Document:

exv10w117

 

Exhibit 10.117

LEASE AGREEMENT

(FREMONT/BUILDING #1)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 21, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	1	 	Term	 	 	3	 
	 	 	(A)	 	Scheduled Term	 	 	3	 
	 	 	(B)	 	Extension of the Term	 	 	3	 
	2	 	Use and Condition of the Property	 	 	4	 
	 	 	(A)	 	Use	 	 	4	 
	 	 	(B)	 	Condition of the Property	 	 	4	 
	 	 	(C)	 	Consideration for and Scope of Waiver	 	 	5	 
	3	 	Rent	 	 	5	 
	 	 	(A)	 	Base Rent Generally	 	 	5	 
	 	 	(B)	 	Calculation of and Due Dates for Base Rent	 	 	5	 
	 

	 	 	 	(1)
	 	Determination of Payment Due Dates Generally
	 	 	5	 
	 

	 	 	 	(2)
	 	Special Adjustments to Base Rent Payment Dates and Periods
	 	 	5	 
	 

	 	 	 	(3)
	 	Base Rent Formula
	 	 	5	 
	 	 	(C)	 	Additional Rent	 	 	7	 
	 	 	(D)	 	Arrangement Fee	 	 	7	 
	 	 	(E)	 	Administrative Fees	 	 	7	 
	 	 	(F)	 	No Demand or Setoff	 	 	7	 
	 	 	(G)	 	Default Interest and Order of Application	 	 	7	 
	4	 	Nature of this Agreement	 	 	7	 
	 	 	(A)	 	“Net” Lease Generally	 	 	7	 
	 	 	(B)	 	No Termination	 	 	8	 
	 	 	(C)	 	Characterization of this Lease	 	 	8	 
	5	 	Payment of Executory Costs and Losses Related to the Property	 	 	10	 
	 	 	(A)	 	Local Impositions	 	 	10	 
	 	 	(B)	 	Increased Costs; Capital Adequacy Charges	 	 	10	 
	 	 	(C)	 	LRC’s Payment of Other Losses; General Indemnification	 	 	12	 
	 	 	(D)	 	Exceptions and Qualifications to Indemnities	 	 	15	 
	 	 	(E)	 	Collection on Behalf of Participants	 	 	18	 
	6	 	Items Included in the Property	 	 	18	 
	7	 	Environmental	 	 	19	 
	 	 	(A)	 	Environmental Covenants by LRC	 	 	19	 
	 	 	(B)	 	Right of BNPPLC to do Remedial Work Not Performed by LRC	 	 	19	 
	 	 	(C)	 	Environmental Inspections and Reviews	 	 	20	 
	 	 	(D)	 	Communications Regarding Environmental Matters	 	 	20	 
	8	 	Insurance Required and Condemnation	 	 	21	 
	 	 	(A)	 	Liability Insurance	 	 	21	 
	 	 	(B)	 	Property Insurance	 	 	22	 
	 	 	(C)	 	Failure to Obtain Insurance	 	 	22	 
	 	 	(D)	 	Condemnation	 	 	23	 
	 	 	(E)	 	Waiver of Subrogation	 	 	23	 
	9	 	Application of Insurance and Condemnation Proceeds	 	 	23	 
	 	 	(A)	 	Collection and Application of Insurance and Condemnation Proceeds Generally	 	 	23	 

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 	 	(B)	 	Advances of Escrowed Proceeds to LRC	 	 	24	 
	 	 	(C)	 	Right of LRC to Receive and Apply Remaining Proceeds Below a Certain Level	 	 	25	 
	 	 	(D)	 	Special Provisions Applicable After the Term Expires or an Event of Default	 	 	25	 
	 	 	(E)	 	LRC’s Obligation to Restore	 	 	25	 
	 	 	(F)	 	Takings of All or Substantially All of the Property	 	 	25	 
	10	 	Additional Representations, Warranties and Covenants of LRC Concerning the Property	 	 	26	 
	 	 	(A)	 	Operation and Maintenance	 	 	26	 
	 	 	(B)	 	Debts for Construction, Maintenance, Operation or Development	 	 	26	 
	 	 	(C)	 	Repair, Maintenance, Alterations and Additions	 	 	26	 
	 	 	(D)	 	Permitted Encumbrances	 	 	27	 
	 	 	(E)	 	Books and Records Concerning the Property	 	 	27	 
	11	 	Assignment and Subletting by LRC	 	 	27	 
	 	 	(A)	 	BNPPLC’s Consent Required	 	 	27	 
	 	 	(B)	 	Standard for BNPPLC’s Consent to Assignments and Certain Other Matters	 	 	28	 
	 	 	(C)	 	Consent Not a Waiver	 	 	28	 
	12	 	Assignment by BNPPLC	 	 	28	 
	 	 	(A)	 	Restrictions on Transfers	 	 	28	 
	 	 	(B)	 	Effect of Permitted Transfer or other Assignment by BNPPLC	 	 	29	 
	13	 	BNPPLC’s Right to Enter and to Perform for LRC	 	 	29	 
	 	 	(A)	 	Right to Enter	 	 	29	 
	 	 	(B)	 	Performance for LRC	 	 	29	 
	14	 	Remedies	 	 	29	 
	 	 	(A)	 	Traditional Lease Remedies	 	 	29	 
	 	 	(B)	 	Foreclosure Remedies	 	 	32	 
	 	 	(C)	 	Enforceability	 	 	32	 
	 	 	(D)	 	Remedies Cumulative	 	 	32	 
	15	 	Default by BNPPLC	 	 	33	 
	16	 	Quiet Enjoyment	 	 	33	 
	17	 	Surrender Upon Termination	 	 	33	 
	18	 	Holding Over by LRC	 	 	33	 
	19	 	Proprietary Information and Confidentiality	 	 	34	 
	 	 	(A)	 	Proprietary Information	 	 	34	 
	 	 	(B)	 	Confidentiality	 	 	34	 
	20	 	Recording Memorandum	 	 	35	 
	21	 	Independent Obligations Evidenced by Other Operative Documents	 	 	35	 

(ii)

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 
	Exhibits and Schedules
	 
	 	 	 	 
	Exhibit A

	 	Legal Description	 	 
	Exhibit B

	 	California Lien and Foreclosure Provisions	 	 

(iii)

 

LEASE AGREEMENT

(FREMONT/BUILDING #1)

     This LEASE AGREEMENT (FREMONT/BUILDING #1) (this “Lease”), 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 Lease, BNPPLC and LRC are executing a Common
Definitions and Provisions Agreement (Fremont/Building #1) 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 Lease for all purposes. As used in this Lease, capitalized terms defined in the
Common Definitions and Provisions Agreement and not otherwise defined in this Lease are intended to
have the respective meanings assigned to them in the Common Definitions and Provisions Agreement.

     At the request of LRC and to facilitate the transactions contemplated in the other Operative
Documents, BNPPLC is acquiring the Land described in Exhibit A and improvements on the Land
from SELCO Service Corporation, an Ohio corporation doing business in California as “Ohio SELCO
Service Corporation”, (the “Prior Owner”) contemporaneously with the execution of this Lease.

     Pursuant to an existing lease dated as of March 25, 2003, originally between the Prior Owner,
as lessor, and LRC, as lessee, (“LRC’s Prior Lease”) LRC is already in possession of the Land.

     In anticipation of BNPPLC’s acquisition of the Land and other property described below, BNPPLC
and LRC have reached agreement as to the terms and conditions upon which BNPPLC is willing to
continue to lease to LRC the Land and the Improvements, and by this Lease BNPPLC and LRC desire to
evidence such agreement. As provided in the Closing Certificate, this Lease and the other
Operative Documents are intended to amend, restate and replace entirely LRC’s Prior Lease.

GRANTING CLAUSES

     BNPPLC does hereby LEASE, DEMISE and LET unto LRC for the Term (as hereinafter defined) all
right, title and interest of BNPPLC, now owned or hereafter acquired, in and to:

     (1) the Land, including all interests in the Land acquired by BNPPLC from

 

 

the Prior Owner;

     (2) any and all Improvements;

     (3) all easements and other rights appurtenant to the Land or to the Improvements; and

     (4) (A) any land lying within the right-of-way of any street, open or proposed,
adjoining the Land, (B) any sidewalks and alleys adjacent to the Land, and (C) any strips
and gores between the Land and any abutting land that is not owned or being acquired by
BNPPLC.

BNPPLC’s interest in all property described in clauses (1) through (4) above is hereinafter
referred to collectively as the “Real Property”.

     To the extent, but only to the extent, that assignable rights or interests in, to or under the
following have been or will be acquired by BNPPLC from the Prior Owner or as described in Paragraph
6 below, BNPPLC also hereby grants and assigns to LRC for the term of this Lease the right to use
and enjoy (and, in the case of contract rights, to enforce) such rights or interests of BNPPLC:

     (a) any goods, equipment, furnishings, furniture and other tangible personal property
of whatever nature that are owned by BNPPLC and located on the Real Property from time to
time and all renewals or replacements of or substitutions for any of the foregoing;

     (b) the benefits, if any, conferred upon the owner of the Real Property by the
Permitted Encumbrances; and

     (c) any permits, licenses, franchises, certificates, and other rights and privileges
against third parties related to the Real Property.

Such rights and interests of BNPPLC, whether now existing or hereafter arising, are hereinafter
collectively called the “Personal Property”. The Real Property and the Personal Property (including
any property described in Paragraph 6 below) are hereinafter sometimes collectively called the
“Property.”

     However, the leasehold estate conveyed by this Lease and LRC’s rights hereunder are expressly
made subject and subordinate to the terms and conditions of this Lease, to the matters listed in
Exhibit B to the Closing Certificate and all other Permitted Encumbrances, and to any other
claims or encumbrances not constituting Liens Removable by BNPPLC.

     Without limiting the foregoing, it is understood that so long as LRC continues to be
entitled to possession of the Property pursuant to this Lease, LRC’s possession will extend to and

 

 

include (to the exclusion of BNPPLC) not only the Improvements, but also the Land (subject only to
BNPPLC’s limited right of entry on and subject to the terms and conditions set forth in this
Lease), and LRC will be entitled to any benefits conferred upon the owner of the Property by
Permitted Encumbrances. Accordingly, it is the intent of the parties that BNPPLC will not assume
or retain responsibility for the condition of the Land or the Improvements or for any obligations
undertaken by LRC under the Permitted Encumbrances.

GENERAL TERMS AND CONDITIONS

     The Property is leased by BNPPLC to LRC and is accepted and is to be used and possessed by LRC
upon and subject to the following terms and conditions:

1 Term.

     (A) Scheduled Term. The term of this Lease (the “Term”) will commence on the Effective
Date and will end on the first Business Day of January, 2015, unless extended as provided in
subparagraph 1(B) or sooner terminated as expressly provided in other provisions of this Lease.

     (B) Extension of the Term. The Term may be extended at the option of LRC for up
to two successive periods of five years each; provided, however, that prior to each such extension
the following conditions must have been satisfied: (i) LRC must have delivered a notice of its
election to exercise the option at least one hundred eighty days prior to the end of the Term, and
prior to the commencement of any such extension BNPPLC and LRC must have agreed in writing upon,
and received the written consent and approval of BNPPLC’s Parent and all Participants to, (a) a
corresponding extension of the date specified in clause (1) of the definition of Designated Sale
Date in the Common Definitions and Provisions Agreement, and (b) an adjustment to the Rent that LRC
will be required to pay during the extension, it being expected that the Rent for the extension may
be different than the Rent required for the original Term or any prior extension, and it being
understood that the Rent for any extension must in all events be satisfactory to both BNPPLC and
LRC, each in its sole and absolute discretion; (ii) at the time of LRC’s exercise of its option to
extend, no Default has occurred and is continuing and no Default will result from the extension;
(iii) immediately prior to any such extension, this Lease must then remain in effect; and (iv) if
this Lease has been assigned by LRC, then LRC must have executed a guaranty (or confirmed an
existing guaranty, if applicable), guaranteeing LRC’s assignee’s obligations under the Operative
Documents throughout such extended Term. With respect to the condition that BNPPLC and LRC must
have agreed upon the Rent required for any extension of the Term, neither LRC nor BNPPLC is willing
to submit itself to a risk of liability or loss of rights hereunder
for being judged unreasonable. Accordingly, LRC and BNPPLC will each have sole and absolute
discretion in making its determination, and both LRC and BNPPLC hereby disclaim any obligation
express or implied to be reasonable in negotiating the Rent for any such

 
Lease Agreement (Fremont/Building #1) — Page 3

 

 

extension. Similarly, it is understood that BNPPLC’s Parent and all Participants will each have sole and absolute discretion
to give, or decline to give, consents and approvals required for any extension of the Term, and
none of them will have any obligation express or implied to be reasonable in deciding whether to
give such consents and approvals. Subject to the changes to the Rent and satisfaction of the other
conditions listed in this subparagraph, if LRC exercises its option to extend the Term as provided
in this subparagraph, this Lease will continue in full force and effect, and the leasehold estate
hereby granted to LRC will continue without interruption and without any loss of priority over
other interests in or claims against the Property that may be created or arise after the Effective
Date and before the extension.

2 Use and Condition of the Property.

     (A) Use. Subject to the Permitted Encumbrances, LRC may use and occupy the Property
during the Term, but only for the following purposes and other lawful purposes incidental thereto:

     (1) uses and operations related to LRC’s business as conducted as of the Effective
Date, including office, manufacturing and research and development; and

     (2) other lawful purposes approved from time to time by BNPPLC, which approval will
not be unreasonably withheld (it being understood, however, that BNPPLC’s withholding of
such approval will be reasonable if BNPPLC determines in good faith that giving the approval
may materially increase BNPPLC’s risk of liability for any existing or future environmental
problem).

     (B) Condition of the Property. LRC acknowledges that it has carefully and fully
inspected the Property and accepts the Property in its present state, AS IS, and without
any representation or warranty, express or implied, as to the condition of such property or as to
the use which may be made thereof. LRC also accepts the Property without any covenant,
representation or warranty, express or implied, by BNPPLC or its Affiliates regarding the title
thereto or the rights of any parties in possession of any part thereof, except as expressly set
forth in Paragraph 16. BNPPLC will not be responsible for any latent or other defect or change of
condition in the Land, Improvements or other Property or for any violations with respect thereto of
Applicable Laws. Further, BNPPLC will not be required to furnish to LRC any facilities or
services of any kind, including water, phone, sewer, steam, heat, gas, air conditioning,
electricity, light or power.

     (C) Consideration for and Scope of Waiver. The provisions of subparagraph 2(B)

 
Lease Agreement (Fremont/Building #1) — Page 4

 

 

have been negotiated by BNPPLC and LRC as being consistent with the Rent payable under this Lease,
and such provisions are intended to be a complete exclusion and negation of any representations or
warranties of BNPPLC or its Affiliates, express or implied, with respect to the Property that may
arise pursuant to any law now or hereafter in effect or otherwise, except as expressly set forth
herein.

3 Rent.

     (A) Base Rent Generally. On each Base Rent Date through the end of the Term, LRC must
pay BNPPLC rent (“Base Rent”), calculated as provided below. Each payment of Base Rent must be
received by BNPPLC no later than 11:00 a.m. (Central time) on the date it becomes due; if received
after 11:00 a.m. (Central time) it will be considered for purposes of this Lease as received on the
next following Business Day.

     (B) Calculation of and Due Dates for Base Rent. Payments of Base Rent will be
calculated and become due as follows:

     (1) Determination of Payment Due Dates Generally. For Base Rent Periods
subject to a LIBOR Election of six months, Base Rent will be payable in two installments,
with the first installment becoming due on the Base Rent Date that occurs on the first
Business Day of the third calendar month following the commencement of such Base Rent
Period, and with the second installment becoming due on the Base Rent Date upon which the
Base Rent Period ends. For all other Base Rent Periods, Base Rent will be due in one
installment on the Base Rent Date upon which the Base Rent Period ends.

     (2) Special Adjustments to Base Rent Payment Dates and Periods.
Notwithstanding the foregoing, if LRC or any Applicable Purchaser purchases BNPPLC’s
interest in the Property pursuant to the Purchase Agreement, any accrued unpaid Base Rent
and all outstanding Additional Rent will be due on the date of purchase in addition to the
purchase price and other sums due to BNPPLC under the Purchase Agreement.

     (3) Base Rent Formula. Each installment of Base Rent payable for any Base Rent
Period will equal the sum of:

          (a) the product of:

	 	•	 	the Lease Balance on the first day of such Base Rent
Period, times
	 
	 	•	 	the Collateral Percentage for such Base Rent Period
(which

 
Lease Agreement (Fremont/Building #1) — Page 5

 

 

	 	 	 	is expected to be 100% unless the parties agree to a reduction by a written amendment of the Pledge Agreement),
times
	 
	 	•	 	the sum of (a) the Secured Spread for such Base Rent
Period, plus (b) LIBOR for such Base Rent Period, times
	 
	 	•	 	the number of days in such Base Rent Period from the
preceding Base Rent Date (or if there was no previous Base
Rent Date, from the Effective Date) to the Base Rent Date
upon which such installment becomes due, divided by
	 
	 	•	 	three hundred sixty, plus

          (b) the product of:

	 	•	 	the Lease Balance on the first day of such Base Rent
Period, times
	 
	 	•	 	100% minus the Collateral Percentage for such Base Rent
Period, times
	 
	 	•	 	the sum of (a) the Unsecured Spread for such Base Rent
Period, plus (b) LIBOR for such Base Rent Period, times
	 
	 	•	 	the number of days in such Base Rent Period from the
preceding Base Rent Date (or if there was no previous Base
Rent Date, from the Effective Date) to the Base Rent Date
upon which such installment becomes due, divided by
	 
	 	•	 	three hundred sixty.

 
Lease Agreement (Fremont/Building #1) — Page 6

 

 

Assume, only for the purpose of illustration: that as of the first day of a Base Rent Period
the Lease Balance is $10,000,000; that LIBOR for such Base Rent Period equals 4%; that the
Secured Spread for such period is forty basis points (40/100 of 1%); that the Unsecured
Spread for such period is one hundred basis points (100/100 of 1%); that the Collateral
Percentage is 100%; and that such Base Rent Period contains exactly thirty days. Under such
assumptions, Base Rent for the hypothetical Base Rent Period will equal:

{$10,000,000 x (100% x [0.40% + 4%]) x 30/360} +

{$10,000,000 x ( [100% - 100%] x [1% + 4%]) x 30/360} =

$36,666

     (C) Additional Rent. All amounts which LRC is required to pay to or on behalf of
BNPPLC pursuant to this Lease, together with every charge, premium, interest and cost set forth
herein which may be added for nonpayment or late payment thereof, will constitute rent (all such
amounts, other than Base Rent, are herein called “Additional Rent”; and, collectively, Base Rent
and Additional Rent are herein sometimes called “Rent”). It is understood, however, that neither
“Additional Rent” nor “Rent,” as such terms are used in this Lease, will include any Supplemental
Payment required by the Purchase Agreement.

     (D) Arrangement Fee. In addition to other amounts payable by LRC hereunder,
contemporaneously with the execution of this Lease LRC must pay BNPPLC an arrangement fee (the
“Arrangement Fee”) as provided in the Closing Letter. The Arrangement Fee will represent
Additional Rent for the first Base Rent Period.

     (E) Administrative Fees. In addition to other amounts payable by LRC hereunder,
contemporaneously with the execution of this Lease and on the first Base Rent Date that follows
each anniversary of the Effective Date prior to the Designated Sale Date, LRC must pay BNPPLC an
annual administrative fee (an “Administrative Fee”) in the amount confirmed by the Closing Letter.
Each payment of an Administrative Fee will represent Additional Rent for the first Base Rent Period
during which it first becomes due.

     (F) No Demand or Setoff. Except as expressly provided herein, LRC must pay all Rent
without notice or demand and without counterclaim, deduction, setoff or defense.

     (G) Default Interest and Order of Application. All Rent will bear interest, if not
paid when first due, at the Default Rate in effect from time to time from the date due until paid;
provided, that nothing herein contained will be construed as permitting the charging or collection
of interest at a rate exceeding the maximum rate permitted under Applicable Laws. BNPPLC may apply
any amounts paid by or on behalf of LRC against any Rent then past due in the order the same became
due or in such other order as BNPPLC elects.

 
Lease Agreement (Fremont/Building #1) — Page 7

 

 

4 Nature of this Agreement.

     (A) “Net” Lease Generally. Subject only to the exceptions listed in
subparagraph 5(D) below, it is the intention of BNPPLC and LRC that Base Rent and other payments
herein specified will be absolutely net to BNPPLC and that LRC must pay all costs, expenses and
obligations of every kind relating to the Property or this Lease which may arise or become due.
Further, it is understood that all amounts payable by LRC to BNPPLC under this Lease and the other
Operative Documents are expressed as minimum payments to be made net of any deduction or
withholding required under any Applicable Laws.

     (B) No Termination. Except as expressly provided in this Lease itself, this Lease will
not terminate, nor will LRC have any right to terminate this Lease, nor will LRC be entitled to any
abatement of or setoff against the Rent, nor will the obligations of LRC under this Lease be
excused, for any reason whatsoever, including any of the following: (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
Lease or any of the other Operative Documents 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, (viii) LRC’s 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 hereunder be
separate and independent of the covenants and agreements of BNPPLC, that Base Rent and all other
sums payable by LRC hereunder continue to be payable in all events and that the obligations of LRC
hereunder continue unaffected, unless the requirement to pay or perform the same have been
terminated or limited pursuant to an express provision of this Lease. Without limiting the
foregoing, LRC waives to the extent permitted by Applicable Laws, except as otherwise expressly
provided herein, all rights to which LRC may now or hereafter be entitled by law (including any
such rights arising because of any “warranty of suitability” or other warranties implied as a
matter of law) (i) to quit, terminate or surrender this Lease or the Property or any part thereof
or (ii) to any abatement, suspension, deferment or reduction of the Rent.

