Document:

exv10w141

 

Exhibit 10.141

AGREEMENT REGARDING

PURCHASE AND REMARKETING OPTIONS

(LIVERMORE/ PARCEL 7)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 18, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1	 	Additional Definitions	 	 	2	 
	 	 	“97-1/Default (100%)”	 	 	2	 
	 	 	“Adjusted Lease Balance”	 	 	2	 
	 	 	“Applicable Purchaser”	 	 	2	 
	 	 	“Balance of Unpaid Construction Period Losses”	 	 	2	 
	 	 	“BNPPLC’s Actual Out of Pocket Costs”	 	 	4	 
	 	 	“Break Even Price”	 	 	4	 
	 	 	“Committed Price”	 	 	4	 
	 	 	“Conditions to LRC’s Initial Remarketing Rights”	 	 	4	 
	 	 	“Cutoff Date”	 	 	4	 
	 	 	“Decision Not to Sell at a Loss”	 	 	4	 
	 	 	“Deemed Sale”	 	 	5	 
	 	 	“Extended Remarketing Period”	 	 	5	 
	 	 	“Fair Market Value”	 	 	5	 
	 	 	“Final Sale Date”	 	 	5	 
	 	 	“Initial Remarketing Notice”	 	 	5	 
	 	 	“Initial Remarketing Price”	 	 	5	 
	 	 	“Lease Balance”	 	 	5	 
	 	 	“LRC’s Extended Remarketing Right”	 	 	5	 
	 	 	“LRC’s Initial Remarketing Rights”	 	 	6	 
	 	 	“Make Whole Amount”	 	 	6	 
	 	 	“Maximum Remarketing Obligation”	 	 	6	 
	 	 	“Must Sell Price”	 	 	6	 
	 	 	“Notice of Sale”	 	 	7	 
	 	 	“Proposed Sale”	 	 	7	 
	 	 	“Proposed Sale Date”	 	 	7	 
	 	 	“Purchase Option”	 	 	7	 
	 	 	“Put Option”	 	 	7	 
	 	 	“Qualified Sale”	 	 	7	 
	 	 	“Sale Closing Documents”	 	 	7	 
	 	 	“Supplemental Payment”	 	 	8	 
	 	 	“Supplemental Payment Obligation”	 	 	8	 
	 	 	“Valuation Procedures”	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	2	 	LRC’s Options and Obligations on the Designated Sale Date	 	 	8	 
	 
	 	(A)	 	Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation	 	 	8	 
	 
	 	(B)	 	Designation of the Purchaser	 	 	10	 
	 
	 	(C)	 	Delivery of Property Related Documents If BNPPLC Retains the Property	 	 	10	 
	 
	 	(D)	 	Security for LRC’s Purchase Option	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	3	 	LRC’s Rights, Options and Obligations After the Designated Sale Date	 	 	11	 
	 
	 	(A)	 	LRC’s Obligation to Buy if Certain Conditions are Satisfied	 	 	11	 
	 
	 	(B)	 	LRC’s Extended Right to Remarket	 	 	11	 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	(C)	 	Deemed Sale On the Second Anniversary of the Designated Sale Date	 	 	12	 
	 
	 	(D)	 	LRC’s Right to Share in Sales Proceeds Received By BNPPLC From any Qualified Sale	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	4	 	Transfers By BNPPLC After the Designated Sale Date	 	 	13	 
	 
	 	(A)	 	BNPPLC’s Right to Sell	 	 	13	 
	 
	 	(B)	 	Survival of LRC’s Rights and the Supplemental Payment Obligation	 	 	13	 
	 
	 	(C)	 	Release and Quitclaim by LRC	 	 	13	 
	 
	 	(D)	 	Easements and Other Transfers in the Ordinary Course of Business	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	5	 	Terms of Conveyance Upon Purchase	 	 	14	 
	 
	 	(A)	 	Tender of Sale Closing Documents	 	 	14	 
	 
	 	(B)	 	Delivery of Escrowed Proceeds	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	6	 	Survival and Termination of the Rights and Obligations of LRC and BNPPLC	 	 	15	 
	 
	 	(A)	 	Election by LRC to Terminate the Supplemental Payment Obligation Prior to the Completion Date	 	 	15	 
	 
	 	(B)	 	Status of this Agreement Generally	 	 	15	 
	 
	 	(C)	 	Automatic Termination of LRC’s Rights	 	 	16	 
	 
	 	(D)	 	Payment Only to BNPPLC	 	 	16	 
	 
	 	(E)	 	Preferences and Voidable Transfers	 	 	16	 
	 
	 	(F)	 	Remedies Under the Other Operative Documents	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	7	 	Certain Remedies Cumulative	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	8	 	Attorneys’ Fees and Legal Expenses	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	9	 	Recording Memorandum	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	10	 	Successors and Assigns	 	 	17	 

(ii)

 

TABLE OF CONTENTS
(Continued)

Exhibits and Schedules

			
	 	 	 
	Exhibit A
	 	Legal Description
	 	 	 
	Exhibit B
	 	Valuation Procedures
	 	 	 
	Exhibit C
	 	Form of Deed With Limited Title Warranties
	 	 	 
	Exhibit D
	 	Bill of Sale and Assignment
	 	 	 
	Exhibit E
	 	Acknowledgment of Disclaimer of Representations and Warranties
	 	 	 
	Exhibit F
	 	Secretary=s Certificate
	 	 	 
	Exhibit G
	 	FIRPTA Statement
	 	 	 
	Exhibit H
	 	Notice of Election to Terminate the Supplemental Payment Obligation

(iii)

 

AGREEMENT REGARDING

PURCHASE AND REMARKETING OPTIONS

(LIVERMORE/ PARCEL 7)

     This AGREEMENT REGARDING PURCHASE AND REMARKETING OPTIONS (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.

     Contemporaneously with this Agreement, at the request of LRC 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 described in
Exhibit A and all Improvements on such Land. (As used herein, “Property” means (i) all of
BNPPLC’s interests, including those conveyed to it by the Prior Owner, in the Land and in the
Improvements and in all other real and personal property from time to time covered or to be covered
by the Lease and included within the “Property” as defined therein, and (ii) BNPPLC’s interest in
any Escrowed Proceeds yet to be applied as a Qualified Prepayment or to the cost of repairs to or
restoration of the Improvements or other property covered by the Lease; except that, for purposes
of this Agreement (but without limiting any provision of the other Operative Documents regarding
the application of Escrowed Proceeds), the Property will not include any condemnation or insurance
proceeds included in Escrowed Proceeds as a result of any Pre-lease Force Majeure Event, nor will
it include any right to receive any such condemnation or insurance proceeds in the future, unless
LRC itself or one of its Affiliates purchases the Property from BNPPLC as provided in subparagraphs
2(A)(1) or 3(A)

 

 

below.)

     LRC and BNPPLC have agreed on the terms and conditions upon which LRC may elect
to purchase or arrange for the purchase of the Property or may be obligated to purchase the
Property, and by this Agreement they desire to confirm all such terms and conditions.

AGREEMENTS

1 Additional Definitions. As used in this Agreement, the following terms have the
following respective meanings:

“97-1/Default (100%)” means a Default that results from (A) a failure of LRC to make any
payment required by any Operative Document, including (i) any 97-10/Prepayment payable as
provided in Paragraph 9 of the Construction Agreement, (ii) any other amounts
payable under the Construction Agreement because of Covered Construction Period Losses,
(iii) any payment of Rent required by the Lease or (iv) any Supplemental Payment required by
this Agreement on the Designated Sale Date, or (B) any Hazardous Substance Activities
occurring on or about the Land after the Completion Date and on or prior to the Cutoff Date,
or (C) any failure of LRC after the Completion Date and on or prior to the Cutoff Date to
insure, maintain, operate, repair or return the Property in accordance with all terms and
conditions of the Lease, or (D) any failure of LRC to apply insurance or condemnation
proceeds received by it with respect to the Property as required by the Operative Documents,
or (E) any breach by LRC of subparagraphs 1(B), (D), (E) or (G) of the Closing Certificate.
Except as provided in subparagraph 3(A), the characterization of any Default as a
97-1/Default (100%) will not affect the rights or remedies available to BNPPLC because of
the Default.

“Adjusted Lease Balance” means a dollar amount equal to the following (but not less than
zero):

	 	•	 	the Lease Balance, less
	 
	 	•	 	Pre-lease Force Majeure Losses (if any).

“Applicable Purchaser” means (1) the third party designated by LRC to purchase the Property
at any sale arranged by LRC as provided in this Agreement, or (2) the third party designated
by BNPPLC as the purchaser at any Qualified Sale not arranged by LRC.

“Balance of Unpaid Construction Period Losses” means, subject to the qualifications set
forth below in this definition, an amount equal to the sum of:

	 	(1)	 	the total Losses (if any) that have been incurred or suffered by BNPPLC or other
Interested Parties at any time and from time to time prior to the Completion Date

 

 

	 	 	 	(or, if no Completion Date occurs prior to the Designated Sale Date, then prior to
the Designated Sale Date) by reason of, in connection with or arising out of (A)
their ownership or alleged ownership of any interest in the Property or the payments
required by the Operative Documents, (B) the use or operation of the Property, (C)
the negotiation, administration or enforcement of the Operative Documents, (D) the
making of Funding Advances, (E) the Construction Project, (F) the breach by LRC of
this Agreement or any other Operative Document or any other document executed by LRC
in connection herewith, (G) any failure of the Property or LRC itself to comply with
Applicable Laws, (H) Permitted Encumbrances, (I) Hazardous Substance Activities,
including those occurring prior to Effective Date, or (J) any bodily or personal
injury or death or property damage occurring in or upon or in the vicinity of the
Property through any cause whatsoever; plus
	 
	 	(2)	 	interest accruing at the Default Rate, compounded annually, on each payment of
any such Losses by BNPPLC or any other Interested Party from the date such payment was
made to the Designated Sale Date.

For purposes of computing the Balance of Unpaid Construction Period Losses, Losses as
described in clause (1) of this definition will include each reduction (if any) (i) in the
Carrying Costs added to the Outstanding Construction Allowance as provided in the
Construction Agreement, or (ii) in the Base Rent payable to BNPPLC as provided in the Lease,
that results from Pre-lease Force Majeure Losses. In other words, the Losses described in
clause (1) will include the additional (if any) Carrying Costs and Base Rent that would have
accrued if Pre-lease Force Majeure Losses were set at zero dollars ($0.00) in the formulas
set forth in the Construction Agreement and in the Lease for calculating Carrying Costs and
Base Rent, respectively.

Notwithstanding the foregoing, however, none of the following will be included in the
Balance of Unpaid Construction Period Losses: (i) amounts included in or paid by BNPPLC with
the proceeds of the Initial Advance (including Transaction Expenses); (ii) Losses paid or
reimbursed from Construction Advances (including Local Impositions, insurance premiums and
amounts paid by LRC prior to the Completion Date and reimbursed to it through Construction
Advances made pursuant to the Construction Agreement); (iii) any other Losses which LRC has
paid prior to the Designated Sale Date or for which LRC remains fully obligated to pay
pursuant to the other Operative Documents (including Covered Construction Period Losses paid
or payable by LRC pursuant to the Construction Agreement); and (iv) any decline in the value
of the Property, including any such decline that is attributable solely to a Pre-lease Force
Majeure Event and thus constitutes a Pre-lease Force Majeure Loss.

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 3

 

 

Further, in the event BNPPLC or another Interested Party receives and is permitted to retain
insurance proceeds paid under any insurance policy maintained by LRC as reimbursement or
compensation for Losses that would otherwise be included in the Balance of Unpaid
Construction Period Costs, then the Balance of Unpaid Construction Period Costs and the
Losses described in clause (2) of this definition will be reduced pro tanto by the amount of
such insurance proceeds, effective as of the date such proceeds are paid to BNPPLC or the
other Interested Party.

“BNPPLC’s Actual Out of Pocket Costs” means the out-of-pocket costs and expenses, if any,
incurred by BNPPLC in connection with a sale of the Property under this Agreement or in
connection with the collection of payments due to it under this Agreement (including any
Breakage Costs; Attorneys’ Fees; appraisal costs; and income, transfer, withholding or other
taxes which do not constitute Excluded Taxes; but not including Excluded Taxes or costs of
removing any Lien Removable by BNPPLC).

“Break Even Price” means an amount equal to:

	•	 	the Lease Balance, plus

	•	 	BNPPLC’s Actual Out of Pocket Costs, and plus

	•	 	an amount equal to the Balance of Unpaid Construction Period Losses (if any).

“Committed Price” has the meaning indicated in subparagraph 3(B)(4).

“Conditions to LRC’s Initial Remarketing Rights” has the meaning indicated in subparagraph
2(A)(2)(a).

“Cutoff Date” means the later of the dates upon which (i) the Lease terminates or LRC’s
interests in the Property are sold at foreclosure as provided in Exhibit B attached
to the Lease, or (ii) LRC surrenders possession and control of the Property and ceases to
have the right to use and occupy the Land or Improvements under any of the Operative
Documents.

“Decision Not to Sell at a Loss” means a decision by BNPPLC not to sell the Property on the
Designated Sale Date to an Applicable Purchaser as provided in subparagraph 2(A)(2), despite
LRC’s satisfaction of the Conditions to LRC’s Initial Remarketing Rights.

“Deemed Sale” has the meaning indicated in subparagraph 3(C).

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 4

 

 

“Extended Remarketing Period” means a period beginning on the Designated Sale Date and
ending on the Final Sale Date.

“Fair Market Value” has the meaning indicated in Exhibit B.

“Final Sale Date” means the earlier of:

	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property to
consummate a sale of the Property to LRC because of BNPPLC’s exercise of the Put Option as
provided in subparagraph 3(A); or

	•	 	any date after the Designated Sale Date upon which BNPPLC conveys the Property to
consummate a Qualified Sale, or would have done so but for a material breach of this
Agreement by LRC (including any breach of its obligation to make any Supplemental Payment
required in connection with such Qualified Sale); or

	•	 	the second anniversary of the Designated Sale Date, which will be the date of a Deemed
Sale as provided in subparagraph 3(C) if no earlier date qualifies as the Final Sale Date
and the entire Property is not sold by BNPPLC to LRC or an Applicable Purchaser prior to
the second anniversary of the Designated Sale Date.

“Initial Remarketing Notice” means a notice delivered to BNPPLC by LRC prior to the
Designated Sale Date in which LRC confirms LRC’s decision to exercise LRC’s Initial
Remarketing Rights and the amount of the Initial Remarketing Price.

“Initial Remarketing Price” means the cash price set forth in an Initial Remarketing Notice
delivered by LRC to BNPPLC as the price for which LRC has arranged a sale of the Property on
the Designated Sale Date to an Applicable Purchaser which is not an Affiliate of LRC. Such
price may be any price negotiated by the Applicable Purchaser in good faith and on an arms
length basis with LRC.

“Lease Balance” means the Lease Balance (as defined in the Common Definitions and Provisions
Agreement) on the Designated Sale Date, but computed without deduction for any Supplemental
Payment or other amount paid to BNPPLC pursuant to this Agreement on the Designated Sale
Date.

“LRC’s Extended Remarketing Right” has the meaning indicated in subparagraph 3(B).

“LRC’s Initial Remarketing Rights” has the meaning indicated in

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 5

 

 

 subparagraph 2(A)(2).

“Make Whole Amount” means the sum of the following:

     (1) the amount (if any) by which the Lease Balance exceeds the following, as
applicable: (a) any 97-10/Prepayment paid to BNPPLC on or before the Designated Sale Date,
or (b) any Supplemental Payment which was actually paid to BNPPLC on the Designated Sale
Date; together with interest on such excess computed at the Default Rate for the period
commencing on the Designated Sale Date and ending on the Final Sale Date; plus

     (2) any unpaid Base Rent or other amounts due to BNPPLC pursuant to the other Operative
Documents; plus

     (3) BNPPLC’s Actual Out of Pocket Costs; plus

     (4) an amount equal to the Balance of Unpaid Construction Period Losses (if any),
together with interest on thereon computed at the Default Rate for the period commencing on
the Designated Sale Date and ending on the Final Sale Date; plus

     (5) the amount, but not less than zero, by which (i) all Local Impositions, insurance
premiums and other Losses of every kind suffered or incurred by BNPPLC (whether or not
reimbursed in whole or in part by another Interested Party) with respect to the ownership,
operation or maintenance of the Property during the Extended Remarketing Period, exceeds
(ii) any rents or other sums collected by BNPPLC during such period from third parties as
consideration for any lease or other contracts made by BNPPLC that authorize the use and
enjoyment of the Property by such parties; together with interest on such excess computed at
the Default Rate for each day prior to the Final Sale Date.

“Maximum Remarketing Obligation” means a dollar amount equal to 85.88% of the Adjusted Lease
Balance.

“Must Sell Price” means, with respect to any Proposed Sale arranged by LRC pursuant to
subparagraph 3(B), a cash price to BNPPLC equal to the Make Whole Amount, computed as of the
Proposed Sale Date applicable to such Proposed Sale, plus all reimbursements or payments by
BNPPLC to LRC that will be required by clause (4) of subparagraph 3(D) in connection with
the Proposed Sale.

“Notice of Sale” has the meaning indicated in subparagraph 3(B)(4).

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 6

 

 

“Proposed Sale” has the meaning indicated in subparagraph 3(B).

“Proposed Sale Date” has the meaning indicated in subparagraph 3(B)(4).

“Purchase Option” has the meaning indicated in subparagraph 2(A)(1).

“Put Option” has the meaning indicated in subparagraph 3(A).

“Qualified Sale” means any (1) Deemed Sale as described in subparagraph 3(C), or (2) actual
sale (prior to any such Deemed Sale) of all or substantially all of the Property to an
Applicable Purchaser that occurs after the Designated Sale Date and that:

	•	 	results from LRC’s exercise of LRC’s Extended Remarketing Right as described in
subparagraph 3(B); or

	•	 	is approved in advance as a Qualified Sale by LRC; or

	•	 	is to a third party and, if it is completed by a conveyance from BNPPLC prior to six
months after the Designated Sale Date, is for a price not less than the least of the
following amounts:

	 	(a)	 	the lowest price at which BNPPLC will be obligated, pursuant to
clause (4) of subparagraph 3(D), to reimburse to LRC (i) the entire amount of
any Supplemental Payment theretofore made by LRC to BNPPLC, or (ii) if no such
Supplemental Payment has been made, but LRC has theretofore made a
97-10/Prepayment to BNPPLC, the entire amount of such 97-10/Prepayment; or
	 
	 	(c)	 	90% of the Fair Market Value of the Property.

“Sale Closing Documents” means the following documents, which BNPPLC must tender pursuant to
Paragraph 5(A) to consummate any sale of the Property pursuant to this Agreement: (1) a
Deed With Limited Title Warranties in the form attached as Exhibit C, (2) a Bill of
Sale and Assignment in the form attached as Exhibit D, (3) an Acknowledgment of
Disclaimer of Representations and Warranties in the form attached as Exhibit E, (4)
a Secretary’s Certificate in the form attached as Exhibit F, and (5) a certificate
concerning tax withholding in the form attached as Exhibit G.

“Supplemental Payment” has the meaning indicated in subparagraph 2(A)(3).

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 7

 

 

“Supplemental Payment Obligation” has the meaning indicated in subparagraph 2(A)(3).

“Valuation Procedures” means procedures set forth in Exhibit B, which are to be
followed in the event a determination of the Fair Market Value of the Property is required
by this Agreement.

2 LRC’s Options and Obligations on the Designated Sale Date.

     (A) Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation.
Whether or not an Event of Default has occurred and is continuing, but subject to Paragraph 6
below:

     (1) LRC will have the right (the “Purchase Option”) to purchase or cause an Affiliate
of LRC, as the Applicable Purchaser, to purchase the Property on the Designated Sale Date.
If LRC exercises the Purchase Option, the purchase price for the Property will equal the
Lease Balance, and on the Designated Sale Date LRC must pay any Base Rent or other amounts
then due under the other Operative Documents.

     (2) If LRC does not exercise the Purchase Option, LRC will have the following rights
(collectively, “LRC’s Initial Remarketing Rights”):

     (a) First, LRC will have the right to designate a third party, other
than an Affiliate of LRC, as the Applicable Purchaser and to cause such Applicable
Purchaser to purchase the Property on the Designated Sale Date for a cash price
equal to the Initial Remarketing Price. Such right, however, will be subject to the
conditions (the “Conditions to LRC’s Initial Remarketing Rights”) that (i) LRC
deliver an Initial Remarketing Notice to BNPPLC within the thirty days prior to the
Designated Sale Date, (ii) on the Designated Sale Date the Applicable Purchaser
tenders to BNPPLC a payment equal to the Initial Remarketing Price, and (iii) LRC
itself tenders to BNPPLC the Supplemental Payment, if any, which will be required by
subparagraph 2(A)(3) in the event BNPPLC completes the sale to the Applicable
Purchaser, together with any Base Rent or other amounts then due under the other
Operative Documents. Further, notwithstanding the satisfaction of the Conditions to
LRC’s Initial Remarketing Rights on the Designated Sale Date, if the Break Even
Price exceeds the sum of the following: (1) any cash price actually tendered
directly to BNPPLC by the Applicable Purchaser on the Designated Sale Date, and (2)
any Supplemental Payment actually paid to BNPPLC by LRC on the Designated Sale Date
as described

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 8

 

 

below, then BNPPLC may affirmatively elect to decline any tender of the
purchase price from the Applicable Purchaser and retain the Property rather than
sell it pursuant to this subparagraph 2(A)(2) by making a Decision Not to Sell at a
Loss.

     (b) Second, if LRC elects to cause and does cause an Applicable Purchaser who
is not an Affiliate of LRC to purchase the Property on the Designated Sale Date and
the cash payment actually received by BNPPLC from the Applicable Purchaser as the
purchase price exceeds the Break Even Price, then BNPPLC will pay the excess to LRC
or as otherwise required by Applicable Law.

     (3) If for any reason whatsoever BNPPLC does not receive a cash price (calculated
prior to any netting of expenses of BNPPLC) for the Property on the Designated Sale Date
equal to or in excess of the Break Even Price in connection with a sale made pursuant to
subparagraph 2(A)(1) or subparagraph 2(A)(2)(a), then LRC will have the obligation (the
“Supplemental Payment Obligation”) to pay to BNPPLC on the Designated Sale Date a
supplemental payment (the “Supplemental Payment”) equal to the amount by which the Break
Even Price exceeds any such cash price actually received by BNPPLC on the Designated Sale
Date; provided, however, unless LRC exercises the Purchase Option, if such excess is greater
than the Maximum Remarketing Obligation, the Supplemental Payment will be limited to an
amount equal to the Maximum Remarketing Obligation.

Without limiting the generality of the foregoing, LRC must (unless excused by subparagraph
6(A) below) make the Supplemental Payment even if BNPPLC does not sell the Property to LRC
or an Applicable Purchaser on the Designated Sale Date because of (A) a Decision Not to Sell
at a Loss, or (B) a failure of LRC to exercise, or a decision by LRC not to exercise, the
Purchase Option or LRC’s Initial Remarketing Rights, or (C) a failure of LRC or any
Applicable Purchaser to tender the price required by the forgoing provisions on the
Designated Sale Date following any exercise of or attempt by LRC to exercise the Purchase
Option or LRC’s Initial Remarketing Rights.

LRC acknowledges that it is undertaking the Supplemental Payment Obligation in consideration
of the rights afforded to it by this Agreement, but that such obligation is not contingent
upon any exercise by LRC of such rights or upon any purchase of the Property by LRC or an
Applicable Purchaser. If any Supplemental Payment due according to this subparagraph
2(A)(3) is not actually paid to BNPPLC on the Designated Sale Date, then LRC must pay
interest on the past due amount computed at the Default Rate.

  
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 9

 

 

LRC also acknowledges that payment of a Supplemental Payment will not excuse it from
its obligation to pay any Base Rent or other amounts due under any of the other Operative
Documents.

     (B) Designation of the Purchaser. To give BNPPLC the opportunity before the
Designated Sale Date to prepare the Sale Closing Documents, LRC must, by a notice to BNPPLC
given at least ten days prior to the Designated Sale Date, specify irrevocably, unequivocally and
with particularity any party who will purchase the Property because of LRC’s exercise of its
Purchase Option or of LRC’s Initial Remarketing Rights. If LRC fails to do so, BNPPLC may postpone
the delivery of the Sale Closing Documents until a date after the Designated Sale Date and not more
than ten days after LRC finally does so specify a party, but such postponement will not relieve or
postpone the obligation of LRC to make a Supplemental Payment on the Designated Sale Date as
provided in subparagraph 2(A)(3).

     (C) Delivery of Property Related Documents If BNPPLC Retains the Property. Unless LRC
or its Affiliate or another Applicable Purchaser purchases the Property pursuant to subparagraph
2(A), promptly after the Designated Sale Date LRC must deliver and assign to BNPPLC all plans and
specifications for the Property previously prepared for LRC or otherwise available to LRC
(including those prepared in connection with the construction contemplated by the Construction
Agreement), together with all other files, documents and permits of LRC (including any Existing
Space Leases and subleases then in force) which may be necessary or useful to any future owner’s or
occupant’s use of the Property. Without limiting the foregoing, LRC will transfer or arrange the
transfer to BNPPLC of all utility, building, health and other operating permits required by any
municipality or other governmental authority having jurisdiction over the Property for uses of the
Property permitted by the Lease or for any remaining construction required to complete the
Improvements contemplated by the Construction Agreement if neither LRC nor any Affiliate or other
Applicable Purchaser purchases the Property pursuant to subparagraph 2(A).

     (D) Security for LRC’s Purchase Option. If (contrary to the intent of the
parties as expressed in subparagraph 4(C) of the Lease) it is determined that LRC is not,
under applicable state law as applied to the Operative Documents, the equitable owner of the
Property and the borrower from BNPPLC in a financing arrangement, but rather is a tenant under the
Lease with an option to purchase from BNPPLC as provided in subparagraph 2(A)(1), then the parties
intend that the Purchase Option be secured by a lien against and security interest in the Property.
Accordingly, BNPPLC does hereby grant to LRC a lien against and security interest in the Property,
including all rights, title and interests of BNPPLC from time to time in and to the Land and
Improvements, in order to secure (1) BNPPLC’s obligation to convey the Property to LRC or an
Affiliate designated by it if LRC exercises the Purchase Option and tenders payment of the Lease
Balance and any required Supplemental Payment to

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 10

 

 

BNPPLC on the Designated Sale Date as provided
herein, and (2) LRC’s right to recover any damages from BNPPLC caused by a breach of such
obligation, including any such breach caused by a rejection or termination of this Agreement in any
bankruptcy or insolvency proceeding instituted by or against BNPPLC, as debtor. LRC may enforce
such lien and security interest judicially after any such breach by BNPPLC, but not otherwise.

3 LRC’s Rights, Options and Obligations After the Designated Sale Date.

     (A) LRC’s Obligation to Buy if Certain Conditions are Satisfied. Regardless of any
prior Decision Not to Sell at a Loss or any prior receipt by BNPPLC of any Notice of Sale from LRC,
BNPPLC will have the option (the “Put Option”) to require LRC to purchase the Property upon demand
at any time after the Designated Sale Date for a cash price equal to the Make Whole Amount if:

     (1) BNPPLC has not already conveyed the Property to consummate a sale of the Property
to LRC or an Applicable Purchaser pursuant to other provisions of this Agreement; and

     (2) a 97-1/Default (100%) occurs or is continuing on or after the Designated Sale Date;
and

     (3) BNPPLC notifies LRC of BNPPLC’s exercise of the Put Option within two years
following the Designated Sale Date.

