Document:

Letter confirmation Lehman Bros

 Exhibit 10.4 
 March 27, 2007 
  

					
	To:	 	Kilroy Realty, L.P.
		 	12200 W. Olympic Boulevard, Suite 200
		 	Los Angeles, California 90064
		 	Attention: Richard E. Moran
		 	 EVP and CFO

		 	Telephone No.:	  	(310) 481-8400
		 	Facsimile No.:	  	(310) 481-6500
		
	From:	 	Lehman Brothers Inc., acting as Agent
		 	Lehman Brothers OTC Derivatives Inc., acting as Principal
		 	Attention: Transaction Management Group
		 	Telephone:    (212) 526-9986
		 	Facsimile:    (646) 885-9546
		
	Re:	 	 Capped Call Transaction

		 	 (Global ID: 2963353)

 The purpose of this letter agreement (this “Confirmation”) is to confirm the
terms and conditions of the call option transaction entered into among Lehman Brothers OTC Derivatives Inc. (“Lehman”) represented by Lehman Brothers Inc. (“Agent”) as its agent, Kilroy Realty, L.P.
(“Counterparty”) and Kilroy Realty Corporation (“Parent”) on the Trade Date specified below (the “Transaction”). This letter agreement constitutes a “Confirmation” as referred to in the
ISDA Master Agreement specified below. This Confirmation shall replace any previous agreements and serve as the final documentation for this Transaction. This confirmation is sent on behalf of both Lehman and Agent. Lehman Brothers OTC
Derivatives Inc. is not a member of the Securities Investor Protection Corporation. 
 The definitions and provisions contained in the
2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Confirmation. In the event of any
inconsistency between the Equity Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms used herein have the meanings assigned to them in the Offering Memorandum dated March 27, 2007 (the “Offering
Memorandum”) relating to the USD 400,000,000 principal amount of 3.25% Exchangeable Senior Notes due 2012 (the “Exchangeable Notes” and each USD 1,000 principal amount of Exchangeable Notes, an “Exchangeable
Note”) issued by Counterparty pursuant to an Indenture to be dated as of April 2, 2007 among Counterparty, Parent, as guarantor, and U.S. Bank National Association, as trustee (as in effect on the date of its execution, the
“Indenture”). In the event of any inconsistency between the terms defined in the Offering Memorandum, the Indenture and this Confirmation, this Confirmation shall govern. The parties acknowledge that this Confirmation is entered
into on the date hereof with the understanding that (i) definitions set forth in the Indenture which are also defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein will conform to the
descriptions thereof in the Offering Memorandum. If any such definitions in the Indenture or any such sections of the Indenture differ from the descriptions thereof in the Offering Memorandum, the descriptions thereof in the Offering Memorandum will
govern for purposes of this Confirmation. The parties further acknowledge that the Indenture section numbers used herein are based on the draft of the Indenture last reviewed by Lehman as of the date of this Confirmation, and if any such section
numbers are changed in the Indenture as executed, the parties will amend this Confirmation in good faith to preserve the intent of the parties. For the avoidance of doubt, references to the Indenture herein are references to the Indenture as in
effect on the date of its execution and if the Indenture is amended following its execution, any such amendment will be disregarded for purposes of this Confirmation unless the parties agree otherwise in writing. 
 Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial
transactions and has taken other material actions in reliance upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below. 
 1. This Confirmation evidences a complete and binding agreement between Lehman, Counterparty and Parent as to the terms of the Transaction to which this Confirmation
relates. This Confirmation shall supplement, form a 

 
part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Lehman, Counterparty and
Parent had executed an agreement in such form (but without any Schedule except for the election of the laws of the State of New York as the governing law) on the Trade Date. In the event of any inconsistency between provisions of that Agreement and
this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed by
the Agreement. 
 2. The terms of the particular Transaction to which this Confirmation relates are as follows: 
  

			
	General Terms:	 	
		
	 Trade Date:
	 	March 27, 2007
		
	 Option Style:
	 	“Modified American”, as set forth under “Exercise and Valuation” below
		
	 Option Type:
	 	Call
		
	 Buyer:
	 	Counterparty
		
	 Seller:
	 	Lehman
		
	 Shares:
	 	The common stock of Parent, par value USD 0.01 per share (Exchange symbol “KRC”)
		
	 Number of Options:
	 	133,333. For the avoidance of doubt, the Number of Options shall be reduced by any Options exercised by Counterparty. In no event will the Number of Options be less than
zero.
		
	 Option Entitlement:
	 	As of any date, a number equal to the Exchange Rate as of such date (as defined in the Indenture, but without regard to any adjustments to the Exchange Rate pursuant to Section 13.12 of the
Indenture), for each Exchangeable Note.
		
	 Strike Price:
	 	USD 88.0440
		
	 Cap Price:
	 	USD 102.7180
		
	 Premium:
	 	USD 8,333,333.33
		
	 Premium Payment Date:
	 	April 2, 2007
		
	 Exchange:
	 	The New York Stock Exchange
		
	 Related Exchange(s):
	 	All Exchanges
		
	Exercise and Valuation:	 	
		
	 Exercise Period(s):
	 	Notwithstanding anything to the contrary in the Equity Definitions, an Exercise Period shall occur with respect to an Option hereunder only if such Option is an Exercisable Option (as defined
below) and the Exercise Period shall be, in respect of any Exercisable Option, the period commencing on, and including, the relevant Exchange Date and ending on, and including, the Scheduled Valid Day immediately preceding the first day of the
relevant Settlement Averaging Period in respect of such Exchange Date; provided that in respect of Exercisable Options

  

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	 	 	relating to Exchangeable Notes for which the relevant Exchange Date occurs on or
after November 15, 2011, the final day of the Exercise Period shall be the Scheduled
Valid Day
immediately preceding the Expiration Date.
		
	 Exchange Date:
	 	With respect to any exchange of Exchangeable Notes (other than Exchangeable Notes with respect to which Counterparty makes the direction described in Section 13.02(a) of the Indenture and the
financial institution designated by Counterparty accepts such Exchangeable Notes in accordance with Section 13.02(b) of the Indenture), the “Exchange Date” for such Exchangeable Notes, as defined in Section 13.03 of the Indenture. For the
avoidance of doubt, Exchangeable Notes are “accepted” for purposes of the foregoing upon the earlier of the declaration of the designated institution’s agreement to exchange such Exchangeable Notes or delivery of such Exchangeable
Notes to such financial institution for purposes of such exchange.
		
	 Exercisable Options:
	 	Upon the occurrence of an Exchange Date, a number of Options equal to one-third of the number of Exchangeable Notes exchanged on such Exchange Date, other than (i) Exchangeable Notes surrendered
for exchange (x) in connection with (A) an adjustment to the Exchange Rate effected by Counterparty that was not provided under the terms of the Indenture as of the Trade Date or (B) an agreement (other than the Indenture) by Counterparty with the
Holders (as such term is defined in the Indenture) of such Exchangeable Notes and, in the case of either (A) or (B), the Holders of such Exchangeable Notes receive upon exchange or pursuant to such agreement, as the case may be, a payment of cash or
delivery of Shares or any other property or value that was not required under the terms of the Indenture as of the Trade Date or (y) after having been acquired from a Holder by or on behalf of Counterparty or any of its affiliates other than
pursuant to an exchange by such Holder and thereafter exchanged by or on behalf of Counterparty or any affiliate of Counterparty (each event described in this clause (i), an “Induced Exchange”) or (ii) Exchangeable Notes surrendered
for exchange (x) pursuant to Section 13.12 of the Indenture in connection with a transaction described in clause (1) or (2) of the definition of Designated Event (as such term is defined in the Indenture), (y) pursuant to Section 13.01(a)(iii) of
the Indenture upon the Exchangeable Notes being called for redemption or (z) pursuant to Section 13.01(a)(iv) of the Indenture in connection with any other event described under the heading “Exchange upon Specified Transactions” in the
Offering Memorandum (each event described in this clause (ii) a “Corporate Event Exchange”), shall become Exercisable Options.
		
	 Expiration Time:
	 	The Valuation Time
		
	 Expiration Date:
	 	April 15, 2012, subject to earlier exercise.
		
	 Multiple Exercise:
	 	Applicable, as described under Exercisable Options above.
		
	 Automatic Exercise:
	 	Applicable; and means that in respect of an Exercise Period, a number of Options not previously exercised hereunder equal to the number of Exercisable Options shall be deemed to
be

  

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	 	 	exercised on the final day of such Exercise Period for such Exercisable Options;
provided that such Options shall be deemed exercised only to the extent that
Counterparty has provided a
Notice of Exercise to Lehman.
		
	 Notice of Exercise:
	 	Notwithstanding anything to the contrary in the Equity Definitions, in order to exercise any Exercisable Options, Counterparty must notify Lehman in writing before 5:00 p.m. (New York City
time) on the Scheduled Valid Day prior to the scheduled first day of the Settlement Averaging Period for the Exercisable Options being exercised (the “Notice Deadline”) of (i) the number of such Options and (ii) the scheduled first
day of the Settlement Averaging Period and the scheduled Settlement Date; provided that in respect of Exercisable Options relating to Exchangeable Notes with an Exchange Date occurring on or after November 15, 2011, such notice may be given
on or prior to the second Scheduled Valid Day immediately preceding the Expiration Date and need only specify the number of such Exercisable Options; provided further that, notwithstanding the foregoing, such notice (and the related exercise
of Exercisable Options) shall be effective if given after the Notice Deadline but prior to 5:00 p.m. (New York City time) on the fifth Scheduled Valid Day of such Settlement Averaging Period, in which event the Calculation Agent shall have the right
to adjust the number of Net Shares as appropriate to reflect the additional costs (including, but not limited to, hedging mismatches and market losses) and expenses incurred by Lehman in connection with its hedging activities (including the
unwinding of any hedge position) as a result of Lehman not having received such notice prior to the Notice Deadline.
		
	 Notice of Gross Share Settlement:
	 	If Counterparty has elected to satisfy exchange obligations with respect to Exchangeable Notes in Shares only (as described in Section 13.01(c) of the Indenture) (the “Gross Share
Settlement”) then in order to exercise any Exercisable Options relating to such Exchangeable Notes, Counterparty (or the Trustee on behalf of the Counterparty) must notify Lehman of such election before 5:00 p.m. (New York City time) on the
Exchange Business Day immediately following the day on which Counterparty has elected Gross Share Settlement; provided, however, that, notwithstanding the foregoing, Counterparty (or the Trustee on behalf of the Counterparty) must notify
Lehman of such election before 5:00 p.m. (New York City time) on the Scheduled Valid Day immediately preceding the 102nd Scheduled Valid Day prior to the Expiration Date.
		
	 Valuation Time:
	 	At the close of trading of the regular trading session on the Exchange.
		
	 Market Disruption Event:
	 	Section 6.3(a) of the Equity Definitions is hereby replaced in its entirety by the following:
		
		 	“Market Disruption Event” means (1) a failure by the primary United States national or regional securities exchange or market on which the Shares are listed or admitted to trading
to open for trading during its regular trading session or (2) the occurrence or existence prior to 1:00 p.m. (New York City time) on any Valid

  

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	 	 	Day for the Shares of an aggregate one half hour period of any suspension or
limitation imposed on trading (by reason of movements in price exceeding limits
permitted by the Exchange or
otherwise) in the Shares or in any options, contracts or
future contracts relating to the Shares.
		
	Settlement Terms:	 	
		
	 Settlement Method:
	 	Net Share Settlement
		
	 Net Share Settlement:
	 	Lehman will deliver to Counterparty, on the relevant Settlement Date, a number of Shares equal to the Net Shares in respect of any Exercisable Option exercised or deemed exercised hereunder.
In no event will the Net Shares be less than zero.
		
	 Net Shares:
	 	In respect of any Exercisable Option exercised or deemed exercised, a number of Shares equal to (i) the Option Entitlement multiplied by (ii) the sum of the quotients, for each Valid Day
during the Settlement Averaging Period for such Exercisable Option, of (A) (1) the amount by which the Cap Price exceeds the Strike Price, if the Relevant Price on such Valid Day is equal to or greater than the Cap Price; (2) the amount by which
such Relevant Price exceeds the Strike Price, if such Relevant Price is greater than the Strike Price but less than the Cap Price or (3) zero, if such Relevant Price is less than or equal to the Strike Price; divided by (B) such Relevant
Price, divided by (iii) the number of Valid Days in such Settlement Averaging Period; provided that, if Counterparty has elected Gross Share Settlement of the Exchangeable Notes, then with respect to any Exercisable Option relating to
Exchangeable Notes with an Exchange Date on or following November 15, 2011, the Net Shares shall be equal to the lesser of (i) a number of Shares determined as described above and (ii) a number of Shares equal to the Net Exchangeable Obligation
Value for such Exercisable Option divided by the Obligation Value Price.
		
		 	Lehman will deliver cash in lieu of any fractional Shares to be delivered with respect to any Net Shares valued at the Relevant Price for the last Valid Day of the Settlement Averaging
Period.
		
	 Valid Day:
	 	A day on which (i) trading in the Shares generally occurs on the principal U.S. national securities exchange or market on which the Shares are listed or admitted for trading and (ii) there is
no Market Disruption Event.
		
	 Scheduled Valid Day:
	 	A day on which trading in the Shares is scheduled to occur on the principal U.S. national securities exchange or market on which the Shares are listed or admitted for
trading.
		
	 Relevant Price:
	 	On any Valid Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page KRC.N <equity> AQR (or any successor thereto)
in respect of the period from the scheduled opening time of the Exchange to the Scheduled Closing Time of the Exchange on such Valid Day (or if such volume-weighted average price is unavailable, the market value of one Share on such Valid Day,
as

  

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	 	 	determined by the Calculation Agent in a commercially reasonable manner using a
volume-weighted method).
		
	 Net Exchangeable Obligation Value:
	 	With respect to an Exercisable Option, (i) the Total Exchangeable Obligation Value for such Exercisable Option minus (ii) the principal amount of an Exchangeable Note that is being
exchanged by Counterparty on the related Exchange Date pursuant to Section 13.11(b) of the Indenture.
		
	 Total Exchangeable Obligation Value:
	 	With respect to an Exercisable Option, (i) the aggregate number of Shares, if any, that Counterparty is obligated to deliver to the holder of an Exchangeable Note for the relevant Exchange Date
pursuant to Section 13.11(b) of the Indenture, multiplied by (ii) the Obligation Value Price.
		
	 Obligation Value Price:
	 	The opening price as displayed under the heading “Op” on Bloomberg page KRC.N <equity> (or any successor thereto) on the Obligation Value Date.
		
	 Obligation Value Date:
	 	Settlement Date
		
	 Settlement Averaging Period:
	 	For any Exercisable Option, (x) if Counterparty (or the Trustee) has delivered, in accordance with the terms set forth above, a Notice of Exercise to Lehman with respect to such Exercisable
Option with an Exchange Date occurring prior to November 15, 2011, the fifty (50) consecutive Valid Day period beginning on and including the third Scheduled Valid Day following such Exchange Date (or the one hundred (100) consecutive Valid Days
commencing on, and including, the third Scheduled Valid Day following such Exchange Date if Counterparty has delivered a Notice of Gross Share Settlement to Lehman on or prior to the second Scheduled Valid Day following such Exchange Date) or (y) if
Counterparty has, on or following November 15, 2011 delivered a Notice of Exercise to Lehman with respect to such Exercisable Option with an Exchange Date occurring on or following November 15, 2011, the fifty (50) consecutive Valid Days commencing
on, and including, the fifty second (52nd) Scheduled Valid Day immediately prior to the Expiration Date (or the one hundred (100) consecutive Valid Days (the “Gross Physical Settlement Averaging Period”) commencing on, and
including, the one hundred and second (102nd) Scheduled Valid Day immediately prior to the Expiration Date if Counterparty has delivered a Notice of Gross Share Settlement to Lehman on or prior to the second Scheduled Valid Day following such
Exchange Date).
		
