Document:

Registration Rights Agreement

 EXHIBIT 4.3 
  
 EXECUTION COPY 
  
 DELTA AIR LINES, INC. 
  
 2 7/8% Convertible
Senior Notes due 2024 
  
 REGISTRATION RIGHTS
AGREEMENT 
  
 February 6, 2004 
  
 Morgan Stanley & Co. Incorporated 
 1585 Broadway 
 New York, New York 10036 
  
 Ladies and Gentlemen: 
  
 Delta Air Lines, Inc., a Delaware corporation (the “Company”), proposes to issue and sell (such issuance
and sale, the “Initial Placement”) to Morgan Stanley & Co. Incorporated (the “Initial Purchaser”), upon the terms set forth in a purchase agreement, dated February 2, 2004 (the “Purchase
Agreement”), $325,000,000 aggregate principal amount, plus an option (the “Option”) to purchase up to an additional $65,000,000 aggregate principal amount, of its 2 7/8% Convertible Senior Notes due 2024 (the “Securities”). The Securities will be convertible into shares of Common Stock (as defined
herein), at the conversion rate set forth in the Offering Memorandum (as defined herein), as the same may be adjusted from time to time pursuant to the Indenture (as defined herein). As an inducement to you to enter into the Purchase Agreement and
in satisfaction of a condition to your obligations thereunder, the Company agrees with you, (i) for your benefit and (ii) for the benefit of the Holders (as defined herein) from time to time of the Securities and the shares of Common Stock issuable
upon conversion of the Securities, as follows: 
  
 1.        Definitions.    Capitalized terms used herein without definition shall have the respective meanings set forth in the Purchase Agreement. As used in this Agreement,
the following capitalized terms shall have the following meanings: 
  
 “Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  
 “Affiliate” of any specified person means any other person, directly or indirectly, controlling or controlled by or under direct or
indirect common control with such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control
with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person whether through the ownership of voting securities or by
agreement or otherwise. 
  

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 “Business Day” has the meaning set forth in the Indenture. 
  
 “Closing Date” means February 6, 2004. 
  
 “Common Stock” means the common stock, par value $1.50 per
share, of the Company, as it exists on the date of this Agreement and any other shares of capital stock or other securities of the Company into which such Common Stock may be reclassified or changed, together with any and all other securities which
may from time to time be issuable upon conversion of Securities. 
  
 “Company” has the meaning set forth in the preamble hereto. 
  
 “Damages Payment Date” means, with respect to the Securities means each Interest Payment Date under the Indenture, and each February 18 and August 18 in the case of the shares of Common Stock issuable
upon conversion of the Securities. 
  
 “DTC” has
the meaning set forth in the Indenture. 
  
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  
 “Holder” means a person who is a holder or beneficial owner of any Securities or shares of Common Stock issuable upon conversion of
Securities; provided that, unless otherwise expressly stated herein, only registered holders of Securities or Common Stock issued on conversion thereof shall be counted for purposes of calculating any proportion of holders entitled to take
any action or give notice pursuant to this Agreement. 
  
 “Holder Information” with respect to any Holder means information with respect to such Holder required to be included in any Shelf Registration Statement or the related Prospectus pursuant to the Act and which information
is included therein in reliance upon and in conformity with information furnished to the Company in writing by such Holder for inclusion therein. 
  
 “Indenture” means the Indenture relating to the Securities, dated February 6, 2004 between the Company and The Bank of New York Trust
Company, N.A., as trustee, as the same may be amended from time to time in accordance with the terms thereof. 
  
 “Initial Placement” has the meaning set forth in the preamble hereto. 
  
 “Initial Purchaser” has the meaning set forth in the preamble hereto. 
  
 “Interest Payment Date” shall mean February 18 and August 18
of each year, beginning August 18, 2004. 
  
 “Liquidated
Damages” has the meaning set forth in Section 2(e) hereof. 
  
 “Losses” has the meaning set forth in Section 5(d) hereof. 
  

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 “Majority Holders” means the Holders of a majority of the then outstanding aggregate
principal amount of Securities being registered under a Shelf Registration Statement; provided that Holders of the shares of Common Stock issued upon conversion of Securities shall be deemed to be Holders of the aggregate principal amount of
Securities from which such Common Stock was converted; and provided, further, that Securities or shares of Common Stock which have been sold or otherwise transferred pursuant to the Shelf Registration Statement shall not be included in
the calculation of Majority Holders. 
  
 “NASD”
has the meaning set forth in Section 3(i) hereof. 
  
 “NASD Rules” means the rules and regulation promulgated by the NASD. 
  
 “Notice and Questionnaire” means a Selling Securityholder Notice and Questionnaire substantially in the form of Annex A to the Offering Memorandum. 
  
 “Notice Holder” shall mean, on any date, any Holder of
Transfer Restricted Securities that has delivered a completed and signed Notice and Questionnaire to the Company on or prior to such date. 
  
 “Offering Memorandum” means the Offering Memorandum as defined in the Purchase Agreement. 
  
 “Option” has the meaning set forth in the preamble hereto.

  
 “Person” has the meaning set forth in the
Indenture. 
  
 “Prospectus” means the prospectus
included in any Shelf Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A under the Act),
as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Securities or shares of Common Stock issuable upon conversion thereof covered by such Shelf Registration Statement, and all
amendments and supplements to such prospectus, including all documents incorporated or deemed to be incorporated by reference in such prospectus. 
  
 “Purchase Agreement” has the meaning set forth in the preamble hereto. 
  
 “Record Holder” means (i) with respect to any Damages Payment Date which occurs on an Interest Payment
Date, each person who is registered on the books of the registrar as the holder of Securities at the close of business on the record date with respect to such Interest Payment Date and (ii) with respect to any Damages Payment Date relating to the
shares of Common Stock issuable upon conversion thereof, each person who registered on the books of the transfer agent is a holder such Common Stock at the close of business on February 3 or August 3 immediately preceding such Damages Payment Date.

  
 “Registration Default” has the meaning set
forth in Section 2(e) hereof. 
  
 “Rule 144”
means Rule 144 under the Act (or any similar provision then in force). 
  

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 “Rule 144A” means Rule 144A under the Act (or any successor provision promulgated by the
SEC). 
  
 “Rule 144(k)” means Rule 144(k) under
the Act (or any successor provision promulgated by the SEC). 
  
 “SEC” means the Securities and Exchange Commission. 
  
 “Securities” has the meaning set forth in the preamble hereto. 
  
 “Shelf Registration” means a registration effected pursuant to Section 2 hereof. 
  
 “Shelf Registration Period” has the meaning set forth in
Section 2(c) hereof. 
  
 “Shelf Registration
Statement” means any “shelf” registration statement of the Company filed pursuant to the provisions of Section 2 hereof which covers the Securities and the shares of Common Stock issuable upon conversion thereof, as applicable, on
Form S-3 or on another appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all documents incorporated or deemed to be incorporated by reference therein. 
  
 “Suspension Period” has the meaning set forth in Section
2(d) hereof. 
  
 “Transfer Restricted Securities”
means each Security and each share of Common Stock issuable upon conversion thereof (and any security issued with respect thereto upon any stock dividend, split or similar event) until the earliest of the date on which such Security or share of
Common Stock, or any security issued with respect thereto upon any stock dividend, split or similar event, as the case may be, (i) has been transferred pursuant to a Shelf Registration Statement or another registration statement covering such
Security or share of Common Stock which has been filed with the SEC pursuant to the Act, in either case after such registration statement has become effective and while such registration statement is effective under the Act, (ii) has been
transferred pursuant to Rule 144 (or any similar provision then in force) or (iii) may be sold or transferred pursuant to Rule 144(k) (or any successor provision promulgated by the SEC). 
  