     (B) LRC’s Extended Right to Remarket. If the Property is not sold to LRC or an
Applicable Purchaser on the Designated Sale Date pursuant to this Agreement, LRC will have the
right (“LRC’s Extended Remarketing Right”) during the Extended Remarketing Period to arrange a sale
of the Property to an Applicable Purchaser, other than an Affiliate of LRC, for a price equal to or
in excess of the Must Sell Price (a “Proposed Sale”). LRC’s Extended Remarketing Right will,
however, be subject to all of the following conditions:

     (1) BNPPLC has not exercised the Put Option as provided in subparagraph 3(A) or already
contracted with another Applicable Purchaser to convey the Property in connection with a
Qualified Sale.

     (2) LRC’s Extended Remarketing Right is not terminated pursuant to subparagraph 6(C)
because of LRC’s failure to pay any required Supplemental Payment.

     (3) LRC’s Extended Remarketing Right is not terminated pursuant to subparagraph 6(C)
because of LRC’s failure to pay any required 97-10/Prepayment.

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 11

 

 

     (4) LRC must have provided a notice to BNPPLC (a “Notice of Sale”) setting forth
(i) the date proposed by LRC as the Final Sale Date (the “Proposed Sale Date”), which must
be no sooner than thirty days after BNPPLC’s receipt of the Notice of Sale and no later than
the last Business Day of the Extended Remarketing Period, (ii) the full legal name of the
Applicable Purchaser and such other information as is needed to prepare
the Sale Closing Documents, and (iii) the cash price that will be tendered to BNPPLC
for the Property (the “Committed Price”).

     (5) The Committed Price must be no less than the Must Sell Price, computed as of the
Proposed Sale Date.

     (C) Deemed Sale On the Second Anniversary of the Designated Sale Date. If no date
prior to the second anniversary of the Designated Sale Date qualifies as the Final Sale Date, then
on the second anniversary of the Designated Sale Date BNPPLC will, for purposes of the next
subparagraph, be deemed to have sold the Property (a “Deemed Sale”) to an Applicable Purchaser at a
Qualified Sale for a net cash price equal to its Fair Market Value as determined as of the
Designated Sale Date.

     (D) LRC’s Right to Share in Sales Proceeds Received By BNPPLC From any Qualified Sale.
BNPPLC must apply the cash proceeds received by BNPPLC from any Qualified Sale (regardless of
whether the sale is arranged by LRC as provided in subparagraph 3(B) or by BNPPLC itself), or
deemed to be received in connection with any Deemed Sale, in the following order of priority:

     (1) first, to pay or reimburse to BNPPLC BNPPLC’s Actual Out of Pocket Costs, if any,
incurred in connection with the Qualified Sale;

     (2) second, to pay or reimburse to BNPPLC any local taxes and impositions and costs of
utilities, maintenance, operations, insurance premiums, uninsured losses and business park
fees suffered or incurred by BNPPLC with respect to the ownership, operation or maintenance
of the Property after the Designated Sale Date, together with interest on such amounts
computed at the Default Rate from the date paid or incurred to the date reimbursed from
sales proceeds;

     (3) third, to pay to BNPPLC an amount equal to the difference, if any, computed by
subtracting (i) the aggregate payments, if any, previously paid by LRC to BNPPLC as a
97-10/Prepayment or as a Supplemental Payment, from (ii) the Adjusted Lease Balance;

     (4) fourth, to reimburse LRC for any 97-10/Prepayment or Supplemental

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 12

 

 

Payment
previously made by LRC to BNPPLC and to pay interest accruing thereon to LRC during the
period from the date LRC previously paid such 97-10/Prepayment or Supplemental Payment, as
the case may be, to the date of reimbursement, computed at a floating per annum rate equal
to LIBID; and

     (5) last, if any such cash proceeds exceed all the payments and reimbursements that are
required or may be required as described in the preceding clauses of this subparagraph,
BNPPLC may retain the excess.

If, however, BNPPLC completes any sale and conveyance of the Property after the Extended
Remarketing Period expires or is terminated, BNPPLC will not be required by this subparagraph to
share any proceeds of the sale or conveyance with LRC or any other party claiming through or under
LRC. Furthermore, unless and except to the extent required pursuant to clause (4) of this
subparagraph from cash proceeds received by BNPPLC from any Qualified Sale or deemed to be received
in connection with a Deemed Sale, no interest on any 97-10/Prepayment or Supplemental Payment will
be paid to LRC.

4 Transfers By BNPPLC After the Designated Sale Date.

     (A) BNPPLC’s Right to Sell. At any time after the Designated Sale Date, if the
Property has not already been sold and conveyed by BNPPLC pursuant to Paragraph 2 or Paragraph 3,
BNPPLC will have the right to sell the Property or offer the Property for sale to any unrelated
third party on any terms believed to be appropriate by BNPPLC in its sole good faith business
judgment.

     (B) Survival of LRC’s Rights and the Supplemental Payment Obligation. If the Property
is not sold on the Designated Sale Date, and if BNPPLC completes a sale or other transfer of the
Property after the Designated Sale Date, other than a Qualified Sale, the Supplemental Payment
Obligation will survive in favor of BNPPLC’s successors and assigns with respect to the Property
(unless it has been terminated as provided in subparagraph 6(A) below); and BNPPLC’s successors and
assigns will take the Property subject to LRC’s rights under Paragraph 3, all on the same terms and
conditions as would have applied to BNPPLC itself if BNPPLC had not transferred or sold the
Property. Without limiting the foregoing, any purchaser that acquires the Property from BNPPLC
during the Extended Remarketing Period, other than at a Qualified Sale, will be obligated to
distribute proceeds of a subsequent Qualified Sale of the Property as described in the subparagraph
3(D) in the same manner and to the same extent that BNPPLC itself would have been obligated if not
for the sale by BNPPLC to the purchaser.

     (C) Release and Quitclaim by LRC. If requested by BNPPLC at the time of or
after

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 13

 

 

any Qualified Sale, LRC will execute in favor of the purchaser at the Qualified Sale (or, if
the Qualified Sale is a Deemed Sale, in favor of BNPPLC) a quitclaim and release in recordable form
of all of LRC’s rights, titles and interests in the Property. If, however, LRC has not already
received the share (if any) of the proceeds of the Qualified Sale to which it is entitled by reason
of clause (3) of subparagraph 3(D), LRC may condition the delivery of such quitclaim and release
upon receipt of its share of such proceeds.

     (D) Easements and Other Transfers in the Ordinary Course of Business. No “Permitted
Transfer” described in clause (5) (the last clause) of the definition thereof in the Common
Definitions and Provisions Agreement will constitute a Qualified Sale if it covers less than all or
substantially all of BNPPLC’s then existing interests in the Property. Any such Permitted Transfer
of less than all or substantially all of BNPPLC’s then existing interests in the Property will not
be prohibited by this Agreement during the Extended Remarketing Period or otherwise; provided,
however, any such Permitted Transfer not made in the ordinary course of business, will be made
subject to LRC’s rights under Paragraph 3. Thus, for example, if the Property is not sold by BNPPLC
to an Applicable Purchaser on the Designated Sale Date, then at any time after the Designated Sale
Date BNPPLC may in the ordinary course of business convey a utility easement or a lease of space in
the Improvements free from LRC’s rights under Paragraph 3, although following the conveyance of the
lesser estate, LRC’s rights under Paragraph 3 will continue during the Extended Remarketing Period
as to BNPPLC’s remaining interest in the Land and the Improvements.

5 Terms of Conveyance Upon Purchase.

     (A) Tender of Sale Closing Documents. As necessary to consummate any sale of the
Property to LRC or an Applicable Purchaser pursuant to this Agreement, BNPPLC must, subject to any
postponement permitted by subparagraph 2(B), promptly after the tender of the purchase price and
any other payments to BNPPLC required pursuant to Paragraph 2 or Paragraph 3, as applicable, convey
the Property to LRC or the Applicable Purchaser, as the case may be, by BNPPLC’s execution,
acknowledgment (where appropriate) and delivery of the Sale Closing Documents. Such conveyance by
BNPPLC will be subject to the Permitted Encumbrances and any other encumbrances that do not
constitute Liens Removable by BNPPLC, and such conveyance will not include the rights of BNPPLC or
other Interested Parties under the indemnities provided in the Operative Documents. The costs,
both foreseen and unforeseen, of any purchase by LRC or an Applicable Purchaser will be the
responsibility of the purchaser to the extent (if any) not included in any Break Even Price or Make
Whole Amount actually paid to BNPPLC. If for any reason BNPPLC fails to tender the Sale Closing
Documents as required by this subparagraph 5(A), BNPPLC will have the right and obligation to cure
such failure at any time before thirty days after receipt of a demand for such cure from LRC.

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 14

 

 

     (B) Delivery of Escrowed Proceeds. BNPPLC may deliver any Escrowed Proceeds
constituting Property directly to LRC or to any Applicable Purchaser purchasing the Property
pursuant to this Agreement notwithstanding any prior actual or attempted conveyance or assignment
by LRC, voluntary or otherwise, of any right to receive the same; BNPPLC will not be responsible
for the proper distribution or application by LRC or any Applicable Purchaser of any such Escrowed
Proceeds; and any such payment of Escrowed Proceeds to LRC or an Applicable
Purchaser will discharge any obligation of BNPPLC to deliver the same to all Persons claiming
an interest therein.

6 Survival and Termination of the Rights and Obligations of LRC and BNPPLC.

     (A) Election by LRC to Terminate the Supplemental Payment Obligation Prior to the
Completion Date. By delivery of a notice to BNPPLC in the form attached as Exhibit H,
LRC may terminate its Supplemental Payment Obligation, but only prior to the Completion Date and
only if at the time of such exercise (1) LRC has given (and not rescinded) a Notice of LRC’s Intent
to Terminate as provided in the Construction Agreement, or (2) BNPPLC has given any FOCB Notice as
provided in the Construction Agreement. (If for any reason LRC does not provide to BNPPLC a notice
terminating the Supplemental Payment Obligation as described in the preceding sentence prior to the
Completion Date, then without any notice or other action by the parties to this Agreement, LRC will
cease to have any right to terminate the Supplemental Payment Obligation.) If LRC does send a
notice to BNPPLC in the form attached as Exhibit H, such notice will (as provided therein)
constitute an irrevocable and absolute waiver by LRC of LRC’s rights to purchase the Property or to
cause any of its Affiliates to purchase the Property pursuant to this Agreement. However, no such
notice will terminate BNPPLC’s right to exercise the Put Option, which BNPPLC may exercise if LRC
fails to make a 97-10/Prepayment required by the Construction Agreement.

     (B) Status of this Agreement Generally. Except as expressly provided in the
preceding subparagraph or other provisions of this Agreement, this Agreement will not terminate;
nor will LRC have any right to terminate this Agreement; nor will LRC be entitled to any reduction
of the Break Even Price, the Make Whole Amount or any payment required under this Agreement; nor
will any of the obligations of LRC to BNPPLC under Paragraph 2 or Paragraph 3 be excused by reason
of (i) any damage to or the destruction of all or any part of the Property from whatever cause,
(ii) the taking of the Property or any portion thereof by eminent domain or otherwise for any
reason, (iii) the prohibition, limitation or restriction of LRC’s use or development of all or any
portion of the Property or any interference with such use by governmental action or otherwise, (iv)
any eviction of LRC or of anyone claiming through or under LRC, (v) any default or breach on the
part of BNPPLC under this Agreement or any other Operative Document or any other agreement to which
BNPPLC and LRC are parties, (vi) the

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 15

 

 

inadequacy in any way whatsoever of the design, construction,
assembly or installation of any improvements, fixtures or tangible personal property included in
the Property (it being understood that BNPPLC has not made, does not make and will not make any
representation express or implied as to the adequacy thereof), (vii) any latent or other defect in
the Property or any change in the condition thereof or the existence with respect to the Property
of any violations of Applicable Laws, or (viii) LRC’s prior acquisition or ownership of any
interest in the Property, or (ix) any other cause, whether similar
or dissimilar to the foregoing, any existing or future law to the contrary notwithstanding.
It is the intention of the parties hereto that the obligations of LRC under this Agreement
(including the obligation to make any Supplemental Payment as provided in Paragraph 2) be separate
from and independent of BNPPLC’s obligations under this Agreement or any other agreement between
BNPPLC and LRC.

     (C) Automatic Termination of LRC’s Rights. If LRC fails to pay the full amount of any
97-10/Prepayment required by the Construction Agreement or any Supplemental Payment required by
subparagraph 2(A)(3) on the date it is due, then the Purchase Option, LRC’s Initial Remarketing
Rights, LRC’s Extended Remarketing Right and all other rights of LRC under this Agreement, will
terminate automatically. If, however, prior to the Designated Sale Date LRC effectively terminates
the Supplemental Payment Obligation pursuant to subparagraph 6(A) by the delivery of a notice to
BNPPLC in the form attached as Exhibit H, so that LRC is excused from the obligation to
make any Supplemental Payment pursuant to subparagraph 2(A)(3), then LRC’s Extended Remarketing
Right will not terminate pursuant to this subparagraph 6(C) because of LRC’s failure to pay a
Supplemental Payment, but rather will survive the delivery of such notice. In any event, no
termination of LRC’s rights as described in this subparagraph will limit BNPPLC’s rights or
remedies, including its right to sue LRC for any 97-10/Prepayment or other amounts due from LRC
pursuant to any of the other Operative Documents, or BNPPLC’s right to exercise the Put Option.

     (D) Payment Only to BNPPLC. Except as provided in this subparagraph, all amounts
payable under this Agreement by LRC and, if applicable, by an Applicable Purchaser must be paid
directly to BNPPLC. If paid to other parties, such payments will not be effective for purposes of
this Agreement.

     (E) Preferences and Voidable Transfers. If any payment to BNPPLC by an
Applicable Purchaser is held to constitute a preference or a voidable transfer under Applicable
Laws, or must for any other reason be refunded by BNPPLC to the Applicable Purchaser or to another
Person, and if such payment to BNPPLC reduced or had the effect of reducing a payment required of
LRC by this Agreement (e.g., the Supplemental Payment) or increased or had the effect of increasing
any sale proceeds paid over to LRC pursuant to subparagraph 2(A)(2)(b) or pursuant to subparagraph
3(D), then LRC must pay to BNPPLC upon demand an amount equal to the reduction of the payment
required of LRC or to the

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 16

 

 

increase of the excess sale proceeds paid to LRC, as applicable, and this
Agreement will continue to be effective or will be reinstated as necessary to permit BNPPLC to
enforce its right to collect such amount from LRC.

     (F) Remedies Under the Other Operative Documents. No repossession of or re-entering
upon the Property or exercise of any other remedies available to BNPPLC under the other Operative
Documents will terminate LRC’s rights or obligations under this Agreement, all of
which will survive BNPPLC’s exercise of remedies under the other Operative Documents. LRC
acknowledges that the consideration for this Agreement is separate from and independent of the
consideration for the Construction Agreement, the Lease, the Closing Certificate and other
agreements executed by the parties, and LRC’s obligations under this Agreement will not be affected
or impaired by any event or circumstance that would excuse LRC from performance of its obligations
under such other Operative Documents.

7 Certain Remedies Cumulative. No right or remedy herein conferred upon or reserved to
BNPPLC is intended to be exclusive of any other right or remedy BNPPLC has with respect to the
Property, and each and every right and remedy of BNPPLC will be cumulative and in addition to any
other right or remedy given to it under this Agreement or now or hereafter existing in its favor at
law or in equity. In addition to other remedies available under this Agreement, either party may
obtain a decree compelling specific performance of any of the other party’s agreements hereunder.

8 Attorneys’ Fees and Legal Expenses. If either party commences any legal action or other
proceeding because of any breach of this Agreement by the other party, then the party prevailing in
such action or proceeding shall be entitled to recover all Attorneys’ Fees incurred by it in
connection therewith from the other party, whether or not such controversy, claim or dispute is
prosecuted to a final judgment. Any Attorneys’ Fees incurred by the party prevailing in enforcing
a judgment in its favor under this Agreement shall be recoverable separately from such judgment,
and the obligation for such Attorneys’ Fees is intended to be severable from other provisions of
this Agreement and not to be merged into any such judgment.

9 Recording Memorandum. Contemporaneously with the execution of this Agreement, the
parties will execute and record a memorandum of this Agreement for purposes of effecting
constructive notice to all Persons of LRC’s rights hereunder, including the lien granted to it in
subparagraph ? above.

 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 17

 

 

10 Successors and Assigns. The terms, provisions, covenants and conditions hereof
will be binding upon LRC and BNPPLC and their respective permitted successors and assigns and will
inure to the benefit of LRC and BNPPLC and all permitted transferees, mortgagees, successors and
assignees of LRC and BNPPLC with respect to the Property; except that (A) the rights of BNPPLC
hereunder will not pass to LRC or any Applicable Purchaser or any subsequent owner claiming through
LRC or an Applicable Purchaser, (B) BNPPLC will not assign this Agreement or any rights hereunder
except pursuant to a Permitted Transfer, and (C) LRC will not assign this Agreement or any rights
hereunder without the prior written consent of BNPPLC.

[The signature pages follow.]

 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 18

 

 

     IN WITNESS WHEREOF, this Agreement Regarding Purchase and Remarketing Options is executed to
be effective as of December 18, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware corporation

 	 
	 	By:  	/s/ Barry Mendelsohn 	 
	 	 	Barry Mendelsohn, Director 	 
	 	 	 	 

 
 

Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Signature Page

 

 

	 	 	 	 	 

[Continuation of signature pages for Agreement Regarding Purchase and Remarketing Options dated as
of December 18, 2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a 
Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 

 
 

Agreement Regarding Purchase and Remarketing

Options (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 Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 2

 

 

Exhibit B

Valuation Procedures

     This Exhibit explains the procedures to be used to determine Fair Market Value of the Property
if such a determination is required by this Agreement. In such event, either party may invoke the
procedures set out herein prior to the date the determination will be needed so as to minimize any
postponement of any payment, the amount of which depends upon Fair Market Value. In the event such
a payment becomes due before the required determination of Fair Market Value is complete, such
payment will be postponed until the determination is complete. But in that event, when the
required determination is complete, the payment will be made together with interest thereon,
computed at a rate equal to the Prime Rate, accruing over the period the payment was postponed.

     If any determination of Fair Market Value is required, LRC and BNPPLC will attempt in good
faith to reach a written agreement upon the Fair Market Value without unnecessary delay, and either
party may propose such an agreement to the other. If, however, for any reason whatsoever, they do
not execute such an agreement within seven days after the first such proposed agreement is offered
by one party to the other, then the determination will be made by independent appraisers in
accordance with the following procedures:

1. Definitions and Assumptions. For purposes of the determination, Fair Market Value will
be defined as follows, and all appraisers or others involved in the determination will be
instructed to use the following definition:

     “Fair Market Value” means the most probable net cash price, as of a specified
date, for which the Property should sell after reasonable exposure in a competitive
market under all conditions requisite to a fair sale, with the buyer and seller each
acting prudently, knowledgeably, and for self-interest, and assuming that neither is
under undue duress.

In addition, the appraisers or others making the determination will be instructed to assume that
ordinary and customary brokerage fees, title insurance costs and other sales expenses will be
incurred and deducted in the calculation of such net cash price. Such appraisers or others making
the determination will also be instructed to assume that the value of the Property (or applicable
portion thereof) is neither enhanced nor reduced by any lease to another tenant that BNPPLC may
have executed subsequent to the termination or expiration of the Lease (a “Replacement Lease”).
In other words, rather than determine value in light of actual rents generated or to be generated
by any such Replacement Lease, the Property (or applicable portion thereof) will be valued in light
of the most probable rent that it should bring in a competitive and open market (in this section, a
“Fair Market Rental”), taking into account:

     (i) the actual physical condition of the Property 1 ;
and

 

			
	1	 	If, however, the use of the Property by BNPPLC or any
tenant under any Replacement Lease after LRC vacated the Property has resulted
in excess wear and tear, such excess wear and tear will be assumed not to have
occurred for purposes of determining Fair Market Value.

 

 

     (ii) that a reasonable period of time may be required to market the
Property (or applicable portion thereof) for lease and make it ready for use
or occupancy before it is leased at a Fair Market Rental.

2. Initial Selection of Appraisers; Appraiser’s Agreement as to Value. After having failed
to reach a written agreement upon Fair Market Value as described in the second paragraph of this
Exhibit, either party may deliver a notice to the other demanding the appointment of appraisers
(the “Initial Appraisal Notice”) pursuant to this Exhibit. In such event:

     (a) Within fifteen days after the Initial Appraisal Notice is delivered, LRC and BNPPLC must
each appoint an independent property appraiser who has experience appraising commercial properties
in California and notify the other party of such appointment, including the name of the appointed
appraiser (a “Notice of Appointment”).

     (b) If the appraiser appointed by LRC and the appraiser appointed by BNPPLC agree in writing
upon the Fair Market Value (an “Appraiser’s Agreement As To Value”), such agreement will be binding
upon LRC and BNPPLC. Both LRC and BNPPLC will instruct their respective appraisers to attempt in
good faith to quickly reach an Appraiser’s Agreement As To Value. Neither appraiser will be
required to produce a formal appraisal prior to reaching an Appraiser’s Agreement As To Value.

3. Selection of a Third Appraiser. If the two appraisers fail to deliver an Appraiser’s
Agreement As to Value within thirty days following the later of the dates upon which LRC or BNPPLC
delivers its Notice of Appointment, then either party (LRC or BNPPLC) may deliver another notice to
the other (a “Second Appraisal Notice”), demanding that the two appraisers appoint a third
independent property appraiser to help with the determination of Fair Market Value. Immediately
after the Second Appraisal Notice is delivered, each of the first two appraisers must act promptly,
reasonably and in good faith to try to reach agreement upon the third appraiser. If, however, the
two appraisers fail to reach agreement upon a third appraiser within ten days after the Second
Appraisal Notice is delivered:

     (a) LRC and BNPPLC will each cause its respective appraiser to deliver, no later than
fifteen days after the delivery of the Second Appraisal Notice, an unqualified written promise
addressed to both of LRC and BNPPLC: (i) to act promptly, reasonably and in good faith in trying to
reach agree upon the third appraiser, and (ii) to propose and consider proposals of persons as the
third appraiser on the basis of objectivity and competence, not on the basis of such persons’
relationships with the other appraisers or with LRC or BNPPLC, and not on the basis of preferences
expressed by LRC or BNPPLC.

     (b) If, despite the delivery of the promises described in the preceding subsection, the two

 

Exhibit B to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 2

 

 

appraisers fail to reach agreement upon a third appraiser within thirty days after the Second
Appraisal Notice is delivered, then each of the first two appraisers must immediately submit its
top choice for the third appraiser to the then highest ranking officer of the California Bar
Association who will agree to help and who has no attorney/client or other significant relationship
to either LRC or BNPPLC. Such officer will have complete discretion to select the most objective
and competent third appraiser from between the choice of each of the first two appraisers, and will
do so within ten days after such choices are submitted to him.

4. Resolution of Issues by the Third Appraiser. If a third appraiser is selected under the
procedure set out above:

     (a) No later than thirty days after a third appraiser is selected, each of the first two
appraisers must submit (and LRC and BNPPLC will each cause its appointed appraiser to submit) his
best estimate of Fair Market Value, together with a written report supporting such estimate. (Such
report need not be in the form of a formal appraisal, and may contain any qualifications the
submitting appraiser deems necessary under the circumstances. Any such qualifications, however,
may be considered by the third appraiser for purposes of the selection required by the next
subsection.)

     (b) After receipt of the two estimates required by the preceding subsection, and no later than
forty-five days after the third appraiser is selected, he must (i) choose one or the other of the
two estimates of Fair Market Value submitted by the first two appraisers as being the more accurate
in his opinion, and (ii) notify LRC and BNPPLC of which estimate he chose. The third appraiser
will not be asked or allowed to specify an amount as Fair Market Value that is different than an
estimate provided by one of the other two appraisers (either by averaging the two estimates or
otherwise). The estimate of Fair Market Value thus chosen by the third appraiser as being the more
accurate will be binding upon LRC and BNPPLC.

5. Criteria For Selecting Appraisers; Cost of Appraisals. All appraisers selected for the
appraisal process set out in this Exhibit will be disinterested, reputable, qualified appraisers
with the designation of MAI or equivalent and with at least five years experience in appraising
commercial properties comparable to the Property. LRC and BNPPLC will each bear the expense of the
appraiser appointed by it, and the expense of the third appraiser and of any officer of the
California Bar Association who participates in the appraisal process described above will be shared
equally by LRC and BNPPLC.

6. Time is of the Essence; Defaults.

     (a) All time periods and deadlines specified in this Exhibit are of the essence.

     (b) Each party must cause the appraiser appointed by it (as set forth in Section 2(a))

 
 

Exhibit B to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 3

 

 

to
comply in a timely manner with the requirements of this Exhibit applicable to such appraiser.
Accordingly, if an appraiser appointed by one of the parties as provided in Section 2(a) fails to
comply in a timely manner with any provision of this Exhibit, such failure will be considered a
default by the party who appointed such appraiser.

     (c) Any breach of or default under this Exhibit by either party will be construed as a breach
of the Agreement Regarding Purchase and Remarketing Options to which this Exhibit is attached.

 

Exhibit B to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 4

 

 

Exhibit C

Form of Deed

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

	 	 	 
	NAME:

	 	[LRC or the Applicable Purchaser]
	ADDRESS:

	 	                                        
	ATTN:

	 	                                        
	CITY:

	 	                                        
	STATE:

	 	                                        
	Zip:

	 	                                        

DEED WITH LIMITED TITLE WARRANTIES

     BNP Paribas Leasing Corporation (“Grantor”), a Delaware corporation, for and in consideration
of the sum of Ten Dollars ($10.00) and other valuable consideration paid to Grantor by [LRC or the
Applicable Purchaser] (hereinafter called “Grantee”), the receipt and sufficiency of which are
hereby acknowledged, does hereby GRANT, SELL, CONVEY, ASSIGN and DELIVER to Grantee (1) the land
described in Annex A attached hereto and hereby made a part hereof, and (2) all other rights,
titles and interests of Grantor in and to (a) such land, (b) the buildings and other improvements
situated on such land, (c) any fixtures and other property affixed thereto and (d) the adjacent
streets, alleys and rights-of-way (all of the property interests conveyed hereby being hereinafter
collectively referred to as the “Property”); however, this conveyance is made by Grantor and
accepted by Grantee subject to all general or special assessments due and payable after the date
hereof, all encroachments, variations in area or in measurements, boundary line disputes, roadways
and other matters not of record which would be disclosed by a current survey and inspection of the
Property, and the encumbrances listed in Annex B attached hereto and made a part hereof
(collectively, the “Permitted Encumbrances”).

     TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances
thereto belonging unto Grantee, its successors and assigns, forever, and Grantor does hereby bind
Grantor and Grantor’s successors and assigns to warrant and forever defend all and singular the
said premises unto Grantee, its successors and assigns against every person whomsoever lawfully
claiming, or to claim the same, or any part thereof by, through or under Grantor, but not
otherwise; subject, however, to the Permitted Encumbrances. Except as expressly set forth in the
preceding sentence, Grantor makes no warranty of title, express or implied.

 

 

     Grantee hereby assumes the obligations (including any personal obligations) of Grantor, if
any, created by or under, and agrees to be bound by the terms and conditions of, the Permitted
Encumbrances to the extent that the same concern or apply to the land or improvements conveyed by
this Deed.

