Document:

Purchase and Sale Agreement and Joint Escrow Instructions

 Exhibit 10.32 
 PURCHASE AND SALE AGREEMENT 
 AND JOINT ESCROW INSTRUCTIONS 
 This Purchase and Sale Agreement and Joint Escrow Instructions (the “Agreement”) is made as of October 23, 2008 (the
“Effective Date”) by and between Electronics For Imaging, Inc., a Delaware corporation (“Seller”), and Gilead Sciences, Inc., a Delaware corporation (“Buyer”), in the following
factual context: 
 A. Seller is the owner of certain real property consisting of approximately 35 acres of land improved by two buildings
known as 301 and 303 Velocity Way, in the City of Foster City (the “City”), San Mateo County (the “County”), California 94404 (APN 94-122-050, 060, 070, 080, 110, 120, 130, 140 and 150 and Parcel A as
shown on Map of Tract No. 92-83) (“Seller’s Property”), all as more particularly described in Exhibit A-1 and as shown on the assessor’s parcel map attached as Exhibit A-2.

 B. Seller’s Property is entitled for development of a total five (5) buildings consisting of up to 1,000,000 square feet of
office, R&D, light assembly and ancillary facilities, as well as a parking structure, as set forth in the Vintage Park General Development Plan (“General Development Plan”) and as described in a Development Agreement
dated July 10, 1997 between CalCap, LLC, a California limited liability company (“CalCap”), the City and the Estero Municipal Improvement District (the “District”), and recorded in the Official
Records of the County (the “Official Records”) on August 14, 1997 as Document Nos. 97-099348 and 97-099349, as assigned by CalCap to Seller by an Assignment and Assumption Agreement dated August 14, 1997 and
recorded in the Official Records as Document No. 97-108156, and amended by a First Amendment to Development Agreement dated July 17, 2000 (as assigned and amended, the “Development Agreement”). Seller has
constructed two buildings on Seller’s Property: “Building A” consisting of approximately 295,000 gross square feet and “Building B” consisting of approximately 163,000 gross square feet. The
remaining 542,000 square feet of buildings and the parking structure approved per the General Development Plan have not been built. 
 C. The
City has approved Specific Development Plans/Use Permits for buildings known as “Building C” consisting of approximately 163,000 gross square feet (per Specific Development Plan/Use Permit 97-001a approved by Planning Commission Reso. No.
P-35-97, as amended by Reso. No. P-30-00), “Building “D” consisting of approximately 172,000 gross square feet (per Specific Development Plan/Use Permit 97-015, approved by Planning Commission Reso. No. P-01-98) and a parking
structure (per Specific Development Plan/Use Permit 00-004 (approved by Planning Commission Reso. No. P-32-00). 
 D. Seller desires to sell,
and Buyer desires to purchase, a portion of Seller’s Property, on the terms and conditions set forth herein. 

 NOW, THEREFORE, in consideration of the sum of One Hundred Dollars paid by Buyer to Seller, the covenants
contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency are hereby acknowledged, Seller and Buyer agree as follows: 
 Section 1. AGREEMENT OF SALE 
 Subject to and on the terms and conditions of this Agreement, Seller shall sell to Buyer and
Buyer shall purchase from Seller all of the following assets (collectively, the “Property”): 
 1.1
Land. The portion of Seller’s Property consisting of approximately 30 acres of land (APN 94-122-050, 060, 070, 080, 110, 120, 130 and 150 and Parcel A as shown on Map of Tract No. 92-83), all as more particularly described in
Exhibit A-3, together with (a) all privileges, rights, easements and appurtenances belonging to the real property, including, without limitation, all minerals, oil, gas and other hydrocarbon substances on and under the real
property; (b) all development rights, air rights, air credits, water, water rights and water stock relating to the real property; and (c) all right, title and interest of Seller in and to any streets, alleys, passages, common areas, other
easements and other rights-of-way or appurtenances included in, adjacent to or used in connection with such real property (collectively, the “Land”); 
 1.2 Improvements. Any and all buildings, structures, systems, facilities, fixtures, fences and parking areas located on the Land, and any
and all machinery, equipment, apparatus and appliances (not owned by tenants) used in connection with the operation or occupancy of the Land, including without limitation the office building containing approximately 163,000 square feet of gross
building area commonly known as 301 Velocity Way (commonly known as “Building B”), Foster City, California 94404 (collectively, the “Improvements”); 
 1.3 Personal Property. All of Seller’s right, title and interest in and to any equipment, furniture and other tangible personal
property (not owned by tenants) located within and used in connection with the operation or occupancy of the Land and Improvements (collectively, the “Personal Property”), but excluding the personal property listed on
Exhibit B (the “Excluded Personal Property”). Before the expiration of the Due Diligence Period, the parties shall agree on the manner of Seller’s removal of the Excluded Personal Property. Personal
Property shall include, without limitation, all workstations, chairs, tables, whiteboards, case work, cabling, fitness room equipment and day care center furniture and equipment; 
 1.4 Leases. All of Seller’s right, title and interest in and to all of the leases, licenses and other occupancy agreements with
tenants of the Property which are listed on Exhibit C (the “Leases”), together with all rental deposits, security deposits and other deposits given by tenants to secure their performance under the Leases;

 1.5 Contracts. All of Seller’s right, title and interest in and to any of the contracts and agreements which are listed on
Exhibit D that Buyer elects to assume by so stating in the Approval Notice (as defined in Section 3.2 below); and 
 1.6 Other Assets. All of Seller’s right, title and interest in and to all tangible and intangible assets of any nature relating exclusively to the Land, the Improvements and/or the Personal Property, including without
limitation (a) all warranties upon the Improvements or Personal Property, to the extent such warranties are assignable; (b) copies of all plans, specifications, engineering drawings and prints in Seller’s possession or control
relating to the construction of the Improvements; and (c) all other intellectual or intangible property used by Seller in connection with the Land, the Improvements and/or the Personal Property (collectively, the “Other
Assets”). 
  

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 1.7 Retained Property. Seller shall retain ownership of the land and an office building
consisting of approximately 295,000 square feet of gross building area (“Building A”) and other related improvements known as 303 Velocity Way, Foster City, California (APN 94-122-140) together with (a) all privileges,
rights, easements and appurtenances belonging to the real property, including, without limitation, all minerals, oil, gas and other hydrocarbon substances on and under the real property; (b) all development rights, air rights, air credits,
water, water rights and water stock relating to the real property; and (c) all right, title and interest of Seller in and to any easements and other rights-of-way or appurtenances included in, adjacent to or used in connection with such real
property (the “Retained Property”). Building A and Building B are currently connected by a skywalk, which Buyer may elect, in its sole discretion, to be included in the Property being sold to Buyer. Buyer will give notice of its
election to acquire the skywalk on or before the end of the Due Diligence Period (as defined in Section 3.1.1). 
 Section 2. PURCHASE PRICE 

 2.1 Amount. The purchase price for the Property (the “Purchase Price”) shall be One Hundred
Thirty-Seven Million Five Hundred Thousand Dollars ($137,500,000). 
 2.2 Payment. Buyer shall pay the Purchase Price to Seller
as follows: 
 2.2.1 Deposit. Within two (2) business days after the Effective Date, and as a condition precedent to the
effectiveness of this Agreement, Buyer shall deposit in escrow (“Escrow”) with the Title Company (as defined in Section 3.3) the sum of Five Million Dollars ($5,000,000) in immediately available funds (the
“Initial Deposit”). Within two (2) business days following expiration of the Due Diligence Period, if Buyer has not elected to terminate this Agreement in accordance with Section 3.2 and if Buyer has given Seller
the Approval Notice, Buyer shall deposit with the Title Company the additional sum of Five Million Dollars ($5,000,000) in immediately available funds (the “Additional Deposit”). The Initial Deposit and any interest accrued
thereon and the Additional Deposit and any interest accrued thereon are referred to in this Agreement as the “Deposit”. The Title Company shall place the Deposit in an interest-bearing account with either Bank of America,
N.A. or Wells Fargo Bank, N.A. or other financial institution acceptable to Buyer and Seller. 
 2.2.2 Application of Deposit.
If the sale of the Property pursuant to this Agreement is consummated, the Deposit and all accrued interest shall be credited against the Purchase Price. If the sale of the Property pursuant to this Agreement is not consummated as a result of
(i) a default by Seller, (ii) termination of this Agreement pursuant to Section 3.2 or Section 3.4, or (iii) failure of an express condition for the benefit of Buyer, the Deposit shall be returned to Buyer. 
 2.2.3 Payment of Balance. On or before the Closing Date (as defined in Section 9.1), Buyer shall pay the balance of the Purchase Price
by electronic transfer of immediately available funds into escrow. 
 2.2.4 Allocation of Purchase Price. Buyer and Seller
shall use reasonable good faith efforts to agree, prior to expiration of the Due Diligence Period, upon the allocation of the Purchase Price paid for the Property in accordance with Section 1060 of the Internal Revenue Code of 1986 (as amended)
(“Code”). 
 2.2.5 Liquidated Damages. IN THE EVENT THE SALE OF THE PROPERTY TO BUYER IS NOT CONSUMMATED AS A
RESULT OF BUYER’S MATERIAL DEFAULT (HEREAFTER DEFINED IN SECTION 11.1 BELOW) IN PERFORMANCE OF ITS 

  

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OBLIGATION TO PURCHASE THE PROPERTY, SELLER MAY TERMINATE THIS AGREEMENT AND RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES IN ACCORDANCE WITH SECTION 11.4. BUYER
AND SELLER ACKNOWLEDGE AND AGREE THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT OF BUYER’S BREACH OF ITS OBLIGATION TO PURCHASE THE PROPERTY WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, IN THE EVENT OF BUYER’S
MATERIAL BREACH OF ITS OBLIGATION TO PURCHASE THE PROPERTY, THE PARTIES HAVE AGREED, AFTER NEGOTIATION, THAT THE DEPOSIT SHALL CONSTITUTE SELLER’S SOLE AND EXCLUSIVE RIGHT TO DAMAGES AND THAT THIS SUM REPRESENTS A REASONABLE ESTIMATE OF THE
ACTUAL DAMAGES SELLER WOULD INCUR AS A RESULT OF BUYER’S DEFAULT IN THE PERFORMANCE OF ITS OBLIGATION TO PURCHASE THE PROPERTY. THE FOREGOING SHALL NOT LIMIT SELLER’S RIGHT TO RECOVERY UNDER ANY INDEMNITY BY BUYER IN CONNECTION WITH THIS
AGREEMENT OR RECOVERY OF ANY ATTORNEYS FEES UNDER SECTION 13.8. SELLER WAIVES ANY RIGHT TO SPECIFIC PERFORMANCE OR DAMAGES OTHER THAN AS SET FORTH IN THIS SECTION 2.2.5. BY INITIALING IN THE SPACES WHICH FOLLOW, SELLER AND BUYER SPECIFICALLY AND
EXPRESSLY AGREE TO ABIDE BY THE TERMS AND PROVISIONS OF THIS SECTION 2.2.5 GOVERNING LIQUIDATED DAMAGES. 
  

									
					
	Seller	 	( /s/ John Ritchie )	 		 	Buyer	 	( /s/ John Milligan )
		 	Chief Financial Officer	 		 		 	President & Chief Operating Officer

 Section 3. DUE DILIGENCE 
 3.1 Due Diligence Period; Inspection and Access. 
 3.1.1 Due Diligence Period. The
“Due Diligence Period” shall mean the period beginning on the Effective Date and ending at 5:00 p.m. Pacific Time on December 12, 2008. 
 3.1.2 Due Diligence Investigation. During the Due Diligence Period, Buyer shall have the right to conduct at its sole cost and expense such investigations, studies, surveys, analyses and tests of the
Property as it shall in its sole discretion determine are necessary or desirable (the “Due Diligence Investigation”). This investigation may include a physical inspection of the Property, including, but not limited to,
inspection and examination of soils, environmental factors, if any, archeological information relating to the Property, geological and other tests; a review and investigation of any zoning, permits, reports, and engineering data; review of all
governmental matters affecting the Property (subject to the limitation set forth in Section 3.1.6 below); review of roofing, structural, mechanical, seismic and security systems in Building B; review of the condition or title to the Property;
review of material documents relating to the ownership and operation of the Property; and review of such other matters pertaining to an investment in the Property as Buyer deems advisable. Seller shall also permit Buyer to inspect any connection
between the security system on the Property and that on the Retained Property as well as any documents related to the operation of the security system to the extent such documents relate to the Property (“Limited Security Review”).
The Limited Security Review shall be coordinated through and attended by Seller’s authorized representative, and no other activity or inspection with respect to the Retained Property is permitted by this Agreement. Should it be determined in
the course of the Due Diligence Investigation that there are interconnecting utilities or other systems between the Property and the Retained Property, Seller shall not unreasonably withhold, condition or delay consent to Buyer’s request to
conduct such further investigation of the Retained Property as is reasonably necessary to evaluate such interconnection. All Buyer’s activities on the Retained Property shall be at Buyer’s sole cost and expense. 
  

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 3.1.3 Access/Conditions. To conduct its Due Diligence Investigation, Buyer and its
representatives shall have the right of access to the Property during reasonable business hours and upon at least one (1) business days’ prior notice. Such access shall be coordinated through Seller’s authorized representative, Roger
Wang, P.E., EFI Director of Facilities (telephone number: 650-357-3186), or any other individual designated by Mr. Wang, and Seller may require all such access to be in the company of Seller’s authorized representative. This right of entry
shall be subject to the following conditions: 
 (a) The Due Diligence Investigation shall be conducted in full compliance
with each law, zoning restriction, ordinance, rule, regulation or requirement of any governmental or quasi governmental agency (“Governmental Entity”) with jurisdiction over the Property. Buyer shall not interfere with any occupant
of the Property and shall make every reasonable effort to accommodate the requests of Seller, tenants of the Property and any other occupants of the Property regarding conduct of the investigation so as to minimize interference with business
operations at the Property. Buyer shall not conduct any interviews or discussions with any tenant without the prior written consent of Seller, which Seller shall not unreasonably withhold, condition, or delay, and Seller shall have the opportunity
to have a representative present during such tenant interviews or discussions. 
 (b) Prior to entering the Property to
perform its Due Diligence Investigation of the Retained Property or to perform the Limited Security Review, Buyer shall provide to Seller a certificate of insurance showing that Buyer maintains in full force and effect, a policy of comprehensive
general liability insurance (i) covering the activities of Buyer (including Buyer’s employees, independent contractors and agents) in connection with the Due Diligence Investigation, (ii) in an amount of not less than Three Million
Dollars ($3,000,000) combined single limit per occurrence from a carrier rated A- or better by Best’s Rating Guide, (iii) naming Seller, its officers, directors, lenders, agents and employees as additional insureds, and (iv) requiring
at least thirty (30) days’ written notice to Seller prior to cancellation or reduction in coverage. 
 (c) All
information supplied by Seller in the course of Buyer’s Due Diligence Investigation shall remain the property of Seller. In the event Closing does not occur or this Agreement is terminated for any reason, Buyer shall promptly return to Seller
all documents obtained from Seller and Seller’s agents; provided, however, Buyer may retain a single copy of all such documents (other than architectural drawings and construction specifications, which must be returned to Seller) for archival
purposes. 
 (d) Any investigation or other tests involving sampling or physical invasion of the surface of the Property or
physical sampling are to be made by Buyer only after obtaining the express written consent of Seller, which may be withheld in Seller’s sole discretion. Seller’s authorized representative and Seller’s environmental consultants may
attend any test or investigation at the Property and shall be entitled, without cost, to duplicates of any samples taken by Buyer (or, if duplicates are not reasonably attainable, Buyer may elect to deliver the actual samples after testing) and
to copies of all written reports and data prepared by or on behalf of Buyer with respect to such sampling. Any request for consent must be delivered to Seller and its authorized representative, together with a reasonably detailed investigation plan
sufficient for Seller to determine the scope and logistics of the proposed investigation, at least three (3) business days before the desired test. Any invasive sampling or testing permitted by 

  

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Seller shall be performed at Buyer’s sole cost in compliance with all environmental laws and other requirements of Governmental Entities. Depending on
the nature of the invasive testing or sampling, Seller may require an increase in the amount of insurance specified in Section 3.1.3(b). If in the course of its investigation, Buyer discovers any environmental condition which Buyer or its
consultants or contractors believes should be reported to any Governmental Entity, Buyer shall provide to Seller full information regarding the discovery, and Seller shall assume any and all reporting obligations and shall indemnify, defend and hold
Buyer, its employees, authorized agents, consultants, contractors and representatives harmless from any and all claims, Liens, demands, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders,
judgments, and all costs and expenses incurred in connection therewith (including, without limitation, reasonable attorneys’ fees, reasonable costs of defense, and reasonable costs and expenses of all experts and consultants) (collectively
referred to as “Claims”) arising directly or indirectly, in whole or in part, out of any failure of Seller to fulfill such reporting obligations, if any. If a Phase I environmental investigation report obtained during the Due
Diligence Period suggests that sampling is recommended, and if Seller consents to such testing in accordance with this Section 3.1.3(d), Buyer may have additional time to review and approve in its sole and unfettered discretion the
environmental condition of the Property for such additional period of time (the “Environmental Diligence Period”) as is reasonably required to obtain permits for such testing and to obtain the results and analysis thereof;
provided that (i) Buyer has approved all other matters relating to the Property other than the Property’s environmental condition prior to expiration of the Due Diligence Period, and (ii) in no event shall the Environmental Diligence
Period extend beyond December 30, 2008 without the prior written consent of Seller. 
 (e) Promptly after any physical
inspection of the Property, if any damage to the Property has resulted from such physical inspection, Buyer at its sole cost shall restore the Property to the condition that existed immediately prior to such inspection; provided that, if the Closing
does not occur for any reason, then Seller may elect to restore the Property itself and to charge the cost thereof to Buyer (who shall pay the amount due within thirty (30) days after delivery of an invoice from Seller). 
 (f) Buyer shall not permit any mechanics’ or other Liens to be filed against the Property as a result of Buyer exercising its right
of entry, and Buyer at its sole cost shall cause any Liens (as defined in Section 5.8) so filed to be removed within five (5) days after written notice from Seller, by bond or otherwise. 
 (g) Buyer’s obligations under this Section 3.1.3 shall survive the termination of this Agreement prior to Closing. 

