Document:

Stockholders Rights Agreement

 Exhibit 4.1
  
 STOCKHOLDERS’ RIGHTS AGREEMENT

                        THIS STOCKHOLDERS’ RIGHTS AGREEMENT (this
“Agreement”) is entered into as of November 5, 2002, by and among Pan Pacific Retail Properties, Inc., a Maryland corporation (the “Company”), Lazard Frères Real Estate Investors L.L.C., a New York limited
liability company (“LFREI”), LF Strategic Realty Investors L.P., a Delaware limited partnership (“LFSRI”), Prometheus Western Retail Trust, a Maryland real estate investment trust (“Retail Trust”),
and Prometheus Western Retail, LLC, a Delaware limited liability company (“Prometheus” and together with LFREI, LFSRI and Retail Trust, the “Lazard Parties,” each, a “Lazard Party”).
 RECITALS
                         WHEREAS, Prometheus holds shares of common stock of Center Trust, Inc., a Maryland
corporation (“Center Trust”); and
                         WHEREAS, pursuant to the terms of an Agreement and Plan of Merger, dated as of
November 5, 2002 (as the same may be amended, the “Merger Agreement”), by and among the Company, MB Acquisition, Inc., a Maryland corporation and wholly-owned subsidiary of the Company (“Merger Sub”), and Center
Trust, Merger Sub will merge with and into Center Trust (the “Merger”), with the result that each of outstanding shares of common stock of Center Trust will be converted into the right to receive shares of common stock of the
Company.
 AGREEMENT
                         NOW, THEREFORE, in consideration of the foregoing Recitals and for other good and
valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereby agree as follows:
                         1.     Definitions.  As used in this
Agreement, the following terms shall have the following meanings:
                         “Affiliate” of a specified Person means a Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the Person specified.
                         “Agreement” shall have the meaning set forth in the
Preamble.
                         “Board” means the board of
directors of the Company.
                         “Business
Day” means any day on which banks are not required or authorized to close in the City of New York.
                         “Center Trust” shall have the meaning set forth in the
Recitals.
                         “Closing Date” means the
date the Merger is consummated by filing the articles of merger related to the Merger with the State Department of Assessments and Taxation of
 
 
 

   
 Maryland, or such other date as the Company, Merger Sub and Center Trust shall specify in such filings in accordance with applicable law.
                         “Common Stock” means the Common Stock, par value $0.01
per share, of the Company or any other shares of capital stock or other securities of the Company into which such shares of Common Stock shall be reclassified or changed, including, by reason of a merger, consolidation, reorganization or
recapitalization.  If the Common Stock has been so reclassified or changed, or if the Company pays a dividend or makes a distribution on the Common Stock in shares of capital stock or subdivides (or combines) its outstanding shares of Common
Stock into a greater (or smaller) number of shares of Common Stock, a share of Common Stock shall be deemed to be such number of shares of stock and amount of other securities to which a holder of a share of Common Stock outstanding immediately
prior to such change, reclassification, exchange, dividend, distribution, subdivision or combination would be entitled.
                         “Company” shall have the meaning set forth in the
Preamble.
                         “Deferral Notice” shall
have the meaning set forth in Section 3(a)(v) hereof.
                         “Deferral Period” shall have the meaning set forth in Section
3(a)(v) hereof.
                         “Effective Time”
shall have the meaning assigned thereto in the Merger Agreement.
                         “Exchange Act” means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.
                         “Holder” means any record holder of Registrable Securities that
is a party to this Agreement, including a Permitted Transferee.
                         “Lazard Holder” means any Holder that is a Lazard Party or Lazard
Subsidiary.
                         “Lazard Parties” shall
have the meaning set forth in the Preamble of this Agreement.
                         “Lazard Subsidiary” means any majority-owned direct or indirect
subsidiary of a Lazard Party.
                         “LFSRI” shall have the meaning set forth in the
Preamble.
                         “Material Event” means any
event or the existence of any fact as a result of which the Company shall determine in its reasonable discretion that a Registration Statement shall contain any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, or any Prospectus shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading (including, in any such case, as a result of the non-availability of financial statements, so long as such financial statements are not yet required to be filed
under the Securities Act or the Exchange Act).
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                         “Merger”
shall have the meaning set forth in the Recitals.
                         “Merger Agreement” shall have the meaning set forth in the
Recitals. 
                         “Merger Sub” shall have
the meaning set forth in the Recitals.
                         “NASD” means the National Association of Securities Dealers,
Inc.
                         “Parent DownREIT,”
“Parent DownREIT Unit,” “Parent Stock Plans” and “Parent Stock Rights” shall have the meanings assigned thereto in the Merger Agreement.
                         “Permitted Transferees” means any Lazard Party, Lazard Subsidiary
or holder of equity interests in a Lazard Party; provided that in each case such transferee assumes and agrees to perform and becomes a party to this Agreement by notice and execution of a counterpart signature page.
                         “Person” means any individual, corporation, partnership,
joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.
                         “Prometheus” shall have the meaning set forth in the
Preamble.
                         “Prospectus” means the
prospectus included in any Registration Statement (including a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A), as amended or supplemented by
any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and all other amendments and supplements to such prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be incorporated by reference in such prospectus.
                         “Registrable Securities” means (i) shares of Common Stock issued
to any Lazard Party in the Merger and (ii) any shares of Common Stock issued or issuable with respect to the securities referred to in clause (i) above by way of a stock dividend or stock split or in connection with a combination of shares,
reclassification, recapitalization, merger, consolidation or other reorganization.  As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when they are no longer owned by any Lazard Party or a
Permitted Transferee.
                         “Registration
Statement” means any registration statement under the Securities Act of the Company that covers any of the Registrable Securities pursuant to the provisions of this Agreement, including the related Prospectus, all amendments and supplements
to such registration statement, including pre- and post-effective amendments, all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.
                         “Retail Trust” shall have the meaning set forth in the
Preamble.
                         “SEC” means the United
States Securities and Exchange Commission.
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                         “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.
                         “Shelf Effectiveness Period” shall have the meaning set forth in
Section 3(a)(i) hereof.
                         “Shelf Registration
Statement” shall have the meaning set forth in Section 3(a)(i) hereof.
                         “Shelf Underwriters” shall have the meaning set forth in Section
3(a)(iv)(B) hereof.
                         “Subject Shares”
means shares of Common Stock beneficially owned by the Lazard Parties, any Permitted Transferees or their controlled Affiliates whether acquired in the Merger, beneficially owned prior thereto or acquired thereafter.
                         “Subsequent Shelf Registration Statement” shall have the meaning
set forth in Section 3(a)(ii) hereof.
                         “Subsidiary” shall have the same meaning as in Rule 12b-2 under
the Exchange Act.
                         “Transaction Delay
Notice” shall have the meaning set forth in Section 3(a)(iv)(C) hereof.
                         “Transaction Delay Period” shall have the meaning set forth in
Section 3(a)(iv)(C) hereof.
                         2.      Information Rights.

