Document:

Registration Rights Agreement, Saul Kreshek, Ernest Grossman and Margaret Lewick

 
EXHIBIT 4.19

 

 
REGISTRATION RIGHTS AGREEMENT 
 
by and among 
 
PAN PACIFIC RETAIL PROPERTIES, INC. 
 
and 
 
THE UNDERSIGNED HERETO 
 
dated as of 
 
January 17, 2003 
 

 
TABLE OF
CONTENTS 
 

	  	   	  	   	  	   	  Page

	  1.
	   	  Definitions
	   	  1

	  	   	  (a)
	   	  “Agreement”
	   	  1

	  	   	  (b)
	   	  “Company”
	   	  1

	  	   	  (c)
	   	  “Company Common Stock”
	   	  1

	  	   	  (d)
	   	  “Company Registration Expenses”
	   	  2

	  	   	  (e)
	   	  “Commission”
	   	  2

	  	   	  (f)
	   	  “Contribution Agreement”
	   	  2

	  	   	  (g)
	   	  “Effective Time”
	   	  2

	  	   	  (h)
	   	  “Exchange Act”
	   	  2

	  	   	  (i)
	   	  “Issuee”
	   	  2

	  	   	  (j)
	   	  “Issuee OP Units”
	   	  2

	  	   	  (k)
	   	  “NASD”
	   	  2

	  	   	  (l)
	   	  “OP Units”
	   	  2

	  	   	  (m)
	   	  “Operating Partnership”
	   	  2

	  	   	  (n)
	   	  “Registration Expenses”
	   	  2

	  	   	  (o)
	   	  “Securities Act”
	   	  2

	  	   	  (p)
	   	  “Shelf Registration”
	   	  2

	
	  2.
	   	  Effectiveness of this Agreement
	   	  3

	
	  3.
	   	  Shelf Registration
	   	  3

	  	   	  (a)
	   	  Obligation to File
	   	  3

	  	   	  (b)
	   	  Black–Out Periods of the Issuee
	   	  3

	  	   	  (c)
	   	  Number of Shelf Registrations
	   	  3

	  	   	  (d)
	   	  Notice
	   	  4

	  	   	  (e)
	   	  Expenses
	   	  4

	
	  4.
	   	  Registration Procedures
	   	  4

	
	  5.
	   	  Preparation; Reasonable Investigation
	   	  6

	
	  6.
	   	  Indemnification
	   	  6

	  	   	  (a)
	   	  Indemnification by the Company
	   	  6

	  	   	  (b)
	   	  Indemnification by the Issuee
	   	  7

	  	   	  (c)
	   	  Notices of Claims, etc.
	   	  7

	  	   	  (d)
	   	  Other Indemnification
	   	  7

	  	   	  (e)
	   	  Indemnification Payments
	   	  8

	  	   	  (f)
	   	  Contribution
	   	  8

 

i 

 

	  	   	  	   	  Page

	  7.
	   	  Covenants Relating to Rule 144
	   	  8

	
	  8.
	   	  Miscellaneous
	   	  8

	  	   	  (a)
	   	  Counterparts
	   	  8

	  	   	  (b)
	   	  Governing Law
	   	  9

	  	   	  (c)
	   	  Entire Agreement
	   	  9

	  	   	  (d)
	   	  Notices
	   	  9

	  	   	  (e)
	   	  Successors and Assigns
	   	  9

	  	   	  (f)
	   	  Headings
	   	  10

	  	   	  (g)
	   	  Amendments and Waivers
	   	  10

	  	   	  (h)
	   	  Interpretation; Absence of Presumption
	   	  10

	  	   	  (i)
	   	  Severability
	   	  10

 

ii 

 
This
REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made as of January 17, 2003, by and among Pan Pacific Retail Properties, Inc., a Maryland corporation (the “Company”), and the undersigned hereto (the “Issuee”).
Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Second Amended Partnership Agreement (as defined herein). 
 
WHEREAS, as of the date hereof, the Issuee is a Limited Partner of CT Operating Partnership, L.P., a California limited partnership
formerly known as Alexander Haagen Properties Operating Partnership, L.P. (the “Operating Partnership”), pursuant to that certain Second Amended and Restated Agreement of Limited Partnership of CT Operating Partnership, L.P., a California
Limited Partnership, dated as of March 23, 2000, as amended by the First Amendment thereto dated October 1, 2002 (the “Partnership Agreement”); 
 
WHEREAS, Issue is the holder of the designated number Limited Partnership Units of the Partnership set forth next to their signature below
(such units held by the Issuee, the “Issuee OP Units”); 
 
WHEREAS, the Company and Center Trust, Inc., a Maryland corporation and general partner of the Operating Partnership (“Center Trust”) have, concurrently with the execution of this Agreement, entered into an
Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which a wholly-owned subsidiary of Pan Pacific will merge with and into Center Trust, with Center Trust continuing as the surviving corporation and wholly-owned subsidiary
of Pan Pacific (the “Merger”); 
 
WHEREAS, in connection with the Merger, the Issuee has entered into the Second Amended and Restated Agreement of Limited Partnership of CT Operating Partnership, L.P., a California limited partnership (the “Second Restated
Partnership Agreement”), which amends and restates the Partnership Agreement to provide, among other things, that Limited Partnership Units (as defined in the Second Restated Partnership Agreement) in the Operating Partnership will be
exchangeable for shares of common stock of the Company, upon the terms and conditions contained in the Second Restated Partnership Agreement; and 
 
NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree as follows: 
 
1. Definitions. As used herein, the following terms shall have the following meanings: 
 
(a) “Agreement” shall have the meaning set forth in
the first paragraph hereof. 
 
(b)
“Company” shall have the meaning set forth in the first paragraph hereof. 
 
(c) “Company Common Stock” shall mean the common stock of Company, par value $.01. 

 
(d)
“Company Registration Expenses” shall mean the fees and disbursements of counsel and independent public accountants for the Company incurred in connection with the Company’s performance of or compliance with this Agreement, including
the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance, and any premiums and other costs of policies of insurance obtained by the Company against liabilities arising out of
the sale of any securities. 
 
(e)
“Commission” shall mean the Securities and Exchange Commission, and any successor thereto. 
 
(f) “Contribution Agreement” shall mean that certain contribution agreement by and between Alexander Haagen Properties Operating
Partnership, L.P. and Issuee or one or more of Issuee’s affiliates, pursuant to which Issuee acquired the Issuee OP Units. 
 
(g) “Effective Time” shall mean the effective time of the Merger. 
 
(h) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and any successor
thereto, and the rules and regulations thereunder. 
 
(i) “Issuee” shall have the meaning set forth in the first paragraph hereof. 
 
(j) “Issuee OP Units” shall mean the OP Units received by the Issuee pursuant to the Contribution Agreement. 
 
(k) “NASD” shall mean the National Association of
Securities Dealers, Inc. 
 
(l) “OP
Units” shall mean the units of limited partnership interest in the Operating Partnership. 
 
(m) “Operating Partnership” shall have the meaning set forth in the Recitals hereto. 
 
(n) “Registration Expenses” shall mean all registration, filing and stock exchange or NASD fees, all fees and expenses of
complying with securities or blue sky laws, all printing expenses, messenger and delivery expenses, any fees and disbursements of any separate counsel retained by the Issuee, and transfer taxes, if any, and any premiums and other costs of policies
of insurance obtained by the Issuee against liabilities arising out of the public offering of securities, including Company Registration Expenses, but specifically excludes any fees and disbursements of underwriters customarily paid by sellers of
securities who are not the issuers of such securities and all underwriting discounts and commissions. 
 
(o) “Securities Act” shall mean the Securities Act of 1933, as amended, and any successor thereto, and the rules and regulations
thereunder. 
 
(p) “Shelf Registration”
shall have the meaning set forth in Section 3(a). 
 

2 

 
2.
Effectiveness of this Agreement. This Agreement shall become effective, at the Effective Time. The parties hereto agree that as of the Effective Time, any prior agreements granting registration rights with respect to the Issuee OP Units will
be of no further force or effect and Issuee’s sole registration rights with respect to the Issuee OP Units will be as set forth in this Agreement. 
 
3. Shelf Registration 
 
(a) Obligation to File. As soon as possible after the Effective Time, but in no event later than 45 days after the Effective Time,
the Company will cause to be filed with the Commission a registration statement (the “Shelf Registration”) under Rule 415 of the Securities Act for the resale by the Issuee of the Company Common Stock received, or to be received, by the
Issuee upon exchange of the Issuee OP Units (the “Issuee Stock”). The Company shall use its reasonable best efforts to cause the Shelf Registration to become effective, and keep the Shelf Registration continuously effective until the
earlier of (i) the date on which the Issuee may sell all the Issuee Stock without registration and without restriction by the volume limitations of Rule 144(e) of the Securities Act or such time as all the Issuee Stock has been sold pursuant to the
Shelf Registration. During the period during which the Shelf Registration is effective, the Company shall supplement or make amendments to the Shelf Registration, if required by the Securities Act and shall use its reasonable best efforts to have
such supplements and amendments declared effective, if required, as soon as practicable after filing. 
 
(b) Black-Out Periods of the Issuee. Notwithstanding anything herein to the contrary, (i) the Company shall have the right from
time to time to suspend the effectiveness of the Shelf Registration during the period starting with the date 30 days prior to the Company’s good faith estimate, as certified in writing by an executive officer of the Company to the Issuee, of
the proposed date of filing of a registration statement or a preliminary prospectus supplement relating to an existing shelf registration statement, in either case, pertaining to an underwritten public offering of equity securities of the Company
for the account of the Company, and ending on the date 75 days following the effective date of such registration statement or the date of filing of the final prospectus supplement, and (ii) the Company shall be entitled to suspend the effectiveness
of the Shelf Registration (but not for a period exceeding 75 days in any calendar year) if the Company determines, in its good faith judgment, that the continued effectiveness would interfere with any material financing, acquisition, disposition,
corporate reorganization or other material transaction involving the Company or any of its subsidiaries or public disclosure thereof would be required prior to the time such disclosure might otherwise be required, or when the Company is in
possession of material information that it deems advisable not to disclose in a registration statement. 
 
(c) Number of Shelf Registrations. The Company shall be obligated to effect, under this Section 3, only one Shelf Registration. A
Shelf Registration shall not be deemed to have been effected if such registration cannot be used by the Issuee for more than 60 days as a result of any stop order, injunction or other order of the Commission or other government authority for any
reason other than an act or omission of the Issuee. 
 

3 

 
(d)
Notice. The Company shall give the Issuee prompt notice in the event that the Company has suspended the effectiveness of the Shelf Registration under Section 3(b). 
 
(e) Expenses. All Registration Expenses incurred in connection with the Shelf Registration shall be
borne by the Company. 
 
4. Registration
Procedures. In connection with the filing of any registration statement as provided in Section 3, the Company shall use its reasonable best efforts to, as expeditiously as reasonably practicable: 
 
(a) prepare and file with the Commission the
requisite registration statement (including a prospectus therein) to effect such registration and use its reasonable best efforts to cause such registration statement to become effective, provided that before filing such registration statement or
any amendments or supplements thereto, the Company will furnish to the counsel selected by the Issuee, at least five business days prior to the filing thereof, copies of all such documents proposed to be filed, which documents will be subject to the
review of such counsel before any such filing is made, and the Company will comply with any reasonable request made by such counsel to make changes in any information contained in such documents relating to the Issuee; 
 
(b) prepare and file with the Commission such
amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to maintain the effectiveness of such registration and to comply with the provisions of the Securities Act with respect to
the resale of the Issuee Stock covered by such registration statement; 
 
(c) furnish to the Issuee such number of conformed copies of such registration statement and of each such amendment and supplement thereto (in each case including all exhibits), such number of copies
of the prospectus contained in such registration statements (including each complete prospectus and any summary prospectus) and any other prospectus filed under Rule 424 under the Securities Act, in conformity with the requirements of the Securities
Act, and such other documents, including documents incorporated by reference, as the Issuee may reasonably request; 
 
(d) register or qualify the Issuee Stock under such other securities or blue sky laws of such jurisdictions as the Issuee
shall reasonably request and to keep such registration or qualification in effect for so long as such registration statement remains in effect, and take any other action which may be reasonably necessary or advisable to qualify the Issuee Stock for
sale in such jurisdictions, except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not but for the requirements of this paragraph be
obligated to be so qualified, or to consent to general service of process in any such jurisdiction, or to subject the Company to any material tax in any such jurisdiction where it is not then so subject; 
 

4 

 
(e) cause all Issuee Stock covered by such registration statement to be registered with or approved by such other government authority as may be reasonably necessary to enable the Issuee to offer for sale Issuee Stock pursuant to
such registration statement; 
 
(f) in the event of a sale of Issuee Stock in an underwritten offering pursuant to the Shelf Registration, furnish to the Issuee a signed counterpart, addressed to the Issuee and such underwriter, of: 
 
(i) an opinion of counsel for the Company, in
form and substance as is customarily given in an underwritten public offering, dated the date the Issuee Stock is delivered to an underwriter for sale pursuant to the Shelf Registration, and 
 
(ii) to the extent permitted by then
applicable rules of professional conduct, a “comfort” letter, dated the effective date of such registration statement, signed by the independent public accountants who have certified the Company’s financial statements included in such
registration statement, covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of the accountants’ letter, with respect to events subsequent to the date of such
financial statements, as is customarily covered in accountants’ letters delivered to the underwriters in underwritten public offerings of securities; 
 
(g) immediately notify the Issuee at any time when the Company becomes aware that a prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made, and to promptly (but in any event, within five business days) prepare and furnish to
the Issuee a reasonable number of copies of a supplement to or an amendment of such prospectus; 
 
(h) comply or continue to comply in all material respects with the Securities Act and the Exchange Act and with all
applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least 12 months, but not more than 18 months, beginning with the first
full calendar month after the effective date of such registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act, and not file any amendment or supplement to such registration statement or
prospectus to which the Issuee shall have reasonably objected on the grounds that such amendment or supplement does not comply in all material respects with the requirements of the Securities Act; 
 

5 

 
(i) provide a transfer agent and registrar for all Issuee Stock covered by such registration statement not later than the effective date of such registration statement; and 
 
(j) list all Issuee Stock covered by such
registration statement on each securities exchange on which any of the Company Common Stock is then listed. 
 
In connection with any registration statement, prospectus or other document filed or prepared pursuant to this Agreement, the Issuee shall furnish in writing to the Company such information regarding
the Issuee (and any of its affiliates), the Company Common Stock to be sold, the intended method of distribution of such Company Common Stock, and such other information reasonably requested by the Company. Such writing shall expressly state that it
is being furnished to the Company for use in the preparation of a registration statement, preliminary prospectus, supplementary prospectus, final prospectus or amendment or supplement thereto, as the case may be. 
 
The Issuee agrees by acquisition of the Issuee OP Units that
upon receipt of any notice from the Company of the happening of any event of the kind described in paragraph (g) of this Section 4, the Issuee will forthwith cease to offer for sale Issuee Stock pursuant to the registration statement relating to
such Issuee Stock until the Issuee’s receipt of the copies of the supplemented or amended prospectus contemplated by paragraph (g) of this Section 4. 
 
5. Preparation; Reasonable Investigation. In connection with the preparation and filing of the Shelf Registration under the
Securities Act, the Company will give the Issuee and its counsel the opportunity to participate in the preparation of such registration statement, each prospectus included therein or filed with the Commission, and each amendment thereof or
supplement thereto, and will give each of them such access to its books and records and such opportunities to discuss the business of the Company with its officers, its counsel and the independent public accountants who have certified its financial
statements as shall be necessary, in the opinion of the Issuee’s counsel, to conduct a reasonable investigation within the meaning of the Securities Act. 
 
6. Indemnification 
 
(a) Indemnification by the Company. In the event of any registration of any Company Common Stock under the Securities Act pursuant
to this Agreement, the Company will, and hereby does, indemnify and hold harmless the Issuee and its affiliates, officers, directors, agents, partners and representatives against any losses, claims, damages or liabilities, joint or several, to which
the Issuee may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the registration statement under which such Company Common Stock was registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they
were made, not misleading, and the Company will reimburse the Issuee for any 
 

6 

reasonable legal or any other expenses reasonably incurred by it in connection with investigating or
defending any such loss, claim, liability, action or proceedings; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement, any such preliminary prospectus, final prospectus, summary prospectus, amendment or
supplement in reliance upon and in conformity with written information furnished to the Company by the Issuee specifically stating that it is for use in the preparation thereof. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Issuee and shall survive the transfer of such securities by the Issuee. 
 
(b) Indemnification by the Issuee. The Issuee will, and hereby does, indemnify and hold harmless (in the same manner and to the
same extent as set forth in paragraph (a) of this Section 6) the Company, each director of the Company, each officer of the Company and each other person, if any, who controls the Company within the meaning of the Securities Act, with respect to any
untrue statement or alleged untrue statement of a material fact in or omission or alleged omission to state a material fact from such registration statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or
any amendment or supplement thereto, if such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by the Issuee specifically
stating that it is for use in the preparation of such registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or supplement. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company or any such director, officer, or controlling person and shall survive the transfer of such securities by the Issuee. 
 
(c) Notices of Claims, etc. Promptly after receipt by an indemnified party of notice of the commencement of any action or
proceeding involving a claim referred to in the preceding paragraphs of this Section 6, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the latter of the commencement of
such action; provided, however, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under the preceding paragraphs of this Section 6, except to the extent that the
indemnifying party is actually prejudiced by such failure to give notice. In case any such action is brought against an indemnified party, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified
and indemnifying parties may exist in respect of such claim, the indemnifying party shall be entitled to participate in and to assume the defense thereof, jointly with any other indemnifying party similarly notified to the extent that it may wish,
with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to the indemnified
party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of investigation. 
 
(d) Other Indemnification. Indemnification similar to that specified in the preceding paragraphs of this Section 6 (with
appropriate modifications) shall be given by the Company and the Issuee with respect to any required registration or other qualification of 
 

7 

securities under any federal or state law or regulation of Governmental Authority other than the
Securities Act. 
 
(e) Indemnification
Payments. The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or expense, loss, damage or liability is
incurred. 
 
(f) Contribution. If, for any
reason, the foregoing indemnity is unavailable, or is insufficient to hold harmless an indemnified party, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of the expense, loss, damage or
liability, (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and the indemnified party on the other (determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or omission relates to information supplied by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue
statement or omission), or (ii) if the allocation provided by clause (i) above is not permitted by applicable law or provides a lesser sum to the indemnified party than the amount hereinafter calculated, in the proportion as is appropriate to
reflect not only the relative fault of the indemnifying party and the indemnified party, but also the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other, as well as any other relevant
equitable considerations. No indemnified party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any indemnifying party who was not guilty of such fraudulent
misrepresentation. 
 
7. Covenants Relating to
Rule 144. The Company will file in a timely manner (taking into account any extensions granted by the Commission), information, documents and reports in compliance with the Exchange Act and will, at its expense, forthwith upon the request of the
Issuee, deliver to the Issuee a certificate, signed by the Company’s principal financial officer, stating (a) the Company’s name, address and telephone number (including area code), (b) the Company’s Internal Revenue Service
identification number, (c) the Company’s Commission file number, (d) the number of shares and class of Company capital stock outstanding as shown by the most recent report or statement published by the Company, and (e) whether the Company has
filed the reports required to be filed under the Exchange Act for a period of at least 90 days prior to the date of such certificate and in addition has filed the most recent annual report required to be filed thereunder. If at any time the Company
is not required to file reports in compliance with either Section 13 or Section 15(d) of the Exchange Act, the Company will, at its expense, forthwith upon the written request of the Issuee, make available adequate current public information with
respect to the Company within the meaning of paragraph (c)(2) of Rule 144 of the General Rules and Regulations promulgated under the Securities Act. 
 
8. Miscellaneous 
 
(a) Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same
agreement, and shall become 
 

8 

effective when one or more counterparts have been signed by each of the parties and delivered to the other
party. Copies of executed counterparts transmitted by telecopy, telefax or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 8, provided receipt of copies of such counterparts is
confirmed. 
 
(b) Governing Law. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REFERENCE TO THE CHOICE OF LAW PRINCIPLES THEREOF. 
 
(c) Entire Agreement. This Agreement (including agreements incorporated herein) contains the entire agreement between the parties
with respect to the subject matter hereof and there are no agreements or understandings between the parties other than those set forth or referred to herein. This Agreement is not intended to confer upon any person not a party hereto (and their
successors and assigns) any rights or remedies hereunder. 
 
(d) Notices. All notices and other communications hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented overnight delivery service or, to the extent receipt
is confirmed, telecopy, telefax or other electronic transmission service to the appropriate address or number as set forth below. Notices to the Company shall be addressed to: 
 
Pan Pacific Retail Properties, Inc. 
1631-B South Melrose Drive 
Vista, California 92083 
Attention: Chief Executive Officer

Telecopy Number: (760) 727-1430 
 
with a copy to: 
 
Latham & Watkins 
650 Town Center Drive 
Suite 2000 
Costa Mesa, CA 92648 
Attention: William J. Cernius 
Telecopy Number: (714) 755-8290 
 
or at such other address and to the attention of such other person as the Company may designate by written notice to the Issuee. Notices to the Issuee shall be addressed to the Issuee’s address designated next to their signature
below. 
 
(e) Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors. Neither party shall be permitted to assign any of its rights hereunder to any third party, except that if (i) the Issuee transfers or
pledges any or all Issuee OP Units to a third party in accordance with the requirements of the Second Amended Partnership Agreement and such third party agrees to be 
 

9 

bound by the Contribution Agreement, the transferee or pledgee of the Issuee OP Units shall be considered
an intended beneficiary hereof and may exercise all rights of the Issuee hereunder, and (ii) any person included within the definition of the term the Issuee shall be permitted to assign its rights hereunder to any other person included within such
definition. 
 
(f) Headings. The Section and
other headings contained in this Agreement are inserted for convenience of reference only and will not affect the meaning or interpretation of this Agreement. All references to Sections or other headings contained herein mean Sections or other
headings of this Agreement unless otherwise stated. 
 
(g) Amendments and Waivers. This Agreement may not be modified or amended except by an instrument or instruments in writing signed by the party against whom enforcement of any such modification or amendment is sought. Either
party hereto may, only by an instrument in writing, waive compliance by the other party hereto with any term or provision hereof on the part of such other party hereto to be performed or complied with. The waiver by any party hereto of a breach of
any term or provision hereof shall not be construed as a waiver of any subsequent breach. 
 
(h) Interpretation; Absence of Presumption. For the purposes hereof, (i) words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include
the other gender as the context requires, (ii) the terms “hereof”, “herein”, and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section, paragraph or other references are to the Sections, paragraphs, or other references to this Agreement unless otherwise specified, (iii) the word “including” and words of similar import
when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified, (iv) the word “or” shall not be exclusive, and (v) provisions shall apply, when
appropriate, to successive events and transactions. 
 
This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instrument to be drafted. 
 
(i) Severability. Any provision hereof which is invalid
or unenforceable shall be ineffective to the extent of such invalidity or unenforceability, without affecting in any way the remaining provisions hereof. 
 

10 

 
        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the parties hereto as of the day first above written. 
 

	  PAN PACIFIC RETAIL PROPERTIES, INC.,
  a Maryland corporation

	
	  By:
	  	  /s/ Joseph B. Tyson

	  Name:
	  	  Joseph B. Tyson

	  Title:
	  	  Executive Vice President, Chief Financial Officer, Treasurer and Secretary

 

	 ISSUEE

	
	 /s/ Saul Kreshek

	 Saul Kreshek
 9514 Cresta Drive
 Los Angeles, CA 90035
  
 No. of Units: 3,300

 
 

 

	 ISSUEE

	
	 /s/ Margaret Lewicki

	 Margaret Lewicki
 P.O. Box 3817
 Truckee, CA 96160
  
 No. of Units: 6,192

 

	 ISSUEE

	
	 /s/ Ernest Grossman

	 Ernest Grossman
 P.O. Box 3817
 Truckee, CA 96160
  
 No. of Units: 10,435Second Amended and Restated Agreement of Limited Partnership

 
EXHIBIT 10.1

 

 
SECOND AMENDED AND RESTATED 
 
AGREEMENT OF LIMITED PARTNERSHIP 
 
OF 
 
CT OPERATING PARTNERSHIP, L.P. 
 
