Document:

Partnership Separation Agreement

 Exhibit 10.2 
 PARTNERSHIP SEPARATION AGREEMENT 
 This Partnership Separation Agreement
(this “Agreement”) is entered into as of November 2, 2012, by and among Mission West Properties, Inc., a Maryland corporation (the “Company”), Mission West Properties, L.P., a Delaware limited
partnership (“MWP”), Mission West Properties, L.P. I, a Delaware limited partnership (“MWP I”), Mission West Properties, L.P. II, a Delaware limited partnership (“MWP II”),
Mission West Properties, L.P. III, a Delaware limited partnership (“MWP III”), Mission West Properties, L.P. IV, a Delaware limited partnership (“MWP IV”), Mission West Properties, L.P. V, a Delaware
limited partnership (“MWP V” and, together with MWP, MWP I, MWP II, MWP III and MWP IV, the “Operating Partnerships”), and each of the limited partners (the “Limited Partners”)
of the Operating Partnerships. 
 RECITALS 
 A. The Company is the sole general partner of each of the Operating Partnerships. The Operating Partnerships are governed, as applicable, by those certain Amended and Restated Agreements of Limited
Partnership, dated as of July 1, 1998, for each of MWP, MWP I, MWP II and MWP III, and by those certain Agreements of Limited Partnership, dated as of December 21, 2011, for each of MWP IV and MWP V (collectively, the
“Partnership Agreements”). Unless otherwise defined in this Agreement, capitalized terms used in this Agreement have the meanings provided in the respective Partnership Agreements. 

B. The Limited Partners shown on Exhibit C and the Company own all of the units of limited partnership interest of the Operating
Partnerships (“L.P. Units”) outstanding, after giving effect to the anticipated conversion (the “Conversion”) to shares of the Company’s common stock, par value $.001 per share (the
“Common Stock”), of certain L.P. Units as set forth in that certain Asset Alignment and Limited Partner Conversion Agreement of even date herewith (the “Alignment Agreement”), by and among the parties
thereto provided, however, that Exhibit C will be updated upon final conversions as set forth in the Alignment Agreement; 
 C. The Company and the Limited Partners agree that their interests in owning, operating and managing real estate are divergent; 
 D. The Board of Directors of the Company (the “Board” or “Board of Directors”), upon the recommendation of the Independent Directors Committee thereof (the
“Independent Directors Committee”), has determined it is in the Company’s best interests and in the best interests of the Company’s stockholders to separate the business operations of the Company from the Operating
Partnerships and for the Company to withdraw as the sole general partner from each of the Operating Partnerships (the “Separation”); 
 E. The Separation is to be effected by the transfer of certain properties by the Operating Partnerships to the Company, the withdrawal of the Company as the sole general partner of each of the Operating
Partnerships and with respect to any limited partnership interests it currently holds or acquires prior to the Closing Date, and the assumption of debt and other liabilities by the Company (the “Debt and Other Obligations”),
as set forth herein on Exhibit B. 

  
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 F. The Operating Partnerships desire to continue to manage the remaining property not
transferred to the Company (the “Retained Property”). 
 G. Subject to and on the terms and conditions
of this Agreement, on the Closing Date (as defined in Section 3.1) the respective Operating Partnerships shall transfer to the Company the real properties described in the attached Exhibit A (collectively, the “Target
Properties”) and certain other assets, subject to the assumption of debt and other liabilities, as more particularly described on Exhibit B, in full redemption and cancellation of the Company’s general partnership
interest in each of the Operating Partnerships and any limited partnership interests of the Company in the Operating Partnerships (collectively, the “G.P. Interests”). 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows: 
 Section 1. Transfer of Property 
 On the Closing Date, the Operating Partnerships shall convey the Target Properties and assign certain contracts to the Company and the Company agrees to accept such Target Properties and assume such
contracts, debt and other obligations as follows: 
 1.1 Transferred Assets. Subject to the terms, covenants and
conditions of this Agreement, in exchange for the G.P. Interests, as provided herein, the Operating Partnerships shall at the Closing transfer and deliver to the Company, and the Company shall accept from the Operating Partnerships: 

1.2 Real Property. Fee simple interests in all of the Land comprising the Target Properties together with the Improvements thereon,
including, without limitation, all rights, privileges, servitudes, and other appurtenances related thereto, including, without limitation, all rights, title and interests of the Operating Partnerships, if any, in and to any streets, alleys or rights
of way which are adjacent to such land, and subsurface and other rights below such land and any air rights above such land, if any; 
 1.3 Intangible Property. All intangible property owned by the Operating Partnerships, including, without limitation, any Licenses and Permits, or other intangible rights related to the Land, if
any; 
 1.4 Personal Property; Leases; Debt and Other Obligations. The Personal Property, appurtenances, if any, Leases
and Debt and Other Obligations; and 
 1.5 Other Assets. Without duplication, all of the Operating Partnerships’
rights, title and interests in and to the Property and all security deposits, given by tenants to secure their performance under the Leases. 
 1.6 Service Contracts. All of the Operating Partnerships’ third party service contracts (other than the Leases) entered into by the Operating Partnerships relating to the management,
maintenance, leasing or operation of any of the Target Properties, if any, which shall be terminated as of the Closing. 

  
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 1.7 Excluded Assets. The Company shall not be entitled to receive any personal
property of the Operating Partnerships used for operations of the headquarters of the Company located at 10050 Bandley Drive, Cupertino, California, or its offsite storage facilities located at 1690 Memorex Drive, Santa Clara, California, and the
Operating Partnerships shall retain all other real properties held by the Operating Partnerships which are not Target Properties, and other assets as set forth on Exhibit D (the “Retained Properties”), the leases,
licenses and other occupancy agreements with tenants relating to the use or occupancy of any portion of any of the Retained Properties, including any amendments to the foregoing (collectively, the “Retained Leases”) and all
service contracts and any and all assets that relate solely to the Retained Properties and the Retained Leases. 
 1.8
Qualified Non-Recourse Debt and Other Obligations. The Company shall assume certain qualified non-recourse financing (the “Loans”) and the Debt and Other Obligations. The estimated Debt and Other Obligations assumed by
the Company in connection with the Target Properties is as set forth on Exhibit B. On the Closing Date, the Company and the Operating Partnerships will update Exhibit B as of the Closing Date; provided, however, that the total amount
of debt and other obligations will not be adjusted. 
 Section 2. Allocation of Obligations 

2.1 Leases and Debt and Other Obligations. 
 a. On the Closing Date, the Company shall assume the Loans, the Leases and the Debt and Other Obligations. 
 b. In addition to the liabilities and other obligations set forth in Section 2.1.a above, the Company shall be allocated such cash and additional debt and obligations sufficient to ensure that the
Company receives the fair value of its respective capital accounts of each Operating Partnership, as reflected by the asset values set forth on Exhibit A, while taking into consideration the liabilities and other obligations set forth in
Section 2.1a. All partners, including, but not limited to, the Company, shall be entitled to their pro rata share of the fair value of their respective capital accounts based on their underlying ownership in each respective Operating
Partnership. Each Operating Partnership shall be accounted for separately and each partner in their respective Operating Partnership shall be entitled to their pro rata share of their respective fair value capital account, based on their
ownership interest in the underlying Operating Partnership. In the event of an over-distribution, any excess will be returned to the Operating Partnerships. Any required adjustments will be made in accordance with capital accounts in the Operating
Partnerships. These final calculations will be certified by the Company President or Chief Financial Officer and a member of the Independent Directors Committee. All fees and expenses incurred by the Company and the Operating Partnerships in
connection with the transactions contemplated hereby and the other transactions and agreements contemplated by the Company through Closing and estimated post-Closing shall be allocated among the Company and the Operating Partnerships on an
enterprise level basis. 

