Document:

exv10w139

 

Exhibit 10.139

PLEDGE AGREEMENT

(LIVERMORE/ PARCEL 7)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 18, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	1	 	Definitions and Interpretation	 	 	1	 
	 
	 	(A)	 	Definitions	 	 	1	 
	 
	 	 	 	Account Office	 	 	2	 
	 
	 	 	 	Cash Collateral	 	 	2	 
	 
	 	 	 	Clearing System	 	 	2	 
	 
	 	 	 	Collateral	 	 	2	 
	 
	 	 	 	Collateral Imbalance	 	 	2	 
	 
	 	 	 	Control Agreement	 	 	2	 
	 
	 	 	 	Default	 	 	2	 
	 
	 	 	 	Deposit Account	 	 	2	 
	 
	 	 	 	Deposit Taker	 	 	3	 
	 
	 	 	 	Deposit Taker’s Agreement	 	 	3	 
	 
	 	 	 	Deposit Taker Prerequisites	 	 	3	 
	 
	 	 	 	Disqualified Deposit Taker	 	 	3	 
	 
	 	 	 	Eligible Deposit Taker	 	 	4	 
	 
	 	 	 	Eligible Investments	 	 	5	 
	 
	 	 	 	Event of Default	 	 	5	 
	 
	 	 	 	Initial Control Agreement	 	 	6	 
	 
	 	 	 	Intermediary	 	 	6	 
	 
	 	 	 	Lien	 	 	6	 
	 
	 	 	 	Minimum Collateral Value	 	 	7	 
	 
	 	 	 	Other Liable Party	 	 	7	 
	 
	 	 	 	Percentage	 	 	7	 
	 
	 	 	 	Pre-lease Account Assets	 	 	7	 
	 
	 	 	 	Pre-lease Collateral	 	 	7	 
	 
	 	 	 	Pre-lease Deposits	 	 	8	 
	 
	 	 	 	Qualified Pledge	 	 	8	 
	 
	 	 	 	Secured Obligations	 	 	8	 
	 
	 	 	 	Securities	 	 	8	 
	 
	 	 	 	Securities Account	 	 	8	 
	 
	 	 	 	Transition Account	 	 	8	 
	 
	 	 	 	UCC	 	 	8	 
	 
	 	 	 	Value	 	 	8	 
	 
	 	(B)	 	Other Definitions	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	2	 	Pledge and Grant of Security Interest	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	3	 	Provisions Concerning the Deposit Takers	 	 	10	 
	 
	 	(A)	 	Deposit Taker Agreements	 	 	10	 
	 
	 	(B)	 	Qualification of Deposit Takers Generally	 	 	11	 
	 
	 	(C)	 	Substitutions for Disqualified Deposit Takers	 	 	11	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	(D)	 	Other Voluntary Substitutions of Deposit Takers	 	 	11	 
	 
	 	(E)	 	Delivery of Deposit Taker’s Agreements by LRC and BNPPLC	 	 	11	 
	 
	 	(F)	 	Replacement of Participants Proposed by LRC	 	 	11	 
	 
	 	(G)	 	Constructive Possession of Collateral	 	 	12	 
	 
	 	(H)	 	Attempted Setoff by Deposit Taker	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	4	 	Delivery and Maintenance of Collateral	 	 	13	 
	 
	 	(A)	 	Delivery of Pre-lease Deposits by LRC	 	 	13	 
	 
	 	(B)	 	Delivery of Cash Collateral by LRC	 	 	13	 
	 
	 	(C)	 	Transition Account	 	 	14	 
	 
	 	(D)	 	Allocation of Cash Collateral Among Deposit Takers	 	 	14	 
	 
	 	(E)	 	Status of the Deposit Accounts Under the Reserve Requirement Regulations	 	 	15	 
	 
	 	(F)	 	Acknowledgment by LRC that Requirements of this Agreement are Commercially Reasonable	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	5	 	Withdrawal of Collateral	 	 	15	 
	 
	 	(A)	 	Withdrawal and Management of Pre-lease Collateral	 	 	15	 
	 
	 	(B)	 	Withdrawal of Cash Collateral After the Base Rent Commencement Date and Prior to the Designated Sale Date	 	 	17	 
	 
	 	(C)	 	Withdrawal and Application of Cash Collateral to Reduce or Satisfy the Secured Obligations to BNPPLC	 	 	17	 
	 
	 	(D)	 	Withdrawal and Return of Cash Collateral Following Satisfaction of all Secured Obligations	 	 	18	 
	 
	 	(E)	 	No Other Right to Require or Make Withdrawals	 	 	18	 
	 
	 	(F)	 	BNPPLC’s Covenant Not to Make Unauthorized Withdrawals	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	6	 	Representations and Covenants of LRC	 	 	18	 
	 
	 	(A)	 	Representations of LRC	 	 	18	 
	 
	 	(B)	 	Covenants of LRC	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	7	 	Authorized Action by BNPPLC	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	8	 	Default and Remedies	 	 	21	 
	 
	 	(A)	 	Remedies	 	 	21	 
	 
	 	(B)	 	Recovery Not Limited	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	9	 	Miscellaneous	 	 	24	 
	 
	 	(A)	 	Payments by LRC to BNPPLC	 	 	24	 
	 
	 	(B)	 	Payments by BNPPLC to LRC	 	 	24	 
	 
	 	(C)	 	Cumulative Rights, etc	 	 	25	 
	 
	 	(D)	 	Survival of Agreements	 	 	25	 
	 
	 	(E)	 	Other Liable Party	 	 	25	 
	 
	 	(F)	 	Termination	 	 	25	 

 

 

PLEDGE AGREEMENT

(LIVERMORE/ PARCEL 7)

     This PLEDGE AGREEMENT (LIVERMORE/ PARCEL 7) (this “Agreement”), dated as of December 18, 2007
(the “Effective Date”), is made by and between BNP PARIBAS LEASING CORPORATION (“BNPPLC”), a
Delaware corporation, and LAM RESEARCH CORPORATION (“LRC”), a Delaware corporation.

RECITALS

     BNPPLC, as a lessor and prospective seller, and LRC, as a lessee and prospective buyer, have
entered into a Construction Agreement (Livermore/ Parcel 7), a Lease Agreement (Livermore/ Parcel
7) and an Agreement Regarding Purchase and Remarketing Options (Livermore/ Parcel 7) (as from time
to time supplemented, amended or restated, the “Construction Agreement”, “Lease” and “Purchase
Agreement,” respectively), all dated as of the date hereof. BNPPLC and LRC have also entered into
a Common Definitions and Provisions Agreement (Livermore/ Parcel 7) dated as of the date hereof (as
from time to time supplemented, amended or restated, the “Common Definitions and Provisions
Agreement”), in which defined terms are set forth for incorporation by reference into the Lease,
the Purchase Agreement and other documents. As used in this Agreement, capitalized terms defined
in the Common Definitions and Provisions Agreement and not otherwise defined in this Agreement are
intended to have the respective meanings assigned to them in the Common Definitions and Provisions
Agreement.

     Pursuant to the Construction Agreement, BNPPLC will authorize LRC to construct, and BNPPLC
will advance funds for the construction of, real property improvements described therein. Pursuant
to the Lease, BNPPLC will lease to LRC such improvements and other property described in the Lease.
Pursuant to the Purchase Agreement, LRC may purchase or arrange for a purchase of BNPPLC’s
interest in such property.

     By this Agreement, BNPPLC and LRC desire to establish the terms and conditions upon which upon
which LRC is pledging cash collateral for its obligations to BNPPLC under the Construction
Agreement and the Purchase Agreement.

AGREEMENTS

1 Definitions and Interpretation.

     (A) Definitions. As provided in the recitals above, capitalized terms which are
defined in the Common Definitions and Provisions Agreement, and which are not otherwise defined in
the body of this Agreement, are intended to have the respective meanings assigned to

 

 

them the Common Definitions and Provisions Agreement. As used in this Agreement:

     “Account Office” means, with respect to any Deposit Account maintained by any Deposit
Taker, the office of such Deposit Taker in California or New York at which such Deposit
Account is maintained as specified in the applicable Deposit Taker’s Agreement.

     “Cash Collateral” means all money of LRC which LRC or the Intermediary delivers to
BNPPLC or as directed by it for deposit in the Deposit Accounts maintained by the Deposit
Takers pursuant to this Agreement, and all amounts on deposit in any of the Deposit Accounts
from time to time, which has not been withdrawn or applied to Secured Obligations as
provided in this Agreement.

     “Clearing System” means the Depository Trust Company (“DTC”) and such other clearing or
safekeeping system that may from time to time be used in connection with transactions
relating to or the custody of any Securities, and any depository for any of the foregoing.

     “Collateral” has the meaning indicated in Paragraph 2.

     “Collateral Imbalance” means on any date prior to the Designated Sale Date that the
Value (without duplication) of Deposit Accounts maintained by the Deposit Taker for any
Participant (other than Disqualified Deposit Takers) does not equal such Participant’s
Percentage, multiplied by the lesser of (1) the Minimum Collateral Value in effect on such
date, or (2) the aggregate Value of all Collateral subject to this Agreement on such date.
For purposes of determining whether a Collateral Imbalance exists, the Value of any Deposit
Accounts maintained by a bank that is acting as Deposit Taker for two or more Participants
will be deemed to be held for them in proportion to their respective Percentages, and the
Value of any Deposit Accounts maintained by a bank as Deposit Taker for both a Participant
and BNPPLC (as will be the case if any Participant designates BNPPLC’s Parent as its Deposit
Taker) will be deemed to be held for the Participant only to the extent necessary to prevent
or mitigate a Collateral Imbalance and otherwise for BNPPLC.

     “Control Agreement” means the Initial Control Agreement and any future similar
agreement that may supplement, modify or replace the Initial Control Agreement as to any
Pre-lease Collateral.

     “Default” means any Event of Default and any default, event or condition which would,
with the giving of any requisite notices and the passage of any requisite periods of time,
constitute an Event of Default.

     “Deposit Account” means a deposit account maintained by any Deposit Taker into
which Cash Collateral has been or may in the future be deposited as provided in this
Agreement, excluding the Transition Account.

 

 

     “Deposit Taker” means, for BNPPLC or any Participant, an Eligible Deposit Taker
designated by it to act as the Deposit Taker for it under this Agreement. BNPPLC has
already designated BNP Paribas as the Deposit Taker for BNPPLC hereunder. Any Participant
which is an Eligible Deposit Taker will be deemed to have designated itself to act as the
Deposit Taker for it, unless some other designation is expressly set forth in this
Agreement. Any Participant which is not an Eligible Deposit Taker will be expected to
designate BNP Paribas or another Person which is an Eligible Deposit Taker prior to any
delivery of Cash Collateral by LRC pursuant to this Agreement. It is also understood,
however, that each of BNPPLC and the Participants, for itself only, may from time to time
designate another Deposit Taker as provided in subparagraphs 3(C) and 3(D) below.

     “Deposit Taker’s Agreement” means a completed agreement in the form attached as
Exhibit B, which specifically identifies a Deposit Account in which a Deposit Taker
shall hold Cash Collateral delivered to it pursuant to this Agreement.

     “Deposit Taker Prerequisites” means, with respect to any Deposit Taker: (1) the
requirement that such Deposit Taker establish a Deposit Account and provide to LRC and
BNPPLC the account number and other information regarding such Deposit Account which they
must have to complete and submit a Deposit Taker’s Agreement covering such Deposit Account;
and (2) the requirement that such Deposit Taker accept, execute and return a Deposit Taker’s
Agreement covering each Deposit Account to be maintained by such Deposit Taker. It is
understood that any Deposit Taker’s refusal or failure to satisfy the Deposit Taker
Prerequisites will cause it to be a Disqualified Deposit Taker.

     “Disqualified Deposit Taker” means any Person that BNPPLC or any Participant has
designated as a Deposit Taker, but that has not satisfied or no longer satisfies the
following requirements:

     (a) With respect to each Deposit Account in which such Person holds or will
hold Collateral delivered to it pursuant to this Agreement, such Person must have
received from BNPPLC and LRC an executed Deposit Taker’s Agreement which
specifically identifies such Deposit Account and which designates an Account Office
with respect to such Deposit Account in New York, California or Illinois.

     (b) Such Person must have executed and returned to BNPPLC a Deposit
Taker’s Agreement with respect to each such Deposit Account and must have complied
with its Deposit Taker’s Agreements, and the representations set forth therein with
respect to such Person must continue to be true and correct (except that such Person will not become a Disqualified Deposit Taker because
of

 
Pledge Agreement (Livermore/ Parcel 7) — Page 3

 

 

its failure to comply with its Deposit Taker’s Agreement, or because any such
representation does not continue to be true and correct, if such failure is cured
and all such representations are made true and correct in all material respects
before the earlier of (i) thirty days after the Deposit Taker is notified thereof,
and (ii) any date upon which BNPPLC’s security interest in any Collateral maintained
or held by such Deposit Taker is not a Qualified Pledge by reason of such failure to
comply or such representation not being true and correct).

     (c) Such Person must have complied in all material respects with the provisions
in this Agreement applicable to Deposit Takers.

     (d) Such Person must be an Eligible Deposit Taker.

     “Eligible Deposit Taker” means:

     (1) BNP Paribas or any successor of BNP Paribas, acting through any branch, office or
agency in New York or California that can lawfully maintain a Deposit Account as a Deposit
Taker hereunder;

     (2) any Participant or Affiliate of a Participant that is (a) a commercial bank,
organized under the laws of the United States of America or a state thereof or under the
laws of another country which is doing business in the United States of America, (b)
authorized to maintain deposit accounts for others through Account Offices in New York,
California or Illinois (as specified in its Deposit Taker’s Agreement); or

     (3) any other Person that (a) has been designated by BNPPLC or a Participant to act as
the Deposit Taker for it under this Agreement, (b) is one of the fifty largest (measured by
total assets) U.S. banks, or one of the one hundred largest (measured by total assets) banks
in the world, (c) is acting through any branch, office or agency in New York or California
that can lawfully maintain a Deposit Account as a Deposit Taker hereunder and (d) has a debt
ratings of at least (i) A- (in the case of long term debt) and A-1 (in the case of short
term debt) or the equivalent thereof by Standard and Poor’s Corporation (the “S&P Rating”),
and (ii) A3 (in the case of long term debt) and P-2 (in the case of short term debt) or the
equivalent thereof by Moody’s Investor Service, Inc. (the “Moody Rating”). (The parties
believe it improbable that the ratings systems used by Standard and Poor’s Corporation and
by Moody’s Investor Service, Inc. will be
discontinued or changed, but if such ratings systems are discontinued or changed, LRC
shall be entitled to select and use a comparable ratings systems as a substitute for the S&P
Rating or the Moody Rating, as the case may be, for purposes of determining the status of
any bank as an Eligible Deposit Taker.)

 
Pledge Agreement (Livermore/ Parcel 7) — Page 4

 

 

     “Eligible Investments” means cash balances and U.S. Treasury securities with a
maturity of less than ten years and other investments that satisfy all applicable criteria
listed in Exhibit A (as such Exhibit is amended, restated, supplemented or otherwise
modified from time to time by written agreement of BNPPLC and LRC).

     “Event of Default” means the occurrence of any of the following:

     (a) a failure by LRC to pay or perform all or any part of the Secured
Obligations when first due or required;

     (b) any failure by LRC to provide funds as and when required by subparagraph
4(A) or 4(B) of this Agreement, if within seven days after such failure commences
LRC does not cure such failure by delivering the required funds;

     (c) the failure of the pledge or security interest contemplated herein in any
Pre-lease Collateral, the Transition Account or any Deposit Account or Cash
Collateral to be a Qualified Pledge (regardless of the characterization of the
Transition Account or any Deposit Accounts or Cash Collateral as deposit accounts,
instruments or general intangibles under the UCC); unless, within five days after
LRC becomes aware of such failure, LRC both (1) notifies BNPPLC of such failure, and
(2) cures such failure;

     (d) the failure of any representation herein by LRC to be true (other than a
failure described in another clause of this definition of Event of Default), if such
failure is not cured within thirty days after BNPPLC gives LRC written notice
thereof;

     (e) the failure of any representation made by LRC in subparagraph 6(A)(1) to be
true, if within fifteen days after LRC becomes aware of such failure, LRC does not
(1) notify BNPPLC of such failure, and (2) cure such failure; and

     (f) the failure by LRC timely and properly to observe, keep or perform any
covenant, agreement, warranty or condition herein required to be observed, kept or
performed (other than a failure described in another clause of this definition of
Event of Default), if such failure is not cured within thirty days after BNPPLC
gives LRC written notice thereof.

Notwithstanding the foregoing, if ever the aggregate Value of Pre-lease Collateral
held by the Intermediary or of Cash Collateral held by BNPPLC or the Deposit Takers

 
Pledge Agreement (Livermore/ Parcel 7) — Page 5

 

 

exceeds the Minimum Collateral Value then in effect, a failure of the pledge or
security interest contemplated herein in such excess Pre-lease Collateral or Cash
Collateral to be a valid, perfected, first priority pledge or security interest shall not
constitute an Event of Default under this Agreement. Accordingly, to provide a cure as
required to avoid an Event of Default under clauses (c) or (e) of this definition prior to
the Base Rent Commencement Date, LRC may deliver additional Pre-lease Collateral to the
Intermediary — the pledge of which or security interest in which created by this Agreement
is a Qualified Pledge — sufficient in amount to cause the aggregate Value of the Pre-lease
Collateral then held by the Intermediary subject to a Qualified Pledge hereunder to equal or
exceed the Minimum Collateral Value. Similarly, to provide a cure as required to avoid an
Event of Default under clauses (c) or (e) of this definition on or after the Base Rent
Commencement Date, LRC may deliver additional Cash Collateral to BNPPLC — the pledge of
which or security interest in which created by this Agreement is a Qualified Pledge -
sufficient in amount to cause the aggregate Value of the Cash Collateral then held by BNPPLC
or the Deposit Takers subject to a Qualified Pledge hereunder to equal or exceed the Minimum
Collateral Value.

     “Initial Control Agreement” means, collectively, the Securities Account Control
Agreement (Livermore/ Parcel 7) and the Collateral Management Services Schedule (Livermore/
Parcel 7), both dated as of the Effective Date, and both being agreements by and among LRC
(as pledgor), BNPPLC (as secured party) and State Street Bank and Trust Company (as the bank
or intermediary).

     “Intermediary” means State Street Bank and Trust Company and its successors and
assigns under the Initial Control Agreement or any other intermediary that replaces it as
provided therein if the Initial Control Agreement is terminated pursuant to its express
terms. (It is understood, however, that neither BNPPLC nor any Affiliate of BNPPLC will
replace State Street Bank and Trust Company as an Intermediary prior to the Completion
Date.)

     “Lien” means, with respect to any property or assets, any right or interest
therein of a creditor to secure indebtedness or other obligations of any kind which is owed
to him or any other arrangement with such creditor which provides for the payment of such
indebtedness or obligations out of such property or assets or which allows him to have such
indebtedness or obligations satisfied out of such property or assets prior to the general
creditors of any owner thereof, including any lien, mortgage, security interest, pledge,
deposit, production payment, rights of a vendor under any title retention or conditional
sale agreement or lease substantially equivalent thereto, tax lien, mechanic’s or
materialman’s lien, or any other charge or encumbrance for security purposes, whether
arising by law or agreement or otherwise, but excluding any right of setoff which arises
without agreement in the ordinary course of business. “Lien” also means any filed

 
Pledge Agreement (Livermore/ Parcel 7) — Page 6

 

 

financing statement, any registration with an issuer of uncertificated securities, or
any other arrangement which would serve to perfect a Lien described in the preceding
sentence, regardless of whether such financing statement is filed, such registration is
made, or such arrangement is undertaken before or after such Lien exists.