     (C) Characterization of this Lease.

 
Lease Agreement (Fremont/Building #1) — Page 8

 

 

     (1) Both LRC and BNPPLC intend that (a) for the purposes of determining the
proper accounting for this Lease by LRC, BNPPLC will be treated as the owner and landlord of
the Property and LRC will be treated as the tenant of the Property, and (b) for income tax
purposes and real estate, commercial law (including bankruptcy) and regulatory purposes, (i)
this Lease and the other Operative Documents will be treated as a financing arrangement,
(ii) BNPPLC will be deemed a lender making loans to LRC in the principal amount equal to the
Lease Balance, which loans are secured by the Property, and (iii) LRC will be treated as the
owner of the Property and will be entitled to all tax benefits available to the owner of the
Property. Consistent with such intent, by the provisions set forth in the attached
Exhibit B, LRC is granting to BNPPLC a lien upon and mortgaging and warranting title
to the Land and the Improvements and all rights, titles and interests of LRC in and to other
Property, WITH POWER OF SALE, to secure all obligations (monetary or otherwise) of LRC
arising under or in connection with any of the Operative Documents. Without limiting the
generality of the foregoing, LRC and BNPPLC desire that their intent as set forth in this
subparagraph be given effect both in the context of any bankruptcy, insolvency or
receivership proceedings concerning LRC or BNPPLC and in other contexts. Accordingly, LRC
and BNPPLC expect that in the event of any bankruptcy, insolvency or receivership
proceedings affecting LRC or BNPPLC or any enforcement or collection actions arising out of
such proceedings, the transactions evidenced by this Lease and the other Operative Documents
will be characterized and treated as loans made to LRC by BNPPLC, secured by the Property.

     (2) Notwithstanding the foregoing, LRC acknowledges and agrees that none of BNPPLC or
the other Interested Parties has made, or will be deemed to have made, in the Operative
Documents or otherwise, any representations or warranties concerning how this Lease and the
other Operative Documents will be characterized or treated under applicable accounting
rules, income tax, regulatory, commercial or real estate law, bankruptcy, insolvency or
receivership law or any other rules or requirements concerning the tax, accounting or legal
characteristics of the Operative Documents. LRC further acknowledges and agrees that it is
sophisticated and knowledgeable regarding all such matters and that it has, as it deemed
appropriate, obtained from and relied upon its own professional accountants, counsel and
other advisors for such tax, accounting and legal advice concerning the Operative Documents.

     (3) In any event, LRC will be required by subparagraph 5(C) below to indemnify
and hold harmless BNPPLC and other Interested Parties from and against all additional taxes
that may arise or become due because of any refusal of taxing authorities to recognize and
give effect to the intention of the parties as set forth in subparagraph 4(C)(1)
(“Unexpected Recharacterization Taxes”), including any additional income or capital gain tax
that may become due because of payments to

 
Lease Agreement (Fremont/Building #1) — Page 9

 

 

BNPPLC of the purchase
price upon any sale under the Purchase Agreement resulting from any insistence of such
taxing authorities that BNPPLC be treated as the “true owner” of the Property for tax
purposes (a “Forced Recharacterization”); provided, however, LRC will not be required to pay
or reimburse Unexpected Recharacterization Taxes to the extent that they are, in any given
tax year, eliminated or offset by actual savings to BNPPLC because of additional
depreciation deductions or other tax benefits available to BNPPLC in the same year only by
reason of the Forced Recharacterization.

5 Payment of Executory Costs and Losses Related to the Property.

     (A) Local Impositions. Subject only to the exceptions listed in subparagraph 5(D)
below, LRC must pay or cause to be paid prior to delinquency all Local Impositions. If requested by
BNPPLC from time to time, LRC must furnish BNPPLC with receipts or other appropriate evidence
showing payment of all Local Impositions at least ten days prior to the applicable delinquency date
therefor.

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

     (B) Increased Costs; Capital Adequacy Charges. Subject only to the exceptions listed
in subparagraph 5(D) below:

     (1) If there is any increase in the cost to BNPPLC’s Parent or any Participant
(or their respective Affiliates) of agreeing to make or making, funding or maintaining
advances to BNPPLC in connection with the Property because of any Banking Rules

 
Lease Agreement (Fremont/Building #1) — Page 10

 

 

Change, then LRC must from time to time (after receipt of a request from BNPPLC’s
Parent or the Participant as provided below) pay to BNPPLC for the account of BNPPLC’s
Parent or the Participant, as the case may be, additional amounts sufficient to compensate
BNPPLC’s Parent or the Participant (or their respective Affiliates) for such increased cost.
A certificate as to the amount of such increased cost, submitted to BNPPLC and LRC by
BNPPLC’s Parent or the Participant, will be conclusive and binding upon LRC, absent clear
and demonstrable error.

     (2) BNPPLC’s Parent or any Participant may demand additional payments (“Capital
Adequacy Charges”) if BNPPLC’s Parent or the Participant determines that any Banking Rules
Change affects the amount of capital to be maintained by it or its Affiliates and that the
amount of such capital is increased by or based upon the existence of advances made or to be
made to or for BNPPLC to permit BNPPLC to maintain BNPPLC’s investment in the Property. To
the extent that BNPPLC’s Parent or such Participant, as the case may be, provides a
certificate or notice to BNPPLC and to LRC demanding Capital Adequacy Charges as
compensation for the additional capital requirements reasonably allocable to such investment
or advances, LRC must pay to BNPPLC for the account of BNPPLC’s Parent or such Participant
the amount so demanded; provided, however, such certificate or notice must set forth the
nature of the occurrence giving rise to such demand, the amount of the Capital Adequacy
Charge to be paid, and the method by which such amount was determined. Any such certificate
or notice will conclusive and binding upon LRC, absent clear and demonstrable error. In
determining the amount of any Capital Adequacy Charges, BNPPLC’s Parent or any Participant
may use any reasonable averaging and attribution method, applied on a non-discriminatory
basis.

     (3) Notwithstanding the foregoing provisions of this subparagraph 5(B), LRC will not be
obligated to pay any claim for compensation pursuant to this subparagraph 5(B) that arises
or accrues (a) as a result of any change in the rating assigned to BNPPLC’s Parent or any
Participant (or their respective Affiliates) making the claim by rating agencies or bank
regulators in regard to BNPPLC’s Parent’s or such Participant’s (or their respective
Affiliates’) creditworthiness, record keeping or failure to comply with Applicable
Laws(including U.S. banking regulations applicable to subsidiaries of a bank holding
company), or (b) more than nine months prior to the date LRC is notified of the intent of
BNPPLC’s Parent or such Participant to make a claim for such charges; provided, that if the
Banking Rules Change which results in a claim for compensation is retroactive, then the nine
month period will be extended to include the period of the retroactive effect of such
Banking Rules Change. Further, BNPPLC will cause BNPPLC’s Parent to use, and will ask any
Participant to use, commercially reasonable efforts to reduce or eliminate any claim for
compensation pursuant to this subparagraph 5(B), including a change in the office of
BNPPLC’s Parent or the

 
Lease Agreement (Fremont/Building #1) — Page 11

 

 

Participant, as the case may be, through which it
provides and maintains Funding Advances if such change will avoid the need for, or
reduce the amount of, such compensation and will not, in the reasonable judgment of BNPPLC’s
Parent or such Participant, be otherwise disadvantageous to it. Nothing in this
subparagraph will be construed to require BNPPLC’s Parent or any Participant to create any
new office through which to make or maintain Funding Advances.

     (4) Any amount required to be paid by LRC under this subparagraph 5(B) will be
due ten Business Days after a notice requesting such payment is received by LRC from
BNPPLC’s Parent or a Participant, as applicable.

     (C) LRC’s Payment of Other Losses; General Indemnification. Subject only to the
exceptions listed in subparagraph 5(D) below:

     (1) Agreement to Indemnify. As directed by BNPPLC, LRC must pay, reimburse, indemnify,
defend, protect and hold harmless BNPPLC and all other Interested Parties from and against
all Losses (including Environmental Losses) asserted against or incurred or suffered by any
of them at any time and from time to time by reason of, in connection with, arising out of,
or in any way related to the following:

	 	•	 	the ownership or alleged ownership of any interest in the
Property or the Rent;
	 
	 	•	 	the purchase, design, construction, preparation, installation,
inspection, delivery, non-delivery, acceptance, rejection,
possession, use, operation, maintenance, management, rental, lease,
sublease, repossession, condition (including defects, whether or
not discoverable), destruction, repair, alteration, modification,
restoration, addition or substitution, storage, transfer of title,
redelivery, return, sale or other disposition of all or any part of
or interest in the Property;
	 
	 	•	 	the imposition of any Lien (or incurring of any liability to
refund or pay over any amount as a result of any Lien) against all
or any part of or interest in the Property;
	 
	 	•	 	any failure of the Property or LRC itself to comply with
Applicable Laws;
	 
	 	•	 	Permitted Encumbrances or any violation thereof;
	 
	 	•	 	Hazardous Substance Activities, including those occurring prior
to

 
Lease Agreement (Fremont/Building #1) — Page 12

 

 

	 	 	 	the Term;
	 
	 	•	 	the enforcement of the Operative Documents;
	 
	 	•	 	the making or maintenance of Funding Advances;
	 
	 	•	 	the breach by LRC of this Lease, any other Operative Document or
any other document executed by LRC pursuant to or in connection
with any Operative Document; or
	 
	 	•	 	any bodily or personal injury or death or property damage
occurring in or upon or in the vicinity of the Property through any
cause whatsoever.

LRC’s obligations under this indemnity will apply whether or not any Interested Party is
also indemnified as to the applicable Loss by another Interested Party and whether or not
the Loss arises or accrues because of any condition of the Property or other circumstance
concerning the Property prior to the Effective Date.

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

 
Lease Agreement (Fremont/Building #1) — Page 13

 

 

additional amount needed to gross up
such Original Indemnity Payment as described in this
provision.)

     (2) Scope of Indemnities and Releases. Every indemnity and release provided
in this Lease and the other Operative Documents for the benefit of BNPPLC or other
Interested Parties, including the indemnity set forth in subparagraph 5(C)(1), will apply
even if and when the subject matter of the indemnity or release arises out of or results
from the negligence or strict liability of BNPPLC or any other Interested Party.
Further, all such indemnities and releases will apply even if insurance obtained by LRC or
required of LRC by this Lease or the other Operative Documents is not adequate to cover
Losses against or for which the indemnities and releases are provided. (However, LRC’s
liability for any failure to obtain insurance required by this Lease or the other Operative
Documents will not be limited to Losses against which indemnities are provided, it being
understood that the parties have agreed upon insurance requirements for reasons that extend
beyond providing a source of payment for Losses against which BNPPLC and other Interested
Parties may be indemnified by LRC.)

     (3) Nonexclusive List of Costs Covered by Indemnity. Costs and expenses for which LRC
is responsible on an After Tax Basis pursuant to this subparagraph 5(C) will include all of
the following, except to the extent that the following are included in the Initial Advance
or in the calculation of any Break Even Price or Make Whole Amount paid to BNPPLC pursuant
to the Purchase Agreement:

	 	•	 	appraisal fees;
	 
	 	•	 	Uniform Commercial Code search fees;
	 
	 	•	 	filing and recording fees;
	 
	 	•	 	inspection fees and expenses;
	 
	 	•	 	brokerage fees and commissions;
	 
	 	•	 	survey fees;
	 
	 	•	 	title policy premiums and escrow fees;

 
Lease Agreement (Fremont/Building #1) — Page 14

 

 

	 	•	 	any Breakage Costs;
	 
	 	•	 	Attorneys’ Fees incurred by BNPPLC with respect to the drafting,
negotiation, administration or enforcement of this Lease or the
other Operative Documents; and
	 
	 	•	 	all taxes (except Excluded Taxes) related to the Property
or to the transactions contemplated in the Operative Documents.

     (4) Defense and Settlement of Indemnified Claims.

               (a) By notice to LRC BNPPLC may direct LRC to assume on behalf of BNPPLC or any
other Interested Party and to conduct with due diligence and in good faith the
defense of and the response to any claim, proceeding or investigation included in or
concerning any Loss for which LRC is responsible pursuant to subparagraph 5(C)(1).
LRC must promptly comply with any such direction using counsel selected by LRC and
reasonably satisfactory to BNPPLC to represent BNPPLC or the applicable Interested
Party. In the event LRC fails to promptly comply with any such direction from
BNPPLC, BNPPLC or any other affected Interested Party may contest or settle the
claim, proceeding or investigation using counsel of its own selection at LRC’s
expense.

               (b) Also, although subparagraph 5(D)(3) will apply to tort claims asserted
against any Interested Party related to the Property, the right of an Interested
Party to be indemnified pursuant to this subparagraph 5(C) for taxes or other
payments made to satisfy governmental requirements (“Government Mandated Payments”)
will not be conditioned in any way upon LRC having consented to or approved of, or
having been provided with an opportunity to defend against or contest, such
Government Mandated Payments.

     (5) Payments Due. Any amount to be paid by LRC under this subparagraph 5(C) will be
due ten Business Days after a notice requesting such payment is given to LRC, subject to any
applicable contest rights expressly granted to LRC by other provisions of this Lease.

     (6) Survival. LRC’s obligations under this subparagraph 5(C) will survive the
termination or expiration of this Lease with respect to Losses suffered by any Interested
Party on or prior to, or by reason of any actual or alleged occurrence or circumstances on
or prior to, the later of the dates upon which (a) this Lease terminates or expires, or (b)
LRC surrenders possession and control of the Property.

 
Lease Agreement (Fremont/Building #1) — Page 15

 

 

     (D) Exceptions and Qualifications to Indemnities.

     (1) Exceptions. BNPPLC acknowledges and agrees that nothing in Paragraph 4 or the
preceding subparagraphs of this Paragraph 5 will be construed to require LRC to pay or
reimburse:

	 	•	 	Excluded Taxes; or
	 
	 	•	 	Losses incurred or suffered by any Interested Party to the extent
proximately caused by (and attributed by any applicable principles
of comparative fault to) the Established Misconduct of that
Interested Party; or
	 
	 	•	 	Losses that result from any Liens Removable by BNPPLC; or
	 
	 	•	 	Local Impositions or other Losses contested, if and so long as
they are contested, by LRC in accordance with any of the provisions
of this Lease or other Operative Documents which expressly authorize
such contests; or
	 
	 	•	 	Losses incurred or suffered by any of the Participants in
connection with the negotiation or execution of the Participation
Agreement (or supplements making them parties thereto) or in
connection with any due diligence Participants may undertake before
entering into the Participation Agreement; or
	 
	 	•	 	transaction expenses or other Losses caused by or necessary to
accomplish any conveyance by BNPPLC to BNPPLC’s Parent or a
Qualified Affiliate which constitutes a Permitted Transfer only by
reason of clause (4) of the definition of Permitted Transfer in the
Common Definitions and Provisions Agreement.

     (2) Notice of Claims. If an Interested Party receives a written notice of a
claim for taxes or a claim alleging a tort or other unlawful conduct that the Interested
Party believes is covered by the indemnity in subparagraph 5(C)(1), then such Interested
Party will be expected to promptly furnish a copy of such notice to LRC. The failure to so
provide a copy of the notice will not excuse LRC from its obligations under subparagraph
5(C)(1); except that if such failure continues for more than fifteen Business Days after the
notice is received by such Interested Party and LRC is unaware of the matters described in
the notice, with the result that LRC is unable to assert defenses or to take other actions
which could minimize its obligations, then LRC will be excused from

 
Lease Agreement (Fremont/Building #1) — Page 16

 

 

its obligation to indemnify such Interested Party (and any Affiliate of such Interested Party) against Losses,
if any, which would not have been incurred or suffered but for such failure. For example,
if BNPPLC fails to provide LRC with a copy of a notice of an overdue tax obligation
covered by the indemnity set out in subparagraph 5(C)(1) and LRC is not otherwise already
aware of such obligation, and if as a result of such failure BNPPLC becomes liable for
penalties, interest and other additional costs covered by the indemnity in excess of the
penalties, interest and costs that would have accrued if LRC had been promptly provided with
a copy of the notice, then LRC will be excused from any obligation to BNPPLC (or any
Affiliate of BNPPLC) to pay such excess penalties, interest or other costs attributable to
such delay.

     (3) Settlements Without the Prior Consent of LRC.

               (a) Except as otherwise provided in subparagraph 5(D)(3)(b), if any Interested
Party settles any tort claim for which it is entitled to be indemnified by LRC
without LRC’s consent (which consent will not be unreasonably withheld), then LRC
may, by notice given to the Interested Party no later than ten Business Days after
LRC is notified of the settlement, elect to pay Reasonable Settlement Costs to the
Interested Party in lieu of a payment or reimbursement of actual settlement costs.
(With respect to any tort claim asserted against an Interested Party, “Reasonable
Settlement Costs” means the maximum amount that a prudent Person in the position of
the Interested Party, but able to pay any amount, might reasonably agree to pay to
settle the tort claim, taking into account the nature and amount of the claim, the
relevant facts and circumstances known to such Interested Party at the time of
settlement and the additional Attorneys Fees’ and other costs of defending the claim
which could be anticipated but for the settlement.) After making an election to pay
Reasonable Settlement Costs with regard to a particular tort claim and a particular
Interested Party, LRC will have no right to rescind or revoke the election, despite
any subsequent determination that Reasonable Settlement Costs exceed actual
settlement costs.

               (b) Notwithstanding the foregoing, LRC will have no right to elect to pay
Reasonable Settlement Costs in lieu of actual settlement costs if an Interested
Party settles claims without LRC’s consent at any time when an Event of Default has
occurred and is continuing or after a failure by LRC to conduct with due diligence
and in good faith the defense of and the response to any claim, proceeding or
investigation as provided in subparagraph 5(C)(4)(a).

               (c) Except as provided in this subparagraph 5(D)(3), no settlement by any
Interested Party of any claim made against it will excuse LRC from any obligation to
indemnify the Interested Party against the settlement costs or other

 
Lease Agreement (Fremont/Building #1) — Page 17

 

 

Losses suffered
by reason of, in connection with, arising out of, or in any way related to such
claim.

     (4) Defense of Tax Claims. This Lease does not grant to LRC any right to
control the defense of or contest any tax claim for which an Interested Party may have a
right to indemnity under subparagraph 5(C), other than the right to contest Local
Impositions as provided in subparagraph 5(A), nor does this Lease grant to LRC the right to
inspect the income tax returns, books or records of any Interested Party. Nevertheless, if
a tax claim is asserted against BNPPLC for which it is entitled to be indemnified pursuant
to subparagraph 5(C), BNPPLC will consider in good faith any defenses and strategies
proposed by LRC with regard to such claim. Further, if any such tax claim is asserted
against BNPPLC which involves assertions that apply not only to the transactions
contemplated by this Lease, but also to other similar transactions in which BNPPLC has
participated, then BNPPLC will not settle the claim on a basis that results in a
disproportionately greater tax burden with respect to the transactions contemplated herein
than with respect to such other similar transactions. For example, if taxing authorities
assert that both this Lease and other comparable lease agreements made by BNPPLC are not
financing arrangements as intended by the parties thereto, and on the basis of such
assertions the taxing authorities claim that BNPPLC owes income taxes which are not Excluded
Taxes, then BNPPLC will not settle the claim in a manner that would cause LRC’s liability
under subparagraph 5(C) to be disproportionately greater than the indemnity obligation of
another similarly situated tenant of BNPPLC under another lease agreement with an indemnity
provision comparable to subparagraph 5(C). Also, BNPPLC will not grant to another tenant
the right to dictate to BNPPLC the tax position BNPPLC must take in regard to the Property
or the Operative Documents, except that BNPPLC may include provisions comparable to the
foregoing in other leases to assure other tenants against a disproportionately greater
burden than LRC will bear in regard to any settlement of a tax claim by BNPPLC.

     (E) Collection on Behalf of Participants. BNPPLC may, on behalf of any Participant or
its Affiliates, collect any amount that becomes due from LRC to such Participant or its Affiliates
pursuant to subparagraph 5(B) or 5(C), in which case BNPPLC will be obligated to such Participant
in respect of the collected amount as provided in the Participation Agreement. Alternatively, as
provided in the Participation Agreement, BNPPLC may assign the right to collect any such amount to
such Participant, in which case the Participant will be entitled to collect the same directly from
LRC without in any way impairing or affecting BNPPLC’s rights to collect other amounts from LRC
under this Lease or the other Operative Documents.

6 Items Included in the Property. The Land and all Improvements on the Land from
time to time will be included in the “Property” covered by this Lease. Further, to the extent, if
any, acquired by LRC (in whole or in part) with funds advanced by or on behalf of the Prior

 
Lease Agreement (Fremont/Building #1) — Page 18

 

 

Owner (or any predecessor in interest to the Prior Owner with respect to any property covered by the
Prior Lease) under or in connection with the Prior Lease (or any prior lease agreement
amended and restated by the Prior Lease) or with other funds for which LRC received reimbursement
from such funds advanced by or on behalf of the Prior Owner (or a predecessor in interest), all
furnishings, furniture, chattels, permits, licenses, franchises, certificates and other personal
property of whatever nature will be deemed to have been acquired on behalf of the Prior Owner and
transferred by it to BNPPLC and will constitute “Property” covered by this Lease, as will all
renewals or replacements of or substitutions for any such Property. Upon request of BNPPLC, LRC
will deliver to BNPPLC an inventory describing all significant items of Personal Property (and, in
the case of tangible personal property, showing the make, model, serial number and location
thereof), with a certification by LRC that such inventory is true and complete and that all items
specified in the inventory are covered by this Lease free and clear of any Lien other than the
Permitted Encumbrances or Liens Removable by BNPPLC.