  
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 c. Notwithstanding Sections 2.1.a and 2.1.b, the minimum per share price
payable to stockholders of the Company shall not be less than $9.20 per share of Common Stock (as adjusted, the “Minimum Stock Price”) less the amount of any dividends distributed with respect to such shares after the date of
this Agreement and after giving effect to all conversions of L.P. Units to shares of Common Stock and/or notes as of the Closing Date as set forth in the Alignment Agreement. The Minimum Stock Price is (i) based upon the facts available to the
Company as of October 31, 2012 and the pro forma projections set forth in Exhibits A, B, D and E attached hereto; and (ii) subject to change due to subsequent developments related to the projections that are unknown to the Company
as of the date hereof. On the Closing Date, the Company and the Operating Partnerships will update Exhibits A, B, D and E as of the Closing Date. The fair value of the capital accounts for the Limited Partners on a per L.P. Unit basis,
calculated pursuant to Section 2.1 b., and adjusted in a manner consistent with any adjustments to the “Minimum Stock Price” pursuant to this paragraph, shall not be greater than the per share price payable to stockholders of the
Company. 
 d. To the extent that the Limited Partners elect to tender greater or less than 48,504,094 L.P. Units
for the Conversion, Carl Berg or any other Limited Partner that remains in the Operating Partnerships agrees to elect to convert or withdraw his election to convert with respect to the number of L.P. Units necessary such that 57,245,906 L.P. Units
remain after the Conversion. 
 2.2 Indemnification. 

a. The Company shall indemnify and hold harmless each of the Operating Partnerships, its partners and its respective
directors, officers, employees and agents (collectively, the “Partnership Indemnified Parties”) from and against any claim, loss, damage, liability or expenses, including, without limitation, reasonable attorneys’ fees
and court costs, incurred by the Partnership Indemnified Parties after the Closing Date with respect to the Target Properties and the Leases with any insurance carried by the Company, all of which will be based upon the levels of coverage and
deductibles maintained by the Company as of the date of this Agreement. The Company is responsible for the payment of any deductibles. 
 b. The Operating Partnerships shall indemnify and hold harmless each of the Company, its stockholders, officers, directors and employees and agents, and their respective partners, directors, officers,
employees and agents (collectively, the “Company Indemnified Parties”) from and against any claim, loss, damage, liability or expenses, including, without limitation, reasonable attorneys’ fees and court costs, incurred
by the Company Indemnified Parties after the Closing Date with respect to the Retained Properties, the Retained Leases, and any contracts relating to the Retained Properties with any insurance carried by the Operating Partnerships or Company, all of
which will be based upon the levels of coverage and deductibles maintained by the Operating Partnerships or Company as of the date of this Agreement. The Operating Partnerships or Company, as applicable under the policy, is responsible for the
payment of any deductibles. 

  
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 2.3 Retained Properties. On the Closing Date, following the conveyance of the Target
Properties, the Operating Partnerships shall retain the remaining property and any all rights and obligations appurtenant thereto. The complete list of the “Retained Assets and Liabilities” is attached hereto in
Exhibit D. On the Closing Date, the Company and the Operating Partnerships will update Exhibit D. 
 2.4
Target Properties, Other Assets, and Liabilities. Effective immediately following the conveyances on the Closing Date, the complete list of assets and liabilities of the Company received from the Operating Partnerships will be as set forth on
Exhibit E. On the Closing Date, the Company and the Operating Partnerships will update Exhibit E. 
 Section 3. Closing
Date and Escrow 
 3.1 Closing Date. The parties shall close the transactions contemplated by this Agreement (the
“Closing”) on December 26, 2012, or such other date as is determined by the Company (the “Closing Date”). 
 3.2 Escrow. This Section 3, together with such additional instructions as First American Title Insurance Company, San Jose, California, Attention: Liz Zankich (the “Escrow
Holder”) shall reasonably request and the parties shall agree to, shall constitute the escrow instructions to Escrow Holder. Upon Escrow Holder’s written acceptance of this Agreement, Escrow Holder is authorized and directed to act
in accordance with the terms of this Agreement. The Company and the Operating Partnerships shall execute Escrow Holder’s general escrow instructions upon request; provided, however, that if there is any conflict or inconsistency between such
general escrow instructions and this Agreement, this Agreement shall control unless the intent to amend this Agreement is clearly stated in such additional instructions. 
 The escrow shall close on the Closing Date, provided that the conditions to the Closing set forth in Section 9.3 of this Agreement have been satisfied. 

3.3 The Operating Partnerships’ Closing Deliverables. Each of the Operating Partnerships, as applicable, shall deliver to the
Company at or before the Closing (or, in the case of the items referred to in Section 3.3a, deliver to the Escrow Holder prior to the Closing Date) the following: 

a. Duly executed and acknowledged grant deeds (the “Deeds”) conveying each of the Target
Properties owned by the Operating Partnership to the Company; 
 b. Two signed counterparts of an assignment and
assumption agreement, in which each of the Operating Partnerships assigns to the Company its rights under the Leases, and the Company assumes each of the Operating Partnership’s obligations under the Leases (the “Lease Assignment and
Assumption Agreement”); 
 c. The original Leases; 

d. Cash equal to all costs of Closing and prorations to be paid by each of the respective Operating Partnerships pursuant
to Sections 3.6 and 3.7; 

  
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 e. Cash, Debt and Other Obligations assumed by the Company in connection
with this Agreement; 
 f. Any agreement required by the lenders to any of the Operating Partnerships for the
Operating Partnerships to assign the Debt and Other Obligations to the Company or any other person, as applicable; 
 g. All records and files relating to the management or operation of the Target Properties, including, without limitation, all tenant files (including correspondence), property tax bills and all
calculations used to prepare statements of rental increases under the Leases and statements of common area charges, insurance, property taxes and other charges which are paid by tenants of the Target Properties; 

h. Such additional documents, including written escrow instructions consistent with this Agreement, as may be necessary or
desirable for conveyance of the Target Properties in accordance with this Agreement; and 
 i. Any letters of
credit in lieu of security deposits. 
 The Operating Partnerships shall deliver possession of the Target Properties to the Company at the
Closing free and clear of rights of any parties to possession, except for the existing Leases, the Debt and other Obligations being assumed by the Company. 
 3.4 The Company’s Closing Deliverables. The Company shall deliver to the Operating Partnerships at or before the Closing the following: 

a. Two signed counterparts of the Lease Assignment and Assumption Agreement; 

b. Cash equal to the prorations to be paid by the Company pursuant to Sections 3.6 and 3.7; 

c. Such additional documents, including written escrow instructions consistent with this Agreement, as may be necessary or
desirable for conveyance of all of its interests in the Operating Partnerships in accordance with this Agreement; and 
 d. A certificate acknowledging the Company elects West Coast Venture Capital, Inc. as general partner and resigns itself as general partner of each of the Operating Partnerships. 