(A California Limited Partnership) 
 

 
Dated as of
January 17, 2003 
 

 

 
TABLE OF
CONTENTS 
 

	  	   	  	   	  	   	  Page

	  ARTICLE 1. DEFINED TERMS
	   	  1

	
	  ARTICLE 2. ORGANIZATIONAL MATTERS
	   	  20

	  	   	  Section 2.1
	   	  Organization
	   	  20

	  	   	  Section 2.2
	   	  Name
	   	  20

	  	   	  Section 2.3
	   	  Registered Office and Agent; Principal Office
	   	  20

	  	   	  Section 2.4
	   	  Power of Attorney
	   	  20

	  	   	  Section 2.5
	   	  Term
	   	  21

	
	  ARTICLE 3. PURPOSE
	   	  22

	  	   	  Section 3.1
	   	  Purpose and Business
	   	  22

	  	   	  Section 3.2
	   	  Powers
	   	  22

	  	   	  Section 3.3
	   	  Partnership Only for Purposes Specified
	   	  22

	  	   	  Section 3.4
	   	  Representations and Warranties by the Parties
	   	  23

	
	  ARTICLE 4. CAPITAL CONTRIBUTIONS
	   	  24

	  	   	  Section 4.1
	   	  Capital Contributions of the Partners.
	   	  24

	  	   	  Section 4.2
	   	  Loans
	   	  24

	  	   	  Section 4.3
	   	  Additional Funding and Capital Contributions
	   	  25

	  	   	  Section 4.4
	   	  Timing of Additional Capital Contributions.
	   	  25

	
	  ARTICLE 5. DISTRIBUTIONS
	   	  25

	  	   	  Section 5.1
	   	  Requirement and Characterization of Distributions
	   	  25

	  	   	  Section 5.2
	   	  Distributions in Kind
	   	  26

	  	   	  Section 5.3
	   	  Amounts Withheld
	   	  26

	  	   	  Section 5.4
	   	  Distributions Upon Liquidation
	   	  26

	  	   	  Section 5.5
	   	  Distributions of Proceeds from Sale or Refinancing of Properties
	   	  26

	  	   	  Section 5.6
	   	  Reductions of Units
	   	  27

	
	  ARTICLE 6. ALLOCATIONS
	   	  27

	  	   	  Section 6.1
	   	  Timing and Amount of Allocations of Net Income and Net Loss
	   	  27

	  	   	  Section 6.2
	   	  General Allocations
	   	  27

	  	   	  Section 6.3
	   	  Additional Allocation Provisions
	   	  29

	  	   	  Section 6.4
	   	  Tax Allocations
	   	  31

	  	   	  Section 6.5
	   	  Allocations Regarding Transfers, Contributions and Distributions
	   	  31

	
	  ARTICLE 7. MANAGEMENT AND OPERATIONS OF BUSINESS
	   	  32

	  	   	  Section 7.1
	   	  Management
	   	  32

	  	   	  Section 7.2
	   	  Certificate of Limited Partnership
	   	  34

	  	   	  Section 7.3
	   	  Restrictions on General Partner’s Authority
	   	  35

	  	   	  Section 7.4
	   	  Reimbursement of the General Partner
	   	  37

	  	   	  Section 7.5
	   	  Other Business of General Partner
	   	  37

	  	   	  Section 7.6
	   	  Contracts with Affiliates
	   	  38

 

i 

 

	  	   	  Section 7.7
	   	  Indemnification
	   	  39

	  	   	  Section 7.8
	   	  Liability of the General Partner
	   	  40

	  	   	  Section 7.9
	   	  Other Matters Concerning the General Partner
	   	  41

	  	   	  Section 7.10
	   	  Title to Partnership Assets
	   	  42

	  	   	  Section 7.11
	   	  Reliance by Third Parties
	   	  42

	
	  ARTICLE 8. RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS
	   	  42

	  	   	  Section 8.1
	   	  Limitation of Liability
	   	  42

	  	   	  Section 8.2
	   	  Management of Business
	   	  43

	  	   	  Section 8.3
	   	  Outside Activities of Limited Partners
	   	  43

	  	   	  Section 8.4
	   	  Return of Capital
	   	  43

	  	   	  Section 8.5
	   	  Rights of Limited Partners Relating to the Partnership
	   	  43

	  	   	  Section 8.6
	   	  Exchange Rights
	   	  44

	  	   	  Section 8.7
	   	  Limited Partner Redemption Rights.
	   	  46

	
	  ARTICLE 9. BOOKS, RECORDS, ACCOUNTING AND REPORTS
	   	  49

	  	   	  Section 9.1
	   	  Records and Accounting
	   	  49

	  	   	  Section 9.2
	   	  Fiscal Year
	   	  49

	  	   	  Section 9.3
	   	  Reports
	   	  49

	
	  ARTICLE 10. TAX MATTERS
	   	  50

	  	   	  Section 10.1
	   	  Preparation of Tax Returns
	   	  50

	  	   	  Section 10.2
	   	  Tax Elections
	   	  50

	  	   	  Section 10.3
	   	  Tax Matters Partner
	   	  50

	  	   	  Section 10.4
	   	  Organizational Expenses
	   	  51

	  	   	  Section 10.5
	   	  Withholding
	   	  51

	
	  ARTICLE 11. TRANSFERS AND WITHDRAWALS
	   	  52

	  	   	  Section 11.1
	   	  Transfer
	   	  52

	  	   	  Section 11.2
	   	  Transfer of General Partner’s Partnership Interest
	   	  53

	  	   	  Section 11.3
	   	  Limited Partners’ Rights to Transfer
	   	  54

	  	   	  Section 11.4
	   	  Substituted Limited Partners
	   	  55

	  	   	  Section 11.5
	   	  Assignees
	   	  56

	  	   	  Section 11.6
	   	  Redemption of Limited Partnership Units
	   	  56

	  	   	  Section 11.7
	   	  General Provisions
	   	  57

	
	  ARTICLE 12. ADMISSION OF PARTNERS
	   	  58

	  	   	  Section 12.1
	   	  Admission of Successor General Partner
	   	  58

	  	   	  Section 12.2
	   	  No Admission of Additional Limited Partners
	   	  58

	  	   	  Section 12.3
	   	  Limit on Number of Partners
	   	  58

	
	  ARTICLE 13. DISSOLUTION AND LIQUIDATION
	   	  58

	  	   	  Section 13.1
	   	  Dissolution
	   	  58

	  	   	  Section 13.2
	   	  Winding Up
	   	  59

	  	   	  Section 13.3
	   	  Compliance with Timing Requirements of Regulations
	   	  60

	  	   	  Section 13.4
	   	  Deemed Distribution and Recontribution
	   	  61

	  	   	  Section 13.5
	   	  Rights of Limited Partners
	   	  61

 

ii 

 

	  	   	  Section 13.6
	   	  Notice of Dissolution
	   	  61

	  	   	  Section 13.7
	   	  Cancellation of Certificate of Limited Partnership
	   	  61

	  	   	  Section 13.8
	   	  Reasonable Time for Winding-Up
	   	  62

	
	  ARTICLE 14. PROCEDURES FOR ACTIONS AND CONSENTS OF PARTNERS
	   	  62

	  	   	  Section 14.1
	   	  Procedures For Actions And Consents of Partners
	   	  62

	
	  ARTICLE 15. GENERAL PROVISIONS
	   	  63

	  	   	  Section 15.1
	   	  Addresses and Notice
	   	  63

	  	   	  Section 15.2
	   	  Titles and Captions
	   	  63

	  	   	  Section 15.3
	   	  Pronouns and Plurals
	   	  63

	  	   	  Section 15.4
	   	  Further Action
	   	  63

	  	   	  Section 15.5
	   	  Binding Effect
	   	  63

	  	   	  Section 15.6
	   	  Creditors
	   	  64

	  	   	  Section 15.7
	   	  Waiver
	   	  64

	  	   	  Section 15.8
	   	  Counterparts
	   	  64

	  	   	  Section 15.9
	   	  Applicable Law
	   	  64

	  	   	  Section 15.10
	   	  Invalidity of Provisions
	   	  64

	  	   	  Section 15.11
	   	  Partition
	   	  64

	  	   	  Section 15.12
	   	  No Third–Party Rights Created Hereby
	   	  65

	
	  Exhibit A Partners, Contributions and Partnership Interests
	   	  A-1

	
	  Exhibit B Notice of Exchange
	   	  B-1

	
	  Exhibit C Partners, Contributions and Partnership Interests
	   	  C-1

	
	  Exhibit D Definition of “Constructively Owns”
	   	  D-1

	
	  Schedule A Contributor Groups and Contributor Group
Properties
	   	  Sch A

 

iii 

 
SECOND
AMENDED AND RESTATED 
 
AGREEMENT OF LIMITED
PARTNERSHIP 
 
OF 
 
CT OPERATING PARTNERSHIP, L.P. 
 
        THIS SECOND
AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP (the “Agreement”), dated as of January 17, 2003, amends and restates in its entirety, as of the Effective Time (as defined below) that certain Amended and Restated Agreement of Limited
Partnership of CT Operating Partnership, L.P., dated as of March 23, 2000, as amended by that certain First Amendment to the Amended and Restated Agreement of Limited Partnership of CT Operating Partnership, L.P. dated October 1, 2002, entered into
by and among Center Trust, Inc. (formerly Alexander Haagen Properties, Inc.), a Maryland corporation (the “Company”), as the General Partner, and the Persons whose names are set forth on Exhibit A as attached hereto, as the Limited
Partners, together with any other Persons who become Partners in the Partnership as provided herein. Pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”) among Pan Pacific Retail Properties, Inc., a Maryland
corporation (“Parent”), MB Acquisition, Inc., a Maryland corporation, the Company and the Partnership, MB Acquisition, Inc. will, subject to the terms and conditions of the Merger Agreement, merge with and into the Company, causing the
Company to become a wholly-owned subsidiary of Parent. This Agreement shall become effective at the effective time of the Merger (the “Effective Time”). In connection with the Merger, the Partners have agreed to amend Exhibit A hereto to
adjust the number of Partnership Units owned by each Partner by multiplying the total number of Partnership Units owned by each Partner by the Exchange Ratio (as defined in the Merger Agreement). If the Merger Agreement is terminated, this Agreement
shall become null and void. 
 
ARTICLE 1.

DEFINED TERMS 
 
        The following definitions shall be for all purposes, unless otherwise clearly indicated to
the contrary, applied to the terms used in this Agreement. 
 
        “Act” means the California Revised Uniform Limited Partnership Act, as it may be amended from time to time, and any successor to such statute. 
 
        “Additional Funds” has the meaning set forth in Section 4.3.A. 
 
        “Adjusted Capital Account Deficit” means, with respect to any Partner,
the deficit balance, if any, in such Partner’s Capital Account as of the end of the relevant Partnership Year, after giving effect to the following adjustments: 
 
        (i) decrease such deficit by any amounts
which such Partner is obligated to restore pursuant to this Agreement or is deemed to be obligated to restore 
 

1 

pursuant to Treasury Regulation Section 1.704-1(b)(2)(ii)(c) or the penultimate sentence
of each of Treasury Regulation Sections 1.704-2(i)(5) and 1.704-2(g)(1); and 
 
        (ii) increase such deficit by the items described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6). 
 
The foregoing definition of Adjusted Capital Account Deficit is intended to
comply with the provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
 
        “Adjustment Factor” means 1.0; provided, however, that in the
event Parent (i) declares or pays a dividend on the outstanding REIT Shares in REIT Shares, (ii) splits or subdivides the outstanding REIT Shares or (iii) effects a reverse stock split or otherwise combines the outstanding REIT Shares into a smaller
number of REIT Shares, the Adjustment Factor shall be adjusted by multiplying the Adjustment Factor in effect immediately prior to such adjustment by a fraction, (1) the numerator of which shall be the number of REIT Shares issued and outstanding on
the record date for such dividend, distribution, split, subdivision, reverse split or combination (assuming for such purposes that such dividend, distribution, split, subdivision, reverse split or combination has occurred as of such time) and (2)
the denominator of which shall be the actual number of REIT Shares issued and outstanding on the record date for such dividend, distribution, split, subdivision, reverse split or combination (assuming for such purposes that such dividend,
distribution, split, subdivision, reverse split or combination has not occurred as of such time). Any adjustments to the Adjustment Factor shall become effective immediately after the effective date of such event, retroactive to the record date, if
any, for such event. 
 
        “Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by or under common control with such Person, and when used in
Section 11.3 and Section 11.6, such Person’s Immediate Family. 
 
        “Agreed Value” means (i) in the case of any Contributed Property set forth in Exhibit A and as of the time of its contribution to the Partnership, the Agreed
Value of such property as set forth in Exhibit A; (ii) in the case of any Contributed Property not set forth in Exhibit A and as of the time of its contribution to the Partnership, the fair market value of such property as determined by the General
Partner, reduced by any liabilities either assumed by the Partnership upon such contribution or to which such property is subject when contributed; and (iii) in the case of any property distributed to a Partner by the Partnership, the fair market
value of such property as determined by the General Partner at the time such property is distributed, reduced by any indebtedness either assumed by such Partner upon such distribution or to which such property is subject at the time of the
distribution as determined under Section 752 of the Code and the regulations thereunder. 
 
        “Agreement” has the meaning set forth in the preamble. 
 
        “Appraisal” means with respect to any
assets, the written opinion of an independent third party experienced in the valuation of similar assets in the general location of the property being appraised, selected by the General Partner in good faith. Such opinion may be 
 

2 

in the form of an opinion by such independent third party that the value for such property or asset as set
by the General Partner is fair, from a financial point of view, to the Partnership. 
 
        “Assignee” means a Person to whom one or more Partnership Units have been transferred in a manner permitted under this Agreement, but
who has not become a Substituted Limited Partner, and who has the rights set forth in Section 11.5. 
 
        “Available Cash” means, with respect to any period for which such
calculation is being made, (i) the sum, without duplication, of: 
 
        (a) the Partnership’s Net Income or Net Loss (as the case may be) for such period, 
 
        (b) Depreciation and all other noncash
charges deducted in determining Net Income or Net Loss for such period, 
 
        (c) the amount of any reduction in reserves of the Partnership referred to in clause (ii)(f) below (including, without limitation, reductions resulting
because the General Partner determines such amounts are no longer necessary), and 
 
        (d) all other cash received by the Partnership for such period that was
not included in determining Net Income or Net Loss for such period; 
 
(ii) less the sum, without duplication, of: 
 
                (a) all regularly scheduled principal debt payments made during such period by the Partnership and all
other debt payments made during such period by the Partnership at the election of the General Partner but at relative levels not in excess of the Partnership’s past practices, 
 
        (b) capital expenditures made by the
Partnership during such period at the election of the General Partner but at relative levels not in excess of the Partnership’s past practices, 
 
        (c) investments in any entity (including loans made thereto) to the extent
that such investments are not otherwise described in the immediately preceding clauses (ii)(a) or (b) at the election of the General Partner but at relative levels not in excess of the Partnership’s past practices, 
 
        (d) all other expenditures and payments not deducted in determining Net Income or Net Loss for such period, 
 
        (e) any amount included in determining Net
Income or Net Loss for such period that was not received by the Partnership during such period, and 
 
        (f) the amount of any increase in reserves established during such period
which the General Partner determines are necessary or appropriate in its reasonable discretion. 
 

3 

 
        Notwithstanding the foregoing, Available Cash shall not include (i) any cash received or reductions in reserves, or take into account any disbursements made, or reserves established,
after dissolution and the commencement of the liquidation and winding up of the Partnership, (ii) Disposition Proceeds or (iii) Refinancing Proceeds. 
 
        “Beneficial Ownership” means ownership of REIT Shares by a Person who is
or would be treated as an owner of such REIT Shares either actually or constructively through the application of Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code. The terms “Beneficially Own,” “Beneficially
Owned,” “Beneficially Owns” and “Beneficial Owner” shall have the correlative meanings. 
 
        “Business Day” means any day except a Saturday, Sunday or other day on
which commercial banks in Los Angeles, California or New York, New York are authorized or required by law to be closed. 
 
        “Capital Account” means, with respect to any Partner, the Capital Account
maintained for such Partner in accordance with the following provisions: 
 
                (i) To each Partner’s Capital Account, there shall be added such Partner’s Capital Contributions, such Partner’s
share of Net Income and any items in the nature of income or gain which are specially allocated pursuant to Section 6.3 hereof, and the amount of any Partnership liabilities assumed by such Partner or which are secured by any property distributed to
such Partner. 
 
                (ii) From each Partner’s Capital Account, there shall be subtracted the amount of cash and the Gross Asset Value of any property
distributed to such Partner pursuant to any provision of this Agreement, such Partner’s distributive share of Net Losses and any items in the nature of expenses or losses which are specially allocated pursuant to Section 6.3 hereof, and the
amount of any liabilities of such Partner assumed by the Partnership or which are secured by any property contributed by such Partner to the Partnership. 
 
                (iii) In the event any interest in the
Partnership is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred interest. 
 
                (iv) In determining the amount of any liability for purposes of subsections (i) and (ii) hereof, there shall be taken into account Code
section 752(c) and any other applicable provisions of the Code and Regulations. 
 
                (v) The foregoing provisions and the other provisions of this Agreement relating to the maintenance of
Capital Accounts are intended to comply with Regulations Sections 1.704-1(b) and 1.704-2, and shall be interpreted and applied in a manner consistent with such Regulations. In the event the General Partner shall determine that it is prudent to
modify the manner in which the Capital Accounts, or any debits or credits thereto (including, without limitation, debits or credits relating to liabilities which are secured by contributed or distributed property or which are assumed by the
Partnership, the General Partner, or the Limited Partners) are computed in order to comply with such Regulations, the General 
 

4 

 
Partner may make such
modification provided that it is not likely to have a material effect on the amounts distributable to any Person pursuant to Article 13 of this Agreement upon the dissolution of the Partnership. The General Partner also shall (i) make any
adjustments that are necessary or appropriate to maintain equality between the Capital Accounts of the Partners and the amount of Partnership capital reflected on the Partnership’s balance sheet, as computed for book purposes, in accordance
with Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Regulations Section 1.704-1(b) or Section 1.704-2. 
 
“Capital Contribution” means, with respect to
any Partner, the amount of money and the initial Gross Asset Value of any property (other than money) contributed to the Partnership by such Partner pursuant to Article 4 hereof. 
 
“Cash Amount” means an amount of cash equal to the product of (i) the Value of a REIT Share
and (ii) the REIT Shares Amount determined as of the applicable Valuation Date. 
 
“Contributor Group” means each group of Limited Partners that is identified on Schedule A as a group that has contributed real Property or real Properties to the Partnership in a
single transaction in exchange for a Limited Partnership Interest, together with any Substitute Limited Partners or Assignees of such Limited Partners. 
 
“Contributor Group Limited Partnership Units” means, with respect to each Tendering Contributor Group all, but not less
than all, of the Limited Partnership Units received with respect to the contribution of the Contributor Group Property contributed to the Partnership and held by such Tendering Contributor Group as of the date of the delivery of a Target Property
Notice by such Tendering Contributor Group. 
 
“Contributor Group Property” means, with respect to each Contributor Group, the Property or Properties set forth opposite such Contributor Group on Schedule A. 
 
“Contributor Group Transaction Costs” means,
all costs and expenses incurred by any Person in connection with the exercise of the Limited Partner Redemption Right, including, but not limited to the following: 
 
(i) any and all state, municipal or other documentary, transfer, stamp, sales, use, property or similar
taxes payable in connection with the delivery of any instrument or document, together with interest and penalties, if any, thereon; 
 
(ii) all expenses of or related to the issuance of the title insurance commitment and policy (including the costs of any survey required
by the General Partner and the title insurer), chain of title reports, and all escrow fees and charges; 
 
(iii) all charges for or in connection with the recording and/or filing of any instrument or document; 
 
(iv) any and all broker’s fees or other similar fees;

 

5 

 
(v) all
legal, accounting and other professional fees, and expenses associated with any instruments and documents required to be delivered, or to be caused to be delivered, by the Contributor Group or the General Partner or its Affiliates; 
 
(vi) all fees, expenses and disbursements made by or on
behalf of Parent or its Affiliates, including, but not limited to, appraisal costs, engineering fees, accountants and other professional fees, environmental audits and the legal fees, expenses and disbursements to counsel; and 
 
(vii) the cost of obtaining all consents and approvals,
including fees or penalties imposed by lenders or other third parties. 
 
“Certificate” means the Certificate of Limited Partnership of the Partnership filed in the office of the California Secretary of State, as amended from time to time in accordance with the terms hereof and
the Act. 
 
“Charter” means the
charter of Parent, filed with the Maryland State Department of Assessments and Taxation on April 16, 1997, as amended or restated from time to time. 
 
“Code” means the Internal Revenue Code of 1986, as amended from time to time or any successor statute thereto, as
interpreted by the applicable regulations thereunder. Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of future law. 
 
“Company” has the meaning set forth in the
preamble. 
 
“Consent” means the
consent to, approval of, or vote on a proposed action by a Partner given in accordance with Article 14 hereof. 
 
“Consent of the Limited Partners” means the Consent of a Majority In Interest of the Limited Partners, which Consent
shall be obtained prior to the taking of any action for which it is required by this Agreement and may be given or withheld by a Majority in Interest of the Limited Partners, unless otherwise expressly provided herein, in their sole and absolute
discretion. 
 
“Consent of the
Partners” means the Consent of Partners holding in the aggregate 60% or more of the aggregate outstanding Partnership Units, which Consent shall be obtained prior to the taking of any action for which it is required by this Agreement and
may be given or withheld by such Partners in their sole and absolute discretion. 
 
“Constructively Own” means ownership under the constructive ownership rules described in Exhibit D. 
 
“Contributed Properties” means each property or other asset, in such form as may be
permitted by the Act, but excluding cash, contributed or deemed contributed to the Partnership (or deemed contributed to the Partnership on termination and reconstitution thereof pursuant to Section 708 of the Code). 
 

6 

 
“Debt” means, as to any Person, as of any date of determination, (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services; (ii) all amounts owed by such Person
to banks or other Persons in respect of reimbursement obligations under letters of credit, surety bonds and other similar instruments guaranteeing payment or other performance of obligations by such Person; (iii) all indebtedness for borrowed money
or for the deferred purchase price of property or services secured by any lien on any property owned by such Person, to the extent attributable to such Person’s interest in such property, even though such Person has not assumed or become liable
for the payment thereof; and (iv) any obligations of such Person as lessee under any lease of property which, in accordance with generally accepted accounting principles, is capitalized. 
 
“Depreciation” means, for each Partnership Year or other period, an amount equal to the
federal income tax depreciation, amortization or other cost recovery deduction allowable with respect to an asset for such year or other period, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax
purposes at the beginning of such year or other period, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization or other cost recovery deduction for such year
or other period bears to such beginning adjusted tax basis; provided, however, that if the federal income tax depreciation, amortization or other cost recovery deduction for such year is zero, Depreciation shall be determined with
reference to such beginning Gross Asset Value using any reasonable method selected by the General Partner. 
 
“Disposition Proceeds” means the net proceeds (including a reduction for any amount used for the repayment of any Debt
and the payment of any costs related thereto) received by the Partnership upon the taxable disposition of some, but not all or substantially all, of the Partnership’s Properties. 
 
“Dividend Percentage” means the fraction, as calculated by the General Partner with respect
to each Partnership Year, having a numerator equal to the aggregate amount of taxable income for federal income tax purposes that was allocable to a single REIT Share in such year, and a denominator equal to the total aggregate amount of
distributions (including both taxable income and any amounts treated as a return of capital or otherwise) that was distributed with respect to such REIT Share in such year. 
 
“Excess Partnership Units” means any Partnership Units held by a Limited Partner to the
extent that, if such Partnership Units were exchanged for REIT Shares pursuant to Section 8.6 hereof, such Limited Partner would Beneficially Own or Constructively Own REIT Shares in excess of the Ownership Limit or otherwise in violation of the
Charter. 
 
“Exchange” has the
meaning set forth in Section 8.6.A. 
 
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder. 
 
“General Partner” means the Company or its
successors as general partner of the Partnership. 
 

7 

 
“General Partner Distribution Property” means the Contributor Group Property contributed by the Tendering Contributor Group to the Partnership in exchange for the Contributor Group Limited Partnership Units that are
subject to the exercise by the Tendering Contributor Group of its Limited Partner Redemption Right which property is to be distributed to the General Partner or its designee in connection with the exercise of a Limited Partner Redemption Right.

 
“General Partner Interest”
means a Partnership Interest held by the General Partner that is a general partnership interest. A General Partner Interest may be expressed as a number of Partnership Units. 
 
“General Partnership Unit” means a single unit of Partnership Interest issued to the General
Partner pursuant to Article 4 hereof, as the same may be amended from time to time as provided in this Agreement. 
 