 “Trustee” means the trustee with respect to the Securities under the Indenture. 
  
 All references in this Agreement to financial statements and schedules and
other information which is “contained,” “included,” or “stated” in the Shelf Registration Statement, any preliminary Prospectus or Prospectus (and all other references of like import) shall be deemed to mean and include
all such financial statements and schedules and other information which is incorporated or deemed to be incorporated by reference in such Shelf Registration Statement, preliminary Prospectus or Prospectus, as the case may be; and all references in
this Agreement to amendments or supplements to the Shelf Registration Statement, any preliminary Prospectus or Prospectus shall be deemed to mean and include any document filed with the SEC under the Exchange Act, after the date of such Shelf
Registration Statement, preliminary 

  

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Prospectus or Prospectus, as the case may be, which is incorporated or deemed to be incorporated by reference therein. 
  
 2.        Shelf Registration
Statement. 
  
 (a) The Company shall, at its expense, prepare
and file with the SEC within 90 days following the Closing Date a Shelf Registration Statement with respect to resales of the Transfer Restricted Securities by the Holders from time to time in accordance with the methods of distribution elected by
such Holders and set forth in such Shelf Registration Statement and thereafter shall use its reasonable best efforts to cause such Shelf Registration Statement to be declared effective under the Act within 180 days after the Closing Date;
provided that if any Securities are issued upon exercise of the Option granted to the Initial Purchaser in the Purchase Agreement and the date on which such Securities are issued occurs after the Closing Date, the Company will take such
steps, prior to the effective date of the Shelf Registration Statement, to ensure that such Securities issued upon an exercise of the Option and the shares of Common Stock issuable upon conversion thereof are included in the Shelf Registration
Statement on the same terms as the Securities issued on the Closing Date. The Company shall supplement or amend the Shelf Registration Statement if required by the rules, regulations or instructions applicable to the registration form used by the
Company for the Shelf Registration Statement, or by the Act, the Exchange Act or the SEC. 
  
 (b) (1) The Company shall give notice to all Holders of Transfer Restricted Securities not less than 30 calendar days prior to the date on which the Company intends in good faith to have the Shelf Registration
Statement declared effective, by issuing a press release to Reuters Economic Services and Bloomberg Business News. The Company shall take action to name each Holder that is a Notice Holder as of the date that is 20 calendar days prior to the
effectiveness of the Shelf Registration Statement so that such Holder is named as a selling securityholder in the Shelf Registration Statement at the time of its effectiveness and is permitted to deliver the Prospectus forming a part thereof as of
such time to purchasers of such Holder’s Transfer Restricted Securities in accordance with applicable law. The Company shall be under no obligation to name any Holder that is not a Notice Holder as a selling security holder in the Shelf
Registration Statement. 
  
 (2) After the Shelf Registration
Statement has become effective, the Company shall, upon the request of any Holder of Transfer Restricted Securities, promptly send a Notice and Questionnaire to such Holder and the Company shall (i) within 45 days after the date a completed and
signed Notice and Questionnaire is delivered to the Company, prepare and file with the SEC (x) a supplement to the Prospectus or, if required by applicable law, a post-effective amendment to the Shelf Registration Statement and (y) any other
document required by applicable law, so that the Holder delivering such Notice and Questionnaire is named as a selling securityholder in the Shelf Registration Statement and is permitted to deliver the Prospectus to purchasers of such Holder’s
Transfer Restricted Securities in accordance with applicable law. If the Company files a post-effective amendment to the Shelf Registration Statement, it shall use its reasonable best efforts to cause such post-effective amendment to become
effective under the Act as promptly as is practicable; provided, however, that if a Notice and Questionnaire is delivered to the Company during a Suspension Period, the Company shall not be obligated to take the actions set forth above
until the termination of such Suspension Period. 
  

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 (c) The Company shall use its reasonable best efforts to keep the Shelf Registration Statement
continuously effective under the Act in order to permit the Prospectus forming a part thereof to be usable, subject to Section 2(d), by all Notice Holders until the earliest of (i) the second anniversary of the Closing Date or, if later, the second
anniversary of the last date on which any Securities are issued upon exercise of the Option, (ii) the last date on which the holding period applicable to sales of the Securities and the shares of Common Stock issuable upon conversion of the
Securities under Rule 144(k) has expired, (iii) the date as of which all the Securities and the shares of Common Stock issuable upon conversion of the Securities have been transferred under Rule 144 under the Act, and (iv) such date as of which all
the Securities and the shares of Common Stock issuable upon conversion thereof have been sold pursuant to the Shelf Registration Statement (in any such case, such period being called the “Shelf Registration Period”). The Company
will, (x) subject to Section 2(d), prepare and file with the SEC such amendments and post-effective amendments to the Shelf Registration Statement as may be necessary to keep the Shelf Registration Statement continuously effective for the Shelf
Registration Period, (y) subject to Section 2(d), cause the related Prospectus to be supplemented by any required supplement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Act) and (z)
comply in all material respects with the provisions of the Act with respect to the disposition of all Securities and the shares of Common Stock issuable upon conversion of the Securities covered by the Shelf Registration Statement during the Shelf
Registration Period in accordance with the intended methods of disposition by the Holders thereof set forth in such Shelf Registration Statement and the related Prospectus, as amended and supplemented. 
  
 (d) The Company may suspend the availability of any Shelf Registration
Statement and the use of any Prospectus (the period during which the availability of any Shelf Registration Statement and any Prospectus may be suspended herein referred to as the “Suspension Period”), without incurring any
obligation to pay Liquidated Damages pursuant to Section 2(e), for a period not to exceed either 45 days in the aggregate in any three-month period or 90 days in the aggregate during any 12-month period during the period beginning on the effective
date of the initial Shelf Registration Statement and ending on or prior to the expiration of the holding period applicable to sales of the Securities and shares of Common Stock issuable upon conversion of the Securities under Rule 144(k), for valid
business reasons, to be determined by the Company in its sole judgment (which shall not include the avoidance of the Company’s obligations hereunder), including, without limitation, the acquisition or divestiture of assets, pending corporate
developments, public filings with the SEC and similar events; provided that the Company promptly thereafter complies with the requirements of Section 3(j) hereof, if applicable. 
  
 (e) The Company and the Initial Purchaser agree that the Holders of Transferred Restricted Securities will suffer damages if
the Company fails to fulfill its obligations under Section 2 hereof. Accordingly, if (i) the Shelf Registration Statement is not filed with the SEC on or within 90 days after the Closing Date, (ii) the Shelf Registration Statement has not been
declared effective by the SEC within 180 days after the Closing Date, or (iii) the Shelf Registration Statement is filed and declared effective but shall thereafter cease to be effective (without being succeeded immediately by a replacement Shelf
Registration Statement filed and declared effective) or usable (including as a result of a Suspension Period) for the offer and sale of Transfer Restricted Securities for a period of time (including any Suspension Period) which 

  

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exceeds either 45 days in the aggregate in any three-month period or 90 days in the aggregate in any 12-month period during the period beginning on the
effective date of the initial Shelf Registration Statement and ending on or prior to the expiration of the holding period applicable to sales of the Securities and shares of Common Stock issuable upon conversion of the Securities under Rule 144(k)
(each such event referred to in clauses (i) through (iii), a “Registration Default”), the Company will pay liquidated damages (“Liquidated Damages”) to each Notice Holder who is also a Record Holder. The amount of
Liquidated Damages payable during any period in which a Registration Default has occurred or is continuing is the amount which is equal to one-quarter of one percent (25 basis points) per annum per $1,000 principal amount of Securities or $2.50 per
annum per 73.6106 shares of Common Stock (subject to adjustment in the event of a stock split, stock recombination, stock dividend and the like) constituting Transfer Restricted Securities for each day during which a Registration Default has
occurred, it being understood that all calculations pursuant to this and the preceding sentence shall be carried out to five decimal places. Following the cure of all Registration Defaults, Liquidated Damages will cease to accrue with respect to
such Registration Defaults. All accrued Liquidated Damages shall be paid by the Company on each Damages Payment Date and Liquidated Damages will be calculated on the basis of a 360-day year consisting of twelve 30-day months. The parties hereto
agree that the Liquidated Damages provided for in this Section 2(e) constitute a reasonable estimate of the damages that may be incurred by Holders by reason of a Registration Default. 
  
