Document:

exv10w1

 

Exhibit 10.1

Harmonic Inc.

Change Of Control Severance Agreement

This Change of Control Severance Agreement (the “Agreement”) is made and entered into by and
between Matthew Aden, (the “Employee”) and Harmonic Inc. (the “Company”), effective as of the
latest date set forth by the signatures of the parties hereto below.

RECITALS

A.     It is expected that the Company from time to time will consider the possibility of an
acquisition by another company or other Change of Control. The Board of Directors of the Company
(the “Board “) recognizes that such consideration can be a distraction to the Employee and can
cause the Employee to consider alternative employment opportunities. The Board has determined that
it is in the best interests of the Company and its shareholders to assure that the Company will
have the continued dedication and objectivity of the Employee, notwithstanding the possibility,
threat or occurrence of a Change of Control (as defined below) of the Company.

B.     The Board believes that it is in the best interests of the Company and its shareholders to
provide the Employee with an incentive to continue his employment and to motivate the Employee to
maximize the value of the Company upon a Change of Control for the benefit of its shareholders.

C.     The Board believes that it is imperative to provide the Employee with certain severance benefits
upon Employee’s termination of employment following a Change of Control which provides the Employee
with enhanced financial security and provides incentive and encouragement to the Employee to remain
with the Company notwithstanding the possibility of a Change of Control.

          D.     Certain capitalized terms used in the Agreement are defined in Section 6 below.

          The parties hereto agree as follows:

          Term of Agreement. This Agreement shall terminate upon the date that all obligations
of the parties hereto with respect to this Agreement have been satisfied.

          At-Will Employment. The Company and the Employee acknowledge that the Employee’s
employment is and shall continue to be at-will, as defined under applicable law. If the Employee’s
employment terminates for any reason, including (without limitation) any termination prior to a
Change of Control, the Employee shall not be entitled to any payments, benefits, damages, awards or
compensation other than as provided by this Agreement, or as may otherwise be available in
accordance with the Company’s established employee plans and practices or pursuant to other
agreements with the Company.

          Severance Benefits.

               Termination Following a Change of Control. If the Employee’s employment terminates at
any time within eighteen (18) months following a Change of Control, then, subject to Section 5, the
Employee shall be entitled to receive the following severance benefits:

                    Involuntary Termination. If the Employee’s employment is terminated as a result of
Involuntary Termination other than for Cause, then the Employee shall receive the following
severance benefits from the Company:

                         Severance Payment. A cash payment in an amount equal to one hundred percent (100%) of
the Employee’s Annual Compensation;

                         Bonus Payment. A cash payment in an amount equal to either 50% of the established
annual target bonus or the average of the actual bonus paid in each of the two prior years,
whichever is greater.

 

 

                         Continued Employee Benefits. One hundred percent (100%) Company-paid health, dental
and life insurance coverage at the same level of coverage as was provided to such employee
immediately prior to the Change of Control (the “Company-Paid Coverage”). If such coverage
included the Employee’s dependents immediately prior to the Change of Control, such dependent shall
also be covered at Company expense. Company- Paid Coverage shall continue until the earlier of (i)
one year from the date of the Change of Control, or (ii) the date that the Employee and his
dependents become covered under another employer’s group health, dental or life insurance plans.
For purposes of Title X of the Consolidated Budget Reconciliation Act of 1985 (“COBRA”), the date
of the “qualifying event” for Employee and his dependent shall be the date upon which the
Company-Paid Coverage terminates.

                         Option and Restricted Stock Accelerated Vesting. One hundred percent (100%) of the
unvested portion of any outstanding stock option or restricted stock held by the Employee shall
automatically be accelerated in full so as to become completely vested and all such outstanding
stock options shall be exercisable for a period of one year after such termination.

                         Outplacement Assistance. If desired by Employee, Company will pay up to five thousand
dollars ($5,000.00) for outplacement assistance selected by Company and approved by Employee.

               Timing of Severance Payments. Any severance payment to which Employee is entitled
under Section 3(a)(i)(1) shall be paid by the Company to the Employee (or to the Employee’s
successors in interest pursuant to Section 7(b)) in cash and in full, not later than thirty (30)
calendar days following the Termination Date or within twelve (12) months of Termination Date at
the election of the Employee.

               Voluntary Resignation; Termination For Cause. If the Employee’s employment terminates
by reason of the Employee’s voluntary resignation (and is not an Involuntary Termination), or if
the Employee is terminated for Cause, then the Employee shall not be entitled to receive severance
or other benefits except for those (if any) as may then be established under the Company’s then
existing severance and benefits plans and practices or pursuant to other agreements with the
Company.