7 Environmental.

     (A) Environmental Covenants by LRC.

               (1) LRC will not conduct or permit others to conduct Hazardous Substance Activities on
the Property, except Permitted Hazardous Substance Use and Remedial Work.

               (2) LRC will not discharge or permit the discharge of anything (including Permitted
Hazardous Substances) on or from the Property that would require any permit under applicable
Environmental Laws, other than (i) storm water runoff, (ii) waste water discharges through a
publicly owned treatment works, (iii) discharges that are a necessary part of any Remedial
Work, and (iv) other similar discharges consistent with the definition of Permitted
Hazardous Substance Use which do not significantly increase the risk of Environmental Losses
to BNPPLC, in each case in compliance with Environmental Laws.

               (3) Following any discovery that Remedial Work is required by Environmental Laws or is
otherwise reasonably believed by BNPPLC to be required, LRC must promptly perform and
diligently and continuously pursue such Remedial Work.

               (4) If requested by BNPPLC in connection with any Remedial Work required by this
subparagraph, LRC must retain environmental consultants reasonably acceptable to BNPPLC to
evaluate any significant new information generated during LRC’s implementation of the
Remedial Work and to discuss with LRC whether such new information indicates the need for
any additional measures that LRC should take to

 
Lease Agreement (Fremont/Building #1) — Page 19

 

 

protect the health and safety of persons
(including employees, contractors and subcontractors and their employees) or to protect the
environment. LRC must implement any such additional measures to the extent required with
respect to the Property by
Environmental Laws or otherwise reasonably believed by BNPPLC to be required.

     (B) Right of BNPPLC to do Remedial Work Not Performed by LRC. If LRC’s failure
to perform any Remedial Work required as provided in subparagraph 7(A) continues beyond the
Environmental Cure Period (as defined below), BNPPLC may, in addition to any other remedies
available to it, conduct all or any part of the Remedial Work. To the extent that Remedial Work is
done by BNPPLC pursuant to the preceding sentence (including any removal of Hazardous Substances),
the cost thereof will be a demand obligation owing by LRC to BNPPLC. As used in this subparagraph,
“Environmental Cure Period” means the period ending on the earliest of: (1) ninety days after LRC
is notified of the breach which must be cured within such period, (2) the date that any writ or
order is issued for the levy or sale of any property owned by BNPPLC (including the Property)
because of such breach, (3) the date that any criminal action is instituted or overtly threatened
against BNPPLC or any of its directors, officers or employees because of such breach, or (4) any
Designated Sale Date upon which, for any reason, LRC or an Affiliate of LRC or any Applicable
Purchaser does not purchase BNPPLC’s interest in the Property pursuant to the Purchase Agreement
for a net price to BNPPLC (when taken together with any Supplemental Payment paid by LRC pursuant
to the Purchase Agreement, in the case of a purchase by an Applicable Purchaser) equal to the Break
Even Price.

     (C) Environmental Inspections and Reviews. BNPPLC reserves the right to retain
environmental consultants to review any report prepared by LRC or to conduct BNPPLC’s own
investigation to confirm whether LRC is complying with the requirements of this Paragraph 7. LRC
grants to BNPPLC and to BNPPLC’s agents, employees, consultants and contractors the right to enter
upon the Property during reasonable hours and after reasonable notice to inspect the Property and
to perform such tests as BNPPLC deems reasonably necessary or appropriate to review or investigate
Hazardous Substances in, on, under or about the Property or any discharge or reasonably suspected
discharge of Hazardous Substances into groundwater or surface water from the Property. LRC must
promptly reimburse BNPPLC for the fees of its environmental consultants and the costs of any such
inspections and tests. Without limiting the foregoing, BNPPLC will be entitled to reimbursement
for the fees of any consultant engaged as provided in this subparagraph or for the costs of any
inspections or test undertaken as provided in this subparagraph if BNPPLC engages the consultant or
orders the inspections or tests in any of the following circumstances: (1) an Event of Default has
occurred and is continuing at the time of such engagement, tests or inspections; (2) LRC has not
exercised the Purchase Option and BNPPLC has retained the consultant to establish the condition of
the Property prior to any conveyance thereof pursuant to the Purchase Agreement or to the
expiration of this Lease; (3) BNPPLC has retained the consultant to satisfy any regulatory
requirements applicable to BNPPLC or its Affiliates; (4) BNPPLC has retained the consultant because
it has reason to

 
Lease Agreement (Fremont/Building #1) — Page 20

 

 

believe, and does in good faith believe, that a significant violation of
Environmental Laws concerning the Property has occurred; or (5) BNPPLC has retained the consultant
because BNPPLC has been notified of a possible violation of Environmental Laws concerning the
Property
by any Governmental Authority having jurisdiction.

     (D) Communications Regarding Environmental Matters.

          (1) LRC must promptly advise BNPPLC of (i) any discovery known to LRC of any
event or circumstance which would render any representations of LRC in any of the Operative
Documents concerning environmental matters materially inaccurate or misleading if made at
the time of such discovery, (ii) any Remedial Work (or change in Remedial Work) required or
undertaken by LRC or its Affiliates in response to any (A) discovery of any Hazardous
Substances on, under or about the Property other than Permitted Hazardous Substances or (B)
any claim for damages resulting from Hazardous Substance Activities, (iii) any discovery
known to LRC of any occurrence or condition on any real property adjoining or in the
vicinity of the Property which would or could reasonably be expected to cause the Property
or any part thereof to be subject to any ownership, occupancy, transferability or use
restrictions under Environmental Laws, or (iv) any investigation or inquiry known to LRC of
any failure or alleged failure by LRC to comply with Environmental Laws affecting the
Property by any Governmental Authority responsible for enforcing Environmental Laws. In
such event, LRC will deliver to BNPPLC within thirty days after BNPPLC’s request, a
preliminary written environmental plan setting forth a general description of the action
that LRC proposes to take with respect thereto, if any, to bring the Property into
compliance with Environmental Laws or to correct any breach by LRC of this Paragraph 7,
including any proposed Remedial Work, the estimated cost and time of completion, the name of
the contractor and a copy of the construction contract, if any, and such additional data,
instruments, documents, agreements or other materials or information as BNPPLC may
reasonably request.

          (2) LRC will provide BNPPLC with copies of all material written communications with
Governmental Authorities relating to the matters listed in the preceding clause (1). LRC
will also provide BNPPLC with copies of any correspondence from third Persons which threaten
litigation over any significant failure or alleged significant failure of LRC to maintain or
operate the Property in accordance with Environmental Laws.

          (3) Prior to LRC’s submission of a communication to any regulatory agency or third
party which causes, or potentially could cause (whether by implementation of or response to
said communication), a material change in the scope, duration, or nature of any Remedial
Work, LRC must, to the extent practicable, deliver to BNPPLC a draft of

 
Lease Agreement (Fremont/Building #1) — Page 21

 

 

the proposed submission (together with the proposed date of submission), and in good faith assess and
consider any comments of BNPPLC regarding the same. Promptly after BNPPLC’s request, LRC
will meet with BNPPLC to discuss the submission, will provide any additional information
reasonably requested by BNPPLC and will provide a written
explanation to BNPPLC addressing the issues raised by comments (if any) of BNPPLC
regarding the submission.

8 Insurance Required and Condemnation.

     (A) Liability Insurance. Throughout the Term LRC must maintain commercial
general liability insurance against claims for bodily and personal injury, death and property
damage occurring in or upon or resulting from any occurrence in or upon the Property under one or
more insurance policies that satisfy the Minimum Insurance Requirements. LRC must deliver and
maintain with BNPPLC for each liability insurance policy required by this Lease written
confirmation of the policy and the scope of the coverage provided thereby issued by the applicable
insurer or its authorized agent, which confirmation must also satisfy the Minimum Insurance
Requirements.

     (B) Property Insurance.

          (1) Throughout the Term LRC must keep all Improvements (including all alterations,
additions and changes made to the Improvements) insured against fire and other casualty
under one or more property insurance policies that satisfy the Minimum Insurance
Requirements. LRC must deliver and maintain with BNPPLC for each property insurance policy
required by this Lease written confirmation of the policy and the scope of the coverage
provided thereby issued by the applicable insurer or its authorized agent, which
confirmation must also satisfy the Minimum Insurance Requirements.

          (2) If any of the Property is destroyed or damaged by fire, explosion, windstorm, hail
or by any other casualty against which insurance is required hereunder, (a) BNPPLC may, but
will not be obligated to, make proof of loss if not made promptly by LRC after notice from
BNPPLC, (b) each insurance company concerned is hereby authorized and directed to make
payment for such loss directly to BNPPLC (or, if so instructed by BNPPLC, to LRC) for
application as required by Paragraph 9, and (c) BNPPLC will be entitled, in its own name or
in the name of LRC or in the name of both, to settle, adjust or compromise any and all
claims for loss, damage or destruction under any policy or policies of insurance; except
that, if any such claim is for less than $500,000 and no Event of Default has

 
Lease Agreement (Fremont/Building #1) — Page 22

 

 

occurred and
is continuing, during the Term LRC alone will have the right to settle, adjust or compromise
the claim as LRC deems appropriate; and, except that, during the Term, so long as no Event
of Default has occurred and is continuing, BNPPLC must provide LRC with at least forty-five
days notice of BNPPLC’s intention to settle any such claim before settling it unless LRC has
already approved of the settlement by BNPPLC.

          (3) BNPPLC will not in any event or circumstances be liable or responsible for
failure to collect, or to exercise diligence in the collection of, any insurance
proceeds.

          (4) If any casualty results in damage to or loss or destruction of the Property, LRC
must give prompt notice thereof to BNPPLC and Paragraph 9 will apply.

     (C) Failure to Obtain Insurance. If LRC fails to obtain any insurance or to
provide confirmation of any such insurance as required by this Lease, BNPPLC will be entitled (but
not required) to obtain the insurance that LRC has failed to obtain or for which LRC has not
provided the required confirmation and, without limiting BNPPLC’s other remedies under the
circumstances, BNPPLC may require LRC to reimburse BNPPLC for the cost of such insurance and to pay
interest thereon computed at the Default Rate from the date such cost was paid by BNPPLC until the
date of reimbursement by LRC.

     (D) Condemnation. Immediately upon obtaining knowledge of the institution of any
proceedings for the condemnation of the Property or any portion thereof, or any other similar
governmental or quasi-governmental proceedings arising out of injury or damage to the Property or
any portion thereof, each party will promptly notify the other (provided, however, BNPPLC will have
no liability for its failure to provide such notice) of the pendency of such proceedings. LRC
must, at its expense, diligently prosecute any such proceedings and must consult with BNPPLC, its
attorneys and experts and cooperate with them as reasonably requested in the carrying on or defense
of any such proceedings. BNPPLC is hereby authorized, in its own name or in the name of LRC or in
the name of both, at any time after the Term expires or when an Event of Default has occurred and
is continuing, but not otherwise without LRC’s prior consent, to execute and deliver valid
acquittances for, and to appeal from, any such judgment, decree or award concerning condemnation of
any of the Property. BNPPLC will not in any event or circumstances be liable or responsible for
failure to collect, or to exercise diligence in the collection of, any such proceeds, judgments,
decrees or awards.

     Notwithstanding the foregoing provisions of this subparagraph, if condemnation proceeds
totaling not more than $500,000 are to be recovered as a result of a taking of less than all or
substantially all of the Property, LRC may directly receive and hold such proceeds during the Term,
so long as no Event of Default has occurred and is continuing and LRC applies such proceeds as
required herein.

     (E) Waiver of Subrogation. LRC, for itself and for any Person claiming through it
(including any insurance company claiming by way of subrogation), waives any and every claim

 
Lease Agreement (Fremont/Building #1) — Page 23

 

 

which
arises or may arise in its favor against BNPPLC or any other Interested Party to recover Losses for
which LRC is compensated by insurance or would be compensated by the insurance contemplated in this
Lease, but for any deductible or self-insured retention maintained under such insurance or but for
a failure of LRC to maintain the insurance as required by this Lease. LRC agrees to have such
insurance policies properly endorsed so as to make them valid
notwithstanding this waiver, if such endorsement is required to prevent a loss of insurance.

9 Application of Insurance and Condemnation Proceeds.

     (A) Collection and Application of Insurance and Condemnation Proceeds
Generally. This Paragraph 9 will govern the application of proceeds received by BNPPLC or LRC
during the Term from any third party (1) under any property insurance policy as a result of damage
to the Property (including proceeds payable under any insurance policy covering the Property which
is maintained by LRC), (2) as compensation for any restriction placed upon the use or development
of the Property or for the condemnation of the Property or any portion thereof, or (3) because of
any judgment, decree or award for injury or damage to the Property (e.g.,damage resulting from a
third party’s release of Hazardous Materials onto the Property); excluding, however, any funds paid
to BNPPLC by BNPPLC’s Parent, by another Affiliate of BNPPLC or by any Participant that is made to
compensate BNPPLC for any Losses BNPPLC may suffer or incur in connection with this Lease or the
Property. Except as provided in subparagraph 9(C), LRC must promptly pay over to BNPPLC any
insurance, condemnation or other proceeds covered by this Paragraph 9 which LRC may receive from
any insurer, condemning authority or other third party. Except as provided in subparagraph 9(C),
all proceeds covered by this Paragraph 9, including those received by BNPPLC from LRC or third
parties, will be applied as follows:

          (1) First, proceeds covered by this Paragraph 9 will be used to reimburse BNPPLC for
any Attorneys’ Fees or other reasonable costs and expenses that BNPPLC incurred to collect
the proceeds.

          (2) Second, the proceeds remaining after such reimbursement to BNPPLC (hereinafter, the
“Remaining Proceeds”) will be applied, as hereinafter more particularly provided, either as
a Qualified Prepayment or to reimburse LRC or BNPPLC for the actual out-of-pocket costs of
repairing or restoring the Property. Until, however, any Remaining Proceeds received by
BNPPLC are applied by BNPPLC as a Qualified Prepayment or applied by BNPPLC to reimburse
costs of repairs to or restoration of the Property pursuant to this Paragraph 9, BNPPLC will
hold and maintain such Remaining Proceeds as Escrowed Proceeds in an interest bearing
account, and all interest earned on such account will be added to and made a part of such
Escrowed Proceeds.

     (B) Advances of Escrowed Proceeds to LRC. Except as otherwise provided below in

 
Lease Agreement (Fremont/Building #1) — Page 24

 

 

this
Paragraph 9, BNPPLC will advance all Remaining Proceeds held by it as Escrowed Proceeds to
reimburse LRC for the actual out-of-pocket cost to LRC of repairing or restoring the Property in
accordance with the requirements of this Lease and the other Operative Documents as the applicable
repair or restoration, progresses. So long as any Lease Balance remains outstanding, however,
BNPPLC will not be required to pay Escrowed Proceeds to LRC in excess of the actual out-of-pocket
cost to LRC of the applicable repair or restoration, as evidenced by invoices or
other documentation reasonably satisfactory to BNPPLC, it being understood that BNPPLC may
retain and, after LRC has completed the applicable repair or restoration and been reimbursed for
the out-of-pocket cost thereof, apply any such excess (or so much thereof as is needed to reduce
the Lease Balance to zero) as a Qualified Prepayment.

     (C) Right of LRC to Receive and Apply Remaining Proceeds Below a Certain Level.
If, during the Term, any condemnation of any portion of the Property or any casualty resulting in
the diminution, destruction, demolition or damage to any portion of the Property reduces the then
current “AS IS” market value of the Property by less than $2,000,000 and is not expected to result
in condemnation or insurance proceeds of more than $2,000,000, and if no Event of Default has
occurred and is continuing, then BNPPLC will, upon LRC’s request, instruct the condemning authority
or insurer, as applicable, to pay the insurance or condemnation proceeds resulting therefrom
directly to LRC. LRC must apply any such proceeds as follows: (i) first, to reimburse BNPPLC for
any Attorneys’ Fees or other reasonable costs and expenses that BNPPLC incurred in connection with
the condemnation or casualty that resulted in such proceeds or the pursuit of claims related
thereto; (ii) second, to the repair or restoration of the Property to a safe and secure condition
and to a value of no less than the value before the taking or casualty; and (iii) if any such
proceeds remain after application as provided in the preceding clauses (i) and (ii), then to make a
Qualified Prepayment to BNPPLC.

     (D) Special Provisions Applicable After the Term Expires or an Event of Default.
Notwithstanding the foregoing, after the Term expires or when any Event of Default has occurred and
is continuing, BNPPLC will be entitled to receive and collect all insurance, condemnation or other
proceeds governed by this Paragraph 9 and to apply all Remaining Proceeds, when and to the extent
deemed appropriate by BNPPLC in its sole discretion, either (A) to the reimbursement of LRC or
BNPPLC for the out-of-pocket cost of repairing or restoring the Property, or (B) as Qualified
Prepayments. Further, if the Remaining Proceeds paid to BNPPLC with respect to any damage or
destruction of the Property are reduced by reason of any insurance deductible or self-insured
retention, LRC must pay to BNPPLC upon demand an additional amount equal to the full amount of such
deductible or self insured retention, whereupon the additional amount paid will be added to the
Remaining Proceeds and applied as such by BNPPLC in accordance with the provisions of this Lease.

     (E) LRC’s Obligation to Restore. Regardless of the adequacy of any Remaining Proceeds
available to LRC hereunder, if the Property is damaged by fire or other casualty or less

 
Lease Agreement (Fremont/Building #1) — Page 25

 

 

than all
or substantially all of the Property is taken by condemnation, LRC must promptly (and in any event,
prior to the Designated Sale Date) restore or improve the Property or the remainder thereof to a
condition that is safe and sightly and as near to the same condition as existed prior to such event
as is possible and in any event to a value no less than the Lease Balance.

     (F) Takings of All or Substantially All of the Property. In the event of any
taking of all
or substantially all of the Property, BNPPLC will be entitled to apply all Remaining Proceeds
(or so much thereof as is required to reduce the Lease Balance to zero) as a Qualified Prepayment.
Any taking of so much of the Property as, in BNPPLC’s good faith judgment, makes it impracticable
to restore or improve the remainder thereof as required by part (1) of the preceding subparagraph
will be considered a taking of substantially all the Property for purposes of this Paragraph 9.

10 Additional Representations, Warranties and Covenants of LRC Concerning the Property.
LRC represents, warrants and covenants as follows:

     (A) Operation and Maintenance. LRC must operate and maintain the Property in a good
and workmanlike manner and in compliance with Applicable Laws in all material respects and pay or
cause to be paid all fees or charges of any kind due in connection therewith. (If LRC does not
promptly correct any failure of the Property to comply with Applicable Laws that is the subject of
a written complaint or demand for corrective action given by any Governmental Authority to LRC, or
to BNPPLC and forwarded by it to LRC, then for purposes of the preceding sentence, LRC will be
considered not to have maintained the Property “in compliance with all Applicable Laws in all
material respects” whether or not the noncompliance would be material in the absence of the
complaint or demand.) LRC will not use or occupy, or allow the use or occupancy of, the Property
in any manner which violates any Applicable Laws or which constitutes a public or private nuisance
or which makes void, voidable or cancelable any insurance then in force with respect to the
Property. To the extent that any of the following would, individually or in the aggregate,
materially and adversely affect the value of the Property or the use of the Property for purposes
permitted by this Lease, LRC will not, without BNPPLC’s prior consent: (i) initiate or permit any
zoning reclassification of the Property; (ii) seek any variance under existing zoning ordinances
applicable to the Property; (iii) use or permit the use of the Property in a manner that would
result in such use becoming a nonconforming use under applicable zoning ordinances or similar laws,
rules or regulations; (iv) execute or file any subdivision plat affecting the Property; or (v)
consent to the annexation of the Property to any municipality. LRC will not cause or permit any
drilling or exploration for, or extraction, removal or production of, minerals from the surface or
subsurface of the Property, and LRC will not do anything that could reasonably be expected to
significantly reduce the market value of the Property. If LRC receives a notice or claim from any
Governmental Authority that the Property is not in compliance with any Applicable Law, or that any
action may be taken against BNPPLC because the Property does not comply with any Applicable Law,
LRC must promptly furnish a

 
Lease Agreement (Fremont/Building #1) — Page 26

 

 

copy of such notice or claim to BNPPLC.

     (B) Debts for Construction, Maintenance, Operation or Development. LRC must cause all
debts and liabilities incurred in the construction, maintenance, operation or development of the
Property, including invoices for labor, material and equipment and all debts and charges for
utilities servicing the Property, to be promptly paid.

     (C) Repair, Maintenance, Alterations and Additions. LRC must keep the Property
in good order, operating condition and appearance and must cause all necessary repairs, renewals
and replacements to be promptly made. LRC will not allow any of the Property to be materially
misused, abused or wasted. Further, LRC will not, without the prior consent of BNPPLC, make new
Improvements or alter Improvements in any way that could have a material, adverse impact on the
value of the Property.

     Without limiting the foregoing, LRC must notify BNPPLC before making any significant
alterations to the Improvements, regardless of the impact on the value of the Property expected to
result from such alterations.

     (D) Permitted Encumbrances. LRC must comply with and will cause to be performed all of
the covenants, agreements and obligations imposed upon the owner of any interest in the Property by
the Permitted Encumbrances. Without limiting the foregoing, LRC must cause all amounts to be paid
when due, the payment of which is secured by any Lien against the Property created by the Permitted
Encumbrances. Without the prior consent of BNPPLC, LRC will not enter into, initiate, approve or
consent to any modification of any Permitted Encumbrance that would create or expand or purport to
create or expand obligations or restrictions which would encumber BNPPLC’s interest in the Property
or be binding upon BNPPLC itself.