[Signature pages follow.]

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 2

 

 

IN WITNESS WHEREOF, Grantor and Grantee have signed this Deed to be effective as of                     ,
20___.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a
Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 
	STATE OF                                            

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                                         

	 	 	)	 	 	 

On                     , 20___, before me                                         , a Notary Public in and for the
County and State aforesaid, personally appeared                                                             , who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

                                                            

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 3

 

 

[Continuation of signature pages to Deed dated to be effective as of                     , 20_____.]

[LRC or the Applicable Purchaser]

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 	 	 
	STATE OF                                            

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                                         

	 	 	)	 	 	 

     On                     , 20___, before me                                         , a Nota
ry Public in and for the
County and State aforesaid, personally appeared                                                             , who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

                                                            

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 4

 

 

Annex A

LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE “LAND” COVERED BY THE LEASE BECAUSE OF ADJUSTMENTS
FOR WHICH LRC REQUESTS BNPPLC’S CONSENT OR APPROVAL AS PROVIDED IN THE CLOSING CERTIFICATE, SO TOO
WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY SUCH CHANGES WILL BE INCORPORATED INTO THE
DESCRIPTION BELOW AND THIS “DRAFTING NOTE” WILL BE DELETED BEFORE THE ASSIGNMENT TO WHICH THIS
DESCRIPTION IS ATTACHED IS ACTUALLY EXECUTED AND DELIVERED.]

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;

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 5

 

 

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;

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 6

 

 

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 C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 7

 

 

Annex B

Permitted Encumbrances

[DRAFTING NOTE: BEFORE THIS ASSIGNMENT IS ACTUALLY EXECUTED AND DELIVERED BY BNPPLC: ALL
PERMITTED ENCUMBRANCES LISTED IN EXHIBIT B TO THE CLOSING CERTIFICATE WILL BE SET OUT BELOW, IN
ADDITION TO THE ITEMS ALREADY LISTED. ALSO, IF ANY ENCUMBRANCES (OTHER THAN “LIENS REMOVABLE BY
BNPPLC”) ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW OR IN EXHIBIT B TO THE CLOSING
CERTIFICATE, SUCH ADDITIONAL ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW. AFTER SUCH ADJUSTMENTS
ARE MADE, THIS “DRAFTING NOTE” WILL BE DELETED. THE ADDITIONAL ENCUMBRANCES TO BE LISTED BELOW
WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPPLC AS “PERMITTED ENCUMBRANCES” FROM TIME TO TIME
OR BECAUSE OF XYZ’s REQUEST FOR BNPPLC’S CONSENT OR APPROVAL TO AN ADJUSTMENT.]

     This conveyance is subject to all encumbrances not constituting a “Lien Removable by BNPPLC”
(as defined in the Common Definitions and Provisions Agreement incorporated by reference into the
Lease Agreement referenced in the last item of the list below), including the following matters to
the extent the same are still valid and in force:

     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

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 8

 

 

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

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 9

 

 

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

	 	 	 
	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

     13. [ADD EXCEPTION FOR THE LEASE, ALTHOUGH WITH THE UNDERSTANDING THAT IT MAY BE
TERMINATED BY AGREEMENT WITH THE GRANTEE IMMEDIATELY AFTER DELIVERY OF THIS DEED.]

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 10

 

 

Exhibit D

BILL OF SALE AND ASSIGNMENT

     Reference is made to: (1) that certain Agreement Regarding Purchase and Remarketing Options
(Livermore/ Parcel 7) dated as of December 18, 2007, (the “Purchase Agreement”) between BNP Paribas
Leasing Corporation (“Assignor”), a Delaware corporation, and Lam Research Corporation, a Delaware
corporation, and (2) that certain Lease Agreement (Livermore/ Parcel 7) dated as of December 18,
2007 (the “Lease”) between Assignor, as landlord, and Lam Research Corporation, a Delaware
corporation, as tenant. (Capitalized terms used and not otherwise defined in this document are
intended to have the meanings assigned to them in the Common Definitions and Provisions Agreement
(Livermore/ Parcel 7) incorporated by reference into both the Purchase Agreement and Lease.)

     As contemplated by the Purchase Agreement, Assignor hereby sells, transfers and assigns unto
[LRC or the Applicable Purchaser], a                      (“Assignee”), all of Assignor’s right, title and
interest in and to the following property, if any, to the extent such property is assignable:

	 	(a)	 	the Lease;
	 
	 	(b)	 	any pending or future award made because of any condemnation affecting the
Property or because of any conveyance to be made in lieu thereof, and any unpaid award
for damage to the Property and any unpaid proceeds of insurance or claim or cause of
action for damage, loss or injury to the Property; and
	 
	 	(c)	 	all other personal or intangible property included within the definition of
“Property” as set forth in the Purchase Agreement, including but not limited to any of
the following transferred to Assignor by the tenant pursuant to Paragraph 6 of
the Lease or otherwise acquired by Assignor, at the time of the execution and delivery
of the Lease and Purchase Agreement or thereafter, by reason of Assignor’s status as
the owner of any interest in the Property: (1) any goods, equipment, furnishings,
furniture, chattels and tangible personal property of whatever nature that are located
on the Property and all renewals or replacements of or substitutions for any of the
foregoing; (ii) the rights of Assignor, existing at the time of the execution of the
Lease and Purchase Agreement or thereafter arising, under Permitted Encumbrances; and
(iii) any general intangibles, other permits, licenses, franchises, certificates, and
other rights and privileges related to the Property that Assignee would have acquired
if Assignee had itself acquired the interest of Assignor in and to the Property instead
of Assignor.

Provided, however, excluded from this conveyance and reserved to Assignor are any rights or
privileges of Assignor under the following: (1) the indemnities set forth in the Construction
Agreement and the Lease, whether such rights are presently known or unknown, including rights

 

 

of the Assignor to be indemnified against environmental claims of third parties as provided in the
Construction Agreement and the Lease which may not presently be known, all of which indemnities
will survive the deliver of this Bill of Sale and Assignment and other documents required by the
Purchase Agreement, (2) provisions in the Lease that establish the right of Assignor to recover any
accrued unpaid rent under the Lease which may be outstanding as of the date hereof, (3) agreements
between Assignor and any Participant or any of Assignor’s Affiliates, or (4) any other instrument
being delivered to Assignor contemporaneously herewith pursuant to the Purchase
Agreement.[Drafting Note: The following sentence will be included unless the Property is
being sold to LRC or an Affiliate pursuant to subparagraph 2(A)(1) or 3(A) of the Purchase
Agreement: Also excluded from this conveyance and reserved to Assignor are (i) the right to
retain Escrowed Proceeds, if any, that consist of condemnation or insurance proceeds resulting from
a Pre-lease Force Majeure Event, and (ii) any right to receive future payments of any such
condemnation or insurance proceeds.].

     Assignor does for itself and its successors covenant and agree to warrant and defend the title
to the property assigned herein against the just and lawful claims and demands of any person
claiming under or through a Lien Removable by Assignor, but not otherwise.

     Assignee hereby assumes and agrees to keep, perform and fulfill Assignor’s obligations, if
any, relating to any permits or contracts (including the Lease), under which Assignor has rights
being assigned herein.

[Signature pages follow.]

 

Exhibit D to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 2

 

 

IN WITNESS WHEREOF, Assignor and Assignee have signed this Bill of Sale and Assignment to be
effective as of                     , 20___.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a
Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 
	STATE OF                                            

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                                         

	 	 	)	 	 	 

On                     , 20___, before me                                         , a Notary Public in and for the
County and State aforesaid, personally appeared                                                             , who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

                                                            

 

Exhibit D to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 3

 

 

[Continuation of signature pages to Bill of Sale and Assignment dated to be effective as of
                    , 20___.]

	 	 	 	 	 
	[LRC or the Applicable Purchaser]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 	 	 
	STATE OF                                            

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                                         

	 	 	)	 	 	 

     On                     , 20___, before me                                         , a Nota
ry Public in and for the
County and State aforesaid, personally appeared                                                             , who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

                                                            

 

Exhibit D to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 4

 

 

Exhibit E

ACKNOWLEDGMENT OF DISCLAIMER

OF REPRESENTATIONS AND WARRANTIES

     THIS ACKNOWLEDGMENT OF DISCLAIMER OF REPRESENTATIONS AND WARRANTIES (this “Certificate”) is
made as of                     , ___, by [LRC or the Applicable Purchaser], a                     
(“Assignee”).

     Contemporaneously with the execution of this Certificate, BNP Paribas Leasing Corporation
(“Assignor”), a Delaware corporation, is executing and delivering to Assignee (1) a Deed With
Limited Title Warranties, and (2) a Bill of Sale and Assignment (the foregoing documents and any
other documents to be executed in connection therewith are herein called the “Conveyancing
Documents” and any of the properties, rights or other matters assigned, transferred or conveyed
pursuant thereto are herein collectively called the “Subject Property”).

     Notwithstanding any provision contained in the Conveyancing Documents to the contrary,
Assignee acknowledges that Assignor makes no representations or warranties of any nature or kind,
whether statutory, express or implied, with respect to environmental matters or the physical
condition of the Subject Property, and Assignee, by acceptance of the Conveyancing Documents,
accepts the Subject Property “AS IS,” “WHERE IS,” “WITH
ALL FAULTS” and without any such representation or warranty by Grantor as to
environmental matters, the physical condition of the Subject Property, compliance with subdivision
or platting requirements or construction of any improvements. Without limiting the generality of
the foregoing, Assignee hereby further acknowledges and agrees that warranties of merchantability
and fitness for a particular purpose are excluded from the transaction contemplated by the
Conveyancing Documents, as are any warranties arising from a course of dealing or usage of trade.
Assignee hereby assumes all risk and liability (and agrees that Assignor will not be liable for any
special, direct, indirect, consequential, or other damages) resulting or arising from or relating
to the ownership, use, condition, location, maintenance, repair, or operation of the Subject
Property, except for damages proximately caused by (and attributed by any applicable principles of
comparative fault to) the Established Misconduct of Assignor. As used in the preceding sentence,
"Established Misconduct” is intended to have, and be limited to, the meaning given to it in the
Common Definitions and Provisions Agreement (Livermore/ Parcel 7) incorporated by reference into
the Agreement Regarding Purchase and Remarketing Options dated as of December 18, 2007 between
Assignor and Lam Research Corporation, pursuant to which Agreement Assignor is delivering the
Conveyancing Documents.

     The provisions of this Certificate will be binding on Assignee, its successors and assigns and
any other party claiming through Assignee. Assignee hereby acknowledges that Assignor is entitled
to rely and is relying on this Certificate.

[Signature page follows.]

 

 

IN WITNESS WHEREOF, Assignor and Assignee have signed this Acknowledgment of Disclaimer to be
effective as of                     , 20___.

	 	 	 	 	 
	[LRC or the Applicable Purchaser]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

	 	 	 	 	 	 	 
	STATE OF                                            

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS
	COUNTY OF                                         

	 	 	)	 	 	 

     On                     , 20___, before me                                         , a Nota
ry Public in and for the
County and State aforesaid, personally appeared                                                             , who is personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is
subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her
authorized capacity and that by his/her signature on such instrument the person, or the entity upon
behalf of which the person acted, executed the instrument.

WITNESS, my hand and official seal.

                                                            

 

Exhibit E to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 2

 

 

Exhibit F

SECRETARY’S CERTIFICATE

     The undersigned, [Secretary or Assistant Secretary] of BNP Paribas Leasing Corporation
(“BNPPLC”), a Delaware corporation, hereby certifies as follows:

     1. That he is the duly, elected, qualified and acting Secretary [or Assistant Secretary] of
the Corporation and has custody of the corporate records, minutes and corporate seal.

     2. That the following named persons have been properly designated, elected and assigned to the
office in BNPPLC as indicated below; that such persons hold such office at this time and that the
specimen signature appearing beside the name of such officer is his or her true and correct
signature.

[The following blanks must be completed with the names and signatures of the officers who will be
signing the Sale Closing Documents on behalf of BNPPLC.]

	 	 	 	 	 
	Name

	 	Title
	 	Signature
	 

	 	 
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 

     3. That the resolutions attached hereto and made a part hereof were duly adopted by the Board
of Directors of BNPPLC in accordance with BNPPLC’s Articles of Incorporation and Bylaws. Such
resolutions have not been amended, modified or rescinded and remain in full force and effect.

     IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of the Corporation on
this ______, day of                     , 20___.

[signature and title]

 

 

CORPORATE RESOLUTIONS OF

BNP PARIBAS LEASING CORPORATION

[DRAFTING NOTE: INSERT HERE COPIES OF RESOLUTIONS ADOPTED BY THE BOARD OF DIRECTORS OF
BNPPLC SUFFICIENT TO AUTHORIZE THE DELIVERY OF SALE CLOSING DOCUMENTS. SUCH RESOLUTIONS MAY BE AS
FOLLOWS:

     WHEREAS, pursuant to that certain Agreement Regarding Purchase and Remarketing Options
(Livermore/ Parcel 7) (herein called the “Purchase Agreement”) dated as of December 18, 2007, by
and between BNP Paribas Leasing Corporation (“BNPPLC”) and Lam Research Corporation (“LRC”) ,
BNPPLC agreed to sell and Purchaser agreed to purchase or cause the Applicable Purchaser (as
defined in the Purchase Agreement) to purchase the Corporation’s interest in the property (the
“Property”) located in ___, California, more particularly described therein.

     NOW THEREFORE, BE IT RESOLVED, that the Board of Directors of BNPPLC, in its best business
judgment, deems it in the best interest of BNPPLC and its shareholders that BNPPLC convey the
Property to LRC or the Applicable Purchaser pursuant to and in accordance with the terms of the
Purchase Agreement.

     RESOLVED FURTHER, that the proper officers of BNPPLC, and each of them, are hereby authorized
and directed in the name and on behalf of BNPPLC to cause BNPPLC to fulfill its obligations under
the Purchase Agreement.

     RESOLVED FURTHER, that the proper officers of BNPPLC, and each of them, are hereby authorized
and directed to take or cause to be taken any and all actions and to prepare or cause to be
prepared and to execute and deliver any and all deeds, assignments and other documents, instruments
and agreements that are necessary, advisable or appropriate, in such officer’s sole and absolute
discretion, to carry out the intent and to accomplish the purposes of the foregoing resolutions. ]

 

Exhibit F to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 2

 

 

Exhibit G

CERTIFICATION OF NON-FOREIGN STATUS

     Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person. Sections 18805, 18815 and 26131
of the California Revenue and Taxation Code, as amended, provide that a transferee of a California
real property interest must withhold income tax if the transferor is a nonresident seller.

     To inform [LRC or the Applicable Purchaser] (“Transferee”) that withholding of tax is not
required upon the disposition of a California real property interest by BNP PARIBAS LEASING
CORPORATION (“Transferor”), a Delaware corporation, the undersigned hereby certifies the following
on behalf of Transferor:

1. Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate
(as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

2. Transferor is not a disregarded entity (as defined in Section 1.1445-2(b)(2)(iii) of the Income
Tax Regulations);

3. Transferor’s U.S. employer identification number is 75-2252918; and

4. Transferor’s office address is:

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Transferor understands that this Certification of Non-Foreign Status may be disclosed to the
Internal Revenue Service by Transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.

Under penalties of perjury I declare that I have examined this Certification of Non-Foreign Status
and to the best of my knowledge and belief it is true, correct and complete, and I further
declare that I have authority to sign this document on behalf of the Transferor.

     Dated:                     , 20___.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Lloyd G. Cox, Managing Director of Transferor. 	 
	 	 	 	 

 

 

	 	 	 	 	 

Exhibit H

Notice of Election to Terminate the Supplemental Payment Obligation

and Irrevocable Release and Waiver of the Right to Purchase

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

     Re: Agreement Regarding Purchase and Remarketing Options (Livermore/ Parcel 7) dated as of
December 18, 2007 (the “Purchase Agreement”), between Lam Research Corporation (“LRC”), a Delaware
corporation, and BNP Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Purchase Agreement referenced above. This letter will constitute a notice given pursuant to
subparagraph 6(A) of the Purchase Agreement. As provided in that subparagraph, LRC irrevocably
elects to terminate the Supplemental Payment Obligation effective immediately, subject only to the
conditions described below. In addition, LRC irrevocably waives and releases its rights to
purchase or cause an Affiliate of LRC to purchase the Property granted to it by the Purchase
Agreement. Because of such waiver and release, the Purchase Option is terminated and so are all
rights of LRC under subparagraphs 2(A) of the Purchase Agreement.

     LRC acknowledges that this notice will not be effective to terminate the Supplemental Payment
Obligation if it is not received by BNPPLC prior to the Completion Date.

     LRC also acknowledges that even if no prior 97-10/Meltdown Event has occurred, the delivery of
this notice is in and of itself a 97-10/Meltdown Event under and as defined in the Construction
Agreement. Therefore, after receipt of this notice BNPPLC will be entitled to demand and receive a
97-10/Prepayment on and subject to the terms and conditions of Paragraph 9 of the Construction
Agreement. Further, if LRC fails to make a 97-10/Prepayment required by the Construction
Agreement, BNPPLC may and exercise the Put Option as provided in subparagraph 3(A) of the Purchase
Agreement.

     LRC also acknowledges that its right to terminate the Supplemental Payment Obligation
is subject to the condition precedent that: (1) LRC must have given (and not rescinded) a Notice of
LRC’s Intent to Terminate as provided in the Construction Agreement, or (2) BNPPLC must have given
any FOCB Notice as provided in the Construction Agreement. Accordingly, if neither

 

 

of the notices described in the preceding sentence have been given, the Supplemental Payment
Obligation will not terminate by reason of this notice.

     Finally, LRC acknowledges that because the delivery of this notice constitutes a
97-10/Meltdown Event, BNPPLC will have the right at any time for any reason or no reason to
terminate the Lease by notice to LRC.

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 
	 

 

Exhibit H to Agreement Regarding Purchase and Remarketing

Options (Livermore/ Parcel 7) — Page 2exv10w142

 

Exhibit 10.142

CONSTRUCTION AGREEMENT

(LIVERMORE/PARCEL 7)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 18, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	ENGAGEMENT AND AUTHORIZATION	 	 	1	 
	GENERAL TERMS AND CONDITIONS	 	 	2	 
	1	 	Additional definitions	 	 	2	 
	 	 	“97-10/Meltdown Event”	 	 	2	 
	 	 	“97-10/Prepayment”	 	 	2	 
	 	 	“97-10/Project Costs”	 	 	3	 
	 	 	“97-10/Pronouncement”	 	 	4	 
	 	 	“Accrued Construction Period Interest Expense”	 	 	4	 
	 	 	“Administrative Fee”	 	 	5	 
	 	 	“Affiliate’s Contract”	 	 	5	 
	 	 	“Arrangement Fee”	 	 	5	 
	 	 	“Capital Adequacy Charges”	 	 	5	 
	 	 	“Carrying Costs”	 	 	5	 
	 	 	“Commitment Fees”	 	 	5	 
	 	 	“Complete Taking”	 	 	5	 
	 	 	“Completion Date”	 	 	5	 
	 	 	“Completion Notice”	 	 	5	 
	 	 	“Construction Advances”	 	 	6	 
	 	 	“Construction Advance Request”	 	 	6	 
	 	 	“Construction Allowance”	 	 	6	 
	 	 	“Construction Budget”	 	 	6	 
	 	 	“Construction Project”	 	 	6	 
	 	 	“Covered Construction Period Losses”	 	 	6	 
	 	 	“Defective Work”	 	 	6	 
	 	 	“FOCB Notice”	 	 	6	 
	 	 	“Force Majeure Event”	 	 	7	 
	 	 	“Funded Construction Allowance”	 	 	7	 
	 	 	“Future Work”	 	 	7	 
	 	 	“Increased Cost Charges”	 	 	7	 
	 	 	“Increased Commitment”	 	 	7	 
	 	 	“Increased Funding Commitment”	 	 	7	 
	 	 	“Increased Time Commitment”	 	 	8	 
	 	 	“Initial Advance”	 	 	8	 
	 	 	“LRC’s Estimate of Force Majeure Delays”	 	 	8	 
	 	 	“LRC’s Estimate of Force Majeure Excess Costs”	 	 	8	 
	 	 	“Maximum Construction Allowance”	 	 	8	 
	 	 	“Notice of LRC’s Intent to Terminate”	 	 	8	 
	 	 	“Notice of LRC’s Intent to Terminate Because of a Force Majeure Event”	 	 	8	 
	 	 	“Notice of Termination by LRC”	 	 	8	 
	 	 	“Outstanding Construction Allowance”	 	 	8	 
	 	 	“Pre-lease Casualty”	 	 	8	 

 

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	 	 	“Pre-lease Force Majeure Delays”	 	 	8	 
	 	 	“Pre-lease Force Majeure Event”	 	 	8	 
	 	 	“Pre-lease Force Majeure Event Notice”	 	 	9	 
	 	 	“Pre-lease Force Majeure Excess Costs”	 	 	9	 
	 	 	“Pre-lease Force Majeure Losses”	 	 	9	 
	 	 	“Prior Work”	 	 	10	 
	 	 	“Projected Cost Overruns”	 	 	10	 
	 	 	“Reimbursable Construction Period Costs”	 	 	10	 
	 	 	“Remaining Proceeds”	 	 	10	 
	 	 	“Scope Change”	 	 	10	 
	 	 	“Target Completion Date”	 	 	11	 
	 	 	“Termination of LRC’s Work”	 	 	11	 
	 	 	“Third Party Contract”	 	 	11	 
	 	 	“Third Party Contract/Termination Fees”	 	 	11	 
	 	 	“Timing or Budget Shortfall”	 	 	11	 
	 	 	“Work”	 	 	12	 
	 	 	“Work/Suspension Event”	 	 	12	 
	 	 	“Work/Suspension Notice”	 	 	12	 
	 	 	“Work/Suspension Period”	 	 	13	 
	2	 	Construction and Management of the Property by LRC	 	 	13	 
	 	 	(A)	 	The Construction Project	 	 	13	 
	 	 	 	 	 	(1	)	 	Construction Approvals by BNPPLC	 	 	13	 
	 

	 	 	 	 	 	 	 	(a)
	 	Preconstruction Approvals by BNPPLC
	 	 	13	 
	 

	 	 	 	 	 	 	 	(b)
	 	Approval of Scope Changes
	 	 	13	 
	 	 	 	 	 	(2	)	 	LRC’s Rights of Access and to Control Construction	 	 	13	 
	 

	 	 	 	 	 	 	 	(a)
	 	Performance of the Work
	 	 	14	 
	 

	 	 	 	 	 	 	 	(b)
	 	Third Party Contracts
	 	 	14	 
	 

	 	 	 	 	 	 	 	(c)
	 	Adequacy of Drawings, Specifications and Budgets
	 	 	15	 
	 

	 	 	 	 	 	 	 	(d)
	 	Existing Condition of the Land and Improvements
	 	 	15	 
	 

	 	 	 	 	 	 	 	(e)
	 	Correction of Defective Work
	 	 	15	 
	 

	 	 	 	 	 	 	 	(f)
	 	Clean Up
	 	 	15	 
	 

	 	 	 	 	 	 	 	(g)
	 	No Damage for Delays
	 	 	15	 
	 

	 	 	 	 	 	 	 	(h)
	 	No Other Fees to LRC
	 	 	16	 
	 

	 	 	 	 	 	 	 	(i)
	 	Administration of Existing Space Leases
	 	 	16	 
	 	 	 	 	 	(3	)	 	Quality of Work	 	 	17	 
	 	 	(B)	 	Completion
Notice	 	 	17	 
	 	 	(C)	 	Status of
Property Acquired With BNPPLC’s Funds	 	 	17	 
	 	 	(D)	 	Insurance	 	 	18	 
	 	 	 	 	 	(1	)	 	Liability Insurance	 	 	18	 
	 	 	 	 	 	(2	)	 	Property Insurance	 	 	18	 

(ii)

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	 	 	 	 	 	(3	)	 	Failure of LRC to Obtain Insurance	 	 	19	 
	 	 	 	 	 	(4	)	 	Waiver of Subrogation	 	 	19	 
	 	 	(E)	 	Condemnation	 	 	19	 
	 	 	(F)	 	Additional Representations, Warranties and Covenants of LRC Concerning the Property	 	 	20	 
	 	 	 	 	 	(1	)	 	Payment of Local Impositions	 	 	20	 
	 	 	 	 	 	(2	)	 	Operation and Maintenance	 	 	20	 
	 	 	 	 	 	(3	)	 	Debts for Construction, Maintenance, Operation or Development	 	 	21	 
	 	 	 	 	 	(4	)	 	Permitted Encumbrances	 	 	22	 
	 	 	 	 	 	(5	)	 	Books and Records Concerning the Property	 	 	22	 
	 	 	(G)	 	BNPPLC’s Right of Access	 	 	22	 
	 	 	 	 	 	(1	)	 	Access Generally	 	 	22	 
	 	 	 	 	 	(2	)	 	Failure of LRC to Perform	 	 	22	 
	3	 	Amounts to be Added to the Lease Balance (in Addition to Construction Advances)	 	 	23	 
	 	 	(A)	 	Initial Advance	 	 	23	 
	 	 	(B)	 	Carrying Costs	 	 	23	 
	 	 	(C)	 	Commitment Fees	 	 	24	 
	 	 	(D)	 	Future Administrative Fees and Out-of-Pocket Costs	 	 	24	 
	 	 	(E)	 	Increased Cost Charges and Capital Adequacy Charges	 	 	25	 
	4	 	Construction Advances	 	 	26	 
	 	 	(A)	 	Costs Subject to Reimbursement Through Construction Advances	 	 	26	 
	 	 	(B)	 	Exclusions From Reimbursable Construction Period Costs	 	 	27	 
	 	 	(C)	 	Conditions to LRC’s Right to Receive Construction Advances	 	 	28	 
	 	 	 	 	 	(1	)	 	Construction Advance Requests	 	 	28	 
	 	 	 	 	 	(2	)	 	Amount of the Advances	 	 	28	 
	 

	 	 	 	 	 	 	 	(a)
	 	The Maximum Construction Allowance
	 	 	28	 
	 

	 	 	 	 	 	 	 	(b)
	 	Costs Previously Incurred by LRC
	 	 	28	 
	 

	 	 	 	 	 	 	 	(c)
	 	Limits During any Work/Suspension Period 
	 	 	29	 
	 

	 	 	 	 	 	 	 	(d)
	 	Restrictions Imposed for Administrative Convenience
	 	 	30	 
	 

	 	 	 	 	(3	)	 	No Advances After Certain Dates
	 	 	30	 
	 	 	(D)	 	Breakage Costs for Construction Advances Requested But Not Taken	 	 	30	 
	 	 	(E)	 	No Third Party Beneficiaries	 	 	30	 
	 	 	(F)	 	No Waiver	 	 	30	 
	5	 	Application of Insurance and Condemnation Proceeds	 	 	30	 
	 	 	(A)	 	Collection and Application Generally	 	 	30	 
	 	 	(B)	 	Advances of Escrowed Proceeds to LRC	 	 	31	 
	 	 	(C)	 	Status of Escrowed Proceeds After Commencement of the Term of the Lease	 	 	31	 
	 	 	(D)	 	Special Provisions Applicable After a 97-10/Meltdown Event or Event of Default	 	 	32	 
	 	 	(E)	 	LRC’s Obligation to Restore	 	 	32	 

(iii)

 

TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Page
	 	 	(F)	 	Special Provisions Concerning a Complete Taking	 	 	32	 
	 	 	(G)	 	Preservation of LRC’s Right to Receive Construction Advances	 	 	32	 
	6	 	Notice of Cost Overruns and Pre-lease Force Majeure Events	 	 	33	 
	 	 	(A)	 	Notice of Projected Cost Overruns	 	 	33	 
	 	 	(B)	 	Pre-lease Force Majeure Event Events and Notices	 	 	33	 
	7	 	Suspension and Termination of LRC’s Work	 	 	33	 
	 	 	(A)	 	Rights and Obligations During a Work/Suspension Period	 	 	33	 
	 	 	(B)	 	LRC’s Election to Terminate LRC’s Work	 	 	33	 
	 	 	(C)	 	BNPPLC’s Election to Terminate LRC’s Work	 	 	36	 
	 	 	(D)	 	Surviving Rights and Obligations	 	 	37	 
	 	 	(E)	 	Cooperation After a Termination of LRC’s Work	 	 	37	 
	8	 	LRC’s Obligation for a 97-10/Prepayment	 	 	39	 
	9	 	Indemnity for Covered Construction Period Losses	 	 	39	 
	 	 	(A)	 	Covenant to Indemnify Against Covered Construction Period Losses	 	 	39	 
	 	 	(B)	 	Certain Losses Included or Excluded	 	 	41	 
	 	 	 	 	 	(1	)	 	Environmental	 	 	41	 
	 	 	 	 	 	(2	)	 	Failure to Maintain a Safe Work Site	 	 	41	 
	 	 	 	 	 	(3	)	 	Failure to Complete Construction	 	 	41	 
	 	 	 	 	 	(4	)	 	Fraud	 	 	41	 
	 	 	 	 	 	(5	)	 	Excluded Taxes and Other Exclusions	 	 	42	 
	 	 	 	 	 	(6	)	 	Action or Omission of Tenant Under Existing Space Lease	 	 	42	 
	 	 	(C)	 	Express Negligence Protection	 	 	42	 
	 	 	(D)	 	Survival of Indemnity	 	 	43	 
	 	 	(E)	 	Due Date for Indemnity Payments	 	 	43	 
	 	 	(F)	 	Order of Application of Payments	 	 	44	 
	 	 	(G)	 	Defense of BNPPLC	 	 	44	 
	 	 	 	 	 	(1	)	 	Assumption of Defense	 	 	44	 
	 	 	 	 	 	(2	)	 	Indemnity Not Contingent	 	 	44	 
	 	 	(H)	 	Notice of Claims	 	 	44	 
	 	 	(I)	 	Settlements Without the Prior Consent of LRC	 	 	45	 
	 	 	 	 	 	(1	)	 	Election to Pay Reasonable Settlement Costs in Lieu of Actual	 	 	45	 
	 	 	 	 	 	(2	)	 	Conditions to Election	 	 	45	 
	 	 	 	 	 	(3	)	 	Indemnity Survives Settlement	 	 	45	 

(iv)

 

 TABLE OF CONTENTS
(Continued)

Exhibits and Schedules

			
	Exhibit A
	 	Legal Description
	 	 	 
	Exhibit B
	 	Description of the Construction Project and Budget
	 	 	 
	Exhibit C
	 	Construction Advance Request Form
	 	 	 
	Exhibit D
	 	Pre-lease Force Majeure Event Notice
	 	 	 
	Exhibit E
	 	Notice of Termination by LRC’s Work
	 	 	 
	Exhibit F
	 	Notice of LRC’s Intent to Terminate
	 	 	 
	Exhibit G
	 	Notice of Increased Funding Commitment by BNPPLC
	 	 	 
	Exhibit H
	 	Notice of Increased Time Commitment by BNPPLC
	 	 	 
	Exhibit I
	 	Notice of Rescission of LRC’s Intent to Terminate

(v)

 

CONSTRUCTION AGREEMENT

(LIVERMORE/PARCEL 7)

     This CONSTRUCTION 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.

