AGREEMENT AND PLAN OF MERGER DATED AS OF SEPTEMBER 13, 2010 BY AND AMONG AMERICAN ASSETS TRUST, INC., a Maryland corporation AND THE FORWARD REIT MERGER ENTITIES as set forth on Schedule I hereto

AGREEMENT AND PLAN OF MERGER DATED AS OF SEPTEMBER 13, 2010 BY AND AMONG AMERICAN ASSETS TRUST, INC., a Maryland corporation AND THE FORWARD REIT MERGER ENTITIES as set forth on Schedule I hereto

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Table of Contents

Exhibit 10.10

AGREEMENT AND PLAN OF MERGER

DATED AS OF SEPTEMBER 13, 2010

BY AND AMONG

AMERICAN ASSETS TRUST, INC.,

a Maryland corporation

AND

THE FORWARD REIT MERGER ENTITIES

as set forth on Schedule I hereto

TABLE OF CONTENTS


			PAGE

ARTICLE I THE MERGERS			3

	Section 1.01	THE MERGERS	3
	Section 1.02	EFFECTIVE TIME	3
	Section 1.03	EFFECT OF THE MERGERS	3
	Section 1.04	ORGANIZATIONAL DOCUMENTS	3
	Section 1.05	CONVERSION OF FORWARD REIT MERGER ENTITY INTERESTS	3
	Section 1.06	CANCELLATION AND RETIREMENT OF FORWARD REIT MERGER ENTITY INTERESTS	4
	Section 1.07	FRACTIONAL INTERESTS	5
	Section 1.08	CALCULATION OF MERGER CONSIDERATION	5
	Section 1.09	TRANSACTION COSTS	5

ARTICLE II CLOSING; TERM OF AGREEMENT			5

	Section 2.01	CLOSING	5
	Section 2.02	PAYMENT OF MERGER CONSIDERATION	6
	Section 2.03	TAX WITHHOLDING	8
	Section 2.04	FURTHER ACTION	8
	Section 2.05	TERM OF THE AGREEMENT	8
	Section 2.06	EFFECT OF TERMINATION	8

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE REIT			9

	Section 3.01	ORGANIZATION; AUTHORITY	9
	Section 3.02	DUE AUTHORIZATION	9
	Section 3.03	CONSENTS AND APPROVALS	9
	Section 3.04	NO VIOLATION	10
	Section 3.05	VALIDITY OF REIT SHARES	10
	Section 3.06	REIT Charter	10
	Section 3.07	LIMITED ACTIVITIES	10
	Section 3.08	LITIGATION	10
	Section 3.09	NO BROKER	10
	Section 3.10	NO IMPLIED REPRESENTATIONS OR WARRANTIES	11

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE FORWARD REIT MERGER ENTITIES			11

	Section 4.01	ORGANIZATION; AUTHORITY	11
	Section 4.02	DUE AUTHORIZATION	12
	Section 4.03	CAPITALIZATION	12
	Section 4.04	CONSENTS AND APPROVALS	12
	Section 4.05	NO VIOLATION	12


	Section 4.06	LICENSES AND PERMITS	13
	Section 4.07	COMPLIANCE WITH LAWS	13
	Section 4.08	PROPERTIES	13
	Section 4.09	INSURANCE	14
	Section 4.10	ENVIRONMENTAL MATTERS	15
	Section 4.11	EMINENT DOMAIN	15
	Section 4.12	EXISTING LOANS	15
	Section 4.13	FRANCHISE AGREEMENTS	15
	Section 4.14	FINANCIAL STATEMENTS	15
	Section 4.15	TAXES	16
	Section 4.16	LITIGATION	16
	Section 4.17	NO INSOLVENCY PROCEEDINGS	16
	Section 4.18	SECURITIES LAW MATTERS	17
	Section 4.19	NO BROKER	17
	Section 4.20	NO IMPLIED REPRESENTATIONS OR WARRANTIES	17
	Section 4.21	OWNERSHIP OF CERTAIN ASSETS	17
	Section 4.22	SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE FORWARD REIT MERGER ENTITIES	17
	Section 4.23	NON-FOREIGN STATUS	17

ARTICLE V COVENANTS AND OTHER AGREEMENTS			17

	Section 5.01	PRE-CLOSING COVENANTS	17
	Section 5.02	CONSENT AND WAIVER OF RIGHTS UNDER ORGANIZATIONAL DOCUMENTS	19
	Section 5.03	EXCLUDED ASSETS	20

ARTICLE VI ADDITIONAL AGREEMENTS			20

	Section 6.01	COMMERCIALLY REASONABLE EFFORTS BY THE REIT AND THE FORWARD REIT MERGER ENTITIES	20
	Section 6.02	TAX MATTERS	20
	Section 6.03	WITHHOLDING CERTIFICATE	21
	Section 6.04	TAX ADVICE	21
	Section 6.05	ALTERNATE TRANSACTION	21
	Section 6.06	EXCLUSION OF ENTITIES	21

ARTICLE VII CONDITIONS PRECEDENT			22

	Section 7.01	CONDITION TO EACH PARTY’S OBLIGATIONS	22
	Section 7.02	CONDITIONS TO OBLIGATIONS OF THE FORWARD REIT MERGER ENTITIES	22
	Section 7.03	CONDITIONS TO OBLIGATION OF THE REIT	23

ARTICLE VIII GENERAL PROVISIONS			24

	Section 8.01	NOTICES	24
	Section 8.02	DEFINITIONS	24


Section 8.03	COUNTERPARTS	29
Section 8.04	ENTIRE AGREEMENT; THIRD-PARTY BENEFICIARIES	30
Section 8.05	GOVERNING LAW	30
Section 8.06	ASSIGNMENT	30
Section 8.07	JURISDICTION	30
Section 8.08	DISPUTE RESOLUTION	30
Section 8.09	SEVERABILITY	31
Section 8.10	RULES OF CONSTRUCTION	32
Section 8.11	EQUITABLE REMEDIES	32
Section 8.12	WAIVER OF SECTION 1542 PROTECTIONS	32
Section 8.13	TIME OF THE ESSENCE	33
Section 8.14	DESCRIPTIVE HEADINGS	33
Section 8.15	NO PERSONAL LIABILITY CONFERRED	33
Section 8.16	AMENDMENTS	33

iii

DEFINED TERMS


TERM		SECTION

Accredited Investor		Section 8.02(a)
Affiliate		Section 8.02(b)
Agreement		Introduction
Allocated Share		Section 8.02(c)
Alternate Transaction		Section 8.02(d)
American Assets Entity		Section 8.02(e)
Business Day		Section 8.02(f)
Certificates of Merger		Section 1.02
Closing		Section 2.01
Closing Date		Section 2.01
Code		Section 8.02(g)
Consent Form		Section 8.02(h)
Consenting Holders		Recitals
Contributed Entities		Recitals
Contributed Interest		Recitals
Contributors		Recitals
Decrease		Section 8.02(c)
Disclosed Loans		Section 4.12
Dispute		Section 8.08(a)
Effective Time		Section 1.02
Environmental Laws		Section 8.02(i)
Equity Value		Section 8.02(k)
Escrow Agreement		Section 8.02(j)
Excluded Assets		Section 5.03
Formation Transaction Documentation		Section 8.02(l)
Formation Transactions		Section 8.02(m)
Forward OP Merger Entities		Recitals
Forward REIT Merger Entity		Introduction
Forward REIT Merger Entities		Introduction
Forward REIT Merger Entity Interests		Recitals
Forward REIT Merger Entity Material Adverse Effect		Section 8.02(n)
Forward REIT Merger Entity Subsidiary		Section 4.01(b)
Franchise Agreement		Section 4.13
Governmental Authority		Section 8.02(o)
Intercompany Debt		Section 8.02(q)
Intercompany Debt Adjustments		Section 8.02(c)
IPO		Recitals
IPO Closing Date		Section 8.02(p)
IPO Price		Section 8.02(r)
JAMS		Section 8.08(b)
Laws		Section 8.02(s)
Leases		Section 4.08(d)


Liens		Section 8.02(t)
Lock-up Agreement		Section 8.02(u)
Merger Consideration		Section 1.05(a)
Mergers		Recitals
MGCL		Recitals
OP Units		Section 1.05(a)(ii)
OP Sub Forward Merger Entities		Recitals
OP Sub Reverse Merger Entities		Recitals
Operating Partnership		Recitals
Operating Partnership Agreement		Section 8.02(v)
Organizational Documents		Section 8.02(w)
Outside Date		Section 2.05
Ownership Limits		Section 1.05(a)(ii)
Permitted Liens		Section 8.02(x)
Person		Section 8.02(y)
Pre-Formation Interests		Section 8.02(z)
Pre-Formation Participants		Section 8.02(aa)
Property		Section 4.01(b)
Prospectus		Section 8.02(bb)
Rady Group		Section 7.02(d)
Rady Trust		Section 7.03(a)
Registration Statement		Section 2.05
REIT		Introduction
REIT Charter		Section 1.04
REIT Material Adverse Effect		Section 8.02(cc)
REIT Shares		Recitals
REIT Sub Forward Merger Entities		Recitals
REIT Subsidiary		Section 3.01(b)
Representation, Warranty and Indemnity Agreement		Section 8.02(dd)
SDAT		Section 1.02
SEC		Section 2.05
Securities Act		Section 8.02(ee)
Subsidiary		Section 8.02(ff)
Surviving Entity		Section 1.01
Target Asset		Section 8.02(gg)
Tax		Section 8.02(hh)
Underwriting Agreement		Section 8.02(ii)

AGREEMENT AND PLAN OF MERGER

This AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made and entered into as of September 13, 2010, by and among American Assets Trust, Inc., a Maryland corporation (the “REIT”) and the entities identified on Schedule I hereto as “Forward REIT Merger Entities” (each a “Forward REIT Merger Entity” and, collectively the “Forward REIT Merger Entities”).

RECITALS

WHEREAS, the REIT desires to consolidate the ownership of a portfolio of properties currently owned, directly or indirectly, by certain entities each as described on Schedule I hereto;

WHEREAS, pursuant to this Agreement, each Forward REIT Merger Entity will merge with and into the REIT (the “Mergers”) and the equity interest in each Forward REIT Merger Entity (the “Forward REIT Merger Entity Interests”) will be converted automatically as set forth herein into the right to receive cash, without interest, or shares of common stock of the REIT, par value $.01 per share (the “REIT Shares”);

WHEREAS, concurrently with the execution of this Agreement, the REIT will enter into agreements and plans of merger with certain American Assets Entities identified as “REIT Sub Forward Merger Entities” on Schedule I hereto (collectively, the “REIT Sub Forward Merger Entities”), pursuant to which, concurrently with the mergers identified in the preceding paragraph, each REIT Sub Forward Merger Entity will merge with and into wholly-owned subsidiaries of the REIT;

WHEREAS, immediately following the completion of the mergers described in the preceding paragraphs, the REIT will contribute to American Assets Trust, L.P., a Maryland limited partnership (the “Operating Partnership”), (i) all of the assets, rights and obligations of the Forward REIT Merger Entities acquired by the REIT as a result of the mergers between it and the Forward REIT Merger Entities and (ii) all of the REIT’s interests in the surviving entities of the mergers of the REIT Sub Forward Merger Entities with and into wholly owned subsidiaries of the REIT;

WHEREAS, concurrently with the execution of this Agreement, the Operating Partnership, or a wholly-owned subsidiary of the Operating Partnership, will enter into a contribution agreement with certain holders (the “Contributors”) of interests in certain American Assets Entities identified as “Contributed Entities” on Schedule I hereto, pursuant to which, immediately following the completion of the mergers and contributions described in the preceding paragraphs, each Contributor shall contribute to the Operating Partnership, or a wholly-owned subsidiary of the Operating Partnership, respectively, all of the Contributor’s interests in the applicable American Assets Entity (the “Contributed Interest”), and the Operating Partnership, or such subsidiary, as applicable, shall acquire from each Contributor all of each Contributor’s right, title and interest as a holder of the Contributed Interests;

WHEREAS, concurrently with the execution of this Agreement, the Operating Partnership will enter into an agreement and plan of merger with certain American Assets

Entities identified as “Forward OP Merger Entities” on Schedule I hereto (collectively, the “Forward OP Merger Entities”), pursuant to which, immediately following the mergers and contributions identified in the preceding paragraphs, each Forward OP Merger Entity will merge with and into the Operating Partnership in the order set forth in the merger agreement for such entities;

WHEREAS, concurrently with the execution of this Agreement, the Operating Partnership will enter into agreements and plans of merger with certain American Assets Entities identified as “OP Sub Forward Merger Entities” on Schedule I hereto (collectively, the “OP Sub Forward Merger Entities”), pursuant to which, immediately following the mergers and contributions identified in the preceding paragraphs, each OP Sub Forward Merger Entity will merge with and into a separate wholly-owned subsidiary of the Operating Partnership;

WHEREAS, concurrently with the execution of this Agreement, the Operating Partnership will enter into agreements and plans of merger with certain American Assets Entities identified as “OP Sub Reverse Merger Entities” on Schedule I hereto (collectively, the “OP Sub Reverse Merger Entities”), pursuant to which, immediately following the mergers and contributions identified in the preceding paragraphs, a separate wholly-owned subsidiary of the Operating Partnership will merge with and into each OP Sub Reverse Merger Entity;

WHEREAS, in lieu of one or more of the mergers described in the preceding paragraphs and at the same time as such mergers would have otherwise occurred, certain holders (the “Consenting Holders”) of interests in certain American Assets Entities shall contribute to the Operating Partnership, or a wholly-owned subsidiary of the Operating Partnership, all of their interests in the applicable American Assets Entity, and the Operating Partnership, or such subsidiary, shall acquire from each Consenting Holder, all of each Consenting Holder’s right, title and interest as a holder of interests in such American Assets Entities;

WHEREAS, the Formation Transactions relate to the proposed initial public offering (the “IPO”) of the REIT Shares, following which the REIT will operate as a self-administered and self-managed real estate investment trust within the meaning of Section 856 of the Code;

WHEREAS, in accordance with applicable state law for each of the Forward REIT Merger Entities, each Forward REIT Merger Entity may be merged with another entity, subject to the requisite approvals as provided in applicable state law;

WHEREAS, the board of directors of the REIT has determined that it is advisable and in the best interest of the REIT to proceed with the Mergers, and the board of directors of the REIT and its sole stockholder have approved and authorized the Mergers and the other Formation Transactions in accordance with Maryland General Corporation Law (the “MGCL”) and its charter and bylaws;

WHEREAS, the board of directors of each Forward REIT Merger Entity has each determined that it is advisable and in the best interests of such Forward REIT Merger Entity and its respective equity holders to proceed with the Mergers and the other Formation Transactions on the terms described in this Agreement; and

WHEREAS, each Forward REIT Merger Entity has obtained the requisite approval of its respective stockholders (and lenders, as applicable) to the Mergers and the other Formation Transactions, applicable to each Forward REIT Merger Entity.

NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and other terms contained in this Agreement, the parties hereto, intending to be legally bound hereby, agree as follows:

ARTICLE I

THE MERGERS

Section 1.01 THE MERGERS. At the Effective Time (as defined below), and subject to and upon the terms and conditions of this Agreement and in accordance with applicable Laws, each Forward REIT Merger Entity shall be merged with and into the REIT in the order specified in Exhibit D, whereby the separate existence of each Forward REIT Merger Entity shall cease, and the REIT shall continue its existence under Maryland law as the surviving entity (hereinafter sometimes referred to as the “Surviving Entity”).

Section 1.02 EFFECTIVE TIME. Subject to and upon the terms and conditions of this Agreement, concurrently with or as soon as practicable after (i) the execution by the REIT and the Operating Partnership of the Underwriting Agreement and (ii) the satisfaction or waiver of the conditions set forth in Article VII, the REIT and each of the Forward REIT Merger Entities shall file articles of merger or similar documents with respect to each Merger (the “Certificates of Merger”) as may be required by applicable Laws, with the State Department of Assessments and Taxation of Maryland (“SDAT”), the Secretary of State of the State of Delaware, and each other jurisdiction applicable to each Forward REIT Merger Entity providing that each Merger shall become effective upon filing or at such later date and time set forth in the Certificate of Merger with respect to such Merger that is not more than thirty (30) days after the acceptance of the Certificate of Merger by the SDAT for record (the “Effective Time”), together with any certificates and other filings or recordings related thereto, in such forms as are required by, and executed in accordance with the relevant provisions of applicable Laws.

Section 1.03 EFFECT OF THE MERGERS. At the Effective Times, which shall be in the order specified in Exhibit D, the effect of the Mergers shall be as provided in this Agreement, the Certificates of Merger and applicable Laws.

Section 1.04 ORGANIZATIONAL DOCUMENTS. At the Effective Time, (i) the charter of the REIT, as in effect immediately prior to the Effective Time (the “REIT Charter”), shall be the charter of the Surviving Entity until thereafter amended as provided therein or in accordance with the MGCL, and (ii) the bylaws of the REIT, as in effect immediately prior to the Effective Time, shall be the bylaws of the Surviving Entity until thereafter amended as provided therein or in accordance with the MGCL.

Section 1.05 CONVERSION OF FORWARD REIT MERGER ENTITY INTERESTS.

(a) Under and subject to the terms and conditions of the respective Formation Transaction Documentation each Pre-Formation Participant is irrevocably bound to accept and

entitled to receive, as a result of and upon consummation of the Mergers or other Formation Transactions, a specified share of the sponsors’ value of the American Assets Entities as a whole in the form of the right to receive cash or REIT Shares as calculated in this Section 1.05.

At the Effective Time, by virtue of the Mergers and without any action on the part of the parties hereto, except as set forth in Section 1.05(b), each Forward REIT Merger Entity Interest shall be converted automatically into the right to receive cash or REIT Shares (or OP Units, as provided in clause (ii) of the following sentence) with an aggregate value equal to the portion of Equity Value represented by such Forward REIT Merger Entity Interest (collectively referred to as the “Merger Consideration”) and each holder that receives OP Units in the Mergers shall, upon receipt of such OP Units and the delivery of a Consent Form or a counterpart signature page to the Operating Partnership Agreement and such other documents and instruments as may be required in the sole discretion of the REIT to effect such holder’s admission as a limited partner of the Operating Partnership, be admitted as a limited partner of the Operating Partnership in accordance with the Maryland Revised Uniform Limited Partnership Act and the Operating Partnership Agreement.

Subject to Section 1.07 and Section 2.02(c), the amount of cash or REIT Shares comprising the Merger Consideration for each Forward REIT Merger Entity Interest so converted shall be as follows:

(i) Cash: One hundred percent (100%) of the Allocated Share for each Forward REIT Merger Entity Interest held by a Pre-Formation Participant who is not an Accredited Investor shall be paid in cash.

(ii) REIT Shares. The Allocated Share for each Forward REIT Merger Entity Interest held by a Pre-Formation Participant who is an Accredited Investor shall be distributed in the form of a number of REIT Shares equal to the Allocated Share divided by the IPO Price; provided that, subject to Section 7.02(d), to the extent such distribution of REIT Shares to the holder of the Forward REIT Merger Entity Interests would result in a violation of the restrictions on ownership and transfer set forth in Section 6.3 of the REIT’s charter (the “Ownership Limits”), such holder shall receive (x) the maximum number of whole REIT Shares that would not result in such a violation of the Ownership Limits, and (y) that number of common units of partnership interests in the Operating Partnership (the “OP Units”) equal to the remaining number of REIT Shares not distributed as a result of the application of the foregoing clause (x).

(b) Each Forward REIT Merger Entity Interest issued and outstanding immediately prior to the Effective Time that is owned by the REIT, the Operating Partnership or any of their direct or indirect wholly-owned Subsidiaries (having been previously acquired by the REIT, the Operating Partnership or any such Subsidiary thereof pursuant to the other Formation Transactions) shall remain issued and outstanding, and no consideration shall be delivered hereunder in exchange therefor.

Section 1.06 CANCELLATION AND RETIREMENT OF FORWARD REIT MERGER ENTITY INTERESTS . From and after the Effective Time, (i) each Forward REIT Merger Entity Interest converted into the right to receive the Merger

Consideration pursuant to Section 1.05(a) shall no longer be outstanding and shall automatically be cancelled and retired and shall cease to exist, and each holder of such Forward REIT Merger Entity Interest so converted shall thereafter cease to have any rights as a partner or member of any Forward REIT Merger Entity except the right to receive the Merger Consideration applicable thereto, and (ii) each Forward REIT Merger Entity Interest issued and outstanding that is owned by the REIT, the Operating Partnership or any of their direct or indirect wholly-owned Subsidiaries shall no longer be outstanding and shall automatically be cancelled and retired and shall cease to exist and no consideration shall be delivered hereunder in exchange therefor.

Section 1.07 FRACTIONAL INTERESTS. No fractional REIT Shares or OP Units shall be issued in the Mergers. All fractional REIT Shares that a holder of Forward REIT Merger Entity Interests would otherwise be entitled to receive as a result of the Mergers and the other Formation Transactions shall be aggregated, and each holder shall receive the number of whole REIT Shares resulting from such aggregation and, in lieu of any fractional REIT Share resulting from such aggregation, an amount in cash determined by multiplying that fraction of a REIT Share to which such holder would otherwise have been entitled, by the IPO Price. All fractional OP Units that a holder of Forward REIT Merger Entity Interests would otherwise be entitled to receive as a result of the Mergers and the other Formation Transactions shall be aggregated, and each holder shall receive the number of whole OP Units resulting from such aggregation and, in lieu of any fractional OP Unit resulting from such aggregation, an amount in cash determined by multiplying that fraction of an OP Unit to which such holder would otherwise have been entitled, by the IPO Price. No interest will be paid or will accrue on any cash paid or payable in lieu of any fractional REIT Share.

Section 1.08 CALCULATION OF MERGER CONSIDERATION. As soon as practicable following the determination of the IPO Price and prior to the Effective Time, all calculations relating to the Merger Consideration shall be performed in good faith by, or under the direction of, the REIT, and, absent manifest error, shall be final and binding upon the holders of Forward REIT Merger Entity Interests.

Section 1.09 TRANSACTION COSTS. If the Closing occurs, the REIT and the Operating Partnership shall be solely responsible for all transaction costs and expenses of the REIT, the Operating Partnership and the American Assets Entities in connection with the Formation Transactions and the IPO, which include, but are not limited to, the underwriting discounts and commissions. In the event the Closing does not occur, each party shall be responsible for its allocable portion of such costs and expenses in accordance with the terms of those certain letter agreements identified on Schedule II.

ARTICLE II

CLOSING; TERM OF AGREEMENT

Section 2.01 CLOSING. Unless this Agreement shall have been terminated pursuant to Section 2.05, and subject to the satisfaction or waiver of the conditions in Article VII, the filing of the Certificates of Merger, the Effective Time and the closing of the other transactions contemplated by this Agreement shall occur substantially concurrently with the receipt by the REIT of the proceeds from the IPO from the underwriters (the “Closing” or the

“Closing Date”) in the order set forth on Exhibit D. The Closing shall take place at the offices of Xxxxxx & Xxxxxxx LLP, 00000 Xxxx Xxxxx Xxxxx, Xxxxx 000 Xxx Xxxxx, Xxxxxxxxxx 00000 or such other place as determined by the REIT in its sole discretion. The Closing hereunder and the closing of the IPO shall be deemed concurrent for all purposes.

Section 2.02 PAYMENT OF MERGER CONSIDERATION.

(a) As soon as reasonably practicable after the Effective Time, the Surviving Entity (or its successor in interest) shall deliver to each holder of Forward REIT Merger Entity Interests, whose Forward REIT Merger Entity Interests have been converted into the right to receive the Merger Consideration pursuant to Section 1.05(a) hereof, the Merger Consideration payable to such holder in the amounts and form provided in Section 1.05(a) hereof. The issuance of any OP Units and admission of the recipients thereof as limited partners of the Operating Partnership pursuant to Section 1.05(a) shall be evidenced by an amendment to Exhibit A to the Operating Partnership Agreement, and the Operating Partnership shall deliver, or cause to be delivered, an executed copy of such amendment to each Pre-Formation Participant receiving OP Units hereunder. Any certificate representing REIT Shares issuable as Merger Consideration shall bear the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION, UNLESS THE TRANSFEROR DELIVERS TO THE CORPORATION AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON BENEFICIAL AND CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE PURPOSE OF THE CORPORATION’S MAINTENANCE OF ITS STATUS AS A REAL ESTATE INVESTMENT TRUST UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”). SUBJECT TO CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS EXPRESSLY PROVIDED IN THE CORPORATION’S CHARTER, (I) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF THE CORPORATION’S COMMON STOCK IN EXCESS OF [ ]% (IN VALUE OR NUMBER OF SHARES) OF THE OUTSTANDING SHARES OF COMMON STOCK OF THE CORPORATION UNLESS SUCH PERSON IS AN EXCEPTED HOLDER (IN

WHICH CASE THE EXCEPTED HOLDER LIMIT SHALL BE APPLICABLE); (II) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK OF THE CORPORATION IN EXCESS OF [ ]% OF THE VALUE OF THE TOTAL OUTSTANDING SHARES OF CAPITAL STOCK OF THE CORPORATION, UNLESS SUCH PERSON IS AN EXCEPTED HOLDER (IN WHICH CASE THE EXCEPTED HOLDER LIMIT SHALL BE APPLICABLE); (III) NO PERSON MAY BENEFICIALLY OR CONSTRUCTIVELY OWN CAPITAL STOCK THAT WOULD RESULT IN THE CORPORATION BEING “CLOSELY HELD” UNDER SECTION 856(h) OF THE CODE OR OTHERWISE CAUSE THE CORPORATION TO FAIL TO QUALIFY AS A REIT; AND (IV) NO PERSON MAY TRANSFER SHARES OF CAPITAL STOCK IF SUCH TRANSFER WOULD RESULT IN THE CAPITAL STOCK OF THE CORPORATION BEING OWNED BY FEWER THAN 100 PERSONS. ANY PERSON WHO BENEFICIALLY OR CONSTRUCTIVELY OWNS OR ATTEMPTS TO BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK WHICH CAUSES OR WILL CAUSE A PERSON TO BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF CAPITAL STOCK IN EXCESS OR IN VIOLATION OF THE ABOVE LIMITATIONS MUST IMMEDIATELY NOTIFY THE CORPORATION. IF ANY OF THE RESTRICTIONS ON TRANSFER OR OWNERSHIP SET FORTH IN (I) THROUGH (III) ABOVE ARE VIOLATED, THE SHARES OF CAPITAL STOCK REPRESENTED HEREBY WILL BE AUTOMATICALLY TRANSFERRED TO A TRUSTEE OF A TRUST FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES. IN ADDITION, THE CORPORATION MAY TAKE OTHER ACTIONS, INCLUDING REDEEMING SHARES UPON THE TERMS AND CONDITIONS SPECIFIED BY THE BOARD OF DIRECTORS IN ITS SOLE AND ABSOLUTE DISCRETION IF THE BOARD OF DIRECTORS DETERMINES THAT OWNERSHIP OR A TRANSFER OR OTHER EVENT MAY VIOLATE THE RESTRICTIONS DESCRIBED ABOVE. FURTHERMORE, UPON THE OCCURRENCE OF CERTAIN EVENTS, ATTEMPTED TRANSFERS IN VIOLATION OF THE RESTRICTIONS DESCRIBED ABOVE MAY BE VOID AB INITIO. ALL UNDERLINED TERMS IN THIS LEGEND HAVE THE MEANINGS DEFINED IN THE CHARTER OF THE CORPORATION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH, INCLUDING THE RESTRICTIONS ON TRANSFER AND OWNERSHIP, WILL BE FURNISHED TO EACH HOLDER OF CAPITAL STOCK OF THE CORPORATION ON REQUEST AND WITHOUT CHARGE. REQUESTS FOR SUCH A COPY MAY BE DIRECTED TO THE SECRETARY OF THE CORPORATION AT ITS PRINCIPAL OFFICE.

(b) The Surviving Entity (or its successor in interest) shall not be liable to any holder of a Forward REIT Merger Entity Interest for any portion of the Merger Consideration delivered to a public official pursuant to any applicable abandoned property, escheat or similar Law.

(c) It is intended that the Merger contemplated by this Agreement shall be treated as a “reorganization” within the meaning of Section 368(a) of the Code, and the regulations promulgated thereunder, and that this Agreement will be, and is, adopted as a plan of reorganization.

Section 2.03 TAX WITHHOLDING. The REIT and each Forward REIT Merger Entity shall be entitled to deduct and withhold from the consideration payable pursuant to this Agreement to any holder of a Forward REIT Merger Entity Interest such amounts required to be deducted and withheld with respect to the making of such payment under the Code or any provision of state, local or foreign tax law. To the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the holder of the Forward REIT Merger Entity Interests in respect of which such deduction and withholding was made.

Section 2.04 FURTHER ACTION. If, at any time after the Effective Time, the Surviving Entity shall determine or be advised that any deeds, bills of sale, assignments, assurances or any other actions or things are necessary or desirable to vest, perfect or confirm of record or otherwise in the Surviving Entity the right, title or interest in, to or under any of the rights, properties or assets of any Forward REIT Merger Entity acquired or to be acquired by the Surviving Entity as a result of, or in connection with, the Mergers or otherwise to carry out this Agreement, the Surviving Entity shall be authorized to execute and deliver, in the name and on behalf of any Forward REIT Merger Entity or otherwise, all such deeds, bills of sale, assignments and assurances and to take and do, in the name and on behalf of any Forward REIT Merger Entity or otherwise, all such other actions and things as may be necessary or desirable to vest, perfect or confirm any and all right, title and interest in, to and under such rights, properties or assets in the Surviving Entity or otherwise to carry out this Agreement.

Section 2.05 TERM OF THE AGREEMENT. This Agreement shall terminate automatically if (i) the initial registration statement of the REIT for the IPO (the “Registration Statement”) has not been filed with the Securities and Exchange Commission (“SEC”) by March 31, 2011, or (ii) the Mergers shall not have been consummated on or prior to December 31, 2011 (such date is hereinafter referred to as the “Outside Date”).

Section 2.06 EFFECT OF TERMINATION. In the event of termination of this Agreement for any reason, all obligations on the part of the REIT and each Forward REIT Merger Entity under this Agreement shall terminate, except that the obligations set forth in Article VIII shall survive; it being understood and agreed, however, for the avoidance of doubt, that if this Agreement is terminated because one or more of the conditions to a non-breaching party’s obligations under this Agreement are not satisfied by the Outside Date as a result of the other party’s material breach of a covenant, representation, warranty or other obligation under this Agreement or any other Formation Transaction Documentation, the non-breaching party’s right to pursue all legal remedies with respect to such breach will survive such termination unimpaired.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE REIT

The REIT hereby represents and warrants to each Forward REIT Merger Entity as follows:

Section 3.01 ORGANIZATION; AUTHORITY.