     (E) Books and Records Concerning the Property. LRC must keep books and records that
are accurate and complete in all material respects for the Property and, subject to Paragraph 19,
must permit all such books and records (including all contracts, statements, invoices, bills and
claims for labor, materials and services supplied for the construction and operation of any
Improvements) to be inspected and copied by BNPPLC during reasonable business hours.

11 Assignment and Subletting by LRC.

     (A) BNPPLC’s Consent Required. Without the prior consent of BNPPLC, LRC will not
assign, transfer, mortgage, pledge or hypothecate this Lease or any interest of LRC hereunder and
will not sublet all or any part of the Property, by operation of law or otherwise, except as
follows:

 
Lease Agreement (Fremont/Building #1) — Page 27

 

 

          (1) During the Term, so long as no Event of Default has occurred and is continuing, LRC
may sublet (a) to Affiliates of LRC, or (b) any useable space in then existing and completed
building Improvements to Persons who are not LRC’s Affiliates, subject to the conditions
that (i) any such sublease by LRC must be made expressly subject and subordinate to the
terms hereof, (ii) the sublease must have a term equal to or less than the remainder of the
then effective Term of this Lease, and (iii) the use permitted by the sublease must be
expressly limited to uses consistent with subparagraph 2(A) or other
uses approved in advance by BNPPLC as uses that will not present any extraordinary risk
of uninsured environmental or other liability.

          (2) During the Term, so long as no Event of Default has occurred and is
continuing, LRC may assign all of its rights under this Lease and the other Operative
Documents to an Affiliate of LRC, subject to the conditions that (a) the assignment must be
in writing and must unconditionally provide that the Affiliate assumes all of LRC’s
obligations hereunder and thereunder, and (b) LRC must execute an unconditional guaranty of
the obligations assumed by the Affiliate in form satisfactory to BNPPLC, confirming (x) that
notwithstanding the assignment LRC will remain primarily liable for all of the obligations
undertaken by LRC under the Operative Documents, (y) that such guaranty is a guaranty of
payment and performance and not merely of collection, and (z) that LRC waives to the extent
permitted by Applicable Law all defenses otherwise available to guarantors or sureties.

     (B) Standard for BNPPLC’s Consent to Assignments and Certain Other Matters. Consents
and approvals of BNPPLC which are required by this Paragraph 11 will not be unreasonably withheld,
but LRC acknowledges that BNPPLC’s withholding of such consent or approval will be reasonable if
BNPPLC determines in good faith that (1) giving the approval may increase BNPPLC’s risk of
liability for any existing or future environmental problem, (2) giving the approval is likely to
substantially increase BNPPLC’s administrative burden of complying with or monitoring LRC’s
compliance with the requirements of this Lease, or (3) any transaction for which LRC has requested
the consent or approval would negate LRC’s representations in the Operative Documents regarding
ERISA or cause any of the Operative Documents (or any exercise of BNPPLC’s rights thereunder) to
constitute a violation of any provision of ERISA. Further, LRC acknowledges that BNPPLC may
reasonably require, as a condition to giving its consent to any assignment by LRC, that LRC execute
an unconditional guaranty providing that LRC will remain primarily liable for all of the tenant’s
obligations hereunder and under other Operative Documents. Any such guaranty must be a guaranty of
payment and not merely of collection, must provide that LRC waives to the extent permitted by
Applicable Law all defenses otherwise available to guarantors or sureties, and must otherwise be in
a form satisfactory to BNPPLC.

     (C) Consent Not a Waiver. No consent by BNPPLC to a sale, assignment, transfer,

 
Lease Agreement (Fremont/Building #1) — Page 28

 

 

mortgage, pledge or hypothecation of this Lease or LRC’s interest hereunder, and no assignment or
subletting of the Property or any part thereof in accordance with this Lease or otherwise with
BNPPLC’s consent, will release LRC from liability hereunder; and any such consent will apply only
to the specific transaction thereby authorized and will not relieve LRC from any requirement of
obtaining the prior consent of BNPPLC to any further sale, assignment, transfer, mortgage,
pledge or hypothecation of this Lease or any interest of LRC hereunder.

12 Assignment by BNPPLC.

     (A) Restrictions on Transfers. Except by a Permitted Transfer, BNPPLC will not
assign, transfer, mortgage, pledge, encumber or hypothecate this Lease or the other Operative
Documents or any interest of BNPPLC in and to the Property during the Term without the prior
consent of LRC, which consent LRC may withhold in its sole discretion.

     (B) Effect of Permitted Transfer or other Assignment by BNPPLC. If by a Permitted
Transfer BNPPLC sells or otherwise transfers the Property and assigns to the transferee all of
BNPPLC’s rights under this Lease and under the other Operative Documents, and if the transferee
expressly assumes all of BNPPLC’s obligations under this Lease and under the other Operative
Documents, then BNPPLC will thereby be released from any obligations arising after such assumption
under this Lease or under the other Operative Documents, and LRC must look solely to each successor
in interest of BNPPLC for performance of such obligations.

13 BNPPLC’s Right to Enter and to Perform for LRC.

     (A) Right to Enter. BNPPLC and BNPPLC’s representatives may enter the Property for
the purpose of making inspections or performing any work BNPPLC is authorized to undertake by the
next subparagraph or for the purpose of confirming whether LRC has complied with the requirements
of this Lease or the other Operative Documents.

     (B) Performance for LRC. If LRC fails to perform any act or to take any action
required of it by this Lease or the Closing Certificate, or to pay any money which LRC is required
by this Lease or the Closing Certificate to pay, then in addition to any other remedies specified
herein or otherwise available, BNPPLC may, perform or cause to be performed such act or take such
action or pay such money. Any expenses so incurred by BNPPLC, and any money so paid by BNPPLC, will
be a demand obligation owing by LRC to BNPPLC. Further, upon making such payment, BNPPLC will be
subrogated to all of the rights of the person, corporation or body politic receiving such payment.
But nothing herein will imply any duty upon the part of BNPPLC to do any work which under any
provision of this Lease LRC may be required to perform, and the performance thereof by BNPPLC will
not constitute a waiver of LRC’s default. BNPPLC may during the progress of any such work by BNPPLC
keep and store upon the Property all necessary materials, tools, and equipment. BNPPLC will not in
any event

 
Lease Agreement (Fremont/Building #1) — Page 29

 

 

be liable for inconvenience, annoyance, disturbance, loss of business, or other damage to
LRC or the subtenants or invitees of LRC by reason of the performance of any such work, or on
account of bringing materials, supplies and equipment into or through the Property during the
course of such work, and the obligations of LRC under this Lease will not thereby be excused in any
manner.

14 Remedies.

     (A) Traditional Lease Remedies. At any time after an Event of Default, BNPPLC will be
entitled at BNPPLC’s option (and without limiting BNPPLC in the exercise of any other right or
remedy BNPPLC may have, and without any further demand or notice except as expressly described in
this subparagraph 14(A)), to exercise any one or more of the following remedies:

          (1) By notice to LRC, BNPPLC may terminate LRC’s right to possession of the
Property. However, only a notice clearly and unequivocally confirming that BNPPLC has
elected to terminate LRC’s right of possession will be effective for purposes of this
provision.

          (2) Upon termination of LRC’s right to possession as provided in the immediately
preceding subsection (1) and without further demand or notice, BNPPLC may re-enter the
Property in any manner not prohibited by Applicable Laws and take possession of all
improvements, additions, alterations, equipment and fixtures thereon and remove any persons
in possession thereof. Any personal property on the Land may be removed and stored in a
warehouse or elsewhere, and in such event the cost of any such removal and storage will be
at the expense and risk of and for the account of LRC.

          (3) Upon termination of LRC’s right to possession as provided in the immediately
preceding subsection (1), this Lease will terminate and BNPPLC may recover from LRC damages
which include the following:

          (a) the worth at the time of award of the unpaid Rent which had been earned at
the time of termination;

          (b) costs and expenses actually incurred by BNPPLC to repair damage to the
Property that LRC was obligated to (but failed to) repair prior to the termination;

          (c) the sum of the following (“Lease Termination Damages”):

          1) the worth at the time of award of the amount by which the unpaid
Rent which would have been earned after termination until the time of award
exceeds the amount of such rental loss that LRC proves

 
Lease Agreement (Fremont/Building #1) — Page 30

 

 

could have been reasonably avoided;

          2) the worth at the time of award of the amount by which the unpaid
Rent for the balance of the scheduled Term after the time of award exceeds
the amount of such rental loss that LRC proves could be
reasonably avoided;

          3) any other amount necessary to compensate BNPPLC for all the
detriment proximately caused by the early termination of this Lease or which
in the ordinary course of things would be likely to result therefrom,
including the costs and expenses of preparing and altering the Property for
reletting and all other costs and expenses of reletting (including
Attorneys’ Fees, advertising costs and brokers’ commissions), and

          (d) such other amounts in addition to or in lieu of the foregoing as may be
permitted from time to time by applicable California law.

The “worth at the time of award” of the amounts referred to in subparagraph 14(A)(3)(a) and
subparagraph 14(A)(3)(c)1) will be computed by allowing interest at the Default Rate. The
“worth at the time of award” of the amount referred to in subparagraph 14(A)(3)(c)2) will be
computed by discounting such amount at the discount rate ofthe Federal Reserve Bank of San
Francisco at the time of award plus one percent (1%).

Notwithstanding the foregoing, the total Lease Termination Damages which BNPPLC may recover
from LRC will be limited in amount to the extent required, if any, to prevent the sum of
recoverable Lease Termination Damages, plus any Supplemental Payment that BNPPLC has
received or remains entitled to recover pursuant to the Purchase Agreement, from being more
than the Maximum Remarketing Obligation; provided, however, if a Supplemental Payment is
owed to BNPPLC according to the Purchase Agreement, but LRC fails to pay it, this limitation
upon BNPPLC’s right to recover Lease Termination Damages will be of no effect. For
purposes of this provision, “Maximum Remarketing Obligation” is intended to mean the sum of
the Maximum Remarketing Obligation (Improvements) and the Maximum Remarketing Obligation
(Land) (both as defined in the Purchase Agreement) and is intended to be computed as of the
date any award of Lease Termination Damages to BNPPLC as if such date was the Designated
Sale Date.

          (4) Even after a breach of this Lease or abandonment of the Property by LRC, BNPPLC may
continue this Lease in force and recover Rent as it becomes due. Accordingly, despite any
breach or abandonment by LRC, this Lease will continue in

 
Lease Agreement (Fremont/Building #1) — Page 31

 

 

effect for so long as BNPPLC does
not terminate LRC’s right to possession, and BNPPLC may enforce all of BNPPLC’s rights and
remedies under this Lease, including the right to recover the Rent as it becomes due under
this Lease. LRC’s right to possession will not be
deemed to have been terminated by BNPPLC except pursuant to subparagraph 14(A)(1) hereof.
The following will not constitute a termination of LRC’s right to possession:

               (a) acts of maintenance or preservation or efforts to relet the Property;

               (b) the appointment of a receiver upon the initiative of BNPPLC to protect
BNPPLC’s interest under this Lease; or

               (c) reasonable withholding of consent to an assignment or subletting, or
terminating a subletting or assignment by LRC.

     (B) Foreclosure Remedies. At any time after an Event of Default, BNPPLC may
pursue remedies described in Exhibit B, regardless of whether the Event of Default is
continuing, if LRC has not already purchased the Property or caused an Applicable Purchaser to
purchase the Property pursuant to the Purchase Agreement. Without limiting the foregoing, (i)
BNPPLC will have the power and authority, to the extent provided by law, after proper notice and
lapse of such time as may be required by law, to sell or arrange for a nonjudicial sale to
foreclose the deed of trust with power of sale, lien and security interest granted in Exhibit
B (the “Deed of Trust”) for the recovery of the Lease Balance and any other amounts owed by LRC
under the Operative Documents, and (ii) BNPPLC, in lieu of or in addition to exercising any power
of sale granted in Exhibit B, may proceed by a suit or suits in equity or at law, whether
for a judicial foreclosure or sale of the Property, or against LRC for the Lease Balance and any
other amounts owed by LRC under the Operative Documents, or for the specific performance of any
covenant or agreement herein contained or in aid of the execution of any power herein granted, or
for the appointment of a receiver pending any foreclosure or sale of the Property, or for the
enforcement of any other appropriate legal or equitable remedy.

     (C) Enforceability. This Paragraph 14 will be enforceable to the maximum extent not
prohibited by Applicable Laws, and the unenforceability of any provision in this Paragraph will not
render any other provision unenforceable.

     (D) Remedies Cumulative. No right or remedy herein conferred upon or reserved to BNPPLC is
intended to be exclusive of any other right or remedy, and each and every such right and remedy
will be cumulative and in addition to any other right or remedy given to BNPPLC under this Lease or
other Operative Documents or now or hereafter existing in favor of BNPPLC under Applicable Laws,
except as otherwise expressly provided in the last provision of subparagraph 14(A)(3) above. In
addition to other remedies provided in this Lease, BNPPLC

 
Lease Agreement (Fremont/Building #1) — Page 32

 

 

will be entitled, to the extent permitted
by Applicable Law or in equity, to injunctive relief in case of the violation, or attempted or
threatened violation, of any of the covenants, agreements, conditions or provisions
of this Lease, or to a decree compelling performance of any of the other covenants, agreements,
conditions or provisions of this Lease to be performed by LRC, or to any other remedy allowed to
BNPPLC at law or in equity. Nothing contained in this Lease will limit or prejudice the right of
BNPPLC to prove for and obtain in proceedings for bankruptcy or insolvency of LRC by reason of the
termination of this Lease, an amount equal to the maximum allowed by any statute or rule of law in
effect at the time when, and governing the proceedings in
which, the damages are to be proved, whether or not the amount be greater, equal to, or less
than the amount of the loss or damages referred to above. Without limiting the generality of the
foregoing, nothing contained herein will modify, limit or impair any of the rights and remedies of
BNPPLC under the Purchase Agreement. However, to prevent a double recovery, BNPPLC acknowledges
that BNPPLC’s right to recover Lease Termination Damages may be limited by the last provision of
subparagraph 14(A)(3) above in the event BNPPLC collects or remains entitled to collect a
Supplemental Payment as provided in the Purchase Agreement.

15 Default by BNPPLC. If BNPPLC should default in the performance of any of its
obligations under this Lease, BNPPLC will have the time reasonably required, but in no event less
than thirty days, to cure such default after receipt of notice from LRC specifying such default and
specifying what action LRC believes is necessary to cure the default. BNPPLC’s failure to cure any
such default within such time permitted for cure may render BNPPLC liable to LRC for any monetary
damages proximately caused thereby, but as more specifically provided in subparagraph 4(B) above,
no such default will entitle LRC to terminate this Lease or excuse LRC from its obligation to pay
Rent.

16 Quiet Enjoyment. Provided LRC pays Base Rent and all Additional Rent payable hereunder
as and when due and payable and keeps and fulfills all of the terms, covenants, agreements and
conditions to be performed by LRC, BNPPLC will not during the Term disturb LRC’s peaceable and
quiet enjoyment of the Property; however, such enjoyment will be subject to the terms and
conditions of this Lease, to Permitted Encumbrances and to any other claims not constituting Liens
Removable by BNPPLC. Any breach by BNPPLC of this Paragraph will render BNPPLC liable to LRC for
any monetary damages proximately caused thereby, but as more specifically provided in subparagraph
4(B) above, no such breach will entitle LRC to terminate this Lease or excuse LRC from its
obligation to pay Rent.

17 Surrender Upon Termination. Unless LRC or an Applicable Purchaser is purchasing or has
purchased BNPPLC’s entire interest in the Property pursuant to the terms of the Purchase Agreement,
LRC must, upon the termination of LRC’s right to occupancy or expiration of the Term, surrender to
BNPPLC the Property, including Improvements constructed by LRC and fixtures and furnishings
included in the Property, free of all deferred maintenance, Hazardous Substances (including
Permitted Hazardous Substances) and tenancies and with all

 
Lease Agreement (Fremont/Building #1) — Page 33

 

 

Improvements
in substantially the same condition as of the date the same were initially completed. Any movable
furniture or movable personal property belonging to LRC or any party claiming under LRC, if not
removed at the time of such termination and if BNPPLC so elects, will be deemed abandoned and
become the property of BNPPLC without any payment or offset therefor. If BNPPLC does not so elect,
BNPPLC may remove such property from the Property and store it at LRC’s risk and expense. LRC must
bear the expense of repairing any damage to the Property caused by such removal by BNPPLC or LRC.

18 Holding Over by LRC. Should LRC not purchase BNPPLC’s right, title and interest
in the Property as provided in the Purchase Agreement, but nonetheless continue to hold the
Property after the termination of this Lease without objection by BNPPLC, whether such termination
occurs by lapse of time or otherwise, such holding over will constitute and be construed as a
tenancy from day to day only on and subject to all of the terms, provisions, covenants and
agreements on the part of LRC hereunder. No payments of money by LRC to BNPPLC after the
termination of this Lease will reinstate, continue or extend the Term of this Lease and no
extension of this Lease after the termination thereof will be valid unless and until the same is
reduced to writing and signed by both BNPPLC and LRC.

19 Proprietary Information and Confidentiality.

     (A) Proprietary Information. LRC will have no obligation to provide proprietary
information (as defined in the next sentence) to BNPPLC, except and to the extent (1) expressly
required by other terms and conditions of the Operative Documents, or (2) requested by BNPPLC in
connection with any inspection of the Property pursuant to the various provisions hereof and, in
BNPPLC’s reasonable determination, required to allow BNPPLC to accomplish the purposes of such
inspection. (Before LRC delivers any such proprietary information in connection with any inspection
of the Property, LRC may require that BNPPLC confirm and ratify the confidentiality agreements
covering such proprietary information set forth herein.) For purposes of this Lease and the other
Operative Documents, “proprietary information” means LRC’s intellectual property, trade secrets and
other confidential information of value to LRC (including, among other things, information about
LRC’s manufacturing processes, products, marketing and corporate strategies) that (1) is received
by any representative of BNPPLC at the time of any on-site visit to the Property or (2) otherwise
delivered to BNPPLC by or on behalf of LRC and labeled “proprietary” or “confidential” or by some
other similar designation to identify it as information which LRC considers to be proprietary or
confidential.

     (B) Confidentiality. BNPPLC will endeavor in good faith to use reasonable
precautions to keep confidential any proprietary information that BNPPLC may receive from LRC or
otherwise discover with respect to LRC or LRC’s business in connection with the administration
of this Lease or any investigation by BNPPLC hereunder. This provision will not, however,
render BNPPLC liable for any disclosures of proprietary information made by it or

 
Lease Agreement (Fremont/Building #1) — Page 34

 

 

its employees or
representatives, unless the disclosure is intentional and made for no reason other than to damage
LRC’s business. Also, this provision will not apply to disclosures: (i) specifically and previously
authorized in writing by LRC; (ii) to any assignee of BNPPLC as to any interest in the Property so
long as such assignee has agreed in writing to use its reasonable efforts to keep such information
confidential in accordance with the terms of this paragraph; (iii) to legal counsel, accountants,
auditors, environmental consultants and other professional advisors to BNPPLC so long as BNPPLC
informs such persons in writing (if practicable) of the confidential nature of such information and
directs them to treat such information confidentially; (iv) to regulatory officials

having jurisdiction over BNPPLC or BNPPLC’s Parent (although the disclosing party will request
confidential treatment of the disclosed information, if practicable); (v) as required by legal
process (although the disclosing party will request confidential treatment of the disclosed
information, if practicable); (vi) of information which has previously become publicly available
through the actions or inactions of a person other than BNPPLC not, to BNPPLC’s knowledge, in
breach of an obligation of confidentiality to LRC; (vii) to any Participant so long as the
Participant is bound by and has not repudiated a confidentiality provision concerning LRC’s
proprietary information set forth in the Participation Agreement; or (vii) that are reasonably
believed by BNPPLC to be necessary or helpful to the determination or enforcement of any
contractual or other rights which BNPPLC has or may have against LRC or its Affiliates or which
BNPPLC has or may have concerning the Property (provided, that BNPPLC must cooperate with LRC as
LRC may reasonably request to mitigate any risk that such disclosures will result in subsequent
disclosures of proprietary information which are not necessary or helpful to any such determination
or enforcement; such cooperation to include, for example, BNPPLC’s agreement not to oppose a motion
by LRC to seal records containing proprietary information in any court proceeding initiated because
of a dispute between the parties over the Property or the Operative Documents).

Notwithstanding any other contrary provision contained in this Agreement or any related agreements
between BNPPLC and LRC, they may each (and each of their respective employees, representatives or
other agents) may disclose, without limitation of any kind, the tax treatment and tax structure of
the transactions contemplated by this Agreement or the other Operative Documents and all materials
of any kind (including opinions or other tax analyses) that are provided to such party relating to
such tax treatment and tax structure, other than any information for which non-disclosure is
reasonably necessary in order to comply with applicable securities laws.

20 Recording Memorandum. Contemporaneously with the execution of this Lease, the parties
will execute and record a memorandum of this Lease for purposes of effecting constructive notice to
all Persons of LRC’s rights hereunder.