     “Minimum Collateral Value” means (1) as of the Designated Sale Date or any prior date,
an amount equal to the Lease Balance determined as of that date (including any Construction
Advances or other amounts added to the Lease Balance on that date as provided in the
Construction Agreement) in accordance with the definition thereof in the Common Definitions
and Provisions Agreement; and (2) as of any date after the Designated Sale Date, an amount
equal to the Make Whole Amount computed as of that date under and as defined in the Purchase
Agreement; except that after the Designated Sale Date, if any 97-10/Prepayment or
Supplemental Payment which may be required has been paid, and so long as no 97-1/Default
(100%) (as defined in the Purchase Agreement) has occurred and is continuing, the Minimum
Collateral Value will be zero.

     “Other Liable Party” means any Person, other than LRC, who may now or may at any time
hereafter be primarily or secondarily liable for any of the Secured Obligations or who may
now or may at any time hereafter have granted to BNPPLC a Lien against any of its assets to
secure any Secured Obligations.

     “Percentage” means with respect to each Participant and the Deposit Taker for such
Participant, such Participant’s “Percentage” under and as defined in the Participation
Agreement for purposes of computing such Participant’s right thereunder to receive payments
of (or amounts equal to a percentage of) any sales proceeds or Supplemental
Payment received by BNPPLC under the Purchase Agreement. Percentages may be adjusted
from time to time as provided in the Participation Agreement or as provided in supplements
thereto executed as provided in the Participation Agreement.

     “Pre-lease Account Assets” means all Pre-lease Deposits, Securities, securities
entitlements and any other assets held in trust for LRC or held in any custody, subcustody,
safekeeping, investment management accounts, or other accounts of LRC with the Intermediary
or any other custodian, trustee, Clearing System or financial intermediary or securities
intermediary (all of which shall be considered “financial assets” under the UCC).

     “Pre-lease Collateral” means: (i) any and all Pre-lease Deposits, Securities and
other Pre-lease Account Assets that are listed on Exhibit C; (ii) all additions to,
and proceeds, renewals, investments, reinvestments and substitutions of, the foregoing,
whether or not listed on Exhibit C; and (iii) all certificates, receipts and other
instruments evidencing any of the foregoing; excluding, however, Cash Collateral and the
Deposit

 
Pledge Agreement (Livermore/ Parcel 7) — Page 7

 

 

Accounts and proceeds thereof. Without limiting the foregoing, the Pre-lease
Collateral will include the Securities Account maintained by the Intermediary.

     “Pre-lease Deposits” means deposits made by or on behalf of LRC with the Intermediary
(whether or not held in trust, or in any custody, subcustody, safekeeping, investment
management accounts, or other accounts of LRC with the Intermediary).

     “Qualified Pledge” means a pledge or security interest that constitutes a valid,
perfected, first priority pledge or security interest.

     “Secured Obligations” means and includes all obligations of LRC under the Construction
Agreement or the Purchase Agreement, including (i) LRC’s obligation to pay any
97-10/Prepayment as provided in Paragraph 8 of the Construction Agreement, (ii)
LRC’s obligation to pay any Supplemental Payment as provided in subparagraph 2(A)(3)
of the Purchase Agreement, (iii) LRC’s obligation to pay the Make Whole Amount as the
purchase price for the Property if a purchase is required by subparagraph 3(A) of
the Purchase Agreement, and (iv) any damages incurred by BNPPLC because of (A) LRC’s breach
of the Construction Agreement or Purchase Agreement or (B) the rejection by LRC of the
Construction Agreement or Purchase Agreement in any bankruptcy, insolvency or similar
proceeding.

     “Securities” means the stocks, bonds and other securities, whether or not held in trust
or in any custody, subcustody, safekeeping, investment management accounts or other accounts
of LRC with the Intermediary or any other custodian, trustee or Clearing System or held by
any party as a financial intermediary or securities intermediary.

     “Securities Account” has the meaning assigned to it in the Initial Control Agreement.

     “Transition Account” shall have the meaning given it in subparagraph 4(C).

     “UCC” means the Uniform Commercial Code as in effect in the State of California from
time to time, and the Uniform Commercial Code as in effect in any other jurisdiction which
governs the perfection or non-perfection of the pledge of and security interests in the
Collateral created by this Agreement.

     “Value” means, with respect to any Collateral on any date, a dollar value determined as
follows (without duplication):

     (a) Cash held by BNPPLC other than in a Deposit Account shall be valued at its
face amount on such date.

 
Pledge Agreement (Livermore/ Parcel 7) — Page 8

 

 

     (b) Any Deposit Account shall be valued at the principal balance thereof
on such date.

     (c) Any Pre-lease Account Asset that qualifies as an Eligible Investment shall
be valued at 90% of its current value on such date. Current value will be
determined by the Intermediary (to the extent the Intermediary is willing to provide
a valuation in accordance with this Agreement) or by BNPPLC’s Parent (to the extent
the Intermediary does not provide the valuation for any reason) using bid prices
indicated by its standard and customary pricing sources, which it believes to be
reliable. For example, the current value of any corporate debt obligation that
meets the criteria listed in Exhibit A will be determined by multiplying the
remaining unpaid principal balance thereof by the bid price therefor as suggested by
the standard and customary pricing sources of the Intermediary or of BNPPLC’s
Parent, as the case may be, which it believes to be reliable.

     (d) For purposes of calculating “Value” as such capitalized term is used
in this Agreement, any Collateral not described in the preceding clauses will
be assigned a value of zero.

     (B) Other Definitions. Reference is hereby made to the Construction Agreement and the
Purchase Agreement for a statement of the terms thereof. All capitalized terms used in this
Agreement, which are defined in the Construction Agreement or the Purchase Agreement and not
otherwise defined herein or in the Common Definitions and Provisions Agreement, shall have the same
meanings herein as they would have in the Construction Agreement or the Purchase Agreement, as
applicable. All terms used in this Agreement which are defined in the UCC and not otherwise
defined herein shall have the same meanings herein as set forth therein, except where the context
otherwise requires.

2 Pledge and Grant of Security Interest.

     As security for the Secured Obligations, LRC hereby pledges and assigns to BNPPLC and grants
to BNPPLC a continuing security interest and lien in and against all right, title and interest of
LRC in and to the following property, whether now or hereafter existing, whether tangible or
intangible, whether presently owned or vested in or hereafter acquired by LRC and wherever the same
may be located (collectively and severally, the “Collateral”):

     (a) all Pre-lease Collateral; and

     (b) all Cash Collateral, the Transition Account and all Deposit Accounts; and
all cash and other assets from time to time held in or on deposit in the Transition Account

 
Pledge Agreement (Livermore/ Parcel 7) — Page 9

 

 

or any Deposit Account and all general intangibles arising from or relating to the
Transition Account or any Deposit Account or such cash or other assets; and all documents,
instruments and agreements evidencing the same; and all extensions, renewals, modifications
and replacements of the foregoing; and any interest or other amounts payable in connection
therewith; and

     (c) all proceeds of the foregoing (including whatever is receivable or received when
Collateral or proceeds is invested, sold, collected, exchanged, returned, substituted or
otherwise disposed of, whether such disposition is voluntary or involuntary, including
rights to payment and return premiums and insurance proceeds under insurance with respect to
any Collateral, and all rights to payment with respect to any cause of action affecting or
relating to the Collateral).

The pledge, assignment and grant of a security interest made by LRC hereunder is for security of
the Secured Obligations only; the parties to this Agreement do not intend that LRC’s delivery or
deposit of any Collateral, including the Cash Collateral, as herein provided will constitute an
advance payment of any Secured Obligations or liquidated damages, nor do the parties intend that
the Collateral increase the dollar amount of the Secured Obligations.

3 Provisions Concerning the Deposit Takers.

     (A) Deposit Taker Agreements. At least ten days prior to any initial deposit of Cash
Collateral with any Deposit Taker required by this Agreement, LRC must (1) ask BNP Paribas, as the
designated Deposit Taker for BNPPLC, and each Eligible Deposit Taker designated by any Participant
to act as the Deposit Taker for it under this Agreement, to satisfy the Deposit Taker
Prerequisites; and (2) execute and provide to BNPPLC a completed Deposit Taker’s Agreement for
BNPPLC’s execution and delivery to each Deposit Taker. Promptly after receipt of a properly
completed Deposit Taker’s Agreement executed by LRC and in form ready to be executed by BNP
Paribas or any other Eligible Deposit Taker named therein, BNPPLC must execute such Deposit Taker’s
Agreement and deliver it to the appropriate Deposit Taker as necessary for the satisfaction of the
Deposit Taker Prerequisites.

Without limiting the foregoing, it is understood that (i) BNPPLC and any Participant may
designate BNP Paribas as its Deposit Taker, (ii) any Participant may designate itself or any of its
Affiliates as its Deposit Taker so long as the Participant or its Affiliate, as the case may be, is
an Eligible Deposit Taker, and (iii) as provided in both the preceding provisions of this
subparagraph and in subparagraph 3(E), BNPPLC and LRC must promptly upon request execute and
deliver any properly completed Deposit Taker Agreement requested by BNPPLC or any Participant to
facilitate the designations of Deposit Takers contemplated by this Agreement. If any Participant
has not already designated an Eligible Deposit Taker to act as Deposit Taker for it under this
Agreement at any time when such a designation is required, then BNPPLC may

 
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make the designation for such Participant; subject, however, to the Participant’s rights under
subparagraphs 3(D) and 3(E).

     (B) Qualification of Deposit Takers Generally. Notwithstanding anything herein to the
contrary, BNPPLC may decline to deposit or maintain Cash Collateral hereunder with any Disqualified
Deposit Taker.

     (C) Substitutions for Disqualified Deposit Takers.

     (1) Upon learning that any Deposit Taker has become a Disqualified Deposit Taker, LRC
or BNPPLC may request that the party for whom such Disqualified Deposit Taker has been
designated a Deposit Taker (i.e., BNPPLC or the applicable Participant) (a) designate
another Eligible Deposit Taker as its new, substitute Deposit Taker, and (b) direct the
substitute to satisfy the Deposit Taker Prerequisites.

     (2) Pending the designation of a substitute Deposit Taker as provided in this
subparagraph 3(C) and its execution and delivery to BNPPLC of an appropriate Deposit Taker’s
Agreement, BNPPLC may withdraw Collateral held by the Deposit Taker to be replaced and
deposit such Collateral with other Deposit Takers. If at any time no Deposit Takers have
been designated other than Disqualified Deposit Takers, then BNPPLC must itself select a new
Eligible Deposit Taker to act as a Deposit Taker for it and direct the new Eligible Deposit
Taker to satisfy the Deposit Taker Prerequisites.

     (D) Other Voluntary Substitutions of Deposit Takers. BNPPLC may, and with the written
approval of BNPPLC (which approval will not be unreasonably withheld) any Participant may, at any
time designate for itself a new Deposit Taker (in replacement of any prior Deposit Taker acting for
it hereunder); provided, the Person so designated is not be a Disqualified Taker.

     (E) Delivery of Deposit Taker’s Agreements by LRC and BNPPLC. To the extent required
for the designation of a new Deposit Taker by BNPPLC or any Participant pursuant to subparagraph
3(D), or to permit the substitution or replacement of a Deposit Taker for BNPPLC or any Participant
as provided in subparagraphs 3(C) and 3(D), LRC and BNPPLC shall promptly execute and deliver any
properly completed Deposit Taker’s Agreement requested by BNPPLC or the applicable Participant.

     (F) Replacement of Participants Proposed by LRC. So long as no Event of
Default has occurred and is continuing, BNPPLC shall not unreasonably withhold its approval for a
substitution under the Participation Agreement of a new Participant proposed by LRC for any
Participant, the Deposit Taker for whom would no longer meet the requirements listed in clause (3)
of the definition of Eligible Deposit Taker above; provided, however, that (1) the proposed
substitution can be accomplished without a release or breach by BNPPLC of its rights

 
Pledge Agreement (Livermore/ Parcel 7) — Page 11

 

 

and obligations under the Participation Agreement; (2) the new Participant will agree (by
executing a Supplement and a supplement to the Participation Agreement as contemplated therein and
by other agreements as may be reasonably required by BNPPLC and LRC) to become a party to the
Participation Agreement and to this Agreement, to designate an Eligible Deposit Taker as the
Deposit Taker for it under this Agreement and to accept a Percentage under the Participation
Agreement equal to the Percentage of the Participant to be replaced; (3) the new Participant
(or LRC) will provide the funds to pay the termination fee required by subparagraph 6(D) of
the Participation Agreement to accomplish the substitution; (4) LRC or the new Participant agrees
in writing to indemnify and defend BNPPLC for any and all Losses incurred by BNPPLC in connection
with or because of the substitution, including the cost of preparing supplements to the
Participation Agreement and this Agreement and including any cost of defending and paying any claim
asserted by the Participant to be replaced because of the substitution; and (5) the new Participant
shall be a reputable financial institution having a net worth of no less than seven and one half
percent (7.5%) of total assets and total assets of no less than $10,000,000,000 (all according to
then recent audited financial statements). BNPPLC shall attempt in good faith to assist (and cause
BNPPLC’s Parent to attempt in good faith to assist) LRC in identifying a new Participant that LRC
may propose to substitute for an existing Participant pursuant to this subparagraph, as LRC may
reasonably request from time to time. However, in no event shall BNPPLC itself, or any of its
Affiliates, be required to take the Percentage of any Participant to be replaced.

     (G) Constructive Possession of Collateral. The possession by a Deposit Taker of any
money, instruments, chattel paper, financial assets or other property constituting Collateral or
evidencing Collateral shall be deemed to be possession by BNPPLC or a person designated by BNPPLC,
for purposes of perfecting the security interest granted to BNPPLC hereunder pursuant to the UCC or
other Applicable Law; and notifications to a Deposit Taker by other Persons holding any such
property, and acknowledgments, receipts or confirmations from any such Persons delivered to a
Deposit Taker, and control agreements made by any such Person with Deposit Taker with respect to
any such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations
from, or control agreements with, financial intermediaries, bailees or agents (as applicable) of
such Deposit Taker for the benefit of BNPPLC for the purposes of perfecting such security interests
under Applicable Law.

However, nothing in this subparagraph will be construed to permit or authorize any replacement of
Cash Collateral required by this Agreement with other types of Collateral or any substitution of
other types of Collateral for Cash Collateral hereunder.

     (H) Attempted Setoff by Deposit Taker. By delivery of a Deposit Taker’s
Agreement, each Deposit Taker must agree not to setoff or attempt a setoff, without in each case
first obtaining the prior written authorization of BNPPLC (which BNPPLC will not grant without the
prior written consent of all Participants), obligations owed to such Deposit Taker against any

 
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Collateral held by it from time to time. Nevertheless, LRC acknowledges and agrees
(without limiting its right to recover any resulting damages from any Deposit Taker that
violates such agreements) that BNPPLC shall not be responsible for, or be deemed to have taken any
action against LRC because of, any violation of such agreement by any Deposit Taker. Further, and
without limiting the foregoing, as additional consideration for BNPPLC’s accommodations to LRC,
including BNPPLC’s acceptance of the Collateral in lieu of other forms of security as collateral
for the Secured Obligations, LRC hereby waives and covenants not to assert any defense or claim
arising out of (i) the California antideficiency laws, including without limitation California Code
of Civil Procedure Sections 580a, 580b, 580d and 726, and (ii) without limiting the generality of
the foregoing, Walker v. Community Bank, 10 Cal. 3d 729, 111 Cal. Rptr. 897, 518 P.2d 329
(1974), Security Pacific Nat’l Bank v. Wozab, 51 Cal. 3d 991, 275 Cal. Rptr. 201, 800 P.2d
557 (1990), and similar cases, to the extent such claim arises out of or relates to the exercise of
set off rights by any Deposit Taker.

4 Delivery and Maintenance of Collateral.

     (A) Delivery of Pre-lease Deposits by LRC. On the Effective Date and on each Advance
Date prior to the Base Rent Commencement Date, if the Value of Pre-lease Collateral does not
already equal or exceed the Minimum Collateral Value, LRC must deposit with the Intermediary,
subject to the pledge and security interest created hereby, additional funds as necessary to cause
the Value of the Pre-lease Collateral to be no less than the Minimum Collateral Value. Together
with any such required deposit, LRC must deliver instructions to the Intermediary (with a copy to
BNPPLC), directing the Intermediary to deposit the funds into a specific account then pledged to
BNPPLC hereunder and to use such funds to purchase Eligible Investments, which will also be held
and maintained in such pledged account as Pre-lease Collateral. Each delivery of funds required by
this subparagraph must be received by the Intermediary no later than 12:00 noon (California time)
on the date it is required; if received after 12:00 noon it will be considered for purposes of the
Lease as received on the next following Business Day. At least five days prior to any Advance Date
upon which it is expected that LRC will be required to deliver additional funds pursuant to this
subparagraph, LRC shall notify BNPPLC and the Intermediary thereof and of the amount LRC expects to
deliver to the Intermediary for deposit as Pre-lease Collateral on the applicable Advance Date. In
addition to required deliveries of Pre-lease Deposits as provided in the foregoing provisions, LRC
may on any date (whether or not an Advance Date) deliver additional Pre-lease Deposits as provided
in the penultimate sentence of the definition of Event of Default above.

     (B) Delivery of Cash Collateral by LRC. On the Base Rent Commencement Date and
each Business Day thereafter, including each Base Rent Date, LRC must deliver to BNPPLC for deposit
directly into the Transition Account, or (if directed to do so by BNPPLC) deliver to Deposit Takers
for deposit directly into the Deposit Accounts, in either case subject to the pledge and security
interest created hereby, funds as Cash Collateral then needed (if any) to cause the

 
Pledge Agreement (Livermore/ Parcel 7) — Page 13

 

 

Value of the Cash Collateral to be no less than the Minimum Collateral Value. In the case of
deliveries required on any Base Rent Date, each delivery of funds required by the preceding
sentence must be received by BNPPLC no later than 12:00 noon (California time) on the date it is
required; if received after 12:00 noon it will be considered for purposes of the Lease as received
on the next following Business Day. At least five days prior to any date upon which it is expected
that LRC will be required to deliver additional funds pursuant to this subparagraph, LRC shall
notify BNPPLC and the Participants thereof and of the amount LRC expects to deliver to BNPPLC or
Deposit Takers as Cash Collateral; provided, however, such notice will not be required as a
condition to the delivery of additional Cash Collateral to prevent or cure an Event of Default as
provided in the last sentence of the definition of Event of Default above.

     (C) Transition Account. Pending deposit in the Deposit Accounts or other application
as provided herein, all Cash Collateral received by BNPPLC shall be credited to and held by BNPPLC
in an account maintained by BNPPLC in its own name with BNPPLC’s Parent (the “Transition Account”),
but held for the benefit of BNP Paribas Leasing Corporation and the Participants separate and apart
from all other property and funds of BNPPLC, LRC or other Persons, and no other property or funds
shall be deposited in the Transition Account. The books and records of BNPPLC shall reflect that
the Transition Account and all Cash Collateral on deposit therein are owned by LRC, subject to a
pledge and security interest in favor of BNPPLC for the benefit of BNPPLC and Participants.

     (D) Allocation of Cash Collateral Among Deposit Takers. Funds received by BNPPLC from
LRC as Cash Collateral will be allocated for deposit among the Deposit Takers (other than
Disqualified Deposit Takers) as follows:

first, to the extent possible the funds will be allocated as required to rectify and
prevent any Collateral Imbalance; and

second, the funds will be allocated to the Deposit Taker for BNPPLC, unless the
Deposit Taker for BNPPLC has become a Disqualified Deposit Taker, in which case the funds
will be allocated to other Deposit Takers who are not Disqualified Deposit Takers as BNPPLC
deems appropriate.