3.5 Closing. When Escrow Holder has received all documents and funds identified in Sections 3.3 and 3.4, and has received
written notification from the Company and the Operating Partnerships that the conditions to Closing to be satisfied outside of escrow have been satisfied or waived, then, and only then, Escrow Holder shall: 

a. Record the Deeds; 

  
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 b. To the extent not otherwise delivered to the Company outside of escrow,
deliver to the Company: (i) conformed copies (showing all recording information thereon) of the Deeds; (ii) fully executed originals of the Lease Assignment and Assumption Agreement, (iii) the original Leases, and (iv) fully
executed originals of the any required assumption or other agreements in connection with the Company’s assumption of the Debt and Other Obligations; and 
 c. Deliver to the Operating Partnerships fully executed originals of the Lease Assignment and Assumption Agreement and any required assumption or other agreements in connection with the Company’s
assumption of the Loans, the Debt and Other Obligations. 
 If applicable, Escrow Holder shall prepare and sign closing statements showing all
receipts and disbursements and deliver copies to the Company and the Operating Partnerships and shall file with the Internal Revenue Service (with copies to the Company and the Operating Partnerships) the reporting statement required under
Section 6045(e) of the Internal Revenue Code. 
 3.6 Prorations. Subject to the other provisions of this
Section 3, all receipts and disbursements of the Target Properties will be prorated as of 12:01 a.m. on the Closing Date. 
 a. Rents under the Leases shall be apportioned as of the Closing Date. With respect to any rent arrearages collected under the Leases after Closing, the Company shall pay to the Operating Partnerships any
rent actually collected which is applicable to the period prior to and including the Closing Date. 
 b. The
Company shall be entitled to receive the total sum of all security deposits, paid to the Operating Partnerships by tenants under any Leases. 
 c. All real and personal property ad valorem taxes and special assessments, if any, whether payable in installments or not, including without limitation, all supplemental taxes attributable to the period
prior to and including the Closing Date for the calendar year in which the Closing occurs, shall be prorated to the Closing Date, based on the latest available tax rate and assessed valuation. If the amount of any installment of real property taxes
is not known as of the Closing Date, then a proration shall be made by the parties based on a reasonable estimate of the real property taxes applicable to the particular Transferred Property. 

d. All utility charges and billings for property services, including items such as landscape maintenance and the like
shall be prorated as of the Closing Date and the Company shall obtain a final billing therefor. 
 3.7 Closing Costs. The
Operating Partnerships shall pay transfer taxes, if any. The Operating Partnerships shall pay escrow fees, recording charges and all other closing costs. All other costs, if any, shall be apportioned in the customary manner for real property
transactions in the applicable county where a Target Property is located. 
 3.8 Possession. The Operating Partnerships
shall deliver exclusive right of possession of the Target Properties to the Company on the Closing Date. 

  
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 Section 4. Condition of Contributed Properties 

4.1 As Is, Where Is Condition. THE COMPANY ACKNOWLEDGES AND AGREES THAT, EXCEPT AS SPECIFICALLY PROVIDED IN THE DEEDS, THE
OPERATING PARTNERSHIPS (A) HAVE NOT MADE, (B) DO NOT MAKE, (C) SHALL NOT, BY THE EXECUTION AND DELIVERY OF ANY DOCUMENT OR INSTRUMENT EXECUTED AND DELIVERED IN CONNECTION WITH CLOSING, MAKE AND (D) SPECIFICALLY NEGATE AND
DISCLAIM, ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO:
(I) THE VALUE OF THE TARGET PROPERTIES; (II) THE INCOME TO BE DERIVED FROM THE TARGET PROPERTIES; (III) THE SUITABILITY OF THE TARGET PROPERTIES FOR ANY AND ALL ACTIVITIES AND USES WHICH THE COMPANY MAY CONDUCT THEREON, INCLUDING THE
POSSIBILITIES FOR FUTURE DEVELOPMENT OF THE TARGET PROPERTIES; (IV) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE TARGET PROPERTIES; (V) THE MANNER, QUALITY, STATE OF REPAIR OR
LACK OF REPAIR OF THE TARGET PROPERTIES; (VI) THE NATURE, QUALITY OR CONDITION OF THE TARGET PROPERTIES, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY THEREOF; (VII) THE COMPLIANCE OF OR BY THE TARGET PROPERTIES OR THEIR
OPERATION CONSISTENT WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AGENCY OR BODY; (VIII) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE TARGET PROPERTIES; (IX) THE
TARGET PROPERTIES’ COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATION, ORDERS OR REQUIREMENTS, INCLUDING BUT NOT LIMITED TO, TITLE III OF THE AMERICANS WITH DISABILITIES ACT OF 1990, CALIFORNIA HEALTH
AND SAFETY CODE, THE FEDERAL WATER POLLUTION CONTROL ACT, THE FEDERAL RESOURCE CONSERVATION AND RECOVERY ACT, THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., PART 261, THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND
LIABILITY ACT OF 1980, AS AMENDED, THE RESOURCE CONSERVATION AND RECOVERY ACT OF 1976, THE CLEAN WATER ACT, THE SAFE DRINKING WATER ACT, THE HAZARDOUS MATERIALS TRANSPORTATION ACT, THE TOXIC SUBSTANCE CONTROL ACT, AND REGULATIONS PROMULGATED UNDER
ANY OF THE FOREGOING; (X) THE PRESENCE OR ABSENCE OF HAZARDOUS MATERIALS AT, ON, UNDER, OR ADJACENT TO THE TARGET PROPERTIES; (XI) THE CONFORMITY OF THE IMPROVEMENTS TO ANY PLANS OR SPECIFICATIONS FOR THE TARGET PROPERTIES, INCLUDING,
WITHOUT LIMITATION, ANY PLANS AND SPECIFICATIONS THAT MAY HAVE BEEN OR MAY BE PROVIDED TO THE COMPANY; (XII) THE CONFORMITY OF THE TARGET PROPERTIES TO PAST, CURRENT OR FUTURE APPLICABLE ZONING OR BUILDING REQUIREMENTS; (XIII) ADEQUACY OR
SUFFICIENCY OF ANY UNDERSHORING OF THE TARGET PROPERTIES; (XIV) ADEQUACY OR SUFFICIENCY OF ANY DRAINAGE OF THE TARGET PROPERTIES; (XV) THE FACT THAT ALL OR A PORTION OF THE TARGET 

  
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PROPERTIES MAY OR MAY NOT BE LOCATED ON OR NEAR AN EARTHQUAKE FAULT LINE; (XVI) THE EXISTENCE OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE TARGET PROPERTIES; OR
(XVII) WITH RESPECT TO ANY OTHER MATTER. THE COMPANY FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE TARGET PROPERTIES AND REVIEW INFORMATION AND DOCUMENTATION AFFECTING THE TARGET PROPERTIES, EXCEPT FOR
THE DEEDS, THE COMPANY IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE TARGET PROPERTIES AND REVIEW OF SUCH INFORMATION AND DOCUMENTATION AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY THE OPERATING PARTNERSHIPS. THE COMPANY FURTHER
ACKNOWLEDGES AND AGREES THAT ANY INFORMATION MADE AVAILABLE TO THE COMPANY OR PROVIDED OR TO BE PROVIDED BY OR ON BEHALF OF THE OPERATING PARTNERSHIPS WITH RESPECT TO THE TARGET PROPERTIES WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT THE
OPERATING PARTNERSHIPS HAVE NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND THE OPERATING PARTNERSHIPS MAKE NO REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. THE OPERATING PARTNERSHIPS ARE NOT
LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE TARGET PROPERTIES, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, AGENT, SERVANT OR OTHER PERSON. THE COMPANY FURTHER
ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SALE OF THE TARGET PROPERTIES AS PROVIDED FOR HEREIN IS MADE ON AN “AS IS” CONDITION AND BASIS WITH ALL FAULTS AND SUBJECT TO ALL DEFECTS, AND THAT THE
OPERATING PARTNERSHIPS HAVE NO OBLIGATIONS TO MAKE REPAIRS, REPLACEMENTS OR IMPROVEMENTS EXCEPT AS MAY OTHERWISE BE EXPRESSLY STATED HEREIN. THE COMPANY REPRESENTS, WARRANTS AND COVENANTS TO THE OPERATING PARTNERSHIPS THAT, EXCEPT FOR THE DEEDS, THE
COMPANY IS RELYING SOLELY UPON THE COMPANY’S OWN INVESTIGATION OF THE TARGET PROPERTIES. 
 Section 5. Redemption of Partnership
Interests 
 5.1 Effective Time. Effective as of the Closing, the Operating Partnerships shall be deemed to have
transferred the Target Properties to the Company subject to the assumption of the Debt and Other Obligations as more particularly described on Exhibit B, in full redemption and cancellation of the Company’s general partnership interest
in each of the Operating Partnerships and any limited partnership interests of the Company in the Operating Partnerships. Thereafter the Company shall have no ownership interest in the Operating Partnerships. 

