Document:

exv10w131

 

Exhibit 10.131

CLOSING CERTIFICATE

AND AGREEMENT

(FREMONT/BUILDING #4)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 21, 2007

 

 

TABLE OF CONTENTS

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

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	 
	 	 	 	(3)	 	Sales, Etc. of Assets	 	 	12	 
	 
	 	 	 	(4)	 	Multiemployer ERISA Plans	 	 	13	 
	 
	 	 	 	(5)	 	Prohibited ERISA Transaction	 	 	13	 
	4	 	Limited Representations and Covenants of BNPPLC	 	 	13	 
	 	 	(A)	 	Concerning
Accounting Matters	 	 	13	 
	 	 	(B)	 	Other Limited
Representations	 	 	16	 
	 
	 	 	 	(1)	 	Entity Status	 	 	16	 
	 
	 	 	 	(2)	 	Authority	 	 	16	 
	 
	 	 	 	(3)	 	Solvency	 	 	16	 
	 
	 	 	 	(4)	 	Pending Legal Proceedings	 	 	17	 
	 
	 	 	 	(5)	 	No Default or Violation	 	 	17	 
	 
	 	 	 	(6)	 	Enforceability	 	 	17	 
	 
	 	 	 	(7)	 	Conduct of Business and
Maintenance of Existence	 	 	17	 
	 
	 	 	 	(8)	 	Not a Foreign Person	 	 	17	 
	 	 	(C)	 	Modifications of the
Participation Agreement	 	 	18	 
	 	 	(D)	 	No Implied
Representations or Promises by BNPPLC	 	 	18	 
	5	 	Usury Savings Provision	 	 	18	 
	6	 	Obligations of LRC Under Other Operative Documents Not Limited by this Agreement	 	 	19	 
	7	 	Waiver of Jury Trial	 	 	19	 
	8	 	Amendment, Restatement and Replacement of the Prior Lease	 	 	19	 

Exhibits and Schedules

	 	 	 
	Exhibit A

	 	Legal Description
	 
	 	 
	Exhibit B

	 	Permitted Encumbrances
	 
	 	 
	Exhibit C

	 	Quarterly Certificate
	 
	 	 
	Exhibit D

	 	Certificate to be Provided by BNPPLC Re: Accounting

(ii)

 

 

CLOSING CERTIFICATE AND AGREEMENT

(FREMONT/BUILDING #4)

     This CLOSING CERTIFICATE AND AGREEMENT (FREMONT/BUILDING #4) (this “Agreement”), dated as of
December 21, 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 (Fremont/Building #4) dated as of the Effective Date (the
“Common Definitions and Provisions Agreement”), which by this reference is incorporated into and
made a part of this Agreement for all purposes. As used in this Agreement, capitalized terms
defined in the Common Definitions and Provisions Agreement and not otherwise defined in this
Agreement are intended to have the respective meanings assigned to them in the Common Definitions
and Provisions Agreement.

     Also contemporaneously with this Agreement, BNPPLC is acquiring the Land described in
Exhibit A, and at the request of LRC BNPPLC is acquiring the Improvements on the Land by
conveyance from the Prior Owner.

     Also contemporaneously with this Agreement, BNPPLC and LRC are executing a Lease Agreement
(Fremont/Building #4) dated as of the Effective Date (the “Lease”), pursuant to which LRC is
leasing from BNPPLC the Land, which is described in Exhibit A, and the other Property.

     Also contemporaneously with this Agreement, BNPPLC and LRC are executing an Agreement
Regarding Purchase and Remarketing Options (Fremont/Building #4) dated as of the Effective Date
(the “Purchase Agreement”), pursuant to which LRC may purchase or arrange for the purchase of the
Property and BNPPLC may collect a Supplemental Payment from LRC sufficient to cover all or a
substantial portion of the Lease Balance not otherwise repaid to BNPPLC from the proceeds of any
sale of the Property.

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

AGREEMENTS

     In consideration of the premises and other good and valuable consideration, the receipt

 

 

and sufficiency of which are hereby acknowledged, the parties agree as follows:

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

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

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

     (C) Title Insurance. Contemporaneously with the execution of this Agreement LRC must
provide to BNPPLC a title insurance policy or binder committing the applicable title insurer to
issue a title insurance policy, without the payment of further premiums (as the case may be, the
“Title Policy”) in the amount of no less than amount of the Initial Advance, in form and substance
satisfactory to BNPPLC (including comprehensive, survey, variable rate, access, and such other
endorsements as may be requested by BNPPLC), written by one or more title insurance companies
satisfactory to BNPPLC and insuring BNPPLC’s fee estate in the Land and Improvements.

     (D) Condition of the Property. The Land described in Exhibit A is the
same as the land described in the Title Policy and as shown on the plat included as part of the
ALTA/ACSM Land Title Survey of 4540 Cushing Parkway and 4650 Cushing Parkway, dated September,
1999, prepared by Kier & Wright Civil Engineers & Surveyors, Inc., Job No. 87041-9, certified to
Lam Research Corporation and others by Jimmy R. Vigil, LS 6256, on September 17, 1999 (the
“Survey”), which survey was delivered to BNPPLC at the request of LRC. All material improvements
on the Land as of the Effective Date are as shown on the Survey, and except as shown on the Survey
there are no easements or encroachments encumbering or affecting the Property. No part of the Land
is within a flood plain as designated by any governmental authority. The Improvements are in good
condition, free from latent or patent defects or deficiencies that, either individually or in the
aggregate, could materially and adversely affect the

 

 

use or occupancy of the Property as permitted by the Lease or could reasonably be anticipated
to cause injury or death to any person. The Property and use thereof permitted by the Lease comply
in all material respects with all Applicable Laws, including laws regarding access and use by
disabled persons and local zoning ordinances. Adequate provision has been made for the Property
to be served by electric, gas, storm and sanitary sewers, sanitary water supply, telephone and
other utilities required for the use thereof. All streets, alleys and easements necessary to serve
the Property for the uses permitted by the Lease have been completed and are serviceable. No
extraordinary circumstances (including any use of the Land as a habitat for endangered species)
exist that would materially and adversely affect such uses of the Property. The Improvements are
useable for their intended purpose without the need to obtain any additional easements,
rights-of-way or concessions from any third party or parties.

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

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

     (F) Cooperation by LRC and its Affiliates.

     (1) After the Designated Sale Date, if neither LRC nor an Applicable Purchaser
has purchased BNPPLC’s interest in the Property pursuant to the Purchase Agreement, and if a
use of the Property by BNPPLC or any new Improvements or any removal or modification of
Improvements proposed by BNPPLC would violate any Permitted Encumbrance or Applicable Law
unless LRC or any of its Affiliates, as an owner of

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 3

 

 

adjacent property or otherwise, gave its consent or approval thereto or agreed to join
in a modification of a Permitted Encumbrance, then LRC must give and cause its Affiliates to
give such consent or approval or join in such modification.

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

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

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

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

     (A) Concerning LRC and the Operative Documents.

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

     (2) Authority. The Constituent Documents of LRC permit the execution, delivery
and performance of the Operative Documents by LRC, and all actions and approvals necessary
to bind LRC under the Operative Documents have been taken and obtained. Without limiting
the foregoing, the Operative Documents will be binding upon LRC when signed on behalf of LRC
by Roch LeBlanc, Treasurer of LRC. LRC has all requisite power and all governmental
certificates of authority, licenses, permits and

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 4

 

 

qualifications to carry on its business as now conducted and contemplated to be
conducted and to perform the Operative Documents.