	 Settlement Date:
	 	For any Exercisable Option, the date Shares will be delivered with respect to the Exchangeable Notes related to such Exercisable Option, under the terms of the Indenture; provided that if
Counterparty has delivered a Notice of Gross Share Settlement to Lehman by the end of the Exercise Period for such Exercisable Option then, other than with respect to the Exercisable Options relating to Exchangeable Notes for which the relevant
Exchange Date occurs on or after November 15, 2011, the Settlement Date shall be the date that is one Settlement Cycle following the last day of the applicable Settlement Averaging Period.

  

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	 Settlement Currency:
	 	USD
		
	 Other Applicable Provisions:
	 	The provisions of Sections 9.1(c), 9.8, 9.9, 9.11, 9.12 and 10.5 of the Equity Definitions will be applicable, except that all references in such provisions to “Physically-settled”
shall be read as references to “Net Share Settled”. “Net Share Settled” in relation to any Option means that Net Share Settlement is applicable to that Option.
		
	 Representation and Agreement:
	 	Notwithstanding Section 9.11 of the Equity Definitions, the parties acknowledge that any Shares delivered to Counterparty shall be, upon delivery, subject to restrictions and limitations
arising from Counterparty’s status under applicable securities laws and Parent’s Articles of Amendment and Restatement, as amended from time to time (the “Charter”).
	
	3. Additional Terms applicable to the Transaction:
	
	    Adjustments applicable to the Transaction:
		
	 Potential Adjustment Events:
	 	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment Event” means an occurrence of any event or condition, as set forth in Section 13.06 of the
Indenture, that would result in an adjustment to the Exchange Rate of the Exchangeable Notes; provided that in no event shall there be any adjustment hereunder as a result of an adjustment to the Exchange Rate pursuant to Section 13.12 of the
Indenture.
		
	 Method of Adjustment:
	 	Calculation Agent Adjustment, which means, notwithstanding anything to the contrary in the Equity Definitions, upon any adjustment to the Exchange Rate of the Exchangeable Notes pursuant to
the Indenture (other than Section 13.12 of the Indenture), (i) the Calculation Agent shall make a corresponding adjustment to any of the Strike Price, Number of Options and the Option Entitlement and (ii) the Calculation Agent may, in its sole
discretion, make any adjustment consistent with the Calculation Agent Adjustment set forth in Section 11.2(c) of the Equity Definitions to the Cap Price or any other variable relevant to the exercise, settlement or payment for the Transaction to
preserve the fair value of the Options to Lehman after taking into account such Potential Adjustment Event; provided further that in no event shall the Cap Price be less than the Strike Price.
	
	Extraordinary Events applicable to the Transaction:
		
	 Merger Events:
	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition set forth in clause (1) of the definition of Designated
Event in Section 1.01 of the Indenture.
		
	 Tender Offers:
	 	Applicable; provided that notwithstanding Section 12.1(d) of the Equity Definitions, a “Tender Offer” means the occurrence of any event or condition set forth in clause (2)
of the definition of Designated Event in Section 1.01 of the Indenture.
		
	 Consequence of Merger Events/
	 	

  

 7 

			
		
	 Tender Offers:
	 	Notwithstanding Sections 12.2 and 12.3 of the Equity Definitions, upon the occurrence of a Merger Event or a Tender Offer:
		
		 	(i) the Calculation Agent shall make a corresponding adjustment in respect of any adjustment under the Indenture to any one or more of the nature of the Shares, Strike Price, Number of Options
and the Option Entitlement; provided, however, that such adjustment shall be made without regard to any adjustment to the Exchange Rate for the issuance of additional shares as set forth in Section 13.12 of the Indenture; and
		
		 	(ii) the Calculation Agent may, in its sole discretion, make any adjustment consistent with the Modified Calculation Agent Adjustment set forth in Section 12.2(e) or 12.3(d) of the Equity
Definitions, as applicable, to the Cap Price or any other variable relevant to the exercise, settlement or payment for the Transaction; provided that in no event shall the Cap Price be less than the Strike Price;
		
		 	provided that, with respect to a Merger Event, if the consideration for the Shares includes (or, at the option of a holder of Shares, may include) shares of an entity or person not
organized under the laws of the United States, any State thereof or the District of Columbia, Cancellation and Payment (Calculation Agent Determination) shall apply; and provided further that, for the avoidance of doubt, adjustments shall be
made pursuant to the provisions of subparagraphs (i) and (ii) above regardless of whether any Merger Event or Tender Offer gives rise to a Corporate Event Exchange.
		
	 Nationalization, Insolvency or Delisting:
	 	Cancellation and Payment (Calculation Agent Determination); provided that, in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it will also constitute a
Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global
Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the American Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their
respective successors), such exchange or quotation system shall thereafter be deemed to be the Exchange.
		
	 Additional Disruption Events:
	 	
		
	     Change in Law:
	 	Applicable
		
	     Failure to Deliver
	 	Applicable
		
	     Determining Party:
	 	For all applicable Additional Disruption Events, Lehman
		
	 Non-Reliance:
	 	Applicable
		
	 Agreement and Acknowledgments Regarding Hedging Activities:
	 	

Applicable

  

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	 Additional Acknowledgments:
	 	Applicable

 4. Calculation
Agent:                                       
     Lehman 
 5. Account Details: 
  

	 	(a)	Account for payments to Counterparty: 

 Union Bank of California 
 21515 Hawthorne Blvd., Torrance, CA 90503-6564 
 ABA# 122 000 496 
 Acct: Kilroy Realty, L.P. 
 Acct No.: 93400-00622 
 Account for delivery of Shares to Counterparty: 
 To be provided by Counterparty 
  

	 	(b)	Account for payments to Lehman: 

 To be
provided by Lehman. 
 Account for delivery of Shares from Lehman: 
 To be provided by Lehman. 
 6. Offices:

 The Office of Counterparty for the Transaction is: Inapplicable, Counterparty is not a Multibranch Party. 
 The Office of Lehman for the Transaction is: New York 
 Lehman Brothers OTC Derivatives Inc. 
 745 Seventh Avenue 
 New York, New York 10019 
 7. Notices: For
purposes of this Confirmation: 
  

	 	(a)	Address for notices or communications to Counterparty and Parent: 

  

			
	Kilroy Realty, L.P.
	12200 W. Olympic Boulevard, Suite 200
	Los Angeles, California 90064
	Attention:  Richard E. Moran
	                  EVP and CFO
	Telephone No.:	  	(310) 481-8400
	Facsimile No.:	  	(310) 481-6500

 with a copy to: 
 [COUNTERPARTY TO PROVIDE] 
  

	 	(b)	Address for notices or communications to Lehman: 

  

			
	To:	  	Lehman Brothers Inc., acting as Agent
		  	Lehman Brothers OTC Derivatives Inc., acting as Principal
		  	745 Seventh Avenue

  

 9 

			
		  	New York, New York 10019
	Attn:	  	Transaction Management Group
	Telephone No.:	  	(212) 526-9986
	Facsimile No.:	  	(646) 885-9546
		
	with a copy:	  	
		
	To:	  	Lehman Brothers Inc., acting as Agent
		  	Lehman Brothers OTC Derivatives Inc., acting as Principal
		  	745 Seventh Avenue
		  	New York, New York 10019
	Attn:	  	Steve Roti – US Equity Linked
	Telephone No.:	  	(212) 526-0055
	Facsimile No.:	  	(917) 552-0561

 8. Representations and Warranties of Counterparty and Parent 
 The representations and warranties of Counterparty set forth in Section 3 of the Purchase Agreement (the “Purchase Agreement”) dated as of
March 27, 2007 among Counterparty, Parent and J.P. Morgan Securities Inc., Banc of America Securities LLC and Lehman Brothers Inc. as representatives of the Initial Purchasers party thereto are true and correct and are hereby deemed to be
repeated to Lehman as if set forth herein. Counterparty and Parent hereby further represent and warrant to, and agree with, Lehman as of the Trade Date that: 
  

	 	(a)	No consent, approval, authorization, or order of, or filing with, any governmental agency or body or any court is required in connection with the execution, delivery or performance
by Counterparty or Parent of this Confirmation, except such as have been obtained or made and such as may be required under the Securities Act of 1933, as amended (the “Securities Act”), or state securities laws.

  

	 	(b)	Each of Counterparty and Parent is an “eligible contract participant” (as such term is defined in Section 1a(12) of the Commodity Exchange Act, as amended (the
“CEA”)) because one or more of the following is true: 

 It is a corporation, partnership, proprietorship,
organization, trust or other entity and: 
  

	 	(i)	it has total assets in excess of USD 10,000,000; 

  

	 	(ii)	its obligations hereunder are guaranteed, or otherwise supported by a letter of credit or keepwell, support or other agreement, by an entity of the type described in
Section 1a(12)(A)(i) through (iv), 1a(12)(A)(v)(I), 1a(12)(A)(vii) or 1a(12)(C) of the CEA; or 

  

	 	(iii)	it has a net worth in excess of USD 1,000,000 and has entered into this Agreement in connection with the conduct of its business or to manage the risk associated with an asset or
liability owned or incurred or reasonably likely to be owned or incurred by it in the conduct of its business. 

  

	 	(c)	Each of it and its affiliates is not, on the date hereof, in possession of any material non-public information with respect to Counterparty, Parent or the Shares.

  

	 	(d)	Ownership positions held by Lehman or any of its affiliates solely in its capacity as a nominee or fiduciary do not constitute Beneficial Ownership or Constructive Ownership (as
such terms are defined in the Charter) by Lehman. 

  

	 	(e)	 Parent has all necessary corporate power and authority to execute, deliver and perform its obligations in respect of the letter agreement (the
“Waiver”) dated as of March 27, 2007 delivered by Parent to Lehman and entitled “Waiver of Ownership Limits”; such execution, delivery and performance have been duly authorized by all necessary corporate action on
Parent’s part; and the 

  

 10 

	 	 
Waiver has been duly and validly executed and delivered by Parent and constitutes its valid and binding obligation, enforceable against Parent in accordance
with its terms. 

  

	 	(f)	Neither the execution and delivery of the Waiver nor the incurrence or performance of obligations of Parent thereunder will conflict with or result in a breach of the certificate of
incorporation or by-laws (or any equivalent documents) of Parent, or any applicable law or regulation, or any order, writ, injunction or decree of any court or governmental authority or agency, or any agreement or instrument to which Parent or any
of its subsidiaries is a party or by which Parent or any of its subsidiaries is bound or to which Parent or any of its subsidiaries is subject, or constitute a default under, or result in the creation of any lien under, any such agreement or
instrument, or breach or constitute a default under any agreements and contracts of Parent or any of its significant subsidiaries filed as exhibits to Parent’s Annual Report on Form 10-K for the year ended December 31, 2006 as updated by
any subsequent filings. 

 9. Other Provisions: 
  

	 	(a)	Opinions. Each of Counterparty and Parent shall deliver to Lehman an opinion of counsel, dated as of the Trade Date, with respect to the matters set forth in
Section 3(a) of the Agreement and Sections 8(e) and (f) of this Confirmation. 

  

	 	(b)	Amendment. If the Initial Purchasers party to the Purchase Agreement exercise their right to purchase additional Exchangeable Notes as set forth therein, then, at the
option of Counterparty, Lehman, Counterparty and Parent will either enter into a new confirmation or amend this Confirmation to provide for such increase in Exchangeable Notes (but on pricing terms acceptable to Lehman and Counterparty) (such
additional confirmation or amendment to this Confirmation to provide for the payment by Counterparty to Lehman of the additional premium related thereto). 

  

	 	(c)	Repurchase Notices. Counterparty shall give Lehman written notice of any repurchase of Shares (a “Repurchase Notice”) at least ten Scheduled Trading
Days prior to effecting such repurchase if, after giving effect to such repurchase, the quotient of (x) the product of (a) the Number of Options and (b) the Option Entitlement divided by (y) the number of Parent’s
outstanding Shares (such quotient expressed as a percentage, the “Option Equity Percentage”) would be greater than 6.5%. Such Repurchase Notice shall set forth the number of Shares to be outstanding after giving effect to the
relevant Share repurchase. In connection with the delivery of any Repurchase Notice to Lehman, (x) Parent shall, concurrently with or prior to such delivery, publicly announce and disclose the relevant repurchase or (y) Parent shall
represent and warrant in such Repurchase Notice that the information set forth in such Repurchase Notice does not constitute material non-public information with respect to Parent or the Shares. 

  

	 	(d)	Exchange Rate Adjustments. Parent shall provide to Lehman written notice (such notice, an “Exchange Rate Adjustment Notice”) at least ten Scheduled
Trading Days prior to consummating or otherwise executing or engaging in any transaction or event (an “Exchange Rate Adjustment Event”) that would lead to an increase in the Exchange Rate (as such term is defined in the Indenture),
other than an increase pursuant to 13.06(a) or (d) of the Indenture, which Exchange Rate Adjustment Notice shall set forth the new, adjusted Exchange Rate after giving effect to such Exchange Rate Adjustment Event (the “New Exchange
Rate”); provided that no such Exchange Rate Adjustment Notice needs to be provided unless, after giving effect to such Exchange Rate Adjustment Event, the Option Equity Percentage would be greater than 6.5%. In connection with the
delivery of any Exchange Rate Adjustment Notice to Lehman, (x) Parent shall, concurrently with or prior to such delivery, publicly announce and disclose the Exchange Rate Adjustment Event or (y) Parent shall, concurrently with such
delivery, represent and warrant that the information set forth in such Exchange Rate Adjustment Notice does not constitute material non-public information with respect to Parent or the Shares. 

  

	 	(e)	 Regulation M. Neither Counterparty or Parent is on the date hereof engaged in a distribution, as such term is used in Regulation M under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), of any securities of Counterparty or Parent, as applicable, other than (i) a 

  

 11 

	 	 
distribution meeting the requirements of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M and (ii) the distribution of the
Exchangeable Notes. Neither Counterparty nor Parent shall, until the second Scheduled Trading Day immediately following the Trade Date, engage in any such distribution. 

  

	 	(f)	No Manipulation. Neither Counterparty nor Parent is entering into this Transaction to create actual or apparent trading activity in the Shares (or any security
convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) or otherwise in violation of the Exchange Act.

  

	 	(g)	Number of Repurchased Shares. Each of Counterparty and Parent represents that it could have purchased a number of Shares equal to (i) the product of the
Number of Options, Option Entitlement and the amount by which the Cap Price exceeds the Strike Price, divided by (ii) the Cap Price, on the Exchange or otherwise, in compliance with applicable law, its organizational documents and any
orders, decrees and contractual agreements binding upon Counterparty or Parent, on the Trade Date. 

  

	 	(h)	Board Authorization. Each of this Transaction and the issuance of the Exchangeable Notes was approved by its board of directors and publicly announced, solely for the
purposes stated in such board resolution and public disclosure and, prior to any exercise of Options hereunder, Counterparty’s and Parent’s board of directors will have duly authorized any repurchase of Shares pursuant to this Transaction.
Each of Counterparty and Parent further represents that there is no internal policy, whether written or oral, of Counterparty or Parent that would prohibit Counterparty or Parent from entering into any aspect of this Transaction, including, but not
limited to, the purchases of Shares to be made pursuant hereto. 