 
Lease Agreement (Fremont/Building #1) — Page 35

 

 

21 Independent Obligations Evidenced by Other Operative Documents. LRC acknowledges and
agrees that nothing contained in this Lease will limit, modify or otherwise affect any of LRC’s
obligations under the other Operative Documents, which obligations are intended to be separate,
independent and in addition to, and not in lieu of, the obligations set forth herein. Further, in
the event of any inconsistency between the express terms and provisions of the Purchase Agreement
and the express terms and provisions of this Lease, the express terms and provisions of the
Purchase Agreement will control.

[The signature pages follow.]

 
Lease Agreement (Fremont/Building #1) — Page 36

 

 

     IN WITNESS WHEREOF, this Lease Agreement (Fremont/Building #1) 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 	 
	 	 	 	 
	 

 
Lease Agreement (Fremont/Building #1) — Signature Page

 

 

[Continuation of signature pages for Lease Agreement (Fremont/Building #1) dated as of December 21,
2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a

Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 
	 

 
Lease Agreement (Fremont/Building #1) — Signature Page

 

 

Exhibit A

Legal Description

BEING A PORTION OF LOT 4, AS SHOWN ON THE PARCEL MAP 5001 FILED IN BOOK 168 OF MAPS, AT PAGES 24
THROUGH 26, ALAMEDA COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING ON THE SOUTHERLY LINE OF CUSHING PARKWAY AT THE MOST NORTHEASTERLY CORNER OF SAID LOT 4;

THENCE FROM SAID POINT OF BEGINNING, ALONG THE EASTERLY AND SOUTHERLY LINE OF SAID LOT 4, THE
FOLLOWING TWO COURSES:

SOUTH 0° 35’ 19” EAST, 646.04 FEET; AND

SOUTH 85° 58’ 33” WEST, 354.60 FEET;

THENCE LEAVING THE SOUTHERLY LINE OF SAID LOT 4, THE FOLLOWING THREE (3) COURSES:

NORTH 7° 11’ 33” WEST, 353.79 FEET;

NORTH 82° 48’ 27” WEST, 31.00 FEET; AND

NORTH 7° 11’ 33” WEST, 245.00 FEET TO THE BEGINNING OF A NON-TANGENT CURVE ON THE SOUTHERLY

LINE OF CUSHING PARKWAY, FROM WHICH POINT A RADIAL LINE BEARS NORTH 8° 37’ 08” WEST;

THENCE EASTERLY ALONG SAID SOUTHERLY LINE OF CUSHING PARKWAY AND SAID CURVE, THROUGH A CENTRAL
ANGLE OF 7° 21’ 45”, HAVING A RADIUS OF 2044.00 FEET AND AN ARC DISTANCE OF 262.65 FEET;

THENCE CONTINUING ALONG SAID SOUTHERLY LINE OF CUSHING PARKWAY, NORTH 82° 48’ 27” EAST,
197.93 FEET TO THE POINT OF BEGINNING.

A.P.N. 525-1350-039-02

 

 

Exhibit B

California Deed of Trust With Power of Sale,

Lien and Foreclosure Provisions

Without limiting any of the provisions set forth in the body of this Lease or other attachments to
this Lease, the following provisions are included in and made a part of this Lease for all
purposes:

GRANT OF LIEN AND SECURITY INTEREST.

     For and in consideration of the sum of Ten Dollars ($10.00) to LRC in hand paid and
other good and valuable consideration, in order to secure the recovery of the Lease Balance by
BNPPLC and the payment and performance of all of the other obligations, covenants, agreements and
undertakings of LRC under this Lease, the Purchase Agreement or other Operative Documents (in this
Exhibit called the “Secured Obligations”), LRC does hereby irrevocably GRANT, BARGAIN, SELL,
CONVEY, TRANSFER, ASSIGN and SET OVER to First American Title Insurance Company (in this Exhibit
called the “Trustee”), IN TRUST WITH POWER OF SALE, for the benefit of BNPPLC, the Land and all
rights, titles and interests of any kind whatsoever of LRC in and to the Land, together with,
together with (i) all the buildings and other improvements now on or hereafter located thereon;
(ii) any equipment, fixture or other property whatsoever now or hereafter attached or affixed to or
installed in said buildings and other improvements in a manner that causes it to be part of, or
integral and necessary to the operation of, the real property, including, but not limited to, all
heating, plumbing, lighting, water heating, refrigerating, incinerating, ventilating and air
conditioning equipment, utility lines and equipment (whether owned individually or jointly with
others), sprinkler systems, fire extinguishing apparatus and equipment, water tanks, engines,
machines, elevators, motors, cabinets, shades, blinds, partitions, window screens, screen doors,
storm windows, awnings, drapes, and floor coverings, and all fixtures, accessions and appurtenances
thereto, and all renewals or replacements of or substitutions for any of the foregoing, all of
which are hereby declared to be permanent fixtures and accessions to the freehold and part of the
realty conveyed herein as security for the obligations mentioned hereinabove; (iii) all easements
and rights of way now and at any time hereafter used in connection with any of the foregoing
property or as a means of ingress to or egress from the Land or for utilities to said property;
(iv) all interests of LRC in and to any streets, ways, alleys and/or strips of land adjoining said
land or any part thereof; (v) all rents, issues, profits, royalties, bonuses, income and other
benefits derived from or produced by the Land or Improvements; (vi) all leases or subleases of the
Land or Improvements or any part thereof now or hereafter in effect, including all security or
other deposits, advance or prepaid rents, and deposits or payments of similar nature; (vii) all
options to purchase or lease the Land or Improvements or any part thereof or interest therein, and
any greater estate in the Land or Improvements now owned or hereafter acquired by LRC; (viii) all
right, title, estate and interest of every kind and nature, at law or in equity, which LRC now has
or may hereafter acquire in the Land or Improvements; and (ix) all other claims and demands

 

 

with respect to the Land or Improvements or the Collateral (as hereinafter defined), including all
claims or demands to all proceeds of all insurance now or hereafter in effect with respect to the Land,
Improvements or Collateral, all awards made for the taking by condemnation or the power of eminent
domain, or by any proceeding or purchase in lieu thereof, of the Land, Improvements or Collateral,
or any part thereof, or any damage or injury thereto, all awards resulting from a change of grade
of streets, and all awards for severance damages; and (vi) all rights, estates, powers and
privileges appurtenant or incident to the foregoing.

     TO HAVE AND TO HOLD the foregoing property (in this Exhibit called the “Mortgaged Property”)
unto the Trustee, IN TRUST, and his successors or substitutes in this trust and to his or their
successors and assigns upon the terms, provisions and conditions herein set forth for the benefit
of BNPPLC.

     In order to secure the Secured Obligations, LRC also hereby grants to BNPPLC a security
interest in: all components of the Property which constitute personalty, whether owned by LRC now
or hereafter, and all fixtures, accessions and appurtenances thereto now or hereafter attached to
or affixed to or installed in the Mortgaged Property in a manner that causes it to be part of, or
integral and necessary to the operation of, the real property, and all renewals or replacements of
or substitutions for any of the foregoing (including all building materials and equipment now or
hereafter delivered to said premises and intended to be installed or in or incorporated as part of
the Improvements); all rents and other amounts from and under leases of all or any part of the
Property; all issues, profits and proceeds from all or any part of the Property; all proceeds
(including premium refunds) of each policy of insurance relating to the Property; all proceeds from
the taking of the Property or any part thereof or any interest therein or right or estate
appurtenant thereto by eminent domain or by purchase in lieu thereof; all permits, licenses,
franchises, certificates, and other rights and privileges obtained in connection with the Property;
all plans, specifications, maps, surveys, reports, architectural, engineering and construction
contracts, books of account, insurance policies and other documents, of whatever kind or character,
relating to the use, construction upon, occupancy, leasing, sale or operation of the Property; all
proceeds and other amounts paid or owing to LRC under or pursuant to any and all contracts and
bonds relating to the construction, erection or renovation of the Property; and all oil, gas and
other hydrocarbons and other minerals produced from or allocated to the Property and all products
processed or obtained therefrom, the proceeds thereof, and all accounts and general intangibles
under which such proceeds may arise, together with any sums of money that may now or at any time
hereafter become due and payable to LRC by virtue of any and all royalties, overriding royalties,
bonuses, delay rentals and any other amount of any kind or character arising under any and all
present and future oil, gas and mining leases covering the Property or any part thereof (all of the
property described in this section are collectively called the “Collateral” in this Exhibit) and
all proceeds of the Collateral. (The Mortgaged Property and the Collateral are in this Exhibit
sometimes collectively called the “Security”.)

FORECLOSURE BY POWER OF SALE

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 2

 

 

     Upon the occurrence of any Event of Default, the Trustee, its successor or
substitute, and/or BNPPLC is authorized and empowered to execute all written notices then required
by law to cause the Security to be sold under power of sale to satisfy the Secured Obligations.
Trustee will give and record such notices as the law then requires as a condition precedent to a
trustee’s sale. When the minimum period of time required by law after giving all required notices
has elapsed, Trustee, without notice to or demand upon LRC except as otherwise required by law,
will sell the Security at the time and place of sale fixed by it in the notice of sale, at one or
several sales, either as a whole or in separate parcels and in such manner and order, all as BNPPLC
or Trustee in its sole discretion may determine, at public auction to the highest bidder for cash,
in lawful money of the United States, payable at the time of sale (the obligations hereby secured
being the equivalent of cash for purposes of said sale). LRC will have no right to direct the
order in which the Security is sold or to require that the Security be sold in separate lots or
parcels or items. The sale by the Trustee of less than the whole of the Mortgaged Property will
not exhaust the power of sale herein granted, and the Trustee is specifically empowered to make
successive sale or sales under such power until the whole of the Mortgaged Property is sold; and,
if the proceeds of such sale of less than the whole of the Mortgaged Property is less than the
aggregate of the indebtedness secured hereby and the expense of executing this trust as provided
herein, the rights and remedies of BNPPLC hereunder and the lien hereof will remain in full force
and effect as to the unsold portion of the Mortgaged Property just as though no sale or sales had
been made; provided, however, that LRC will never have any right to require the sale of less than
the whole of the Mortgaged Property but BNPPLC will have the right, at its sole election, to
request the Trustee to sell less than the whole of the Mortgaged Property. Subject to requirements
and limits imposed by law, including California Civil Code § 2924g, Trustee may postpone sale of
all or any portion of the Security by public announcement at such time and place of sale and from
time to time may postpone the sale by public announcement at the time and place fixed by the
preceding postponement. Any person or entity, including Trustee, LRC or BNPPLC, may purchase at
the sale, and LRC hereby covenants to warrant and defend the title of such purchaser or purchasers.
Trustee will deliver to the purchaser at such sale a deed conveying the Security or portion
thereof so sold, but without any covenant or warranty, express or implied. At any such sale (i)
LRC hereby agrees, in its behalf and in behalf of its heirs, executors, administrators, successors,
personal representatives and assigns, that any and all recitals made in any deed of conveyance
given by Trustee of any matters or facts stated therein, including without limitation, the identity
of BNPPLC, the occurrence or existence of any default, the acceleration of the maturity of any of
the Secured Obligations, the request to sell, the notice of sale, the giving of notice to all
debtors legally entitled thereto, the time, place, terms, and manner of sale, and receipt,
distribution and application of the money realized therefrom, and the due and proper appointment of
a substitute Trustee and any other act or thing duly done by BNPPLC or by Trustee hereunder, will
be taken by all courts of law and equity as prima facie evidence that the statement or recitals
state facts and are without further question to be so accepted as conclusive proof of the
truthfulness thereof, and
LRC hereby ratifies and confirms every act that

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 3

 

 

Trustee or any substitute Trustee hereunder
may lawfully do in the premises by virtue hereof; and (ii) the purchaser may disaffirm any easement
granted, or rental, lease or other contract made, in violation of any provision of any of the
Operative Documents, and may take immediate possession of the Security free from, and despite
the terms, of, such grant of easement and rental or lease contract.

BNPPLC may elect to cause the Security or any part thereof to be sold under the power of
sale herein granted in any manner permitted by applicable law. In connection with any sale or
sales hereunder, BNPPLC may elect to treat any portion of the Security which consists of a right in
action or which is property that can be severed from the Security without causing structural damage
thereto as if the same were personal property, and dispose of the same in accordance with
applicable law, separate and apart from the sale of the real property. Any sale of any personal
property hereunder will be conducted in any manner permitted by the California Uniform Commercial
Code (in this Exhibit called the “UCC”). Where any portion of the Security consists of real
property and personal property or fixtures, whether or not such personal property is located on or
within the real property, BNPPLC may elect in its discretion to exercise its rights and remedies
against any or all of the real property, personal property and fixtures, in such order and manner
as is now or hereafter permitted by applicable law. Without limiting the generality of the
foregoing, BNPPLC may, in its sole and absolute discretion and without regard to the adequacy of
its security, elect to proceed against any or all of the real property, personal property and
fixtures in any manner permitted by the UCC; and if BNPPLC elects to sell both personal property
and real property together as permitted by the UCC, the power of sale herein granted will be
exercisable with respect to all or any of the real property, personal property and fixtures covered
hereby, as designated by BNPPLC, and Trustee is hereby authorized and empowered to conduct any such
sale of any real property, personal property and fixtures in accordance with the procedures
applicable to real property. Where any portion of the Security consists of real property and
personal property, any reinstatement of the Secured Obligations, following default and an election
by BNPPLC to accelerate the maturity of said obligations, which is made by LRC or any other person
or entity permitted to exercise the right of reinstatement under § 2924c of the California Civil
Code or any successor statute, will, in accordance with the terms of UCC, not prohibit BNPPLC or
Trustee from conducting a sale or other disposition of any personal property or fixtures or from
otherwise proceeding against or continuing to proceed against any personal property or fixtures in
any manner permitted by the UCC, nor will any such reinstatement invalidate, rescind or otherwise
affect any sale, disposition or other proceeding held, conducted or instituted with respect to any
personal property or fixtures prior to such reinstatement or pending at the time of such
reinstatement. Any sums paid to BNPPLC in effecting any reinstatement pursuant to § 2924c of the
California Civil Code will be applied to the indebtedness secured hereby, and to BNPPLC’s
reasonable costs and expenses in the manner required by § 2924c. Should BNPPLC elect to sell any
portion of the Security which is real property, or which is personal property or fixtures that
BNPPLC has elected to sell together with the real property in accordance with the laws governing a
sale of real property, BNPPLC or Trustee will give such
notice of default and election to sell as may then be required

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 4

 

 

by law, and without the necessity of
any demand on LRC, Trustee, at the time(s) and place(s) specified in the notice of sale, will sell
said real property, and all estate, right, title, interest, claim and demand therein, and equity
and right of redemption thereof, at such times and places as required or permitted by law, upon
such terms as BNPPLC or Trustee may fix and specify in the notice of sale or as may be required by law.
If the Security consists of several lots, parcels or items of property, BNPPLC may: (i) designate
the order in which such lots, parcels or items will be offered for sale or sold, or (ii) elect to
sell such lots, parcels or items through a single sale, or through two or more successive sales, or
in any other manner BNPPLC deems in its best interest. Should BNPPLC desire that more than one
sale or other disposition of the Mortgaged Property be conducted, BNPPLC may, at its option, cause
the same to be conducted simultaneously, or successively, on the same day, or on such different
days or times and in such order as BNPPLC may deem to be in its best interests, and no such sale
will exhaust the power of sale herein granted or terminate or otherwise affect the lien granted by
LRC herein on, or the security interests of BNPPLC in, any part of the Security not sold, until all
of the indebtedness secured hereby has been fully paid and satisfied. In the event BNPPLC elects
to dispose of the Security through more than one sale, LRC agrees to pay the costs and expenses of
each such sale and of any judicial proceedings wherein the same may be made, including reasonable
compensation to BNPPLC and Trustee, their agents and counsel, and to pay all expenses, liabilities
and advances made or incurred by BNPPLC and Trustee (or either of them) in connection with such
sale or sale, together with interest on all such advances made by BNPPLC and Trustee (or either of
them) at the Default Rate.

JUDICIAL FORECLOSURE

     This instrument will be effective as a mortgage as well as a deed of trust and upon the
occurrence of an Event of Default may be foreclosed as to any of the Security in any manner
permitted by the laws of the State of California or of any other state in which any part of the
Security is situated, and any foreclosure suit may be brought by the Trustee or by BNPPLC. In the
event a foreclosure hereunder is commenced by the Trustee, or his substitute or successor, BNPPLC
may at any time before the sale of the Security direct the said Trustee to abandon the sale, and
may then institute suit for the collection of the Secured Obligations and for the judicial
foreclosure of this instrument. It is agreed that if BNPPLC should institute a suit for the
collection of the Secured Obligations and for the foreclosure of this instrument, BNPPLC may at any
time before the entry of a final judgment in said suit dismiss the same, and require the Trustee,
his substitute or successor to exercise the power of sale granted herein to sell the Security in
accordance with the provisions of this instrument.

BNPPLC AS PURCHASER

     BNPPLC will have the right to become the purchaser at any sale held by any Trustee or
substitute or successor or by any receiver or public officer, and any BNPPLC purchasing at any

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 5

 

 

such sale will have the right to credit upon the amount of the bid made therefor, to the extent
necessary to satisfy such bid, the outstanding Lease Balance and other Secured Obligations owing to
such BNPPLC.

UNIFORM COMMERCIAL CODE REMEDIES

     Upon the occurrence of an Event of Default, BNPPLC may exercise its rights of enforcement with
respect to the Collateral under the California UCC, as amended, and in conjunction with, in
addition to or in substitution for those rights and remedies:

          (a) BNPPLC may enter upon the Land to take possession of, assemble and collect the
Collateral or to render it unusable; and

          (b) BNPPLC may require LRC to assemble the Collateral and make it available at a place
BNPPLC designates which is mutually convenient to allow BNPPLC to take possession or dispose
of the Collateral; and

          (c) written notice mailed to LRC as provided herein ten (10) days prior to the date of
public sale of the Collateral or prior to the date after which private sale of the
Collateral will be made shall constitute reasonable notice; and

          (d) any sale made pursuant to the provisions of this section will be deemed to have
been a public sale conducted in a commercially reasonable manner if held contemporaneously
with the sale of the Mortgaged Property under power of sale as provided herein upon giving
the same notice with respect to the sale of the Collateral hereunder as is required for such
sale of the Mortgaged Property under power of sale; and

          (e) in the event of a foreclosure sale, whether made by the Trustee exercising the
power of sale granted herein, or under judgment of a court, the Collateral and the Mortgaged
Property may, at the option of BNPPLC, be sold as a whole; and

          (f) it will not be necessary that BNPPLC take possession of the Collateral or any part
thereof prior to the time that any sale pursuant to the provisions of this section is
conducted and it will not be necessary that the Collateral or any part thereof be present at
the location of such sale; and

          (g) prior to application of proceeds of disposition of the Collateral to the Secured
Obligations, such proceeds will be applied to the reasonable expenses of retaking, holding,
preparing for sale or lease, selling, leasing and the like and the reasonable attorney’s
fees and legal expenses incurred by BNPPLC; and

          (h) any and all statements of fact or other recitals made in any bill of sale or

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 6

 

 

assignment or other instrument evidencing any foreclosure sale hereunder as to nonpayment of
the Secured Obligations or as to the occurrence of any Event of Default, or as to BNPPLC
having declared any of the Secured Obligations to be due and payable, or as to notice of
time, place and terms of sale and of the properties to be sold having been
duly given, or as to any other act or thing having been duly done by BNPPLC, will be
taken as prima facie evidence of the truth of the facts so stated and recited; and

          (i) BNPPLC may appoint or delegate any one or more persons as agent to perform any act
or acts necessary or incident to any sale held by BNPPLC, including the sending of notices
and the conduct of the sale, but in the name and on behalf of BNPPLC.

APPOINTMENT OF A RECEIVER

     In addition to all other remedies herein provided for, if any Event of Default occurs or
continues after the Designated Sale Date, BNPPLC will as a matter of right be entitled to the
appointment of a receiver or receivers for all or any part of the Security, whether such
receivership be incident to a proposed sale of such property or otherwise, and without regard to
the adequacy of the security or the value of the Security or the solvency of any person or persons
liable for the payment of the Secured Obligations, and LRC does hereby irrevocably consent to the
appointment of such receiver or receivers, waives any and all defenses to such appointment and
agrees not to oppose any application therefor by BNPPLC, but nothing herein is to be construed to
deprive BNPPLC of any other right, remedy or privilege it may now have under the law to have a
receiver appointed. Any such receiver or receivers will have all of the usual powers and duties of
receivers in like or similar cases and will continue as such and exercise all such powers until the
date of confirmation of sale of the Security unless such receivership is sooner terminated. Any
money advanced by BNPPLC in connection with any such receivership will be a demand obligation owing
by LRC to BNPPLC and will bear interest from the date of making such advancement by BNPPLC until
paid at the Default Rate and will be a part of the Secured Obligations and will be secured by this
lien and by any other instrument securing the Secured Obligations.

PROVISIONS CONCERNING THE TRUSTEE

     Trustee accepts this trust when a Short Form Lease or memorandum referencing the provisions of
this Exhibit, duly executed and acknowledged, is made a public record as provided by law. The
trust hereby created will be irrevocable by LRC.

     In the event the Trustee takes any action pursuant to the provisions of this Exhibit, LRC
must pay to Trustee reasonable compensation for services rendered in the administration of
this trust, which will be in addition to any required reimbursement for Attorney’s Fees or other
expenses.