“Gross Asset Value” means, with respect to any asset, the asset’s adjusted basis for federal income tax purposes,
except as follows: 
 
(i) The initial Gross Asset
Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset, as determined by the contributing Partner and the General Partner (as set forth on Exhibit A attached hereto, as such Exhibit may be
amended from time to time) provided that, if the contributing Partner is the General Partner then, except with respect to the General Partner’s initial Capital Contribution or capital contributions of cash or REIT Shares, the determination of
the fair market value of the contributed asset shall be determined by Appraisal. 
 
(ii) The Gross Asset Values of all Partnership assets shall be adjusted to equal their respective gross fair market values, as determined by the General Partner using such reasonable method of
valuation as it may adopt as of the following times: 
 
(a) the acquisition of an additional interest in the Partnership by a new or existing Partner in exchange for more than a de minimis Capital Contribution, if the General Partner reasonably determines that such adjustment is necessary
or appropriate to reflect the relative economic interests of the Partners in the Partnership; 
 
(b) the distribution by the Partnership to a Partner of more than a de minimis amount of Partnership property as consideration for an interest in the Partnership, if the General Partner reasonably
determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership; 
 
(c) the liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); and 
 
(d) at such other times as the General Partner shall
reasonably determine necessary or advisable in order to comply with Regulations Sections 1.704-1(b) and 1.704-2. 
 

8 

 
(iii) The
Gross Asset Value of any Partnership asset distributed to a Partner shall be the gross fair market value of such asset on the date of distribution as determined by the distributee and the General Partner provided that, if the distributee is the
General Partner, or if the distributee and the General Partner cannot agree on such a determination, by Appraisal. 
 
(iv) The Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of
such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m); provided,
however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph (iv) to the extent that the General Partner reasonably determines that an adjustment pursuant to Paragraph subparagraph (ii) is necessary or appropriate in
connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (iv). 
 
(v) If the Gross Asset Value of a Partnership asset has been determined or adjusted pursuant to subparagraph (i), (ii) or (iv), such
Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Net Income and Net Losses. 
 
“Immediate Family” means, with respect to any Person, such Person’s estate and heirs
and current and former spouse(s), parents, parents-in-law, children, children-in-law, siblings and grandchildren and any trust or estate, all of the beneficiaries of which consist of such Person or such Person’s current or former spouse,
parents, parents-in-law, children, children-in-law, siblings or grandchildren. 
 
“Incapacity” or “Incapacitated” means, (i) as to any individual Partner, death, total physical disability or entry by a court of competent jurisdiction adjudicating
him incompetent to manage his Person or his estate; (ii) as to any corporation which is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter; (iii) as to any partnership which
is a Partner, the dissolution and commencement of winding up of the partnership; (iv) as to any estate which is a Partner, the distribution by the fiduciary of the estate’s entire interest in the Partnership; (v) as to any trustee of a trust
which is a Partner, the termination of the trust (but not the substitution of a new trustee); or (vi) as to any Partner, the bankruptcy or such Partner. For purposes of this definition, bankruptcy of a Partner shall be deemed to have occurred when
(a) the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law now or hereafter in effect, (b) the Partner is adjudged as bankrupt or insolvent, or a final
and nonappealable order for relief under any bankruptcy, insolvency or similar law now or hereafter in effect has been entered against the Partner, (c) the Partner executes and delivers a general assignment for the benefit of the Partner’s
creditors, (d) the Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the Partner in any proceeding of the nature described in clause (b) above, (e) the Partner seeks,
consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all or any substantial part of the Partner’s properties, (f) any proceeding seeking liquidation, reorganization or other relief under any
bankruptcy, insolvency or other similar law now or hereafter in effect has not been dismissed within 120 days after the commencement thereof, (g) the appointment without the Partner’s consent or acquiescence of a trustee, receiver of

 

9 

 
liquidator has not been
vacated or stayed within 90 days of such appointment, or (h) an appointment referred to in clause (g) is not vacated within 90 days after the expiration of any such stay. 
 
“Indemnitee” means (i) any Person made a party to a proceeding by reason of his status as
(a) the General Partner or (b) a director of the General Partner or officer of the Partnership, or the General Partner, and (ii) such other Persons (including Affiliates of the General Partner or the Partnership) as the General Partner may designate
from time to time, in its sole and absolute discretion. 
 
“IRS” means the Internal Revenue Service, which administers the internal revenue laws of the United States. 
 
“Limited Partner” means any Person named as a Limited Partner in Exhibit A attached hereto, as such Exhibit may be
amended from time to time, or any Substituted Limited Partner, in such Person’s capacity as a Limited Partner in the Partnership. 
 
“Limited Partner Redemption Right” has the meaning set forth in Section 8.7.A. 
 
“Limited Partnership Interest” means a
Partnership Interest of a Limited Partner in the Partnership representing a fractional part of the Partnership Interests of all Limited Partners and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as
provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. A Limited Partnership Interest may be expressed as a number of Limited Partnership Units. 
 
“Limited Partnership Unit” means a single
unit of Partnership Interest issued to a Limited Partner pursuant to Article 4 hereof, as the same may be amended from time to time as provided in this Agreement. 
 
“Liquidating Events” has the meaning set forth in Section 13.1. 
 
“Liquidator” has the meaning set forth in
Section 13.2.A. 
 
“Majority in Interest of
the Limited Partners” means those Limited Partners (other than any Limited Partner 50% or more of whose equity is owned, directly or indirectly, by Parent) holding in the aggregate 50% or more of the aggregate outstanding Limited
Partnership Units (other than those held by any Limited Partner 50% or more of whose equity is owned, directly or indirectly, by Parent). 
 
“Net Income” or “Net Loss” means for each Partnership Year, an amount equal to the Partnership’s
taxable income or loss for such Partnership Year, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included
in taxable income or loss), with the following adjustments: 
 

10 

 
(i) (Any
income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Net Income or Net Loss pursuant to this definition of Net Income or Net Loss shall be added to such taxable income or loss;

 
(ii) Any expenditures of the Partnership
described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net Income or Net Loss pursuant to this definition of
Net Income or Net Loss shall be subtracted from such taxable income or loss; 
 
(iii) In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to subparagraph (ii) or subparagraph (iii) of the definition of Gross Asset Value, the amount of such adjustment
shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Net Income or Net Loss; 
 
(iv) Gain or loss resulting from any disposition of property with respect to which gain or loss is recognized for federal income tax
purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value; 
 
(v) In lieu of the depreciation, amortization and other cost
recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Partnership Year; 
 
(vi) To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or Code Section
743(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Partner’s interest in the Partnership, the amount
of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes
of computing Net Income or Net Loss; and 
 
(vii)
Notwithstanding any other provision of this definition of Net Income or Net Loss, any items which are specially allocated pursuant to Section 6.3 hereof shall not be taken into account in computing Net Income or Net Loss. The amounts of the items of
Partnership income, gain, loss or deduction available to be specially allocated pursuant to Section 6.3 hereof shall be determined by applying rules analogous to those set forth in this definition of Net Income or Net Loss. 
 
“Nonrecourse Deductions” has the meaning set
forth in Regulations Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for a Partnership Year shall be determined in accordance with the rules of Regulations Section 1.704-2(c). 
 
“Nonrecourse Liability” has the meaning set
forth in Regulations Section 1.752-1(a)(2). 
 

11 

 
“Notice of Exchange” means the Notice of Exchange substantially in the form of Exhibit B to this Agreement. 
 
“Ownership Limit” means 6.25% of the number or value (whichever is more restrictive) of outstanding REIT Shares. The
number of REIT Shares shall be determined by the Board of Directors of Parent, in good faith, which determination shall be conclusive for all purposes hereof and shall, upon request of the General Partner, be communicated by Parent to the General
Partner. 
 
“Parent” has the
meaning set forth in the preamble. 
 
“Partner” means a General Partner or a Limited Partner, and “Partners” means the General Partner and the Limited Partners. 
 
“Partner Minimum Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal
to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3). 
 
“Partner Nonrecourse Debt” has the meaning set forth in Regulations Section 1.704-2(b)(4).

 
“Partner Nonrecourse
Deductions” has the meaning set forth in Regulations Section 1.704-2(i)(2), and the amount of Partner Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a Partnership Year shall be determined in accordance with the rules
of Regulations Section 1.704-2(i)(2). 
 
“Partnership” means the limited partnership formed under the Act and pursuant to this Agreement, and any successor thereto. 
 
“Partnership Distribution Date” means the date established by the General Partner for the payment of actual distributions
declared by the Partnership pursuant to Section 5.1, which date shall be the same as the date established by Parent for the payment of dividends or distributions to holders of REIT Shares. 
 
“Partnership Interest” means an ownership interest in the Partnership of either a Limited
Partner or the General Partner and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions
of this Agreement. A Partnership Interest may be expressed as a number of Partnership Units. 
 
“Partnership Minimum Gain” has the meaning set forth in Regulations Section 1.704-2(b)(2), and the amount of Partnership Minimum Gain, as well as any net increase or decrease in
Partnership Minimum Gain, for a Partnership Year shall be determined in accordance with the rules of Regulations Section 1.704-2(d). 
 
“Partnership Record Date” means the record date established by the General Partner for the distribution of Available Cash
pursuant to Section 5.1 hereof, which record date 
 

12 

 
shall be the same as the
record date established by Parent for a dividend or distribution to holders of REIT Shares. 
 
“Partnership Unit” means a fractional, undivided share of the Partnership Interests of all Partners issued pursuant to Section 4.1 including General Partnership Units and Limited
Partnership Units. The ownership of Partnership Units is set forth on Exhibit A and is evidenced by the form of certificate for units attached hereto as Exhibit C. 
 
“Partnership Year” means the fiscal year of the Partnership, which shall be the calendar
year. 
 
“Payment Quarter” means
the calendar quarter most recently ended prior to the applicable Partnership Distribution Date. 
 
“Percentage Interest” means, as to a Partner, its interest in the Partnership as determined by dividing the Partnership Units owned by such Partner by the total number of Partnership
Units then outstanding and as specified in Exhibit A attached hereto, as such Exhibit may be amended from time to time. 
 
“Person” means an individual or a corporation, partnership, trust, unincorporated organization, association or other
entity. 
 
“Preferred Return
Amount” means, with respect to each Limited Partnership Unit, an amount equal to the product of (i) the cash dividend per REIT Share declared by Parent for holders of REIT Shares on the related Partnership Record Date, multiplied by (ii)
the Adjustment Factor in effect on that Partnership Record Date, provided, however, that if a regular quarterly cash dividend per REIT Share declared by Parent for a Payment Quarter is less than $0.475 divided by the Adjustment Factor, the
Preferred Return Amount with respect to each Limited Partnership Unit for such Payment Quarter shall be equal to the lesser of (A) the amount that would be received in respect of that Limited Partnership Unit if the Available Cash for such quarter
was distributed pro rata to the holders of Partnership Units in accordance with their Percentage Interests and (B) $0.475 divided by the Adjustment Factor. 
 
“Preferred Return Per Unit” means, with respect to each Limited Partnership Unit outstanding
on a Partnership Record Date, an amount initially equal to zero, and increased cumulatively on each Partnership Record Date after the Effective Time by the Preferred Return Amount. 
 
“Preferred Return Shortfall” means, with respect to any holder of Limited Partnership Units,
the amount (if any) by which (i) the Preferred Return Per Unit with respect to all Limited Partnership Units held by such holder exceeds (ii) the aggregate amount previously distributed with respect to such Limited Partnership Units pursuant to
Article 5 after the Effective Time. 
 
“Prime Rate” means a rate equal to the annual rate on such date announced by the Bank of America to be its prime, base or reference rate for 90-day unsecured loans to its corporate borrowers of the highest credit
standing but in no event greater than the maximum rate then permitted under applicable law. If the Bank of America discontinues its use of such prime, 
 

13 

 
base or reference rate or
ceases to exist, the General Partner shall designate the prime, base or reference rate of another state or federally chartered bank based in California to be used for the purpose of calculating the Prime Rate hereunder. 
 
“Properties” means such interests in real
property and personal property, including without limitation, fee interests, interests in ground leases, interests in joint ventures or partnerships, interests in mortgages, and Debt instruments as the Partnership may hold from time to time.

 
“Redemption Date” means the
date specified in a Redemption Notice on which the redemption of Limited Partnership Units is to be effective pursuant to Section 11.6. 
 
“Redemption Notice” means a written notice to a Limited Partner informing that Limited Partner of the General
Partner’s election to redeem their Limited Partnership Units pursuant to Section 11.6 hereof. 
 
“Redemption Price” means, at the election of and in the sole and absolute discretion of the General Partner, either (A)
an amount of cash equal to the Cash Amount plus any Preferred Return Shortfall of the holder of the Limited Partnership Units to be redeemed pursuant to Section 11.6, in each case determined as of the Valuation Date or (B) a number of REIT Shares
equal to the sum of (x) the REIT Shares Amount and (y) any Preferred Return Shortfall of the holder of the Limited Partnership Units to be redeemed pursuant to Section 11.6 divided by the Value, in each case determined as of the Valuation Date.

 
“Reduction Date” has the
meaning set forth in Section 5.6.A hereof. 
 
“Reduction Units” has the meaning set forth in Section 5.6.A hereof. 
 
“Refinancing Debt” means any Debt (other than indebtedness to the General Partner or any Affiliate of the General
Partner), the repayment of which is secured by all or any portion of the Partnership’s real Properties. 
 
“Refinancing Proceeds” means the net proceeds from any Refinancing Debt incurred by the Partnership which remain after
the repayment of any Debt with proceeds of the Refinancing Debt and all costs related to the Refinancing Debt. 
 
“Regulations” means the Income Tax Regulations promulgated under the Code, as such regulations may be amended from time
to time (including corresponding provisions of succeeding regulations). 
 
“Regulatory Allocations” has the meaning set forth in Section 6.3.A (viii). 
 
“REIT” means a real estate investment trust under Section 856 of the Code. 
 
“REIT Requirements” has the meaning set forth
in Section 5.1.B. 
 
“REIT Share”
means a share of common stock, par value $0.01 per share, of Parent. 
 

14 

 
“REIT
Shares Amount” means, as of any date, an aggregate number of REIT Shares equal to the product of (a) the number of Tendered Units pursuant to Section 8.6, the number of Contributor Group Limited Partnership Units of a Tendering Contributor
Group pursuant to Section 8.7 or the number of Limited Partnership Units specified in a Redemption Notice pursuant to Section 11.6, as the case may be, and (b) the Adjustment Factor. 
 
“Retail Shopping Center” means properties that are used primarily as retail shopping
facilities and may include properties that are used as both retail shopping facilities and commercial office facilities. 
 
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder. 
 
“Specified Exchange Date” means the day of receipt by the General Partner of a Notice of Exchange. 
 
“Section 8.7 Indemnified Parties” has the meaning set forth in Section 8.7.F. 
 
“Subsidiary” means, with respect to any
Person, any corporation or other entity of which a majority of (i) the voting power of the voting equity securities or (ii) the outstanding equity interests is owned, directly or indirectly, by such Person. 
 
“Substituted Limited Partner” means a Person
who is admitted as a Limited Partner to the Partnership pursuant to Section 11.4. 
 
“Target Property” means the fee interest in a real property located in the United States designated by a Tendering Contributor Group to be acquired by a Target Property LLC pursuant to
Section 8.7. Each Tendering Contributor Group shall have the right to designate up to two (2) such real properties, provided, however, that the Contributor Group of the North County property shall be entitled to designate up to three (3) such real
properties. 
 
“Target Property
Deliverables” means the following with respect to each Target Property: 
 
(i) true and correct copies of all agreements or escrow instructions relating to the acquisition of the Target Property (the “Target Property Purchase Documents”) by the applicable Target
Property LLC, which Target Property Purchase Documents shall include, without limitation the amount of any debt to which the Target Property will be subject on the Target Property Redemption Date. In no event shall Parent, the General Partner, the
Partnership, any of their Affiliates or the Target Property LLC be responsible to fund all or any portion of any deposit, earnest money, option payment or other similar fee or amount required to be paid or deposited under the Target Property
Purchase Documents; 
 
(ii) a then
current Phase I environmental assessment (the “Environmental Report”) of the Target Property performed by a qualified environmental engineer reasonably acceptable to the General Partner and 
 

15 

addressed to (or otherwise entitled to be relied upon by) Parent, the General Partner, the
Partnership and the applicable Target Property LLC; 
 
(iii) a current commitment for an ALTA extended owner’s coverage policy of title insurance, in an amount equal to the full purchase price of the Target Property, from a reputable national title insurance company
reasonably acceptable to the General Partner, together with all underlying title documents taken as exceptions or otherwise referred to in said commitment and a current final “as-built” ALTA survey completed in accordance with the Minimum
Standard Detail requirements for ALTA/ACSM Land Title Surveys jointly established and adopted by ALTA and ACSM in 1999 that meet the requirements of a Class A Survey as defined therein, of the Target Property (collectively, the “Title and
Survey Material”), in each case addressed to (or otherwise entitled to be relied upon by) Parent, the General Partner, the Partnership and the applicable Target Property LLC; 
 
(iv) a structural and physical engineering report (the “Structural Report”) of the
Target Property performed by a qualified structural and physical engineer reasonably acceptable to the General Partner and addressed to (or otherwise entitled to be relied upon by) Parent, the General Partner, the Partnership and the applicable
Target Property LLC; 
 
(v) the
Target Property Expense Deposit; 
 
(vi) the formation documents for the applicable Target Property LLC prepared by the Contributor Group and providing for no liability on the part of the members of the Target Property LLC to such entity (the “Target Property
Formation Documents”). 
 
“Target
Property Expense Deposit” means the sum of $25,000 for each Target Property. 
 
“Target Property LLC” means each single purpose Delaware limited liability company initially formed as a wholly-owned Subsidiary of the Partnership for the purpose of acquiring a
Target Property pursuant to Section 8.7. 
 
“Target Property Notice” means a written notice to the General Partner, signed by each member of a Tendering Contributor Group and delivered to the General Partner, electing to exercise Limited Partner Redemption
Rights pursuant to Section 8.7 and setting forth or providing the following, as applicable: 
 
(i) a reasonable description of each Target Property to be acquired by a Target Property LLC, including, the address, legal description, type of property and size; 
 
(ii) that each such property is designated as Target
Property; 
 
(iii) the purchase price of each
Target Property; 
 

16 

 
(iv) whether
each designated Target Property is to be acquired by a separate Target Property LLC; 
 
(v) the Target Property Redemption Date; and 
 
(vi) the Target Property Deliverables. 
 
“Target Property Redemption Conditions” means, with respect to any Target Property Redemption, satisfaction of each of the following conditions: 
 
(i) Delivery to the General Partner of: 
 
(a) a Target Property Notice together with all Target
Property Deliverables; 
 
(b) the Target Property
Purchase Documents and approval of the same by the General Partner; 
 
(c) the Environmental Report and approval of the same by the General Partner; 
 
(d) the Title and Survey Materials and approval of the same by the General Partner; 
 
(e) new policies of title insurance, or, if available,
endorsements to the Partnership’s existing policies of title insurance with respect to the General Partner Distributed Property as reasonably required by the General Partner; 
 
(f) the Structural Report and approval of the same by the General Partner; 
 
(g) certificates of casualty insurance insuring the Target
Property, at the expense of the Contributor Group, with coverages and insurance carriers approved by the General Partner and identifying the applicable Target Property LLC as the named insured, and the Partnership and the General Partner as
additional insureds thereunder; 
 
(h) appropriate
corporate, partnership, limited liability company or other business or trust entity authorization of each member of the Tendering Contributor Group, as the case be; 
 
(i) payment of (or evidence of payment of), by the Tendering Contributor Group, of all Contributor Group
Transaction Costs, due credit being given for the Target Property Expense Deposit; 
 
(j) the Target Property Formation Documents and approval of the same by the General Partner; 
 

17 

 
(k) a general
release, in form and substance reasonably satisfactory to the General Partner, of all claims arising out of or in any way related to the exercise of the Limited Partner Redemption Right, the Target Property or this Partnership Agreement (in each
case, excluding, however, the obligations of the General Partner or the Partnership under Section 8.7 to the extent the same have not be fully performed at the Limited Partner Redemption Date), including a waiver of California Civil Code Section
1542, in favor of Parent, the General Partner, the Partnership and their Affiliates, duly executed by each member of the Tendering Contributor Group; and 
 
(l) such other documents and instruments as are reasonably requested by the General Partner. 
 
(ii) confirmation by Parent’s tax counsel that the
transactions arising out of the exercise of the Limited Partner Redemption Right and the instruments, documents or agreements to be executed in connection therewith do not and will not impair Parent’s ability to qualify for state or federal
taxation as a REIT or cause Parent to realize income or gain for tax purposes; 
 
(iii) evidence of all consents, permits, licenses, approvals or authorizations from governmental authorities or other third parties (including lenders) which are necessary to consummate the series of
transactions arising out of the exercise of a Limited Partner Redemption Right; and 
 
(iv) the occurrence of the Target Property Redemption Date prior to the Target Property Redemption Deadline. 
 
“Target Property Redemption Date” means, with respect to any Target Property Redemption, a Business Day to be selected by
the Contributor Group as the Business Day for closing the acquisition of the Target Property by the Target Property LLC, which date shall be not less than forty-five (45) days following the date of delivery of the Target Property Notice to the
General Partner and prior to the Target Property Redemption Deadline. 
 
“Target Property Redemption Deadline” means, with respect to any Target Property Redemption, the earlier of (i) ten (10) Business Days following satisfaction of the Target Property Redemption Conditions or
(ii) ninety (90) days following the date of delivery of the Target Property Notice to the General Partner. 
 
“Tax Items” has the meaning set forth in Section 6.4.A. 
 
“Tenant” means any tenant from which Parent, the General Partner, the Partnership or any
partnership, venture or limited liability company of which Parent, the General Partner or the Partnership is a direct or indirect owner derives rent, either directly or indirectly. 
 
“Tendered Units” has the meaning set forth in Section 8.6.A. 
 
“Tendering Contributor Group” means a
Contributor Group that has exercised its Limited Partner Redemption Rights with respect to such Contributor Group’s Contributor Group Property and Contributor Group Limited Partnership Units. 
 

18 

 
“Tendering Partner” has the meaning set forth in Section 8.6.A. 
 
“Terminating Capital Transaction” means any sale or other disposition of all or substantially all of the assets of the Partnership or a related series of transactions that, taken
together, result in the sale or other disposition of all or substantially all of the assets of the Partnership. 
 
“Valuation Date” means (i) in the case of a tender of Limited Partnership Units for Exchange, the date of the receipt by
the General Partner of the Notice of Exchange with respect to those Limited Partnership Units or, if such date is not a Business Day, the immediately preceding Business Day, (ii) for purposes of Section 5.6.A hereof, the Reduction Date or, if the
Reduction Date is not a Business Day, the immediately preceding Business Day, (iii) for purposes of Section 11.6 hereof, the Redemption Date or, if such day is not a Business Day, the immediately preceding Business Day, (iv) for purposes of Section
8.7 hereof, the date of receipt by the General Partner of the Target Property Notice with respect to the applicable Contributor Group Limited Partnership Units or (v) in any other case, the date specified in this Agreement or, if such date is not a
Business Day, the immediately preceding Business Day. 
 
“Value” means, with respect to a REIT Share, the average of the daily market price for the ten (10) consecutive trading days immediately preceding the date with respect to which “Value” must be determined
hereunder, or, if such date is not a Business Day, the immediately preceding Business Day. The market price for each such trading day shall be: (i) if the REIT Shares are listed or admitted to trading on any securities exchange or the
NASDAQ-National Market System, the closing price, regular way, on such day, or if no such sale takes place on such day, the average of the closing bid and asked prices on such day, (ii) if the REIT Shares are not listed or admitted to trading on any
securities exchange or the NASDAQ-National Market System, the last reported sale price on such day or, if no sale takes place on such day, the average of the closing bid and asked prices on such day, as reported by a reliable quotation source
designated by the General Partner, or (iii) if the REIT Shares are not listed or admitted to trading on any securities exchange or the NASDAQ-National Market System and no such last reported sale price or closing bid and asked prices are available,
the average of the reported high bid and low asked prices on such day, as reported by a reliable quotation source designated by the General Partner, or if there shall be no bid and asked prices on such day, the average of the high bid and low asked
prices, as so reported, on the most recent day (not more than 10 days prior to the date in question) for which prices have been so reported; provided that if there are no bid and asked prices reported during the 10 days prior to the date in
question, the Value of the REIT Shares shall be determined by the General Partner acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment, appropriate. In the event the REIT Shares
Amount includes rights that a holder of REIT Shares would be entitled to receive, then the Value of such rights shall be determined by the General Partner acting in good faith on the basis of such quotations and other information as it considers, in
its reasonable judgment, appropriate. 
 