     At the request of LRC and to facilitate the transaction contemplated in the other Operative
Documents, contemporaneously with this Agreement BNPPLC is acquiring the Land described in
Exhibit A and other Property.

     Also contemporaneously with this Agreement, BNPPLC and LRC are executing a Lease Agreement
(Livermore/ Parcel 7) (the “Lease”), pursuant to which the parties expect that LRC will lease the
Land described in Exhibit A and other Property from BNPPLC for a lease term that will
commence on the Completion Date (as defined below).

     In anticipation of the construction of new or additional Improvements for LRC’s use pursuant
to the Lease, BNPPLC and LRC have agreed upon the terms and conditions upon which BNPPLC is willing
to authorize LRC to arrange and manage such construction and upon which BNPPLC is willing to
provide funds for such construction, and by this Agreement BNPPLC and LRC desire to evidence such
agreement.

ENGAGEMENT AND AUTHORIZATION

     Subject to the terms and conditions set forth in this Agreement, BNPPLC does hereby
engage and authorize LRC — and LRC does hereby accept such engagement and authorization, as an
independent contractor for BNPPLC — to construct the Construction Project on the Land and to manage
such construction for BNPPLC as BNPPLC’s construction agent. As more particularly provided in
subparagraph 2(A)(2) below, LRC will have full and exclusive rights of

 

 

access to the Land and all Improvements on the Land to accomplish such construction.
However, the rights and authority granted to LRC by this Agreement are expressly made subject
and subordinate to the terms and condition hereinafter set forth and to the Permitted Encumbrances
and to any other claims or encumbrances affecting the Land or the Property that may be asserted by
third parties other than Liens Removable by BNPPLC.

GENERAL TERMS AND CONDITIONS

1 Additional definitions. As used in this Agreement, capitalized terms defined above will
have the respective meanings assigned to them above; as indicated above, capitalized terms that are
defined in the Common Definitions and Provisions Agreement and that are used but not defined herein
will have the respective meanings assigned to them in the Common Definitions and Provisions
Agreement; and, the following terms will have the following respective meanings:

     “97-10/Meltdown Event” means any of the following:

     (a) LRC gives a Notice of LRC’s Intent to Terminate and thereafter (i)
fails to rescind the same as described in subparagraph 7(B)(7) within ten
days after BNPPLC responds with any Increased Commitment, or (ii) gives a
Notice of Termination by LRC as provided in subparagraph 7(B)(1); or

     (b) LRC gives a notice to terminate the Supplemental Payment Obligation
imposed by the Purchase Agreement as described in subparagraph 6(A)
of the Purchase Agreement; or

     (c) BNPPLC gives notice to LRC as described in subparagraph 7(C) to
cause a Termination of LRC’s Work; or

     (d) LRC fails for any reason whatsoever to substantially complete the
Construction Project and give a Completion Notice to BNPPLC prior to the
Target Completion Date; or

     (e) for any reason whatsoever (including the accrual of Carrying
Costs), the Funded Construction Allowance exceeds the Maximum Construction
Allowance.

“97-10/Prepayment” means a payment to BNPPLC required by Paragraph 8, which will
equal eighty-nine percent (89%) of the aggregate of all 97-10/Project Costs paid or

 

Construction Agreement (Livermore/ Parcel 7) — Page 2

 

 

incurred on or prior to the date of such payment, less amounts (if any) then owed by
BNPPLC to LRC pursuant to this Agreement as reimbursements for Reimbursable Construction
Period Costs paid by LRC and not theretofore reimbursed.

“97-10/Project Costs” means all of the following, but without duplication of any item,
including any of the following paid or reimbursed from the Initial Advance:

     (a) the net purchase price paid by BNPPLC to acquire the Land and existing
Improvements;

     (b) costs incurred for the Work, including not only hard costs incurred for the new
Improvements described in Exhibit B, but also the following costs to the extent
reasonably incurred in connection with the Construction Project:

	 	•	 	soft costs, such as architectural fees, engineering fees and fees and
costs paid in connection with obtaining project permits and approvals
required by Governmental Authorities or any Permitted Encumbrance,
	 
	 	•	 	site preparation costs, and
	 
	 	•	 	costs of offsite and other public improvements required as conditions of
governmental approvals for the Construction Project or required by any
Permitted Encumbrances;

     (c) costs incurred to maintain insurance required by (and consistent with the
requirements of) this Agreement prior to the Completion Date;

     (d) Local Impositions that have accrued or become due prior to the Completion Date;

     (e) Accrued Construction Period Interest Expense; and

     (f) any costs in addition to those described in clauses (a) through (e) preceding that
GAAP (as it exists on the Effective Date) would allow BNPPLC to capitalize as part of the
cost of the Property or that the 97-10/Pronouncement would allow BNPPLC to characterize as
project costs, including cancellation or termination fees or other compensation payable by
LRC or BNPPLC pursuant to any contract concerning the Construction Project made by LRC or
BNPPLC with any general contractor, architect, engineer or other third party because of any
election by LRC or BNPPLC to cancel or terminate such contract.

 

Construction Agreement (Livermore/ Parcel 7) — Page 3

 

 

However, notwithstanding the foregoing, 97-10/Project Costs will not include
Pre-lease
Force Majeure Losses, Commitment Fees, the Arrangement Fee, any Administrative Fee or any
legal fees which are included in Transaction Expenses. Further, 97-10 Project Costs will
not include costs incurred to satisfy any Existing Space Lease to the extent such cost would
not have been incurred but for such Existing Space Lease. (Thus, for example, costs of
providing any required janitorial service to a tenant under an Existing Space Lease would
not be included. In contrast, a Local Imposition that must be paid irrespective of the
requirements of any Existing Space Lease may qualify as a 97-10/Project Cost even if payment
of such Local Imposition is required by an Existing Space Lease.)

“97-10/Pronouncement” means the pronouncement issued by the Emerging Issues Task Force of
the Financial Accounting Standards Board in 1998 titled “EITF 97-10: The Effect of Lessee
Involvement in Asset Construction”, which provides that certain kinds of involvement by a
lessee in pre-lease commencement construction will cause the lessee to be considered as the
owner of the leased property during the construction period and then will require
application of the appropriate sale and leaseback accounting rules.

“Accrued Construction Period Interest Expense” means interest that has accrued and that
BNPPLC has paid or is obligated to pay on Funding Advances used to pay or reimburse
97-10/Project Costs for any period prior to the Completion Date. Subject to the limitations
and qualifications set out below in this definition:

(1) Accrued Construction Period Interest Expense will include a percentage, equal to
the aggregate Percentages of all Participants (under and as defined in the
Participation Agreement), of Carrying Costs and Commitment Fees that are added to
the Outstanding Construction Allowance as provided in this Agreement, it being
understood that the additional amounts BNPPLC must pay to the Participants under the
Participation Agreement because of the accrual of Carrying Costs and Commitment Fees
effectively constitute construction period interest on advances the Participants
make to BNPPLC under the Participation Agreement.

(2) Accrued Construction Period Interest Expense will also include any interest and
other finance charges that accrue prior to the Completion Date because of Funding
Advances provided to BNPPLC by BNPPLC’s Parent in the form of loans.

However, the interest and other finance charges accruing on Funding Advances provided
by BNPPLC’s Parent and included in Accrued Construction Period Interest Expense will not in
any event exceed the portion of Carrying Costs attributable to the percentage of the Lease
Balance funded or maintained by such Funding Advances, computed as if such

 

Construction Agreement (Livermore/ Parcel 7) — Page 4

 

 

Carrying Costs accrued at a per annum rate equal to LIBOR (i.e., before the addition of
the Secured Spread as provided in subparagraph 3(B)). Further, Accrued Construction Period
Interest Expense will not include any Carrying Costs (or the corresponding interest or
finance charges that BNPPLC must pay to the Participants under the Participation Agreement
or to BNPPLC’s Parent) that accrue from time to time in respect of the portion of the Lease
Balance which exceeds the outstanding 97-10/Project Costs. For example, Accrued
Construction Period Interest Expense will not include any portion of Carrying Costs (or any
corresponding interest or finance charges that BNPPLC must pay to the Participants under the
Participation Agreement or to BNPPLC’s Parent) because of the inclusion in the Lease Balance
of the Arrangement Fee, Administrative Fees or other amounts excluded from 97-10/Project
Costs as described in the last paragraph of the definition thereof set out above. Without
limiting the foregoing, Accrued Construction Period Interest Expense will not include any
portion of Carrying Costs included in Pre-lease Force Majeure Losses (as set forth in the
definition thereof below) or interest or finance charges that BNPPLC must pay to the
Participants under the Participation Agreement or to BNPPLC’s Parent because of the accrual
of such portion of Carrying Costs.

“Administrative Fee” has the meanings indicated in subparagraph 3(A) and subparagraph 3(D).

“Affiliate’s Contract” has the meaning indicated in subparagraph 2(A)(2)(b)2).

“Arrangement Fee” has the meaning indicated in subparagraph 3(A).

“Capital Adequacy Charges” has the meaning indicated in subparagraph 3(E)(1).

“Carrying Costs” has the meaning indicated in subparagraph 3(B).

“Commitment Fees” has the meaning indicated in subparagraph 3(C).

“Complete Taking” means a taking by eminent domain prior to the Completion Date over LRC’s
objection of all of the Land or the Property, or so much thereof as to make it impossible to
complete the Construction Project for its intended uses on the Land regardless of any Scope
Changes BNPPLC may be willing to approve or any Increased Commitment that BNPPLC may be
willing to provide.

“Completion Date” means the date upon which LRC gives the notice to BNPPLC which is required
by subparagraph 2(B), after having substantially completed the Construction Project and
having obtained any certificate of occupancy or other permit (temporary or permanent)
required for the commencement of LRC’s use of the Improvements.

 

Construction Agreement (Livermore/ Parcel 7) — Page 5

 

 

“Completion Notice” means the notice required by subparagraph 2(B) from LRC to BNPPLC,
advising BNPPLC that LRC has substantially completed construction of the Construction
Project and has obtained any certificate of occupancy or other permit (temporary or
permanent) required for the commencement of LRC’s use of the Improvements.

“Construction Advances” means actual advances of funds made by or on behalf of BNPPLC to or
on behalf of LRC as provided in Paragraph 4, which sets forth LRC’s rights to receive
advances for Reimbursable Construction Period Costs. The term “Construction Advances” will
not, however, include advances of insurance proceeds, condemnation proceeds or other
Escrowed Proceeds to pay or reimburse costs of repairs or restoration.

“Construction Advance Request” has the meaning indicated in subparagraph 4(C)(1).

“Construction Allowance” means the allowance to be provided by BNPPLC for the design and
construction of the Construction Project, against which and from which Carrying Costs,
Construction Advances and other amounts will be or may be charged and paid as provided in
various provisions of this Agreement (including Paragraphs 3 and 4).

“Construction Budget” means the budget for the Construction Project set forth in Exhibit
B.

“Construction Project” means the new buildings or other substantial Improvements to be
constructed, or the alteration of existing Improvements, as described generally in
Exhibit B.

“Covered Construction Period Losses” has the meaning indicated in subparagraph 9(A).

“Defective Work” has the meaning indicated in subparagraph 2(A)(2)(e).

“FOCB Notice” means a notice from BNPPLC to LRC advising LRC of any of the following events
or circumstances, and also advising LRC that because of any of the following events or
circumstances BNPPLC will be entitled to make the election described in subparagraph 7(C),
which will constitute a Termination of LRC’s Work and a 97-10/Meltdown Event:

     (1) LRC has taken action to cancel or terminate or reduce the coverage available
to BNPPLC under the builder’s risk insurance obtained for the Construction

 

Construction Agreement (Livermore/ Parcel 7) — Page 6

 

 

Project as required by this Agreement, or LRC has otherwise failed to maintain any
insurance or to provide insurance certificates to BNPPLC as required by this Agreement
and not cured such failure within ten days after receiving notice thereof, or

     (2) LRC has given any Pre-lease Force Majeure Event Notice to BNPPLC, or

     (3) an Event of Default has occurred and is continuing; or

     (4) a Work/Suspension Event has occurred and not been rectified by LRC.

“Force Majeure Event” means (A) any taking of any part of the Property by eminent domain
prior to the Completion Date, and (B) any damage to the Improvements or disruption of the
Work that occurs prior to the Completion Date, excluding, however, any damage or disruption
that would not have occurred or been suffered but for any act or any omission of LRC or of
any LRC’s contractors or subcontractors during the period prior to any Termination of LRC’s
Work as provided in subparagraphs 7(B) and 7(C) or during any subsequent period in which LRC
does not relinquish possession or control of the Construction Project. Force Majeure Events
will include, for example and without limitation damage to the Improvements or disruption of
the Work caused by fire, or acts of God (such as flood, lightning, earthquake or hurricane),
war, strikes and other labor disputes, riot or similar civil disturbance, or any act or
omission (which is not requested or authorized by LRC) of any tenant (or of a tenant’s
employees or of any other party acting under such tenant’s control or with the approval or
authorization of such tenant) under an Existing Space Lease; but only to the extent such
damage or disruption is beyond the control of and not caused in whole or in part by
negligence, illegal acts or willful misconduct on the part of LRC or of its employees or of
any other party acting under LRC’s control or with the approval or authorization of LRC.

“Funded Construction Allowance” means on any day the Outstanding Construction Allowance on
that day, including all Construction Advances and Carrying Costs added to the Outstanding
Construction Allowance on or prior to that day, plus the amount of any Qualified Prepayments
deducted on or prior to that day in the calculation of such Outstanding Construction
Allowance.

“Future Work” has the meaning indicated in subparagraph 4(C)(2)(b).

“Increased Cost Charges” has the meaning indicated in subparagraph 3(E)(1).

“Increased Commitment” has the meaning indicated in subparagraph 7(B)(6).

“Increased Funding Commitment” has the meaning indicated in

 

Construction Agreement (Livermore/ Parcel 7) — Page 7

 

 

subparagraph 7(B)(6)(a).

“Increased Time Commitment” has the meaning indicated in subparagraph 7(B)(6)(b).

“Initial Advance” has the meaning indicated in subparagraph 3(A).

“LRC’s Estimate of Force Majeure Delays” has the meaning indicated in subparagraph 7(B)(4).

“LRC’s Estimate of Force Majeure Excess Costs” has the meaning indicated in subparagraph
7(B)(3).

“Maximum Construction Allowance” means an amount equal to the difference computed by
subtracting the Initial Advance from $46,500,000, as such amount may be increased from time
to time by any Increased Funding Commitment made by BNPPLC as provided in subparagraph
7(B)(6).

“Notice of LRC’s Intent to Terminate” has the meaning indicated in subparagraph 7(B)(2).

“Notice of LRC’s Intent to Terminate Because of a Force Majeure Event” has the meaning
indicated in subparagraph 7(B)(5).

“Notice of Termination by LRC” has the meaning indicated in subparagraph 7(B)(1).

“Outstanding Construction Allowance” means, as of any date, the difference (but not less
than zero) of (A) the total Construction Advances made by or on behalf of BNPPLC on or prior
to such date in question, plus (B) all Carrying Costs, Commitment Fees, Administrative Fees,
Increased Cost Charges and Capital Adequacy Charges added on or prior to the date as
provided in Paragraph 3, less (C) any funds received and applied as Qualified Prepayments on
or prior to such date.

“Pre-lease Casualty” has the meaning indicated in subparagraph 2(A)(2)(a).

“Pre-lease Force Majeure Delays” means delays in the completion of the Work to the extent
(but only to the extent) caused by a Pre-lease Force Majeure Event.

“Pre-lease Force Majeure Event” means a Force Majeure Event that occurs prior to the
Completion Date; provided, however, that if LRC does not notify BNPPLC of any such Force
Majeure Event by the delivery of a Pre-lease Force Majeure Event Notice within thirty days
after the Force Majeure Event first occurs or commences, then such Force

 

Construction Agreement (Livermore/ Parcel 7) — Page 8

 

 

Majeure Event will not qualify as a “Pre-lease Force Majeure Event” for purposes of this
Agreement or the other Operative Documents.

“Pre-lease Force Majeure Event Notice” has the meaning indicated in subparagraph
6(B).

“Pre-lease Force Majeure Excess Costs” means the amount (if any) by which the increases in
the costs of the Work resulting directly and solely from a Pre-lease Force Majeure Event
(such as, for example, the costs of repairing damage to the Improvements caused by a
Pre-lease Force Majeure Event) exceed the amounts available to pay or reimburse LRC for such
increased costs. Amounts available to pay or reimburse such increased costs will include
(a) insurance proceeds or any recovery from a third party (including any Escrowed Proceeds
held by BNPPLC), and (b) any part of the Construction Allowance (including any unused
contingency amount in the Construction Budget) not used or needed to cover other
Reimbursable Construction Period Costs.

“Pre-lease Force Majeure Losses” means any of the following Losses resulting from any taking
of the Property, damage to the Improvements or disruption of the Work which constitutes a
Pre-lease Force Majeure Event:

     (a) the costs of repairing any such damage to the extent that such costs have,
as of the date of any required determination of Pre-lease Force Majeure Losses, been
paid or reimbursed from a Construction Advance (and thus are included in the Lease
Balance as of that date), to be distinguished from costs of repairs paid or
reimbursed from insurance proceeds or from any recovery from a third party;

     (b) any diminution in the value of the Property resulting from any such taking
or resulting from any such damage that has not, as of the date of the required
determination of Pre-lease Force Majeure Losses, been repaired;

     (c) any increase in the total amount of Carrying Costs, Commitment Fees,
Administrative Fees, Increased Cost Charges and Capital Adequacy Charges (and any
other amounts) added to the Lease Balance as provided in Paragraph 3 solely by
reason of Pre-lease Force Majeure Delays; and

     (d) to the extent not already included in the increase described in the preceding
clause, all increases in Carrying Costs that are attributable to the amounts included in
Pre-lease Force Majeure Losses pursuant to the preceding clause (a);

but in each case such amounts will constitute Pre-lease Force Majeure Losses only to
the extent, if any, that they are not offset by condemnation or insurance proceeds which are

 

Construction Agreement (Livermore/ Parcel 7) — Page 9

 

 

(1) paid by reason of such Pre-lease Force Majeure Event (including insurance proceeds
paid to compensate BNPPLC or LRC for increased financing costs, the lost time value of
BNPPLC’s investment in the Project or business interruption) and (2) applied as a Qualified
Prepayment to reduce the Lease Balance.

It is understood that costs of repairing damage caused by a Pre-lease Force Majeure Event
which are not covered by insurance proceeds by reason of an insurance policy deductible
permitted by the Minimum Insurance Requirements, and thus are paid or reimbursed from a
Construction Advance instead, will constitute Pre-Lease Force Majeure Losses.

Also, for purposes of this definition, the diminution in the value of the Improvements, as
described in the preceding clause (b), because of any damage that constitutes a Pre-lease
Force Majeure Event will not exceed the amount thereof estimated in good faith by any
independent appraiser or insurance adjuster engaged by BNPPLC to determine such amount after
BNPPLC has received a Pre-lease Force Majeure Event Notice as provided in subparagraph 6(B),
nor will it exceed the cost of repairing the damage as estimated in good faith by any such
independent insurance adjuster or as indicated by any bona fide written bid to make the
repairs that BNPPLC obtains from a reputable contractor capable of making the repairs.

“Prior Work” has the meaning indicated in subparagraph 4(C)(2)(b).

“Projected Cost Overruns” means the excess (if any), calculated as of the date of each
Construction Advance Request, of (1) the total of projected Reimbursable Construction Period
Costs yet to be incurred or for which LRC has yet to be reimbursed hereunder (including
projected Reimbursable Construction Period Costs for Future Work), over (2) the balance of
the remaining Construction Allowance then projected to be available to cover such costs. The
balance of the remaining Construction Allowance then projected to be available will equal:
(i) the amount (if any) by which the Maximum Construction Allowance exceeds the Funded
Construction Allowance, plus (ii) any Escrowed Proceeds then available or expected to be
available to cover costs of repairs and restoration that LRC will perform as part of the
Work after a casualty or condemnation, less (iii) all projected future Carrying Costs,
Commitment Fees, Administrative Fees and other amounts to be added to the Outstanding
Construction Allowance as provided in Paragraph 3.

“Reimbursable Construction Period Costs” has the meaning indicated in subparagraph 4(A).

“Remaining Proceeds” has the meaning indicated in subparagraph 5(A).

 

Construction Agreement (Livermore/ Parcel 7) — Page 10

 

 

“Scope Change” means a change to the Construction Project that, if implemented, will
make the quality, function or capacity of the Improvements “materially different” (as
defined below in this subparagraph) than as described or inferred by the site plan or plans
and renderings referenced in Exhibit B. The term “Scope Change” is not intended to
include the mere refinement, correction or detailing of the site plan, plans or renderings
submitted to BNPPLC by LRC. As used in this definition, a “material difference” means a
difference that could reasonably be expected to (a) cause the Lease Balance to exceed the
fair market value of the Property when the Construction Project is completed and all
Construction Advances required in connection therewith have been funded, or significantly
increase any such excess, (b) change the general character of the Improvements from that
needed to accommodate the uses to be permitted by subparagraph 2(A) of the Lease, or
(c) cause or exacerbate Projected Cost Overruns.

“Target Completion Date” means the date which is the last day of the 18th
calendar month following the Effective Date, as such date may be extended from time to time
by any Increased Time Commitment made by BNPPLC as provided in subparagraph 7(B)(6).

“Termination of LRC’s Work” means a termination of LRC’s rights and obligations to continue
the Work because of an election to terminate made by LRC pursuant to subparagraph 7(B) or
because of an election by BNPPLC made pursuant to subparagraph 7(C).

“Third Party Contract” has the meaning indicated in subparagraph 2(A)(2)(b)1).

“Third Party Contract/Termination Fees” means any amounts, however denominated, for which
LRC will be obligated under a Third Party Contract as a result of any election or decision
by LRC to terminate such Third Party Contract, including demobilization costs; provided,
however, amounts payable only by reason of Prior Work as of the date of any such termination
will not be characterized as Third Party Contract/Termination Fees. If LRC reserves an
absolute express right in a Third Party Contract to terminate such contract at any time,
without cause, for a specified U.S. dollar amount, such amount will constitute a Third Party
Contract/Termination Fee. If no such right is reserved in a Third Party Contract, the
amount of damages that LRC is required to pay (in addition to payments required for Prior
Work) upon a repudiation of the Third Party Contract by LRC will qualify as a “Third Party
Contract/Termination Fee” applicable to such contract for purposes of this Agreement.

“Timing or Budget Shortfall” means that, as of any time prior to the Completion Date,
(i) the remaining available Construction Allowance will not be sufficient to cover

 

Construction Agreement (Livermore/ Parcel 7) — Page 11

 

 

Reimbursable Construction Period Costs yet to be paid or reimbursed from Construction
Advances (x) because the cost of the Work exceeds budgeted expectations (resulting in
Projected Cost Overruns) through no fault of LRC or its employees or any other party
acting under LRC’s control or with the approval or authorization of LRC, (y) because of any
Pre-lease Force Majeure Event or (z) because LRC can no longer satisfy conditions to
BNPPLC’s obligation to provide further Construction Advances, or (ii) the Work will not be
substantially completed prior to the Target Completion Date through no fault of LRC or its
employees or any other party acting under LRC’s control or with the approval or
authorization of LRC. As used in this definition with respect to any party, the term
“fault” will not include inadequate estimation of time or dollars unless shown to be caused
by the negligence or willful misconduct of that party.

“Work” has the meaning indicated in subparagraph 2(A)(2)(a).