5.2 Tax Matters. The Operating Partnerships shall use all reasonable efforts to furnish to the Company and the Partners, within 60
days of the close of the current taxable year, the tax information reasonably required by the Company for its federal and state income tax returns. 

  
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 Section 6. Definitions 
 As used in this Agreement, the following terms shall have the following meanings: 

“Closing” as defined in Section 3.1. 
 “Closing Date” as defined in Section 3.1. 

“Governmental Agency” means any local, county, state and federal governmental agencies, authorities, regulatory
bodies, courts or tribunals, exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any executive official thereof. 

“Improvements” means the buildings, improvements and structures located on the Land, but shall expressly exclude
any fixtures owned by any tenant under any Lease. 
 “Land” means those certain parcels of land and
appurtenances thereto more particularly described on Exhibit A-1 through A-59 attached hereto, including the Operating Partnerships’ right, title and interest, if any, in and to all rights-of-way, open or proposed streets, alleys,
easements, strips or gores of land adjacent to such parcels of land. 
 “Leases” means all leases,
licenses and other occupancy agreements for the use or occupancy of any portion of any of the Target Properties, together with any amendments or modifications thereto. 
 “Licenses and Permits” means, collectively, all licenses, permits, approvals, certificates of occupancy, dedications, subdivision maps and entitlements now or hereafter issued,
approved or granted by any Governmental Agency in connection with the Target Property and Improvements, together with all renewals and modifications thereof, in each case to the extent transferable. 

“Personal Property” means, in respect of any Target Property, all of the right, title and interest of the
Operating Partnerships in and to the tangible personal property which is located at and used solely in connection with the Target Property as of the Closing Date. 
 “Property” means the Target Property, together with the related Personal Property, the Leases (together with any guaranties thereof and letters of credit and/or other security
posted as security for obligations thereunder) and to the extent transferable, all of Operating Partnerships’ right, title, and interest in and to all tangible and intangible assets of any nature relating solely to the Property, including
without limitation, (a) all warranties upon the Improvements or the Personal Property, (b) rights to any plans, specifications, engineering studies, reports, drawings, and prints relating to the construction, reconstruction, modification
and alteration of Improvements, (c) all works of art, graphic designs and other intellectual or intangible property used by Operating Partnerships in connection with the Property, including any trade name associated with the Improvements,
(d) the Licenses and Permits, (e) the name “Mission West Properties” and any variants thereof and similar business or trade names, to the extent transferable, and (f) any websites or other intellectual property of Operating
Partnerships, to the extent transferable.  
 “Title Company” means First American Title
Insurance Company, San Jose, California. 

  
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 Section 7. Obligations of Limited Partners. The Limited Partners consent to this Agreement and
shall cooperate and, at the request of the other parties hereto, execute, deliver and/or file such other papers, instruments, notices, petitions, statements, registrations, submissions of information, applications and other documents as the other
party or parties, the Title Company or Escrow Holder may reasonably request and do and perform such other acts and things (including all action reasonably necessary to seek and obtain any and all consents, waivers and approvals of any Governmental
Agency or third party required or advisable in connection with the transactions contemplated hereby) as may be reasonably necessary or desirable for effecting completely, in the most expeditious manner reasonably practicable, the consummation of
this Agreement and the transactions contemplated hereby. 
 Section 8. General Provisions 

8.1 Other Agreements Superseded; Waiver and Modification. This Agreement supersedes all prior agreements or understandings, written
or oral, between the parties relating to the Company’s interest in each of the Operating Partnerships, and incorporates the entire understanding of the parties with respect to the subject matter hereof. This Agreement may be amended or
supplemented only by a written instrument signed by the Company and the party against whom the amendment or supplement is sought to be enforced. The party benefited by any condition or obligation may waive the same, but such waiver shall not be
enforceable by another party unless made by written instrument signed by the waiving party. 
 8.2 Further Assurances.
Each party agrees, at its own expense, to execute, acknowledge and deliver any further instruments reasonably requested by another party, and to take any other action consistent with the terms of this Agreement that may reasonably be requested by
the other party, for the purpose of carrying out the terms of this Agreement. 
 8.3 Governing Law and Venue. This
Agreement shall be governed by and interpreted in accordance with the laws of the State of California, except as to matters relating to the internal actions and affairs of the Company (including the powers, rights, duties and obligations of the
directors, officers and stockholders) to which Maryland law would apply, which shall be governed by and interpreted in accordance with the laws of the State of Maryland. Any legal proceeding between the parties hereto shall take place in Santa Clara
County, California. 
 8.4 Binding Effect; Successors; Third Party Beneficiary. This Agreement shall be binding upon and
inure to the benefit of each of the parties hereto and their respective transferees, assigns and other successors in interest, and nothing herein is intended to, and does not, confer upon any person other than the parties hereto any rights or
remedies hereunder. 
 8.5 Counterparts. This Agreement may be executed in counterparts. 

8.6 References. Unless expressly indicated to the contrary, all references herein to Sections and Exhibits refer to the specified
part of this Agreement. All terms such as “herein,” “hereby” or “hereunder” refer to this Agreement as a whole. 

  
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 8.7 Headings; Date. The headings used in this Agreement are provided for convenience
only and this Agreement shall be interpreted as though they did not appear herein. 
 8.8 Attorneys’ Fees. If any
action or proceeding is commenced by either party to enforce their rights under this Agreement or to collect damages as a result of the breach of any of the provisions of this Agreement, the prevailing party in such action or proceeding, including
any bankruptcy, insolvency or appellate proceedings, shall be entitled to recover all reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees and court costs, in addition to any other relief awarded by the
court. 
 8.9 Time of the Essence. Time is of the essence for purposes of this Agreement. 

8.10 Independent Counsel. The Company, the Operating Partnerships and the Limited Partners each acknowledge that:
(i) Pillsbury Winthrop Shaw Pittman LLP is counsel to the Company and not the Operating Partners or the Limited Partners; (ii) all parties hereto have been advised to seek their own separate counsel; and (iii) this Agreement is the
result of negotiations between the parties hereto. 
 8.11 Termination. This Agreement may be terminated by the Company at
any time prior to the Closing Date. 
 Section 9. Board, Stockholder and Partner Approvals 