19 

 
ARTICLE 2.

ORGANIZATIONAL MATTERS 
 
Section 2.1 Organization 
 
The Partnership is a limited partnership formed pursuant to the provisions of the Act and upon the terms and conditions set forth in this
Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the administration and termination of the Partnership shall be governed by the Act. The Partnership Interest of each Partner shall be
personal property for all purposes. 
 
Section 2.2
Name 
 
The name of the Partnership is CT
Operating Partnership, L.P. The Partnership’s business may be conducted under any other name or names deemed advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words “Limited
Partnership,” “L.P.,” “Ltd.” or similar words or letters shall be included in the Partnership’s name where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The General Partner
in its sole and absolute discretion may change the name of the Partnership at any time and from time to time and shall notify the Limited Partners of such change in the next regular communication to the Limited Partners. 
 
Section 2.3 Registered Office and Agent; Principal
Office 
 
The address of the registered office
of the Partnership in the State of California is located at 818 West Seventh Street, Los Angeles, California, 90017, and the registered agent for service of process on the Partnership in the State of California at such registered office is C T
Corporation System. The principal office of the Partnership is 1631-B South Melrose Drive, Vista, California, or such other place as the General Partner may from time to time designate by notice to the Limited Partners. The Partnership may maintain
offices at such other place or places within or outside the State of California as the General Partner deems advisable. 
 
Section 2.4 Power of Attorney 
 
A. Each Limited Partner and each Assignee hereby irrevocably constitutes and appoints the General Partner, any Liquidator, and authorized
officers and attorneys-in-fact of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead to: 
 
(1) execute, swear to, acknowledge, deliver,
file and record in the appropriate public offices (a) all certificates, documents and other instruments (including, without limitation, this Agreement and the Certificate and all amendments or restatements thereof) that the General Partner or the
Liquidator deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) in the State of California and
in all other jurisdictions in which the Partnership may conduct business or own property; (b) all instruments that the General Partner deems appropriate or necessary to reflect any amendment, change, modification or restatement 
 

20 

 
of this
Agreement in accordance with its terms; (c) all conveyances and other instruments or documents that the General Partner deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this
Agreement, including, without limitation, a certificate of cancellation; (d) all instruments relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other events described in, Article 11, 12 or 13 hereof or the
Capital Contribution of any Partner; and (e) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership Interests; and 
 
(2) execute, swear to, acknowledge and file
all ballots, consents, approvals, waivers, certificates and other instruments appropriate or necessary, in the sole and absolute discretion of the General Partner, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or
other action which is made or given by the Partners hereunder or is consistent with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner, to effectuate the terms or intent of this Agreement.

 
Nothing contained herein shall be construed as authorizing the
General Partner to amend this Agreement except in accordance with Article 14 hereof or as may be otherwise expressly provided for in this Agreement. 
 
B. The foregoing power of attorney is hereby declared to be irrevocable and a special power coupled with an interest, in recognition of
the fact that each of the Partners will be relying upon the power of the General Partner to act as contemplated by this Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by the
subsequent Incapacity of any Limited Partner or Assignee and the transfer of all or any portion of such Limited Partner’s or Assignee’s Partnership Units and shall extend to such Limited Partner’s or Assignee’s heirs, successors,
assigns and personal representatives. Each such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner, acting in good faith pursuant to such power of attorney; and each such Limited Partner or
Assignee hereby waives any and all defenses which may be available to contest, engage or disaffirm the action of the General Partner, taken in good faith under such power of attorney. Each Limited Partner or Assignee shall execute and deliver to the
General Partner or the Liquidator, within 15 days after receipt of the General Partner’s request therefor, such further designation, powers of attorney and other instruments as the General Partner or the Liquidator, as the case may be, deems
necessary to effectuate this Agreement and the purposes of the Partnership. 
 
Section 2.5 Term 
 
The term of the Partnership commenced on November 30, 1993, the date the Certificate was filed in the office of the Secretary of State of California in accordance with the Act and shall continue until December 31, 2092
unless the Partnership is dissolved sooner pursuant to the provisions of Article 13 or as otherwise provided by law. 
 

21 

 
ARTICLE 3.

PURPOSE 
 
Section 3.1 Purpose and Business 
 
The purpose and nature of the business to be conducted by the Partnership is (i) to acquire, own, manage, operate, maintain, improve,
expand, redevelop, encumber, sell or otherwise dispose of, in accordance with the terms of this Agreement, Retail Shopping Centers and to invest, loan and ultimately distribute funds, including, without limitation, funds obtained from owning or
otherwise operating Retail Shopping Centers and the proceeds from the sale or other disposition of Retail Shopping Centers, all in the manner permitted by this Agreement, and (ii) subject to and in accordance with the terms of this Agreement, to do
anything necessary or incidental to the foregoing; provided, however, that such business shall be limited to and conducted in such a manner as to permit Parent at all times to be classified as a REIT for federal income tax purposes,
unless Parent has determined to cease to qualify as a REIT, (ii) to enter into any partnership, joint venture or other similar arrangement to engage in any of the foregoing or the ownership of interests in any entity engaged in any of the foregoing
and (iii) to do anything necessary or incidental to the foregoing. 
 
Section 3.2 Powers 
 
The Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment of the purposes and business described herein and for the
protection and benefit of the Partnership, provided that the Partnership shall not take, or refrain from taking, any action which, in the judgment of the General Partner, in its sole and absolute discretion, (i) could adversely affect the ability of
Parent to continue to qualify as a REIT, (ii) could subject Parent to any additional taxes under Section 857 or Section 4981 of the Code or (iii) could violate any law or regulation of any governmental body or agency having jurisdiction over Parent,
the General Partner or any of their securities, unless such action (or inaction) under (i), (ii) or (iii) shall have been specifically consented to by the General Partner in writing. 
 
Section 3.3 Partnership Only for Purposes Specified 
 
The Partnership shall be a partnership only for the purposes
specified in Section 3.1 hereof, and this Agreement shall not be deemed to create a partnership among the Partners with respect to any activities whatsoever other than the activities within the purposes of the Partnership as specified in Section 3.1
hereof. Except as otherwise provided in this Agreement, no Partner shall have any authority to act for, bind, commit or assume any obligation or responsibility on behalf of the Partnership, its properties or any other Partner. No Partner, in its
capacity as a Partner under this Agreement, shall be responsible or liable for any indebtedness or obligation of another Partner, nor shall the Partnership be responsible or liable for any indebtedness or obligation of any Partner, incurred either
before or after the execution and delivery of this Agreement by such Partner, except as to those responsibilities, liabilities, indebtedness or obligations incurred pursuant to and as limited by the terms of this Agreement and the Act. 
 

22 

 
Section 3.4
Representations and Warranties by the Parties 
 
A. Each Partner that is an individual represents and warrants to each other Partner that (i) he has the legal capacity to enter into this Agreement and perform his obligations hereunder, (ii) the consummation of the transactions
contemplated by this Agreement to be performed by such Partner will not result in a breach or violation of, or a default under, any agreement by which such Partner or any of such Partner’s property is or are bound, or any statute, regulation,
order or other law to which such Partner is subject, (iii) such Partner is not a “foreign person” within the meaning of Section 1445(f) of the Code nor a “foreign person” under Section 1446(e) of the Code, and (iv) this Agreement
is binding upon, and enforceable against, such Partner in accordance with its terms. 
 
B. Each Partner that is not an individual represents and warrants to each other Partner that (i) all transactions contemplated by this Agreement to be performed by it have been duly authorized by all
necessary action, including without limitation, that of its general partner(s), committee(s), trustee(s), beneficiaries, directors and/or shareholder(s), as the case may be, as required, (ii) the consummation of such transactions shall not result in
a breach or violation of, or a default under, its partnership agreement, trust agreement, charter or by-laws, as the case may be, any agreement by which such Partner or any of such Partner’s properties or any of its partners, beneficiaries,
trustees or shareholders, as the case may be, is or are bound, or any statute, regulation, order or other law to which such Partner or any of its partners, trustees, beneficiaries or shareholders, as the case may be, is or are subject, (iii) such
Partner is neither a “foreign person” within the meaning of Section 1445(f) of the Code nor a “foreign partner” within the meaning of Section 1446(e) of the Code, and (iv) this Agreement is binding upon, and enforceable against,
such Partner in accordance with its terms. 
 
C.
Each Partner represents, warrants and agrees that it has acquired and continues to hold its interest in the Partnership for its own account for investment only and not for the purpose of, or with a view toward, the resale or distribution of all or
any part thereof, nor with a view toward selling or otherwise distributing such interest or any part thereof at any particular time or under any predetermined circumstances. Each Partner further represents and warrants that it is an “accredited
investor” as defined in Rule 501(a) promulgated under the Securities Act and is a sophisticated investor, able and accustomed to handling sophisticated financial matters for itself, particularly real estate investments, and that it has a
sufficiently high net worth that it does not anticipate a need for the funds it has invested in the Partnership in what it understands to be a highly speculative and illiquid investment. 
 
D. Each Limited Partner, other than any Limited Partner to which the General Partner, in its sole discretion,
has granted an exception to this Section 3.4.D (but, with respect to any such Limited Partner, only to the extent of the exception so granted by the General Partner), further represents, warrants and agrees as follows: 
 
(i) At any time a Person actually owns or Constructively Owns
a 25% or greater capital interest or profits interest in the Partnership, such Person does not and will not, without the prior written consent of the General Partner, actually own or Constructively Own (a) with respect to any Tenant that is a
corporation, any stock of such Tenant and (b) with respect to 
 

23 

 
any Tenant that is not a
corporation, any interests in either the assets or net profits of such Tenant. 
 
(ii) It understands that if, for any reason, any of the representations, warranties or agreements set forth in D.(i) above are violated, then (a) some or all of the Partners’ rights to exchange
Partnership Units for REIT Shares may become non-exercisable, and (b) some or all of the REIT Shares owned by the Partners may be automatically transferred to a Trust (as defined in the Charter) pursuant to Article VIII of the Charter. 
 
E. The representations and warranties contained in Sections
3.4.A, 3.4.B, 3.4.C and 3.4.D hereof shall survive the execution and delivery of this Agreement by each Partner and the dissolution and wind up of the Partnership. 
 
F. Each Partner hereby acknowledges that no representations as to potential profit, cash flows, funds from
operations or yield, if any, in respect of the Partnership or the General Partner have been made by any Partner or any employee or representative or Affiliate of any Partner, and that projections and any other information, including, without
limitation, financial and descriptive information and documentation, which may have been in any manner submitted to such Partner shall not constitute any representation or warranty of any kind or nature, express or implied. 
 
ARTICLE 4. 
CAPITAL CONTRIBUTIONS 
 
Section 4.1 Capital Contributions of the Partners. 
 
The Partners have made Capital Contributions as set forth in Exhibit A to this Agreement. The Partners shall
own Partnership Units in the amounts set forth in Exhibit A and shall have a Percentage Interest in the Partnership as set forth in Exhibit A. The number of Partnership Units and the corresponding Percentage Interest of each Partner shall be
adjusted in Exhibit A from time to time by the General Partner to the extent necessary to reflect accurately exchanges, redemptions, reductions, Capital Contributions, the issuance of additional Partnership Units or similar events having an effect
on a Partner’s Percentage Interest. Except as required by law or as otherwise provided in Sections 4.3 and 10.5, no Partner shall be required or permitted to make any additional Capital Contributions or loans to the Partnership. 
 
Section 4.2 Loans 
 
The Partnership may incur Debt, or enter into other similar
credit, guarantee, financing or refinancing arrangements for any purpose (including, without limitation, in connection with any further acquisition of Properties) with any Person upon such terms as the General Partner determines appropriate;
provided that, the Partnership shall not incur any Debt under which a breach, violation or default would be deemed to occur by virtue of the transfer of any Limited Partnership Units or General Partnership Units, and any Debt which
refinances Debt outstanding upon the closing of the initial public offering, shall be non-recourse to the General Partner, except to the extent otherwise approved by the Consent of the Limited Partners. Notwithstanding the foregoing, all loans made
to the Partnership by the General Partner or any of 
 

24 

 
its Affiliates pursuant to
this Section 4.2 shall be on terms and conditions no less favorable to the Partnership than would be available to the Partnership from any third party. 
 
Section 4.3 Additional Funding and Capital Contributions 
 
A. General. The General Partner may, at any time and from time to time determine that the Partnership
requires additional funds or property (“Additional Funds”) for the acquisition of additional Properties or for such other Partnership purposes as the General Partner may determine. Additional Funds may be raised by the Partnership, at the
election of the General Partner, in any manner provided in, and in accordance with, the terms of this Section 4.3. No Person shall have any preemptive, preferential or similar right or rights to subscribe for or acquire any Partnership Interest,
except as set forth in this Section 4.3. 
 
B.
Additional Capital Contributions. Upon delivery of a written notice to the Partners of the need for Additional Funds and the anticipated sources thereof, the General Partner, on behalf of the Partnership, may raise all or any portion of the
Additional Funds by accepting additional Capital Contributions (i) in the case of cash, from the General Partner, or (ii) in the case of cash or property other than cash, from any Limited Partner and issuing additional General Partnership Units or
Limited Partnership Units to the General Partner or such Limited Partner, respectively. Subject to the terms of this Section 4.3, and to the definition of “Gross Asset Value”, the General Partner shall determine the amount, terms and
conditions of such additional Capital Contributions. With respect to Capital Contributions made pursuant to this Section 4.3, the contributing Person shall receive a number of Partnership Units in consideration of such Capital Contribution that is
equal to the Agreed Value of the additional Capital Contribution divided by the Value of a REIT Share as of the date of such contribution. 
 
Section 4.4 Timing of Additional Capital Contributions. 
 
If additional Capital Contributions are made by a Partner on any day other than the first day of a
Partnership Year, then Net Income, Net Loss, each item thereof and all other items of income, gain, loss, deduction and credit allocable among Partners for such Partnership Year, if necessary, shall be allocated among such Partners by taking into
account their varying interests during the Partnership Year in accordance with Code Section 706(d), using any permissible method selected by the General Partner. 
 
ARTICLE 5. 
DISTRIBUTIONS 
 
Section 5.1 Requirement and Characterization of Distributions 
 
A. The General Partner shall cause the Partnership to distribute quarterly on the applicable Partnership Distribution Date all Available Cash generated by the Partnership during the applicable Payment
Quarter (except to the extent provided in Section 5.5 as reasonably determined by the General Partner) as follows: 
 
(1) First, to the holders of the Limited Partnership Units, in accordance with their relative Preferred Return Shortfalls
at the end of the Payment Quarter, until the 
 

25 

 
Preferred
Return Shortfall for each holder of Limited Partnership Units at the end of the Payment Quarter is zero. 
 
(2) Second, to the General Partner until the General Partner has received all remaining Available Cash.

 
B. The General Partner may take such reasonable
efforts, as determined by it in its sole and absolute discretion and consistent with Parent’s qualification as a REIT, to cause the Partnership to make distributions in accordance with Section 5.1.A and Section 5.5 in sufficient amounts to
enable Parent to pay stockholder dividends that will (a) satisfy the requirements for qualifying for taxation as a REIT under the Code and Regulations (“REIT Requirements”), and (b) avoid any federal income or excise tax liability
of Parent. 
 
Section 5.2 Distributions in
Kind 
 
Except as provided in Section 8.7 or
Section 13.2, no right is given to any Partner to demand and receive property other than cash. The General Partner may determine, with the Consent of a Majority in Interest of the Limited Partners, to make a distribution in kind to the Partners of
Partnership assets, and such assets shall be distributed in such a fashion as to ensure that the fair market value is distributed and allocated in accordance with Articles 5 and 6. 
 
Section 5.3 Amounts Withheld 
 
All amounts withheld pursuant to the Code or any provisions of any state or local tax law and Section 10.5
hereof with respect to any allocation, payment or distribution to the General Partner, the Limited Partners or Assignees shall be treated as amounts distributed to the General Partner, Limited Partners, or Assignees, as the case may be, pursuant to
Article 5 for all purposes under this Agreement. 
 
Section 5.4 Distributions Upon Liquidation 
 
Notwithstanding any provision to the contrary in this Article 5, proceeds from a Terminating Capital Transaction shall be distributed to the Partners in accordance with Section 13.2. 
 
Section 5.5 Distributions of Proceeds from Sale or
Refinancing of Properties 
 
Notwithstanding
the provisions of Section 5.1, in the event of a taxable disposition of some, but not all or substantially all, of the Properties, or upon the incurrence of Refinancing Debt, the General Partner may cause the Partnership to distribute all or any
portion of the Disposition Proceeds or Refinancing Proceeds, as the case may be so long as immediately following such distribution the General Partner will own not less than seventy-five percent (75%) of all outstanding Partnership Units; provided
however, that any General Partnership Units redeemed pursuant to Section 8.7 shall be deemed to be outstanding and held by the General Partner for this purpose. To the extent the Disposition Proceeds or Refinancing Proceeds are distributed, they
shall be distributed as follows: 
 

26 

 
A. First, to
the holders of Limited Partnership Units in accordance with their Preferred Return Shortfalls until the Preferred Return Shortfall for each holder of Limited Partnership Units is zero; 
 
B. Second, to the General Partner until the General Partner has received all remaining Disposition Proceeds
or Refinancing Proceeds to be distributed. 
 
Section 5.6 Reductions of General Partnership Units 
 
A. The number of General Partnership Units outstanding on the date of a distribution pursuant to Section 5.5.B will automatically (whether or not the General Partner returns the certificates evidencing
Reduction Units) be reduced on the Reduction Date by the aggregate number of General Partnership Units (rounded down to the nearest whole unit) (the “Reduction Units”) on the date of the distribution (the “Reduction Date”)
determined by dividing (i) the aggregate amount of the distributions so made to the General Partner pursuant to Section 5.5.B by (ii) the Value of a REIT Share on the Valuation Date. 
 
B. The General Partner shall return to the Partnership the certificate(s) evidencing the Reduction Units,
which will be canceled and a new certificate evidencing the reduced number of General Partnership Units shall be immediately issued to the General Partner by the General Partner on behalf of the Partnership. 
 
ARTICLE 6. 
ALLOCATIONS 
 
Section 6.1 Timing and Amount of Allocations of Net Income and Net Loss 
 
Net Income and Net Loss of the Partnership shall be determined
and allocated with respect to each Partnership Year as of the end of each such Partnership Year. Subject to the other provisions of this Article 6, an allocation to a Partner of a share of Net Income or Net Loss shall be treated as an allocation of
the same share of each item of income, gain, loss or deduction that is taken into account in computing Net Income or Net Loss. 
 
Section 6.2 General Allocations 
 
A. Operating Net Income and Net Loss. Except as otherwise provided in Sections 6.2.B, 6.2.C or 6.3: 
 
(1) Net Income with respect to any Partnership
Year, other than such items attributable to a taxable disposition of any or all of the Properties, and other than such items attributable to a Liquidating Event, shall be allocated: 
 
(a) First to each holder of Limited Partnership Units in an amount that will cause such allocation, together
with the amount of all previous allocations of Net Income under this Section 6.2.A(1)(a) and Section 6.2.B(1)(a) below, to be equal to the cumulative distributions received by such holder from the Partnership pursuant to Sections 5.1.A(1) and 5.5.A
multiplied by the Dividend Percentage applicable to the Partnership Year in which each such distribution was made; and 
 

27 

 
(b)
Thereafter, to the General Partner. 
 
(2) Net Loss with respect to any Partnership Year, other than such items attributable to a taxable disposition of any or all of the Properties, and other than such items attributable to a Liquidating Event, shall be allocated to the
General Partner. 
 
B. Net Income and Net Loss from
the Disposition of Properties. Except as otherwise provided in Sections 6.2.C or 6.3: 
 
(1) Net Income attributable to a taxable disposition of any or all of the Properties shall be allocated as follows:

 
(a) First to each holder of Limited Partnership
Units in an amount that will cause such allocation, together with the amount of all previous allocations of Net Income under this Section 6.2.B(1)(a) and all previous and any current allocations of Net Income under Section 6.2.A(1)(a) above, to be
equal to the cumulative distributions received by such holder from the Partnership pursuant to Section 5.1.A(1) and 5.5.A multiplied by the Dividend Percentage applicable to the Partnership Year in which each such distribution was made; and

 
(b) Thereafter, to the General Partner.

 
(2) Net Loss attributable to a
disposition of any or all of the Properties shall be allocated to the General Partner. 
 
C. Net Income and Net Loss Upon Liquidation. If a Liquidating Event occurs in a Partnership Year, or if all of the Limited Partnership Units held by a Person have been acquired by the
Partnership in a Partnership Year (pursuant to Section 11.6 or otherwise), Net Income or Net Loss (or, if necessary, separate items of income, gain, loss and deduction) for such Partnership Year and, in the case of a Liquidating Event, any
Partnership Years thereafter shall, subject to Section 6.3, be allocated among the Partners, as follows: 
 
(1) In the case of a Liquidating Event, and not taking into account any distributions to a Limited Partner under Section
5.4, first to each holder of Limited Partnership Units, pro rata in accordance with his or her Percentage Interest, in such amount as will cause, to the greatest extent possible, each holder’s Capital Account per Limited Partnership Unit to be
equal to the sum of (a) such holder’s Preferred Return Shortfall per Limited Partnership Unit, and (b) the product of (i) the Value of a REIT Share (with the date of the liquidating distribution being the Valuation Date), and (ii) the
Adjustment Factor; 
 
(2)
Otherwise, first to each such holder whose Limited Partnership Units have all been acquired by the Partnership at any time during that Partnership Year, in such amount as will cause, to the greatest extent possible, each such holder’s Capital
Account to be equal to zero, taking into account the amount paid to such holder by the Partnership to acquire such Limited Partnership Units; and 
 
(3) In each case, thereafter to the General Partner. 
 

28 

 
Section 6.3
Additional Allocation Provisions 
 
Notwithstanding the foregoing provisions of this Article 6: 
 
A. Regulatory Allocations. 
 
(i) Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(f), notwithstanding the provisions of Section 6.2 of the Agreement, or any other provision of this
Article 6, if there is a net decrease in Partnership Minimum Gain during any Partnership Year, each Partner shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to
such Partner’s share of the net decrease in Partnership Minimum Gain, as determined under Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be
allocated to each Partner pursuant thereto. The items to be allocated shall be determined in accordance with Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This Section 6.3(A)(i) is intended to qualify as a “minimum gain chargeback”
within the meaning of Regulation Section 1.704-2(f) which shall be controlling in the event of a conflict between such Regulation and this Section 6.3(A)(i). 
 
(ii) Partner Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(i)(4), and notwithstanding the
provisions of Section 6.2 of the Agreement or any other provision of this Article 6 (except Section 6.3(A)(i)), if there is a net decrease in Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any Partnership Year, each Partner
who has a share of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of Partnership income and gain for such year (and, if
necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease in Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(4). Allocations
pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each General Partner and Limited Partner pursuant thereto. The items to be so allocated shall be determined in accordance with
Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 6.3(A)(ii) is intended to qualify as a “chargeback of partner nonrecourse debt minimum gain” within the meaning of Regulation Section 1.704-2(i) which shall be controlling
in the event of a conflict between such Regulation and this Section 6.3(A)(ii). 
 
(iii) Nonrecourse Deductions and Partner Nonrecourse Deductions. Any Nonrecourse Deductions for any Partnership Year shall be specially allocated to the Partners in accordance with their
Percentage Interests. Any Partner Nonrecourse Deductions for any Partnership Year shall be specially allocated to the Partner(s) who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse
Deductions are attributable, in accordance with Regulations Section 1.704-2(i). 
 
(iv) Qualified Income Offset. If any Partner unexpectedly receives an adjustment, allocation or distribution described in Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of
Partnership income and gain shall be allocated, in accordance with Regulations Section 1.704-1(b)(2)(ii)(d), to the Partner in an amount and manner sufficient to 
 

29 

 
eliminate, to the extent
required by such Regulations, the Adjusted Capital Account Deficit of the Partner as quickly as possible provided that an allocation pursuant to this Section 6.3(A)(iv) shall be made if and only to the extent that such Partner would have an Adjusted
Capital Account Deficit after all other allocations provided in this Article 6 have been tentatively made as if this Section 6.3(A)(iv) were not in the Agreement. It is intended that this Paragraph 6.3(A)(iv) qualify and be construed as a
“qualified income offset” within the meaning of Regulations 1.704-1(b)(2)(ii)(d), which shall be controlling in the event of a conflict between such Regulations and this Paragraph 6.3(A)(iv). 
 
