will
recognize gain or loss on the sale or exchange of shares of stock to the extent
of the difference between the amount realized on such sale or exchange and the
holders&#146; adjusted tax basis in such shares. Such gain or loss generally will
constitute long-term capital gain or loss if the holder has held such shares
for more than one year. Individual taxpayers are generally subject to a maximum
tax rate of 15% on long-term capital gain, but stockholders subject to the
alternative minimum tax may be taxed at a rate of 25% on some or all of their
long-term capital gain. Losses incurred on the sale or exchange of shares of
stock held for one year or less, after applying certain holding period rules,
however, will generally</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">be deemed long-term capital
loss to the extent of any long-term capital gain dividends received by the U.S.
stockholder and undistributed capital gains allocated to such U.S. stockholder
with respect to such shares.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Taxation
of Tax-Exempt U.S. Stockholders</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Internal Revenue Service has ruled that amounts distributed as
dividends by a REIT do not constitute unrelated business taxable income when
received by a tax-exempt pension trust and certain other tax-exempt entities.
Based on that ruling, provided that a tax-exempt stockholder (except certain
tax-exempt stockholders described below), has not held its shares as &#147;debt
financed property&#148; within the meaning of the Internal Revenue Code and the
shares are not otherwise used in an unrelated trade or business, dividend
income from us will not be unrelated business taxable income to a tax-exempt
stockholder. Generally, &#147;debt financed property&#148; means shares of stock, the
acquisition of which was financed through a borrowing by the tax-exempt
stockholder. Similarly, income from the sale of shares will not constitute
unrelated business taxable income unless a tax-exempt stockholder has held its
shares as &#147;debt financed property&#148; within the meaning of the Internal Revenue
Code or has used the shares in its unrelated trade or business.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For tax-exempt stockholders which are social clubs, voluntary employee
benefit associations, supplemental unemployment benefit trusts, and qualified
group legal services plans exempt from federal income taxation under Internal
Revenue Code Section&nbsp;501(c)(7), (c)(9), (c)(17) and (c)(20), respectively,
income from an investment in our shares will constitute unrelated business
taxable income unless the organization is able to properly deduct amounts set
aside or place the dividend in reserve in accordance with the provisions of the
Code applicable to those organizations. These prospective investors should
consult their own tax advisors concerning these &#147;set aside&#148; and reserve
requirements.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding the above, however, a portion of the dividends paid by
a &#147;pension held REIT&#148; are treated as unrelated business taxable income as to
certain types of trusts which hold more than 10% (by value) of the interests in
the REIT. A REIT will not be a &#147;pension held REIT&#148; if it is not &#147;predominantly
held&#148; by tax-exempt pension trusts. We do not anticipate that we will be
predominantly held by tax-exempt pension trusts within the meaning of the
Internal Revenue Code and accordingly, believe that dividends we pay to
tax-exempt pension trusts should not be treated as unrelated business taxable
income.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Special
Tax Considerations For Foreign Stockholders</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rules&nbsp;governing United States federal income taxation of
non-U.S. stockholders, including non-resident alien individuals, foreign
corporations, foreign partnerships and foreign trusts and estates, are complex,
and the following discussion is intended only as a summary of such rules.
Prospective non-U.S. stockholders should consult with their own tax advisors to
determine the impact of federal, state and local income tax laws on an
investment in our stock, including any reporting requirements, as well as the
tax treatment of such an investment under their home country laws.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In general, non-U.S. stockholders will be subject to regular United
States federal income tax with respect to their investment in us if such
investment is &#147;effectively connected&#148; with the non-U.S. stockholder&#146;s conduct
of a trade or business in the United States. A corporate non-U.S. stockholder
that receives income that is, or is treated as, effectively connected with a
United States trade or business may also be subject to the branch profits tax
under section&nbsp;884 of the Internal Revenue Code, which is payable in
addition to regular United States corporate income tax. The following
discussion will apply to non-U.S. stockholders whose investment in us is not so
effectively connected. We expect to withhold United States income tax, as described
below, on the gross amount of any distributions paid to a non-U.S. stockholder
unless (1)&nbsp;the non-U.S. stockholder files an Internal Revenue Service Form&nbsp;W-8ECI
with us claiming that the distribution is &#147;effectively connected&#148; or (2)&nbsp;certain
other exceptions apply.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A distribution that is not attributable to gain from the sale or
exchange by us of a United States real property interest and that is not
designated by us as a capital gain dividend will be treated as an ordinary
income dividend to the extent made out of current or accumulated earnings and
profits. Generally, an ordinary income dividend will be subject to tax at the
rate of 30% of the gross amount of the distribution unless such tax is reduced
or eliminated by an applicable tax treaty. A distribution in cash in excess of
our earnings and profits will be treated first as a return of capital that will
reduce a non-U.S. stockholder&#146;s basis in its shares of our stock, but not below
zero, and then as gain from the disposition of such shares, the tax treatment
of which is described under the rules&nbsp;discussed below with respect to
dispositions of shares. We are required to withhold from distributions to
non-U.S. stockholders, and to remit to the Internal Revenue Service, 30% of the
amount of ordinary dividends unless such percentage is reduced or eliminated by
an applicable tax treaty and the stockholder satisfies the applicable
certification and other requirements of the treaty. A distribution in excess of
our earnings and profits may be subject to 30% dividend withholding if, at the
time of the distribution, it cannot be determined whether the distribution will
be in an amount in excess of our current or accumulated earnings and profits.