 (f) All of the Company’s obligations (including, without limitation, the obligation to pay Liquidated Damages) set
forth in the preceding paragraph which are outstanding or exist with respect to any Transfer Restricted Security at the time such security ceases to be a Transfer Restricted Security shall survive until such time as all such obligations with respect
to such security shall have been satisfied in full. 
  
 (g)
Immediately upon the occurrence or the termination of a Registration Default, the Company shall give (i) the Trustee, so long as the Securities remain outstanding, and (ii) the transfer agent for the Common Stock, in the case of notice with respect
to the shares of Common Stock issuable upon conversion of Securities, notice of such commencement or termination of the obligation to pay Liquidated Damages with regard to the Securities or the Common Stock, as the case may be, and the amount
thereof and of the event giving rise to such commencement or termination (such notice to be contained in an Officers’ Certificate (as such term is defined in the Indenture)), and prior to receipt of such Officers’ Certificate the Trustee
and the transfer and paying agent shall be entitled to assume that no such commencement or termination has occurred, as the case may be. 
  
 3.        Registration Procedures.    In connection with any Shelf Registration
Statement, the following provisions shall apply: 
  
 (a) The
Company shall (i) furnish to the Initial Purchaser, within a reasonable period of time prior to the filing thereof with the SEC to afford the Initial Purchaser and its counsel a reasonable opportunity for review, a copy of each Shelf Registration
Statement, and each amendment thereof, and a copy of each Prospectus, and each amendment or supplement thereto (excluding amendments caused by the filing of a report under the Exchange Act and any amendments filed solely to include Holder
Information or to name a Holder as selling securityholder), and shall reflect in each such document, when so filed with the SEC, such 

  

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comments as the Initial Purchaser may reasonably propose, except to the extent the Company reasonably determines it to be inadvisable or inappropriate to
reflect such comments therein, and (ii) include information regarding the Notice Holders and the methods of distribution they have elected for their Transfer Restricted Securities provided to the Company in Notice and Questionnaires as necessary to
permit such distribution by the methods specified therein. 
  
 (b)
Subject to Section 2(d), the Company shall ensure that (i) any Shelf Registration Statement and any amendment thereto and any Prospectus forming a part thereof and any amendment or supplement thereto comply in all material respects with the Act and
the rules and regulations thereunder, (ii) any Shelf Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading and (iii) any Prospectus forming a part of any Shelf Registration Statement, and any amendment or supplement to such Prospectus, does not include an untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; provided that the Company makes no representation with respect to any Holder
Information. 
  
 (c) The Company, as promptly as reasonably
practicable (but in any event within two Business Days), shall notify the Initial Purchaser and each Notice Holder and, if requested by you or any such Holder, confirm such notice in writing: 
  
 (i) when a Shelf Registration Statement and any amendment
thereto or any Prospectus and any amendments and supplements thereto has been filed with the SEC and when the Shelf Registration Statement or any post-effective amendment thereto has become effective; 
  
 (ii) of any request by the SEC following effectiveness of
the Shelf Registration Statement for amendments or supplements to the Shelf Registration Statement or the Prospectus or for additional information (other than any such request relating to a review of the Company’s Exchange Act filings);

  
 (iii) of the issuance by the SEC of any stop
order suspending the effectiveness of the Shelf Registration Statement or of any order preventing or suspending the use of any Prospectus or the initiation or threat of any proceedings for that purpose; 
  
 (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Transfer Restricted Securities included in any Shelf Registration Statement for sale in any jurisdiction or the initiation or threat of any proceeding for that purpose; 
  
 (v) of the happening of any event or the existence of any
condition or any information becoming known that requires the making of any changes in the Shelf Registration Statement or the Prospectus or any document incorporated by reference therein so that, as of such date, the statements therein are not
misleading and the Shelf Registration Statement or the Prospectus or any document incorporated by reference 

  

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therein, as the case may be, does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein (in the case of the Prospectus, in light of the circumstances under which they were made) not misleading; 
  
 (vi) of the Company’s determination that a post-effective amendment to the Shelf Registration Statement is necessary; and

  
 (vii) of the commencement (including as a
result of any of the events or circumstances described in paragraphs (ii) through (vi) above) and termination of any Suspension Period. 
  
 Notwithstanding the forgoing, the Company shall not be required to provide any notice under this Section 3(c) in respect of amendments to the Shelf Registration Statement
caused by the filing of a report under the Exchange Act or any amendment (including any post-effective amendment) filed solely to include Holder Information or to name a Holder as a selling securityholder. 
  
 (d) The Company shall use its reasonable best efforts to obtain (i) the
withdrawal of any order suspending the effectiveness of any Shelf Registration Statement and the use of any related Prospectus and (ii) the lifting of any suspension of the qualification (or exemption from qualification) of any of the Transfer
Restricted Securities for offer or sale in any jurisdiction in which they have been qualified for sale, in each case at the earliest possible time, and shall provide notice to each Holder of the withdrawal of any such orders or suspensions.

  
 (e) The Company shall promptly furnish to each Notice Holder,
without charge, at least one copy of any Shelf Registration Statement and any post-effective amendment thereto, excluding all documents incorporated or deemed to be incorporated therein by reference and all exhibits thereto (unless requested to the
Company by such Notice Holder). 
  
 (f) The Company shall, during
the Shelf Registration Period, promptly deliver to the Initial Purchaser, each Notice Holder and any sales or placement agent or underwriters acting on their behalf, without charge, as many copies of the Prospectus (including each preliminary
Prospectus) included in any Shelf Registration Statement, and any amendment or supplement thereto, as such person may reasonably request; and, except as provided in Sections 2(d) and 3(s) hereof, the Company consents to the use of the Prospectus or
any amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Transfer Restricted Securities covered by the Prospectus or any amendment or supplement thereto. 
  
 (g) Prior to any offering of Transfer Restricted Securities pursuant to any
Shelf Registration Statement, the Company shall register or qualify or cooperate with the Notice Holders and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such
Transfer Restricted Securities for offer and sale, under the securities or blue sky laws of such jurisdictions within the United States as any such Notice Holders reasonably request and shall maintain such qualification in effect so long as required
and do any and all other acts or things necessary or advisable to enable the offer and sale in such jurisdictions of the Transfer Restricted Securities covered by such Shelf 

  

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Registration Statement; provided, however, that the Company will not be required to (A) qualify generally to do business as a foreign
corporation or as a dealer in securities in any jurisdiction where it is not then so qualified or to (B) take any action which would subject it to service of process or taxation in excess of a nominal dollar amount in any such jurisdiction where it
is not then so subject. 
  
 (h) The Company shall cooperate with
the Holders to facilitate the timely preparation and delivery of certificates representing Transfer Restricted Securities sold pursuant to any Shelf Registration Statement free of any restrictive legends and, with respect of any Securities, in such
denominations permitted by the Indenture and registered in such names as Holders may request at least two Business Days prior to settlement of sales of Transfer Restricted Securities pursuant to such Shelf Registration Statement. 
  