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

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

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

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

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 5

 

 

encumbrance on, or security interest in, the Property pursuant to the provisions of any
such other agreement.

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

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

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

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

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

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

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 6

 

 

in the Code and regulations promulgated thereunder).

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

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

     (15) Payment of Taxes Generally. Except when the failure to do so does not have
and could not reasonably be expected to have a Material Adverse Effect (taking into account
any appropriate contest of taxes), LRC and its Subsidiaries have filed and will file all tax
declarations, reports and returns which are required by (and in the form required by)
Applicable Laws and have paid and will pay all taxes or other charges shown to be due and
payable on such declarations, reports and returns and all assessments made against it or its
assets by any Governmental Authority; and no liens have been filed or established by any
Governmental Authority against LRC or its assets or against any Subsidiary or its assets to
secure the payment of taxes or assessments that are past due or claimed to be past due.

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 7

 

 

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

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

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

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

     (20) Books and Records. LRC will keep proper books of record and account, containing
complete and accurate entries of all its financial and business transactions.

     (21) Visitation, Inspection, Etc. LRC will permit any representative of BNPPLC
after reasonable notice (unless a Default has occurred and is continuing, in

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 8

 

 

which case no notice shall be required) during regular business hours to visit and
inspect any of LRC’s properties, and to examine and make abstracts from any of its books and
records and to discuss with any of its officers, and with its independent public
accountants, the affairs, finances and accounts of LRC.

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

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

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

     (1) as soon as available and in any event within 60 days after the end of each
of the first three fiscal quarters of each fiscal year of LRC, the unaudited consolidated
balance sheet of LRC and its Subsidiaries as of the end of such quarter and consolidated
unaudited statements of income, stockholders’ equity and cash flow of LRC and its
Subsidiaries for the period commencing at the end of the previous fiscal year and ending
with the end of such quarter, setting forth in comparative form figures for the

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 9

 

 

corresponding period in the preceding fiscal year, in the case of such statements of
income, stockholders’ equity and cash flow, and figures for the preceding fiscal year in the
case of such balance sheet, all in reasonable detail, in accordance with GAAP, and certified
in a manner acceptable to BNPPLC by a Responsible Financial Officer of LRC (subject to
normal year-end adjustments);

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

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

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

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

     (6) as soon as practicable and in any event within thirty days after a
Responsible Financial Officer of LRC knows or has reason to know that any ERISA Termination
Event with respect to any Plan has occurred, a statement of a Responsible Financial Officer
of LRC describing such ERISA Termination Event and the action, if any, which LRC proposes to
take with respect thereto;

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 10

 

 

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

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

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

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

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

     (F) U.S. Patriot Act. LRC acknowledges that BNPPLC, BNPPLC’s Parent or any
Participant may be required, pursuant to the USA Patriot Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)) (the “Patriot Act”), to obtain, verify, record and disclose to law
enforcement authorities information that identifies the LRC, including the name and address of LRC.
LRC will provide to BNPPLC, BNPPLC’s Parent and Participants any such information they may
request pursuant to the Patriot Act, and LRC agrees that BNPPLC, BNPPLC’s Parent and Participants
may disclose such information to law enforcement authorities if the authorities make a request or
demand for disclosure pursuant to the Patriot Act. LRC also acknowledges

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 11

 

 

that, in such event none of BNPPLC, BNPPLC’s Parent or the Participants may be required or even permitted by the Patriot Act
to notify LRC of the request or demand for disclosure.

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

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

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

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

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

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

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

     1) LRC continues as the surviving corporation; and

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

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

     (3) Sales, Etc. of Assets. Sell, lease, transfer or otherwise dispose of
substantially all or substantially all of its assets (in a single transaction or series of
related

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 12

 

 

transactions), except that, subject to any other applicable restrictions in the
Operative Documents:

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

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

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

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

4 Limited Representations and Covenants of BNPPLC

     (A) Concerning Accounting Matters.

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

	 	•	 	“held within a silo” means, with respect to any asset or
group of assets leased by BNPPLC to a single lessee or group of
affiliated lessees, that BNPPLC has obtained funds in excess of 95%
of the fair value of the leased asset or group of assets to acquire
or maintain its investment in such asset or group of assets through
non-recourse financing or other contractual arrangements (such as

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 13

 

 

targeted equity or bank participations), the effect of which is to
leave such asset or group of assets (or proceeds thereof) as the
only significant asset or assets of BNPPLC at risk for the repayment of
such funds;

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

     (2) BNPPLC also represents that BNPPLC’s Parent is, as of the Effective

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 14

 

 

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

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

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

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 15

 

 

provide such advance notice.

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

     (B) Other Limited Representations. BNPPLC represents that:

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

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

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

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

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 16

 

 

other Operative Documents, “knowledge of BNPPLC”, “BNPPLC’s knowledge” and words of like effect will mean
the present actual knowledge of Lloyd G. Cox and Barry Mendelsohn, or their successors, as
the then current officers of BNPPLC having primary
responsibility for the administration of the Operative Documents.)

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

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

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

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

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

Notwithstanding the foregoing, however or any other provision herein or in other Operative
Documents to the contrary, it is understood that LRC is not relying upon BNPPLC for any

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 17

 

 

evaluation of California or local Applicable Laws upon the transactions contemplated in the Operative
Documents, and BNPPLC makes no representation and will not make any representation that conditions
imposed by zoning ordinances or other state or local Applicable
Laws to the purchase, ownership, lease or operation of the Property have been satisfied.

     (C) Modifications of the Participation Agreement. So long as no Event of Default has
occurred and is continuing, BNPPLC will not (without LRC’s prior approval) agree with Participants
to amend the definitions of “Majority” or “Major Stakeholder” in the Participation Agreement or
subparagraph 6(A) or Paragraph 13 of the Participation Agreement; provided, however, this provision
will not be construed to preclude or limit BNPPLC’s right to make any agreement with one or more
Participants to take any action, or refrain from taking any action, not otherwise prohibited by the
Operative Documents and permitted by the Participation Agreement.

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

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

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 18

 

 

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

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

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

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 19

 

 

8 Amendment, Restatement and Replacement of the Prior Lease. This Agreement and
the other Operative Documents, collectively, are intended to amend, restate and replace entirely
the Prior Lease with respect to the Property. Without limiting the rights and
obligations of LRC under the Operative Documents, LRC acknowledges that any and all rights and
interests it has under the Prior Lease, or otherwise, in and to the Land, the improvements to the
Land and any other property included in the Property (except under the Operative Documents) are
superseded by the Operative Documents and that BNPPLC will have no liability under the Prior Lease
for any default or breach thereof by the Prior Owner or otherwise.

[The signature pages follow.]