Further, if for any reason a Collateral Imbalance is determined by BNPPLC to exist, BNPPLC
shall, as required to rectify or mitigate the Collateral Imbalance, promptly reallocate Collateral
among Deposit Takers by withdrawing Cash Collateral from some Deposit Accounts and redepositing it
in other Deposit Accounts or by transferring Cash Collateral directly from some Deposit Accounts to
others; except as otherwise provided in subparagraph 3(B). (If either party
to this Agreement believes that the Value of the Deposit Accounts held by a particular Deposit
Taker causes a Collateral Imbalance to exist, that party will promptly notify the other party to
this Agreement and the Participants.) Subject to the foregoing, and provided that BNPPLC does

 
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not thereby create or exacerbate any Collateral Imbalance which is not excused by subparagraph
3(B), BNPPLC may withdraw and redeposit Cash Collateral or cause it to be transferred directly from
one Deposit Account to another in order to reallocate the same among Deposit Takers from time to
time as BNPPLC deems appropriate. For purposes of illustration only, examples of the allocations
required by this subparagraph are set forth in Exhibit D.

     (E) Status of the Deposit Accounts Under the Reserve Requirement Regulations. Each
Deposit Taker shall be permitted to structure the Deposit Account maintained by it as a nonpersonal
time deposit under 12 C.F.R., Part II, Chapter 204 (commonly known as “Regulation D”).
Accordingly, any Deposit Taker may require at least seven days advance notice of any withdrawal or
transfer of funds from the Deposit Account maintained by it and may limit the number of withdrawals
or transfers from such Deposit Account to no more than six in any calendar month, notwithstanding
anything to the contrary herein or in any deposit agreement that LRC and such Deposit Taker may
enter into with respect to such Deposit Account. As necessary to satisfy the seven days notice
requirement with respect to withdrawals by BNPPLC when required by LRC pursuant to the provisions
below, BNPPLC shall notify the affected Deposit Takers promptly after receipt of any notice from
LRC described in subparagraph 5(B)(4) or in subparagraph 5(C).

     (F) Acknowledgment by LRC that Requirements of this Agreement are Commercially
Reasonable. LRC acknowledges and agrees that the requirements set forth herein concerning
receipt, deposit, withdrawal, allocation, application and distribution of Cash Collateral by
BNPPLC, including the requirements and time periods set forth in the Paragraph 5, are commercially
reasonable.

5 Withdrawal of Collateral.

     (A) Withdrawal and Management of Pre-lease Collateral. LRC may require BNPPLC to
provide to the Intermediary approval of any directions to withdraw any specified Pre-lease
Collateral from any account maintained by the Intermediary and pledged hereunder and to deliver the
same to LRC or as may otherwise be provided in those directions (which delivery shall be free and
clear of all liens and security interests hereunder, except in the case of any delivery of funds by
the Intermediary to BNPPLC on behalf of LRC to satisfy the requirements of subparagraph 5(B)
below), if, but only if, in each case all four of the following conditions are satisfied:

     (1) Either:

     (a) such withdrawal and delivery of specified Pre-lease Collateral will not
cause the Value of the remaining Pre-lease Collateral, which is subject to a
Qualified Pledge hereunder, to be less than the Minimum Collateral Value; or

 
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     (b) the Completion Date shall have occurred and LRC shall already have
delivered sufficient Cash Collateral to BNPPLC to satisfy the requirements of
subparagraph 5(B) below; or

     (c) the directions to be approved by BNPPLC will require the Intermediary to
withdraw and deliver funds directly to and only to BNPPLC, on behalf of LRC, as Cash
Collateral pledged pursuant to this Agreement.

     (2) LRC must give BNPPLC notice of the required withdrawal three Business Days prior to
the date upon which the withdrawal is to occur, together a copy of the directions to the
Intermediary for which BNPPLC’s approval will be required by this subparagraph 5(A) to
accomplish the withdrawal.

     (3) No Default (under and as defined in this Agreement) shall have occurred and be
continuing, and no Default (as defined in the Common Definitions and Provisions Agreement)
shall have occurred and be continuing, at the time LRC gives the notice required by the
preceding subparagraph or on the date upon which the withdrawal is required. Furthermore,
in order to preserve BNPPLC’s right to prohibit withdrawals when a Default (as defined
herein or in the Common Definitions Agreement) has occurred and is continuing, the
directions to be approved by BNPPLC must expressly confirm and provide that BNPPLC may
terminate its approval, and thereby prohibit subsequent withdrawals without its consent, by
notice given to the Intermediary.

     (4) LRC will not request BNPPLC’s approval of more than eight withdrawals of Pre-lease
Collateral during any one calendar month.

If the conditions listed in the preceding clauses (1), (3) and (4) are satisfied, and if BNPPLC
receives from LRC the notice and the copy of directions to the Intermediary described in the
preceding clause (2) less than three Business Days prior to, but at least one Business Day prior
to, the date upon which a withdrawal is expected to occur, then BNPPLC will endeavor in good faith
to quickly evaluate and act upon the notice so as not to delay the withdrawal; provided,
however, in that event, BNPPLC will suffer no liability for failing to do so.

In addition to LRC’s right to arrange withdrawals of Pre-lease Collateral upon satisfaction
of the conditions specified above in this subparagraph, so long as the Intermediary is State Street
Bank and Trust Company and it remains bound by the Initial Control Agreement, and prior to BNPPLC’s
delivery of any Notice of Control (under and as defined in the Initial Control Agreement), LRC may
also give Proper Instructions (under and as defined in the Initial Control Agreement) directing the
Intermediary to (i) allocate or reallocate investments held in the Securities Account among
Eligible Investments (including directions to liquidate any Eligible Investment in whole or in part
and then reinvest the proceeds thereof in one or more other

 
Pledge Agreement (Livermore/ Parcel 7) — Page 16

 

 

Eligible Investments) or (ii) substitute Eligible Investments with other Eligible Investments in a
manner that satisfies the conditions to substitutions expressly set forth in the Initial Control
Agreement.

     (B) Withdrawal of Cash Collateral After the Base Rent Commencement Date and Prior to the
Designated Sale Date. LRC may require BNPPLC to withdraw Cash Collateral from one or more
Deposit Accounts on any date prior to the Designated Sale Date and to deliver such Cash Collateral
to LRC (which delivery shall be free and clear of all liens and security interests hereunder) if,
but only if, in each case all of the following conditions are satisfied:

     (1) Such withdrawal and delivery of the Collateral to LRC can be accomplished without
causing or exacerbating a Collateral Imbalance.

     (2) Such withdrawal and delivery of the Collateral to LRC will not cause the Value of
the remaining Cash Collateral, which is subject to a Qualified Pledge hereunder, to be less
than the Minimum Collateral Value.

     (3) Either:

     (a) such withdrawal and delivery of Collateral to LRC will occur on the last
day of a Base Rent Period (i.e., a Base Rent Date upon which a Base Rent Period will
end); or

     (b) the amount of such withdrawal will be limited in amount so as not to
include any interest that has accrued on any Deposit Account from the latest Base
Rent Date preceding such withdrawal.

     (4) LRC must give BNPPLC notice of the required withdrawal at least ten days prior to
the date upon which the withdrawal is to occur. If such notice applies only to the periodic
withdrawal of interest accruing on the Deposit Accounts, it may be in the form of
Exhibit E. Otherwise, such notice must be in the form of Exhibit F.

     (5) No Default (under and as defined in this Agreement) shall have occurred and be
continuing, and no Default (as defined in the Common Definitions and Provisions Agreement)
shall have occurred and be continuing, at the time LRC gives the notice required by the
preceding subparagraph or on the date upon which the withdrawal is required.

     (C) Withdrawal and Application of Cash Collateral to Reduce or Satisfy the Secured
Obligations to BNPPLC. To satisfy the Secured Obligations, LRC may require BNPPLC to withdraw
and retain any Cash Collateral held by any Deposit Taker on the Designated Sale Date

 
Pledge Agreement (Livermore/ Parcel 7) — Page 17

 

 

(which retention by BNPPLC shall be free and clear of all liens and security interests
hereunder) as a payment on behalf of LRC of any amounts then due from LRC under the Purchase
Agreement; provided, that by a notice in the form of Exhibit G, LRC must have notified
BNPPLC of the required withdrawal and payment to BNPPLC at least ten days prior to the date upon
which it is to occur and when no Event of Default (under and as defined in this Agreement or as
defined in the Common Definitions and Provisions Agreement) has occurred and is continuing.

     (D) Withdrawal and Return of Cash Collateral Following Satisfaction of all Secured
Obligations. Following the Designated Sale Date, when all Secured Obligations have been
satisfied in full, any remaining Cash Collateral that has not been withdrawn and applied against
the Secured Obligations shall revert to LRC as provided in subparagraph 9(F), whereupon LRC may
require BNPPLC to withdraw such remaining Cash Collateral then maintained pursuant to this
Agreement and promptly transfer such remaining Cash Collateral to LRC.

     (E) No Other Right to Require or Make Withdrawals. LRC may not withdraw or require
any withdrawal of Collateral from any account or deposit account pledged hereunder, including the
Deposit Accounts, except as expressly provided in the preceding subparagraphs of this Paragraph 5.
LRC acknowledges that it will have no check writing privileges or line of credit or credit card
privileges under any such pledged account or deposit account, including the Deposit Accounts.

     (F) BNPPLC’s Covenant Not to Make Unauthorized Withdrawals. Notwithstanding
provisions of any Control Agreement or of any Deposit Taker’s Agreement which may state that
BNPPLC is entitled to withdraw Collateral held by the Intermediary or any Deposit Taker without any
prior consent or authorization of LRC, BNPPLC covenants to LRC (as between BNPPLC and LRC) that
BNPPLC will not exercise such rights to withdraw Collateral except (1) as required or permitted by
this Paragraph 5, (2) in the exercise of BNPPLC’s rights or remedies as otherwise herein provided,
or (3) as may from time to time be requested or approved by LRC.

     6 Representations and Covenants of LRC.

     (A) Representations of LRC. LRC represents to BNPPLC as follows:

     (1) LRC is the legal and beneficial owner of the Collateral (or, in the case of
after-acquired Collateral, at the time LRC acquires rights in the Collateral, will be the
legal and beneficial owner thereof), subject to the pledge and rights hereby granted in
favor of BNPPLC. No other Person has (or, in the case of after-acquired Collateral, at the
time LRC acquires rights therein, will have) any right, title, claim or interest (by way of
Lien, purchase option or otherwise) in, against or to the Collateral, except for rights
created hereunder.

 
Pledge Agreement (Livermore/ Parcel 7) — Page 18

 

 

     (2) BNPPLC has (or in the case of after-acquired Collateral, at the time LRC
acquires rights therein, will have) a valid, first priority, perfected pledge of and
security interest in the Collateral, regardless of the characterization of the Collateral as
deposit accounts, instruments or general intangibles under the UCC, but assuming that the
representations of each Deposit Taker in its Deposit Taker’s Agreement are true.

     (3) LRC has delivered to BNPPLC, together with all necessary stock powers,
endorsements, assignments and other necessary instruments of transfer, the originals of all
documents, instruments and agreements evidencing the Collateral.

     (4) Neither the ownership or the intended use of the Collateral by LRC, nor the pledge
of Collateral or the grant of the security interest by LRC to BNPPLC herein, nor the
exercise by BNPPLC of its rights or remedies hereunder, will (i) violate any provision of
(a) Applicable Law, (b) the articles or certificate of incorporation, charter or bylaws of
LRC, or (c) any agreement, judgment, license, order or permit applicable to or binding upon
LRC, or (ii) result in or require the creation of any Lien, charge or encumbrance upon any
assets or properties of LRC except as expressly contemplated in this Agreement. Except as
expressly contemplated in this Agreement, no consent,
approval, authorization or order of, and no notice to or filing with any court,
governmental authority or third party is required in connection with the pledge or grant by
LRC of the security interest contemplated herein or the exercise by BNPPLC of its rights and
remedies hereunder.

     (B) Covenants of LRC. LRC hereby agrees as follows:

     (1) LRC, at LRC’s expense, shall promptly procure, execute and deliver to BNPPLC all
documents, instruments and agreements and perform all acts which are necessary or desirable,
or which BNPPLC may request, to establish, maintain, preserve, protect and perfect the
Collateral, the pledge thereof to BNPPLC or the security interest granted to BNPPLC therein
and the first priority of such pledge or security interest or to enable BNPPLC to exercise
and enforce its rights and remedies hereunder with respect to any Collateral. Without
limiting the generality of the preceding sentence, LRC shall (A) procure, execute and
deliver to BNPPLC all stock powers, endorsements, assignments, financing statements and
other instruments of transfer requested by BNPPLC, (B) deliver to BNPPLC promptly upon
receipt all originals of Collateral consisting of instruments, documents and chattel paper,
and (C) cause the security interest of BNPPLC in any Collateral consisting of securities to
be recorded or registered in the books of any financial intermediary or Clearing System
requested by BNPPLC.

     (2) When applicable law provides more than one method of perfection of

 
Pledge Agreement (Livermore/ Parcel 7) — Page 19

 

 

BNPPLC’s security interest in the Collateral, BNPPLC may choose the method(s) to be
used. LRC hereby authorizes BNPPLC to file any financing statements or financing statement
amendment covering all or any portion of the Collateral or relating to the security interest
created herein.

     (3) LRC shall not use or authorize or consent to any use of any Collateral in violation
of any provision of this Agreement or any other Operative Document or any Applicable Law.

     (4) LRC shall pay promptly when due all taxes and other governmental charges, Liens and
other charges now or hereafter imposed upon, relating to or affecting any Collateral or
arising on any interest or earnings thereon.

     (5) LRC shall appear in and defend, on behalf of BNPPLC, any action or proceeding which
may affect LRC’s title to or BNPPLC’s interest in the Collateral.

     (6) Subject to the express rights of LRC under Paragraph 5, LRC shall not surrender or
lose possession of (other than to BNPPLC or an Intermediary or a Deposit Taker pursuant
hereto), encumber, lease, rent, option, or otherwise dispose of or transfer any Collateral
or right or interest therein, and LRC shall keep the Collateral free of all Liens (other
than Liens granted under this Agreement). Without limiting the foregoing, LRC will not,
with respect to any Pre-lease Collateral, (i) file or permit to be filed any financing or
like statement in which BNPPLC is not named as the sole secured party, (ii) consent or be a
party to any securities account control agreement or other similar agreement with any
Intermediary to which BNPPLC is not also a party, (iii) pledge or otherwise encumber such
Pre-lease Collateral, or (iv) except as permitted by the last sentence of subparagraph
5(A)(3) above, sell, assign, or otherwise dispose of, or grant any option with respect to,
such Pre-lease Collateral. The rights granted to BNPPLC pursuant to this Agreement are in
addition to the rights granted to BNPPLC in any Control Agreement or other custody,
investment management, trust, account control agreement or similar agreement. In case of
conflict between the provisions of this Agreement and of any other such agreement, the
provisions of this Agreement will prevail.

     (7) LRC will not take any action which would in any manner impair the value or
enforceability of BNPPLC’s pledge of or security interest in any Collateral, nor will LRC
fail to take any action which is required to prevent (and which LRC knows is required to
prevent) an impairment of the value or enforceability of BNPPLC’s pledge of or security
interest in any Collateral.

     (8) Without limiting the foregoing, within five days after LRC becomes aware

 
Pledge Agreement (Livermore/ Parcel 7) — Page 20

 

 

of any failure of the pledge or security interest contemplated herein in any Pre-lease
Collateral, the Transition Account or any Deposit Account or Cash Collateral to be a valid,
perfected, first priority pledge or security interest (regardless of the characterization
thereof as deposit accounts, securities accounts, instruments or general intangibles under
the UCC), LRC shall notify BNPPLC of such failure.

7 Authorized Action by BNPPLC.

     LRC hereby irrevocably appoints BNPPLC as LRC’s attorney-in-fact for the purpose of
authorizing BNPPLC to perform (but BNPPLC shall not be obligated to and shall incur no liability to
LRC or any third party for failure to perform) any act which LRC is obligated by this Agreement to
perform, and to exercise, consistent with the other provisions of this Agreement,
such rights and powers as LRC might exercise with respect to the Collateral during any period
in which a Default has occurred and is continuing, including the right to (a) collect by legal
proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments,
proceeds and other sums and property now or hereafter payable on or on account of the Collateral;
(b) enter into any extension, reorganization, deposit, merger, consolidation or other agreement
pertaining to, or deposit, surrender, accept, hold or apply other property in exchange for the
Collateral; (c) insure, process, preserve and enforce the Collateral; (d) make any compromise or
settlement, and take any action it deems advisable, with respect to the Collateral; (e) pay any
indebtedness of LRC relating to the Collateral; and (f) execute UCC financing statements and other
documents, instruments and agreements required hereunder.

8 Default and Remedies.

     (A) Remedies. In addition to all other rights and remedies granted to BNPPLC by this
Agreement and other Operative Documents or by the UCC and other Applicable Laws, BNPPLC may, upon
the occurrence and during the continuance of any Event of Default, exercise any one or more of the
following rights and remedies, all of which will be in furtherance of its rights as a secured party
under the UCC:

     (1) BNPPLC may collect, receive, appropriate or realize upon the Collateral or
otherwise foreclose or enforce the pledge of or security interests in any or all Collateral
in any manner permitted by Applicable Law or in this Agreement.

     (2) BNPPLC may notify any Deposit Taker to pay all or any portion
of Cash Collateral held by such Deposit Taker directly to BNPPLC up to an
amount equal to the then outstanding Secured Obligations. BNPPLC shall apply
any Cash Collateral or proceeds of other Collateral received by BNPPLC after
the occurrence of an Event of Default to the Secured Obligations in any order
BNPPLC believes to be in its best interest. If any such Cash Collateral or
proceeds received by BNPPLC remains after all

 
Pledge Agreement (Livermore/ Parcel 7) — Page 21

 

 

Secured Obligations have been paid in full, BNPPLC will deliver or direct the
Deposit Takers to deliver the same to LRC or other Persons entitled thereto.

Without limiting the foregoing, when any Event of Default has occurred and is continuing,
BNPPLC may, without notice or demand, sell, redeem, offset, setoff, debit, charge or otherwise
dispose of or liquidate into cash any Collateral and/or to apply it or the proceeds thereof to
repay any or all of the Secured Obligations in such order as BNPPLC believes to be in its best
interest,regardless of whether any such Secured Obligations are contingent, unliquidated or unmatured or
whether BNPPLC has any other recourse to LRC or any Other Liable Party or any other collateral or
assets (including the Property). Moreover, regardless of whether BNPPLC commences any action to
foreclose the lien and security interest granted in Exhibit B to the Lease (a “Property
Foreclosure”) before, after or contemporaneously with any action BNPPLC may take under this Pledge
Agreement to collect Cash Collateral or proceeds of other Collateral, and regardless of whether
BNPPLC actually receives proceeds of a Property Foreclosure before or after it receives Cash
Collateral or proceeds of other Collateral, BNPPLC will be entitled to apply Cash Collateral and
proceeds of other Collateral to satisfy or reduce the Secured Obligations before applying the
proceeds of a Property Foreclosure to other remaining obligations secured as described in
Exhibit B to the Lease. Also, BNPPLC may exercise its rights without regard to any premium
or penalty from liquidation of any Collateral and without regard to LRC’s basis or holding period
for any Collateral.