                        (a)     From and after the Effective
Time, until such time as the Lazard Holders beneficially own in the aggregate shares of Common Stock representing less than 25% of the shares of Common Stock issued to Prometheus in the Merger, the Company shall, if requested by Prometheus, and
provided that Prometheus has entered into a customary confidentiality agreement with the Company:
                                   (i)  
    provide Prometheus with (a) the right to inspect and copy the books and records of the Company, (b) a copy of the Company’s audited financial statements and (c) copies of all operating plans, budgets and periodic
unaudited financial statements provided to the Board;
                                   (ii)  
   make appropriate officers of the Company available periodically for consultation with Prometheus or its designated representative with respect to matters relating to the business and affairs of the Company, including, without
limitation, significant changes in management personnel and compensation of employees, and significant acquisitions or disposition of assets;
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                                   (iii)  
  inform Prometheus or its designated representative in advance with respect to any significant corporate actions, including, without limitation, extraordinary dividends, mergers of the Company (excluding mergers of the Company with one or
more subsidiaries of the Company), significant acquisitions or dispositions of assets, issuances of significant amounts of debt or equity and material amendments to the charter or by-laws of the Company, and provide Prometheus or its designated
representative with the right to consult with the Company with respect to such actions; and
                                   (iv)  
   provide Prometheus or its designated representative with such other rights of consultation as are necessary to qualify its ownership of the shares of Common Stock that it received in the merger as a “venture capital
investment” as determined by regulations published by the United States Department of Labor.
                         (b)     For purposes of Section 2(a)(iii) above, the
Company shall make all determinations regarding the significance or materiality of corporate actions in its reasonable discretion.
                         (c)     The Company agrees to consider, in good faith,
the recommendations of Prometheus or its designated representative in connection with the matters on which it is consulted as described in Section 2(a) above, recognizing that the ultimate discretion with respect to all such matters shall be
retained by the Company.
                         (d)     In the event Prometheus transfers all or any
portion of the shares of Common Stock it receives in the Merger to an Affiliate of a Lazard Party that is intended to qualify as a venture capital operating company under the United States Department of Labor’s Plan Asset Regulation, such
transferee shall be afforded the same rights with respect to the Company afforded to Prometheus under this Section 2 and shall be treated, for such purposes, as a third-party beneficiary hereunder.
                         (e)     At such time as the Lazard Holders beneficially
own in the aggregate shares of common stock representing less than 25% of the shares of common stock issued to Prometheus in the Merger, LFREI shall promptly notify the Company that the Lazard Parties’ rights under this Section 2 have
terminated.
                         3.       Registration Rights.

                        (a)     Shelf
Registration.
                                   (i)  
    Shelf Registration Statement.  As promptly as practicable after the execution of this Agreement, the Company shall prepare and file with the SEC a Registration Statement for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 of the Securities Act registering the resale from time to time by the Holders of all of the Registrable Securities (the “Shelf Registration Statement”).  The Shelf Registration Statement
shall be on Form S-3, unless the Company is ineligible to use such form, in which case the Shelf Registration Statement shall be on another appropriate form, in any case permitting registration of such Registrable Securities for resale by such
Holders in accordance with the methods of distribution set forth in the Shelf Registration Statement (such methods of distribution to include
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 underwritten offerings and other methods designated in writing by the Holders pursuant to Section 3(d)).  The Lazard Parties shall be afforded a reasonable
opportunity to review and comment on the draft of the Shelf Registration Statement and any amendment thereto prior to the Company filing it with the SEC, and the Company shall consider in good faith the comments of the Lazard Parties and its
representatives in the preparation of the Shelf Registration Statement and any such amendment.  The Company shall cause the Shelf Registration Statement to comply as to form in all material respects with the applicable provisions of the
Securities Act and the rules and regulations thereunder.  The Company shall use all reasonable efforts to cause the Shelf Registration Statement to become effective as promptly as practicable and before the Closing Date.  The Company shall
use commercially reasonable efforts to keep the Shelf Registration Statement continuously effective under the Securities Act (subject to Section 3(a)(v)) until the earliest of (x) the first day after the first anniversary of the Closing Date upon
which the Lazard Parties and the Lazard Subsidiaries collectively own less than 1,000,000 shares of the Common Stock issued to Prometheus in the Merger, (y) the third anniversary of the Closing Date and (z) the sale of all of the Registrable
Securities included in the Shelf Registration Statement other than to Permitted Transferees (the “Shelf Effectiveness Period”).  Each Holder agrees that if such Holder wishes to sell Registrable Securities pursuant to the Shelf
Registration Statement and related Prospectus, it will do so only in accordance with this Section 3(a).
                                   (ii)  
   Subsequent Shelf Registrations.  If the initial Shelf Registration Statement or any Subsequent Shelf Registration Statement ceases to be effective for any reason at any time during the Shelf Effectiveness Period, the
Company shall use commercially reasonable efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within ten (10) days of such cessation of effectiveness (or, if the cessation of
effectiveness occurs during a Deferral Period, within three Business Days of the end of such Deferral Period) amend the Shelf Registration Statement in a manner reasonably expected by the Company to obtain withdrawal of the order suspending the
effectiveness thereof, or file an additional “shelf” Registration Statement pursuant to Rule 415 of the Securities Act covering all of the Registrable Securities (a “Subsequent Shelf Registration Statement”) to permit
registration of the Registrable Securities.  If a Subsequent Shelf Registration Statement is filed, the Company shall use its commercially reasonable efforts to cause the Subsequent Shelf Registration Statement to be declared effective under
the Securities Act as soon as reasonably practicable after such filing or, if filed during a Deferral Period, immediately after completion of the Deferral Period, and to keep such Registration Statement continuously effective until the end of the
Shelf Effectiveness Period.  As used herein, the term “Shelf Registration Statement” means the Shelf Registration Statement and any Subsequent Shelf Registration Statement.
                                   (iii)  
  Amendments to Shelf Registration Statement.  The Company shall promptly supplement and amend the Shelf Registration Statement and any related Prospectus if required by the rules, regulations or instructions applicable
to the registration form used by the Company for such Shelf Registration Statement, if required by the Securities Act or as reasonably requested by LFREI.
                                   (iv)  
   Underwritten Offerings.
                                     
         (A)     If one or more Holders proposes to sell Registrable Securities in a underwritten offering pursuant to the Shelf Registration Statement, such Holder or

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 Holders may request the Company in writing to effect such underwritten offering by supplement or amendment to the Shelf Registration Statement, stating the number of
Registrable Securities proposed to be sold.  The Company and all Holders proposing to distribute Registrable Securities through such underwritten offering shall enter into an underwriting agreement in customary form with the underwriters for
the offering.
                                     
         (B)     Any underwritten offering requested pursuant to this Section 3(a)(iv) shall be underwritten by two co-bookrunning managing underwriters.  The Holders shall
have the right to select one co-bookrunning managing underwriter and the Company shall have the right to select a second co-bookrunning managing underwriter (together, the “Shelf Underwriters”).
                                     
         (C)     Notwithstanding any provision of this Agreement to the contrary, the Company shall not be required to effect an offering pursuant to this Section 3(a)(iv) during
any Transaction Delay Period (as defined below) if, immediately following the Company’s receipt of a request from a Holder to effect an offering pursuant to this Section 3(a)(iv), the Company furnishes such Holder with a certificate signed by
an executive officer of the Company (a “Transaction Delay Notice”) to the effect that the Company (i) prior to the Company’s receipt of such request, had commenced preparations for the filing of a registration statement
pertaining to a public offering of securities of the Company for the account of the Company or (ii) has determined in good faith that an offering pursuant to Section 3(a)(iv) would likely materially interfere with a potential contemplated material
financing, acquisition, disposition, corporate reorganization or merger or other similar transaction involving the Company.  Any “Transaction Delay Period” shall be the period commencing on the day the Company furnishes a Transaction
Delay Notice and continuing until the date specified in the Transaction Delay Notice; provided, however, that the Transaction Delay Period shall not exceed (i) in the case of a Transaction Delay Notice furnished in the first year after the
Closing Date, a period of forty-five (45) days or (ii) in the case of a Transaction Delay Notice furnished after the first anniversary of the Closing Date, a period of ninety (90) days.  The Company may deliver no more than two (2) Transaction
Delay Notices in any twelve-month period, and the aggregate duration of all Transaction Delay Periods, combined with any Deferral Periods pursuant to Section 3(a)(v) below, shall not exceed (i) sixty (60) days in the first year after the Closing
Date or (ii) one hundred and twenty (120) days in any twelve (12) month period after the first anniversary of the Closing Date.
                                     