9.1. Board Approval. The Board of Directors of the Company, by resolutions duly adopted by the requisite vote provided for in the
charter and bylaws of the Company (the “Charter” and the “Bylaws”, respectively), at a meeting duly called and held and at which the quorum, and the individual directors, provided for in the Charter and Bylaws were present and
acting throughout as, upon recommendation of the Independent Directors Committee: (a) determined that this Agreement and the transactions contemplated hereby, and in connection herewith, are fair to, and in the best interests of, the Company
and its stockholders; (b) authorized and approved this Agreement and the performance by the Company, in its own capacity and in its capacity as the general partner of each of the Operating Partnerships, of its obligations hereunder, and any
other required transactions and agreements contemplated by the Company in connection herewith, (c) declared the transactions contemplated by, and in connection with, this Agreement to be advisable and in the best interests of the Company and
its stockholders; (d) directed that the transactions described in, substantially upon the terms set forth in, this Agreement and the other constituent agreements, be submitted for consideration by the stockholders of the Company at a special
meeting of such stockholders called for such purpose in accordance with Section 3-105 and other applicable sections of the Maryland General Corporation Law (the “MGCL”); and (e) determined to recommend that the
stockholders of the Company approve this Agreement, the transactions contemplated hereby. 
 9.2. Partner Approval. By
executing this Agreement the Company, in its capacity as general partner of each of the Operating Partnerships, and the Limited Partners of each of the Operating Partnerships authorize and approve this Agreement and the performance by such Operating
Partnership of its obligations hereunder, by all necessary limited partnership action. This Agreement shall be deemed duly authorized and approved by the execution of this 

  
 12 

 
Agreement by Limited Partners holding at least one-half of the L.P. Units of each of the Operating Partnership (not including L.P. Units held by the Company) and Limited Partners holding at least
one-half of the total L.P. Units of all of the Operating Partnerships (not including L.P. Units held by the Company). 
 9.3.
Stockholder Approval. The obligations of each party to consummate the transactions provided for herein are subject to and contingent upon: (a) approval by the stockholders of the Company of the transactions contemplated by this Agreement by
the affirmative vote of the holders of shares of common stock of the Company entitled to cast a majority of all of the votes entitled to be cast on such matters at a stockholders meeting duly called and held for such purpose (the
“Stockholder Meeting”), and (b) approval of the transactions contemplated by this Agreement by the affirmative vote of the holders of shares of common stock of the Company entitled to cast a majority of all of the votes
entitled to be cast on the transactions at the Stockholder Meeting duly called and held for such purpose, disregarding (in the numerator and denominator) the following holders: (i) M West Holdings, L.P., a Delaware limited partnership;
(ii) Carl E. Berg; or (iii) any person who is a member of the immediate family of Carl E. Berg or any entity which is controlled by Carl E. Berg. 
 [Signature Page Follows] 

  
 13 

 The parties have duly executed and delivered this Partnership Separation Agreement as of the
date set forth above. 
  

							
	OPERATING PARTNERSHIPS:	  	COMPANY:
		
	MISSION WEST PROPERTIES, L.P., a Delaware limited partnership	  	 MISSION WEST PROPERTIES, INC., a Maryland corporation

			
	By: Mission West Properties, Inc., a Maryland corporation, Its	  	By:	  	/s/ R.V. Marino
	General Partner	  	Name:	  	R.V. Marino
		  		  	Title:	  	President and COO
	By:	  	/s/ Carl E. Berg	  		  	
	Name:	  	Carl E. Berg	  		  	
	Title:	  	Chief Executive Officer	  		  	
			
	MISSION WEST PROPERTIES, L.P. I, a Delaware limited partnership:	  		  	
			
	By: Mission West Properties, Inc., a Maryland corporation, Its General Partner	  		  	
				
	By:	  	/s/ Carl E. Berg	  		  	
	Name:	  	Carl E. Berg	  		  	
	Title:	  	Chief Executive Officer	  		  	
			
	MISSION WEST PROPERTIES, L.P. II, a Delaware limited partnership:	  		  	
			
	By: Mission West Properties, Inc., a Maryland corporation, Its General Partner	  		  	
				
	By:	  	/s/ Carl E. Berg	  		  	
	Name:	  	Carl E. Berg	  		  	
	Title:	  	Chief Executive Officer	  		  	
			
	MISSION WEST PROPERTIES, L.P. III, a Delaware limited partnership:	  		  	
			
	By: Mission West Properties, Inc., a Maryland corporation, Its General Partner	  		  	
				
	By:	  	/s/ Carl E. Berg	  		  	
	Name:	  	Carl E. Berg	  		  	
	Title:	  	Chief Executive Officer	  		  	

  
 1 

							
	MISSION WEST PROPERTIES, L.P. IV, a Delaware limited partnership:	  		  	
			
	By: Mission West Properties, Inc., a Maryland corporation, Its General Partner	  		  	
				
	By:	  	/s/ Carl E. Berg	  		  	
	Name:	  	Carl E. Berg	  		  	
	Title:	  	Chief Executive Officer	  		  	
			
	MISSION WEST PROPERTIES, L.P. V, a Delaware limited partnership:	  		  	
			
	By: Mission West Properties, Inc., a Maryland corporation, Its General Partner	  		  	
				
	By:	  	/s/ Carl E. Berg	  		  	
	Name:	  	Carl E. Berg	  		  	
	Title:	  	Chief Executive Officer	  		  	

			
	 ACKNOWLEDGED AND AGREED TO:

 
 LIMITED PARTNERS:

 
 CARL E. BERG

 
 /s/ Carl E. Berg
	  	
	  
 1981 KARA ANN BERG
TRUST
  
 /s/ Clyde J. Berg
	  	
	  
 THELMER
AALGAARD
  
 /s/ Thelmer Aalgaard
	  	
	  
 CLYDE J. BERG

 
 /s/ Clyde J. Berg
	  	
	  
 KARA A. BERG

 
 /s/ Kara A. Berg
	  	
	  
 BERG & BERG
ENTERPRISES, INC.
  
 /s/ Carl E. Berg
	  	
	  
 BERG & BERG
ENTERPRISES, LLC
  
 /s/ Carl E. Berg
	  	

			
	 WEST COAST VENTURE CAPITAL, INC.

 
 /s/ Carl E. Berg
	 	
	  
 JTK TRUST

 
	 	
	  
 MICHAEL L.
KNAPP
  
 /s/ Michael Knapp
	 	
	  
 LEIGHTON
FARGHER
  
	 	
	  
 MYRON CRAWFORD

 
	 	
	  
 STEVE ABERLE

 
	 	
	  
 BRIAN AALGAARD

 
	 	
	  
 SONYA BERG

 
	 	

			
	 SHERRI ZORN

 
	 	
	  
 KNAPP INVESTMENTS
  
 /s/
Michael Knapp
	 	
	  
 KARA ANN BERG 2011
CHARITABLE
 REMAINDER TRUST

 
 /s/ Carl E. Berg
	 	
	  
 CLYDE J. BERG 2011
CHARITABLE
 REMAINDER TRUST

 
 /s/ Clyde J. Berg
	 	
	  
 CARL AND MARY ANN BERG
 CHARITABLE REMAINDER TRUST

 
 /s/ Carl E. Berg
	 	

 EXHIBIT A 
 SCHEDULE OF TARGET PROPERTIES AND OTHER ASSETS 
 [See attached pdf]

 EXHIBIT B 
 SCHEDULE OF DEBT AND OTHER OBLIGATIONS 
 [See attached pdf] 

 EXHIBIT C 
 SCHEDULE OF LIMITED PARTNERS 
 Carl E. Berg and Mary Ann Berg 

Clyde J. Berg 

Kara Ann Berg 

1981 Kara Ann Berg Trust 
 Thelmer and Patricia Aalgaard 
 Berg & Berg Enterprises, Inc. 

Berg & Berg Enterprises, LLC 
 West Coast Venture Capital, Inc. 

 Exhibit D 
 Schedule of Retained Assets and Liabilities 
 [See attached pdf] 

Description of Retained Properties 
 20605-20705 Valley Green 
 LEGAL DESCRIPTION 

PARCEL ONE: 
 All that certain real property
situate in the City of Cupertino, County of Santa Clara, State of California, described as follows: 
 Parcel 3 as shown on that certain Parcel
Map filed for record August 9, 1974 in Book 344 of Maps, page 10, Santa Clara County. 
 Excepting therefrom the underground rights, but
without surface rights of entry, as granted to the City of Cupertino by Instrument recorded January 3, 1975 in Book B233 of Official Records, page 276. 
 PARCEL TWO: 
 An easement for ingress and egress and for the installation and maintenance of public
utilities over the westerly 15 feet of Parcels 1 and 2 and the easterly 15 feet of Parcel 4, as said parcels are shown on that certain Parcel Map filed for record August 9, 1974 in Book 344 of Maps, page 10, Records of Santa Clara County.