Any amount not designated as a capital gain dividend or return of basis will be
subject to the tax treatment and withholding described below.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distributions attributable to gains from sales of real property
interests by a REIT are not subject to the Foreign Investment in Real Property
Tax Act of 1980 (&#147;FIRPTA&#148;) if the non-U.S.&nbsp;stockholder did not own more
than 5% of the class of stock with respect to which the distribution was made
at any time during the taxable year in which the distribution was made.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Distributions that are attributable to gain from the sale or exchange
of a United States real property interest will be taxed to a non-U.S.
stockholder under FIRPTA if such non-U.S. stockholder owns more than 5% of the
class of stock with respect to which such distribution was made at any time
during the same taxable year. Under FIRPTA, distribution amounts not subject to
the tax treatment described in the preceding paragraph are taxed to a non-U.S.
stockholder as if such distributions were gains &#147;effectively connected&#148; with a
United States trade or business. Accordingly, a non-U.S. stockholder will be
taxed at the normal capital gain rates applicable to a U.S. stockholder on such
amounts, subject to any applicable alternative minimum tax and a special
alternative minimum tax in the case of nonresident alien individuals.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will be required to withhold from distributions subject to FIRPTA,
and remit to the Internal Revenue Service, 35% of designated capital gain
dividends, or, if greater, 35% of the amount of any distributions that could be
designated as capital gain dividends. In addition, if we designate prior
distributions as capital gain dividends, subsequent distributions, up to the
amount of such prior distributions not withheld against, will be treated as
capital gain dividends for purposes of withholding. It should be noted that the
35% withholding tax rate on capital gain dividends currently corresponds to the
maximum income tax rate applicable to corporations, but it is higher than the
maximum rate on capital gains of individuals. It is not clear how these
withholding obligations will apply to non-U.S.&nbsp;stockholders who own 5% or
less of the class of stock with respect to when the distributions were made but
subsequently acquired more than 5% of such stock during the same taxable year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the amount we withhold with respect to a distribution exceeds the
non-U.S. stockholder&#146;s tax liability, the non-U.S. stockholder may file for a
refund of such excess from the Internal Revenue Service.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless our shares of stock constitute a &#147;United States real property
interest&#148; within the meaning of FIRPTA or are effectively connected with a U.S.
trade or business, a sale of such stock by a non-U.S. stockholder generally
will not be subject to United States federal income taxation. Our stock will
not constitute a United States real property interest if we are a &#147;domestically
controlled REIT.&#148; A domestically controlled REIT is a REIT in which at all
times during a specified testing period less than 50% in value of its shares is
held directly or indirectly by non-U.S. stockholders. We believe that we are a
domestically controlled REIT, and therefore that the sale of our stock will not
be subject to taxation under</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FIRPTA. However, because our
common stock and several classes of preferred stock is publicly traded, we
cannot assure you that we are or will continue to be a domestically controlled
REIT. Notwithstanding the foregoing, capital gain not subject to FIRPTA will be
taxable to a non-U.S. stockholder if the non-U.S. stockholder is a nonresident
alien individual who is present in the United States for 183&nbsp;days or more
during the taxable year and certain other conditions apply, in which case the
nonresident alien individual will be subject to a 30% tax on such individual&#146;s
capital gains. If we did not constitute a domestically controlled REIT, a
non-U.S. stockholder&#146;s sale of our stock would be subject to tax under FIRPTA
as a sale of a United States real property interest if the stock were &#147;regularly
traded&#148; as defined by applicable Treasury Regulations on an established
securities market, <i>e.g.</i>, the
New&nbsp;York Stock Exchange, on which the shares of our common stock and
certain classes of our preferred stock are listed and if the selling
stockholder&#146;s interest in us constitutes 5% or less ownership. If the gain on
the sale of our stock were subject to taxation under FIRPTA, the non-U.S.
stockholder would be subject to the same treatment as a U.S. stockholder with
respect to such gain, subject to applicable alternative minimum tax and a
special alternative minimum tax in the case of nonresident alien individuals.