         (D)     The Company shall not be obligated to (i) effect more than two offerings pursuant to this Section 3(a)(iv), or (ii) effect any offering pursuant to this
Section 3(a)(iv) involving less than One Million (1,000,000) Registrable Securities.  An offering requested pursuant to this Section 3(a)(iv) shall not be deemed to have been effected for purposes of this Section 3(a)(iv)(D), unless (1) the
Shelf Registration Statement remains effective for a period of at least forty-five (45) days after commencement of the offering, and (2) the offering is not subject to any stop order or requirement of the SEC during the period specified in clause
(1) above (other than any such stop order, injunction, or other requirement of the SEC prompted by any act or omission of Holders of Registrable Securities).
                                     
         (E)     If in an underwritten offering requested pursuant to this Section 3(a)(iv), either Shelf Underwriter (after consultation with the other Shelf
Underwriter)
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 reasonably advises the Company in writing that, in its opinion, the number of Registrable Securities requested to be included in such offering exceeds the number that can
be sold in such offering at a price reasonably related to the then current market value of such securities, there shall be included in such offering only the Registrable Securities that such Shelf Underwriter so advises may be sold at a price
reasonably related to the then current market value of such securities.
                                   (v)  
    Suspension of Shelf Registration Statement.  Upon (A) the issuance by the SEC of a stop order suspending the effectiveness of the Shelf Registration Statement or the initiation of proceedings with respect to the
Shelf Registration Statement under Section 8(d) or 8(e) of the Securities Act or (B) the occurrence of a Material Event, the Company shall (i) in the case of clause (B) above, subject to the next to last sentence of this Section 3(a)(v), as promptly
as practicable prepare and file a post-effective amendment to the Shelf Registration Statement or a supplement to the related Prospectus or any document incorporated therein by reference or file any other required document that would be incorporated
by reference into the Shelf Registration Statement and Prospectus so that such Shelf Registration Statement does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, and the related Prospectus does not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, and, in the case of a post-effective amendment to the Shelf Registration Statement,
subject to the next to last sentence of this Section 3(a)(v), use commercially reasonable efforts to cause it to be declared effective as promptly as is reasonably practicable, and (ii) give notice to the Holders named as selling security holders in
the Prospectus that the availability of the Shelf Registration Statement is suspended (a “Deferral Notice”).  Upon receipt of any Deferral Notice, each Holder agrees not to sell any Registrable Securities pursuant to the
Registration Statement until such Holder has received copies of the supplemented or amended Prospectus provided for in clause (i) above, or until it is advised in writing by the Company that the Prospectus may be used and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus.  The Company will use reasonable best efforts to ensure that the use of the Prospectus may be resumed (x) in the case of clause (A)
above, as promptly as is practicable, but in no event later than fifteen (15) days after the Deferral Notice is given to the Holders, (y) in the case of clause (B) above, as soon as in the reasonable judgment of the Company the public disclosure of
such Material Event would not be prejudicial to or contrary to the interests of the Company, but in no event later than (i) in the case of a Deferral Notice furnished in the first year after the Closing Date, forty-five (45) days after the Deferral
Notice is furnished to the Holders or (ii) in the case of a Deferral Notice furnished after the first anniversary of the Closing Date, ninety (90) days after the Deferral Notice is furnished to the Holders.  The period during which the
availability of the Shelf Registration Statement and any related Prospectus is suspended pursuant to Section 3(a)(v) (the “Deferral Period”), combined with any Transaction Delay Periods pursuant to Section 3(a)(iv)(C) above, shall
not exceed sixty (60) days during the first year after the Closing Date and one hundred and twenty (120) days during any twelve (12) month period after the first anniversary of the Closing Date.
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                         (b)     Holders Incidental Registration. 
Subject to Section 3(f), if at any time the Company determines, in its sole discretion, that it shall file a registration statement under the Securities Act (other than (i) a registration statement providing for an offering on a delayed or
continuous basis pursuant to Rule 415 of the Securities Act or (ii) a registration statement on Form S-4 or S-8 or any successor or similar forms) registering an underwritten offering of Common Stock for cash consideration on any form that also
would permit the registration of the Registrable Securities and such filing is to be on its behalf and/or on behalf of selling holders of the Company’s securities, the Company shall each such time promptly give each Lazard Holder written notice
of such determination setting forth the date on which the Company proposes to file such registration statement, and advising each Lazard Holder of its right to have Registrable Securities included in such registration.  The Company will select
the managing underwriter and all other underwriters in any underwritten offering pursuant to this Section 3(b).  Upon the written request of any Lazard Holder received by the Company no later than ten (10) days after the date of the
Company’s notice, the Company shall use commercially reasonable efforts to cause to be registered under the Securities Act all of the Registrable Securities that each such Lazard Holder has so requested to be registered; provided that
if, at any time after giving written notice of its intention to register any securities and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to
proceed with the proposed registration of the securities to be sold by it, the Company may, at its election, give written notice of such determination to each Lazard Holder of Registrable Securities and, thereupon, shall be relieved of its
obligation to register any Registrable Securities in connection with such registration (but not from its obligation to pay the registration expenses pursuant to Section 3(e) in connection therewith).  If, in the written opinion of the managing
underwriter, the total amount of such securities to be so registered, including such Registrable Securities, will exceed the maximum amount of the Company’s securities that can be marketed either (a) at a price reasonably related to the then
current market value of such securities, or (b) without otherwise materially and adversely affecting the entire offering, then the Company shall include in such registration (1) first, all the securities the Company proposes to sell for its own
account without having the adverse effect referred to above, and (2) second, all Registrable Securities requested to be included in such registration by the Lazard Holders pursuant to this Section 3(b), all shares of Common Stock required to be
registered on behalf of third parties exercising “demand” registration rights and all shares of Common Stock requested to be included by third parties exercising the rights similar to those granted in this Section 3(b) up to the number
which the Company has been advised can be sold in such offering without having either of the adverse effects referred to above.  The number of such Registrable Securities requested to be included in such registration by the Lazard Holders
pursuant to this Section 3(b) shall be limited to such extent and shall be allocated pro rata among all such requesting Lazard Holders and third parties exercising “demand” registration rights and rights similar to those granted in this
Section 3(b) on the basis of the relative number of Registrable Securities each such Lazard Holder has requested to be included in such registration and the number of shares of Common Stock requested to be included in such registration by such third
parties.
                         (c)     Obligations of the Company.  Whenever
required under Section 3(a) to use commercially reasonable efforts to effect the registration of any Registrable Securities, the Company shall, as expeditiously as possible:
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                               (i)      furnish
to the Holders such reasonable numbers of copies of the Registration Statement and any Prospectus included therein (including each preliminary Prospectus and any amendments or supplements thereto (including all exhibits and documents incorporated by
reference) in conformity with the requirements of the Securities Act) and such other documents and information as they may reasonably request and make available for inspection by the parties referred to in Section 3(c)(ii) below such financial and
other information and books and records of the Company, and cause the officers, directors, employees, counsel and independent certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary, in the judgment
of the respective counsel referred to in such Section 3(c)(ii);
                               (ii)     provide
(1) the Holders of the Registrable Securities to be included in such Registration Statement, (2) the Shelf Underwriters, if any, therefor, (3) the sales or placement agent, if any, therefor, (4) counsel for the Shelf Underwriters
or agent, if any, therefor, and (5) not more than one counsel for all the Holders of such Registrable Securities the opportunity to participate in the preparation of such Registration Statement, each Prospectus included therein or filed with
the SEC, and each amendment or supplement thereto, and (a) promptly incorporate in a Prospectus supplement or post-effective amendment such information as the Shelf Underwriters, their counsel, or such Holders’ counsel reasonably determine is
necessary and appropriate to be included therein, and (b) make all required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated
in such Prospectus supplement or post-effective amendment;
                               (iii)    use commercially
reasonable efforts to register or qualify the Registrable Securities covered by such Registration Statement under such other securities or Blue Sky laws of such jurisdictions within the United States as the Holders shall reasonably request for the
distribution of the Registrable Securities covered by the Registration Statement; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business in or to file a general
consent to service of process in any jurisdiction wherein it would not but for the requirements of this paragraph (iii) be obligated to do so; and provided further that the Company shall not be required to qualify such Registrable Securities
in any jurisdiction in which the securities regulatory authority requires that any Holder submit its Registrable Securities to the terms, provisions and restrictions of any escrow, lockup or similar agreement(s) for consent to sell Registrable
Securities in such jurisdiction unless such Holder agrees to do so;
                               (iv)    promptly notify
the selling Holders, the sales or placement agent, if any, and the Shelf Underwriters, if any, (1) when such Registration Statement, amendment, supplement or post-effective amendment has been filed, and, with respect to such Registration Statement
or any post-effective amendment, when the same has become effective, (2) of any comments by the SEC or by any Blue Sky or securities commissioner or regulator of any state with respect thereto, (3) of the issuance by the SEC of any stop order
suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceedings for that purpose, or (4) of the receipt by the Company of any notification with respect to the suspension of the qualification of
the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;
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                               (v)     subject to
Section 3(a)(v), use commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of such Registration Statement and use its commercially reasonable efforts to cause such Registrable Securities covered by any
such Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the Holders to consummate the disposition of such Registrable Securities;
                               (vi)    furnish on the
date that the Registrable Securities are delivered to the Shelf Underwriters, if any, for sale pursuant to such registration, (1) a signed opinion, dated such date, of the legal counsel representing the Company (which may be the general counsel
or any other attorney employed by the Company) for the purpose of such registration, addressed to the Shelf Underwriters as to such matters as such underwriters may reasonably request and as would be customary in such a transaction; and
(2) letters dated such date and the date the offering is priced from the independent certified public accountants of the Company, addressed to the Shelf Underwriters, (i) stating that they are independent certified public accountants
within the meaning of the Securities Act and that, in the opinion of such accountants, the financial statements and other financial data of the Company included in the Registration Statement or the Prospectus, or any amendment or supplement thereto,
comply as to form in all material respects with the applicable accounting requirements of the Securities Act and (ii) covering such other financial matters with respect to the registration in respect of which such letter is being given as the
Shelf Underwriters may reasonably request and as would be customary in such a transaction;
                               (vii)    enter into
customary agreements (including, without limitation, an underwriting agreement in customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities to be so
included in the Registration Statement;
                               (viii)   cooperate with the
Holders of the Registrable Securities and the Shelf Underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, and enable such Registrable Securities to be in such
denominations and registered in such names as the Shelf Underwriters, if any, may request at least five Business Days prior to any sale of the Registrable Securities;
                               (ix)     otherwise
comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, but not later than eighteen months after the effective date of the Registration Statement, an earnings
statement covering the period of at least twelve months beginning with the first full month after the effective date of such Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act;
                               (x)     use
commercially reasonable efforts to list the Registrable Securities covered by such Registration Statement with any securities exchange on which the Common Stock of the Company is then listed; and
                               (xi)    use commercially
reasonable efforts to make available appropriate senior executive officers of the Company to participate in customary “road show” presentations that may be reasonably requested by the Holders in any underwritten offering; provided that
the
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 participation of such senior executive officers shall not interfere with the conduct of their duties to the Company.
 With respect to a registration required pursuant to Section 3(a), the period of distribution of Registrable Securities in a firm commitment underwritten public offering shall be deemed to extend until each underwriter has
completed the distribution of all securities purchased by it but in no event longer than forty-five (45) days from the effective date.
                         (d)     Furnish Information.  It shall be a
condition precedent to the obligations of the Company to take any action pursuant to this Agreement that the Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them, and the intended method
of disposition of such securities as the Company shall reasonably request in writing and as shall be required in connection with the action to be taken by the Company.
                         (e)     Expenses of Registration.  All
expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications of Registrable Securities pursuant to Sections 3(a) and 3(b) for each Holder, including without limitation all
registration, filing and qualification fees, word processing, duplicating, printers’ and accounting fees (including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and
compliance), fees of the NASD or listing fees, messenger and delivery expenses, all fees and expenses of complying with state securities or Blue Sky laws, and fees and disbursements of counsel for the Company, shall be paid by the Company.  The
Holders shall bear and pay the underwriting commissions and discounts applicable to the Registrable Securities offered for their account in connection with any regulations, filings and qualifications made pursuant to this Agreement, as well as
related fees and disbursements of counsel or other advisors to Holders.
                         (f)     Underwriting Requirements.  In
connection with any underwritten offering contemplated by Section 3(b), the Company shall not be required to include Registrable Securities in such underwritten offering unless the Lazard Holder of such Registrable Securities accepts the terms of
the underwriting of such offering that have been reasonably agreed upon between the Company and the underwriters selected by the Company in accordance with the terms of this Agreement.
                         (g)     Rule 144 and Rule 145 Information. 
With a view to making available the benefits of certain rules and regulations of the SEC which may at any time permit the sale of the Registrable Securities to the public without registration at all times, the Company agrees to:
                                  (i)   
  make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act;
                                  (ii)   
 use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; and
 12