(a) The REIT has been duly incorporated and is validly existing and in good standing under the Laws of its jurisdiction of incorporation and upon the effectiveness of the REIT Charter, will have has all requisite power and authority to enter into this Agreement and the other Formation Transaction Documentation and to carry out the transactions contemplated hereby and thereby, and to own, lease and/or operate its property and to carry on its business as presently conducted and, to the extent required under applicable Laws, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its property make such qualification necessary, other than such failures to be so qualified as would not, individually or in the aggregate, reasonably be expected to have a REIT Material Adverse Effect.

(b) Schedule 3.01(b) sets forth as of the date hereof, (i) each Subsidiary of the REIT (each a “REIT Subsidiary”), (ii) the ownership interest therein of the REIT, and (iii) if not wholly owned by the REIT, the identity and ownership interest of each of the other owners of such REIT Subsidiary. Each REIT Subsidiary has been duly organized or formed and is validly existing and is in good standing under the Laws of its jurisdiction of organization or formation, as applicable, has all requisite power and authority to own, lease and/or operate its property and to carry on its business as presently conducted and, to the extent required under applicable Laws, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its property make such qualification necessary, other than such failures to be so qualified as would not, individually or in the aggregate, reasonably be expected to have a REIT Material Adverse Effect.

Section 3.02 DUE AUTHORIZATION. The execution, delivery and performance of this Agreement and the other Formation Transaction Documentation (including each agreement, document and instrument executed and delivered by or on behalf of the REIT pursuant to this Agreement or the other Formation Transaction Documentation) by the REIT will have been duly and validly authorized by all necessary actions required of the REIT prior to the Closing. This Agreement, the other Formation Transaction Documentation and each agreement, document and instrument executed and delivered by or on behalf of the REIT pursuant to this Agreement or the other Formation Transaction Documentation constitutes, or when executed and delivered will constitute, the legal, valid and binding obligation of the REIT, enforceable against the REIT in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws relating to creditors’ rights and general principles of equity.

Section 3.03 CONSENTS AND APPROVALS. Except for the filing of the Certificates of Merger in accordance with Section 1.02 hereof or in connection with the IPO and the consummation of the other Formation Transactions, no consent, waiver, approval, authorization, order, license, permit or registration of, qualification, designation, declaration or filing with, any Person or Governmental Authority or under any applicable Laws is required to be obtained by the REIT in connection with the execution, delivery and performance of this Agreement and the transactions contemplated hereby and thereby, except for (i) those consents, waivers, approvals, authorizations, orders, licenses, permits, registrations, qualifications, designations, declarations or filings, the failure of which to obtain or to file would not, individually or in the aggregate, reasonably be expected to have a REIT Material Adverse Effect,

or (ii) those consents of the Pre-Formation Participants under the Organizational Documents of the applicable American Assets Entity, the failure of which to obtain would not, individually or in the aggregate, reasonably be expected to have a REIT Material Adverse Effect.

Section 3.04 NO VIOLATION. None of the execution, delivery or performance of this Agreement, the other Formation Transaction Documentation, any agreement contemplated hereby between the parties to this Agreement and the transactions contemplated hereby between the parties to this Agreement does or will, with or without the giving of notice, lapse of time, or both, violate, conflict with, result in a breach of, or constitute a default under or give to others any right of termination, acceleration, cancellation or other right under, (A) the organizational documents of the REIT, (B) any agreement, document or instrument to which the REIT or any of its assets are bound or (C) any term or provision of any judgment, order, writ, injunction, or decree binding on the REIT, except for, in the case of clause (B) or (C), any such breaches or defaults that would not, individually or in the aggregate, reasonably be expected to have a REIT Material Adverse Effect.

Section 3.05 VALIDITY OF REIT SHARES. The REIT Shares to be issued pursuant to this Agreement will have been duly authorized by the REIT and, when issued against the consideration therefor, will be validly issued, fully paid and non-assesable, free and clear of all Liens created by the by the REIT (other than any Liens created by the REIT Charter).

Section 3.06 REIT Charter. Attached as Exhibit B hereto is a true and correct copy of the REIT Charter in substantially final form.

Section 3.07 LIMITED ACTIVITIES. Except for activities in connection with the IPO, the Formation Transactions or in the ordinary course of business, the REIT and the REIT Subsidiaries have not engaged in any material business or incurred any material obligations.

Section 3.08 LITIGATION. Except for actions, suits or proceedings covered by policies of insurance there is no action, suit or proceeding pending or, to the knowledge of the REIT, threatened against the REIT or any REIT Subsidiary, other than actions, suits, proceedings arising in the ordinary course of business from the ownership and operation of the REIT, that individually or in the aggregate, would not reasonably be expected, (a) if adversely determined, to have a REIT Material Adverse Effect, or (b) to challenge or impair the ability of the REIT to execute or deliver, or materially perform its obligations under, this Agreement and the documents executed by it pursuant to this Agreement or to consummate the transactions contemplated hereby or thereby to such an extent as would result in a REIT Material Adverse Effect.

Section 3.09 NO BROKER. The REIT has not entered into, and covenants that it will not enter into, any agreement, arrangement or understanding with any Person or firm which will result in the obligation of any Forward REIT Merger Entity or any Affiliates thereof to pay any finder’s fee, brokerage commission or similar payment in connection with the transaction contemplated by this Agreement (other than underwriting discounts, commissions and other fees and expenses to be paid by the REIT in connection with the IPO and any related financing transactions).

Section 3.10 NO IMPLIED REPRESENTATIONS OR WARRANTIES. Other than the representations and warranties expressly set forth in this Article III, the REIT, shall not be deemed to have made any other representation or warranty in connection with this Agreement or the transactions contemplated hereby. All representations, warranties and covenants of the REIT contained in this Agreement shall expire at the Closing.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE FORWARD REIT MERGER ENTITIES

Except as disclosed in the Prospectus or the schedules attached hereto, each Forward REIT Merger Entity represents and warrants to the REIT that the following statements are true and correct solely with respect to such Forward REIT Merger Entity as of the Closing Date:

Section 4.01 ORGANIZATION; AUTHORITY.

(a) Each Forward REIT Merger Entity has been duly organized and is validly existing and in good standing under the Laws of its jurisdiction of incorporation or formation and has all requisite power and authority to enter into this Agreement, each agreement contemplated hereby and the other Formation Transaction Documentation to which it is a party (including any agreement, document and instrument executed and delivered by or on behalf of such Forward REIT Merger Entity pursuant to this Agreement or the other Formation Transaction Documentation) and to carry out the transactions contemplated hereby and thereby, and to own, lease and/or operate any Property owned, leased and/or operated by it and to carry on its business as presently conducted. Each Forward REIT Merger Entity, to the extent required under applicable Laws, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of a Property make such qualification necessary, other than such failures to be so qualified as would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

(b) Schedule 4.01(b) sets forth as of the date hereof with respect to such Forward REIT Merger Entity (i) each Subsidiary of such Forward REIT Merger Entity (each a “Forward REIT Merger Entity Subsidiary”), (ii) the ownership interest therein of such Forward REIT Merger Entity, (iii) if not wholly owned by such Forward REIT Merger Entity, the identity and ownership interest of each of the other owners of such Subsidiary, and (iv) each property owned or leased pursuant to a ground lease by such Forward REIT Merger Entity or such Subsidiary (each a “Property”). Such Forward REIT Merger Entity Subsidiary has been duly organized and is validly existing and is in good standing under the Laws of its jurisdiction of organization, and has all requisite power and authority to own, lease and/or operate its Property and to carry on its business as presently conducted. Such Forward REIT Merger Entity Subsidiary, to the extent required under applicable Laws, is qualified to do business and is in good standing in each jurisdiction in which the nature of its business or the character of its Property make such qualification necessary, other than such failures to be so qualified as would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

Section 4.02 DUE AUTHORIZATION. The execution, delivery and performance by such Forward REIT Merger Entity of this Agreement and the other Formation Transaction Documentation (including any agreement, document and instrument executed and delivered by or on behalf of such Forward REIT Merger Entity pursuant to this Agreement or the other Formation Transaction Documentation) to which it is a party have been duly and validly authorized by all necessary actions required of such Forward REIT Merger Entity. This Agreement, the other Formation Transaction Documentation and each agreement, document and instrument executed and delivered by or on behalf of such Forward REIT Merger Entity pursuant to this Agreement or the other Formation Transaction Documentation constitutes, or when executed and delivered will constitute, the legal, valid and binding obligation of such Forward REIT Merger Entity, each enforceable against such Forward REIT Merger Entity in accordance with its terms, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws relating to creditors’ rights and general principles of equity.

Section 4.03 CAPITALIZATION. Schedule 4.03 sets forth as of the date hereof the ownership of such Forward REIT Merger Entity. All of the issued and outstanding equity interests of such Forward REIT Merger Entity and each Forward REIT Merger Entity Subsidiary are duly authorized, validly issued and fully paid; and, to the knowledge of such Forward REIT Merger Entity, are not subject to preemptive rights, transfer restrictions, or appraisal, dissenters’ or other similar rights under the Organizational Documents of or any contract to which such Forward REIT Merger Entity is a party or otherwise bound, except for such preemptive rights, transfer restrictions, or appraisal, dissenters’ or other similar rights as would not prevent the Merger. There are no outstanding rights to purchase, subscriptions, warrants, options or any other security convertible into or exchangeable for equity interests in such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries.

Section 4.04 CONSENTS AND APPROVALS. Except as shall have been obtained or satisfied on or prior to the Closing Date, no consent, waiver, approval, authorization, order, license, permit or registration of, qualification, designation, declaration or filing with, any Person or any Governmental Authority or under any applicable Laws is required to be obtained by such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries in connection with the execution, delivery and performance of this Agreement, the other Formation Transaction Documentation to which such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries is a party and the transactions contemplated hereby and thereby, except for those consents, waivers, approvals, authorizations, orders, licenses, permits, registrations, qualifications, designations, declarations or filings, the failure of which to obtain or to file would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

Section 4.05 NO VIOLATION. None of the execution, delivery or performance of this Agreement, any agreement contemplated hereby between the parties to this Agreement and the transactions contemplated hereby between the parties to this Agreement does or will, with or without the giving of notice, lapse of time, or both, violate, conflict with, result in a breach of, or constitute a default under or give to others any right of termination, acceleration, cancellation or other right under, (A) the Organizational Documents of such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries or (B) any agreement, document or instrument to which such Forward REIT Merger Entity or its Forward REIT Merger Entity

Subsidiaries or any of their respective assets or properties are bound by or (C) any term or provision of any judgment, order, writ, injunction, or decree binding on such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries, except for, in the case of clause (B) or (C), any such breaches or defaults that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

Section 4.06 LICENSES AND PERMITS. To the knowledge of such Forward REIT Merger Entity, all notices, licenses, permits, certificates and authorizations required for the continued use, occupancy, management, leasing and operation of the Properties have been obtained or can be obtained without material cost, are in full force and effect, are in good standing and (to the extent required in connection with the transactions contemplated by the Formation Transaction Documentation) are assignable to the REIT, except in each case for items that, if not so obtained, obtainable and/or transferred, would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect. To the knowledge of such Forward REIT Merger Entity neither such Forward REIT Merger Entity, nor its Forward REIT Merger Entity Subsidiaries, nor any third party has taken any action that (or failed to take any action the omission of which) would result in the revocation of any such notice, license, permit, certificate or authorization where such revocation or revocations would, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect, nor has any one of them received any written notice of violation from any Governmental Authority or written notice of the intention of any entity to revoke any such notice, license, permit, certificate or authorization, that in each case has not been cured or otherwise resolved to the satisfaction of such Governmental Authority or other entity and except as would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Adverse Effect.

Section 4.07 COMPLIANCE WITH LAWS. To the knowledge of such Forward REIT Merger Entity, such Forward REIT Merger Entity and its Forward REIT Merger Entity Subsidiaries have conducted their respective businesses in compliance with all applicable Laws, except for such failures that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Adverse Effect. To the knowledge of such Forward REIT Merger Entity, neither such Forward REIT Merger Entity, nor its Forward REIT Merger Entity Subsidiaries, nor any third party has been informed in writing of any continuing violation of any such Laws or that any investigation has been commenced and is continuing or is contemplated respecting any such possible violation, except in each case for violations that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

Section 4.08 PROPERTIES.

(a) Except as set forth in Schedule 4.08(a), such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiary is the insured under a policy of title insurance as the owner of, and, to the knowledge of such Forward REIT Merger Entity, such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiary is the owner of, the fee simple estate (or, in the case of certain Properties, the leasehold estate or tenancy-in-common estate) to the Property owned by such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiary, in each case free and clear of all Liens except for Permitted Liens. Prior to the

effective time of the merger contemplated hereby, neither such Forward REIT Merger Entity nor any of its Forward REIT Merger Entity Subsidiaries shall take or omit to take any action to cause any Lien to attach to any Property, except for Permitted Liens and Liens, if any, given to secure mortgage indebtedness encumbering such Property.

(b) Except for matters that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect, to the knowledge of such Forward REIT Merger Entity, (1) neither such Forward REIT Merger Entity nor its Forward REIT Merger Entity Subsidiaries, nor any other party to any material agreement affecting any Property (other than a Lease (as such term is hereinafter defined) for space within such Property), is in breach or default of any such agreement, (2) no event has occurred or has been threatened in writing, which with or without the passage of time or the giving of notice, or both, would, individually or together with all such other events, constitute a default under any such agreement, or would, individually or together with all such other events, reasonably be expected to cause the acceleration of any material obligation of any party thereto or the creation of a Lien upon any asset of such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries, except for Permitted Liens, and (3) all agreements affecting any Property required for the continued use, occupancy, management, leasing and operation of such Property (exclusive of space Leases) are valid and binding and in full force and effect, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws relating to creditors’ rights and general principles of equity.

(c) To the knowledge of such Forward REIT Merger Entity, as presently conducted, none of the operation of the buildings, fixtures and other improvements comprising a part of the Properties is in violation of any applicable building code, zoning ordinance or other “land use” Law, except for such violations that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

(d) Except for matters that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect, (1) to the knowledge of such Forward REIT Merger Entity, neither such Forward REIT Merger Entity, nor its Forward REIT Merger Entity Subsidiaries, nor any other party to any Lease, is in breach or default of any such Lease, (2) to the knowledge of such Forward REIT Merger Entity, no event has occurred or has been threatened in writing, which with or without the passage of time or the giving of notice, or both, would, individually or together with all such other events, constitute a default under any Lease or would permit termination, modification or acceleration under such Lease, and (3) to the knowledge of such Forward REIT Merger Entity, each of the leases (and all amendments thereto or modifications thereof) to which such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries is a party or by which such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries or any Property is bound or subject (collectively, the “Leases”) is valid and binding and in full force and effect, subject to applicable bankruptcy, insolvency, moratorium or other similar Laws relating to creditors’ rights and general principles of equity.

Section 4.09 INSURANCE. Such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries has in place the public liability, casualty and other insurance coverage with respect to each Property owned, leased and/or managed by it as such Forward

REIT Merger Entity reasonably deems necessary and in all cases including such coverage as is required under the terms of any continuing loan or Lease. Each of the insurance policies with respect to each Property is in full force and effect in all material respects and all premiums due and payable thereunder have been fully paid when due. To the knowledge of such Forward REIT Merger Entity, neither such Forward REIT Merger Entity nor its Forward REIT Merger Entity Subsidiaries have received from any insurance company any notices of cancellation or intent to cancel any insurance.

Section 4.10 ENVIRONMENTAL MATTERS. Except for matters that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect, to the knowledge of such Forward REIT Merger Entity, (A) such Forward REIT Merger Entity and its Forward REIT Merger Entity Subsidiaries are in compliance with all Environmental Laws, (B) neither such Forward REIT Merger Entity nor its Forward REIT Merger Entity Subsidiaries have received any written notice from any Governmental Authority or third party alleging that such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries or any Property is not in compliance with applicable Environmental Laws, and (C) there has not been a release of a hazardous substance on any of the Properties that would require investigation or remediation under applicable Environmental Laws. The representations and warranties contained in this Section 4.10 constitute the sole and exclusive representations and warranties made by such Forward REIT Merger Entity concerning environmental matters.

Section 4.11 EMINENT DOMAIN. There is no existing or, to the knowledge of such Forward REIT Merger Entity, proposed or threatened condemnation, eminent domain or similar proceeding, or private purchase in lieu of such a proceeding which would affect any of the Properties, except for such proceedings that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

Section 4.12 EXISTING LOANS. Schedule 4.12 lists, as of the date hereof, all secured loans presently encumbering the Properties or any direct or indirect interest in the applicable Forward REIT Merger Entity, and any unsecured loans relating thereto to be assumed by the REIT or any Subsidiary of the REIT at Closing (the “Disclosed Loans”).

Section 4.13 FRANCHISE AGREEMENTS. To the knowledge of such Forward REIT Merger Entity, the franchise agreement set forth on Schedule 4.13 (“Franchise Agreement”) is the only hotel franchise agreement in effect for any Property. Except as set forth on Schedule 4.13, neither the applicable Forward REIT Merger Entity nor any of its Forward REIT Merger Entity Subsidiaries, nor, to the knowledge of such Forward REIT Merger Entity, any other party to the Franchise Agreement, is in breach or default of the Franchise Agreement, except for such breach or default that would not, individually or in the aggregate, reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

Section 4.14 FINANCIAL STATEMENTS. The financial statements of such Forward REIT Merger Entity included in the Prospectus have been prepared in all material respects in accordance with generally accepted accounting principles applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto), subject, in the case of unaudited statements, to normal year-end audit adjustments, and fairly present in all material respects the financial condition and results of operations of such Forward REIT Merger Entity as of the dates indicated therein and for the periods ended as indicated therein.

Section 4.15 TAXES. Except as set forth in Schedule 4.15, (i) such Forward REIT Merger Entity and each of its Forward REIT Merger Entity Subsidiaries have timely and properly filed all Tax returns and reports required to be filed by it (after giving effect to any filing extension properly granted by a Governmental Authority having authority to do so), and all such returns and reports are accurate and complete in all material respects, and has paid (or had paid on its behalf) all Taxes as required to be paid by it, (ii) no income or material non-income Tax returns filed by such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries are the subject of a pending or ongoing audit, and (iii) except as would not have a Forward OP Merger Entity Material Adverse Effect, no deficiencies for any Taxes have been proposed, asserted or assessed against such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries, and no requests for waivers of the time to assess any such Taxes are pending. Except as set forth on Schedule 4.15, at all times since its formation, such Forward REIT Merger Entity (including any “predecessor corporation” (within the meaning of Treasury Regulations Section 1.1374-1(e)) to such Forward REIT Merger Entity) has continuously qualified as an “S corporation” within the meaning of Section 1361(a)(1) of the Code and all applicable corresponding provisions of state and local law, and no Tax authority has claimed in writing that such Forward REIT Merger Entity does not qualify as an S corporation.

Section 4.16 LITIGATION. Except for actions, suits or proceedings covered by policies of insurance, to the knowledge of such Forward REIT Merger Entity, there is no action, suit or proceeding pending or, to the knowledge of such Forward REIT Merger Entity, threatened against or affecting such Forward REIT Merger Entity, its Forward REIT Merger Entity Subsidiaries or Properties, or any officer, director, principal, managing member, general partner or Affiliate of any of the foregoing other than actions, suits, proceedings arising in the ordinary course of business from the ownership and operation, which, if adversely determined would not have a Forward REIT Merger Entity Material Adverse Effect. There is no action, suit, or proceeding pending or, to the knowledge of such Forward REIT Merger Entity, threatened against or affecting such Forward REIT Merger Entity, its Forward REIT Merger Entity Subsidiaries or any officer, director, principal, managing member, general partner or Affiliate of any of the foregoing which challenges or impairs the ability of such Forward REIT Merger Entity to execute or deliver, or materially perform its obligations under this Agreement and the documents executed by it pursuant to this Agreement or to consummate the transactions contemplated hereby or thereby. Except for matters covered by insurance, there is no judgment, decree, injunction, rule or order of a Governmental Authority outstanding against such Forward REIT Merger Entity, its Forward REIT Merger Entity Subsidiaries or any officer, director, principal, managing member or general partner of any of the foregoing in their capacity as such, or which would reasonably be expected to have a Forward REIT Merger Entity Material Adverse Effect.

Section 4.17 NO INSOLVENCY PROCEEDINGS. No attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings are pending or, to such Forward REIT Merger Entity’s knowledge, threatened against such Forward REIT Merger Entity, nor are any such proceedings contemplated by such Forward REIT Merger Entity.

Section 4.18 SECURITIES LAW MATTERS. Such Forward REIT Merger Entity acknowledges that: (i) the REIT intends the offer and issuance of REIT Shares to any Pre-Formation Participants to be exempt from registration under the Securities Act and applicable state securities laws by virtue of the status of such equity holder as an “accredited investor” (within the meaning of Rule 501(a) of Regulation D under the Securities Act) acquiring any REIT Shares in a transaction exempt from registration pursuant to Rule 506 of Regulation D under the Securities Act, and (ii) in issuing any REIT Shares pursuant to the terms of this Agreement, the REIT is relying on the representations made by each equity holder receiving REIT Shares as consideration in the Merger, which representations were set forth in Appendix D to the Request for Consent – Accredited Investor Representations Letter.

Section 4.19 NO BROKER. Such Forward REIT Merger Entity has not entered into, and it covenants that it will not enter into, any agreement, arrangement or understanding with any Person or firm which will result in the obligation of the REIT or any Affiliate to pay any finder’s fee, brokerage commission or similar payment in connection with the transaction contemplated by this Agreement (other than underwriting discounts, commissions and other fees and expenses to be paid by the REIT in connection with the IPO and any related financing transactions).

Section 4.20 NO IMPLIED REPRESENTATIONS OR WARRANTIES. Other than the representations and warranties expressly set forth in this Article IV and any other agreement entered into in connection with the Formation Transactions to which it is a party, such Forward REIT Merger Entity shall not be deemed to have made any other representation or warranty in connection with this Agreement or the transactions contemplated hereby.

Section 4.21 OWNERSHIP OF CERTAIN ASSETS. Except as set forth in Schedule 4.21, no such Forward REIT Merger Entity nor any Forward REIT Merger Entity Subsidiary owns any loan assets or other securities of any issuer except for equity interests in other American Assets Entities.

Section 4.22 SURVIVAL OF REPRESENTATIONS AND WARRANTIES OF THE FORWARD REIT MERGER ENTITIES. The parties hereto agree and acknowledge that the representations and warranties set forth in this Article IV (other than Section 4.01, Section 4.02, Section 4.03, Section 4.18 and Section 4.23) shall not survive the Closing.

Section 4.23 NON-FOREIGN STATUS. Neither the Forward REIT Merger Entity nor any Forward REIT Merger Entity Subsidiary is not a foreign person (as defined in the Code).

ARTICLE V

COVENANTS AND OTHER AGREEMENTS

Section 5.01 PRE-CLOSING COVENANTS. During the period from the date hereof to the Closing Date (except as otherwise provided for or contemplated by this Agreement or in connection with the Formation Transactions), each Forward REIT Merger Entity shall use

commercially reasonable efforts to (and shall cause each of its Forward REIT Merger Entity Subsidiaries to) conduct its businesses and operate and maintain the Properties in the ordinary course of business consistent with past practice, pay its debt obligations as they become due and payable, and use commercially reasonable efforts to preserve intact its current business organizations and preserve its relationships with customers, tenants, suppliers, advertisers and others having business dealings with it, in each case consistent with past practice. In addition, and without limiting the generality of the foregoing, during the period from the date hereof to the Closing Date and except in connection with the Formation Transactions, each Forward REIT Merger Entity shall not (and shall not permit any of its Forward REIT Merger Entity Subsidiaries to) without the prior written consent of the REIT, which consent may be withheld by the REIT in its sole discretion:

(a) (i) other than distributions to the shareholders of such Forward REIT Merger Entity in connection with such holders’ payment of any Taxes related to their ownership of the stock of the Forward REIT Merger Entity or as otherwise contemplated by this Agreement, declare, set aside or pay any dividends or distributions in respect of any Forward REIT Merger Entity Interests, except in the ordinary course of business consistent with past practice and in accordance with the applicable governing document of such Forward REIT Merger Entity, (ii) issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for any Forward REIT Merger Entity Interests or make any other changes to the equity capital structure of such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries, or (iii) purchase, redeem or otherwise acquire any Forward REIT Merger Entity Interests or interests of its Forward REIT Merger Entity Subsidiaries or any other securities thereof;

(b) issue, deliver, sell, transfer, dispose, mortgage, pledge, assign or otherwise encumber, or cause the issuance, delivery, sale, transfer, disposition, mortgage, pledge, assignment or otherwise encumbrance of, any limited liability company, partnership interests or other equity interests of such Forward REIT Merger Entity or of its Forward REIT Merger Entity Subsidiaries or any other assets of such Forward REIT Merger Entity or its Forward REIT Merger Entity Subsidiaries;

(c) amend, modify or terminate any lease, contract or other instruments relating to the Property, except in the ordinary course of business consistent with past practice;

(d) amend its certificate of formation, certificate of organization, limited partnership agreement, limited liability company agreement or operating agreement, as applicable;

(e) adopt a plan of liquidation, dissolution, merger, consolidation, restructuring, recapitalization or reorganization;

(f) materially alter the manner of keeping such Forward REIT Merger Entity’s or its Forward REIT Merger Entity Subsidiaries’ books, accounts or records or the accounting practices therein reflected;

(g) make or change any Tax elections (except that, if applicable, such Forward REIT Merger Entity may, without the consent of the REIT, (i) terminate its election to be taxed as an S corporation up to three days prior to the expected pricing of the IPO and (ii) cause any Forward REIT Merger Entity Subsidiary that is a qualified subchapter S subsidiary to convert or merge into a wholly-owned limited liability company subsidiary of such Forward REIT Merger Entity that is a disregarded entity for federal Tax purposes); settle or compromise any claim, notice, audit report or assessment in respect of Taxes; change any annual Tax accounting period; adopt or change any method of Tax accounting; file any amended Tax return; enter into any tax allocation agreement, tax sharing agreement, tax indemnity agreement or closing agreement relating to any Tax; surrender of any right to claim a Tax refund; or consent to any extension or waiver of the statute of limitations period applicable to any Tax claim or assessment;

(h) terminate or amend any existing insurance policies affecting any Property that results in a material reduction in insurance coverage for the Property;

(i) knowingly cause or permit such Forward REIT Merger Entity to violate, or fail to use commercially reasonable efforts to cure any violation of, any applicable Laws; or

(j) authorize, commit or agree to take any of the foregoing actions.

Section 5.02 CONSENT AND WAIVER OF RIGHTS UNDER ORGANIZATIONAL DOCUMENTS. As of the Closing, each of the Forward REIT Merger Entities waives and relinquishes all rights and benefits otherwise afforded to such Forward REIT Merger Entity (a) under its Organizational Documents including, without limitation, any rights of appraisal, rights of first offer or first refusal, buy/sell agreements, put, option or similar parallel exit or dissenter rights in connection with the Formation Transactions and the IPO and any right to consent to or approve of the sale or contribution or other transaction undertaken by any equity holder of such Forward REIT Merger Entity of their Forward REIT Merger Entity Interests to the REIT or any Affiliate thereof and any and all notice provisions related thereto and (b) for claims against the REIT or the Operating Partnership for breach by any of their respective present or former officers, directors, managing members, general partners or Affiliates of their fiduciary duties or similar obligations (including duties of disclosure) to any of their respective present or former shareholders, members, partners, equity interest holders or Affiliates. Each of the Forward REIT Merger Entities acknowledges that the agreements contained herein and the transactions contemplated hereby and any actions taken in contemplation of the transactions contemplated hereby may conflict with, and may not have been contemplated by, the Organizational Documents of each of the Forward REIT Merger Entities or other agreements among one or more holders of Forward REIT Merger Entities Interests or one or more of the partners or members, as applicable, of any of the Forward REIT Merger Entities. With respect to each of the Forward REIT Merger Entities and each Property in which the Forward REIT Merger Entity Interests represent a direct or indirect interest, each of the Forward REIT Merger Entities expressly give all consents (and any consents necessary to authorize the proper parties in interest to give all consents) and waivers it is entitled to give that are necessary or desirable to facilitate the contribution or other Formation Transactions relating to such Forward REIT Merger Entity or such Property. In addition, if the transactions contemplated hereby occur, this Agreement shall be deemed to be an amendment to the Organizational

Documents of each of the Forward REIT Merger Entities to the extent the terms herein conflict with the terms thereof, including without limitation, terms with respect to allocations, distributions and the like. In the event the transactions contemplated by this Agreement do not occur, nothing in this Agreement shall be deemed to be or construed as an amendment or modification of, or commitment of any kind to amend or modify, the Organizational Documents of any of the Forward REIT Merger Entities, which shall remain in full force and effect without modification.

Section 5.03 EXCLUDED ASSETS. Prior to or, as specified on Schedule 5.03, as soon as possible following the Closing and after such amounts are reasonably determinable, each Forward REIT Merger Entity shall distribute or cause to be distributed or paid out the assets identified on Schedule 5.03 (the “Excluded Assets”).

ARTICLE VI

ADDITIONAL AGREEMENTS

Section 6.01 COMMERCIALLY REASONABLE EFFORTS BY THE REIT AND THE FORWARD REIT MERGER ENTITIES. Each of the REIT and each Forward REIT Merger Entity shall use commercially reasonable efforts and cooperate with each other in (i) promptly determining whether any filings are required to be made or consents, approvals, waivers, permits or authorizations are required to be obtained (under any applicable Law or regulation or from any Governmental Authority or third party) in connection with the transactions contemplated by this Agreement, and (ii) promptly making (or causing to be made) any such filings, in furnishing information required in connection therewith and in timely seeking to obtain any such consents, approvals, waivers, permits and authorizations.

Section 6.02 TAX MATTERS.

(a) Each Forward REIT Merger Entity and its Subsidiaries shall timely file or cause to be timely filed when due all Tax returns required to be filed by or with respect to such Person on or prior to the Closing Date and shall pay or cause to be paid all Taxes shown due thereon. All such Tax returns (including, for the avoidance of doubt, any amended Tax returns) shall be prepared in a manner consistent with past practice, except as otherwise required by applicable Law.

(b) The REIT shall prepare or cause to be prepared and file or cause to be filed all income Tax returns of each Forward REIT Merger Entity and each of their Subsidiaries which are due after the Closing Date. All such income Tax returns (including, for the avoidance of doubt, any amended Tax returns) shall be prepared in a manner consistent with past practice, except as otherwise required by applicable Law. No later than ten (10) days prior to the due date (including extensions) for filing such income Tax returns, the REIT shall deliver such income Tax returns to American Assets, Inc. for its review and approval, which shall not be unreasonably withheld.

(c) The REIT shall prepare or cause to be prepared all other Tax returns of each Forward REIT Merger Entity and each of their respective Subsidiaries.

(d) The REIT and each Forward REIT Merger Entity will each use its reasonable best efforts to cause the Merger to qualify, and will use its reasonable best efforts not to, and not to permit or cause any of its Subsidiaries to, take any action that could reasonably be expected to prevent or impede the Merger from qualifying, as a reorganization within the meaning of Section 368 of the Code.