               Disability; Death. If the Company terminates the Employee’s employment as a result of
the Employee’s Disability or such Employee’s employment is terminated due to the death of the
Employee then the Employee shall not be entitled to receive severance or other benefits except for
those (if any) as may then be established under the Company’s then existing severance and benefits
plans and practices or pursuant to other agreements with the Company.

               Termination Apart from Change of Control. In the event the Employee’s employment is
terminated for any reason, either prior to the occurrence of a Change of Control or after the
eighteen (18) -month period following a Change of Control, then the Employee shall be entitled to
receive severance and any other benefits only as may then be established under the Company’s
existing severance and benefits plans and practices or pursuant to other agreements with the
Company.

          Attorney Fees; Costs and Expenses. The Company shall promptly reimburse Employee, on
a monthly basis, for the reasonable attorney fees, costs and expenses incurred by the Employee in
connection with any action brought by Employee to enforce his rights hereunder, regardless of the
outcome of the action.

          Limitation on Payments. In the event that the severance and other benefits provided
for in this Agreement or otherwise payable to the Employee (i) constitute “parachute payments”
within the meaning of Section 280G of the Internal Revenue Code of 1986 as amended (the “Code”) and
(ii) but for this Section 5, would be subject to the excise tax imposed by Section 4999 of the
Code, then the Employee’s severance benefits under Section 3(a)(i) shall be either

               delivered in full, or

               delivered as to such lesser extent which would result in no portion of such severance benefits
being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts
taking into account

 

 

the applicable federal, state and local income taxes and the excise tax imposed by Section
4999, results in the receipt by the Employee on an after-tax basis, of the greatest amount of
severance benefits, notwithstanding that all or some portion of such severance benefits may be
taxable under Section 4999 of the Code. Unless the Company and the Employee otherwise agree in
writing, any determination required under this Section 5 shall be made in writing by the Company’s
Accountants immediately prior to Change of Control, whose determination shall be conclusive and
binding upon the Employee and the Company for all purposes. For purposes of making the
calculations required by this Section 5, the Accountants may make reasonable assumptions and
approximations concerning applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code. The Company and the Employee
shall furnish to the Accountants such information and documents as the Accountants may reasonably
request in order to make a determination under this Section. The Company shall bear all costs the
Accountants may reasonably incur in connection with any calculations contemplated by this Section 5.

          Definition of Terms. The following terms referred to in this Agreement shall have the
following meanings:

               Annual Compensation. “Annual Compensation” means an amount equal to Employee’s
Company base salary for the twelve months preceding the Change of Control.

               Cause. “Cause” shall mean (i) any act of personal dishonesty taken by the Employee in
connection with his responsibilities as an employee and intended to result in substantial personal
enrichment of the Employee, (ii) the conviction of a felony) (iii) a willful act by the Employee
which constitutes gross misconduct and which is injurious to the Company, and (iv) following
delivery to the Employee of a written demand for performance from the Company which describes the
basis for the Company’s belief that the Employee has not substantially performed his duties,
continued violations by the Employee of the Employee’s obligations to the Company which are
demonstrably willful and deliberate on the Employee’s part.

               Change of Control. “Change of Control” means the occurrence of any of the following
events:

                    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Company representing fifty percent (50%) or more of
the total voting power represented by the Company’s then outstanding voting securities;

                    A change in the composition of the Board occurring within a two-year period, as a result of
which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall
mean directors who either (A) are directors of the Company as of the date hereof, or (B) are
elected, or nominated for election, to the Board with the affirmative votes of at least a majority
of the Incumbent Directors at the time of such election or nomination (but shall not include an
individual whose election or nomination is in connection with an actual or threatened proxy contest
relating to the election of directors to the Company);

                    The consummation of a merger or consolidation of the Company with any other corporation, other
than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity) at least fifty percent (50%) of
the total voting power represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation;

                    The consummation of the sale or disposition by the Company of all or substantially all the
Company’s assets.

               Disability. “Disability” shall mean that the Employee has been unable to perform his
Company duties as the result of his incapacity due to physical or mental illness, and such
inability, at least 26 weeks after its commencement, is determined to be total and permanent by a
physician selected by the Company or its insurers and acceptable to the Employee or the Employee’s
legal representative (such Agreement as to acceptability not to be unreasonably withheld).
Termination resulting from Disability may only be effected after at least 30 days written notice by
the Company of its intention to terminate the Employee’s employment. In the event that the
Employee

 

 

resumes the performance of substantially all of his duties hereunder before the termination of
his employment becomes effective, the notice of intent to terminate shall automatically be deemed
to have been revoked.