(v) Gross Income Allocation. In the event any Partner
has a deficit Capital Account at the end of any Partnership Year which is in excess of the sum of (1) the amount (if any) such Partner is obligated to restore to the Partnership, and (2) the amount such Partner is deemed to be obligated to restore
pursuant to Regulations Section 1.704-1(b)(2)(ii)(c) or the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Partner shall be specially allocated items of Partnership income and gain in the amount of such
excess as quickly as possible, provided that an allocation pursuant to this Section 6.3(A)(v) shall be made if and only to the extent that such Partner would have a deficit Capital Account in excess of such sum after all other allocations provided
in this Article 6 have been tentatively made as if this Section 6.3(A)(v) and Section 6.3(A)(iv) were not in the Agreement. 
 
(vi) Limitation on Allocation of Net Loss. To the extent any allocation of Net Loss would cause or increase an Adjusted Capital
Account Deficit as to any Partner, such allocation of Net Loss shall be reallocated among the other Partners in accordance with their respective Percentage Interests, subject to the limitations of this Paragraph 6.3(A)(vi). 
 
(vii) Section 754 Adjustment. To the extent an
adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken
into account in determining Capital Accounts as the result of a distribution to a Partner in complete liquidation of his interest in the Partnership, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Partners in accordance with their interests in the Partnership in the event that Regulations
Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Partners to whom such distribution was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies. 
 
(viii) Curative Allocation. The allocations set forth in Sections 6.3.(A)(i), (ii), (iii), (iv), (v),
(vi) and (vii) (the “Regulatory Allocations”) are intended to comply with certain regulatory requirements, including the requirements of Regulations Sections 1.704-1(b) and 1.704-2. Notwithstanding the provisions of Section 6.2, the
Regulatory Allocations shall be taken into account in allocating other items of income, gain, loss and deduction among the Partners so that, to the extent possible, the net amount of such allocations of other items and the Regulatory Allocations to
each Partner shall be equal to the net amount that would have been allocated to each such Partner if the Regulatory Allocations had not occurred. 
 

30 

 
B. For
purposes of determining a Partner’s proportional share of the “excess nonrecourse liabilities” of the Partnership within the meaning of Regulations Section 1.752-3(a)(3), each Partner’s interest in Partnership profits shall be
such Partner’s Percentage Interest. 
 
Section
6.4 Tax Allocations 
 
A. In General.
Except as otherwise provided in this Section 6.4, for income tax purposes each item of income, gain, loss and deduction (collectively, “Tax Items”) shall be allocated among the Partners in the same manner as its correlative item of
“book” income, gain, loss or deduction is allocated pursuant to Section 6.2 and 6.3. 
 
B. Allocations Respecting Section 704(c) Revaluations. Notwithstanding Section 6.4.A, Tax Items with respect to Partnership property that is contributed to the Partnership by a Partner shall be
shared among the Partners for income tax purposes pursuant to Regulations promulgated under Section 704(c) of the Code, so as to take into account the variation, if any, between the basis of the property to the Partnership and its initial Gross
Asset Value. With respect to Partnership property that is initially contributed to the Partnership upon its formation, such variation between basis and initial Gross Asset Value shall be taken into account under the “traditional method” as
described in Proposed Treasury Regulation § 1.704-3(b) and Treasury Regulation Section 1.704-1(c)(2). With respect to properties subsequently contributed to the Partnership, the Partnership shall account for such variation under any method
approved under Section 704(c) of the Code and the applicable regulations as chosen by the General Partner. In the event the Gross Asset Value of any Partnership asset is adjusted pursuant to subparagraph (ii) of the definition of Gross Asset Value
(provided in Article 1 of the Agreement), subsequent allocations of Tax Items with respect to such asset shall take account of the variation, if any, between the adjusted basis of such asset and its Gross Asset Value in the same manner as under Code
Section 704(c) and the applicable regulations consistent with the requirements of Treasury Regulations Section 1.704-1(b)(2)(iv)(g) using any method approved under Section 704(c) of the Code and the applicable regulations as chosen by the General
Partner. 
 
Section 6.5 Allocations Regarding
Transfers, Contributions and Distributions 
 
If any Partnership Interest is transferred during a Partnership Year in compliance with the provisions of Article 11 or transferred pursuant to Section 8.6, Net Income, Net Loss, each item thereof and all other items attributable to
such interest for such Partnership Year shall be divided and allocated between the transferor Partner and the transferee Partner (or Assignee) in any manner reasonably determined by the General Partner to take into account their varying interests
during the Partnership Year in accordance with Section 706(d) of the Code. If new Partnership Units are issued during a Partnership Year, Net Income, Net Loss, each item thereof and all other times of the Partnership for the Partnership Year shall
be divided and allocated between the existing and newly issued Partnership Units in any manner reasonably determined by the General Partner to take into account the Partners’ varying interests during the Partnership Year in accordance with
Section 706(d) of the Code. If a portion of the Partnership Units are redeemed or otherwise acquired by the Partnership during the Partnership Year, Net Income, Net Loss, each item thereof and all other items of the Partnership Units and remaining
Partnership Units in any manner reasonably determined by the General Partner to take into account the 
 

31 

 
Partners’ varying
interests during the Partnership Year in accordance with Section 706(d) of the Code. 
 
ARTICLE 7. 
MANAGEMENT AND OPERATIONS OF BUSINESS 
 
Section 7.1 Management 
 
A. Except as otherwise expressly provided in this Agreement,
all management powers over the business and affairs of the Partnership are exclusively vested in the General Partner, and no Limited Partner shall have any right to participate in or exercise control or management power over the business and affairs
of the Partnership. The General Partner may not be removed by the Limited Partners with or without cause. In addition to the powers now or hereafter granted a general partner of a limited partnership under the Act or which are granted to the General
Partner under any other provision of this Agreement, the General Partner, subject to the other provisions hereof, shall have full power and authority to do all things deemed necessary or desirable by it to conduct the business of the Partnership, to
exercise all powers set forth in Section 3.2 hereof and to effectuate the purposes set forth in Section 3.1 hereof, including, without limitation: 
 
(1) the making of any expenditures, the lending of money, borrowing of money (including, without limitation, making
prepayments on loans and borrowing money to permit the Partnership to make distributions to its Partners in such amounts as will permit Parent (so long as Parent has determined to qualify as a REIT) to avoid the payment of any federal income tax
(including, for this purpose, any excise tax pursuant to Section 4981 of the Code), and as will permit Parent to make distributions to its stockholders sufficient to permit Parent to maintain REIT status), the assumption or guarantee of, or other
contracting for, indebtedness and other liabilities, the issuance of evidences of indebtedness (including the securing of same by mortgage, deed of trust or other lien or encumbrance on the Partnership’s assets) and the incurring of any
obligations it deems necessary for the conduct of the activities of the Partnership; provided, that all such borrowing, incurrence of Debt and prepayments shall be subject to the limitations set forth in Section 4.2; 
 
(2) the making of tax, regulatory and other
filings, or rendering of periodic or other reports to governmental or other agencies having jurisdiction over the business or assets of the Partnership; 
 
(3) the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation or exchange of any assets of the
Partnership or the merger or other combination of the Partnership with or into another entity; provided that as long as Parent has determined to continue to qualify as a REIT, the General Partner may not engage in any such acquisition,
disposition, mortgage, pledge, encumbrance, hypothecation or exchange that would cause Parent to fail to qualify as a REIT; 
 
(4) the mortgage, pledge, encumbrance or hypothecation of any assets of the Partnership, and the use of the assets of the
Partnership (including, without 
 

32 

 
limitation,
cash on hand) for any purpose consistent with the terms of this Agreement and on any terms it sees fit, including, without limitation, the financing of the conduct of the operations of the General Partner, the lending of funds to other Persons and
the repayment of obligations of the Partnership and any other Person in which it has an equity investment; 
 
(5) the negotiation, execution and performance of any contracts, leases, deeds, conveyances or other instruments that the
General Partner considers useful or necessary to the conduct of the Partnership’s operations or the implementation of the General Partner’s powers under this Agreement; 
 
(6) the distribution of Partnership cash or other Partnership assets in accordance with this
Agreement; 
 
(7) the selection
and dismissal of any employees of the Partnership (including, without limitation, employees having titles such as “president,” “vice president,” “secretary” and “treasurer”), and agents, outside attorneys,
accountants, consultants and contractors of the Partnership and the determination of their compensation and other terms of employment or hiring; 
 
(8) the selection and employment of third parties to perform services for and on behalf of the Partnership, including,
but not limited to management, leasing and development services, and the General Partner may require that such third party service providers bill the Partnership directly for payment or reimbursement for such services; 
 
(9) the maintenance of such insurance for
the benefit of the Partnership and the Partners as it deems necessary or appropriate; 
 
(10) the formation of, or acquisition of an interest in, and the contribution of property to, any further limited or
general partnerships, joint ventures or other relationships that it deems desirable (including, without limitation, the acquisition of interests in, and the contributions of property to, any Person in which it has an equity investment from time to
time); provided that as long as Parent has determined to continue to qualify as a REIT, the General Partner may not engage in any such formation, acquisition or contribution that would cause Parent to fail to qualify as a REIT; 
 
(11) the control of any matters affecting
the rights and obligations of the Partnership, including the conduct of litigation and the incurring of legal expense and the settlement of claims and litigation, and the indemnification of any Person against liabilities and contingencies to the
extent permitted by law; 
 
(12)
the undertaking of any action in connection with the Partnership’s direct or indirect investment in any Person (including, without limitation, the contribution or loan of funds by the Partnership to such Persons); 
 
(13) the determination of the fair market
value of any Partnership property distributed in kind using such reasonable method of valuation as it may adopt, 
 

33 

 
provided that
such methods are otherwise consistent with industry standards and the requirements of this Agreement; and 
 
(14) the enforcement of any rights against any Partner pursuant to representations, warranties, covenants and indemnities
relating to such Partner’s contribution of property or assets to the Partnership. 
 
B. Each of the Limited Partners agrees that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements and transactions on behalf of the Partnership without any
further act, approval or vote of the Partners, notwithstanding any other provisions of this Agreement (except as provided in Section 7.3), the Act or any applicable law, rule or regulation. The execution, delivery or performance by the General
Partner or the Partnership of any agreement authorized or permitted under this Agreement shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or the Limited Partners or any other Persons
under this Agreement or of any duty stated or implied by law or equity. 
 
C. At all times from and after the date hereof, the General Partner may cause the Partnership to obtain and maintain (i) casualty, liability and other insurance on the properties of the Partnership and (ii) liability
insurance for the Indemnities hereunder. 
 
D. At
all times from and after the date hereof, the General Partner may cause the Partnership to establish and maintain working capital reserves in such amounts as the General Partner, in it sole and absolute discretion, deems appropriate and reasonable
from time to time. 
 
E. In exercising its
authority under this Agreement, the General Partner may, but shall be under no obligation to, take into account the tax consequences to any Partner (including the General Partner) of any action taken by it. The General Partner and the Partnership
shall not have liability to a Partner under any circumstances as a result of an income tax liability incurred by such Partner as a result of an action (or inaction) by the General Partner pursuant to its authority under this Agreement. 
 
Section 7.2 Certificate of Limited Partnership

 
To the extent that such action is determined by
the General Partner to be reasonable and necessary or appropriate, the General Partner shall file amendments to and restatements of the Certificate and do all the things to maintain the Partnership as a limited partnership (or a partnership in which
the limited partners have limited liability) under the laws of the State of California and each other state, the District of Columbia or any other jurisdiction, in which the Partnership may elect to do business or own property. Subject to the terms
of Section 8.5.A(4) hereof, the General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate or any amendment thereto to any Limited Partner. The General Partner shall use all reasonable efforts to
cause to be filed such other certificates or documents as may be reasonable and necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership in which the limited partners limited
liability) in the State of California any other state, or the District of Columbia, in which the Partnership may elect to do business or own property. 
 

34 

 
Section 7.3
Restrictions on General Partner’s Authority 
 
A. The General Partner may not take any action in contravention of this Agreement, including, without limitation: 
 
(1) take any action that would make it impossible to carry on the ordinary business of the Partnership, except as
otherwise provided in this Agreement; 
 
(2) possess Partnership property, or assign any rights in specific Partnership property, for other than a Partnership purpose except as otherwise provided in this Agreement; 
 
(3) admit a Person as a Partner, except as
otherwise provided in this Agreement; 
 
(4) perform any act that would subject a Limited Partner to liability as a general partner in any jurisdiction or any other liability except as provided herein or under the Act; or 
 
(5) enter into any contract, mortgage, loan
or other agreement that prohibits or restricts, or has the effect of prohibiting, the ability of a Limited Partner to exercise its rights set forth herein to effect an Exchange in full, except with the written consent of such Limited Partner.

 
B. The General Partner shall not, without the
prior Consent of the Limited Partners, undertake, on behalf of the Partnership, any of the following actions or enter into any transaction which would have the effect of such transactions: 
 
(1) Except as provided in Section 7.3.C., amend, modify or terminate this Agreement other
than to reflect the admission, substitution, termination or withdrawal of Partners pursuant to Article 11 or Article 12 hereof; 
 
(2) Make a general assignment for the benefit of creditors or appoint or acquiesce in the appointment of a custodian,
receiver or trustee for all or any part of the assets of the Partnership; 
 
(3) Institute any proceeding for bankruptcy on behalf of the Partnership; 
 
(4) Approve or acquiesce to the transfer of the Partnership Interest of the General Partner, or admit into the
Partnership any additional or substitute General Partners; or 
 
(5) Cause the Partnership to loan money to the General Partner or any of its Affiliates at an interest rate below the Prime Rate or in an aggregate outstanding principal amount that, when taken
together with all such loans to the General Partner and any of its Affiliates, exceeds Twenty Million Dollars ($20,000,000). 
 

35 

 
C.
Notwithstanding Section 7.3.B, the General Partner shall have the power, without the Consent of the Limited Partners, to amend this Agreement as may be required to facilitate or implement any of the following purposes: 
 
(1) to add to the obligations of the General
Partner or surrender any right or power granted to the General Partner or any Affiliate of the General Partner for the benefit of the Limited Partners; 
 
(2) to reflect the issuance of additional Partnership Interests pursuant to Section 4.3, to reflect the admission,
substitution, termination, or withdrawal of Partners in accordance with this Agreement and to amend Exhibit A in connection therewith, and to reflect the reduction, exchange or redemption of Partnership Units outstanding pursuant to Section 5.6,
Section 8.6 or Section 11.6 hereof and as otherwise permitted by this Agreement; 
 
(3) to reflect a change that is of an inconsequential nature and does not adversely affect the Limited Partners in any
material respect, or to cure any ambiguity, correct or supplement any provision in this Agreement not inconsistent with law or with other provisions, or make other changes with respect to matters arising under this Agreement that will not be
inconsistent with law or with the provisions of this Agreement; 
 
(4) to satisfy any requirements, conditions, or guidelines contained in any order, directive, opinion, ruling or regulation of a federal or state agency or contained in federal or state law;

 
(5) to reflect such changes as
are reasonably necessary for Parent to maintain status as a REIT; and 
 
(6) to modify the manner in which Capital Accounts are computed but only to the extent set forth in the definition of “Capital Account.” 
 
The General Partner will provide notice to the Limited Partners when any
action under this Section 7.3.C is taken. 
 
D.
Notwithstanding Section 7.3.B and 7.3.C hereof, this Agreement shall not be amended, and no action may be taken by the General Partner, without the Consent of each Partner adversely affected if such amendment or action would (i) convert a Limited
Partner’s interest in the Partnership into a general partner’s interest (except as the result of the General Partner acquiring such interest), (ii) modify the limited liability of a Limited Partner, (iii) alter rights of the Partner to
receive distributions pursuant to Article 5, or the allocations specified in Article 6 (except as permitted pursuant to Section 7.3.C), (iv) alter or modify the right of Exchange or REIT Shares Amount as set forth in Section 8.6, and related
definitions thereof, (v) cause the termination of the Partnership prior to the time set forth in Sections 2.5 or 13.1, or (vi) amend this Section 7.3.D. Further, no amendment may alter the restrictions on the General Partner’s authority set
forth elsewhere in this Section 7.3 without the Consent specified in such section. Any such amendment or action consented to by any Limited Partner shall be effective 
 

36 

 
as to that Limited Partner,
notwithstanding the absence of such consent by any other Limited Partner. 
 
E. At any time that the Partnership Interests of all of the Limited Partners of the Partnership equal, in the aggregate, not less than ten percent (10%), the General Partner shall not, without the prior Consent of the
Limited Partners, undertake, on behalf of the Partnership, any of the following actions: 
 
(1) Dissolve the Partnership. 
 
(2) Agree to or consummate any merger, consolidation, reorganization or other business combination to which the
Partnership is a party, in each case resulting in the disposition by the then Limited Partners and Assignees of all outstanding Limited Partnership Units in consideration for (a) cash, (b) debt instruments or other evidences of indebtedness, (c)
other securities issued by a corporation, partnership or other entity, other than (i) Parent, (ii) the General Partner, (iii) the Partnership or (iv) any entity at least 80% of the total assets of which (on the basis of market value) are comprised
of assets which, immediately prior to such transaction, were assets of the Partnership, or (d) any combination of the consideration described in (a), (b) and/or (c) above. 
 
(3) Sell or otherwise transfer all or substantially all of the assets of the Partnership.

 
Section 7.4 Reimbursement of the General
Partner 
 
A. Except as provided in this
Section 7.4 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions, payments and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general
partner of the Partnership. 
 
B. The General
Partner shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole and absolute discretion, for all expenses it incurs relating to the ownership of interests in and operation of, or for the benefit
of, the Partnership. Such reimbursements shall be in addition to any reimbursement of the General Partner as a result of indemnification pursuant to Section 7.7 hereof. 
 
C. It is the intent of the Partners that any amounts paid by the Partnership to the General Partner pursuant
to this Section 7.4 shall be treated as a “guaranteed payment” within the meaning of Section 707(c) of the Code. 
 
Section 7.5 Other Business of General Partner 
 
The General Partner shall devote to the Partnership such time as may be necessary for the performance of its
duties as General Partner, but the General Partner is not required, and is not expected, to devote its full time to the performance of such duties. The General Partner may engage independently or with others in other business ventures of every
nature and description, including, without limitation, the ownership of other properties and the making or management of other investments. Nothing in this Agreement shall be deemed to prohibit the 
 

37 

 
General Partner or any
Affiliate of the General Partner from dealing, or otherwise engaging in business with, Persons transacting business with the Partnership, or from providing services related to the purchase, sale, financing, management, development or operation of
real or personal property and receiving compensation therefor, not involving any rebate or reciprocal arrangement that would have the effect of circumventing any restriction set forth herein upon dealings with the General Partner or any Affiliate of
the General Partner. Neither the Partnership nor any Partner shall have any right by virtue of this Agreement or the relationship created hereby in or to such other ventures or activities or to the income or proceeds derived therefrom, and the
pursuit of such ventures, even if competitive with the business of the Partnership, shall not be deemed wrongful or improper. 
 
Section 7.6 Contracts with Affiliates 
 
A. Subject to Section 7.6.B below, the Partnership may lend or contribute to Persons in which it has an equity investment, and such
Persons may borrow funds from the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing authority shall not create any right or benefit in favor of any Person. 
 
B. The Partnership may transfer assets to joint ventures,
other partnerships, corporations or other business entities in which it is or thereby becomes a participant upon such terms and subject to such conditions consistent with this Agreement and applicable law. 
 
C. Except as restricted by Section 7.3.B(5), the General
Partner or any of its Affiliates, directly or indirectly, shall be permitted to lend funds to the Partnership. In addition, the General Partner or any of its Affiliates, directly or indirectly, shall be permitted to sell, transfer or convey any
property to, or purchase any property from, or borrow funds from, or engage in any other transaction with the Partnership, but only upon terms determined by the General Partner in good faith to be fair and reasonable and comparable to terms that
could be obtained from an unaffiliated party in an arm’s length transaction, except as otherwise expressly permitted by this Agreement; provided, however, that notwithstanding the foregoing, the General Partner shall at all times
be entitled to cause the Partnership to mortgage, pledge, encumber or hypothecate the Properties, any property owned by a Subsidiary of the Partnership or any portion thereof as security for the Debt of the General Partner or any of its Affiliates
so long as a pro rata portion of the net proceeds of any such Debt of the General Partner or any of its Affiliates (based on the relative value of (i) Partnership Properties mortgaged, pledged, encumbered or hypothecated as security for such Debt to
(ii) the value of all properties mortgaged, pledged, encumbered or hypothecated as security for such Debt) is paid over to the Partnership. 
 
D. The General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, such conflict avoidance
agreements with various Affiliates of the Partnership and the General Partner, on such terms as the General Partner, in its sole and absolute discretion, believes are advisable. 
 

38 

 
Section 7.7
Indemnification 
 
A. The Partnership shall
indemnify each Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and all claims, demands,
actions, suits or proceedings, civil, criminal, administrative or investigative, that relate to the operations of the Partnership as set forth in this Agreement in which any Indemnitee may be involved, or is threatened to be involved, as a party or
otherwise, unless it is established that: (i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding and either was committed in bad faith or was the result of active and deliberate dishonesty; (ii) the
Indemnitee actually received an improper personal benefit in money, property or services; or (iii) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. The termination of any
proceeding by judgment, order or settlement does not create a presumption that the Indemnitee did not meet the requisite standard of conduct set forth in this Section 7.7.A. The termination of any proceeding by conviction or upon a plea of nolo
contendere or its equivalent, or any entry of an order of probation prior to judgment, creates a rebuttable presumption that the Indemnitee acted in a manner contrary to that specified in this Section 7.7.A. Any indemnification pursuant to this
Section 7.7 shall be made only out of the assets of the Partnership. Notwithstanding the foregoing provisions, Parent and the General Partner shall be entitled to reimbursement by the Partnership for any amounts paid by either of them in
satisfaction of indemnification obligations owed by either of them to present or former directors of the General Partner or its predecessors, as provided for in or pursuant to the Charter or the charter and bylaws of the General Partner.

 
B. Reasonable expenses incurred by an Indemnitee
who is a party to a proceeding may be paid or reimbursed by the Partnership in advance of the final disposition of the proceeding upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee’s good faith
belief that the standard of conduct necessary for indemnification by the Partnership as authorized in this Section 7.7 has been met, and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall ultimately be
determined that the standard of conduct has not been met. 
 
C. The indemnification provided by this Section 7.7 shall be in addition to any other rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or
otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity. 
 
D. The Partnership may purchase and maintain insurance, on behalf of the Indemnities and such other Persons as the General Partner shall determine, against any liability that may be asserted against or
expenses that may be incurred by such Person in connection with the Partnership’s activities, regardless of whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement.

 
E. For purposes of this Section 7.7, the
Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by it of its duties to the Partnership also imposes duties on, or otherwise involves services by, it to the plan
or participates or beneficiaries of the plan; excise taxes assessed on an 
 

39 

 
Indemnitee with respect to an
employee benefit plan pursuant to applicable law shall constitute fines within the meaning of Section 7.7.A; and actions taken or omitted by the Indemnitee with respect to an employee benefit plan in the performance of its duties for a purpose
reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best interests of the Partnership. 
 
F. In no event may an Indemnitee subject the Limited Partners
to personal liability by reason of the indemnification provisions set forth in this Agreement. 
 
G. An Indemnitee shall not be denied indemnification in whole or in part under this Section 7.7 because the Indemnitee had an interest in the transaction with respect to which the indemnification
applies if the transaction was otherwise permitted by the terms of this Agreement. 
 
H. The provisions of this Section 7.7 are for the benefit of the Indemnities, their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any
other Persons. 
 
I. It is the intent of the
Partners that any amounts paid by the Partnership to the General Partner pursuant to this Section 7.7 shall be treated as a “guaranteed payment” within the meaning of Section 707(c) of the Code. 
 
Section 7.8 Liability of the General Partner

 
A. Notwithstanding anything to the contrary set
forth in this Agreement, neither Parent nor the General Partner shall be liable or accountable in damages or otherwise to the Partnership, any Partners or any Assignees for losses sustained, liabilities incurred or benefits not derived as a result
of errors in judgment or mistakes of fact or law or of any act or omission if Parent or the General Partner, as applicable, acted in good faith. 
 
B. The Limited Partners expressly acknowledge that the General Partner is acting for the benefit of the Partnership, the Limited Partners,
Parent and Parent’s stockholders collectively, that the General Partner is under no obligation to give priority to the separate interests of the Limited Partners or Parent or Parent’s stockholders (including, without limitation, the tax
consequences to any of them) in deciding whether to cause the Partnership to take (or decline to take) any actions. 
 