3.1.4 Indemnity. Buyer shall indemnify, defend and hold Seller, its officers, directors, shareholders, affiliates, subsidiaries,
lenders, employees, contractors, agents, successors and assigns harmless from and against any and all Claims, to the extent arising out of the acts or omissions of Buyer, its agents, employees or contractors in the course of carrying out
Buyer’s Due Diligence Investigation and Limited Security Review, including but not limited to: 
 (a) any investigative
activity, or any other act or omission in connection with the Due Diligence Investigation or Limited Security Review, by or on behalf of Buyer or its employees, invitees, agents or contractors; 
  

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 (b) any contract, agreement or commitment entered into or made by and between Buyer and a
third-party contractor in connection with the Due Diligence Investigation or Limited Security Review; and 
 (c) the
investigation of the presence of Hazardous Materials (as defined in Section 5.6.1(b)) or substances on the Property, the exacerbation of any pre-existing environmental condition, in any case, as a result of any act or omission of Buyer or
Buyer’s employees, agents or contractors; provided, however the indemnifications in this Section 3.1.4 shall not extend to the Claims arising out of the discovery and/or reporting of existing conditions on the Property. Buyer’s
obligations under this Section 3.1.4 shall survive the termination of this Agreement prior to Closing. 
 3.1.5 Delivery of
Documents. In connection with Buyer’s Due Diligence Investigation, Seller has provided or will provide to Buyer copies of all development agreements, leases, service contracts, engineering drawings/specifications, purchase
orders/agreements, operating costs, use permits, third-party reports, studies, operating statements, environmental reviews, compliance inspection reports and other similar documents relating to the Property in Seller’s possession or control
(collectively, the “Due Diligence Documents”). The Due Diligence Documents shall exclude (if any) (a) any item that is subject to any legally recognized privilege (e.g., the attorney-client privilege) and attorney
work product, provided, however, Seller shall provide to Buyer a general description of the categories of Due Diligence Documents claimed to be excluded under this clause (a), (b) any document that contains proprietary or confidential financial
information not relating to the operation of the Property, (c) any appraisals of the Property and (d) any item that Seller is contractually or otherwise bound to keep confidential, provided, however, Seller shall provide to Buyer a general
description of the categories of Due Diligence Documents claimed to be excluded under this clause (d). Except as expressly set forth in this Agreement, Seller makes no representation or warranty relating to the validity of the Due Diligence
Documents, and Buyer acknowledges and agrees that Buyer is responsible for verifying the accuracy of the Due Diligence Documents. All information, including but not limited to the Due Diligence Documents, supplied by Seller to Buyer pursuant to this
Agreement shall remain the property of Seller, except as provided in Section 3.1.3(c). In the event the Closing does not occur, or this Agreement is terminated for any reason, Buyer shall promptly return to Seller all documents, including but
not limited to the Due Diligence Documents, obtained from Seller and Seller’s agents, employees and contractors except as provided in Section 3.1.3(c). 
 3.1.6 Contact with Government Entities. Buyer shall not contact any Governmental Entity, including but not limited to the City, about the Property or this Agreement without first having given Seller not
less than twenty-four (24) hours notice to Roger Wang of Buyer’s intent to contact the City or other Governmental Entity. Buyer shall give Seller (i) copies of all written communications to or from Governmental Entities, and
(ii) at least 24 hours prior notice of any meetings or telephone calls with Governmental Entities, so that Seller may participate if it desires. Buyer shall not enter into any binding agreements with Governmental Entities with respect to the
Property that become effective prior to the Closing. 
 3.1.7 Confidentiality. This Agreement, the Due Diligence Investigation,
and the Limited Security Review shall be subject to the terms and conditions of the Mutual Nondisclosure Agreement entered into by the parties on August 18, 2008 (the “NDA”), all of which terms and conditions (other than
Section 6 of the NDA) are incorporated herein by this reference. With regard to this Agreement only, the term “Purpose” in the NDA shall include evaluating the Property and performing the Limited Security Review, and Buyer
shall use all such information solely for such Purpose. Buyer’s obligations under this Section 3.1.7 shall survive the termination of this Agreement prior to Closing. 
  

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 3.1.8 Estoppel Certificates. Seller shall use commercially reasonable efforts to obtain and
deliver to Buyer prior to the end of the Due Diligence Period fully completed and executed tenant estoppel certificates substantially in the form attached as Exhibit E-1 and Exhibit E-2 from the existing tenants of
Building B (“Tenant Estoppel Certificates”). If Seller is unable to deliver the Tenant Estoppel Certificates prior to the expiration of the Due Diligence Period, Seller may elect, by written notice to Buyer, to close the
transaction in accordance with the terms and conditions of this Agreement by providing to Buyer at Closing a Seller estoppel certificate substantially in the form attached as Exhibit F-1 and Exhibit F-2 (the
“Seller Estoppel Certificates”), in place of any of the Tenant Estoppel Certificates not delivered. 
 3.2
Approval/Disapproval of Due Diligence Investigation. Buyer shall approve or disapprove of the results of its Due Diligence Investigation in the exercise of Buyer’s sole discretion by written notice (“Approval
Notice”) delivered to Seller no later than 5:00 p.m. on the last day of the Due Diligence Period. Buyer’s disapproval shall terminate this Agreement, in which case the Initial Deposit, together with all accrued interest, shall be
returned to Buyer and, except as otherwise provided herein, this Agreement shall be of no further force and effect. Buyer’s failure to deliver the Approval Notice to Seller shall be deemed disapproval. Notwithstanding any other provision of
this Agreement to the contrary, Buyer may elect to terminate this Agreement at any time during the Due Diligence Period for any reason whatsoever in Buyer’s sole and unfettered discretion, in which case the Initial Deposit, together with all
accrued interest, shall be returned to Buyer. 
 3.3 Preliminary Report. Buyer shall obtain a preliminary report or commitment
for title insurance (the “Preliminary Report”) covering the Property and issued by First American Title located at 1700 South El Camino Real, Suite 108, San Mateo, CA 94402, Attention: Karen Matsunaga (the “Title
Company”), together with a legible copy of each document, map and survey referred to in the Preliminary Report. 
 3.4
Approval/Disapproval of Preliminary Report. Buyer shall approve or disapprove of the Preliminary Report and any exceptions to title shown thereon (the “Exceptions”) in the exercise of Buyer’s sole discretion on or
before December 1, 2008, subject to Buyer’s right to review and approve or disapprove within five (5) days after receipt thereof any supplement to the Preliminary Report resulting from any new title exception or the title
company’s review of an ALTA survey obtained by Buyer (“Title Supplement”). If Buyer disapproves title, whether with respect to the Preliminary Report or a Title Supplement, Buyer may elect to either (a) terminate
this Agreement by giving Seller written notice of termination within the applicable time period for review, or (b) give Seller a written notice (“Disapproval Notice”) identifying the disapproved title matters which Buyer
will require to be removed or cured at or prior to Closing (“Disapproved Title Matters”). Failure by Buyer to timely give either notice approving the Preliminary Report and the Exceptions or the Disapproval Notice shall be
deemed approval. With respect to any Disapproved Title Matters, Seller shall notify Buyer in writing within five (5) business days after Seller’s receipt of the Disapproval Notice whether Seller will cause the Disapproved Title Matters to
be removed or cured at or prior to Closing. If Seller elects not to remove or cure all Disapproved Title Matters, Buyer may, at its option, by notice to Seller given prior to expiration of the Due Diligence Period, elect to: (i) close the
purchase of the Property and take title subject to any Disapproved Title Matters which Seller elects not to remove or cure (subject to satisfaction of the other conditions to Closing), or (ii) terminate this Agreement. 
  

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 Section 4. CONDITIONS PRECEDENT 
 4.1 Buyer’s Conditions. Buyer’s obligations under this Agreement are subject to the fulfillment of the following conditions at or prior to the Closing Date, which conditions are for the benefit
of Buyer only and the satisfaction or fulfillment of which may be waived only in writing by Buyer: 
 4.1.1 Representations and
Warranties True at Closing. Seller’s representations and warranties contained in this Agreement that are qualified by materiality shall be true and correct and any such representations and warranties that are not qualified by materiality
shall be true and correct in all material respects, in each case, as of the Effective Date and as of the Closing Date, as though such representations and warranties were made on and as of the Closing Date. 
 4.1.2 Performance. Seller shall have performed and complied in all material respects with all covenants, agreements, terms and conditions
required by this Agreement to be performed or complied with by it prior to or at the Closing. 
 4.1.3 Title Policy. The Title
Company shall on the Closing Date be irrevocably and unconditionally committed to deliver to Buyer an ALTA extended coverage owner’s policy of title insurance with such endorsements as Buyer shall reasonably request (the “Title
Policy”), with liability not less than the Purchase Price showing fee title to the Property vested in Buyer, subject only to the Exceptions approved by Buyer pursuant to Section 3.4. At Buyer’s option, Buyer may obtain a Title
Policy in an amount equal to the estimated value of improvements to be construction on the Land. 
 4.1.4 REA. At Closing,
Buyer and Seller shall have reached agreement on the terms of, and entered into an agreement providing for reciprocal easements for access, utilities, drainage and parking (the “REA”), and any required approvals from the City
pertaining to the REA shall have been obtained. 
 4.1.5 EFI Lease. At Closing, Buyer and Seller shall have reached agreement
on the terms of, and entered into a lease (the “EFI Lease”) pursuant to which Buyer shall lease to Seller portions of Building B currently used by Seller for lab and warehouse, for a period of time beginning on the Close of
Escrow and expiring on April 15, 2009. 
 4.1.6 Child Care Agreement. At Closing, Buyer and Seller shall reached agreement
on the terms of, and have entered into an agreement (the “Child Care Center Agreement”) regarding the use of the Child Care Center by employees of Seller after Closing provided that the Child Care Center Agreement will not
obligate Buyer to provide Seller’s employees use of the Child Care Center beyond July 15, 2009. For the avoidance of doubt, Buyer will have sole discretion on all matters related to the Child Care Center after July 15, 2009.
Notwithstanding anything herein to the contrary, in no event shall Buyer terminate the use of the Child Care Center by Seller’s employees without giving at least ninety (90) days prior written notice to Seller and the relevant employees.

 4.1.7 Assignment of Development Agreement. At Closing, Seller shall assign to Buyer all of its right, title and interest in
and to the Development Agreement and shall obtain all consents to such assignment as may be required to validly assign the Development Agreement. Such assignment (the “Assignment of Development Agreement”) shall be
substantially in the form attached as Exhibit G. 
  

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 4.1.8 Material Change in Entitlements for Property. There shall have been no material
change in Applicable Laws or the right to develop the Property in accordance with the Development Agreement that would adversely affect Buyer’s ability (with respect to cost or time to completion) under the Development Agreement to construct on
the Property no less than 542,000 gross square feet of building area and a parking structure. 
 4.1.9 Consent of Ground Lessee to
Right of First Offer. Seller shall have obtained the consent of the Ground Lessee to the granting of the Right of First Offer as set forth in Section 10.6 below. 
 4.2 Seller’s Conditions. Seller’s obligations under this Agreement are subject to the fulfillment of the following conditions at or prior to the Closing Date, which conditions are for the
benefit of Seller only and the satisfaction or fulfillment of which may be waived only in writing by Seller: 
 4.2.1
Representations and Warranties True at Closing. Buyer’s representations and warranties contained in this Agreement (i) that are qualified by materiality shall be true and correct and (ii) any such representations and warranties
that are not qualified by materiality shall be true and correct in all material respects, in each case, as of the Effective Date and as of the Closing Date, as though such representations and warranties were made on and as of the Closing Date.

 4.2.2 Performance. Buyer shall have performed and complied in all material respects with all covenants, agreements, terms
and conditions required by this Agreement to be performed or complied with by it prior to or at the Closing. 
 4.2.3 REA. Buyer and
Seller shall have reached agreement on the terms of, and entered into the REA, and any required approvals from the City pertaining to the REA shall have been obtained. 
 4.2.4 EFI Lease. Buyer and Seller shall have reached agreement on the terms of, and entered into the EFI Lease. 
 4.2.5 Child Care Center Agreement. Buyer and Seller shall have reached agreement on the terms of, and entered into the Child Care Center Agreement. 
 4.2.6 Consent to Right of First Offer. Seller shall have obtained the written consent of its Ground Lessee as described in
Section 10.6. 
 4.3 Failure of Conditions. 
 4.3.1 Failure of a Condition for the Benefit of Buyer. If any of the conditions to Closing set forth in Section 4.1 are not satisfied at the Closing Date, Buyer may terminate this Agreement by
written notice to Seller and the Title Company. In the event of such termination of this Agreement, the Escrow shall be terminated, the Deposit shall be returned to Buyer and all other funds and all documents deposited with the Title Company shall
be returned to the party having deposited the same. The foregoing shall not affect Buyer’s remedies for a default by Seller, which shall be governed by Section 11. 
  

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 4.3.2 Failure of a Condition for the Benefit of Seller. If any of the conditions to Closing
set forth in Section 4.2 are not satisfied at the Closing Date for a reason other than the default of Buyer, Seller may terminate this Agreement by written notice to Buyer and the Title Company. In the event of such termination of this
Agreement, the Escrow shall be terminated, the Deposit shall be returned to Buyer and all other funds and documents deposited with the Title Company shall be returned to the part having deposited the same. The foregoing shall not affect
Seller’s remedies for a default by Buyer, which shall be governed by Section 11. 
 Section 5. SELLER’S REPRESENTATIONS AND WARRANTIES 

 5.1 Authority. Seller is a duly formed, validly existing corporation in good standing in the State of Delaware, and is
qualified to do business in the State of California. Seller has the requisite power and authority to execute, deliver and perform this Agreement. This Agreement and the other documents executed by Seller in accordance herewith constitute legal,
valid and binding obligations of Seller, enforceable against Seller in accordance with their respective terms. All actions and approvals required under Seller’s organizational documents and, except as set forth on Schedule 5.1, any
agreements of Seller with third parties to sell, transfer, convey and deliver the Property and consummate the transactions contemplated by this Agreement have been duly taken and obtained. All persons acting for and on behalf of Seller have the
necessary authority to execute documents and to otherwise consummate this transaction. 
 5.2 No Conflict. Except as set forth
on Schedule 5.2, the execution and delivery of this Agreement, the consummation of the transactions provided for herein and the fulfillment of the terms hereof will not result in a material breach of any of the terms or provisions of, or
constitute a material default under any provision of Seller’s organizational documents or any agreement by which Seller is bound, or any order or regulation of any court, regulatory body, administrative agency or Governmental Entity having
jurisdiction over Seller. 
 5.3 Contracts. Except as disclosed on the Preliminary Report or as listed in Exhibit
C and Exhibit D hereto, or provided in the Due Diligence Documents after the Effective Date (collectively, the “Contracts”), there are no agreements relating to the Property to which Seller is party and by
which Buyer or the Property will be bound after the Closing, other than those that can be terminated without cause on no more than thirty (30) days’ notice and that are listed in Exhibit C and Exhibit D. Except
as noted on Exhibit C or Exhibit D, the Contracts are in full force and effect and to Seller’s knowledge, binding on the parties thereto. Seller has provided, or prior to the expiration of the Due Diligence Period
will provide, correct and complete copies of the Contracts to Buyer. 
 5.4 Litigation. No litigation or other legal proceeding
is pending, or to Seller’s knowledge, proposed, threatened or anticipated with respect to the Property or any matter affecting Seller’s ability to transfer the Property. 
 5.5 Legal Compliance. To Seller’s knowledge, except as otherwise disclosed in Schedule 5.5, the Property and Seller’s operations
concerning the Property are not in violation of any applicable federal, state or local statute, law or regulation (“Applicable Laws”), and no notice from any Governmental Entity has been served upon Seller claiming any
violation of Applicable Laws, or requiring or calling attention to the need for any work, repairs, construction, alterations or installation on or in connection with the Property in order to comply Applicable Laws, with which Seller has not
complied. If there are any such notices with which Seller has complied, Seller shall provide Buyer with copies thereof. 
  