  

	 	(i)	 Transfer or Assignment. Counterparty or Parent may not transfer any of its rights or obligations under this Transaction without the prior written
consent of Lehman. Lehman may, without Counterparty’s and Parent’s consent, transfer or assign all or any part of its rights or obligations under this Transaction to any third party (the “Transferee”) with a rating for its
long term, unsecured and unsubordinated indebtedness equal to or better than the lesser of (i) the credit rating of Lehman at the time of the transfer and (ii) A- by Standard and Poor’s Rating Group, Inc. or its successor
(“S&P”), or A3 by Moody’s Investor Service, Inc. (“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least an equivalent rating or better by a substitute agency rating
mutually agreed by Counterparty and Lehman (the “Minimum Agency Credit Rating”); provided that the Transferee agrees not to transfer or assign all or any part of its rights or obligations under such transferred or assigned
portion of this Transaction (the “Transferred Transaction”) to any third party unless such third party has a rating for its long term, unsecured and unsubordinated indebtedness equal to or better than the lesser of (i) the
credit rating of the Transferee at the time of the transfer and (ii) the Minimum Agency Credit Rating; and provided further that the Transaction will not, at the time of transfer, exceed the Threshold Value (as defined below) with
respect to the Transferee and such Transferee agrees (i) to comply with Section 9(aa) of this Confirmation with respect to its securities and (ii) not to transfer or assign all or any portion of the Transferred Transaction to any
other third party unless such third party agrees to comply with Section 9(aa) of this Confirmation with respect to its securities (it being understood that all references therein to Lehman shall instead refer to such Transferee or such
subsequent third party, as applicable). If after Lehman’s commercially reasonable efforts, Lehman is unable to effect such a transfer or assignment on pricing terms reasonably acceptable to Lehman and within a time period reasonably acceptable
to Lehman of a sufficient number of Options to reduce (i) the aggregate “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and rules promulgated thereunder) of Lehman and any of its affiliates with which
it is required to aggregate “beneficial ownership” under Section 13 of the Exchange Act and rules promulgated thereunder (“Lehman Group”) to 7.5% of Parent’s outstanding Shares or less, (ii) the Option
Equity Percentage to 6.5% or less, (iii) Lehman Brothers Holdings’s (“Bank”) Beneficial Ownership or Constructive Ownership (as such terms are defined in the Charter) of Common Stock (as such term is defined in the
Charter) to 8.0% or less or (iv) the percentage of the total 

  

 12 

	 	 
vote or the total value of Lehman’s securities that this Transaction represents to 9.5% or less, Lehman may designate any Exchange Business Day as an
Early Termination Date with respect to a portion (the “Terminated Portion”) of this Transaction, such that (i) the Lehman Group’s “beneficial ownership” following such partial termination will be equal to or less
than 7.5%, (ii) the Option Equity Percentage following such partial termination will be equal to or less than 6.5%, (iii) Bank’s Beneficial Ownership or Constructive Ownership (as such terms are defined in the Charter) of Common Stock
(as such term is defined in the Charter) following such partial termination will be equal to or less than 8.0% or (iv) the percentage of the total vote or the total value of Lehman’s securities that this Transaction represents to or less
than 9.5%. If the Waiver terminates or ceases to be valid, binding or enforceable against Counterparty Lehman may designate any Exchange Business Day as an Early Termination Date with respect to all or a portion of this Transaction. Solely for
purposes of this subsection, following receipt of any Repurchase Notice or Exchange Rate Adjustment Notice, (i) Lehman Group’s “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and rules
promulgated thereunder) with respect to Shares, (ii) the Options Equity Percentage and (iii) Bank’s Beneficial Ownership or Constructive Ownership (as such terms are defined in the Charter) with respect to the Common Stock (as such
term is defined in the Charter), as the case may be, shall incorporate the deemed effect of the relevant Share repurchase (in the case of a Repurchase Notice) or New Exchange Rate (in the case of an Exchange Rate Adjustment Notice). In the event
that Lehman so designates an Early Termination Date with respect to a portion of this Transaction, a payment shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination Date had been designated in respect of a
Transaction having terms identical to this Transaction and a Number of Options equal to the Terminated Portion, (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and (iii) such Transaction shall be
the only Terminated Transaction (and, for the avoidance of doubt, the provisions of Section 9(q) shall apply to any amount that is payable by Lehman to Counterparty pursuant to this sentence as if Counterparty was not the Affected Party).
Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Lehman to purchase, sell, receive or deliver any shares or other securities to or from Counterparty, Lehman may designate any of its affiliates to
purchase, sell, receive or deliver such shares or other securities and otherwise to perform Lehman’s obligations in respect of this Transaction and any such designee may assume such obligations. Lehman shall be discharged of its obligations to
Counterparty to the extent of any such performance. 

  

	 	(j)	Staggered Settlement. If upon advice of counsel with respect to applicable legal and regulatory requirements, including any requirements relating to Lehman’s
hedging activities hereunder, Lehman reasonably determines that it would not be practicable or advisable to deliver, or to acquire Shares to deliver, any or all of the Shares to be delivered by Lehman on the Settlement Date for the Transaction,
Lehman may, by notice to Counterparty on or prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a “Staggered Settlement Date”) as follows:

  

	 	 (i)
	 in such notice, Lehman will specify to Counterparty the related Staggered Settlement Dates (the first of which will be
such Nominal Settlement Date and the last of which will be no later than the twentieth (20th) Exchange Business
Day following such Nominal Settlement Date) and the number of Shares that it will deliver on each Staggered Settlement Date; 

  

	 	(ii)	the aggregate number of Shares that Lehman will deliver to Counterparty hereunder on all such Staggered Settlement Dates will equal the number of Shares that Lehman would otherwise
be required to deliver on such Nominal Settlement Date; 

  

	 	(iii)	Net Share Settlement terms will apply on each Staggered Settlement Date, except that the Net Shares will be allocated among such Staggered Settlement Dates as specified by Lehman in
the notice referred to in clause (i) above; and 

  

	 	(iv)	 if Counterparty declares a dividend or other distribution with respect to Shares with an ex dividend date falling on or after a Nominal Settlement Date and prior to
a Staggered 

  

 13 

	 	 
Settlement Date, then in addition to any Shares it delivers on such Staggered Settlement Date, Lehman shall deliver to Counterparty the amount of such
dividend or other distribution in respect of such Shares on the Exchange Business Day next following its receipt of such dividend or distribution. 

  

	 	(k)	Early Unwind. In the event the sale of Exchangeable Notes is not consummated with the Initial Purchasers for any reason or Counterparty fails to deliver to Lehman
opinions of counsel to Counterparty as required pursuant to Section 9(a) by the close of business in New York on April 2, 2007 (or such later date as agreed upon by the parties) (April 2, 2007 or such later date as agreed upon being the
“Early Unwind Date”), this Transaction shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations of Lehman,
Counterparty and Parent under the Transaction shall be cancelled and terminated and (ii) each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any
obligations or liabilities of the other party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date; provided that if the sale is not consummated for any reason other than a
default by any Initial Purchaser, the Counterparty shall purchase from Lehman on the Early Unwind Date all Shares purchased by Lehman or one or more of its affiliates and reimburse Lehman for any costs or expenses (including market losses) relating
to the unwinding of its hedging activities in connection with the Transaction (including any loss or cost incurred as a result of its terminating, liquidating, obtaining or reestablishing any hedge or related trading position). The amount of any
such reimbursement shall be determined by Lehman in its sole good faith discretion. Lehman shall notify Counterparty of such amount and Counterparty shall pay such amount in immediately available funds on the Early Unwind Date. Each of Lehman and
Counterparty represents and acknowledges to the other that, subject to the proviso included in this paragraph, upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and finally discharged.

  

	 	(l)	Role of Agent. Lehman Brothers Inc., in its capacity as Agent will be responsible for (A) effecting this Transaction, (B) issuing all required confirmations
and statements to Lehman and Counterparty, (C) maintaining books and records relating to this Transaction in accordance with its standard practices and procedures and in accordance with applicable law and (D) unless otherwise requested by
Counterparty, receiving, delivering, and safeguarding Counterparty’s funds and any securities in connection with this Transaction, in accordance with its standard practices and procedures and in accordance with applicable law.

  

	 	i.	Agent is acting in connection with this Transaction solely in its capacity as Agent for Lehman and Counterparty pursuant to instructions from Lehman and Counterparty. Agent shall
have no responsibility or personal liability to Lehman or Counterparty arising from any failure by Lehman or Counterparty to pay or perform any obligations hereunder, or to monitor or enforce compliance by Lehman or Counterparty with any obligation
hereunder, including, without limitation, any obligations to maintain collateral. Each of Lehman and Counterparty agrees to proceed solely against the other to collect or recover any securities or monies owing to it in connection with or as a result
of this Transaction. Agent shall otherwise have no liability in respect of this Transaction, except for its gross negligence or willful misconduct in performing its duties as Agent. 

  

	 	ii.	Any and all notices, demands, or communications of any kind relating to this Transaction between Lehman and Counterparty shall be transmitted exclusively through Agent at the
following address: 

 Lehman Brothers Inc., acting as Agent 
 Lehman Brothers OTC Derivatives Inc., acting as Principal 
 745 Seventh Avenue 
 New York, New York 10019 
 Attn: Transaction Management Group 
 Telephone No.: (212) 526-9986 
  

 14 

 Facsimile No.: (646) 885-9546 
  

	 	iii.	The date and time of the Transaction evidenced hereby will be furnished by the Agent to Lehman and Counterparty upon written request. 

  

	 	iv.	The Agent will furnish to Counterparty upon written request a statement as to the source and amount of any remuneration received or to be received by the Agent in connection with
the Transaction evidenced hereby. 

  

	 	v.	Lehman and Counterparty each represents and agrees (A) that this Transaction is not unsuitable for it in the light of such party’s financial situation, investment
objectives and needs and (B) that it is entering into this Transaction in reliance upon such tax, accounting, regulatory, legal and financial advice as it deems necessary and not upon any view expressed by the other or the Agent.

  

	 	(m)	Dividends. If at any time during the period from and including the Trade Date, to but excluding the Expiration Date, (i) an ex-dividend date for a cash dividend
occurs with respect to the Shares (an “Ex-Dividend Date”), and that dividend is less than the Regular Dividend on a per Share basis or (ii) if no Ex-Dividend Date for a cash dividend occurs with respect to the Shares in any
quarterly dividend period of Counterparty, then the Calculation Agent will adjust the Cap Price to preserve the fair value of the Options to Lehman after taking into account such dividend or lack thereof. “Regular Dividend” shall
mean USD 0.555 per Share per quarter. 

  

	 	(n)	Additional Termination Events. Notwithstanding anything to the contrary in this Confirmation, (i) upon the occurrence of an Exchange Date with respect to an
Induced Exchange or a Corporate Event Exchange, as applicable: 

 (A) Counterparty shall within one Scheduled Trading Day
provide written notice (an “Excluded Exchange Notice”) to Lehman specifying the number of Exchangeable Notes exchanged on such Exchange Date and identifying the related exchanges as Induced Exchanges or Corporate Event Exchanges, as
applicable; 
 (B) such Induced Exchange or Corporate Event Exchange, as applicable, shall constitute an Additional Termination Event
hereunder with respect to the number of Options relating to the number of Exchangeable Notes surrendered for exchange in connection with such Induced Exchange or Corporate Event Exchange, as applicable, (the “Affected Number of
Options”), in which case (x) the sole Affected Transaction shall consist of a transaction identical to the Transaction except that Number of Options for such Affected Transaction shall equal the Affected Number of Options and
Counterparty shall be deemed the sole Affected Party and (y) the Transaction shall remain in full force and effect, except that the Number of Options subject to the Transaction immediately prior to the Exchange Date for such Induced Exchange or
Corporate Event Exchange, as applicable, shall as of such Exchange Date be reduced by the Affected Number of Options; 
 (C) notwithstanding
anything to the contrary in the Agreement, Lehman shall designate an Early Termination Date in respect of such Affected Transaction, which shall be no earlier than one Scheduled Trading Day following the Exchange Date for the related Induced
Exchange or Corporate Event Exchange, as applicable; 
 (D) notwithstanding anything to the contrary in the Agreement, the amount payable in
respect of such Affected Transaction in respect of each Option that is part of such Affected Transaction (an “Affected Option”) shall equal the lesser of (i) the amount payable pursuant to Section 6 of the Agreement in
respect of each Affected Option and (ii) the total value deliverable by Counterparty in respect of each $1,000 principal amount of such Exchangeable Notes in excess of $1,000, whether in cash and/or in Shares (the value of Shares deliverable by
Counterparty to be based on the opening price as displayed under the heading “Op” on 

  

 15 

 
Bloomberg page KRC.N <equity> (or any successor thereto) on the Settlement Date for such Exchangeable Notes, as determined by the Calculation Agent);

 (E) for the avoidance of doubt, in determining the amount payable in respect of such Affected Transaction pursuant to Section 6 of
the Agreement, the Calculation Agent shall assume that (w) the relevant Induced Exchange or Corporate Event Exchange, as applicable, had not occurred, (x) in the case of an Induced Exchange, any adjustments, agreements, payments,
deliveries or acquisitions by or on behalf of Counterparty or any affiliate of Counterparty leading thereto, had not occurred, (y) no adjustments to the Exchange Rate have occurred pursuant to Section 13.12 of the Indenture and
(z) the corresponding Exchangeable Notes remain outstanding, and 
 (ii) if an event of default with respect to Counterparty shall occur
under the terms of the Exchangeable Notes as set forth in Section 6.01 of the Indenture and the Exchangeable Notes are accelerated, then such event of default shall constitute an Additional Termination Event applicable to the Transaction and,
with respect to such event of default (A) Counterparty shall be deemed to be the sole Affected Party and the Transaction shall be the sole Affected Transaction and (B) Lehman shall be the party entitled to designate an Early Termination
Date pursuant to Section 6(b) of the Agreement. 
  

	 	(o)	Amendments to Equity Definitions. (i) Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “diluting or concentrative”
and replacing them with the word “material”. 

 (ii) Section 11.2(c) of the Equity Definitions is hereby amended
by (x) replacing the words “a diluting or concentrative” with “an” and (y) deleting the phrase “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan
rate or liquidity relative to the relevant Shares)” and replacing it with the phrase “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity
relative to the relevant Shares).” 
 (iii) Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting
from the fourth line thereof the word “or” after the word “official” and inserting a comma therefor, and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting the following words therefor
“or (C) at Lehman’s option, the occurrence of any of the events specified in Section 5(a)(vii) (1) through (9) of the ISDA Master Agreement with respect to that Issuer.” 
 (iv) Section 12.9(b)(i) of the Equity Definitions is hereby amended by (1) replacing “either party may elect” with “Lehman may
elect” and (2) replacing “notice to the other party” with “notice to Counterparty” in the first sentence of such section. 
  

	 	(p)	No Collateral or Setoff. Notwithstanding any provision of the Agreement or any other agreement between the parties to the contrary, the obligations of Counterparty
hereunder are not secured by any collateral. Obligations under this Transaction shall not be set off against any other obligations of the parties, whether arising under the Agreement, this Confirmation, under any other agreement between the parties
hereto, by operation of law or otherwise, and no other obligations of the parties shall be set off against obligations under this Transaction, whether arising under the Agreement, this Confirmation, under any other agreement between the parties
hereto, by operation of law or otherwise, and each party hereby waives any such right of setoff. 