“Work/Suspension Event” means any of the following:

     (1) Projected Cost Overruns have become more likely than not, in BNPPLC’s good faith
judgment (taking into account any notices or Construction Draw Requests from LRC indicating
that a Pre-lease Force Majeure Event may result in Projected Cost Overruns), and BNPPLC has
notified LRC of such judgment and the reasons therefor.

     (2) Delays in the Work (including any delays resulting from damage to the Property by
fire or other casualty or from any taking of the Property by eminent domain) have made it
substantially unlikely, in BNPPLC’s good faith judgment, that LRC will be able to complete
the Construction Project in accordance with the requirements of this Agreement prior to the
Target Completion Date using only the funds available to LRC under this Agreement, and
BNPPLC has notified LRC of such judgment and the reasons therefor.

     (3) With respect to any Construction Advance, BNPPLC has requested, but LRC has failed
to provide within thirty days after receipt of the request: (1) invoices, requests for
payment from contractors and other evidence reasonably establishing that the costs and
expenses for which LRC has requested or is requesting reimbursement constitute actual
Reimbursable Construction Period Costs, and (2) canceled checks, lien waivers or other
evidence reasonably establishing that all prior Construction Advances paid to LRC have been
used by LRC to pay the Reimbursable Construction Period Costs for which the prior advances
were requested and made.

“Work/Suspension Notice” means a notice from BNPPLC to LRC advising LRC of any event or
circumstances that constitute a Work/Suspension Event and advising LRC that (1) before the
Work/Suspension Event is rectified BNPPLC may limit Construction

 

Construction Agreement (Livermore/ Parcel 7) — Page 12

 

 

Advances to LRC as permitted by this Agreement, and (2) unless LRC does rectify the Work/Suspension Event
within thirty days after LRC’s receipt of such notice, BNPPLC may elect to send an FOCB
Notice in anticipation of a Termination of LRC’s Work.

“Work/Suspension Period” means any period (1) beginning with the date of any
Work/Suspension Notice, FOCB Notice or Notice of LRC’s Intent to Terminate, and (2) ending
on the earlier of (a) the first date upon which (i) no Work/Suspension Events are
continuing, (ii) all previous FOCB Notices and Notices of LRC’s Intent to Terminate (if any)
have been rescinded, and (iii) no 97-10/Meltdown Events have occurred, or (b) the effective
date of any Termination of LRC’s Work as described in subparagraph 7(B) or subparagraph
7(C).

			
	2	 	Construction and Management of the Property by LRC.

(A) The Construction Project.

     (1) Construction Approvals by BNPPLC.

     (a) Preconstruction Approvals by BNPPLC. LRC has submitted and obtained
BNPPLC’s approval of the site plan and descriptions of the Construction Project
referenced in Exhibit B. Also set forth in Exhibit B is a general
description of the Construction Project. The Construction Project, as constructed by
LRC pursuant to this Agreement, and all construction contracts and other agreements
executed or adopted by LRC in connection therewith, must not be inconsistent in any
material respect with the plans or other items referenced in Exhibit B,
except to the extent otherwise provided by any Scope Change approved by BNPPLC.

     (b) Approval of Scope Changes. Before making a Scope Change, LRC must
provide to BNPPLC a reasonably detailed written description of the Scope Change, a
revised Construction Budget and a copy of any changes to the drawings, plans and
specifications for the Improvements required in connection therewith, all of which
must be approved in writing by BNPPLC before the Scope Change is implemented. After
receiving such items, BNPPLC will endeavor in good faith to promptly respond to any
request by LRC for approval of the Scope Change. BNPPLC will not, however, be
liable for any failure to provide a prompt response. Further, BNPPLC’s approval
will not in any event constitute a waiver of subparagraph 2(A)(3) or of any other
provision of this Agreement or other Operative Documents.

 

Construction Agreement (Livermore/ Parcel 7) — Page 13

 

 

     (2) LRC’s Rights of Access and to Control Construction. Subject to the
terms and conditions set forth in this Agreement, and prior to any Termination of LRC’s Work
as provided in subparagraphs 7(B) and 7(C), LRC will have full access to the Land and
all Improvements on the Land to the exclusion of BNPPLC or others claiming through
BNPPLC (except as provided in subparagraph 2(G)) and will have the sole right to control and
the sole responsibility for the design and construction of the Construction Project,
including the means, methods, sequences and procedures implemented to accomplish such design
and construction. Although title to all Improvements will vest in BNPPLC (as more
particularly provided in subparagraph 2(C)), BNPPLC’s obligation with respect to the
Construction Project will be limited to the making of advances under and subject to the
conditions set forth in this Agreement. Without limiting the foregoing, LRC acknowledges and
agrees that:

     (a) Performance of the Work. Except as provided in subparagraphs 7(A)
and 7(D), LRC must, using commercially reasonable efforts and in an expeditious and
economical manner not inconsistent with the interests of BNPPLC, perform or cause to
be performed all work required, and must provide or cause to be provided all
supplies and materials required, to demolish and remove existing Improvements on the
Property (as appropriate to accommodate the new Improvements to be constructed) and
to design and complete construction of the Construction Project (collectively, the
“Work”) no later than the Target Completion Date. The Work will include obtaining
all necessary building permits and other governmental approvals required in
connection with the design and construction of the Construction Project, or required
in connection with the use and occupancy thereof (e.g., certificates of occupancy).
The Work will also include any repairs or restoration required because of damage to
Improvements by fire or other casualty prior to the Completion Date (a “Pre-lease
Casualty”); provided, however, the cost of any such repairs or restoration will be
subject to reimbursement not only through Construction Advances made to LRC on and
subject to the terms and conditions of this Agreement, but also through the
application of Escrowed Proceeds as provided in Paragraph 5; and, provided further,
like other Work, any such repairs and restoration to be provided by LRC will be
subject to subparagraphs 7(A) and 7(B), which establish certain rights of LRC to
suspend or discontinue any Work. LRC will carefully schedule and supervise all Work,
will check all materials and services used in connection with all Work and will keep
full and detailed accounts as may be necessary to document expenditures made or
expenses incurred for the Work.

     (b) Third Party Contracts.

 

Construction Agreement (Livermore/ Parcel 7) — Page 14

 

 

     1) LRC will not enter into any construction contract or other agreement
with a third party concerning the Work or the Construction Project (a “Third
Party Contract”) in the name of BNPPLC or otherwise purport to bind BNPPLC
to any obligation to any third party.

     2) In any Third Party Contract between LRC and any of its Affiliates
(an “Affiliate’s Contract”) LRC must reserve the right to terminate such
contract at any time, without cause, and without subjecting LRC to liability
for any Third Party Contract/Termination Fee. Further, LRC must not enter
into any Affiliate’s Contract that obligates LRC to pay more than would be
required under an arms-length contract or that would require LRC to pay its
Affiliate any amount in excess of the sum of actual, out-of-pocket direct
costs and internal labor costs incurred by the Affiliate to perform such
contract.

     (c) Adequacy of Drawings, Specifications and Budgets. BNPPLC has not
made and will not make any representations as to the adequacy of the Construction
Budget or any other budget or any site plans, renderings, plans, drawings or
specifications for the Construction Project, and no modification of any such
budgets, site plans, renderings, plans, drawings or specifications that may be
required from time to time will entitle LRC to any adjustment in the Construction
Allowance.

     (d) Existing Condition of the Land and Improvements. LRC is familiar
with the conditions of the Land and any existing Improvements on the Land. LRC will
have no claim for damages against BNPPLC or for an increase in the Construction
Allowance or for an extension of the deadline specified in subparagraph 2(A)(2)(a)
for completing the Work by reason of any condition (concealed or otherwise) of or
affecting the Land or Improvements.

     (e) Correction of Defective Work. LRC will promptly correct all Work
performed prior to any Termination of LRC’s Work that does not comply with the
requirements of this Agreement for any reason other than a Pre-lease Casualty
(“Defective Work”). If LRC fails to correct any Defective Work or fails to carry out
Work in accordance with this Agreement, BNPPLC may (but will not be required to)
order LRC to stop all Work until the cause for such failure has been eliminated.

     (f) Clean Up. Upon the completion of all Work, LRC will remove all
waste material and rubbish from and about the Land, as well as all tools,
construction equipment, machinery and surplus materials. LRC will keep the Land and
the Improvements thereon in a reasonably safe and sightly condition as

 

Construction Agreement (Livermore/ Parcel 7) — Page 15

 

 

Work progresses.

     (g) No Damage for Delays. LRC will have no claim for damages
against BNPPLC or for an increase in the Construction Allowance by reason of
any delay in the performance of any Work. Nor will LRC have any claim for an
extension of the deadline specified in subparagraph 2(A)(2)(a) for completing the
Work because of any such period of delay, except that (i) in the case of any
Pre-lease Force Majeure Delays, LRC will have certain rights as set forth in
subparagraph 7(B) and other provisions of this Agreement, and (ii) in the event of
intentional interference with the Work by BNPPLC itself for which LRC provides
written notice to cease, LRC will be entitled to an extension of the deadline
specified in subparagraph 2(A)(2)(a) as needed because of any delays resulting from
such intentional interference. It is also understood that any such intentional
interference by BNPPLC will constitute a Force Majeure Event. In no event, however,
will BNPPLC’s exercise of its rights and remedies permitted under this Agreement or
the other Operative Documents be construed as intentional interference with LRC’s
performance of any Work; and thus neither BNPPLC’s exercise of its right to withhold
Construction Advances at any time when LRC has failed to satisfy all conditions
herein to such advances, nor BNPPLC’s exercise of its right to terminate Work by LRC
as provided in subparagraph 7(C), be considered as intentional interference with the
Work or a Pre-lease Force Majeure Event.

     (h) No Other Fees to LRC. Except as provided in the next subparagraph,
LRC will have no claim under this Agreement for any fee or other compensation or for
any reimbursement of internal administrative or overhead expenses (other than the
out-of-pocket overhead expenses properly included in the Construction Budget, if
any), it being understood that LRC is executing this Agreement in consideration of
the rights expressly granted to it herein and in the other Operative Documents.

     (i) Administration of Existing Space Leases. Prior to any
Termination of LRC’s Work, LRC’s rights under this Agreement will extend to and
include the right to enforce and administer Existing Space Leases and to receive and
enjoy all benefits conferred upon BNPPLC by the Existing Space Leases, including the
right to receive rents thereunder as they become due. Without limiting the
foregoing, LRC may (on behalf of BNPPLC) exercise any right to terminate any
Existing Space Lease provided therein in the event of a default by the tenant
thereunder. LRC must apply all rents paid to it under the Existing Space Leases
prior to the Completion Date in the following order: (A) first, to pay on behalf of
BNPPLC the management fee due to LRC as described

 

Construction Agreement (Livermore/ Parcel 7) — Page 16

 

 

below in this subparagraph; (B) second, to pay any costs incurred to provide maintenance or repairs or services, if
any, required of the landlord by the Existing Space Leases; (C) third, to reimburse
BNPPLC for any Losses it may incur with respect to the Property or this Agreement,
other than Covered Construction Period Losses for
which BNPPLC is entitled to be indemnified by LRC pursuant to this Agreement.
LRC must also pay any such rents not otherwise applied as provided in the preceding
sentence, or needed by LRC to pay amounts described in the preceding sentence, over
to BNPPLC for application as a Qualified Prepayment. As compensation for
administering the Existing Space Leases during each calendar month or portion
thereof after the Effective Date and prior to the Completion Date or any Termination
of LRC’s Work, LRC will be entitled to the payment by or on behalf of BNPPLC of a
management fee of three percent (3%) of the rents payable (whether or not collected)
under the Existing Space Leases for such calendar month or portion thereof.

     (3) Quality of Work. LRC will cause the Work undertaken and administered by it
pursuant to this Agreement to be performed (a) in a safe and good and workmanlike manner,
(b) in accordance with Applicable Laws, and (c) in compliance with the provisions of this
Agreement and the material provisions of the Permitted Encumbrances.

     (B) Completion Notice. Within fifteen Business Days after LRC substantially completes
construction of the Construction Project and obtains any certificate of occupancy or other permit
(temporary or permanent) required by Applicable Laws for the commencement of LRC’s use and
occupancy of the Improvements, LRC must provide a notice (a “Completion Notice”) to BNPPLC,
advising BNPPLC thereof, and thereby establish the Completion Date. For purposes of this
Agreement and the other Operative Documents, BNPPLC will be entitled to rely without investigation
upon any such notice given by LRC as evidence that LRC has, in fact, substantially completed the
Construction Project and has obtained any certificate of occupancy or other permit (temporary or
permanent) required for the commencement of LRC’s use of the Improvements, and after giving any
such notice LRC will be estopped from later claiming that the Completion Date has not occurred.

     (C) Status of Property Acquired With BNPPLC’s Funds. All Improvements
constructed on the Land as provided in this Agreement will constitute “Property” for purposes of
the Lease and other Operative Documents. Further, to the extent heretofore or hereafter acquired
(in whole or in part) with any portion of the Initial Advance or with any Construction Advances or
with other funds for which LRC receives reimbursement from the Initial Advance or Construction
Advances, all furnishings, furniture, chattels, permits, licenses, franchises, certificates and
other personal property of whatever nature will be considered as having been acquired on behalf of
BNPPLC by LRC and will constitute “Property” for purposes of the Lease and other Operative
Documents, as will all renewals or replacements of or substitutions for any

 

Construction Agreement (Livermore/ Parcel 7) — Page 17

 

 

such Property. The parties intend that title to the Improvements and to any other such Property will vest in BNPPLC
without passing through LRC or LRC’s Affiliates before it is transferred to BNPPLC from
contractors, suppliers, vendors or other third Persons, but with the understanding that all such
Property will be accepted by BNPPLC subject to the terms and conditions of the

other Operative Documents, including subparagraph 4(C)(1) of the Lease (concerning the
characterization of the Lease and other Operative Documents for tax and certain other purposes).
Although nothing herein constitutes authorization of LRC by BNPPLC to bind BNPPLC to any
construction contract or other agreement with a third Person, any construction contract or other
agreement executed by LRC for the acquisition or construction of Improvements or other components
of the Property may, as LRC deems appropriate, provide for the direct transfer of title to BNPPLC
as described in the preceding sentence.

     (D) Insurance.

     (1) Liability Insurance. Throughout the period prior to any Termination of
LRC’s Work, LRC must maintain commercial general liability insurance against claims for
bodily and personal injury, death and property damage occurring in or upon or resulting from
any occurrence in or upon the Property under one or more insurance policies that satisfy the
Minimum Insurance Requirements, which are set forth in an exhibit to the Common Definitions
and Provisions Agreement. LRC must deliver and maintain with BNPPLC for each liability
insurance policy required by this Agreement written confirmation of the policy and the scope
of the coverage provided thereby issued by the applicable insurer or its authorized agent,
which confirmation must also satisfy the Minimum Insurance Requirements.

     (2) Property Insurance. Throughout the period prior to any Termination
of LRC’s Work, LRC must also keep all Improvements (including all alterations, additions and
changes made to the Improvements) insured against fire and other casualty under one or more
property insurance policies that satisfy the Minimum Insurance Requirements. LRC must
deliver and maintain with BNPPLC for each property insurance policy required by this
Agreement written confirmation of the policy and the scope of the coverage provided thereby
issued by the applicable insurer or its authorized agent, which confirmation must also
satisfy the Minimum Insurance Requirements. If any of the Property is destroyed or damaged
by fire, explosion, windstorm, hail or by any other casualty against which insurance has
been required hereunder, (i) BNPPLC may, but will not be obligated to, make proof of loss if
not made promptly by LRC after notice from BNPPLC, (ii) each insurance company concerned is
hereby authorized and directed to make payment for such loss directly to BNPPLC for
application as required by Paragraph 5, and (iii) BNPPLC may settle, adjust or compromise
any and all claims for loss, damage or destruction under any policy or policies of insurance
(provided, that so long as no 97-10/Meltdown Event has occurred and no Event of Default has occurred and

 

Construction Agreement (Livermore/ Parcel 7) — Page 18

 

 

is continuing, BNPPLC must provide LRC with at least forty-five days notice of
BNPPLC’s intention to settle any such claim before settling it unless LRC has already
approved of the settlement by BNPPLC). BNPPLC will not in any event or circumstances be
liable or responsible for failure to collect, or to exercise diligence in the collection of,
any insurance proceeds. If any casualty results in damage to or loss or destruction of the Property, LRC must
give prompt notice thereof to BNPPLC and Paragraph 5 will apply.

     (3) Failure of LRC to Obtain Insurance. If LRC fails to obtain any insurance
or to provide confirmation of any insurance as required by this Agreement, BNPPLC will be
entitled (but not required) to obtain the insurance that LRC has failed to obtain or for
which LRC has not provided the required confirmation and, without limiting BNPPLC’s other
remedies under the circumstances, BNPPLC may charge the cost of such insurance against the
Construction Allowance as if it were a Construction Advance paid to LRC as hereinafter
provided.

     (4) Waiver of Subrogation. LRC, for itself and for any Person claiming through
it (including any insurance company claiming by way of subrogation), waives any and every
claim which arises or may arise in its favor against BNPPLC or any other Interested Party
for any and all Losses, to the extent that LRC is compensated by insurance or would be
compensated by the insurance policies contemplated in this Agreement, but for any deductible
or self-insured retention maintained under such insurance or but for a failure of LRC to
maintain the insurance as required by this Agreement. LRC agrees to have such insurance
policies properly endorsed so as to make them valid notwithstanding this waiver, if such
endorsement is required to prevent a loss of insurance.

     (E) Condemnation. Immediately upon obtaining knowledge of the institution of
any proceedings for the condemnation of the Property or any portion thereof, or any other similar
governmental or quasi-governmental proceedings arising out of injury or damage to the Property or
any portion thereof, each party must promptly notify the other (provided, however, BNPPLC will have
no liability for its failure to provide such notice) of the pendency of such proceedings. Prior to
any Termination of LRC’s Work, LRC must, if requested by BNPPLC, diligently prosecute any such
proceedings and consult with BNPPLC, its attorneys and experts and cooperate with them as
reasonably requested in the carrying on or defense of any such proceedings. All proceeds of
condemnation awards or proceeds of sale in lieu of condemnation with respect to the Property and
all judgments, decrees and awards for injury or damage to the Property will be paid to BNPPLC as
Escrowed Proceeds, and all such proceeds will be applied as provided in Paragraph 5. BNPPLC is
hereby authorized, in its own name or in the name of LRC or in the name of both, to settle and
deliver valid acquittances for, or to challenge and to appeal from, any such judgment, decree or
award concerning condemnation of any of the

 

Construction Agreement (Livermore/ Parcel 7) — Page 19

 

 

Property (provided, that so long as no 97-10/Meltdown Event has occurred and no Event of Default has occurred and is continuing, BNPPLC must provide LRC
with at least forty-five days notice of BNPPLC’s intention to settle any such claim before settling
it unless LRC has already approved of the settlement by BNPPLC). BNPPLC will not in any event or
circumstances be liable or responsible for failure to collect, or to exercise diligence in the
collection of, any such proceeds, judgments, decrees or awards.

     (F) Additional Representations, Warranties and Covenants of LRC Concerning the
Property. Without limiting the rights granted to LRC by other provisions of this Agreement to
be reimbursed from Construction Advances for the cost of complying with the following, LRC
represents, warrants and covenants as follows:

     (1) Payment of Local Impositions. Throughout the period prior to any
Termination of LRC’s Work, LRC must pay or cause to be paid prior to delinquency all ad
valorem taxes assessed against the Property and other Local Impositions. If requested by
BNPPLC from time to time, LRC will furnish BNPPLC with receipts or other appropriate
evidence showing payment of all Local Impositions prior to the applicable delinquency date
therefor.

Notwithstanding the foregoing, LRC may in good faith, by appropriate proceedings, contest
the validity, applicability or amount of any asserted Local Imposition, and pending such
contest LRC will not be deemed in default under any of the provisions of this Agreement
because of the Local Imposition if (1) LRC diligently prosecutes such contest to completion
in a manner reasonably satisfactory to BNPPLC, and (2) LRC promptly causes to be paid any
amount adjudged by a court of competent jurisdiction to be due, with all costs, penalties
and interest thereon, promptly after such judgment becomes final; provided, however, in any
event each such contest must be concluded and the contested Local Impositions must be paid
by LRC prior to the earlier of (i) the date that any criminal prosecution is instituted or
overtly threatened against BNPPLC or its directors, officers or employees because of the
nonpayment thereof, or (ii) the date any writ or order is issued under which any property
owned or leased by BNPPLC (including the Property) may be seized or sold or any other action
is taken or overtly threatened against BNPPLC or against any property owned or leased by
BNPPLC because of the nonpayment thereof, or (iii) any Designated Sale Date upon which, for
any reason, LRC or an Affiliate of LRC or any Applicable Purchaser does not purchase
BNPPLC’s interest in the Property pursuant to the Purchase Agreement for a price to BNPPLC
(when taken together with any Supplemental Payment paid by LRC pursuant to the Purchase
Agreement, in the case of a purchase by an Applicable Purchaser) equal to the Break Even
Price.

     (2) Operation and Maintenance. Throughout the period prior to any

 

Construction Agreement (Livermore/ Parcel 7) — Page 20

 

 

Termination of LRC’s Work, LRC must operate and maintain the Property in a good and
workmanlike manner and in compliance with Applicable Laws and Existing Space Leases in all
material respects and pay or cause to be paid all fees or charges of any kind in connection
therewith. (If LRC does not promptly correct any failure of the Property to comply with
Applicable Laws that is the subject of a written complaint or demand for
corrective action given by any Governmental Authority to LRC, or to BNPPLC and
forwarded by it to LRC, then for purposes of the preceding sentence, LRC will be considered
not to have maintained the Property “in compliance with all Applicable Laws in all material
respects” whether or not the noncompliance would be material in the absence of the complaint
or demand.) LRC must not use or occupy, or allow the use or occupancy of, the Property in
any manner which violates any Applicable Law or which constitutes a public or private
nuisance or which makes void, voidable or cancelable any insurance then in force with
respect thereto. Without limiting the generality of the foregoing, LRC must not conduct or
permit others to conduct Hazardous Substance Activities on the Property, except Permitted
Hazardous Substance Use and Remedial Work; and LRC must not discharge or permit the
discharge of anything (including Permitted Hazardous Substances) on or from the Property
that would require any permit under applicable Environmental Laws, other than (1) storm
water runoff, (2) fume hood emissions, (3) waste water discharges through a publicly owned
treatment works, (4) discharges that are a necessary part of any Remedial Work, and (5)
other similar discharges consistent with the definition of Permitted Hazardous Substance Use
which do not significantly increase the risk of Environmental Losses to BNPPLC, in each case
in compliance with Environmental Laws. To the extent that any of the following would,
individually or in the aggregate, increase the likelihood of a 97-10/Meltdown Event or
materially and adversely affect the value of the Property or the use of the Property for
purposes permitted by this Agreement, LRC must not, without BNPPLC’s prior consent: (i)
initiate or permit any zoning reclassification of the Property; (ii) seek any variance under
existing zoning ordinances applicable to the Property; (iii) use or permit the use of the
Property in a manner that would result in such use becoming a nonconforming use under
applicable zoning ordinances or similar laws, rules or regulations; (iv) execute or file any
subdivision plat affecting the Property; or (v) consent to the annexation of the Property to
any municipality. LRC will not cause or permit any drilling or exploration for, or
extraction, removal or production of, minerals from the surface or subsurface of the
Property, and LRC must not do anything that could reasonably be expected to significantly
reduce the market value of the Property. If LRC receives a notice or claim from any federal,
state or other Governmental Authority that the Property is not in compliance with any
Applicable Law, or that any action may be taken against BNPPLC because the Property does not
comply with any Applicable Law, LRC must promptly furnish a copy of such notice or claim to
BNPPLC.

     (3) Debts for Construction, Maintenance, Operation or Development. LRC

 

Construction Agreement (Livermore/ Parcel 7) — Page 21

 

 

must promptly pay or cause to be paid all debts and liabilities incurred by it or its contractors
or subcontractors in the construction, maintenance, operation or development of the
Property. Such debts and liabilities will include those incurred for labor, material and
equipment and all debts and charges for utilities servicing the Property.

     (4) Permitted Encumbrances. LRC must comply with and will cause to be
performed all of the covenants, agreements and obligations imposed upon the owner of
any interest in the Property by the Permitted Encumbrances throughout the period prior to
any Termination of LRC’s Work. LRC must not, without the prior consent of BNPPLC, enter
into, initiate, approve or consent to any modification of any Permitted Encumbrance that
would create or expand or purport to create or expand obligations or restrictions
encumbering BNPPLC’s interest in the Property.

     (5) Books and Records Concerning the Property. LRC must keep books and records
that are accurate and complete in all material respects for LRC’s construction and
management of the Property as contemplated in this Agreement and must permit all such books
and records (including all contracts, statements, invoices, bills and claims for labor,
materials and services supplied for the construction and operation of any Improvements) to
be inspected and copied by BNPPLC during reasonable business hours.

     (G) BNPPLC’s Right of Access.

     (1) Access Generally. BNPPLC and BNPPLC’s representatives may enter the
Property at any time after reasonable prior notice to LRC for the purpose of making
inspections or performing any work BNPPLC is authorized to undertake by the next
subparagraph or for the purpose of confirming whether LRC has complied with the requirements
of this Agreement or the other Operative Documents.

     (2) Failure of LRC to Perform. If LRC fails to perform any act or to
take any action required of it by this Agreement or other Operative Documents, or to pay any
money which LRC is required by this Agreement or other Operative Documents to pay, then in
addition to any other remedies specified herein or otherwise available, BNPPLC may, perform
or cause to be performed such act or take such action or pay such money. (To the extent that
expenses so incurred by BNPPLC, or money so paid by BNPPLC, qualify as Covered Construction
Period Losses, LRC must pay the same to BNPPLC upon demand. If any such expenses incurred
or money paid do not qualify as Covered Construction Period Losses, they will be included -
with interest — in the Balance of Unpaid Covered Construction Period Losses under and as
defined in the Purchase Agreement.) Further, BNPPLC, upon making such payment, will be
subrogated to all of the rights of the person, corporation or body politic receiving such
payment. But nothing herein will imply any duty upon the part of BNPPLC to do any work
which, under any

 

Construction Agreement (Livermore/ Parcel 7) — Page 22

 

 

provision of this Agreement or otherwise, LRC may be required to perform, and the performance thereof by BNPPLC will not constitute a waiver of LRC’s default. BNPPLC
may during the progress of any such work permitted by BNPPLC hereunder on or in the Property
keep and store upon the Property all necessary materials, tools, and equipment. BNPPLC will
not in any event be liable for inconvenience, annoyance, disturbance, loss of business, or
other damage to LRC or its invitees by reason of BNPPLC’s performance
of any such work, or on account of bringing materials, supplies and equipment into or
through the Property during the course of such work, and the obligations of LRC under this
Agreement and the other Operative Documents will not thereby be excused in any manner.