 
Closing Certificate and Agreement (Fremont/Building #4) — Page 20

 

 

     IN WITNESS WHEREOF, this Closing Certificate and Agreement (Fremont/Building #4) is executed
to be effective as of December 21, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware
corporation

 	 
	 	By:  	/s/ Lloyd G. Cox 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

 
Closing Certificate and Agreement (Fremont/Building #4) — Signature Page

 

 

[Continuation of signature pages for Closing Certificate and Agreement (Fremont/Building #4) dated
as of December 21, 2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a 
Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 
	 

 
Closing Certificate and Agreement (Fremont/Building #4) — Signature Page

 

 

[Continuation of signature pages for Closing Certificate and Agreement (Fremont/Building #4) dated
as of December 21, 2007]

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

	 	 	 	 	 
	 	BNP PARIBAS, a bank organized and existing 

under the laws of France

 	 
	 	By:  	/s/ Lloyd G. Cox 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

 
Closing Certificate and Agreement (Fremont/Building #4) — Signature Page

 

 

Exhibit A

Legal Description

PARCEL ONE:

PARCEL 2, PARCEL MAP 5001, FILED MARCH 18, 1987, IN BOOK 168 OF MAPS, AT PAGES 24 THROUGH 26,
ALAMEDA COUNTY RECORDS.

PARCEL TWO:

AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE FOLLOWING DESCRIBED LANDS, FOR THE BENEFIT
OF PARCEL 2, HEREIN, AS CREATED BY THAT CERTAIN INSTRUMENT RECORDED AUGUST 10, 1994, INSTRUMENT NO.
94-275492, ALAMEDA COUNTY RECORDS:

ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF FREMONT, COUNTY OF ALAMEDA, STATE OF
CALIFORNIA, BEING A PORTION OF PARCEL 3 AS SHOWN UPON THAT CERTAIN PARCEL MAP 5001, FILED FOR
RECORD IN BOOK 168 OF MAPS, AT PAGES 24, 25 AND 26, ALAMEDA COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWESTERLY CORNER OF SAID PARCEL 3; THENCE ALONG THE WESTERLY LINE OF PARCEL 3,
SOUTH 7° 11’ 33” EAST, 150.00 FEET; THENCE THE FOLLOWING FOUR (4) COURSES AND DISTANCES:
NORTH 82° 48’ 27” EAST, 12.00 FEET; NORTH 7° 11’ 33” WEST, 45.00 FEET; NORTH 4°
16’ 47” WEST, 59.04 FEET; AND NORTH 7° 11’ 33” WEST, 46.04 FEET TO THE NORTHERLY LINE OF
PARCEL 3; THENCE ALONG SAID NORTHERLY LINE, SOUTH 82° 48’ 27” WEST, 15.00 FEET TO THE POINT
OF BEGINNING.

PARCEL THREE:

AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE FOLLOWING DESCRIBED LANDS FOR THE BENEFIT OF
PARCEL 2, HEREIN, AS CREATED BY THAT CERTAIN INSTRUMENT RECORDED AUGUST 10, 1994, INSTRUMENT NO.
94-275492, ALAMEDA COUNTY RECORDS.

ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF FREMONT, COUNTY OF ALAMEDA, STATE OF
CALIFORNIA, BEING A PORTION OF PARCEL 3, AS SHOWN UPON THAT CERTAIN PARCEL MAP 5001, FILED FOR
RECORD IN BOOK 168 OF MAPS, AT PAGES 24, 25 AND 26, ALAMEDA COUNTY RECORDS, DESCRIBED

 

 

AS FOLLOWS:

BEGINNING AT A POINT IN THE WESTERLY LINE OF PARCEL 3, DISTANT NORTHERLY 25.18 FEET FROM THE
SOUTHWESTERLY CORNER THEREOF; THENCE ALONG SAID WESTERLY LINE, NORTH 7° 11’ 33” WEST, 281.49
FEET; THENCE THE FOLLOWING FIVE (5) COURSES AND DISTANCES: NORTH 82° 48’ 27” EAST, 12.00
FEET; SOUTH 7° 11’ 33” EAST, 168.34 FEET; SOUTH 37° 48’ 27” WEST, 5.66 FEET; SOUTH
7° 11’ 33” EAST, 110.09 FEET; AND SOUTH 89° 32’ 31” WEST, 8.06 FEET TO THE POINT OF
BEGINNING.

PARCEL FOUR:

AN EASEMENT FOR PRIVATE ACCESS FOR THE BENEFIT OF PARCEL ONE, ABOVE, OVER THAT PORTION OF PARCEL 2,
PARCEL MAP 5001 DESIGNATED “J.A.E.” ON SAID MAP.

A.P.N. 525-1350-035

 

 

Exhibit B

Permitted Encumbrances

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

     2. Rights of the public in and to that portion of the land lying within CUSHING ROAD AND
CUSHING PARKWAY.

     3. An easement for ROADWAY AND PUBLIC UTILITY PURPOSES and incidental purposes, recorded MARCH
25, 1963 in REEL 835, IMAGE 483 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION
	 

	 	Affects:
	 	A NORTHWESTERLY PORTION

     4. An easement for ROADWAY AND PUBLIC UTILITY PURPOSES and incidental purposes, recorded JULY
16, 1968 in REEL 2218, IMAGE 506 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	THE CITY OF FREMONT, A MUNICIPAL CORPORATION
	 

	 	Affects:
	 	A NORTHERLY PORTION

     5. The terms and provisions contained in the document entitled “AGREEMENT” recorded JULY 16,
1968 in REEL 2218, IMAGE 508 of Official Records. BY AND BETWEEN ARMANDO RAMACCIOTTI, ET AL AND THE
CITY OF FREMONT.

     6. An easement for WATER PIPELINES and incidental purposes, recorded DECEMBER 21, 1978 in REEL
5729, IMAGE 192 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:

Affects:
	 	THE EAST BAY DISCHARGES AUTHORITY

A PORTION OF SAID LAND

     7. An easement for UNDERGROUND WATER PIPELINES and incidental purposes, recorded MAY 20, 1980
as SERIES NO. 80-087802 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:

Affects:
	 	EAST BAY DISCHARGES AUTHORITY

THE SOUTH 30 FEET

     8. An easement for PLANTING AND MAINTENANCE OF LANDSCAPING and incidental purposes, recorded
JULY 8, 1983 as SERIES NO. 83-120523 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:

Affects:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION

THE NORTHERLY 15 FEET

     9. Covenants, conditions, restrictions and easements in the document recorded SEPTEMBER
1, 1983 as SERIES NO. 83-163024 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.

     10. Covenants, conditions, restrictions, easements, assessments, liens, charges, terms and
provisions in the document recorded SEPTEMBER 1, 1983 as SERIES NO. 83-163025 of Official Records,
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. 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.

     11. An easement for PLANTING AND MAINTENANCE OF LANDSCAPING and incidental purposes, recorded
SEPTEMBER 26, 1983 as SERIES NO. 83178017 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:

Affects:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION

SOUTH 15 FEET OF NORTH 41 FEET

     12. An easement for ROADWAY AND PUBLIC UTILITY PURPOSES and incidental purposes, recorded
SEPTEMBER 26, 1983 as SERIES NO. 83-178018 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:

Affects:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION

A NORTHERN PORTION

     13. The fact that the land lies within the boundaries of the FREMONT INDUSTRIAL Redevelopment
Project Area, as disclosed by the document recorded DECEMBER 22, 1983 as SERIES NO. 83-240646 of
Official Records.

Document(s) declaring modifications thereof recorded JANUARY 6, 1989 as SERIES NO. 89-004786 of
Official Records.

Document(s) declaring modifications thereof recorded FEBRUARY 28, 1992 as SERIES NO. 92063331 of
Official Records.

Document(s) declaring modifications thereof recorded FEBRUARY 4, 1993 as SERIES NO. 93042101 of
Official Records.