  

	 	(q)	 Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. If in respect of this Transaction, an amount is payable
by Lehman to Counterparty (i) pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or (ii) pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty may request
Lehman to satisfy any such Payment Obligation by the Share Termination Alternative (as defined below) (except that Counterparty shall not make such an election in the event of a Nationalization, Insolvency or Merger Event, in each case, in which the
consideration to be paid to holders of 

  

 16 

	 	 
Shares consists solely of cash, or an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the
Affected Party, other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in Section 5(b) of the Agreement or an Additional
Termination Event as a result of an Induced Exchange in each case that resulted from an event or events outside Counterparty’s control) and shall give irrevocable telephonic notice to Lehman, confirmed in writing within one Currency Business
Day, no later than 12:00 p.m. New York local time on the Merger Date, the Announcement Date (in the case of Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable. For the avoidance of doubt, the
parties agree that in calculating the Payment Obligation the Determining Party may consider the purchase price paid in connection with the purchase of Share Termination Delivery Property. 

  

			
		
	Share Termination Alternative:	 	Applicable and means that Lehman shall deliver to Counterparty the Share Termination Delivery Property on, or within a commercially reasonable period of time after, the date when the Payment
Obligation would otherwise be due pursuant to Section 12.7 or 12.9 of the Equity Definitions or Section 6(d)(ii) and 6(e) of the Agreement, as applicable (the “Share Termination Payment Date”), in satisfaction of the Payment
Obligation in the manner reasonably requested by Counterparty free of payment.
		
	Share Termination Delivery Property:	 	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price. The Calculation Agent shall
adjust the Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit
Price.
		
	Share Termination Unit Price:	 	The value to Lehman of property contained in one Share Termination Delivery Unit, as determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the
Calculation Agent to Lehman at the time of notification of the Payment Obligation.
		
	Share Termination Delivery Unit:	 	One Share or, if a Merger Event has occurred and a corresponding adjustment to this Transaction has been made, a unit consisting of the number or amount of each type of property received by a
holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Merger Event, as determined by the Calculation Agent.
		
	Failure to Deliver:	 	Applicable
		
	Other applicable provisions:	 	If this Transaction is to be Share Termination Settled, the provisions of Sections 9.9, 9.11, 9.12 and 10.5 (as modified above) of the Equity Definitions will be applicable, except that all
references in such

  

 17 

			
		 	provisions to “Physically-settled” shall be read as references to “Share Termination Settled” and all references to “Shares” shall be read as references to
“Share Termination Delivery Units”. “Share Termination Settled” in relation to this Transaction means that Share Termination Settlement is applicable to this Transaction.

  

	 	(r)	Registration. Counterparty hereby agrees that if, in the good faith reasonable judgment of Lehman, the Shares (“Hedge Shares”) acquired by Lehman for
the purpose of hedging its obligations pursuant to this Transaction cannot be sold in the public market by Lehman without registration under the Securities Act, Counterparty shall, at its election, either (i) in order to allow Lehman to sell
the Hedge Shares in a registered offering, make available to Lehman an effective registration statement under the Securities Act and enter into an agreement, in form and substance satisfactory to Lehman, substantially in the form of an underwriting
agreement for a registered secondary offering; provided, however, that if Lehman, in its sole reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures
and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this paragraph shall apply at the election of Counterparty, (ii) in order to allow Lehman to sell the Hedge Shares in a private
placement, enter into a private placement agreement on commercially reasonable terms substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance satisfactory to Lehman
(in which case, the Calculation Agent shall make any adjustments to the terms of this Transaction that are necessary, in its reasonable judgment, to compensate Lehman for any commercially reasonable discount from the public market price of the
Shares incurred on the sale of Hedge Shares in a private placement), or (iii) purchase the Hedge Shares from Lehman at the Relevant Price (as such term is defined in the Equity Definitions) on such Trading Days, and in the amounts, requested by
Lehman. 

  

	 	(s)	 Indemnification. Counterparty and Parent jointly and severally agree to indemnify and hold harmless Lehman and its affiliates and their respective
officers, directors, employees, affiliates, advisors, agents and controlling persons (each, an “Indemnified Person”) from and against any and all losses (including, without limitation, losses relating to Lehman’s hedging or
trading activities, losses relating to Lehman’s hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider,” any losses resulting from the operation of any ownership limitations contained
in the Charter and any losses in connection therewith with respect to this Transaction), claims, damages, judgments, liabilities and expenses (including reasonable attorney’s fees), joint or several, which an Indemnified Person may become
subject to, as a result of (i) Parent’s failure to publicly announce and disclose the contents of any Repurchase Notice or Exchange Rate Adjustment Notice, as the case may be, or (ii) Parent’s failure to provide Lehman with a
Repurchase Notice on the day and in the manner specified in Section 9(c); and to reimburse, within 30 days, upon written request, each of such Indemnified Persons for any reasonable legal or other expenses incurred in connection with
investigating, preparing for, providing testimony or other evidence in connection with or defending any of the foregoing. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or
asserted against the Indemnified Person as a result of Parent’s failure to publicly announce and disclose the contents of any Repurchase Notice or Exchange Rate Adjustment Notice, as the case may be, such Indemnified Person shall promptly
notify Parent in writing, and Counterparty and/or Parent, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and any others Counterparty and/or Parent
may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding. Counterparty and Parent shall not be liable for any settlement of any proceeding contemplated by this subsection that is effected
without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, Counterparty and Parent jointly and severally agree to indemnify any Indemnified Person from and against any loss or liability by reason
of such settlement or judgment. Counterparty and Parent shall not, without the prior written consent of the Indemnified Person, effect any settlement 

  

 18 

	 	 
of any pending or threatened proceeding contemplated by this subsection that is in respect of which any Indemnified Person is or could have been a party and
indemnity could have been sought hereunder by such Indemnified Person, unless such settlement includes an unconditional release of such Indemnified Person from all liability on claims that are the subject matter of such proceeding on terms
reasonably satisfactory to such Indemnified Person. If the indemnification provided for in this subsection is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then
Counterparty and Parent hereunder, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities. The remedies
provided for in this subsection are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Party at law or in equity. The indemnity and contribution agreements contained in this subsection shall
remain operative and in full force and effect regardless of the termination of this Transaction. 

  

	 	(t)	Notice of Merger Consideration. Parent covenants and agrees that, as promptly as practicable following the public announcement of any transaction or event described in
clause (1) of the definition of Designated Event in Section 1.01 of the Indenture, Parent shall notify Lehman in writing of the types and amounts of consideration that holders of Shares have elected to receive upon consummation of such
transaction or event (the date of such notification, the “Consideration Notification Date”); provided that in no event shall the Consideration Notification Date be later than the date on which such transaction or event is
consummated. 

  

	 	(u)	Tax Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Counterparty, Parent and each of its employees, representatives, or
other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Counterparty or
Parent relating to such tax treatment and tax structure. 

  

	 	(v)	Right to Extend. Lehman may postpone, in whole or in part, any Valid Day or Valid Days during the Settlement Averaging Period with respect to some or all of the
relevant Options (in which event the Calculation Agent shall make appropriate adjustments to the number of Options with respect to one or more of the Valid Days during such Settlement Averaging Period) if Lehman determines, based upon advice of
counsel, that such extension is reasonably necessary or appropriate to preserve Lehman’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions or to enable Lehman to effect purchases or sales of Shares in
connection with its hedging or settlement activity hereunder, in each case, in a manner that would, if Lehman were Parent or an affiliated purchaser of Parent, be in compliance with applicable legal, regulatory or self-regulatory requirements, or
with related policies and procedures applicable to Lehman. 

  

	 	(w)	Status of Claims in Bankruptcy. Lehman acknowledges and agrees that this Confirmation is not intended to convey to Lehman rights against Counterparty with respect to
the Transaction that are senior to the claims of unitholders of Counterparty in any U.S. bankruptcy proceedings of Counterparty or Parent; provided that nothing herein shall limit or shall be deemed to limit Lehman’s right to pursue
remedies in the event of a breach by Counterparty or Parent of its obligations and agreements with respect to the Transaction; provided, further, that nothing herein shall limit or shall be deemed to limit Lehman’s rights in
respect of any transactions other than the Transaction. 

  

	 	(x)	 Securities Contract; Swap Agreement. The parties hereto intend for: (a) the Transaction to be a “securities contract” and a “swap
agreement” as defined in the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 555 and
560 of the Bankruptcy Code; (b) a party’s right to liquidate the Transaction and to exercise any other remedies upon the occurrence of any Event of Default under the Agreement with respect to the other party to constitute a
“contractual right” as described in the Bankruptcy Code; (c) any cash, securities or other property provided as performance assurance, credit support or collateral with respect to the Transaction to constitute “margin
payments” and “transfers” under a “swap agreement” as defined 

  

 19 

	 	 
in the Bankruptcy Code; and (d) all payments for, under or in connection with the Transaction, all payments for the Shares and the transfer of such
Shares to constitute “settlement payments” and “transfers” under a “swap agreement” as defined in the Bankruptcy Code. 

  

	 	(y)	Governing Law. New York law (without reference to choice of law doctrine). 

  

	 	(z)	Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to this Transaction. Each party (i) certifies that no representative, agent or attorney of either party has represented, expressly or otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into this Transaction, as applicable, by, among other things, the mutual waivers and certifications provided herein.

  

	 	(aa)	Additional Provision. Lehman will use good faith efforts to ensure that the Transaction will not represent more than 10% (the “Threshold Value”) of
the total vote or total value of all of Lehman’s outstanding securities, for purposes of Sections 856(c)(4)(B)(iii)(II) and (III) of the Internal Revenue Code of 1986, as amended. Lehman hereby agrees to notify Counterparty promptly when it has
determined that the Threshold Value has been exceeded. 

  

	 	(bb)	Regulatory Provisions. Counterparty represents and warrants that it has received and read and understands the Notice of Regulatory Treatment and the OTC Option Risk
Disclosure Statement. 

  

 20 

 Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so
that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Lehman) correctly sets forth the terms of the agreement between Lehman and Counterparty with respect to
the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy via facsimile to 646-885-9546.

  

					
	Yours faithfully,	 	
		
	 Lehman Brothers OTC Derivatives Inc.
	 	
			
	 By:
	 	 /s/ Anatoly Kozlov
	 	
	 Name:
	 	Anatoly Kozlov	 	
	 Title:
	 	Authoized Signatory	 	

 Accepted and confirmed 
 as of the Trade Date: 
  

					
	 Kilroy Realty, L.P.
	 	
			
	By	 	 Kilroy Realty Corporation
 its General
Partner
	 	
			
	By:	 	 /s/ Tyler H. Rose
	 	
	Name:	 	Tyler H. Rose	 	
	Title:	 	Senior Vice President and Treasurer	 	
			
	By:	 	 /s/ Richard E. Moran Jr.
	 	
	Name:	 	Richard E. Moran Jr.	 	
	Title:	 	Executive Vice President	 	
		 	Chief Financial Officer	 	
		
	 Kilroy Realty Corporation
	 	
			
	By:	 	 /s/ Tyler H. Rose
	 	
	Name:	 	Tyler H. Rose	 	
	Title:	 	Senior Vice President and Treasurer	 	
			
	By:	 	 /s/ Richard E. Moran Jr.
	 	
	Name:	 	Richard E. Moran Jr.	 	
	Title:	 	Executive Vice President	 	
		 	Chief Financial OfficerAgreement for Sale and Purchase

 Exhibit 10.1 
 AGREEMENT FOR SALE AND PURCHASE 
 (Approximately 20.22 acres of Surface Rights and certain
improvements located on 52nd Street between East McDowell Road and Roosevelt Street, City of Phoenix, Maricopa County, Arizona) 
 THIS
AGREEMENT FOR SALE AND PURCHASE (“Agreement”) is entered into as of the 30th day of March, 2007, by and between SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC, a Delaware limited liability company (“Seller”), and RIDGE
PROPERTY SERVICES II, LLC, a Maryland real estate investment trust, or its permitted assignee pursuant to Section 21 below (“Buyer”). 
 RECITALS: 
 A. Seller wishes to sell, and Buyer wishes to buy, all of Seller’s Surface
Rights (as defined below) in and to the land legally described in Exhibit A attached hereto (or to be attached hereto following completion of the Survey) (“Parcel”), together with the Associated Property (as
defined below). The location and approximate configuration is depicted on Exhibit A-1 attached hereto (the “Project Plan”). 
 B. The parties acknowledge that the land identified as Exhibit A is within the boundaries of the Motorola 52nd Street Superfund Site as identified by the Environmental Protection Agency (EPA) and the Arizona
Department of Environmental Quality (ADEQ). Groundwater contamination below the identified land is acknowledged by the parties. 
 C. When
used in this Agreement: 
 1. The term “Surface Rights” shall have the meaning ascribed to such term in Section 1.3(aaa)
of the Declaration (as defined in recital C.4 below) but limited to the identified Property as defined below. 
 2. The term
“Associated Property” shall mean all of Seller’s rights, title and interest, if any, in and to: (a) all improvements and fixtures now located on the Parcel; (b) all easements, rights and other privileges appurtenant
to, or associated with, the Parcel; (c) any and all entitlements pertaining to the Parcel; and (d) any and all other property which by the express terms of this Agreement, is required to be conveyed, transferred or assigned to Buyer with
the Parcel. 
 3. The term “Property” shall mean the Parcel and the Associated Property included in this Agreement.

 4. The term “Declaration” shall mean the Declaration of Covenants, Easements, Restrictions and Grant of Exclusive Options
to Purchase and Lease between Motorola, Inc. and Seller dated July 31, 1999. 
 5. The term “Utilities Easements” shall
mean the easements to be reserved by Seller over and beneath a portion of the Property for location, installation, maintenance, repair, restoration and replacement of certain private utilities presently serving other real property owned by Seller.

 AGREEMENT: 
 1. Purchase and Sale. In consideration of their mutual covenants set forth in this Agreement and subject to the terms and conditions set forth in this Agreement, Seller agrees to sell to Buyer, and Buyer
agrees to purchase from Seller, the Property for the Purchase Price (as defined in Section 3(a)). 
 2. Opening and
Closing. 
 (a) Upon execution and delivery of this Agreement by Seller and Buyer, the parties will cause an escrow
(“Escrow”) to be established with Chicago Title Insurance Company (“Escrow Agent”). As used herein, the term “Effective Date” shall mean the day on which Escrow Agent receives a copy of this
Agreement executed by Seller and Buyer and Buyer’s Earnest Money (as herein defined), and has executed the Escrow Agent’s Joinder and Receipt following the signatures for Seller and Buyer in this Agreement. 
 (b) The closing of the sale and purchase of the Property (“Close of Escrow” or “Closing”) shall occur at the office of
Escrow Agent on or before the date that is thirty (30) days following expiration of the Due Diligence Period (as defined in Section 8(a)). 
 3. Purchase Price. 
 (a) The purchase price for the Property (“Purchase
Price”) shall be ELEVEN MILLION FOUR HUNDRED FIFTY THOUSAND ONE HUNDRED SEVENTY NINE AND 00/100 DOLLARS ($11,450,179.00), subject to adjustment as provided below. The Purchase Price has been calculated on the basis of Thirteen and 00/100
Dollars ($13.00) per “Net Square Foot,” as defined below. If the Survey (as defined in Section 5(b) below) discloses that the Parcel consists of more or less than 880,783 square feet, then the Purchase Price shall be increased
or reduced to equal the product obtained from multiplying the actual number of Net Square Feet by $13.00. The term “Net Square Feet” means the gross number of square feet in the Parcel less the actual dedicated perimeter street areas,
ultimate right-of-way areas required by governing municipalities, and easement areas which prohibit the use of the area encumbered by the easements for all purposes and which cannot be moved or modified so that use of the area is possible.