 
                                  (iii)   
 furnish to each Holder of Registrable Securities forthwith upon request a written statement by the Company as to its compliance with the reporting requirements of such Rule 144 under the Securities Act and of the Securities Act and the Exchange
Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed by the Company as such Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing such Holder
to sell any Registrable Securities without registration.
 Notwithstanding anything contained in this Section 3(g), the Company may cease to file reports with the SEC under Section 12 of the Exchange
Act if it then is permitted to do so pursuant to the Exchange Act and the rules and regulations thereunder.
                         (h)     Indemnification.  In the event any
Registrable Securities are included in a Registration Statement under this Agreement:
                                  (i)   
  The Company shall indemnify and hold harmless each Holder, such Holder’s directors and officers, each Person who participates in the offering of such Registrable Securities, including underwriters (as defined in the Securities Act),
and each Person, if any, who controls such Holder or participating Person within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims, damages and liabilities
(including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) to which they may become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or proceedings in respect thereof) arise out of or are based on any untrue or alleged untrue statement of a material fact contained in such Registration Statement, preliminary Prospectus, final Prospectus or
amendments or supplements thereto or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however,
that the indemnity agreement in this Section 3(h)(i) shall not apply to any loss, claim, damage or liability resulting from a Holder’s failure to deliver at or prior to written confirmation of sale, the most recent Prospectus, as amended or
supplemented, if such Prospectus, as amended or supplemented, would have corrected such untrue statement or omission of a material fact or alleged untrue statement or omission of a material fact, but only if copies of such Prospectus have previously
been furnished to such Holder; provided, further, that the indemnity agreement contained in this Section 3(h)(i) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Company (which consent shall not be unreasonably withheld); provided further that the Company shall not be liable to any Holder, such Holder’s directors and officers, participating Person or controlling Person
in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon (A) an untrue statement or alleged untrue statement or omission or alleged omission made in connection with such Registration
Statement, preliminary Prospectus, final Prospectus or amendments or supplements thereto, in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, such
Holder’s directors and officers, participating Person or controlling Person or (B) an offer or sale of Registrable Securities during a Deferral Period or in violation of the Holder’s obligations under Section 3(a)(v).  Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of any such Holder, such
 13