C. Subject to its obligations and duties as General Partner set forth in Section 7.1.A hereof, the General Partner may exercise any of the
powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agents. The General Partner shall not be responsible for any misconduct or negligence on the part of any such agent
appointed by it in good faith. 
 
D. Any amendment,
modification or repeal of this Section 7.8 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the General Partner’s liability to the Partnership and the Limited Partners under this Section 7.8
as in effect immediately prior to such amendment, modification or repeal with respect to claims 
 

40 

arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification
or repeal, regardless of when such claims may arise or be asserted. 
 
E. Notwithstanding anything herein to the contrary, except for fraud, willful misconduct and gross negligence, or pursuant to any express indemnities given to the Partnership by any Partner pursuant to any other written
instrument, no Partner shall have any personal liability whatsoever, to the Partnership or to the other Partners, for the debts or liabilities of the Partnership or its obligations hereunder, and the full recourse of the other Partners shall be
limited to the interest of such Partners in the Partnership. To the fullest extent permitted by law, no officer, director or stockholder of the General Partner shall be liable to the Partnership for money damages except for (i) active and deliberate
dishonesty established by a final judgment or (ii) actual receipt of an improper benefit or profit in money, property or services. Without limitation of the foregoing, and except for fraud, willful misconduct and gross negligence, or pursuant to any
such express indemnity, no property or assets of any Partners, other than its interest in the Partnership, shall be subject to levy, execution or other enforcement procedures for the satisfaction of any judgment (or other judicial process) in favor
of any other Partner(s) and arising out of, or in connection with, this Agreement. This Agreement is executed by the officers of the General Partner solely as officers of the same and not in their own individual capacities. 
 
Section 7.9 Other Matters Concerning the General
Partner 
 
A. The General Partner may rely and
shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties. 
 
B. The General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment bankers and other consultants and advisers selected by it, and any act taken or omitted to be taken in reliance upon
the opinion of such Persons as to matters which such General Partner reasonably believes to be within such Person’s professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance
with such opinion. 
 
C. The General Partner shall
have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly authorized officers and a duly appointed attorney or attorneys-in-fact. Each such attorney shall, to the extent provided by the General Partner
in the power of attorney, have full power and authority to do and perform all and every act and duty which is permitted or required to be done by the General Partner hereunder. 
 
D. Notwithstanding any other provisions of this Agreement or the Act, any action of the General Partner on
behalf of the Partnership or any decision of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of
Parent to continue to qualify as a REIT or (ii) to avoid Parent incurring any taxes under Section 857 or Section 4981 of the Code, is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners. 
 

41 

 
Section 7.10
Title to Partnership Assets 
 
Title to
Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an entity, and no Partners, individually or collectively, shall have any ownership interest in such Partnership
assets or any portion thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees, as the General Partner may determine, including Affiliates of the General Partner.
The General Partner hereby declares and warrants that any Partnership assets for which legal title is held in the name of the General Partner or any nominee or Affiliate of the General Partner shall be held by the General Partner for the use and
benefit of the Partnership in accordance with the provisions of this Agreement; provided, however, that the General Partner shall use its best efforts to cause beneficial and record title to such assets to be vested in the Partnership
as soon as reasonably practicable. All Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective of the name in which legal title to such Partnership assets is held. 
 
Section 7.11 Reliance by Third Parties 
 
Notwithstanding anything to the contrary in this Agreement,
any Person dealing with the Partnership shall be entitled to assume that the General Partner has full power and authority to encumber, sell or otherwise use in any manner any and all assets of the Partnership and to enter into any contracts on
behalf of the Partnership, and such Person shall be entitled to deal with the General Partner as if it were the Partnership’s sole party in interest, both legally and beneficially. Each Limited Partner hereby waives any and all defenses or
other remedies which may be available against such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing. In no event shall any Person dealing with the General Partner or its representatives be
obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the General Partner or its representatives. Each and every certificate, document or other
instrument executed on behalf of the Partnership by the General Partner or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (i) at the time of the execution and delivery of
such certificate, document or instrument, this Agreement was in full force and effect, (ii) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Partnership
and (iii) such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership. 
 
ARTICLE 8. 
RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS 
 
Section 8.1 Limitation of Liability 
 
The Limited Partners shall have no liability under this Agreement except as expressly provided in this Agreement or under the Act.

 

42 

 
Section 8.2
Management of Business 
 
No Limited Partner
or Assignee (other than the General Partner, any of its Affiliates or any officer, director, employee, partner, agent or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such) shall take part in the
operations, management or control (within the meaning of the Act) of the Partnership’s business, transact any business in the Partnership’s name or have the power to sign documents for or otherwise bind the Partnership. The transaction of
any such business by the General Partner, any of its Affiliates or any officer, director, employee, partner, agent, representative, or trustee of the General Partner, the Partnership or any of their Affiliates, in their capacity as such, shall not
affect, impair or eliminate the limitations on the liability of the Limited Partners or Assignees under this Agreement. 
 
Section 8.3 Outside Activities of Limited Partners 
 
Subject to any agreements entered into by a Limited Partner or its Affiliates with the General Partner, the
Partnership or a Subsidiary, any Limited Partner and any officer, director, employee, agent, trustee, Affiliate or stockholder of any Limited Partner shall be entitled to and may have business interests and engage in business activities in addition
to those relating to the Partnership, including business interests and activities in direct competition with the Partnership. Neither the Partnership nor any Partners shall have any rights by virtue of this Agreement in any business ventures of any
Limited Partner or Assignee. Subject to such agreements, none of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement or the partnership relationship established hereby in any business ventures of any other
Person, (other than the General Partner, to the extent expressly provided herein), and such Person shall have no obligation pursuant to this Agreement to offer any interest in any such business ventures to the Partnership, any Limited Partner or any
such other Person, even if such opportunity is of a character which, if presented to the Partnership, any Limited Partner or such other Person, could be taken by such Person. 
 
Section 8.4 Return of Capital 
 
Except pursuant to the rights of Exchange set forth in Section 8.6, no Limited Partner shall be entitled to
the withdrawal or return of his Capital Contribution, except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein. Except to the extent provided in Article 5, Article 6 and Article
13, no Partner or Assignee shall have priority over any other Partner or Assignee either as to the return of Capital Contributions or, except to the extent otherwise expressly provided in this Agreement, as to profits, losses, distributions or
credits. 
 
Section 8.5 Rights of Limited
Partners Relating to the Partnership 
 
A. In
addition to other rights provided by this Agreement or by the Act, and except as limited by Section 8.5.D hereof, each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner’s interest as a limited
partner in the Partnership, upon written demand with a statement of the purpose of such demand and at such Limited Partner’s own expense: 
 

43 

(1) to obtain a copy of the most recent annual and quarterly reports filed
with the Securities and Exchange Commission by Parent pursuant to the Exchange Act and each report sent to the stockholders of Parent; 
 
(2) to obtain a copy of the Partnership’s federal, state and local income tax returns for each Partnership Year;

 
(3) to obtain a current list of
the name and last known business, residence or mailing address of each Partner; 
 
(4) to obtain a copy of this Agreement and the Certificate and all amendments thereto, together with executed copies of all powers of attorney pursuant to which this Agreement, the Certificate and all
amendments thereto have been executed; and 
 
(5) to obtain true and full information regarding the amount of cash and a description and statement of any other property or services contributed by each Partner and which each Partner has agreed to contribute in the future, and the
date on which each became a Partner. 
 
B. The
Partnership shall keep at its principal business office a current list of the full name and last known business or residence address of each Limited Partner, together with the contribution and Percentage Interest of each Limited Partner. Each
Limited Partner shall have the right to inspect and copy such list at the expense of such Limited Partner. 
 
C. The Partnership shall notify each Limited Partner in writing of any change to the Adjustment Factor or the REIT Shares Amount within 10
Business Days of the date such change becomes effective. Upon the request of a Limited Partner, the Partnership shall provide such Limited Partner a calculation showing the determination of Available Cash for any Payment Quarter for which there is a
Preferred Return Shortfall. 
 
D. Notwithstanding
any other provision of this Section 8.5, the General Partner may keep confidential from the Limited Partners, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information that (i)
the General Partner believes to be in the nature of trade secrets or other information the disclosure of which the General Partner in good faith believes is not in the best interests of the Partnership, the General Partner or Parent or (ii) the
Partnership, the General Partner or Parent is required by law or by agreements with unaffiliated third parties to keep confidential. 
 
Section 8.6 Exchange Rights 
 
A. Each Limited Partner and each Substituted Limited Partner shall have the right (subject to the terms and conditions set forth herein)
to require the General Partner to acquire all or a portion of the Partnership Units held by such Limited Partner (such Partnership Units being hereafter “Tendered Units”) in exchange (an “Exchange”) for, at the election of and in
the sole and absolute discretion of the General Partner, either the Cash Amount or a number of REIT Shares equal to the REIT Shares Amount payable on the Specified Exchange Date. Any Exchange shall be exercised pursuant to a Notice of Exchange
delivered to the General Partner 
 

44 

by the Limited Partner or Substituted Limited Partner who is exercising such right (the “Tendering
Partner”). 
 
B. A Tendering Partner effecting
an Exchange shall have the right to receive, on the Specified Exchange Date, at the election of and in the sole and absolute discretion of the General Partner, either the Cash Amount as of the Valuation Date or such number of REIT Shares equal to
the REIT Shares Amount as of the Valuation Date with respect to the Tendered Units, subject to the limitations on ownership and transfer of REIT Shares set forth in the Charter. If a Cash Amount is to be delivered upon the Exchange, the Cash Amount
shall be delivered as a certified check payable to the Tendering Partner or, in the General Partner’s sole and absolute discretion, in immediately available funds. If REIT Shares are to be delivered upon the Exchange, the REIT Shares Amount
shall be delivered as duly authorized, validly issued, fully paid and nonassessable REIT Shares and, if applicable, rights, free of any pledge, lien, encumbrance or restriction, other than those provided in the Charter, the Bylaws of Parent, the
Securities Act, relevant state securities or blue sky laws and any applicable registration rights agreement with respect to such REIT Shares entered into by the Tendering Partner. If REIT Shares are to be delivered upon the Exchange, notwithstanding
any delay in such delivery of REIT Shares (but subject to Section 8.6.C), the Tendering Partner shall be deemed the owner of such REIT Shares and rights for all purposes, including without limitation, rights to vote or consent, receive dividends,
and exercise rights, as of the Specified Exchange Date. 
 
C. Notwithstanding the provisions of Section 8.6.A and 8.6.B or any other provision of this Agreement, a Limited Partner (i) shall not be entitled to effect an Exchange to the extent the Tendered Units are Excess Partnership Units
and (ii) shall have no rights under this Agreement to acquire REIT Shares which would otherwise be prohibited under the Charter. To the extent any attempted Exchange would be in violation of this Section 8.6.C., it shall be null and void ab
initio and such Limited Partner shall not acquire any rights or economic interest in the REIT Shares otherwise issuable upon such Exchange. 
 
D. Notwithstanding anything herein to the contrary (but subject to Section 8.6.C), with respect to any Exchange pursuant to this Section
8.6: 
 
(1) All Limited Partnership
Units acquired by the General Partner pursuant thereto shall automatically, and without further action required, be converted into and deemed to be General Partnership Units. 
 
(2) Each Limited Partner may not effect an Exchange for less than 500 Limited Partnership
Units or, if the Limited Partner holds less than 500 Limited Partnership Units, all of the Limited Partnership Units held by such Limited Partner. 
 
(3) Limited Partners who are Immediate Family members of Alexander Haagen, Sr. or Seymour Kreshek may effect an Exchange
only once in each three-month period. 
 
(4) The consummation of any Exchange shall be subject to the expiration or termination of the applicable waiting period, if any, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 

45 

 
(5) Each Tendering Partner shall continue to own all Limited Partnership Units subject to any Exchange, and be treated as a Limited Partner with respect to such Limited Partnership Units for all purposes of this Agreement, until such
Limited Partnership Units are transferred to the General Partner and paid for on the Specified Exchange Date. Until a Specified Exchange Date, the Tendering Partner shall have no rights as a stockholder of Parent. 
 
E. Notwithstanding anything herein to the contrary (but
subject to Section 8.6.C), Limited Partners shall have the right solely upon any sale, exchange, disposition or other transfer of any Property by the Partnership, to effect an Exchange for up to the amount of registered REIT Shares which, when sold
by the holders thereof, or such Cash Amount that, would equal or exceed the total liability of each Tendering Partner for federal, state and local income and franchise taxes and other taxes resulting from (i) such sale, exchange, disposition or
other transfer of such Property and (ii) the exchange of the Tendered Units for REIT Shares or the Cash Amount. 
 
Section 8.7 Limited Partner Redemption Rights. 
 
A. In lieu of exercising Exchange rights pursuant to Section 8.6, but subject to the conditions described in
this Section 8.7, a Contributor Group shall have the right, upon delivery of a Target Property Notice to the General Partner, to require the Partnership to acquire all, but not less than all, of their Contributor Group Limited Partnership Units in
exchange for all of the outstanding membership interests in one or more Target Property LLCs (a “Limited Partner Redemption Right”); provided, however, that in no event will the General Partner or the Partnership be required to
effect the exercise of a Limited Partner Redemption Right more than twice in any twelve (12) month period or respond to more than three (3) Target Property Notices in any twelve (12) month period nor shall any Contributor Group be entitled to
exercise a Limited Partner Redemption Right if the Cash Amount with respect to such Contributor Group’s Contributor Group Limited Partnership Units is less than Five Hundred Thousand Dollars ($500,000). 
 
B. Within twenty (20) days following its receipt of a Target
Property Notice, the General Partner shall review, at the cost of the Tendering Contributor Group, and shall approve or disapprove of the Target Property Deliverables identified therein or delivered in connection therewith, in its sole but
reasonable discretion. In the event the General Partner has not provided notice of its approval or disapproval of such Target Property Deliverables within such twenty (20) day period, the General Partner shall be deemed to have approved of the
Target Property Deliverables. In the event the General Partner has disapproved of a Target Property Deliverable, the Contributor Group shall have the right to revise the Target Property Deliverable and to resubmit the same to the General Partner for
its approval. Upon such resubmission, the General Partner shall approve or disapprove of the resubmitted Target Property Deliverable in its sole but reasonable discretion within five (5) Business Days (and if it has not provided such approval or
disapproval within such five (5) Business Day period, shall be deemed to have approved of such Target Property Deliverable). In the event the General Partner disapproves of such resubmitted Target Property Deliverable, the Limited Partner Redemption
Right shall be cancelled and the Target Property shall no longer be eligible as a Target Property hereunder. 
 

46 

 
C. Effective
on the Target Property Redemption Date, and provided that each of the Target Property Redemption Conditions have been satisfied, the General Partner will cause the Partnership to effect the following transactions in the following order:

 
(1) provide cash to the Target
Property LLCs in an aggregate amount equal to the Cash Amount with respect to the Tendering Contributor Group’s Contributor Group Limited Partnership Units, such cash to be allocated among the Target Property LLCs as directed by the Tendering
Contributor Group in a written notice delivered to the General Partner at least three (3) days in advance of the Target Property Redemption Date; 
 
(2) consummate the purchase of each Target Property by the applicable Target Property LLC pursuant to the Target Property
Purchase Documents; 
 
(3)
transfer and convey to the General Partner or its designee the General Partner Distribution Property in redemption of a number of General Partnership Units (rounded down to the nearest whole unit) determined by dividing the Agreed Value by the Value
of a REIT Share on the Valuation Date (whether or not the General Partner returns the certificates evidencing such General Partnership Units); 
 
(4) transfer, without representation or warranty of any kind by Parent, the General Partner, the Partnership or any of
their Affiliates, all of the outstanding membership interests in each Target Property LLC pursuant to an assignment of membership interests in form and substance reasonably satisfactory to the General Partner. Such transfer shall be made to the
members of the Tendering Contributor Group as directed by the Tendering Contributor Group in a notice delivered to the General Partner at least three (3) days prior to the Target Property Redemption Date; 
 
(5) in exchange for the transfer of
membership interests described in subclause (4) above, redeem the Contributor Group Limited Partnership Units and cancel the same (whether or not the Limited Partners return the certificates evidencing such Limited Partnership Units) on the books
and records of the Partnership. 
 
D. The closing
of the various transactions in connection with the exercise of a Limited Partner Redemption Right shall take place on the Target Property Redemption Date and shall be held at the offices of the General Partner’s legal counsel, or at such other
location as the General Partner and the Tendering Contributor Group may agree upon or, if required by the General Partner, through an escrow or sub-escrow with a national title insurance or escrow company selected by the General Partner. In the
event that such closing is to take place through an escrow or sub-escrow, the General Partner, the Partnership and the Tendering Contributor Group shall mutually execute and deliver to the escrow holder, joint escrow and/or recording instructions
consistent with the provisions of this Section 8.7 on or prior to the Target Property Redemption Date. All costs or fees imposed by such escrow holder in connection with any such escrow or sub-escrow shall be borne solely by the Tendering
Contributor Group. 
 
E. Each Partner acknowledges
and agrees that the exercise and consummation of a Limited Partner Redemption Right is intended to qualify as a full redemption 
 

47 

of the Limited Partnership Interests that are held by each member of the Tendering Contributor Group and
each Partner shall for Federal income tax purposes, report any such transaction in a manner consistent therewith. 
 
F. Notwithstanding anything to the contrary set forth in this Section 8.7, in connection with the consummation of any Limited Partner
Redemption Right the following shall apply: 
 
(i) Neither Parent, the General Partner, the Partnership nor any of their Affiliates shall have any obligation to fund or provide all or any portion of the applicable Cash Amount (1) in advance of the Target Property Redemption Date,
or (2) if the steps described in Section 8.7.C above will not, or are determined by the General Partner to be not likely to, occur substantially contemporaneously but in the exact order specified above. 
 
(ii) the transactions to be consummated in
connection with the exercise of a Limited Partnership Redemption Right shall be such that (1) the steps described in Section 8.7.C shall occur substantially contemporaneously, but in the exact order specified above, (2) all such steps shall occur
before the Target Property Redemption Deadline, and (3) neither Parent, the General Partner, the Partnership nor any of their Affiliates shall be liable in any manner whatsoever for any representations, warranties, indemnities or other obligations
under the Target Property Purchase Documents or any other matter related to the Target Property. 
 
(iii) The Tendering Contributor Group shall be solely responsible to obtain and deliver all Target Property Deliverables
and to satisfy all Target Property Redemption Conditions, including negotiating all Target Property Purchase Documents, obtaining all consents, coordinating all due diligence (including third party reports), at the Tendering Contributor Group’s
sole cost and expense. The General Partner agrees, however, to cooperate reasonably with any Tendering Contributor Group in connection with the satisfaction of any Target Property Redemption so long as such cooperation does not require Parent,
General Partner, the Partnership or any Affiliate of any of them to incur any out-of-pocket costs or otherwise devote substantial (as determined by the General Partner) time or effort of any officer or other employee of any of them. 
 
(iv) In making the decision to exercise any
Limited Partner Redemption Right, each member of a Tendering Contributor Group has and will rely solely upon the advice of its own tax advisers with respect to the federal and/or state tax aspects of such transaction and each such member hereby
acknowledges and agrees that none of Parent, the General Partner, the Partnership nor any of their Affiliates (i) has made any representation regarding the tax consequences of the exercise and consummation of a Limited Partner Redemption Right or
(ii) shall have any responsibility for any adverse tax consequences incurred by such Limited Partner in connection therewith. 
 
G. In consideration for the rights afforded the Limited Partners pursuant to this Section 8.7, each member of a Tendering Contributor
Group shall, and shall cause each of 
 

48 

 
the ultimate parent entities
of each member of such Tendering Contributor Group to execute an agreement to, jointly and severally, indemnify, save harmless and defend (with counsel acceptable to Parent), Parent, the General Partner, the Partnership, each other Limited Partner
and their respective Affiliates (collectively, the “Section 8.7 Indemnified Parties”) from and against all liabilities, obligations, claims, damages penalties, causes of action, costs and expenses, including attorneys’,
consultants’ and experts’ fees and expenses, federal or state income taxes, penalties or fines imposed upon or incurred by or asserted against or any of the Section 8.7 Indemnified Parties by reason of, arising out of or in any way
relating to the exercise by the Tendering Contributor Group of a Limited Partner Redemption Right or any of the transactions consummated or effectuated in connection therewith or otherwise contemplated hereby. It is understood and agreed that
payment shall not be a condition precedent to enforcement of the foregoing indemnification obligations. 
 
ARTICLE 9. 
BOOKS, RECORDS, ACCOUNTING AND
REPORTS 
 
Section 9.1 Records and
Accounting 
 
The General Partner shall keep or
cause to be kept at the principal office of the Partnership appropriate books and records with respect to the Partnership’s business, including without limitation, all books and records necessary to provide to the Limited Partners any
information, lists and copies of documents required to be provided pursuant to Section 9.3 or Section 8.5.A. Any records maintained by or on behalf of the Partnership in the regular course of its business may be kept on, or be in the form of, punch
cards, magnetic tape, photographs, micrographics or any other information storage device, provided that the records so maintained are convertible into clearly legible written form within a reasonable period of time. The books of the Partnership
shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with generally accepted accounting principles. 
 
Section 9.2 Fiscal Year 
 
The fiscal year of the Partnership shall be the calendar year. 
 
Section 9.3 Reports 
 
A. As soon as practicable, but in no event later than 105 days after the close of each Partnership Year, or
such later date as they are filed with the Securities and Exchange Commission, the General Partner shall cause to be mailed to each Limited Partner as of the close of the Partnership Year, an annual report containing financial statements of the
Partnership, or of the General Partner and Parent if such statements are prepared solely on a consolidated basis with the General Partner and Parent, for such Partnership Year, presented in accordance with generally accepted accounting principles,
such statements to be audited by a nationally recognized firm of independent public accountants selected by the General Partner. 
 
B. As soon as practicable, but in no event later than 105 days after the close of each calendar quarter (except the last calendar quarter
of each year) or such later date as they are filed with the Securities and Exchange Commission, the General Partner shall cause to be 
 

49 

mailed to each Limited Partner as of the last day of the calendar quarter, a report containing unaudited
financial statements of the Partnership, or of the General Partner and Parent, if such statements are prepared solely on a consolidated basis with the applicable law or regulation, or as the General Partner determines to be appropriate.

 
ARTICLE 10. 
TAX MATTERS 
 
Section 10.1 Preparation of Tax Returns 
 
The General Partner shall arrange for the preparation and timely filing of all returns of Partnership income, gains, deductions, losses
and other items required of the Partnership for federal and state income tax purposes and shall use its best efforts to furnish, within 90 days of the close of each taxable year, the tax information reasonably required by Limited Partners for
federal and state income tax reporting purposes, including Form K-1s. The Limited Partners shall promptly provide the General Partner with such information relating to the Contributed Properties, including tax basis and other relevant information,
as may be reasonably requested by the General Partner from time to time. 
 
Section 10.2 Tax Elections 
 
Except as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether to make any available election pursuant to the Code, including the election under Section 754 of the Code. The
General Partner shall have the right to seek to revoke any such election (including without limitation, any election under Section 754 of the Code) upon the General Partner’s determination in its sole and absolute discretion that such
revocation is the best interests of the Partners. 
 
Section 10.3 Tax Matters Partner 
 
A. The General Partner or, if appropriate, Parent shall be the “tax matters partner” of the Partnership for federal income tax purposes. Pursuant to Section 6223(c)(3) of the Code, upon receipt of notice from the IRS of the
beginning of an administrative proceeding with respect to the Partnership, the tax matters partner shall furnish the IRS with the name, address and profit interest of each of the Limited Partners; provided, however, that such
information is provided to the Partnership by the Limited Partners. 
 
B. The tax matters partner is authorized, but not required: 
 
(1) to enter into any settlement with the IRS with respect to any administrative or judicial proceedings for the
adjustment of Partnership items required to be taken into account by a Partner for income tax purposes (such administrative proceedings being referred to as a “tax audit” and such judicial proceedings being referred to as “judicial
review”), and in the settlement agreement the tax matters partner may expressly state that such agreement shall bind all Partners, except that such settlement agreement shall not bind any Partner (i) who (within the time prescribed pursuant to
the Code and Regulations) files a statement with the IRS providing that the tax matters partner shall not have the authority to enter into a settlement agreement on 
 

50 

behalf of such Partner or (ii) who is a “notice partner” (as defined in Section
6231 of the Code) or a member of a “group” (as defined in Section 6223(b)(2) of the Code); 
 
(2) in the event that a notice of a final administrative adjustment at the Partnership level of any item required to be
taken into account by a Partner for tax purposes (a “final adjustment”) is mailed to the tax matters partner, to seek judicial review of such final adjustment, including the filing of a petition for readjustment with the Tax Court or the
United States Claims Court, or the filing of a complaint for refund with the District Court of the United States for the district in which the Partnership’s principal place of business is located; 
 
(3) to intervene in any action brought by any
other Partner for judicial review of a final adjustment; 
 
(4) to file a request for an administrative adjustment with the IRS at any time and, if any part of such request is not allowed by the IRS, to file an appropriate pleading (petition or complaint) for judicial review with
respect to such request; 
 
(5) to
enter into an agreement with the IRS to extend the period for assessing any tax which is attributable to any item required to be taken into account by a Partner for tax purposes, or an item affected by such item; and 
 
(6) to take any other action on behalf of the
Partners of the Partnership in connection with any tax audit or judicial review proceeding to the extent permitted by applicable law or regulations. 
 