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 5.6 Hazardous Materials; Asbestos. 
 5.6.1 Definitions. For purposes of this Agreement: 
 (a) “Environmental Law(s)” means all present and future laws that relate to the protection of human health, public
or worker safety, occupation health, wildlife or the environment, including without limitation, (i) federal, state, regional and local laws, regulations, rules, and other written requirements; (ii) permits, orders, plans, guidelines and
similar directives of all federal, state, regional and local governmental authorities; and (iii) administrative and judicial decrees, judgments, orders and directives. 
 (b) “Hazardous Material” means any substance which is designated, defined, classified or regulated as a hazardous
substance, hazardous material, toxic substance, hazardous waste, pollutant or contaminant under any Environmental Law, as currently in effect, including, without limitation, petroleum hydrocarbons (including crude oil or any fraction thereof and all
petroleum products and additives thereto), PCBs, asbestos, explosives, corrosives, toxic materials, flammable materials, infectious materials, radioactive materials, carcinogenic materials, reproductive toxicants and mold. 
 (c) “Release” means any accidental or intentional spilling, leaking, pumping, pouring, emitting, discharging,
injecting, escaping, leaching, dumping or disposing into the environment of any Hazardous Material (including the abandonment or discarding of barrels, containers, and other receptacles containing any Hazardous Material). 
 5.6.2 Representations. Except as otherwise disclosed in the Due Diligence Documents, or disclosed to Buyer through any physical testing or
inspection of the Land or Improvements or otherwise: 
 (a) To Seller’s knowledge, Seller has not received any written
notice of violation issued pursuant to any Environmental Law with respect to the Land or Improvements. 
 (b) To Seller’s
knowledge, during Seller’s period of ownership of the Property, there has been no Release by Seller on the Property of any Hazardous Materials in violation of any applicable Environmental Laws. 
 (c) To Seller’s knowledge, during Seller’s period of ownership of the Property, Seller has not installed any asbestos or
asbestos-containing material in the Property through construction, renovation or otherwise. 
 5.7 Government Action. There are
no presently pending or to Seller’s knowledge, contemplated or threatened (i) proceedings by any Governmental Entity to condemn or demolish the Land or Improvements or any part of them, or (ii) proceedings to declare the Land or
Improvements or any part of them a nuisance. To Seller’s knowledge there are no presently pending zoning changes, or other proceedings or actions (including legislative action) by any Governmental Entity that will in any way affect the size of,
use of, improvements on, construction on, or access to the Property, except as disclosed in Schedule 5.7. 
 5.8 Liens.
Except as set forth in Schedule 5.8, there are no liens, pledges, charges, security interests, encumbrances or other claims of any kind (collectively “Liens”) with respect to the Personal Property that will not be paid at
Closing. 
 5.9 Seller’s Knowledge. For purposes of this Agreement, the phrase “to Seller’s knowledge” or
other similar phrases shall mean to the current actual knowledge of John Ritchie, Roger Wang and Seller’s general counsel without any duty of inquiry or investigation. The individuals named in this Section 5.9 shall have no personal
liability for any of Seller’s representations or warranties by reason of being named herein. 
  

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 5.10 Survival of Seller’s Representations and Warranties. The representations and
warranties set forth in this Section 5 are made as of the Effective Date and are remade as of the Closing Date and shall not be deemed to be merged into or waived by the instruments of Closing, but shall survive the Closing until 11:59 p.m.
Pacific Time on the first anniversary of the date of Closing (“Survival Expiration Date”). Buyer shall have the right to bring an action thereon only if Buyer has given Seller written notice of the circumstances giving rise to the
alleged breach on or before the Survival Expiration Date. 
 5.11 Notice of Changed Circumstances. If Seller becomes aware of
any fact or circumstance that would render false or misleading a representation or warranty made by Seller, Seller shall immediately give written notice of such fact or circumstance to Buyer. 
 5.12 Inaccuracies Known to Buyer. Any fact, condition or circumstance actually known by or disclosed to Buyer prior to the expiration of
the Due Diligence Period that contradicts or renders untrue any warranty or representation made by Seller under this Agreement, shall render such warranty or representation superseded and of no effect to the extent of such contradiction or untruth.
If such fact, condition or circumstance known by or disclosed to Buyer prior to the expiration of the Due Diligence Period renders any warranty or representation of Seller untrue in a material respect, Buyer shall have the right to elect, as
Buyer’s sole and exclusive remedy, either: (i) to terminate this Agreement and receive the return of the Deposit, or (ii) to waive such contradiction or untruth and proceed to Closing in accordance with this Agreement. 
 Section 6. BUYER’S REPRESENTATIONS 
 6.1
Buyer’s Authority. Buyer hereby represents and warrants to Seller that Buyer has the requisite power and authority to execute, deliver and perform this Agreement. This Agreement and the other documents executed by Buyer in accordance
herewith constitute legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their respective terms. All persons acting for and on behalf of Buyer have the necessary authority to execute documents and to otherwise
consummate this transaction. 
 6.2 Financing. Buyer has or will on the Closing Date have all funds necessary to consummate the
transactions contemplated by this Agreement. 
 6.3 Litigation. To Buyer’s actual knowledge (without inquiry or
investigation) there is no pending litigation, administrative proceeding, or other legal action or act by a Governmental Entity which would prevent the Closing in accordance with the terms of this Agreement. 
 6.4 Survival of Buyer’s Representations and Warranties. The representations and warranties set forth in this Section 6 are made
as of the Effective Date and are remade as of the Closing Date and shall not be deemed to be merged into or waived by the instruments of Closing, but shall survive the Closing until the Survival Expiration Date. Seller shall have the right to bring
an action thereon only if Seller has given Buyer written notice of the circumstances giving rise to the alleged breach before the Survival Expiration Date. 
  

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 6.5 Notice of Changed Circumstances. If Buyer becomes aware of any fact or circumstance
that would render false or misleading a representation or warranty made by Buyer, Buyer shall immediately give written notice of such fact or circumstance to Seller. 
 Section 7. AS-IS; INDEMNITY; RELEASE 
 7.1 “AS IS” SALE. 
 7.1.1 NO RELIANCE ON DISCLOSURES. ACKNOWLEDGING (A) BUYER HAS ACQUIRED AND OWNS REAL PROPERTY IN FOSTER CITY IN THE VICINITY OF THE
PROPERTY; (B) BUYER HAS HAD OR WILL HAVE AN ADQUATE TIME TO MAKE AN EVALUATION OF THE PROPERTY; (C) BUYER HAS ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF MAKING AND RELYING UPON ITS OWN INVESTIGATION OR THAT OF THIRD PARTIES WITH
RESPECT TO THE PHYSICAL, ENVIRONMENTAL, ECONOMIC AND LEGAL CONDITION OF THE PROPERTY, (D) BUYER HAS CONTRACTED OR MAY CONTRACT WITH CERTAIN ADVISORS AND CONSULTANTS, INCLUDING BUT NOT LIMITED TO ENVIRONMENTAL CONSULTANTS, ENGINEERS AND
GEOLOGISTS, SOILS AND SEISMIC EXPERTS, TO CONDUCT SUCH ENVIRONMENTAL, GEOLOGICAL, SOIL, HYDROLOGY, SEISMIC, PHYSICAL, STRUCTURAL, MECHANICAL AND OTHER INSPECTIONS OF THE PROPERTY AS BUYER DEEMS TO BE NECESSARY AND THAT BUYER HAS REVIEWED OR WILL
REVIEW ALL SUCH REPORTS AS WELL AS ALL MATERIALS AND OTHER INFORMATION GIVEN OR MADE AVAILABLE TO BUYER BY SELLER, BUYER AGREES, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN, TO TAKE THE PROPERTY “AS-IS,”
“WHERE-IS,” AND WITH ALL FAULTS AND CONDITIONS THEREON. ANY INFORMATION, REPORTS, STATEMENTS, DOCUMENTS OR RECORDS PREPARED BY THIRD PARTIES (COLLECTIVELY, THE “DISCLOSURES”) PROVIDED OR MADE TO BUYER OR ITS CONSTITUENTS BY
SELLER OR ANY OF SELLER’S AFFILIATES SHALL NOT BE REPRESENTATIONS OR WARRANTIES OF SELLER. EXCEPT AS EXPRESSLY SET FORTH HEREIN, BUYER SHALL NOT RELY ON SUCH DISCLOSURES, BUT RATHER, BUYER SHALL RELY ONLY ON ITS OWN INSPECTION OF THE PROPERTY.

 7.1.2 DISCLAIMER OF WARRANTIES. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT, SUBJECT TO THE REPRESENTATIONS AND WARRANTIES
EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS AND WARRANTIES BY SELLER OR ON BEHALF OF SELLER OR OTHERWISE, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR
FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO THE PROPERTY OR MATTERS AFFECTING THE PROPERTY, INCLUDING WITHOUT LIMITATION (A) THE NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY;
(B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH BUYER MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTY WITH ANY LAWS, RULES, ORDINANCES OR
REGULATIONS OF ANY APPLICABLE GOVERNMENTAL ENTITY, INCLUDING BUILDING, HEALTH, SAFETY, LAND USE AND ZONING LAWS, REGULATIONS AND ORDERS; (E) THE HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY;
(F) STRUCTURAL AND OTHER ENGINEERING CHARATERISTICS (INCLUDING SEISMIC DAMAGE); (G) THE PRESENCE, EXISTENCE OR ABSENCE OF TERMITES, PESTS, HAZARDOUS WASTES, TOXIC SUBSTANCES OR OTHER ENVIRONMENTAL MATTERS OR (H) ANY OTHER INFORMATION
PERTAINING TO THE PROPERTY OR THE MARKET AND PHYSICAL ENVIRONMENTS IN WHICH IT IS LOCATED. 
  

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 7.1.3 RELEASE OF CLAIMS. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, BUYER,
ITS SUCCESSORS AND ASSIGNS, HEREBY UNCONDITIONALLY AND ABSOLUTELY WAIVE, RELEASE AND AGREE NOT TO MAKE ANY CLAIM OR BRING ANY COST RECOVERY ACTION OR CLAIM FOR CONTRIBUTION OR OTHER ACTION OR CLAIM AGAINST SELLER OR SELLER’S AFFILIATES,
DIRECTORS, OFFICERS, EMPLOYEES, LENDERS, SUCCESSORS AND ASSIGNS FOR ANY “CLAIMS” (AS DEFINED IN SECTION 3.1.3) OR COMPENSATION WHATSOEVER, DIRECT OR INDIRECT, KNOWN OR UNKNOWN, FORESEEN OR UNFORESEEN, ACCRUED OR UNACCRUED, LIQUIDATED OR
UNLIQUIDATED, FIXED OR CONTINGENT, WHICH BUYER EVER HAD, NOW HAS OR MAY HAVE, OR WHICH MAY ARISE IN THE FUTURE ON ACCOUNT OF OR IN ANY WAY GROWING OUT OF OR IN CONNECTION WITH (A) ANY FEDERAL, STATE, OR LOCAL ENVIRONMENTAL OR HEALTH AND SAFETY
LAW OR REGULATION, INCLUDING WITHOUT LIMITATION THE COMPREHENSEIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 1980, 42 U.S.C. SECTION 9601, AS AMENDED OR ANY STATE EQUIVALENT, OR ANY SIMILAR LAW NOW EXISTING OR HEREAFTER ENACTED OR
(B) ANY ENVIRONMENTAL CONDITIONS WHATSOEVER ON ABOUT OR UNDER THE PROPERTY OR (C) SUBJECT TO THE PROVISIONS OF SECTION 7.1.5 BELOW, ANY OTHER MATTER RELATING TO OR CONNECTED WITH THE CONDITION OF THE PROPERTY. THE PROVISIONS OF THIS
SECTION 7 SHALL SURVIVE THE CLOSING. BUYER REPRESENTS TO SELLER THAT BUYER HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF PROPERTY AS BUYER DEEMS NECESSARY OR DESIRABLE TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY
AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY UPON SAME. 
 7.1.4 RELEASE OF CERTAIN CLAIMS. WITH RESPECT TO THE FOREGOING RELEASE OF CLAIMS, IN GIVING SUCH RELEASE, BUYER ACKNOWLEDGES THE PROVISIONS
OF CALIFORNIA CIVIL CODE SECTION 1542, AS AMENDED OR MODIFIED, WHICH PROVIDES THAT: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 BUYER HEREBY SPECIFICALLY ACKNOWLEDGES THAT BUYER HAS CAREFULLY REVIEWED THIS SECTION 7 AND DISCUSSED ITS IMPORT WITH LEGAL COUNSEL, IS FULLY AWARE OF ITS CONSEQUENCES,
AND THAT THE PROVISIONS OF THIS SECTION 7 ARE A MATERIAL PART OF THIS AGREEMENT; PROVIDED, HOWEVER, SUCH RELEASE, WAIVER OR DISCHARGE PURSUANT TO THIS SECTION 7 SHALL NOT APPLY AND SHALL BE OF NO FORCE OR EFFECT AS TO ANY CLAIMS RELATING TO
(I) SELLER’S BREACH OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE BREACH OF ANY REPRESENTATION OR WARRANTY EXPRESSLY SET FORTH IN THIS AGREEMENT, (II) SELLER’S FRAUD (III) SELLER’S INTENTIONAL MISREPRESENTATION (IV)
CLAIMS DESCRIBED IN SECTION 7.1.5, OR (V) THAT SELLER’S ESTOPPEL CERTIFICATE, IF ANY, WAS IN ANY MANNER MATERIALLY FALSE. 
  

									
					
	Seller	 	( /s/ John Ritchie )	 		 	Buyer	 	( /s/ John Milligan )
		 	Chief Financial Officer	 		 		 	President & Chief Operating Officer

  

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 7.1.5 Third Party Claims. In the event there are third party actions, suits or legal
proceedings (the “Proceeding”) for injury or death to persons or damage to property arising out of or relating to events occurring on the Property during Seller’s ownership of the Property, then Buyer shall have the right to
tender defense of any such Proceeding to Seller, and Seller shall indemnify, defend and hold Buyer harmless from and against any losses, damages, liabilities, fines, penalties, charges and all costs and expenses incurred or suffered by Buyer in
connection with or relating to the Proceeding; provided, however, that Seller shall have no such obligation unless: (a) Buyer notifies Seller in writing within forty-five (45) days of the date Buyer becomes first aware of the commencement
of a Proceeding against Buyer (provided that no failure or delay in giving notice will relieve Seller from its indemnity obligation, except to the extent that Seller is prejudiced by such failure or delay); (b) Buyer provides Seller with copies
of all documents received by Buyer relating to the Proceeding; (c) Buyer gives Seller, with reputable counsel of Seller’s choosing, the sole power to direct and control the settlement and defense of the Proceeding, provided that Seller
will not settle a Proceeding without Buyer’s consent unless (i) all claims in the Proceeding against Buyer will be dismissed with prejudice as part of the settlement and (ii) the sole relief provided is to be paid in full or performed
by Seller; and (d) Buyer uses commercially reasonable efforts to cooperate and assist Seller in its defense or settlement of the Proceeding. This Section 7.1.5 shall in no way apply to or alter Buyer’s release of claims set forth in
Section 7.1.3(A) and 7.1.3(B). 
 7.2 Survival. Buyer’s agreements and covenants under this Section 7 shall
survive the Closing. 
 Section 8. OPERATION OF THE PROPERTY PENDING THE CLOSING 
 8.1 Normal Course of Business. Seller shall use commercially reasonable efforts to continue to operate, manage and maintain the Property in
such condition so that the Property shall be in substantially the same condition as of the Closing Date as it was on the Effective Date, ordinary wear and tear excepted. Ordinary wear and tear shall not include any failure by Seller to utilize good
maintenance practices. Seller shall maintain all existing insurance policies in connection with the Property. Except as may be required with respect to Seller or Seller’s Property by the REA or the Declaration of Covenants, Conditions and
Restrictions for Vintage Park dated December 27, 1985, and recorded December 27, 1985 in the Official Records of the County as Document No. 85138387 Seller’s existing liability and property insurance pertaining to the Property
may be canceled by Seller as of the Closing Date. Seller shall not make any material alterations to the Property without the prior written approval of Buyer, which may be withheld in Buyer’s sole discretion. 
 8.2 No New Leases. Seller shall not enter into any new leases for any portion of the Property, or modify, extend or terminate any of the
existing Leases, without the prior written consent of Buyer. 
  

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 8.3 Maintenance of Condition of Title. During the term of this Agreement, Seller shall not allow
any Lien or any other matter to cause the condition of title to the Property to be changed from that as existed as of the Effective Date, without Buyer’s prior written consent. 
 8.4 Leases. Between the date of this Agreement and the Closing Date, Seller shall not, without Buyer’s prior written consent, in
Buyer’s sole and absolute discretion, (i) renew any Leases, (ii) amend any Leases, (iii) terminate any Leases or (iv) enter into any leases affecting the Property. 
 8.5 Contracts. Seller will not enter into any purchase contract obligation which will not be paid in full prior to the Closing Date or any
service, maintenance, or management, design or improvement contract that cannot be canceled upon thirty (30) days’ notice at no cost to Buyer unless Seller first obtains the written approval of Buyer, in Buyer’s sole discretion.