In connection with the exercise of its remedies under this Agreement, BNPPLC may sell from its
offices in Dallas, Texas, or elsewhere, in one or more sales, at the price as BNPPLC deems best,
for cash or on credit or for other property, for immediate or future delivery, any item of the
Collateral, at any broker’s board or at public or private sale, in any reasonable manner
permissible under the UCC (except that, to the extent permissible under the UCC, LRC waives any
requirements of the UCC) and BNPPLC or anyone else may be the purchaser of the Collateral and hold
it free from any claim or right including, without limitation, any equity of redemption of LRC,
which right LRC expressly waives. BNPPLC may in its sole discretion elect to conduct any sale (and
related offers) of any Collateral in such a manner as to avoid the need for registration or
qualification thereof under any Federal or state securities laws, that such conduct may include
restrictions (including as to potential purchasers) and other requirements (such as purchaser
representations) which may result in prices or other terms less favorable than those which might
have been obtained through a public sale not subject to such restrictions and requirements and that
any offer and sale so conducted shall be deemed to have been made in a commercially reasonable
manner.

In connection with the exercise of its remedies, BNPPLC may also, in its sole discretion, for its
own benefit, acting either in its own name or in the name of LRC:

     (i) hold any monies or proceeds representing the Collateral in a
cash collateral account in U.S. dollars or other currency that BNPPLC
reasonably selects and

 
Pledge Agreement (Livermore/ Parcel 7) — Page 22

 

 

invest such monies or proceeds on behalf of LRC;

     (ii) with respect to any deposits constituting Pre-lease Collateral: (x) renew
such deposits on terms and for periods BNPPLC deems appropriate; (x) demand, collect, and
receive payment of any monies or proceeds due or to become due in respect of such deposits;
or (z) execute any instruments required for the withdrawal or repayment of the such
deposits;

     (iii) with respect to any Securities constituting Pre-lease Collateral: A) transfer
such Securities to an account of BNPPLC, whether in the possession of, or registered in the
name of, any Clearing System or held otherwise; B) transfer any such Securities held in book
entry form with any Federal Reserve Administrative Agent to the account of BNPPLC with such
Federal Reserve Administrative Agent; or C) transfer any such Securities registered in the
name of LRC to the name of BNPPLC or its nominee and complete and deliver any necessary
stock powers or other transfer instruments;

     (iv) convert any Collateral denominated in a currency other than U.S. dollars to U.S.
dollars at the spot rate of exchange for the purchase of U.S. dollars with such other
currency which is quoted by a branch or office of BNPPLC’s Parent selected by BNPPLC (or, if
no such rate is quoted by BNPPLC’s Parent on any relevant date, then at a rate estimated by
BNPPLC on the basis of other quoted spot rates) or another prevailing rate that BNPPLC
reasonably deems more appropriate; or

     (v) apply any portion of the Collateral, first, to pay or reimburse all costs and
expenses of BNPPLC and then to all or any portion of the Secured Obligations in such order
as BNPPLC may believe to be in its best interest.

In any event, LRC will pay to BNPPLC upon demand all expenses (including Attorneys’ Fees) incurred
by BNPPLC in connection with the exercise of any of BNPPLC’s rights or remedies under this
Agreement.

Notwithstanding that BNPPLC may continue to hold Collateral and regardless of the value of the
Collateral, LRC will remain liable for the payment in full of any unpaid balance of the Secured
Obligations.

In any case where notice of any sale or disposition of any Collateral is required, LRC hereby
agrees that seven (7) days notice of such sale or disposition is reasonable.

     (B) Recovery Not Limited. To the fullest extent permitted by applicable law,
LRC waives any right to require that BNPPLC proceed against any other Person, exhaust any
Collateral or other security for the Secured Obligations, or to have any Other Liable Party joined

 
Pledge Agreement (Livermore/ Parcel 7) — Page 23

 

 

with LRC in any suit arising out of the Secured Obligations or this Agreement, or pursue any
other remedy in their power. LRC waives any and all notice of acceptance of this Agreement. LRC
further waives notice of the creation, modification, rearrangement, renewal or extension for any
period of any of the Secured Obligations of any Other Liable Party from time to time and any
defense arising by reason of any disability or other defense of any Other Liable Party or by reason
of the cessation from any cause whatsoever of the liability of any Other Liable Party. Until all
of the Secured Obligations shall have been paid in full, LRC shall have no right to subrogation,
reimbursement, contribution or indemnity against any Other Liable Party and LRC waives the right to
enforce any remedy which BNPPLC has or may hereafter have against any Other Liable Party, and
waives any benefit of and any right to participate in any other security whatsoever now or
hereafter held by or on behalf of BNPPLC. LRC authorizes BNPPLC, without notice or demand and
without any reservation of rights against LRC and without affecting LRC’s liability hereunder or on
the Secured Obligations, from time to time to (a) take or hold any other property of any type from
any other Person as security for the Secured Obligations, and exchange, enforce, waive and release
any or all of such other property, (b) after and during the continuance of any Event of Default,
apply or require the application of the Collateral (in accordance with this Agreement) or such
other property in any order they may determine and to direct the order or manner of sale thereof as
they may determine, (c) renew, extend for any period, accelerate, modify, compromise, settle or
release any of the obligations of any Other Liable Party with respect to any or all of the Secured
Obligations or other security for the Secured Obligations, and (d) release or substitute any Other
Liable Party.

9 Miscellaneous.

     (A) Payments by LRC to BNPPLC. All payments and deliveries of funds required to be
made by LRC to BNPPLC hereunder shall be paid or delivered in immediately available funds by wire
transfer to the Transition Account in accordance with wiring instructions which will be provided by
BNPPLC to LRC. Time is of the essence as to all payments and deliveries of funds by LRC to BNPPLC
under this Agreement.

     (B) Payments by BNPPLC to LRC. All payments of Cash Collateral withdrawn by BNPPLC
from the Deposit Accounts and required to returned by BNPPLC to LRC hereunder shall be paid or
delivered in immediately available funds by wire transfer to:

Lam Research Corporation

USD Concentration Account B LaSalle Bank NA

	 	 	 	 	 	 	 
	 

	 	Bank Name:
	 	LaSalle National Bank

	 

	 	Bank Address:
	 	135 S. LaSalle Street

Chicago, Il 60603

	 

	 	ABA # (Domestic):
	 	071000505 	 	 

 
Pledge Agreement (Livermore/ Parcel 7) — Page 24

 

 

	 	 	 	 	 
	 

	 	SWIFT ID (Int’l):
	 	LASLUS44
	 

	 	Account Name:
	 	Lam Research Corporation
	 

	 	Account Number:
	 	58000-68321
	 

	 	Bank Contact:
	 	Juliana Silvestri
	 

	 	 	 	312-904-0445
	 

	 	 	 	juliana.silvestri@abnamro.com
	 

	 	Reference:
	 	BNPPLC Lease (Return of Collateral -
Livermore/Parcel 7)

or at such other place and in such other manner as LRC may designate in a notice sent to
BNPPLC. Time is of the essence as to all such payments by BNPPLC to LRC.

     (C) Cumulative Rights, etc. Except as herein expressly provided to the
contrary, the rights, powers and remedies of BNPPLC under this Agreement shall be in
addition to all rights, powers and remedies given to them by virtue of any Applicable Law,
any other Operative Document or any other agreement, all of which rights, powers, and
remedies shall be cumulative and may be exercised successively or concurrently without
impairing their respective rights hereunder. LRC waives any right to require BNPPLC to
proceed against any Person or to exhaust any Collateral or other collateral or security or
to pursue any remedy in BNPPLC’s power.

     (D) Survival of Agreements. All representations and warranties of LRC herein,
and all covenants and agreements herein shall survive the execution and delivery of this
Agreement, the execution and delivery of any other Operative Documents and the creation of
the Secured Obligations and continue until terminated or released as provided herein.

     (E) Other Liable Party. Neither this Agreement nor the exercise by BNPPLC or
the failure of BNPPLC to exercise any right, power or remedy conferred herein or by law
shall be construed as relieving LRC or any Other Liable Party from liability on the Secured
Obligations or any deficiency thereon. This Agreement shall continue irrespective of the
fact that the liability of any Other Liable Party may have ceased or irrespective of the
validity or enforceability of any other agreement evidencing or securing the Secured
Obligations to which LRC or any Other Liable Party may be a party, and notwithstanding the
reorganization, death, incapacity or bankruptcy of any Other Liable Party, or any other
event or proceeding affecting any Other Liable Party.

 
Pledge Agreement (Livermore/ Parcel 7) — Page 25

 

 

     (F) Termination. Following the Designated Sale Date, upon satisfaction in full
of all Secured Obligations (other than contingent indemnity obligations) and upon written request
for the termination of this Agreement delivered by LRC to BNPPLC, BNPPLC will execute and deliver,
at LRC’s expense, an acknowledgment that this Agreement and the pledge and security interest
created hereby are terminated, whereupon all rights to any remaining Collateral that has not been
applied against Secured Obligations in accordance with this Agreement shall revert to LRC.

[The signature pages follow.]

 
Pledge Agreement (Livermore/ Parcel 7) — Page 26

 

 

     IN WITNESS WHEREOF, this Pledge Agreement (Livermore/ Parcel 7) is executed to be effective as
of December 18, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Barry Mendelsohn 	 
	 	 	Barry Mendelsohn, Director 	 
	 	 	 	 
	 

 
Pledge Agreement (Livermore/ Parcel 7) — Signature Page

 

 

[Continuation of signature pages for Pledge Agreement (Livermore/ Parcel 7) dated as of December
18, 2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a 

Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 
	 

 
Pledge Agreement (Livermore/ Parcel 7) — Signature Page

 

 

Exhibit A

TO PLEDGE AGREEMENT

CRITERIA FOR ELIGIBLE INVESTMENTS

1. Eligible Investments. Eligible Investments will include only the following (and in the case of
any of the following which are registered in the name of the LRC, payable to the LRC’s order, or
specifically endorsed to LRC, only those which have been endorsed by LRC to the Intermediary or in
blank):

	 	•	 	Direct obligations of the US government and federal agencies.
	 
	 	•	 	Commercial paper and corporate notes including bonds and medium term notes.
	 
	 	•	 	Bank instrument of top 100 (ranked by asset size) international banks or the top 50
domestic banks ranked by American Banker. This may include Bankers Acceptances and Bankers
Notes.

2. Maturity. The maximum maturity of any single investment is as follows:

	 	•	 	Direct obligations of US government and federal agencies: 10 years
	 
	 	•	 	Other Eligible Investments: 7 years

Maturity is defined as actual maturity, put, remarketing, auction, or pre-refunding date from the
date of settlement.

3. Acceptable Ratings. The following minimum rating rules apply to issuers of Eligible Investments
other than direct obligations of the US government:

	 	 	 	 	 	 	 
	 	 	Moody’s	 	S&P	 	Fitch
	Short Term

	 	P-1
	 	A-1
	 	F1
	Long Term

	 	A2
	 	A
	 	A

And such issuers must have a rating assigned by two of the following rating agencies: Moody’s
Investors Service, Standard & Poor’s, and/or Fitch Ratings. In the event of a “split rating”, the
lower rating must comply with the minimum rating rules.

 

 

Exhibit B

TO PLEDGE AGREEMENT

AGREEMENT RE: BLOCKED ACCOUNT

(LIVERMORE/ PARCEL 7)

          This Agreement (the “Agreement”), among                                          (the “Deposit Taker”), LAM RESEARCH
CORPORATION (“LRC”) and BNP PARIBAS LEASING CORPORATION (“BNPPLC”) pursuant to the Pledge Agreement
(Livermore/ Parcel 7) dated as of December 18, 2007, as amended from time to time (the “Pledge
Agreement”), is dated as of                     , 20___, and shall serve as instructions regarding the
following deposit account established by LRC at the Deposit Taker (the “Deposit Account”):

	 	 	 	 	 
	Account	 	Account	 	Account
	Type	 	Office	 	Number
	 
	 	 	 	 
	Time Deposit

	 	 
	 	 

The Deposit Account is styled “LAM RESEARCH CORPORATION, pledged to BNP Paribas Leasing
Corporation” or some abbreviation thereof made by Deposit Taker for operational purposes.

     1. Lien. As provided in the Pledge Agreement, LRC has granted to BNPPLC a continuing
lien on and security interest in the Deposit Account and all amounts from time to time on deposit
therein. The parties hereto agree that this Agreement complies with [Section 9-104(a)(2) of the
Illinois Uniform Commercial Code]. (Unless otherwise defined herein, all capitalized terms used in
this Agreement have the respective meanings given to those terms in the Pledge Agreement.)

     2. Duties. Deposit Taker agrees to take such action with respect to the Deposit
Account as shall from time to time be specified in any writing purportedly from BNPPLC as provided
herein. LRC and BNPPLC agree that: (a) Deposit Taker has no duty to monitor the balance of the
Deposit Account; (b) BNPPLC may at any time make withdrawals from the Deposit Account and take any
and all actions with respect to the Deposit Account, and Deposit Taker is hereby authorized to
honor any instructions with respect to the Deposit Account (including withdrawals therefrom) which
purport to be from BNPPLC (in each case without notifying or obtaining the consent of LRC); (c)
Deposit Taker may, without further inquiry, rely on and act in accordance with any instructions it
receives from (or which purport to be from) BNPPLC, notwithstanding any conflicting or contrary
instructions it may receive from LRC, and Deposit Taker shall have no liability to BNPPLC, LRC or
any other person in relying on and acting in accordance with any such instructions; (d) Deposit
Taker shall have no responsibility to inquire as to the form, execution, sufficiency or validity of
any notice or instructions delivered to it hereunder, nor to inquire as to the identity, authority
or rights of the person or persons executing or delivering the same, and (e) Deposit Taker shall
have a reasonable period of time

 

 

within which to act in accordance with any notice or instructions from BNPPLC with respect to
the Deposit Account. Notwithstanding the preceding terms of this Section, it is expressly
understood and agreed that any direction or request by BNPPLC with respect to the Deposit Account
will apply only to available funds on deposit in the Deposit Account and BNPPLC shall make
withdrawals from the Deposit Account only via fedwire or by electronic funds transfer.

     3. Interest on the Deposit Account. Deposit Taker will have no obligation to pay any
interest on the Deposit Account except as follows: on each Base Rent Date accrued interest on each
Deposit Account maintained by Deposit taker will be added to the Deposit Account for the period
(the “Interest Period”) since the preceding Base Rent Date (or if there was no preceding Base Rent
Date, since the Base Rent Commencement Date) equal to the product of:

	 	•	 	the lesser of (i) an amount, computed as of the first day of the Base
Rent Period that includes or coincides with such Interest Period, equal to
a fraction of the Lease Balance, the numerator of which fraction equals the
funds held in the Deposit Account on such first day and the denominator of
which fraction equals the total of all Cash Collateral pledged to BNPPLC on
such first day, or (ii) the principal balance of the Deposit Account on the
first day of such Interest Period, times
	 
	 	•	 	the Collateral Percentage for the Base Rent Period that includes or
coincides with such Interest Period, times
	 
	 	•	 	LIBID for such Interest Period, times
	 
	 	•	 	the number of days in such Interest Period, divided by
	 
	 	•	 	three hundred sixty.

(As used in this Section 3, capitalized terms defined in the Common Definitions and Provisions
Agreement are intended to have the respective meanings assigned to them in the Common Definitions
and Provisions Agreement.)

     4. Information. Deposit Taker shall provide BNPPLC with such information with respect
to the Deposit Account and all items (and proceeds thereof) deposited in the Deposit Account as
BNPPLC may from time to time reasonably request, and LRC hereby consents to such information being
provided to BNPPLC and agrees to pay all expenses in connection therewith.

     5. Exculpation; Indemnity. Deposit Taker undertakes to perform only such
duties as are expressly set forth herein. Notwithstanding any other provisions of this
Agreement, the

 
Exhibit B to Pledge Agreement (Livermore/ Parcel 7) — Page 2

 

 

parties hereby agree that Deposit Taker shall not be liable for any action taken by it in
accordance with this Agreement, including, without limitation, any action so taken at BNPPLC’s
request, except direct damages attributable to the Deposit Taker’s gross negligence or willful
misconduct. In no event shall Deposit Taker be liable for any (i) losses or delays resulting from
acts of God, war, computer malfunction, interruption of communication facilities, labor
difficulties or other causes beyond Deposit Taker’s reasonable control, or (ii) for indirect,
special, punitive or consequential damages. LRC agrees to indemnify and hold Deposit Taker
harmless from and against all costs, damages, claims, judgments, reasonable attorneys’ fees,
expenses, obligations and liabilities of every kind and nature (collectively, “Losses”) which
Deposit Taker may incur, sustain or be required to pay (other than those attributable to Deposit
Taker’s gross negligence or willful misconduct) in connection with or arising out of this Agreement
or the Deposit Account (including without limitation, the amount of any overdraft created in the
Deposit Account resulting from a Chargeback or from debiting the Deposit Account for Charges
(defined below) owed to the Deposit Taker), and to pay to Deposit Taker on demand the amount of all
such Losses. Nothing in this Section, and no indemnification of Deposit Taker hereunder, shall
affect in any way the indemnification obligations of LRC to BNPPLC under the Pledge Agreement or
other Operative Documents. The provisions of this Section shall survive termination of this
Agreement.

     6. Chargebacks. All items deposited in, and electronic funds transfers credited to,
the Deposit Account and then returned unpaid or returned (or not finally settled) for any reason
(collectively, “Chargebacks”) will be charged back to the Deposit Account, including (a) any item
which is returned because of insufficient or uncollected funds or otherwise dishonored for any
reason, and (b) any returns or reversals relating to electronic funds transfers or deposits into
the Deposit Account.

The Deposit Taker will notify LRC and BNPPLC of any and all Chargebacks which have been charged
back to the Deposit Account by reporting the return of such items (or electronic funds transfers)
to the persons identified in, or as otherwise designated pursuant to, the Section regarding Notices
in this Agreement. The returned item will be sent to LRC along with a debit advice. BNPPLC will
also receive a copy of each such returned item and the debit advice, provided, however, that after
receipt of written notice from BNPPLC, Deposit Taker will send the returned item directly to
BNPPLC.

In the event there are insufficient funds in the Deposit Account to cover such Chargebacks, upon
receipt of notice from Deposit Taker of the occurrence of such Chargebacks and the failure of LRC
to pay Deposit Taker such Chargebacks, BNPPLC agrees to pay the amount of the Chargebacks to
Deposit Taker, in immediately available funds, within one Business Day after receipt of such
notice, provided that (A) in no event will BNPPLC’s obligation to pay any Chargeback to Deposit
Taker exceed the amount of insufficient funds described in this provision, if any, caused by a
withdrawal of funds from the Deposit Account and payment of the same to

 
Exhibit B to Pledge Agreement (Livermore/ Parcel 7) — Page 3

 

 

BNPPLC, and (B) any such liability of BNPPLC to Deposit Taker shall in no way release LRC from
liability to BNPPLC and shall not impair BNPPLC’s rights and remedies against LRC, by way of
subrogation or otherwise, to collect all such Chargebacks.

     7. Charges. In consideration of the services of Deposit Taker in establishing,
maintaining, and conducting transactions through the Deposit Account, Deposit Taker has
established, and LRC hereby agrees to pay the reasonable and customary fees and other charges for
the Deposit Account and services related thereto, together with any and all other expenses incurred
by Deposit Taker in connection with this Agreement or the Deposit Account and related services,
including without limitation amounts paid or incurred by Deposit Taker in enforcing its rights and
remedies under this Agreement, or in connection with defending any claim made against Deposit Taker
in connection with this Agreement or the Deposit Account (collectively, the “Charges”). However,
no Charges will be debited to or offset against funds in the Deposit Account without the prior
written consent of BNPPLC. If LRC fails to pay the amount of the Charges within five (5) Business
Days of receipt of a billing statement detailing such Charges, BNPPLC agrees to pay Deposit Taker,
via wire transfer or other immediately available funds, the amount of such Charges within two (2)
Business Days after receipt of a billing statement detailing such Charges. Deposit Taker will bill
LRC directly, and LRC agrees to pay Deposit Taker, via wire transfer or other immediately available
funds, the amount of such Charges. Deposit Taker reserves the right to change any or all of the
fees and charges according to annual review, upon not less than ten (10) days written notice to LRC
and BNPPLC.