 (i) Subject to the exceptions contained in (A) and (B) of Section 3(g) above,
the Company shall use its reasonable best efforts to cause the Transfer Restricted Securities covered by the applicable Shelf Registration Statement to be registered with or approved by such other federal, state and local governmental agencies or
authorities, and self-regulatory organizations in the United States as may be necessary to enable the Holders to consummate the disposition of such Transfer Restricted Securities as contemplated by the Shelf Registration Statement; without
limitation to the foregoing, the Company shall provide all such information as may be required by the National Association of Securities Dealers, Inc. (the “NASD”) in connection with the offering under the Shelf Registration
Statement of the Transfer Restricted Securities (including, without limitation, such as may be required by NASD Rule 2710 or 2720), and shall cooperate with each Holder in connection with any filings required to be made with the NASD by such Holder
in that regard. 
  
 (j) Upon the occurrence of any event described
in Section 3(c)(v) or 3(c)(vi) hereof, the Company shall promptly prepare and file with the SEC a post-effective amendment to any Shelf Registration Statement, or an amendment or supplement to the related Prospectus, or any document incorporated
therein by reference, or file a document which is incorporated or deemed to be incorporated by reference in such Shelf Registration Statement or Prospectus, as the case may be, so that, as thereafter delivered to purchasers of the Transfer
Restricted Securities included therein, the Shelf Registration Statement and the Prospectus, in each case as then amended or supplemented, will not include an untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements therein (in the case of the Prospectus in light of the circumstances under which they were made) not misleading and, in the case of a post-effective amendment, use its reasonable best
efforts to cause it to become effective as promptly as practicable; provided that the Company’s obligations under this paragraph (j) shall be suspended if the Company has suspended the use of the Prospectus in accordance with Section
2(d) hereof and given notice of such suspension to Notice Holders, it being understood that the Company’s obligations under this Section 3(j) shall be automatically reinstated at the end of such Suspension Period. 
  
 (k) The Company shall use its reasonable best efforts to provide, prior to
the effective date of any Shelf Registration Statement hereunder (i) a CUSIP number for the Transfer Restricted Securities registered under such Shelf Registration Statement and (ii) global 

  

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certificates for such Transfer Restricted Securities to the Trustee, in a form eligible for deposit with DTC. 
  
 (l) The Company shall use its best efforts to comply with all applicable
rules and regulations of the SEC and shall make generally available to its security holders an earnings statement satisfying the provisions of Section 11(a) of the Act and Rule 158 promulgated by the SEC thereunder (or any similar rule promulgated
under the Act) for a 12-month period commencing on the first day of the first fiscal quarter of the Company commencing after the effective date of any Shelf Registration Statement or each post-effective amendment to any Shelf Registration Statement,
which such statements shall be made available no later than 45 days after the end of the 12-month period or 90 days after the end of the 12-month period, if the 12-month period coincides with the fiscal year of the Company. 
  
 (m) The Company shall use its reasonable best efforts to cause the Indenture
to be qualified under the TIA (as defined in the Indenture) not later than the effective date of the first Shelf Registration Statement. 
  
 (n) The Company shall cause all shares of Common Stock issuable upon conversion of the Securities to be reserved for listing on each securities exchange
or quotation system on which the Common Stock is then listed no later than the date the applicable Shelf Registration Statement is declared effective and, shall cause all Common Stock to be so listed when issued, and, in connection therewith, to
make such filings as may be required under the Exchange Act and to have such filings declared effective as and when required thereunder. 
  
 (o) The Company may require each Holder of Transfer Restricted Securities to be sold pursuant to any Shelf Registration Statement to furnish to the
Company such information regarding the Holder and the distribution of such Transfer Restricted Securities sought by the Notice and Questionnaire and such additional information as may, from time to time, be required by the Act and/or the SEC, and
the obligations of the Company to any Holder hereunder shall be expressly conditioned on the compliance of such Holder with such request. 
  
 (p) The Company shall, if reasonably requested, use its reasonable best efforts to promptly incorporate in a Prospectus supplement or post-effective
amendment to a Shelf Registration Statement (i) such information as the Majority Holders provide and (ii) such information as a Holder may provide from time to time to the Company in writing for inclusion in a Prospectus or any Shelf Registration
Statement concerning such Holder and the distribution of such Holder’s Transfer Restricted Securities and, in either case, shall make all required filings of such Prospectus supplement or post-effective amendment promptly after being notified
in writing of the matters to be incorporated in such Prospectus supplement or post-effective amendment, provided that the Company shall not be required to take any action under this Section 3(p) that is not, in the reasonable opinion of
counsel for the Company, in compliance with applicable law. 
  
 (q) In the case of an underwritten offering, take all actions necessary, or reasonably requested by the holders of a majority of the Transfer Restricted Securities being sold, in order to expedite or facilitate disposition of such Transfer
Restricted Securities; provided 

  

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that the Company shall not be required to take any action in connection with an underwritten offering without its consent; 
  
 (r) If reasonably requested in writing in connection with any disposition of
Transfer Restricted Securities pursuant to a Shelf Registration Statement, make reasonably available for inspection during normal business hours by a representative for the Notice Holders of such Transfer Restricted Securities and any
broker-dealers, attorneys and accountants retained by such Notice Holders, all relevant financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries, and cause the appropriate executive officers,
directors and designated employees of the Company and its subsidiaries to make reasonably available for inspection during normal business hours all relevant information reasonably requested by such representative for the Notice Holders or any such
broker-dealers, attorneys or accountants in connection with such disposition, in each case as is customary for similar “due diligence” examinations; provided, however that any information that is designated in writing by the
Company, in good faith, as confidential at the time of delivery of such information shall be kept confidential by such persons, unless disclosure thereof is made in connection with a court, administrative or regulatory proceeding or required by law,
or such information has become available to the public generally through the Company or through a third party without an accompanying obligation of confidentiality. 
  
 (s) Each Notice Holder agrees that, upon receipt of notice of the happening of an event described in Sections 3(c)(ii)
through and including 3(c)(vii), each Holder shall forthwith discontinue (and shall cause its agents and representatives to discontinue) disposition of Transfer Restricted Securities and will not resume disposition of Transfer Restricted Securities
until such Holder has received copies of an amended or supplemented Prospectus contemplated by Section 3(j) hereof, or until such Holder is advised in writing by the Company that the use of the Prospectus may be resumed or that the relevant
Suspension Period has been terminated, as the case may be, provided that the foregoing shall not prevent the sale, transfer or other disposition of Transfer Restricted Securities by a Notice Holder in a transaction which is exempt from, or
not subject to, the registration requirements of the Act, so long as such Notice Holder does not and is not required to deliver the applicable Prospectus or Shelf Registration Statement in connection with such sale, transfer or other disposition, as
the case may be; and provided, further, that the provisions of this Section 3(s) shall not prevent the occurrence of a Registration Default or otherwise limit the obligation of the Company to pay Liquidated Damages. 
  
 (t) In the event that any broker-dealer shall underwrite any Transfer
Restricted Securities or participate as a member of an underwriting syndicate or selling group or “assist in the public distribution” (within the meaning of the NASD Rules) thereof, whether as a Holder of such Transfer Restricted
Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Company shall assist such broker-dealer in complying with the NASD Rules, including, without limitation, by: 
  
 (i)    if the NASD Rules shall so
require, engaging a “qualified independent underwriter” (as defined in the NASD Rules) to participate in the preparation of the Shelf Registration Statement, to exercise usual standards of due diligence with respect thereto and, if any
portion of the offering contemplated by the 

  

 12 

 
Shelf Registration Statement is an underwritten offering or is made through a placement or sales agent, to recommend the price of such Transfer Restricted
Securities; 
  
 (ii) indemnifying any such
qualified independent underwriter to the extent of the indemnification of Holders provided in Section 5 hereof; and 
  
 (iii) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements
of the NASD Rules. 
  