 
 Holder’s directors and officers, participating Person or controlling Person, and shall survive the transfer of such securities by such Holder.
                                  (ii)   
  Each Holder requesting or joining in a registration jointly and severally shall indemnify and hold harmless the Company, each of its directors and officers, each Person, if any, who controls the Company within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, and each agent and any underwriter for the Company (within the meaning of the Securities Act) to the same extent as the foregoing indemnity from the Company to the Holders but only
with reference to written information relating to such Holder furnished to the Company expressly for use in connection with such registration, including without limitation information provided by the Holder pursuant to Section 3(d); provided,
however, that the indemnity agreement contained in this Section 3(h)(ii) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of such Holder (which
consent shall not be unreasonably withheld); and provided further that the liability of Holders hereunder shall be limited to the proportion of any such loss, claim, damage, liability or expense that is equal to the proportion that the net
proceeds from the sale of the shares sold by Holders under such Registration Statement bears to the total net proceeds from the sale of all securities sold thereunder.
                                  (iii)    In
case any proceeding (including any governmental investigation) shall be instituted involving any Person in respect of which indemnity may be sought pursuant to either of the two preceding paragraphs, such Person (the “indemnified
party”) shall promptly notify the Person against whom such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably
satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding.  In any such
proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (1) the indemnifying party and the indemnified party shall have
mutually agreed to the retention of such counsel or (2) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between them.  It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all such indemnified parties and that all such fees and expenses shall be reimbursed as they are
incurred.  Such firm shall be designated in writing by the Holders, in the case of parties indemnified pursuant to Section 3(h)(i), and by the Company, in the case of parties indemnified pursuant to Section 3(h)(ii).  The indemnifying
party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party
from and against any loss or liability by reason of such settlement or judgment.  Notwithstanding the foregoing sentence, 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 the second and third sentences of this paragraph, the
 14

 
 indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more
than thirty (30) days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement.  No
indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding.
                                  (iv)   
 Indemnification similar to that specified in Section 3(h)(iii) shall be given by the Company and each Holder of Registrable Securities with respect to any required registration or other qualification of securities under any federal or state law
or regulation or governmental authority other than the Securities Act.
                                  (v)   
  If the indemnification provided for in this Section 3(h) is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, claim, damage, liability or action referred to herein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate
to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, claim, damage, liability or action as well as any
other relevant equitable considerations; provided that the maximum amount of liability in respect of such contribution shall be limited, in the case of each seller of Registrable Securities, to an amount equal to the net proceeds actually received
by such seller from the sale of Registrable Securities effected pursuant to such registration.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
                         (i)     Lockup.  Each Holder shall, in
connection with any underwritten offering of the Company’s securities in which such Holder participates pursuant to Section 3(b), upon the reasonable request of the underwriters managing any underwritten offering of such securities, agree in
writing not to effect any disposition or distribution of any Subject Shares (other than that included in the registration) without the prior written consent of such underwriters for such period of time (not to exceed ninety (90) days) from the
effective date of such registration as the underwriters may specify.
                         (j)     Transfer of Registration Rights.  The
registration rights of any Holder under this Agreement with respect to the Registrable Securities may be transferred to any Permitted Transferee; provided, however, that (1) the transferring Holder shall give the Company written notice at or
prior to the time of such transfer stating the name and address of the transferee and identifying the securities with respect to which the rights under this Agreement are being transferred, (2) such Permitted Transferee shall agree in writing in
form and substance
 15

 
 reasonably satisfactory to the Company, to be bound as a Holder by the provisions of this Agreement and (3) the benefits of Section 3(b) shall only be available to Lazard
Parties and Lazard Subsidiaries.
                         4.       Miscellaneous.

                        (a)     Termination.  If
the Merger Agreement is terminated prior to the Effective Time, this Agreement and the obligations of the parties hereunder shall concurrently terminate.
                         (b)     Further Actions.  Each of the parties
hereto agrees that it will use commercially reasonable efforts to do all things necessary to effectuate this Agreement.
                         (c)     Amendments, Waivers, Etc.  This
Agreement may not be amended, changed, supplemented, waived or otherwise modified or terminated, except upon the execution and delivery of a written agreement executed by the Company, the Holders of a majority of the Registrable Securities and
LFREI.  The failure of any party hereto to exercise any right, power or remedy provided under this Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other party hereto with its
obligations hereunder, and any custom or practice of the parties at variance with the terms hereof shall not constitute a waiver by such party of its right to exercise any such or other right, power or remedy or to demand such compliance.

                        (d)     Remedies.  The
parties hereto agree that irreparable damage would occur in the event any of the provisions of this Agreement were not to be performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms
hereof in addition to any other remedies at law or in equity.
                         (e)     Notices.  Any notices or other
communications required or permitted under, or otherwise in connection with this Agreement shall be in writing and shall be deemed to have been duly given when delivered in Person or upon confirmation of receipt when transmitted by facsimile
transmission (but only if followed by transmittal by national overnight courier or hand for delivery on the next Business Day) or on receipt after dispatch by registered or certified mail, postage prepaid, addressed, or on the next Business Day if
transmitted by national overnight courier, in each case as follows:

	  
 	 If to Company, at:
 	 Pan Pacific Retail Properties, Inc.
 
	  
 	 1631-B South Melrose Drive
 
	  
 	 Vista, California 92083 
 
	  
 	 Facsimile:    (760) 727-1430
 
	  
 	 Attention:    Chief Executive Officer
 
	  
 	  
 
	  
 	 With a copy to:
 	 Latham & Watkins
 
	  
 	 650 Town Center Drive, Suite 2000
 
	  
 	 Costa Mesa, California 92626
 
	  
 	 Facsimile:    (714) 755-8290
 
	  
 	 Attention:    William J. Cernius
 

 16

 

	  
 	 If to an Lazard Party or 
 a Permitted Transferee, at:
 	 
 Lazard Frères Real Estate Investors L.L.C.
 
	  
 	 30 Rockefeller Plaza 50th Floor
 
	  
 	 New York, New York 10020 
 
	  
 	 Facsimile:  (212) 332-1793
 
	  
 	 Attention:  General Counsel
 
	  
 	  
 
	  
 	 With a copy to:
 	 Kirkland & Ellis
 
	  
 	 153 East 53rd Street
 
	  
 	 New York, New York 1002
 
	  
 	 Facsimile:  (212) 446-4900
 
	  
 	 Attention:  Andrew Nagel, Esq.
 