(e) Unless otherwise required pursuant to a “determination” within the meaning of Section 1313(a) of the Code, each of the REIT and each Forward REIT Merger Entity shall report the Merger as a “reorganization” within the meaning of Section 368(a) of the Code for federal income tax purposes.

(f) Following the Merger, the REIT will comply with the record-keeping and information filing requirements of Treasury Regulation Section 1.368-3.

Section 6.03 WITHHOLDING CERTIFICATE. Prior to Closing, each Forward REIT Merger Entity shall deliver to the REIT such forms and certificates, duly executed and acknowledged, in form and substance reasonably satisfactory to the REIT (including any relevant forms or certificates provided to the Forward REIT Merger Entity by the holders of Forward REIT Merger Entity Interests), certifying that the payment of consideration in each Merger is exempt from withholding under Section 1445 of the Code and any similar withholding rules under applicable state, local or foreign Tax Laws.

Section 6.04 TAX ADVICE. The REIT makes no representations or warranties to any Forward REIT Merger Entity or any holder of a Forward REIT Merger Entity Interest regarding the Tax treatment of the Mergers or the other Formation Transactions, or with respect to any other Tax consequences to any Forward REIT Merger Entity or any holder of a Forward REIT Merger Entity Interest of this Agreement, the Mergers or the other Formation Transactions. Each Forward REIT Merger Entity acknowledges that such Forward REIT Merger Entity and the holders of Forward REIT Merger Entity Interests are relying solely on their own Tax advisors in connection with this Agreement, the Mergers and the other Formation Transactions and agreements contemplated hereby.

Section 6.05 ALTERNATE TRANSACTION. In the event that the REIT determines that a structure change is necessary, advisable or desirable, the REIT may elect, in its sole and absolute discretion, to effect the Alternate Transaction, and in such case each Forward REIT Merger Entity hereby agrees and consents to such election, without the need for the REIT to seek any further consent or action from such Forward REIT Merger Entity, and agrees that the parties shall undertake the Alternate Transaction and shall, and it shall cause its members or partners, as applicable, and Subsidiaries to, enter into such agreements as shall be necessary to consummate the Alternate Transaction.

Section 6.06 EXCLUSION OF ENTITIES. The parties hereby agree that the REIT shall have the right, in its sole discretion, to exclude any of the Forward REIT Merger Entities from the Mergers after the date hereof until the Effective Time, provided that the REIT shall provide prior written notice to such Forward REIT Merger Entity regarding such exclusion.

ARTICLE VII

CONDITIONS PRECEDENT

Section 7.01 CONDITION TO EACH PARTY’S OBLIGATIONS. The respective obligation of each party to effect the Mergers and to consummate the other transactions contemplated by this Agreement to occur on the Closing Date is subject to the satisfaction or waiver on or prior to the Effective Time of the following conditions:

(a) REGISTRATION STATEMENT. The Registration Statement shall have become effective under the Securities Act and shall not be the subject of any stop order or proceedings by the SEC seeking a stop order. This condition may not be waived by any party.

(b) NO INJUNCTION. No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, judgment, injunction, stay or other order (whether temporary, preliminary or permanent), in any case which is in effect and which prevents or prohibits consummation of any of the transactions contemplated in this Agreement nor shall any of the same brought by a Governmental Authority of competent jurisdiction be pending or threatened that seeks the foregoing.

(c) OPERATING PARTNERSHIP AGREEMENT. The Operating Partnership Agreement, in substantially the form attached hereto as Exhibit F, shall have been executed and delivered by the partners of the Operating Partnership and shall be in full force and effect and, except as contemplated by Section 2.02 or the other Formation Transaction Documents, shall not have been amended or modified.

Section 7.02 CONDITIONS TO OBLIGATIONS OF THE FORWARD REIT MERGER ENTITIES. The obligation of each Forward REIT Merger Entity to effect the Mergers and to consummate the other transactions contemplated by this Agreement to occur on the Closing Date are further subject to satisfaction of the following conditions (any of which may be waived by the Forward REIT Merger Entity, in whole or in part):

(a) REPRESENTATIONS AND WARRANTIES. Except as would not have a REIT Material Adverse Effect, each of the representations and warranties of the REIT contained in this Agreement shall be true and correct in all material respects at the Closing as if made again at that time (except to the extent that any representation or warranty speaks as of an earlier date, in which case it must be true and correct only as of that earlier date).

(b) PERFORMANCE BY THE REIT. Except as would not have a REIT Material Adverse Effect, the REIT shall have performed all agreements and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing Date.

(c) REGISTRATION RIGHTS AGREEMENT. The REIT shall have entered into the registration rights agreement substantially in the form attached as Exhibit C. This condition may not be waived by any party.

(d) OWNERSHIP WAIVER. Solely with respect to Xxxxxx X. Xxxx, or his Affiliates, immediate family members, trusts of immediate family members, estates or heirs or successors or assigns or the Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended, or its Affiliates, successors or assigns (collectively, the “Rady Group”), based on the shareholder representation letter described in Section 7.03(i), the Board of Directors of the REIT shall have granted an exception to the Common Stock Ownership Limit and the Aggregate Stock Ownership Limit set forth in the REIT Charter, providing the Rady Group with an Excepted Holder Limit (as defined in the REIT Charter) of [ ]%.

(e) FIREMAN’S FUND HEADQUARTERS. Solely with respect to the merger of Pacific Novato Assets, Inc. with and into the REIT, (i) thirty (30) days shall have passed since the execution of this Agreement and (ii) Novato FF PT Investor, LLC, a Delaware limited liability company, shall have not exercised the right of first refusal granted to it pursuant to that certain Amended and Restated Limited Liability Company Agreement of Novato FF Venture, LLC, dated as of May 15, 2007, as amended.

Section 7.03 CONDITIONS TO OBLIGATION OF THE REIT. The obligations of the REIT to effect the Mergers and to consummate the other transactions contemplated by this Agreement to occur on the Closing Date are further subject to satisfaction of the following conditions (any of which may be waived by the REIT, in whole or in part):

(a) REPRESENTATIONS AND WARRANTIES. Except as would not have a Forward REIT Merger Entity Material Adverse Effect, each of the representations and warranties of the Forward REIT Merger Entities contained in this Agreement, as well as those of the Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended (the “Rady Trust”), under the Representation, Warranty and Indemnity Agreement, shall be true and correct in all respects at the Closing as if made again at that time (except to the extent that any representation or warranty speaks as of an earlier date, in which case it must be true and correct only as of that earlier date).

(b) PERFORMANCE BY THE FORWARD REIT MERGER ENTITIES. Each Forward REIT Merger Entity shall have performed in all material respects all agreements and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing Date.

(d) CONSENTS, ETC. All necessary consents or approvals of Governmental Authorities or third parties (including lenders) for each Forward REIT Merger Entity to consummate the transactions contemplated hereby shall have been obtained.

(e) NO MATERIAL ADVERSE CHANGE. There shall have not occurred between the date hereof and the Closing Date any material adverse change in any of the assets, business, condition (financial or otherwise), results of operation or prospects of each Forward REIT Merger Entity or Forward REIT Merger Entity Subsidiary and the Properties, taken as a whole.

(f) REPRESENTATION, WARRANTY AND INDEMNITY AGREEMENT. The Rady Trust shall have entered into the Representation, Warranty and Indemnity Agreement.

(g) ESCROW AGREEMENT. The parties thereto shall have entered into the Escrow Agreement.

(h) LOCK-UP AGREEMENT. Each of the Pre-Formation Participants owning interests in each Forward REIT Merger Entity shall have entered into the Lock-Up Agreement substantially in the form attached as Exhibit E.

(i) SHAREHOLDER REPRESENTATION LETTER. The Rady Group shall have executed and delivered a letter to the REIT setting forth certain representations and undertakings related to the Rady Group’s ownership of REIT Shares in a form reasonably acceptable to the Board of Directors of the REIT and which allows the Board of Directors of the REIT to reasonably conclude that the ownership waiver and Excepted Holder Limit granted in Section 7.02(d) will not jeopardize the REIT’s status as a real estate investment trust under the Code and make the other determinations required by the REIT Charter in connection with granting such waiver and Excepted Holder Limit.

ARTICLE VIII

GENERAL PROVISIONS

Section 8.01 NOTICES. All notices and other communications under this Agreement shall be in writing and shall be deemed given when (i) delivered personally, (ii) five (5) Business Days after being mailed by certified mail, return receipt requested and postage prepaid, (iii) one (1) Business Day after being sent by a nationally recognized overnight courier or (iv) transmitted by facsimile if confirmed within twenty-four (24) hours thereafter by a signed original sent in the manner provided in clause (i), (ii) or (iii) to the parties at the following addresses (or at such other address for a party as shall be specified by notice from such party):

if to the REIT to:

American Assets Trust, Inc.

00000 Xx Xxxxxx Xxxx, Xxxxx 000

Xxx Xxxxx, Xxxxxxxxxx 00000

Facsimile: (000) 000-0000

if to a Forward REIT Merger Entity to:

00000 Xx Xxxxxx Xxxx, Xxxxx 000

Xxx Xxxxx, Xxxxxxxxxx 00000

Facsimile: (000) 000-0000

Section 8.02 DEFINITIONS. For purposes of this Agreement, the following terms shall have the following meanings.

(a) “Accredited Investor” has the meaning set forth under Regulation D of the Securities Act.

(b) “Affiliate” means, with respect to any Person, a Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the specified Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise.

(c) “Allocated Share” means the amount that would be allocated to a Pre-Formation Participant that is the holder of an interest in an American Assets Entity in accordance with the provisions of the existing Organizational Documents of such entity relating to distributions of distributable net proceeds from sales of directly or indirectly owned properties or assets, and assuming the sale of the relevant Target Asset or Target Assets that are directly or indirectly owned by such entity for a value equal to such Target Asset’s or Target Assets’ respective Equity Value(s).

Notwithstanding the foregoing, the Allocated Share of any Pre-Formation Participant shall reflect the following adjustments:

Intercompany Debt Adjustment. In calculating Allocated Share, all Intercompany Debt shall be taken into account so that the Allocated Shares of the holders of direct or indirect Pre-Formation Interests in the obligor of Intercompany Debt collectively are reduced, and the Allocated Shares of the holders of direct or indirect Pre-Formation Interests in the obligee of such Intercompany Debt collectively are increased, in each case by the amount of such Intercompany Debt (such adjustments being referred to as “Intercompany Debt Adjustments”).

Entity Specific Debt Adjustment. To the extent that Entity Specific Debt is allocated to a Target Asset, in calculating Allocated Shares of holders of direct or indirect Pre-Formation Interests in the American Assets Entity or Entities owning such Target Asset, the amount of the decrease in Equity Value of such Target Asset attributable to the allocation of such Entity Specific Debt to such Target Asset (through the operation of the formula set forth on Schedule III) (in each case, such decrease being the “Decrease”) shall be taken into account so that:

the Allocated Shares of the holders of direct or indirect Pre-Formation Interests in any obligor(s) under such Entity Specific Debt collectively shall be (i) reduced by the amount equal to the excess of (w) the amount of the Entity Specific Debt owed by such obligor over (x) the amount of the Decrease allocated pro rata to such obligor as a direct or indirect owner of the Target Asset; or (ii) increased by the amount equal to the excess of (y) the amount of the Decrease allocated pro rata to such obligor as a direct or indirect owner of the Target Asset over (z) the amount of the Entity Specific Debt owed by such obligor; and

the Allocated Shares of the holders of direct or indirect Pre-Formation Interests in American Assets Entities owning such Target Asset that are not obligors under such Entity Specific Debt collectively shall be increased by the amount equal to the amount of the Decrease allocated pro rata to such holders as direct or indirect owner of the Target Asset;

with the net effect under the foregoing clauses (a)(i), (a)(ii) and (b) being that the adverse economic impact of the Decrease shall be borne equitably by the holders of direct or indirect Pre-Formation Interests in the actual obligor(s) under such Entity Specific Debt and not by any other holder of direct or indirect Pre-Formation Interests in the American Assets Entities owning such Target Asset.

Illustrative examples of the application of the foregoing Allocated Share adjustments using hypothetical numbers are included as Example 3 and Example 4 in Appendix A to Schedule III.

(d) “Alternate Transaction” means (i) a contribution of the assets held by a Forward REIT Merger Entity to the REIT in exchange for the amount of cash and the number of REIT Shares that were to be issued pursuant to this Agreement, (ii) a contribution of the assets held by a Forward REIT Merger Entity to the Operating Partnership in exchange for the amount of cash and a number of OP Units equal to the number of REIT Shares that were to be issued pursuant to this Agreement, (iii) a contribution by each holder of direct or indirect equity interests in a Forward Merger Entity to the Operating Partnership or the REIT in exchange for the amount of cash and the number of OP Units and/or REIT Shares that would have otherwise been received by such holder of direct or indirect equity interests pursuant to this Agreement, (iv) the restructuring of the Merger as either (x) a merger of the Forward REIT Merger Entity with and into either the Operating Partnership or a wholly owned subsidiary of the REIT or the Operating Partnership or (y) a merger of a wholly owned subsidiary of either the REIT or the Operating Partnership with and into the Forward REIT Merger Entity, in each case in exchange for the amount of cash and the number of REIT Shares that were to be issued pursuant to this Agreement (or the amount of cash and a number OP Units equal to the number of REIT Shares that were to be issued pursuant to this Agreement), or (v) any other transaction pursuant to which the REIT, the Operating Partnership or any of their Subsidiaries acquire the assets held by a Forward REIT Merger Entity or each holder of direct or indirect equity interests in such Forward REIT Merger Entity in a transaction pursuant to which each holder of direct or indirect interests in such Forward REIT Merger Entity receives the amount of cash, the number of OP Units and/or the number of REIT Shares that were to be received by such holder pursuant to this Agreement (or a portion thereof equal in value to the value of the portion of such assets acquired by the REIT, the Operating Partnership or any of their Subsidiaries pursuant to such Alternate Transaction).

(e) “American Assets Entity” means a Forward OP Merger Entity, Forward REIT Merger Entity, OP Sub Reverse Merger Entity, OP Sub Forward Merger Entity, REIT Sub Forward Merger Entity, or Contributed Entity, as applicable. As used herein, “American Assets Entities” refer to each American Assets Entity, collectively.

(f) “Business Day” means any day that is not a Saturday, Sunday or legal holiday in the State of California.

(g) “Code” means the Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated or issued thereunder.

(h) “Consent Form” means the forms provided to each holder of Pre-Formation Interests to consent to the Formation Transactions and to make such holder’s irrevocable elections with respect to consideration to be received in the Formation Transactions.

(i) “Environmental Laws” means all federal, state and local Laws governing pollution or the protection of human health or the environment.

(j) “Escrow Agreement” means the Indemnity Escrow Agreement, dated as of the date hereof, by and among the REIT, the Operating Partnership and the Rady Trust.

(k) “Equity Value” has the meaning set forth in Schedule III hereto.

(l) “Formation Transaction Documentation” means all of the agreements and plans of merger (including this Agreement) relating to all target entities and all contribution agreements and related documents and agreements, substantially in the forms accompanying the Request for Consent dated July 31, 2010 and identified in Exhibit A hereto, pursuant to which all of the American Assets Entities and/or the equity interests in the American Assets Entities held by the Pre-Formation Participants are to be acquired by the REIT or the Operating Partnership, directly or indirectly, as part of the Formation Transactions.

(m) “Formation Transactions” means the transactions contemplated by this Agreement and the other Formation Transaction Documentation.

(n) “Forward REIT Merger Entity Material Adverse Effect” means any material adverse change in any of the assets, business, condition (financial or otherwise), results of operation or prospects of the applicable Forward REIT Merger Entity and each subsidiary of such Forward REIT Merger Entity, taken as a whole.

(o) “Governmental Authority” means any government or agency, bureau, board, commission, court, department, official, political subdivision, tribunal or other instrumentality of any government, whether federal, state or local, domestic or foreign.

(p) “IPO Closing Date” means the closing date of the IPO.

(q) “Intercompany Debt” means loans or advances among American Assets Entities and/or their Subsidiaries or among holders of Pre-Formation Interests on the one hand and American Assets Entities and/or their Subsidiaries on the other hand, other than those promissory notes set forth on Appendix D to Schedule III for which Del Monte Center is listed as the associated Target Asset, each of which loans or advances are set forth on Schedule IV hereto. Intercompany Debt shall not be discharged pursuant to the Formation Transactions except to the extent any such Intercompany Debt merges out of existence by operation of law as a result of such transactions (e.g., if the Operating Partnership acquires both the obligor and obligee interest in a loan which reflects an Intercompany Debt). After the closing of the Formation Transactions, and except as provided below, to the extent any such loans are acquired by the REIT, Operating Partnership or their Subsidiaries (e.g., an obligor or obligee with respect to such loans is merged with or into, or acquired by, one of such entities), the REIT, Operating Partnership or their Subsidiaries (as applicable) shall be permitted to take any actions (including repayment) with respect to such Intercompany Debt as they deem appropriate. Intercompany Debt with respect to which either the obligor or the obligee (but not both such parties) under such Intercompany Debt is acquired, directly or indirectly, by the REIT, Operating Partnership or their Subsidiaries, shall be deemed to be discharged immediately after the Formation Transactions by (i) the REIT, Operating Partnership or their Subsidiaries (as applicable) as obligor, or (ii) the obligor to the

REIT, Operating Partnership or their Subsidiaries (as applicable) as obligee, in each case in exchange for the consideration payable as set forth in the applicable Formation Transaction Documentation. The amounts payable and receivable with respect to each item of Intercompany Debt shall be determined by the REIT, for purposes of determining the Intercompany Debt Adjustments, within forty five (45) days prior to the date of the preliminary prospectus used in the IPO roadshow based on its good faith estimate of what such amounts will be as of the IPO Closing Date.

(r) “IPO Price” means the initial public offering price of a REIT Share in the IPO.

(s) “Laws” means laws, statutes, rules, regulations, codes, orders, ordinances, judgments, injunctions, decrees and policies of any Governmental Authority, including, without limitation, zoning, land use or other similar rules or ordinances.

(t) “Liens” means all pledges, claims, liens, charges, restrictions, controls, easements, rights of way, exceptions, reservations, leases, licenses, grants, covenants and conditions, encumbrances and security interests of any kind or nature whatsoever.

(u) “Lock-Up Agreement” means that certain Lock-Up Agreement, by and between the underwriters and each investor of the REIT and/or the Operating Partnership.

(v) “Operating Partnership Agreement” means the agreement of limited partnership of the Operating Partnership, as amended and restated and in effect immediately prior to the Effective Time.

(w) “Organizational Documents” means the certificate of formation, certificate of incorporation and bylaws, certificate of limited partnership and limited partnership agreement, limited liability company agreement or operating agreement, of each Forward REIT Merger Entity or Forward REIT Merger Entity Subsidiary, as applicable.

(x) “Permitted Liens” means (i) Liens, or deposits made to secure the release of such Liens, securing Taxes, the payment of which is not delinquent or the payment of which (including, without limitation, the amount or validity thereof) is being contested in good faith by appropriate proceedings for which adequate reserves have been made in accordance with GAAP; (ii) zoning, entitlement, building and other land use Laws imposed by governmental agencies having jurisdiction over the Properties; (iii) covenants, conditions, restrictions, easements for public utilities, encroachments, rights of access or other non-monetary matters that do not materially impair the use of the Properties for the purposes for which they are currently being used or proposed to be used in connection with the relevant Person’s business; (iv) Liens securing financing or credit arrangements existing as of the Closing Date; (v) Liens arising under leases in effect as of the Closing Date; (vi) any exceptions contained in any title policy (including any policy issued to a secured lender) relating to the Properties as of the Closing Date; (vii) mechanics’, carriers’, workers’, repairers’ and similar Liens arising or incurred in the ordinary course of business that are not yet due and payable and which are not, in the aggregate, material to the business, operations and financial condition of the Properties so encumbered; and (viii) any matters that would not have a Forward REIT Merger Entity Material Adverse Effect.

(y) “Person” means an individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization or other entity.

(z) “Pre-Formation Interests” means the interests held by the Pre-Formation Participants in the American Assets Entities.

(aa) “Pre-Formation Participants” means the holders of the direct and indirect equity interests in the relevant American Assets Entities immediately prior to the Formation Transactions.

(bb) “Prospectus” means the REIT’s final prospectus as filed with the SEC.

(cc) “REIT Material Adverse Effect” means any material adverse change in any of the assets, business, condition (financial or otherwise), results of operation or prospects of the REIT and each REIT Subsidiary, taken as a whole.

(dd) “Representation, Warranty and Indemnity Agreement” means the Representation, Warranty and Indemnity Agreement, dated as of the date hereof, by and among the REIT, the Operating Partnership and the Rady Trust.

(ee) “Securities Act” means the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder.

(ff) “Subsidiary” of any Person means any corporation, partnership, limited liability company, joint venture, trust or other legal entity of which such Person owns (either directly or through or together with another Subsidiary of such Person) either (i) a general partner, managing member or other similar interest, or (ii)(A) ten percent (10%) or more of the voting power of the voting capital stock or other equity interests, or (B) ten percent (10%) or more of the outstanding voting capital stock or other voting equity interests of such corporation, partnership, limited liability company, joint venture or other legal entity.

(gg) “Target Asset” has the meaning set forth in Schedule III hereto.

(hh) “Tax” means all federal, state, local and foreign income, gross receipts, license, property, withholding, sales, franchise, employment, payroll, goods and services, stamp, environmental, customs duties, capital stock, social security, transfer, alternative minimum, excise and other taxes, tariffs or governmental charges of any nature whatsoever, including estimated taxes, together with penalties, interest or additions to Tax with respect thereto, whether or not disputed.

(ii) “Underwriting Agreement” means that certain underwriting agreement, by and between the REIT, the Operating Partnership and certain underwriters set forth therein, pursuant to which the REIT will issue and sell shares in the IPO.

Section 8.03 COUNTERPARTS. This Agreement may be executed in counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each party and delivered to each other party.

Section 8.04 ENTIRE AGREEMENT; THIRD-PARTY BENEFICIARIES. This Agreement, the other Formation Transaction Documentation and the Consent Forms to which the parties hereto are a party, including, without limitation, the exhibits and schedules hereto and thereto, constitute the entire agreement and, except as set forth in Section 1.09, supersede each prior agreement and understanding, whether written or oral, among the parties regarding the subject matter of this Agreement. This Agreement is not intended to confer any rights or remedies on any Person other than the parties hereto.

Section 8.05 GOVERNING LAW. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of California, regardless of any Laws that might otherwise govern under applicable principles of conflicts of laws thereof.

Section 8.06 ASSIGNMENT. This Agreement shall be binding upon, and shall be enforceable by and inure to the benefit of, the parties hereto and their respective heirs, legal representatives, successors and assigns; provided, however, that this Agreement may not be assigned (except by operation of law) by any party without the prior written consent of the other parties, and any attempted assignment without such consent shall be null and void and of no force and effect, except that the REIT may assign its rights and obligations hereunder to an Affiliate.

Section 8.07 JURISDICTION. The parties hereto hereby (a) submit to the exclusive jurisdiction of any state or federal court sitting in the County of San Diego, with respect to any dispute arising out of this Agreement or any transaction contemplated hereby to the extent such courts would have subject matter jurisdiction with respect to such dispute and (b) irrevocably waive, and agree not to assert by way of motion, defense, or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the action is brought in an inconvenient forum, or that the venue of the action is improper.

Section 8.08 DISPUTE RESOLUTION. The parties intend that this Section 8.08 will be valid, binding, enforceable, exclusive and irrevocable and that it shall survive any termination of this Agreement.

(a) Upon any dispute, controversy or claim arising out of or relating to this Agreement or the enforcement, breach, termination or validity thereof (“Dispute”), the party raising the Dispute will give written notice to the other parties to the Dispute describing the nature of the Dispute following which the parties to such Dispute shall attempt for a period of ten (10) Business Days from receipt by the parties of notice of such Dispute to resolve such Dispute by negotiation between representatives of the parties hereto who have authority to settle such Dispute. All such negotiations shall be confidential and any statements or offers made therein shall be treated as compromise and settlement negotiations for purposes of any applicable rules of evidence and shall not be admissible as evidence in any subsequent proceeding for any purpose. The statute of limitations applicable to the commencement of a lawsuit shall apply to the commencement of an arbitration hereunder, except that no defense based on the running of the statute of limitations will be available based upon the passage of time during any such negotiation. Regardless of the foregoing, a party shall have the right to seek immediate injunctive relief pursuant to Section 8.08(c) below without regard to any such ten (10) Business Day negotiation period.

(b) Any Dispute (including the determination of the scope or applicability of this agreement to arbitrate) that is not resolved pursuant to Section 8.08(a) above shall be submitted to final and binding arbitration in California before one neutral and impartial arbitrator, in accordance with the Laws of the State of California for agreements made in and to be performed in that State. The arbitration shall be administered by JAMS, Inc. (“JAMS”) pursuant to its Comprehensive Arbitration Rules and Procedures, as in effect on the date hereof. Each of the REIT, on the one hand, and any Forward REIT Merger Entity, on the other hand, shall appoint one arbitrator within fifteen (15) days of a demand for arbitration. If the REIT and any Forward REIT Merger Entity cannot mutually agree upon an arbitrator within such 15-day period, the arbitrator shall be appointed by JAMS in accordance with its Comprehensive Arbitration Rules and Procedures, as in effect on the date hereof. The arbitrator shall designate the place and time of the hearing. The hearing shall be scheduled to begin as soon as practicable and no later than sixty (60) days after the appointment of the arbitrator (unless such period is extended by the arbitrator for good cause shown) and shall be conducted as expeditiously as possible. The award, which shall set forth the arbitrator’s findings of fact and conclusions of law, shall be filed with JAMS and mailed to the parties no later than thirty (30) days after the close of the arbitration hearing. The arbitration award shall be final and binding on the parties and not subject to collateral attack. Judgment upon the arbitration award may be entered in any federal or state court having jurisdiction thereof.

(c) Notwithstanding the parties’ agreement to submit all Disputes to final and binding arbitration before JAMS, the parties shall have the right to seek and obtain temporary or preliminary injunctive relief in any court having jurisdiction thereof. Such courts shall have authority to, among other things, grant temporary or provisional injunctive relief in order to protect any party’s rights under this Agreement. Without prejudice to such provisional remedies as may be available under the jurisdiction of a court, the arbitral tribunal shall have full authority to grant provisional remedies and to direct the parties to request that any court modify or vacate any temporary or preliminary relief issued by such court, and to award damages for the failure of any party to respect the arbitral tribunal’s orders to that effect.

(d) The prevailing party shall be entitled to recover its costs and reasonable attorneys’ fees, and the non-prevailing party shall pay all expenses and fees of JAMS, all costs of the stenographic record, all expenses of witnesses or proofs that may have been produced at the direction of the arbitrator, and the fees, costs, and expenses of the arbitrator. The arbitrator shall allocate such costs and designate the prevailing party or parties for these purposes.

Section 8.09 SEVERABILITY. Each provision of this Agreement will be interpreted so as to be effective and valid under applicable law, but if any provision is held invalid, illegal or unenforceable under applicable law in any jurisdiction, then such invalidity, illegality or unenforceability will not affect any other provision, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been included herein.

Section 8.10 RULES OF CONSTRUCTION.

(a) The parties hereto agree that they have had the opportunity to be represented by counsel during the negotiation, preparation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

(b) The words “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 article, section, paragraph, exhibit and schedule references are to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise specified. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” All terms defined in this Agreement shall have the defined meanings contained herein when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. Unless explicitly stated otherwise herein, any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time, amended, qualified or supplemented, including (in the case of agreements and instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and all attachments thereto and instruments incorporated therein. References to a Person are also to its permitted successors and assigns.

Section 8.11 EQUITABLE REMEDIES. The parties agree that irreparable damage would occur to the REIT in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the REIT shall be entitled to an injunction or injunctions to prevent breaches of this Agreement by any Forward REIT Merger Entity and to enforce specifically the terms and provisions hereof in any federal or state court located in California, this being in addition to any other remedy to which the REIT is entitled under this Agreement or otherwise at law or in equity.

Section 8.12 WAIVER OF SECTION 1542 PROTECTIONS. As of the Closing, each Forward REIT Merger Entity expressly acknowledges that it has had, or has had and waived, the opportunity to be advised by independent legal counsel and hereby waives and relinquishes all rights and benefits afforded by Section 1542 of the California Civil Code and does so understanding and acknowledging the significance and consequence of such specific waiver of Section 1542 which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

Section 8.13 TIME OF THE ESSENCE. Time is of the essence with respect to all obligations under this Agreement.

Section 8.14 DESCRIPTIVE HEADINGS. The descriptive headings herein are inserted for convenience only and are not intended to be part of or to affect the meaning or interpretation of this Agreement.

Section 8.15 NO PERSONAL LIABILITY CONFERRED. This Agreement shall not create or permit any personal liability or obligation on the part of any officer, director, partner, employee or shareholder of the REIT or any Forward REIT Merger Entity.

Section 8.16 AMENDMENTS. This Agreement may be amended by appropriate instrument, without the consent of any Forward REIT Merger Entity, at any time prior to the Effective Time; provided, that no such amendment, modification or supplement shall be made that alters the amount or changes the form of the consideration to be delivered to a Forward REIT Merger Agreement Entity, without the prior written consent of the Forward REIT Merger Agreement Entity adversely affected by such proposed amendment, modification or supplement.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective duly authorized officers, all as of the date first written above.


AMERICAN ASSETS TRUST, INC.,
a Maryland corporation

By:		/s/ Xxxx X. Xxxxxxxxxxx
Name: Xxxx X. Xxxxxxxxxxx
Title: President

EACH FORWARD REIT MERGER ENTITY LISTED ON SCHEDULE I HERETO

By:		AMERICAN ASSETS TRUST, INC., a Maryland corporation, its attorney-in-fact

By:		/s/ Xxxx X. Xxxxxxxxxxx
Name: Xxxx X. Xxxxxxxxxxx
Title: President

[Signature Page to Forward REIT Merger Agreement]

Schedule I

List of Forward OP Merger Entities:

Solana Beach Towne Centres Investments, L.P.

Pacific San Xxxx Holdings, L.P.

Pacific Sorrento Mesa Holdings, L.P.

Hillside 104, a California limited partnership

Hillside 276, a California limited partnership

Desert Hillside Holdings, LLC

BWH Holdings, LLC

Waikele Center Holdings, LP

List of Forward REIT Merger Entities:

Pacific Stonecrest Assets, Inc.

Pacific National City Assets, Inc.

Western Assets, Inc.

Pacific Towne Centre Assets, Inc.

Pacific Oceanside Assets, Inc.

Pacific San Xxxx Assets, Inc.

KMBC Assets, Inc.

Hero Retail, Inc.

Pacific Sorrento Valley Assets I, Inc.

10.

Pacific Sorrento Mesa Assets, Inc.

11.

Beach Walk Assets, Inc.

12.

ICW Plaza, Inc. [d/b/a Delaware ICW Plaza, Inc.]

13.

ICW Valencia, Inc.

14.

Pacific Torrey Reserve Assets, Inc.

15.

Landmark Assets, Inc.

16.