 20400 Mariani 
 LEGAL DESCRIPTION 
 Real property in the City of Cupertino, County of Santa Clara,
State of California, described as follows: 
 PARCEL TWO: 
 Parcel 2, as said Parcel is shown on the Parcel Map filed November 23, 1977 in Book 408 of Maps at Pages 14 and 15, Santa Clara County Records. 

Excepting therefrom certain underground water rights as contained in that document recorded April 12, 1991 as Document No. 10863994 of Official
Records. 
 PARCEL TWO-A: 
 An easement
for ingress and egress over a portion of Parcel 1 as shown on the Parcel Map filed November 23, 1977 in Book 408 of Maps at Pages 14 and 15, Santa Clara County Records. 

  

 10500 N De Anza 
 LEGAL DESCRIPTION 
 Real property in the City of Cupertino, County of Santa Clara,
State of California, described as follows: 
 PARCEL ONE: 
 Parcel 1, as said Parcel is shown on the Parcel Map filed November 23, 1977 in Book 408 of Maps at Pages 14 and 15, Santa Clara County Records. 

Excepting therefrom certain underground water rights as contained in that document recorded April 12, 1991 as Document No. 10863994 of Official
Records. 
 PARCEL ONE-A: 
 An easement
for ingress and egress over a portion of Parcel 2 as shown on the Parcel Map filed November 23, 1977 in Book 408 of Maps at Pages 14 and 15, Santa Clara County Records. 

  

 Exhibit E 
 Schedule of Company Assets and Liabilities 
 [See attached pdf]Allied Nevada Gold Corp. Deferred Share Unit Plan

 Exhibit 10.1 

 

			
	

	  	 Allied Nevada Gold Corp.
 Deferred Share Unit Plan
 March 7, 2012

ARTICLE ONE 
 DEFINITIONS AND
INTERPRETATION 
 Section 1.01 Definitions: For the purposes of the Plan, unless such word or term is otherwise defined herein or
the context in which such word or term is used herein otherwise requires, the following words and terms with the initial letter or letters thereof capitalized shall have the following meanings: 

 

	 	(a)	“Beneficiary” means an individual who, on the date of a Participant’s death, is the person who has been designated in accordance with the Plan and the
laws applying to the Plan to receive the value of the Deferred Share Units standing to the credit of the Participant on the date of death, or where no such individual has been validly designated by the Participant, or where the individual does not
survive the Participant, the Participant’s legal representative; 

  

	 	(b)	“Board” means the board of directors of the Corporation; 

  

	 	(c)	“Change in Control” shall mean the occurrence of any of the following events, each of which shall be determined independently of the others:

 (i) any “Person” (as defined herein) becomes a “beneficial owner” (as such
term is used in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of a majority of the stock of the Corporation entitled to vote in the election of directors of the Corporation. For purposes
of this definition, the term “Person” is used as such term is used Sections 13(d) and 14(d) of the Exchange Act; 
 (ii) the individuals who are “Continuing Directors” (as hereinafter defined) of the Corporation cease to constitute a majority of the members of the Board. For purposes of this definition,
“Continuing Directors” shall mean the members of the Board on the date this Plan is adopted, provided that any person becoming a member of the Board subsequent to such date whose election or nomination for election was supported by at
least a majority of the directors who then comprised the Continuing Directors shall be considered to be a Continuing Director; 
 (iii) the stockholders of the Corporation adopt and consummate a plan of complete or substantial liquidation or an agreement providing for the distribution of all or substantially all of the assets of the
Corporation; 
 (iv) the Corporation is a party to a merger, consolidation, other form of business combination or
a sale of all or substantially all of its assets, with an unaffiliated third party, unless the business of the Corporation following consummation of such 

 
merger, consolidation or other business combination is continued following any such transaction by a resulting entity (which may be, but need not be, the Corporation) and the stockholders of the
Corporation immediately prior to such transaction hold, directly or indirectly, at least a majority of the voting power of the resulting entity; provided, however, that a merger or consolidation effected to implement a recapitalization of the
Corporation (or similar transaction) shall not constitute a Change in Control; or 
 (v) there is a change in
control of the Corporation of a nature that is reported in response to item 5.01 of Current Report on Form 8-K or any similar item, schedule or form under the Exchange Act, as in effect at the time of the change, whether or not the Corporation, is
then subject to such reporting requirements; 
  

	 	(d)	“Code” means the U.S. Internal Revenue Code of 1986, as amended; 

 

	 	(e)	“Committee” means the Board or if the Directors so determine in accordance with Section 2.03 of the Plan, the committee of the Directors authorized to
administer the Plan which may include any compensation committee of the Board; 

  

	 	(f)	“Common Shares” means the shares of common stock, par value $0.001 per share, of the Corporation; 

 

	 	(g)	“Corporation” means Allied Nevada Gold Corp., a corporation incorporated under the General Corporation Law of the State of Delaware; 

 

	 	(h)	“Deferred Share Unit” means the agreement by the Corporation to issue one previously unissued Common Share for each Deferred Share Unit, evidenced by way of
book-keeping entry in the books of the Corporation and administrated pursuant to this Plan; 

  

	 	(i)	“Designated Affiliate” means an affiliate, as such term is defined in the Rule 144 of the U.S. Securities Act of 1933, as amended and the rules and
regulations promulgated thereunder of the Corporation designated by the Committee for purposes of the Plan from time to time; 

  

	 	(j)	“Director” means a member of the Board from time to time; 

  

	 	(k)	“DSU Grant Date”, for Deferred Share Units issued in respect of a director’s remuneration for a year, means the date of the Annual Meeting of
Stockholders of the Corporation during each calendar year, or such other date recommended by the Committee and confirmed by the Board from time to time; 

  

	 	(l)	“DSU Grant Letter” has the meaning ascribed thereto in Section 3.03; 

 

	 	(m)	“DSU Payment” means, subject to any adjustment in accordance with Section 5.04, the issuance to a Participant of one previously unissued Common Share for
each whole Deferred Share Unit granted or credited to such Participant; 

  

	 	(n)	 “Eligible Director” means a person who is a Director or a member of the board of directors of any Designated Affiliate and who, at the
relevant time, is not otherwise an employee or a consultant of the Corporation or of a Designated Affiliate, and such person shall continue to be an Eligible Director for so long as such person continues to

  
 - 2 -

	 	
be a member of such board(s) of directors and is not otherwise an employee or a consultant of the Corporation or of a Designated Affiliate; 

 

	 	(o)	“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

 

	 	(p)	“Market Value” means the closing price of the Common Shares on the NYSE Amex on the day immediately prior to the date as of which Market Value is determined.
If the Common Shares are not trading on the NYSE Amex, then the Market Value shall be determined based on the trading price on the Toronto Stock Exchange or if the Common Shares are not listed on the Toronto Stock Exchange, on such stock exchange or
over-the-counter market on which the Common Shares are listed and posted for trading as may be selected for such purpose by the Committee. In the event that the Common Shares are not listed and posted for trading on any stock exchange or
over-the-counter market, the Market Value shall be the fair market value of such Common Shares as determined by the Committee in its sole discretion; 

  

	 	(q)	“Minimum Director Share Ownership Requirement” means the minimum number of Common Shares, Deferred Share Units and/or other securities of the Corporation a
Director must hold at any time as may be established from time to time by the Board; 

  

	 	(r)	“NYSE Amex” means the NYSE Amex LLC; 

  

	 	(s)	“Participant” means each Eligible Director to whom Deferred Share Units are issued; 

 

	 	(t)	“Plan” means this Deferred Share Unit Plan; 

  

	 	(u)	“Separation Date” means the date on which the Participant ceases to be an Eligible Director, provided that if the Participant is a U.S. Eligible Director, the
Separation Date shall be the date the Participant has experienced a separation from service as determined under Section 409A of the Code and applicable regulations and guidance thereunder; 

 

	 	(v)	“U.S. Eligible Director” means an Eligible Director whose benefit under this Plan is subject to U.S. federal income tax; and 

 

	 	(w)	“year” means a calendar year unless otherwise specified. 