Document(s) declaring modifications thereof recorded JULY 28, 1998 as SERIES NO. 98261857 of
Official Records.

 
Exhibit B to Closing Certificate and Agreement (Fremont/Building #4) — Page 2

 

 

Document(s) declaring modifications thereof recorded AUGUST 8, 2005 as INSTRUMENT NO.
2005337462 of Official Records.

Document(s) declaring modifications thereof recorded AUGUST 17, 2007 as INSTRUMENT NO. 2007304231
of Official Records.

     14. An easement shown or dedicated on the map filed or recorded MARCH 18, 1987 in BOOK 168,
PAGES 24 THROUGH 26 of PARCEL MAPS

	 	 	 	 	 
	 

	 	For:
	 	COUNTY ROAD NO. 2769 and incidental purposes.
	 

	 	AFFECTS:
	 	NORTHWESTERLY PORTION OF PARCEL 1
	 
	 	 	 	 
	 

	 	FOR:
	 	WATER PIPELINES AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	SOUTHERLY PORTION OF PARCELS 1 AND 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	STREET AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	NORTHERLY PORTION OF PARCELS 1 AND 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	LANDSCAPE AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	NORTHERLY PORTION OF PARCELS 1 AND 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	PUBLIC UTILITY AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	NORTHERLY PORTION OF PARCELS 1 AND 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	PRIVATE STORM DRAIN AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	SOUTHERLY PORTION OF PARCEL 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	JOINT ACCESS AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	EASTERLY PORTION OF PARCEL 1 AND THE WESTERLY PORTION OF PARCEL 2.

     15. The terms, provisions and easement(s) contained in the document entitled “DECLARATION OF
GRANT OF EASEMENT” recorded DECEMBER 2, 1991 as SERIES NO. 91318633 of Official Records.

     16. An easement for PUBLIC UTILITIES and incidental purposes, recorded AUGUST 4, 1992 as
SERIES NO. 92-253233 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:

Affects:
	 	PACIFIC GAS AND ELECTRIC COMPANY, A CALIFORNIA CORPORATION

A PORTION OF SAID LAND

 
Exhibit B to Closing Certificate and Agreement (Fremont/Building #4) — Page 3

 

 

     17. An easement for INGRESS AND EGRESS and incidental purposes, recorded AUGUST 10, 1994 as
SERIES NO. 94-275493 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:	 	SUMITOMO BANK LEASING AND FINANCE, INC., A DELAWARE CORPORATION 
	 

	 	Affects:
	 	PORTIONS OF PARCEL 2

     18. The land lies within the boundaries of proposed community facilities District No. 1995-1,
as disclosed by a map filed JULY 10, 1995 in BOOK 10, PAGES 13-19 of maps of assessment and
community facilities districts.

     19. An easement for PRIVATE ACCESS and incidental purposes, recorded DECEMBER 7, 2000 as
INSTRUMENT NO. 2000359106 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	BEN II-VEF III, LLC, A DELAWARE LIMITED LIABILITY COMPANY
	 

	 	Affects:
	 	THE EASTERLY PORTION OF PARCEL ONE AND THE WESTERLY PORTION OF PARCEL TWO

     20. An easement for PUBLIC SERVICE and incidental purposes, recorded JUNE 12, 2003 as SERIES
NO. 2003345103 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	THE CITY OF FREMONT
	 

	 	Affects:
	 	PORTION OF SAID LAND

 
Exhibit B to Closing Certificate and Agreement (Fremont/Building #4) — Page 4

 

 

Exhibit C

Quarterly Certificate

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Gentlemen:

     This Certificate is furnished pursuant to subparagraph 2(D)(3) of the Closing Certificate and
Agreement (Fremont/Building #4) dated as of December 21, 2007 between Lam Research Corporation and
BNP Paribas Leasing Corporation (as amended, the “Closing Certificate”). Terms defined in the
Closing Certificate and used but not otherwise defined in this Certificate are intended to have the
respective meanings ascribed to them in the Closing Certificate.

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

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

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

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

     Executed this ___day of                     , 20___.

[INSERT SIGNATURE BLOCK FOR A

RESPONSIBLE FINANCIAL OFFICER]

 

 

Exhibit D

Certificate of BNPPLC Re: Accounting

Lam Research Corporation

4300 Cushing Parkway

Fremont, California 94538

Attention: Roch LeBlanc, Treasurer

Gentlemen:

     This certificate is furnished pursuant to subparagraph 4(A) of the Closing Certificate and
Agreement (Fremont/Building #4) dated as of December 21, 2007 between BNP Paribas Leasing
Corporation and Lam Research Corporation (as amended, the “Closing Certificate”). Terms defined in
the Closing Certificate and used but not otherwise defined in this certificate are intended to have
the respective meanings ascribed to them in the Closing Certificate.

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

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

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

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

     Executed this ___day of                     , 20___.

 

 

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, a Delaware
corporation

 	 
	 	By:  	 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

 
Exhibit D to Closing Certificate and Agreement (Fremont/Building #4) — Page 2exv10w132

 

Exhibit 10.132

AGREEMENT REGARDING

PURCHASE AND REMARKETING OPTIONS

(FREMONT/BUILDING #4)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 21, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1	 	Additional Definitions	 	 	2	 
	 	 	“97-1/Default (100%)”	 	 	2	 
	 	 	“Applicable Purchaser”	 	 	2	 
	 	 	“BNPPLC’s Actual Out of Pocket Costs”	 	 	2	 
	 	 	“Break Even Price”	 	 	3	 
	 	 	“Break Even Price (Improvements)”	 	 	3	 
	 	 	“Break Even Price (Land)”	 	 	3	 
	 	 	“Committed Price”	 	 	3	 
	 	 	“Conditions to LRC’s Initial Remarketing Rights”	 	 	3	 
	 	 	“Cutoff Date”	 	 	3	 
	 	 	“Decision Not to Sell at a Loss”	 	 	4	 
	 	 	“Deemed Sale”	 	 	4	 
	 	 	“DSD Sales Proceeds (Improvements)”	 	 	4	 
	 	 	“DSD Sales Proceeds (Land)”	 	 	4	 
	 	 	“Extended Remarketing Period”	 	 	4	 
	 	 	“Fair Market Value”	 	 	4	 
	 	 	“Final Sale Date”	 	 	4	 
	 	 	“Improvements Value Percentage”	 	 	5	 
	 	 	“Initial Remarketing Notice”	 	 	5	 
	 	 	“Initial Remarketing Price”	 	 	5	 
	 	 	“Land Value Percentage”	 	 	5	 
	 	 	“Lease Balance”	 	 	5	 
	 	 	“LRC’s Extended Remarketing Right”	 	 	5	 
	 	 	“LRC’s Initial Remarketing Rights”	 	 	6	 
	 	 	“Make Whole Amount”	 	 	6	 
	 	 	“Maximum Remarketing Obligation (Improvements)”	 	 	6	 
	 	 	“Maximum Remarketing Obligation (Land)”	 	 	6	 
	 	 	“Notice of Sale”	 	 	6	 
	 	 	“Proposed Sale”	 	 	6	 
	 	 	“Proposed Sale Date”	 	 	6	 
	 	 	“Purchase Option”	 	 	6	 
	 	 	“Put Option”	 	 	6	 
	 	 	“Qualified Sale”	 	 	7	 
	 	 	“Sale Closing Documents”	 	 	7	 
	 	 	“Supplemental Payment”	 	 	7	 
	 	 	“Supplemental Payment Obligation”	 	 	7	 
	 	 	“Valuation Procedures”	 	 	7	 
	2	 	LRC’s Options and Obligations on the Designated Sale Date	 	 	7	 
	 