Landmark One Market, Inc.

17.

Pacific Novato Assets, Inc.

18.

Waikele Center Assets, Inc.

List of OP Sub Forward Merger Entities:

Pacific Stonecrest Holdings, L.P.

Rancho Carmel Plaza, a California limited partnership

Pacific Oceanside Holdings, L.P.

Kearny Mesa Business Center, a California limited partnership

Del Monte Center Holdings, LP

Beach Walk Holdings, LP

ICW Plaza, L.P., a California limited partnership

ICW Valencia, L.P.

Desert Oceanside Holdings, LLC

10.

San Diego Loma Palisades, L.P.

List of OP Sub Reverse Merger Entities:

Pacific Waikiki Holdings, L.P.

ABW Xxxxxx LLC

King Street Holdings, LP

Loma Palisades, a California general partnership

List of REIT Sub Forward Merger Entities:

Pacific Del Mar Assets, Inc.

Pacific Carmel Mountain Assets, Inc.

Pacific Solana Beach Assets, Inc.

Pacific Waikiki Assets, Inc.

King Street Assets, Inc.

Pacific Sorrento Valley Assets II, Inc.

Pacific Santa Fe Assets, Inc.

List of Contributed Entities:

American Assets Trust Management, LLC

Winrad Vista Hacienda, a California general partnership

Vista Hacienda, a California limited partnership

Pacific American Assets Holdings, L.P., a California limited partnership

Carmel Country Plaza, L.P.

Pacific Carmel Mountain Holdings, L.P.

Pacific National City Holdings, L.P.

Pacific Solana Beach Holdings, L.P.

Pacific San Xxxx Holdings, L.P.

10.

Winrad Kearny Mesa Business Center, a California general partnership

11.

Pacific Sorrento Valley Holdings I, L.P.

12.

Pacific Sorrento Mesa Holdings, L.P.

13.

Beach Walk Holdings, LP

14.

ICW Plaza, L.P., a California limited partnership

15.

ICW Valencia, L.P.

16.

Pacific Sorrento Valley Holdings II, L.P.

17.

EBW Hotel LLC

18.

Imperial Strand, a California limited partnership

19.

Winrad Imperial Strand, a California general partnership

20.

San Diego Loma Palisades, L.P.

21.

Mariner’s Point, LLC

22.

Pacific Santa Fe Holdings, L.P.

Schedule II

Reimbursement Agreements

Letter Agreement by and among American Assets, Inc. and the Property Entities (as defined therein) dated May 17, 2010

Schedule III

Calculation of Equity Value

For purposes of all Formation Transaction Documentation, “Equity Value” of any Target Asset directly or indirectly owned by the American Assets Entity subject to such agreement shall be calculated pursuant to the formula set forth below. Capitalized terms used in this Schedule III shall have the meanings set forth below and capitalized terms used herein without definition shall have the meanings assigned to such terms in the Agreement.

EV = EP × [TFTV-TPA]+AA;

where:

EV = Equity Value;

EP = Equity Percentage;

TFTV= Total Formation Transaction Value;

TPA = Total Portfolio Adjustment; and

AA = Asset Adjustment;

provided, however, that if the resulting Equity Value for a Target Asset is a negative amount (a “Net Deficit”), then the REIT shall exercise one of the following options, as determined by the REIT in its sole and absolute discretion: (i) select the Target Asset as an Eliminated Asset or (ii) if one or more entities that are subject to the Formation Transaction Documentation that are the direct or indirect owners of such Target Asset would otherwise possess Excluded Assets the value of which in the aggregate would equal or exceed the amount of such Net Deficit, increase the Target Net Working Capital with respect to such entity or entities by the absolute value of such Net Deficit; and provided further that if the REIT shall have exercised option (ii) with respect to any Target Asset, the Equity Value with respect to such Target Asset shall be deemed to be equal to zero;

provided further, that if the Equity Value for ICW Valencia/Valencia Corporate Center as calculated above would result in the holders of direct or indirect Pre-Formation Interests in ICW Valencia, L.P. having an amount of Allocated Shares, prior to the application of the Intercompany Debt Adjustments, that is less than the value of the Intercompany Debt owed by ICW Valencia, L.P. to ICW Plaza, L.P. (such shortfall being referred to as the “Intercompany Debt Shortfall”), then (i) Western Insurance Holdings, Inc. shall issue a promissory note with a term of three years to ICW Valencia, L.P. which shall be treated as an Asset Adjustment with respect to ICW Valencia/Valencia Corporate Center and such promissory note (the “WIH Note”) shall have such face amount as shall be necessary to increase the Equity Value of ICW Valencia/Valencia Corporate Center such that the Allocated Shares of holders of direct or indirect Pre-Formation Interests in ICW Valencia, L.P. shall increase by an amount, prior to the application of the Intercompany Debt Adjustments, equal to the Intercompany Debt Shortfall and (ii) the Equity Value for ICW Valencia/Valencia Corporate Center shall be recalculated to give effect to the Asset Adjustment attributable to the issuance of the WIH Note.

Attached as Appendix A to this Schedule III are illustrative calculations of Equity Value for a hypothetical portfolio of Target Assets.

“Actual Balance” shall mean: (i) with respect to each Existing Loan to be assumed in connection with the IPO, the unpaid principal amount of and past due unpaid interest on such Existing Loan as of the IPO Closing Date and immediately prior to any such assumption and all assumption fees and any related expenses with respect to such Existing Loan; and (ii) with respect to each Existing Loan to be prepaid, repaid or refinanced in connection with the IPO, the unpaid principal amount of and past due unpaid interest on such Existing Loan as of the IPO Closing Date and immediately prior to any such prepayment, repayment or refinancing and any related prepayment penalties and any related expenses; provided, however, that in the event a Target Asset is not included in the Formation Transactions pursuant to a merger (or contribution of all direct or indirect Pre-Formation Interests in such Target Asset) but a portion of the direct or indirect Pre-Formation Interests in such Target Asset is otherwise contributed to the Operating Partnership or a subsidiary of the Operating Partnership, then the Actual Balance for such Target Asset shall be proportionately adjusted to take into account the portion of the direct or indirect Pre-Formation Interests in such Target Asset that will not be so contributed. With respect to each Existing Loan to be assumed, prepaid, repaid or refinanced in connection with the Formation Transactions, the Actual Balance as of the Closing Date shall be determined by the REIT within forty five (45) days prior to the date of the preliminary prospectus used in the IPO roadshow based on its good faith estimate of what such amounts will be as of the IPO Closing Date.

“Asset Adjustment” shall mean with respect to each Target Asset and any Existing Loan relating to such Target Asset, an amount equal to the Base Balance minus the Actual Balance (expressed as a positive or negative number, as applicable) with respect to all Existing Loans relating to such Target Asset, and in the case of ICW Valencia/Valencia Corporate Center, the face value of the WIH Note shall be deemed to reduce the Actual Balance of the Existing Loan relating to ICW Valencia/Valencia Corporate Center.

“Base Balance” shall mean with respect to each Existing Loan, the principal amount of such Existing Loan set forth on Appendix C to this Schedule III; provided, however, that in the event a Target Asset is not included in the Formation Transactions pursuant to a merger (or contribution of all direct or indirect Pre-Formation Interests in such Target Asset) but a portion of the direct or indirect Pre-Formation Interests in such Target Asset is otherwise contributed to the Operating Partnership or a subsidiary of the Operating Partnership, then the Base Balance for such Target Asset shall be proportionately adjusted to take into account the portion of the direct or indirect Pre-Formation Interests in such Target Asset that will not be so contributed.

“Eliminated Asset” shall mean any Target Asset subject to the Formation Transaction Documentation that is excluded pursuant to the terms of the Formation Transaction Documentation from the Formation Transactions.

“Equity Percentage” shall mean with respect to each Target Asset, the percentage (expressed as a decimal) set forth opposite the name of such Target Asset on Appendix B to this Schedule III (which percentage is based on the Fairness Opinion of Duff & Xxxxxx, LLC and represents such

Target Asset’s percentage of the net asset values of the Target Assets (other than the Management Company) and the net equity value of the Management Company, taken as a whole); provided, however, that in the event a Target Asset is selected as or otherwise becomes for any reason an Eliminated Asset, then: (i) the Equity Percentage for each remaining Target Asset shall be recalculated as a fraction, the numerator of which is the original Equity Percentage for such remaining Target Asset and the denominator of which is (A) 100 minus (B) the original Equity Percentage of the Eliminated Asset; and (ii) the Equity Percentage of the Eliminated Asset shall be zero; and provided, further, that in the event a Target Asset is not included in the Formation Transactions pursuant to a merger (or contribution of all direct or indirect Pre-Formation Interests in such Target Asset) but a portion of the direct or indirect Pre-Formation Interests in such Target Asset is otherwise contributed to the Operating Partnership or a subsidiary of the Operating Partnership, then, after giving effect to any Eliminated Assets pursuant to the preceding proviso, the Equity Percentage for such Target Asset and for each other remaining Target Asset subject directly or indirectly to the Formation Transaction Documentation shall be proportionately adjusted to take into account the portion of the direct or indirect Pre-Formation Interests in such Target Asset that will not be so contributed.

“Excluded Assets” has the meaning set forth in Section 5.03 to the Agreement.

“Existing Loan” shall mean (i) each mortgage or mezzanine loan secured by a Target Asset listed on Appendix C to this Schedule III and (ii) all unsecured indebtedness of an American Assets Entity or of an entity in which an American Assets Entity has a direct or indirect interest that will be assumed, prepaid, repaid or refinanced in connection with the IPO and that is set forth on Appendix D to this Schedule III (all indebtedness falling within the scope of this clause (ii) shall be referred to as “Entity Specific Debt”); for the avoidance of doubt, no Intercompany Debt shall constitute an Existing Loan (in order to avoid double counting, as Intercompany Debt is adjusted for through the definition of “Allocated Share”). Existing Entity Specific Debt will be deemed to relate to the Target Asset(s) and, if to multiple Target Assets, in the proportions set forth opposite the name of such Entity Specific Debt on Appendix D to this Schedule III, and all such Entity Specific Debt will be deemed to have a Base Balance of zero (because “Equity Percentage” as determined by Duff & Xxxxxx, LLC was determined at the property level and did not take into account Entity Specific Debt, Entity Specific Debt is deemed to be zero in order to cause a readjustment of “Equity Value” of all Target Assets after taking into account such Entity Specific Debt).

“Target Asset” shall mean each property set forth on Appendix B to this Schedule III and the property management business of American Assets, Inc. (the “Management Company”).

“Target Net Working Capital” has the meaning set forth in Schedule 5.03 to the Agreement.

“Total Portfolio Adjustment” shall mean the sum (which may be a positive or negative number) of all Asset Adjustments for every Target Asset, excluding Eliminated Assets.

“Total Formation Transaction Value” shall mean the aggregate dollar value of (i) the cash, (ii) the REIT Shares and (iii) the OP Units that are issued or issuable to all Pre-Formation Participants in the Formation Transactions as set forth in the Prospectus. Total Formation Transaction Value will be determined valuing REIT Shares and OP Units at a value per REIT Share or OP Unit equal to the IPO Price.

Appendix A to Schedule III

Worked Examples

The figures and calculations included in this Appendix A are for illustrative purposes only and are based on a hypothetical portfolio of properties. Neither the hypothetical Total Formation Transaction Value nor any of the other figures or calculations presented on Appendix A shall be binding on the REIT or the Operating Partnership, and should not be considered an indication of value of the American Assets Entities. The value of the American Assets Entities will ultimately be determined by the REIT in consultation with the underwriters of the IPO based on public investor demand and may be lower or higher than the hypothetical Total Formation Transaction Value shown on Appendix A. In addition, the calculations in Appendix A assume that each of Target Assets in this hypothetical portfolio of properties will be wholly owned, directly or indirectly, by the REIT.

Example - Base Case

In the hypothetical examples shown below, the Target Assets that will be acquired by the REIT in the Formation Transactions consist of four shopping centers. The Total Formation Transaction Value, or “TFTV,” for this entire portfolio of properties will be $400, absent the impact of certain potential adjustments described in the subsequent examples. Each Target Asset (i) is subject to a $25 mortgage, (ii) was determined by a third-party valuator to have a relative equity value equal to 25% of the entire portfolio and (iii) has two owners, each of whom has a 50% interest in the property.


Target Asset	Equity Percentage (“EP”) (determined by 3^rd party valuator)	Property Holding Companies & Ownership %
Shopping Center 1	25%		Company A (50%) Company B (50%)
Shopping Center 2	25%		Company C (50%) Company D (50%)
Shopping Center 3	25%		Company E (50%) Company F (50%)
Shopping Center 4	25%		Company G (50%) Company H (50%)
Total	100%

Applying the Equity Value formula and assuming that there is no Entity Specific Debt and no increase or decrease in mortgage debt outstanding, the Equity Value of each of the four properties is as set forth below:


Property		Equity Value = EP x [TFTV – TPA] + AA
Shopping Center 1		100 = 25% x [400 - 0] + 0
Shopping Center 2		100 = 25% x [400 - 0] + 0
Shopping Center 3		100 = 25% x [400 - 0] + 0


Shopping Center 4		100 = 25% x [400 - 0] + 0
Total Equity Value		400

Example 2 – Mortgage Payoff

In this example, all of the facts described in the Base Case above are the same, except that prior to the completion of the Formation Transactions, the $25 mortgage on Shopping Center 1 is paid off such that at the time that Shopping Center 1 is acquired by the Operating Partnership it is not subject to any mortgage debt. This results in the following variation of the variable “AA” in the formula as applied to Shopping Center 1:


Property		Asset Adjustment (“AA”) (i.e., Base Balance - Actual Balance)
Shopping Center 1		25 = 25 – 0
Shopping Center 2		0 = 25 – 25
Shopping Center 3		0 = 25 – 25
Shopping Center 4		0 = 25 – 25
Total Portfolio Adjustment (“TPA”)		25

In addition, by virtue of the reduction in the outstanding mortgage debt that will be assumed by the Operating Partnership in connection with the Formation Transactions, the Total Formation Transaction Value will have increased by the $25 value of the mortgage repayment from $400 to $425.

Applying the Equity Value formula reflecting these new facts and assuming that there is no Entity Specific Debt, the Equity Value of each of the four properties is as set forth below:


Property		Equity Value = EP x [TFTV – TPA] + AA
Shopping Center 1		125 = 25% x [425 - 25] + 25
Shopping Center 2		100 = 25% x [425 - 25] + 0
Shopping Center 3		100 = 25% x [425 - 25] + 0
Shopping Center 4		100 = 25% x [425 - 25] + 0
Total Equity Value		425

Example 3 – Entity Specific Debt

In this example, all of the facts described in the Base Case above are the same, except that Company C is subject to $25 of Entity Specific Debt related to Shopping Center 2, which will be assumed by the Operating Partnership upon the completion of the Formation Transactions. This results in the following variation of the variable “AA” in the formula as applied to Shopping Center 2:


Property		Asset Adjustment (“AA”) (i.e., Base Balance - Actual Balance)
Shopping Center 1		0 = 25 – 25
Shopping Center 2		-25 = 25 – 50
Shopping Center 3		0 = 25 – 25
Shopping Center 4		0 = 25 – 25
Total Portfolio Adjustment (“TPA”)		-25

In addition, by virtue of the assumption by the Operating Partnership of this Entity Specific Debt in connection with the Formation Transactions, the Total Formation Transaction Value will have decreased by the $25 value of the Entity Specific Debt from $400 to $375.

Applying the Equity Value formula reflecting these new facts and assuming that there is no increase or decrease in mortgage debt outstanding, the Equity Value of each of the four properties is as set forth below:


Property		Equity Value = EP x [TFTV – TPA] + AA
Shopping Center 1		100 = 25% x [375 - (-25)] + 0
Shopping Center 2		75 = 25% x [375 - (-25)] + (-25)
Shopping Center 3		100 = 25% x [375 - (-25)] + 0
Shopping Center 4		100 = 25% x [375 - (-25)] + 0
Total Equity Value		375

Here, through the operation of the Equity Value formula, all $25 of Company C’s Entity Specific Debt has been allocated to Shopping Center 2 and has not impacted the Equity Value of the other Target Assets. However, without further adjustment, Company C and Company D, each as a 50% owner of Shopping Center 2, are equally burdened by Company C’s Entity Specific Debt as show below:


	Company C	Company D
Allocated Share (unadjusted) of Equity Value before Inclusion of Entity Specific Debt:	50 = 100 x 50%	50 = 100 x 50%
Allocated Share (unadjusted) of Equity Value after Inclusion of Entity Specific Debt:	37.5 = 75 x 50%	37.5 = 75 x 50%
Decrease in Allocated Share (unadjusted) of Equity Value due to Inclusion of Entity Specific Debt:	12.5 = 50 - 37.5	12.5 = 50 - 37.5

Accordingly, by virtue of the operation of the Equity Value formula, Company C has only been allocated half ($12.5 of $25.0) of the Company C Entity Specific Debt obligation that should be allocated to Company C, and Company D has been allocated the remaining $12.5.

In order to address this inequitable allocation of Company C Entity Specific Debt , the definition of “Allocated Share” provides for an adjustment to (i) reduce the amount that would otherwise be payable to Company C by the amount by which the Entity Specific Debt exceeds the amount of such obligation that was previously allocated to Company C and (ii) increase the amount payable to Company D by the amount of the Entity Specific Debt obligation that was previously allocated to Company D, with the following outcome:


	Company A	Company B
Allocated Share (adjusted):	25 = 37.5 - 12.5	50 = 37.5 + 12.5

As a result of this adjustment to the Allocated Shares of Company C and Company D, the economic impact of all of Company C’s Entity Specific Debt will be allocated to Company C.

Example 4 – Intercompany Debt

In this example, all of the facts described in the Base Case above are the same, except that between the owners of Shopping Center 3, Company E has an Intercompany Debt obligation in the amount of $25 to Company F.

Prior to the application of the adjustments contained in the definition of Allocated Share, the Allocated Shares of the Owners of Shopping Center 3 would be as follows:


	Company E	Company F
Allocated Share (unadjusted):	50 = 100 x 50%	50 = 100 x 50%

To account for Intercompany Debt, the definition of “Allocated Share” provides an adjustment to (i) reduce the Allocated Share that would otherwise be payable to Company E by an amount equal to its indebtedness to Company F and (ii) increase the Allocated Share that would otherwise be payable to Company F by an amount equal to Company E’s indebtedness to Company F, with the following outcome:


	Company E	Company F
Allocated Share (adjusted):	25 = 100 x 50% - 25	75 = 100 x 50% + 25

As a result of this adjustment to the Allocated Shares of Company E and Company F, the Intercompany Debt obligations between these entities have now been resolved.

Appendix B to Schedule III

Equity Percentage for Each Target Asset


Target Asset	Equity Percentage
Alamo Quarry Market		10.1916	%
Carmel Country Plaza		4.8359	%
Carmel Mountain Plaza		7.1580	%
Xxxxx Xxx Xxxxxxxxxxx		0.0000	%
Lomas Santa Fe Plaza		6.5271	%
Rancho Carmel Plaza		0.4388	%
Solana Beach Towne Centre		5.6143	%
The Shops at Kalakaua		0.2883	%
Del Monte Center		5.7928	%
Waikele Center		9.0461	%
Waikiki Beach Walk
Waikiki Beach Walk Retail		0.6668	%
Embassy Suites at Waikiki Beach Walk		6.3419	%
ICW Valencia/Valencia Corporate Center		1.7184	%
Torrey Reserve
ICW Plaza		2.0728	%
Torrey Reserve North Court I & II		4.1456	%
Torrey Reserve South Court I & II		4.7826	%
Torrey Daycare		0.2370	%
Xxxxxx XX I-III		1.2492	%
Existing Common Area – Future Development Parcel		0.3981	%
Solana Beach Corporate Centre
Solana Beach Corporate Centre – I & II		2.2375	%
Solana Beach Corporate Centre – III & IV		0.3116	%
Solana Beach Towne Centres Investments (Vacant Land)		0.0686	%
000 Xxxx Xxxxxx		2.4814	%
The Landmark at One Market		5.5594	%
Fireman’s Fund Headquarters		9.6718	%
Imperial Beach Gardens		0.6589	%
Loma Palisades		2.5884	%
Mariner’s Point		0.2745	%
Xxxxx Xx Xxxx XX Xxxxxx		0.0000	%
Land for Development
Pac Sorrento Valley Holdings 1 (Vacant Land)		0.1235	%
Sorrento Pointe		0.2471	%
Management Company (American Assets Trust Management, LLC)		3.5690	%

Total		100.0000	%

Appendix C to Schedule III

Base Balance of Existing Loans

(other than Entity Specific Debt)


Target Asset	Base Balance of Existing Loan
Alamo Quarry Market	$	98,954,256
Carmel Country Plaza	$	10,271,191
Carmel Mountain Plaza	$	63,554,812
South Bay Marketplace	$	23,000,000
Lomas Santa Fe Plaza	$	19,850,458
Rancho Carmel Plaza	$	8,103,021
Solana Beach Towne Centre	$	40,000,000
The Shops at Kalakaua	$	19,000,000
Del Monte Center	$	82,300,000
Waikele Center	$	140,700,000
Waikiki Beach Walk
Waikiki Beach Walk Retail	$	145,742,438
Embassy Suites at Waikiki Beach Walk	$	53,000,000
ICW Valencia/Valencia Corporate Center	$	23,581,507
Torrey Reserve
ICW Plaza	$	43,000,000
Torrey Reserve North Court I & II	$	22,299,822
Torrey Reserve South Court I & II	$	13,059,008
Torrey Daycare	$	1,673,363
Xxxxxx XX I-III	$	7,500,000
Existing Common Area – Future Development Parcel	$	0
Xxxxxx Xxxxx Xxxxxxxxx Xxxxxx
Xxxxxx Xxxxx Corporate Centre – I & II	$	12,000,000
Solana Beach Corporate Centre – III & IV	$	37,330,000
Solana Beach Towne Centres Investments (Vacant Land)	$	0
000 Xxxx Xxxxxx	$	42,223,428
The Landmark at One Market	$	133,000,000
Fireman’s Fund Headquarters	$	176,542,099
Imperial Beach Gardens	$	20,000,000
Loma Palisades	$	73,744,000
Mariner’s Point	$	7,700,000
Santa Fe Park RV Resort	$	1,878,876
Land for Development
Pac Sorrento Valley Holdings 1 (Vacant Land)	$	0
Xxxxxxxx Xxxxxx	$	0
Management Company (American Assets Trust Management, LLC)	$	0

Total	$	1,320,008,279

Appendix D to Schedule III

Entity Specific Debt


Entity Specific Debt	Target Asset	Balance Outstanding as of June 30, 2010
Promissory Note issued February 1, 2008 by Pacific Oceanside Holdings, L.P. to DHM Trust	Del Monte Center	$	117,273.17
Promissory Note issued February 1, 2008 by Pacific Oceanside Holdings, L.P. to Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended	Del Monte Center	$	1,231,368.26
Promissory Note issued February 1, 2008 by Pacific Oceanside Holdings, L.P. to Xxxxxxx X. Xxxxxx, Trustee of Non-Exempt Trust C under the Xxxxxxx and Xxxxxxx Xxxxxx Trust, dated July 31, 1981	Del Monte Center	$	527,729.26
Promissory Note issued February 1, 2008 by Kearny Mesa Business Center, L.P. to Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended	Del Monte Center	$	377,577.46
Promissory Note issued February 1, 2008 by Kearny Mesa Business Center, L.P. to American Assets, Inc.	Del Monte Center	$	357,464.50
Promissory Note issued February 1, 2008 by Kearny Mesa Business Center, L.P. to Xxxx Xxxxxxx	Del Monte Center	$	34,325.00
Promissory Note issued February 1, 2008 by Kearny Mesa Business Center, L.P. to Parma Family Trust	Del Monte Center	$	36,886.08
Promissory Note issued February 1, 2008 by Del Monte Center Holdings, LP to Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended	Del Monte Center	$	1,288,289.73
Promissory Note issued February 1, 2008 by Del Monte Center Holdings, LP to Arsobro, LP	Del Monte Center	$	158,971.11
Promissory Note issued February 1, 2008 by Del Monte Center Holdings, LP to Xxxxxx Del Xxxxx, LLC	Del Monte Center	$	238,540.95
Promissory Note issued February 1, 2008 by Pacific San Xxxx Holdings, L.P. to Xxxxxx X. Xxxxxxx	Del Monte Center	$	9,534.62
Promissory Note issued February 1, 2008 by Pacific San Xxxx Holdings, L.P. to Solomon Family Partnership	Del Monte Center	$	23,828.31
Promissory Note issued February 1, 2008 by Pacific San Xxxx Holdings, L.P. to DHM Trust	Del Monte Center	$	11,913.97
Promissory Note issued February 1, 2008 by Pacific San Xxxx Holdings, L.P. to DHM Trust 2	Del Monte Center	$	11,913.97
Promissory Note issued February 1, 2008 by Pacific San Xxxx Holdings, L.P. to Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended	Del Monte Center	$	309,768.37


Entity Specific Debt	Target Asset	Balance Outstanding as of June 30, 2010
Promissory Note issued February 6, 2008 by Pacific San Xxxx Holdings, L.P. to Arsobro, LP	Del Monte Center	$	116,391.99
Promissory Note issued February 6, 2008 by Pacific San Xxxx Holdings, L.P. to American Assets, Inc.	Del Monte Center	$	74,233.18

Total	Del Monte Center	$	4,926,009.93

Second Amended and Restated Promissory Note A Effective February 15, 2010 (Unsecured) issued March 18, 2010 by Pacific Sorrento Mesa Holdings, L.P. to Xxxxx Fargo Bank, National Association	Waikele Center	$	6,498,716.00
Second Amended and Restated Promissory Note B Effective February 15, 2010 (Unsecured) issued March 18, 2010 by Pacific Stonecrest Holdings, L.P. to Xxxxx Fargo Bank, National Association	Waikele Center	$	3,983,084.00

Total	Waikele Center	$	10,481,800.00

Unsecured loan from ESW LLC to the Embassy Suites at Waikiki Beach Walk*	Embassy Suites at Waikiki Beach Walk	$	14,874,102.00

Total	Embassy Suites at Waikiki Beach Walk	$	14,874,102.00

Loan Agreement, dated as of June 29, 2010, between Bank of America, N.A. and Landmark One Market	The Landmark at One Market	$	23,000,000.00

Total	The Landmark at One Market	$	23,000,000.00

Unsecured loan from ICW Valencia, L.P. to certain holders of interests in ICW Plaza, X.X.	Xxxxxxxx Corporate Center	$	418,770.00

Total	Valencia Corporate Center	$	418,770.00

*	Loan not issued pursuant to a formal promissory note.

Schedule IV

Intercompany Indebtedness


Intercompany Debt	Balance Outstanding as of June 30, 2010
Unsecured loan from American Assets, Inc. to Pacific Oceanside Holdings, L.P.*	$	3,099,218
Unsecured loan from American Assets, Inc. to Kearny Mesa Business Center, L.P.*	$	854,229
Promissory Note issued December 31, 2004 by American Assets, Inc. to Del Monte Center Holdings, LP	$	1,785,680
Unsecured loan from American Assets, Inc. to Del Monte San Xxxx Holdings, LLC*	$	1,854,631
Unsecured loan from American Assets, Inc. to Beach Walk Holdings, L.P.*	$	2,861,766
Promissory Note issued December 31, 2004 by American Assets, Inc. to Solana Beach Towne Centre Investments, L.P.	$	2,102,154
Promissory Note issued January 31, 2007 by American Assets, Inc. to ICW Plaza, L.P.	$	7,748,809
Promissory Note issued December 31, 2004 by American Assets, Inc. to Pacific Stonecrest Holdings, L.P.	$	901,116
Promissory Note issued December 31, 2004 by American Assets, Inc. to Rancho Carmel Plaza, L.P.	$	305,370
Unsecured loan from American Assets, Inc. to Pacific Stonecrest Assets, Inc.*	$	75,093
Promissory Note issued December 31, 2009 by American Assets, Inc. to Imperial Strand, L.P.	$	1,364,104
Promissory Note issued December 31, 2004 by American Assets, Inc. to Loma Palisades, G.P.	$	1,021,324

Total	$	23,973,494

Promissory Note issued December 31, 2009 by Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended, to American Assets, Inc	$	14,144,458
Promissory Note issued December 19, 2007 by Pacific American Assets Holdings, L.P., to American Assets, Inc	$	28,934,000
Promissory Note issued December 31, 2004 by Winrad Kearny Mesa Business Center, G.P. to American Assets, Inc	$	757,906

Total	$	43,836,364

Promissory Note issued February 1, 2008 by Pacific Oceanside Holdings, L.P. to Pacific American Assets Holdings, L.P.	$	1,055,458.51


Intercompany Debt	Balance Outstanding as of June 30, 2010
Promissory Note issued February 1, 2008 by Pacific San Xxxx Holdings, L.P. to Pacific American Assets Holdings, L.P.	$	514,693.48

Total	$	1,570,152

*	Loan not issued pursuant to a formal promissory note.