 4.        Registration Expenses.    The Company shall bear all expenses incurred in connection with the performance of its obligations under Sections 2 and 3 hereof and
shall reimburse the Holders for the reasonable fees and disbursements of one firm or counsel designated by the Majority Holders to act as counsel for the Holders in connection therewith. Notwithstanding the provisions of this Section 4, each Holder
shall bear the expense of any broker’s commission, agency fee and underwriter’s discount or commission, if any, relating to the sale or disposition of such Holder’s Transfer Restricted Securities pursuant to a Shelf Registration
Statement. 
  
 5.        Indemnification and Contribution. 
  
 (a) The Company will indemnify and hold harmless each Holder of Transfer Restricted Securities covered by any Shelf Registration Statement (including,
without limitation, the Initial Purchaser) and each person who controls any such Holder within the meaning of either the Act or the Exchange Act (collectively referred to for purposes of this Section 5 as a “Holder”) against any
losses, claims, damages or liabilities, joint or several, to which any of them may become subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement, or in any Prospectus, or any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission
to state therein a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and will reimburse each such party for any legal or other expenses reasonably incurred by such
party in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, (i) that the Company shall not be liable in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon Holder Information, (ii) that with respect to any untrue statement or omission of material fact made in any Shelf Registration Statement, or in any Prospectus, the indemnity agreement contained in
this Section 5(a) shall not inure to the benefit of the Holder or any person who controls the Holder within the meaning of either the Act or the Exchange Act from whom the person asserting any such loss, claim, damage or liability purchased the
securities concerned, to the extent that any such loss, claim, damage or liability of the Holders occurs under the circumstance where it shall have been established that (w) the Company had previously furnished copies of the Prospectus, and any
amendments and supplements thereto, to the Holder, (x) delivery of the Prospectus, and any amendment or supplements thereto, was required by the Act to be made to such person, (y) the untrue statement or omission of a material fact contained in the
Prospectus was corrected in amendments or supplements thereto, and (z) there was not 

  

 13 

 
sent or given to such person, at or prior to the written confirmation of the sale of such securities to such person, a copy of such amendments or supplements
to the Prospectus, and (iii) the Company will not be liable for any such loss, claim, damage or liability in connection with any settlement of any pending or threatened litigation or any pending or threatened governmental agency investigation or
proceeding if that settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld. This indemnity agreement will be in addition to any liability that the Company may otherwise have.

  
 (b) Each Holder, severally and not jointly, agrees to
indemnify and hold harmless the Company, each of its directors and officers and each person who controls the Company within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company to the
Holders and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any loss, claim, damage, liability or action, but only with reference
to Holder Information supplied by such Holder. This indemnity agreement will be in addition to any liability that such Holder may otherwise have. 
  
 (c) Promptly after receipt by an indemnified party under this Section 5 of notice of the commencement of any action or proceeding (including any
governmental investigation), such indemnified party will, if a claim for indemnification in respect thereof is to be made against the indemnifying party under Section 5(a) or 5(b) hereof, notify the indemnifying party in writing of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party otherwise than under Section 5(a) or 5(b) hereof to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it may have otherwise than on account of this indemnity agreement. In case any such action or proceeding is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein (jointly with any other indemnifying party similarly notified), and to the extent that it may elect, by written notice, delivered to such
indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, however, that if the defendants
(including any impleaded parties) in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. Upon
receipt of notice from the indemnifying party to such indemnified party of its election so to appoint counsel to defend such action and approval by the indemnified party of such counsel, the indemnifying party will not be liable to such indemnified
party under this Section 5 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to
the next preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expense of more than one separate counsel (in addition to any local counsel), approved by the Holders in the case of paragraph (a) of
this Section 5, representing the indemnified parties under such paragraph (a) who are parties to such action), (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified 
  

 14 

 
party to represent the indemnified party within a reasonable time after notice or commencement of the action, (iii) the indemnifying party has authorized the
employment of counsel for the indemnified party at the expense of the indemnifying party, or (iv) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; and
except that, if clause (i) or (iii) is applicable, such liability shall be only in respect of the counsel referred to in such clause (i) or (iii). An indemnifying party will not, without the prior written consent of the indemnified parties, settle
or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are
actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding. If at any time
an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by this Section 5(c), the indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected by the indemnified party without its consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of such request for reimbursement and (ii) such indemnifying party shall not have
reimbursed the indemnified person in accordance with such request prior to the date of any settlement. 
  
 (d) In the event that the indemnity provided in paragraph (a) or (b) of this Section 5 is unavailable to or insufficient to hold harmless an indemnified
party for any reason, each indemnifying party agrees to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending same) (collectively,
“Losses”) to which the indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company from the Initial Placement, on the one hand, and a Holder with respect to the sale
by such Holder of Securities or Common Stock, on the other hand; provided, however, that in no case shall an indemnifying party that is a Holder be responsible for any amount in excess of the total price at which the Transfer
Restricted Securities are sold by such Holder to a purchaser. If the allocation provided by the immediately preceding sentence is unavailable for any reason, the Company and such Holder shall contribute in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the Company on the one hand and of such Holder on the other in connection with the statements or omissions which resulted in such Losses, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and such Holder on the other shall be deemed to be in the same respective proportions as the total net proceeds from the Initial Placement (before deducting expenses)
received by or on behalf of the Company as set forth in the Offering Memorandum, on the one hand, and the total proceeds received by such Holder with respect to its sale of Transferred Restricted Securities under the Shelf Registration Statement, on
the other hand, bear to the total gross proceeds from the Initial Placement. Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information provided by the Company on the one hand or relates to Holder Information supplied by such Holder, on the other, the intent of the parties and their relative knowledge, information and
opportunity to correct or prevent such untrue statement or omission. The parties agree that it would not be just and equitable if contribution pursuant to this paragraph (d) were determined by pro rata 

  

 15 

 
allocation or any other method of allocation that does not take account of the equitable considerations referred to above. Notwithstanding the provisions of
this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this
Section 5(d), each person who controls such Holder within the meaning of either the Act or the Exchange Act shall have the same rights to contribution as such Holder, and each person who controls the Company within the meaning of either the Act or
the Exchange Act and each officer and director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d). 
  
 (e) The provisions of this Section 5 will remain in full force and effect,
regardless of any investigation made by or on behalf of any Holder, any underwriter or the Company or any of the officers, directors or controlling persons referred to in Section 5 hereof, and will survive the sale by a Holder of Transfer Restricted
Securities covered by a Shelf Registration Statement. 
  
 6.        Rules 144 and 144A.    The Company covenants that it shall use its reasonable best efforts to file the reports required to be filed by it under the Act and the
Exchange Act in a timely manner so long as the Transfer Restricted Securities remain outstanding. If at any time the Company is not required to file such reports, it will, upon request of any Holder or beneficial owner of Transfer Restricted
Securities, make available such information necessary to permit sales pursuant to Rule 144A. The Company further covenants that, for as long as any Transfer Restricted Securities remain outstanding, it will take such further action as any Holder of
Transfer Restricted Securities may reasonably request, all to the extent required from time to time to enable such Holder to sell Transfer Restricted Securities without registration under the Act within the limitation of the exemptions provided by
Rule 144 and Rule 144A. Upon the written request of any Holder of Transfer Restricted Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. 
  