 Section 1.02 Headings: The headings of all articles, Sections, and paragraphs in the Plan are inserted for convenience of reference only and shall not affect the construction or interpretation
of this Plan. 
 Section 1.03 Context, Construction: Whenever the singular or masculine are used in the Plan, the same shall be
construed as being the plural or feminine or neuter or vice versa where the context so requires. 
 Section 1.04 References to this
Deferred Share Unit Plan: The words “hereto”, “herein”, “hereby”, “hereunder”, “hereof” and similar expressions mean or refer to this Plan as a whole and not to any particular article, Section,
paragraph or other part hereof. 

  
 - 3 -

 ARTICLE TWO 
 PURPOSE AND ADMINISTRATION OF THE DEFERRED SHARE PLAN 
 Section 2.01 Purpose of the
Deferred Share Unit Plan: The purpose of this Plan is to strengthen the alignment of interests between the Eligible Directors and the shareholders of the Corporation by linking a portion of annual director compensation, as determined by the
Committee, to the future value of the Common Shares. In addition, the Plan has been adopted for the purpose of advancing the interests of the Corporation through the motivation, attraction and retention of directors of the Corporation and the
Designated Affiliates of the Corporation, it being generally recognized that the Plan aids in attracting, retaining and encouraging director commitment and performance due to the opportunity offered to them to receive compensation in line with the
value of the Common Shares. 
 Section 2.02 Administration of the Deferred Share Unit Plan: The Plan shall be administered by the
Committee and the Committee shall have full discretionary authority to administer the Plan including the authority to interpret and construe any provision of the Plan and to adopt, amend and rescind such rules and regulations for administering the
Plan as the Committee may deem necessary in order to comply with the requirements of the Plan. All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and conclusive and shall be binding on the
Participants and the Corporation. The appropriate officers of the Corporation are hereby authorized and empowered to do all things and execute and deliver all instruments, undertakings and applications and writings as they, in their absolute
discretion, consider necessary for the implementation of the Plan and of the rules and regulations established for administering the Plan. All costs incurred in connection with the Plan shall be for the account of the Corporation. 

Section 2.03 Delegation to Committee: All of the powers exercisable hereunder by the Directors may, to the extent permitted by applicable law
and as determined by resolution of the Directors, be exercised by the Committee. 
 Section 2.04 Record Keeping: The Corporation
shall maintain a register in which shall be recorded: 
  

	 	(a)	the name and address of each Participant in the Plan; 

  

	 	(b)	the number of Deferred Share Units granted to each Participant under the Plan; 

 

	 	(c)	the number of Deferred Share Units credited to a Participant pursuant to Section 3.04 hereof; 

 

	 	(d)	the date on which Deferred Share Units were granted or credited to a Participant; and 

 

	 	(e)	the date of redemption of Deferred Shares Units. 

ARTICLE THREE 
 DEFERRED SHARE
UNIT PLAN 
 Section 3.01 Deferred Share Unit Plan: A Deferred Share Unit Plan is established for Eligible Directors. 

Section 3.02 Issuance of Deferred Share Units: Subject to the terms of this Plan and the compensation policies of the Board, a number of
Deferred Share Units shall be automatically granted and issued to each Eligible Director on each DSU Grant Date, which number shall be calculated by 

  
 - 4 -

 
reference to (i) the dollar amount of the Eligible Director’s remuneration as a member of the Board determined by the Committee for the year to be satisfied by such Deferred Share Units
and (ii) the Market Value of the Common Shares on the DSU Grant Date. The Committee may, subject to applicable securities laws, also make additional determinations from time to time with respect to the number of Deferred Share Units to be
issued and authorize grants and the DSU Grant Date of such Deferred Share Units to new Eligible Directors appointed from time to time. On each DSU Grant Date, the number of Deferred Share Units so determined by the Committee shall be granted by the
Corporation to such Eligible Director without any further action being required by the Committee or such Eligible Director. 
 Notwithstanding
any of the foregoing, the Committee shall have the authority, subject to applicable securities laws, to: (i) make any special grant of Deferred Share Units to Eligible Directors, in such numbers, and at any time as the Committee will deem
appropriate; or (ii) authorize Participants or establish policies allowing Participants, who meet the Minimum Director Share Ownership Requirement then in effect, to elect to receive their annual remuneration, that would otherwise be satisfied
by the issuance of Deferred Share Units, in cash, or to receive any proportion of such remuneration in cash or Deferred Share Units, at a Participant’s discretion, such election to be made no later than 15 days prior to the commencement of the
year to which such remuneration relates; provided, however, that no issuance of Common Shares shall be made with respect to any new award of Deferred Share Units for a period of at least six months following the DSU Grant Date. 

Section 3.03 Deferred Share Unit Letter: Each grant of Deferred Share Units under the Plan shall be evidenced by a letter of the Corporation
(a “DSU Grant Letter”). Such Deferred Share Units shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee
deems appropriate for inclusion in a DSU Grant Letter. The provisions of the various DSU Grant Letters entered into under the Plan need not be identical, and may vary from Participant to Participant. 

Section 3.04 Dividends: In the event that a dividend (other than stock dividend) is declared and paid by the Corporation on Common Shares, a
Participant will be credited with additional Deferred Share Units. The number of such additional Deferred Share Units will be calculated by dividing (a) the total amount of the dividends that would have been paid to the Participant if the
Deferred Share Units standing to the Participant's account on the dividend record date had been outstanding Common Shares (and the Participant held no other Common Shares), by (b) the Market Value of a Common Share on the date on which such
dividends were paid. 
 Section 3.05 Redemption of Deferred Share Units and Issuance of Common Shares: Upon the Separation Date for
each Participant, the Corporation shall issue to such Participant one previously unissued Common Share for each outstanding whole Deferred Share Unit held by such Participant on such relevant Separation Date, less applicable statutory source
deductions. Fractional Deferred Share Units shall be cancelled. Notwithstanding the foregoing, if a U.S. Eligible Director is a “specified employee” as that term is defined under Section 409A of the Code (generally, one of the
top 50 highest paid officers of the Corporation, a subsidiary or any affiliate thereof), the redemption and issuance of Common Shares shall not occur until the first day of the seventh month following the Director’s Separation Date if necessary
to comply with Section 409A. 
 Where Deferred Share Units have been granted to a Participant with reference to his or her director
remuneration for a year, in the event such Participant resigns or is otherwise no longer an Eligible Director during such year other than in the event of, in connection with, or related to, a Change in