               Involuntary Termination. “Involuntary Termination” shall mean (i) without the
Employee’s express written consent, the significant reduction of the Employee’s duties authority or
responsibilities relative to the Employee’s duties, authority or responsibilities as in effect
immediately prior to such reduction, or the assignment to Employee of such reduced duties,
authority or responsibilities; (ii) without the Employee’s express written consent, a substantial
reduction, without good business reasons, of the facilities and perquisites (including office space
and location) available to the Employee immediately prior to such reduction; (iii) a reduction by
the Company in the base salary of the Employee as in effect immediately prior to such reduction;
(iv) a material reduction by the Company in the kind or level of employee benefits, including
bonuses, to which the Employee was entitled immediately prior to such reduction with the result
that the Employee’s overall benefits package is significantly reduced; (v) the relocation of the
Employee to a facility or a location more than twenty-five (25) miles from the Employee’s then
present location, without the Employee’s express written consent; (vi) any purported termination of
the Employee by the Company which is not effected for Disability or for Cause, or any purported
termination for which the grounds relied upon are not valid; (vii) the failure of the Company to
obtain the assumption of this Agreement by any successors contemplated in Section 7(a) below; or
(viii) any act or set of facts or circumstances which would, under California case law or statute
constitute a constructive termination of the Employee.

               Termination Date. “Termination Date” shall mean (i) if this Agreement is terminated
by the Company for Disability, thirty (30) days after notice of termination is given to the
Employee (provided that the Employee shall not have returned to the performance of the Employee’s
duties on a full-time basis during such thirty (30)-day period), (ii) if the Employee’s employment
is terminated by the Company for any other reason, the date on which a notice of termination is
given, provided that if within thirty (30) days after the Company gives the Employee notice of
termination, the Employee notifies the Company that a dispute exists concerning the termination or
the benefits due pursuant to this Agreement, then the Termination Date shall be the date on which
such dispute is finally determined, either by mutual written agreement of the parties, or by a
final judgment, order or decree of a court of competent jurisdiction (the time for appeal therefrom
having expired and no appeal having been perfected), or (iii) if the Agreement is terminated by the
Employee, the date on which the Employee delivers the notice of termination to the Company.

          Successors.

               Company’s Successors. Any successor to the Company (whether direct or indirect and
whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all
of the Company’s business and/or assets shall assume the obligations under this Agreement and agree
expressly to perform the obligations under this Agreement in the same manner and to the same extent
as the Company would be required to perform such obligations in the absence of a succession. For
all purposes under this Agreement, the term “Company” shall include any successor to the Company’s
business and/or assets which executes and delivers the assumption agreement described in this
Section 7(a) or which becomes bound by the terms of this Agreement by operation of law.

               Employee’s Successors. The terms of this Agreement and all rights of the Employee
hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

          Notice.

               General. Notices and all other communications contemplated by this Agreement shall be
in writing and shall be deemed to have been duly given when personally delivered or when mailed by
U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of
the Employee, mailed notices shall be addressed to him at the home address which he most recently
communicated to the Company in writing. In the case of the Company, mailed notices shall be
addressed to its corporate headquarters, and all notices directed shall be to the attention of its
Secretary.

 

 

               Notice of Termination. Any termination by the Company for Cause or by the Employee as
a result of a voluntary resignation or an Involuntary Termination shall be communicated by a notice
of termination to the other party hereto given in accordance with Section 8(a) of this Agreement.
Such notice shall indicate the specific termination provision in this Agreement relied upon, shall
set forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and shall specify the termination date (which shall
be not more than 30 days after the giving of such notice). The failure by the Employee to include
in the notice any fact or circumstance which contributes to a showing of Involuntary Termination
shall not waive any right of the Employee hereunder or preclude the Employee from asserting such
fact or circumstance in enforcing his rights hereunder.

          Miscellaneous Provisions.

               No Duty to Mitigate. The Employee shall not be required to mitigate the amount of any
payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that
the Employee may receive from any other source.

               Waiver. No provision of this Agreement shall be modified, waived or discharged unless
the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an
authorized officer of the Company (other than the Employee). No waiver by either party of any
breach of, or of compliance with, any condition or provision of this Agreement by the other party
shall be considered a waiver of any other condition or provision or of the same condition or
provision at another time.

               Whole Agreement. No agreements, representations or understandings (whether oral or
written and whether express or implied) which are not expressly set forth in this Agreement have
been made or entered into by either party with respect to the subject matter hereof. This
Agreement represents the entire understanding of the parties hereto with respect to the subject
matter hereof and supersedes all prior arrangements and understandings regarding same.