3 Amounts to be Added to the Lease Balance (in Addition to Construction Advances).

     (A) Initial Advance. Upon execution and delivery of this Agreement by BNPPLC, an
advance (the “Initial Advance”) will be made by BNPPLC to cover the (i) purchase price for the
Property due pursuant to the Existing Contract, and (ii) certain Transaction Expenses and other
amounts described in this subparagraph. The amount of the Initial Advance, which will be included
in the Lease Balance, may be confirmed by a separate closing certificate executed by LRC as of the
Effective Date. An arrangement fee of as provided in the Closing Letter (the “Arrangement Fee”) and
an initial administrative agency fee of as provided in the Closing Letter (an “Administrative Fee”)
will all be paid from the Initial Advance (and thus be included in the Lease Balance). To the
extent that BNPPLC does not itself use the entire the Initial Advance to pay the purchase price for
the Property or Transaction Expenses incurred by BNPPLC, the remainder thereof will be advanced to
LRC, with the understanding that LRC will use any such amount advanced for one or more of the
following purposes: (1) the reimbursement of any earnest money or other escrow or deposits funded
by LRC under the Existing Contract, to the extent (if any) that such escrow or deposits are applied
against the purchase price due to the Prior Owner rather than returned to LRC; (2) the payment or
reimbursement of Transaction Expenses incurred by LRC and “soft costs” incurred by LRC in
connection with the acquisition of the Property or the planning, design, engineering, construction
and permitting of the Construction Project; or (3) the payment of other amounts due pursuant to the
Operative Documents. (Before executing the separate closing certificate to confirm the Initial
Advance, LRC will make a reasonable effort to determine all prior deposits made and expenses
incurred by it as described in clauses (1) and (2) of the preceding sentence and to request an
Initial Advance sufficient in amount to cover all such deposits and expenses in addition to the net
purchase price payable by BNPPLC to the Prior Owner, the Arrangement Fee, the initial
Administrative Fee and all Transaction Expenses incurred by BNPPLC. However, no failure by LRC to
identify and include all such deposits and expenses in the amount of the requested Initial Advance
will preclude LRC from requesting reimbursement for the same through a subsequent Construction

 

Construction Agreement (Livermore/ Parcel 7) — Page 23

 

 

Advance as provided in Paragraph 4. Reimbursable Construction Period Costs to be paid or
reimbursed pursuant to Paragraph 4 will not be limited to those incurred after the Effective Date.)

     (B) Carrying Costs. For each Construction Period certain charges (“Carrying Costs”)
will accrue and be added to the Outstanding Construction Allowance on the last day of such
Construction Period (i.e., generally on the Advance Date upon which such Construction Period ends).
If, however, for any reason the Lease Balance (and thus the Outstanding Construction Allowance
included as a component thereof) must be determined as of any date between Advance Dates, the
Outstanding Construction Allowance determined on such date will include not only Carrying Costs
added on or before the immediately preceding Advance Date computed as described below, but also
Carrying Costs accruing on and after such preceding Advance Date to but not including the date in
question. Carrying Costs accruing for any Construction Period will be equal to:

	 	•	 	the amount equal on the first day of such Construction Period to the
Lease Balance, times
	 
	 	•	 	the sum of LIBOR and the Secured Spread for such Construction Period,
times
	 
	 	•	 	a fraction, the numerator of which is the number of days in such
Construction Period and the denominator of which is three hundred sixty.

     (C) Commitment Fees. For each Construction Period additional charges (“Commitment
Fees”) will accrue and be added to the Outstanding Construction Allowance on the last day of such
Construction Period (i.e., generally on the Advance Date upon which such Construction Period ends).
If, however, for any reason the Lease Balance (and thus the Outstanding Construction Allowance
included as a component thereof) must be determined as of any date between Advance Dates, the
Outstanding Construction Allowance determined on such date will include not only Commitment Fees
added on or before the immediately preceding Advance Date computed as described below, but also
Commitment Fees accruing on and after such preceding Advance Date to but not including the date in
question. Commitment Fees for each Construction Period will be computed as follows:

	 	•	 	twenty basis points (20/100 of 1%), times an amount equal to:
	 
	 	 	 	(1)   the Maximum Construction Allowance, less
	 
	 	 	 	(2)   the Funded Construction Allowance on the first day of such Construction
Period; times

 

Construction Agreement (Livermore/ Parcel 7) — Page 24

 

 

	 	•	 	the number of days in such Construction Period; divided by
	 
	 	•	 	three hundred sixty.

     (D) Future Administrative Fees and Out-of-Pocket Costs. If the Completion Date
does not occur prior to the first anniversary of the Effective Date, then on each anniversary of
the Effective Date prior to the Completion Date, an annual administrative agency fee (also, an
“Administrative Fee”) of the amount specified in the Closing Letter will be added to the
Outstanding Construction Allowance by BNPPLC in the amount provided in the Term Sheet. Also, to
the extent that BNPPLC incurs any out-of-pocket costs prior to the Completion Date with respect to
the administration of or performance of its obligations under this Agreement or other Operative
Documents (e.g., any Attorneys’ Fees or other costs incurred to evaluate lien releases and other
information submitted by LRC with requests for Construction Advances), BNPPLC may add such costs to
the Outstanding Construction Allowance from time to time.

     (E) Increased Cost Charges and Capital Adequacy Charges.

     (1) If after the Effective Date and prior to the Completion Date there is any increase
in the cost to BNPPLC’s Parent or any Participant of agreeing to make or making, funding or
maintaining advances to BNPPLC in connection with the Property because of any Banking Rules
Change, then BNPPLC may agree or become obligated to pay to BNPPLC’s Parent or such
Participant, as the case may be, additional amounts (“Increased Cost Charges”) sufficient to
compensate BNPPLC’s Parent or the Participant for such increased costs. Any Increased Cost
Charges paid by BNPPLC or for which BNPPLC becomes obligated to pay, prior to the Completion
Date, will be added to the Outstanding Construction Allowance by BNPPLC.

     (2) BNPPLC’s Parent or any Participant may demand additional payments (“Capital
Adequacy Charges”) if BNPPLC’s Parent or the Participant determines that any Banking Rules
Change affects the amount of capital to be maintained by it and that the amount of such
capital is increased by or based upon the existence of advances made or to be made to BNPPLC
to permit BNPPLC to maintain BNPPLC’s investment in the Property or to make Construction
Advances. To the extent that BNPPLC’s Parent or a Participant provides a certificate or
notice to BNPPLC and to LRC demanding Capital Adequacy Charges as compensation for the
additional capital requirements reasonably allocable to such investment or advances, and
BNPPLC pays or becomes obligated to pay to BNPPLC’s Parent or such Participant the amount so
demanded prior to the Completion Date, such amount will also be added to the Outstanding
Construction Allowance by BNPPLC; provided, however, such certificate or notice must set
forth the nature of the occurrence giving rise to such demand, the amount of the Capital
Adequacy Charge to be

 

Construction Agreement (Livermore/ Parcel 7) — Page 25

 

 

paid, and the method by which such amount was determined. Any such certificate or notice will conclusive and binding upon LRC, absent clear and demonstrable
error. In determining the amount of any Capital Adequacy Charges, BNPPLC’s Parent or any
Participant may use any reasonable averaging and attribution method, applied on a
non-discriminatory basis.

     (3) Notwithstanding the foregoing provisions of this subparagraph 3(E), the
Outstanding Construction Allowance will not be increased, over the objection of LRC, by
reason of any claim for compensation made as provided in this subparagraph 3(E) that arises
or accrues (a) as a result of any change in the rating assigned to BNPPLC’s Parent or any
Participant (or its parent) making the claim by rating agencies or bank regulators in regard
to BNPPLC’s Parent’s or such Participant’s (or its parent’s) creditworthiness, record
keeping or failure to comply with Applicable Laws (including U.S. banking regulations
applicable to subsidiaries of a bank holding company), or (b) more than nine months prior to
the date LRC is notified of the intent of BNPPLC’s Parent or such Participant to make a
claim for such charges; provided, that if the Banking Rules Change which results in a claim
for compensation is retroactive, then the nine month period will be extended to include the
period of the retroactive effect of such Banking Rules Change. Further, BNPPLC will cause
BNPPLC’s Parent to use, and will ask any Participant to use, commercially reasonable efforts
to reduce or eliminate any claim for compensation described in this subparagraph 3(E),
including a change in the office of BNPPLC’s Parent or the Participant, as the case may be,
through which it provides and maintains Funding Advances if such change will avoid the need
for, or reduce the amount of, such compensation and will not, in the reasonable judgment of
BNPPLC’s Parent or such Participant, be otherwise disadvantageous to it. Nothing in this
subparagraph will be construed to require BNPPLC’s Parent or any Participant to create any
new office through which to make or maintain Funding Advances..

4 Construction Advances.

     (A) Costs Subject to Reimbursement Through Construction Advances. Subject to the terms
and conditions set forth herein, LRC will be entitled to a Construction Allowance, from which
BNPPLC will make Construction Advances on Advance Dates from time to time to pay or reimburse LRC
for the following costs (“Reimbursable Construction Period Costs”) to the extent the following
costs are not already included in Transaction Expenses paid by BNPPLC from the Initial Advance:

     (1) the actual costs and expenses incurred or paid by LRC for the preparation,
negotiation and execution of this Agreement and the other Operative Documents;

 

Construction Agreement (Livermore/ Parcel 7) — Page 26

 

 

     (2) costs of the Work, including not only hard costs incurred for the new Improvements
described in Exhibit B, but also the following costs to the extent reasonably
incurred in connection with the Construction Project:

	 	•	 	soft costs payable to third parties (whether or not incurred prior
to the Effective Date), such as legal fees, architectural fees, engineering
fees, construction management fees, transaction management fees and fees and
costs paid in connection with obtaining project permits and approvals
required by Governmental Authorities or any of the Permitted Encumbrances,
	 
	 	•	 	site preparation costs, and
	 
	 	•	 	costs of offsite and other public improvements required as conditions of
governmental approvals for the Construction Project;

     (3) the cost of title insurance in favor of BNPPLC and of maintaining other insurance
required by (and consistent with the requirements of) this Agreement prior to the Completion
Date, and costs of repairing any damage to the Improvements caused by a Pre-lease Casualty
to the extent such costs are not covered by Escrowed Proceeds made available to LRC as
provided herein prior to the Completion Date;

     (4) Local Impositions that accrue or become due prior to the Completion Date;

     (5) reasonable and ordinary out-of-pocket costs of operating and maintaining the
Property prior to the Completion Date in accordance with the requirements of this Agreement;
and

     (6) Third Party Contract/Termination Fees, not to exceed in the aggregate ten percent
(10%) of the Maximum Construction Allowance, payable by LRC in connection with any Third
Party Contract between LRC and a Person not an Affiliate of LRC because of any election by
LRC to cancel or terminate such contract during a Work/Suspension Period.

 

Construction Agreement (Livermore/ Parcel 7) — Page 27

 

 

     (B) Exclusions From Reimbursable Construction Period Costs. Notwithstanding anything
herein to the contrary, BNPPLC will not be required to make any Construction Advance to pay or to
reimburse or compensate LRC for Covered Construction Period Losses paid by LRC as provided in
subparagraph 9(A) or for any of the following Losses which may be incurred by LRC or any other
party:

     (1) Environmental Losses;

     (2) Losses that would not have been incurred but for any affirmative act taken by LRC
or by any of LRC’s contractors or subcontractors, which act is contrary to the terms and
conditions of this Agreement or the other Operative Documents (e.g.,
undertaking a Scope Change without prior authorization of BNPPLC);

     (3) Losses that would not have been incurred but for any fraud, misapplication
of Construction Advances or other funds, illegal acts or willful misconduct on the part of
LRC or its employees or of any other party acting under LRC’s control or with the approval
or authorization of LRC; and

     (4) Losses that would not have been incurred but for any bankruptcy proceeding
involving LRC as the debtor.

     (C) Conditions to LRC’s Right to Receive Construction Advances. BNPPLC’s obligation to
provide Construction Advances to LRC from time to time under this Agreement will be subject to the
following terms and conditions, all of which terms and conditions are intended for the sole benefit
of BNPPLC, and none of which will limit in any way the right of BNPPLC to treat costs or
expenditures incurred or paid by or on behalf of BNPPLC as Construction Advances pursuant to
subparagraph 8(A):

     (1) Construction Advance Requests. LRC must make a written request (a
“Construction Advance Request”) for any Construction Advance, specifying the amount of such
advance, at least five Business Days prior to the Advance Date upon which the advance is to
be paid. To be effective for purposes of this Agreement, a Construction Advance Request must
be in substantially the form attached as Exhibit C. LRC will not submit more than
one Construction Advance Request in any calendar month.

 

Construction Agreement (Livermore/ Parcel 7) — Page 28

 

 

     (2) Amount of the Advances.

     (a) The Maximum Construction Allowance. LRC will not be entitled to
require any Construction Advance that would cause the Funded Construction Allowance
to exceed the Maximum Construction Allowance or that would increase the amount of
any such excess.

     (b) Costs Previously Incurred by LRC. LRC will not be entitled to
require any Construction Advance that would cause the aggregate of all Construction
Advances to exceed the sum of:

     (i) Reimbursable Construction Period Costs that LRC has, to the
reasonable satisfaction of BNPPLC, substantiated as having been paid or
incurred by LRC other than for Work (e.g., Local Impositions), plus

     (ii) the Reimbursable Construction Period Costs that LRC has, to
the reasonable satisfaction of BNPPLC, substantiated as having been
paid or incurred for Prior Work as of the date of the Construction Advance
Request in which LRC requests the advance.

As used in this Agreement, “Prior Work” means all labor and services actually
performed, and all materials actually delivered to the construction site, as part of
the Work in accordance with this Agreement prior to the date in question, and
“Future Work” means labor and services performed or to be performed, and materials
delivered or to be delivered, as part of the Work on or after the date in question.
For purposes of this Agreement, LRC and BNPPLC intend to allocate Reimbursable
Construction Period Costs between Prior Work and Future Work in a manner that is
generally consistent with the allocations expressed or implied in
construction-related contracts negotiated in good faith between LRC and third
parties not affiliated with LRC (e.g., a construction contractor engaged by LRC);
however, in order to verify the amount of Reimbursable Construction Period Costs
actually paid or incurred by LRC and the proper allocation thereof between Prior
Work and Future Work, BNPPLC will be entitled (but not required) to: (x) request,
receive and review copies of such agreements between LRC and third parties and of
draw requests, budgets or other supporting documents provided to LRC in connection
with or pursuant to such agreements as evidence of the allocations expressed or
implied therein, (y) from time to time engage one or more independent inspecting
architects, certified public accountants or other appropriate professional
consultants and, absent manifest error, rely without further investigation upon
their reports and recommendations, and (z) without waiving BNPPLC’s right to
challenge or verify allocations required with respect

 

Construction Agreement (Livermore/ Parcel 7) — Page 29

 

 

to future Construction Advances, rely without investigation upon the accuracy of LRC’s own Construction
Advance Requests.

     (c) Limits During any Work/Suspension Period. Without limiting the
other terms and conditions imposed by this Agreement for the benefit of BNPPLC with
respect all Construction Advances, BNPPLC will have no obligation to make any
Construction Advance during any Work/Suspension Period that would cause the
aggregate of all Construction Advances to exceed the sum of:

     (i) Reimbursable Construction Period Costs that LRC has, to the
reasonable satisfaction of BNPPLC, substantiated as having been paid or
incurred by LRC other than for Work (e.g., Local Impositions), plus

     (ii) the Reimbursable Construction Period Costs that LRC has, to the
reasonable satisfaction of BNPPLC, substantiated as having been paid or
incurred for Prior Work as of the date the Work/Suspension Period
commenced.

For purposes of computing the limits described in this subparagraph
4(C)(2)(c), Reimbursable Construction Period Costs “other than for Work” will
include Third Party Contract/Termination Fees that qualify as Reimbursable
Construction Period Costs pursuant to subparagraph 4(A)(6). However, as provided in
subparagraph 4(A)(6), the amount of such Third Party Contract/Termination Fees
subject to reimbursement will not in any event exceed ten percent (10%) of the
Maximum Construction Allowance. If LRC fails to manage and administer Third Party
Contracts as necessary to ensure that LRC can (at any point in time) terminate all
such contracts without becoming liable for Third Party Contract/Termination Fees in
excess of ten percent (10%) of the Maximum Construction Allowance, then the excess
will be the responsibility of LRC.

     (d) Restrictions Imposed for Administrative Convenience. LRC will not
request any Construction Advance (other than the final Construction Advance LRC
intends to request) for an amount less than $1,000,000.

     (3) No Advances After Certain Dates. BNPPLC will have no obligation to make any
Construction Advance (x) after the last Advance Date, (y) on or after the Designated Sale
Date, or (z) on or after the effective date of any Termination of LRC’s Work pursuant to
subparagraph 7(B) or subparagraph 7(C).

     (D) Breakage Costs for Construction Advances Requested But Not Taken. If LRC requests
but thereafter declines to accept any Construction Advance, or if LRC requests a

 

Construction Agreement (Livermore/ Parcel 7) — Page 30

 

 

Construction Advance that it is not permitted to take because of its failure to satisfy any of the conditions
specified in subparagraph 4(C), BNPPLC will be entitled to add any resulting Breakage Costs to the
Outstanding Construction Allowance and the Lease Balance.

     (E) No Third Party Beneficiaries. No contractor or other third party will be entitled
to require BNPPLC to make advances as a third party beneficiary of this Agreement, and nothing
contained herein or in any of the other Operative Documents will be construed as an agreement
obligating BNPPLC to make advances to anyone other than LRC itself.

     (F) No Waiver. No funding of Construction Advances and no failure of BNPPLC to object
to any Work proposed or performed by or for LRC will constitute a waiver by BNPPLC of the
requirements contained in this Agreement.

5 Application of Insurance and Condemnation Proceeds.

     (A) Collection and Application Generally. This Paragraph 5 will govern the
application of proceeds received by BNPPLC or LRC from any third party prior to the commencement of
the Term of the Lease (1) under any property insurance policy as a result of damage to the Property
(including proceeds payable under any insurance policy covering the Property which is maintained by
LRC), (2) as compensation for any restriction placed upon the use or development of the Property or
for the condemnation of the Property or any portion thereof, or (3) because of any judgment, decree
or award for injury or damage to the Property (e.g., damage resulting from a third party’s release
of Hazardous Materials onto the Property); excluding, however, any funds paid to BNPPLC by BNPPLC’s
Parent, by another Affiliate of BNPPLC or by any Participant that is made to compensate BNPPLC for
any Losses BNPPLC may suffer or incur in connection with this Agreement or the Property. LRC will
promptly pay over to BNPPLC any insurance, condemnation or other proceeds covered by this Paragraph
5 which LRC may receive from any insurer, condemning authority or other third party. All proceeds
covered by this Paragraph 5, including those received by BNPPLC from LRC or third parties, will be
applied as follows:

     (1) First, proceeds covered by this Paragraph 5 will be used to reimburse BNPPLC for
any Attorneys’ Fees or other reasonable expenses that BNPPLC incurred to collect the
proceeds.

     (2) Second, the proceeds remaining after such reimbursement to BNPPLC (the “Remaining
Proceeds”) will be applied, as hereinafter more particularly provided, either as a Qualified
Prepayment or to pay or reimburse LRC or BNPPLC for the actual out-of-pocket costs of
repairing or restoring the Property. Until any Remaining Proceeds received by BNPPLC are
applied by BNPPLC as a Qualified Prepayment or applied by

 

Construction Agreement (Livermore/ Parcel 7) — Page 31

 

 

BNPPLC to reimburse costs of repairs to or restoration of the Property pursuant to this Paragraph 5, BNPPLC will hold and
maintain such Remaining Proceeds as Escrowed Proceeds in an interest bearing account, and
all interest earned on such account will be added to and made a part of such Escrowed
Proceeds.

     (B) Advances of Escrowed Proceeds to LRC. Except as otherwise provided below in this
Paragraph 5, prior to the Completion Date BNPPLC will hold all such Remaining Proceeds as Escrowed
Proceeds until they are advanced to reimburse LRC for the actual out-of-pocket cost to LRC of
repairing or restoring the Property in accordance with the requirements of this Agreement. BNPPLC
will so advance the Escrowed Proceeds as the applicable repair or restoration progresses and upon
compliance by LRC with such conditions and requirements as may be reasonably imposed by BNPPLC,
including conditions and requirements similar to those that set forth herein for the payment of
Construction Advances. In no event, however, will BNPPLC be required to pay Escrowed Proceeds to
LRC in excess of the actual out-of-pocket cost to LRC of the applicable repair, restoration or
replacement, as evidenced by invoices or other documentation reasonably satisfactory to BNPPLC.

     (C) Status of Escrowed Proceeds After Commencement of the Term of the Lease.
Any Remaining Proceeds governed by this Paragraph 5 which BNPPLC is continuing to hold as Escrowed
Proceeds when the Term of the Lease commences will be applied in accordance with the terms and
conditions of the Lease as if received by BNPPLC immediately after the Term commenced.

     (D) Special Provisions Applicable After a 97-10/Meltdown Event or Event of Default.
Notwithstanding the foregoing, after any 97-10/Meltdown Event and when any Event of Default has
occurred and is continuing, BNPPLC will be entitled to receive and collect all insurance,
condemnation or other proceeds governed by this Paragraph 5 and to apply all Remaining Proceeds,
when and in such order and to such extent deemed appropriate by BNPPLC in its sole discretion,
either (A) to the reimbursement of LRC or BNPPLC for the out-of-pocket cost of repairing or
restoring the Property, or (B) as Qualified Prepayments.

     (E) LRC’s Obligation to Restore. Regardless of the adequacy of any Remaining Proceeds
available to LRC hereunder, if the Property is damaged by fire or other casualty or any part of the
Property is taken by eminent domain, LRC must to the maximum extent possible, as part of the Work,
restore the Property or the remainder thereof and continue construction of the Construction Project
on and subject to the terms and conditions set forth in this Agreement; provided, however, like
other Work, any such restoration and continuation of construction by LRC will be subject to
subparagraphs 7(A) and 7(B), which establish certain rights of LRC to suspend or discontinue any
Work; and, provided further, any additional costs required to complete the Construction Project
resulting from such a casualty or taking prior to the Completion Date will, to the extent not
covered by Remaining Proceeds paid to LRC as provided

 

Construction Agreement (Livermore/ Parcel 7) — Page 32

 

 

herein, be subject to reimbursement by BNPPLC as Reimbursable Construction Period Costs on the same terms and conditions that apply to
reimbursements of other costs of the Work hereunder.

     (F) Special Provisions Concerning a Complete Taking. LRC may react to any threat of a
Complete Taking from a Governmental Authority by exercising LRC’s right to accelerate the
Designated Sale Date (as provided in the definition thereof) and by exercising the Purchase Option
under the Purchase Agreement. By so doing, LRC will put itself in a position to control
condemnation proceedings and to receive all proceeds of the Complete Taking. If, however, LRC does
not buy the Property pursuant to the Purchase Agreement prior to any Complete Taking, then BNPPLC
will be entitled to receive and retain all amounts paid for the Property in connection with the
Complete Taking, notwithstanding any contrary provision herein or in the other Operative Documents
and notwithstanding that such proceeds may exceed the Lease Balance.

     (G) Preservation of LRC’s Right to Receive Construction Advances.
Notwithstanding
the foregoing, nothing in this Paragraph 5 (including limitations upon LRC’s rights to receive
insurance or condemnation proceeds) is intended to limit or impair LRC’s rights, on and subject to
the terms and conditions set forth in Paragraph 4, to receive Construction Advances as
reimbursement for Reimbursable Construction Period Costs.

6 Notice of Cost Overruns and Pre-lease Force Majeure Events.

     (A) Notice of Projected Cost Overruns. If, at the time LRC submits any Construction
Advance Request, LRC believes for any reason (including any damage to the Property by fire or other
casualty or any taking of any part of the Property by eminent domain) that Projected Cost Overruns
are more likely than not, LRC must state such belief in the Construction Advance Request and, if
LRC can reasonably do so, LRC will estimate the approximate amount of such Projected Cost Overruns.

     (B) Pre-lease Force Majeure Event Events and Notices. LRC may from time to time
provide a notice to BNPPLC in the form attached as Exhibit D (a “Pre-lease Force Majeure
Event Notice”), describing any Pre-lease Force Majeure Event that has occurred or commenced within
the 30 days prior to such notice and setting forth LRC’s preliminary good faith estimate of any
Pre-lease Force Majeure Delays, Pre-lease Force Majeure Losses and Pre-lease Force Majeure Excess
Costs that are likely to result from such event. BNPPLC will have the option to respond to any
Pre-lease Force Majeure Event Notice with an FOCB Notice or, alternatively and if applicable, with
an Increased Commitment as provided in subparagraph 7(B)(6).

 

Construction Agreement (Livermore/ Parcel 7) — Page 33

 

 

7 Suspension and Termination of LRC’s Work.

     (A) Rights and Obligations During a Work/Suspension Period. During any Work/Suspension
Period, LRC will have the right to suspend the Work; however, the obligations of LRC which are to
survive any Termination of LRC’s Work as provided in subparagraph 7(D) will continue and survive
during any Work/Suspension Period.

     (B) LRC’s Election to Terminate LRC’s Work. LRC may elect to terminate its rights and
obligations to continue Work at any time prior to the Completion Date if at such time LRC believes
in good faith that a Timing or Budget Shortfall exists. To be effective, however, any such
election by LRC must be made in accordance with the following provisions:

     (1) Any such election by LRC to terminate its rights and obligations to continue the
Work must be made by notice to BNPPLC in the form of Exhibit E (a “Notice of
Termination by LRC”).

     (2) At least forty-five days before giving any such Notice of Termination by
LRC, LRC must give a notice of LRC’s intent to terminate to BNPPLC in the form of
Exhibit F (a “Notice of LRC’s Intent to Terminate”), and the Notice of LRC’s Intent
to Terminate must state the reasons, in LRC’s good faith determination, for the Timing or
Budget Shortfall.

     (3) Without limiting the forgoing, prior to giving any Notice of Termination by LRC
predicated upon LRC’s belief that the remaining available Construction Allowance will not be
sufficient only because of Pre-lease Force Majeure Excess Costs incurred or anticipated as a
result of a Pre-lease Force Majeure Event, LRC must — after having notified BNPPLC of the
such event by the delivery of a Pre-lease Force Majeure Event Notice in accordance with
subparagraph 6(B) — expressly set forth such belief in the Notice of LRC’s Intent to
Terminate as indicated in Exhibit F. In any such Notice of LRC’s Intent to
Terminate, LRC must also specify its good faith estimate of the Pre-lease Force Majeure
Excess Costs likely to be incurred (“LRC’s Estimate of Force Majeure Excess Costs”).

     (4) Similarly, prior to giving any Notice of Termination by LRC predicated upon LRC’s
belief that the Work will not be substantially complete before the Target Completion Date
only because of Pre-lease Force Majeure Delays resulting from a Pre-lease Force Majeure
Event, LRC must — after having notified BNPPLC of such event by the delivery of a Pre-lease
Force Majeure Event Notice in accordance with subparagraph 6(B) — expressly set forth such
belief in the Notice of LRC’s Intent to Terminate as indicated in Exhibit F. In any
such Notice of LRC’s Intent to Terminate, LRC must also specify its good faith estimate of
the Pre-lease Force Majeure Delays

  

Construction Agreement (Livermore/ Parcel 7) — Page 34

 

 

likely to occur (“LRC’s Estimate of Force Majeure Delays”).

     (5) As used herein, a “Notice of LRC’s Intent to Terminate Because of a Force Majeure
Event” means any Notice of LRC’s Intent to Terminate that sets forth LRC’s belief, by the
optional provisions contemplated in Exhibit F, that either or both: (a) the
remaining available Construction Allowance will not be sufficient only because of Pre-lease
Force Majeure Excess Costs incurred or anticipated as a result of a Pre-lease Force Majeure
Event, or (b) the Work will not be substantially complete before the Target Completion Date
only because of Pre-lease Force Majeure Delays resulting from a Pre-lease Force Majeure
Event. Should any Termination of LRC’s Work occur before LRC sends a Notice of LRC’s Intent
to Terminate Because of a Force Majeure Event (in accordance with this subparagraph and in
the form attached as Exhibit F), such Termination of LRC’s Work will, for purposes
of determining whether any 97-10/Prepayment may be required pursuant to Paragraph 8, be
conclusively presumed to have occurred for reasons other than a Pre-lease Force Majeure
Event.