 7.        Underwritten
Offerings. 
  
 (a) If any of the Transfer Restricted
Securities covered by any Shelf Registration Statement are to be sold in an underwritten offering, the investment banker or investment bankers and manager or managers that will administer the underwritten offering will be selected by the Majority
Holders of such Transfer Restricted Securities included in such underwritten offering, subject to the consent of the Company (which shall not be unreasonably withheld or delayed), and such Holders shall be responsible for all underwriting
commissions and discounts in connection therewith; provided, however, that notwithstanding anything contained in this Agreement to the contrary, no underwritten offering shall be effected pursuant to this Agreement without the prior
consent of the Company. 
  
 (b) No Holder may participate in any
underwritten offering hereunder unless such person (i) agrees to sell such Holder’s Transfer Restricted Securities on the basis reasonably provided in any underwriting arrangements approved by the Holders entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of 

  

 16 

 
attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 
  
 8.        Miscellaneous.

  
 (a) No Inconsistent Agreements. The Company has not, as
of the date hereof, entered into nor shall it, on or after the date hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the provisions
hereof. 
  
 (b) Amendments and Waivers. The provisions of
this Agreement, including the provisions of this sentence, may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written
consent of at least the majority of the Holders of the then outstanding Transfer Restricted Securities; provided that with respect to any matter that directly or indirectly affects the rights of the Initial Purchaser hereunder, the Company
shall obtain the written consent of the Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to be effective. Notwithstanding the foregoing (except the foregoing proviso), a waiver or consent to departure
from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Transfer Restricted Securities are being sold pursuant to a Shelf Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by the Majority Holders. 
  
 (c) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail, telecopier, or air courier guaranteeing overnight delivery: 
  
 (i)        if to the
Initial Purchaser, initially at its address set forth in the Purchase Agreement; 
  
 (ii)       if to any other Holder, at the most current address of such Holder maintained by the
Registrar under the Indenture or the registrar of the Common Stock (provided that while the Securities or the Common Stock are in book-entry form, notice to the Trustee shall serve as notice to the Holders), or, in the case of the Notice
Holder, the address set forth in its Notice and Questionnaire; and 
  
 (iii)     if to the Company, initially at its address set forth in the Purchase Agreement. 
  
 All such notices and communications shall be deemed to have been duly given when received, if delivered by hand or air courier, and when sent, if sent by
first-class mail or telecopier. 
  
 The Initial Purchaser or the
Company by notice to the other may designate additional or different addresses for subsequent notices or communications. 
  
 (d)    Successors and Assigns.     This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of each of the parties, including, without the need for an 

  

 17 

 
express assignment or any consent by the Company thereto, subsequent Holders. The Company hereby agrees to extend the benefits of this Agreement to any
Holder and underwriter and any such Holder and underwriter may specifically enforce the provisions of this Agreement as if an original party hereto. In the event that any other person shall succeed to the Company under the Indenture, then such
successor shall enter into an agreement, in form and substance reasonably satisfactory to the Initial Purchaser, whereby such successor shall assume all of the Company’s obligations under this Agreement. 
  
 (e)    Counterparts.    This
Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

  
 (f)    Headings.    The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  
 (g)    GOVERNING LAW.    THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SAID STATE. 
  
 (h)    Severability.    In the event that any one of more of the provisions
contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law. 
  
 (i)    Securities Held by the Company,
etc.    Whenever the consent or approval of Holders of a specified percentage of principal amount of Securities or the shares of Common Stock issuable upon conversion thereof is required hereunder, Securities or the shares of
Common Stock issued upon conversion thereof held by the Company or its Affiliates (other than subsequent Holders of Securities or the Common Stock issued upon conversion thereof if such subsequent Holders are deemed to be Affiliates solely by reason
of their holdings of such Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 
  

(j)    Termination.    This Agreement and the obligations of the parties hereunder shall terminate upon
the end of the Shelf Registration Period, except for any liabilities or obligations under Section 2(e), 4 or 5 to the extent arising prior to the end of the Shelf Registration Period. 
  

 18 

 Please confirm that the foregoing correctly sets forth the agreement between the Company and you.

  
 Very truly yours, 
  
 DELTA AIR LINES, INC. 
  
 By:    /s/ James M. Whitehurst 

 Name: James M. Whitehurst 
 Title:   Senior Vice President 
             Finance,
Treasury and 
             Business Development 
  
 The foregoing Agreement is hereby confirmed 
 and accepted as of the date first above written. 
  
 MORGAN STANLEY & CO. INCORPORATED 
  
 By:    /s/ Rizvan Dhalla             
  
 Name: Rizvan Dhalla 
 Title:   Vice President 
  

 19Form of Restricted Stock Agreement-Stuart A. Tanz

 Exhibit 10.1 
  
 RESTRICTED STOCK AGREEMENT 
  
 THIS AGREEMENT is made between Stuart A. Tanz (the “Employee”) and Pan Pacific Retail Properties, Inc. (the “Company”) as of February
5, 2004. 
  
 RECITALS 
  
 (1) Pursuant to the Company’s 2000 Stock Incentive Plan, the Company has
granted to Employee an award of 10,000 shares of common stock of the Company (the “Shares”) effective as of February 5, 2004 (the “Effective Date”). 
  
 (2) As a condition to Employee’s grant of the Shares, Employee must execute this Restricted Stock Agreement (this
“Agreement”), which sets forth the rights and obligations of the parties with respect to the Shares. 
  
 1. Forfeiture; Vesting. 
  
 (a) If Employee’s employment or consulting relationship with the Company is terminated for any reason other than by the Company
without “cause” (as defined in the Employment Agreement between Employee and the Company, dated as of October 29, 2001 (the “Employment Agreement”)), including, but not limited to, for cause, death, and disability, all unvested
Shares as of the date of such termination shall immediately be forfeited and shall be transferred to the Company; provided that as to Shares that would have vested at the subsequent Vesting Date (as hereinafter defined), such Shares shall vest on a
prorated basis based on the number of days elapsed from the prior Vesting Date through the date of termination and rounding down to the nearest Share. 
  
 For purposes of this Section 1, “cause” shall mean: 
  
 (i) Employee’s conviction for commission of a felony or a crime involving moral turpitude; 

 
 (ii) Employee’s willful commission of any act of
theft, embezzlement or misappropriation against the Company; 
  
 (iii) Employee’s continued failure to substantially perform Employee’s duties hereunder (other than such failure resulting from Employee’s incapacity due to physical or mental illness), which failure is
not remedied within a reasonable time after demand for substantial performance is delivered by the Company which specifically identifies the manner in which the Company believes that Employee has not substantially performed Employee’s duties;
or 
  
 (iv) Employee’s death or disability.

 (b) Subject to Subsection 1(c), the Shares issued hereunder shall become vested over
three (3) years in 33 1/3 percent installments on each anniversary of the Effective Date (each such anniversary,
a “Vesting Date”), conditioned upon (i) Employee’s continued employment as of each such Vesting Date. 
  