	 	(A)	 	Purchase Option; Initial Remarketing Rights; Supplemental Payment Obligation	 	 	7	 
	 
	 	(B)	 	Designation of the Purchaser	 	 	10	 
	 
	 	(C)	 	Delivery of Property Related Documents If BNPPLC Retains the Property	 	 	10	 

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	(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	 
	 
	 	(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)	 	Status of this Agreement Generally	 	 	15	 
	 
	 	(B)	 	Automatic Termination of LRC’s Rights	 	 	15	 
	 
	 	(C)	 	Payment Only to BNPPLC	 	 	16	 
	 
	 	(D)	 	Preferences and Voidable Transfers	 	 	16	 
	 
	 	(E)	 	Remedies Under the Other Operative Documents	 	 	16	 
	7	 	Certain Remedies Cumulative	 	 	16	 
	8	 	Attorneys’ Fees and Legal Expenses	 	 	16	 
	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

(iii)

 

 

AGREEMENT REGARDING

PURCHASE AND REMARKETING OPTIONS

(FREMONT/BUILDING #4)

     This AGREEMENT REGARDING PURCHASE AND REMARKETING OPTIONS (FREMONT/BUILDING #4) (this
“Agreement”), dated as of December 21, 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 (Fremont/Building #4) 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 the Improvements on the Land by conveyance from the Prior Owner.

     Also contemporaneously with this Agreement, BNPPLC and LRC are executing a Lease Agreement
(Fremont/Building #4) dated as of the Effective Date (the “Lease”), pursuant to which LRC is
leasing from BNPPLC 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.)

     As provided in the Closing Certificate, this Agreement and the other Operative Documents are
intended to amend, restate and replace entirely LRC’s Prior Lease.

     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 consists of or results from:

     (A) a failure of LRC to make any payment required by any Operative Document, including
any payment of Base Rent required by the Lease or any Supplemental Payment required by this
Agreement on the Designated Sale Date;

     (B) any Hazardous Substance Activities occurring prior to the Cutoff Date;

     (C) any failure of LRC 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;

     (D) any failure of LRC to apply insurance or condemnation proceeds received by it with
respect to the Property as required by the Lease;

     (E) any breach by LRC of subparagraphs 1(B), (D), (E) or (G) of the Closing
Certificate; or

     (F) any bankruptcy or insolvency proceeding involving LRC or any of its Subsidiaries,
as the debtor.

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.

“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.

“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).

 

Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 2

 

 

“Break Even Price” means an amount equal to:

	•	 	the Lease Balance, plus

	•	 	BNPPLC’s Actual Out of Pocket Costs.

“Break Even Price (Improvements)” means an amount equal to:

	•	 	the portion of the Lease Balance attributable to the Improvements (such portion to be
determined for purposes of this Agreement using an allocation of the Lease Balance between
Land and Improvements as provided in the definition of Lease Balance in the Common
Definition and Provisions Agreement, which sets forth an agreed initial allocation based on
an appraisal obtained by LRC and provides for the allocation of Qualified Prepayments, if
any, which may be deducted in the calculation of the Lease Balance), plus

	•	 	the product computed by multiplying BNPPLC’s Actual Out of Pocket Costs times the
Improvements Value Percentage.

“Break Even Price (Land)” means an amount equal to:

	•	 	the portion of the Lease Balance attributable to the Land (such portion to be determined
for purposes of this Agreement using an allocation of the Lease Balance between Land and
Improvements as provided in the definition of Lease Balance in the Common Definition and
Provisions Agreement, which sets forth an agreed initial allocation based on an appraisal
obtained by LRC and provides for the allocation of Qualified Prepayments, if any, which may
be deducted in the calculation of the Lease Balance), plus

	•	 	the product computed by multiplying BNPPLC’s Actual Out of Pocket Costs times the Land
Value Percentage.

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

“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

 

Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 3

 

 

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).

“DSD Sales Proceeds (Improvements)” means that portion of any cash payment actually received
by BNPPLC on the Designated Sale Date from an Applicable Purchaser as the purchase price for
the Property which is attributable to the Improvements. Such portion will equal the amount
of any such cash payment actually received by BNPPLC times the Improvements Value
Percentage.

“DSD Sales Proceeds (Land)” means that portion of any cash payment actually received by
BNPPLC on the Designated Sale Date from an Applicable Purchaser as the purchase price for
the Property which is attributable to the Land. Such portion will equal the amount of any
such cash payment actually received by BNPPLC times the Land Value Percentage.

“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

 

Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 4

 

 

	 	 	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.

“Improvements Value Percentage” means a percentage determined as follows:

     (1) Unless a different percentage is determined using the Valuation Procedures prior to
the Designated Sale Date as provided below, such percentage will equal the quotient computed
by dividing the portion of the Lease Balance attributable to the Improvements by the total
Lease Balance.

     (2) Prior to the Designated Sale Date, either party (LRC or BNPPLC) may elect to have
such percentage determined using the Valuation Procedures, subject to the condition that the
party making the election must give notice thereof to the other party no earlier than nine
months prior to, and no later than six months prior to, the Designated Sale Date. Following
such an election and the allocation of the Property’s value between Improvements and Land
using the Valuation Procedures, the Improvements Value Percentage will equal the percentage
of the Property’s value allocated to the Improvements, rather than to the Land, as described
in Valuation Procedures.

“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.

“Land Value Percentage” means a percentage equal to the difference computed by subtracting
the Improvements Value Percentage from 100%.

“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).

 

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

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

     (1) the amount (if any) by which the Lease Balance exceeds 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) 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 (Improvements)” means a dollar amount equal to 81.699883% of
the portion of the Lease Balance attributable to the Improvements.

“Maximum Remarketing Obligation (Land)” means a dollar amount equal to 100.000000% of the
portion of the Lease Balance attributable to the Land.

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

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

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

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

 

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“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 (3) of subparagraph 3(D), to reimburse to LRC the entire amount of any
Supplemental Payment theretofore made by LRC to BNPPLC; or
	 
	 	(b)	 	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).

“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 is required by this Agreement of (i) the Fair Market
Value of the Property or (ii) the allocation of the Property’s value between Land and
Improvements.

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

 

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     (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 and 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) either LRC or BNPPLC must have made the election described in
clause (2) of the definition of Improvements Value Percentage above to have
the Improvements Value Percentage determined using the Valuation Procedures;

     (ii) LRC must deliver an Initial Remarketing Notice to BNPPLC within
the thirty days prior to the Designated Sale Date;

     (iii) on the Designated Sale Date the Applicable Purchaser tenders to
BNPPLC a payment equal to the Initial Remarketing Price; and

     (iv) 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 and other
amounts then due under the other Operative Documents.

Further, notwithstanding the satisfaction of the Conditions to LRC’s Initial
Remarketing Rights, if the Break Even Price exceeds the sum of the following: (1)
any cash price that is actually tendered directly to BNPPLC by the Applicable
Purchaser on the Designated Sale Date and that BNPPLC will not be required to

 

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pay
over to LRC because of the next subparagraph 2(A)(2)(b), and (2) any Supplemental
Payment actually paid to BNPPLC by LRC on the Designated Sale Date as described
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,
then (1) BNPPLC will pay to LRC the amount, if any, by which the DSD Sales Proceeds
(Improvements) exceeds the Break Even Price (Improvements); and (2) BNPPLC will pay
to LRC the amount, if any, by which the DSD Sales Proceeds (Land) exceeds the Break
Even Price (Land).