 (b) Upon the Effective Date, Buyer will deposit into Escrow ONE HUNDRED THOUSAND AND 00/100 DOLLARS ($100,000.00) (“Initial
Earnest Money Deposit”). 
 (c) Upon expiration of the Due Diligence Period, Buyer will deposit into Escrow an additional FIVE
HUNDRED THOUSAND AND NO/100 DOLLARS ($500,000.00) (“Additional Earnest Money Deposit”). 
 (d) The Initial Earnest Money
Deposit and the Additional Earnest Money Deposit, together with any and all interest earned thereon, are collectively referred to in this 

  

 -2- 

 
Agreement as the “Earnest Money.” Until disbursed by Escrow Agent pursuant to the terms of this Agreement, the Earnest Money shall be
deposited by Escrow Agent in an interest-bearing escrow account with a financial institution acceptable to Seller. At Closing, the Earnest Money shall be applied to the Purchase Price. 
 (e) At least one (1) business day prior to Closing, Buyer shall deposit into Escrow the balance of the Purchase Price subject to the adjustments and
prorations provided for in this Agreement. 
 (f) From and after the expiration of the Due Diligence Period, the Earnest Money shall be
deemed non-refundable. The term “non-refundable” as used in this Agreement means that Buyer shall not be entitled to the return of the Earnest Money if Buyer elects (or is deemed to have elected) to proceed with the transaction
contemplated by this Agreement, but prior to the Closing, defaults hereunder; provided, however, that any such non-refundability shall be subject to Seller’s performance of its obligations under this Agreement, the satisfaction of the
contingencies and conditions set forth in this Agreement, and any other terms of this Agreement which specifically provide for the return of the Earnest Money to Buyer. 
 4. Escrow Instructions; Indemnity of Escrow Agent. 
 (a) Delivery by Seller and Buyer to Escrow Agent
of a copy or counterpart copies of this Agreement executed by them shall constitute instructions to Escrow Agent. Escrow Agent shall be deemed to have accepted such instructions when it has executed the Escrow Agent’s Joinder and Receipt which
follow the signatures of Seller and Buyer in this Agreement. If Escrow Agent accepts such instructions, it shall insert the date of acceptance in the blank at the beginning of this Agreement, promptly notify Seller and Buyer of such date and deliver
to Seller and Buyer fully executed copies of this Agreement. If any of the provisions of this Agreement conflict with any printed form instructions given to Escrow Agent, the provisions of this Agreement shall govern and control. Without limiting
the foregoing, no provision in any printed form instructions shall excuse any performance by a party to this Agreement at the times provided in this Agreement, extend the Close of Escrow, provide a party to this Agreement with any “grace,”
“cure” or “waiting” period not set forth in this Agreement, indemnify Escrow Agent for its negligence or willful failure to perform its duties, or give Escrow Agent or any broker, agent or other person not a party to this
Agreement any rights in this Agreement, the Earnest Money or any other payments made by Buyer; and any such provision (including a provision providing for a “grace,” “cure” or “waiting” period before cancellation or
termination of this Agreement or the Escrow) shall be deemed deleted. 
 (b) If this Agreement or any matter relating to the transaction
contemplated by this Agreement shall become the subject of any litigation or controversy, each party agrees to indemnify and hold Escrow Agent harmless for, from and against any loss or expense, including reasonable attorneys’ fees, that may be
suffered by Escrow Agent by reason of such litigation or controversy, except for losses or expenses as may arise from a breach of this Agreement by Escrow Agent or another party to this Agreement or from the negligence or willful misconduct of
Escrow Agent, another party to this Agreement or their respective agents and independent contractors. 
  

 -3- 

 (c) If conflicting demands are made or notices served upon Escrow Agent with respect to this Agreement,
the parties expressly agree that Escrow Agent shall be entitled to file a suit in interpleader in the Superior Court of Maricopa, Arizona, and obtain an order from the court requiring the parties to interplead and litigate their several claims and
rights among themselves. Upon the filing of the action in interpleader, Escrow Agent shall be fully released and discharged from any obligation imposed upon it by this Agreement with respect to the conflict on account of which the interpleader
action was brought. 
 (d) The provisions of this Section 4 shall survive cancellation of this Agreement. 
 5. Title; Survey. 
 (a) As soon
as reasonably possible after the Effective Date, Escrow Agent shall deliver to Buyer a current preliminary title report covering the Property, together with readable copies of all documents of record referred to therein (the “Title
Report”). Buyer shall have thirty (30) days from and after the receipt of the Title Report (the “Title Review Period”) to satisfy itself with respect to the condition of title to the Property. If Buyer objects to any
matters contained in the Title Report, Buyer shall deliver written notice of such objection to Seller and Escrow Agent in writing of such objections (“Buyer’s Objection Letter”) not later than ten (10) days prior to the
last day of the Title Review Period. If within five (5) days following receipt of Buyer’s Objection Letter Seller fails to respond to Buyer’s Objection Letter or notifies Buyer in writing that Seller is unwilling or unable to correct
any such objections, Buyer may elect to (i) cancel this Agreement by delivering written notice of such election to Seller and to Escrow Agent prior to expiration of the Title Review Period, or (ii) waive any such objections by delivering
written notice of such election to Seller and to Escrow Agent prior to the expiration of the Title Review Period. Buyer’s failure to deliver written notice as provided in either (i) or (ii) above shall be deemed Buyer’s waiver
and approval of the condition of title, and this Agreement shall continue in full force and effect. 
 (b) Not less than forty-five
(45) days after the Effective Date, Seller, at its sole expense, shall obtain and deliver to Buyer an ALTA survey of the Property (the “Survey”). The Survey shall show (i) the perimeter boundaries of the Property
configured substantially in accordance with the area designated on the Project Plan, (ii) all easements and matters of record reflected on the Title Report that can be plotted on the Survey, and (iii) all items necessary to accurately
calculate the Net Square Feet of the Parcel as provided in Section 3(a) above. Prior to the Closing, the Survey shall be certified to Buyer, Seller, Escrow Agent and, if applicable, Buyer’s lender. Buyer shall have fifteen
(15) days from and after the receipt of the Survey (the “Survey Period”) to satisfy itself with the Survey. If Buyer objects to any matters contained on the Survey, Buyer shall deliver written notice of such objection to Seller
and Escrow Agent in writing of such objections (“Survey Objection Letter”) not later than the last day of the Survey Period. If within five (5) days following receipt of Survey Objection Letter Seller fails to respond to Survey
Objection Letter or notifies Buyer in writing that Seller is unwilling or unable to correct any such objections, Buyer may elect to (i) cancel this Agreement by delivering written notice of such election to Seller and to Escrow Agent prior to
expiration of the Survey Period, or (ii) waive any such objections by delivering written notice of such election to Seller and to Escrow Agent prior to the expiration of the Survey Period. Buyer’s failure to deliver written notice as
provided in either (i) or (ii) above shall be deemed Buyer’s waiver and approval of the Survey, and this Agreement shall continue in full force and effect. 
  

 -4- 

 6. Deed and Other Conveyance Documents. At Closing, title to the Parcel and
appurtenant real property interests shall be conveyed by Seller to Buyer by a special warranty deed (“Deed”) in form and substance identical to Schedule 6.1. Prior to Closing, Seller and Buyer shall execute and
deliver to Escrow Agent an Affidavit of Real Property Value for recording with the Deed; and Seller shall execute and deliver to Escrow Agent and Buyer an affidavit in a form and substantially identical to Schedule 6.2 and stating
that Seller is not a foreign person and that no withholding is required pursuant to Internal Revenue Code (“IRC”) §1445 (“Non-Foreign Affidavit”). 
 7. Title Insurance. At Closing, as a condition to Buyer’s obligation to proceed with Closing, Escrow Agent, in its capacity as title
insurer (“Title Insurer”) shall issue to Buyer an ALTA extended coverage owner’s policy of title insurance or unconditionally commit to issue such policy, together with any applicable Cure Endorsements (as defined below in this
Section 7), in the amount of the Purchase Price, and insuring in Buyer fee simple title to the Parcel, subject only to the Permitted Exceptions (“Title Policy”). As used herein, the term “Cure
Endorsements” means those endorsements which have been offered by Seller to cure a title objection or objections made by Buyer and were approved by Buyer in writing in its sole and absolute discretion. Seller will pay the portion of the
title insurance premium for the Title Policy which is equal to the title insurance premium for an ALTA standard owner’s policy without endorsements plus the cost of all Cure Endorsements, and Buyer will pay the remainder of the title insurance
premium for the Title Policy and the endorsements to the Title Policy. 
 8. Feasibility; Property Information; Restoration of
Property. 
 (a) Buyer (including, its employees, agents and independent contractors) shall have the right, but not the obligation, to enter
upon the Parcel and to survey, inspect and test the Property at any reasonable time on normal business days (as defined in Section 34) during the period commencing upon the Effective Date and expiring on the date that is ninety
(90) days following the Effective Date (“Due Diligence Period”) for the purpose of determining the feasibility of acquiring the Property (including without limitation, confirmation by Buyer that the Property is zoned for
Buyer’s intended development of the Property and that Buyer’s intended development of the Property is economically feasible); provided, however, that (i) Buyer will give at least one (1) business day’s notice
to Seller prior to entry upon the Property; (ii) Buyer will deliver to Seller prior to entry upon the Property a certificate of insurance insuring Seller and Buyer for general liability with coverages and amounts reasonably satisfactory to
Seller ; and (iii) Buyer will not unreasonably interfere with the possession of the Property by Seller or any of Seller’s tenants or licensees. Upon Buyer’s written notice to Seller prior to the expiration of the Due Diligence Period,
the Due Diligence Period shall be extended for a period of thirty (30) days solely to afford Buyer additional time to satisfy itself as to the environmental condition of the Property. 
 (b) Not later than five (5) business days after the Effective Date, Seller shall deliver or cause to be delivered to Buyer copies of any of the
following documents or information pertaining to the Property which Seller has not yet delivered to Buyer and Seller has 

  

 -5- 

 
in its possession as of the Effective Date: (i) survey(s) and other drawings of the Property; (ii) geotechnical reports, soils reports and a Phase
I ESA (if any); (iii) the most recent property tax bills for the Property; (iv) any information pertaining to special assessments levied against the Property; (v) a completed Property Information Sheet (A.I.R. standard form);
(vi) existing or proposed leases and service agreements pertaining to the Property (if any); (vii) all books, records and reports prepared in connection with the ownership and maintenance of the Property, including, without limitation, any
and all existing building plans and engineering reports; and (viii) any other reports, documents, studies, statements or correspondence of any kind which pertain directly or indirectly to the physical and/or economic condition of the Property,
including, without limitation, site plans, as-built plans, proforma analyses, environmental reports, traffic studies, air quality studies, noise studies and environmental impact reports (collectively, the “Property Information”).

 (c) Seller will cooperate in a reasonable manner at no expense to Seller with the professionals that conduct studies on behalf of Buyer
with respect to the Property, including any environmental studies. Buyer’s permission to conduct invasive testing of the Property shall be limited as provided in Schedule 8 attached hereto. Buyer, at Buyer’s cost, shall provide
Seller with a complete copy of all reports and studies related to the Property prepared by third parties for the benefit of Buyer. 
 (d)
Buyer may cancel this Agreement for any reason or no reason at any time prior to expiration of the Due Diligence Period by delivering written notice of its election to do so to Seller and Escrow Agent; provided, however, if Buyer fails
on or before the expiration of the Due Diligence Period to deposit the Additional Earnest Money Deposit in the Escrow, this Agreement and the Escrow shall automatically terminate without the necessity of notice to Seller, Buyer or Escrow Agent. In
the event of such termination, the Earnest Money shall be refunded to Buyer, and Seller and Buyer shall have no further obligation to one another under this Agreement except for those obligations which expressly survive cancellation of this
Agreement. If Buyer timely deposits the Additional Earnest Money Deposit into Escrow, then Buyer agrees to take title to the Property at Closing subject to those matters identified on Exhibit B attached hereto (the
“Permitted Exceptions”). 
 (e) Buyer acknowledges that any information of any type which Buyer has received or may receive
from Seller or Seller’s agents is furnished on the express condition that Buyer shall make an independent verification of the accuracy of such information, all such information being furnished without any representation or warranty whatsoever.

 (f) If this Agreement is cancelled, all of the Property Information and the Survey will be returned to Seller and Buyer shall promptly
deliver to Seller copies of all reports, studies and all other documents in its possession or control concerning the Property prepared by or at the request of Buyer in connection with the Property, except for any proprietary information of Buyer,
any internally generated reports, studies, assessments or evaluations of the Property, and any attorney-client privileged documents (collectively, “Buyer’s Studies”). 
 (g) Buyer covenants and agrees that Seller shall not be liable in any way for any liabilities, losses, costs, damages, fees, expenses or claims resulting
from the access and performance of any inspection or test under this Section 8(g). Buyer covenants and agrees to 

  

 -6- 

 
promptly reimburse Seller for the losses that may be caused by the negligent acts, or willful omissions or misconduct of Buyer, their employees, contractor,
subcontractor(s) or agents that result from the access and performance of any inspection or test performed pursuant to this Section 8(g). Promptly after the completion of any inspection or test conducted by it or on its behalf, Buyer
will fill all holes created by the inspection or testing and shall restore the Property as closely as is reasonably possible to its condition immediately prior to the time testing began. Buyer will indemnify, defend and hold Seller and its
successors and assigns harmless for, from and against any liability, cost, or expense arising from actions or inactions of Buyer or its employees, agents, contractors or designees when on the Property or from any survey, inspection or test conducted
by or on behalf of Buyer with respect to the Property, except to the extent resulting solely from the gross negligence or willful misconduct of Seller or any of its employees, agents or contractors. Buyer shall, upon request of Seller or its
successors or assigns, execute such further instruments and deliver such further documents as are necessary to confirm and enforce the indemnifications provided for herein. Buyer will maintain, and will endeavor to cause each of its agents,
contractors and designees who enters onto the Parcel to maintain, such liability insurance and error and omissions insurance as is customarily maintained by persons engaged in similar businesses and/or activities in the City. A default in the
performance of Buyer’s obligations under this Section 8(g) shall be considered a material default. Buyer’s obligations under this Section 8(g) shall survive cancellation or Closing of this Agreement. 
 (h) No later than expiration of the Due Diligence Period, Buyer will have inspected and investigated all aspects of the Property as Buyer deems necessary
or appropriate to Buyer’s complete satisfaction and will have observed the physical characteristics and existing conditions of the Property, the structural character, soundness and state of repair of any buildings and other structures or
improvements on the Property, the condition and state of repair of all equipment, fixtures, furnishings, furniture, equipment and appliances constituting part of the Property, and the operations on the Property and on adjacent areas. Except as
arising from the express warranties and representations of Seller set forth in this Agreement or in any closing document delivered by Seller, Buyer waives any and all objections to, complaints about, or claims regarding the Property and its physical
characteristics and existing conditions, including, without limitation, objections to, complaints about, or claims regarding subsurface soil and water conditions, solid and hazardous waste and hazardous substances, and endangered or protected plant
or animal species on, under or adjacent to the Property (including federal, state or common law based actions and any private right of action under state and federal law). Buyer further assumes the risk of changes in applicable laws and regulations
relating to past, present and future environmental conditions on the Property and, except as arising from the express warranties and representations of Seller, the risk that adverse physical characteristics and conditions, including, without
limitation, the presence of hazardous substances or other contaminants, may not have been revealed by its investigation. Notwithstanding the foregoing, Buyer shall have access to the Parcel after the expiration of the Due Diligence Period; provided,
that, Buyer shall comply with all of the requirements for access set forth in this Section 8 and shall not perform any further intrusive investigations of the Property without Seller’s prior written consent. 
 (i) During the Due Diligence Period, Buyer may seek certain governmental approvals for its development of the Parcel, including but not limited to tax
incentive and abatement agreements, approvals for Buyer’s preliminary plans to develop the Parcel, and any necessary changes to zoning to permit Buyer’s intended use of the Parcel (collectively, the 

  

 -7- 

 
“Governmental Approvals”). Seller shall reasonably cooperate with Buyer during the Due Diligence Period in Seller’s efforts to obtain
any Governmental Approvals; provided that Seller shall have no obligation to incur any expense in connection therewith. 
 9.
Seller’s Representations, Warranties and Additional Covenants. Seller represents, warrants and covenants to Buyer and agrees with Buyer as follows: 
 (a) The person(s) signing this Agreement and any documents and instruments in connection herewith on behalf of Seller have full power and authority to do so. Upon delivery to and execution by Buyer, this Agreement
shall be a valid and binding agreement of Seller subject to the conditions to Seller’s obligations set forth in Section 12. 
 (b) The execution, delivery and performance by Seller of this Agreement and such other documents to be executed and delivered in connection herewith by Seller do not, and shall not, result in any violation of, or conflict with, or
constitute a default under, any provisions of any agreement to which Seller or the Property is subject, or, to Seller’s knowledge, any judgment, law, writ, decree, order, injunction, rule or governmental regulation affecting Seller or the
Property. 
 (c) There are no attachments, levies, executions, assignments for the benefit of creditors, receiverships, conservatorships or
voluntary or involuntary proceedings in bankruptcy or any other debtor relief actions contemplated by Seller or filed by Seller, or, to Seller’s knowledge, pending in any current judicial or administrative proceeding against Seller. 