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 7

 

 

     BNPPLC may appoint a substitute to replace and act as the Trustee hereunder in any
manner now or hereafter provided by law, or in lieu thereof, BNPPLC may from time to time, by an
instrument in writing, appoint substitutes as successor or successors to any Trustee named
herein or acting hereunder, which instrument, executed and acknowledged by BNPPLC and recorded
in the Office of the Recorder of the county in which the Property is located, will be conclusive
proof of proper substitution of such successor Trustee or Trustees, who will thereupon and without
conveyance from the predecessor Trustee, succeed to all its title, estate, rights, powers and
duties. Such instrument must contain the name of the original LRC, Trustee and BNPPLC hereunder,
the instrument number of this Deed of Trust, and the name and address of the successor Trustee. In
the event the Secured Obligations are at any time owned by more than one person or entity, the
holder or holders of not less than a majority in the amount of such Secured Obligations will have
the right and authority to make the appointment of a successor or substitute trustee provided for
in the preceding sentences. Such appointment and designation by BNPPLC or by the holder or holders
of not less than a majority of the Secured Obligations will be full evidence of the right and
authority to make the same and of all facts therein recited. If BNPPLC is a corporation and such
appointment is executed in its behalf by an officer of such corporation, such appointment will be
conclusively presumed to be executed with authority and will be valid and sufficient without proof
of any action by the board of directors or any superior officer of the corporation. Upon the
making of any such appointment and designation, all of the estate and title of the Trustee in the
Security will vest in the named successor or substitute trustee and he will thereupon succeed to
and will hold, possess and execute all the rights, powers, privileges, immunities and duties herein
conferred upon the Trustee; but nevertheless, upon the written request of BNPPLC or of the
successor or substitute Trustee, the Trustee ceasing to act must execute and deliver an instrument
transferring to such successor or substitute Trustee all of the estate and title in the Security of
the Trustee so ceasing to act, together with all the rights, powers, privileges, immunities and
duties herein conferred upon the Trustee, and must duly assign, transfer and deliver any of the
properties and moneys held by said Trustee hereunder to said successor or substitute Trustee. All
references herein to the Trustee will be deemed to refer to the Trustee (including any successor or
substitute appointed and designated as herein provided) from time to time acting hereunder. LRC
hereby ratifies and confirms any and all acts which the herein named Trustee or his successor or
successors, substitute or substitutes, in this trust, do lawfully by virtue hereof.

     THE TRUSTEE WILL NOT BE LIABLE FOR ANY ERROR OF JUDGMENT OR ACT DONE BY THE TRUSTEE IN
GOOD FAITH, OR BE OTHERWISE RESPONSIBLE OR ACCOUNTABLE UNDER ANY CIRCUMSTANCES WHATSOEVER
(INCLUDING THE TRUSTEE’S NEGLIGENCE), EXCEPT FOR THE TRUSTEE’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT. The Trustee will have the right to rely on any instrument, document or
signature authorizing or supporting any action taken or proposed to be taken by him hereunder,
believed by him in good faith to be genuine. All moneys received by the Trustee will, until used
or applied as herein provided, be held in trust for the purposes for which they

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 8

 

 

were received, but
need not be segregated in any manner from any other moneys (except to the extent required by law),
and the Trustee will be under no liability for interest on any moneys received by him hereunder.
LRC WILL REIMBURSE THE TRUSTEE FOR, AND INDEMNIFY AND SAVE HIM HARMLESS AGAINST, ANY AND ALL
LIABILITY AND EXPENSES
(INCLUDING REASONABLE ATTORNEYS’ FEES) WHICH MAY BE INCURRED BY HIM IN THE PERFORMANCE OF HER
DUTIES HEREUNDER (INCLUDING ANY LIABILITY AND EXPENSES RESULTING FROM THE TRUSTEE’S OWN
NEGLIGENCE). The foregoing indemnity will not terminate upon release, foreclosure or other
termination of this instrument.

MISCELLANEOUS

     BNPPLC may resort to any security given by this instrument or to any other security now
existing or hereafter given to secure the payment of the Secured Obligations, in whole or in part,
and in such portions and in such order as may seem best to BNPPLC in its sole and uncontrolled
discretion, and any such action will not in anywise be considered as a waiver of any of the rights,
benefits, liens or security interests evidenced by this instrument.

     To the full extent LRC may do so, LRC agrees that LRC will not at any time insist upon, plead,
claim or take the benefit or advantage of any law now or hereafter in force pertaining to the
rights and remedies of sureties or redemption, and LRC, for LRC and LRC’s successors and assigns,
and for any and all persons ever claiming any interest in the Security, to the extent permitted by
law, hereby waives and releases all rights of redemption, valuation, appraisement, stay of
execution, notice of intention to mature or declare due the whole of the Secured Obligations,
notice of election to mature or declare due the whole of the Secured Obligations and all rights to
a marshaling of the assets of LRC, including the Security, or to a sale in inverse order of
alienation in the event of foreclosure of the liens and security interests hereby created. LRC
will not have or assert any right under any statute or rule of law pertaining to the marshaling of
assets, sale in inverse order of alienation, the exemption of homestead, the administration of
estates of decedents or other matters whatever to defeat, reduce or affect the right of BNPPLC
under the terms of this instrument to a sale of the Security for the collection of the Secured
Obligations without any prior or different resort for collection, or the right of BNPPLC under the
terms of this instrument to the payment of the Secured Obligations out of the proceeds of sale of
the Security in preference to every other claimant whatever. If any law referred to in this
section and now in force, of which LRC or LRC’s successors and assigns and such other persons
claiming any interest in the Security might take advantage despite this provision, is hereafter
repealed or ceases to be in force, such law shall not thereafter be deemed to preclude the
application of this
provision.

     In the event there is a foreclosure sale hereunder and at the time of such sale LRC or
LRC’s successors or assigns or any other persons claiming any interest in the Security by, through
or under LRC are occupying or using the Security, or any part thereof, each and all will

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 9

 

 

immediately become the tenant of the purchaser at such sale. Such tenancy will be a tenancy from
day-to-day, terminable at the will of either landlord or tenant, at a reasonable rental per day
based upon the value of the property occupied, such rental to be due daily to the purchaser. In
the event the tenant fails to surrender possession of said property upon demand, the purchaser will
be entitled to institute and maintain an action to obtain possession in any court of competent
jurisdiction in California.

     LRC agrees to pay BNPPLC for each statement of BNPPLC (as beneficiary) regarding the
obligations secured hereby the maximum fee allowed by law or, if there is no maximum fee, such
reasonable fee as is then charged by BNPPLC for rendering such statement.

     Notwithstanding any contrary provisions regarding the giving of notices in the Common
Definitions or Provisions Agreement or other Operative Documents, any service of a notice required
by California Civil Code § 2924 will be considered complete when the requirements of that statute
are met.

     All rights of action under this Exhibit be enforced by BNPPLC or Trustee without the
possession of any instruments secured hereby and without the production thereof or of this Lease or
other Operative Documents at any trial or other proceeding relative thereto.

 
Exhibit B to Lease Agreement (Fremont/Building #1) — Page 10

 

 

COMMON DEFINITIONS

AND PROVISIONS AGREEMENT

(FREMONT/BUILDING #1)

between

BNP PARIBAS LEASING CORPORATION

and

LAM RESEARCH CORPORATION

Dated as of December 21, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	 	 
	ARTICLE I — LIST OF DEFINED TERMS

	 	 	1	 
	Active Negligence

	 	 	1	 
	Additional Rent

	 	 	2	 
	Administrative Fees

	 	 	2	 
	Affiliate

	 	 	2	 
	After Tax Basis

	 	 	2	 
	Applicable Laws

	 	 	2	 
	Applicable Purchaser

	 	 	2	 
	Arrangement Fee

	 	 	2	 
	Attorneys’ Fees

	 	 	2	 
	Banking Rules Change

	 	 	3	 
	Base Rent

	 	 	3	 
	Base Rent Date

	 	 	3	 
	Base Rent Period

	 	 	3	 
	BNPPLC

	 	 	4	 
	BNPPLC’s Parent

	 	 	4	 
	Breakage Costs

	 	 	4	 
	Break Even Price

	 	 	5	 
	Business Day

	 	 	5	 
	Capital Adequacy Charges

	 	 	5	 
	Closing Certificate

	 	 	5	 
	Closing Letter

	 	 	5	 
	Code

	 	 	5	 
	Collateral Percentage

	 	 	5	 
	Common Definitions and Provisions Agreement

	 	 	5	 
	Constituent Documents

	 	 	5	 
	Default

	 	 	6	 
	Default Rate

	 	 	6	 
	Designated Sale Date

	 	 	6	 
	Effective Date

	 	 	7	 
	Eligible Financial Institution

	 	 	7	 
	Environmental Laws

	 	 	7	 
	Environmental Losses

	 	 	7	 
	Environmental Report

	 	 	8	 
	ERISA

	 	 	8	 
	ERISA Affiliate

	 	 	8	 
	ERISA Termination Event

	 	 	8	 
	Escrowed Proceeds

	 	 	8	 
	Established Misconduct

	 	 	9	 

 

 

	 	 	 	 	 
	 	 	Page
	 
	 	 
	Event of Default

	 	 	10	 
	Excluded Taxes

	 	 	13	 
	Fed Funds Rate

	 	 	14	 
	Funding Advances

	 	 	14	 
	GAAP

	 	 	14	 
	Hazardous Substance

	 	 	15	 
	Hazardous Substance Activity

	 	 	15	 
	Improvements

	 	 	15	 
	Indebtedness

	 	 	16	 
	Initial Advance

	 	 	17	 
	Interested Party

	 	 	17	 
	Land

	 	 	18	 
	Lease

	 	 	18	 
	Lease Balance

	 	 	18	 
	Lease Termination Damages

	 	 	18	 
	Liabilities

	 	 	18	 
	LIBID

	 	 	19	 
	LIBOR

	 	 	19	 
	LIBOR Election

	 	 	20	 
	LIBOR Period

	 	 	21	 
	Lien

	 	 	21	 
	Liens Removable by BNPPLC

	 	 	21	 
	Local Impositions

	 	 	21	 
	Losses

	 	 	22	 
	LRC

	 	 	22	 
	Minimum Insurance Requirements

	 	 	22	 
	Multiemployer Plan

	 	 	22	 
	Operative Documents

	 	 	22	 
	Participant

	 	 	22	 
	Participation Agreement

	 	 	23	 
	Permitted Encumbrances

	 	 	23	 
	Permitted Hazardous Substance Use

	 	 	23	 
	Permitted Hazardous Substances

	 	 	24	 
	Permitted Transfer

	 	 	24	 
	Person

	 	 	25	 
	Personal Property

	 	 	25	 
	Plan

	 	 	25	 
	Pledge Agreement

	 	 	25	 
	Prime Rate

	 	 	25	 
	Prior Owner

	 	 	25	 
	Property

	 	 	25	 
	Purchase Agreement

	 	 	25	 
	Purchase Option

	 	 	25	 

 

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	Page
	 
	 	 
	Qualified Affiliate

	 	 	26	 
	Qualified Income Payments

	 	 	26	 
	Qualified Prepayments

	 	 	26	 
	Real Property

	 	 	27	 
	Remedial Work

	 	 	27	 
	Rent

	 	 	27	 
	Responsible Financial Officer

	 	 	27	 
	Royal Bank of Scotland

	 	 	27	 
	Secured Spread

	 	 	27	 
	Subsidiary

	 	 	27	 
	Supplemental Payment

	 	 	27	 
	Supplemental Payment Obligation

	 	 	27	 
	Term

	 	 	27	 
	Transaction Expenses

	 	 	27	 
	Unfunded Benefit Liabilities

	 	 	28	 
	Unsecured Spread

	 	 	28	 

	 	 	 	 	 	 	 
	ARTICLE II — SHARED PROVISIONS	 	 	28	 
	1.

	 	Notices
	 	 	28	 
	2.

	 	Severability
	 	 	30	 
	3.

	 	No Merger
	 	 	30	 
	4.

	 	No Implied Waiver
	 	 	30	 
	5.

	 	Entire and Only Agreements
	 	 	31	 
	6.

	 	Binding Effect
	 	 	31	 
	7.

	 	Time is of the Essence
	 	 	31	 
	8.

	 	Governing Law
	 	 	31	 
	9.

	 	Paragraph Headings
	 	 	31	 
	10.

	 	Negotiated Documents
	 	 	31	 
	11.

	 	Terms Not Expressly Defined in an Operative Document
	 	 	31	 
	12.

	 	Other Terms and References
	 	 	31	 
	13.

	 	Execution in Counterparts
	 	 	32	 
	14.

	 	Not a Partnership, Etc
	 	 	33	 
	15.

	 	No Fiduciary Relationship Intended
	 	 	33	 

(iii)

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 
	
Annexes
	 
	 	 	 	 
	Annex 22

	 	LIBOR Election Form	 	 
	 
	 	 	 	 
	Annex 23

	 	Minimum Insurance Requirements	 	 

(iv)

 

COMMON DEFINITIONS

AND PROVISIONS AGREEMENT

(FREMONT/BUILDING #1)

     This COMMON DEFINITIONS AND PROVISIONS AGREEMENT (FREMONT/BUILDING #1) (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, LRC and BNPPLC are executing the
Closing Certificate (as defined below), the Lease (as defined below), the Pledge Agreement (as
defined below) and the Purchase Agreement (as defined below), all of which concern LRC or the
Property (as defined below). Each of the Closing Certificate, the Lease, the Pledge Agreement and
the Purchase Agreement (together with this Agreement, the “Operative Documents”) are intended to
create separate and independent obligations upon the parties thereto. However, LRC and BNPPLC
intend that all of the Operative Documents share certain consistent definitions and other
miscellaneous provisions. To that end, the parties are executing this Agreement and incorporating
it by reference into each of the other Operative Documents.

AGREEMENTS

ARTICLE I — LIST OF DEFINED TERMS

     Unless a clear contrary intention appears, the following terms will have the respective
indicated meanings as used herein and in the other Operative Documents:

 

 

     “Active Negligence” of any Person means, and is limited to, the negligent conduct on the
Property (and not mere omissions) by such Person or by others acting and authorized to act on such
Person’s behalf (other than LRC) in a manner that proximately causes actual bodily injury or
property damage for which LRC does not carry (and is not obligated by the Lease to carry)
insurance. “Active Negligence” will not include (1) any negligent failure of BNPPLC to act when
the duty to act would not have been imposed but for BNPPLC’s status as owner of any interest in the
Land, the Improvements or any other Property or as a party to the transactions described in the
Lease or the other Operative Documents, (2) any negligent failure of any other Interested Party to
act when the duty to act would not have been imposed but for such party’s contractual or other
relationship to BNPPLC or participation or facilitation in any manner, directly or indirectly, of
the transactions described in the Lease or other Operative Documents, or (3) the exercise in a
lawful manner by BNPPLC (or any party lawfully claiming through or under BNPPLC) of any right or
remedy provided in or under the Lease or the other Operative Documents consistent with the terms
hereof.

     “Additional Rent” has the meaning indicated in subparagraph 3(C) of the Lease. The
term “Additional Rent” does not include any Supplemental Payment required by the Purchase
Agreement.

     “Administrative Fees” means the fees identified as such in subparagraph 3(E) of the
Lease.

     “Affiliate” of any Person means any other Person controlling, controlled by or under common
control with such Person. For purposes of this definition, the term “control” when used with
respect to any Person means the power to direct the management of policies of such Person, directly
or indirectly, whether through the ownership of voting securities, by contract or otherwise, and
the terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “After Tax Basis” has the meaning indicated in subparagraph 5(C)(1) of the Lease.

     “Applicable Laws” means any or all of the following, to the extent applicable to BNPPLC, LRC,
the Property or the Operative Documents, after giving effect to the contractual choice of law
provisions in the Operative Documents: restrictive covenants; zoning ordinances and building codes;
flood disaster laws; health, safety and environmental laws and regulations; the Americans with
Disabilities Act and other laws pertaining to disabled persons; and other laws, statutes,
ordinances, rules, permits, regulations, orders, determinations and court decisions.

     “Applicable Purchaser” means any third party designated to purchase BNPPLC’s interest in the
Property and in any Escrowed Proceeds as provided in the Purchase Agreement.

     “Arrangement Fee” has the meaning indicated in subparagraph 3(D) of the Lease.

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 2

 

 

     “Attorneys’ Fees” means the reasonable fees and reasonable out-of-pocket expenses of counsel
to the parties incurring the same, excluding costs or expenses of in-house counsel (whether or not
accounted for as general overhead or administrative expenses), but otherwise including printing,
photostating, duplicating and other expenses, air freight charges, and fees billed for law clerks,
paralegals, librarians and others not admitted to the bar but performing services under the
supervision of an attorney. Such terms will also include all such reasonable fees and expenses
incurred with respect to appeals, arbitrations and bankruptcy proceedings, and whether or not any
manner of proceeding is brought with respect to the matter for which such fees and expenses were
incurred.

     “Banking Rules Change” means either: (1) the introduction of or any change after the
Effective Date in any law or regulation applicable to BNPPLC, BNPPLC’s Parent or any Participant,
or in the generally accepted interpretation by the institutional lending community of any such law
or regulation, or in the interpretation of any such law or regulation asserted by any regulator,
court or other governmental authority or (2) the compliance by BNPPLC or BNPPLC’s Parent or any
Participant with any new guideline or new request issued after the Effective Date from any central
bank or other governmental authority (whether or not having the force of law).

     “Base Rent” means the rent payable by LRC pursuant to subparagraph 3(A) of the Lease.

     “Base Rent Date” means a date upon which Base Rent must be paid under the Lease, all of which
dates will be the first Business Day of a calendar month. The first Base Rent Date will be the
first Business Day of the first calendar month following the Effective Date, which is consistent
with the understanding of the parties that the first Base Rent Period will be subject to a LIBOR
Election of one month. Each successive Base Rent Date after the first Base Rent Date will be the
first Business Day of the first or third calendar month following the calendar month which includes
the preceding Base Rent Date, determined as follows:

     (1) If a LIBOR Election of one month is in effect on a Base Rent Date, then the first
Business Day of the first calendar month following such Base Rent Date will be the
next following Base Rent Date.

     (2) If a LIBOR Election of two months is in effect on a Base Rent Date, then the first
Business Day of the second calendar month following such Base Rent Date will be the
next following Base Rent Date.

     (3) If a LIBOR Election of three months or longer is in effect on a Base Rent Date,
then the first Business Day of the third calendar month following such Base Rent
Date will be the next following Base Rent Date.

Thus, for example, if a Base Rent Period commences on the first Business Day of

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 3

 

 

September, 2009 and a LIBOR Election of three months applies to such Base Rent Period, then the next following
Base Rent Date will be the first Business Day of December, 2009.

     “Base Rent Period” means a period for which Base Rent must be paid under the Lease, each of
which periods will correspond to the LIBOR Election for the period. The first Base Rent Period
will begin on the Effective Date, and each successive Base Rent Period will begin on the Base Rent
Date upon which the preceding Base Rent Period ends. Each Base Rent Period, including the first
Base Rent Period, will end on the first or second Base Rent Date after the Base Rent Date upon
which such period began, determined as follows:

     (1) If a LIBOR Election of one month, two months or three months is in effect
for a Base Rent Period, then such Base Rent Period will end on the first Base Rent
Date after the Base Rent Date upon which such period began.

     (2) If a LIBOR Election of six months is in effect for a Base Rent Period, then such
Base Rent Period will end on the second Base Rent Date after the Base Rent Date upon
which such period began.

The determination of Base Rent Periods can be illustrated by two examples:

     1) If LRC makes a LIBOR Election of three months for a hypothetical Base Rent Period
beginning on the first Business Day in January, 2009, then such Base Rent Period will end on
the first Base Rent Date after it begins; that is, such Base Rent Period will end on the
first Business Day in April, 2009, the third calendar month after January, 2009.

     2) If, however, LRC makes a LIBOR Election of six months for the hypothetical Base
Rent Period beginning on the first Business Day in January, 2009, then such Base Rent Period
will end on the second Base Rent Date after it begins; that is, the first Business Day in
July, 2009.

     “BNPPLC” means BNPPLC Leasing Corporation, a Delaware corporation.

     “BNPPLC’s Parent” means BNP Paribas, a bank organized and existing under the laws of France,
and any successors of such bank.

     “Breakage Costs” means any and all costs, losses or expenses incurred or sustained by BNPPLC’s
Parent or any Participant, for which BNPPLC’s Parent or the Participant requests reimbursement from
BNPPLC, because of:

     (1) the resulting liquidation or redeployment of deposits or other funds that were used
to make or maintain Funding Advances upon application of a Qualified

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 4

 

 

Prepayment or upon any sale of the Property pursuant to the Purchase Agreement, if such application or sale occurs on any day other than the last day of a Base Rent Period; or

     (2) the resulting liquidation or redeployment of deposits or other funds that were used
to make or maintain Funding Advances upon the acceleration of the end of any Base Rent
Period because of an acceleration of the Designated Sale Date as described in clauses (2) or (3) of the definition thereof.

Breakage Costs will include, for example, losses on Funding Advances maintained by BNPPLC’s
Parent or any Participant which are attributable to any decline in LIBOR as of the effective date
of any application described in the clause (1) preceding, as compared to LIBOR for the then current
Base Rent Period. Each determination of Breakage Costs by BNPPLC’s Parent or a Participant, as
applicable, will be conclusive and binding upon LRC in the absence of clear and demonstrable error.

     “Break Even Price” has the meaning indicated in the Purchase Agreement.

     “Business Day” means any day that is (1) not a Saturday, Sunday or day on which commercial
banks are generally closed or required to be closed in New York City, New York, and (2) a day on
which dealings in deposits of dollars are transacted in the London interbank market; provided, that
if such dealings are suspended indefinitely for any reason, “Business Day” will mean any day
described in clause (1).

     “Capital Adequacy Charges” means any additional amounts BNPPLC’s Parent or any Participant
requests BNPPLC to pay as compensation for an increase in required capital as provided in
subparagraph 5(B)(2) of the Lease.