     (3) LRC must pay to BNPPLC on the Designated Sale Date a supplemental payment (the
“Supplemental Payment”) if for any reason whatsoever: (i) BNPPLC sells the Property pursuant
to subparagraph 2(A)(1) or subparagraph 2(A)(2)(a), but does not receive a cash price
(calculated prior to any netting of expenses of BNPPLC) on the Designated Sale Date that
equals or exceeds the sum of (A) the Break Even Price, plus (B) all payments, if any,
required of BNPPLC by the preceding subparagraph 2(A)(2)(b); or (ii) BNPPLC does not sell
the Property on the Designated Sale Date pursuant to subparagraph 2(A)(1) or subparagraph
2(A)(2)(a). If BNPPLC sells the Property to LRC or one of its Affiliates pursuant to
subparagraph 2(A)(1), LRC will pay BNPPLC’s Actual Out of Pocket Costs, if any. If,
however, BNPPLC does not sell the Property pursuant to subparagraph 2(A)(1), the required
Supplemental Payment will equal the sum of the following:

     (a) the lesser of (i) the amount by which the Break Even Price (Improvements)
exceeds any DSD Sale Proceeds (Improvements) received by BNPPLC, or (ii) the Maximum
Remarketing Obligation (Improvements); plus

     (b) the lesser of (i) the amount by which the Break Even Price (Land) exceeds
any DSD Sale Proceeds (Land) received by BNPPLC, or (ii) the Maximum Remarketing
Obligation (Land).

Without limiting the generality of the foregoing, LRC will have the obligation to
make a Supplemental Payment (the “Supplemental Payment Obligation”) 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

 

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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.

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, together
with all other files, documents and permits of LRC (including any 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 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

 

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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 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 (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

 

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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(B) because of LRC’s failure to pay any required Supplemental Payment.

     (3) 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”).

     (4) The Committed Price must be no less than the Make Whole Amount, 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 computed by

 

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subtracting
any Supplemental Payment previously paid by LRC to BNPPLC from the Lease Balance;

     (4) fourth, to reimburse LRC for any such Supplemental 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 Supplemental Payment 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 (3) 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 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,
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.

 

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     (C) Release and Quitclaim by LRC. If requested by BNPPLC at the time of or
after any Qualified Sale, LRC must 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, including its lien rights under
subparagraph 2(D). 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

 

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time before thirty days after receipt of a demand for such cure from LRC.

     (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) Status of this Agreement Generally. Except as expressly provided in 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 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.

     (B) Automatic Termination of LRC’s Rights. If LRC fails to pay the full amount
of any Supplemental Payment required by subparagraph 2(A)(3) on the Designated Sale Date, then

 

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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. 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 amounts due from LRC pursuant to any of the other Operative
Documents and its right to exercise the Put Option.

     (C) 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.

     (D) 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 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.

     (E) 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
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.

 

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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 2(D) above.

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 (Fremont/Building #4) — Page 17

 

 

     IN WITNESS WHEREOF, this Agreement Regarding Purchase and Remarketing Options
(Fremont/Building #4) is executed to be effective as of December 21, 2007.

	 	 	 	 	 
	 	BNP PARIBAS LEASING CORPORATION, 

a Delaware corporation

 	 
	 	By:  	/s/ Lloyd G. Cox 	 
	 	 	Lloyd G. Cox, Managing Director 	 
	 	 	 	 
	 

 

Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Signature Page

 

 

[Continuation of signature pages for Agreement Regarding Purchase and Remarketing Options
(Fremont/Building #4) dated as of December 21, 2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION,
a 
Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 
	 

 

Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Signature Page

 

 

Exhibit A

Legal Description

PARCEL ONE:

PARCEL 2, PARCEL MAP 5001, FILED MARCH 18, 1987, IN BOOK 168 OF MAPS, AT PAGES 24 THROUGH 26,
ALAMEDA COUNTY RECORDS.

PARCEL TWO:

AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE FOLLOWING DESCRIBED LANDS, FOR THE BENEFIT
OF PARCEL 2, HEREIN, AS CREATED BY THAT CERTAIN INSTRUMENT RECORDED AUGUST 10, 1994, INSTRUMENT NO.
94-275492, ALAMEDA COUNTY RECORDS:

ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF FREMONT, COUNTY OF ALAMEDA, STATE OF
CALIFORNIA, BEING A PORTION OF PARCEL 3 AS SHOWN UPON THAT CERTAIN PARCEL MAP 5001, FILED FOR
RECORD IN BOOK 168 OF MAPS, AT PAGES 24, 25 AND 26, ALAMEDA COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWESTERLY CORNER OF SAID PARCEL 3; THENCE ALONG THE WESTERLY LINE OF PARCEL 3,
SOUTH 7° 11’ 33” EAST, 150.00 FEET; THENCE THE FOLLOWING FOUR (4) COURSES AND DISTANCES:
NORTH 82° 48’ 27” EAST, 12.00 FEET; NORTH 7° 11’ 33” WEST, 45.00 FEET; NORTH 4°
16’ 47” WEST, 59.04 FEET; AND NORTH 7° 11’ 33” WEST, 46.04 FEET TO THE NORTHERLY LINE OF
PARCEL 3; THENCE ALONG SAID NORTHERLY LINE, SOUTH 82° 48’ 27” WEST, 15.00 FEET TO THE POINT
OF BEGINNING.

PARCEL THREE:

AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE FOLLOWING DESCRIBED LANDS FOR THE BENEFIT OF
PARCEL 2, HEREIN, AS CREATED BY THAT CERTAIN INSTRUMENT RECORDED AUGUST 10, 1994, INSTRUMENT NO.
94-275492, ALAMEDA COUNTY RECORDS.

ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF FREMONT, COUNTY OF ALAMEDA, STATE OF
CALIFORNIA, BEING A PORTION OF PARCEL 3, AS SHOWN UPON THAT CERTAIN PARCEL MAP 5001, FILED FOR
RECORD IN BOOK

 

 

168 OF MAPS, AT PAGES 24, 25 AND 26, ALAMEDA COUNTY RECORDS, DESCRIBED
AS FOLLOWS:

BEGINNING AT A POINT IN THE WESTERLY LINE OF PARCEL 3, DISTANT NORTHERLY 25.18 FEET FROM THE
SOUTHWESTERLY CORNER THEREOF; THENCE ALONG SAID WESTERLY LINE, NORTH 7° 11’ 33” WEST, 281.49
FEET; THENCE THE FOLLOWING FIVE (5) COURSES AND DISTANCES: NORTH 82° 48’ 27” EAST, 12.00
FEET; SOUTH 7° 11’ 33” EAST, 168.34 FEET; SOUTH 37° 48’ 27” WEST, 5.66 FEET; SOUTH
7° 11’ 33” EAST, 110.09 FEET; AND SOUTH 89° 32’ 31” WEST, 8.06 FEET TO THE POINT OF
BEGINNING.