 8.6 Mutual Cooperation. Seller and Buyer shall each cooperate with the other in pursuing the matters required to be
performed by the other as set forth in this Agreement and otherwise shall use commercially reasonable efforts to fulfill the conditions to Closing. 
 8.7 Further Encumbrances. Seller shall not execute any documents or otherwise take any action that will have the result of further encumbering the Property in any fashion. 
 Section 9. CLOSING 
 9.1 Time. Provided
that all conditions set forth in Section 4 have been either satisfied or waived by the appropriate party, the parties shall close the transaction contemplated by this Agreement (the “Closing”), on a date designated by
Buyer after January 1, 2009 and before January 29, 2009, unless otherwise agreed in writing by the parties (the “Closing Date”). Buyer shall give Seller at least thirty-five (35) days prior written notice of
the Closing Date. 
 9.2 Escrow. The terms of this Agreement (including, but not limited to, the terms contained in this
Section 9), together with such additional instructions as the Title Company shall reasonably request and to which the parties shall agree, shall constitute the escrow instructions to the Title Company. If there is any inconsistency between this
Agreement and any additional escrow instructions given to the Title Company, this Agreement shall control unless the intent to amend this Agreement is clearly and expressly stated in the additional escrow instructions. Buyer and Seller shall cause
the Title Company to execute and deliver a counterpart of this Agreement to each of them. 
 9.3 Seller’s Deposits Into
Escrow. Seller shall deposit into escrow on or before Closing the following documents: 
 9.3.1 Grant Deed. A duly executed
and acknowledged grant deed in the form of Exhibit H, conveying good and marketable fee simple title to the Property to Buyer, subject only to the Exceptions (if any) approved or deemed approved by Buyer pursuant to Section 3.4
(the “Grant Deed”); 
 9.3.2 Bill of Sale. A duly executed bill of sale in the form of Exhibit
I, conveying the Personal Property to Buyer without representation or warranty (the “Bill of Sale”); 
  

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 9.3.3 Lease Assignment. A duly executed and acknowledged assignment in the form of
Exhibit J, assigning to Buyer all of Seller’s interest as landlord under each of the Leases (the “Lease Assignment”); 
 9.3.4 EFI Lease. A duly executed EFI Lease. 
 9.3.5 REA. A duly executed and
acknowledged REA. 
 9.3.6 Assignment of Contracts and General Assignment. A duly executed assignment in the form of
Exhibit K, assigning to Buyer all of Seller’s interest in the Contracts and Other Assets (the “General Assignment”); 
 9.3.7 Assignment of Development Agreement. A duly executed and acknowledged Assignment of Development Agreement; 
 9.3.8 Child Care Center Agreement. A duly executed Child Care Center Agreement; 
 9.3.9
Non-Foreign Certificate. A duly executed certificate of Seller stating that Seller is not a “foreign person” within the meaning of Section 1445(f) of the Internal Revenue Code of 1986, as amended (the “Non-Foreign
Certificate”); 
 9.3.10 Withholding Affidavit. Seller’s affidavit of nonforeign status as contemplated by
California Revenue and Taxation Code Sections 18662 and 18668 (the “Withholding Affidavit”); 
 9.3.11
Natural Hazard Disclosure Statement. A completed and executed natural hazard disclosure statement, which shall disclose whether the Property is located within one (1) or more of the six (6) natural hazard zones specified in
California Civil Code Section 1103.2 (the “Natural Hazard Disclosure Statement”); and 
 9.3.12 Seller
Estoppels. Any Seller Estoppels required pursuant to Section 3.1.8. 
 9.3.13 Tenant Notices. Letters addressed to
each tenant of the Property, identifying Buyer as the new owner of the Property and stating the address to which future rent payments and correspondence should be sent (the “Tenant Notices”) in the form attached hereto as
Exhibit L; and 
 9.3.14 Other. Such additional documents, including written escrow instructions consistent with
this Agreement, as may be reasonably necessary for conveyance of the Property in accordance with the terms of this Agreement. 
 9.4
Buyer’s Deposits into Escrow. Buyer shall deposit into escrow on or before Closing: 
 9.4.1 Purchase Price. The
balance of the Purchase Price in accordance with the provisions of Section 2, plus or minus prorations and closing costs as provided in Section 9.6, by electronic transfer of immediately available funds; 
 9.4.2 Lease Assignment. A counterpart of the Lease Assignment duly executed by Buyer; 
  

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 9.4.3 EFI Lease. A counterpart of the EFI Lease duly executed by Buyer; 
 9.4.4 Reciprocal Easement Agreement. A counterpart of the REA duly executed and acknowledged by Buyer. 
 9.4.5 General Assignment. A counterpart of the General Assignment duly executed by Buyer; 
 9.4.6 Assignment of Development Agreement. A counterpart of the Assignment of Development Agreement duly executed and acknowledged by
Buyer; 
 9.4.7 Child Care Center Agreement. A counterpart of the Child Care Center Agreement duly executed by Buyer; and

 9.4.8 Other. Such additional documents, including written escrow instructions consistent with this Agreement, as may be
reasonably necessary for conveyance of the Property in accordance with this Agreement. 
 9.5 Closing. When the Title Company
has received all documents and funds identified in Sections 9.3 and 9.4 has received written notification from Buyer and Seller that all conditions to Closing have been satisfied or waived; and the Title Company is irrevocably committed to
issue the Title Policy as described in Section 4.1.3, then, and only then, the Title Company shall take the following actions in the following chronological order: 
 9.5.1 Record the REA, the Grant Deed, the Assignment of Development Agreement and the Lease Assignment (the “Recordable Documents”), in that order; 
 9.5.2 Issue the Title Policy to Buyer; 
 9.5.3 Deliver to Buyer: (i) a conformed copy (showing all recording information thereon) of the Recordable Documents, (ii) the original Bill of Sale, (iii) fully executed originals of the General Assignment, EFI Lease,
and Child Care Center Agreement, (iv) the Non-Foreign Certification, (v) the Withholding Affidavit, (vi) the Natural Hazard Disclosure Statement, (vii) the Seller Estoppels, if any, (viii) the Tenant Notices; and 

9.5.4 Deliver to Seller: (i) a conformed copy (showing all recording information thereon) of the Recordable Documents, (ii) fully
executed originals of the General Assignment, EFI Lease and Child Care Center Agreement and (iii) the Purchase Price (as adjusted pursuant to Section 9.6). 
 The Title Company shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller. 
 9.6 Prorations and Closing Costs. Subject to the other provisions of this Section 9.6, all receipts and disbursements of the Property will be prorated as of 11:59 p.m. Pacific Time on the day
immediately preceding the Closing Date. Not less than five (5) business days prior to the Closing, the Title Company shall submit to Buyer and Seller for their approval a tentative prorations schedule showing the categories and amounts of all
prorations proposed. The parties shall agree on a final prorations schedule prior to the Closing. If following the Closing either party discovers an error in the prorations statement, it shall notify the other party and the parties shall promptly
make any adjustment required. The provisions of this Section 9.6 shall survive the Closing. 
  

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 9.6.1 Property Rents. Buyer shall be credited and Seller charged with rent and other
payments, including percentage rent and operating costs, due by tenants under the Leases for periods subsequent to the Closing Date. Rent under the Leases shall be apportioned as of the Closing Date (with the Closing Date belonging to Buyer) on the
basis of a 365-day year. All rents and other sums received by Buyer after the Closing Date shall be applied first to rent and other obligations accrued or due on or after the Closing Date and then to unpaid rent accruing prior to the Closing Date.
Buyer hereby agrees to promptly pay to Seller any amounts due to Seller after Closing. Seller shall be permitted to pursue its remedy for collection of any rent arrearages applicable to the period prior to the Closing Date. 
 9.6.2 Security Deposits. Buyer shall be entitled to credit against its obligation to pay the Purchase Price for the total sum of all rental
deposits, security deposits, and other deposits paid to Seller by tenants under any Leases, except to the extent such deposits have been applied in accordance with the terms of any Lease. 
 9.6.3 Property Taxes. All real and personal property taxes, assessments, improvement bonds and other similar expenses, if any, whether
payable in installments or not, including, without limitation, all supplemental taxes attributable to the period prior to the Closing Date for the calendar year in which the Closing occurs, shall be prorated to the Closing Date, based on the latest
available tax rate and assessed valuation. If the amount of any installment of real property taxes is not known as of the Closing Date, then a proration shall be made by the parties based on a reasonable estimate of the real property taxes
applicable to the Property and the parties shall adjust the proration when the actual amount becomes known upon the written request of either party made to the other. In the event any error in proration is discovered post-closing, each party agrees
to pay to the other any amount required to adjust and correct the error in proration within thirty (30) days of written demand. 
 9.6.4 Utility Charges. All utility charges attributable to the period before the Closing Date shall be paid by Seller. Seller shall cause all meters to be read on the day before the Closing Date. All utility security deposits,
if any, shall be retained by Seller or, if Buyer elects, shall be assigned to Buyer and credited to Seller at Closing. 
 9.6.5
Closing Costs. Seller shall pay all county transfer taxes. Buyer shall pay the cost of (i) the Title Policy, and any additional coverage or endorsements desired by Buyer, (iii) the survey costs, if any, in connection with obtaining
an ALTA survey or extended coverage, and (iv) all escrow fees. Seller and Buyer shall each pay all other closing costs in accordance with County custom. 
 9.7 Possession. Seller shall deliver exclusive right of possession to the Property to Buyer on the Closing Date, subject only to the Exceptions (if any) approved by the Buyer pursuant to Section 3.4
and the rights of any tenants under the Leases. 
 Section 10. ADDITIONAL COVENANTS 
 10.1 Fitness Center. Building B currently contains a fitness center (the “Fitness Center”), which is currently used
by Seller’s employees. From and after the Closing until the earlier of (i) the date Seller has constructed its own gym facilities in Building A or (ii) July 15, 2009, Buyer shall permit individuals who are employees of the Seller
as of the Effective Date, 

  

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and continue to be employed by Seller thereafter, to continue to use the Fitness Center during its hours of operation, at no charge or cost to Seller or
Seller’s employees. Seller shall indemnify, defend and hold Buyer its employees, authorized agents, consultants, contractors and representatives harmless from any Claims arising directly or indirectly, in whole or in part, out of any use of the
Fitness Center by Seller’s employees, and the foregoing indemnification shall extend to Claims arising out of or alleged to arise out of Buyer’s active or passive negligence. 
 10.2 Parking. Parking for Building A is currently provided on portions of the Property. During the Due Diligence Period, Buyer and Seller
will negotiate in good faith to arrive at a mutually agreeable plan regarding the initial allocation and location of parking for Buyer’s and Seller’s employees upon Closing as well as provisions for making modifications to this initial
allocation and location as a function of Gilead’s development of the Property. If Buyer and Seller have not arrived at an agreement by December 8, 2008, Buyer and Seller will agree in the REA that Seller shall have perpetual parking rights
sufficient to meet the requirements of Seller’s current use permit for the Retained Property and such that neither Buyer’s nor Seller’s employees will have any priority on specific parking spots or locations; provided that Buyer will
have the sole and absolute discretion regarding the development and location of all parking lots, garages or other facilities so long as parking for Building A is in compliance with the applicable use permits. In no event shall Seller be required to
pay for any costs of construction of any parking structure on the Property, but Seller shall pay a pro rata share of ordinary and reasonable maintenance and repair costs of such parking facilities (whether on-grade or structured) based on relative
number of parking spaces utilized by Buyer and Seller. 
 10.3 Skywalk. Building A and Building B are currently connected by a
skywalk. At the end of the Due Diligence Period, Buyer shall inform Seller whether Buyer wishes to acquire the skywalk as part of Building B. If Buyer so elects, the REA shall include an easement for the benefit of Buyer for access, maintenance and
repair of the skywalk. From and after April 16, 2009, Seller and Buyer shall each have the right, at their respective discretion, to close off access to the skywalk at any time, on written notice to the other party. In addition, if Buyer
acquires the skywalk, Buyer shall have the right to remove the skywalk at any time, in compliance with all applicable laws; provided that: (i) Seller shall have the right to review and approve any plans for demolition of the skywalk, such
approval not to be unreasonably withheld, conditioned or delayed; (ii) Buyer shall cooperate with Seller to minimize disruption to Seller’s operations at the Retained Property; (iii) Buyer shall bear all costs and expenses in
connection with such demolition work, including without limitation the costs of repair of any damage to Building A and/or the Retained Property, and (iv) Buyer and Seller shall have entered into an agreement reasonably satisfactory to Seller
providing for Buyer’s access to the Retained Property for demolition purposes and an indemnity with respect to Claims arising from the demolition work. 
 10.4 Forms of Agreements. During the Due Diligence Period, Buyer and Seller shall endeavor in good faith to agree upon the forms of the REA, the EFI Lease, and any other document or instrument reasonably
necessary to carry out the intent of this Agreement. 
 10.5 Press Release/Public Disclosure. Subject to applicable law or any
listing agreement with a securities exchange or NASDAQ, (i) Buyer and Seller shall consult with each other before issuing or making, and to the extent reasonably practicable, shall provide each other with a reasonable opportunity to review and
comment upon, any press release or other public statement or filing relating to this Agreement or any of the transactions contemplated hereby and (ii) each party shall obtain the other party’s prior approval of any press release disclosing
the sale of the Property pursuant to this Agreement. 
  

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 10.6 First Offer Right. Subject to the approval by Seller’s ground lessee of the Retained
Property (the “Ground Lessee”) and in consideration of the Purchase Price, Buyer shall have a right of first offer (the “Right of First Offer”) to purchase or lease the Retained Property on the terms set
forth in this Section 10.6. Seller shall use commercially reasonable efforts to obtain the Ground Lessee’s consent to the Right of First Offer prior to expiration of the Due Diligence Period. 
 10.6.1 If Seller elects to sell or lease any portion of the Retained Property to any unaffiliated third party, prior to conducting any marketing
activity, Seller will deliver to Buyer a written offer (the “Offer”) setting forth all the material terms upon which Seller proposes to sell or lease the Retained Property and offering to sell or lease the Retained Property to Buyer
on the same terms. Buyer shall have ten (10) business days after receipt of an Offer in which to notify Seller (the “Notice”) that it would like to purchase the Property on the terms set forth in the Offer. If Buyer provides
the Notice, within a reasonable time thereafter Seller and Buyer shall enter into a mutually satisfactory purchase and sale agreement (on substantially similar terms as this Agreement to the extent such terms are relevant) with respect to the sale
of the Retained Property, or a mutually satisfactory lease of the Retained Property, and the sale or lease of the Retained Property will be completed pursuant to such agreement or lease. If Buyer does not timely deliver the Notice or rejects the
Offer or if despite reasonable good faith efforts, Buyer and Seller fail to enter into a purchase agreement or lease within forty-five (45) days after delivery of Buyer’s Notice, Seller may sell or lease the Retained Property pursuant to
Section 10.6.2. 
 10.6.2 If Buyer does not timely deliver the Notice, Seller may sell or lease the Retained Property to any
unaffiliated third party on any terms desired by Seller so long as the terms are not “materially more favorable” to the third party buyer than those of the Offer. In the event that the proposed terms of a sale or lease are “materially
more favorable” than the terms of the Offer, then Seller shall re-offer the Retained Property to Buyer on such terms and Buyer shall have five (5) business days after receipt of the written re-offer in which to deliver a Notice with
respect to the re-offer. If Buyer provides the Notice, then within a reasonable time thereafter, Seller and Buyer shall enter into a mutually satisfactory purchase and sale agreement on substantially similar terms as this Agreement to the extent
such terms are relevant) with respect to the sale of the Retained Property, or a mutually satisfactory lease, as the case may be, and the sale or lease will be completed pursuant to such agreement or lease. If Buyer does not timely deliver the
Notice or rejects the re-offer, or if despite reasonable good faith efforts, Buyer and Seller fail to enter into a purchase agreement or lease within forty-five (45) days after delivery of Buyer’s Notice, Seller may sell or lease the
Retained Property to any unaffiliated third party on terms that are not “materially more favorable” to the third party buyer than the terms of the re-offer. For the purpose of this Paragraph, “materially more favorable” means
that the aggregate value of the purchase price (or rent) and the other economic terms of the third-party purchase (or lease) is lower than ninety-five percent (95%) of the purchase price (or rent) and the other economic terms of the Offer or
re-offer, as applicable. 
 10.6.3 Notwithstanding that Buyer may have rejected or not timely delivered a Notice with respect to an
Offer or re-offer, Seller shall keep Buyer informed about Seller’s efforts to market the Retained Property, and Buyer’s Right of First Offer shall continue until the Retained Property is sold to Buyer or a third party in accordance with
Section 10.6. If, and only if, Seller sells the Retained Property to a third party in compliance with the terms of this Section 10.6, the 

  

 - 22 - 

 
Retained Property shall no longer be subject to Buyer’s Right of First Offer. The provisions of this Section 10.6 shall not apply to any sale or
lease of any portion of the Retained Property to any wholly-owned subsidiary of Seller, or to any transfer in connection with a merger, acquisition or consolidation of Seller. 
 10.6.4 Buyer’s Right of First Offer shall be subject and subordinate at all times to the lien of any mortgage, deed of trust, ground lease,
synthetic lease or other financing instruments which may now exist or hereafter be executed, for which the Retained Property or any ground leases or underlying leases, or Seller’s interest or estate in any of said items, is specified as
security. Buyer agrees to execute and deliver, upon demand by Seller and in the form reasonably requested by Seller, any additional documents evidencing the subordination of Buyer’s Right of First Offer. 
 10.6.5 The covenants set forth in Section 10.6 shall survive the Closing indefinitely until the property is sold or leased to Buyer or a
third party in accordance with Section 10.6. 
 Section 11. DEFAULT 
 11.1 Default Defined. As used in this Agreement the term “default” shall mean a breach of this Agreement that has not been cured within the time period provided in Section 11.2.