     “Closing Certificate” means the Closing Certificate and Agreement (Fremont/Building #1) dated
as of the Effective Date executed by LRC and BNPPLC, as such Closing Certificate and Agreement may
be extended, supplemented, amended, restated or otherwise modified from time to time in accordance
with its terms.

     “Closing Letter” means the letter agreement dated as of the Effective Date between BNPPLC and
LRC confirming the amount of the Initial Advance and the Transaction Expenses paid from the Initial
Advance.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Collateral Percentage” means, for each Base Rent Period or portion thereof, a percentage
equal to the lesser of (1) one hundred percent (100%) or (2) a fraction, the numerator of which
equals the Value of Cash Collateral subject to a Qualified Pledge under the Pledge Agreement on the
first day of such Base Rent Period, and the denominator of which equals the

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 5

 

 

Lease Balance on the first day of such Base Rent Period. (As used in this definition, the terms
“Value” and “Cash Collateral” and “Qualified Pledge” are intended to have the respective
meanings assigned to them in the Pledge Agreement.)

     “Common Definitions and Provisions Agreement” means this Agreement, which is incorporated by
reference into each of the other Operative Documents, as this Agreement may be extended,
supplemented, amended, restated or otherwise modified from time to time in accordance with its
terms.

     “Constituent Documents” of any entity means the organizational documents pursuant to
which such entity was created and is governed, such as the articles of incorporation and bylaws of
a corporation, the articles of organization and regulations of a limited liability company or the
partnership agreement of a partnership.

     “Default” means any event or circumstance which constitutes, or which would with the passage
of time or the giving of notice or both (if not cured within any applicable cure period)
constitute, an Event of Default.

     “Default Rate” means (1) for purpose of computing any interest that accrues at such rate on
the Designated Sale Date or any day prior to the Designated Sale Date, a per annum rate equal to
two percent (2%) above LIBOR in effect on such day; and (2) for purpose of computing any interest
that accrues at such rate on any day after the Designated Sale Date, a per annum rate equal to two
percent (2%) above the Prime Rate in effect on such day; except that for purposes of computing
interest accruing for any period that commences thirty or more days after the Designated Sale Date
on any Base Rent or Supplemental Payment that has become due, but remains to be paid to BNPPLC by
LRC, the Default Rate will mean a floating per annum rate equal to five percent (5%) above the
Prime Rate. Notwithstanding the foregoing, in no event will the “Default Rate” at any time exceed
the maximum interest rate permitted by Applicable Laws.

     “Designated Sale Date” means the earliest of:

     (1) the first Business Day of January, 2015; or

     (2) any Business Day designated as the “Designated Sale Date” for purposes of this
Agreement and the other Operative Documents in an irrevocable, unconditional notice given by
LRC to BNPPLC; provided, that if the Business Day so designated by LRC as the Designated
Sale Date is not at least twenty days after the date of such notice, the notice will be of
no effect for purposes of this definition; and provided, further, that to be effective, any
such notice must include an irrevocable exercise by LRC of the Purchase Option under
subparagraph 2(A)(1) of the Purchase Agreement and thereby obligate LRC to tender
payment of the full Break Even Price to BNPPLC on the Business

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 6

 

 

Day so designated; or

     (3) any Business Day designated as the “Designated Sale Date” for purposes of this
Agreement and the other Operative Documents in a notice given by BNPPLC to LRC:

	 	•	 	when an Event of Default has occurred and is continuing; or

	 
	 	•	 	following any change in the zoning or other Applicable Laws affecting the
permitted use or development of the Property that, in BNPPLC’s good faith judgment,
materially reduces the value of the Property; or
	 
	 	•	 	following any discovery of conditions or circumstances on or about the
Property, such as the presence of an endangered species, which are likely to
substantially impede the use or development of the Property and thereby, in BNPPLC’s
good faith judgment, materially reduce the value of the Property;

provided, however, that if the Business Day so designated by BNPPLC as the Designated Sale Date is
not at least thirty days after the date of such notice, the notice will be of no effect for
purposes of this definition.

     “Effective Date” means December 21, 2007.

     “Eligible Financial Institution” means (a) a commercial bank organized under the laws of the
United States, or any State thereof or the District of Columbia, and having total assets in excess
of $5,000,000,000; (b) a commercial bank organized under the laws of any other country which is a
member of the Organization for Economic Cooperation and Development (“OECD”) or has concluded
special lending arrangements with the International Monetary Fund associated with its General
Arrangements to Borrow, or a political subdivision of any such country, and having total assets in
excess of $5,000,000,000; provided, that such bank is acting through a branch or agency located in
the United States; (c) the central bank of any country which is a member of the OECD; and (d) a
finance company, insurance company or other financial institution (whether a corporation,
partnership or other entity, but excluding any savings and loan association) which is engaged in
making, purchasing or otherwise investing in commercial loans in the ordinary course of its
business, and having total assets in excess of $5,000,000,000; provided, however, that in no event
shall any bank or other Person qualify as an Eligible Financial Institution at any time when it or
its parent company has outstanding obligations with a credit rating less than investment grade from
Standard & Poor’s, a division of the McGraw-Hill Companies, or Moody’s Investors Service, Inc. or
another nationally recognized rating service.

     “Environmental Laws” means any and all existing and future Applicable Laws pertaining to
safety, health or the environment, or to Hazardous Substances or Hazardous

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 7

 

 

Substance Activities, including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Act of 1986, and the Resource Conservation and Recovery Act of 1976, as amended by the Used Oil
Recycling Act of 1980, the Solid Waste Disposal Act Amendments of 1980, and the Hazardous and Solid
Waste Amendments of 1984.

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

     “Environmental Report” means the following report: November 2007 Phase I Environmental Site
Assessment by Environmental Resources Management, ERM, of LAM Campus 4650, 4540, 4400 and 4300
Cushing Parkway Fremont, CA.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, together with all rules and regulations promulgated with respect thereto.

     “ERISA Affiliate” means any Person who for purposes of Title IV of ERISA is a member of LRC’s
controlled group, or under common control with LRC, within the meaning of Section 414 of the
Internal Revenue Code, and the regulations promulgated and rulings issued thereunder.

     “ERISA Termination Event” means (a) the occurrence with respect to any Plan of (1) a
reportable event described in Sections 4043(b)(5) or (6) of ERISA or (2) any other reportable event
described in Section 4043(b) of ERISA other than a reportable event not subject to the provision
for thirty-day notice to the Pension Benefit Guaranty Corporation pursuant to a waiver by such
corporation under Section 4043(a) of ERISA, or (b) the withdrawal of LRC or any ERISA Affiliate
from a Plan during a plan year in which it was a “substantial employer” as defined in Section
4001(a)(2) of ERISA, or (c) the filing of a notice of intent to terminate any Plan or the treatment
of any Plan amendment as a termination under Section 4041 of ERISA, or (d) the institution of
proceedings to terminate any Plan by the Pension Benefit Guaranty Corporation under Section 4042 of
ERISA, or (e) any other event or condition which might constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any Plan.

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 8

 

 

     “Escrowed Proceeds” means, subject to the exclusions specified in the next sentence,
any money that is received by BNPPLC from time to time during the Term (and any interest
earned thereon) from any party (1) under any property insurance policy as a result of damage
to the Property, (2) as compensation for any restriction imposed by any Governmental Authority upon
the use or development of the Property or for the condemnation of the Property or any portion
thereof, (3) because of any judgment, decree or award for physical damage to the Property or (4) as
compensation under any title insurance policy or otherwise as a result of any title defect or
claimed title defect with respect to the Property; provided, however, in determining the amount of
“Escrowed Proceeds” there will be deducted all expenses and costs of every type, kind and nature
(including Attorneys’ Fees) incurred by BNPPLC to collect such proceeds. Notwithstanding the
foregoing, “Escrowed Proceeds” will not include (A) any payment to BNPPLC by any Participant or by
an Affiliate of BNPPLC that is made to compensate BNPPLC for the Participant’s or Affiliate’s share
of any Losses BNPPLC may incur as a result of any of the events described in the preceding clauses
(1) through (4), (B) any money or proceeds that have been applied as a Qualified Prepayment or to
pay any Breakage Costs or other costs incurred in connection with a Qualified Prepayment, (C) any
money or proceeds that, after no less than ten days notice to LRC, BNPPLC returns or pays to a
third party because of BNPPLC’s good faith belief that such return or payment is required by law,
(D) any money or proceeds paid by BNPPLC to LRC or offset against any amount owed by LRC, or (E)
any money or proceeds used by BNPPLC in accordance with the Lease for repairs or the restoration of
the Property or to obtain development rights or the release of restrictions that will inure to the
benefit of future owners or occupants of the Property. Until Escrowed Proceeds are paid to LRC
pursuant to Paragraph 9 of the Lease, transferred to a purchaser under the Purchase
Agreement as therein provided or applied as a Qualified Prepayment or as otherwise described in the
preceding sentence, BNPPLC will keep the same deposited in one or more interest bearing accounts,
and all interest earned on such account will be added to and made a part of Escrowed Proceeds.

     “Established Misconduct” of a Person means, and is limited to:

     (1) if the Person is bound by the Operative Documents or the Participation Agreement,
conduct of such Person that constitutes a breach by it of the express provisions of the
Operative Documents or the Participation Agreement, as applicable, and that continues beyond
any period for cure provided therein, as determined in or as a necessary element of a final
judgment rendered against such Person by a court with jurisdiction to make such
determination, and

     (2) conduct of such Person or its Affiliates that has been determined to constitute
willful misconduct or Active Negligence in or as a necessary element of a final judgment
rendered against such Person by a court with jurisdiction to make such determination.

In no event, however, will Established Misconduct include actions of any Person undertaken in

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 9

 

 

good faith to mitigate Losses that such Person may suffer because of a breach or repudiation by LRC of
any of the Operative Documents. Further, negligence other than Active Negligence will
not in any event constitute Established Misconduct. For purposes of this definition, “conduct of a
Person” will consist of (1) the conduct of any employee of that Person, and (2) the conduct of an
agent of that Person (such as an independent environmental consultant engaged by that Person), but
only to the extent that the agent is (a) acting within the scope of the authority granted to him by
such Person, and (b) neither LRC nor acting with the consent or approval of or at the request of or
under the direction of LRC or LRC’s Affiliates, employees or agents. Established Misconduct of one
Interested Party will not be attributed to a second Interested Party unless the second Interested
Party is an Affiliate of the first, and it is understood that BNPPLC has not been authorized, and
nothing in the Participation Agreement will be construed as authorizing BNPPLC, to act as an
“agent” for any Participant as the term is used in this definition.

     “Event of Default” means any of the following:

     (A) LRC fails to pay when due any installment of Base Rent or Administrative Fees required by
the Lease, and such failure continues for three Business Days after LRC is notified in writing
thereof.

     (B) LRC fails to pay the full amount of any Supplemental Payment as provided in the Purchase
Agreement on the Designated Sale Date.

     (C) LRC fails to pay when first due any amount required by the Operative Documents (other than
Base Rent or Administrative Fees required as provided in the Lease or any Supplemental Payment
required as provided in the Purchase Agreement) and such failure continues for ten Business Days
after LRC is notified in writing thereof.

     (D) Any representation or warranty of LRC contained in any of the Operative Documents or in
any certificate or other document delivered by LRC pursuant to the Operative Documents is
determined by BNPPLC to have been false or misleading in any material respect when made, and LRC
fails to cause such representation or warranty to be made true and not misleading within ten
Business Days after LRC is notified in writing of such determination by BNPPLC.

     (E) LRC fails to comply with any provision of the Operative Documents (other than as described
in the other clauses of this definition) and does not cure such failure prior to the earliest of
(1) thirty days after notice thereof is given to LRC, or (2) the date any writ or order is issued
for the levy or sale of any property owned by BNPPLC (including the Property) because of such
failure, or (3) the date any third party claim or criminal prosecution is instituted or overtly
threatened against any Interested Party or any of its directors, officers or employees because of
such failure; provided, however, that so long as no such writ or order is issued and no such third
party claim or criminal prosecution is instituted or overtly threatened, the period

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 10

 

 

within which such failure may be cured by LRC will be extended for a further period (not to exceed an additional
one hundred eighty days) as is necessary for the curing thereof with diligence, if (but
only if) (x) such failure is susceptible of cure but cannot with reasonable diligence be cured
within such thirty day period, (y) LRC promptly commences to cure such failure and thereafter
continuously prosecutes the curing thereof with reasonable diligence and (z) the extension of the
period for cure will not, in any event, cause the period for cure to extend to or beyond the
Designated Sale Date.

     (F) LRC abandons any material part of the Property.

     (G) Any event occurs or circumstance exists that constitutes an “Event of Default” as defined
in the Pledge Agreement.

     (H) LRC or any Subsidiary of LRC fails to pay any principal of or premium or interest
on any of its Indebtedness which is outstanding in a principal amount of at least $25,000,000 when
the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure continues after the applicable grace period, if any,
specified in the agreement or instrument relating to such Indebtedness; or any other event occurs
or condition exists under any agreement or instrument relating to any such Indebtedness and
continues after the applicable grace period, if any, specified in such agreement or instrument, if
the effect of such event or condition is to accelerate the maturity of such Indebtedness; or any
such Indebtedness is declared by the creditor to be due and payable, or required to be prepaid
(other than by a regularly scheduled required prepayment), redeemed, purchased or defeased, or an
offer to prepay, redeem, purchase or defease such Indebtedness is required to be made, in each case
prior to the stated maturity thereof.

     (I) LRC or any material Subsidiary of LRC is generally not paying its debts as such debts
become due, or admits in writing its inability to pay its debts generally, or makes a general
assignment for the benefit of creditors; or any proceeding is instituted by or against LRC or any
material Subsidiary of LRC seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or
composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization
or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its property
and, in the case of any such proceeding instituted against it (but not instituted by it), either
such proceeding remains undismissed or unstayed for a period of sixty consecutive days, or any of
the actions sought in such proceeding (including the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) occurs; or LRC or any material Subsidiary of LRC takes any
corporate action to authorize any of the actions set forth above in this clause.

     (J) Any order, judgment or decree is entered in any proceedings against LRC or any

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 11

 

 

of LRC’s material Subsidiaries decreeing its dissolution and such order, judgment or decree remains unstayed
and in effect for more than sixty days.

     (K) Any order, judgment or decree is entered in any proceedings against LRC or any of LRC’s
material Subsidiaries decreeing a divestiture of any of assets that represent a substantial part,
or the divestiture of the stock of any of LRC’s Subsidiaries whose assets represent a substantial
part, of the total assets of LRC and its Subsidiaries (determined on a consolidated basis in
accordance with GAAP) or which requires the divestiture of assets, or stock of any of LRC’s
Subsidiaries, which have contributed a substantial part of the net income of LRC and its
Subsidiaries (determined on a consolidated basis in accordance with GAAP) for any of the three
fiscal years then most recently ended, and such order, judgment or decree remains unstayed and in
effect for more than sixty days.

     (L) A judgment or order for the payment of money in an amount (not covered by
insurance) which exceeds $25,000,000 is rendered against LRC or any of LRC’s Subsidiaries and
either (i) enforcement proceedings is commenced by any creditor upon such judgment, or (ii) within
thirty days after the entry thereof, such judgment or order is not discharged or execution thereof
stayed pending appeal, or within thirty days after the expiration of any such stay, such judgment
is not discharged.

     (M) Any ERISA Termination Event occurs that BNPPLC determines in good faith would constitute
grounds for a termination of any Plan or for the appointment by the appropriate United States
district court of a trustee to administer any Plan and such ERISA Termination Event is continuing
thirty days after notice to such effect is given to LRC by BNPPLC, or any Plan is terminated, or a
trustee is appointed by a United States district court to administer any Plan, or the Pension
Benefit Guaranty Corporation institutes proceedings to terminate any Plan or to appoint a trustee
to administer any Plan.

     (N) LRC enters into any transaction which would cause any of the Operative Documents or any
other document executed in connection herewith (or any exercise of BNPPLC’s rights hereunder or
thereunder) to constitute a non-exempt prohibited transaction under ERISA.

     (O) Any event or circumstance having a Material Adverse Effect occurs and is not rectified
before the end of thirty Business Days after LRC is notified in writing thereof.

     (P) LRC shall fail to comply with subparagraph 3(A) of the Closing Certificate, which requires
that LRC and its Subsidiaries maintain a minimum amount of unrestricted cash, unencumbered cash
investments and unencumbered marketable securities classified as short term or long term
investments according to GAAP.

     (Q) Any of the following shall occur: (a) the acquisition of ownership, directly or

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 12

 

 

indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities
Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in
effect on the date hereof), of Equity Interests (as defined below) representing more than 40%
of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests
of LRC; or (b) occupation of a majority of the seats (other than vacant seats) on the board of
directors of LRC by Persons who were neither (i) nominated by the board of directors of LRC nor
(ii) appointed by directors so nominated. (As used in this paragraph, “Equity Interests” means
shares of capital stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in a Person, and any
warrants, options or other rights entitling the holder thereof to purchase or acquire any such
equity interest.)

     (R) Any “Event of Default” shall occur as defined in any other Common Definitions and
Provisions Agreement executed by LRC and BNPPLC, it being understood that the parties are executing
and may in the future execute such other agreements in connection with arrangements that are
similar to those contemplated by the Operative Documents, but that cover properties other than the
Property.

     (S) LRC shall in writing or in any legal proceedings repudiate any of the Operative Documents
or assert that any of the Operative Documents are not valid or enforceable as written or that
BNPPLC does not own or have a lien or security interest in the Property by reason of the Operative
Documents.

     “Excluded Taxes” means:

     (1) taxes upon or measured by net income to the extent such taxes are (A) payable in
respect of Base Rent or other Qualified Income Payments, or (B) (i) payable by BNPPLC in
respect of any Qualified Prepayment or any net sales proceeds paid to BNPPLC upon a sale of
the Property because of a refusal of tax authorities to accept the intended characterization
of the Lease and other Operative Documents as a financing arrangement for tax purposes, and
(ii) offset in the same taxable period by a reduction in the taxes of BNPPLC which are not
indemnified by LRC because of depreciation deductions or other tax benefits available to
BNPPLC only because of the refusal of the tax authorities to treat the Lease and other
Operative Documents as a financing arrangement; and

     (2) any transfer or change of ownership taxes assessed because of BNPPLC’s transfer or
conveyance to any third party of any rights or interest in the Operative Documents or the
Property; save and except, however, any such taxes assessed because of (i) any Permitted
Transfer under clauses (1) or (2) of the definition of Permitted Transfer in this Agreement,
or (ii) any sale of the Property by BNPPLC required by the Purchase Agreement or with
respect to which the Purchase Agreement governs the

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 13

 

 

distribution and allocation of sales proceeds; and

     (3) taxes that result solely from an act or event, or are attributable solely to any
period of time, that occurs after the latest of:

     (i) the expiration of the Term with respect to the Property and, if the Lease
or other Operative Documents require the return of the Property to BNPPLC, such
return;

     (ii) any sale or Deemed Sale (as defined in the Purchase Agreement) of the
Property pursuant to the Purchase Agreement; or

     (iii) the discharge in full of LRC’s obligation to pay or do anything to
cause or assure the payment of the Lease Balance, or any amount determined by
reference thereto, and all other amounts due under the Operative Documents;

except any such taxes that are imposed on or with respect to payments that become due under
the Operative Documents after such expiration, sale or discharge, and in any event excluding
taxes that relate to acts, events, or matters occurring at or prior to the latest of any
such expiration, sale or discharge.

It is understood that if tax rates used to calculate income taxes which constitute Excluded Taxes
under clause (1) of this definition are increased, the resulting increase will not be subject to
reimbursement or indemnification by LRC. If, however, a change in Applicable Laws after the
Effective Date, as applied to the transactions contemplated by the Operative Documents on a
stand-alone basis, results in an increase in such income taxes for any reason other than an
increase in the applicable tax rates (e.g., a disallowance of deductions that would otherwise be
available against payments described in clause (1) of this definition), then for purposes of the
Operative Documents, the term “Excluded Taxes” will not include the actual increase in such taxes
attributable to the change. Accordingly, BNPPLC, BNPPLC’s Parent and any Participant may recover
any such net increase from LRC pursuant to subparagraph 5(B) of the Lease.

It is also understood that nothing in this definition of “Excluded Taxes” will prevent any Original
Indemnity Payment (as defined in subparagraph 5(C)(1) of the Lease) from being paid on an After Tax
Basis.

     “Fed Funds Rate” means, for any period, a fluctuating interest rate (expressed as a per annum
rate and rounded upwards, if necessary, to the next 1/16 of 1%) equal on each day during such
period to the weighted average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of
New York, or, if such rates are not so published for any day which is a

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 14

 

 

Business Day, the average of the quotations for each day during such period on such transactions received by BNPPLC’s Parent
from three Federal funds brokers of recognized standing selected by
BNPPLC’s Parent.

     “Funding Advances” means all advances made by BNPPLC’s Parent or any Participant to or on
behalf of BNPPLC to allow BNPPLC to make the Initial Advance and to maintain its investment in the
Property.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time, applied on a basis consistent with those used in the preparation of the
financial statements delivered by LRC to BNPPLC prior to the Effective Date, which are the subject
of representations in subparagraph 2(A)(4) of the Closing Certificate.

     “Governmental Authority” means (1) the United States, the state, the county, the
municipality, and any other political subdivision in which the Land is located, and (2) any other
nation, state or other political subdivision or agency or instrumentality thereof having or
asserting jurisdiction over LRC or the Property.