     8. Irrevocable Agreement. LRC acknowledges that the agreements made by it and the
authorizations granted by it herein are irrevocable and that the authorizations granted in Section
2 are powers coupled with an interest.

     9. Set-off. Deposit Taker waives all of its existing and future rights of set-off and
banker’s liens against the Deposit Account and all items (and proceeds thereof) that come into
possession of Deposit Taker in connection with the Deposit Account, except those rights of set-off
and banker’s liens arising in connection with Chargebacks.

     10. Miscellaneous. This Agreement is binding upon the parties hereto and their
respective successors and assigns (including any trustee of LRC appointed or elected in any action
under the Bankruptcy Code) and shall inure to their benefit. Neither LRC nor BNPPLC may assign
their respective rights hereunder unless the prior written consent of the Deposit Taker is
obtained. Neither this Agreement nor any provision hereof may be changed, amended, modified or
waived, except by an instrument in writing signed by the parties hereto. Any provision of this
Agreement that may prove unenforceable under any law or regulation shall not affect the validity of
any other provision hereof. This Agreement shall be governed by, and interpreted in accordance
with, the laws of the state in which the account office identified above is located without regard
to conflict of laws provisions. Each party hereto intentionally,

 
Exhibit B to Pledge Agreement (Livermore/ Parcel 7) — Page 4

 

 

knowingly and voluntarily irrevocably waives any right to trial by jury in any proceeding
related to this Agreement. This Agreement may be executed in any number of counterparts which
together shall constitute one and the same instrument.

     11. Termination and Resignation. This Agreement may be terminated by agreement of
BNPPLC and LRC upon fifteen (15) days’ prior written notice to Deposit Taker; provided, however,
that this Agreement shall terminate immediately upon notice from BNPPLC that all of LRC’s
obligations secured by the Pledge Agreement are satisfied. Deposit Taker may, at any time upon
thirty (30) days’ prior written notice to BNPPLC and LRC, terminate this Agreement and close the
Deposit Account; provided, however, that a substitute deposit taker has been appointed for [BNPPLC
or name of Participant] [if name of Participant is inserted, then also insert: “(in its capacity as
a Participant)”] under and as described in the Pledge Agreement.. Upon termination of this
Agreement any funds in the Deposit Account shall be subject to the direction of BNPPLC, including
any direction given by BNPPLC that such funds be wired to another “Deposit Taker” designated for
[BNPPLC or name of Participant] under and as defined in the Pledge Agreement.

     12. Notices. Unless otherwise specifically provided herein, any notice or other
communication required or permitted to be given shall be in writing addressed to the respective
party as set forth below and may be personally served, telecopied or sent by overnight courier
service and shall be deemed to have been given: (a) if delivered in person, when delivered; (b) if
delivered by telecopy, on the date of transmission if transmitted on a Business Day before 4:00
P.M. (Central time) (but only if such telecopied document is also delivered by another method
permitted by this Agreement by the next banking business day), or, if not, on the next succeeding
Business Day; or (c) if delivered by reputable overnight courier, the banking business day on which
such delivery is made by such courier.

     Notices shall be addressed as follows:

	 	 	 	 	 
	 

	 	BNPPLC:
	 	BNP Paribas Leasing Corporation
	 

	 	 	 	12201 Merit Drive, Suite 860
	 

	 	 	 	Dallas, Texas 75251
	 

	 	 	 	Attention: Lloyd G. Cox, Managing Director
	 
	 	 	 	 
	 

	 	 	 	Telecopy: (972) 788-9140
	 

	 	 	 	Email: lloyd.cox@americas.bnpparibas.com
	 
	 	 	 	 
	 

	 	Deposit Taker:
	 	                                        
	 

	 	 	 	                                        
	 

	 	 	 	                                        
	 

	 	 	 	Attn:                                                

 
Exhibit B to Pledge Agreement (Livermore/ Parcel 7) — Page 5

 

 

	 	 	 	 	 
	 

	 	 	 	Telecopy:                                         
	 
	 	 	 	 
	 

	 	LRC:
	 	Lam Research Corporation
	 

	 	 	 	4300 Cushing Parkway
	 

	 	 	 	Fremont, California 94538
	 

	 	 	 	Attention: Roch LeBlanc, Treasurer
	 
	 	 	 	 
	 

	 	 	 	Telecopy: (512) 572-1586
	 

	 	 	 	Email: Roch.Leblanc@lamrc.com

or in any case, to such other address as the party addressed shall have previously designated by
written notice to the serving party, given in accordance with this Section.

[signature page follows.]

 
Exhibit B to Pledge Agreement (Livermore/ Parcel 7) — Page 6

 

 

     This Agreement has been executed and delivered by each of the parties hereto by a duly
authorized officer of each such party on the date first set forth above.

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	ACCEPTED AND AGREED TO as of this

______day of _____________, ______.

[DEPOSIT TAKER]

 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 
Exhibit B to Pledge Agreement (Livermore/ Parcel 7) — Page 7

 

 

Exhibit C

TO PLEDGE AGREEMENT

DESCRIPTION OF INITIAL PRE-LEASE COLLATERAL

All assets held or to be held in the following custody or subcustody accounts, safekeeping
accounts, investment management accounts and/or other account with the Intermediary:

	 	 	 	 	 
	Type of Account	 	Account Number	 	Entity/Location
	 
	Securities Account

	 	[_________________]
	 	State Street Bank and Trust Company
	 

	 	 	 	                                        
	 

	 	 	 	                                        
	 

	 	 	 	                                        

 

 

Exhibit D

TO PLEDGE AGREEMENT

EXAMPLES OF CALCULATIONS REQUIRED

TO AVOID A COLLATERAL IMBALANCE

     The examples below are provided to illustrate the calculations required for allocations of
Cash Collateral in a manner that will avoid a Collateral Imbalance. The examples are not intended
to reflect actual numbers under this Agreement or actual Percentages of BNPPLC or any of the
Participants; nor are the examples intended to provide a formula for the allocations that would be
appropriate in every case.

EXAMPLE NO. 1

Assumptions:

	1.	 	Two Participants (“Participant A” and “Participant B”) are parties to the Participation
Agreement with BNPPLC. Participant A’s Percentage is 50% and Participant B’s Percentage is
45%, leaving BNPPLC with a Percentage of 5%.

	2.	 	The Initial Advance was $12,000,000, resulting in a Lease Balance of $12,000,000, allocable
as follows:

	 	 	 	 	 
	A.	 	BNPPLC’s Parent (providing BNPPLC’s share) (5%)	$	600,000
	B.	 	Participant A (50%)	 	6,000,000
	C.	 	Participant B (45%)	 	5,400,000
	 	 	 	 
	 	 	TOTAL	$	12,000,000

	3.	 	The initial Minimum Collateral Value was $12,000,000

	4.	 	As of the Effective Date, LRC had delivered to BNPPLC Cash Collateral of $12,000,000, equal
to the Minimum Collateral Value, as required by subparagraph 4(B) of this Agreement.

Allocation of Cash Collateral Required: To avoid a Collateral Imbalance under these
assumptions, BNPPLC would be required to allocate the $12,000,000 to the Deposit Takers for BNPPLC
and the Participants as follows:

	 	 	 	 	 
	A.	 	BNPPLC’s Deposit Taker (5% of Minimum Collateral Value)	$	600,000
	B.	 	Participant A’s Deposit Taker (50% of Minimum Collateral Value)	$	6,000,000
	C.	 	Participant B’s  Deposit Taker (45% of Minimum Collateral Value)	$	5,400,000
	 	 	 	 
	 	 	TOTAL	$	12,000,000

 

 

EXAMPLE NO. 2

Assumptions: Assume the same facts as in Example No. 1, and in addition assume that:

	1.	 	Effective as of the first Base Rent Date, a new Participant approved by LRC (“Participant C”)
became a party to this Agreement and the Participation Agreement, taking a Percentage of 20%.
Simultaneously, Participant A and Participant B voluntarily entered into supplements to the
Participation Agreement which reduced their Percentages to 40% and 35%, respectively, in
return for appropriate payments made to them.

Allocation of Cash Collateral Required: To avoid a Collateral Imbalance under these
assumptions, BNPPLC would be required to allocate the Cash Collateral as required to leave the
Deposit Takers for BNPPLC and the Participants with the following amounts:

	 	 	 	 	 
	A.	 	BNPPLC’s Deposit Taker (5% of Minimum Collateral Value)	$	600,000
	B.	 	Participant A’s Deposit Taker (40% of Minimum Collateral Value)	$	4,800,000
	C.	 	Participant B’s Deposit Taker (35% of Minimum Collateral Value)	$	4,200,000
	D.	 	Participant C’s  Deposit Taker (20% of Minimum Collateral Value)	$	2,400,000
	 	 	 	 
	 	 	TOTAL	$	12,000,000

 

 

Exhibit E

TO PLEDGE AGREEMENT

NOTICE OF LRC’s REQUIREMENT TO

WITHDRAW AND PAY INTEREST

EARNED ON CASH COLLATERAL

[_________, ___]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

			
	 Re:	 	Pledge Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 between Lam
Research Corporation and BNP Paribas Leasing Corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Pledge Agreement (Livermore/ Parcel 7) referenced above (the “Pledge Agreement”). This letter
constitutes notice to you, as secured party under the Pledge Agreement, that pursuant to
subparagraph 5(B) of the Pledge Agreement, LRC requires you to withdraw the interest that has
accrued on, and been added to, the Deposit Accounts on the last day of each Base Rent Period and to
return the same to LRC on the date of withdrawal.

     We understand that each withdrawal and return of interest accrued on the Deposit Accounts will
be subject to the conditions that:

     (i) You may limit the withdrawal and payment of such interest to LRC as necessary to
cause the Value of the remaining Cash Collateral, which is subject to a Qualified Pledge
under the Pledge Agreement, to be no less than the Minimum Collateral Value on the date of
withdrawal.

     (ii) You may decline to withdraw and pay any such interest to LRC when any Default has
occurred and is continuing.

NOTE: WE UNDERSTAND THAT YOU MAY BECOME ENTITLED TO LIMIT THE
AMOUNT OF, OR DECLINE TO MAKE, ANY WITHDRAWAL AND PAYMENT OF INTEREST EXPECTED

 

 

PURSUANT TO THIS NOTICE BY REASON OF THE FOREGOING CONDITIONS. IN THE EVENT,
HOWEVER, YOU SHOULD DETERMINE THAT YOU WILL EXERCISE THAT RIGHT, WE ASK THAT YOU
PROMPTLY NOTIFY LRC AND ADVISE LRC OF THE REASONS YOU BELIEVE THAT YOU ARE NOT
REQUIRED TO WITHDRAW AND PAY THE INTEREST ON THE DEPOSIT ACCOUNT AS PROVIDED ABOVE.

     Please remember that the express terms of the Pledge Agreement permit the Deposit Takers to
require notice of withdrawal at least seven days before Cash Collateral is withdrawn from the
Deposit Accounts. Accordingly, you must notify the Deposit Takers seven days prior to each
withdrawal of Cash Collateral required by this notice.

	 	 	 	 	 
	 	Lam Research Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 
Exhibit E to Pledge Agreement (Livermore/ Parcel 7) — Page 2

 

 

Exhibit F

TO PLEDGE AGREEMENT

NOTICE OF LRC’s REQUIREMENT TO

WITHDRAW EXCESS CASH COLLATERAL

[_________, ___]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

			
	     Re:	 	Pledge Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 between Lam
Research Corporation and BNP Paribas Leasing Corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Pledge Agreement (Livermore/ Parcel 7) referenced above (the “Pledge Agreement”). This letter
constitutes notice to you, as secured party under the Pledge Agreement, that pursuant to
subparagraph 5(B) of the Pledge Agreement, LRC requires you to withdraw from the Deposit Accounts
and return to LRC the following amount:

                                                             Dollars
($________)

on the following date:

                    , ___

     To assure you that LRC has satisfied the conditions to its right to require such withdrawal,
and to induce you to comply with this notice, LRC certifies to you that:

     (iii) You may withdraw funds from any number of Deposit Accounts so as to accomplish
the withdrawal of an aggregate amount as required by this notice without creating any
Collateral Imbalance,

     (iv) Your withdrawal and delivery of the amount specified above to LRC will not
cause the Value of the remaining Cash Collateral, which is subject to a Qualified

 

 

Pledge under the Pledge Agreement, to be less than the Minimum Collateral Value. After
giving effect to such withdrawal, the Cash Collateral remaining in the Deposit Accounts will
be:

                                                             Dollars
($________).

     (v) Either:

     (A) the date of withdrawal specified above is the last day of a Base Rent
Period (i.e., a Base Rent Date upon which a Base Rent Period will end); or

     (B) the amount of the withdrawal required above is not so large as to require
any withdrawal of any interest that has accrued on any of the Deposit Accounts since
the latest Base Rent Date preceding such withdrawal.

     (vi) LRC is giving this notice to you at least ten days prior to the expected date of
withdrawal specified above.

     (vii) No Event of Default has occurred and is continuing as of the date of this notice,
and LRC does not anticipate that a Default will have occurred and be continuing on the date
upon which the withdrawal is required.

NOTE: YOU SHALL BE ENTITLED TO DISREGARD THIS NOTICE IF THE STATEMENTS
ABOVE ARE NOT CORRECT OR IF THE DATE FOR WITHDRAWAL SPECIFIED ABOVE IS LESS THAN TEN
DAYS AFTER YOUR RECEIPT OF THIS NOTICE. HOWEVER, WE ASK THAT YOU NOTIFY LRC
IMMEDIATELY IF FOR ANY REASON YOU BELIEVE THIS NOTICE IS DEFECTIVE.

     Please remember that the express terms of the Pledge Agreement permit the Deposit Takers to
require notice of withdrawal at least seven days before Cash Collateral is withdrawn from the
Deposit Accounts. Accordingly, you must notify the Deposit Takers seven days prior to the
withdrawal of Cash Collateral required by this notice.

	 	 	 	 	 
	 	Lam Research Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 
Exhibit F to Pledge Agreement (Livermore/ Parcel 7) — Page 2

 

 

Exhibit G

TO PLEDGE AGREEMENT

NOTICE OF LRC’S REQUIREMENT OF

DIRECT PAYMENT TO BNPPLC

[_________, ___]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

			
	     Re:	 	Pledge Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 between Lam
Research Corporation and BNP Paribas Leasing Corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Pledge Agreement (Livermore/ Parcel 7) referenced above (the “Pledge Agreement”). This letter
constitutes notice to you, as secured party under the Pledge Agreement, that pursuant to
subparagraph 5(C) of the Pledge Agreement, LRC requires you to withdraw from the Deposit Account
and to retain, as a payment from LRC required by the Purchase Agreement, the following amount:

                                                             Dollars
($_________)

on the following date (which, LRC acknowledges, must be the Designated Sale Date):

_________, ___

     LRC acknowledges that its right to require such withdrawal is subject to the condition that
LRC must give this notice to you at least ten days prior to the date of required withdrawal and
payment specified above, and also to the condition that no Event of Default (under and as defined
in the Pledge Agreement or as defined in the Common Definitions and Provisions Agreement referenced
therein) has occurred and is continuing.

 

 

     Please remember that the express terms of the Pledge Agreement allow the Deposit Takers to
require notice of withdrawal at least seven days before Cash Collateral is to be withdrawn from the
Deposit Accounts. Accordingly, you must notify the Deposit Takers seven days prior to the
withdrawal of Cash Collateral required by this notice.

	 	 	 	 	 
	 	Lam Research Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 
Exhibit G to Pledge Agreement (Livermore/ Parcel 7) — Page 2exv10w140

 

Exhibit 10.140

CLOSING CERTIFICATE

AND AGREEMENT

(LIVERMORE/PARCEL 7)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 18, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1	 	Representations, Covenants and Acknowledgments of LRC Concerning the Property	 	 	2	 
	 
	 	(A)	 	Prior Inspections and Investigations Concerning the Property	 	 	2	 
	 
	 	(B)	 	Title	 	 	2	 
	 
	 	(C)	 	Title Insurance	 	 	2	 
	 
	 	(D)	 	Condition of the Property	 	 	2	 
	 
	 	(E)	 	Environmental Representations	 	 	3	 
	 
	 	(F)	 	Cooperation by LRC and its Affiliates	 	 	3	 
	 
	 	(G)	 	Compliance with Covenants and Laws	 	 	4	 
	 
	2	 	Representations and Covenants by LRC	 	 	4	 
	 
	 	(A)	 	Concerning LRC and the Operative Documents	 	 	4	 
	 
	 	 	 	(1)     Entity Status	 	 	4	 
	 
	 	 	 	(2)     Authority	 	 	4	 
	 
	 	 	 	(3)     Solvency	 	 	5	 
	 
	 	 	 	(4)     Financial Reports	 	 	5	 
	 
	 	 	 	(5)     Pending Legal Proceedings	 	 	5	 
	 
	 	 	 	(6)     No Default or Violation	 	 	5	 
	 
	 	 	 	(7)     Use of Proceeds	 	 	6	 
	 
	 	 	 	(8)     Enforceability	 	 	6	 
	 
	 	 	 	(9)     Pari Passu	 	 	6	 
	 
	 	 	 	(10)   Conduct of Business and Maintenance of Existence	 	 	6	 
	 
	 	 	 	(11)   Investment Company Act, etc	 	 	6	 
	 
	 	 	 	(12)   Not a Foreign Person	 	 	7	 
	 
	 	 	 	(13)   ERISA	 	 	7	 
	 
	 	 	 	(14)   Compliance With Laws	 	 	7	 
	 
	 	 	 	(15)   Payment of Taxes Generally	 	 	7	 
	 
	 	 	 	(16)   Maintenance of Insurance Generally	 	 	8	 
	 
	 	 	 	(17)   Franchises, Licenses, etc	 	 	8	 
	 
	 	 	 	(18)   Labor	 	 	8	 
	 
	 	 	 	(19)   Title to Properties Generally	 	 	8	 
	 
	 	 	 	(20)   Books and Records	 	 	9	 
	 
	 	 	 	(21)   Visitation, Inspection, Etc	 	 	9	 
	 
	 	(B)	 	Further Assurances	 	 	9	 
	 
	 	(C)	 	OFAC	 	 	9	 
	 
	 	(D)	 	Financial Statements; Required Notices; Certificates	 	 	9	 
	 
	 	(E)	 	Delay Permitted as to the Delivery of Current Financial Statements	 	 	11	 
	 
	 	(F)	 	U.S. Patriot Act	 	 	11	 
	 
	 	(G)	 	Omissions	 	 	12	 
	 
	3	 	Financial Covenants and Negative Covenants of LRC	 	 	12	 
	 
	 	(A)	 	Financial Covenant — Minimum Liquidity	 	 	12	 
	 
	 	(B)	 	Negative Covenants	 	 	12	 
	 
	 	 	 	(2)     Change in Nature of Business	 	 	12	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	(3)     Sales, Etc. of Assets	 	 	13	 
	 
	 	 	 	(4)     Multiemployer ERISA Plans	 	 	13	 
	 
	 	 	 	(5)     Prohibited ERISA Transaction	 	 	13	 
	 
	4	 	Limited Representations and Covenants of BNPPLC	 	 	13	 
	 
	 	(A)	 	Concerning Accounting Matters	 	 	13	 
	 
	 	(B)	 	Other Limited Representations	 	 	16	 
	 
	 	 	 	(1)     Entity Status	 	 	16	 
	 
	 	 	 	(2)     Authority	 	 	16	 
	 
	 	 	 	(3)     Solvency	 	 	16	 
	 
	 	 	 	(4)     Pending Legal Proceedings	 	 	17	 
	 
	 	 	 	(5)     No Default or Violation	 	 	17	 
	 
	 	 	 	(6)     Enforceability	 	 	17	 
	 
	 	 	 	(7)     Conduct of Business and Maintenance of Existence	 	 	17	 
	 
	 	 	 	(8)     Not a Foreign Person	 	 	17	 
	 
	 	(C)	 	No Implied Representations or Promises by BNPPLC	 	 	18	 
	 
	5	 	Usury Savings Provision	 	 	18	 
	 
	6	 	Obligations of LRC Under Other Operative Documents Not Limited by this Agreement	 	 	19	 
	 
	7	 	Waiver of Jury Trial	 	 	19	 

Exhibits and Schedules

			
	 	 	 
	Exhibit A
	 	Legal Description
	 	 	 
	Exhibit B
	 	Permitted Encumbrances
	 	 	 
	Exhibit C
	 	Quarterly Certificate
	 	 	 
	Exhibit D
	 	Certificate to be Provided by BNPPLC Re: Accounting

(ii)

 

CLOSING CERTIFICATE AND AGREEMENT

(LIVERMORE/PARCEL 7)

     This CLOSING CERTIFICATE AND AGREEMENT (LIVERMORE/PARCEL 7) (this “Agreement”), dated as of
December 18, 2007 (the “Effective Date”), is made by and between BNP PARIBAS LEASING CORPORATION
(“BNPPLC”), a Delaware corporation, and LAM RESEARCH CORPORATION (“LRC”), a Delaware corporation.