Schedule 3.01(b)

List of REIT Subsidiaries


Owner		Ownership Interest
American Assets Trust, L.P.
American Assets Trust, Inc.		100%
Pacific Del Mar Assets LLC
American Assets Trust, Inc.		100%
Pacific Carmel Mountain Assets LLC
American Assets Trust, Inc.		100%
Pacific Solana Beach Assets LLC
American Assets Trust, Inc.		100%
Pacific Waikiki Assets LLC
American Assets Trust, Inc.		100%
King Street Assets LLC
American Assets Trust, Inc.		100%
Pacific Sorrento Valley Assets II LLC
American Assets Trust, Inc.		100%
Pacific Santa Fe Assets LLC
American Assets Trust, Inc.		100%
American Assets Trust Services, Inc. (indirect Subsidiary)
American Assets Trust, L.P.		100%
Vista Hacienda LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Pacific Stonecrest Holdings LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Rancho Carmel Plaza LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Pacific Waikiki Holdings Merger Sub LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Pacific Oceanside Holdings LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Kearny Mesa Business Center LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Del Monte Center Holdings LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%


Owner		Ownership Interest
Beach Walk Holdings LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
ABW Xxxxxx Merger Sub LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
ICW Plaza Merger Sub LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
ICW Valencia LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
King Street Holdings Merger Sub LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Waikiki Beach Walk Hotel Lessee (indirect Subsidiary)
American Assets Trust Services, Inc.		100%
Imperial Strand LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Loma Palisades Merger Sub LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%
Loma Palisades GP LLC (indirect Subsidiary)
American Assets Trust, L.P.		100%

Schedule 4.01(b)

List of Forward REIT Merger Entity Subsidiaries


Owner		Percentage Ownership Interest
Pacific Stonecrest Holdings, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX ALAMO QUARRY MARKET WAIKELE CENTER EMBASSY SUITES AT WAIKIKI BEACH WALK

Pacific Stonecrest Assets, Inc.		20
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		24
Pacific American Assets Holdings, L.P., a California limited partnership		36
Non-Exempt Trust C Under the Xxxxxxx & Xxxxxxx Xxxxxx Trust		16
DHM Trust		4

Alamo Stonecrest Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX ALAMO QUARRY MARKET

Pacific Stonecrest Holdings, L.P.		100

Pacific National City Holdings, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX SOUTH BAY MARKETPLACE

Pacific National City Assets, Inc.		20
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		87.82
Gaidebro Holdings, Inc., a Canadian corporation		5.16
Marblank Investments, Inc.		6.02

Southbay Marketplace Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX SOUTH BAY MARKETPLACE

Pacific National City Holdings, L.P.		100

Rancho Carmel Plaza, a California limited partnership 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX RANCHO CARMEL PLAZA

Western Assets, Inc.		1
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		93
Trust C of the W.E. & X.X. Xxxxxxxxxxx Trust		3
Xxxxxxx X. Xxxxxx		3


Owner		Percentage Ownership Interest
Rancho Carmel Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX RANCHO CARMEL PLAZA

Rancho Carmel Plaza, a California limited partnership		000

Xxxxxx Xxxxx Xxxxx Centres Investments, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX SOLANA BEACH TOWNE CENTRE SOLANA BEACH CORPORATE CENTRE I & II SOLANA BEACH CORPORATE CENTRE III & IV

Pacific Towne Centre Assets, Inc.		50
Xxxxxx X. Xxxxxxx Trust		19.5
Propco, L.P.		28.5
Propco Investments LLC		2

SBTC Assets, Inc. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX (indirect Subsidiary) SOLANA BEACH TOWNE CENTRE

Solana Beach Towne Centres Investments, L.P.		100

XX Xxxxx Centre, LLC 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX (indirect Subsidiary) SOLANA BEACH TOWNE CENTRE

SBTC Assets, Inc.		1
Solana Beach Towne Centres Investments, L.P.		99

SBTC Holdings, LLC 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX (indirect Subsidiary) SOLANA BEACH TOWNE CENTRE

XX Xxxxx Centre, LLC		100

SBCC Assets, Inc. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX (indirect Subsidiary) SOLANA BEACH CORPORATE CENTRE I & II

Solana Beach Towne Centres Investments, L.P.		100

SB Corporate Centre, LLC 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX (indirect Subsidiary) SOLANA BEACH CORPORATE CENTRE I & II

SBCC Assets, Inc.		1
Solana Beach Towne Centres Investments, L.P.		99


Owner		Percentage Ownership Interest
SBCC Holdings, LLC 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX (indirect Subsidiary) SOLANA BEACH CORPORATE CENTRE III & IV

SB Corporate Centre, LLC		100

SB Corporate Centre III-IV, LLC 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX (indirect Subsidiary) SOLANA BEACH CORPORATE CENTRE III & IV

Solana Beach Towne Centres Investments, L.P.		100

Pacific Oceanside Holdings, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER 000 XXXX XXXXXX

Xxxxxxx Xxxxxxxxx Assets, Inc.		20
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		24
Pacific American Assets Holdings, L.P., a California limited partnership		36
DHM Trust		4
Non-Exempt Trust C Under the Xxxxxxx & Xxxxxxx Xxxxxx Trust		16

Del Monte – POH, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

Pacific Oceanside Holdings, L.P.		000

Xxxxxxx Xxx Xxxx Holdings, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

Pacific San Xxxx Assets, Inc.		26.6666
Xxxxxx Xxxxx, Trustee of the Xxxxxx and Xxxxxx Xxxxx Revocable Trust, dated April 13, 1989		4.4444
Xxxxxxxx Xxxxxx		1.1111
DHM Trust		1.1111
DHM 2 Trust		1.1111
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		2.2222
Gaidebro Holdings, Inc., a Canadian corporation		2.2222
Xxxxxx X. Xxxxxxx		0.8892
Guyencourt Land Company, Inc.		2.2222


Owner		Percentage Ownership Interest
Xxxx Family Trust		2.2222
Marblank Investments Inc.		2.2222
The G.A. XxXxxxxxx Irrevocable Trust		1.1111
Pacific American Assets Holdings, L.P., a California limited partnership		48
Solomon Family Partnership		2.2222
The Xxxxxx Xxxxxxxx Trust		2.2222

Del Monte San Xxxx Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

Pacific San Xxxx Holdings, L.P.		100

Del Monte – DMSJH, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

Del Monte San Xxxx Holdings, LLC		100

Kearny Mesa Business Center, a California limited partnership 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

KMBC Assets, Inc.		9.3625
American Assets, Inc.		0.9150
Parma Family Trust		4.5750
Winrad Kearny Mesa Business Center, a California general partnership		85.1475

Del Monte – KMBC, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

Kearny Mesa Business Center, a California limited partnership		100

Del Monte Center Holdings, LP 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

Hero Retail, Inc.		0 [promote only]
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		76.42
Arsobro, LP		9.43
Xxxxxx Del Monte, LLC		14.15

Del Monte – DMCH, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX DEL MONTE CENTER

Del Monte Center Holdings, LP		100


Owner		Percentage Ownership Interest
Pacific Sorrento Valley Holdings I, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Pacific Sorrento Valley Assets I, Inc.		1
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		00

Xxxxxxx Xxxxxx Xxxxxxx Xxxx Assets, Inc. (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Pacific Sorrento Valley Holdings I, L.P.		100

Pacific Torrey Reserve West Holdings, L.P. (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Pacific Torrey Reserve West Assets, Inc.		1
Pacific Sorrento Valley Holdings I, L.P.		99

Waikele Reserve West Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Pacific Torrey Reserve West Holdings, L.P.		100

Pacific Sorrento Mesa Holdings, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER EMBASSY SUITES AT WAIKIKI BEACH WALK

Pacific Sorrento Mesa Assets, Inc.		20.4621
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		33.2337
Xxxxxx X. Xxxxx Trust		0.5093
The Xxxxxxx and Xxxxxx Xxxxxxxxx Trust, dated December 2, 1988		4.009
Arsobro, LP		5.5591
Parma Family Limited Partnership		16.0359
Gaidebro Holdings, Inc., a Canadian corporation		0.8018
Xxxx Family Trust		2.3322
Marblank Investments Inc.		1.6036
Elkus Enterprises		3.2132
Non-Exempt Trust C Under the Xxxxxxx & Xxxxxxx Xxxxxx Trust		7.2161
Grand Xxxx LLC		4.8047
Xxxxx Xxxxx		0.2193


Owner		Percentage Ownership Interest
Broadway 101 Sorrento Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Pacific Sorrento Mesa Holdings, L.P.		000

Xxxxxxxx 000 Xxxxxxxx Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER EMBASSY SUITES AT WAIKIKI BEACH WALK

Pacific Sorrento Mesa Holdings, L.P.		100

Waikele 101 Sorrento, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Broadway 101 Sorrento Holdings, LLC		100

Waikele 225 Sorrento, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Broadway 225 Sorrento Holdings, LLC		000

Xxxxxxxx 000 Xxxxxxxxxx Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Pacific Stonecrest Holdings, L.P.		000

Xxxxxxxx 000 Xxxxxxxxxx Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER EMBASSY SUITES AT WAIKIKI BEACH WALK

Pacific Stonecrest Holdings, L.P.		100

Waikele 101 Stonecrest, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Broadway 101 Stonecrest Holdings, LLC		000

Xxxxxxx 000 Xxxxxxxxxx, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKELE CENTER

Broadway 225 Stonecrest Holdings, LLC		100

Beach Walk Holdings, LP 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX WAIKIKI BEACH WALK RETAIL


Owner		Percentage Ownership Interest
Beach Walk Assets, Inc.		0 [promote only]
Pacific American Assets Holdings, L.P., a California limited partnership		76.94
Xxxxxxx X. and Xxxxxxx X. Xxxxxx Trust A UDT 07/31/81		2.43
Xxxxxx X. Xxxxx Trust UDT 09/09/74		2.43
Arsobro, LP		2.43
Parma Family Limited Partnership		12.13
Xxxxxx Revocable Family Trust		2.43
Gaidebro Holdings, Inc., a Canadian corporation		0.48
Xxxx X. Xxxxxxxxxxx		0.73

ABW Lewers LLC (indirect Subsidiary) 0000 Xxxxx Xxxxxx, Xxxxxxxx, XX WAIKIKI BEACH WALK RETAIL

Beach Walk Holdings, LP		80
WBW Retail LLC		20

ABW 2181 Holdings LLC (indirect Subsidiary) 0000 Xxxxx Xxxxxx, Xxxxxxxx, XX WAIKIKI BEACH WALK RETAIL

ABW Lewers LLC		100

ABW Holdings LLC (indirect Subsidiary) 0000 Xxxxx Xxxxxx, Xxxxxxxx, XX WAIKIKI BEACH WALK RETAIL

ABW Lewers LLC		000

XXX Plaza, L.P., a California limited partnership 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX ICW PLAZA

ICW Plaza, Inc. (d/b/a Delaware ICW Plaza, Inc.)		1
XxXxxxxxx Family Trust		0.0435
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		5.9612
Xxxxx X. Xxxxx		0.2295
Pacific American Assets Holdings, L.P., a California limited partnership		88.4220
Xxxx Xxxxxxx		2.2271
Xxxx X. Xxxxxx		0.1586
Xxxx X. Xxxxxxx		0.0147
B. Xxxxx Xxxxxxx & Xxx Xxxxxxx, Trustees Xxxxxxx Family Trust		0.0147


Owner		Percentage Ownership Interest
Xxxxx X. Xxxxx		0.0420
The Banks Exemption Trust		0.0389
DHM Trust		0.8122
DHM Trust 2		0.6668
Xxxxxxx X. Xxxxxxx		0.0389
Xxxxx X. and Xxxxx X. Xxxxxx Family Trust dated October 3, 1997		0.0447
Western Insurance Holdings, Inc.		0.2852

ICW Plaza Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX ICW PLAZA

ICW Plaza, L.P., a California limited partnership		100

ICW Valencia, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX ICW VALENCIA/VALENCIA CORPORATE CENTER

ICW Valencia, Inc.		1.1504
XxXxxxxxx Family Trust		0.0421
Xxxxx X. Xxxxx		0.2221
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		18.2777
Pacific American Assets Holdings, L.P., a California limited partnership		64.2951
Bee-Dee Investments, Ltd.		4.3676
Gaidebro Holdings, Inc., a Canadian corporation		4.3676
Xxxxxx X. Xxxx Trust		1.7979
Xxxxx X. Xxxx Trust		1.7979
Xxxxx X. Xxxx Trust		1.7979
Xxxxxx Family Trust		0.1568
Xxxxx X. Xxxxx		0.0451
The Banks Exemption Trust		0.0376
DHM Trust		0.7858
DHM Trust 2		0.6451
Xxxxxxx X. Xxxxxxx Trust		0.1249
Xxxxx X. and Xxxxx X. Xxxxxx Family Trust dated October 3, 1997		0.0508
Xxxxxxx/Xxxxx Xxxxxxxx		0.0000

XXX Valencia Holdings Assets, Inc. (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX ICW VALENCIA/VALENCIA CORPORATE CENTER

ICW Valencia, L.P.		100


Owner		Percentage Ownership Interest
ICW Valencia Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX ICW VALENCIA/VALENCIA CORPORATE CENTER

ICW Valencia Holdings Assets, Inc.		1
ICW Valencia, L.P.		99

Pacific North Court GP, Inc. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX TORREY RESERVE NORTH COURT I & II

Pacific Torrey Reserve Assets, Inc.		000

Xxxxxxx Xxxxxx Xxxxxxx Holdings, L.P. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX TORREY RESERVE NORTH COURT I & II TORREY RESERVE SOUTH COURT I & II TORREY DAYCARE TORREY VCs I, II & III

Pacific Torrey Reserve Assets, Inc.		20
Pacific American Assets Holdings, L.P., a California limited partnership		80

Pacific North Court Holdings, L.P. (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX TORREY RESERVE NORTH COURT I & II

Pacific North Court GP, Inc.		0
Xxxxxxx Xxxxxx Xxxxxxx Holdings, L.P.		99

Pacific South Court Holdings, L.P. (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX TORREY RESERVE SOUTH COURT I & II

Pacific Torrey Reserve Assets, Inc.		1
Pacific Torrey Reserve Holdings, L.P.		99

Pacific Torrey Daycare Assets, Inc. 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX TORREY DAYCARE

Pacific Torrey Reserve Assets, Inc.		000

Xxxxxxx Xxxxxx Daycare Holdings, L.P. (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX TORREY DAYCARE

Pacific Torrey Daycare Assets, Inc.		1
Pacific Torrey Reserve Holdings, L.P.		99

Pacific VC Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX TORREY VCs I, II & III


Owner		Percentage Ownership Interest
Pacific Torrey Reserve Holdings, L.P.		100

Desert Oceanside Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX 000 XXXX XXXXXX

Xxxxxxx Xxxxxxxxx Holdings, L.P.		100

King Desert Oceanside, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX 000 XXXX XXXXXX

Xxxxxx Xxxxxxxxx Holdings, LLC		100

Landmark Venture JV, LLC 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX THE LANDMARK AT ONE MARKET

Landmark Assets, Inc.		1
Landmark One Market, Inc.		99

Landmark Venture Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX THE LANDMARK AT ONE MARKET

Landmark Venture JV, LLC		100

Pacific Novato Holdings, LP 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX FIREMAN’S FUND HEADQUARTERS

Pacific Novato Assets, Inc.		1
Pacific American Assets Holdings, L.P., a California limited partnership		99

Novato FF Venture, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX FIREMAN’S FUND HEADQUARTERS

Pacific Novato Holdings, LP		25
Novato FF PT Investor, LLC		75

Novato FF Property, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX FIREMAN’S FUND HEADQUARTERS

Novato FF Venture, LLC		100

BWH Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX EMBASSY SUITES AT WAIKIKI BEACH WALK

Pacific Sorrento Mesa Holdings, L.P.		62
Pacific Stonecrest Holdings, L.P.		38

EBW Hotel LLC


Owner		Percentage Ownership Interest
(indirect Subsidiary) 0000 Xxxxx Xxxxxx, Xxxxxxxx, XX EMBASSY SUITES AT WAIKIKI BEACH WALK

BWH Holdings, LLC		51.22
ESW LLC		48.78

Waikele Center Holdings, LP 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX EMBASSY SUITES AT WAIKIKI BEACH WALK

Waikele Center Assets, Inc.		1
Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		97
Xxxx X. Xxxxxxxxxxx		2

Waikele Venture Holdings, LLC (indirect Subsidiary) 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, XX EMBASSY SUITES AT WAIKIKI BEACH WALK

Waikele Center Holdings, LP		100

Schedule 4.03

Capitalization


Owner		Percentage Ownership Interest
Pacific Stonecrest Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		00
Xxxxxxx X. and Xxxxxxx X. Xxxxxx Trust A UDT 07/31/81		10
Trust A of the W.E. & X.X. Xxxxxxxxxxx Trust		3
Xxxx X. Xxxxxxxxxxx		5

Pacific National City Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100

Western Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100

Pacific Towne Centre Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100

Pacific Oceanside Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		00
Xxxxxxx X. and Xxxxxxx X. Xxxxxx Trust A UDT 07/31/81		10
Trust A of the W.E. & X.X. Xxxxxxxxxxx Trust		3
Xxxx X. Xxxxxxxxxxx		5

Pacific San Xxxx Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100

KMBC Assets, Inc.

American Assets, Inc.		100

Hero Retail, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		000

Xxxxxxx Xxxxxxxx Xxxxxx Assets I, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		000

Xxxxxxx Xxxxxxxx Xxxx Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		000

Xxxxx Xxxx Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100


Owner		Percentage Ownership Interest
ICW Plaza, Inc. [ d/b/a Delaware ICW Plaza, Inc.]

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		000

XXX Valencia, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		000

Xxxxxxx Xxxxxx Xxxxxxx Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100

Landmark Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		90.42
Xxxx X. Xxxxxxxxxxx		5.32
Xxxxxx X. Xxxxxx Family Trust		4.26

Landmark One Market, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100

Pacific Novato Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		85
The Xxxx X. and Xxxxxxx X. Xxxxxxxxxxx Trust dated July 14, 1994, as amended		10
Xxxxxx & Xxxxxxxxx Xxxxxx Living Trust		5

Waikele Center Assets, Inc.

Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended		100

Schedule 4.08(a)

Title Insurance

Only the following Properties have an associated owner’s policy of title insurance:


Property		Beneficiary
Alamo Quarry Market		Alamo Stonecrest Holdings, LLC Alamo Vista Holdings, LLC

Waikiki Beach Walk – Hotel		EBW Hotel LLC Waikele Venture Holdings, LLC Broadway 225 Sorrento Holdings, LLC Broadway 225 Stonecrest Holdings, LLC

Del Monte Center		Pacific Oceanside Holdings, LP Del Monte San Xxxx Holdings, LLC Kearny Mesa Business Center, a California limited partnership Del Monte Center Holdings, LP

000 Xxxx Xxxxxx		Xxxx Xxxxxx Holdings, XX Xxxx Desert Hillside, LLC King Desert Oceanside, LLC

The Landmark at One Market		Landmark Venture Holdings, LLC Landmark FireHill Holdings, LLC

Fireman’s Fund Headquarters		Novato FF Property, LLC

Schedule 4.12

Existing Loans


Property	Borrower / Loan Number	Lender or Servicer
Alamo Quarry Market	Alamo Vista Holdings, LLC (Note A-1) / 70-0201346 Alamo Vista Holdings, LLC (Note A-2) / 70-0201407 Alamo Stonecrest Holdings, LLC (Note A-1) / 70-0201408 Alamo Stonecrest Holdings, LLC (Note A-2) / 70-0201409	Xxxxx Fargo Commercial Mortgage Services

South Bay Market Place	Southbay Marketplace Holdings, LLC / 00-0000000	Wachovia Bank / Xxxxx Fargo Commercial Mortgage Servicing

Rancho Carmel Plaza	Rancho Carmel Holdings, LLC / 70-0400877	Xxxxx Fargo Commercial Mortgage Services

Solana Beach Towne Center	SBTC Holdings, LLC / 30264324	Midland Loan Services

Del Monte Center	Del Monte – DMSJH , LLC / 991074035 Del Monte – DMCH, LLC / 991074036 Del Monte – KMBC, LLC / 991074037 Del Monte – POH, LLC / 991073858	Berkadia Commercial Mortgage

Waikele Center	Borrowers Waikele Reserve West Holdings, LLC Waikele 101 Sorrento, LLC Waikele 225 Sorrento, LLC Waikele 101 Stonecrest, LLC Waikele 225 Stonecrest, LLC Loan Numbers 00-0000000, 00-0000000, 00-0000000, 00-0000000, 00-0000000, 00-0000000, 00-0000000, 00-0000000	Xxxxx Fargo Commercial Mortgage Services

Xxxxxxx Xxxxx Xxxx - Xxxxxx	XXX 0000 Holdings LLC / 790500043001	American Savings Bank


Property	Borrower / Loan Number	Lender or Servicer
Waikiki Beach Walk – Retail	ABW Holdings LLC / 00-0000000	Column Financial, Inc. (lender) KeyBank Real Estate Capital (servicer)

ICW Plaza	ICW Plaza Holdings, LLC / 70-0401614	Xxxxx Fargo Commercial Mortgage Services

ICW Valencia/Valencia Corporate Center	ICW Valencia Holdings, LLC / 85-02000898	Xxxxx Fargo Commercial Mortgage Services

ICW Valencia (building 3 construction loan)	ICW Valencia, LP / 2526768952	Xxxxx Fargo

Torrey Reserve North Court I & II	Pacific North Court Holdings, LP / 525805: 11	Manulife Financial / Xxxx Xxxxxxx Real Estate Finance

Torrey Reserve South Court I & II	Pacific South Court Holdings, L.P. / 00-0000000	Keybank Real Estate Capital

Torrey Daycare	Pacific Torrey Daycare Holdings, LP / 140-07551-0450065-9001	California Bank & Trust

Torrey VCs I, II & III	Pacific VC Holdings, LLC / 30264326	Midland Loan Services

Solana Beach Corporate Center I & II	SBCC Holdings, LLC / 30264325	Midland Loan Services

Solana Beach Corporate Center III & IV	SB Corporate Centre III-IV, LLC / 991068648	Berkadia Commercial Mortgage

000 Xxxx Xxxxxx	Borrowers King Street Holdings, XX Xxxx Desert Hillside, LLC King Desert Oceanside, LLC Loan Number 330063200	Xxxxx Financial

The Landmark at One Market	Landmark Firehill Holdings, LP / 70-0400471 Landmark Ventures Holdings, LLC / 70-0400470	Xxxxx Fargo Commercial Mortgage Services


Property	Borrower / Loan Number	Lender or Servicer
Fireman’s Fund Headquarters	Novato FF Property, LLC / 003206596-00, 003214921-00	Bank of America Capital Markets Servicing Group

Waikiki Beach Walk – Hotel	Borrowers EBW Hotel LLC Waikele Venture Holdings, LLC Broadway 225 Sorrento Holdings, LLC Broadway 225 Stonecrest Holdings, LLC Loan Number 00050082287	Bank of Hawaii, First Hawaiian Bank, Central Pacific Bank & American Savings Bank

Schedule 4.13

Franchise Agreement

1.	Franchise License Agreement by and between Promus Hotels, Inc. and Outrigger Hotels Hawaii dated as of January 25, 2005

Schedule 4.15

Taxes

1.	KMBC Assets, Inc. is a C corporation

Schedule 4.21

Ownership of Certain Assets

Pacific Stonecrest Assets, Inc.

Alamo Stonecrest Holdings, LLC

Broadway 000 Xxxxxxxxxx Xxxxxxxx, LLC

Broadway 225 Stonecrest Holdings, LLC

Waikele 101 Stonecrest, LLC

Waikele 225 Stonecrest, LLC

Pacific National City Assets, Inc.

Southbay Marketplace Holdings, LLC

Western Assets, Inc.

Rancho Carmel Holdings, LLC

Pacific Towne Centre Assets, Inc.

SBTC Assets, Inc.

XX Xxxxx Centre, LLC

SBTC Holdings, LLC

SBCC Assets, Inc.

SB Corporate Centre, LLC

SBCC Holdings, LLC

SB Corporate Centre III-IV, LLC

Pacific Oceanside Assets, Inc.

Del Monte–POH, LLC

King Desert Oceanside, LLC

Pacific San Xxxx Assets, Inc.

Del Monte San Xxxx Holdings, LLC

Del Monte–DMSJH, LLC

KMBC Assets, Inc.

Del Monte–KMBC, LLC

Hero Retail, Inc.

Del Monte–DMCH, LLC

Pacific Sorrento Valley Assets I, Inc.

Pacific Torrey Reserve West Assets, Inc.

Pacific Torrey Reserve West Holdings, L.P.

Waikele Reserve West Holdings, LLC

Pacific Sorrento Mesa Assets, Inc.

Broadway 101 Sorrento Holdings, LLC

Broadway 225 Sorrento Holdings, LLC

Waikele 101 Sorrento, LLC

Waikele 225 Sorrento, LLC

Beach Walk Assets, Inc.

ABW 2181 Holdings LLC

ABW Holdings LLC

ICW Plaza, Inc. [d/b/a Delaware ICW Plaza, Inc.]

ICW Plaza Holdings, LLC

ICW Valencia, Inc.

ICW Valencia Holdings Assets, Inc.

ICW Valencia Holdings, LLC

Pacific Torrey Reserve Assets, Inc.

Pacific North Court GP LLC

Pacific Torrey Reserve Holdings, L.P.

Pacific North Court Holdings, L.P.

Pacific South Court Assets LLC

Pacific South Court Holdings, L.P.

Pacific Torrey Daycare Assets LLC

Pacific Torrey Daycare Holdings, L.P.

Pacific VC Holdings, LLC

Landmark Assets, Inc.

Landmark Venture JV, LLC

Landmark Venture Holdings, LLC

Landmark One Market, Inc.

Landmark Venture JV, LLC

Landmark Venture Holdings, LLC

Pacific Novato Assets, Inc.

Pacific Novato Holdings, LP

Novato FF Property, LLC

Waikele Center Assets, Inc.

Waikele Venture Holdings, LLC

Schedule 5.03

Excluded Assets

Excluded Assets consist of any excess of Net Working Capital over Target Net Working Capital. “Net Working Capital” means current assets minus current liabilities of the relevant entity as of a date within forty five (45) days prior to the date of the preliminary prospectus used in the IPO roadshow. Any Excluded Assets consisting of any excess of Net Working Capital of Target Working Capital shall be distributed or paid to Pre-Formation Participants promptly after consummation of the IPO after determination by the REIT. The REITs determination of such amount shall be final and binding on all Pre-Formation Participants.

“Target Net Working Capital” means zero with respect to all entities, other than ABW Xxxxxx, LLC; EBW Hotel, LLC; Broadway 225 Sorrento Holdings, LLC; Broadway 225 Stonecrest Holdings, LLC; and Waikele Venture Holdings, LLC, for which Target Net Working Capital will be $5,000,000, $2,050,000, $766,500, $470,000 and $1,713,500, respectively; provided, however that if the REIT adjusts Target Net Working Capital pursuant to the proviso in the first paragraph of Schedule III, Target Net Working Capital shall be such adjusted amount.

EXHIBITS

Exhibit A: Formation Transaction Documentation

Exhibit B: REIT Charter

Exhibit C: Form of Registration Rights Agreement

Exhibit D: Order of Mergers

Exhibit E: Lock-Up Agreement

Exhibit F: Operating Partnership Agreement

Exhibit A

Formation Transaction Documentation

Form of Forward REIT Merger Agreement

Form of REIT Sub Forward Merger Agreement

Form of Forward OP Merger Agreement

Form of OP Sub Forward Merger Agreement

Form of OP Sub Reverse Merger Agreement

Form of OP Contribution Agreement

Form of OP Sub Contribution Agreement

Form of Alternate Contribution Agreement

Form of Tax Protection Agreement

Amended and Restated Agreement of Limited Partnership of American Assets Trust, L.P.

Registration Rights Agreement

Representation, Warranty and Indemnity Agreement

Indemnity Escrow Agreement

Lock-Up Agreement

Articles of Amendment and Restatement of American Assets Trust, Inc.

Bylaws of American Assets Trust, Inc.

Management Business Contribution Agreement

Exhibit B

REIT Charter

AMERICAN ASSETS TRUST, INC.

ARTICLES OF AMENDMENT AND RESTATEMENT

FIRST: American Assets Trust, Inc., a Maryland corporation (the “Corporation”), desires to amend and restate its charter (the “Charter”) as currently in effect and as hereinafter amended.

SECOND: The following provisions are all the provisions of the Charter currently in effect and as hereinafter amended:

ARTICLE I

NAME

The name of the Corporation is:

American Assets Trust, Inc.

ARTICLE II

PURPOSE

The purposes for which the Corporation is formed are to engage in any lawful act or activity (including, without limitation or obligation, engaging in business as a real estate investment trust (a “REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, or any successor statute (the “Code”)) for which corporations may be organized under the general laws of the State of Maryland as now or hereafter in force.

ARTICLE III

PRINCIPAL OFFICE IN STATE AND RESIDENT AGENT

The address of the principal office of the Corporation in the State of Maryland is c/o The Corporation Trust Incorporated, 000 Xxxx Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000. The name of the resident agent of the Corporation in the State of Maryland is The Corporation Trust Incorporated, whose post address is 000 Xxxx Xxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000. The resident agent is a Maryland corporation.

ARTICLE IV

PROVISIONS FOR DEFINING, LIMITING

AND REGULATING CERTAIN POWERS OF THE

CORPORATION AND OF THE STOCKHOLDERS AND DIRECTORS

Section 4.1 Number of Directors. The business and affairs of the Corporation shall be managed under the direction of the Board of Directors. The number of directors of the Corporation is seven (7), which number may be increased or decreased only by the Board of Directors pursuant to the Bylaws of the Corporation (the “Bylaws”), but shall never be less than the minimum number required by the Maryland General Corporation Law (the “MGCL”). The names of the directors who shall serve until the next annual meeting of stockholders and until their successors are duly elected and qualify are:

Xxxxxx X. Xxxx

Xxxx Xxxxxxxxxxx

[ ]

The Board of Directors may increase or decrease the number of directors and may fill any vacancy, whether resulting from an increase in the number of directors or otherwise, on the Board of Directors in the manner provided in the Bylaws.

The Corporation elects, at such time as it becomes eligible under Section 3-802 of the MGCL to make the election provided for under Section 3-804(c) of the MGCL, that, except as may be provided by the Board of Directors in setting the terms of any class or series of stock, any and all vacancies on the Board of Directors may be filled only by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy shall serve for the remainder of the full term of the directorship in which such vacancy occurred.

Section 4.2 Extraordinary Actions. Except as specifically provided in Section 4.8 of this Article IV (relating to removal of directors), notwithstanding any provision of law permitting or requiring any action to be taken or approved by the affirmative vote of the holders of shares entitled to cast a greater number of votes, any such action shall be effective and valid if declared advisable by the Board of Directors and taken or approved by the affirmative vote of holders of shares entitled to cast a majority of all the votes entitled to be cast on the matter.

Section 4.3 Authorization by Board of Stock Issuance. The Board of Directors may authorize the issuance from time to time of shares of stock of the Corporation of any class or series, whether now or hereafter authorized, or securities or rights convertible into shares of its stock of any class or series, whether now or hereafter authorized, for such consideration as the Board of Directors may deem advisable (or without consideration in the case of a stock split or stock dividend), subject to such restrictions or limitations, if any, as may be set forth in the MGCL, the Charter or the Bylaws.

Section 4.4 Preemptive and Appraisal Rights. Except as may be provided by the Board of Directors in setting the terms of classified or reclassified shares of stock pursuant to Section 6.4 or as may otherwise be provided by a contract approved by the Board of Directors, no holder of shares of stock of the Corporation shall, as such holder, have any preemptive right to purchase or subscribe for any additional shares of stock of the Corporation or any other security of the Corporation which it may issue or sell. Holders of shares of stock shall not be entitled to exercise any rights of an objecting stockholder provided for under Title 3, Subtitle 2 of the MGCL or any successor statute unless the Board of Directors, upon the affirmative vote of a majority of the Board of Directors, shall determine that such rights apply, with respect to all or any classes or series of stock, to one or more transactions occurring after the date of such determination in connection with which holders of such shares would otherwise be entitled to exercise such rights.

Section 4.5 Indemnification. The Corporation shall have the power, to the maximum extent permitted by Maryland law in effect from time to time, to obligate itself to indemnify, and to pay or reimburse reasonable expenses in advance of final disposition of a proceeding to, (a) any individual who is a present or former director or officer of the Corporation or (b) any individual who, while a director or officer of the Corporation and at the request of the Corporation, serves or has served as a director, officer, partner, member, manager or trustee of another corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or any other enterprise from and against any claim or liability to which such person may become subject or which such person may incur by reason of his or her service in such capacity. The Corporation shall have the power, with the approval of the Board of Directors, to provide such indemnification and advancement of expenses to a person who served a predecessor of the Corporation in any of the capacities described in (a) or (b) above and to any employee or agent of the Corporation or a predecessor of the Corporation.