(d) Except for the subsurface contamination resulting from the operations of Motorola on or adjacent to the Property prior to 1999 and any other
contamination referenced in the Property Information, or in any writing provided to Buyer prior to the expiration of the Due Diligence Period, Seller has no Knowledge (as defined below) of any information, and has no reason to believe, that
(i) any Hazardous Substances, as defined in the Declaration, have been treated, stored or disposed of, or otherwise deposited in or on the Parcel, including without limitation of the generality of the foregoing, the surface waters and
subsurface waters of the Parcel that would support a claim or cause of action under any Environmental Law (as defined below), (ii) there are any substances or conditions in or on the Parcel which may support a claim or cause of action under any
Environmental Law, (iii) there are any underground storage tanks at the Parcel. “Environmental Law” shall mean any federal, state or local law, statute or rule concerning public health, safety or the environment relating to Hazardous
Materials. 
 (e) No Unpaid Liens. Upon Closing Seller shall have paid in full any and all debts and monetary obligations created by
Seller and encumbering the Parcel, whether or not recorded or specified as an encumbrance or exception to title on the Title Report. 
 (f)
No Adverse Property Claims. To Seller’s Knowledge, there are no (i) adverse claims of adjoining property owners against the Parcel (ii) adverse parties in possession of the Parcel or any part thereof or (iii) any
encroachments by Seller on the property of others or by others on the Parcel, except as may be reflected in the Title Report or reflected on the Survey. 
  

 -8- 

 (g) No Adverse Property Rights. To Seller’s Knowledge, other than rights in favor of
Freescale (as defined in Section 11 below), there are no leases, tenancies, options, rights of first refusal, licenses, or operating or other agreements applicable to or affecting the Parcel to which Seller is a party, no third party has any
right to utilize or possess the Parcel granted by Seller and, other than this Agreement, there are no agreements relating to the sale, exchange or transfer of the Parcel or any part thereof. 
 (h) No Violation of Law. Except for the “Motorola Cleanup Operations,” as defined in the Declaration, Seller has no Knowledge of any
current material violations of any laws, statutes, ordinances, regulations or other requirements of any governmental agency in connection with or related to the Parcel, including, without limitation, those pertaining to any Environmental Law and/or
any endangered species law, by any federal, state, county or municipal authorities. Notwithstanding the foregoing, the City of Phoenix has requested, from time to time, that Seller improve the landscaping and fencing located on the Parcel. Any
further request by the City of Phoenix or enforcement of such request shall not be deemed a violation of this representation and warranty. 
 (i) No Litigation. To Seller’s Knowledge, there are not any existing, pending or threatened, litigation, condemnation or similar proceedings against or involving the Parcel or any other claim, action, suit or other proceeding
threatened or pending which would materially and adversely affect Buyer’s right, title and interest in and to, or enjoyment or use of the Parcel. Notwithstanding the foregoing, the City of Phoenix has requested, from time to time, that Seller
improve the landscaping and fencing located on the Parcel. Any further request by the City of Phoenix or enforcement of such request shall not be deemed a violation of this representation and warranty. 
 (j) Pre-Closing Operations. Until the Closing, the following rights and responsibilities shall pertain: 
 (i) Seller shall not enter into or offer any lease, tenancy, license or right or act of possession concerning the Parcel without the prior written
consent of Buyer in each instance. Seller shall not enter into any other contracts, agreements or understandings, verbal or written, for the sale or transfer of any portion of the Parcel and no part of the Parcel shall be alienated or transferred.
Seller shall promptly forward to Buyer all inquiries, letters of intent, proposals or similar matters relating to future or contemplated sales, leases, build-to-suits or similar transactions with respect to the Parcel. 
 (ii) Seller shall not take any actions to alter the condition of the Parcel. If Seller shall receive a notice of violation of any law, ordinance or code
with respect to the Parcel, Seller shall notify Buyer of such notice and Seller’s proposed action with respect thereto, and, except as herein provided, Seller shall use commercially reasonable efforts correct the violation or have such notice
retracted lawfully prior to Closing. 
 (iii) Seller shall not petition any governmental authority or agency relative to the Parcel without
the prior written approval of Buyer, which approval shall not be delayed or withheld unreasonably, except that Seller, acting in good faith and protective of Buyer’s interests, may at its own cost and expense pay under protest any tax due prior
to Closing. 
  

 -9- 

 (iv) Seller shall promptly notify Buyer of any of the following occurrences: (A) Seller’s
receipt of any notice of intent to exercise with respect to the Parcel the power of eminent domain or the police power or any similar notice; (B) Seller’s receipt of notice of the institution of any proceedings for the condemnation of the
Parcel or any portion thereof; (C) any casualty or accident suffered at the Parcel; (D) Seller’s receipt of any notice of a proposal or intention to change the assessment of the Parcel for purposes of any ad valorem tax; and
(E) Seller’s receipt of any governmental notice with respect to the Parcel. 
 (v) Seller shall use commercially reasonable
efforts to prevent or terminate, as the case may be, any adverse or possessory claim or right to the Parcel or circumstance on which such claim or right can with the passage of time or otherwise be based, to begin, continue or mature, unless such
claim or right is a Permitted Exception. 
 (vi) Seller shall not modify, terminate, amend or assign any agreement or instrument which
benefits the Parcel. 
 (vii) In no event may Seller dump material, place fill, or allow waste to accumulate on the Parcel and Seller will
use commercially reasonable efforts to prevent others from doing so. 
 To the extent that any of the representations and warranties made by Seller pursuant
to this Section 9 are made to Seller’s knowledge, Buyer acknowledges and agrees that such representations and warranties are based solely on the actual (not constructive or imputed) knowledge of Thomas Kirch, the Director of Global
Facilities, Real Estate & EHS of Seller and Bob Atkinson, Director of Environmental Health and Safety of Seller, without any investigation or inquiry, and without reviewing Seller’s files or records for purpose of making these
representations. Notwithstanding any contrary provision of this Agreement, in no event shall the foregoing individual have any personal liability or obligation hereunder. 
 As to the above warranties and representations of Seller which are made to Seller’s Knowledge, if, after the Effective Date and prior to Closing, Seller obtains Knowledge (as defined above) that any of such
warranties or representations is untrue in any material and adverse respect, then Seller shall notify Buyer in writing of such discovery, and if such inaccuracy or incorrectness is not based on the affirmative act of Seller or the knowing omission
or knowing acquiescence of Seller after the Effective Date, the warranty or representation shall be deemed modified to the extent described in such notice retroactively to the Effective Date. If Seller gives notice to Buyer of such modification of
any such warranty or representation, and if such inaccuracy or incorrectness is not based on the affirmative act of Seller or the knowing omission or knowing acquiescence of Seller after the Effective Date, Buyer shall have fifteen (15) days
after receipt of such notice in turn to notify Seller in writing of Buyer’s election to terminate this Agreement and receive the Earnest Money unless the Seller and Buyer reach agreement upon the terms of the modified warranty or
representation. If no such written notice is delivered by Buyer to Seller within such ten (10)-day period, Buyer shall be deemed to have approved such modified warranty or representation. If such written notice is delivered by Buyer to Seller within
such ten 

  

 -10- 

 
(10)-day period, then Buyer and Seller shall proceed to negotiate in good faith to resolve and reach agreement upon the terms of the modified warranty or
representation. If the terms of such modified warranty or representation are not resolved within five (5) days after the date of delivery of Buyer’s notice to Seller (the “Negotiation Period”), Buyer may (as its sole
remedy) terminate this Agreement by delivering to Seller and Escrow Agent written notice of its election to do within five (5) days after the expiration of the Negotiation Period, in which event the Earnest Money shall be refunded to Buyer. If
Buyer fails to terminate the Agreement during such five (5)-day period, the warranty or representation shall be deemed modified to the extent described in Seller’s original notice and Buyer shall be deemed conclusively to have waived its
objections thereto and its right to terminate as a result of such objections. 
 The warranties and representations of Seller set forth in this
Section 9 shall survive the Closing for a period of twelve (12) months (the “Limitation Period”) and thereafter shall lapse. Buyer agrees for itself and its successors and assigns to commence any legal action for
breach of any such warranty and representation (if at all) within the Limitation Period, and Buyer for itself and successors and assigns hereby waives all rights and remedies against Seller, its successors and assigns arising out of or in connection
with any alleged breach of warranty or representation as to which a legal action has not been commenced within the Limitation Period. 
 In the event that,
prior to the Closing, Buyer receives written notice or obtains knowledge that any of the foregoing representations and warranties are untrue, Buyer shall promptly advise Seller in writing of such notice, information or knowledge. Buyer shall be
deemed to have waived such breach of representation or warranty if Buyer fails to advise Seller in writing within ten (10) days after receipt of such notice, information or knowledge pursuant to the preceding sentence and thereafter consummates
the transaction contemplated hereby, unless the inaccuracy or incorrectness is as a result of the affirmative act of Seller, its affiliates, employees, agents, contractors, subcontractors or representatives, or the knowing omission or knowing
acquiescence of Seller after the Effective Date. In the event Buyer knowingly waives any representation or warranty, then Seller shall have no liability under this Section 9 for such representation or warranty to the extent waived.

 10. Buyer’s Representations, Warranties and Covenants. Buyer hereby represents, warrants and covenants to Seller, and
agrees with Seller, as follows: 
 (a) The person(s) signing this Agreement and any documents and instruments in connection herewith on behalf
of Buyer have full power and authority to do so. Upon delivery to and execution by Seller, this Agreement shall be a valid and binding agreement of Buyer subject to the conditions to Buyer’s obligations set forth in Section 13.

 (b) The execution, delivery and performance by Buyer of this Agreement and such other instruments and documents to be executed and
delivered in connection herewith by Buyer do not, and shall not, result in any violation of, or conflict with, or constitute a default under, any provisions of any agreement to which Buyer is subject, or, to Buyer’s knowledge, any judgment,
law, writ, decree, order, injunction, rule or governmental regulation affecting Buyer. 
 (c) There are no attachments, levies, executions,
assignments for the benefit of creditors, receiverships, conservatorships or voluntary or involuntary proceedings in 

  

 -11- 

 
bankruptcy or any other debtor relief actions contemplated by Buyer or filed by or against Buyer, or to Buyer’s knowledge, pending in any current
judicial or administrative proceeding against Buyer. 
 (d) Buyer has had an opportunity to be represented by counsel in connection with this
transaction. Except for the express representations, warranties and covenants of Seller contained in this Agreement, Buyer specifically acknowledges that it is acquiring the Property in an “AS IS, WHERE IS, WITH ALL FAULTS” condition,
without any representations or warranties of Seller, express or implied, written or oral, as to the nature or condition of title to the Property, the physical condition of the Property, the uses of the Property or any limitations thereon. Buyer is
relying solely upon, and, as of the Closing, will have conducted its own analysis of the Property as it deems necessary or appropriate in so acquiring the Property from Seller (including, without limitation, an analysis of any and all matters
concerning the condition, use, sale, development or suitability for development of the Property). 
 WITHOUT LIMITING THE FOREGOING, BUYER
ACKNOWLEDGES THAT, EXCEPT AS MAY OTHERWISE BE SPECIFICALLY SET FORTH ELSEWHERE IN THIS AGREEMENT, NEITHER SELLER NOR ITS CONSULTANTS, BROKERS OR AGENTS HAVE MADE ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND UPON WHICH BUYER IS RELYING AS TO ANY
MATTERS CONCERNING THE PROPERTY, INCLUDING, BUT NOT LIMITED TO: (I) THE CONDITION OF THE LAND OR ANY IMPROVEMENTS COMPRISING THE PROPERTY; (II) THE EXISTENCE OR NON-EXISTENCE OF ANY POLLUTANT, TOXIC WASTE AND/OR ANY HAZARDOUS MATERIALS OR
SUBSTANCES; (III) ECONOMIC PROJECTIONS OR MARKET STUDIES CONCERNING THE PROPERTY, OR THE INCOME TO BE DERIVED FROM THE PROPERTY; (IV) ANY DEVELOPMENT RIGHTS, TAXES, BONDS, COVENANTS, CONDITIONS AND RESTRICTIONS AFFECTING THE PROPERTY;
(V) THE NATURE AND EXTENT OF ANY RIGHT OF WAY, LEASE, LIEN, ENCUMBRANCE, LICENSE, RESERVATION OR OTHER TITLE MATTER; (VI) WATER OR WATER RIGHTS, TOPOGRAPHY, GEOLOGY, DRAINAGE, SOIL OR SUBSOIL OF THE PROPERTY; (VII) THE UTILITIES
SERVING THE PROPERTY; (VIII) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH BUYER MAY ELECT TO CONDUCT THEREON; OR (IX) THE COMPLIANCE OF THE PROPERTY WITH ANY ZONING, ENVIRONMENTAL, BUILDING OR OTHER LAWS, RULES
OR REGULATIONS AFFECTING THE PROPERTY. SELLER MAKES NO REPRESENTATION OR WARRANTY THAT THE PROPERTY COMPLIES WITH THE AMERICANS WITH DISABILITIES ACT OR ANY FIRE CODE OR BUILDING CODE. 
 (e) Except due to violations of the express representations, warranties and covenants of Seller contained in this Agreement, Seller is released from all
responsibility and liability regarding the Property, including the development potential of the Property; the condition, valuation or utility of the Property, or its suitability for any purpose whatsoever; title and survey matters with respect to
the Property; and any responsibility or liability with respect to the presence in the soil, air, structures, and surface and subsurface waters, of hazardous substances. Buyer agrees that the matters released pursuant to this Section 10(e)
are not limited to matters which are known or disclosed. In this transaction, Buyer acknowledges that factual matters now unknown to it may have given or may hereafter give rise to causes of action, claims, 

  