 11.2 Notice and Opportunity to Cure. If either party breaches its obligations under this Agreement, the non-breaching party
shall give the breaching party written notice of such breach , and the opportunity to cure such breach for a period of five (5) business days after delivery of the notice of breach with respect to a monetary breach, or fifteen
(15) business days after delivery of the notice of breach with respect to a non-monetary breach. 
 11.3 Buyer’s Remedies
Prior to Closing. 
 (a) If Seller is in default or breach of the Agreement (and Buyer is not then in breach of the
Agreement), such default or breach becomes actually known to Buyer prior to expiration of the Due Diligence Period and Buyer does not timely provide the Approval Notice, this Agreement shall terminate and Buyer shall be entitled to reimbursement
from Seller of the documented costs of its Due Diligence Investigation, up to a maximum amount of Three Hundred Thousand Dollars ($300,000). If Buyer timely delivers the Approval Notice, Buyer shall be deemed to have waived all defaults or breaches
by Seller actually known to Buyer prior to expiration of the Due Diligence Period. 
 (b) If, after expiration of the Due
Diligence Period and prior to the Closing, Seller is in breach or default of the Agreement (and Buyer is not then in breach of the Agreement) and such breach or default was not actually known by Buyer during the Due Diligence Period, Buyer shall be
entitled to all remedies for Seller’s breaches, whether at law or in equity (including, without limitation, terminating the Agreement, closing Escrow and recovering damages and/or seeking specific performance), subject to the limitations set
forth in Section 11.6. 
 11.4 Seller’s Remedies Prior to Closing. In the event of Buyer’s material default,
provided Seller is not then in breach of this Agreement, Seller shall have the option to terminate this Agreement and retain the Deposit as liquidated damages, pursuant to Section 2.2.5. 
  

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 11.5 Release from Escrow. Upon termination of this Agreement pursuant to Sections 11.3 and
11.4, the Title Company shall promptly return to Buyer and Seller, respectively, all documents and monies deposited by them into escrow, subject to Seller’s right to retain the Deposit pursuant to Sections 2.2.5. and 11.4. 
 11.6 Seller’s Default after Closing; Limitation of Liability. If Seller is in breach of its obligations under this Agreement,
including without limitation an uncured breach of any of Seller’s representations and warranties under this Agreement and such breach becomes known to Buyer after expiration of the Due Diligence Period, or if any other Seller breach occurs or
is discovered after the Closing of Escrow, then notwithstanding any provision to the contrary herein: (i) Seller’s maximum aggregate liability, and the maximum aggregate amount which may be awarded to and collected by Buyer (whether the
claim is brought in contract, tort, equity or otherwise) and including any amounts for attorney’s and experts’ fees and costs shall under no circumstances whatsoever exceed Six Million Eight Hundred Seventy-Five Thousand Dollars
($6,875,000) and (ii) no claim by Buyer alleging a default by Seller may be made, and Seller shall have no liability for the same, unless and until such claims, either alone or together with any other claims made by Buyer under this Agreement,
is for an aggregate amount in excess of Twenty-Five Thousand Dollars ($25,000) (“Threshold Amount”), in which event Seller’s liability respecting any final judgment concerning such claim(s) shall be for the full amount
thereof. If any such final judgment is for an amount less than the Threshold Amount, then Seller shall have no liability with respect to such claim(s). In no event shall Buyer have any claims for lost opportunity, lost profits or other damages of a
consequential, special or indirect nature. 
 Section 12. DAMAGE, DESTRUCTION AND CONDEMNATION 
 If, prior to Closing, the Property, or any part thereof shall be condemned or destroyed or damaged by fire or other casualty, Seller shall promptly so
notify Buyer. In the event of a Material Loss (hereinafter defined), Buyer shall have the option to terminate this Agreement by giving notice to Seller within fifteen (15) days of Seller’s request that the option be exercised (but no later
than Closing). If the condemnation, destruction or damage does not result in a Material Loss, then Seller and Buyer shall consummate the transaction contemplated by this Agreement notwithstanding such condemnation, destruction or damage. If the
transaction contemplated by this Agreement is consummated, Buyer shall receive all condemnation proceeds and/or proceeds of insurance under all policies of insurance applicable to the destruction or damage of the Property together with any
deductible amounts which shall be paid by Seller to Buyer, and Seller shall, at Closing, execute and deliver to Buyer all customary proofs of loss and other similar items. If Buyer elects to terminate this Agreement in accordance with this
Section 12, the Deposit shall be returned to Buyer, this Agreement shall terminate and neither party shall have any further rights or obligations under this Agreement, except as otherwise provided for in this Agreement. For purposes of this
Section 12, a “Material Loss” means condemnation, damage or destruction that is reasonably estimated to cost or be valued at (as the case may be) more than Five Million Dollars ($5,000,000.00). 
 Section 13. GENERAL 
 13.1 Notices. All
notices, consents, requests, demands, approvals, and other communications provided for in this Agreement shall be in writing and shall be effective for all purposes (a) upon receipt when personally delivered to the recipient at the
recipient’s address set forth below, (b) when received by United States mail, postage prepaid, by registered or certified mail, return receipt requested, addressed to the recipient as set forth below, or when such receipt is rejected,
(c) one (1) business day after deposit with a recognized overnight 

  

 - 24 - 

 
courier or delivery service, or (d) when received by facsimile if delivery is confirmed by receipt of a successful transmission report generated by the
sender’s facsimile machine addressed to the recipient as set forth below. If the date on which any notice to be given hereunder falls on a Saturday, Sunday or federal or state legal holiday, then such date shall automatically be extended to the
next business day immediately following such Saturday, Sunday or legal holiday. 
 The addresses for notice are: 
  

					
		  	SELLER:	  	Electronics For Imaging, Inc.
		  		  	303 Velocity Way
		  		  	Foster City, CA 94404
		  		  	Attention: Robert Curry, Sr. Corporate Counsel
		  		  	Telephone: (650) 357-3573
		  		  	Fax: (650) 357-3776
			
		  	With a copy to:	  	Bingham McCutchen LLP
		  		  	1900 University Avenue
		  		  	East Palo Alto, CA 94303
		  		  	Attention: Ellen E. Jamason
		  		  	Telephone: (650) 849-4826
		  		  	Facsimile: (650) 849-4800
			
		  	BUYER:	  	Gilead Sciences, Inc.
		  		  	333 Lakeside Drive
		  		  	Foster City, CA 94404
		  		  	Attention: Gregg H. Alton, Senior Vice President and General Counsel
		  		  	Telephone: (650) 522-5783
		  		  	Facsimile: (650) 578-5771
			
		  	With a copy to:	  	Carr McClellan Ingersoll Thompson & Horn
		  		  	216 Park Road
		  		  	Burlingame, CA 94010
		  		  	Attention: Carol B. Schwartz
		  		  	Telephone: (650) 696-2526
		  		  	Facsimile: (650) 373-3380

 Either party may change its address by written notice to the other given in the manner set forth above.

 13.2 Entire Agreement. This Agreement and the NDA contain the entire agreement and understanding between Buyer and Seller
concerning the subject matter of this Agreement and supersedes all prior agreements, terms, understandings, conditions, representations and warranties, whether written or oral, made by Buyer or Seller concerning the Property or the other matters
which are the subject of this Agreement. This Agreement has been drafted through a joint effort of the parties and, therefore, shall not be construed in favor of or against either of the parties, and shall be construed as a whole in accordance with
its fair meaning, and without regard to California Civil Code Section 1654 or similar statutes. 
  

 - 25 - 

 13.3 Amendments and Waivers. No addition to or modification of this Agreement shall be
effective unless set forth in writing and signed by the party against whom the addition or modification is sought to be enforced. The party benefited by any condition or obligation may waive the same, but such waiver shall not be enforceable by
another party unless made in writing and signed by the waiving party. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision. Any waiver granted shall apply solely to the specific
instance expressly stated. 
 13.4 Severability. The provisions of this Agreement are intended to be severable and enforced to
the maximum extent permitted by law. If for any reason any provision of this Agreement shall be held invalid, illegal or unenforceable in whole or in part in any jurisdiction, then that provision shall be ineffective only to the extent of the
invalidity, illegality or unenforceability and in that jurisdiction only, without in any manner affecting the validity, legality or enforceability of the unaffected portion and the remaining provisions in that jurisdiction or any provision of the
Agreement in any other jurisdiction. The unaffected portion and provisions of the Agreement will be enforced to the maximum extent permitted by law. 
 13.5 References. Unless otherwise indicated, (a) all section and exhibit references are to the sections and exhibits of this Agreement, and (b) all references to days are to calendar days. All
the exhibits attached hereto are incorporated herein by this reference. The headings used in this Agreement are provided for convenience only and this Agreement shall be interpreted without reference to any headings. The masculine, feminine or
neuter gender and the singular or plural number shall be deemed to include the others whenever the context so indicates or requires. 
 13.6 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed in California. 
 13.7 Time. Time is of the essence in the performance of each party’s respective obligations under this Agreement, and no notice of a
party’s intent to require strict compliance with the deadlines set forth in this Agreement is required. 
 13.8
Attorneys’ Fees. If any legal action or other proceeding is commenced to enforce or interpret any provision of, or otherwise relating to, this Agreement, the losing party shall pay the prevailing party’s actual expenses incurred
in the investigation of any claim leading to the proceeding, preparation for and participation in the proceeding, any appeal or other post judgment motion, and any action to enforce or collect the judgment including contempt, garnishment, levy,
discovery and bankruptcy. For this purpose “expenses” include, without limitation, court or other proceeding costs and experts’ and attorneys’ fees and their expenses. The phrase “prevailing party” shall mean the party
who is determined in the proceeding to have prevailed or who prevails by dismissal, default or otherwise. 
 13.9 Assignment.
Neither Buyer nor Seller shall have the right to assign its rights and obligations under this Agreement without the consent of the other, which consent shall not be unreasonably withheld; provided, however, Buyer may assign its rights to, and direct
Seller to deliver the Grant Deed to, an entity that is wholly-owned by Buyer. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 
  

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 13.10 Further Assurances. Each party, at any time before or after Closing, at its own
expense shall execute such documents and take such other actions consistent with the terms of this Agreement reasonably required to carry out the terms of this Agreement. 
 13.11 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the express
parties to this Agreement. 
 13.12 Commissions, Indemnity. Buyer’s broker in this transaction is Woodstock Development,
Inc. Seller’s broker is Jones Lang LaSalle. Each party shall be responsible for the payment of all commissions due to its respective brokers. Each party represents to the other party that the representing party has incurred no liability for any
brokerage commission or finder’s fee arising from or relating to the transactions contemplated by this Agreement, other than as set forth in this Section 13.12. Each party hereby indemnifies and agrees to protect, defend and hold harmless
the other party from and against all liability, cost, damage or expense (including, without limitation, attorneys’ fees and costs incurred in connection therewith) on account of any brokerage commission or finder’s fee which the
indemnifying party has agreed to pay or which is claimed to be due as a result of the actions of the indemnifying party. This Section 13.12 is intended to be solely for the benefit of the parties hereto and is not intended to benefit, nor may
it be relied upon by, any person or entity not a party to this Agreement. 
 13.13 Recording. Concurrently with the execution
of this Agreement, (i) Seller shall execute, in recordable form, and deliver to Title Company a Short Form or Memorandum of this Agreement (the “Memorandum”) in the form attached hereto as Exhibit N which
shall be recorded in the Official Records upon receipt by the Title Company of the Initial Deposit and (ii) Buyer shall execute, in recordable form, and deliver to Title Company a Quitclaim in the form attached hereto as Exhibit
N-1, which shall be recorded by Escrow Holder upon written instructions to Escrow Holder by both Seller and Buyer upon termination of this Agreement (i) because Buyer fails to timely delivery the Approval Notice or (ii) Buyer
elects to terminate this Agreement pursuant to any provision of this Agreement giving Buyer the right to do so or (iii) Seller elects to terminate this Agreement pursuant to any provisions of this Agreement giving Seller the right to do so.
Notwithstanding the foregoing provisions of this Section 13.13, Buyer shall not be obligated to instruct Escrow Holder to record the Quitclaim if Buyer asserts that there is a breach or default by Seller under this Agreement with respect to
which Buyer has the remedy of specific performance of Seller’s obligation to convey title to the Property to Buyer. 
 13.14
Transaction Expenses. Except as otherwise provided in this Agreement, each party shall pay its own fees and expenses incident to the negotiation, preparation, execution, authorization (including any necessary meetings or actions) or delivery
of this Agreement and in consummating the transactions contemplated by this Agreement, including, without limitation, the fees and expenses of its attorneys, accountants and other advisors. 
 13.15 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Signature pages may be detached from the counterparts and attached to a single copy of this Agreement to physically form one document. Any copies bearing faxed or photocopied signatures shall be
valid, binding and admissible as though original. 
 13.16 Survival. The provisions of this Agreement shall not merge with the
delivery of the Deed, but shall survive the Closing indefinitely, except that the Representations and Warranties of Seller in Section 5 above shall terminate at 11:59 p.m. Pacific Time on the Survival Expiration Date. 
  

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 Section 14. LIST OF EXHIBITS AND SCHEDULES 
  

			
	 Exhibit
	  	 Description

		
	Exhibit A-1	  	Description of Seller’s Property
		
	Exhibit A-2	  	Assessor’s Parcel Map
		
	Exhibit A-3	  	Description of Property Being Sold
		
	Exhibit B	  	Excluded Personal Property
		
	Exhibit C	  	Leases
		
	Exhibit D	  	Contracts and Agreements
		
	Exhibits E1 and E2	  	Form of Tenant Estoppel Certificates
		
	Exhibits F1 and F2	  	Form of Seller Estoppel Certificates
		
	Exhibit G	  	Assignment of Development Agreement
		
	Exhibit H	  	Grant Deed
		
	Exhibit I	  	Bill of Sale
		
	Exhibit J	  	Lease Assignment
		
	Exhibit K	  	Assignment of Contracts and General Assignment
		
	Exhibit L	  	Form of Tenant Notice Letter
		
	Exhibit M	  	Intentionally omitted.
		