     (6) After receipt of any Notice of LRC’s Intent to Terminate and before receipt of a
Notice of Termination by LRC, BNPPLC may, but will not be obligated to, respond to LRC with
certain commitments as follows (such a response being hereinafter called an “Increased
Commitment”):

     (a) In the case of a Notice of Intent to Terminate Because of a Force
Majeure Event which expresses LRC’s belief that the remaining available Construction
Allowance will not be sufficient only because of Pre-lease Force Majeure Excess
Costs, BNPPLC may respond with a written commitment to increase the Construction
Allowance (an “Increased Funding Commitment”) by an amount at least equal to LRC’s
Estimate of Force Majeure Excess Costs as set forth in such Notice of LRC’s Intent
to Terminate. Any such Increased Funding Commitment may be in the form of
Exhibit G.

     (b) In the case of a Notice of Intent to Terminate Because of a Force Majeure
Event which expresses LRC’s belief that the Work will not be substantially complete
before the Target Completion Date only because of Pre-lease Force Majeure Delays,
BNPPLC may respond with a written commitment to extend the Target Completion Date
(an “Increased Time Commitment”) by at least the number of days included in LRC’s
Estimate of Force Majeure Delays as set forth in such Notice of LRC’s Intent to
Terminate. Any such Increased Time Commitment may be in the form of Exhibit
H.

     (c) In the case of a Notice of Intent to Terminate Because of a Force Majeure
Event which expresses LRC’s belief that both (i) the remaining available
Construction Allowance will not be sufficient only because of Pre-lease Force

   

Construction Agreement (Livermore/ Parcel 7) — Page 35

 

 

Majeure Excess Costs and (ii) the Work will not be substantially complete
before the Target Completion Date only because of Pre-lease Force Majeure Delays,
BNPPLC may respond with both an Increased Funding Commitment and an Increased Time
Commitment as provided in the preceding subparagraphs (a) and (b).

     (d) In the case of a Notice of Intent to Terminate which is not a Notice of
Intent to Terminate Because of a Force Majeure Event (and thus not covered by any of
the preceding subparagraphs (a) through (c)), BNPPLC may require LRC to promptly
provide a good faith estimate of the minimum Increased Funding Commitment or
Increased Time Commitment (or both) reasonably required to eliminate the reasons for
LRC’s delivery of the Notice of Intent to Terminate. After receipt of LRC’s good
faith estimate, BNPPLC may respond with an Increased Funding Commitment or Increased
Time Commitment (or both) consistent with such estimate.

     (7) If BNPPLC does respond to a Notice of LRC’s Intent to Terminate with an
Increased Commitment, LRC will be entitled to, and will not unreasonably refuse to, rescind
such Notice of LRC’s Intent to Terminate within ten days after receipt of such Increased
Commitment. To be effective, any such rescission must be by notice to BNPPLC in the form of
Exhibit I. In any event, except as provided in the next subparagraph, the failure
of LRC to so rescind any Notice of LRC’s Intent to Terminate within ten days after receipt
of the Increased Commitment will, for purposes of determining whether any 97-10/Prepayment
may be required pursuant to Paragraph 8, create a conclusive presumption that any
Termination of LRC’s Work after the date of such response was made for reasons other than a
Pre-lease Force Majeure Event.

     (8) For the avoidance of doubt, BNPPLC acknowledges that LRC’s rescission of any Notice
of LRC’s Intent to Terminate (including any Notice of LRC’s Intent to Terminate Because of a
Force Majeure Event) after receipt of an Increased Commitment as described in the preceding
subsection will not preclude LRC from subsequently exercising its rights under this
subparagraph 7(B) in the event LRC subsequently believes in good faith that a Timing or
Budget Shortfall exists.

Thus, for example, if LRC rescinds a Notice of LRC’s Intent to Terminate Because of a Force
Majeure Event after receiving an Increased Commitment from BNPPLC, but subsequently
determines that such Increased Commitment is insufficient (through no fault of LRC or its
employees or any other party acting under LRC’s control or with the approval or
authorization of LRC) to rectify the Timing or Budget Shortfall which caused LRC to send
such notice, then LRC may deliver a second Notice of LRC’s Intent to Terminate Because of a
Force Majeure Event, and in response thereto BNPPLC may

   

Construction Agreement (Livermore/ Parcel 7) — Page 36

 

 

elect
to provide yet another Increased Commitment. Moreover, such process may be repeated any
number of times, in each case without causing LRC to lose its right to subsequently invoke
this subparagraph 7(B) and send yet another Notice of LRC’s Intent to Terminate (including
another Notice of LRC’s Intent to Terminate Because of a Force Majeure Event).

     (9) Notwithstanding the foregoing, in the event of a Complete Taking, LRC may deliver a
Notice of LRC’s Intent to Terminate Because of a Force Majeure Event that explains the
futility of continuing with the Construction Project on the Land regardless of any
willingness of BNPPLC to approve or consider Scope Changes or an Increased Commitment, and
no offer by BNPPLC of an Increased Commitment after a Complete Taking will preclude a
“Termination of LRC’s Work Because of a Pre-lease Force Majeure Event” for the purposes of
determining whether LRC must pay a 97-10/Prepayment pursuant to Paragraph 8.

     (C) BNPPLC’s Election to Terminate LRC’s Work. By notice to LRC BNPPLC may elect to
terminate LRC’s rights and obligations to continue the Work at any time (i) more than thirty days
after BNPPLC has given an FOCB Notice to LRC, or (ii) after BNPPLC’s receipt of a Notice of LRC’s
Intent to Terminate and before an election by LRC to rescind the same as described in subparagraph
7(B)(7).

     (D) Surviving Rights and Obligations. Following any Termination of LRC’s Work
as provided in subparagraph 7(B) or in 7(C), LRC will have no obligation to continue or complete
any Work; however, no such Termination of LRC’s Work will reduce or excuse the following rights and
obligations of the parties, it being intended that all such rights and obligations will survive and
continue after any Termination of LRC’s Work:

     (1) LRC’s obligations described in the next subparagraph 7(E);

     (2) any obligations of LRC under the other Operative Documents by reason of any
misrepresentation or other act or omission of LRC that occurred prior to the Termination of
LRC’s Work or during any subsequent period in which LRC does not relinquish possession or
control of the Construction Project; and

     (3) LRC’s obligations to indemnify BNPPLC as set forth in subparagraph 9(A) (which are
to some extent, as more particularly provided therein, limited to Losses resulting or
arising from events or circumstances that existed or occurred or are alleged to have existed
or occurred prior to the Termination of LRC’s Work or during any subsequent period in which
LRC does not relinquish possession or control of the Construction Project, whether such
Losses are asserted, suffered or paid before or after the Termination of LRC’s Work).

   

Construction Agreement (Livermore/ Parcel 7) — Page 37

 

 

     (E) Cooperation After a Termination of LRC’s Work. After any Termination of LRC’s
Work as provided in subparagraph 7(B) or subparagraph 7(C), LRC must comply with the following
terms and conditions, all of which will survive notwithstanding any such termination:

     (1) LRC must promptly deliver copies to BNPPLC of all Third Party Contracts and
purchase orders made by LRC in the performance of or in connection with the Work, together
with all plans, drawings, specifications, bonds and other materials relating to the Work in
LRC’s possession, including all papers and documents relating to governmental permits,
orders placed, bills and invoices, lien releases and financial management under this
Agreement. All such deliveries must be made free and clear of any liens, security interests,
or encumbrances, except such as may be created by the Operative Documents.

     (2) Promptly after any request from BNPPLC made with respect to any Third Party
Contract, LRC must deliver a letter confirming: (i) whether LRC has performed any act or
executed any other instrument which invalidates or modifies such contract in whole or in
part (and, if so, the nature thereof); (ii) the extent to which such contract is valid and
subsisting and in full force and effect; (iii) that, to LRC’s knowledge, there are no
defaults or events of default then existing under such contract and, to LRC’s knowledge, no
event has occurred which with the passage of time or the giving of notice, or both, would
constitute such a default or event of default (or, if there is a default or potential
default, the nature of such default in detail); (iv) whether the services and construction
contemplated by such contract are proceeding in a satisfactory manner in all material
respects (and if not, a detailed description of all significant problems with the progress
of the services or construction); (v) in reasonable detail the then critical dates projected
by LRC for work and deliveries required by such contract; (vi) the total amount received by
the other party to such contract for work or services provided by the other party through
the date of the letter; (vii) LRC’s good faith estimate of the total cost of completing the
services and work contemplated under such contract as of the date of the letter, together
with any current draw or payment schedule for the contract; and (viii) any other information
BNPPLC may reasonably request to allow it to decide what steps it should take concerning the
contract within BNPPLC’s rights under this Agreement and the other Operative Documents.

     (3) As and to the extent requested by BNPPLC, LRC will make every reasonable effort
(but without any obligation to incur any expense or liability to do so, unless BNPPLC agrees
to reimburse the same with reasonable promptness) to secure any required consents or
approvals for an assignment of any then existing Third Party Contract to BNPPLC or its
designee, upon terms satisfactory to BNPPLC. To the extent assignable, any then existing
Third Party Contract will be assigned by LRC to BNPPLC upon request, without charge by LRC.

   

Construction Agreement (Livermore/ Parcel 7) — Page 38

 

 

     (4) If LRC has canceled any Third Party Contract before and in anticipation of a
Termination of LRC’s Work, then as and to the extent requested by BNPPLC, LRC must make
every reasonable effort (but without any obligation to incur any expense or liability to do
so, unless BNPPLC agrees to reimburse the same with reasonable promptness) to secure a
reinstatement of such Third Party Contract in favor of BNPPLC and upon terms satisfactory to
BNPPLC.

     (5) For a period not to exceed thirty days after the Termination of LRC’s Work, LRC
must take such steps as are reasonably necessary to preserve and protect Work completed and
in progress and to protect materials, equipment, and supplies at the Property or in transit.
Without regard to the conditions applicable to other payments required of BNPPLC by this
Agreement, BNPPLC must with reasonable promptness reimburse any reasonable out-of-pocket
expenses incurred by LRC to comply with this subparagraph (5); however, BNPPLC may at any
time or from time to time by notice to LRC limit or terminate such reimbursements as to
expenses incurred after LRC’s receipt of such notice, and thereafter LRC will be excused
from any obligation to incur expenses that BNPPLC may decline to reimburse.

8 LRC’s Obligation for a 97-10/Prepayment. After any 97-10/Meltdown Event LRC must make
a 97-10/Prepayment to BNPPLC within three Business Days after receipt from BNPPLC of a demand for
such a payment. LRC acknowledges that it is undertaking the obligation to make a 97-10/Prepayment
as provided in this Paragraph in consideration of the rights afforded to it by this Agreement, but
that such obligation is not contingent upon any exercise by LRC of such rights or upon its rights
under any other Operative Documents. If a 97-10/Meltdown Event does occur, LRC’s obligation to
make a 97-10/Prepayment as provided in this Paragraph will survive any Termination of LRC’s Work.

Notwithstanding the foregoing provisions of this Paragraph 8, if (as provided in subparagraph 7(B))
LRC effectively makes the election for a Termination of LRC’s Work because of a Pre-lease Force
Majeure Event that resulted in Pre-lease Force Majeure Excess Costs or Pre-lease Force Majeure
Delays, then LRC will be excused from the obligation to make a 97-10/Prepayment, regardless of
whether LRC delivered only one or more than one Notice of Intent to Terminate Because of a Force
Majeure Event as described in the example set forth in subparagraph 7(B)(8).

9 Indemnity for Covered Construction Period Losses.

     (A) Covenant to Indemnify Against Covered Construction Period Losses. Subject to the
qualifications in subparagraph 9(B), as directed by BNPPLC, LRC must indemnify and defend BNPPLC
from and against all of the following Losses (“Covered Construction Period

   

Construction Agreement (Livermore/ Parcel 7) — Page 39

 

 

Losses”):

     (1) Losses suffered or incurred by BNPPLC, directly or indirectly, relating to or
arising out of, based on or as a result of any of the following which occurs or is alleged
to have occurred prior to any Termination of LRC’s Work: (i) any Hazardous Substance
Activity; (ii) any violation of any applicable Environmental Laws relating to the Land or
the Property or to the ownership, use, occupancy or operation thereof; (iii) any
investigation, inquiry, order, hearing, action, or other proceeding by or before any
governmental or quasi-governmental agency or authority in connection with any Hazardous
Substance Activity; or (iv) any claim, demand, cause of action or investigation, or any
action or other proceeding, whether meritorious or not, brought or asserted against BNPPLC
which directly or indirectly relates to, arises from, is based on, or results from any of
the matters described in clauses (i), (ii), or (iii) of this provision or any allegation of
any such matters;

     (2) Losses incurred or suffered by BNPPLC that BNPPLC would not have incurred or
suffered but for any act or any omission of LRC or of any LRC’s contractors or
subcontractors during the period prior to any Termination of LRC’s Work or during any
subsequent period in which LRC does not relinquish possession or control of the Construction
Project (including any failure by LRC to obtain or maintain insurance as required by this
Agreement during such periods; but excluding, however, as described below, certain Losses
consisting of claims related to any failure of LRC to complete the Construction Project);

     (3) Losses incurred or suffered by BNPPLC that would not have been incurred but for any
fraud, misapplication of funds (including Construction Advances), illegal acts, or willful
misconduct on the part of LRC or its employees or of any other party acting under LRC’s
control or with the approval or authorization of LRC; and

     (4) Losses incurred or suffered by BNPPLC that would not have been incurred but for any
bankruptcy proceeding involving LRC as the debtor.

LRC’s obligations under this indemnity will apply whether or not BNPPLC is also indemnified as to
the applicable Covered Construction Period Loss by any third party (including another Interested
Party) and whether or not the Covered Construction Period Loss arises or accrues prior to the
Effective Date. Further, in the event, for income tax purposes, BNPPLC must include in its taxable
income any payment or reimbursement from LRC which is required by this indemnity (in this
provision, the “Original Indemnity Payment”), and yet BNPPLC is not entitled during the same
taxable year to a corresponding and equal deduction from its taxable income for the Covered
Construction Period Loss paid or reimbursed by such Original Indemnity Payment (in this provision,
the “Corresponding Loss”), then LRC must also pay to BNPPLC on

  

Construction Agreement (Livermore/ Parcel 7) — Page 40

 

 

 demand the
additional amount (in this provision, the “Additional Indemnity Payment”) needed to gross up the
Original Indemnity Payment for any and all resulting additional income taxes. That is, LRC must
pay an Additional Indemnity Payment as is needed so that the Corresponding Loss (computed net of
the reduction, if any, of BNPPLC’s income taxes because of credits or deductions that are
attributable to the BNPPLC’s payment or deemed payment of the Corresponding Loss and that are
recognized for tax purposes in the same taxable year during which BNPPLC must recognize the
Original Indemnity Payment as income) will not exceed the difference computed by subtracting (i)
all income taxes (determined for this purpose based on the highest marginal income tax rates
charged to corporations by federal, state and local tax authorities, as applicable, for the
relevant period or periods) imposed because of the receipt or constructive receipt of the Original
Indemnity Payment and the Additional Indemnity Payment, from (ii) the sum of the Original Indemnity
Payment and the Additional Indemnity Payment. (With regard to any payment or reimbursement of an
Original Indemnity Payment, “After Tax Basis” means that such payment or reimbursement is or will
be made together with the additional amount needed to gross up such Original Indemnity Payment as
described in this provision.)

     (B) Certain Losses Included or Excluded.

     (1) Environmental. As used in clause (1) of the preceding subparagraph 9(A), “Losses”
will not include costs properly incurred in connection with the Work to prevent the
occurrence of a violation of Environmental Laws which did not previously exist. (For
example, they will not include the increase in costs resulting from LRC’s installation of
fire proofing materials other than asbestos because of Environmental Laws that prohibit the
use of asbestos.) However, any costs to correct or answer for any violation of
Environmental Laws that occurred on or prior to the Effective Date or that LRC causes or
permits to occur after the Effective Date in connection with the Work or the Property will
be included in such Losses. (Thus, for instance, if LRC releases Hazardous Materials from
the Property in a manner that contaminates ground water in violation of Environmental Laws,
the costs of correcting the contamination and any applicable fines or penalties will be
included in Losses for which LRC must indemnify and defend BNPPLC pursuant to subparagraph
9(A).)

     (2) Failure to Maintain a Safe Work Site. If a third party asserts a claim for damages
against BNPPLC because of injuries the third party sustained while on the Land as a result
of LRC’s breach of its obligations under this Agreement to keep the Land and the
Improvements thereon in a reasonably safe condition as Work progresses under LRC’s direction
and control, then any such claim and other Losses resulting from such claim will constitute
Covered Construction Period Losses under clause (2) of subparagraph 9(A).

   

Construction Agreement (Livermore/ Parcel 7) — Page 41

 

 

     (3) Failure to Complete Construction. Additional costs of construction may result from
LRC’s failure to complete the Construction Project if a Termination of LRC’s
Work occurs pursuant to subparagraphs 7(B) and 7(C). Nevertheless, it is understood
that a failure of LRC to complete the Construction Project following any such Termination of
LRC’s Work will not necessarily constitute a breach of this Agreement, and clause (2) of
subparagraph 9(A) will not include any such additional costs of performing the Work or the
cost to BNPPLC of completing the Construction Project after the Termination of LRC’s Work.

     (4) Fraud. As used in clause (3) of subparagraph 9(A), “fraud” or “willful misconduct”
will include (i) any deliberate decision by LRC to make a Scope Change without BNPPLC’s
prior written approval, (ii) any fraud or intentional misrepresentation by LRC, or its
vendors, contractors or subcontractors regarding LRC’s ongoing compliance with the
requirements of this Agreement, and (iii) the performance by LRC or its vendors, contractors
or subcontractors of Defective Work, with LRC’s knowledge that it constitutes Defective
Work, prior to any Termination of LRC’s Work as provided in subparagraphs 7(B) and 7(C).

     (5) Excluded Taxes and Other Exclusions. Nothing in this Paragraph 9 or other
provisions of this Agreement will be construed to require LRC to reimburse or pay (a)
Excluded Taxes, (b) Losses incurred or suffered by BNPPLC that are proximately caused by
(and attributed by any applicable principles of comparative fault to) the Established
Misconduct of BNPPLC, or (c) any Losses incurred or suffered by any of the Participants in
connection with the negotiation or execution of the Participation Agreement (or supplements
making them parties thereto) or in connection with any due diligence Participants may
undertake before entering into the Participation Agreement.

     (6) Action or Omission of Tenant Under Existing Space Lease. Nothing in this Paragraph
9 or other provisions of this Agreement will be construed to require LRC to reimburse or pay
costs incurred because of an action or omission of a tenant (or of any employees or of any
other party acting under a tenant’s control or with the approval or authorization of a
tenant) under an Existing Space Lease; except when such action or omission was requested or
authorized by LRC itself or for some other reason such costs would not have been incurred
but for an action or omission of LRC itself.

     (C) Express Negligence Protection. Neither BNPPLC nor any other Interested Party
will lose the benefit of, or suffer any impairment of its rights under, any release of liability
provided in other provisions of this Agreement by reason of its own negligence or strict liability,
or by reason of any allegation that it was negligent or strictly liable, in regard to the subject
matter of such release.

   

Construction Agreement (Livermore/ Parcel 7) — Page 42

 

 

Similarly, BNPPLC will not lose the benefit of, or suffer any impairment of its rights under,
the indemnity provided in the preceding subparagraph 9(A) by reason of its own negligence or strict liability, or any allegation that it was negligent or
strictly liable, in regard to the subject matter of such indemnity. However, this provision will
not create any new or distinct right of indemnity in favor of BNPPLC, separate and apart from its
rights under subparagraph 9(A); and this provision will not expand BNPPLC’s right to be
indemnified against claims or Losses other than those listed in subparagraph 9(A). Thus, the
purpose of this provision is only to preserve BNPPLC’s indemnity rights under subparagraph 9(A)
against certain common law defenses in order that the indemnity in subparagraph 9(A) could apply in
circumstances where BNPPLC is allegedly or actually deemed negligent or strictly liable. Such
common law defenses have sometimes been characterized as “fair notice” requirements or the “clear
and unequivocal test” or the “express negligence test.” 1

Thus, for example, if a person is injured on the Land prior to the Completion Date because
of negligent acts of LRC or LRC’s contractors or subcontractors, under subparagraph 9(A)(2) BNPPLC
will be entitled to indemnification against claims asserted by such person even if BNPPLC is
alleged or held to be negligent by omission, as the owner of the Property, for failing to prevent
or rectify such negligent acts of LRC or its contractors or subcontractors. On the other hand, if
a person is injured on the Land prior to the Completion Date through no fault whatsoever on the
part of LRC or its contractors or subcontractors, the foregoing provisions of this subparagraph
9(C) will not be construed to obligate LRC to indemnify BNPPLC against claims by such person that
BNPPLC was negligent for failing to prevent such injury. As illustrated by the preceding
examples, this subparagraph 9(C) is intended to preserve BNPPLC’s right to indemnity against claims
that fall within the scope of subparagraph 9(A) despite

 

			
	1	 	See, for example, Fisk Electric Co. v.
Constructors & Associates, 888 S.W. 2d 813 (Tex. 1994), in which the Texas
Supreme Court held that an indemnity agreement could not be enforced to require
the indemnitor (a subconractor) to pay the defense costs of the indemnitee (a
contractor) unless the agreement included a provision like this
subparagraph 9(C), as necessary to satisfy the “express negligence test,”
despite the fact that the indemnitee had established in the underlying lawsuit
that it was not negligent as had been alleged. See also, Rossmoor
Sanitation, Inc. v. Pylon, Inc., 13 Cal. 3d 622 (1975), in which the
California Supreme Court held that a contract may expressly provide for
indemnification against an indemnitee’s own negligence, but that such an
agreement “must be clear and explicit and is strictly construed against the
indemnitee.”

  

Construction Agreement (Livermore/ Parcel 7) — Page 43

 

 

negligence or strict liability of BNPPLC or
an allegation thereof; however, nothing in this subparagraph 9(C) will expand the scope of the
indemnity provided in the preceding subparagraph 9(A).

It is also understood that releases provided for the benefit of BNPPLC or any other Interested
Party in this Agreement, and the indemnity provided in the preceding subparagraph 9(A) for the
benefit of BNPPLC, will not be limited by reason of the fact that insurance obtained by LRC or
required of LRC by this Agreement is not adequate to cover Losses against or for which the releases
and the indemnity are provided. Moreover, LRC’s liability for any failure to obtain insurance
required by this Agreement will not be limited to Losses against which indemnity is provided, it
being understood that the parties have agreed upon insurance requirements for reasons that extend
beyond providing a source of payment for Losses against which BNPPLC may be indemnified by LRC.

     (D) Survival of Indemnity. LRC’s obligations under this Paragraph 9 will survive the
termination or expiration of this Agreement and any Termination of LRC’s Work with respect to
Losses suffered by BNPPLC resulting or arising from events or circumstances which existed or
occurred or are alleged to have existed or occurred prior to the Termination of LRC’s Work or
during any subsequent period in which LRC does not relinquish possession or control of the
Construction Project, whether such Losses are asserted, suffered or paid before or after the
Termination of LRC’s Work.

     (E) Due Date for Indemnity Payments. Any amount to be paid by LRC under this
Paragraph 9 will be due ten days after a notice requesting such payment is received by LRC. Any
such amount not paid by LRC when first due will bear interest at the Default Rate in effect from
time to time from the date it first became due until paid; provided, that nothing herein contained
will be construed as permitting the charging or collection of interest at a rate exceeding the
maximum rate permitted under Applicable Laws.

     (F) Order of Application of Payments. BNPPLC will be entitled to apply any payments
by or on behalf of LRC against LRC’s obligations under this Paragraph 9 or against other amounts
owing by LRC and then past due under any of the other Operative Documents in the order the same
became due or in such other order as BNPPLC may elect.

     (G) Defense of BNPPLC.

     (1) Assumption of Defense. By notice to LRC BNPPLC may direct LRC to assume on behalf
of BNPPLC and to conduct with due diligence and in good faith the defense of and the
response to any claim, proceeding or investigation included in or concerning any Covered
Construction Period Loss. LRC must promptly comply with any such direction using counsel
selected by LRC and reasonably satisfactory to

   

Construction Agreement (Livermore/ Parcel 7) — Page 44

 

 

BNPPLC to represent BNPPLC. In the event LRC
fails to promptly comply with any such direction from BNPPLC, BNPPLC may contest or settle
the claim, proceeding or investigation using counsel of its own selection at LRC’s expense.

     (2) Indemnity Not Contingent. Also, although subparagraph 9(I) will apply to tort
claims asserted against BNPPLC related to the Property, the right of BNPPLC to be
indemnified pursuant to subparagraph 9(A) for payments that are made to satisfy governmental
requirements and that qualify as Covered Construction Period Losses (“Government Mandated
Payments”) (e.g., fines payable because of any release of Hazardous Materials from the
Property) will not be conditioned in any way upon LRC having consented to or approved of, or
having been provided with an opportunity to defend against or contest, such Government
Mandated Payments.

     (H) Notice of Claims. If BNPPLC receives a written notice of a claim for taxes or a
claim alleging a tort or other unlawful conduct that BNPPLC believes is covered by the indemnity in
subparagraph 9(A), then BNPPLC will be expected to promptly furnish a copy of such notice to LRC.
The failure to so provide a copy of the notice will not excuse LRC from its obligations under
subparagraph 9(A); except that if such failure continues for more than fifteen days after the
notice is received by BNPPLC and LRC is unaware of the matters described in the notice, with the
result that LRC is unable to assert defenses or to take other actions which could minimize its
obligations, then LRC will be excused from its obligation to indemnify BNPPLC against the Covered
Construction Period Losses, if any, which would not have been incurred or suffered but for such
failure. For example, if BNPPLC fails to provide LRC with a copy of a notice of an overdue tax
obligation covered by the indemnity set out in subparagraph 9(A) and LRC is not otherwise already
aware of such obligation, and if as a result of such failure BNPPLC becomes liable for penalties
and interest covered by the indemnity in excess of the penalties and interest that would have
accrued if LRC had been promptly provided with a copy of the notice, then LRC will be excused from
any obligation to BNPPLC (or any Affiliate of BNPPLC) to pay the excess.

     (I) Settlements Without the Prior Consent of LRC.

     (1) Election to Pay Reasonable Settlement Costs in Lieu of Actual. Except as otherwise
provided in subparagraph 9(I)(2), if BNPPLC settles any tort claim for which it is entitled
to be indemnified by LRC without LRC’s consent, then LRC may, by notice given to BNPPLC no
later than ten days after LRC is notified of the settlement, elect to pay Reasonable
Settlement Costs to BNPPLC in lieu of a payment or reimbursement of actual settlement costs.
(With respect to any tort claim asserted against BNPPLC, “Reasonable Settlement Costs” means
the maximum amount that a prudent Person in the position of BNPPLC, but able to pay any
amount, might reasonably agree to pay to settle the tort claim, taking into account the
nature and amount of the claim, the relevant

   

Construction Agreement (Livermore/ Parcel 7) — Page 45

 

 

facts and circumstances known to BNPPLC at the
time of settlement and the additional Attorneys Fees’ and other costs of defending the claim
which could be anticipated but for the settlement.) After making an election to pay
Reasonable Settlement Costs with regard to a particular tort claim, LRC will have no right
to rescind or revoke the election, despite any subsequent determination that Reasonable
Settlement Costs exceed actual settlement costs.