In any event, a purchaser of our stock from a non-U.S. stockholder will not be
required under FIRPTA to withhold on the purchase price if the purchased shares
are &#147;regularly traded&#148; on an established securities market or if we are a
domestically controlled REIT. Otherwise, under FIRPTA, the purchaser of stock
may be required to withhold 10% of the purchase price and remit such amount to
the Internal Revenue Service.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Information
Reporting Requirement And Backup Withholding Tax</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We will report to our U.S. stockholders and the Internal Revenue
Service the amount of distributions paid during each calendar year and the
amount of tax withheld, if any. Under certain circumstances, U.S. stockholders
may be subject to backup withholding. Backup withholding will apply only if the
holder</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160; fails to furnish its taxpayer
identification number, which, for an individual, would be his or her Social
Security number,</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160; furnishes an incorrect taxpayer
identification number,</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160; is notified by the Internal Revenue Service
that it has failed properly to report payments of interest and dividends, or</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-15.85pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>under certain
circumstances, fails to certify, under penalty of perjury, that it has
furnished a correct taxpayer identification number and has not been notified by
the Internal Revenue Service that it is subject to backup withholding for
failure to report interest and dividend payments.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Backup withholding will not
apply with respect to payments made to certain exempt recipients, such as
corporations and tax-exempt organizations. U.S. stockholders should consult
their own tax advisors regarding their qualification for exemption from backup
withholding and the procedure for obtaining such an exemption. Backup
withholding is not an additional tax. Rather, the amount of any backup
withholding with respect to a payment to a U.S. stockholder will be allowed as
a credit against such U.S. stockholder&#146;s United States federal income tax
liability and may entitle such U.S. stockholder to a refund, provided that the
required information is furnished to the Internal Revenue Service.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additional issues may arise pertaining to information reporting and
backup withholding with respect to non-U.S. stockholders. For example, we may
be required to withhold a portion of capital gain distributions to any
stockholders who fail to certify their foreign status to us on Form&nbsp;W-8BEN.
Non-U.S. stockholders should consult their tax advisors with respect to any
such information reporting and backup withholding requirements.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p>

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</div>
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<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Possible
Federal Tax Developments</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The rules&nbsp;dealing with federal income taxation are constantly
under review by the Internal Revenue Service, the Treasury Department and
Congress. New federal tax legislation or other provisions may be enacted into
law or new interpretations, rulings or Treasury Regulations could be adopted,
all of which could affect the taxation of the Companies and their stockholders.
No prediction can be made as to the likelihood of passage of any new tax
legislation or other provisions either directly or indirectly affecting us or
our stockholders. Consequently, the tax treatment described herein may be
modified prospectively or retroactively by legislative action.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LEGAL MATTERS<a name="LegalMatters_063338"></a></font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless otherwise specified in a prospectus supplement, the validity of
the securities offered hereby and certain federal income tax matters will be
passed upon for us by Baker&nbsp;&amp; Daniels LLP, Indianapolis, Indiana and
for any underwriters, dealers or agents by counsel named in the applicable
prospectus supplement.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXPERTS<a name="Experts_063418"></a></font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ernst&nbsp;&amp; Young LLP, independent registered public accounting
firm, has audited our consolidated financial statements and schedule
incorporated by reference or included in our Annual Report on Form&nbsp;10-K
for the year ended December&nbsp;31, 2005 and management&#146;s report on the
effectiveness of our internal control over financial reporting as of December&nbsp;31,
2005 as set forth in their reports, which are incorporated by reference in this
prospectus and elsewhere in this registration statement. The financial
statements and schedule and management&#146;s assessment are incorporated by
reference in reliance on Ernst&nbsp;&amp; Young LLP&#146;s reports, given on their
authority as experts in accounting and auditing.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DISCLOSURE OF COMMISSION POSITION ON
INDEMNIFICATION<a name="DisclosureOfCommissionPositionOnI_063430"></a></font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FOR SECURITIES ACT LIABILITIES</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to our charter and bylaws, we will indemnify any of our officers
or directors who is made or threatened to be made a party to any action, suit