               Choice of Law. This Agreement shall be deemed to have been executed and delivered
within the State of California and the validity, interpretation, construction and performance of
this Agreement shall be governed by the laws of the State of California, without regard to choice
of law principles.

               Severability. The invalidity or unenforceability of any provision or provisions of
this Agreement shall not affect the validity or enforceability of any other provision hereof, which
shall remain in full force and effect.

               Withholding. All payments made pursuant to this Agreement will be subject to
withholding of applicable income and employment taxes.

               Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original but all of which together will constitute one and the same instrument.

 

 

          IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year set forth below.

	 	 	 	 	 
	COMPANY	 	HARMONIC INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick J. Harshman
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	President & CEO
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:
	 	October 1, 2007
	 

	 	 	 	 
	 
	 	 	 	 
	EMPLOYEE

	 	Name:
	 	/s/ Matthew Aden
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:
	 	October 1, 2007exv10w4

 

Exhibit 10.4

FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “First Amendment”) is made as
of Oct 23, 2007, by and among AMB JAPAN FINANCE Y.K., as Initial Borrower (the
“Initial Borrower”), each Qualified Borrower listed on the signature pages hereto (each of
the Initial Borrower and each Qualified Borrower, collectively, “Borrower”), AMB PROPERTY,
L.P., as Guarantor (“AMB LP”), AMB PROPERTY CORPORATION, as Guarantor (“AMB
Corporation” and together with AMB LP, the “Guarantors”), the Alternate Currency Banks
(as hereinafter defined), SUMITOMO MITSUI BANKING CORPORATION, as Administrative Agent.

 W I T N E S S E T H:

     WHEREAS, each of Borrower, the Guarantors and the Banks (as in the Credit Agreement) are party
to that certain Amended and Restated Revolving Credit Agreement, dated as of June 23, 2006 (as the
same may be amended, modified, extended or restated from time to time, the “Credit
Agreement”); and

     WHEREAS, the parties desire to modify the Credit Agreement upon the terms and conditions set
forth herein.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties do hereby agree as follows:

     1. Definitions. All capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement.

     2. Amendment to Defined Terms. (a) Section 1.1 of the Credit Agreement is hereby
amended by adding the following new defined terms in the appropriate alphabetical order:

          “Alternate Currency Advances” means the RMB Advances.

          “Alternate Currency Bank” means any Bank that is a party to the RMB Credit Agreement.

          “Alternate Currency Borrower” means any RMB Borrower.

          “Alternate Currency Borrower Default” means any RMB Borrower Default.

          “Alternate Currency Borrower Event of Default” means any RMB Borrower Event of
Default.

          “Alternate Currency Collateral” means RMB Collateral.

 

 

     “Alternate Currency Commitment” means the RMB Commitment.

     “Alternate Currency Commitment Proportion” means the RMB Commitment Proportion.

     “Alternate Currency Event of Default” means an RMB Event of Default.

     “Alternate Currency Facility” means the credit facility contemplated by the RMB Loan
Documents.

     “Alternate Currency Letters of Credit” means RMB Letters of Credit.

     “Alternate Currency Letters of Credit Usage” means the RMB Letter of Credit Usage.

     “Alternate Currency Loan Documents” means RMB Loan Documents.

     “Immediate Alternate Currency Event of Default” means any RMB Event of Default
described in Clause 11.1(v), (vi) or (vii).

     “Initial RMB Borrower” means Wealth Zipper (Shanghai) Property Development Co., Ltd.

     “Majority Alternate Currency Banks” means the Majority RMB Lenders.

     “Majority RMB Lenders” has the meaning set forth in the RMB Loan Agreement.

     “Reallocation Borrowing” has the meaning set forth in Section 4(d) of the First
Amendment.

     “RMB Advances” has the meaning set forth in the RMB Credit Agreement.

     “RMB Borrower” has the meaning set forth in the RMB Credit Agreement.

     “RMB Borrower Default” has the meaning set forth in the RMB Credit Agreement.

     “RMB Borrower Event of Default” has the meaning set forth in the RMB Credit Agreement.

2

 

     “RMB Collateral” has the meaning set forth in the RMB Credit Agreement.

     “RMB Commitment” has the meaning set forth in the RMB Credit Agreement.

     “RMB Commitment Proportion” has the meaning set forth in the RMB Credit Agreement.

     “RMB Credit Agreement” means that certain RMB Revolving Credit Agreement, dated as of
the date hereof, between the RMB Borrower, the RMB Lenders and the RMB Administrative Agent, which
agreement is attached hereto as Exhibit A, as the same may be modified, amended,
supplemented or replaced from time to time.