RECITALS

     Contemporaneously with the execution of this Agreement, BNPPLC and LRC are executing a Common
Definitions and Provisions Agreement (Livermore/ Parcel 7) dated as of the Effective Date (the
“Common Definitions and Provisions Agreement”), which by this reference is incorporated into and
made a part of this Agreement for all purposes. As used in this Agreement, capitalized terms
defined in the Common Definitions and Provisions Agreement and not otherwise defined in this
Agreement are intended to have the respective meanings assigned to them in the Common Definitions
and Provisions Agreement.

     Also contemporaneously with this Agreement, BNPPLC is acquiring the Land described in
Exhibit A and any existing Improvements on the Land pursuant to the Existing Contract.

     Also contemporaneously with this Agreement, BNPPLC and LRC are executing a Construction
Agreement (Livermore/ Parcel 7) dated as of the Effective Date (the“Construction Agreement”) and a
Lease Agreement (Livermore/ Parcel 7) dated as of the Effective Date (the “Lease”). Pursuant to
the Construction Agreement, BNPPLC is agreeing to provide funding for the construction of new
Improvements. When the term of the Lease commences, the Lease will cover the Land, which is
described in Exhibit A, and the other Property.

     Also contemporaneously with this Agreement, BNPPLC and LRC are executing a Agreement Regarding
Purchase and Remarketing Options (Livermore/ Parcel 7) dated as of the Effective Date (the
“Purchase Agreement”), pursuant to which LRC may purchase or arrange for the purchase of the
Property and BNPPLC may collect a Supplemental Payment from LRC sufficient to cover all or a
substantial portion of the Lease Balance not otherwise repaid to BNPPLC from the proceeds of any
sale of the Property.

     As a condition to BNPPLC’s acquisition of the Land and its execution of the other Operative
Documents, BNPPLC requires the representations and covenants of LRC set out below.

AGREEMENTS

 

 

     In consideration of the premises and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1 Representations, Covenants and Acknowledgments  of LRC Concerning the Property. To induce BNPPLC to purchase the Property from the Prior
Owner and to enter into this Agreement and the other Operative Documents, LRC represents, covenants
and acknowledges as follows:

     (A) Prior Inspections and Investigations Concerning the Property. LRC has thoroughly
inspected, investigated and evaluated the condition of and title to the Property and Applicable
Laws which will govern the construction, use and operation of the Property required or permitted by
the Operative Documents, as necessary to make the representations concerning the Property set forth
in this Agreement and other Operative Documents.

     (B) Title. Because of the conveyance from the Prior Owner to BNPPLC contemporaneously
with the execution of this Agreement, good and indefeasible title to the Land and Improvements is
currently vested in BNPPLC, subject only to the Permitted Encumbrances, the rights of LRC itself
under the Operative Documents and any Liens Removable by BNPPLC. LRC will not, without the prior
consent of BNPPLC, create, place or authorize, or through any act or failure to act, acquiesce to
or suffer the placing of, any deed of trust, mortgage or other Lien, whether statutory,
constitutional or contractual against or covering the Property or any part thereof (other than
Permitted Encumbrances and Liens Removable by BNPPLC), regardless of whether the same are expressly
or otherwise subordinate to the Operative Documents or BNPPLC’s interest in the Property.

     (C) Title Insurance. Contemporaneously with the execution of this Agreement LRC must
provide to BNPPLC a title insurance policy or binder committing the applicable title insurer to
issue a title insurance policy covering Land, without the payment of further premiums (as the case
may be, the “Title Policy”) in the amount of no less than $46,500,000, in form and substance
satisfactory to BNPPLC (including the endorsements which have been requested by BNPPLC), written by
one or more title insurance companies satisfactory to BNPPLC and insuring BNPPLC’s fee estate in
the Land and Improvements.

     (D) Condition of the Property. The Land described in Exhibit A is the
same as the land described in the Title Policy and as shown as Parcel 7 on the plat included as
part of the ALTA/ACSM Survey prepared by Kier & Wright, Civil Engineers & Surveyors, Inc., dated
September 17, 2007, Job No. A00522-13 (the “Survey”), which survey was delivered to BNPPLC at the
request of LRC. All material improvements on the Land as of the Effective Date are as shown on the
Survey, and except as shown on the Survey there are no easements or encroachments encumbering or
affecting the Property. No part of the Land is within a flood plain as designated by any
governmental authority. The Improvements are in good condition, free from latent or patent defects
or deficiencies that, either individually or in the aggregate, could materially and adversely
affect the use or occupancy of the Property as permitted by the Lease or could reasonably be
anticipated to cause injury or death to any person. When the construction contemplated by the
Construction Agreement is complete in accordance with plans

 

 

approved as described therein, the Property and use thereof permitted by the Lease will comply
in all material respects with all Applicable Laws, including laws regarding access and use by
disabled persons and local zoning ordinances. Adequate provision has been made (or can be made at
a cost that is reasonable in connection with future development of the Land) for the Property to be
served by electric, gas, storm and sanitary sewers, sanitary water supply, telephone and other
utilities required for the use thereof. All streets, alleys and easements necessary to serve the
Property for the construction contemplated by the Construction Agreement or uses permitted by the
Lease have been completed and are serviceable. No extraordinary circumstances (including any use
of the Land as a habitat for endangered species) exist that would materially and adversely affect
such construction or uses of the Property. The Improvements, when constructed as contemplated in
the Construction Agreement, will be useable for their intended purpose without the need to obtain
any additional easements, rights-of-way or concessions from any third party or parties.

     (E) Environmental Representations. Except as otherwise disclosed in the Environmental
Report, to the knowledge of LRC: (i) no Hazardous Substances Activities other than Permitted
Hazardous Substance Uses have occurred prior to the Effective Date; (ii) no owner or operator of
the Property has reported or been required to report any release of any Hazardous Substances on or
from the Property pursuant to any Environmental Law; and (iii) no owner or operator of the Property
has received from any federal, state or local governmental authority any warning, citation, notice
of violation or other communication regarding a suspected or known release or discharge of
Hazardous Substances on or from the Property or regarding a suspected or known violation of
Environmental Laws concerning the Property. Further, LRC represents that, to its knowledge, the
Environmental Report taken as a whole is not misleading or inaccurate in any material respect.

(As used in this and other provisions of the Operative Documents, “knowledge of LRC”, “LRC’s
knowledge” and words of like effect mean the present actual knowledge of Roch LaBlanc and Jim
Pasichuke, the current officers of LRC having primary responsibility for the negotiation of the
Operative Documents and for the facilities which include the Property, respectively. As used in
any future certificate delivered by BNPPLC as required by this Agreement or any other Operative
Documents, “knowledge of LRC”, “LRC’s knowledge” and words of like effect will mean the present
actual knowledge of Roch LaBlanc and Jim Pasichuke, or their successors, as the then current
officers of LRC having primary responsibility for the administration of the Operative Documents and
for the facilities which include the Property.)

     (F) Cooperation by LRC and its Affiliates.

     (1) After the Designated Sale Date, if neither LRC nor an Applicable Purchaser
has purchased BNPPLC’s interest in the Property pursuant to the Purchase Agreement, and if a
use of the Property by BNPPLC or any new Improvements or any removal or

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 3

 

 

modification of Improvements proposed by BNPPLC would violate any Permitted Encumbrance
or Applicable Law unless LRC or any of its Affiliates, as an owner of adjacent property or
otherwise, gave its consent or approval thereto or agreed to join in a modification of a
Permitted Encumbrance, then LRC must give and cause its Affiliates to give such consent or
approval or join in such modification.

     (2) After the Designated Sale Date, if neither LRC nor an Applicable Purchaser has
purchased BNPPLC’s interest in the Property on the Designated Sale Date pursuant to the
Purchase Agreement, and if any Permitted Encumbrance or Applicable Law requires the consent
or approval of LRC or any of its Affiliates or of any other Person to an assignment of any
interest in the Property by BNPPLC or by any of its successors or assigns, LRC will without
charge give and cause its Affiliates to give such consent or approval and will cooperate in
any way reasonably requested by BNPPLC to assist BNPPLC to obtain such consent or approval
from the other Person.

     (3) LRC’s obligations under this subparagraph 1(F) will be binding upon any successor
or assign of LRC or its Affiliates with respect to the Land and other properties encumbered
or benefited by the Permitted Encumbrances, and such obligations will survive any sale of
the Property by BNPPLC, other than to LRC or an Applicable Purchaser under the Purchase
Agreement, for the benefit of BNPPLC’s assignees.

     (G) Compliance with Covenants and Laws. The construction contemplated by the
Construction Agreement and use of the Property permitted by the Lease comply, or will comply after
LRC obtains readily available permits (either as the construction manager under the Construction
Agreement or as the tenant under the Lease), in all material respects with all Applicable Laws.
LRC has obtained or can and will promptly obtain all utility, building, health and operating
permits required by any governmental authority or municipality having jurisdiction over the
Property for the construction contemplated in the Construction Agreement and the use of the
Property permitted by the Lease.

2 Representations and Covenants by LRC. LRC also represents and covenants to BNPPLC as
follows:

     (A) Concerning LRC and the Operative Documents.

     (1) Entity Status. LRC is a corporation duly incorporated, validly existing and in
good standing under the laws of Delaware, and LRC is duly qualified or registered to do
business in the State of California.

     (2) Authority. The Constituent Documents of LRC permit the execution, delivery
and performance of the Operative Documents by LRC, and all actions and

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 4

 

 

approvals necessary to bind LRC under the Operative Documents have been taken and
obtained. Without limiting the foregoing, the Operative Documents will be binding upon LRC
when signed on behalf of LRC by Roch LeBlanc, Treasurer of LRC. LRC has all requisite power
and all governmental certificates of authority, licenses, permits and qualifications to
carry on its business as now conducted and contemplated to be conducted and to perform the
Operative Documents.

     (3) Solvency. LRC is not “insolvent” on the Effective Date (that is, the sum of LRC’s
absolute and contingent liabilities — including the obligations of LRC under the Operative
Documents — does not exceed the fair market value of LRC’s assets), and LRC has no
outstanding liens, suits, garnishments or court actions which could render LRC insolvent or
bankrupt. LRC’s capital is adequate for the businesses in which LRC is engaged and intends
to be engaged. LRC has not incurred (whether by the Operative Documents or otherwise), nor
does LRC intend to incur or believe that it will incur, debts which will be beyond its
ability to pay as such debts mature. No petition or answer has been filed by or, to LRC’s
knowledge, against LRC in bankruptcy or other legal proceedings that seeks an assignment for
the benefit of creditors, the appointment of a receiver, trustee, custodian or liquidator
with respect to LRC or any significant portion of LRC’s property, a reorganization,
arrangement, rearrangement, composition, extension, liquidation or dissolution of LRC or
similar relief under the federal Bankruptcy Code or any state law.

     (4) Financial Reports. All reports, financial statements and other data furnished by
LRC to BNPPLC in connection with the agreements set forth in the Operative Documents are
true and correct in all material respects and do not omit to state any fact or circumstance
necessary to make the statements contained therein not misleading. Except as described in
subparagraph 2(E), no material adverse change has occurred since the dates of such reports,
statements and other data in the financial condition of LRC.

     (5) Pending Legal Proceedings. No judicial or administrative investigations, actions,
suits or proceedings are pending or, to the knowledge of LRC, threatened against or
affecting LRC or any of its Subsidiaries by or before any court or other Governmental
Authority that have or could reasonably be expected to have a Material Adverse Effect.
Neither LRC nor any of its Subsidiaries is in default with respect to any order, writ,
injunction, decree or demand of any court or other Governmental Authority in a manner that
has or could reasonably be expected to have a Material Adverse Effect.

     (6) No Default or Violation. The execution and performance by LRC of the
Operative Documents do not and will not contravene or result in a breach of or default under
any other material agreement to which LRC is a party or by which LRC is bound

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 5

 

 

or which affects any assets of LRC. Such execution and performance by LRC do not
contravene in any material respect any law, order, decree, rule or regulation to which LRC
is subject. Further, such execution and performance by LRC will not result in the creation
or imposition of (or the obligation to create or impose) any lien, charge or encumbrance on,
or security interest in, the Property pursuant to the provisions of any such other
agreement.

     (7) Use of Proceeds. In no event will the funds from any Funding Advance be used
directly or indirectly for personal, family, household or agricultural purposes or for the
purpose, whether immediate, incidental or ultimate, of purchasing, acquiring or carrying any
“margin stock” or any “margin securities” (as such terms are defined in Regulation U
promulgated by the Board of Governors of the Federal Reserve System) or to extend credit to
others directly or indirectly for the purpose of purchasing or carrying any such margin
stock or margin securities. LRC represents that LRC is not engaged principally, or as one of
LRC’s important activities, in the business of extending credit to others for the purpose of
purchasing or carrying such margin stock or margin securities.

     (8) Enforceability. The Operative Documents constitute the legal, valid and binding
obligations of LRC enforceable in accordance with their terms, subject to the effect of
bankruptcy, insolvency, reorganization, receivership and other similar laws affecting the
rights of creditors generally.

     (9) Pari Passu. The claims of BNPPLC against LRC under the Operative Documents rank at
least pari passu with the claims of all its other unsecured creditors, except those whose
claims are preferred solely by any laws of general application having effect in relation to
bankruptcy, insolvency, liquidation or other similar events.

     (10) Conduct of Business and Maintenance of Existence. So long as any obligations of
LRC under the Operative Documents remain outstanding, LRC will continue to engage in
business of the same general type as now conducted by it and will preserve, renew and keep
in full force and effect its corporate existence and its rights, privileges and franchises
necessary or desirable in the normal conduct of business.

     (11) Investment Company Act, etc. LRC is not and will not become, by reason of
the Operative Documents or any business or transactions in which it participates
voluntarily, (a) an “investment company” or a company “controlled” by an “investment
company” (as each of the quoted terms is defined or used in the Investment Company Act of
1940, as amended), or (b) subject to regulation under the Federal Power Act or any foreign,
federal or local statute or regulation limiting LRC’s ability to incur or guarantee
indebtedness or obligations, or to pledge its assets to secure indebtedness or obligations,
as contemplated by any of the Operative Documents.

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 6

 

 

     (12) Not a Foreign Person. LRC is not a “foreign person” within the meaning of Sections
1445 and 7701 of the Code (i.e. LRC is not a non-resident alien, foreign corporation,
foreign partnership, foreign trust or foreign estate as those terms are defined in the Code
and regulations promulgated thereunder).

     (13) ERISA. LRC is not and will not become an “employee benefit plan” (as defined in
Section 3(3) of ERISA) which is subject to Title I of ERISA. The assets of LRC do not and
will not in the future constitute “plan assets” of one or more such plans within the meaning
of 29 C.F.R. Section 2510.3-101. LRC is not and will not become a “governmental plan” within
the meaning of Section 3(32) of ERISA. Except as could not reasonably be expected to have a
Material Adverse Effect, transactions by or with LRC are not subject to state statutes
regulating investments of and fiduciary obligations with respect to governmental plans. No
ERISA Termination Event has occurred with respect to any Plan, and LRC and its Subsidiaries
are, to the knowledge of LRC, in compliance with ERISA in all material respects. Neither LRC
nor its Subsidiaries are required to contribute to, or has any other absolute or contingent
liability in respect of, any Multiemployer Plan. As of the Effective Date no “accumulated
funding deficiency” (as defined in Section 412(a) of the Code) exists with respect to any
Plan, whether or not waived by the Secretary of the Treasury or his delegate, and there are
no Unfunded Benefit Liabilities with respect to any Plan.

     (14) Compliance With Laws. LRC and its Subsidiaries comply and will comply with all
Applicable Laws (including environmental laws and ERISA and the rules and regulations
thereunder), except (i) when the failure to do so does not have and could not reasonably be
expected to have a Material Adverse Effect, (ii) when the necessity of compliance is
contested in good faith by appropriate proceedings which do not have and could not
reasonably be expected to have a Material Adverse Effect, or (iii) as described in
subparagraph 2(E) regarding the late filing of Forms 10K and 10Q by LRC. Neither LRC nor
its Subsidiaries have received any notice asserting or describing a material failure on the
part of LRC or any Subsidiary to comply with Applicable Laws, other than failures that have
been fully rectified by LRC or the Subsidiary, as the case may be, in a manner approved or
accepted by Governmental Authorities responsible for the enforcement of the Applicable Laws.

     (15) Payment of Taxes Generally. Except when the failure to do so does not have
and could not reasonably be expected to have a Material Adverse Effect (taking into account
any appropriate contest of taxes), LRC and its Subsidiaries have filed and will file all tax
declarations, reports and returns which are required by (and in the form required by)
Applicable Laws and have paid and will pay all taxes or other charges shown to be due and
payable on such declarations, reports and returns and all

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 7

 

 

assessments made against it or its assets by any Governmental Authority; and no liens have been filed or
established by any Governmental Authority against LRC or its assets or against any
Subsidiary or its assets to secure the payment of taxes or assessments that are past due or
claimed to be past due.

     (16) Maintenance of Insurance Generally. Except when the failure to do so does not
have and could not reasonably be expected to have a Material Adverse Effect, LRC and its
Subsidiaries have maintained and will maintain insurance with respect to its properties and
businesses, with financially sound and reputable insurers, having coverages against losses
or damages of the kinds customarily insured against by reputable companies in the same or
similar businesses, such insurance being the types, and in amounts no less than the amounts,
which are customary for such companies under similar circumstances.

     (17) Franchises, Licenses, etc. Except when the failure to do so does not have and
could not reasonably be expected to have a Material Adverse Effect, LRC and its Subsidiaries
have and comply with, and will have and will comply with, all franchises, certificates,
licenses, permits and other authorizations from Governmental Authorities that are necessary
for the ownership, maintenance and operation of its properties and assets.

     (18) Labor. Neither LRC nor any of its Subsidiaries has experienced strikes, labor
disputes, slow downs or work stoppages due to labor disagreements that currently have or
could reasonably be expected to have a Material Adverse Effect, and to the knowledge of LRC
there are no such strikes, disputes, slow downs or work stoppages threatened against it or
against any Subsidiary. The hours worked and payment made to employees of LRC and its
Subsidiaries have not been in violation in any material respect of the Fair Labor Standards
Act or any other Applicable Laws dealing with such matters. All material payments due on
account of wages or employee health and welfare insurance and other benefits from LRC or
from any Subsidiary have been paid or accrued as liabilities on its books.