	Exhibit N	  	Memorandum of Agreement
		
	Exhibit N-1	  	Quitclaim Deed
		
	Schedule 5.1	  	Authority
		
	Schedule 5.2	  	No Conflict
		
	Schedule 5.5	  	Legal Compliance
		
	Schedule 5.7	  	Government Action
		
	Schedule 5.8	  	Liens

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

 

									
	BUYER:	 		 	SELLER:
			
	GILEAD SCIENCES, INC.,	 		 	ELECTRONICS FOR IMAGING, INC.,
	A Delaware Corporation	 		 	A Delaware Corporation
					
	By:	 	/s/ John Milligan	 		 	By:	 	/s/ John Ritchie
	Name:	 	John Milligan	 		 	Name:	 	John Ritchie
	Its:	 	President & Chief Operating Officer	 		 	Its:	 	Chief Financial Officer

  

 - 28 - 

 Acceptance by Title Company 
 The Title Company acknowledges receipt of the foregoing Agreement and accepts the instructions contained herein. 
 Dated: October 23, 2008  
  

			
		
	By:	 	First American Title Insurance Company
	Name:	 	Karen Matsunaga
	Title:	 	Senior Commercial Escrow Officer

  

 - 29 - 

 EXECUTION COPY 
 PURCHASE AND SALE AGREEMENT AND 
 JOINT ESCROW INSTRUCTIONS 
 AMENDMENT NO. 2 
 This Purchase and
Sale Agreement and Joint Escrow Instructions Amendment No. 2 (the “Amendment No. 2”) is made as of December 18, 2008 (the “Effective Date”) by and between Electronics For Imaging, Inc., a Delaware
corporation (“Seller”), and Gilead Sciences, Inc., a Delaware corporation (“Buyer”), in the following factual context: 
 A. Buyer and Seller entered into that certain Purchase and Sale Agreement and Joint Escrow Instructions, dated as of October 23, 2008 (the “Original Agreement”), and Amendment No. 1 thereto
(“Amendment No. 1”, and together with the Original Agreement, the “Agreement”) pursuant to which Buyer agreed to purchase from Seller, and Seller agreed to sell to Buyer that certain Property (as more
particularly defined in the Agreement). 
 B. Buyer and Seller wish to amend the Agreement on the terms and conditions set forth herein:

 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. Amendment to Section 3.1.1. Section 3.1.1 of the
Agreement is hereby amended and restated in its entirety to read as follows: “The “Due Diligence Period” shall mean the period beginning on the Effective Date and ending at 5:00p.m. Pacific Time on January 13,
2009.” 
 2. Due Diligence Documents. At Closing or as soon as practicable thereafter, Seller shall deliver to Buyer copies of all Due Diligence
Documents in Seller’s possession that have not previously been delivered to Buyer, in hard copy or electronic form. Buyer and Seller shall share equally the cost of making the copies of the Due Diligence Documents. 
 3. Closing Date. The last sentence of Section 9.1 of the Agreement is hereby amended and restated in its entirety to read as follows: “Buyer shall give
Seller at least ten (10) business days’ prior written notice of the Closing Date.” 
 4. Effect on the Agreement. The Agreement shall
continue in full force and effect as amended by this Amendment No. 2, and this Amendment No. 2, together with the Agreement as amended hereby, constitutes the entire agreement of the parties with respect to the matters set forth herein and
there are no other agreements, commitments or understandings among the parties with respect to the matters set forth herein. In the event of any conflict or inconsistency between the provisions of this Amendment No. 2 and the provisions of the
Agreement, the 

 
provisions of this Amendment No. 2 shall govern and control. Each and every other term, condition, covenant, representation, warranty and provision set
forth in the Agreement shall remain in full force and effect in accordance with the terms of the Agreement. From and after the date hereof, all references in the Agreement to the “Agreement” shall be deemed to mean the Agreement as amended
by Amendment No. 1 and this Amendment No. 2. 
 5. Counterparts. This Amendment No. 2 may be executed in any number of counterparts,
each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
 6. Defined Terms. Capitalized
terms not defined herein shall have the meaning ascribed to such term in the Agreement. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 
  

									
	BUYER:	 		 	SELLER:
			
	GILEAD SCIENCES, INC.,	 		 	ELECTRONICS FOR IMAGING, INC.,
	A Delaware Corporation	 		 	A Delaware Corporation
					
	By:	 	/s/ John Milligan	 		 	By:	 	/s/ John Ritchie
	Name:	 	John Milligan	 		 	Name:	 	John Ritchie
	Its:	 	President & Chief Operating Officer	 		 	Its:	 	Chief Financial OfficerSupplemental Savings Plan, as amended and restated

 Exhibit 10.18 
 Teradyne, Inc. 
 Supplemental Savings Plan 
 (Restated November 2008) 

 TABLE OF CONTENTS 
  

					
	PURPOSE AND EFFECTIVE DATE	  	
		
	ARTICLE 1 - DEFINITIONS	  	1-1
	1.1	  	Account	  	1-1
	1.2	  	Administrator	  	1-1
	1.3	  	Beneficiary	  	1-1
	1.4	  	Change in Control	  	1-1
	1.5	  	Code	  	1-1
	1.6	  	Compensation	  	1-1
	1.7	  	Disability	  	1-1
	1.8	  	Eligible Employee	  	1-2
	1.9	  	Employer	  	1-2
	1.10	  	ERISA	  	1-2
	1.11	  	Grandfathered Account	  	1-2
	1.12	  	Key Employee	  	1-2
	1.13	  	Matchable Compensation	  	1-2
	1.14	  	Matching Contribution	  	1-2
	1.15	  	Participant	  	1-2
	1.16	  	Plan	  	1-2
	1.17	  	Plan Sponsor	  	1-2
	1.18	  	Plan Year	  	1-2
	1.19	  	Related Employer	  	1-3
	1.20	  	Retirement	  	1-3
	1.21	  	Savings Plan	  	1-3
	1.22	  	Separation from Service	  	1-3
	1.23	  	Unforeseeable Emergency	  	1-3
	1.24	  	Valuation Date	  	1-3
	1.25	  	VC Award	  	1-3
	1.26	  	Vesting Service	  	1-3
		
	 ARTICLE 2 - PARTICIPATION
	  	2-1
	2.1	  	Participation	  	2-1
	2.2	  	Termination of Participation	  	2-1
		
	 ARTICLE 3 - PARTICIPANT ELECTIONS
	  	3-1
	3.1	  	Deferral Agreement	  	3-1
	3.2	  	Election to Defer Compensation	  	3-1
	3.3	  	Election to Defer VC Award	  	3-1
	3.4	  	Timing of Election to Defer	  	3-1
	3.5	  	Election of Distribution Event	  	3-2
	3.6	  	Transitional Rule	  	3-2

  

 i 

					
	 ARTICLE 4 - MATCHING CONTRIBUTIONS
	  	4-1
	4.1	  	General Rules	  	4-1
	4.2	  	Rate of Matching Contributions	  	4-1
		
	 ARTICLE 5 - PARTICIPANT ACCOUNTS
	  	5-1
	5.1	  	Establishment of Account	  	5-1
	5.2	  	Credits to Account	  	5-1
	5.3	  	Investment Options	  	5-1
	5.4	  	Adjustment of Accounts	  	5-1
		
	 ARTICLE 6 - RIGHT TO BENEFITS
	  	6-1
	6.1	  	Vesting	  	6-1
	6.2	  	Death	  	6-1
		
	 ARTICLE 7 - DISTRIBUTION OF BENEFITS
	  	7-1
	7.1	  	Amount of Benefits	  	7-1
	7.2	  	Method and Timing of Distributions from Account	  	7-1
	7.3	  	Distributions and Withdrawals from Grandfathered Account	  	7-1
	7.4	  	Cashouts of Amounts Not Exceeding $50,000	  	7-1
	7.5	  	Permissible Delays in Payment	  	7-1
	7.6	  	Key Employees	  	7-2
	7.7	  	Unforeseeable Emergency	  	7-2
		
	 ARTICLE 8 - AMENDMENT AND TERMINATION
	  	8-1
	8.1	  	Amendment by Employer	  	8-1
	8.2	  	Retroactive Amendments	  	8-1
	8.3	  	Plan Termination	  	8-1
	8.4	  	Distribution Upon Termination of the Plan	  	8-2
	8.5	  	Change in Control	  	8-2
		
	 ARTICLE 9 - THE TRUST
	  	9-1
	9.1	  	Establishment of Trust	  	9-1
	9.2	  	Investment of Trust Funds	  	9-1
		
	 ARTICLE 10 - PLAN ADMINISTRATION
	  	10-1
	10.1	  	Powers and Responsibilities of the Administrator	  	10-1
	10.2	  	Claims and Review Procedures	  	10-1
	10.3	  	Plan Administrative Costs	  	10-2

  

 ii 

					
	 ARTICLE 11 - MISCELLANEOUS
	  	11-1
	11.1	  	Unsecured General Creditor of the Employer	  	11-1
	11.2	  	Employer’s Liability	  	11-1
	11.3	  	Limitation of Rights	  	11-1
	11.4	  	Anti-alienation of Benefits	  	11-1
	11.5	  	Facility of Payment	  	11-1
	11.6	  	Notices	  	11-2
	11.7	  	Tax Withholding	  	11-2
	11.8	  	Indemnification	  	11-2
	11.9	  	Permitted Acceleration of Payment	  	11-2
	11.10	  	Illegality of Particular Provision	  	11-3
	11.11	  	Governing Law	  	11-3

  

 iii 

 Exhibit 10.18 
 PURPOSE AND EFFECTIVE DATE 
 Teradyne, Inc. established the Teradyne, Inc. Supplemental Savings Plan (the
“Plan”) effective as of December 1, 1994 for the benefit of a select group of its highly paid employees. The Plan was subsequently amended by the First Amendment, which was generally effective as of January 1, 2002. The Plan has
been operated in compliance with Code Section 409A since January 1, 2005 with respect to amounts subject to Code Section 409A. The last amendment and restatement was intended to memorialize any changes in operation in the Plan as of
January 1, 2005 as required by Code Section 409A. This amendment and restatement clarifies certain provisions and makes additional changes as required or permitted by Code Section 409A, including the extension of the transition
election period as described in Section 3.6. 
 Teradyne, Inc. adopted this written amendment and restatement of the Plan on November 3, 2008 to
apply to elective and non-elective amounts deferred on or after January 1, 2005 and for amounts deferred before January 1, 2005 that were not both earned and vested on December 31, 2004. The Plan as amended and restated is intended to
conform with the requirements of Code Section 409A and shall be administered in a manner consistent therewith. All amounts deferred under the Plan that are subject to Code Section 409A shall be separately accounted for and administered
within each Participant’s Account. All other changes are effective as otherwise provided herein. 
 Amounts attributable to a Participant’s vested
account under the Plan on December 31, 2004 shall be separately accounted for in each Participant’s Grandfathered Account. Elections made with respect to amounts credited to a Participant’s Grandfathered Account and amounts payable
from a Participant’s Grandfathered Account shall be subject to the provisions of the Plan as in effect on October 3, 2004 and the law as in effect prior to Code Section 409A. 
 The purpose of the Plan is to permit eligible employees to elect to defer receipt of compensation otherwise payable currently and to enable the employer to credit
eligible employees with matching contributions. 
 The Plan is intended to be a “plan which is unfunded and is maintained by an employer primarily for
the purpose of providing deferred compensation for a select group of management or highly compensated employees” within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA and shall be administered in a manner consistent therewith.

 ARTICLE 1 – DEFINITIONS 
 Pronouns used in the Plan are in the masculine gender but include the feminine gender unless the context clearly indicates otherwise. Wherever used herein, the following terms have the meanings set forth below, unless
a different meaning is clearly required by the context: 
  

	1.1	“Account” means an account established for the purpose of recording amounts credited on behalf of a Participant for periods after December 31, 2004 and
unvested amounts credited for periods prior to January 1, 2005 that are subject to Code Section 409A plus any income, expenses, gains, losses or distributions included thereon. The Account shall be a bookkeeping entry only and shall be
utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant pursuant to the Plan. Vested amounts credited on behalf of the Participant under the Plan attributable to periods prior to January 1,
2005 that are not subject to Code Section 409A are accounted for separately in the Participant’s Grandfathered Account. 

  

	1.2	“Administrator” means the Plan Sponsor, or such other person or persons formally or informally designated by the Plan Sponsor to be responsible for the
administration of the Plan. 

  

	1.3	“Beneficiary” means the persons, trusts, estates or other entities entitled under Section 6.2 to receive benefits under the Plan upon the death of a
Participant. 

  

	1.4	“Change in Control” means the occurrence of an event involving the Employer that is described in Section 8.5. 

  

	1.5	“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

  

	1.6	“Compensation” means the general definition of ‘Compensation’ in the Savings Plan before the beginning of each calendar year except that the limitation
contained in Code Section 401(a)(17) shall be disregarded and a VC Award (as well as any profit sharing award) shall not be included. Only amounts in excess of the Compensation limit announced each year during the annual enrollment period by
the Plan Sponsor shall be considered. 

  

	1.7	“Disability” means “disability” as defined under the Savings Plan on the date of the Participant’s Separation from Service. 

 

 1-1 

	1.8	“Eligible Employee” means an employee of the Employer who is determined by the Employer to be a member of a select group of management or highly compensated
employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA and who is designated by the Employer as an Eligible Employee for purposes of the Plan. 

  

	1.9	“Employer” means the Plan Sponsor and any other entity which is authorized by the Plan Sponsor to participate in and, in fact, does adopt the Plan. The term
“Employer” shall in each instance that it appears in the Plan refer to any one of the foregoing entities and in no case shall refer to the entities collectively or to more than one such entity. 

  

	1.10	“ERISA” means the Employee Retirement Income Security Act of 1974, as from time to time amended. 

  

	1.11	“Grandfathered Account” means an account established for the purpose of recording earned and vested amounts credited on behalf of a Participant under the Plan for
periods prior to January 1, 2005 and any income, expenses, gains, losses or distributions included thereon. 

  

	1.12	“Key Employee” means a ‘specified employee’ within the meaning of Treas. Reg. § 1.409A-1(i) who satisfies the conditions of Section 7.7.

  

	1.13	“Matchable Compensation” means, for purposes of determining the Matching Contribution attributable to a VC Award deferral, the amount of the Participant’s VC
Award deferral for the Plan Year. For purposes of determining the Matching Contribution attributable to a Compensation deferral, Matchable Compensation means the Participant’s Compensation in excess of the Code Section 401(a)(17) limit for
the Plan Year (rather than the special Compensation limit announced for the Plan Year by the Plan Sponsor) plus the VC Award as reduced by the VC Award deferral. 

  

	1.14	“Matching Contribution” means a contribution credited by the Employer pursuant to Article 4. 

  

	1.15	“Participant” means any Eligible Employee who participates in the Plan in accordance with Article 2. 

  

	1.16	“Plan” means the Teradyne, Inc. Supplemental Savings Plan as set forth herein and as it may be amended from time to time. 

  

	1.17	“Plan Sponsor” means Teradyne, Inc. 

  

	 1.18
	 “Plan Year” means the 12-consecutive month period beginning January 1st and ending December 31st.

  

 1-2 

	1.19	“Related Employer” means the Employer and (a) any corporation that is a member of a controlled group of corporations as defined in Section 414(b) of the
Code that includes the Employer, and (b) any trade or business that is under common control as defined in Section 414(c) of the Code that includes the Employer. 

  

	1.20	“Retirement” means a Participant’s Separation from Service that occurs on or after the date the Participant: (a) attains age sixty-five (65) and has
at least five (5) years of Vesting Service or (b) attains age fifty-five (55) with at least ten (10) years of Vesting Service. 

  

	1.21	“Savings Plan” means the Teradyne, Inc. Savings Plan as in effect on January 1, 2005 and as it may thereafter be amended from time to time.

  

	1.22	“Separation from Service” means the date that the Participant dies, retires or otherwise has a termination of employment with respect to all entities comprising the
Related Employer, provided that such termination of employment is a “separation from service” under Treas. Reg. § 1.409A-1(h). A Separation from Service does not occur if the Participant is on military leave, sick leave or other bona
fide leave of absence, if the period of leave does not exceed six months or such longer period during which the Participant’s right to reemployment is provided by statute or contract. If the period of leave exceeds six months and the
Participant’s right to reemployment is not provided either by statute or contract, a Separation from Service will be deemed to have occurred on the first day following the six month period. 

  

	1.23	“Unforeseeable Emergency” means a severe financial hardship of the Participant resulting from an illness or accident of the Participant, the Participant’s
spouse, or the Participant’s dependent (as defined in Code Section 152(a)); loss of the Participant’s property due to casualty; or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant, which hardship meets the standards under Treas. Reg. § 1.409A-3(i)(3). 

  

	1.24	“Valuation Date” means each business day of the Plan Year and such other date(s) as designated by the Employer. 

  

	1.25	“VC Award” means the amount of incentive remuneration payable by the Employer to a Participant under the Teradyne, Inc. Variable Compensation Plan as modified and
incorporated into the Teradyne, Inc. 2006 Equity and Cash Compensation Incentive Plan, each as amended from time to time. 

  

	1.26	“Vesting Service” has the meaning such term has under the Savings Plan. 

  

 1-3 

 ARTICLE 2 – PARTICIPATION 
  

	2.1	Participation. Participation in the Plan is limited to Eligible Employees. The Employer shall notify an employee of his status as an Eligible Employee at such time and in
such manner as the Employer shall determine. Each Eligible Employee shall become a Participant in the Plan by executing a deferral agreement in accordance with the provisions of Article 3. An Eligible Employee who has become a Participant remains
eligible to participate until his participation terminates in accordance with Section 2.2 

  

	2.2	Termination of Participation. The Administrator may terminate a Participant’s participation in the Plan but any such termination at the discretion of the Administrator
shall not take effect until the first day of the next Plan Year. Upon any termination of participation at the discretion of the Administrator, a Participant’s deferrals shall cease but the provisions of Article 7 shall continue to apply.

  

 2-1 

 ARTICLE 3 – PARTICIPANT ELECTIONS 
  

	3.1.	Deferral Agreement. Each Eligible Employee may elect to defer amounts otherwise payable to him currently for the Plan Year by executing a deferral agreement in accordance
with rules and procedures established by the Administrator and the provisions of this Article 3. The deferral agreement must separately specify for each discrete type of compensation (i.e., Compensation and VC Award) the whole number percentage that
the Participant elects to defer and the timing of payment of the deferred amount. 

 A new deferral agreement must be timely
executed for each Plan Year during which the Eligible Employee elects to defer compensation. An Eligible Employee who does not timely execute a deferral agreement shall be deemed to have elected zero deferrals for such Plan Year. 
 A deferral agreement may be changed or revoked at any time during the respective periods specified in Section 3.4. A deferral agreement becomes
irrevocable at the close of the respective period and remains in effect throughout the applicable Plan Year even if the Eligible Employee transfers from one Employer to another Employer. 
  