     “RMB Event of Default” has the meaning set forth in the RMB Credit Agreement.

     “RMB Lenders” has the meaning set forth in the RMB Credit Agreement.

     “RMB Letters of Credit” has the meaning set forth in the RMB Credit Agreement.

     “RMB Letters of Credit Usage” has the meaning set forth in the RMB Credit Agreement.

     “RMB Loan Documents” has the meaning set forth in the RMB Credit Agreement.

   (b) Section 1.1 of the Credit Agreement is hereby amended by deleting the existing definitions
and replacing the same with the following definitions:

     “Credit Party” means any of Borrower, a Guarantor or an Alternate Currency Borrower,
and “Credit Parties” shall mean Borrower, Guarantors and Alternate Currency Borrower, collectively.

     “Default” means any Guarantor Default, Borrower Default or any Alternate Currency
Borrower Default.

     “Event of Default” means any Guarantor Event of Default, Borrower Event of Default or
Alternate Currency Borrower Event of Default.

     “GAAP” means generally accepted accounting principles recognized as such in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a

3

 

significant segment of the accounting profession, which are applicable to the circumstances as of
the date of determination, provided that, with respect to any RMB Borrower, “GAAP” shall mean the
International Financial Reporting Standards issued by the International Accounting Standards Board.

          “Loan Documents” means this Agreement, the Notes, the Guaranty, the Qualified Borrower
Joinder Agreement, the Ratifications, the Letter(s) of Credit, the Letter of Credit Documents, the
Security Documents and the Alternate Currency Loan Documents.

          3. RMB Credit Facility. As contemplated by Section 9.5(c) of the Credit Agreement,
the Initial RMB Borrower and the RMB Lenders have entered into the RMB Credit Agreement pursuant to
which the RMB Borrower will have the right, at its option, to make borrowings (including RMB
Letters of Credit), and the RMB Lenders will fund such borrowings, denominated in Chinese Renminbi
in amounts of up to 500,000,000 Chinese Renminbi, which borrowings shall be made in accordance with
the procedures set forth therein and the proceeds of which shall be used in accordance with the
terms thereof.

4. Alternate Currency Borrowings.

          (a) Notwithstanding anything to the contrary contained in the Loan Documents and/or the
Alternate Currency Loan Documents, in no event shall the aggregate amount of outstanding Loans at
any time plus the outstanding amount of the Letter of Credit Usage plus the Yen
equivalent amount of outstanding Alternate Currency Advances plus the Yen equivalent of the
outstanding amount of the Alternate Currency Letters of Credit Usage, exceed the Facility Amount,
and the Credit Parties shall not request, and the Banks shall not make, any Loan (or make any
Letters of Credit available) or Alternate Currency Advance (or make any Alternate Currency Letters
of Credit available) if, after giving effect to the making of such Loan, Letters of Credit,
Alternate Currency Advance or Alternate Currency Letters of Credit, the aggregate amount of all
outstanding Loans and Letters of Credit Usage and the Yen equivalent amount of all outstanding
Alternate Currency Advances and Alternate Currency Letters of Credit Usage would exceed the
Facility Amount.

          (b) Notwithstanding anything to the contrary contained in the Loan Documents and/or the
Alternate Currency Loan Documents, in no event shall any Alternate Currency Bank be required to
fund any Loans (or participate in any Letters of Credit) or any Alternate Currency Advances (or
participate in any Alternate Currency Letters of Credit) if, after giving effect to the same, the
Alternate Currency Bank’s share of outstanding Loans (including its Pro Rata Share of any Letters
of Credit Usage) plus the Alternate Currency Bank’s share of the Yen equivalent amount of
outstanding Alternate Currency Advances and outstanding Alternate Currency Letters of Credit Usage
exceeds its Commitment.

          (c) Notwithstanding anything to the contrary contained in Article II of the Credit Agreement,
to the extent that, as a result of its outstanding Alternate Currency

4

 

Advances or participations in Alternate Currency Letters of Credit, any Alternate Currency
Bank cannot fund its full Pro Rata Share of any Borrowing (or purchase a participation in any
Letter of Credit up to its full Pro Rate Share), such Alternate Currency Bank shall fund a share of
such Borrowing (or purchase a participation in such Letter of Credit) up to the amount of its then
available Commitment, if any, and, in such event, each of the remaining Banks whose Commitments
have not yet been reached shall fund the remaining amount of such Borrowing (or purchase additional
participations in the remaining amount of such Letter of Credit) on a pro rata basis only among
such remaining Banks.