Section 4.6 Determinations by Board. The determination as to any of the following matters, made in good faith by or pursuant to the direction of the Board of Directors consistent with the Charter, shall be final and conclusive and shall be binding upon the Corporation and every holder of shares of its stock: the amount of the net income of the Corporation for any period and the amount of assets at any time legally available for the payment of dividends, redemption of its stock or the payment of other distributions on its stock; the amount of paid-in surplus, net assets, other surplus, annual or other cash flow, funds from operations, net profit, net assets in excess of capital, undivided profits or excess of profits over losses on sales of assets; the amount, purpose, time of creation, increase or decrease, alteration or cancellation of any reserves or charges and the propriety thereof (whether or not any obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged); any interpretation of the terms, preferences, conversion or other rights, voting powers or rights, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of any class or series of stock of the Corporation; the fair value, or any sale, bid or asked price to be applied in determining the fair value, of any asset owned or held by the Corporation or of any shares of stock of the Corporation; the number of shares of stock of any class of the Corporation; any matter relating to the acquisition, holding and disposition of any assets by the Corporation; or any other matter relating to the business and affairs of the Corporation or required or permitted by applicable law, the Charter or Bylaws or otherwise to be determined by the Board of Directors.

Section 4.7 REIT Qualification. If the Corporation elects to qualify as a REIT for U.S. federal income tax purposes, the Board of Directors shall take such actions as it determines are necessary or appropriate to preserve the status of the Corporation as a REIT; however, if the Board of Directors determines that it is no longer in the best interests of the Corporation to continue to be qualified as a REIT, the Board of Directors may revoke or otherwise terminate the Corporation’s REIT election pursuant to Section 856(g) of the Code. The Board of Directors also may determine that compliance with one or more of the restrictions or limitations on stock ownership and transfers set forth in Article VI is no longer required for REIT qualification.

Section 4.8 Removal of Directors. Subject to the rights of holders of one or more classes or series of Preferred Stock to elect or remove one or more directors, any director, or the entire Board of Directors, may be removed from office at any time, but only for cause and then only by the affirmative vote of at least two-thirds of the votes entitled to be cast generally in the election of directors. For the purpose of this paragraph, “cause” shall mean, with respect to any particular director, conviction of a felony or a final judgment of a court of competent jurisdiction holding that such director caused demonstrable, material harm to the Corporation through bad faith or active and deliberate dishonesty.

ARTICLE V

STOCK

Section 5.1 Authorized Shares. The Corporation has authority to issue [ ] shares of stock, consisting of [ ] shares of Common Stock, $0.01 par value per share (“Common Stock”), and [ ] shares of Preferred Stock, $0.01 par value per share (“Preferred Stock”). The aggregate par value of all authorized shares of stock having par value is $[ ]. If shares of one class of stock are classified or reclassified into shares of another class of stock pursuant to Section 5.2, 5.3 or 5.4 of this Article V, the number of authorized shares of the former class shall be automatically decreased and the number of shares of the latter class shall be automatically increased, in each case by the number of shares so classified or reclassified, so that the aggregate number of shares of stock of all classes that the Corporation has authority to issue shall not be more than the total number of shares of stock set forth in the first sentence of this paragraph. The Board of Directors, with the approval of a majority of the entire Board and without any action by the stockholders of the Corporation, may amend the Charter from time to time to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Corporation has authority to issue.

Section 5.2 Common Stock. Subject to the provisions of Article VI and except as may otherwise be specified in the terms of any class or series of Common Stock, each share of Common Stock shall entitle the holder thereof to one vote. The Board of Directors may reclassify any unissued shares of Common Stock from time to time in one or more classes or series of stock.

Section 5.3 Preferred Stock. The Board of Directors may classify any unissued shares of Preferred Stock and reclassify any previously classified but unissued shares of Preferred Stock of any series from time to time, in one or more classes or series of stock.

Section 5.4 Classified or Reclassified Shares. Prior to issuance of classified or reclassified shares of any class or series, the Board of Directors by resolution shall: (a) designate that class or series to distinguish it from all other classes and series of stock of the Corporation; (b) specify the number of shares to be included in the class or series; (c) set or change, subject to the provisions of Article VI and subject to the express terms of any class or series of stock of the Corporation outstanding at the time, the preferences, conversion or other rights, voting powers, restrictions, including, without limitation, restrictions on transferability, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption for each class or series; and (d) cause the Corporation to file articles supplementary with the State Department of Assessments and Taxation of Maryland (“SDAT”). Any of the terms of any class or series of stock set or changed pursuant to clause (c) of this Section 5.4 may be made dependent upon facts or events ascertainable outside the Charter (including determinations by the Board of Directors or other facts or events within the control of the Corporation) and may vary among holders thereof, provided that the manner in which such facts, events or variations shall operate upon the terms of such class or series of stock is clearly and expressly set forth in the articles supplementary or other charter document.

Section 5.5 Charter and Bylaws. The rights of all stockholders and the terms of all stock are subject to the provisions of the Charter and the Bylaws.

Section 5.6 Stockholders’ Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of stockholders may be taken without a meeting if a unanimous written consent setting forth the action is given in writing or by electronic transmission by each stockholder entitled to vote on the matter and filed with the minutes of proceedings of the stockholders.

ARTICLE VI

RESTRICTION ON TRANSFER AND OWNERSHIP OF SHARES

Section 6.1 Definitions. For the purpose of this Article VI, the following terms shall have the following meanings:

Aggregate Stock Ownership Limit. The term “Aggregate Stock Ownership Limit” shall mean not more than [__]% in value of the aggregate of the outstanding shares of Capital Stock, subject to adjustment from time to time by the Board of Directors in accordance with Section 6.2.8, excluding any such outstanding Common Stock which is not treated as outstanding for federal income tax purposes. Notwithstanding the foregoing, for purposes of determining the percentage ownership of Capital Stock by any Person, shares of Capital Stock that are treated as Beneficially Owned or Constructively Owned by such Person shall be deemed outstanding. The value of the outstanding shares of Capital Stock shall be determined by the Board of Directors in good faith, which determination shall be conclusive for all purposes hereof.

Beneficial Ownership. The term “Beneficial Ownership” shall mean ownership of shares of Capital Stock by a Person, whether the interest in the shares of Capital Stock is held directly

or indirectly (including by a nominee), and shall include interests that are actually owned or would be treated as owned through the application of Section 544 of the Code, as modified by Sections 856(h)(1)(B) and 856(h)(3) of the Code. The terms “Beneficial Owner,” “Beneficially Owns” and “Beneficially Owned” shall have the correlative meanings.

Business Day. The term “Business Day” shall mean any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in New York City are authorized or required by law, regulation or executive order to close.

Capital Stock. The term “Capital Stock” shall mean all classes or series of stock of the Corporation, including, without limitation, Common Stock and Preferred Stock.

Charitable Beneficiary. The term “Charitable Beneficiary” shall mean one or more beneficiaries of the Trust as determined pursuant to Section 6.3.6, provided that each such organization must be described in Section 501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

Common Stock Ownership Limit. The term “Common Stock Ownership Limit” shall mean [__]% (in value or in number of shares, whichever is more restrictive, and subject to adjustment from time to time by the Board of Directors in accordance with Section 6.2.8) of the aggregate of the outstanding shares of Common Stock of the Corporation, excluding any such outstanding Common Stock which is not treated as outstanding for federal income tax purposes. Notwithstanding the foregoing, for purposes of determining the percentage ownership of Common Stock by any Person, shares of Common Stock that are treated as Beneficially Owned or Constructively Owned by such Person shall be deemed to be outstanding. The number and value of shares of outstanding Common Stock of the Corporation shall be determined by the Board of Directors in good faith, which determination shall be conclusive for all purposes hereof.

Constructive Ownership. The term “Constructive Ownership” shall mean ownership of shares of Capital Stock by a Person, whether the interest in the shares of Capital Stock is held directly or indirectly (including by a nominee), and shall include interests that are actually owned or would be treated as owned through the application of Section 318(a) of the Code, as modified by Section 856(d)(5) of the Code. The terms “Constructive Owner,” “Constructively Owns” and “Constructively Owned” shall have the correlative meanings.

Excepted Holder. The term “Excepted Holder” shall mean any stockholder of the Corporation for whom an Excepted Holder Limit is created by the Board of Directors pursuant to Section 6.2.7.

Excepted Holder Limit. The term “Excepted Holder Limit” shall mean for each Excepted Holder, the percentage limit established by the Board of Directors for such Excepted Holder pursuant to Section 6.2.7, which limit may be expressed, in the discretion of the Board of Directors, as one or more percentages and/or numbers of shares of Capital Stock, and may apply with respect to one or more classes of Capital Stock or to all classes of Capital Stock in the aggregate, provided that the affected Excepted Holder agrees to comply with the requirements

established by the Board of Directors pursuant to Section 6.2.7 and subject to adjustment pursuant to Section 6.2.8.

Individual. The term “Individual” means an individual, a trust qualified under Section 401(a) or 501(c)(17) of the Code, a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, or a private foundation within the meaning of Section 509(a) of the Code, provided that, except as set forth in Section 856(h)(3)(A)(ii) of the Code, a trust described in Section 401(a) of the Code and exempt from tax under Section 501(a) of the Code shall be excluded from this definition.

Initial Date. The term “Initial Date” shall mean the date of the closing of the issuance of Common Stock pursuant to the initial public offering of the Corporation.

Market Price. The term “Market Price” on any date shall mean, with respect to any class or series of outstanding shares of Capital Stock, the Closing Price for such Capital Stock on such date. The “Closing Price” on any date shall mean the last sale price for such Capital Stock, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, for such Capital Stock, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the NYSE or, if such Capital Stock is not listed or admitted to trading on the NYSE, as reported on the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which such Capital Stock is listed or admitted to trading or, if such Capital Stock is not listed or admitted to trading on any national securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the principal automated quotation system on which such Capital Stock is quoted, if such Capital Stock is not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such Capital Stock selected by the Board of Directors or, in the event that no trading price is available for such Capital Stock, the fair market value of the Capital Stock, as determined in good faith by the Board of Directors.

NYSE. The term “NYSE” shall mean the New York Stock Exchange.

Person. The term “Person” shall mean an Individual, corporation, partnership, limited liability company, estate, trust, association, joint stock company or other entity and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

Prohibited Owner. The term “Prohibited Owner” shall mean, with respect to any purported Transfer, any Person who, but for the provisions of Section 6.2.1, would Beneficially Own or Constructively Own shares of Capital Stock, and if appropriate in the context, shall also mean any Person who would have been the record owner of the shares that the Prohibited Owner would have so owned.

Restriction Termination Date. The term “Restriction Termination Date” shall mean the first day after the Initial Date on which the Board of Directors determines pursuant to Section 4.7 of the Charter that it is no longer in the best interests of the Corporation to attempt to, or continue

to, qualify as a REIT or that compliance with the restrictions and limitations on Beneficial Ownership, Constructive Ownership and Transfers of shares of Capital Stock set forth herein is no longer required in order for the Corporation to qualify as a REIT.

Transfer. The term “Transfer” shall mean any issuance, sale, transfer, gift, assignment, devise or other disposition, as well as any other event that causes any Person to acquire, or change its level of, Beneficial Ownership or Constructive Ownership, or any agreement to take any such actions or cause any such events, of Capital Stock or the right to vote or receive dividends on Capital Stock, including (a) the granting or exercise of any option (or any disposition of any option), (b) any disposition of any securities or rights convertible into or exchangeable for Capital Stock or any interest in Capital Stock or any exercise of any such conversion or exchange right and (c) Transfers of interests in other entities that result in changes in Beneficial Ownership or Constructive Ownership of Capital Stock; in each case, whether voluntary or involuntary, whether owned of record, Beneficially Owned or Constructively Owned and whether by operation of law or otherwise. The terms “Transferring” and “Transferred” shall have the correlative meanings.

Trust. The term “Trust” shall mean any trust provided for in Section 6.3.1.

Trustee. The term “Trustee” shall mean the Person who is not affiliated with either the Corporation or any Prohibited Owner, which Person is appointed by the Corporation to serve as trustee of the Trust.

Section 6.2 Capital Stock.

Section 6.2.1 Ownership Limitations. During the period commencing on the Initial Date and prior to the Restriction Termination Date, but subject to Section 6.4:

(a) Basic Restrictions.

(i) (1) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own shares of Capital Stock in excess of the Aggregate Stock Ownership Limit, (2) no Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own shares of Common Stock in excess of the Common Stock Ownership Limit and (3) no Excepted Holder shall Beneficially Own or Constructively Own shares of Capital Stock in excess of the Excepted Holder Limit for such Excepted Holder.

(ii) No Person shall Beneficially Own or Constructively Own shares of Capital Stock to the extent that such Beneficial or Constructive Ownership of shares of Capital Stock could result in the Corporation being “closely held” within the meaning of Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year), or otherwise failing to qualify as a REIT (including, but not limited to, Beneficial Ownership or Constructive Ownership that could result in the Corporation Constructively Owning an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income derived by

the Corporation from such tenant, taking into account any other income of the Corporation that would not qualify under the gross income requirements of Section 856(c) of the Code, would cause the Corporation to fail to satisfy any of such gross income requirements).

(iii) Any Transfer of shares of Capital Stock that, if effective, would result in the Capital Stock being beneficially owned by fewer than 100 Persons (determined under the principles of Section 856(a)(5) of the Code) shall be void ab initio, and the intended transferee shall acquire no rights in such shares of Capital Stock.

Without limitation of the application of any other provision of this Article VI, it is expressly intended that the restrictions on ownership and Transfer described in this Section 6.2.1 of Article VI shall apply to restrict the rights of any members or partners in limited liability companies or partnerships to exchange their interest in such entities for shares of Capital Stock of the Corporation.

(b) Transfer in Trust. If any Transfer of shares of Capital Stock (whether or not such Transfer is the result of a transaction entered into through the facilities of the NYSE or any other national securities exchange or automated inter-dealer quotation system) occurs which, if effective, would result in any Person Beneficially Owning or Constructively Owning shares of Capital Stock in violation of Section 6.2.1(a)(i) or (ii):

(i) then that number of shares of the Capital Stock, the Beneficial Ownership or Constructive Ownership of which otherwise would cause such Person to violate Section 6.2.1(a)(i) or (ii) (rounded up to the nearest whole share) shall be automatically transferred to a Trust for the benefit of a Charitable Beneficiary, as described in Section 6.3, effective as of the close of business on the Business Day prior to the date of such Transfer, and such Person shall acquire no rights in such shares; or

(ii) if the Transfer to the Trust described in clause (i) of this sentence would not be effective for any reason to prevent the violation of Section 6.2.1(a)(i) or (ii), then the Transfer of that number of shares of Capital Stock that otherwise would cause any Person to violate Section 6.2.1(a)(i) or (ii) shall be void ab initio, and the intended transferee shall acquire no rights in such shares of Capital Stock.

In determining which shares of Capital Stock are to be transferred to a Trust in accordance with this Section 6.2.1(b) and Section 6.3 hereof, shares shall be so transferred to a Trust in such manner as minimizes the aggregate value of the shares that are transferred to the Trust (except as provided in Section 6.2.6) and, to the extent not inconsistent therewith, on a pro rata basis. To the extent that, upon a transfer of shares of Capital Stock pursuant to this Section 6.2.1(b), a violation of any provision of Section 6.2.1(a) would nonetheless be continuing (as, for example, where the ownership of shares of Capital Stock by a single Trust would result in the shares of Capital Stock

being Beneficially Owned (determined under the principles of Section 856(a)(5) of the Code) by fewer than 100 Persons), then shares of Capital Stock shall be transferred to that number of Trusts, each having a Trustee and a Charitable Beneficiary or Beneficiaries that are distinct from those of each other Trust, such that there is no violation of any provision of Section 6.2.1(a) hereof.

Section 6.2.2 Remedies for Breach. If the Board of Directors or any duly authorized committee thereof shall at any time determine in good faith that a Transfer or other event has taken place that results in a violation of Section 6.2.1 or that a Person intends or has attempted to acquire Beneficial Ownership or Constructive Ownership of any shares of Capital Stock in violation of Section 6.2.1 (whether or not such violation is intended), the Board of Directors or a committee thereof shall take such action as it deems advisable, in its sole and absolute discretion, to refuse to give effect to or to prevent such Transfer or other event, including, without limitation, causing the Corporation to redeem shares, refusing to give effect to such Transfer on the books of the Corporation or instituting proceedings to enjoin such Transfer or other event; provided, however, that any Transfer or attempted Transfer or other event in violation of Section 6.2.1 shall automatically result in the transfer to the Trust described above, or, where applicable, such Transfer (or other event) shall be void ab initio as provided above irrespective of any action (or non-action) by the Board of Directors or a committee thereof.

Section 6.2.3 Notice of Restricted Transfer. Any Person who acquires or attempts or intends to acquire Beneficial Ownership or Constructive Ownership of shares of Capital Stock that will or may violate Section 6.2.1(a) or any Person who would have owned shares of Capital Stock that resulted in a transfer to the Trust pursuant to the provisions of Section 6.2.1(b) shall immediately give written notice to the Corporation of such event or, in the case of such a proposed or attempted transaction, give at least fifteen (15) days prior written notice, and shall provide to the Corporation such other information as the Corporation may request in order to determine the effect, if any, of such Transfer on the Corporation’s status as a REIT.

Section 6.2.4 Owners Required To Provide Information. From the Initial Date and prior to the Restriction Termination Date:

(a) every owner of five percent or more (or such lower percentage as required by the Code or the Treasury Regulations promulgated thereunder) of the outstanding shares of Capital Stock, within thirty (30) days after the end of each taxable year, shall give written notice to the Corporation stating the name and address of such owner, the number of shares of each class or series of Capital Stock Beneficially Owned and a description of the manner in which such shares are held. Each such owner shall provide promptly to the Corporation in writing such additional information as the Corporation may request in order to determine the effect, if any, of such Beneficial Ownership on the Corporation’s status as a REIT and to ensure compliance with the Aggregate Stock Ownership Limit and the Common Stock Ownership Limit; and

(b) each Person who is a Beneficial Owner or Constructive Owner of shares of Capital Stock and each Person (including the stockholder of record) who is holding shares of Capital Stock for a Beneficial or Constructive Owner shall, on demand, provide to the Corporation in writing such information as the Corporation may request, in good faith, in order to determine the Corporation’s status as a REIT and to comply with requirements of any taxing authority or governmental authority or to determine such compliance.

Section 6.2.5 Remedies Not Limited. Subject to Section 4.7, nothing contained in this Section 6.2 shall limit the authority of the Board of Directors to take such other action as it deems necessary or advisable to protect the Corporation and the interests of its stockholders in preserving the Corporation’s status as a REIT.

Section 6.2.6 Ambiguity. In the case of an ambiguity in the application of any of the provisions of this Article VI, including Section 6.2, Section 6.3, or any definition contained in Section 6.1 or any defined term used in this Article VI but defined elsewhere in the Charter, the Board of Directors shall have the power to determine the application of the provisions of this Article VI with respect to any situation based on the facts known to it. In the event Section 6.2 or 6.3 requires an action by the Board of Directors and the Charter fails to provide specific guidance with respect to such action, the Board of Directors shall have the power to determine the action to be taken so long as such action is not contrary to the provisions of Sections 6.1, 6.2 or 6.3. Absent a decision to the contrary by the Board of Directors (which the Board of Directors may make in its sole and absolute discretion), if a Person would have (but for the remedies set forth in Section 6.2.2) acquired Beneficial or Constructive Ownership of shares of Capital Stock in violation of Section 6.2.1, such remedies (as applicable) shall apply first to the shares of Capital Stock which, but for such remedies, would have been actually owned by such Person, and second to shares of Capital Stock which, but for such remedies, would have been Beneficially Owned or Constructively Owned (but not actually owned) by such Person, pro rata among the Persons who actually own such shares of Capital Stock based upon the relative number of the shares of Capital Stock held by each such Person.

Section 6.2.7 Exceptions.

(a) Subject to Section 6.2.1(a)(ii), the Board of Directors of the Corporation, in its sole and absolute discretion, may exempt (prospectively or retroactively) a Person from the Aggregate Stock Ownership Limit or the Common Stock Ownership Limit, as the case may be, or may establish or increase an Excepted Holder Limit for such Person if:

(i) the Board of Directors determines, based on such representations and undertakings from such Person to the extent required by the Board of Directors and as are reasonably necessary to ascertain, that such exemption will not cause any Individual’s Beneficial Ownership of shares of Capital Stock to violate the Aggregate Stock Ownership Limit; and

(ii) the Board of Directors determines that such Person does not and will not Constructively Own an interest in a tenant of the Corporation (or a tenant of any entity directly or indirectly owned, in whole or in part, by the Corporation) that would cause the Corporation to Constructively Own more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the Code) in such tenant, and the Board of Directors obtains such representations and undertakings from such Person to the extent required by the Board of Directors as are reasonably necessary to ascertain this fact (for this purpose, in the Board of Director’s sole and absolute discretion, a tenant from whom the Corporation (or an entity directly or indirectly owned, in whole or in part, by the Corporation) derives (and is expected to continue to derive) a sufficiently small amount of revenue such that, in the opinion of the Board of Directors, rent from such tenant would not adversely affect the Corporation’s ability to qualify as a REIT shall not be treated as a tenant of the Corporation).

(b) Prior to granting any exception pursuant to Section 6.2.7(a), the Board of Directors may require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in form and substance satisfactory to the Board of Directors in its sole and absolute discretion, as it may deem necessary or advisable in order to determine or ensure the Corporation’s status as a REIT. Notwithstanding the receipt of any ruling or opinion, the Board of Directors may impose such conditions or restrictions as it deems appropriate in connection with granting such exception.

(c) Subject to Section 6.2.1(a)(ii), an underwriter which participates in a public offering or a private placement of Capital Stock (or securities convertible into or exchangeable for Capital Stock) may Beneficially Own or Constructively Own shares of Capital Stock (or securities convertible into or exchangeable for Capital Stock) in excess of the Common Stock Ownership Limit, the Aggregate Stock Ownership Limit, or both such limits, but only to the extent necessary to facilitate such public offering or private placement.

(d) The Board of Directors may only reduce the Excepted Holder Limit for an Excepted Holder: (1) with the written consent of such Excepted Holder at any time, or (2) pursuant to the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder Limit shall be reduced to a percentage that is less than the Common Stock Ownership Limit or the Aggregate Stock Ownership Limit, as applicable.

Section 6.2.8 Increase or Decrease in Aggregate Stock Ownership and Common Stock Ownership Limits. Subject to Section 6.2.1(a)(ii) and the rest of this Section 6.2.8, the Board of Directors may, in its sole and absolute discretion, from time to time increase or decrease the Common Stock Ownership Limit and/or the Aggregate Stock Ownership Limit for one or more Persons; provided, however, that a decreased Common Stock

Ownership Limit and/or Aggregate Stock Ownership Limit will not be effective for any Person who Beneficially Owns or Constructively Owns, as applicable, shares of Capital Stock in excess of such decreased Common Stock Ownership Limit and/or Aggregate Stock Ownership Limit at the time such limit is decreased, until such time as such Person’s Beneficial Ownership or Constructive Ownership of shares of Capital Stock, as applicable, equals or falls below the decreased Common Stock Ownership Limit and/or Aggregate Stock Ownership Limit, but any further acquisition of shares of Capital Stock or increased Beneficial Ownership or Constructive Ownership of shares of Capital Stock will be in violation of the Common Stock Ownership Limit and/or Aggregate Stock Ownership Limit and, provided further, that the new Common Stock Ownership Limit and/or Aggregate Stock Ownership Limit would not allow five or fewer Persons to Beneficially Own more than 49% in value of the outstanding Capital Stock.

Section 6.2.9 Legend. Each certificate representing shares of Capital Stock, if any, shall bear substantially the following legend:

The shares represented by this certificate are subject to restrictions on Beneficial and Constructive Ownership and Transfer for the purpose of the Corporation’s maintenance of its status as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to certain further restrictions and except as expressly provided in the Corporation’s Charter, (i) no Person may Beneficially Own or Constructively Own shares of the Corporation’s Common Stock in excess of [__]% (in value or number of shares) of the outstanding shares of Common Stock of the Corporation unless such Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (ii) no Person may Beneficially Own or Constructively Own shares of Capital Stock of the Corporation in excess of [__]% of the value of the total outstanding shares of Capital Stock of the Corporation, unless such Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (iii) no Person may Beneficially Own or Constructively Own Capital Stock that would result in the Corporation being “closely held” under Section 856(h) of the Code or otherwise cause the Corporation to fail to qualify as a REIT; and (iv) no Person may Transfer shares of Capital Stock if such Transfer would result in the Capital Stock of the Corporation being owned by fewer than 100 Persons. Any Person who Beneficially Owns or Constructively Owns or attempts to Beneficially Own or Constructively Own shares of Capital Stock which causes or will cause a Person to Beneficially Own or Constructively Own shares of Capital Stock in excess or in violation of the above limitations must immediately notify the Corporation. If any of the restrictions on transfer or ownership set forth in (i) through (iii) above are violated, the shares of Capital Stock represented hereby will be automatically transferred to a Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In addition, the Corporation may take other actions, including redeeming shares upon the terms and conditions specified by the Board of Directors in its sole and absolute discretion if

the Board of Directors determines that ownership or a Transfer or other event may violate the restrictions described above. Furthermore, upon the occurrence of certain events, attempted Transfers in violation of the restrictions described above may be void ab initio. All capitalized terms in this legend have the meanings defined in the Charter of the Corporation, as the same may be amended from time to time, a copy of which, including the restrictions on transfer and ownership, will be furnished to each holder of Capital Stock of the Corporation on request and without charge. Requests for such a copy may be directed to the Secretary of the Corporation at its Principal Office.

Instead of the foregoing legend, a certificate may state that the Corporation will furnish a full statement about certain restrictions on ownership and transfer of the shares to a stockholder on request and without charge.

Section 6.3 Transfer of Capital Stock in Trust.

Section 6.3.1 Ownership in Trust. Upon any purported Transfer or other event described in Section 6.2.1(b) that would result in a transfer of shares of Capital Stock to a Trust, such shares of Capital Stock shall be deemed to have been transferred to the Trustee as trustee of a Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such transfer to the Trustee shall be deemed to be effective as of the close of business on the Business Day prior to the purported Transfer or other event that results in the transfer to the Trust pursuant to Section 6.2.1(b). The Trustee shall be appointed by the Corporation and shall be a Person who is not affiliated with either the Corporation or any Prohibited Owner. Each Charitable Beneficiary shall be designated by the Corporation as provided in Section 6.3.6.

Section 6.3.2 Status of Shares Held by the Trustee. Shares of Capital Stock held by the Trustee shall be issued and outstanding shares of Capital Stock of the Corporation. The Prohibited Owner shall have no rights in the shares held by the Trustee. The Prohibited Owner shall not benefit economically from ownership of any shares held in trust by the Trustee, shall have no rights to dividends or other distributions and shall not possess any rights to vote or other rights attributable to the shares held in the Trust. The Prohibited Owner shall have no claim, cause of action, or any other recourse whatsoever against the purported transferor of such Capital Stock.

Section 6.3.3 Dividend and Voting Rights. The Trustee shall have all voting rights and rights to dividends or other distributions with respect to shares of Capital Stock held in the Trust, which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any dividend or other distribution paid prior to the discovery by the Corporation that the shares of Capital Stock have been transferred to the Trustee shall be paid by the recipient of such dividend or other distribution to the Trustee upon demand and any dividend or other distribution authorized but unpaid shall be paid when due to the Trustee. Any dividend or distribution so paid to the Trustee shall be held in trust for the Charitable Beneficiary. The Prohibited Owner shall have no voting rights with respect to shares held in the Trust and, subject to Maryland law, effective as of the date that the shares of Capital Stock have been transferred to the Trustee, the Trustee shall have the

authority (at the Trustee’s sole and absolute discretion) (i) to rescind as void any vote cast by a Prohibited Owner prior to the discovery by the Corporation that the shares of Capital Stock have been transferred to the Trustee and (ii) to recast such vote in accordance with the desires of the Trustee acting for the benefit of the Charitable Beneficiary; provided, however, that if the Corporation has already taken irreversible corporate action, then the Trustee shall not have the authority to rescind and recast such vote. Notwithstanding the provisions of this Article VI, until the Corporation has received notification that shares of Capital Stock have been transferred into a Trust, the Corporation shall be entitled to rely on its share transfer and other stockholder records for purposes of preparing lists of stockholders entitled to vote at meetings, determining the validity and authority of proxies and otherwise conducting votes of stockholders.

Section 6.3.4 Sale of Shares by Trustee. Within twenty (20) days of receiving notice from the Corporation that shares of Capital Stock have been transferred to the Trust, the Trustee of the Trust shall sell the shares held in the Trust to a Person or Persons, designated by the Trustee, whose ownership of the shares will not violate the ownership limitations set forth in Section 6.2.1(a). Upon such sale, the interest of the Charitable Beneficiary in the shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary as provided in this Section 6.3.4. The Prohibited Owner shall receive the lesser of (1) the price paid by the Prohibited Owner for the shares or, if the Prohibited Owner did not give value for the shares in connection with the event causing the shares to be held in the Trust (e.g., in the case of a gift, devise or other such transaction), the Market Price of the shares on the day of the event causing the shares to be held in the Trust and (2) the price per share received by the Trustee (net of any commissions and other expenses of sale) from the sale or other disposition of the shares held in the Trust. The Trustee shall reduce the amount payable to the Prohibited Owner by the amount of dividends and other distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Section 6.3.3 of this Article VI. Any net sales proceeds in excess of the amount payable to the Prohibited Owner shall be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the Corporation that shares of Capital Stock have been transferred to the Trustee, such shares are sold by a Prohibited Owner, then (i) such shares shall be deemed to have been sold on behalf of the Trust and (ii) to the extent that the Prohibited Owner received an amount for such shares that exceeds the amount that such Prohibited Owner was entitled to receive pursuant to this Section 6.3.4, such excess shall be paid to the Trustee upon demand.

Section 6.3.5 Purchase Right in Capital Stock Transferred to the Trustee. Shares of Capital Stock transferred to the Trustee shall be deemed to have been offered for sale to the Corporation, or its designee, at a price per share equal to the lesser of (i) the price per share in the transaction that resulted in such transfer to the Trust (or, in the case of a devise, gift or other transaction, the Market Price at the time of such devise, gift or other transaction) and (ii) the Market Price on the date the Corporation, or its designee, accepts such offer. The Corporation shall reduce the amount payable to the Prohibited Owner by the amount of dividends and distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Trustee pursuant to Section 6.3.3 of this Article VI. The Corporation shall pay the amount of such reduction

to the Trustee for the benefit of the Charitable Beneficiary. The Corporation shall have the right to accept such offer until the Trustee has sold the shares held in the Trust pursuant to Section 6.3.4. Upon such a sale to the Corporation, the interest of the Charitable Beneficiary in the shares sold shall terminate and the Trustee shall distribute the net proceeds of the sale to the Prohibited Owner.