or proceeding by reason of the fact that he or she was an officer or director
to the fullest extent permitted by Delaware law. Insofar as indemnification for
liabilities arising under the Securities Act may be permitted to directors,
officers and persons controlling the registrant pursuant to the foregoing
provisions, we have been informed that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is therefore unenforceable.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;"><a href="#TableOfContents" title="Click to go to Table of Contents">Table of Contents</a></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FORWARD-LOOKING STATEMENTS MAY&nbsp;PROVE
INACCURATE<a name="ForwardlookingStatementsMayproveI_063439"></a></font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This prospectus may contain or incorporate forward-looking statements
within the meaning of Section&nbsp;27A of the Securities Act of 1933 and Section&nbsp;21E
of the Securities Exchange Act of 1934. You can identify these forward-looking
statements by our use of the words &#147;believes,&#148; &#147;anticipates,&#148; &#147;plans,&#148; &#147;expects,&#148;
&#147;may,&#148; &#147;will,&#148; &#147;intends,&#148; &#147;estimates&#148; and similar expressions, whether in the
negative or affirmative. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we can give no
assurance that our expectations will be attained, and it is possible that our
actual results may differ materially from those indicated by these
forward-looking statements due to a variety of risks and uncertainties. Those
risks and uncertainties incidental to the ownership and operation of commercial
real estate include, but are not limited to: national, international, regional
and local economic climates, competitive market forces, changes in market rental
rates, trends in the retail industry, the inability to collect rent due to the
bankruptcy or insolvency of tenants or otherwise, risks associated with
acquisitions, the impact of terrorist activities, environmental liabilities,
maintenance of REIT status, the availability of financing, changes in market
rates of interest, and exchange rates for foreign currencies. We have included
important factors in the cautionary statements contained or incorporated in
this prospectus, particularly under the heading &#147;Risk Factors&#148; in our Annual
Report on Form&nbsp;10-K, that we believe could cause our actual results to
differ materially from the forward-looking statements that we make. We do not
intend to update information contained in any forward-looking statement we make.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INCORPORATION OF INFORMATION WE FILE WITH THE
SEC<a name="IncorporationOfInformationWeFileW_063449"></a></font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The SEC allows us to &#147;incorporate by reference&#148; the information we file
with them, which means:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160; incorporated
documents are considered part of the prospectus;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160; we can
disclose important information to you by referring you to those documents; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 34.55pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>information that we file with the SEC will
automatically update and supersede the&nbsp;information in this prospectus and
any information that was previously incorporated in this prospectus.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our Exchange Act filing number is 1-14469.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information incorporated by reference is considered to be part of
this prospectus and later information that we file with the SEC will
automatically update and supersede this information. We incorporate by
reference the following documents and any future filings we make with the SEC
under Sections&nbsp;13(a), 13(c)&nbsp;14 or 15(d)&nbsp;of the Exchange Act
(other than documents or information deemed to have been furnished and not
filed in accordance with the SEC rules) until we have sold all of the
securities to which this prospectus relates or the offering is otherwise
terminated:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160; Annual
Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2005, as amended
by the Form&nbsp;10-K/A filed March&nbsp;17, 2006;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font>&#160;&#160;&#160;&#160; Current
Report on Form&nbsp;8-K filed February&nbsp;6, 2006; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 34.55pt;text-indent:-.2in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The description of the shares of common
stock contained in the Registration Statement on Form&nbsp;8-A/A filed on September&nbsp;24,
1998, including any amendment or report filed for the purpose of updating such
description.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:20.15pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To receive a free copy of any of the documents incorporated by
reference in this prospectus (other than exhibits, unless they are specifically
incorporated by reference in the documents), call or write us at the following
address:&#160; Simon Property Group, 115 West
Washington Street, Suite&nbsp;15 East, Indianapolis, IN&nbsp;46204, Attention:
Investor Relations (317/685-7330). During 2006, we will be moving our
headquarters to 225 West Washington Street, Indianapolis, IN&nbsp;46204.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>

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MB((+N($KN(UX#8A;N(8+N(5;B(WHMW]+N(8KN9#[MXR+N)?KN(PKN8O;N)8;
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`
end
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</DOCUMENT>
</SUBMISSION>