          (d) Notwithstanding anything to the contrary contained in Article II of the Credit Agreement,
to the extent that, as a result of its outstanding Committed Loans and participations in Letters of
Credit, any Alternate Currency Bank (the “Participating Banks”) cannot fund its full
Alternate Currency Commitment Proportion of any Alternate Currency Advance (or purchase a
participation in any Alternate Currency Letter of Credit up to its full Alternate Currency
Commitment Proportion) under the Alternate Currency Loan Documents, then, at Guarantor’s option,
either (A) the Borrower or Borrowers designated by Guarantor shall be deemed to have timely given a
Notice of Borrowing pursuant to Section 2.2 of the Credit Agreement to the Administrative Agent,
requesting a Borrowing (and all other conditions to such Borrowing shall be deemed waived or
satisfied) (a “Reallocation Borrowing”) of TIBOR Loans on the date on which such Alternate
Currency Advance is to be funded or Alternate Currency Letter of Credit is to be issued from the
Banks that are not participating in such Alternate Currency Advance or Alternate Currency Letter of
Credit (the “Non-Participating Banks”) (pro rata) and in an amount which is the lesser of
(i) the aggregate amount of each Participating Bank’s share (the “Commitment Shortfall”) of
such Alternate Currency Advance (or participation in such Alternate Currency Letter of Credit)
which exceeds its available Alternate Currency Commitment and (ii) the aggregate amount of
available Commitments of the Non-Participating Banks, or (B) the participations of the Banks under
the outstanding Letter of Credit or Letters of Credit designated by Borrower shall be reallocated
to reduce the participation of each Participating Bank in such Letters of Credit by an amount equal
to its Commitment Shortfall and increase the amount of the participations of the Non-Participating
Banks (pro rata) by an aggregate amount equal to the aggregate Commitment Shortfalls. The proceeds
of such Reallocation Borrowing shall be used to repay existing Borrowings of such Participating
Banks, in order to permit such Participating Banks to participate to the fullest extent possible in
such Alternate Currency Advance or Alternate Currency Letter of Credit.

          5. Organizational Chart. The attached Exhibit I shall replace Exhibit I to
the Credit Agreement and is a true, correct and complete (up to the tiers shown) organizational and
transaction structure chart for the Initial Borrower and, as of the date hereof, the Qualified
Borrowers and the Alternative Currency Borrowers.

5

 

          6. Mandatory Prepayments. Section 2.12 of the Credit Agreement shall be amended such
that the current paragraph shall be subsection (a) and the following shall be inserted as
subsection (b):

“If at any time the Yen equivalent of the sum of (i) the aggregate
amount of outstanding Loans plus the outstanding amount of
the Letter of Credit Usage plus the Yen equivalent amount of
outstanding Alternate Currency Advances plus the Yen
equivalent of the outstanding amount of the Alternate Currency
Letters of Credit Usage, so determined by the Administrative Agent,
in the aggregate, exceeds 105% of the Facility Amount, Guarantors,
within three (3) Business Days after notice thereof from the
Administrative Agent, shall repay (and cause the applicable
Borrowers to repay) all or a portion of such Loans (or reduce the
amount of outstanding Letters of Credit) or Alternate Currency
Advances (or reduce the amount of outstanding Alternate Currency
Letters of Credit), otherwise in accordance with the applicable
terms of this Agreement, in such amount so that, following the
making of any such payment or reduction, the Yen equivalent
outstanding of such Loans, Letter of Credit Usage, Alternate
Currency Advances and Alternate Currency Letters of Credit do not
exceed the Facility Amount.”

          7. Additional Covenants. Section 5.1(k) of the Credit Agreement shall be deleted and
the following inserted in lieu thereof:

“(k) annually, unaudited financial information for each Credit
Party (excluding the Guarantors) prepared by such Credit Party in
the ordinary course of business, together with notice from each
Credit Party of any disposition or transfer by such Credit Party of
any real estate asset to an Affiliate of AMB LP during the prior
year; and”

          8. Events of Default/Rights and Remedies with Respect to Alternative Currency Borrower
Event of Default. Section 6.2 of the Credit Agreement shall be amended such that the current
paragraph shall be subsection (a) and the following shall be inserted as subsection (b):

“(b) Upon the occurrence of any Immediate Alternate Currency Event
of Default with respect to any Alternate Currency Borrower, the
Administrative Agent shall have the right to immediately make a
claim under the Guaranty for, and demand payment by the Guarantors
of, the unpaid principal amount of, and any and all accrued
interest on, the Alternate Currency Advances made to such
defaulting Alternative Currency Borrower and any and all accrued