 -12- 

 
demands, controversies, damages, costs, losses or expenses which are presently unknown, unanticipated and unsuspected, and Buyer further acknowledges that
the release contained in this Section has been negotiated and agreed upon in light of the foregoing. Buyer expressly waives any provision of statutory or decisional law to the effect that a general release does not extend to claims which the
releasing party does not know or suspect to exist in such party’s favor at the time of executing the release, which, if known by such party, must have materially affected such party’s settlement with the released parties. Notwithstanding
the foregoing, nothing contained herein shall prevent a third party from bringing a claim or action against Seller in the same or similar proceeding as such third party has brought against Buyer. 
 (f) The foregoing representations and warranties are true as of the date hereof and shall be true as of Closing in all material respects. The
representations, warranties and covenants of Buyer set forth in this Agreement shall survive Closing. 
 11. Environmental
Agreements. Buyer acknowledges that Freescale Semiconductor, Inc. (“Freescale”) and Seller are parties to the Declaration. Seller also is a party to that certain Environmental Indemnification Agreement entered into between
Motorola, Inc. (“Motorola”) and Seller effective July 31, 1999 (the “Motorola Indemnity Agreement”) and to that certain Environmental Indemnification Agreement between Seller and Freescale dated May 24,
2004 (the “Freescale Indemnity Agreement”). The Declaration, the Motorola Indemnity Agreement and the Freescale Indemnity Agreement are referred to collectively herein as the “Environmental Agreements.” The
Environmental Agreements set forth certain rights, obligations and liabilities of the parties thereto with respect to the environmental condition of the Parcel and impose certain restrictions, limitations and conditions on the transfer of the Parcel
and other land. Within fifteen (15) days following the Effective Date, Buyer shall provide to Freescale all information required pursuant to Section 6.3 of the Declaration in connection with the requirements of Section 6.2(a) and
Section 6.2(c) of the Declaration. Buyer simultaneously shall provide Seller with copies of all correspondence, notices, documents and other written information provided to Freescale in connection with Buyer’s obligations under this
Section. If Buyer fails to perform its obligations under this Section 11, or if Freescale disapproves sale of the Property to Buyer pursuant to Section 6.2(a) of the Declaration, this Agreement and the Escrow automatically shall
terminate, the Earnest Money shall be remitted to Buyer, and neither Seller nor Buyer shall have any further obligations to one another under this Agreement, except for those obligations which expressly survive cancellation or termination of this
Agreement. Seller shall reasonably cooperate with Buyer in Buyer’s efforts to perform its obligations under this Section 11, so long as such cooperation can be provided at no cost to Seller. 
 12. Conditions to Seller’s Obligations. 
 Closing and Seller’s obligation to consummate Closing are subject to the prior satisfaction, or waiver by Seller, of the conditions to Closing set forth in this Section 12: 
 (a) Buyer shall have performed in all material respects all of the obligations required by this Agreement to have been performed by Buyer prior to
Closing. 
 (b) All representations and warranties made in this Agreement to Seller by Buyer shall be true and correct in all material
respects as of Closing. 
  

 -13- 

 (c) Seller’s Board of Directors shall have approved this purchase and sale transaction prior to
April 1, 2007. 
 (d) Buyer shall have satisfied all conditions to the transfer of the Parcel imposed under the Environmental Agreements
including, but not limited to, entering into a separate indemnity agreement with Freescale. 
 If any of the conditions precedent to Seller’s obligation
to close have not occurred or been satisfied on or before the Closing (or in the case of (c), by April 1, 2007), Seller at its sole option may: (1) cancel this Agreement by notice delivered to Buyer and Escrow Agent on or before the
Closing, in which event Escrow Agent shall release the Earnest Money to Buyer, (2) waive such conditions precedent (other than the condition in clauses (c) and (d) which shall not be waivable) and proceed to Closing, or (3) if
the failure of a condition results from a material breach of this Agreement by Buyer, proceed under Section 16(b). If Seller cancels this Agreement because a condition identified in clause (c) or (d) was not satisfied, Buyer
shall be entitled to a refund of all Earnest Money. 
 13. Condition to Buyer’s Obligations. 
 Closing and the Buyer’s obligation to consummate Closing are subject to the prior satisfaction, or waiver by Buyer, of the conditions to Closing set
forth in this Section 13: 
 (a) Seller shall have performed in all material respects the obligations required by the terms of
this Agreement to be performed by Seller prior to Closing. 
 (b) All representations and warranties made in this Agreement to Buyer by
Seller shall be true and correct in all material respects as of Closing. 
 (c) Title Insurer has issued (or is unconditionally committed to
issue) the Title Policy satisfying in all material respects the conditions of the first sentence of Section 7. 
 (d) Buyer shall
have satisfied all conditions to the transfer of the Parcel as required by the Environmental Agreements including, but not limited to, entering into a separate indemnity agreement with Freescale. 
 (e) Written approval from Freescale of Buyer’s documentation required under Section 6.0 of the Declaration. 
 If any of the conditions precedent to Buyer’s obligation to close have not occurred or been satisfied on or before the Closing, Buyer, at its sole option may:
(1) cancel this Agreement by notice delivered to Seller and Escrow Agent on or before the Closing (2) waive such conditions precedent (other than the condition in clauses (d) and (e) which shall not be waiveable) and proceed to
Closing, or (3) if the failure of a condition results from a material breach of this Agreement by Seller, proceed under Section 16(a). 
 14. Closing Deliveries by Seller. On or before Closing, Seller will deliver to Escrow Agent the following: 
  

 -14- 

 (a) The Deed, executed by Seller and in recordable form; 
 (b) The Assignment and Assumption of Contracts, executed by Seller; 
 (c) A Non-Foreign Person Affidavit; 
 (d) A written acknowledgment of Seller’s approval of Escrow
Agent’s final settlement statement setting forth all prorations and adjustments made in accordance with the provisions of this Agreement; and 
 (e) The Utilities Easements executed by Seller, in recordable form. 
 15. Closing Deliveries by Buyer. On or before
the date that is two (2) days prior to Closing, Buyer will deposit or cause to be deposited in Escrow with Escrow Agent the following: 
 (a) The balance of the Purchase Price; 
 (b) The Assignment and Assumption of Contracts, executed by Buyer; 
 (c) An Affidavit of Real Property Value executed by Buyer; 
 (d) The Utilities Easements executed by Buyer, in recordable form; 
 (e) A written acknowledgment of the
Buyer’s approval of Escrow Agent’s final settlement statement setting forth all prorations and adjustments made in accordance with the provisions of this Agreement; and 
 (f) Such other funds, instruments or documents as may be reasonably necessary to fulfill the obligations to be performed and carried out by Buyer
pursuant to this Agreement and/or the Environmental Agreements. 
 16. Default; Remedies. 
 (a) In the event that the Closing does not occur as provided in this Agreement due to the failure of Seller to comply with any of its material obligations
under this Agreement, Buyer may (i) cancel this Agreement by notice delivered to Seller and Escrow Agent on or before the Closing, in which event the Earnest Money shall be refunded to Buyer; or (ii) Buyer may seek specific performance of
this Agreement. Either of the remedies described in (i) and (ii) of this subparagraph shall be Buyer’s sole remedy in lieu of any other remedy at law or equity, subject to the following sentence. Buyer hereby waives and covenants not
to assert any right to seek or obtain monetary damages resulting from Seller’s breach; provided that if specific performance is not available as a remedy to Buyer, Buyer may pursue an action against Seller to recover the actual damages
resulting from Seller’s pre-closing breach. Buyer expressly waives any claim against Seller for incidental, consequential or special damages; provided, however, that if Seller knowingly and willfully breaches its obligation to convey the
Property to Buyer at Closing subject only to Permitted Exceptions and Buyer is unable to obtain specific performance of this Agreement, then Buyer shall be entitled to pursue against Seller all available remedies at law or equity. 
  

 -15- 

 (b) In the event that the Closing does not occur prior to the Closing due to the failure of Buyer to
comply with any of its material obligations under this Agreement, then Seller may either waive such failure and close the Escrow or cancel this Agreement. In the event of such cancellation, Buyer shall be responsible for all of Escrow Agent’s
escrow fees, title costs, and other out of pocket expenses incurred in connection with the Escrow. Because damages for non-performance by Buyer would be difficult or impossible to ascertain in the event of any cancellation under this subparagraph,
Seller, as its sole remedy, shall retain the sum of the Earnest Money and all interest earned thereon as liquidated damages (not as a penalty), Buyer and Seller agreeing that the Earnest Money represents a reasonable estimate of the damages Seller
would suffer as a consequence of a material breach of this Agreement by Buyer. Escrow Agent shall have no right to withhold any portion of its escrow fees or title fees from the Earnest Money. 
 (c) No act, failure to act or event or circumstance which might be deemed to be a default by either party shall be deemed to be a default under any of
the provisions of this Agreement unless and until notice thereof is first given by the non-defaulting party to the party alleged to be in default and said party fails to cure the alleged default within five (5) business days thereafter.

 17. Prorations; Closing Expenses. 
 (a) Real property taxes and assessments applicable to the Property for the year in which the Closing occurs shall be prorated by the Escrow Agent as of the actual date of Closing. Notwithstanding the foregoing, any
taxes or assessments paid at Closing shall be prorated based upon the most recent tax bill or most recent assessment. Any apportionment of real estate taxes to be made with respect to a tax year for which the tax rate or assessed valuation, or both,
have not yet been fixed shall be based upon the tax rate and/or assessed valuation last fixed. All tax prorations shall be adjusted between Seller and Buyer outside of Escrow after the Closing in order to effect a proration based upon actual taxes
levied. In the event the tax bill for the Property includes other adjoining real property owned by Seller and does not assess the Property as a separate tax parcel, Seller and Buyer shall cooperate to obtain a division by the appropriate
governmental officials of the taxes and assessments against the Property and the adjoining real property as soon as possible after the Closing. Until the Property is established by the County Assessor as a separate tax parcel or separate tax
parcels, all real estate taxes in respect of the Property shall be prorated based on an allocation of the parties’ respective percentage ownership ratio (determined on a gross acreage basis) of the applicable tax parcel(s) within which all or
any portion of the Property is included; provided, however, 100% of taxes allocable to improvements shall be allocated solely to the property on which the improvements are located. 
 (b) All rents and other payments made pursuant to the Lease which are attributable to the month in which the Closing occurs shall be prorated to the date
of Closing. 
 (c) All utilities (including, without limitation, oil, gas, electricity, water, telephone, cable television, sewer, refuse
collection and other utilities), and other operating expenses of the Property, not separately billed by the provider or metered to a tenant or occupant, shall be prorated based on actual meter readings by the utility company (if metered), on the

  

 -16- 

 
monthly or bimonthly statement most recently received by Seller (if charged on a flat-rate monthly or bimonthly basis) or in accordance with standard escrow
custom and practice, if not metered or charged on a flat-rate basis. Any refundable utility deposits shall be transferred to Buyer and credited to Seller and debited to Buyer on the Escrow Agent’s settlement statement. Fees under service or
maintenance contracts to be continued by Buyer, if any, shall be prorated as of the date on which the Close of Escrow occurs. 
 (d) All
prorations shall be made in accordance with custom and practice in Maricopa County, except as otherwise expressly provided herein. All items attributable to the period up to the date on which the Close of Escrow occurs shall be debited or credited
to Seller as appropriate. All items attributable to the period on and after the date on which the Close of Escrow occurs shall be debited or credited to Buyer, as appropriate. All prorations shall be considered final as of the Closing. 

(e) Escrow fees and recording fees shall be paid one-half by Seller and one-half by Buyer. Other Closing costs shall be allocated by Escrow Agent in
the customary manner for similar real estate transactions in Maricopa County, Arizona. 
 18. Notices. Any and all notices
required or permitted hereunder shall be given in writing and hand delivered (which may be by mail or other courier), or sent by certified or registered mail within the continental United States, postage prepaid, return receipt requested, addressed
as follows: 
  

							
	 To Buyer:
	 	Ridge Property Trust	 		 	
		 	8430 West Bryn Mawr Avenue, Suite 400	 	
		 	Chicago, Illinois 60631	 		 	
		 	Attn: William J. Peltin, Esq.	 	
		 	wpeltin@rptrust.com	 		 	
				
		 	With copies to:	 		 	
				
		 	Bryan Cave LLP	 		 	
		 	2 North Central Avenue, Suite 2200	 	
		 	Phoenix, Arizona 85004	 		 	
		 	Attn: Lars O. Lagerman, Esq.	 	
		 	lolagerman@bryancave.com	 		 	
			
	 To Seller:
	 	Semiconductor Components Industries, LLC	 	
		 	5005 East McDowell Road	 		 	
		 	MD C370	 		 	
		 	Phoenix, Arizona 85008	 		 	
		 	Attn: Thomas Kirch	 		 	
		 	t.kirch@onsemi.com	 		 	

  

 -17- 

							
	 With a copy to:
	 	Quarles & Brady LLP	 		 	
		 	Renaissance One	 		 	
		 	Two North Central Avenue	 	
		 	Phoenix, Arizona 85004-2391	 	
		 	Attn: Scott Berg, Esq.	 		 	
		 	sberg@quarles.com	 		 	
			
	 To Escrow Agent:
	 	Chicago Title Insurance Company	 	
		 	2415 East Camelback Road, Suite 100	 	
		 	Phoenix, Arizona 85016	 		 	
		 	Attn: DeWayne Huffman	 		 	

 or at any other address designated in a notice given by the party seeking to change its address for notice
purposes to the party sought to be charged with the effect thereof. Any notice or communication shall be deemed to have been given on the earliest of the following dates: (a) the date of delivery; (b) the date three (3) days after
being deposited in the United States mail if sent by mail. Copies of all notices or communications to Buyer or Seller shall be hand delivered, in the manner set forth above, to Escrow Agent; and copies of all notices by Buyer or Seller to Escrow
Agent shall be hand delivered or mailed, in the manner set forth above, to the other party hereto. 
 19. Attorneys’ Fees.
In the event of any breach or default by a party to this Agreement, the non-defaulting party shall be entitled to receive from the defaulting party, in addition to all other relief to which such party shall be entitled, all costs and expenses,
including reasonable attorneys’ fees, incurred by the non-defaulting party. 
 20. Possession. Upon Closing, Buyer shall
be entitled to possession of the Property in the condition as it existed on the Effective Date but subject to the Permitted Exceptions and Seller’s warranties in the Deed. 
 21. Assignment; Binding Effect. Without the prior written consent of Seller, Buyer shall not have the right to assign any of its rights or
obligations under this Agreement. Notwithstanding the foregoing, Buyer may assign its rights and obligations under this Agreement to an entity in which Buyer has an economic interest and controls the management thereof; provided, that, such entity
is approved by Freescale pursuant to the terms of the Declaration and is not a competitor of Seller (i.e., a semi-conductor manufacturer or distributor). This Agreement shall be binding upon and shall inure to the benefit of the parties to this
Agreement and their respective legal representatives, successors and assigns. 
 22. Further Instruments and Documents. Each of
Seller and Buyer will, promptly upon the request of the other of them or Escrow Agent, deliver to the requesting party or, if appropriate, Escrow Agent any and all further instruments and assurances reasonably requested or otherwise necessary to
carry out the intent of this Agreement. 
 23. Construction. Each of Seller and Buyer agrees that it has reviewed this
Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply to the interpretation of this Agreement. 
  