 (c) Notwithstanding Subsection 1(b), in the case of a “Change in Control” (as hereinafter defined), if Employee’s
employment or consulting relationship with the Company is terminated within one year following a Change in Control for any reason other than by the Company for “cause” (as defined in the Employment Agreement), the Shares shall become fully
vested and shall cease to be subject to forfeiture under Subsection 1(a) after such event. For purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the following events: 
  
 (i) the individuals constituting the Board as of the date of
the initial public offering of common stock of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that if the election, or nomination for election by the
Company’s stockholders, of any new director was approved by a vote of at least a majority of the Incumbent Board, such new director shall be considered a member of the Incumbent Board; 
  
 (ii) an acquisition of any voting securities of the Company
(the “Voting Securities”) by any “person” (as the term “person” is used for purposes of Section 13(d) or Section 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)), immediately after
which such person has “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 20% or more of the combined voting power of the Company’s then outstanding Voting Securities; or 
  
 (iii) approval by the stockholders of the Company of:

  
 (A) a merger, consolidation, share exchange
or reorganization of the Company, unless the stock holders of the Company, immediately before such merger, consolidation, share exchange or reorganization, own, directly or indirectly immediately following such merger, consolidation, share exchange
or reorganization, at least 80% of the combined voting power of the outstanding voting securities of the corporation that is the successor in such merger, consolidation, share exchange or reorganization (the “Surviving Company”) in
substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation, share exchange or reorganization; provided, however, that a merger, consolidation, share exchange or reorganization of the
Company shall not constitute a “Change in Control” if such merger, consolidation, share exchange or reorganization of the Company is approved by the Board and is recommended by the Chief Executive Officer of the Company to the Board for
its approval; or 
  
 (B) a complete liquidation
or dissolution of the Company; or 
  

 2 

 (iv) an agreement for the sale or other disposition of all or substantially all of the
assets of the Company. 
  
 2. Transferability of the Shares;
Escrow. 
  
 (a) With the exception of Shares
which have been forfeited and required to be transferred to the Company pursuant to this Agreement, no unvested Shares nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of Employee or his
successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy,
attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect. Employee hereby authorizes and directs the secretary of the Company, or such
other person designated by the Company, to transfer the unvested Shares that have been forfeited to the Company pursuant to this Agreement. 
  
 (b) To insure the availability for delivery of Employee’s unvested Shares upon forfeiture to the Company, Employee hereby appoints
the secretary of the Company, or any other person designated by the Company as escrow agent, as his attorney-in-fact to assign and transfer unto the Company, such unvested Shares, if any, forfeited to the Company pursuant to Section 1 and shall,
upon execution of this Agreement, deliver and deposit with the secretary of the Company, or such other person designated by the Company, the Share certificates representing the unvested Shares, together with the stock assignment duly endorsed in
blank, attached hereto as Exhibit 1. The unvested Shares and stock assignment shall be held by the secretary in escrow, pursuant to the Joint Escrow Instructions of the Company and Employee attached as Exhibit 2 hereto, until such
unvested Shares are vested, or until such time as this Agreement no longer is in effect. As a further condition to the Company’s obligations under this Agreement, the spouse of the Employee, if any, shall execute and deliver to the Company the
Consent of Spouse attached hereto as Exhibit 3. Upon vesting of the unvested Shares, the escrow agent shall promptly deliver to the Employee the certificate or certificates representing such Shares in the escrow agent’s possession
belonging to the Employee, and the escrow agent shall be discharged of all further obligations hereunder; provided, however, that the escrow agent shall nevertheless retain such certificate or certificates as escrow agent if so required pursuant to
other restrictions imposed pursuant to this Agreement. 
  
 (c) The Company, or its designee, shall not be liable for any act it may do or omit to do with respect to holding the Shares in escrow and while acting in good faith and in the exercise of its judgment. 
  
 (d) Transfer or sale of the Shares is subject to
restrictions on transfer imposed by any applicable state and federal securities laws. Any transferee shall hold such Shares subject to all the provisions hereof and shall acknowledge the same by signing a copy of this Agreement. 
  

 3 

 3. Termination. This Agreement shall terminate upon the later of (i) an event of forfeiture, as
described in Subsection 1(a) herein, or (ii) the third anniversary of the Effective Date (February 5, 2007). 
  
 4. Ownership, Voting Rights, Duties. This Agreement shall not affect in any way the ownership, voting rights or other rights or duties of Employee,
except as specifically provided herein. Employee shall have the rights and privileges of a stockholder of the Company in respect of the Shares (including any dividends paid on shares of Company common stock), until termination of this Agreement. The
grant to Employee of the Shares shall be subject to the restrictions on ownership and transfer set forth in the Company’s Amended and Restated Articles of Incorporation. 
  
 5. Legends. The Share certificate evidencing the Shares issued hereunder shall be endorsed with the following legend
(in addition to any legend required under applicable federal and state securities laws and the Company’s charter): 
  

	
	THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AND FORFEITURE AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE HOLDER OF THE SHARES, A COPY
OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

  
 6. Adjustment for
Stock Split. All references to the number of Shares in this Agreement shall be appropriately adjusted to reflect any stock split, stock dividend or other change in the Shares which may be made by the Company after the date of this Agreement.

  
 7. Notices. Notices required hereunder shall be given
in person or by registered mail to the address of Employee shown on the records of the Company, and to the Company at its principal executive office. 
  
 8. Survival of Terms. This Agreement shall apply to and bind Employee and the Company and their respective permitted assignees and transferees,
heirs, legatees, executors, administrators and legal successors. 
  
 9. No Section 83(b) Elections. Because such election could have an impact on the Company’s ability to continue as a real estate investment trust under the Internal Revenue Code of 1986, as amended (the “Code”),
Employee agrees that Employee will not file an election under Section 83(b) of the Code with respect to the Shares. If Employee does file a Section 83(b) election then such election shall cause the immediate forfeiture of all of the Shares, without
proration (notwithstanding anything in Section 1 to the contrary). 
  
 10. Representations. Employee has reviewed with his own tax advisors the federal, state, local and foreign tax consequences of the grant to him of the Shares and the transactions contemplated by this Agreement. Employee is relying
solely on such advisors and not on any statements or representations of the Company or any of its agents. Employee understands that he (and not the Company) shall be responsible for his own tax liability that may arise as a result of the grant of
the Shares or the transactions contemplated by this Agreement. 
  

 4 

 11. Governing Law. This Agreement shall be governed by and construed and enforced in accordance
with California law. 
  
 12. Resolution of Disputes. It is
understood and agreed between the Employee and the Company that, any and all claims, grievances, demands, controversies, causes of actions or disputes of any nature whatsoever (including but not limited to interpretation of this Agreement or any
provision contained herein) (hereinafter “Disputes”), arising out of, in connection with, or in relation to the arbitrability of any Disputes under this Agreement shall be resolved in accordance with a two-step dispute resolution process
administered by the San Diego, California office of Judicial Administration & Mediation Services, Inc. (“JAMS”) involving, first, mediation before a retired judge from the JAMS panel, followed, if necessary by final and binding
arbitration before the same, or if requested by either the Employee or the Company, another JAMS panelist. Such dispute resolution process shall be confidential and shall be conducted in accordance with California Evidence Code Section 1119. In the
event the Dispute is resolved through mediation, the parties shall bear their respective costs incurred in connection with the mediation procedures, except that the parties shall equally share the fees and expenses of the mediator and the costs of
the facility for the hearing. In the event the Dispute is resolved through arbitration, the costs incurred in connection with the arbitration procedures, including the costs incurred by the prevailing party (including reasonable attorneys’
fees) will be borne by the non-prevailing party. The arbitrator will determine which party is the non-prevailing party for purposes of this Section 12. 
  
 Employee represents that he has read this Agreement and is familiar with its terms and provisions. 
  
 IN WITNESS WHEREOF, this Agreement is deemed made as of the date first set
forth above. 
  

			
	 “COMPANY”

	
	 PAN PACIFIC RETAIL PROPERTIES, INC.

		
	 By:
	 	  

	 Title:
	 	  

	
	 “EMPLOYEE”

	
	

	 STUART A. TANZ

	
	 Address:
 17130 El Camino Real
 P. O. Box 252
 Rancho Santa Fe, CA 92067

  

 5 

 EXHIBIT 1 
  

ASSIGNMENT SEPARATE FROM CERTIFICATE 
  
 FOR VALUE RECEIVED I, Stuart A. Tanz, hereby sell, assign and transfer unto
                                        
     (                    ) Shares of the Common Stock of Pan Pacific Retail Properties, Inc. standing in my name on
the books of said corporation represented by Certificate No.                      herewith and do hereby irrevocably constitute and appoint
                     to transfer the said stock on the books of the within named corporation with full power of substitution in the premises.