6

 

fees and other Obligations of such defaulting Alternate Currency
Borrower under the applicable Alternate Currency Loan Documents,
with all additional interest from time to time accrued thereon
(the “Defaulting Alternate Currency Borrower’s Outstanding
Obligations”) (it being agreed that the Guarantors’
obligations are primary and shall be enforceable against each
Guarantor and its respective successors and assigns without the
necessity for any suit or proceeding of any kind or nature
whatsoever brought by the Administrative Agent or any of the
Alternative Currency Banks against the defaulting Alternative
Currency Borrower); and upon the occurrence and during the
continuance of any other Alternate Currency Borrower Event of
Default, the Administrative Agent, following consultation with the
Alternate Currency Banks that have made Alternate Currency
Advances to the defaulting Alternate Currency Borrower, may (and
upon the demand of the applicable Majority Alternate Currency
Banks shall), by written notice to such defaulting Alternate
Currency Borrower and each Guarantor and acceleration of the
Defaulting Alternate Currency Borrower’s Outstanding Obligations
under the applicable Alternate Currency Loan Documents,
immediately make a claim under the Guaranty for, and demand
payment by, the Guarantors of the Defaulting Alternate Currency
Borrower’s Outstanding Obligations (it being agreed that the
Guarantors’ obligations are primary and shall be enforceable
against each Guarantor and its respective successors and assigns
without the necessity for any suit or proceeding of any kind or
nature whatsoever brought by the Administrative Agent or any of
the Alternate Currency Banks against the defaulting Alternate
Currency Borrower).”

          9. Rights and Remedies. Section 6.4 of the Credit Agreement shall be deleted and the
following shall be inserted in lieu thereof:

Upon the occurrence of any Guarantor Event of Default described in
Sections 6.3(f), (g), (o), (q) or (r), the Commitments shall
immediately terminate and the unpaid principal amount of, and any
and all accrued interest on, the Loans, the Alternate Currency
Advances and any and all accrued fees and other Obligations
hereunder and/or under the other Loan Documents shall automatically
become immediately due and payable, with all additional interest
from time to time accrued thereon and without presentation, demand,
or protest or other requirements of any kind

7

 

(including, without limitation, valuation and appraisement,
diligence, presentment, notice of intent to demand or accelerate and
notice of acceleration), all of which are hereby expressly waived by
the Credit Parties; and upon the occurrence and during the
continuance of any other Guarantor Event of Default, the
Administrative Agent, following consultation with the Banks, may
(and upon the demand of the Majority Banks shall), by written notice
to the Credit Parties, in addition to the exercise of all of the
rights and remedies permitted the Administrative Agent and the Banks
at law or equity, hereunder or under any of the other Loan
Documents, declare that the Commitments are terminated and declare
the unpaid principal amount of and any and all accrued and unpaid
interest on the Loans, the Alternate Currency Advances and any and
all accrued fees and other Obligations hereunder and/or under the
other Loan Documents to be, and the same shall thereupon be,
immediately due and payable with all additional interest from time
to time accrued thereon and (except as otherwise provided in the
Loan Documents) without presentation, demand, or protest or other
requirements of any kind (including, without limitation, valuation
and appraisement, diligence, presentment, notice of intent to demand
or accelerate and notice of acceleration), all of which are hereby
expressly waived by the Credit Parties.

          10. Distributions of Proceeds after Default. Section 6.8 of the Credit Agreement
shall be deleted and the following shall be inserted in lieu thereof:

“Notwithstanding anything contained herein to the contrary but
subject to the provisions of Section 9.16 hereof (and the
corresponding section of any Alternate Currency Loan Document),
from and after an Event of Default, to the extent proceeds are
received by Administrative Agent pursuant to Section 6.2 or 6.4,
with respect to amounts collected under Section 6.2(a) or 6.4
hereof, such proceeds will be distributed to the Banks pro rata in
accordance with the unpaid principal amount of the Loans (giving
effect to any participations granted therein pursuant to Section
2.5(b) and Section 9.4) and, with respect to amounts collected
under Section 6.2(b) or 6.4 hereof, such proceeds will be
distributed to the applicable Alternate Currency Banks pro rata in
accordance with the unpaid principal amount of the Alternate
Currency Advances of the defaulting Alternate Currency Borrower.”

8

 

          11. Notices. Section 9.1 is amended to add the following sentence:

“Any party may from time to time, by not less than five (5) Business Days’ prior
written notice to the other party given as above set forth, change its address for
purposes of receipt of any such Notice.”