     (19) Title to Properties Generally. Except when the failure to do so does not have and
could not reasonably be expected to have a Material Adverse Effect, LRC and its Subsidiaries
have and will have and maintain good and indefeasible fee simple title to or valid leasehold
interests in all of its real property and good title to or a valid leasehold interest in all
of its other material assets, as such properties and assets are reflected in the most recent
financial statements delivered to BNPPLC, other than properties or assets disposed of in the
ordinary course of business since such date.

     (20) Books and Records. LRC will keep proper books of record and account,

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 8

 

 

containing complete and accurate entries of all its financial and business
transactions.

     (21) Visitation, Inspection, Etc. LRC will permit any representative of BNPPLC after
reasonable notice (unless a Default has occurred and is continuing, in which case no notice
shall be required) during regular business hours to visit and inspect any of LRC’s
properties, and to examine and make abstracts from any of its books and records and to
discuss with any of its officers, and with its independent public accountants, the affairs,
finances and accounts of LRC.

     (B) Further Assurances. LRC will, upon the request of BNPPLC, (i) execute,
acknowledge, deliver and record or file such further instruments and do such further acts as may be
reasonably necessary to carry out more effectively the purposes of the Operative Documents and to
subject to any of the Operative Documents any property intended by the terms thereof to be covered
thereby, including specifically, but without limitation, any renewals, additions, substitutions,
replacements or appurtenances to the Property; (ii) execute, acknowledge, deliver, procure and
record or file any document or instrument reasonably requested by BNPPLC to protect its rights in
and to the Property against the rights or interests of third persons; and (iii) provide such
certificates, documents, reports, information, affidavits and other instruments and do such further
acts as may be reasonably necessary to enable BNPPLC to comply with the requirements or requests of
any agency or authority having jurisdiction over it.

     (C) OFAC. None of LRC or any subsidiary or affiliate of LRC: (i) is a person named on
the list of Specially Designated Nationals or Blocked Persons maintained by the U.S. Department of
the Treasury’s Office of Foreign Assets Control available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from time to
time; or (ii) is (A) an agency of the government of a country, (B) an organization controlled by a
country, or (C) a person resident in a country that is subject to a sanctions program identified on
the list maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published from time
to time, as such program may be applicable to such agency, organization or person; or (iii) derives
more than 15% of its assets or operating income from investments in or transactions with any such
country, agency, organization or person. Further, none of the proceeds from the Initial Advance or
any Construction Advance will be used to finance any operations, investments or activities in, or
make any payments to, any such country, agency, organization, or person.

     (D) Financial Statements; Required Notices; Certificates. Except as otherwise
described in the next subparagraph, prior to and throughout the Term of the Lease, LRC will deliver
to BNPPLC:

     (1) as soon as available and in any event within 60 days after the end of each
of the first three fiscal quarters of each fiscal year of LRC, the unaudited consolidated

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 9

 

 

balance sheet of LRC and its Subsidiaries as of the end of such quarter and
consolidated unaudited statements of income, stockholders’ equity and cash flow of LRC and
its Subsidiaries for the period commencing at the end of the previous fiscal year and ending
with the end of such quarter, setting forth in comparative form figures for the
corresponding period in the preceding fiscal year, in the case of such statements of income,
stockholders’ equity and cash flow, and figures for the preceding fiscal year in the case of
such balance sheet, all in reasonable detail, in accordance with GAAP, and certified in a
manner acceptable to BNPPLC by a Responsible Financial Officer of LRC (subject to normal
year-end adjustments);

     (2) as soon as available and in any event within 120 days after the end of each fiscal
year of LRC, the consolidated balance sheet of LRC and its Subsidiaries as of the end of
such fiscal year and consolidated statements of income, stockholders’ equity and cash flow
of LRC and its Subsidiaries for the period commencing at the end of the previous fiscal year
and ending with the end of such fiscal year, setting forth in comparative form figures for
the preceding fiscal year, all in reasonable detail, in accordance with GAAP, and certified
in a manner acceptable to BNPPLC by independent public accountants of recognized national
standing reasonably acceptable to BNPPLC;

     (3) together with the financial statements furnished in accordance with subparagraph
2(D)(1) or 2(D)(2), a certificate of a Responsible Financial Officer of LRC in the form of
certificate attached hereto as Exhibit C (a) representing that no Event of Default
or material Default by LRC has occurred (or, if an Event of Default or material Default by
LRC has occurred, stating the nature thereof and the action which LRC has taken or proposes
to take to rectify it), and (b) confirming that LRC is complying with the financial covenant
set forth in subparagraph 3(A);

     (4) as soon as possible and in any event within five Business Days after the occurrence
of each Event of Default or material Default known to a Responsible Financial Officer of
LRC, a statement of LRC setting forth details of such Event of Default or material Default
and the action which LRC has taken and proposes to take with respect thereto;

     (5) promptly after the sending or filing thereof, copies of all such financial
statements, proxy statements, notices and reports which LRC or any Subsidiary sends to its
public stockholders, and copies of all reports and registration statements (without
exhibits) which LRC or any Subsidiary files with the Securities and Exchange Commission (or
any governmental body or agency succeeding to the functions of the Securities and Exchange
Commission) or any national securities exchange;

     (6) as soon as practicable and in any event within thirty days after a

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 10

 

 

Responsible Financial Officer of LRC knows or has reason to know that any ERISA
Termination Event with respect to any Plan has occurred, a statement of a Responsible
Financial Officer of LRC describing such ERISA Termination Event and the action, if any,
which LRC proposes to take with respect thereto;

     (7) upon request by BNPPLC, a statement in writing certifying that the Operative
Documents are unmodified and in full effect (or, if there have been modifications, that the
Operative Documents are in full effect as modified, and setting forth such modifications)
and either stating that (to the best knowledge of LRC) no default exists under the Operative
Documents or specifying each such default; it being intended that any such statement by LRC
may be relied upon by any prospective purchaser or mortgagee of the Property or any Person
who may become a Participant; and

     (8) such other information respecting the condition or operations, financial or
otherwise, of LRC, of its Subsidiaries or of the Property as BNPPLC or BNPPLC’s Parent or
any Participant, through BNPPLC, may from time to time reasonably request.

Reports and financial statements required to be delivered pursuant to paragraphs (1), (2) and (5)
of this subparagraph 2(D) will be deemed to have been delivered on the date on which such reports,
or reports containing such financial statements, are posted and available for downloading (in a
“PDF” or other generally accepted electronic format) on LRC’s internet website at www.lamrc.com or
on the SEC’s internet website at www.sec.gov; provided, however, that after being posted they
remain available for downloading at the applicable website for at least 90 days.

BNPPLC is authorized to deliver a copy of any information or certificate delivered to it pursuant
to this subparagraph 2(D) to any Participant and to any regulatory body having jurisdiction over
BNPPLC, BNPPLC’s Parent or any Participant that requires or requests it.

     (E) Delay Permitted as to the Delivery of Current Financial Statements. So long as
LRC continues to defer the filing of financial statements to be included its Forms 10K and 10Q with
the SEC because of the current ongoing review by LRC’s board of directors (as previously disclosed
to BNPPLC), LRC may also defer the delivery of those financial statements to BNPPLC and the
Participants. However, no such deferral will excuse LRC from delivering a timely quarterly
certificate in the form attached as Exhibit C.

     (F) U.S. Patriot Act. LRC acknowledges that BNPPLC, BNPPLC’s Parent or any
Participant may be required, pursuant to the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Patriot Act”), to obtain, verify, record and disclose to law
enforcement authorities information that identifies the LRC, including the name and address of

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 11

 

 

LRC.
LRC will provide to BNPPLC, BNPPLC’s Parent and Participants any such information they may
request pursuant to the Patriot Act, and LRC agrees that BNPPLC, BNPPLC’s Parent
and Participants may disclose such information to law enforcement authorities if the
authorities make a request or demand for disclosure pursuant to the Patriot Act. LRC also
acknowledges that, in such event none of BNPPLC, BNPPLC’s Parent or the Participants may be
required or even permitted by the Patriot Act to notify LRC of the request or demand for
disclosure.

     (G) Omissions. None of LRC’s representations in the Operative Documents or in any
other document, certificate or written statement furnished to BNPPLC by or on behalf of LRC
contains any untrue statement of a material fact or omits a material fact necessary in order to
make the statements contained herein or therein (when taken in their entireties) not misleading.

3 Financial Covenants and Negative Covenants of LRC. LRC represents and covenants as
follows:

     (A) Financial Covenant — Minimum Liquidity. Throughout the period from the Effective
Date to the Designated Sale Date, the sum (without duplication of any item) of the unrestricted
cash, unencumbered cash investments and unencumbered marketable securities classified as short term
or long term investments according to GAAP of LRC and its Subsidiaries (determined on a
consolidated basis) will be no less than $300,000,000.

     (B) Negative Covenants. LRC will not, without the prior consent of BNPPLC in each
case, do or permit any of its material Subsidiaries to do any of the following:

     (1) Merger and Consolidation. Merge into or consolidate with or into another Person,
except that, subject to any other applicable restrictions in the Operative Documents
(including restrictions against sales or transfers of the Property):

     (a) any Subsidiary may merge or consolidate with any other Subsidiary, and any
Subsidiary may merge into LRC; and

     (b) LRC may merge or consolidate with any other corporation, if:

     1) LRC continues as the surviving corporation; and

     2) after giving effect to and immediately following such merger or
consolidation, no Default or Event of Default occurs or is continuing.

     (2) Change in Nature of Business. Make or do anything that would result in a material
change in the nature of the business of LRC and its Subsidiaries, taken as whole,

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 12

 

 

as carried
on at the Effective Date.

     (3) Sales, Etc. of Assets. Sell, lease, transfer or otherwise dispose of
substantially all or substantially all of its assets (in a single transaction or series
of related transactions), except that, subject to any other applicable restrictions in the
Operative Documents:

     (a) any Subsidiary may sell, lease, transfer or otherwise dispose of any of its
assets to LRC or to another Subsidiary; and

     (b) any Subsidiary may sell or otherwise dispose of all or substantially all of
its assets if after giving effect to the sale or other disposition, the financial
condition of LRC is equal to or better than LRC’s financial condition immediately
prior to the sale or other disposition and no Default or Event of Default occurs or
is continuing.

     (4) Multiemployer ERISA Plans. Incur any obligation to contribute to any
“multiemployer plan” as defined in Section 4001 of ERISA.

     (5) Prohibited ERISA Transaction. Enter into any transaction which would cause any of
the Operative Documents or any related documents executed or accepted by BNPPLC (or any
exercise of BNPPLC’s rights hereunder or thereunder) to constitute a non-exempt prohibited
transaction under ERISA.

4 Limited Representations and Covenants of BNPPLC

     (A) Concerning Accounting Matters.

     (1) To permit LRC to determine the appropriate accounting for LRC’s relationship with
BNPPLC under FASB Interpretation No. 46, Consolidation of Variable Interest Entities
(Revised December 2003) (“FIN 46R”), BNPPLC represents that to the knowledge of BNPPLC the
fair value of the Property and of other properties, if any, leased to LRC by BNPPLC
(collectively, whether one or more, the “Properties Leased to LRC”) are, as of the Effective
Date, less than half of the total of the fair values of all assets of BNPPLC, excluding any
assets of BNPPLC held within a silo. Further, none of the Properties Leased to LRC are, as
of the Effective Date, held within a silo. Consistent with the directions of LRC (based
upon the current interpretation of FIN 46R by LRC and its auditors), and for purposes of
this representation only:

	 	•	 	“held within a silo” means, with respect to any asset or
group of assets leased by BNPPLC to a single lessee or group of
affiliated lessees, that BNPPLC has obtained funds in excess of 95%
of the

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 13

 

 

	 	 	 	fair value of the leased asset or group of assets to acquire
or maintain its investment in such asset or group of assets through
non-recourse financing or other contractual arrangements (such as
targeted equity or bank participations), the effect of which is to
leave such asset or group of assets (or proceeds thereof) as the
only significant asset or assets of BNPPLC at risk for the repayment
of such funds;
	 
	 	•	 	“fair value” means, with respect to any asset, the amount for
which the asset could be bought or sold in a current transaction
negotiated at arms length between willing parties (that is, other
than in a forced or liquidation sale);
	 
	 	•	 	with respect to the Properties Leased to LRC (regardless of how
BNPPLC accounts for the leases of the Properties Leased to LRC),
and with respect to other assets that are subject to leases
accounted for by BNPPLC as operating leases pursuant to Financial
Accounting Standards Board Statement 13 (“FAS 13”), fair value is
determined without regard to residual value guarantees, remarketing
agreements, non-recourse financings, purchase options or other
contractual arrangements, whether made by BNPPLC with LRC or with
other parties, that might otherwise impact the fair value of such
assets;
	 
	 	•	 	with respect to any assets, other than Properties Leased to LRC,
that are subject to leases accounted for by BNPPLC as leveraged
leases pursuant to FAS 13, fair value is determined on a gross
basis prior to the application of leveraged lease accounting,
recognizing that equity investments made by BNPPLC in its assets
subject to leveraged lease accounting should be grossed up in
applying this test (however, equity investments made by BNPPLC
through another legal entity should not be so grossed up in
applying this test);
	 
	 	•	 	with respect to any assets, other than Properties Leased to LRC,
that are subject to leases accounted for by BNPPLC as direct
financing leases pursuant to FAS 13, fair value is determined as
the sum of the fair values (considering current interest rates at
which similar loans would be made to borrowers with similar credit
ratings and for the same remaining maturities) of the corresponding
finance lease receivables and related unguaranteed

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 14

 

 

	 	 	 	residual values.

     (2) BNPPLC also represents that BNPPLC’s Parent is, as of the Effective
Date, including BNPPLC as a consolidated subsidiary in the audited financial statements
issued by BNPPLC’s Parent. BNPPLC’s Parent is joining in the execution of this Closing
Certificate solely for the purpose of:

	 	•	 	affirming this representation regarding BNPPLC’s status as a
consolidated subsidiary of BNPPLC’s Parent; and
	 
	 	•	 	evidencing its agreement to join with BNPPLC, if asked to do so,
in executing any certificate required by the next provision which
confirms this representation; provided that the certificate states
that BNPPLC’s Parent is executing such certificate solely for the
purpose of affirming that this representation continues to be true;
and, provided further, that this representation continues to be
true as of the date of such certificate.

     (3) BNPPLC covenants that, no less often than once each calendar quarter prior
to the Designated Sale Date and otherwise as reasonably requested by LRC from time to time
with respect to any accounting period during which the Lease is or was in effect, BNPPLC
will provide to LRC confirmation of facts concerning BNPPLC and its assets as necessary to
permit LRC to determine the proper accounting for the Lease (including updates of the facts
set forth in clauses (1) and (2) above); except that BNPPLC will not be required by this
provision to (w) provide any information that is not in the possession or control of BNPPLC
or its Affiliates, (x) disclose the specific terms and conditions of its leases or other
transactions with other parties or the names of such parties, (y) make disclosures
prohibited by any law applicable to BNPPLC or BNPPLC’s Parent, or (z) disclose any other
information that is protected from disclosure by confidentiality provisions in favor of such
other parties or would be protected if their agreements with BNPPLC contained
confidentiality provisions similar in scope and substance to any confidentiality provisions
set forth in the Operative Documents for the benefit of LRC or its Affiliates. Without
limiting the foregoing, by delivery of a certificate in substantially the form attached
hereto as Exhibit D (signed by an officer of BNPPLC), BNPPLC will represent that
information provided by it pursuant to this clause is true and complete in all material
respects, but only to the knowledge of BNPPLC as of the date the certificate is provided and
subject to any exceptions or qualifications that BNPPLC may include in the certificate as
necessary to prevent any statement therein from being inaccurate. BNPPLC will endeavor to
provide such a certificate promptly as from time to time reasonably requested by LRC.
BNPPLC will also endeavor in good faith to notify LRC at least thirty days in advance of any
change in circumstances that

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 15

 

 

would cause BNPPLC to no longer be able to make the
representations set forth in clauses (1) and (2) above, such as a divestiture by BNPPLC’s
Parent of its direct or indirect ownership interests in BNPPLC; but BNPPLC will not be
liable for any failure to provide such advance notice.

     (4) Although the representations required of BNPPLC by this subparagraph are intended
to cover facts, it is understood and agreed (consistent with subparagraph 4(C) of
the Lease) that BNPPLC has not made and will not make any representation or warranty as to
the proper accounting by LRC or its Affiliates of the Lease or as to other accounting
conclusions.

     (B) Other Limited Representations. BNPPLC represents that:

     (1) Entity Status. BNPPLC is a corporation duly incorporated , validly existing and in
good standing under the laws of Delaware.

     (2) Authority. The Constituent Documents of BNPPLC permit the execution, delivery and
performance of the Operative Documents by BNPPLC, and all actions and approvals necessary to
bind BNPPLC under the Operative Documents have been taken and obtained. Without limiting
the foregoing, the Operative Documents will be binding upon BNPPLC when signed on behalf of
BNPPLC by Lloyd G. Cox, Managing Director of BNPPLC or by Barry Mendelsohn, Director of
BNPPLC.

     (3) Solvency. BNPPLC is not “insolvent” on the Effective Date (that is, the sum of
BNPPLC’s absolute and contingent liabilities — including the obligations of BNPPLC under the
Operative Documents — does not exceed the fair market value of BNPPLC’s assets), and BNPPLC
has no outstanding liens, suits, garnishments or court actions which could render BNPPLC
insolvent or bankrupt. BNPPLC’s capital is adequate for the businesses in which BNPPLC is
engaged and intends to be engaged. BNPPLC has not incurred (whether by the Operative
Documents or otherwise), nor does BNPPLC intend to incur or believe that it will incur,
debts which will be beyond its ability to pay as such debts mature. No petition or answer
has been filed by or, to BNPPLC’s knowledge, against BNPPLC in bankruptcy or other legal
proceedings that seeks an assignment for the benefit of creditors, the appointment of a
receiver, trustee, custodian or liquidator with respect to BNPPLC or any significant portion
of BNPPLC’s property, a reorganization, arrangement, rearrangement, composition, extension,
liquidation or dissolution of BNPPLC or similar relief under the federal Bankruptcy Code or
any state law.

(As used in this provision and other provisions of the Operative Documents,
“knowledge of BNPPLC”, “BNPPLC’s knowledge” and words of like effect mean the present actual

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 16

 

 

knowledge of Lloyd G. Cox and Barry Mendelsohn, the current officers of BNPPLC having
primary responsibility for the negotiation of the Operative Documents. As used in any
future certificate delivered by BNPPLC as required by this Agreement or any other
Operative Documents, “knowledge of BNPPLC”, “BNPPLC’s knowledge” and words of like effect
will mean the present actual knowledge of Lloyd G. Cox and Barry Mendelsohn, or their
successors, as the then current officers of BNPPLC having primary responsibility for the
administration of the Operative Documents.)

     (4) Pending Legal Proceedings. No judicial or administrative investigations, actions,
suits or proceedings are pending or, to the knowledge of BNPPLC, threatened against or
affecting BNPPLC by or before any court or other Governmental Authority. BNPPLC is not in
default with respect to any order, writ, injunction, decree or demand of any court or other
Governmental Authority in a manner that has or could reasonably be expected to have a
material adverse effect on BNPPLC or its ability to perform its obligations under the
Operative Documents.

     (5) No Default or Violation. The execution and performance by BNPPLC of the Operative
Documents do not and will not contravene or result in a breach of or default under any other
material agreement to which BNPPLC is a party or by which BNPPLC is bound or which affects
any assets of BNPPLC. Such execution and performance by BNPPLC do not contravene in any
material respect any law, order, decree, rule or regulation to which BNPPLC is subject.
Further, such execution and performance by BNPPLC will not result in the creation or
imposition of (or the obligation to create or impose) any lien, charge or encumbrance on, or
security interest in, any property of BNPPLC pursuant to the provisions of any such other
agreement.