  
 This Stock Assignment may be used only in accordance with the
Restricted Stock Agreement between Pan Pacific Retail Properties, Inc. and the undersigned dated                     , 2004. 
  

					
	 Dated:                     ,
2004
	  	 Signature:
	  	  

	 	  	 	  	 STUART A. TANZ

  
 INSTRUCTIONS: Please do not fill in
any blanks other than the signature line. The purpose of this assignment is to enable the Company to transfer the Shares upon forfeiture as set forth in the Agreement, without requiring additional signatures on the part of the Employee. 

 EXHIBIT 2 
  

JOINT ESCROW INSTRUCTIONS 
  
                     , 2004

  
 Corporate Secretary 
 Pan Pacific Retail Properties, Inc. 
 1631-B South Melrose Drive 
 Vista, California 92083 
  
 Dear Corporate Secretary: 
  
 As Escrow Agent for both Pan Pacific Retail Properties, Inc. (the
“Company”), and the undersigned employee of the Company (the “Employee”), you are hereby authorized and directed to hold the documents delivered to you pursuant to the terms of that certain Restricted Stock Agreement
(“Agreement”) between the Company and the undersigned, in accordance with the following instructions: 
  
 1. In the event the Company and the Employee jointly advise you that a forfeiture has occurred as set forth in the Agreement (a “Forfeiture”),
the Company shall give to Employee and you a written notice specifying the number of Shares to be transferred to the Company. In the event the Company and Employee are in disagreement as to whether a Forfeiture has occurred, you shall retain in
escrow the Shares subject to such disagreement, pending the results of the mediation or arbitration proceedings provided for in Section 12 of the Agreement. Upon resolution of such disagreement pursuant to Section 12 of the Agreement, the Company
shall provide you with a copy of any written decision or order by the mediator or arbitrator. Employee and the Company hereby irrevocably authorize and direct you to effect the transfer contemplated by such notice, written decision or order.

  
 2. Upon receipt of such notice, written decision or order you
are directed (a) to date the stock assignments necessary for the transfer in question, (b) to fill in the number of Shares being transferred, and (c) to deliver the same, together with the certificate evidencing the Shares of stock to be transferred
to the Company. 
  
 3. Employee irrevocably authorizes the Company
to deposit with you any certificates evidencing Shares of stock to be held by you hereunder and any additions and substitutions to said Shares as defined in the Agreement. Employee does hereby irrevocably constitute and appoint you as
Employee’s attorney-in-fact and agent for the term of this escrow to execute with respect to such securities all documents necessary or appropriate to make such securities negotiable and to complete any transfer herein contemplated, including
but not limited to the filing with any applicable state blue sky authority of any required applications for consent to, or notice of transfer of, the securities. Subject to the provisions of this paragraph 3, Employee shall exercise all rights and
privileges of a stockholder of the Company while the stock is held by you. 

 4. Upon written request of the Employee, on any vesting date, you will deliver to Employee a certificate
or certificates representing so many Shares of stock as are not then subject to forfeiture. Within 120 days after cessation of Employee’s continuous employment by or services to the Company, or any parent or subsidiary of the Company, you will
deliver to Employee a certificate or certificates representing the aggregate number of Shares held or issued pursuant to the Agreement and not forfeited to the Company. 
  
 5. If at the time of termination of this escrow you should have in your possession any documents, securities, or other
property belonging to Employee, you shall deliver all of the same to Employee and shall be discharged of all further obligations hereunder. 
  
 6. Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto. 
  
 7. You shall be obligated only for the performance of such duties as are
specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be
personally liable for any act you may do or omit to do hereunder as Escrow Agent or as attorney-in-fact for Employee while acting in good faith, and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive
evidence of such good faith. 
  
 8. You are hereby expressly
authorized to disregard any and all warnings given by any of the parties hereto or by any other person or corporation, accepting only orders or process of courts of law or of any mediator or arbitrator provided for in Section 12 of the Agreement,
and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court or such mediator or arbitrator. In case you obey or comply with any such order, judgment or decree, you shall not be liable to any of the parties
hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without
jurisdiction. 
  
 9. You shall not be liable in any respect on
account of the identity, authorities or rights of the parties executing or delivering or purporting to execute or deliver the Agreement or any documents or papers deposited or called for hereunder. 
  
 10. You shall not be liable for the lapse or curtailment of any rights
relating to these Joint Escrow Instructions, the Shares of stock held by you hereunder or any documents deposited with you as a result of any applicable statute of limitations or similar provision of state or federal law. 
  
 11. You shall be entitled to employ such legal counsel and other experts as
you may deem necessary properly to advise you in connection with your obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation therefor. 
  

 2 

 12. Your responsibilities as Escrow Agent hereunder shall terminate upon the earlier of (i) an event of
forfeiture or (ii) the third anniversary of the Effective Date of the Agreement or such later date as extended by mediation or arbitration as provided for in Section 12 of the Agreement, or the date upon which you shall cease to be an officer or
agent of the Company or upon which you shall resign by written notice to each party. In the event of the latter, the Company shall appoint a successor Escrow Agent. 
  
 13. If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations
in respect hereto, the necessary parties hereto shall join in furnishing such instruments. 
  
 14. It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the securities held by you hereunder, you are authorized and directed to retain in
your possession without liability to anyone all or any part of said securities until such disputes shall have been settled either by mutual written agreement of the parties concerned or by a final order, decree or judgment of a mediator or
arbitrator as provided for in Section 12 of the Agreement, or a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such
proceedings. 
  
 15. Any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties thereunto
entitled at the following addresses or at such other addresses as a party may designate by ten days’ advance written notice to each of the other parties hereto. 
  

			
	 COMPANY:                    
	  	 Pan Pacific Retail Properties, Inc.

	 	  	 1631-B South Melrose

	 	  	 Vista, California 92083

	 	  	 Attn: President

		
	 	  	 EMPLOYEE:

	 	  	 Stuart A. Tanz

	 	  	 17130 El Camino Real

	 	  	 P. O. Box 252

	 	  	 Rancho Santa Fe, CA 92067

		
	 ESCROW AGENT:
	  	 Corporate Secretary

	 	  	 Pan Pacific Retail Properties, Inc.

	 	  	 1631-B South Melrose

	 	  	 Vista, California 92083

  
 16. By signing these
Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint Escrow Instructions; you do not become a party to the Agreement. 
  

 3 

 17. This instrument shall be binding upon and inure to the benefit of the parties hereto, and their
respective successors and permitted assigns. 
  
 18. These Joint
Escrow Instructions shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 
  

			
	 PAN PACIFIC RETAIL PROPERTIES, INC.

		
	 By:
	 	  

	 Title:
	 	  

	
	 EMPLOYEE:

	
	

	 STUART A. TANZ

	
	 ESCROW AGENT:

	
	

	 Corporate Secretary

  

 4 

 EXHIBIT 3 
  

CONSENT OF SPOUSE 
  
 I, KAREN TANZ, spouse of Stuart A. Tanz, have read and approve the foregoing Restricted Stock Agreement. In consideration of granting of the Shares to my
spouse, set forth in the Restricted Stock Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Restricted Stock Agreement and agree to be bound by the provisions of the Restricted Stock
Agreement insofar as I may have any rights in said Restricted Stock Agreement or any Shares issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date
of the signing of the foregoing Restricted Stock Agreement. 
  

			
	 Dated:                     ,
2004

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