                         (f)     Headings.  The headings contained in
this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
                         (g)    Severability.  If any term or other
provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent
possible.
                         (h)    Entire
Agreement.  This Agreement  constitutes the entire agreement of the parties and supersedes all prior agreements and undertakings, both written and oral, between the parties, or any of them, with respect to the subject matter
hereof.
                         (i)    Assignment.  Neither this Agreement nor any
of the rights, interests, or obligations hereunder shall be assigned (whether by operation of law or otherwise) by a Lazard Party without the consent of the Company, or by the Company without the consent of holders of at least a majority in number
of the Registrable Securities then outstanding, provided, that, subject to Section 3(j), a Lazard Party can assign its rights hereunder to a Permitted Transferee without the consent of the Company.  Subject to the preceding sentence,
this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns.  
                         (j)    Parties in Interest.  This Agreement shall
be binding upon and inure solely to the benefit of each party hereto and their respective successors and assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person (other than indemnified parties
to the extent of the indemnification provided herein) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
 17

 
                         (k)    Governing Law; Consent to Jurisdiction; Waiver of
Trial by Jury.
                                  (i)   
   THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD, TO THE FULLEST EXTENT PERMITTED BY LAW, TO THE CONFLICTS OF LAWS PROVISIONS THEREOF WHICH MIGHT RESULT IN THE
APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.  
                                  (ii)   
  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.
                         (l)     Counterparts.  This Agreement may be
executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

                        (m)    Additional Covenants of the
Company.  During the period from the date of this Agreement and continuing until the earlier termination of this Agreement or the date the Shelf Registration Statement is declared effective under the Securities Act, without the written
consent of LFREI, the Company shall not and shall not permit any of its Subsidiaries to:
                                  (i)   
  issue, pledge or sell, or propose or authorize the issuance, pledge or sale, or grant any options or make any other agreements with respect to, any of its shares of capital stock; provided, however, the foregoing restrictions shall not
apply to (A) securities issued upon exercise of Parent Stock Rights upon payment of the exercise price thereof, (B) securities issued upon exercise of rights of the equity holders in the Parent DownREITs to convert their Parent DownREIT Units into
shares of Common Stock, (C) stock options or restricted stock awarded to directors, officers or employees of the Company pursuant to the Parent Stock Plans, (D) securities issued pursuant the Company’s dividend reinvestment plan or (E)
securities issued pursuant to Article II of the Merger Agreement; 
                                  (ii)   
  (A) sell, pledge, dispose of, grant or encumber any of the assets of the Company or any of its Subsidiaries consisting of stock or partnership interests of its Subsidiaries or fee interests in real property, other than sales or
dispositions of assets in an aggregate amount not to exceed $75,000,000, (B) acquire any assets consisting of fee interests in real property, other than assets in an aggregate amount not to exceed $75,000,000; (C) acquire all or substantially all of
the assets of any company, division or line of business of any Person, if the aggregate value of such assets exceeds $75,000,000; or (D) agree to enter into any merger, reorganization, share exchange, business combination or similar transaction
pursuant to which Company stockholders will receive any consideration (whether payable in cash, securities, property or other consideration) in exchange for their shares of Common Stock; provided that nothing herein shall prevent the Company or its
Subsidiaries from entering into leases of their real property assets; or
                                  (iii)   
 enter into an agreement, contract, commitment or arrangement to do any of the foregoing, or to authorize, recommend, propose or announce an intention to do any of the foregoing.
 18

 
                         IN WITNESS WHEREOF, the
parties have executed this Stockholders’ Rights Agreement as of the date first above written.

	  
 	 PAN PACIFIC RETAIL PROPERTIES, INC.,
 
	  
 	 a Maryland corporation
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	 /s/ STUART A. TANZ
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Name:
 	 Stuart A. Tanz
 	  
 
	  
 	 Title:
 	 Chief Executive Officer
 	  
 
	  
 	  
 	  
 
	  
 	 LAZARD FRÈRES REAL ESTATE INVESTORS L.L.C.,
 
	  
 	 a New York limited liability company
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	 By:
 	 /s/ MARK S. TICOTIN
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Name:
 	 Mark S. Ticotin
 	  
 
	  
 	 Title:
 	 Managing Principal
 	  
 
	  
 	  
 	  
 
	  
 	 LF STRATEGIC REALTY INVESTORS L.P.,
 
	  
 	 a Delaware limited partnership
 
	  
 	  
 	  
 
	  
 	 By:
 	 Lazard Frères Real Estate Investors L.L.C.
 
	  
 	 Its:
 	 General Partner
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	 By:
 	 /s/ MARK S. TICOTIN
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Name:
 	 Mark S. Ticotin
 	  
 
	  
 	 Title:
 	 Managing Principal
 	  
 
	  
 	  
 	  
 
	  
 	 PROMETHEUS WESTERN RETAIL TRUST,
 
	  
 	 a Maryland real estate investment trust
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	 By:
 	 /s/ MARK S. TICOTIN
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Name:
 	 Mark S. Ticotin
 	  
 
	  
 	 Title:
 	 Vice President
 	  
 
	  
 	  
 	  
 
	  
 	 PROMETHEUS WESTERN RETAIL, LLC,
 
	  
 	 a Delaware limited liability company
 
	  
 	  
 	  
 
	  
 	 By:
 	 Prometheus Western Retail Trust
 
	  
 	 Its:
 	 Managing Member
 
	  
 	  
 	  
 
	  
 	  
 	  
 
	  
 	 By:
 	 /s/ MARK S. TICOTIN
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Name:
 	 Mark S. Ticotin
 	  
 
	  
 	 Title:
 	 Vice President
 	  
 

 [Signature Page to the Stockholders’ Rights Agreement]
 Execution CopyStockholder Voting Agreement

 EXHIBIT 10.1
 STOCKHOLDER VOTING AGREEMENT
 BY AND AMONG
 PAN PACIFIC RETAIL PROPERTIES, INC.
 AND
 THE INDIVIDUALS LISTED ON
 SCHEDULE I HERETO
 Dated as of November 5, 2002
 Execution Copy

 
  STOCKHOLDER VOTING AGREEMENT
           This STOCKHOLDER VOTING AGREEMENT (this “Agreement”) is entered into as of November 5, 2002, by and among Pan Pacific Retail Properties, Inc., a
Maryland corporation (“Parent”), and the individuals listed on Schedule I hereto (each, a “Stockholder” and collectively, the “Stockholders”). 
 W I T N E S S E T H:
           WHEREAS, as of the date hereof, each Stockholder
is an executive officer or director of Center Trust, Inc., a Maryland corporation (the “Company”); 
           WHEREAS, as of the
date hereof, each Stockholder “beneficially owns” (as such term is defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) and is entitled to dispose of (or to direct the disposition of) and to vote (or to
direct the voting of) the number of shares of common stock, par value $0.01 per share (the “Common Stock”), of the Company set forth opposite such Stockholder’s name on Schedule I hereto (such shares of Common
Stock, together with any other shares of Common Stock the voting power over which is acquired by any Stockholder during the period from and including the date hereof through and including the date on which this Agreement is terminated in accordance
with its terms, are collectively referred to herein as the “Subject Shares”); 
           WHEREAS, Parent, MB Acquisition, Inc., a
Maryland corporation and a wholly-owned subsidiary of Parent (“Merger Sub”), and the Company propose to enter into an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), pursuant to
which Merger Sub will merge with and into the Company, with the Company surviving as a wholly-owned subsidiary of Parent (the “Merger”); and
           WHEREAS, as a condition to the willingness of Parent to enter into the Merger Agreement, and as an inducement and in consideration therefor, each Stockholder is
entering into this Agreement.
           NOW, THEREFORE, in consideration of the foregoing and the mutual promises, representations, warranties,
covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows:
 ARTICLE I
 DEFINITIONS
           Section 1.1     Capitalized Terms.  For purposes of this Agreement, capitalized terms used and not defined herein shall have the
respective meanings ascribed to them in the Merger Agreement.
 Execution Copy