The taking of any action and the incurring of any expense by the tax matters partner in connection with any such proceeding, except to the
extent required by law, is a matter in the sole and absolute discretion of the tax matters partner and the provisions relating to indemnification of Parent and the General Partner set forth in Section 7.7 of this Agreement shall be fully applicable
to the tax matters partner in its capacity as such. 
 
C. The tax matters partner shall receive no compensation for its services. All third party costs and expenses incurred by the tax matters partner in performing his duties as such (including legal and accounting fees) shall be borne
by the Partnership. Nothing herein shall be construed to restrict the Partnership from engaging an accounting firm to assist the tax matters partner in discharging his duties hereunder, so long as the compensation paid by the Partnership for such
services is reasonable. 
 
Section 10.4
Organizational Expenses 
 
The Partnership
shall elect to deduct expenses, if any, incurred by it in organizing the Partnership ratably over a 60-month period as provided in Section 709 of the Code. 
 
Section 10.5 Withholding 
 
Each Limited Partner hereby authorizes the Partnership to withhold from or pay on behalf of or with respect to such Limited Partner any
amount of federal, state, local or foreign 
 

51 

 
taxes that the General Partner
determines that the Partnership is required to withhold or pay with respect to any amount distributable or allocable to such Limited Partner pursuant to this Agreement, including, without limitation, any taxes required to be withheld or paid by the
Partnership pursuant to Sections 1441, 1442, 1445 or 1446 of the Code. Any amount paid on behalf of or with respect to a Limited Partner shall constitute a loan by the Partnership to such Limited Partner, which loan shall be repaid by such Limited
Partner within 15 days after notice from the General Partner that such payment must be made unless (i) the Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner or (ii) the General Partner
determines, in its sole and absolute discretion, that such payment may be satisfied out of the available funds of the Partnership which would, but for such payment, be distributed to the Limited Partner. Any amounts withheld pursuant to the
foregoing clauses (i) or (ii) shall be treated as having been distributed to such Limited Partner. Each Limited Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in such Limited Partner’s Partnership
Interest to secure such Limited Partner’s obligation to pay to the Partnership any amounts required to be paid pursuant to this Section 10.5. In the event that a Limited Partner fails to pay any amounts owed to the Partnership pursuant to this
Section 10.5 when due, the General Partner may, in its sole and absolute discretion, elect to make the payment to the Partnership on behalf of such defaulting Limited Partner, and in such event shall be deemed to have loaned such amount to such
defaulting Limited Partner and shall succeed to all rights and remedies of the Partnership as against such defaulting Limited Partner (including, without limitation, the right to receive distributions). Any amounts payable by a Limited Partner
hereunder shall bear interest at the base rate on corporate loans at large United States money center commercial banks, as published from time to time in the Wall Street Journal, plus 1.0 percentage points (but not higher than the maximum
lawful rate) from the date such amount is due (i.e., 15 days after demand) until such amount is paid in full. Each Limited Partner shall take such actions as the Partnership or the General Partner shall request in order to perfect or enforce
the security interest created hereunder. 
 
ARTICLE 11. 
TRANSFERS AND WITHDRAWALS 
 
Section 11.1 Transfer 
 
A. The term “transfer,” when used in this Article 11
with respect to a Partnership Unit, shall be deemed to refer to a transaction by which the General Partner purports to assign its General Partner Interest to another Person or by which a Limited Partner purports to assign its Limited Partnership
Interest to another Person, and includes a sale, assignment, gift (outright or in trust), pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition by law or otherwise. The term “transfer” when used in this Article 11
does not include any redemption of Partnership Units by the Partnership or acquisition of Partnership Units from a Limited Partner by the General Partner pursuant to Section 8.6. No part of the interest of a Limited Partner shall be subject to the
claims of any creditor, any spouse for alimony or support, or to legal process, and may not be voluntarily or involuntarily alienated or encumbered except as may be specifically provided for in this Agreement. 
 
B. No Partnership Interest shall be transferred, in whole or
in part, except in accordance with the terms and conditions set forth in this Article 11. Any transfer or purported 
 

52 

transfer of a Partnership Interest not made in accordance with this Article 11 shall be null and void
ab initio. 
 
Section 11.2 Transfer of
General Partner’s Partnership Interest 
 
A. The General Partner shall not withdraw from the Partnership and shall not sell, assign, pledge, encumber or otherwise dispose of all or any portion of its interest in the Partnership (whether by sale, disposition, statutory merger
or consolidation, liquidation or otherwise) without the Consent of the Limited Partners. Upon any transfer of such a Partnership Interest pursuant to the Consent of the Limited Partners and otherwise in accordance with the provisions of this Section
11.2, the transferee shall become a Substitute General Partner for all purposes herein, and shall be vested with the powers and rights of the transferor General Partner, and shall be liable for all obligations and responsible for all duties of the
General Partner, once such transferee has executed such instruments as may be necessary to effectuate such admission and to confirm the agreement of such transferee to be bound by all the terms and provisions of this Agreement with respect to the
Partnership Interest so acquired. It is a condition to any such transfer that the transferee assumes, by express agreement in a form suitable for filing or recordation, as necessary, all of the obligations of the transferor General Partner under
this Agreement with respect to such transferred Partnership interest, and no such transfer (other than pursuant to a statutory merger or consolidation wherein all obligations and liabilities of the transferor General Partner are assumed by a
successor corporation by operation of law) shall relieve the transferor General Partner of its obligations under this Agreement without the Consent of the Limited Partners. In the event the General Partner withdraws from the Partnership, in
violation of this Agreement or otherwise, or otherwise dissolves or terminates, or upon the bankruptcy of the General Partner, a Majority In Interest of the Limited Partners may elect to continue the Partnership business by selecting a Substitute
General Partner in accordance with the Act. 
 
B.
In addition to, and not in lieu of, the restrictions set forth elsewhere in this Agreement, including without limitation in Section 11.2.A and Section 7.3.E hereof, the General Partner shall not engage in any merger, consolidation or other
combination with or into another person, sale of all or substantially all of its assets or any reclassification, recapitalization or change of its outstanding equity interests (each, a “Termination Transaction”), unless (i) the Termination
Transaction has been approved by a Consent of the Limited Partners, or (ii) except as otherwise provided in Section 11.2.C, in connection with which all Limited Partners either will receive, or will have the right to elect to receive, for each
Partnership Unit an amount of cash, securities, or other property equal to the product of the REIT Shares Amount and the greatest amount of cash, securities or other property paid to a holder of one REIT Share in consideration of one REIT Share
pursuant to the terms of the Termination Transaction; provided that, if, in connection with the Termination Transaction, a purchase, tender or exchange offer shall have been made to and accepted by the holders of the outstanding REIT Shares,
each Limited Partner shall receive, or shall have the right to elect to receive, the greatest amount of cash, securities, or other property which such holder would have received had it exercised its right to Exchange (as set forth in Section 8.6)
and received REIT Shares in exchange for its Partnership Units immediately prior to the expiration of such purchase, tender or exchange offer and had thereupon accepted such purchase, tender or exchange offer and then such Termination Transaction
shall have been consummated. 
 

53 

 
C. In addition
to, and not in lieu of, the restrictions set forth elsewhere in this Agreement, including without limitation in Section 11.2.A and Section 7.3.E hereof, the General Partner may merge, or otherwise combine its assets, with another entity without
satisfying the requirements of Section 11.2.B(ii) hereof if: (i) immediately after such merger or other combination, substantially all of the assets directly or indirectly owned by the surviving entity, other than Partnership Units held by the
General Partner, are owned directly or indirectly by the Partnership or another limited partnership or limited liability company which is the survivor of a merger, consolidation or combination of assets with the Partnership (in each case, the
“Surviving Partnership”); (ii) the Limited Partners own a percentage interest of the Surviving Partnership based on the relative fair market value of the net assets of the Partnerships (as determined pursuant to Section 11.2.E) and the
other net assets of the Surviving Partnership (as determined pursuant to Section 11.2.E) immediately prior to the consummation of such transaction; (iii) the rights, preferences and privileges of the Limited Partners in the Surviving Partnership are
at least as favorable as those in effect immediately prior to the consummation of such transaction and as those applicable to any other limited partners or non-managing members of the Surviving Partnership; and (iv) such rights of the Limited
Partners include the right to exchange their interests in the Surviving Partnership for at least one of: (a) the consideration available to such Limited Partners pursuant to Section 11.2.B or (b) if the ultimate controlling person of the Surviving
Partnership has publicly traded common equity securities, with an exchange ratio based on the relative fair market value of such securities (as determined pursuant to Section 11.2.E) and the REIT Shares. 
 
D. In connection with any transaction described in Section
11.2.B or Section 11.2.C hereof, the General Partner shall use its commercially reasonable efforts to structure such Termination Transaction to avoid causing the Limited Partners to recognize gain for federal income tax purposes by virtue of the
occurrence of or their participation in such Termination Transaction. 
 
E. In connection with any transaction described in Section 11.2.B or 11.2.C, the relative fair market values shall be reasonably determined by the General Partner as of the time of such transaction and, to the extent
applicable, shall be no less favorable to the Limited Partners than the relative values reflected in the terms of such transaction. 
 
Section 11.3 Limited Partners’ Rights to Transfer 
 
A. Any Limited Partner may, at any time, without the consent of the General Partner, (i) transfer all or any
portion of its Partnership Interest to the General Partner, subject to the provisions of Section 11.7, (ii) transfer all or any portion of its Partnership Interest to an Affiliate, another Limited Partner or to an Immediate Family member, subject to
the provisions of Section 11.7, (iii) transfer all or any portion of its Partnership Interest pursuant to its rights to effect an Exchange as provided in Section 8.6 hereof, (iv) pledge all or any portion of its Partnership Interest to a lending
institution, which is not an Affiliate of such Limited Partner, as collateral or security for a bona fide loan or other extension of credit, and subject to the provisions of Section 11.7, transfer such pledged Partnership Interest to such lending
institution in connection with the exercise of remedies under such loan or extension or credit, and (v) if such Limited Partner is one of the initial Limited Partners of the Partnership and is a partnership, 
 

54 

such Limited Partner may distribute all of its Partnership Interest to the partners of such partnership
pursuant to a dissolution or liquidation of the Limited Partner. 
 
It is a condition to any transfer otherwise permitted hereunder that the transferee assumes by operation of law or express agreement all of the obligations of the transferor Limited Partner under this Agreement with respect to such
transferred Partnership Interest and no such transfer (other than pursuant to a statutory merger or consolidation wherein all obligations and liabilities of the transferor Partner are assumed by a successor corporation by operation of law) shall
relieve the transferor Partner of its obligations under this Agreement without the approval of the General Partner, in its sole and absolute discretion. Notwithstanding the foregoing, any transferee of any transferred Partnership Interest shall be
subject to any and all ownership limitations contained in the Charter which may limit or restrict such transferee’s ability to exercise its Exchange rights. Any transferee, whether or not admitted as a Substituted Limited Partner, shall take
subject to the obligations of the transferor hereunder. Unless admitted as a Substituted Limited Partner, no transferee, whether by a voluntary transfer, by operation of law or otherwise, shall have any rights hereunder, other than the rights of an
Assignee as provided in Section 11.5. 
 
B. If a
Limited Partner is subject to Incapacity, the executor, administrator, trustee, committee, guardian, conservator or receiver of such Limited Partner’s estate shall have all the rights of a Limited Partner, but not more rights than those enjoyed
by other Limited Partners, for the purpose of settling or managing the estate, and such power as the Incapacitated Limited Partner possessed to transfer all or any part of his or its interest in the Partnership. The Incapacity of a Limited Partner,
in and of itself, shall not dissolve or terminate the Partnership. 
 
C. The General Partner may prohibit any transfer otherwise permitted under this Section 11.3 by a Limited Partner of his Partnership Units if, in the opinion of legal counsel to the Partnership, such transfer would require
the filing of a registration statement under the Securities Act by the Partnership or would otherwise violate any federal or state securities laws or regulations applicable to the Partnership or the Partnership Units. 
 
Section 11.4 Substituted Limited Partners 
 
A. No Limited Partner shall have the right to substitute a
transferee (including transferees pursuant to transfers permitted by Section 11.3, other than pursuant to Section 11.3.A(v) as a Limited Partner in his place. The General Partner shall, however, have the right to consent to the admission of a
transferee of the interest of a Limited Partner pursuant to this Section 11.4 as a Substituted Limited Partner, which consent may be given or withheld by the General Partner in its sole and absolute discretion. The General Partner’s failure or
refusal to permit a transferee of any such interests to become a Substituted Limited Partner shall not give rise to any cause of action against the Partnership or any Partner. Notwithstanding the foregoing, transferees pursuant to Section 11.3.A(v)
who were partners in the Limited Partner at the time the Limited Partner became a Partner in this Partnership may become Substitute Limited Partners and the General Partner hereby consents in advance to the admission of such transferees as
Substitute Limited Partners; provided, however, in no event shall this exception apply to Partnership Interests representing more than 40 percent of the Percentage Interests of the Partnership. 
 

55 

 
B. A
transferee who has been admitted as a Substituted Limited Partner in accordance with this Article 11 shall have all the rights and powers and be subject to all the restrictions and liabilities of a Limited Partner under this Agreement. 
 
C. Upon the admission of a Substituted Limited Partner, the
General Partner shall amend Exhibit A to reflect the name, address, number of Partnership Units, and Percentage Interest of such Substituted Limited Partner and to eliminate or adjust, if necessary, the name, address and interest of the predecessor
of such Substituted Limited Partner. 
 
Section
11.5 Assignees 
 
If the General Partner, in
its sole and absolute discretion, does not consent to the admission of any permitted transferee under Section 11.3 as a Substituted Limited Partner, as described in Section 11.4, such transferee shall be considered an Assignee for purposes of this
Agreement. An Assignee shall be entitled to all the rights of an assignee of a limited partnership interest under the Act, including the right to receive distributions from the Partnership and the share of Net Income, Net Losses, gain and loss
attributable to the Partnership Units assigned to such transferee, the rights to transfer the Partnership Units provided in this Article 11, and the rights to effect an Exchange provided in Section 8.6, but shall not be deemed to be a holder of
Partnership Units or Partnership Interests for any other purpose under this Agreement, and shall not be entitled to effect a Consent with respect to such Partnership Units on any matter presented to the Limited Partners for approval (such Consent
remaining with the transferor Limited Partner). In the event any such transferee desires to make a further assignment of any such Partnership Units, such transferee shall be subject to all the provisions of this Article 11 to the same extent and in
the same manner as any Limited Partner desiring to make an assignment of Partnership Units. 
 
Section 11.6 Redemption of Limited Partnership Units 
 
A. Notwithstanding anything in this Agreement to the contrary, the General Partner has the right, in its sole and absolute discretion, to
cause the Partnership to redeem, in whole, but not in part, the Limited Partnership Units held by any Limited Partner that has disposed of at least seventy-five percent (75%) of the Limited Partnership Units issued by the Partnership to such Limited
Partner. The General Partner shall effect such redemption by providing a Redemption Notice and causing the Partnership to pay the Redemption Price as set forth in this Section 11.6.A. 
 
B. Notice of Redemption. At least 5 but no more than 30 days prior to the Redemption Date, the General
Partner shall cause a Redemption Notice to be mailed to the holder of Limited Partnership Units to be redeemed, at the address last shown on the records of the Partnership for such holder, notifying such holder of the redemption to be effected, the
Redemption Date, and the place at which payment may be obtained and calling upon such holder to surrender to the Partnership, in the manner and at the place designated, his certificate or certificates representing the Limited Partnership Units to be
redeemed. On or after the Redemption Date, each holder of Limited Partnership Units to be redeemed shall surrender to the Partnership the certificate or certificates representing such Limited Partnership Units, in the manner and at the place
designated in the Redemption Notice, and thereupon the Redemption 
 

56 

Price shall be payable to the order of the person whose name appears on such certificate or certificates
as the owner thereof and each surrendered certificate shall be cancelled. 
 
C. Rights of Limited Partner following Redemption Date. From and after the Redemption Date, unless there shall have been a default in payment of the Redemption Price, all rights of the holder of Limited Partnership
Units designated for redemption in the Redemption Notice as a holder of Limited Partnership Units (except the right to receive the Redemption Price without interest upon surrender of their certificate or certificates) shall cease with respect to
such Limited Partnership Units, such Limited Partnership Units shall not be transferable or be deemed to be outstanding for any purpose whatsoever and such holder shall no longer hold a Partnership Interest in the Partnership. 
 
Section 11.7 General Provisions 
 
A. No Limited Partner may withdraw from the Partnership other
than as a result of a permitted transfer of all of such Limited Partner’s Partnership Units in accordance with this Article 11, with respect to which the transferee becomes a Substituted Limited Partner, pursuant to an Exchange of all of such
Limited Partner’s Partnership Units under Section 8.6 or a redemption of all of its Limited Partnership Units under Section 11.6. 
 
B. Any Limited Partner who shall transfer all of its Limited Partnership Units in a transfer permitted pursuant to this Article 11 where
such transferee was admitted as a Substituted Limited Partner, pursuant to the exercise of its rights of Exchange with respect to all of its Limited Partnership Units under Section 8.6 or pursuant to a redemption of all of its Limited Partnership
Units under Section 11.6 shall cease to be a Limited Partner. 
 
C. Transfers pursuant to this Article 11 may only be made as of the first day of a fiscal quarter of the Partnership, unless the General Partner otherwise consents, which shall not be unreasonably withheld. 
 
D. In addition to any other restrictions on transfer herein
contained, in no event may any transfer or assignment of a Partnership Interest by any Partner (including any Exchange, any other acquisition of Partnership Units by the General Partner or any acquisition of Partnership Units by the Partnership) be
made (i) to any person or entity who lacks the legal right, power or capacity to own a Partnership Interest; (ii) in violation of applicable law; (iii) of any component portion of a Partnership Interest, such as the Capital Account, or rights to
distributions, separate and apart from all other components of a Partnership Interest, (iv) in the event such transfer could cause Parent to cease to comply with the REIT Requirements; (v) if such transfer would cause a termination of the
Partnership for federal or state income tax purposes (except as a result of the Exchange of all Partnership Units held by all Limited Partners); (vi) if such transfer could, in the opinion of counsel to the Partnership, cause the Partnership to
cease to be classified as a partnership for Federal income tax purposes (except as a result of the Exchange of all Partnership Units held by all Limited Partners); (vii) if such transfer would cause the Partnership to become, with respect to any
employee benefit plan subject to Title I of ERISA, a “party-in-interest” (as defined in Section 3(14) of ERISA) or a “disqualified person” (as defined in Section 4975(c) of the Code); (viii) if such transfer would, in the opinion
of counsel to the Partnership, cause any portion of the assets of the Partnership to constitute 
 

57 

assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2510.2-101; (ix)
if such transfer requires the registration of such Partnership Interest pursuant to any applicable federal or state securities laws; (x) if such transfer could cause the Partnership to become a “Publicly Traded Partnership,” as such term
is defined in Sections 469(k)(2) or 7704(b) of the Code or if such transfer would cause the Partnership to have more than 500 partners (including as partners those persons indirectly owning an interest in the Partnership through a partnership,
subchapter S corporation or grantor trust) or to become a reporting Company under the Exchange Act; or (xi) if such transfer subjects the Partnership to be regulated under the Investment Company Act of 1940, the Investment Advisors Act of 1940 or
the Employee Retirement Income Security Act of 1974, each as amended. 
 
ARTICLE 12. 
ADMISSION OF PARTNERS 
 
Section 12.1 Admission of Successor General Partner

 
A successor to all of the General Partner’s
General Partner Interest pursuant to Section 11.2 hereof who is proposed to be admitted as a successor General Partner with the consent of the Limited Partners shall be admitted to the Partnership as the General Partner effective upon such transfer.
Any such transferee shall carry on the business of the Partnership without dissolution. In each case, the admission shall be subject to the successor General Partner executing and delivering to the Partnership an acceptance of all of the terms and
conditions of this Agreement and such other documents or instruments as may be required to effect the admission. 
 
Section 12.2 No Admission of Additional Limited Partners 
 
Except for the admission of a Substituted Limited Partner pursuant to Section 11.4, no Person shall be
admitted to the Partnership as an additional Limited Partner. 
 
Section 12.3 Limit on Number of Partners 
 
Except as approved by the General Partner in its sole and absolute discretion, no Person shall be admitted to the Partnership as a Substituted Partner if the effect of such admission would be to cause the Partnership to have more
than 500 Partners, including as Partners for this purpose those Persons indirectly owning an interest in the Partnership through another partnership, subchapter S corporation or a grantor trust, or otherwise cause the Partnership to become a
reporting company under the Exchange Act. 
 
ARTICLE 13. 
DISSOLUTION AND LIQUIDATION 
 
Section 13.1 Dissolution 
 
The Partnership shall not be dissolved by the admission of
Substituted Limited Partners or by the admission of a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General Partner shall 
 

58 

continue the business of the Partnership. The Partnership shall dissolve, and its affairs shall be wound
up, upon the first to occur of any of the following (“Liquidating Events”): 
 
A. the expiration of its term as provided in Section 2.5 hereof; 
 
B. an event of withdrawal of the General Partner, as defined in the Act, unless, within 90 days after the withdrawal, a Majority in
Interest of the Limited Partners and at least a Majority in Interest of all the remaining partners agree in writing, in their sole and absolute discretion, to continue the business of the Partnership and to the appointment, effective as of the date
of withdrawal, of a substitute General Partner; 
 
C. an election to dissolve the Partnership made by the General Partner in accordance with the provisions of Section 7.3.E; 
 
D. entry of a decree of judicial dissolution of the Partnership pursuant to the provisions of the Act; 
 
E. a Terminating Capital Transaction; 
 
F. a bankruptcy of the General Partner within the meaning of
the Act, unless all of the remaining Partners agree in writing to continue the business of the Partnership and to the appointment, effective as of a date prior to the date of such bankruptcy, of a substitute General Partner; or 
 
G. the Exchange by all Partners (other than the General
Partner) of all Partnership Units. 
 
Section 13.2
Winding Up 
 
A. Upon the occurrence of a
Liquidating Event, the Partnership shall continue solely for the purposes of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners. No Partner shall take any action that is
inconsistent with, or not necessary to or appropriate for, the winding up of the Partnership’s business and affairs. The General Partner (or, in the event there is no remaining General Partner, any Person elected by a Majority in Interest of
the Limited Partners (the “Liquidator”)) shall be responsible for overseeing the winding up and dissolution of the Partnership and shall take full account of the Partnership’s liabilities and property and the Partnership property
shall be liquidated as promptly as is consistent with obtaining the fair value thereof, and the proceeds therefrom (which may, to the extent determined by the General Partner, include shares of stock in the General Partner) shall be applied and
distributed in the following order: 
 
(1) First, to the payment and discharge of or provision for all of the Partnership’s debts and liabilities to creditors other than the Partners; 
 
(2) Second, to the payment and discharge of or provision for all of the Partnership’s
debts and liabilities to the General Partner; 
 

59 

 
(3) Third, to the payment and discharge of or provision for all of the Partnership’s debts and liabilities to the Partners; and 
 
(4) The balance, if any, to the General Partner and Limited Partners in accordance with their positive Capital Account
balances, determined after taking into account all Capital Account adjustments for the Partnership taxable year during which the liquidation occurs (other than those made as a result of the liquidating distribution set forth in this Section
13.2.A(4)). 
 
The General Partner shall not receive any additional
compensation for any services performed pursuant to this Article 13 other than reimbursement of its expenses as provided in Section 7.4. 
 