          12. Effective Date. This First Amendment shall become effective upon receipt by the
Administrative Agent of counterparts hereof signed by Borrower, the Guarantors and the Alternate
Currency Banks.

          13. Reaffirmation and Acknowledgment. Each of Borrower and the Guarantors hereby (a)
reaffirms and admits the validity and enforceability of the Loan Documents and all of the
obligations of Borrower and the Guarantors thereunder, (b) agrees and admits that the Borrower and
the Guarantors have no defenses to or offsets against any such obligations, and (c) certifies that,
following the execution and delivery of this First Amendment by each of Borrower, the Guarantors
and the Banks, (i) no Default or Event of Default shall exist, and (ii) the representations and
warranties contained in the Loan Documents, as amended hereby, are true and correct in all material
respects on the date hereof (other than representations and warranties which expressly speak as of
a different date).

          14. Entire Agreement. The Credit Agreement as amended by this First Amendment and
the Alternate Currency Loan Documents constitutes the entire agreement among the parties hereto
with respect to the subject matter hereof and there are no other agreements, understandings,
undertakings, representations or warranties among the parties hereto with respect to the subject
matter hereof except as set forth herein.

          15. Governing Law. This First Amendment shall be governed by, and construed in
accordance with, the law of the State of New York.

          16. Counterparts. This First Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one and the same agreement, and any of
the parties hereto may execute this Amendment by signing any such counterpart.

          17. Headings, Etc. Section or other headings contained in this First Amendment are
for reference purposes only and shall not in any way affect the meaning or interpretation of this
First Amendment.

          18. No Further Modifications. Except as modified herein, all of the terms and
conditions of the Credit Agreement, as modified hereby shall remain in full force and effect and,
as modified hereby, the Borrower confirms and ratifies all of the terms, covenants and conditions
of the Credit Agreement in all respects.

9

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	INITIAL BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	AMB JAPAN FINANCE Y.K., a Japan kabushiki
kaisha	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: 	 	 
	 	 	Title: Director	 	 
	 	 	[SEAL]	 	 

[Signature Page to First Amendment to JPY Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	AMB PROPERTY, L.P., a Delaware

limited partnership	 	 
	 
	 	 	 	 	 	 
	 

	 	By: AMB PROPERTY
	 	 
	 	 	CORPORATION, a Maryland 
 corporation and its
sole general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	/s/ Tracy Abels	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name: 	Tracy Abels	 	 	 
	 

	 	Title: 	Vice President     	 	 	 
	 
	 	 	 	 	 	 
	 	 	AMB PROPERTY CORPORATION, a 
 Maryland

corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	/s/ Tracy Abels	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name: 	Tracy Abels	 	 	 
	 

	 	Title: 	Vice President	 	 	 

[Signature Page to First Amendment to JPY Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	QUALIFIED BORROWERS:	 	 
	 
	 	 	 	 	 	 
	 	 	AMB AMAGASAKI 2 TMK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 
	 
	 	 	 	 	 
	 	 	AMB NARITA 2 TMK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 
	 
	 	 	 	 	 	 
	 	 	AMB JAPAN FINANCE 2 Y.K.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 
	 
	 	 	 	 	 	 
	 	 	AMB SHIOHAMA TMK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 
	 
	 	 	 	 	 	 
	 	 	AMB SHINKIBA TMK,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 

[Signature Page to First Amendment to JPY Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	AMB TSURUMI TMK,	 	 
	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 
	 	 	AMB NARITA 1-2 TMK	 	 
	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 
	 	 	AMB KASUGAI 2 TMK	 	 
	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 
	 	 	AMB NANKO NAKA TMK	 	 
	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 

[Signature Page to First Amendment to JPY Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	AMB FUNABASHI 5 TMK	 	 
	 

	 	By:
	 	 	 	
	 

	 	 	 	 	 
	 

	 	Name:

Title:
	 		 

[Signature Page to First Amendment to JPY Credit Agreement]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	SUMITOMO MITSUI BANKING CORPORATION,

as Administrative Agent and an Alternate Currency Bank	 	 
	 
	 

	 	By:	/s/ William M. Ginn	 	 	 
	 

	 	 	 	 	 
	 

	 	Name: 	William M. Ginn	 	 	 
	 

	 	Title:	General Manager	 	 	 

[Signature Page to First Amendment to JPY Credit Agreement]

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA, TOKYO BRANCH,

as an Alternate Currency Bank

 	 
	 	By:  	/s/ William G. Said
 	 
	 	Name: 	  	William G. Said 	 
	 	Title: 	  	Vice President & Country Head 	 
	 

[Signature Page to First Amendment to JPY Credit Agreement]

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