 -18- 

 24. Severability and Waiver. The invalidity or unenforceability of any provision hereof
shall in no way affect the validity or enforceability of any other provision hereof. Any waivers must be in writing and signed by the party sought to be charged with the effect of the waiver. The waiver by any party of a right provided hereunder
shall not be deemed to be a continuing waiver of that right or a waiver of any other right. 
 25. Risk of Loss. Until Closing,
Seller will bear all risk of loss resulting from a Material Taking (as defined below) of the Property. Should more than ten percent (10%) of the Parcel be taken by eminent domain proceedings, or should any governmental authority issue written
notice of any taking or proposed taking of more than ten percent (10%) of the Parcel, prior to Closing, it shall be considered a “Material Taking”. Otherwise, except as otherwise expressly provided in this Agreement, Buyer will
bear all risk of loss resulting from damage to or condemnation of portions of the Property and no damage to, or non-Material Taking of, the Property will permit to Buyer terminate this Agreement. If a condemnation of or any material casualty to any
portion of the Property occurs prior to Closing, Seller will give prompt notice of such occurrence to Buyer after Seller acquires knowledge of it. Prior to Closing, but no later than thirty (30) days after receipt of such notice, Buyer may
elect to terminate this Agreement by giving notice of its election to Seller and Escrow Agent if the occurrence involves a Material Taking; and if Buyer makes such election, this Agreement shall automatically terminate, the Earnest Money shall be
remitted and retained as provided in Section 3(f); and neither Seller nor Buyer shall have any further obligations to one another under this Agreement or does not have the right to terminate this Agreement on account of a condemnation or
casualty, except for those obligations which expressly survive termination of this Agreement. If Buyer does not elect to terminate this Agreement in accordance with this Section 25 or if the taking is not a Material Taking, Buyer shall be
entitled to receive at Closing a credit against the Purchase Price for the proceeds received by Seller as a result of such loss or damage or, if such proceeds will or may be received in the future, an assignment at Closing of the right to receive
such future proceeds. If this Agreement has not been terminated, Seller will not settle any casualty or condemnation claim with respect to any portion of the Property without the consent of Buyer, not to be unreasonably withheld, conditioned or
delayed. 
 26. Gender. The use of the masculine, feminine or neuter shall be deemed to include the others when the sense
requires, and the use of the singular or plural shall be deemed to include the other when the sense requires. 
 27. Headings.
This Agreement shall be construed as a whole and in accordance with its fair meaning. The descriptive headings of the Sections of this Agreement have been inserted for convenience only and not to control or affect the meaning or construction of any
provision of this Agreement. 
 28. Counterparts. This Agreement may be executed in any number of counterparts, and when a
counterpart hereof has been executed and delivered by Buyer and Seller, this Agreement shall be deemed binding upon the parties hereto. This Agreement may be executed in and delivered by facsimile with originals to follow by mail or hand-delivery.

  

 -19- 

 29. Applicable Law. This Agreement shall be governed by and interpreted in accordance with
the laws of the State of Arizona. Each party consents to the jurisdiction of the state and federal courts in Maricopa County, Arizona. 
 30. Brokerage Commission. Seller represents and warrants to Buyer that it has not employed any broker or finder or agreed to pay anyone a fee, commission or other compensation in connection with the transaction contemplated by
this Agreement except to Colliers International (“Seller’s Broker”). Buyer represents and warrants to Seller that it has not employed any broker or finder or agreed to pay anyone a fee, commission or other compensation in
connection with the transaction contemplated by this Agreement except to Real Estate Advisory Group, LLC (“Buyer’s Broker”). If and only if the transaction contemplated by this Agreement is consummated, then upon Closing,
Seller shall pay a commission equal to six percent (6%) of the Purchase Price (“Commission”), which Commission shall be split equally between Seller’s Broker and Buyer’s Broker. Seller will indemnify, defend and hold
Buyer harmless from all liability and expense, including reasonable attorneys’ fees, arising from any claim by Seller’s Broker and any other broker, agent or finder for commissions, finder’s fees or similar charges because of any act
of Seller. Buyer will indemnify, defend and hold Seller harmless from all liability and expense, including reasonable attorneys’ fees, arising from any claim by Buyer’s Broker (except for any claim by Buyer’s Broker for Buyer’s
Broker’s share of the Commission) and any other broker, agent or finder for commissions, finder’s fees or similar charges because of any act of Buyer. Notwithstanding any provision herein to the contrary, the obligations of Seller and
Buyer pursuant to this Section 30 shall survive Closing and any termination of this Agreement. 
 31. IRS Real Estate Sales
Reporting. Buyer and Seller hereby appoint Escrow Agent as, and Escrow Agent agrees to act as, “the person responsible for closing” the transactions which are the subject of this Agreement, pursuant to IRC §6045(e).
Escrow Agent will prepare and file the informational return (IRS Form 1099-S) required by and otherwise comply with the terms of IRC §6045(e). Escrow Agent further agrees to indemnify and hold Buyer, Seller and their respective attorneys
harmless from and against all claims, costs, liabilities, penalties or expenses resulting from Escrow Agent’s failure to file the appropriate reports and otherwise comply with the terms of the IRC pursuant to this Section 31.

 32. Integrated Agreement. This Agreement supersedes all previous agreements or discussions between the parties concerning
the sale of the Property, constitutes an integrated and complete statement of the Agreement, and may only be amended by a written amendment executed by both parties. 
 33. Time for Performance. If any time period set forth in this Agreement expires on a day which is not a business day, the time for performance shall be extended to the next day which is a business day.
As used in this Agreement, the term “business day” means any day other than a Saturday, a Sunday, a national holiday, a legal holiday in the State of Arizona or another day on which Escrow Agent is closed for normal business; but
other references to “days” mean calendar days. 
 34. Time of Essence. Time is of the essence with respect to the
performance by each party of each of its respective obligations under this Agreement. 
  

 -20- 

 35. 1031 Exchange. The parties agree to cooperate with one another if either desires to
effect an IRC §1031 tax deferred exchange, provided that: (a) effecting such exchange will not cause any delay in the Closing hereunder or any loss or impairment of any right, benefit or remedy of the other party under this Agreement;
(b) all documentation related to the exchange shall be reasonably satisfactory to the other party in form and content; (c) the other party shall incur no additional cost, expense or liability by reason of the exchange or its participation
therein; (d) neither party shall be required to take an assignment of the purchase agreement for relinquished or replacement property or be required to acquire or hold title to any real property for purposes of consummating an exchange desired
by the other party; (e) upon the earlier of Closing or ten (10) days after demand, the exchanging party shall pay any additional costs that would not otherwise have been incurred by the non-exchanging party had the exchanging party not
consummated the transaction through an exchange; and (f) the other party makes no representation or warranty as to the tax effect of the exchange or the transaction which is the subject of this Agreement. 
 36. Confidentiality. Prior to Closing and in the event of the termination of this Agreement for any reason, except as might be required by
applicable law or the order of a court of applicable jurisdiction, the parties and their agents shall keep the existence and the terms of this Agreement confidential other than from the parties’ legal, tax and financial advisors; partners and
members; and their lenders and investors. 
 37. Pre-Closing Walkthrough. Within three (3) days prior to Closing, Buyer
shall be entitled to a final walkthrough (“Walkthrough”) of the Property to (i) inspect any changes in the physical or environmental condition of the Property since the end of the Due Diligence Period, (ii) verify that no
tenants or unauthorized persons remain in or at the Parcel, and (iii) assess any personal property or fixtures remaining at the Parcel (any such changes shall be hereinafter referred to as a “Defect”). Seller shall remedy any
Defect in the condition of the Parcel that have occurred since the end of the Due Diligence Period that are identified by Seller during the Walkthrough, and that were not caused by Buyer, to the satisfaction of Buyer prior to Closing. 
 [SIGNATURE PAGE FOLLOWS] 
  

 -21- 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement to be effective as of the date first
appearing above. 
  

							
	BUYER:	 		 	
	
	 RIDGE PROPERTY SERVICES II, LLC, a
 Delaware
limited liability company

							
	By:	 	 RIDGE PROPERTY TRUST II, LLC, a
 Delaware
limited liability company

		 	By:	 	 RIDGE PROPERTY TRUST II,
 a Maryland real
estate investment
 trust

				
		 		 	By:	 	 /s/ WILLIAM J. PELTIN

		 		 	Print/Type Name: William J. Peltin
		 		 	Title: Executive Vice President and General Counsel

  

			
	
	SELLER:
	
	 SEMICONDUCTOR COMPONENTS
 INDUSTRIES, LLC, a
Delaware limited liability
 company

		
	By:	 	 /s/ KEITH D. JACKSON

	Print/Type Name:  Keith D. Jackson
	Title:  Chief Executive Officer

  

 -22- 

 ESCROW AGENT JOINDER AND RECEIPT 
 A fully executed counterpart of this Agreement was received by Escrow Agent on the          day of
            , 2007 Escrow Agent hereby executes this Agreement for the purposes of: (i) acknowledging its receipt of a counterpart or counterparts of this Agreement fully
executed by Buyer and Seller, (ii) evidencing its agreement to hold and dispose of the Earnest Money in strict accordance with the terms of this Agreement, and (iii) evidencing its agreement to the terms of this Agreement which apply to
it. Escrow Agent’s consent shall not be required to amend any provision or term of this Agreement; provided, however, that Escrow Agent shall not be bound by any amendment to this Agreement which it has not accepted to the extent
such amendment changes the obligations of Escrow Agent under this Agreement or purports to decrease the rights or remedies of Escrow Agent under this Agreement. 
  

			
	ESCROW AGENT:
	
	CHICAGO TITLE INSURANCE COMPANY
		
	By:	 	                                      
                                        
                 
	Name:	 	                                      
                                        
                 
	Title:	 	                                      
                                        
                 
	Date:	 	                        , 2007

  

 -23- 

 EXHIBIT A 
 LEGAL DESCRIPTION OF PARCEL 
 [TO BE ATTACHED DURING TITLE REVIEW PERIOD] 

 EXHIBIT A-1 
 MAP OF PARCEL 
 [TO BE ATTACHED DURING TITLE REVIEW PERIOD] 

 EXHIBIT B 
 PERMITTED EXCEPTIONS 
 1. Water rights, claims or title to water, whether or not shown by the
public record. 
 2. Non-delinquent real estate taxes. 
 3. All title and Survey matters approved or deemed approved by Buyer pursuant to Section 5 of this Agreement. 
 4. Subject to Buyer’s approval during the Due Diligence Period, any parcel map, subdivision map and all related documents that must be recorded against the Property in order to comply with applicable subdivision
laws. 
 5. Any title exceptions created by any act or omission of Buyer or its representatives, agents, employees or contractors.

 6. The Environmental Agreements. 
 7. Any further title exceptions contemplated by this Agreement and/or otherwise approved by Buyer. 
 8. The printed exceptions and
exclusions contained in the Title Policy as approved by Buyer during the Title Review Period. 
 9. The Utilities Easement. 

 SCHEDULE 6.1 
 SPECIAL WARRANTY DEED FORM 
 When Recorded, Return To: 
  

	
	  

	  

	  

	  

  

 SPECIAL WARRANTY DEED 
 FOR TEN DOLLARS and other valuable consideration, SEMICONDUCTOR
COMPONENTS INDUSTRIES, LLC, a Delaware limited liability company (“Grantor”), does hereby grant, sell and convey to
                     (“Grantee”), all of Grantor’s Surface Rights (as defined below) in the following described land
situated in Maricopa County, Arizona, together with all rights and privileges appurtenant thereto: 
 See Exhibit A
attached hereto and by reference incorporated herein (“Property”), 
 together with Grantor’s interest in all improvements and
fixtures, if any, located on the Property; all easements, rights and privileges appurtenant to, or associated with the Property, including, without limitation, water, well, mineral, oil and gas rights, air rights, development rights, reversions,
remainders, rights of Seller to any adjoining strips or gores of property, and any land lying within the bed of any adjoining street, highway or waterway. 
 SUBJECT ONLY TO those matters set forth in Schedule “B” hereto. 
 Grantor hereby warrants
title to the Property against all acts of Grantor and no other, subject only to the matters set forth above. 
 The term “Surface Rights”
shall have the meaning ascribed to such term in that certain Declaration of Covenants, Easements, Restrictions and Grant of Exclusive Options to Purchase and Lease recorded at Document No.
                    , Official Records of Maricopa County, Arizona. 
  

 1 

 Dated to be effective as of
            , 2007. 
  

			
	GRANTOR:
	
	SEMICONDUCTOR COMPONENTS
INDUSTRIES, LLC, a Delaware limited liability
company
		
	By:	 	  

	Print/Type Name:  
                                        
                         
	Title:                                     
                                        
               
		
	By:	 	  

	Print/Type Name:  
                                        
                         
	Title:                                     
                                        
               

  

 -2- 

					
	STATE OF ARIZONA	 	)	 	
		 	)	 	SS.
	County of Maricopa	 	)	 	

 The foregoing instrument was acknowledged before me this
         day of             , 2007, by
                    , a member of SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC, a Delaware limited liability company, on behalf of such limited
liability company. 
  

	
	  
 Notary Public

  

	
	 My commission expires:
  

  

					
	STATE OF ARIZONA	 	)	 	
		 	)	 	SS.
	County of Maricopa	 	)	 	

 The foregoing instrument was acknowledged before me this
         day of             , 2007, by
                    , a member of SEMICONDUCTOR COMPONENTS INDUSTRIES, LLC, a Delaware limited liability company, on behalf of such limited
liability company. 
  

	
	  
 Notary Public

  

	
	 My commission expires:
  

  

 -3- 

 EXHIBIT A TO SPECIAL WARRANTY DEED 
 LEGAL DESCRIPTION OF PARCEL 
 [TO BE ATTACHED] 

 EXHIBIT B TO SPECIAL WARRANTY DEED 
 PERMITTED EXCEPTIONS 
 [TO BE ATTACHED] 
  

 -2- 

 SCHEDULE 6.4 
 AFFIDAVIT OF PROPERTY VALUE 

 SCHEDULE 8 
 HAZARDOUS MATERIALS TESTING PROCEDURES 
 In order to determine the existence or presence of any
hazardous materials in or about the Property, Buyer will have the right during the Due Diligence Period, at Buyer’s sole cost and expense, to conduct additional physical tests, studies, evaluations, audits or surveys on the Property
(collectively, “Buyer Environmental Surveys”), subject to the following terms and conditions: 
 A. Buyer will have the right to
retain a qualified engineer or consultant (“Consultant”) selected by Buyer or Buyer’s lender to conduct the Buyer Environmental Surveys and due diligence on the Property. Tests will be conducted in accordance with applicable EPA
requirements or the American Society for Testing and Materials (ASTM) Standards. 
 B. Seller will have the right (but not the obligation) to
approve, review and monitor any and all invasive physical tests and to review and provide input on, studies, evaluations and audits (collectively, the “Studies”) in or about the Property that are made or implemented in connection with any
Buyer Environmental Surveys, including, without limitation, the review and approval of the number, type, extent and location of any test or monitoring wells or drillings; provided, that, Seller agrees to keep the contents of the Studies confidential
from third parties other than from Seller’s legal, environmental and financial advisors and its lenders and investors; provided, that, such confidentiality obligation shall not apply if Seller is required to disclose the contents of the Studies
in order to comply with the requirements of law, governmental regulation or court order. The foregoing confidentiality obligation shall survive the Closing. 
 C. Buyer and Buyer’s Consultant must not make any contacts or communications to any governmental agency, department, district or board in connection with the findings of any Buyer Environmental Surveys without
the prior written approval of Seller. Seller’s approval of disclosures may be given or withheld in Seller’s sole and absolute discretion. 
 D. Prior to the issuance of any final report by any Consultant that will set forth any recommendations relating to the removal, monitoring, cleanup or containment of any hazardous materials, Seller will be given the opportunity to make
comments, ask questions and offer recommendations to the Consultant preparing the Buyer Environmental Surveys. 
 E. Except as otherwise
specified herein, any approvals required of Seller under these Hazardous Materials Testing Procedures will not be unreasonably withheld by Seller and will be provided on a reasonably timely basis. 
 F. All references in these Hazardous Materials Testing Procedures or in the Agreement to environmental matters will be interpreted in accordance with the
Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process, prepared by the American Society for Testing and Materials, Designation E-1527-05, as amended.

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