     (6) Enforceability. The Operative Documents constitute the legal, valid and binding
obligations of BNPPLC enforceable in accordance with their terms, subject to the effect of
bankruptcy, insolvency, reorganization, receivership and other similar laws affecting the
rights of creditors generally.

     (7) Conduct of Business and Maintenance of Existence. So long as any of the Operative
Documents remains in force, BNPPLC will continue to engage in business of the same general
type as now conducted by it and will preserve, renew and keep in full force and effect its
corporate existence and its rights, privileges and franchises necessary or desirable in the
normal conduct of business.

     (8) Not a Foreign Person. BNPPLC is not a “foreign person” within the meaning of
Sections 1445 and 7701 of the Code (i.e. BNPPLC is not a non-resident alien, foreign
corporation, foreign partnership, foreign trust or foreign estate as those terms are defined
in the Code and regulations promulgated thereunder).

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 17

 

 

Notwithstanding the foregoing, however or any other provision herein or in other Operative
Documents to the contrary, it is understood that LRC is not relying upon BNPPLC for any
evaluation of California or local Applicable Laws upon the transactions contemplated in the
Operative Documents, and BNPPLC makes no representation and will not make any representation that
conditions imposed by zoning ordinances or other state or local Applicable Laws to the purchase,
ownership, lease or operation of the Property have been satisfied.

     (C) No Implied Representations or Promises by BNPPLC. LRC acknowledges and agrees
that neither BNPPLC nor its representatives or agents have made any representations or promises
with respect to the Property or the transactions contemplated in the Operative Documents except as
expressly set forth in the Operative Documents, and no rights, easements or licenses are being
acquired by LRC from BNPPLC by implication or otherwise, except as expressly set forth in the other
Operative Documents.

5 Usury Savings Provision. Notwithstanding anything to the contrary in any of the
Operative Documents, BNPPLC does not intend to contract for, charge or collect any amount of money
from LRC that constitutes interest in excess of the maximum nonusurious rate of interest, if any,
allowed by applicable usury laws (the “Maximum Rate”). BNPPLC and LRC agree that it is their intent
in the execution of the Lease, the Purchase Agreement and other Operative Documents to contract in
strict compliance with applicable usury laws, if any. In furtherance thereof, BNPPLC and LRC
stipulate and agree that none of the provisions of the Lease, the Purchase Agreement or the other
Operative Documents shall ever be construed to create a contract requiring compensation for the
use, forbearance or detention of money at a rate in excess of the Maximum Rate, and the provisions
of this paragraph shall control over all other provisions of this Agreement or other Operative
Documents which may be in apparent conflict herewith. All interest paid or agreed to be paid by
LRC to BNPPLC shall, to the extent permitted by applicable usury laws, be amortized, prorated,
allocated, and spread throughout the period that any principal upon which such interest accrues is
expected to be outstanding (including without limitation any renewal or extension of the term of
the Lease) so that the amount of interest included in such payments does not exceed the maximum
nonusurious amount permitted by applicable usury laws. If the Designated Sale Date is accelerated
and as a result thereof amounts paid by LRC to BNPPLC as interest are determined to exceed the
interest that would have accrued at the Maximum Rate for the period prior to the Designated Sale
Date, then BNPPLC shall, at its option, either refund to LRC the amount of such excess or credit
such excess as a Qualified Prepayment (and thus reduce the Lease Balance and other amounts, the
determination of which depend upon Qualified Prepayments credited to LRC) and thereby shall render
inapplicable any and all penalties of any kind provided by applicable usury laws as a result of
such excess interest. If BNPPLC receives money (or anything else) that is determined to constitute
interest and that would, but for this provision, increase the effective interest rate

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 18

 

 

received by
BNPPLC under or in connection with the Operative Documents to a rate in excess of the Maximum Rate,
then the amount determined to constitute interest in excess of the maximum nonusurious interest
shall, immediately following such determination, be returned to LRC or be
credited as a Qualified Prepayment, in which event any and all penalties of any kind under
applicable usury law shall be inapplicable. If BNPPLC does not actually receive, but shall
contract for, request or demand, a payment of money (or anything else) which is determined to
constitute interest and to increase the effective interest rate contracted for or charged to a rate
in excess of the Maximum Rate, BNPPLC shall be entitled, following such determination, to waive or
rescind the contractual claim, request or demand for the amount determined to exceed the Maximum
Rate, in which event any and all penalties of any kind under applicable usury law shall be
inapplicable. If at any time LRC should have reason to believe that the transactions evidenced by
the Operative Documents are in fact usurious, LRC shall promptly give BNPPLC notice of such
condition, after which BNPPLC shall have ninety days in which to make appropriate refund or other
adjustment in order to correct such condition if it in fact exists.

6 Obligations of LRC Under Other Operative Documents Not Limited by this Agreement. Except
as provided above in Paragraph 5, nothing contained in this Agreement will limit, modify or
otherwise affect any of LRC’s obligations under the other Operative Documents. Subject to
Paragraph 5, those obligations are intended to be separate, independent and in addition to, and not
in lieu of, those established by this Agreement.

7 Waiver of Jury Trial. Each of the parties hereto hereby waives its right to a jury
trial of any claim or cause of action based upon or arising out of this Agreement, the other
Operative Documents or any of the transactions contemplated hereby or thereby, including contract
claims, tort claims, breach of duty claims, and all other common law or statutory claims
(collectively, the “Claims”). If and to the extent that the foregoing waiver of the right to a
jury trial is unenforceable for any reason in such forum, each of the parties hereto hereby
consents to the adjudication of all Claims pursuant to judicial reference as provided in California
Code of Civil Procedure Section 638, and the judicial referee shall be empowered to hear and
determine all issues in such reference, whether fact or law. Each of the parties hereto represents
that each has reviewed this waiver and consent and each knowingly and voluntarily waives its jury
trial rights and consents to judicial reference following consultation with legal counsel on such
matters. In the event of litigation, a copy of this Agreement may be filed as a written consent to
a trial by the court or to judicial reference under California Code of Civil Procedure Section 638
as provided herein.

[The signature pages follow.]

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 19

 

 

     IN WITNESS WHEREOF, this Closing Certificate and Agreement (Livermore/ Parcel 7) is executed
to be effective as of December 18, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a
Delaware corporation

 	 
	 	By:  	/s/ Barry Mendelsohn 	 
	 	 	Barry Mendelsohn, Director 	 
	 	 	 	 
	 

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Signature Page

 

 

[Continuation of signature pages for Closing Certificate and Agreement (Livermore/ Parcel 7) dated
as of December 18, 2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a

Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 
	 

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Signature Page

 

 

[Continuation of signature pages for Closing Certificate and Agreement (Livermore/ Parcel 7) dated
as of December 18, 2007]

The undersigned, BNP Paribas, joins in the execution of this Agreement solely for the purposes
stated in subparagraph 4(A), which concerns the status of BNPPLC as a consolidated subsidiary of
BNP Paribas.

	 	 	 	 	 
	 	BNP PARIBAS, a bank organized and existing under
the
laws of France

 	 
	 	By:  	/s/ Barry Mendelsohn 	 
	 	 	Barry Mendelsohn, Director 	 
	 	 	 	 
	 

 
 Closing Certificate and Agreement (Livermore/ Parcel 7) — Signature Page

 

 

Exhibit A

Legal Description

ALL OF PARCEL 7 AS SAID PARCEL IS SHOWN AND SO DESIGNATED ON THE PARCEL MAP 7341 FILED FOR RECORD
IN THE OFFICE OF THE COUNTY RECORDER OF ALAMEDA COUNTY IN BOOK 268 OF PARCEL MAPS AT PAGE 85,
TOGETHER WITH A PORTION OF PARCEL 14 AS SAID PARCEL IS SHOWN AND SO DESIGNATED ON THE MAP OF TRACT
7610 FILED FOR RECORD IN THE OFFICE OF THE COUNTY RECORDER OF ALAMEDA COUNTY IN BOOK 293 OF MAPS AT PAGE 14, MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE MOST SOUTHERLY CORNER COMMON TO SAID PARCEL 7 AND PARCEL 14;

THENCE ALONG THE BOUNDARY LINE OF SAID PARCEL 7 THE FOLLOWING TEN (10) COURSES:

1. WESTERLY ALONG A NON-TANGENT 1278.00 FOOT RADIUS CURVE TO THE RIGHT FROM WHICH THE CENTER
OF SAID CURVE BEARS NORTH 05° 41’ 02” EAST, THROUGH A CENTRAL ANGLE OF 3° 38’
58” AN ARC DISTANCE OF 81.402 FEET;

2. ALONG A REVERSE 1022.00 FOOT RADIUS CURVE TO THE LEFT FROM WHICH THE CENTER OF SAID CURVE
BEARS SOUTH 09° 20’ 00” WEST, THROUGH A CENTRAL ANGLE OF 9° 20’ 00” AN ARC
DISTANCE OF 166.481 FEET;

3. WEST, 284.906 FEET;

4. NORTH, 666.259 FEET;

5. EASTERLY ALONG A NON-TANGENT 1452.00 FOOT RADIUS CURVE TO THE LEFT FROM WHICH THE CENTER
OF SAID CURVE BEARS NORTH 01° 01’ 32” EAST, THROUGH A CENTRAL ANGLE OF 15° 46’
40” AN ARC DISTANCE OF 399.843 FEET;

6. ALONG A REVERSE 29.00 FOOT RADIUS CURVE TO THE RIGHT FROM WHICH THE CENTER OF SAID CURVE
BEARS SOUTH 14° 45’ 08” EAST, THROUGH A CENTRAL ANGLE OF 36° 52’ 16” AN ARC
DISTANCE OF 18.662 FEET;

 

 

7. ALONG A REVERSE 21.00 FOOT RADIUS CURVE TO THE LEFT FROM
WHICH THE CENTER OF SAID CURVE BEARS NORTH 22° 07’ 08” EAST, THROUGH A CENTRAL ANGLE
OF 36° 52’ 16” AN ARC DISTANCE OF 13.514 FEET;

8. NORTH 75° 14’ 52” EAST, 30.267 FEET;

9. SOUTH 14° 45’ 08” EAST, 77.744 FEET; AND

10. SOUTH, 2.171 FEET,

THENCE LEAVING SAID BOUNDARY LINE OF PARCEL 7, EAST, 26.510 FEET;

THENCE SOUTH, 22.517 FEET;

THENCE EAST, 17.000 FEET;

THENCE SOUTH, 130.001 FEET;

THENCE WEST 27.000 FEET;

THENCE SOUTH, 222.595 FEET;

THENCE EAST, 44.018 FEET;

THENCE SOUTH, 250.002 FEET;

THENCE WEST, 5.526 FEET TO A POINT ON THE EASTERLY LINE OF SAID PARCEL 7;

THENCE ALONG SAID EASTERLY LINE SOUTH, 41.262 FEET TO THE POINT OF BEGINNING.

A.P.N. 903-0010-018 and portion of 903-0010-31

 
 Exhibit A to Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 2

 

 

Exhibit B

Permitted Encumbrances

     1. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with
Section 75 of the California Revenue and Taxation Code.

     2. THE LAND LIES WITHIN THE BOUNDARIES OF PENDING ASSESSMENT DISTRICT NO. LL-821, AS DISCLOSED
BY AN ASSESSMENT DISTRICT MAP FILED JANUARY 6, 2003 IN BOOK 15, PAGE 69 OF MAPS OF ASSESSMENT AND
COMMUNITY FACILITIES DISTRICTS, RECORDED JANUARY 6, 2003 AS INSTRUMENT NO. 2003-006161 OF OFFICIAL
RECORDS.

     3. A waiver of any claims for damages by reason of the location, construction, landscaping or
maintenance of a contiguous freeway, highway, roadway or transit facility as contained in the
document recorded DECEMBER 17, 1948 as INSTRUMENT NO. AC95021 IN BOOK 5682, PAGE 186 of Official
Records.

     4. An offer of dedication for PUBLIC STORM DRAIN and incidental purposes, recorded NOVEMBER
23, 1998 as INSTRUMENT NO. 98-411265 of Official Records.

To: CITY OF LIVERMORE, A MUNICIPAL CORPORATION

     5. The terms and provisions contained in the document entitled “DEVELOPMENT AGREEMENT NO.
114-97, CAYETANO CORPORATE CAMPUS” recorded APRIL 2, 1999 as INSTRUMENT NO. 99-140252 of Official
Records.

Document(s) declaring modifications thereof recorded DECEMBER 20, 1999 as INSTRUMENT NO. 99-449348
of Official Records.

Document(s) declaring modifications thereof recorded SEPTEMBER 25, 2000 as INSTRUMENT NO.
2000-289230 of Official Records.

Document(s) declaring modifications thereof recorded OCTOBER 30, 2003 as INSTRUMENT NO. 2003-649388
of Official Records.

Document(s) declaring modifications thereof recorded OCTOBER 18, 2005 as INSTRUMENT NO. 2005-449011
of Official Records.

In connection therewith all obligations under the Development Agreement have been satisfied
with the exception of an ongoing obligation under Section 6.4 of DA 114-97 to contribute to a
program to provide bus passes to employees of users of a property up to $500 per month as
reiterated in a letter dated October 18, 2007 from the Community Development Director of the
City of Livermore.

 

 

     6. The terms, provisions and easement(s) contained in the document entitled “DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS REGARDING NO BUILD EASEMENT AREAS” recorded MAY 16, 2001 as
INSTRUMENT NO. 2001-166795 of Official Records. A DOCUMENT ENTITLED .AMENDMENT TO AND PARTIAL
TERMINATION OF DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS REGARDING NO BUILD EASEMENT
AREAS. RECORDED NOVEMBER 08, 2007 AS INSTRUMENT NO. 2007-390199 OF OFFICIAL RECORDS.

     7. Covenants, conditions, restrictions and easements in the document recorded JANUARY 10, 2002
as INSTRUMENT NO. 2002-017395 of Official Records, which provide that a violation thereof shall not
defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for
value, but deleting any covenant, condition or restriction indicating a preference, limitation or
discrimination based on race, color, religion, sex, handicap, familial status, national origin,
sexual orientation, marital status, ancestry, source of income or disability, to the extent such
covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes
or Section 12955 of the California Government Code. Lawful restrictions under state and federal law
on the age of occupants in senior housing or housing for older persons shall not be construed as
restrictions based on familial status.

CONSENT TO THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SHEA CENTER LIVERMORE,
EXECUTED BY KLA-TENCOR CORPORATION, A DELAWARE CORPORATION, RECORDED JANUARY 10, 2002 AS INSTRUMENT
NO. 2002-017396 OF OFFICIAL RECORDS.

NOTE: This title encumbrance is subject to and limited by the terms and provisions contained in
the document entitled “Memorandum of Agreement” which is being executed by BNPPLC and others
contemporaneously with BNPPLC’s acquisition of the Property from the Prior Owner and recorded in
the Official Records.

     8. An easement shown or dedicated on the map filed or recorded JANUARY 6, 2003 in BOOK 268,
PAGES 85 THROUGH 88 of MAPS

	 	 	 
	For:

	 	PUBLIC UTILITIES and incidental purposes.
	Affects:

	 	AS SHOWN ON SAID MAP

     9. An easement shown or dedicated on the map filed or recorded JANUARY 6, 2003 in BOOK 268,
PAGES 85 THROUGH 88 of MAPS

	 	 	 
	For:

	 	PUBLIC UTILITIES AND SIDEWALK and incidental purposes.

     10. An easement shown or dedicated on the map filed or recorded JANUARY 6, 2003 in BOOK 268,
PAGES 85 THROUGH 88 of MAPS

 
 Exhibit B to Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 2

 

 

	 	 	 
	For:

	 	PRIVATE LANDSCAPE and incidental purposes.

     11. An easement for FLIGHT AND PASSAGE OF AIRCRAFT and incidental purposes, recorded JANUARY
6, 2003 as INSTRUMENT NO. 2003-006165 of Official Records.

	 	 	 
	In Favor of:

	 	THE CITY OF LIVERMORE, A MUNICIPAL CORPORATION
	Affects:

	 	A PORTION OF THE LAND

     12. An easement for UTILITIES and incidental purposes, recorded JULY 5, 2005 as INSTRUMENT NO.
2005-273742 of Official Records.

	 	 	 
	In Favor of:

	 	PACIFIC GAS AND ELECTRIC COMPANY, A CALIFORNIA CORPORATION
	Affects:

	 	A SOUTHEASTERLY PORTION

 
 Exhibit B to Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 3

 

 

Exhibit C

Quarterly Certificate

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Gentlemen:

     This Certificate is furnished pursuant to subparagraph 2(D)(3) of the Closing Certificate and
Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 between Lam Research Corporation and
BNP Paribas Leasing Corporation (as amended, the “Closing Certificate”). Terms defined in the
Closing Certificate and used but not otherwise defined in this Certificate are intended to have the
respective meanings ascribed to them in the Closing Certificate.

     The undersigned, being a Responsible Financial Officer of Lam Research Corporation, represents
and certifies the following to BNP Paribas Leasing Corporation:

     (a) No Event of Default or material Default by LRC has occurred except as follows:

[If an Event of Default or material Default by LRC has occurred, insert a
description of the nature thereof and the action which LRC has taken or
proposes to take to rectify it; otherwise, insert the word “none”.]

     (b) The unrestricted cash, unencumbered cash investments and unencumbered marketable
securities classified as short term or long term investments according to GAAP of LRC and
its Subsidiaries (determined on a consolidated basis) are no less than $300,000,000, as
required by subparagraph 3(A) of the Closing Certificate.

     Executed this            day of                     , 20     .

[INSERT SIGNATURE BLOCK FOR A

RESPONSIBLE FINANCIAL OFFICER]

 

 

Exhibit D

Certificate of BNPPLC Re: Accounting

Lam Research Corporation

4300 Cushing Parkway

Fremont, California 94538

Attention: Roch LeBlanc, Treasurer

Gentlemen:

     This certificate is furnished pursuant to subparagraph 4(A) of the Closing Certificate and
Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 between BNP Paribas Leasing
Corporation and Lam Research Corporation (as amended, the “Closing Certificate”). Terms defined in
the Closing Certificate and used but not otherwise defined in this certificate are intended to have
the respective meanings ascribed to them in the Closing Certificate.

     BNP Paribas Leasing Corporation (“ BNPPLC”) certifies that the following are true and complete
in all material respects, but only to the knowledge of BNPPLC as of the date hereof:

     (A) The facts disclosed in any financial statements or other documents listed in the
Annex attached to this certificate were (as of their respective dates) true and complete in
all material respects. Copies of such statements or other documents were provided by or behalf of
BNPPLC to LRC prior to the date hereof to permit LRC to determine the appropriate accounting for
LRC’s relationship with BNPPLC under FASB Interpretation No. 46, Consolidation of Variable Interest
Entities (Revised December 2003).

     (B) The fair value of the Property and of other properties, if any, leased to LRC by BNPPLC
(collectively, whether one or more, the “Properties Leased to LRC”) are, as of the date hereof,
less than half of the total of the fair values of all assets of BNPPLC, excluding any assets of
BNPPLC which are held within a silo. Further, none of the Properties Leased to LRC are, as of the
date hereof, held within a silo.

     Although the representations required of BNPPLC by this certificate are intended to cover
facts, it is understood and agreed (consistent with subparagraph 4(C) of the Lease) that
BNPPLC has not made and will not make any representation or warranty as to the proper accounting by
LRC or its Affiliates of the Lease or other Operative Documents or as to other accounting
conclusions.

     Executed this            day of                     , 20     .

 

 

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a
Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

 
 Exhibit D to Closing Certificate and Agreement (Livermore/ Parcel 7) — Page 2

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