 
            Section 1.2     Other Definitions. 
For purposes of this Agreement:
           (a)      “Affiliate” means, with respect to any
specified Person, any Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified.  
           (b)      “Person” means an individual, corporation, limited liability company, partnership, association, trust,
unincorporated organization, other entity or group.
 ARTICLE II
 VOTING AGREEMENT AND IRREVOCABLE PROXY
           Section 2.1     Agreement to Vote the Subject Shares.  Each Stockholder, in its capacity as such, hereby agrees that, during the
period commencing on the date hereof and continuing until the termination of this Agreement (such period, the “Voting Period”), at any meeting (or any adjournment or postponement thereof) of the Company’s stockholders, however
called, or in connection with any written consent of the of the Company’s stockholders, such Stockholder shall vote (or cause to be voted) its Subject Shares (x) in favor of the approval of the terms of the Merger Agreement, the Merger and
the other transactions contemplated by the Merger Agreement (and any actions required in furtherance thereof), (y) against any action, proposal, transaction or agreement that would result in a breach in any respect of any covenant,
representation or warranty or any other obligation or agreement of the Company under the Merger Agreement or of any Stockholder under this Agreement, and (z) except as otherwise agreed to in writing in advance by Parent, against the following
actions or proposals (other than the transactions contemplated by the Merger Agreement):  (i) any Acquisition Proposal; and (ii) (A) any change in the persons who constitute the board of directors of the Company that is not
approved in advance by at least a majority of the persons who were directors of the Company as of the date of this Agreement (or their successors who were so approved); (B) except as permitted in the Merger Agreement, any change in the present
capitalization of the Company or any amendment of the Company’s charter or bylaws; (C) any other material change in the Company’s corporate structure or business; or (D) any other action or proposal involving the Company or any
of its subsidiaries that is intended, or could reasonably be expected, to prevent, impede, interfere with, delay, postpone or adversely affect the transactions contemplated by the Merger Agreement.   Any such vote shall be cast or consent
shall be given in accordance with such procedures relating thereto as shall ensure that it is duly counted for purposes of determining that a quorum is present and for purposes of recording the results of such vote or consent.  Each Stockholder
agrees not to enter into any agreement, letter of intent, agreement in principle or understanding with any Person that violates or conflicts with or could reasonably be expected to violate or conflict with the provisions and agreements contained in
this Agreement or the Merger Agreement.
           Section 2.2      Grant of Irrevocable Proxy.  Each
Stockholder hereby appoints Stuart A. Tanz or, in his absence, Joseph B. Tyson or such other designee as may be certified by Stuart A. Tanz, and each of them individually, as such Stockholder’s proxy and attorney-in-fact, with full power
of substitution and resubstitution, to vote or act by written consent during the Voting Period with respect the Subject Shares in accordance with Section 2.1.  This proxy is given to
 Execution Copy
 2

 
  secure the performance of the duties of each Stockholder under this Agreement.  The Stockholders shall promptly cause a copy
of this Agreement to be deposited with the Company at its principal place of business.  Each Stockholder shall take such further action or execute such other instruments as may be necessary to effectuate the intent of this proxy.

          Section 2.3      Nature of Irrevocable Proxy.  The proxy and power of attorney granted pursuant to
Section 2.2 by each Stockholder shall be irrevocable during the term of this Agreement, shall be deemed to be coupled with an interest sufficient in law to support an irrevocable proxy and shall revoke any and all prior proxies granted
by such Stockholder.  The power of attorney granted by each Stockholder herein is a durable power of attorney and shall survive the dissolution, bankruptcy, death or incapacity of such Stockholder.
 ARTICLE III
 COVENANTS
           Section 3.1      Generally.

          (a)      Each Stockholder agrees that during the Voting Period, except as contemplated by the terms of this
Agreement, it shall not (i) sell, transfer, tender, pledge, encumber, assign or otherwise dispose of (collectively, a “Transfer”), or enter into any contract, option or other agreement with respect to, or consent to, a Transfer of,
any or all of the Subject Shares, (ii) exercise any option or similar right to purchase any additional shares of Common Stock or (iii) take any action that would have the effect of preventing, impeding, interfering with or adversely
affecting its ability to perform its obligations under this Agreement.
           (b)      In the event of a
stock dividend or distribution, or any change in the Common Stock by reason of any stock dividend or distribution, split-up, recapitalization, combination, exchange of shares or the like, the term “Subject Shares” shall be deemed to refer
to and include the Subject Shares as well as all such stock dividends and distributions and any securities into which or for which any or all of the Subject Shares may be changed or exchanged or which are received in such transaction.

          Section 3.2      Duties as Officers and Directors.  Notwithstanding any of the provisions of this
Agreement, Stockholders are permitted to act in their respective capacities as directors and/or executive officers of the Company in accordance with their duties to the Company and its stockholders.
 ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF EACH STOCKHOLDER
           Each Stockholder hereby represents
and warrants, jointly and severally, to Parent as follows:
           Section 4.1      Ownership of
Shares.  As of the date hereof, such Stockholder is the record, beneficial and lawful owner of the number of shares of Common Stock set forth opposite such Stockholder’s name on Schedule I and has the sole power to vote (or
cause to be voted) such shares of Common Stock.  Except as set forth on Schedule I, neither such Stockholder nor
 Execution Copy
 3

 
  any Affiliate of such Stockholder owns or holds any right to acquire any additional shares of any class of stock of the Company
or other securities of the Company or any interest therein or any voting rights with respect to any securities of the Company.  Such Stockholder has good and valid title to the number of shares of Common Stock set forth opposite such
Stockholder’s name on Schedule I, free and clear of any and all pledges, mortgages, liens, charges, proxies, voting agreements, encumbrances, adverse claims, options, security interests and demands of any nature or kind whatsoever, other
than those created by this Agreement. 
           Section 4.2      No Conflicts.  (i) No filing
with any governmental authority, and no authorization, consent or approval of any other Person is necessary for the execution of this Agreement by such Stockholder and the consummation by any Stockholder of the transactions contemplated hereby and
(ii) none of the execution and delivery of this Agreement by such Stockholder, the consummation by such Stockholder of the transactions contemplated hereby or compliance by such Stockholder with any of the provisions hereof shall (A) result in,
or give rise to, a violation or breach of or a default under any of the terms of any material contract, understanding, agreement or other instrument or obligation to which such Stockholder is a party or by which such Stockholder or any of its
Subject Shares or assets may be bound, or (B) violate any applicable order, writ, injunction, decree, judgment, statute, rule or regulation which could reasonably be expected to adversely affect such Stockholder’s ability to perform its
obligations under this Agreement.  
           Section 4.3      Reliance by Parent.  Such
Stockholder understands and acknowledges that Parent is entering into the Merger Agreement in reliance upon the execution and delivery of this Agreement by such Stockholder.
 ARTICLE
V
 REPRESENTATIONS AND WARRANTIES OF PARENT
           Parent hereby represents and warrants to the Stockholders as follows:

          Section 5.1      Due Organization, etc.  Parent is a company duly organized and validly existing
under the laws of Maryland.  Parent has all necessary corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby by Parent has been duly authorized by all necessary action on the part of Parent.
           Section 5.2      Conflicts.  (a) No filing with any governmental authority, and no authorization, consent or
approval of any other Person is necessary for the execution of this Agreement by Parent and, except as provided in the Merger Agreement, for the consummation by Parent of the transactions contemplated hereby and (b) none of the execution and
delivery of this Agreement by Parent, the consummation by Parent of the transactions contemplated hereby shall (i) conflict with or result in any breach of the organizational documents of Parent, (ii) result in a violation or breach of or
a default under any of the terms of any material contract, understanding, agreement or other instrument or obligation to which Parent is a party or by which Parent or any of its assets may be bound, or (iii) violate any applicable order,
writ,
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  injunction, decree, judgment, statute, rule or regulation which could reasonably be expected to adversely affect Parent’s
ability to perform its obligations under this Agreement.
           Section 5.3      Reliance by the
Stockholders.  Parent understands and acknowledges that the Stockholders are entering into this Agreement in reliance upon the execution and delivery of the Merger Agreement by Parent.
 ARTICLE VI
 TERMINATION
           Section 6.1      Termination. 
This Agreement shall terminate, and neither Parent nor any Stockholder shall have any rights or obligations hereunder and this Agreement shall become null and void and have no effect upon the earliest to occur of (i) the mutual consent of
Parent and each Stockholder, (ii) the Effective Time and (iii) the date of termination of the Merger Agreement in accordance with its terms; provided, however, that termination of this Agreement shall not prevent any party
hereunder from seeking any remedies (at law or in equity) against any other party hereto for such party’s breach of any of the terms of this Agreement.  Notwithstanding the foregoing, Sections 7.4 through 7.14, inclusive, of
this Agreement shall survive the termination of this Agreement.
 ARTICLE VII
 MISCELLANEOUS
           Section 7.1      Publication.  Each Stockholder hereby permits Parent to publish and disclose in the Proxy
Statement/Prospectus (including all documents and schedules filed with the Securities and Exchange Commission) its identity and ownership of shares of Common Stock and the nature of its commitments, arrangements and understandings pursuant to this
Agreement.
           Section 7.2      Affiliate Letters.  Each Stockholder agrees to execute an
affiliate agreement, as soon as practicable after the date hereof, in substantially the form attached hereto as Exhibit A.
           Section 7.3      Further Actions.  Each of the parties hereto agrees that it will use its best efforts to do all
things necessary to effectuate this Agreement. 
           Section 7.4      Amendments, Waivers,
etc.  This Agreement may not be amended, changed, supplemented, waived or otherwise modified, except upon the execution and delivery of a written agreement executed by each of the parties hereto.  The failure of any party hereto to
exercise any right, power or remedy provided under this Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other party hereto with its obligations hereunder, and any custom or practice of the
parties at variance with the terms hereof shall not constitute a waiver by such party of its right to exercise any such or other right, power or remedy or to demand such compliance.
           Section 7.5      Notices.  All notices, requests, claims, demands and other communications hereunder shall be in
writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by cable, telecopy, telegram or telex, by
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  registered or certified mail (postage prepaid, return receipt requested), or by overnight courier, to the respective parties at
the following addresses (or at such other address for a party as shall be specified by like notice):

	 If to Parent or Merger Sub:
 
	  
 
	 Pan Pacific Retail Properties, Inc.
 
	 1631-B South Melrose Drive
 
	 Vista, California 92083
 
	 Attention:      Stuart A. Tanz
 
	 Fax No.:          (760) 727-1430
 
	  
 
	 with an additional copy to:
 
	  
 
	 Latham & Watkins
 
	 650 Town Center Drive
 
	 Costa Mesa, California  92626
 
	 Attention:      William J. Cernius, Esq.
 
	 Fax No.:          (714) 755-8290
 
	  
 
	 If to any Stockholder, to such Stockholder at the address corresponding to such Stockholder’s name on Schedule I, with a copy to:
 
	  
 
	 Skadden, Arps, Slate, Meagher & Flom LLP
 
	 300 South Grand Avenue, Suite 3400
 
	 Los Angeles, California
 
	 Attention:      Brian McCarthy, Esq.
 
	                         Jonathan Friedman, Esq.

	 Fax No.:          (213) 687-5600
 

           Section 7.6      Severability.  If any term or other provision of this agreement is invalid, illegal or incapable of
being enforced because of any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner adverse to any party to this Agreement.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.
           Section 7.7      Entire Agreement.  This Agreement (together with the Merger Agreement, to the extent referred to
herein) constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements and undertakings, both written and oral, among the parties, or any of them, with respect to the subject matter
hereof.
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            Section
7.8      Assignment.  This Agreement shall not be assigned by operation of law or otherwise without the prior written consent of each of the parties, except that Parent may assign and transfer its rights
and obligations hereunder to any direct or indirect wholly subsidiary of Parent.
           Section
7.9      Parties in Interest.  This Agreement shall be binding upon and inure solely to the benefit of each party hereto and their respective successors and assigns, and nothing in this Agreement,
express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
           Section 7.10    Mutual Drafting.  Each party hereto has participated in the drafting of this Agreement, which each party
acknowledges is the result of extensive negotiations between the parties.
           Section 7.11    Governing Law and
Consent to Jurisdiction; Waiver of Trial by Jury.
           (a)      This Agreement shall be governed by and
construed in accordance with, the laws of the State of California without regard, to the fullest extent permitted by law, to the conflicts of laws provisions thereof which might result in the application of the laws of any other jurisdiction. 
Each of the parties submits to the non-exclusive jurisdiction of the state and federal courts of the United States located in the County of Orange, California with respect to any claim or cause of action arising out of this Agreement or the
transactions contemplated hereby.
           (b)      Each of the parties hereto hereby irrevocably and
unconditionally waives any right it may have to trial by jury in connection with any litigation arising out of or relating to this Agreement or any of the other transactions contemplated hereby or thereby.
           Section 7.12    Specific Performance.  Each of the parties hereto acknowledges and agrees that the other parties would be
irreparably damaged in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  Accordingly, each of the parties agrees that they each shall be entitled to an
injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and conditions hereof in any action instituted in any court of the United States or any state having competent
jurisdiction, in addition to any other remedy to which such party may be entitled, at law or in equity.
           Section
7.13    Headings.  The descriptive headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
           Section 7.14    Counterparts.  This Agreement may be executed in two or more counterparts, and by the different parties in separate
counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.
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7

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

	  
 	 PAN PACIFIC RETAIL PROPERTIES, INC.
 
	  
 	  
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	 /s/ STUART A. TANZ
 
	  
 	  
 	 
 
	  
 	  
 	 Stuart A. Tanz
 Chairman, President and Chief Executive Officer
 
	  
 	  
 	  
 
	  
 	  
 
	  
 	  
 	  
 
	  
 	 STOCKHOLDERS
 
	  
 	  
 
	  
 	  
 
	  
 	 By:
 	 /s/ EDWARD D. FOX, JR.
 
	  
 	  
 	 
 
	  
 	  
 	 Edward D. Fox, Jr.
 
	  
 	  
 
	  
 	  
 	   
 
	  
 	  
 	   
 
	  
 	 By:
 	 /s/ STUART J.S. GULLAND
 
	  
 	  
 	 
 
	  
 	  
 	 Stuart J.S. Gulland
 
	  
 	  
 
	  
 	  
 	   
 
	  
 	  
 	   
 
	  
 	 By:
 	 /s/ EDWARD A. STOKX
 
	  
 	  
 	 
 
	  
 	  
 	 Edward A. Stokx
 
	  
 	  
 	  
 
	  
 	  
 

 [Signature Page to Stockholder Voting Agreement]
 Execution Copy

 
  Schedule I

	 Stockholder Name
 	   
 	 Address
 	   
 	 Number of Shares of Common Stock
 	   
 
	 
 	  
 	 
 	  
 	 
 	  
 
	 Edward D. Fox, Jr.
 	  
 	  
 	  
 	 909,849
 	  
 
	 Stuart J.S. Gulland
 	  
 	  
 	  
 	 182,297
 	  
 
	 Edward A. Stokx
 	  
 	  
 	  
 	 3,871
 	  
 

 Execution Copy

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