Section 6.3.6 Designation of Charitable Beneficiaries. By written notice to the Trustee, the Corporation shall designate one or more nonprofit organizations to be the Charitable Beneficiary of the interest in the Trust such that the shares of Capital Stock held in the Trust would not violate the restrictions set forth in Section 6.2.1(a) in the hands of such Charitable Beneficiary. Neither the failure of the Corporation to make such designation nor the failure of the Corporation to appoint the Trustee before the automatic transfer provided for in Section 6.2.1(b)(i) shall make such transfer ineffective, provided that the Corporation thereafter makes such designation and appointment.

Section 6.4 NYSE Transactions. Nothing in this Article VI shall preclude the settlement of any transaction entered into through the facilities of the NYSE or any other national securities exchange or automated inter-dealer quotation system. The fact that the settlement of any transaction occurs shall not negate the effect of any other provision of this Article VI and any transferee in such a transaction shall be subject to all of the provisions and limitations set forth in this Article VI.

Section 6.5 Enforcement. The Corporation is authorized specifically to seek equitable relief, including injunctive relief, to enforce the provisions of this Article VI.

Section 6.6 Non-Waiver. No delay or failure on the part of the Corporation or the Board of Directors in exercising any right hereunder shall operate as a waiver of any right of the Corporation or the Board of Directors, as the case may be, except to the extent specifically waived in writing.

Section 6.7 Severability. If any provision of this Article VI or any application of any such provision is determined to be invalid by any federal or state court having jurisdiction over the issues, the validity of the remaining provisions shall not be affected and other applications of such provisions shall be affected only to the extent necessary to comply with the determination of such court.

ARTICLE VII

AMENDMENTS

The Corporation reserves the right from time to time to make any amendment to its Charter now or hereafter authorized by law, including any amendment altering the terms or contract rights, as expressly set forth in the Charter, of any shares of outstanding stock. All rights and powers conferred by the Charter on stockholders, directors and officers are granted subject to this reservation. Except as set forth in the next sentence of the Charter, and except for those amendments permitted to be made without stockholder approval under Maryland law or by specific provision in the Charter, any amendment to the Charter shall be valid only if declared

advisable by the Board of Directors and approved by the affirmative vote of stockholders entitled to cast a majority of all the votes entitled to be cast on the matter. However, any amendment to Section 4.8, Section 5.6 or to this sentence of the Charter shall be valid only if declared advisable by the Board of Directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of all the votes entitled to be cast on the matter.

ARTICLE VIII

LIMITATION OF LIABILITY

To the maximum extent that Maryland law in effect from time to time permits limitation of the liability of directors and officers of a corporation, no present or former director or officer of the Corporation shall be liable to the Corporation or its stockholders for money damages. Neither the amendment nor repeal of this Article VIII, nor the adoption or amendment of any other provision of the Charter or Bylaws inconsistent with this Article VIII, shall apply to or affect in any respect the applicability of the preceding sentence with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

THIRD: The amendment to and restatement of the Charter as hereinabove set forth have been duly advised by the Board of Directors and approved by the stockholders of the Corporation as required by law.

FOURTH: The current address of the principal office of the Corporation is as set forth in Article III of the foregoing amendment and restatement of the Charter.

FIFTH: The name and address of the Corporation’s current resident agent is as set forth in Article III of the foregoing amendment and restatement of the Charter.

SIXTH: The number of directors of the Corporation and the names of those currently in office are as set forth in Article IV of the foregoing amendment and restatement of the Charter.

SEVENTH: The total number of shares of stock which the Corporation had authority to issue immediately prior to this amendment and restatement was [ ] shares, $0.01 par value per share of common stock. The aggregate par value of all shares of stock having par value was $[ ].

EIGHTH: The total number of shares of stock which the Corporation has authority to issue pursuant to the foregoing amendment and restatement of the Charter is [ ], consisting of [ ] shares of Common Stock, $0.01 par value per share, and [ ] shares of Preferred Stock, $0.01 par value per share. The aggregate par value of all authorized shares of stock having par value is $[ ].

NINTH: The undersigned Chief Executive Officer acknowledges these Articles of Amendment and Restatement to be the corporate act of the Corporation and as to all matters or facts required to be verified under oath, the undersigned Chief Executive Officer acknowledges that, to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment and Restatement to be signed in its name and on its behalf by its Chief Executive Officer and attested to by its Secretary as of the day of , 2010.


ATTEST:		AMERICAN ASSETS TRUST, INC.:

		By:
Name:	Xxxx Xxxx	Name:	Xxxx Xxxxxxxxxxx
Title:	Secretary	Title:	Chief Executive Officer

Exhibit C

Form of Registration Rights Agreement

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT is entered into as of [ ], 2010 by and among American Assets Trust, Inc., a Maryland corporation (the “Company”), and the holders listed on Schedule I hereto (each an “Initial Holder” and, collectively, the “Initial Holders”).

RECITALS

WHEREAS, in connection with the initial public offering (the “IPO”) of shares of the Company’s common stock, par value $.01 per share (the “Common Stock”), the Company and American Assets Trust, L.P., a Maryland limited partnership (the “Operating Partnership”), have concurrently engaged in certain formation transactions (the “Formation Transactions”), pursuant to which the Initial Holders have concurrently received, in exchange for their (or certain related parties’) respective interests in the entities participating in the Formation Transactions or in exchange for services rendered, (i) common units of limited partnership interest in the Operating Partnership (“Common OP Units”) and/or (iii) shares of Common Stock;

WHEREAS, upon the terms and subject to the conditions contained in the Operating Partnership Agreement (as defined below), Common OP Units will be redeemable for cash or, at the Company’s option, exchangeable for shares of Common Stock;

WHEREAS, as a condition to receiving the consent of the Initial Holders to the Formation Transactions, the Company has agreed to grant the Initial Holders and their permitted assignees and transferees the registration rights set forth in Article II hereof.

NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1. Definitions. In addition to the definitions set forth above, the following terms, as used herein, have the following meanings:

“Affiliate” of any Person means any other Person directly or indirectly controlling or controlled by or under common control with such Person. For the purposes of this definition, “control” when used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Agreement” means this Registration Rights Agreement, as it may be amended, supplemented or restated from time to time.

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in The City of New York, New York or San Diego, California are authorized by law to close.

“Charter” means the Articles of Amendment and Restatement of the Company as filed with the Secretary of State of the State of Maryland on [ ], 2010, as the same may be amended, modified or restated from time to time.

“Commission” means the Securities and Exchange Commission.

“Company Piggy-Back Registration” has the meaning set forth in Section 2.1(a).

“Effectiveness Period” has the meaning set forth in Section 2.4(b).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“Exchangeable Common OP Units” means Common OP Units which may be redeemable for cash or, at the Company’s option, exchangeable for shares of Common Stock pursuant to the Operating Partnership Agreement (without regard to any limitations on the exercise of such exchange right as a result of the Ownership Limit Provisions).

“Holder” means (i) any Initial Holder who is the record or beneficial owner of any Registrable Security or (ii) any assignee or transferee of such Initial Holder (including assignments or transfers of Registrable Securities to such assignees or transferees as a result of the foreclosure on any loans secured by such Registrable Securities) (x) to the extent permitted under the Operating Partnership Agreement or the Charter, as applicable, and (y) provided such assignee or transferee agrees in writing to be bound by all the provisions hereof.

“Indemnified Party” has the meaning set forth in Section 2.10.

“Indemnifying Party” has the meaning set forth in Section 2.10.

“Initial Period” means a period commencing on the date hereof and ending 365 days following the effective date of the first Resale Shelf Registration Statement (except that, if the shares of Common Stock issuable upon exchange of Exchangeable Common OP Units received in the Formation Transactions are not included in that Resale Shelf Registration Statement as a result of Section 2.4(b), the 365 days shall not begin until the later of the effective date of (i) the first Resale Shelf Registration Statement and (ii) the first Issuer Shelf Registration Statement).

“Issuer Shelf Registration Statement” has the meaning set forth in Section 2.4(b).

“Market Value” means, with respect to the Common Stock, the average of the daily market price for the ten (10) consecutive trading days immediately preceding the date of a written request for registration pursuant to Section 2.1(a). The market price for each such

trading day shall be: (i) if the Common Stock is 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, in either case as reported in the principal consolidated transaction reporting system, (ii) if the Common Stock is 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 Company, or (iii) if the Common Stock is 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 Company, 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 ten (10) days prior to the date in question, the Market Value of the Common Stock shall be determined by the Board of Directors of the Company acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment, appropriate.

“Notice and Questionnaire” means a written notice, substantially in the form attached as Exhibit A , delivered by a Holder to the Company (i) notifying the Company of such Holder’s desire to include Registrable Securities held by it in a Resale Shelf Registration Statement, (ii) containing all information about such Holder required to be included in such registration statement in accordance with applicable law, including Item 507 of Regulation S-K promulgated under the Securities Act, as amended from time to time, or any similar successor rule thereto, and (iii) pursuant to which such Holder agrees to be bound by the terms and conditions hereof.

“Operating Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of [ ], 2010, as the same may be amended, modified or restated from time to time.

“Ownership Limit Provisions” mean the various provisions of the Company’s Charter set forth in Article [__] thereof restricting the ownership of Common Stock by Persons to specified percentages of the outstanding Common Stock.

“Person” means an individual or a corporation, partnership, limited liability company, association, trust, or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

“Rady Demand Registration” has the meaning set forth in Section 2.1(a).

“Rady Demand Registration Statement” has the meaning set forth in Section 2.1(a).

“Rady Holder” means a Holder that is Xxxxxx X. Xxxx, or his Affiliates, immediate family members, trusts of immediate family members, estates or heirs or successors or assigns or

the Xxxxxx Xxxx Trust U/D/T March 10, 1983, as amended, or its Affiliates, successors or assigns.

“Rady Piggy-Back Registration” shall have the meaning set forth in Section 2.2.

“Registrable Securities” means with respect to any Holder, shares of Common Stock owned, either of record or beneficially, by such Holder that were (a) received by such Holder or an Initial Holder in the Formation Transactions, (b) acquired by such Holder or an Initial Holder directly from the Underwriters or the Company in the IPO, in each case in a transaction disclosed in the registration statement relating to the IPO, (c) issued or issuable upon exchange of Exchangeable Common OP Units received by such Holder or an Initial Holder in the Formation Transactions, (d) solely in the case of any Rady Holder, any Common Stock acquired by such Rady Holder in the open market after the date hereof and prior to the first (^1st) anniversary of the date hereof, and, (e) in the case of (a), (b), (c) and (d), any additional shares of Common Stock issued as a dividend or distribution on, in exchange for, or otherwise in respect of, such shares (including as a result of combinations, recapitalizations, mergers, consolidations, reorganizations or otherwise).

As to any particular Registrable Securities, they shall cease to be Registrable Securities at the earliest time as one of the following shall have occurred: (i) a registration statement (including a Resale Shelf Registration Statement) covering such shares has been declared effective by the Commission and all such shares have been disposed of pursuant to such effective registration statement or unless such shares (other than Restricted Shares) were issued pursuant to an effective registration statement (including an Issuer Shelf Registration Statement), (ii) such shares have been publicly sold under Rule 144, (iii) all such shares may be sold in one transaction pursuant to Rule 144 or (iv) such shares have been otherwise transferred in a transaction that constitutes a sale thereof under the Securities Act, the Company has delivered to the Holder’s transferee a new certificate or other evidence of ownership for such shares not bearing the Securities Act restricted stock legend and such shares subsequently may be resold or otherwise transferred by such transferee without registration under the Securities Act.

“Registration Expenses” shall have the meaning set forth in Section 2.2.

“Resale Shelf Registration” shall have the meaning set forth in Section 2.4(a).

“Resale Shelf Registration Statement” shall have the meaning set forth in Section 2.4(a).

“Restricted Shares” means shares of Common Stock issued under an Issuer Shelf Registration Statement which if sold by the holder thereof would constitute “restricted securities” as defined under Rule 144.

“Rule 144” means Rule 144 promulgated under the Securities Act, as amended from time to time, or any similar successor rule thereto that may be promulgated by the Commission.

“Rule 415” means Rule 415 promulgated under the Securities Act, as amended from time to time, or any similar successor rule thereto that may be promulgated by the Commission.

“Securities Act” means the Securities Act of 1933, as amended (together with the rules and regulations promulgated thereunder.

“Selling Holder” means a Holder who is selling Registrable Securities pursuant to a registration statement under the Securities Act pursuant to the terms hereof.

“Shelf Registration Statement” means a Resale Shelf Registration Statement and/or an Issuer Shelf Registration Statement.

“Suspension Notice” means any written notice delivered by the Company pursuant to Section 2.14 with respect to the suspension of rights under a Resale Shelf Registration Statement or any prospectus contained therein.

“Underwriter” means a securities dealer who purchases any Registrable Securities as principal and not as part of such dealer’s market-making activities.

ARTICLE II

REGISTRATION RIGHTS

Section 2.1. Underwritten Demand Registration.

(a) Commencing on or after the date that is three hundred sixty five (365) days after the consummation date of the IPO and until such time as a Resale Shelf Registration Statement (or to the extent permitted by Section 2.4(b), an Issuer Shelf Registration Statement) has been declared effective, or if at any time on or after the date that is sixteen (16) months after the consummation date of the IPO, a Resale Shelf Registration Statement (or to the extent permitted by Section 2.4(b), an Issuer Shelf Registration Statement) shall not be effective, the majority in interest of the Rady Holder(s) may make written requests to the Company for one or more registrations of underwritten offerings under the Securities Act of all or part of their Common Stock constituting Registrable Securities (a “Rady Demand Registration”). The Company shall prepare and file a registration statement on an appropriate form with respect to any Rady Demand Registration (the “Rady Demand Registration Statement”) and shall use its reasonable efforts to cause the Rady Demand Registration Statement to be declared effective by the Commission as promptly as reasonably practicable after the filing thereof. Any request for a Rady Demand Registration will specify the number of shares of Registrable Securities proposed to be sold in the underwritten offering. The Company shall have the opportunity to register such number of shares of Common Stock as it may elect on the Rady Demand Registration Statement and as part of the same underwritten offering in connection with a Rady Demand Registration (a “Company Piggy-Back Registration”). Unless a majority in interest of the Rady Holders participating in such Rady Demand Registration shall consent in writing, no party, other than the Company, shall be permitted to offer securities in connection with any such Rady Demand Registration.

(b) Underwriters. The Company shall select the book-running managing Underwriter in connection with any Rady Demand Registration; provided that such managing Underwriter must be reasonably satisfactory to a majority in interest of the Rady Holders participating in such Rady Demand Registration. The Company may select any additional investment banks and managers to be used in connection with the offering; provided that such additional investment bankers and managers must be reasonably satisfactory to a majority in interest of the Rady Holders participating in such Rady Demand Registration.

Section 2.2. Piggy-Back Registration. If the Company proposes to file a registration statement under the Securities Act with respect to an underwritten offering of Common Stock by the Company for its own account (other than (i) any registration statement filed in connection with a demand registration by a party other than a Rady Holder or (ii) a registration statement on Form S-4 or S-8 (or any substitute form that may be adopted by the Commission) or filed in connection with an exchange offer or offering of securities solely to the Company’s existing securityholders), then the Company shall give written notice of such proposed filing to the Rady Holders as soon as practicable (but in no event less than ten (10) days before the anticipated filing date), and such notice shall offer such Rady Holders the opportunity to register such number of shares of Registrable Securities as each such Rady Holder may request (a “Rady Piggy-Back Registration”); provided, that if and so long as a Shelf Registration Statement is on file and effective, then the Company shall have no obligation to effect a Rady Piggy-Back Registration. The Company shall use its commercially reasonable efforts to cause the managing Underwriter(s)of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Rady Piggy-Back Registration to be included on the same terms and conditions as any similar securities of the Company included therein.

Section 2.3. Reduction of Offering. Notwithstanding anything contained in Sections 2.1 and 2.2, if the managing Underwriter(s) of an offering described in Section 2.1 or 2.2 advise in writing the Company and the Rady Holders that the size of the intended offering is such that the success of the offering would be significantly and adversely affected by inclusion of (i) the Registrable Securities requested to be included by the Rady Holders in a Rady Piggy-Back Registration or (ii) the Common Stock requested to be included by the Company in a Rady Demand Registration/Company Piggy-Back Registration, then: (x) in the case of a Rady Demand Registration/ Company Piggy-Back Registration, the amount of the Common Stock to be offered for the account of the Company shall be reduced to the extent necessary to reduce the total amount of securities to be included in such offering to the amount recommended by such managing Underwriter(s), provided, that the amount of securities to be offered by the Company shall not be reduced to less than fifty percent (50%) of the total number of securities to be included in such offering;and (y) in the caseof a Rady Piggy-Back Registration, the amount of securities to be offered for the accounts of Rady Holders shall be reduced to the extent necessary to reduce the total amount of securities to be included in such offering to the amount recommended by such managing Underwriter(s), provided, that the amount of securities to be offered by the Rady Holders shall not be reduced to less than thirty percent (30%) of the total number of securities to be included in such offering.

Section 2.4. Shelf Registration.

(a) Subject to Section 2.14, the Company shall prepare and file not later than fourteen (14) months after the consummation date of the IPO, a “shelf” registration statement with respect to the resale of the Registrable Securities (“Resale Shelf Registration”) by the Holders thereof on an appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 (the “Resale Shelf Registration Statement”) and permitting registration of such Registrable Securities for resale by such Holders in accordance with the methods of distribution elected by the Holders and set forth in the Resale Shelf Registration Statement. The Company shall use its reasonable efforts to cause the Resale Shelf Registration Statement to be declared effective by the Commission as promptly as reasonably practicable after the filing thereof, and, subject to Sections 2.4(d) and 2.14, to keep such Resale Shelf Registration Statement continuously effective for a period ending when all shares of Common Stock covered by the Resale Shelf Registration Statement are no longer Registrable Securities.

At the time the Resale Shelf Registration Statement is declared effective, each Holder that has delivered a duly completed and executed Notice and Questionnaire to the Company on or prior to the date ten (10) Business Days prior to such time of effectiveness shall be named as a selling securityholder in the Resale Shelf Registration Statement and the related prospectus in such a manner as to permit such Holder to deliver such prospectus to purchasers of Registrable Securities in accordance with applicable law. If required by applicable law, subject to the terms and conditions hereof, after effectiveness of the Resale Shelf Registration Statement, the Company shall file a supplement to such prospectus or amendment to the Resale Shelf Registration Statement not less than once a quarter as necessary to name as selling securityholders therein any Holders that provide to the Company a duly completed and executed Notice and Questionnaire and shall use reasonable efforts to cause any post-effective amendment to such Resale Shelf Registration Statement filed for such purpose to be declared effective by the Commission as promptly as reasonably practicable after the filing thereof.

(b) The Company may, at its option, satisfy its obligation to prepare and file a Resale Shelf Registration Statement pursuant to Section 2.4(a) with respect to shares of Common Stock issuable upon exchange of Exchangeable Common OP Units by preparing and filing with the Commission not later than fourteen (14) months after the consummation date of the IPO a registration statement on an appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 (an “Issuer Shelf Registration Statement”) providing for (i) the issuance by the Company, from time to time, to the Holders of such Exchangeable Common OP Units, of shares of Common Stock registered under the Securities Act (the “Primary Shares”) and (ii) to the extent such Primary Shares constitute Restricted Shares, the registered resale thereof by their Holders from time to time in accordance with the methods of distribution elected by the Holders and set forth therein (but except as provided in Section 2.4(c) below, not an underwritten offering). The Company shall use its reasonable efforts to cause the Issuer Shelf Registration Statement to be declared effective by the Commission as promptly as reasonably practicable after filing thereof and, subject to Sections 2.4(d) and 2.14, to keep the Issuer Shelf Registration Statement continuously effective for a period (the “Effectiveness Period”) expiring on the date all of the shares of Common Stock covered by such Issuer Shelf Registration Statement have been issued by the Company pursuant thereto or are no longer Registrable Securities. If the Company shall exercise its rights under this Section 2.4(b), Holders (other than Holders of Restricted Shares) shall have

no right to have shares of Common Stock issued or issuable upon exchange of Exchangeable Common OP Units included in a Resale Shelf Registration Statement pursuant to Section 2.4(a).

(c) Underwritten Registered Resales. Any offering under a Resale Shelf Registration Statement or by Holders under an Issuer Shelf Registration Statement shall be underwritten at the written request of Holders of Registrable Securities under such registration statement that hold in the aggregate at least ten percent 10% of the Registrable Securities originally issued in the Formation Transactions (provided, that the Registrable Securities requested to be registered in such underwritten offering shall either (i) have a Market Value of at least $25,000,000 on the date of such request or (ii) shall represent all remaining Registrable Securities held by all Rady Holders and shall have a Market Value of at least $10,000,000 on the date of such request; provided, further, that the Company shall not be obligated to effect more than three (3) underwritten offerings under this Section 2.4(c); and provided, further, that the Company shall not be obligated to effect, or take any action to effect, an underwritten offering (i) within 120 days following the last date on which an underwritten offering was effected pursuant to this Section 2.4(c) or Section 2.1(a) or during any lock-up period required by the Underwriters in any prior underwritten offering conducted by the Company on its own behalf or on behalf of selling stockholders, or (ii) during the period commencing with the date thirty (30) days prior to the Company’s good faith estimate of the date of filing of (provided the Company is actively employed in good faith commercially reasonable efforts to file such registration statement), and ending on a date ninety (90) days after the effective date of, a registration statement with respect to an offering by the Company. Any request for an underwritten offering hereunder shall be made to the Company in accordance with the notice provisions of this Agreement.

(d) Subsequent Filing. The Company shall prepare and file such additional registration statements as necessary every three (3) years and use its reasonable efforts to cause such registration statements to be declared effective by the Commission so that a Shelf Registration Statement remains continuously effective, subject to Section 2.14, with respect to resales of Registrable Securities as and for the periods required under Section 2.4(a) or (b), as applicable (such subsequent registration statements to constitute a Resale Shelf Registration Statement or an Issuer Shelf Registration Statement, as the case may be, hereunder).

(e) Selling Holders Become Party to Agreement. Each Holder acknowledges that by participating in its registration rights pursuant to this Agreement, such Holder will be deemed a party to this Agreement and will be bound by its terms, notwithstanding such Holder’s failure to deliver a Notice and Questionnaire; provided, that any Holder that has not delivered a duly completed and executed Notice and Questionnaire shall not be entitled to be named as a Selling Holder in, or have the Registrable Securities held by it covered by, a Shelf Registration Statement.

Section 2.5. Reduction of Offering. Notwithstanding anything contained herein, if the managing Underwriter(s) of an offering described in Section 2.4(c) advise in writing the Company and the Holder(s) of the Registrable Securities included in such offering that the size of the intended offering is such that the success of the offering would be significantly adversely

affected by inclusion of all the Registrable Securities requested to be included, then the amount of securities to be offered for the accounts of Holders shall be reduced pro rata (according to the Registrable Securities requested for inclusion) to the extent necessary to reduce the total amount of securities to be included in such offering to the amount recommended by such managing Underwriter(s) but in priority to any securities proposed to be sold by any other holders of securities of the Company with registration rights to participate therein. The Company shall have the opportunity to include such number of securities as it may elect in an offering described in Section 2.4(c); provided, if the managing Underwriter(s) of such offering advise in writing the Company and the Holder(s) of the Registrable Securities requested to be included that the success of the offering would be significantly adversely affected by inclusion of all the securities requested to be included by the Company, then the amount of securities to be offered for the account of the Company shall be reduced to the extent necessary to reduce the total amount of securities to be included in such offering to the amount recommended by such managing Underwriter(s); provided, further, the amount of securities to be offered by the Company shall not be reduced to less than fifty percent (50%) of the total number of securities to be included in such offering.

Section 2.6. Registration Procedures; Filings; Information. Subject to Section 2.14 hereof, in connection with any Resale Shelf Registration Statement under Section 2.4(a), the Company will use its reasonable efforts to effect the registration of the Registrable Securities covered thereby in accordance with the intended method of disposition thereof as quickly as practicable, and, in connection with any Issuer Shelf Registration Statement under Section 2.4(b), the Company will use its reasonable efforts to effect the registration of the Primary Shares (including for resale, to the extent provided in clause (ii) of Section 2.4(b)) as quickly as reasonably practicable. In connection with any Shelf Registration Statement:

(a) The Company will no later than two (2) Business Days prior to filing a Resale Shelf Registration Statement (or an Issuer Shelf Registration Statement providing for resales pursuant to clause (ii) of Section 2.4(b)) or prospectus or any amendment or supplement thereto, furnish to each Selling Holder and each Underwriter, if any, of the Registrable Securities covered by such registration statement copies of such registration statement as proposed to be filed, and thereafter furnish to such Selling Holder and Underwriter, if any, such number of conformed copies of such registration statement, each amendment and supplement thereto (in each case including all exhibits thereto and documents incorporated by reference therein), the prospectus included in such registration statement (including each preliminary prospectus) and such other documents as such Selling Holder or Underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such Selling Holder.

(b) After the filing of a Resale Shelf Registration Statement (or an Issuer Shelf Registration Statement providing for resales pursuant to clause (ii) of Section 2.4(b)), the Company will promptly notify each Selling Holder of Registrable Securities covered by such registration statement of any stop order issued or threatened by the Commission and take all reasonable actions required to prevent the entry of such stop order or to remove it if entered.

(c) The Company will use its reasonable efforts to (i) register or qualify the Registrable Securities under such other securities or “blue sky” laws of such jurisdictions in the United States (where an exemption does not apply) as any Selling Holder or managing Underwriter(s), if any, reasonably (in light of such Selling Holder’s intended plan of distribution) requests and (ii) cause such Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts and things that may be reasonably necessary or advisable to enable such Selling Holder to consummate the disposition of the Registrable Securities owned by such Selling Holder; provided that the Company will not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (c), (B) subject itself to general taxation in any such jurisdiction or (C) consent to general service of process in any such jurisdiction. The Company will promptly notify each Selling Holder of the receipt by the Company of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction or the initiation of any proceeding for such purpose.

(d) The Company will immediately notify each Selling Holder of such Registrable Securities, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of (i) the Company’s receipt of any notification of the suspension of the qualification of any Registrable Securities covered by a Resale Shelf Registration Statement (or an Issuer Shelf Registration Statement providing for resales pursuant to clause (ii) of Section 2.4(b)) for sale in any jurisdiction; or (ii) the occurrence of an event requiring the preparation of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and promptly make available to each Selling Holder any such supplement or amendment.

(e) The Company will otherwise use its reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its securityholders, as soon as reasonably practicable, an earnings statement covering a period of twelve (12) months, beginning within three (3) months after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated thereunder (or any successor rule or regulation hereafter adopted by the Commission).

(f) In the case of an underwritten offering pursuant to a Resale Shelf Registration Statement (or an Issuer Shelf Registration Statement providing for resales pursuant to clause (ii) of Section 2.4(b)), the Company will enter into and perform its obligations under customary agreements (including an underwriting agreement, if any, in customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition of the Registrable Securities (including, to the extent reasonably requested by the lead or managing Underwriters, sending appropriate officers of the Company to attend “road shows” scheduled in reasonable number and at reasonable times in connection

with any such underwritten offering, and obtaining customary comfort letters and legal opinions) subject to such underwritten offering.

(g) In the case of an underwritten offering pursuant to a Resale Shelf Registration Statement, the Company will make available for inspection by any Selling Holder of Registrable Securities subject to such underwritten offering, any Underwriter participating in any disposition of such Registrable Securities and any attorney, accountant or other professional retained by any such Selling Holder or Underwriter, all financial and other records, pertinent corporate documents and properties of the Company as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors and employees to supply all information reasonably requested by any inspectors in connection with such registration statement, subject to entry by each such Person of a customary confidentiality agreement in a form reasonably acceptable to the Company.

(h) The Company will use its reasonable efforts to cause all Registrable Securities covered by such Resale Shelf Registration Statement or Primary Shares covered by such Issuer Shelf Registration Statement to be listed on each securities exchange on which similar securities issued by the Company are then listed.

(i) In addition to the Notice and Questionnaire, the Company may require each Selling Holder of Registrable Securities to promptly furnish in writing to the Company such information regarding such Selling Holder, the Registrable Securities held by it and the intended method of distribution of the Registrable Securities as the Company may from time to time reasonably request and such other information as may be legally required in connection with such registration. No Holder may include Registrable Securities in any registration statement pursuant to this Agreement unless and until such Holder has furnished to the Company such information. Each Holder further agrees to furnish as soon as reasonably practicable to the Company all information required to be disclosed in order to make information previously furnished to the Company by such Holder not materially misleading.

(j) Each Selling Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 2.6(b) or 2.6(d) or upon receipt of a Suspension Notice, such Selling Holder will forthwith discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such Selling Holder’s receipt of written notice from the Company that such disposition may be made and, in the case of clause (ii) of Section 2.6(d) or, if applicable, Section 2.14, copies of any supplemented or amended prospectus contemplated by clause (ii) of Section 2.6(d) or, if applicable, prepared under Section 2.14, and, if so directed by the Company, such Selling Holder will deliver to the Company all copies, other than permanent file copies then in such Selling Holder’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. Each Selling Holder of Registrable Securities agrees that it will immediately notify the Company at any time when a prospectus relating to the registration of such Registrable Securities is required to be delivered under the Securities Act of the happening of an event as a result of which information previously furnished by such Selling Holder to the Company in writing for inclusion in such prospectus contains 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 light of the circumstances in which they were made.

Section 2.7. Registration Expenses. In connection with any registration statement required to be filed hereunder, the Company shall pay the following registration expenses incurred in connection with the registration hereunder (the “Registration Expenses”), regardless whether such registration statement is declared effective by the Commission: (i) all registration and filing fees, (ii) fees and expenses of compliance with securities or “blue sky” laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications of the Registrable Securities), (iii) printing expenses, (iv) internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), (v) the fees and expenses incurred in connection with the listing of the Registrable Securities, (vi) reasonable fees and disbursements of counsel for the Company and customary fees and expenses for independent certified public accountants retained by the Company, including in connection with the preparation of comfort letters, and any transfer agent and registrar fees, and (vii) the reasonable fees and expenses of any special experts retained by the Company in connection with such registration. The Company shall have no obligation to pay any fees, discounts or commissions attributable to the sale of Registrable Securities, or any out-of-pocket expenses of the Holders (or the agents who manage their accounts) or any transfer taxes relating to the registration or sale of the Registrable Securities.

Section 2.8. Indemnification by the Company. The Company agrees to indemnify and hold harmless each Selling Holder of Registrable Securities, its officers, directors, agents, partners, members, employees, managers, advisors, sub-advisors, attorneys, representatives and Affiliates, and each Person, if any, who controls such Selling Holder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against, as incurred, any and all losses, claims, damages and liabilities (or actions in respect thereof) that arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any registration statement, preliminary prospectus, prospectus, or free writing prospectus relating to the Registrable Securities (in each case, as amended or supplemented if the Company shall have furnished any amendments or supplements thereto), or that arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, except insofar as such losses, claims, damages or liabilities arise out of or are based upon any such untrue statement or omission or alleged untrue statement or omission included in reliance upon and in conformity with information furnished in writing to the Company by such Selling Holder or on such Selling Holder’s behalf expressly for inclusion therein.