  
 - 5 -

 
Control of the Corporation, such Deferred Share Units will only partially vest and the Participant will only be entitled to a pro-rated DSU Payment in respect of such Deferred Share Units based
on the number of days such year that the Participant was an Eligible Director. 
 Section 3.06 Maximum Number of Shares: Subject to
adjustment as provided in Section 5.04 hereof, the maximum aggregate number of Common Shares that may be issued under the Plan is 500,000 Common Shares. Common Shares to be issued under the Plan will be authorized but previously unissued Common
Shares. 
 For purposes of this Section 3.06, the number of Common Shares covered by a Deferred Share Unit shall be counted on the DSU
Grant Date against the aggregate number of Common Shares available under the Plan, and the number of Common Shares that shall be counted against the Plan shall be equal to the number of Common Shares the Participant would be entitled to receive
under Section 3.05 hereof, if such DSU Payment were made on the DSU Grant Date. If a Deferred Share Unit otherwise terminates without the issuance of any Common Shares, then the number of Common Shares counted against the aggregate number of
Common Shares available under the Plan with respect to such Deferred Share Unit, to the extent of any such termination, shall again be available under the Plan. 
 The aggregate number of Common Shares issuable to insiders (as such term is defined under the TSX Company Manual) pursuant to Deferred Share Units and all other security-based compensation arrangements,
at any time, shall not exceed 10% of the total number of Common Shares then outstanding. The aggregate number of Common Shares issued to insiders pursuant to the Plan and all other security-based compensation arrangements, within a one year period,
shall not exceed 10% of the total number of Common Shares then outstanding. For purposes of this Section, the number of Common Shares then outstanding shall mean the number of Common Shares outstanding on a non-diluted basis immediately prior to the
proposed grant of the applicable Deferred Share Units. 
 Section 3.07 Term of the Deferred Share Unit Plan: The Plan is effective
as of August 1, 2012. The Plan shall remain in effect until it is terminated by the Board, subject to the requirements of the stock exchange upon which the Common Shares of the Corporation are then listed. Upon termination of the Plan, the
Corporation shall issue Common Shares with respect to all remaining Deferred Share Units under Section 3.04 above, as at the applicable Separation Date for each of the remaining Participants. 

ARTICLE FOUR 
 WITHHOLDING TAXES

 Section 4.01 Withholding Taxes: The Corporation or any Designated Affiliate of the Corporation may take such steps as are
considered necessary or appropriate for the withholding of any taxes which the Corporation or any Designated Affiliate of the Corporation is required to withhold by any law or regulation of any governmental authority whatsoever, and, without
limiting the generality of the foregoing, may effect such withholding through (i) the withholding of all or any portion of any payment due to the applicable Participant; or (ii) the withholding and sale, for and on behalf of the applicable
Participant, of the minimum number of Common Shares to be issued under the Plan sufficient to satisfy such withholding obligation of the Corporation’s or the Designated Affiliate. 
 Any Award may provide that the Participant may elect, in accordance with any conditions set forth in such Award, to satisfy in full the minimum tax withholding obligation by authorizing the Corporation or

  
 - 6 -

 
the Designated Affiliate of the Corporation to withhold from the Common Shares to be issued under this Plan the minimum number of Common Shares sufficient to satisfy such withholding obligation
and, at the Corporation’s or Designated Affiliate of the Corporation’s discretion, to sell such Common Shares, for and on behalf of such Participant, through a broker of the Corporation’s or the Designated Affiliate of the
Corporation’s choosing. This election and authorization is intended to comply with the requirements of Rule 10b5-1(c)(i)(B) of the Exchange Act and to be interpreted to comply with the requirements of Rule 10b5-1(c) of the Exchange Act.

 ARTICLE FIVE 

GENERAL 
 Section 5.01 Amendment
of Deferred Share Unit Plan: The Committee may from time to time in the absolute discretion of the Committee amend (without shareholder approval), modify and change the provisions of the Plan, provided that no such amendment will cause any
Deferred Share Units awarded under the Plan that are subject to Section 409A of the Code to fail to comply with the requirements of Section 409A of the Code, and provided further that any amendment, modification or change to the provisions
of the Plan which would: 
  

	 	(a)	materially increase the benefits of the holder under the Plan to the detriment of the Corporation and its shareholders; 

 

	 	(b)	increase the number of Common Shares, other than by virtue of Section 5.04 of the Plan, which may be issued pursuant to the Plan; 

 

	 	(c)	reduce the range of amendments requiring shareholder approval contemplated in this Section; 

 

	 	(d)	permit Deferred Share Units to be transferred other than for normal estate settlement purposes; or 

 

	 	(e)	materially modify the requirements as to eligibility for participation in the Plan; 

 shall only be effective upon such amendment, modification or change being approved by the shareholders of the Corporation, if required by the TSX, the NYSE Amex or any other stock exchange on which the
Common Shares are listed, or any other regulatory authorities having jurisdiction over the Corporation. In addition, any such amendment, modification or change of any provision of the Plan shall be subject to the approval, if required, by any
regulatory authority having jurisdiction over the securities of the Corporation. 
 Section 5.02 Non-Assignable: Except as otherwise
may be expressly provided for under this Plan or pursuant to a will or by the laws of descent and distribution, no Deferred Share Unit and no other right or interest of a Participant is assignable or transferable, and any such assignment or transfer
in violation of this Plan shall be null and void. 
 Section 5.03 Rights as a Shareholder and Director: No holder of any Deferred
Share Units shall have any rights as a shareholder of the Corporation at any time. Nothing in the Plan shall confer on any Eligible Director the right to continue as a Director of the Corporation or as a director of any Designated Affiliate or
interfere with right to remove such director. 

  
 - 7 -

 Section 5.04 Adjustment in Number of Payments Subject to the Deferred Share Unit Plan: In the
event there is any change in the Common Shares, whether by reason of a stock dividend, stock split, reverse stock split, consolidation, subdivision, reclassification or otherwise, an appropriate proportionate adjustment shall be made by the
Committee with respect to the number of Deferred Share Units then outstanding under the Plan as the Committee, in its sole discretion, may determine to prevent dilution or enlargement of rights. All such adjustments, as determined by the Committee,
shall be conclusive, final and binding for all purposes of the Plan. 
 Section 5.05 No Representation or Warranty: The Corporation
makes no representation or warranty as to the future value of any Deferred Share Units issued in accordance with the provisions of the Plan. No amount will be paid to, or in respect of, an Eligible Director under this Plan or pursuant to any other
arrangement, and no additional Deferred Share Units will be granted to such Eligible Director to compensate for a downward fluctuation in the price of the Common Shares, nor will any other form of benefit be conferred upon, or in respect of, an
Eligible Director for such purpose. 
 Section 5.06 Compliance with Applicable Law: If any provision of the Plan or any Deferred
Share Unit contravenes any law or any order, policy, by-law or regulation of any regulatory body having jurisdiction, then such provision shall be deemed to be amended to the extent necessary to bring such provision into compliance therewith.

 Section 5.07 Interpretation: This Plan shall be governed by and construed in accordance with the laws of the State of Delaware.

 Section 5.08 Beneficiary Designations: Subject to applicable law, a Participant may designate in writing a person who is a
dependent or relation as a Beneficiary to receive any amount payable under the Plan on the death of such Participant, and may change such designation from time to time. Such designation shall be in such form and executed and filed in such manner as
the Committee may from time to time determine. If no Beneficiary is designated, the Participant's legal representative will receive any amount payable under the Plan. 
 Section 5.09 Section 409A: The Plan is intended to comply with Section 409A of the Code. To the extent that Deferred Share Units are subject to Section 409A of the Code, the
provisions of the Plan and the applicable DSU Grant Letter shall be administered, interpreted and construed in a manner to comply with Section 409A of the Code. In no event shall the Board or the Corporation (or its employees, officers or
directors) have any liability to any Participant (or any other person) due to the failure of an award to satisfy the requirements of Section 409A. 

  
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