     (2) Conditions to Election. Notwithstanding the foregoing, LRC will have no right to
elect to pay Reasonable Settlement Costs in lieu of actual settlement costs if BNPPLC
settles claims without LRC’s consent at any time when an Event of Default has occurred and
is continuing or after a failure by LRC to conduct with due diligence and in good faith the
defense of and the response to any claim, proceeding or investigation as provided in
subparagraph 9(G)(1).

     (3) Indemnity Survives Settlement. Except as provided in this subparagraph 9(I), no
settlement by BNPPLC of any claim made against it will excuse LRC from any obligation to
indemnify BNPPLC against the settlement costs or other Covered Construction Period Losses
suffered by reason of, in connection with, arising out of, or in any way related to such
claim.

[The signature pages follow.]

   

Construction Agreement (Livermore/ Parcel 7) — Page 46

 

 

     IN WITNESS WHEREOF, this Construction 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 	 
	 	 	 	 

   

Construction Agreement (Livermore/ Parcel 7) — Signature Page

 

 

	 	 	 	 	 

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

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a
Delaware corporation
 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 

   

Construction 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 Construction Agreement (Livermore/ Parcel 7) — Page 2

 

 

Exhibit B

Description of the Construction Project and Construction Budget

     Subject to future Scope Changes, the Construction Project will be substantially consistent
with the site plans and elevations attached to this Exhibit and also with the following general
description, to the extent that the following description anticipates construction or renovation of
Improvements on the Land. The following description includes not only work that will be undertaken
on the Land pursuant to this Agreement, but also work on an adjacent parcel (which BNPPLC is
acquiring and leasing separately to LRC) pursuant to a Construction Agreement (Livermore/ Parcel 6)
dated of even date between BNPPLC and LRC (the “Other Construction Agreement”). References below
to “Building 2” are to the building on Parcel 7, which is to be constructed or renovated as part of
the Construction Project contemplated by this Agreement; whereas references below to “Building 1”
are the building on the adjacent tract to be constructed or renovated as part of the project
contemplated by the Other Construction Agreement.

Renovation of #1 and #101 Portola Avenue, Buildings 1 & 2, Livermore, CA:

Subject to further Design Development, the following is a narrative and plan (as of
11.12.07) description of the construction changes planned for the two existing parcels and
structures at #1 and #101 Portola Avenue in Livermore, CA, (currently occupied by KLA
Tencor, Buildings L1 and L2), necessary to meet the manufacturing, lab and office support
needs of Lam Research.

Existing Structures:

The existing buildings are each two-story, 120,000 square foot, braced steel frame
structures classified as Type II N structures in the CBC with mixed occupancies of B, F1 and
A3. The existing tenant improvements on the ground floor of both buildings are Class C-100
& C-10,000 clean rooms and labs for electronics manufacturing/assembly and testing, and some
training rooms. The second floor of both buildings is offices and administrative in nature.
The first floor of Bldg 2 also has a cafeteria.

Proposed New Exterior Construction:

The proposed exterior construction scope of this renovation includes minor modifications to
the equipment yard including the addition of three tanks for DI Water, LN2 and Heavy Metals
Storage, the addition of a make up air handler, scrubber, acid waste neutralization and
Nitrogen generation systems and construction of a chemical storage containment enclosure
with a screened scrubber and vent stack. This work is primarily in support of Building 2,
located on the Building 2 equipment pad, and within the Building 2 budget.

The existing building mass and street facing elevations will not be altered except
for the

 

 

addition and subtraction of various man doors around the ground floor perimeter. This work
is split evenly between the buildings. All new doors will match existing storefront doors
and all removed doors will be replaced with new glazing and sill construction to match
existing.

Proposed New Interior Construction:

The existing clean rooms and labs on the ground floors of both buildings will be extensively
demolished and reconfigured to accommodate LAM’s manufacturing and lab modifications, to
include the complete reconfiguring of plenum chase locations, raising the ceiling heights
from 9’ to ~11’ and excavating trenches and pits within the clean rooms for chases and
utility runs. The majority of the C-100 clean rooms will be reclassified as C-10,000. A
small Server Room will be constructed in an existing lab area in Building 2.

The office areas, building lobbies, employee cafeteria, and various labs will remain
essentially untouched.

Building Occupancy Revisions:

Lam’s lab processes involve the onsite storage of quantities of a variety of hazardous
chemicals and agents. The renovation anticipates building a separate H2 occupancy
containment enclosure completely separated from the existing Type II N buildings within two
of the existing loading dock bays of Bldg 2 to accommodate the onsite storage of these
chemicals. Lam’s SOPs will allow for amounts of these hazardous chemicals to be removed
from the containment enclosure and used within the manufacturing areas of the building in
small enough quantities to maintain the F1 occupancy for the manufacturing areas. All other
existing occupancies within the building will be maintained in the proposed renovation.

     All of the buildings will be suitable for uses contemplated in the Lease and of a quality,
when complete to be considered first class facilities for such uses. When construction is
complete, the Property will include parking areas, driveways and other facilities on the Land of
suitable quality for the finished buildings on the Land.

     The outline description that follows is provided to explain how costs will be allocated
between those to be funded under this Agreement and those to be funded under the Other Construction
Agreement. Again, references below to “Building 2” are to the building on Parcel 7, which is to be
constructed or renovated as part of the Construction Project contemplated by this Agreement;
whereas references below to “Building 1” are the building on the adjacent tract to be constructed
or renovated as part of the project contemplated by the Other Construction Agreement.

  

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

 

 

Livermore Cost Allocation Methodology

     Assumptions:

	 	•	 	Building 2 design is more complicated than Building 1; soft cost design work
will be greater for Building 2 than Building 1
	 
	 	•	 	Building 1 construction is expected to start in March 2008. Building 2
construction is expected to start in April or May 2008 (depending on when KLA moves out
of the building)
	 
	 	•	 	Hard costs incurred that support both buildings will be allocated to the
Building/Parcel where they will be physically located
	 
	 	•	 	Allocation of costs between buildings only occurs during the “accounting
construction period” for each building, and will include any costs incurred prior to
lease inception for which Lam will be reimbursed on the closing date (design fees,
permits, due diligence costs, etc.).
	 
	 	•	 	Utilities (for items not metered separately), and Operations & Maintenance
costs incurred by Lam and not the lessee during the lease period, and not charged as
part of Operating Expenses under the lease, will be allocated on a 50% : 50% basis.

Utility and Operations & Maintenance costs incurred by the lessee during the lease period,
or charged by Lam to the lessee as Operating Expense during the lease period, are excluded
from the allocation process. Expenses will be recorded as incurred / accrued.

Soft Cost Allocation:

Costs that do not involve design but involve both buildings will be allocated on a 50% :
50% basis. Example costs for this area:

	 	•	 	Environmental Assessments
	 
	 	•	 	ALTA surveys
	 
	 	•	 	Conditional Use Permits (City of Livermore)

Costs that involve design or are dependant upon the volume of work planned to be done will
be allocated based upon the proportion of Construction Costs budgeted to be incurred
between Building 1 and Building 2.

	 	•	 	The Utility Yard costs, currently “building neutral” will be split into the
planned Construction Costs for Building 1 and 2 based upon the physical

  

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

 

 

	 	 	 	location of equipment and work.

Example costs for this area:

	 	•	 	Project Management
	 
	 	•	 	Architectural
	 
	 	•	 	Mechanical, Electrical, Piping
	 
	 	•	 	HAZMAT

Costs that are directly attributable to only one building will be allocated as such.
Example costs for this area:

	 	•	 	Building permits
	 
	 	•	 	Operating permits
	 
	 	•	 	Occupancy permits

Hard Cost Allocation:

Hard costs will be allocated based upon the physical location of the work/asset,
specifically, Building 1 and Building 2. The Utility Yard costs, currently “building
neutral” will be split into the planned Construction Costs for Building 1 and 2 based upon
the physical location of equipment and work.

	 	•	 	The General Contractor (GC) Periodic invoices will have costs
for the period broken out by Building 1 or Building 2 when submitted to Lam
	 
	 	•	 	Costs outside of the control of the GC will have the allocation
done by Lam and/or Outside Services upon receipt of invoice

Utility Allocation:

Utilities, specifically Natural Gas, Water, and Electrical are metered separately for each
building and will be allocated directly to each building during the construction period for
each building.

	 	•	 	For Building 1, these will be allocated directly to Building 1
	 
	 	•	 	For Building 2:

	 	•	 	During the period while the KLA lease is in
effect, there will be no allocation since KLA will still be in the
building (see assumptions)
	 
	 	•	 	During construction following KLA’s exit, they
will be allocated 50/50 for non-metered items; directly to each
building depending on the meter.

Operations & Maintenance Costs:

Operations and Maintenance costs for Livermore will be billed separately or
identified on

  

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

 

 

the invoice as relating to Livermore, and allocated to each building as such. Costs for
common area maintenance will be allocated on a 50% : 50% basis as appropriate.

Termination Fees:

If there are any termination fees applicable to an agreement with a contractor, the fees
will be allocated to appropriate building if they are specifically attributable to a
building. If termination fees exist with a contractor that are NOT specifically
identifiable to a building, the termination fees will be allocated based on a ratio of costs
incurred to date with the particular contractor between the 2 buildings.

     The budget for the Construction Project is as shown on the attached pages. (The column in the
budget designated as “Lease Cap B2” is the budget for the construction to take place on the Land
and to be included in the funding contemplated by this Agreement.). Also shown on the attached
pages are site plans and elevations that depict or help explain both the construction contemplated
by this Agreement and the construction contemplated by the Other Construction Agreement.

  

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

 

 

Exhibit C

Construction Advance Request Form

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

     Re: Construction Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 (the
“Construction Agreement”), between Lam Research Corporation (“LRC”), a Delaware corporation, and
BNP Paribas Leasing Corporation (“BNPPLC”)

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement or in the Common Definitions and Provisions Agreement (Livermore/ Parcel
7) referenced in the Construction Agreement. This letter constitutes a Construction Advance
Request, requesting a Construction Advance of:

$                                        ,

on the Advance Date that will occur on:

                    , 20                    .

     To induce BNPPLC to make such Construction Advance, LRC represents and warrants as follows:

I. Calculation of limit imposed by Subparagraph 4(C)(2)(b) of the Construction Agreement:

	 	 	 
	(1) LRC has paid or incurred bona fide Reimbursable Construction Period
Costs other than for Work (e.g., property taxes) of no less than
	 	$                                        
	(2) LRC has paid or incurred bona fide Reimbursable Construction Period
Costs for Prior Work of no less than
	 	$                                        
	(3) LRC has received prior Construction Advances of
	 	$                                        

 

 

	 	 	 
	LIMIT (1 + 2 - 3)
	 	$                                        

II. Projected Cost Overruns:

LRC [check one: ___does / ___does not ] believe that Projected Construction Overruns are more
likely than not. [If LRC does believe that Projected Cost Overruns are more likely than not, and if
LRC believes that the amount of such Projected Construction Overruns can be reasonably estimated,
LRC estimates the same at $                                        .]

III. Construction Advances Covering Pre-lease Force Majeure Losses:

Neither the Construction Advance requested by this letter nor prior Construction Advances (if any)
have been used or will be used to cover any costs of repairs that constitute Pre-lease Force
Majeure Losses, except as follows: (if there are no exceptions, insert “No Exceptions”)

 

 

 

 

IV. Absence of Certain Work/Suspension Events:

     A. The Construction Project is progressing without significant interruption in a good and
workmanlike manner and substantially in accordance with Applicable Laws, with Permitted
Encumbrances and with the requirements of the Construction Agreement, except as follows: (if there
are no exceptions, insert “No Exceptions”)

 

 

 

 

     B. If LRC has received notice of any Defective Work, LRC has promptly corrected or is
diligently pursuing the correction of such Defective Work, except as follows: (if there are no
exceptions, insert “No Exceptions”)

 

 

 

 

 

 

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a
 Delaware corporation
 	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

Exhibit C to Construction Agreement (Livermore/ Parcel 7) — Page 3

 

 

Exhibit D

Pre-lease Force Majeure Event Notice

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

     Re: Construction Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 (the
“Construction Agreement”), between Lam Research Corporation (“LRC”), a Delaware corporation, and
BNP Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
(Livermore/ Parcel 7) referenced in the Construction Agreement.

     IMPORTANT: It is imperative that BNPPLC promptly review with legal counsel the ramifications
of this notice under the Construction Agreement and other Operative Documents.

     This letter constitutes a Pre-lease Force Majeure Event Notice, given as provided in
subparagraph 6(B) of the Construction Agreement to preserve the right of LRC to assert the
occurrence of a Pre-lease Force Majeure Event.

     LRC certifies to BNPPLC that the following Pre-lease Force Majeure Event occurred or commenced
on                     , 20___:

[INSERT DESCRIPTION OF EVENT HERE]

     LRC’s preliminary good faith estimate of the Pre-lease Force Majeure Delays, of the Pre-lease
Force Majeure Losses and of the Pre-lease Force Majeure Excess Costs likely to result from such
event are                      days, $                                         and $               
                         , respectively. Such amounts,
however, are only estimates.

     LRC acknowledges that after LRC gives this notice, BNPPLC may at any time deliver an FOCB
Notice to LRC as described in the Construction Agreement.

 

 

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, 

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

Exhibit D to Construction Agreement (Livermore/ Parcel 7) — Page 2

 

 

Exhibit E

Notice of Termination of LRC’s Work

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

     Re: Construction Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 (the
“Construction Agreement”), between Lam Research Corporation (“LRC”), a Delaware corporation, and
BNP Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
(Livermore/ Parcel 7) referenced in the Construction Agreement.

     IMPORTANT: It is imperative that BNPPLC promptly review with legal counsel the ramifications
of this notice under the Construction Agreement and other Operative Documents.

     LRC has determined that the Construction Allowance to be provided to it under the Construction
Agreement will not be sufficient to cover all Reimbursable Construction Period Costs yet to be paid
or reimbursed from Construction Advances for the reason or reasons set forth in the Notice of LRC’s
Intent to Terminate dated                     , 200___, previously delivered to you as provided in subparagraph
7(B) of the Construction Agreement. That Notice of LRC’s Intent to Terminate has not been
rescinded by LRC.

     LRC hereby irrevocably and unconditionally elects to terminate its rights and obligations to
continue the Work under Construction Agreement effective as of the date of this letter (which, as
required by subparagraph 7(B) of the Construction Agreement, is a date not less than forty-five
days after the date the aforementioned Notice of LRC’s Intent to Terminate). This notice
constitutes a “Notice of Termination by LRC” as described in subparagraph 7(B) of the Construction
Agreement.

     LRC also acknowledges that a 97-10/Meltdown Event has occurred under and as defined in the
Construction Agreement, and that BNPPLC is thus entitled to demand and receive a 97-10/Prepayment
under and as provided in Paragraph 8 of the Construction Agreement, unless the last sentence of
Paragraph 8 excuses LRC from paying the same.

 

 

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, 

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

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

 

 

Exhibit F

Notice of LRC’s Intent to Terminate

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

     Re: Construction Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 (the
“Construction Agreement”)between Lam Research Corporation (“LRC”), a Delaware corporation, and BNP
Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
(Livermore/ Parcel 7) referenced in the Construction Agreement.

     IMPORTANT: It is imperative that BNPPLC promptly review with legal counsel the ramifications
of this notice under the Construction Agreement and other Operative Documents.

                                                            

[DRAFTING NOTE: Unless this letter contains the alternative provisions set forth below as being
required after a Complete Taking in any “Notice of LRC’s Intent to Terminate Because of a Force
Majeure Event,” this letter must contain the following paragraph and inserts following such
paragraph as indicated:

     LRC has determined that the Construction Allowance to be provided to it under the Construction
Agreement will not be sufficient to cover all Reimbursable Construction Period Costs yet to be paid
or reimbursed from Construction Advances, because:

[INSERT ANY ONE OR MORE OF THE FOLLOWING REASONS THAT APPLY: (1) THE
COST OF THE WORK EXCEEDS BUDGETED EXPECTATIONS (RESULTING IN
PROJECTED COST OVERRUNS), (2) A PRE-LEASE FORCE MAJEURE EVENT HAS
OCCURRED, OR (3) LRC CAN NO LONGER SATISFY CONDITIONS TO BNPPLC’S
OBLIGATION TO PROVIDE CONSTRUCTION ADVANCES IN THE CONSTRUCTION
AGREEMENT.]

 

 

                                                            

     The purpose of this letter is to give notice to BNPPLC of LRC’s intent to terminate LRC’s
rights and obligations to perform Work under the Construction Agreement. This letter constitutes a
“Notice of LRC’s Intent to Terminate” given pursuant to subparagraph 7(B) of the Construction
Agreement. As provided in that subparagraph, as a condition to any effective Termination of LRC’s
Work, LRC must deliver a subsequent notice of termination to BNPPLC no less than forty-five days
after the date BNPPLC receives this letter.

                                                            

[DRAFTING NOTE: Unless this letter contains the alternative provisions set forth below as being
required for any “Notice of LRC’s Intent to Terminate Because of a Force Majeure Event,” this
letter must contain the following paragraph:

     The period running from the date of BNPPLC’s receipt of this letter to the effective date of
any actual Termination of LRC’s Work by LRC or BNPPLC will constitute a Work/Suspension Period
under the Construction Agreement. During such period BNPPLC’s funding obligations will be limited
and LRC may suspend the Work to the extent so provided in the Construction Agreement. Moreover, LRC
acknowledges that the delivery of this Notice of Intent to Terminate is a 97-10/Meltdown Event.
Therefore, after receipt of this notice BNPPLC will have the rights to demand and receive a
97-10/Prepayment from LRC as provided in Paragraph 9 of the Construction Agreement.]

[DRAFTING NOTE: This letter will qualify as a “Notice of LRC’s Intent to Terminate Because of a
Force Majeure Event” only if LRC includes one of the following alternative sets of provisions, as
applicable.]

[ALTERNATIVE #1 (Applies only if there has been a Complete Taking):

     This letter constitutes a “Notice of LRC’s Intent to Terminate Because of a Force Majeure
Event” as defined in the Construction Agreement. A Complete Taking has occurred. Thus, regardless
of any Scope Changes BNPPLC may be willing to approve or consider, and regardless of any Increased
Commitment BNPPLC may be willing to provide, it would be futile to continue the Construction
Project on the Land.

     LRC acknowledges and agrees that BNPPLC is entitled to all proceeds of the taking of the
Property and all such proceeds must be paid to BNPPLC. LRC has no right and will not assert any
right to share in such proceeds. LRC agrees to cooperate with BNPPLC as BNPPLC may from time to
time request in order to maximize BNPPLC’s recovery of such proceeds.]

 

 

[ALTERNATIVE #2 (applies in the event of a Pre-lease Force Majeure Event other than a Complete
Taking): Include the next (single sentence) paragraph, together with one or both (as applicable)
of the two paragraphs following the next (single sentence) paragraph, and together with the
remaining paragraphs after those two paragraphs, all with blanks filled in appropriately:

     This letter constitutes a “Notice of LRC’s Intent to Terminate Because of a Force Majeure
Event” as defined in the Construction Agreement.

     LRC now believes that the remaining available Construction Allowance will not be sufficient to
cover all Reimbursable Construction Period Costs yet to be paid or reimbursed from Construction
Advances only because of Pre-lease Force Majeure Excess Costs incurred or anticipated as a result
of one or more Pre-lease Force Majeure Events. BNPPLC has previously been notified of such
Pre-lease Force Majeure Event(s) by notice(s) dated                     , which LRC delivered to BNPPLC in
accordance with subparagraph 6(B) of the Construction Agreement. LRC’s current good faith
estimate of the Pre-lease Force Majeure Excess Costs that are most likely to be incurred because of
such Pre-lease Force Majeure Event(s) is $                                        .

     LRC now believes that the Work will not be substantially complete before the Target Completion
Date only because of Pre-lease Force Majeure Delays resulting from one or more Pre-lease Force
Majeure Events. BNPPLC has previously been notified of such Pre-lease Force Majeure Event(s) by
notice(s) dated                     , which LRC delivered to BNPPLC in accordance with subparagraph 6(B) of
the Construction Agreement. LRC’s current good faith estimate of the Pre-lease Force Majeure
Delays that are most likely to occur because of such Pre-lease Force Majeure Event(s) is
                                         days.

     Also be advised that, as provided in subparagraph 7(B) of the Construction Agreement, BNPPLC
is entitled to (but not obligated to) respond to this notice with an Increased Commitment.
Responding with an Increased Commitment will result in a conclusive presumption (for purposes of
calculating any 97-10/Prepayment required of LRC under the Purchase Agreement) that any Termination
of LRC’s Work is for reasons other than the Pre-lease Force Majeure Events of which BNPPLC has
previously been notified.

     In the event BNPPLC fails to respond with an Increased Commitment, the failure may
excuse LRC from the obligation to make a 97-10/Prepayment under Paragraph 8 of the Construction
Agreement notwithstanding any Termination of LRC’s Work, which would constitute a very material
adverse consequence to BNPPLC. Moreover, the Construction Agreement grants to LRC a right to cause
a Termination of LRC’s Work at any time more than forty-five days after giving this notice,
provided that LRC continues to believe that a Timing or Budget Shortfall exists at that time.
Thus, if BNPPLC intends to respond with an Increased Commitment, BNPPLC would be well advised to do
so before the expiration of such forty-five day period.]

 

Exhibit F to Construction Agreement (Livermore/ Parcel 7) — Page 3

 

 

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, 

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

Exhibit F to Construction Agreement (Livermore/ Parcel 7) — Page 4

 

 

Exhibit G

Notice of Increased Funding Commitment by BNPPLC

[Date]

Lam Research Corporation

4300 Cushing Parkway

Fremont, California 94538

Attention: Roch LeBlanc, Treasurer

     Re: Construction Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 (the
“Construction Agreement”)between Lam Research Corporation (“LRC”), a Delaware corporation, and BNP
Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement or in the Common Definitions and Provisions Agreement (Livermore/ Parcel
7) referenced in the Construction Agreement.

     LRC has delivered a notice to BNPPLC dated                     , 20___, which by its terms expressed LRC’s
intent that it constitute a “Notice of LRC’s Intent to Terminate Because of a Force Majeure Event”
as defined in the Construction Agreement. In such notice, LRC advised BNPPLC of LRC’s intent to
terminate the Construction Agreement because of LRC’s belief that the Construction Allowance to be
provided to it under the Construction Agreement will not be sufficient to cover all Reimbursable
Construction Period Costs yet to be paid or reimbursed from Construction Advances. Such notice
also suggested LRC’s belief that, but for the cost of repairing damage to the Improvements caused
by a Pre-lease Force Majeure Event, the remaining available Construction Allowance would be
sufficient. In addition, such notice set forth the amount of $                     as LRC’s estimate of the
Pre-lease Force Majeure Excess Costs most likely to be incurred because of such Pre-lease Force
Majeure Event.

     This response to such notice constitutes an Increased Funding Commitment. BNPPLC hereby
commits to increase the amount of the Construction Allowance by $                     (the estimate given by
LRC as described above). Such commitment is made on and subject to all of the same terms and
conditions set forth in the Construction Agreement and other Operative Documents as being
applicable to the original Construction Allowance and to Construction Advances required thereunder.

     Please note that, according to the Construction Agreement, LRC will have ten days after
the date of any Increased Commitment (which may be comprised of this Increased Funding Commitment
and any separate Increased Time Commitment given contemporaneously herewith) within which LRC may
rescind the aforementioned Notice of LRC’s Intent to Terminate Because

 

 

of a Force Majeure Event by a notice given in the form prescribed by the Construction
Agreement. Any failure of LRC to so rescind the notice will constitute a 97-10/Meltdown Event
under and as defined in the Construction Agreement and will result in a conclusive presumption (for
purposes of calculating any 97-10/Prepayment required of LRC) that any Termination of LRC’s Work
occurred for reasons other than the Pre-lease Force Majeure Events of which BNPPLC has previously
been notified.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, 

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

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

 

 

Exhibit H

Notice of Increased Time Commitment by BNPPLC

[Date]

Lam Research Corporation

4300 Cushing Parkway

Fremont, California 94538

Attention: Roch LeBlanc, Treasurer

     Re: Construction Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 (the
“Construction Agreement”)between Lam Research Corporation (“LRC”), a Delaware corporation, and BNP
Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement or in the Common Definitions and Provisions Agreement (Livermore/ Parcel
7) referenced in the Construction Agreement.

     LRC has delivered a notice to BNPPLC dated                     , 20___, which by its terms expressed LRC’s
intent that it constitute a “Notice of LRC’s Intent to Terminate Because of a Force Majeure Event”
as defined in the Construction Agreement. In such notice, LRC advised BNPPLC of LRC’s intent to
elect a Termination of LRC’s Work because of LRC’s belief that the Work will not be substantially
complete prior to the Target Completion Date only because of Pre-lease Force Majeure Delays. Such
notice also expressed LRC’s belief that Pre-lease Force Majeure Delays are likely to be                     
days in the aggregate.

     This response to such notice constitutes an Increased Time Commitment. BNPPLC hereby commits
to extend the Target Completion Date by                      days (the estimate given by LRC as described
above).

 

 

     Please note that, according to the Construction Agreement, LRC will have ten days after the
date of any Increased Commitment (which may be comprised of this Increased Time Commitment and any
separate Increased Funding Commitment given contemporaneously herewith) within which LRC may
rescind the aforementioned Notice of LRC’s Intent to Terminate Because of a Force Majeure Event by
a notice given in the form prescribed by the Construction Agreement. Any failure of LRC to so
rescind the notice will constitute a 97-10/Meltdown Event under and as defined in the Construction
Agreement and will result in a conclusive presumption (for purposes of calculating any
97-10/Prepayment required of LRC) that any Termination of LRC’s Work occurred for reasons other
than the Pre-lease Force Majeure Events of which BNPPLC has previously been notified.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, 

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

Exhibit H to Construction Agreement (Livermore/ Parcel 7) — Page 2

 

 

Exhibit I

Rescission of Notice of LRC’s Intent to Terminate

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

     Re: Construction Agreement (Livermore/ Parcel 7) dated as of December 18, 2007 (the
“Construction Agreement”) between Lam Research Corporation (“LRC”), a Delaware corporation, and BNP
Paribas Leasing Corporation (“BNPPLC”), a Delaware corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Construction Agreement referenced above or in the Common Definitions and Provisions Agreement
(Livermore/ Parcel 7) referenced in the Construction Agreement.

     LRC has delivered to BNPPLC a Notice of LRC’s Intent to Terminate dated                     , 200___, and
BNPPLC has responded with an Increased Commitment as of                     , 200___. LRC hereby accepts
the Increased Commitment and, as provided in subparagraph 7(B) of the Construction Agreement,
rescinds such Notice of LRC’s Intent to Terminate.

     LRC acknowledges that, because of such rescission, LRC must, as a condition precedent to any
exercise of its remaining rights to terminate the Construction Agreement pursuant to subparagraph
7(B) thereof, deliver another Notice of LRC’s Intent to Terminate at least forty five days prior to
the effective date of the Termination of LRC’s Work.

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, 

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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