Section 2.9. Indemnification by Holders of Registrable Securities. Each Selling Holder agrees, severally but not jointly or jointly and severally, to indemnify and hold harmless the Company, its officers, directors, agents, employees, attorneys, representatives and Affiliates, and each Person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company to such Selling Holder, but only with respect to information relating to such Selling Holder included in reliance upon and in conformity with information furnished in writing by such Selling Holder or on such Selling Holder’s behalf expressly for use in any registration

statement, preliminary prospectus, prospectus or free writing prospectus relating to the Registrable Securities, or any amendment or supplement thereto. In case any action or proceeding shall be brought against the Company or its officers, directors or agents or any such controlling person, in respect of which indemnity may be sought against such Selling Holder, such Selling Holder shall have the rights and duties given to the Company, and the Company or its officers, directors or agents or such controlling person shall have the rights and duties given to such Selling Holder, by Section 2.10; provided, however, that the total obligations of such Selling Holder under this Agreement (including, but not limited to, obligations arising under Section 2.11 herein) will be limited to an amount equal to the net proceeds actually received by such Selling Holder (after deducting any discounts and commissions) from the disposition of Registrable Securities pursuant to such registration statement.

Section 2.10. Conduct of Indemnification Proceedings. In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to Section 2.8 or 2.9, such person (an “Indemnified Party”) shall promptly notify the person against whom such indemnity may be sought (an “Indemnifying Party”) in writing and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses; provided, however, that the failure of any Indemnified Party to give such notice will not relieve such Indemnifying Party of any obligations under Section 2.8 or 2.9, except to the extent such Indemnifying Party is materially prejudiced by such failure. In any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) representation of the Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential differing interests between the Indemnified Party and the Indemnified Party. It is understood that the Indemnifying Party shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified Parties, and that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the Indemnified Parties, such firm shall be designated in writing by (i) in the case of Persons indemnified pursuant to Section 2.8 hereof, the Selling Holders which owned a majority of the Registrable Securities sold under the applicable registration statement and (ii) in the case of Persons indemnified pursuant to Section 2.9, the Company. The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld, but if settled with such consent, or if there be a final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any loss or liability (to the extent stated above) by reason of such settlement or judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability arising out of such proceeding without any admission of liability by such Indemnified Party.

Section 2.11. Contribution. If the indemnification provided for in Section 2.8 or 2.9 hereof is held by a court of competent jurisdiction to be unavailable to an Indemnified Party or insufficient in respect of any losses, claims, damages or liabilities that otherwise would have been covered by Section 2.8 or 2.9 hereof, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect the relative fault of the Company, on the one hand, and of each Selling Holder, on the other hand, in connection with such statements or omissions which resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of each Selling Holder on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such party.

The Company and the Selling Holders agree that it would not be just and equitable if contribution pursuant to this Section 2.11 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 2.11, no Selling Holder shall be required to contribute any amount which in the aggregate exceeds the amount by which the net proceeds actually received by such Selling Holder from the sale of its securities to the public exceeds the amount of any damages which such Selling Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Selling Holder’s obligations to contribute pursuant to this Section 2.11, if any, are several in proportion to the proceeds of the offering actually received by such Selling Holder bears to the total proceeds of the offering received by all the Selling Holders and not joint.

Section 2.12. Rule 144. The Company covenants that it will (a) make and keep public information regarding the Company available as those terms are defined in Rule 144, (b) file in a timely manner any reports and documents required to be filed by it under the Securities Act and the Exchange Act, (c) furnish to any Holder forthwith upon request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time more than ninety (90) days after the effective date of the registration statement for the Company’s initial public offering), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), and (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (d) take such further action as any Holder may reasonably request, all to the extent required from time to time to enable Holders to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144.

Section 2.13. Participation in Underwritten Offerings. No Person may participate in any underwritten offerings hereunder unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements and these registration rights provided for in this Article II.

Section 2.14. Suspension of Use of Registration Statement.

(a) If the Board of Directors of the Company determines in its good faith judgment that the filing of a Rady Demand Registration Statement or Resale Shelf Registration Statement under Section 2.1(a) or Section 2.4(a) or the use of any related prospectus would be materially detrimental to the Company because such action would require the disclosure of material information that the Company has a bona fide business purpose for preserving as confidential or the disclosure of which would materially impede the Company’s ability to consummate a significant transaction, and that the Company is not otherwise required by applicable securities laws or regulations to disclose, upon written notice of such determination by the Company to the Holders which shall be signed by the Chief Executive Officer, President or any Executive Vice President of the Company certifying thereto, the rights of the Holders to offer, sell or distribute any Registrable Securities pursuant to a Resale Shelf Registration or to require the Company to take action with respect to the registration or sale of any Registrable Securities pursuant to a Resale Shelf Registration Statement shall be suspended until the earliest of (i) the date upon which the Company notifies the Holders in writing that suspension of such rights for the grounds set forth in this Section 2.14(a) is no longer necessary and they may resume use of the applicable prospectus, (ii) the date upon which copies of the applicable supplemented or amended prospectus is distributed to the Holders, and (iii) (x) up to thirty (30) consecutive days after the notice to the Holders if that notice is given during the Initial Period or (y) ninety (90) consecutive days after the notice to the Holders if that notice is given after the Initial Period; provided, that the Company shall not be entitled to exercise any such right more than two (2) times in any twelve (12) month period or less than thirty (30) days from the termination of the prior such suspension period; and provided further, that such exercise shall not prevent the Holders from being entitled to at least three hundred twenty (320) days of effective registration with respect to such registration statement during each Initial Period and thereafter two hundred ten (210) days of effective registration with respect to such registration statement in any 365-day period. The Company agrees to give the notice under (i) above as promptly as practicable following the date that such suspension of rights is no longer necessary.

(b) If all reports required to be filed by the Company pursuant to the Exchange Act have not been filed by the required date without regard to any extension, or if the consummation of any business combination by the Company has occurred or is probable for purposes of Rule 3-05 or Article 11 of Regulation S-X promulgated under the Securities Act or any similar successor rule, upon written notice thereof by the Company to the Holders, the rights of the Holders to offer, sell or distribute any Registrable Securities pursuant to a Rady Demand Registration Statement or Resale Shelf Registration Statement or to require the Company to take action with respect to the registration or sale of any Registrable Securities

pursuant to a Rady Demand Registration Statement or Resale Shelf Registration Statement shall be suspended until the date on which the Company has filed such reports or obtained and filed the financial information required by Rule 3-05 or Article 11 of Regulation S-X to be included or incorporated by reference, as applicable, in a Rady Demand Registration Statement or Resale Shelf Registration Statement, and the Company shall use commercially reasonable efforts to file the required reports or obtain and file the financial information required to be included or incorporated by reference, as applicable, as promptly as commercially practicable, and shall notify the Holders as promptly as practicable when such suspension is no longer required.

Section 2.15. Additional Shares. The Company, at its option, may register under a Shelf Registration Statement and any filings with any state securities commissions filed pursuant to this Agreement, any number of unissued shares of Common Stock or any shares of Common Stock owned by any other stockholder or stockholders of the Company; provided that in no event shall the inclusion of such shares on a registration statement reduce the amount offered for the account of the Holders in any underwritten offering at the request of the Holders pursuant to Section 2.1(a) or Section 2.4(c).

ARTICLE III

MISCELLANEOUS

Section 3.1. Remedies. In addition to being entitled to exercise all rights provided herein and granted by law, including recovery of damages, the Holders shall be entitled to specific performance of the rights under this Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Agreement and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate.

Section 3.2. Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, in each case without the written consent of the Company and the Holders against whom enforcement is sought. No failure or delay 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 3.3. Notices. All notices and other communications in connection with this Agreement shall be made in writing by hand delivery, registered first-class mail, telecopier, or air courier guaranteeing overnight delivery:

(1) if to any Holder, initially to the address indicated in such Holder’s Notice and Questionnaire or, if no Notice and Questionnaire has been delivered, c/o American Assets Trust, Inc., 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, Xxxxxxxxxx 00000, Attention: Chief Executive Officer, or to such other address and to such other Persons as any Holder may hereafter specify in writing; and

(2) if to the Company, initially at 00000 Xx Xxxxxx Xxxx, Xxxxx 000, Xxx Xxxxx, Xxxxxxxxxx 00000, Attention: Chief Executive Officer, or to such other address as the Company may hereafter specify in writing.

All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; when received if deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and on the next Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

Section 3.4. Successors and Assigns; Assignment of Registration Rights. This Agreement shall inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties. Any Holder may assign its rights under this Agreement without the consent of the Company in connection with a transfer of such Holder’s Registrable Securities; provided, that the Holder notifies the Company of such proposed transfer and assignment and the transferee or assignee of such rights assumes in writing the obligations of such Holder under this Agreement.

Section 3.5. Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Each party shall become bound by this Agreement immediately upon affixing its signature hereto.

Section 3.6. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California.

Section 3.7. Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

Section 3.8. Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with respect to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

Section 3.9. Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

Section 3.10. Termination. The obligations of the parties hereunder shall terminate with respect to a Holder when it no longer holds Registrable Securities and with respect to the Company upon the end of the Effectiveness Period with respect to any Issuer Shelf Registration Statement and with respect to a Resale Shelf Registration Statement when there are no longer Registrable Securities with respect to such Resale Shelf Registration Statement, except, in each case, for any obligations under Sections 2.4(d), 2.7, 2.8, 2.9, 2.10, 2.11 and Article III.

Section 3.11. Waiver of Jury Trial. The parties hereto (including any Initial Holder and any subsequent Holder) irrevocably waive any right to trial by jury.

[SIGNATURE PAGE FOLLOWS]

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


AMERICAN ASSETS TRUST, INC.

By:
Name:
Title:


HOLDERS LISTED ON SCHEDULE I HERETO

AMERICAN ASSETS TRUST, INC.

By:
Name:
Title:
As Attorney-in-Fact acting on behalf of each of the Holders named on Schedule I hereto

Schedule I

See Attached.

Exhibit A

Form of Notice and Questionnaire

The undersigned beneficial holder of shares of common stock, par value $.01 per share (“Common Stock”), of American Assets Trust, Inc. (the “Company”) and/or units of limited partnership interests (“OP Units” and, together with the Common Stock, the “Registrable Securities”) of American Assets Trust, L.P. (the “Operating Partnership”), understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “SEC”) one or more registration statements (collectively, the “Resale Shelf Registration Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities in accordance with the terms of the Registration Rights Agreement (the “Registration Rights Agreement”), dated [ ], 2010, among the Company and the holders listed on Schedule I thereto. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

Each beneficial owner of Registrable Securities is entitled to the benefits of the Registration Rights Agreement. In order to sell or otherwise dispose of any Registrable Securities pursuant to the Resale Shelf Registration Statement, a beneficial owner of Registrable Securities generally will be required to be named as a selling security holder in the related prospectus, deliver a prospectus to purchasers of Registrable Securities and be bound by those provisions of the Registration Rights Agreement applicable to such beneficial owner (including certain indemnification provisions as described below). To be included in the Resale Shelf Registration Statement, this Notice and Questionnaire must be completed, executed and delivered to the Company at the address set forth herein on or prior to the tenth business day before the effectiveness of the Resale Shelf Registration Statement. We will give notice of the filing and effectiveness of the initial Resale Shelf Registration Statement by issuing a press release and by mailing a notice to the holders at their addresses set forth in the register of the registrar.

Beneficial owners that do not complete this Notice and Questionnaire and deliver it to the Company as provided below will not be named as selling security holders in the prospectus and therefore will not be permitted to sell any Registrable Securities pursuant to the Resale Shelf Registration Statement. Beneficial owners are encouraged to complete and deliver this Notice and Questionnaire prior to the effectiveness of the initial Resale Shelf Registration Statement so that such beneficial owners may be named as selling security holders in the related prospectus at the time of effectiveness. Upon receipt of a completed Notice and Questionnaire from a beneficial owner following the effectiveness of the initial Resale Shelf Registration Statement, in accordance with the Registration Rights Agreement, the Company will file such amendments to the initial Resale Shelf Registration Statement or additional shelf registration statements or supplements to the related prospectus as are necessary to permit such holder to deliver such prospectus to purchasers of Registrable Securities.

Certain legal consequences arise from being named as selling security holders in the Resale Shelf Registration Statement and the related prospectus. Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling security holder in the Resale Shelf Registration Statement and the related prospectus.

NOTICE

The undersigned beneficial owner (the “Selling Security Holder”) of Registrable Securities hereby elects to include in the prospectus forming a part of the Resale Shelf Registration Statement the Registrable Securities beneficially owned by it and listed below in Item 3 (unless otherwise specified under Item 3). The undersigned, by signing and returning this Notice and Questionnaire, understands that it will be bound by the terms and conditions of this Notice and Questionnaire and the Registration Rights Agreement.

Pursuant to the Registration Rights Agreement, the undersigned has agreed to indemnify and hold harmless the Company and its directors, officers and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against certain losses arising in connection with statements concerning the undersigned made in the Resale Shelf Registration Statement or the related prospectus in reliance upon the information provided in this Notice and Questionnaire.

The undersigned hereby provides the following information to the Company and represents and warrants to the Company that such information is accurate and complete:

QUESTIONNAIRE


1.	(a)	Full Legal Name of Selling Security Holder:

		______________________________________________________________________________________________

	(b)	Full Legal Name of registered holder (if not the same as (a) above) through which Registrable Securities listed in Item (3) below are held:

		______________________________________________________________________________________________

	(c)	Full Legal Name of DTC Participant (if applicable and if not the same as (b) above) through which Registrable Securities listed in Item (3) below are held:

		______________________________________________________________________________________________

	(d)	List below the individual or individuals who exercise voting and/or dispositive powers with respect to the Registrable Securities listed in Item (3) below:

		______________________________________________________________________________________________

2.	Address for Notices to Selling Security Holder:



		______________________________________________________________________________________________

		______________________________________________________________________________________________

		Telephone: _________________________________________________________________________________ Fax: ________________________________________________________________________________ E-mail address: ________________________________________________________________________________ Contact Person: ________________________________________________________________________________

3.		Beneficial Ownership of Registrable Securities: Type of Registrable Securities beneficially owned, and number of shares of Common Stock and/or Common OP Units, as the case may be, beneficially owned:

		______________________________________________________________________________________________

4.		Beneficial Ownership of Securities of the Company Owned by the Selling Security Holder: Except as set forth below in this Item (4), the undersigned is not the beneficial or registered owner of any securities of the Company, other than the Registrable Securities listed above in Item (3). Type and amount of other securities beneficially owned by the Selling Security Holder:

		______________________________________________________________________________________________

5.		Relationship with the Company Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years. State any exceptions here:

		______________________________________________________________________________________________

		______________________________________________________________________________________________

6.		Plan of Distribution Except as set forth below, the undersigned (including its donees or pledgees) intends to distribute the Registrable Securities listed above in Item (3) pursuant to the Resale Shelf Registration Statement only as follows and will not be offering any of such Registrable Securities pursuant to an agreement, arrangement or understanding entered into with a



		broker or dealer prior to the effective date of the Resale Shelf Registration Statement. Such Registrable Securities may be sold from time to time directly by the undersigned or, alternatively, through underwriters or broker-dealers or agents. If the Registrable Securities are sold through underwriters or broker-dealers, the Selling Security Holder will be responsible for underwriting discounts or commissions or agent’s commissions. Such Registrable Securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices. Such sales may be effected in transactions (which may involve crosses or block transactions)

		(i) on any national securities exchange or quotation service on which the Registrable Securities may be listed or quoted at the time of sale; (ii) in the over-the-counter market; (iii) in transactions otherwise than on such exchanges or services or in the over-the-counter market; or (iv) through the writing of options. In connection with sales of the Registrable Securities or otherwise, the undersigned may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the Registrable Securities and deliver Registrable Securities to close out such short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell such securities. State any exceptions here:

		______________________________________________________________________________________________

		______________________________________________________________________________________________



Note:		In no event may such method(s) of distribution take the form of an underwritten offering of the Registrable Securities without the prior written agreement of the Company.

ACKNOWLEDGEMENTS

The undersigned acknowledges that it understands its obligation to comply with the provisions of the Securities Exchange Act of 1934, as amended, and the rules thereunder relating to stock manipulation, particularly Regulation M thereunder (or any successor rules or regulations), in connection with any offering of Registrable Securities pursuant to the Registration Rights Agreement. The undersigned agrees that neither it nor any person acting on its behalf will engage in any transaction in violation of such provisions.

The Selling Security Holder hereby acknowledges its obligations under the Registration Rights Agreement to indemnify and hold harmless certain persons set forth therein. Pursuant to the Registration Rights Agreement, the Company has agreed under certain circumstances to indemnify the Selling Security Holders against certain liabilities.

In accordance with the undersigned’s obligation under the Registration Rights Agreement to provide such information as may be required by law for inclusion in the Resale Shelf Registration Statement, the undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the Resale Shelf Registration Statement remains effective. All notices hereunder and pursuant to the Registration Rights Agreement shall be made in writing at the address set forth below.

In the event that the undersigned transfers all or any portion of the Registrable Securities listed in Item 3 above after the date on which such information is provided to the Company, the undersigned agrees to notify the transferee(s) at the time of transfer of its rights and obligations under this Notice and Questionnaire and the Registration Rights Agreement.

By signing this Notice and Questionnaire, the undersigned consents to the disclosure of the information contained herein in its answers to Items (1) through (6) above and the inclusion of such information in the Resale Shelf Registration Statement and the related prospectus. The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Resale Shelf Registration Statement and the related prospectus.

Once this Notice and Questionnaire is executed by the Selling Security Holder and received by the Company, the terms of this Notice and Questionnaire and the representations and warranties contained herein shall be binding on, shall insure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives and assigns of the Company and the Selling Security Holder with respect to the Registrable Securities beneficially owned by such Selling Security Holder and listed in Item 3 above.

This Notice and Questionnaire shall be governed by, and construed in accordance with, the laws of the State of California.

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.


Beneficial Owner

By
		Name:
		Title:

Dated:

Please return the completed and executed Notice and Questionnaire to:

American Assets Trust, Inc.

00000 Xx Xxxxxx Xxxx, Xxxxx 000

Xxx Xxxxx, XX 00000

Tel: (000) 000-0000

Fax: (000) 000-0000

Attention: Chief Financial Officer

Exhibit D

Order of Mergers

Each step within each “Transaction Step” below must be completed before the transactions in the following “Transaction Step” may be completed. All transactions within each “Transaction Step” may be completed simultaneously or in any order.

Transaction Step 1

All Forward REIT Mergers

All REIT Sub Forward Mergers

Transaction Step 2

All Contributions to the OP (including the REIT’s contribution to the OP of the assets acquired in Step 1)

Transaction Step 3

All Contributions to subsidiaries of the OP (including, where applicable, the OP’s contribution to the applicable subsidiary of assets acquired in Step 2)

Transaction Step 4

All OP Forward Mergers except the OP Forward Merger set forth in Transaction Step 5 and Transaction Step 7 below

Transaction Step 5

Forward Merger of Desert Hillside Holdings LLC with and into the Operating Partnership

Transaction Step 6

All OP Sub Forward Mergers except the OP Sub Forward Merger set forth in Transaction Step 7 below

Transaction Step 7

Forward Merger of BWH Holdings LLC with and into the Operating Partnership

Forward Merger of Desert Oceanside Holdings LLC with and into Pacific Oceanside Holdings LLC.

Transaction Step 8

All OP Sub Reverse Mergers

Exhibit E

Lock-Up Agreement

, 2010

XXXXXXX XXXXX & CO.

Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated

Xxx Xxxxxx Xxxx

Xxx Xxxx, Xxx Xxxx 00000

Xxxxx Fargo Securities, LLC

000 Xxxx Xxxxxx

Xxx Xxxx, Xxx Xxxx 00000

as Representatives of the several

Underwriters to be named in the

within-mentioned Underwriting Agreement

Re:

Proposed Public Offering by American Assets Trust, Inc.

Dear Sirs:

The undersigned, a stockholder of American Assets Trust, Inc., a Maryland corporation (the “Company”) and/or a holder of common units of partnership interest (the “Units”) in American Assets Trust, LP, a Maryland limited partnership and operating subsidiary of the Company (the “Operating Partnership”), understands that Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated (“Xxxxxxx Xxxxx”) and Xxxxx Fargo Securities, LLC (“Xxxxx Fargo”) and each of the other Underwriters named in Schedule A to the Underwriting Agreement (as defined below) (collectively, the “Underwriters”), for whom Xxxxxxx Xxxxx and Xxxxx Fargo are acting as representatives (in such capacity, the “Representatives”) propose to enter into an Underwriting Agreement (the “Underwriting Agreement”) with the Company and the Operating Partnership, providing for the public offering (the “Public Offering”) of shares (the “Securities”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”). In recognition of the benefit that the Public Offering will confer upon the undersigned as a stockholder of the Company and/or as a holder of Units in the Operating Partnership, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees with each Underwriter to be named in the Underwriting Agreement that, during a period of 180 days from the date of the Underwriting Agreement (the “Lock-Up Period”), the undersigned will not, without the prior written consent of the Representatives, directly or indirectly, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, or otherwise dispose of or transfer any shares of the Company’s Common Stock or any securities convertible into or exchangeable or exercisable for Common Stock, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the “Lock-Up Securities”), or exercise any right with respect to the registration of any of the Lock-up Securities, or file or cause to be filed any registration statement in connection therewith, under the Securities Act of 1933, as amended, or (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the Lock-Up Securities, whether any such swap or transaction is to be settled by delivery of Common Stock or other securities, in cash or otherwise.

Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer the Lock-Up Securities without the prior written consent of the Representatives:

(i)

if the undersigned is a director or executive officer of the Company, pursuant to the establishment by the undersigned of a written trading plan designed to comply with Rule 10b5-1(c) of the Exchange Act, provided that no sales or other dispositions may occur under such plans until the expiration of the Lock-Up Period; or

(ii)

as a bona fide gift or gifts or other dispositions by will or intestacy; or

(iii)

to any trust for the direct or indirect benefit of the undersigned or the immediate family of the undersigned (for purposes of this lock-up agreement, “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin); or

(iv)

to an immediate family member, a partnership or limited liability company solely for the direct or indirect benefit of the undersigned or the immediate family member of the undersigned; or

(v)

to a spouse, former spouse, child or other dependent pursuant to a domestic relations order or an order of a court of competent jurisdiction; or

(vi)

as a distribution to limited partners, limited liability company members or stockholders of the undersigned; or

(vii)

to the undersigned’s affiliates or to any investment fund or other entity controlled or managed by the undersigned; or

(viii)

to the Company upon termination of the undersigned’s employment with the Company; or

(ix)

to pay the exercise price of options to purchase Common Stock pursuant to the cashless exercise feature of such options; or

(x)

to a nominee or custodian of a person or entity to whom a disposition or transfer would be permissible under clauses (ii) through (ix) above,

provided that, in each case, (1) the Representatives receive a signed lock-up agreement for the balance of the lockup period from each donee, trustee, distributee, or transferee, as the case may be, (2) any such transfer shall not involve a disposition for value, (3) such transfers or other actions are not required to be reported with the Securities and Exchange Commission on Form 4 in accordance with Section 16 of the Securities Exchange Act of 1934, as amended, and (4) the undersigned does not otherwise voluntarily effect any public filing or report regarding such transfers.

Furthermore, the undersigned may sell shares of Common Stock of the Company purchased by the undersigned on the open market after completion of the Public Offering if and only if (i) such sales are not required to be reported in any public report or filing with the Securities and Exchange Commission, or otherwise and (ii) the undersigned does not otherwise voluntarily effect any public filing or report regarding such sales.

Notwithstanding the foregoing, if:

(1) during the last 17 days of the Lock-Up Period, the Company issues an earnings release or material news or a material event relating to the Company occurs; or

(2) prior to the expiration of the Lock-Up Period, the Company announces that it will release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the 180-day Lock-Up Period,

the Representatives may extend, by written notice to the Company, the restrictions imposed by this lock-up agreement until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event, as applicable.

The undersigned agrees that, prior to engaging in any transaction or taking any other action that is subject to the terms of this lock-up agreement during the period from the date of this lock-up agreement to and including the 34^th day following the expiration of the initial 180-day Lock-Up Period, it will give notice thereof to the Company and will not consummate such transaction or take any such action unless it has received written confirmation from the Company that the 180-day Lock-Up Period (as may have been extended pursuant to the previous paragraph) has expired.

The undersigned also agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against the transfer of the Lock-Up Securities except in compliance with the foregoing restrictions.

[Signature Page Follows]


Very truly yours,

Signature:

Print Name:

(Signature Page to Investor Lock-Up Agreement)

Exhibit F

Operating Partnership Agreement

AMENDED AND RESTATED

AGREEMENT OF LIMITED PARTNERSHIP

AMERICAN ASSETS TRUST, L.P.

a Maryland limited partnership

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR

THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD,

TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH

REGISTRATION, UNLESS IN THE OPINION OF COUNSEL SATISFACTORY TO THE

PARTNERSHIP THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE

EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT AND UNDER

APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS.

dated as of [ ], 2010

TABLE OF CONTENTS


		Page
ARTICLE 1 DEFINED TERMS			1

ARTICLE 2 ORGANIZATIONAL MATTERS			20

Section 2.1	Formation		20
Section 2.2	Name		20
Section 2.3	Principal Office and Resident Agent; Principal Executive Office		20
Section 2.4	Power of Attorney		21
Section 2.5	Term		22
Section 2.6	Partnership Interests Are Securities		22

ARTICLE 3 PURPOSE			22

Section 3.1	Purpose and Business		22
Section 3.2	Powers		23
Section 3.3	Partnership Only for Purposes Specified		23
Section 3.4	Representations and Warranties by the Partners		23

ARTICLE 4 CAPITAL CONTRIBUTIONS			26

Section 4.1	Capital Contributions of the Partners		26
Section 4.2	Issuances of Additional Partnership Interests		26
Section 4.3	Additional Funds and Capital Contributions		27
Section 4.4	Stock Option Plans.		29
Section 4.5	Dividend Reinvestment Plan, Cash Option Purchase Plan, Stock Incentive Plan or Other Plan		30
Section 4.6	No Interest; No Return		30
Section 4.7	Conversion or Redemption of Capital Shares		30
Section 4.8	Other Contribution Provisions		31

ARTICLE 5 DISTRIBUTIONS			31

Section 5.1	Requirement and Characterization of Distributions		31
Section 5.2	Distributions in Kind		32
Section 5.3	Amounts Withheld		32
Section 5.4	Distributions upon Liquidation		32
Section 5.5	Distributions to Reflect Additional Partnership Units		32
Section 5.6	Restricted Distributions		32

ARTICLE 6 ALLOCATIONS			33

Section 6.1	Timing and Amount of Allocations of Net Income and Net Loss		33
Section 6.2	General Allocations		33
Section 6.3	Additional Allocation Provisions		34
Section 6.4	Regulatory Allocation Provisions		35


Section 6.5	Tax Allocations	37

ARTICLE 7 MANAGEMENT AND OPERATIONS OF BUSINESS		38

Section 7.1	Management	38
Section 7.2	Certificate of Limited Partnership	43
Section 7.3	Restrictions on General Partner’s Authority	43
Section 7.4	Reimbursement of the General Partner	45
Section 7.5	Outside Activities of the General Partner	46
Section 7.6	Transactions with Affiliates	47
Section 7.7	Indemnification	47
Section 7.8	Liability of the General Partner	50
Section 7.9	Other Matters Concerning the General Partner	51
Section 7.10	Title to Partnership Assets	52
Section 7.11	Reliance by Third Parties	52

ARTICLE 8 RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS		53

Section 8.1	Limitation of Liability	53
Section 8.2	Management of Business	53
Section 8.3	Outside Activities of Limited Partners	53
Section 8.4	Return of Capital	54
Section 8.5	Rights of Limited Partners Relating to the Partnership	54
Section 8.6	Partnership Right to Call Limited Partner Interests	54
Section 8.7	Rights as Objecting Partner	55

ARTICLE 9 BOOKS, RECORDS, ACCOUNTING AND REPORTS		55

Section 9.1	Records and Accounting	55
Section 9.2	Partnership Year	55
Section 9.3	Reports	55

ARTICLE 10 TAX MATTERS		56

Section 10.1	Preparation of Tax Returns	56
Section 10.2	Tax Elections	56
Section 10.3	Tax Matters Partner	56
Section 10.4	Withholding	57
Section 10.5	Organizational Expenses	58

ARTICLE 11 PARTNER TRANSFERS AND WITHDRAWALS		58

Section 11.1	Transfer	58
Section 11.2	Transfer of General Partner’s Partnership Interest	58
Section 11.3	Limited Partners’ Rights to Transfer	60
Section 11.4	Admission of Substituted Limited Partners	63
Section 11.5	Assignees	63
Section 11.6	General Provisions	64

ARTICLE 12 ADMISSION OF PARTNERS		65


Section 12.1	Admission of Successor General Partner	65
Section 12.2	Admission of Additional Limited Partners	66
Section 12.3	Amendment of Agreement and Certificate of Limited Partnership	67
Section 12.4	Limit on Number of Partners	67
Section 12.5	Admission	67

ARTICLE 13 DISSOLUTION, LIQUIDATION AND TERMINATION		67

Section 13.1	Dissolution	67
Section 13.2	Winding Up	68
Section 13.3	Deemed Contribution and Distribution	69
Section 13.4	Rights of Holders	70
Section 13.5	Notice of Dissolution	70
Section 13.6	Cancellation of Certificate of Limited Partnership	70
Section 13.7	Reasonable Time for Winding-Up	70

ARTICLE 14 PROCEDURES FOR ACTIONS AND CONSENTS OF PARTNERS; AMENDMENTS; MEETINGS		71

Section 14.1	Procedures for Actions and Consents of Partners	71
Section 14.2	Amendments	71
Section 14.3	Actions and Consents of the Partners	71

ARTICLE 15 GENERAL PROVISIONS		72

Section 15.1	Redemption Rights of Qualifying Parties	72
Section 15.2	Addresses and Notice	76
Section 15.3	Titles and Captions	76
Section 15.4	Pronouns and Plurals	77
Section 15.5	Further Action	77
Section 15.6	Binding Effect	77
Section 15.7	Waiver	77
Section 15.8	Counterparts	77
Section 15.9	Applicable Law; Consent to Jurisdiction; Waiver of Jury Trial	77
Section 15.10	Entire Agreement	78
Section 15.11	Invalidity of Provisions	78
Section 15.12	Limitation to Preserve REIT Status	78
Section 15.13	No Partition	79
Section 15.14	No Third-Party Rights Created Hereby	79
Section 15.15	No Rights as Stockholders	80

ARTICLE 16 LTIP Xxxxx		00

Xxxxxxx 00.0	Designation	80
Section 16.2	Vesting.	80
Section 16.3	Adjustments	81
Section 16.4	Distributions	82
Section 16.5	Allocations	82
Section 16.6	Transfers	83

iii

Section 16.7

Redemption

Section 16.8

Section 16.9

Conversion to Partnership Common Units

Section 16.10