	3.2	Election to Defer Compensation. An Eligible Employee may elect to defer Compensation (in 1% increments) from 1% to the maximum percentage established for the Plan Year by the
Employer. The maximum percentage shall be communicated annually to Eligible Employees prior to the annual election period described in Section 3.4 for the relevant Plan Year, but in no event shall the maximum percentage under this
Section 3.2 exceed 85% of the Eligible Employee’s base salary for the Plan Year. 

  

	3.3.	Election to Defer VC Award. An Eligible Employee may elect to defer (in 1% increments) from 1% to 85% of his VC Award for a Plan Year. 

  

	3.4	Timing of Election to Defer. Each Eligible Employee who desires to defer Compensation otherwise payable during a Plan Year must execute a deferral agreement within the period
preceding the Plan Year specified by the Administrator. Each Eligible Employee who desires to defer a VC Award must execute a deferral agreement within the period preceding the Plan Year during which the VC Award is earned that is specified by the
Administrator. Except that, only if the Administrator so decides, if the VC Award can be treated as performance based compensation” which is based upon services performed over a period of at least twelve consecutive months as set forth in
Treas. Reg. § 1.409A-2(a)(8), such deferral agreement must be executed no later than the date established for this purpose by the Administrator which, in no event, shall be after the date which is six months before the end of the performance
period in which the VC Award is earned. 

  

 3-1 

 Except as otherwise provided below, an employee who is first classified or designated as an Eligible
Employee during a Plan Year may elect to defer Compensation and/or VC Award otherwise payable during the remainder of such Plan Year in accordance with the rules of this Section 3.4 by executing a deferral agreement within the thirty
(30) day beginning on the date the employee is classified or designated as an Eligible Employee. If a VC Award is based on a specific performance period that begins before the Eligible Employee executes his deferral agreement, the election will
be deemed to apply to that portion of the VC Award equal to the total amount of the VC Award for the performance period multiplied by the ratio of the number of days remaining in the performance period after the election to the total number of days
in the performance period. The rules of this paragraph shall not apply if the Eligible Employee has ever participated or is participating in a “an account balance plan” within the meaning of Treas. Reg. §1.409A-1(c) sponsored by the
Employer. 
  

	3.5	Election of Distribution Event. At the time an Eligible Employee completes a deferral agreement, the Eligible Employee must separately elect for each type of remuneration
being electively deferred (i.e., for Compensation and for VC Award), a distribution event that will trigger payment of the related deferred remuneration which will be effective unless the provisions of Section 7.4 are triggered. Matching
Contributions credited to a Participant’s Account during a Plan Year shall automatically be paid following the distribution event selected by the Participant for the related deferred remuneration because of which the Matching Contribution was
credited. 

 The permissible distribution events are Separation from Service and a specified future date, which date will only
be effective as a distribution event if it is after the Eligible Employee’s Matching Contributions are vested under Article 6. Payment will occur within 90 days following the distribution event. If not election is made in accordance with this
Section 3.5 the Eligible Employee will be deemed to have elected a distribution upon Separation from Service. 
 All distributions will
be made in a single lump sum. 
  

	3.6	Transitional Rule. The following transitional rule shall apply during calendar year 2008. It will be implemented in accordance with rules and procedures established by the
Administrator. 

 With respect to calendar year 2008, a Participant may make new distribution elections with respect to amounts
subject to Code Section 409A if the elections are made no later than December 31, 2008, except that the Participant cannot in 2008 change distribution elections with respect to amounts that would otherwise have become payable in 2008 or
cause payments to be made in 2008. The new distribution elections may apply to amounts deferred before the date of the election and can be made without 

  

 3-2 

 
regard to Code Sections 409A(3) and (4) and any inconsistent provisions in the Plan to the contrary. A Participant who fails to make a new distribution
election in accordance with this Section 3.6 with respect to an amount for which a valid election under Code Section 409A has not otherwise been made hereunder will be deemed to have elected a lump sum distribution upon his Separation from
Service. 
  

 3-3 

 ARTICLE 4 – MATCHING CONTRIBUTIONS 
  

	4.1	General Rules. For each Plan Year, the Employer shall credit Matching Contributions at the rate specified in Section 4.2 to the Account of each Participant who makes
deferrals during the Plan Year and otherwise satisfies the requirements of this Section 4.1. Matching Contributions shall only be made on behalf of a Participant who is employed by the Employer on the last day of the Plan Year, provided,
however, that a Participant whose Separation from Service occurs before the last day of the Plan Year because of death, Disability, layoff or Retirement shall be treated, for this purpose, as if employed on the last day of the Plan Year.

  

	4.2	Rate of Matching Contributions Each Participant who (a) was actively employed by the Employer on October 29, 1999 and (b) elected to continue accruing benefits
under the Retirement Plan for Employees of Teradyne, Inc. shall be eligible to be credited with (i) Matching Contributions equal to fifty percent (50%) of the Participant’s deferrals not exceeding six percent (6%) of the
Participant’s Matchable Compensation and (ii) an additional Matching Contribution, in the discretion of the Employer, of up to an additional 50% of Participant deferrals not exceeding six percent (6%) of Matchable Compensation. Each
other Participant shall be eligible to be credited with (i) Matching Contributions equal to one hundred percent (100%) of the Participant’s deferrals not exceeding five percent (5%) of the Participant’s Matchable
Compensation and (ii) an additional Matching Contribution, in the discretion of the Employer, of up to an additional 50% of Participant deferrals not exceeding five percent (5%) of Matchable Compensation. 

 The amount of Matching Contributions credited to the Account of each eligible Participant shall be calculated separately with respect to his Compensation
deferrals and separately with respect to his VC Award deferrals and shall equal the sum of the amounts so determined. 
  

 4-1 

 ARTICLE 5 – PARTICIPANT ACCOUNTS 
  

	5.1	Establishment of Account. For accounting and computational purposes only, the Administrator will establish and maintain an Account for each Participant which will reflect the
credits made pursuant to Section 5.2 and the adjustments provided in Section 5.4. The Administrator will establish and maintain such other records and accounts, including Grandfathered Accounts, as it decides in its discretion to be
reasonably required or appropriate to discharge its duties under the Plan. 

  

	5.2	Credits to Account. A Participant’s Account will be credited for each Plan Year with (a) the amount of Compensation and VC Award he elects to defer in accordance
with the provisions of Article 3 at the time the amount subject to the deferral election would otherwise have been paid to him but for his election to defer; and (b) the amount of Matching Contributions the Employer credits on his behalf
pursuant to Article 4 as soon as administratively possible following the Plan Year. 

  

	5.3	Investment Options. The amount in a Participant’s Account and Grandfathered Account, if any, shall be treated as invested in the investment options designated for this
purpose by the Administrator. Nothing in this Article 5 requires the Employer to make any actual investments. 

  

	5.4	Adjustment of Accounts. The amount in a Participant’s Account and Grandfathered Account, if any, shall be adjusted for hypothetical investment earnings or losses in an
amount equal to the gains or losses reported for the investment options selected by the Participant or Beneficiary (or by the Administrator if no selections are made by Participant or Beneficiary) from among the investment options provided in
Section 5.3. A Participant may, in accordance with rules and procedures established by the Administrator and consistent with Code Section 409A, change the investments to be used for the purpose of calculating future hypothetical investment
adjustments to the Participant’s Account and/or Grandfathered Account or to future credits to the Account under Section 5.2 effective as of the Valuation Date coincident with or next following notice to the Administrator. The Account and
Grandfathered Account of each Participant shall be adjusted as of each Valuation Date to reflect: (a) the hypothetical investment earnings and/or losses described above; (b) amounts credited pursuant to Section 5.2; and
(c) distributions or withdrawals. 

  

 5-1 

 ARTICLE 6 – RIGHT TO BENEFITS 
  

	6.1	Vesting. A Participant, at all times, has a 100% nonforfeitable interest in the amounts credited to his Account attributable to Participant deferrals made in accordance with
Article 3. A Participant shall fully vest in the amounts credited to his Account attributable to Matching Contributions upon his death while in the employ of the Employer, or upon Disability. Prior to January 1, 2007, a Participant shall vest
in the amounts credited to his Account attributable to Matching Contributions upon the completion of five years of Vesting Service. Beginning January 1, 2007, a Participant shall vest in the amounts credited to his Account attributable to
Matching Contributions at the rate of 25% per year of Vesting Service taking into account all such Vesting Service with which such Participant is credited under the Savings Plan. A Participant, at all times, has a 100% nonforfeitable interest
in all amounts credited to his Grandfathered Account. 

  

	6.2	Death. The balance or remaining balance credited to a Participant’s Account at the time of his death shall be paid to his Beneficiary in the form of a single lump sum
payment. If multiple Beneficiaries have been designated each shall receive his specified portion of the Account in the form of a single lump sum payment. A Participant’s Beneficiary or Beneficiaries shall be the party or parties entitled to
receive benefits under the Savings Plan upon the Participant’s death. Actual payment will be made within 90 days following the date of death. 

 A copy of the death notice or other sufficient documentation must be filed with and approved by the Administrator. If upon the death of the Participant there is, in the opinion of the Administrator, no designated
Beneficiary for part or all of the Participant’s Account, such amount will be paid to his estate in a single lump sum payment (such estate shall be deemed to be the Beneficiary for purposes of the Plan). 
 The balance or remaining balance credited to a Participant’s Grandfathered Account shall be paid in accordance with the provisions of the Plan as in
effect on October 3, 2004. 
  

 6-1 

 ARTICLE 7 – DISTRIBUTION OF BENEFITS 
  

	7.1	Amount of Benefits. The vested amount credited to a Participant’s Account as determined under Articles 5 and 6 and the amount credited to his Grandfathered Account shall
determine and constitute the basis for the value of benefits payable to or on behalf of the Participant under the Plan. 

  

	7.2	Method and Timing of Distributions from Account. Subject to Sections 7.4 and 7.6, distributions under the Plan shall be made following the occurrence of the distribution
event specified by the Participant in accordance with the provisions of Article 3. At least twelve months before a scheduled distribution event, a Participant may elect, in accordance with rules and procedures established by the Administrator, to
delay the date of payment for a minimum period of sixty months from the originally scheduled payment date. Such election will be irrevocable after the last permissible date for making such a subsequent deferral election. 

  

	7.3	Distributions and Withdrawals from Grandfathered Account. Notwithstanding any other provision of this Article 7, distributions and withdrawals from a Participant’s
Grandfathered Account shall be made only in accordance with the provisions of the Plan as in effect on October 3, 2004. 

  

	7.4	Cashouts of Small Amounts. If the aggregate amount credited to the Participant’s Account does not exceed the dollar limit under Section 402(g)(1)(B) of the Code at
the time he incurs a Separation from Service, the Employer may pay such amount to the Participant in a single lump sum payment regardless of whether the Participant had made different elections of distribution events or forms of payment as to the
amount credited to his Account, except as otherwise provided in this Section 7.4, provided that such payment means that the Participant will retain no benefits under any other account balance plans aggregated with the Plan under Treas. Reg.
§ 1.409A-1(c)(2)). Subject to Section 7.6, actual payment will occur within 90 days following Separation from Service. 

  

	7.5	 Permissible Delays in Payment. The Employer may delay distributions beyond the date payment would otherwise occur in accordance with the provisions of
Articles 6 and 7 in any of the following circumstances. The Employer may delay payment if it reasonably anticipates that its deduction with respect to such payment would not be permitted due to the application of Code Section 162(m). Payment
must be made at the earliest date at which the Employer reasonably anticipates or should reasonably anticipate that the deduction of the payment amount will not be barred by Code Section 162(m) or, if later, during the period beginning on the
day in which the Participant incurs a Separation from Service and ending on the later of the last day of the taxable year of the Employer in which the Participant separates from service 

  

 7-1 

	 	 
or the 15th day of the third month following the
Participant’s Separation from Service. Additionally, where any scheduled payment to a Participant in the Employer’s taxable year is delayed in accordance with this paragraph, all scheduled payments to a Participant that are subject to
Section 409A and could be delayed in accordance with this paragraph must also be delayed. The Employer may also delay payment if it reasonably anticipates that the making of the payment will violate federal securities laws or other applicable
law (not including penalties under the Code) provided payment is made at the earliest date on which the Employer reasonably anticipates that the making of the payment will not cause such violation. The Employer also reserves the right to delay
payment upon such other events and conditions as the Secretary of the Treasury may prescribe in generally applicable guidance published in the Internal Revenue Bulletin. With respect to the above permissible delayed payments, the Employer will treat
all payments to similarly situated Participants on a reasonably consistent basis. 

  

	7.6	Key Employees. In no event shall a distribution of a Participant’s Account be made to a Key Employee on account of his Separation from Service before the date which is
six months after the date of his Separation from Service with the Employer (or the date of his death, if earlier). An employee who is determined to be a Key Employee at any time during the twelve-month period ending on date as of which the Employer
annually identifies Key Employees (the ‘Identification Date’) shall be treated as a Key Employee for purposes of the six-month delay in distributions set forth in this Section 7.6 for the twelve-month period beginning on the Specified
Employee Effective Date under Treas. Reg. §1.409A-1(i)(4). 

  

	7.7	Unforeseeable Emergency. A Participant may request a distribution prior to the date he or she selected in Section 3 due to an Unforeseeable Emergency. The request must
be in writing and must be submitted to the Administrator along with evidence that the circumstances constitute an Unforeseeable Emergency. The Administrator has the discretion to require whatever evidence it deems necessary to determine whether a
distribution is warranted. Whether a Participant has incurred an Unforeseeable Emergency will be determined by the Administrator on the basis of the relevant facts and circumstances in its sole discretion, but in no event, will an Unforeseeable
Emergency be deemed to exist if the hardship can be relieved: (a) through reimbursement or compensation by insurance or otherwise, (b) by liquidation of the Participant’s assets to the extent such liquidation would not itself cause
severe financial hardship, or (c) by cessation of deferrals under the Plan. A distribution due to an Unforeseeable Emergency must be limited to the amount reasonably necessary to satisfy the emergency need and may include any amounts necessary
to pay any federal, state, local, or foreign income taxes or penalties reasonably anticipated to result from the distribution. The distribution will be made in the form of a single lump sum cash payment. A Participant’s deferral elections for
the remainder of the Plan Year will be cancelled upon a withdrawal due to Unforeseeable Emergency. 

  

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 ARTICLE 8 – AMENDMENT AND TERMINATION 
  

	8.1	Amendment by Employer. The Plan Sponsor reserves the right to amend the Plan (for itself and each Employer) through action of its Board of Directors or any committee of the
Board of Directors. An amendment must be in writing and executed by an officer authorized to take such action. Each amendment shall be effective when approved by the Board of Directors or any committee of the Board of Directors in its resolution. No
amendment can directly or indirectly deprive any current or former Participant or Beneficiary of all or any portion of his Account or Grandfathered Account which had accrued and vested prior to the amendment. 

  

	8.2	Retroactive Amendments. An amendment made by the Plan Sponsor in accordance with Section 8.1 may be made effective on a date prior to the first day of the Plan Year in
which it is adopted if such amendment is necessary or appropriate to enable the Plan to satisfy the applicable requirements of the Code or ERISA or to conform the Plan to any change in federal law or to any regulations or ruling thereunder. Any
retroactive amendment by the Plan Sponsor shall be subject to the provisions of Section 8.1. 

  

	8.3	Plan Termination. The Plan Sponsor reserves the right to terminate the Plan and distribute all amounts credited to all Participant, accounts in a single lump sum, in such
manner permitted by and subject to such conditions and limitations as imposed by Section 409A including, without limitation, the Employer’s termination and liquidation of the Plan in accordance with the following (modified as necessary to
comply with Treas. Reg § 1.409A-3(j)(4)(ix)): 

 (a) Corporate Dissolution or Bankruptcy: within 12 months following a
corporate dissolution of the Employer taxed under Section 331 of the Code or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A) provided that the amounts deferred under the Plan are included in each
Participant’s gross income in the latest of the following years (or, if earlier, the taxable year in which the amount is actually or constructively received): (i) the calendar year in which the Plan terminates; (ii) the first calendar
year in which the amounts are no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the distribution is administratively practicable; 
 (b) Termination in Connection with a Change in Control Event: pursuant to irrevocable action taken by the Employer within 30 days preceding or 12 months
after a change in the ownership or effective control of the Employer, or in the ownership of a substantial portion of the assets of the Employer as described in Section 409A(2)(A)(v) of the Code, provided that all distributions with respect to
Participants 

  

 8-1 

 
subject to the change in control event are made no later than 12 months following such termination of the Plan and further provided that all of the
Employer’s plans and arrangements that are account balance plans for purposes of Treas. Reg. § 1.409A-1(c)(2) (and would be aggregated under such regulation) that cover Participants subject to the change in control are terminated so that
the Participants are required to receive all amounts of compensation deferred under the other terminated plans and arrangements within 12 months following the irrevocable action to terminate such other plans and arrangements; or 
 (c) Termination of Similar Plans: if all other account balance plans (for purposes of Treas. Reg. § 1.409A-1(c)(2)) sponsored by the Employer that
would be aggregated with the Plan under Treas. Reg. § 1.409A-1(c) if a Participant had participated therein are terminated; provided that (i) such action does not occur proximate to a downturn in the financial health of the Employer;
(ii) all distributions are made no earlier than 12 months and no later than 24 months following such termination, and (iii) the Employer does not adopt any new account balance plans for a minimum of three years following the date of such
termination. 
 The Plan Sponsor also reserves the right to terminate the Plan under such conditions and events as may be prescribed by the Secretary of the
Treasury in generally applicable guidance published in the Internal Revenue Bulletin. Notice of such amendment or termination shall be given in writing to each Participant and Beneficiary of a deceased Participant having an interest in the Plan.