PARCEL FOUR:

AN EASEMENT FOR PRIVATE ACCESS FOR THE BENEFIT OF PARCEL ONE, ABOVE, OVER THAT PORTION OF PARCEL 2,
PARCEL MAP 5001 DESIGNATED “J.A.E.” ON SAID MAP.

A.P.N. 525-1350-035

 

 

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.

     This Exhibit also explains the procedures to be used to allocate the Property’s value between
the Land and the Improvements if such an allocation is required because of an election made by LRC
or BNPPLC as described in the definition of “DSD Sales Proceeds (Improvements)” in the body of this
Agreement

     If any determination of Fair Market Value or allocation of value between Land and Improvements
is required, LRC and BNPPLC will attempt in good faith to reach a written agreement upon the Fair
Market Value or such allocation (as the case may be, the “Applicable Determination”) 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 Applicable Determination will be
made by independent appraisers in accordance with the following procedures:

1. Definitions and Assumptions. In the case of any required determination of the Fair
Market Value of the Property, 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

     (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.

In the case of any required allocation of the Property’s value between Land and Improvements, all
appraisers or others involved in the allocation will be given the following instruction:

     The allocation of the Property’s value between Land and Improvements will be made as
follows: First, a determination of the Fair Market Value of the Property, taken as a whole,
will be made using the definition of Fair Market Value set out above. Second, a
determination will be made of the probable net cash price for which the Land would sell if
it were unimproved (and assuming that there is no higher and better use for it than as a
site for improvements of comparable size and utility to the Improvements) 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 (the “Land Value”). Next, the Land Value will be
subtracted from the Fair Market Value of the Property to determine the “Improvements Value”
(herein so called). The percentage of the Property’s value allocable to Improvements will
equal the quotient computed by dividing the Improvements Value by the Fair Market Value of
the Property. The percentage of the Property’s value allocated to the Land will equal the
quotient computed by dividing the Land Value by the Fair Market Value of the Property.

In addition, just as the appraisers or others making the allocation 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 the Fair Market Value of the Property, taken as a
whole, so too will they be instructed to make that assumption when calculating Land Value.

 

			
	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.

 

Exhibit B to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 2

 

 

2. Initial Selection of Appraisers; Appraiser’s Agreement as to Value. After having
failed to reach a written agreement upon any Applicable Determination 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 Applicable Determination (an “Appraiser’s Agreement”), 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 any required Applicable Determination.
Neither appraiser will be required to produce a formal appraisal prior to reaching an Appraiser’s
Agreement.

3. Selection of a Third Appraiser. If the two appraisers fail to deliver an Appraiser’s
Agreement 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 Applicable Determination. 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
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

 

Exhibit B to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 3

 

 

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 Applicable Determination, 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 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 any Applicable Determination 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
Applicable Determination 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. The expense of the appraisers and any officer of
the California Bar Association who participates in the appraisal process described above will be
paid by BNPPLC, but included in BNPPLC’s Actual Out of Pocket Costs for purposes of this Agreement.

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)) 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.

 

Exhibit B to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 4

 

 

     (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 (Fremont/Building #4) — Page 5

 

 

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 (Fremont/Building #4) — 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 (Fremont/Building #4) — 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 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 (Fremont/Building #4) — 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.]

PARCEL ONE:

PARCEL 2, PARCEL MAP 5001, FILED MARCH 18, 1987, IN BOOK 168 OF MAPS, AT PAGES 24 THROUGH 26,
ALAMEDA COUNTY RECORDS.

PARCEL TWO:

AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE FOLLOWING DESCRIBED LANDS, FOR THE BENEFIT
OF PARCEL 2, HEREIN, AS CREATED BY THAT CERTAIN INSTRUMENT RECORDED AUGUST 10, 1994, INSTRUMENT NO.
94-275492, ALAMEDA COUNTY RECORDS:

ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF FREMONT, COUNTY OF ALAMEDA, STATE OF
CALIFORNIA, BEING A PORTION OF PARCEL 3 AS SHOWN UPON THAT CERTAIN PARCEL MAP 5001, FILED FOR
RECORD IN BOOK 168 OF MAPS, AT PAGES 24, 25 AND 26, ALAMEDA COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHWESTERLY CORNER OF SAID PARCEL 3; THENCE ALONG THE WESTERLY LINE OF PARCEL 3,
SOUTH 7° 11’ 33” EAST, 150.00 FEET; THENCE THE FOLLOWING FOUR (4) COURSES AND DISTANCES:
NORTH 82° 48’ 27” EAST, 12.00 FEET; NORTH 7° 11’ 33” WEST, 45.00 FEET; NORTH 4°
16’ 47” WEST, 59.04 FEET; AND NORTH 7° 11’ 33” WEST, 46.04 FEET TO THE NORTHERLY LINE OF
PARCEL 3; THENCE ALONG SAID NORTHERLY LINE, SOUTH 82° 48’ 27” WEST, 15.00 FEET TO THE POINT
OF BEGINNING.

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 5

 

 

PARCEL THREE:

AN EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS THE FOLLOWING DESCRIBED LANDS FOR THE BENEFIT OF
PARCEL 2, HEREIN, AS CREATED BY THAT CERTAIN INSTRUMENT RECORDED AUGUST 10, 1994, INSTRUMENT NO.
94-275492, ALAMEDA COUNTY RECORDS.

ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF FREMONT, COUNTY OF ALAMEDA, STATE OF
CALIFORNIA, BEING A PORTION OF PARCEL 3, AS SHOWN UPON THAT CERTAIN PARCEL MAP 5001, FILED FOR
RECORD IN BOOK 168 OF MAPS, AT PAGES 24, 25 AND 26, ALAMEDA COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE WESTERLY LINE OF PARCEL 3, DISTANT NORTHERLY 25.18 FEET FROM THE
SOUTHWESTERLY CORNER THEREOF; THENCE ALONG SAID WESTERLY LINE, NORTH 7° 11’ 33” WEST, 281.49
FEET; THENCE THE FOLLOWING FIVE (5) COURSES AND DISTANCES: NORTH 82° 48’ 27” EAST, 12.00
FEET; SOUTH 7° 11’ 33” EAST, 168.34 FEET; SOUTH 37° 48’ 27” WEST, 5.66 FEET; SOUTH
7° 11’ 33” EAST, 110.09 FEET; AND SOUTH 89° 32’ 31” WEST, 8.06 FEET TO THE POINT OF
BEGINNING.

PARCEL FOUR:

AN EASEMENT FOR PRIVATE ACCESS FOR THE BENEFIT OF PARCEL ONE, ABOVE, OVER THAT PORTION OF PARCEL 2,
PARCEL MAP 5001 DESIGNATED “J.A.E.” ON SAID MAP.

A.P.N. 525-1350-035

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 6

 

 

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. Rights of the public in and to that portion of the land lying within CUSHING ROAD AND
CUSHING PARKWAY.

     3. An easement for ROADWAY AND PUBLIC UTILITY PURPOSES and incidental purposes, recorded MARCH
25, 1963 in REEL 835, IMAGE 483 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION
	 

	 	Affects:
	 	A NORTHWESTERLY PORTION

     4. An easement for ROADWAY AND PUBLIC UTILITY PURPOSES and incidental purposes, recorded JULY
16, 1968 in REEL 2218, IMAGE 506 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	THE CITY OF FREMONT, A MUNICIPAL CORPORATION
	 

	 	Affects:
	 	A NORTHERLY PORTION

     5. The terms and provisions contained in the document entitled “AGREEMENT” recorded JULY 16,
1968 in REEL 2218, IMAGE 508 of Official Records. BY AND BETWEEN ARMANDO RAMACCIOTTI, ET AL AND THE
CITY OF FREMONT.