B. Notwithstanding the provisions of Section 13.2.A hereof which require liquidation of the assets of the Partnership, but subject to the
order of priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale of part or all of the Partnership’s assets would be impractical or would cause undue loss to the
Partners, the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of any assets except those necessary to satisfy liabilities of the Partnership (including to those Partners as creditors) and/or
distribute to the Partners, in lieu of cash, as tenants in common and in accordance with the provisions of Section 13.2.A hereof, undivided interests in such Partnership assets as the Liquidator deems not suitable for liquidation. Any such
distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in kind are in the best interest of the Partners, and shall be subject to such conditions relating to the disposition and management of
such properties as the Liquidator deems reasonable and equitable and to any agreements governing the operation of such properties at such time. The Liquidator shall determine the fair market value of any property distributed in kind using such
reasonable method of valuation as it may adopt. 
 
Section 13.3 Compliance with Timing Requirements of Regulations 
 
In the event the Partnership is “liquidated” within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), distributions shall be made pursuant to this Article 13 to the General Partner and
Limited Partners who have positive Capital Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2). If any Partner has a deficit balance in his Capital Account (after giving effect to all contributions, distributions and allocations
for the taxable years, including the year during which such liquidation occurs), such Partner shall have no obligation to make any contribution to the capital of the Partnership with respect to such deficit, and such deficit shall not be considered
a debt owed to the Partnership or to any other Person for any purpose whatsoever. In the discretion of the General Partner, a pro rata portion of the distributions that would otherwise be made to the General Partner and Limited Partners pursuant to
this Article 13 may be: 
 
A. distributed to a
trust established for the benefit of the General Partner and Limited Partners for the purposes of liquidating Partnership assets, collecting amounts owed to the Partnership, and paying any contingent or unforeseen liabilities or obligations of the
Partnership or of the General Partner arising out of or in connection with the Partnership. The assets of any such trust shall be distributed to the General Partner and Limited Partners from time 
 

60 

to time, in the reasonable discretion of the General Partner, in the same proportions and the amount
distributed to such trust by the Partnership would otherwise have been distributed to the General partner and Limited Partners pursuant to this Agreement; or 
 
B. withheld to provide a reasonable reserve for partnership liabilities (contingent or otherwise) and to reflect the unrealized portion of
any installment obligations owed to the Partnership, provided that such withhold amounts shall be distributed to the General Partner and Limited Partners as soon as practicable. 
 
Section 13.4 Deemed Distribution and Recontribution 
 
Notwithstanding any other provision of this Article 13, in the
event the Partnership is liquidated within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g) but no Liquidating Event has occurred, the Partnership’s property shall not be liquidated, the Partnership’s liabilities shall not be paid
or discharged, and the Partnership’s affairs shall not be wound up. Instead, the Partnership shall be deemed to have distributed the Property in kind to the General Partner and Limited Partners, who shall be deemed to have assumed and taken
such property subject to all Partnership liabilities, all in accordance with their respective Capital Accounts. Immediately thereafter, the General Partner and Limited Partners shall be deemed to have recontributed the Partnership property in kind
to the Partnership, which shall be deemed to have assumed and taken such property subject to all such liabilities. 
 
Section 13.5 Rights of Limited Partners 
 
Except as otherwise provided in this Agreement, each Limited Partner shall look solely to the assets of the Partnership for the return of
his Capital Contribution. No Limited Partner shall have priority over any other Limited Partner as to the return of his Capital Contributions, distributions or allocations. 
 
Section 13.6 Notice of Dissolution 
 
In the event a Liquidating Event occurs or an event occurs that would, but for provisions of Section 13.1,
result in a dissolution of the Partnership, the General Partner shall, within 30 days thereafter, provide written notice thereof to each of the Partners and to all other parties with whom the Partnership regularly conducts business (as determined in
the discretion of the General Partner) and shall publish notice thereof in a newspaper of general circulation in each place in which the Partnership regularly conducts business (as determined in the discretion of the General Partner). 
 
Section 13.7 Cancellation of Certificate of Limited
Partnership 
 
Upon the completion of the
liquidation of the Partnership cash and property as provided in Section 13.2 hereof, the Partnership shall be terminated and the Certificate and all qualifications of the Partnership as a foreign limited partnership in jurisdictions other than the
State of California shall be cancelled and such other actions as may be necessary to wind up the Partnership shall be taken. 
 

61 

 
Section 13.8
Reasonable Time for Winding-Up 
 
A
reasonable time shall be allowed for the orderly winding-up of the business and affairs of the Partnership and the liquidation of its assets pursuant to Section 13.2 hereof, in order to minimize any losses otherwise attendant upon such winding-up,
and the provisions of this Agreement shall remain in effect between the Partners during the period of liquidation. 
 
ARTICLE 14. 
PROCEDURES FOR ACTIONS AND
CONSENTS OF PARTNERS 
 
Section 14.1
Procedures For Actions And Consents of Partners 
 
A. The actions requiring consent or approval of Limited Partners pursuant to this Agreement, including Section 7.3, or otherwise pursuant to applicable law, are subject to the following procedures. 
 
B. Amendments to this Agreement may be proposed by the General
Partner or by any Limited Partners holding 20 percent or more of the Limited Partnership Units. Following such proposal, the General Partner shall submit any proposed amendment to the Limited Partners. The General Partner shall seek the written
consent of the Partners on the proposed amendment or shall call a meeting to vote thereon and to transact any other business that it may deem appropriate. For purposes of obtaining a written consent, the General Partner may require a response within
a reasonable specified time, but not less than 15 days, and failure to respond in such time period shall constitute a consent which is consistent with the General Partner’s recommendation with respect to the proposal; provided,
that, an action shall become effective at such time as requisite consents are received even if prior to such specified time. 
 
C. Meetings of the Partners may be called by the General Partner and shall be called upon the receipt by the General Partner of a written
request by Limited Partners holding 20 percent or more of the Limited Partnership Units. The call shall state the nature of the business to be transacted. Notice of any such meeting shall be given to all Partners not less than seven days nor more
than 30 days prior to the data of such meeting. Partners may vote in person or by proxy at such meeting. Whenever the vote or Consent of Partners is permitted or required under this Agreement, such vote or Consent may be given at a meeting of
Partners or may be given in accordance with the procedure prescribed in Section 14.1.D. 
 
D. Any action required or permitted to be taken by the meeting of the Partners may be taken without a meeting if a written consent setting forth the action so taken is signed by the percentage as is
expressly required by this Agreement for the action in question. Such consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote of the Percentage Interests of the Partners (expressly required by
this Agreement). Such consent shall be filed with the General Partner. An action so taken shall be deemed to have been taken at a meeting held on the effective date so certified. 
 
E. Each Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which a
Limited Partner is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by 
 

62 

the Limited Partner or his attorney-in-fact. No proxy shall be valid after the expiration of 11 months
from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Limited Partner executing it. 
 
F. Each meeting of Partners shall be conducted by the General Partner or such other Person as the General Partner may appoint pursuant to
such rules for the conduct of the meeting as the General Partner or such other Person deems appropriate. 
 
ARTICLE 15. 
GENERAL PROVISIONS

 
Section 15.1 Addresses and Notice

 
Any notice, demand, request or report required
or permitted to be given or made to a Partner or Assignee under this Agreement shall be in writing and shall be deemed given or made when delivered in person or when sent by certified mail, postage prepaid, return receipt requested, or by other
means of written communication (including by telecopy, facsimile, or commercial courier service) to the Partner or Assignee at the address set forth in Exhibit A or such other address as the Partners shall notify the General Partner in writing.

 
Section 15.2 Titles and Captions

 
All article or section titles or captions in
this Agreement are for convenience only. They shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Except as specifically provided otherwise, references to
“Articles” and “Sections” are to Articles and Sections of this Agreement. 
 
Section 15.3 Pronouns and Plurals 
 
Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall
include the plural and vice versa. 
 
Section 15.4
Further Action 
 
The parties shall execute
and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement. 
 
Section 15.5 Binding Effect 
 
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs,
executors, administrators, successors, legal representatives and permitted assigns. 
 

63 

 
Section 15.6
Creditors 
 
None of the provisions of this
Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Partnership. 
 
Section 15.7 Waiver 
 
No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to
exercise any right or remedy consequent upon any breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or condition. 
 
Section 15.8 Counterparts 
 
This Agreement may be executed in counterparts, all of which together shall constitute one agreement binding on all the parties hereto,
notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Agreement immediately upon affixing its signature hereto. 
 
Section 15.9 Applicable Law 
 
This Agreement shall be construed in accordance with and
governed by the laws (other than the law governing the choice of law) of the State of California, without regard to the principles of conflicts of law. In the event of a conflict between any provision of this Agreement and any non-mandatory
provision of the Act, the provisions of this Agreement shall control and take precedence. 
 
Section 15.10 Invalidity of Provisions 
 
If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be
affected thereby. 
 
Section 15.11 Partition

 
No Partner nor any successor-in-interest to a
Partner shall have the right while this Agreement remains in effect to have any property of the Partnership partitioned, or to file a complaint or institute to any proceeding at law or in equity to have such property of the Partnership partitioned,
and each Partner, on behalf of itself and its successors and assigns hereby waives any such right. It is the intention of the Partners that the rights of the parties hereto and their successors-in-interest to Partnership Property, as among
themselves, shall be governed by the terms of this Agreement, and that the rights of the Partners and their successors-in-interest shall be subject to the limitations and restrictions as set forth in this Agreement. 
 

64 

 
Section 15.12
No Third-Party Rights Created Hereby 
 
The
provisions of this Agreement are solely for the purpose of defining the interests of the Partners, inter se; and no other person, firm or entity (i.e., a party who is not a signatory hereto or a permitted successor to such signatory
hereto) shall have any right, power, title or interest by way of subrogation or otherwise, in and to the rights, powers, title and provisions of this Agreement. 
 

65 

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

	  “GENERAL PARTNER”
   
  CENTER TRUST, INC., a Maryland
corporation

	
	  By:
	  	  /s/ Edward D. Fox, Jr.

	  	  	  Name:
  Title:
	  	  Edward D. Fox, Jr.
  Chief Executive Officer

 
EXHIBIT A

PARTNERS, CONTRIBUTIONS AND 
PARTNERSHIP INTERESTS 
 

	  Name and
 
Address
  of Partner

	     	  Cash Contributions

	     	  Agreed Value of Contributed Property*

	     	  Gross Asset Value of Contributed Property

	     	  Total Contributions

	   	  Partnership Units

	     	  Percentage Interest

	
	  General Partner
	     	  	     	  	     	  	     	  	   	  	     	  
	
	  Center Trust, Inc.
	     	  	     	  	     	  	     	  	   	  	     	  
	
	  Limited Partners
	     	  	     	  	     	  	     	  	   	  	     	  
	
	  Alexander Haagen, III
	     	  	     	  	     	  	     	  	   	  30,664.752
	     	  
	
	  Patricia De Angelis
	     	  	     	  	     	  	     	  	   	  1,797.846
	     	  
	
	  Saul Kreshek
	     	  	     	  	     	  	     	  	   	  3,300.520
	     	  
	
	  Herb Ornelas
	     	  	     	  	     	  	     	  	   	  16.132
	     	  
	
	  Margaret Lewicki
	     	  	     	  	     	  	     	  	   	  6,192.290
	     	  
	
	  Ernest Grossman
	     	  	     	  	     	  	     	  	   	  10,435.660
	     	  
	
	  Tom Corley
	     	  	     	  	     	  	     	  	   	  830.580
	     	  
	
	  Gresham—RPR Associates
	     	  	     	  	     	  	     	  	   	  289.940
	     	  
	
	  Hughes Investments, a California general partnership
	     	  	     	  	     	  	     	  	   	  4,240.536
	     	  

 

A-1 

	  Name and
 
Address
  of Partner

	     	  Cash Contributions

	     	  Agreed Value of Contributed Property*

	     	  Gross Asset Value of Contributed Property

	     	  Total Contributions

	   	  Partnership Units

	     	  Percentage Interest

	
	  BARTFAM, a California limited partnership
	     	  	     	  	     	  	     	  	   	  13,432.942
	     	  
	
	  CJJ Limited Partnership
	     	  	     	  	     	  	     	  	   	  13,432.942
	     	  
	
	  Cecile C. Bartman, Trustee of the Ceclile Citron Bartman Trust dated September 26,
2001
	     	  	     	  	     	  	     	  	   	  8,685.556
	     	  
	
	  HI-Loma, a California general partnership
	     	  	     	  	     	  	     	  	   	  32,478.294
	     	  
	
	  HI-NC, a California general partnership
	     	  	     	  	     	  	     	  	   	  18,994.558
	     	  
	
	  The Harry J.L. Frank, Jr. and Margaret S. Frank Family Trust U/A 5/9/91
	     	  	     	  	     	  	     	  	   	  4,748.694
	     	  
	
	  Cecile C. Bartman, Trustee under the Will of Bernard Citron, deceased
	     	  	     	  	     	  	     	  	   	  4,748.476
	     	  
	
	  Hughes Milliken Associates, a California general partnershp
	     	  	     	  	     	  	     	  	   	  24,061.750
	     	  
	
	  Visalia MKP, Inc.
	     	  	     	  	     	  	     	  	   	  10,610.714
	     	  
	
	  Myrtle Gronske
	     	  	     	  	     	  	     	  	   	  6,606.490
	     	  
	
	  Holmes Development Group, Inc.
	     	  	     	  	     	  	     	  	   	  558.516
	     	  
	
	  John L. Holmes Living Trust
	     	  	     	  	     	  	     	  	   	  55,303.984
	     	  

 

A-2 

	  Name and
 
Address
  of Partner

	     	  Cash Contributions

	     	  Agreed Value of Contributed Property*

	     	  Gross Asset Value of Contributed Property

	     	  Total Contributions

	   	  Partnership Units

	     	  Percentage Interest

	
	  North Mountain Village Shopping Center Limited Partnership, a California limited
partnership
	     	  	     	  	     	  	     	  	   	  353.378
	     	  
	
	  Trust “A”, created under the Will of W. Arnet Speer aka William A. Speer,
deceased, under the preliminary decree of distribution of his estate, entered on December 15, 1978, in Judgment Book 1193, page 428, Superior Court of the State of California, County of San Diego, Case No. 114411
	     	  	     	  	     	  	     	  	   	  17,814.306
	     	  
	
	  Trust “D”, created under the Will of W. Arnet Speer aka William A. Speer,
deceased, under the preliminary decree of distribution of his estate, entered on December 15, 1978, in Judgment Book 1193, page 428, Superior Court of the State of California, County of San Diego, Case No. 114411
	     	  	     	  	     	  	     	  	   	  3,665.670
	     	  
	
	  William A. Speer, Jr. Irrevocable Trust U/A/D October 18, 1988 F/B/O Linda Speer
Fortune
	     	  	     	  	     	  	     	  	   	  1,833.162
	     	  
	
	  William A. Speer, Jr. Irrevocable Trust U/A/D October 18, 1988 F/B/O Rebecca
Speer
	     	  	     	  	     	  	     	  	   	  1,833.162
	     	  

 

A-3 

	  Name and
 
Address
  of Partner

	     	  Cash Contributions

	     	  Agreed Value of Contributed Property*

	     	  Gross Asset Value of Contributed Property

	     	  Total Contributions

	   	  Partnership Units

	     	  Percentage Interest

	  Doreann Speer Gibson Trust U/A/D October 13, 1989
	     	  	     	  	     	  	     	  	   	  3,666.106
	     	  
	  Rebecca Jean Speer Trust U/A/D November 9, 1994
	     	  	     	  	     	  	     	  	   	  3,665.888
	     	  

 
*Gross
Asset Value net of Debt (if any) to which the Contributed Property is subject. 
 

A-4 

 
EXHIBIT B

NOTICE OF EXCHANGE 
 
The undersigned hereby irrevocably (i) exchanges
                         Partnership Units in CT Operating Partnership, L.P. in accordance with the terms of the Second
Amended and Restated Agreement of Limited Partnership of CT Operating Partnership, L.P. and the Exchange Right referred to therein, (ii) surrenders such Partnership Units and all right, title and interest therein, and (iii) directs that the REIT
Shares deliverable upon exercise of the right of Exchange be delivered to the address specified below, and such REIT Shares be registered or placed in the name(s) and at the address(es) specified below. The undersigned Beneficially Owns
         shares of common stock of Pan Pacific Retail Properties, Inc. as of the date hereof. 
 
Dated:
                                        
                                     
 
Name of Limited Partner: 
 

	

	  (Signature of Limited Partner) 

	
	

	  (Street Address)

	
	

	  (City)       (State)
      (Zip Code)

	  

 

	  Signature Guaranteed by:

	
	  	  	  
	

 
REIT Shares are to be issued to: 
 
Please insert social security or identifying number: 
 
Name: 
 

B-1 

 
EXHIBIT C

FORM OF UNIT CERTIFICATE 
 
Certificate for OP Units 
of 
CT Operating Partnership, L.P. 
 

	  No.
                                
	  	                                       OP
UNITS

 
Center
Trust, Inc., as the General Partner of CT Operating Partnership, L.P., a California limited partnership (the “Operating Partnership”), hereby certifies that
                                        
                                        
                                 is a Limited Partner of the Operating Partnership
whose Partnership Interests therein, as set forth in the Second Amended and Restated Agreement of Limited Partnership of CT Operating Partnership, L.P. (the “Partnership Agreement”), under which the Operating Partnership is existing and as
filed in the Office of the Secretary of State of California (copies of which are on file at the Operating Partnership’s principal office at
                            , Vista, California), represent
                     units of limited partnership interest in the Operating Partnership (the “OP Units”). 
 
THE OP UNITS REPRESENTED BY THIS CERTIFICATE OR INSTRUMENT MAY NOT BE
TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE PROVISIONS OF THE PARTNERSHIP AGREEMENT AS OF DECEMBER 27, 1993 AS IT
MAY BE AMENDED FROM TIME TO TIME (A COPY OF WHICH IS ON FILE WITH THE OPERATING PARTNERSHIP). EXCEPT AS OTHERWISE PROVIDED IN SUCH AGREEMENT, NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE OP UNITS REPRESENTED BY
THIS CERTIFICATE MAY BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR (B) IF THE OPERATING PARTNERSHIP HAS BEEN FURNISHED WITH A SATISFACTORY OPINION OF COUNSEL
FOR THE HOLDER THAT SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF THE ACT AND THE RULES AND REGULATIONS IN EFFECT THEREUNDER. 
 

	  DATED:
	  	  	  	  CENTER TRUST, INC.

	
	  	  	  	  	  	  	  General Partner of CT Operating Partnership, L.P.

	  	  	  	  	  	  	  	  	  

 

	  ATTEST:
	  	  	  	  
	
	  	  	  	  	  	  	  By:
	  	

	  By:
	  	
	  	  	  	  	  	  

 

C-1 

 
EXHIBIT D

 
The term “Constructively Owns”
means ownership determined through the application of the constructive ownership rules of Section 318 of the Code, as modified by Section 856(d)(5) of the Code. Generally, these rules provide the following: 
 

	  	 a.	  	 an individual is considered as owning the Ownership Interest that is owned, directly or constructively, by or for his spouse, his children, his grandchildren, and
his parents; 

 

	  	 b.	  	 an Ownership Interest that is owned, directly or constructively, by or for a partnership or estate is considered as owned proportionately by its partners or
beneficiaries; 

 

	  	 c.	  	 an Ownership Interest that is owned, directly or constructively, by or for a trust is considered as owned by its beneficiaries in proportion to the actuarial
interest of such beneficiaries (provided, however, that in the case of a “grantor trust” the Ownership Interest will be considered as owned by the grantors); 

 

	  	 d.	  	 if 10 percent or more in value of the stock in a corporation is owned, directly or constructively, by or for any person, such person shall be considered as owning
the Ownership Interest that is owned, directly or constructively, by or for such corporation in that proportion which the value of the stock which such person so owns bears to the value of all the stock in such corporation;

 

	  	 e.	  	 an Ownership Interest that is owned, directly or constructively, by or for a partner actually or constructively owning a 25% capital interest in a partnership or a
beneficiary of an estate or trust shall be considered as owned by the partnership, estate, or trust; 

 

	  	 f.	  	 if 10 percent or more in value of the stock in a corporation is owned, directly or constructively, by or for any person, such corporation shall be considered as
owning the Ownership Interest that is owned, directly or constructively, by or for such person; 

 

	  	 g.	  	 if any person has an option to acquire an Ownership Interest (including an option to acquire an option or any one of a series of such options), such Ownership
Interest shall be considered as owned by such person; 

 

	  	 h.	  	 an Ownership Interest that is constructively owned by a person by reason of the application of the rules described in paragraphs (a) through (g) above shall, for
purposes of applying paragraphs (a) through (g), be considered as directly owned by such person provided, however, that (i) an Ownership Interest constructively owned by an individual by reason of paragraph (a) shall not be considered as owned by
him for purposes of again applying paragraph (a) in order to make another the constructive owner of such Ownership Interest, (ii) an Ownership Interest 

 
 

D-1 

	  	     	  	 constructively owned by a partnership, estate, trust, or corporation by reason of the application of paragraphs (e) or (f) shall not be considered as owned by it
for purposes of applying paragraphs (b), (c), or (d) in order to make another the constructive owner of such Ownership Interest, (iii) if an Ownership Interest may be considered as owned by an individual under paragraphs (a) or (g), it shall be
considered as owned by him under paragraph (g), and (iv) for purposes of the above described rules, an S corporation shall be treated as a partnership and any shareholder of the S corporation shall be treated as a partner of such partnership except
that this rule shall not apply for purposes of determining whether stock in the S corporation is constructively owned by any person. 

 

	  	 i.	  	 For purposes of the above summary of the constructive ownership rules, the term “Ownership Interest” means the ownership of stock with respect to a
corporation and, with respect to any other type of entity, the ownership of an interest in either its assets or net profits. 

 

D-2 

 
SCHEDULE A

 

	  Contributor Group

	  	  Contributor Group Property

	
	  Loma Square (San Diego, CA)
	  	  Trust “A”, created under the Will of W. Arnet Speer aka William A. Speer, deceased, under the preliminary
decree of distribution of his estate, entered on December 15, 1978, in Judgment Book 1193, page 428, Superior Court of the State of California, County of San Diego, Case No. 114411

	
	  	  	  Trust “D”, created under the Will of W. Arnet Speer aka William A. Speer, deceased, under the preliminary
decree of distribution of his estate, entered on December 15, 1978, in Judgment Book 1193, page 428, Superior Court of the State of California, County of San Diego, Case No. 114411

	
	  	  	  William A. Speer, Jr. Irrevocable Trust U/A/D October 18, 1988 F/B/O Linda Speer Fortune

	
	  	  	  William A. Speer, Jr. Irrevocable Trust U/A/D October 18, 1988 F/B/O Rebecca Speer

	
	  	  	  Doreann Speer Gibson Trust U/A/D October 13, 1989

	
	  	  	  Rebecca Jean Speer Trust U/A/D November 9, 1994

	
	  	  	  HI-Loma, a California general partnership

	
	  North County Plaza (Oceanside, CA)
	  	  Cecile C. Bartman, Trustee under the Will of Bernard Citron, deceased

	
	  	  	  HI-NC, a California general partnership

	
	  	  	  The Harry J. L. Frank, Jr. and Margaret S. Frank Family Trust U/A 5/9/91

	
	  	  	  Bartfam, a California limited partnership1

	 1	  	 Received 2,201.364 limited partnership units in connection with the contribution of North County Plaza. 

	
	 	 	 CJJ Limited Partnership, a California limited
partnership2

	
	 Vineyards Marketplace (Rancho Cucamonga, CA)
	 	 Hughes Milliken Associates, a California general partnership

	
	 Bakersfield Shopping Center (Bakersfield, CA)
	 	 Hughes Investments, a California general partnership

	
	 North Mountain Village (Phoenix, AZ)
	 	 North Mountain Village Shopping Center Limited Partnership, a California limited Partnership

	
	 Mineral King Plaza (Visalia, CA)
	 	 Visalia MKP, Inc., a California corporation

	
	 	 	 Myrtle Gronske

	
	 Southern Palms Shopping Center (Tempe, AZ)
	 	 John L. Holmes Living Trust

	
	 	 	 Holmes Development Group, Inc., an Arizona corporation

	
	 Gresham Town Fair (Gresham, OR)
	 	 Gresham—RPR Associates, a California general partnership

	
	 	 	 Herb Ornelas

	
	 Media City Center (Burbank, CA)
	 	 Alexander Haagen, III

	
	 Willowbrook – KHP (Kenneth Hahn Plaza) (Los Angeles, CA)
	 	 Patricia De Angelis

	
	 El Camino North (Oceanside, CA)
	 	 Margaret Lewicki

	
	 	 	 Ernest Grossman

	2	 	Received 2,201.364 limited partnership units in connection with the contribution of North County Plaza.

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