  

	8.4	Distribution Upon Termination of the Plan. Except as provided in Section 8.3, the Plan may not be terminated before the date on which all amounts credited to all
Participant accounts have been distributed in accordance with Articles 6 and 7. 

  

	8.5	Change in Control. A Change in Control will occur upon a change in the ownership of the Employer, a change in the effective control of the Employer or a change in the
ownership of a substantial portion of the assets of the Employer. The Employer, for this purpose, includes any corporation identified in this Section 8.5. 

 Whether a Change in Control has occurred will be determined by the Plan Sponsor in accordance with the rules and definitions set forth in this
Section 8.5, provided that such event also complies with Treas. Reg. § 1.409A-3(i)(5). A distribution to a Participant will be treated as occurring upon a Change in Control if the Plan Sponsor terminates the Plan and distributes the
Participant’s benefits in a manner consistent with Section 8.3(b). 
  

 8-2 

	 	(a)	Relevant Corporations. To constitute a Change in Control for purposes of the Plan, the event must relate to (i) the corporation for which the Participant is performing
services at the time of the Change in Control, (ii) the corporation that is liable for the payment of the Participant’s benefits under the Plan (or all corporations liable if more than one corporation is liable), or (iii) a
corporation that is a majority shareholder of a corporation identified in (i) or (ii), or any corporation in a chain of corporations in which each corporation is a majority corporation of another corporation in the chain, ending in a
corporation identified in (i) or (ii). A majority shareholder is defined as a shareholder owning more than fifty percent (50%) of the total fair market value and voting power of such corporation. 

  

	 	(b)	Stock Ownership. Code Section 318(a) applies for purposes of determining stock ownership. Stock underlying a vested option is considered owned by the individual who owns
the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option). If, however, a vested option is exercisable for stock that is not substantially vested (as defined by Treasury
Regulation Section 1.83-3(b) and (j)) the stock underlying the option is not treated as owned by the individual who holds the option. Mutual and cooperative corporations are treated as having stock for purposes of this Section 8.5.

  

	 	(c)	 Change in the Ownership of a Corporation. A change in the ownership of a corporation occurs on the date that any one person or more than one person acting as
a group, acquires ownership of stock of the corporation that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of such corporation. If
any one person or more than one person acting as a proxy is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of a corporation, the acquisition of additional stock by the same
person or persons is not considered to cause a change in the ownership of the corporation (or to cause a change in the effective control of the corporation as discussed below in Section 8.5(d)). An increase in the percentage of stock owned by
any one person, or persons acting as a group, as a result of a transaction in which the corporation acquires its stock in exchange for property will be treated as an acquisition of stock. Section 8.5(c) applies only when there is a transfer of
stock of a corporation (or issuance of stock of a corporation) and stock in such corporation remains outstanding after the transaction. For purposes of this Section 8.5(c), persons will not be considered to be acting as a group solely because
they purchase or own stock of the same corporation at the same time or as a result of a public offering. Persons will, however, be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation,

  

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purchase or acquisition of stock, or similar business transaction with the corporation. If a person, including an entity, owns stock in both corporations
that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation prior to the transaction giving rise to the change and
not with respect to the ownership interest in the other corporation. 

  

	 	(d)	Change in the effective control of a corporation. A change in the effective control of a corporation occurs on the date that either (i) any one person, or more than one
person acting as a group, acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the corporation possessing thirty-five percent (35%) or more
of the total voting power of the stock of such corporation, or (ii) a majority of members of the corporation’s board of directors is replaced during any twelve month period by directors whose appointment or election is not endorsed by a
majority of the members of the corporation’s board of directors prior to the date of the appointment or election, provided that for purposes of this paragraph (ii), the term corporation refers solely to the relevant corporation identified in
Section 8.5(a) for which no other corporation is a majority shareholder for purposes of Section 8.5(a). In the absence of an event described in Section 8.5(d)(i) or (ii), a change in the effective control of a corporation will not
have occurred. A change in effective control may also occur in any transaction in which either of the two corporations involved in the transaction has a change in the ownership of such corporation as described in Section 8.5(c) or a change in
the ownership of a substantial portion of the assets of such corporation as described in Section 8.5(e). If any one person, or more than one person acting as a group, is considered to effectively control a corporation within the meaning of this
Section 8.5(d), the acquisition of additional control of the corporation by the same person or persons is not considered to cause a change in the effective control of the corporation or to cause a change in the ownership of the corporation
within the meaning of Section 8.5(c). For purposes of this Section 8.5(d), persons will or will not be considered to be acting as a group in accordance with rules similar to those set forth in Section 8.5(c) with the following
exception. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other
shareholders in a corporation only with respect to the ownership in that corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. 

  

	 	(e)	 Change in the ownership of a substantial portion of a corporation’s assets. A change in the ownership of a substantial portion of a 

  

 8-4 

	 	 
corporation’s assets occurs on the date that any one person, or more than one person acting as a group (as determined in accordance with rules similar
to those set forth in Section 8.5(d)), acquires (or has acquired during the twelve month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value
equal to or more than forty percent (40%) of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the
assets of the corporation or the value of the assets being disposed of determined without regard to any liabilities associated with such assets. There is no Change in Control event under this Section 8.5(e) when there is a transfer to an entity
that is controlled by the shareholders of the transferring corporation immediately after the transfer. A transfer of assets by a corporation is not treated as a change in ownership of such assets if the assets are transferred to (i) a
shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock, (ii) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly,
by the corporation, (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the corporation, or
(iv) an entity, at least fifty (50%) of the total value or voting power of which is owned, directly or indirectly, by a person described in Section 8.5(e)(iii). For purposes of the foregoing, and except as otherwise provided, a
person’s status is determined immediately after the transfer of assets. 

  

 8-5 

 ARTICLE 9 – THE TRUST 
  

	9.1	Establishment of Trust. The Plan Sponsor may but is not required to establish a trust to hold amounts which the Plan Sponsor may contribute from time to time to correspond to
some or all of the amounts credited to Participants under Article 5. If the Plan Sponsor elects to establish a trust the provisions of Section 9.2 will become operative. 

  

	9.2	Investment of Trust Funds. Any amounts contributed to the trust by the Employer shall be invested by the trustee in accordance with the provisions of the trust and the
instructions of the Administrator. Trust investments need not reflect the hypothetical investments selected by Participants under Section 5.1 for the purpose of adjusting Accounts and Grandfathered Accounts and the earnings or investment
results of the trust shall not affect the hypothetical investment adjustments to Participant Accounts and Grandfathered Accounts under the Plan. 

  

 9-1 

 ARTICLE 10 – PLAN ADMINISTRATION 
  

	10.1	Powers and Responsibilities of the Administrator. The Administrator has the full power and the full responsibility to administer the Plan in all of its details, subject,
however, to the applicable requirements of ERISA. The Administrator’s powers and responsibilities include, but are not limited to, the following: 

  

	 	(a)	To make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of the Plan; 

  

	 	(b)	To interpret the Plan, its interpretation thereof in good faith to be final and conclusive on all persons claiming benefits under the Plan; 

  

	 	(c)	To decide all questions concerning the Plan and the eligibility of any person to participate in the Plan; 

  

	 	(d)	To administer the claims and review procedures specified in Section 10.2; 

  

	 	(e)	To compute the amount of benefits which will be payable to any Participant, former Participant or Beneficiary in accordance with the provisions of the Plan;

  

	 	(f)	To determine the person or persons to whom such benefits will be paid; 

  

	 	(g)	To authorize the payment of benefits; 

  

	 	(h)	To comply with the reporting and disclosure requirements of Part 1 of Subtitle B of Title I of ERISA; 

  

	 	(i)	To appoint such agents, counsel, accountants, and consultants as may be required to assist in administering the Plan; 

  

	 	(j)	By written instrument, to allocate and delegate its responsibilities, including the formation of an Administrative Committee to administer the Plan. 

  

	10.2	Claims and Review Procedures. 

  

	 	(a)	 Claims Procedure. If any person believes he is being denied any rights or benefits under the Plan, such person may file a claim in writing with the
Administrator. If any such claim is wholly or partially denied, the Administrator will notify such person of its decision in writing. Such notification will contain (i) specific reasons for the denial, 

  

 10-1 

	 	 
(ii) specific reference to pertinent Plan provisions, (iii) a description of any additional material or information necessary for such person to perfect
such claim and an explanation of why such material or information is necessary, and (iv) information as to the steps to be taken if the person wishes to submit a request for review. Such notification will be given within 90 days after the claim
is received by the Administrator (or within 180 days, if special circumstances require an extension of time for processing the claim, and if written notice of such extension and circumstances is given to such person within the initial 90-day
period). If such notification is not given within such period, the claim will be considered denied as of the last day of such period and such person may request a review of his claim. 

  

	 	(b)	Review Procedure. Within 60 days after the date on which a person receives a written notification of denial of claim (or, if written notification is not provided, within 60
days of the date denial is considered to have occurred), such person (or his duly authorized representative) may (i) file a written request with the Administrator for a review of his denied claim and of pertinent documents and (ii) submit
written issues and comments to the Administrator. The Administrator will notify such person of its decision in writing. Such notification will be written in a manner calculated to be understood by such person and will contain specific reasons for
the decision as well as specific references to pertinent Plan provisions. The decision on review will be made within 60 days after the request for review is received by the Administrator (or within 120 days, if special circumstances require an
extension of time for processing the request, such as an election by the Administrator to hold a hearing, and if written notice of such extension and circumstances is given to such person within the initial 60-day period). If the decision on review
is not made within such period, the claim will be considered denied. 

  

	10.3	Arbitration. Any controversy or claim arising under or relating to a claim for benefits under the Plan shall be resolved by binding arbitration in accordance with the rules
and procedures of the American Arbitration Association. The Plan shall not be required to submit any such claim or controversy until the claimant has first exhausted the procedures described in Section 10.2 although the Administrator may
voluntarily do so at any point in processing an appeal from a prior claim denial or other disputed benefit determination. 

 The
Employer against whom the claim is brought shall bear all costs of an arbitration, except that the arbitrator shall have the power to apportion among the parties other expenses such as prehearing discovery, travel costs and attorney’s fees. The
decision of the arbitrator shall be final and binding on all parties and judgment on the arbitrator’s award may be entered in any court of competent jurisdiction. 
  

 10-2 

	10.4	Plan Administrative Costs. All reasonable costs and expenses (including legal, accounting, and employee communication fees) incurred by the Administrator in administering the
Plan shall, unless allocable to the Accounts and Grandfathered Accounts of particular Participants, be charged against the Accounts and Grandfathered Accounts of all Participants on a pro rata basis or in such other reasonable manner as may be
directed by the Administrator unless paid for by the Employer. 

  

 10-3 

 ARTICLE 11 – MISCELLANEOUS 
  

	11.1	Unsecured General Creditor of the Employer. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or equitable rights, interests or claims
in any property or assets of the Employer. For purposes of the payment of benefits under the Plan, any and all of the Employer’s assets shall be, and shall remain, the general, unpledged, unrestricted assets of the Employer. Each
Employer’s obligation under the Plan shall be merely that of an unfunded and unsecured promise to pay money in the future. 

  

	11.2	Employer’s Liability. Each Employer’s liability for the payment of benefits under the Plan shall be defined only by the Plan and by the deferral agreements entered
into between a Participant and the Employer. An Employer shall have no obligation or liability to a Participant under the Plan except as provided by the Plan and a deferral agreement or agreements. An Employer shall have no liability to Participants
employed by other Employers. 

  

	11.3	Limitation of Rights. Neither the establishment of the Plan, nor any amendment thereof, nor the creation of any fund or account, nor the payment of any benefits, will be
construed as giving to the Participant or any other person any legal or equitable right against the Plan Sponsor, Employer or Administrator, except as provided herein; and in no event will the terms of employment or service of the Participant be
modified or in any way affected hereby. 

  

	11.4	Anti-alienation of Benefits. None of the benefits or rights of a Participant or any Beneficiary of a Participant shall be subject to the claim of any creditor. In particular,
to the fullest extent permitted by law, all such benefits and rights shall be free from attachment, garnishment, or any other legal or equitable process available to any creditor of the Participant and his or her Beneficiary. Neither the Participant
nor his or her Beneficiary shall have the right to alienate, anticipate, commute, pledge, encumber, or assign any of the payments which he or she may expect to receive, contingently or otherwise, under this Plan, except the right to designate a
Beneficiary to receive death benefits provided hereunder. 

  

	11.5	Facility of Payment. If the Administrator determines, on the basis of medical reports or other evidence satisfactory to the Administrator, that the recipient of any benefit
payments under the Plan is incapable of handling his affairs by reason of minority, illness, infirmity or other incapacity, the Administrator may disburse such payments to a person or institution designated by a court which has jurisdiction over
such recipient or a person or institution otherwise having the legal authority under State law for the care and control of such recipient. The receipt by such person or institution of any such payments therefore, and any such payment to the extent
thereof, shall discharge the liability of the Plan for the payment of benefits hereunder to such recipient. 

  

 11-1 

	11.6	Notices. Any notice or other communication in connection with the Plan shall be deemed delivered in writing if addressed to the Employer or Administrator at the address
specified by the Employer and if either actually delivered at said address or, in the case or a letter, five business days shall have elapsed after the same shall have been deposited in the United States mail, first-class postage prepaid and
registered or certified. 

  

	11.7	Tax Withholding. The Employer shall have the right to deduct from all payments or deferrals made under the Plan any tax required by law to be withheld. If the Employer
concludes that tax is owing with respect to any deferral or payment hereunder, the Employer shall withhold such amounts from any payments due the Participant, as permitted by law, or otherwise make appropriate arrangements with the Participant or
his Beneficiary for satisfaction of such obligation. Tax, for purposes of this Section 11.7 means any federal, state, local or any other governmental income tax, employment or payroll tax, excise tax, or any other tax or assessment owing with
respect to amounts deferred, any earnings thereon, and any payments made to Participants under the Plan. Neither the Employer nor the Administrator shall have any obligation to any Participant or any other person if there is a failure to comply with
Code Section 409A or with respect to any liability, including, without limitation, any liability for taxes, additional taxes or interest incurred by the Participant or any other person as a result of such failure. 

  

	11.8	Indemnification. To the extent permitted by law, and without limiting the applicability of any other indemnification provided by the Employer, each Employer shall indemnify
and hold harmless the Plan Sponsor, the Administrator, each employee, officer, or director of the Employer to whom is delegated duties, responsibilities, and authority with respect to the Plan against all claims, liabilities, fines and penalties,
and all expenses reasonably incurred by or imposed upon him (including but not limited to reasonable attorney fees) which arise as a result of his actions or failure to act in connection with the operation and administration of the Plan to the
extent lawfully allowable and to the extent that such claim, liability, fine, penalty, or expense is not paid for by liability insurance purchased or paid for by an Employer. Notwithstanding the foregoing, an Employer shall not indemnify any person
for any such amount incurred through any settlement or compromise of any action unless the Employer consents in writing to such settlement or compromise. 

  

	11.9	 Permitted Acceleration of Payment. The Plan may permit acceleration of the time or schedule of any payment or amount scheduled to be paid pursuant to a
payment under the Plan as provided in Section 8.3 and this Section 11.9. The Plan may permit acceleration of payment by and subject to such conditions and limitations as imposed by Section 409A, including, 

  

 11-2 

	 	 
without limitation, (i) to comply with government ethics or conflict of interest laws (per Treas. Reg. § 1.409A-3(j)(4)(iii)), (ii) to pay
employment taxes under Sections 3101, 3121(a) and 3121(v)(2) of the Code on amounts accrued under this Plan, (iii) to pay income taxes under Section 3401 of the Code or corresponding state, local or foreign withholding rules triggered
directly or as a result of the payments under (ii), (iv) to pay additional income tax on wages attributable to the pyramiding Section 3401 wages and taxes, (v) to comply with a “domestic relations order” (as defined in Code
Section 414(p)(1)(B)) as permitted under Code Section 409A, and (vi) to pay any amount due as a result of some amount under this Plan being included in income as a result of a failure to comply with Section 409A.

  

	11.10	Illegality of Particular Provision. The illegality any particular provision of the Plan shall not affect the other provisions, and the document shall be construed in all
respects as if such invalid provisions were omitted. 

  

	11.11	Governing Law. The Plan will be construed, administered and enforced according to ERISA, and to the extent not preempted thereby, the laws of the Commonwealth of
Massachusetts. 

 Approved by the Teradyne, Inc. Compensation Committee of the Board of Directors November 3, 2008. 
  

 11-3

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