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 7

 

 

     6. An easement for WATER PIPELINES and incidental purposes, recorded DECEMBER 21, 1978 in REEL
5729, IMAGE 192 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	THE EAST BAY DISCHARGES AUTHORITY
	 

	 	Affects:
	 	A PORTION OF SAID LAND

     7. An easement for UNDERGROUND WATER PIPELINES and incidental purposes, recorded MAY 20, 1980
as SERIES NO. 80-087802 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	EAST BAY DISCHARGES AUTHORITY
	 

	 	Affects:
	 	THE SOUTH 30 FEET

     8. An easement for PLANTING AND MAINTENANCE OF LANDSCAPING and incidental purposes, recorded
JULY 8, 1983 as SERIES NO. 83-120523 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION
	 

	 	Affects:
	 	THE NORTHERLY 15 FEET

     9. Covenants, conditions, restrictions and easements in the document recorded SEPTEMBER 1,
1983 as SERIES NO. 83-163024 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.

     10. Covenants, conditions, restrictions, easements, assessments, liens, charges, terms and
provisions in the document recorded SEPTEMBER 1, 1983 as SERIES NO. 83-163025 of Official Records,
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. 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.

     11. An easement for PLANTING AND MAINTENANCE OF LANDSCAPING and incidental purposes, recorded
SEPTEMBER 26, 1983 as SERIES NO. 83178017 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION
	 

	 	Affects:
	 	SOUTH 15 FEET OF NORTH 41 FEET

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 8

 

 

     12. An easement for ROADWAY AND PUBLIC UTILITY PURPOSES and incidental purposes, recorded
SEPTEMBER 26, 1983 as SERIES NO. 83-178018 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	CITY OF FREMONT, A MUNICIPAL CORPORATION
	 

	 	Affects:
	 	A NORTHERN PORTION

     13. The fact that the land lies within the boundaries of the FREMONT INDUSTRIAL Redevelopment
Project Area, as disclosed by the document recorded DECEMBER 22, 1983 as SERIES NO. 83-240646 of
Official Records.

Document(s) declaring modifications thereof recorded JANUARY 6, 1989 as SERIES NO. 89-004786 of
Official Records.

Document(s) declaring modifications thereof recorded FEBRUARY 28, 1992 as SERIES NO. 92063331 of
Official Records.

Document(s) declaring modifications thereof recorded FEBRUARY 4, 1993 as SERIES NO. 93042101 of
Official Records.

Document(s) declaring modifications thereof recorded JULY 28, 1998 as SERIES NO. 98261857 of
Official Records.

Document(s) declaring modifications thereof recorded AUGUST 8, 2005 as INSTRUMENT NO. 2005337462 of
Official Records.

Document(s) declaring modifications thereof recorded AUGUST 17, 2007 as INSTRUMENT NO. 2007304231
of Official Records.

     14. An easement shown or dedicated on the map filed or recorded MARCH 18, 1987 in BOOK 168,
PAGES 24 THROUGH 26 of PARCEL MAPS

	 	 	 	 	 
	 

	 	For:
	 	COUNTY ROAD NO. 2769 and incidental purposes.
	 

	 	AFFECTS:
	 	NORTHWESTERLY PORTION OF PARCEL 1
	 
	 	 	 	 
	 

	 	FOR:
	 	WATER PIPELINES AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	SOUTHERLY PORTION OF PARCELS 1 AND 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	STREET AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	NORTHERLY PORTION OF PARCELS 1 AND 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	LANDSCAPE AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	NORTHERLY PORTION OF PARCELS 1 AND 2.

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 9

 

 

	 	 	 	 	 
	 

	 	FOR:
	 	PUBLIC UTILITY AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	NORTHERLY PORTION OF PARCELS 1 AND 2.
	 
	 	 	 	 
	 

	 	FOR:
	 	PRIVATE STORM DRAIN AND INCIDENTAL PURPOSES.
	 

	 	AFFECTS:
	 	SOUTHERLY PORTION OF PARCEL 2.
	 
	 	 	 	 
	 

	 	FOR:

AFFECTS:
	 	JOINT ACCESS AND INCIDENTAL PURPOSES. 

EASTERLY PORTION OF PARCEL 1 AND THE WESTERLY PORTION OF PARCEL 2.

     15. The terms, provisions and easement(s) contained in the document entitled “DECLARATION OF
GRANT OF EASEMENT” recorded DECEMBER 2, 1991 as SERIES NO. 91318633 of Official Records.

     16. An easement for PUBLIC UTILITIES and incidental purposes, recorded AUGUST 4, 1992 as
SERIES NO. 92-253233 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	PACIFIC GAS AND ELECTRIC COMPANY, A CALIFORNIA CORPORATION
	 

	 	Affects:
	 	A PORTION OF SAID LAND

     17. An easement for INGRESS AND EGRESS and incidental purposes, recorded AUGUST 10, 1994 as
SERIES NO. 94-275493 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	SUMITOMO BANK LEASING AND FINANCE, INC., A DELAWARE CORPORATION
	 

	 	Affects:
	 	PORTIONS OF PARCEL 2

     18. The land lies within the boundaries of proposed community facilities District No. 1995-1,
as disclosed by a map filed JULY 10, 1995 in BOOK 10, PAGES 13-19 of maps of assessment and
community facilities districts.

     19. An easement for PRIVATE ACCESS and incidental purposes, recorded DECEMBER 7, 2000 as
INSTRUMENT NO. 2000359106 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	BEN II-VEF III, LLC, A DELAWARE LIMITED LIABILITY COMPANY
	 

	 	Affects:
	 	THE EASTERLY PORTION OF PARCEL ONE AND THE WESTERLY PORTION OF PARCEL TWO

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 10

 

 

     20. An easement for PUBLIC SERVICE and incidental purposes, recorded JUNE 12, 2003 as SERIES
NO. 2003345103 of Official Records.

	 	 	 	 	 
	 

	 	In Favor of:
	 	THE CITY OF FREMONT
	 

	 	Affects:
	 	PORTION OF SAID LAND

     21. [INSERT REFERENCE TO LEASE, AS AMENDED.]

 

Exhibit C to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — Page 11

 

 

Exhibit D

BILL OF SALE AND ASSIGNMENT

     Reference is made to: (1) that certain Agreement Regarding Purchase and Remarketing Options
(Fremont/Building #4) dated as of December 21, 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 (Fremont/Building #4) dated as of December 21,
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
(Fremont/Building #4) 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 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 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 of Assignor’s Affiliates or any
Participants, or (4) any other instrument being delivered to Assignor contemporaneously herewith
pursuant to the Purchase Agreement.

     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 (Fremont/Building #4) — 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 (Fremont/Building #4) — 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 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 (Fremont/Building #4) — 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 (Fremont/Building #4) incorporated by reference into
the Agreement Regarding Purchase and Remarketing Options dated as of December 21, 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 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 E to Agreement Regarding Purchase and Remarketing

Options (Fremont/Building #4) — 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
(Fremont/Building #4) (herein called the “Purchase Agreement”) dated as of December 21, 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 (Fremont/Building #4) — 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

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