     “Hazardous Substance” means (i) any chemical, compound, material, mixture or substance that is
now or hereafter defined or listed in, regulated under, or otherwise classified pursuant to, any
Environmental Laws as a “hazardous substance,” “hazardous material,” “hazardous waste,” “extremely
hazardous waste or substance,” “infectious waste,” “toxic substance,” “toxic pollutant,” or any
other formulation intended to define, list or classify substances by reason of deleterious
properties, including ignitability, corrosiveness, reactivity, carcinogenicity, toxicity or
reproductive toxicity; (ii) petroleum, any fraction of petroleum, natural gas, natural gas liquids,
liquified natural gas, synthetic gas usable for fuel (or mixtures of natural gas and such synthetic
gas), and ash produced by a resource recovery facility utilizing a municipal solid waste stream,
and drilling fluids, produced waters and other wastes associated with the exploration, development
or production of crude oil, natural gas or geothermal resources; (iii) asbestos and any asbestos
containing material; and (iv) any other material that, because of its quantity, concentration or
physical or chemical characteristics, is the subject of regulation under Applicable Law or poses a
significant present or potential hazard to human health or safety or to the environment if released
into the workplace or the environment.

     “Hazardous Substance Activity” means any actual, proposed or threatened use, storage, holding,
release (including any spilling, leaking, leaching, pumping, pouring, emitting, emptying, dumping,
disposing into the environment, and the continuing migration into or through soil, surface water,
groundwater or any body of water), discharge, deposit, placement, generation, processing,
construction, treatment, abatement, removal, disposal, disposition, handling or transportation of
any Hazardous Substance from, under, in, into or on the Property, including the movement or
migration of any Hazardous Substance from surrounding property, surface water, groundwater or any
body of water under, in, into or onto the Property and any

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 15

 

 

resulting residual Hazardous Substance contamination in, on or under the Property. “Hazardous Substance Activity” also means any existence
of Hazardous Substances on the Property that would cause
the Property or the owner or operator thereof to be in violation of, or that would subject the
Property to any remedial obligations under, any Environmental Laws, assuming disclosure to the
applicable Governmental Authorities of all relevant facts, conditions and circumstances pertaining
to the Property.

     “Improvements” means any and all (1) buildings and other real property improvements previously
or hereafter erected on the Land, and (2) equipment (e.g., HVAC systems, elevators and plumbing
fixtures) attached to the buildings or other real property improvements, the removal of which would
cause structural or other material damage to the buildings or other real property improvements or
would materially and adversely affect the value or use of the buildings or other real property
improvements.

     “Indebtedness” of any Person means (without duplication of any item) Liabilities of
such Person in any of the following categories:

     (A) Liabilities for borrowed money;

     (B) Liabilities constituting an obligation to pay the deferred purchase price of
property or services;

     (C) Liabilities evidenced by a bond, debenture, note or similar instrument;

     (D) Liabilities which (1) would under GAAP be shown on such Person’s balance sheet as a
liability, and (2) are payable more than one year from the date of creation thereof (other
than reserves for taxes and reserves for contingent obligations);

     (E) Liabilities constituting principal under leases capitalized in accordance with
GAAP;

     (F) Liabilities arising under conditional sales or other title retention agreements;

     (G) Liabilities owing under direct or indirect guaranties of Liabilities of any other
Person or otherwise constituting obligations to purchase or acquire or to otherwise protect
or insure a creditor against loss in respect of Liabilities of any other Person (such as
obligations under working capital maintenance agreements, agreements to keep-well, or
agreements to purchase Liabilities, assets, goods, securities or services), but excluding
endorsements in the ordinary course of business of negotiable instruments in the course of
collection;

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 16

 

 

     (H) Liabilities (for example, repurchase agreements, mandatorily redeemable preferred
stock and sale/leaseback agreements) consisting of an obligation to purchase or
redeem securities or other property, if such Liabilities arises out of or in connection
with the sale or issuance of the same or similar securities or property;

     (I) Liabilities with respect to letters of credit or applications or reimbursement
agreements therefor;

     (J) Liabilities with respect to payments received in consideration of oil, gas, or
other commodities yet to be acquired or produced at the time of payment (including
obligations under “take-or-pay” contracts to deliver gas in return for payments already
received and the undischarged balance of any production payment created by such Person or
for the creation of which such Person directly or indirectly received payment);

     (K) Liabilities with respect to other obligations to deliver goods or services
in consideration of advance payments therefor; or

     (L) Liabilities under any “synthetic” or other lease of property or related documents
(including a separate purchase agreement) which obligate such Person or any of its
Affiliates (whether by purchasing or causing another Person to purchase any interest in the
leased property or otherwise) to guarantee a minimum residual value of the leased property
to the lessor.

For purposes of this definition, the amount of Liabilities described in the last clause of the
preceding sentence with respect to any lease classified according to GAAP as an “operating lease,”
will equal the sum of (1) the present value of rentals and other minimum lease payments required in
connection with such lease (calculated in accordance with SFAS 13 and other GAAP relevant to the
determination of the whether such lease must be accounted for as an operating lease or capital
lease), plus (2) the fair value of the property covered by the lease; except that such amount will
not exceed the price, as of the date a determination of Indebtedness is required hereunder, for
which the lessee can purchase the leased property pursuant to any valid ongoing purchase option if,
upon such a purchase, the lessee will be excused from paying rentals or other minimum lease
payments that would otherwise accrue after the purchase.

Notwithstanding the foregoing, the “Indebtedness” of any Person will not include Liabilities that
were incurred by such Person on ordinary trade terms to vendors, suppliers, or other Persons
providing goods and services for use by such Person in the ordinary course of its business, unless
and until such Liabilities are outstanding more than 90 days past the original invoice or billing
date therefor.

     “Initial Advance” means, collectively, all advances made by BNPPLC’s Parent (directly or
through one or more of its Affiliates) or any Participants to or on behalf of BNPPLC on or

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 17

 

 

prior to the Effective Date to cover the purchase price payable by BNPPLC to the Prior Owner for its
interest in the Land and Improvements and other Property and to cover the cost to
BNPPLC of certain Transaction Expenses and other amounts confirmed in the Closing Letter.

     “Interested Party” means each of following Persons and their Affiliates: (1) BNPPLC and
its successors and permitted assigns as to the Property or any part thereof or any interest
therein, (2) BNPPLC’s Parent, and (3) the Participants; provided, however, none of the following
Persons will constitute an Interested Party: (a) any Person to whom BNPPLC may transfer an interest
in the Property by a conveyance that is not a Permitted Transfer and others that cannot lawfully
claim an interest in the Property except through or under a transfer by such a Person, (b) LRC and
its Affiliates, (c) any Person claiming through or under a conveyance made by LRC after any
purchase by LRC of BNPPLC’s interest in the Property pursuant to the Purchase Agreement, or (d) any
Applicable Purchaser designated by LRC under the Purchase Agreement who purchases the Property
pursuant to a sale arranged by LRC and any Person that cannot lawfully claim an interest in the
Property except through or under a conveyance from such an Applicable Purchaser.

     “Land” means the land described in Exhibit A attached to the Closing Certificate, the
Lease and the Purchase Agreement.

     “Lease” means the Lease Agreement (Fremont/Building #1) dated as of the Effective Date between
BNPPLC, as landlord, and LRC, as tenant, pursuant to which LRC has agreed to lease BNPPLC’s
interest in the Property, as such Lease Agreement may be extended, supplemented, amended, restated
or otherwise modified from time to time in accordance with its terms.

     “Lease Balance” means, as of any date, the amount equal to the sum of the Initial Advance,
minus all funds actually received by BNPPLC and applied as Qualified Prepayments on or prior to
such date. Under no circumstances will any payment of Base Rent or other Qualified Income Payments
reduce the Lease Balance.

Consistent with the recent independent appraisal obtained by LRC, the Lease Balance is allocated
between the Land and the Improvements as follows: 31.964603% of the Lease Balance is attributable
to the Land, and the remaining 68.035397% of the total Lease Balance is attributable to
Improvements. However, such percentage allocations may be adjusted by reason of Qualified
Prepayments as follows: If any damage or taking to Improvements results in Qualified Prepayments,
such Qualified Prepayments will reduce the portion of the Lease Balance attributable to the
Improvements. Similarly, if any taking by eminent domain of any portion of the Land results in
Qualified Prepayments, such Qualified Prepayments will reduce the portion of the Lease Balance
attributable to the Land. If both Land and Improvements are subject to a partial taking by eminent
domain, then any resulting Qualified Prepayments will be allocated between the portion of the Lease
Balance attributable to the Land and the portion attributable to

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 18

 

 

the Improvements in proportion to the adverse impact such taking has on the value of the Land and Improvements (respectively) which
are covered by and subject to the Operative Documents
immediately after the taking as compared to immediately before the taking. Finally, after the
reduction of the Lease Balance by reason of any Qualified Prepayments described in this definition,
the percentage allocations of the Lease Balance between Land and Improvements will be re-computed,
with (i) the percentage of the Lease Balance allocated to the Improvements being equal to the
remaining Lease Balance attributable to the Improvements, divided by the total Lease Balance, and
(ii) the percentage of the Lease Balance allocated to the Land being equal to the remaining Lease
Balance attributable to the Land, divided by the total Lease Balance.

     “Lease Termination Damages” has the meaning indicated in subparagraph 14(A)(3)(c) of
the Lease.

     “Liabilities” means, as to any Person, all indebtedness, liabilities and obligations of
such Person, whether matured or unmatured, liquidated or unliquidated, primary or secondary, direct
or indirect, absolute, fixed or contingent, and whether or not required to be considered pursuant
to GAAP.

     “LIBID” means (1) for any period that is included in or coincides with a Base Rent Period, the
per annum rate equal to LIBOR for such Base Rent Period, minus twelve and one-half basis points
(12.5/100 of 1%); and (2) for each day after the last Base Rent Period, a per annum rate equal to
LIBOR for the LIBOR Period that includes such day, less twelve and one-half basis points (12.5/100
of 1%).

     “LIBOR” means, for any LIBOR Period, the per annum rate equal to:

     (a) the offered rate for deposits in U.S. dollars as of approximately 11:00 a.m.,
London time, on the day that is two London Banking Days (hereinafter defined) prior to the
day upon which such LIBOR Period begins (the “Reset Date”), as reported:

     (1) on Reuters Screen LIBOR01 page (or any replacement page or pages on which
London interbank rates of major banks for U.S. dollars are displayed) by the Reuters
service; or

     (2) on Moneyline Telerate Page 3750, British Bankers Association Interest
Settlement Rates, or another news page selected by BNPPLC’s Parent if the Reuters
Screen LIBOR01 page is removed from the Reuters system or changed such that, in the
opinion of BNPPLC’s Parent, the interest rates shown on it no longer represent the
same kind of interest rates as when the Operative Documents were executed; or

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 19

 

 

     (b) if such offered rate is for any reason unavailable, the rate per annum determined
by BNPPLC’s Parent on the basis of rates offered for deposits in U.S. dollars by four major
banks in the London interbank market selected by BNPPLC’s Parent (“Reference Banks”) at approximately 11:00 a.m., London time, on the day that is two
London Banking Days preceding the Reset Date to prime banks in the London interbank market
for a period corresponding as nearly as possible to the applicable LIBOR Period. (If this
clause (b) applies, BNPPLC’s Parent will request the principal London office of each of the
Reference Banks to provide a quotation of its rate. If at least two quotations are provided,
“LIBOR” will be the arithmetic mean of the quotations. If, however, fewer than two
quotations are provided, “LIBOR” will be the arithmetic mean of the rates quoted by major
banks in New York selected by BNPPLC’s Parent, at approximately 11:00 a.m., New York time,
on the Reset Date for loans in U.S. dollars to leading U.S. banks for a period corresponding
as nearly as possible to the applicable LIBOR Period.)

As used in this definition, “London Banking Day” means any day on which commercial banks are
open for general business (including dealings in foreign exchange and foreign currency deposits) in
London, England.

If for any reason BNPPLC determines that it is impossible or unreasonably difficult to determine
LIBOR for any given LIBOR Period in accordance with the foregoing, then the “LIBOR” for that period
will equal any published index or per annum interest rate determined in good faith by BNPPLC to be
comparable to LIBOR at the beginning of the first day of that period. A comparable interest rate
might be, for example, the then existing yield on short term United States Treasury obligations (as
compiled by and published in the then most recently published United States Federal Reserve
Statistical Release H.15(519) or its successor publication), plus or minus a fixed adjustment based
on BNPPLC’s comparison of past eurodollar market rates to past yields on such Treasury obligations.

     “LIBOR Election” means an election to have any Base Rent Period extend for approximately one
month, two months, three months or six months. Subject to the limitations and qualifications set
forth in this definition, LRC may make any Base Rent Period subject to a LIBOR Election by a notice
given to BNPPLC in the form attached as Annex 1 at least five Business Days prior to the
commencement of such Base Rent Period. After a LIBOR Election becomes effective, it will remain in
effect for all subsequent Base Rent Periods until a different election is made in accordance with
the provisions of this definition. (For purposes of the definition of Base Rent Periods above, a
LIBOR Election for any Base Rent Period will also be considered the LIBOR Election in effect on the
Effective Date or Base Rent Date upon which such Base Rent Period begins.) Notwithstanding the
foregoing:

	 	•	 	No LIBOR Election made by LRC will be effective or continue if it would cause a Base
Rent Period to extend beyond the end of the scheduled Term.

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 20

 

 

	 	•	 	Changes in any LIBOR Election initiated by LRC will become effective only upon the
commencement of a new Base Rent Period.
	 
	 	•	 	If for any reason (including BNPPLC’s receipt of a notice from LRC purporting to make a
LIBOR Election that is contrary to the foregoing provisions), BNPPLC is unable to determine
with certainty whether a particular Base Rent Period is subject to a specific LIBOR
Election of one month, two months, three months or six months, the LIBOR Period Election
for that particular Base Rent Period will be one month.
	 
	 	•	 	If any Event of Default has occurred and is continuing on the third Business Day
preceding the commencement of a particular Base Rent Period, then BNPPLC shall be entitled
(but not required) to make a LIBOR Election for that Base Rent Period of one month, absent
which the LIBOR Election for that Base Rent Period will be determined in accordance with
the foregoing provisions.

     “LIBOR Period” means any Base Rent Period. It also means, for purposes of computing
any interest that accrues after the last Base Rent Period as provided in subparagraph 3(D)(3) of
the Purchase Agreement, any successive period that begins on the last day of a preceding LIBOR
Period ends and ends on the first Business Day of the next following calendar month.

     “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement, any lease in the nature thereof, any agreement to sell receivables with
recourse, and the filing of or agreement to give any financing statement under the Uniform
Commercial Code of any jurisdiction).

     “Liens Removable by BNPPLC” means, and is limited to, Liens encumbering the Property that are
asserted (1) other than as contemplated in the Operative Documents, by BNPPLC itself or by BNPPLC’s
Parent, (2) by third parties lawfully claiming through or under BNPPLC, or (3) by third parties
claiming under a deed or other instrument duly executed by BNPPLC; provided, however, Liens
Removable by BNPPLC will not include (A) any Permitted Encumbrances (regardless of whether claimed
through or under BNPPLC), (B) the Operative Documents or any other document executed by BNPPLC with
the knowledge of (and without objection by) LRC or LRC’s counsel contemporaneously with the
execution and delivery of the Operative Documents, (C) Liens which are neither lawfully claimed
through or under BNPPLC (as described above) nor claimed under a deed or other instrument duly
executed by BNPPLC, (D) Liens claimed by LRC or claimed through or under a conveyance made by LRC,
(E) Liens arising because of BNPPLC’s compliance with Applicable Law, the Operative Documents,
Permitted Encumbrances or any request made by LRC, (F) Liens securing the payment of property taxes
or other amounts assessed against the Property by any Governmental Authority, (G) Liens resulting
from or arising or asserted in connection with any breach by LRC of the Operative Documents; or (H)
Liens resulting from or arising in connection with any Permitted

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 21

 

 

Transfer that occurs after any Designated Sale Date upon which, for any reason, LRC or any Applicable Purchaser does not purchase
BNPPLC’s interest in the Property pursuant to the Purchase Agreement for a price (when taken
together with any Supplemental Payment paid by
LRC pursuant to the Purchase Agreement, in the case of a purchase by an Applicable Purchaser)
equal to the Break Even Price.

     “Local Impositions” means all sales, excise, ad valorem, gross receipts, business,
transfer, stamp, occupancy, rental and other taxes (other than taxes on net income and corporate
franchise taxes), levies, fees, charges, surcharges, assessments, interest, additions to tax, or
penalties imposed by the State of California or any agency or political subdivision thereof upon
BNPPLC or any owner of the Property or any part of or interest in the Property because of (i) the
Lease or other Operative Documents, (ii) the status of record title to the Property, (iii) the
ownership, leasing, occupancy, sale or operation of the Property or any part thereof or interest
therein, or (iv) the Permitted Encumbrances; excluding, however, Excluded Taxes. “Local
Impositions” will include any real estate taxes imposed because of a change of use or ownership of
the Property resulting from, or occurring on or prior to the date of, any sale by BNPPLC pursuant
to the Purchase Agreement.

     “Losses” means the following: any and all losses, liabilities, damages (whether actual,
consequential, punitive or otherwise denominated), demands, claims, administrative or legal
proceedings, actions, judgments, causes of action, assessments, fines, penalties, costs of
settlement and other costs and expenses (including Attorneys’ Fees and the fees of outside
accountants and environmental consultants), of any and every kind or character, foreseeable and
unforeseeable, liquidated and contingent, proximate and remote, known and unknown.

     “LRC” means Lam Research Corporation, a Delaware corporation.

     “Material Adverse Effect” means a material adverse effect on (a) the assets, operations,
financial condition or businesses of LRC, (b) the ability of LRC to perform any of its obligations
under the Operative Documents, (c) the rights of or benefits available to BNPPLC or BNPPLC’s Parent
or the Participants under the Operative Documents, (d) the value, utility or useful life of the
Property or (e) the priority, perfection or status of any of BNPPLC’s interests in the Property or
in any of the Operative Documents.

     “Minimum Insurance Requirements” means the insurance requirements outlined in Annex 2
attached to this Agreement.

     “Multiemployer Plan” means a multiemployer plan as defined in Section 3(37) of ERISA to which
contributions have been made by LRC or any ERISA Affiliate during the preceding six years and which
is covered by Title IV of ERISA.

     “Operative Documents” means the following documents executed by LRC and

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 22

 

 

BNPPLC: (1) Closing Certificate, (2) the Lease, (3) the Pledge Agreement, (4) the Purchase Agreement, (5) this Common
Definitions and Provisions Agreement, (6) the Closing Letter, (7) the Memorandum (Short Form) of
Lease (Fremont/Building #1) dated as of the Effective Date, (8) the Memorandum of Agreement Regarding Purchase and Remarketing Options (Fremont/Building
#1) dated as of the Effective Date, (9) financing statements filed to give notice of or perfect
BNPPLC’s rights or interests under any of the foregoing Operative Documents, and (10) all Deposit
Taker’s Agreement executed by LRC and BNPPLC as provided in the Pledge Agreement.

     “Participant” means any Person other than BNPPLC that from time to time, by executing
the Participation Agreement or supplements as contemplated therein, becomes a party to the
Participation Agreement and thereby agrees to participate in all or some of the risks and rewards
to BNPPLC of the Operative Documents; provided, however, no such Person will qualify as a
Participant for purposes of the Operative Documents unless such Person is approved to be a
Participant by LRC. As of the Effective Date, the only Participant is ABN AMRO BANK, N.V., which
has been approved by LRC and is executing the Participation Agreement contemporaneously with the
execution of the Operative Documents. LRC has also approved Royal Bank of Scotland as bank who may
become a Participant. In addition to ABN AMRO BANK, N.V. and Royal Bank of Scotland, others
Persons approved by LRC may from time to time agree with BNPPLC to share in the risks and rewards
of the Operative Documents by executing supplements to the Participation Agreement. LRC will not
unreasonably withhold or delay any approval required for any prospective Participant which is an
Eligible Financial Institution. However, as to any prospective Participant (other than Royal Bank
of Scotland) that is not an Eligible Financial Institution, LRC may withhold such approval in its
sole discretion. Further, it is understood that if giving such approval will increase LRC’s
liability for withholding taxes or other taxes not constituting Excluded Taxes under tax laws or
regulations then in effect, LRC may reasonably refuse to give such approval.

     “Participation Agreement” means the Participation Agreement (Fremont/Building #1) between
BNPPLC and ABN AMRO BANK, N.V. dated as of the Effective Date, pursuant to which ABN AMRO BANK,
N.V. has agreed to participate in the risks and rewards to BNPPLC of the Operative Documents, as
such Participation Agreement may be extended, supplemented, amended, restated or otherwise modified
from time to time in accordance with its terms.

     “Permitted Encumbrances” means (i) the encumbrances and other matters affecting the Property
that are set forth in Exhibit B attached to the Closing Certificate, (ii) any easement
agreement or other document affecting title to the Property executed by BNPPLC at the request of or
with the consent of LRC, (iii) any Liens securing the payment of Local Impositions which are not
delinquent or claimed to be delinquent or which are being contested in accordance with
subparagraph 5(A) of the Lease, (iv) statutory liens, if any, in the nature of
contractors’, mechanics’ or materialmen’s liens for amounts not past due or claimed to be past due
for more than thirty days.

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 23

 

 

     “Permitted Hazardous Substance Use” means the use, generation, storage and offsite disposal of
Permitted Hazardous Substances in strict accordance with applicable Environmental Laws and with due care given the nature of the Hazardous Substances involved; provided, the
scope and nature of such use, generation, storage and disposal will not:

     (1) exceed that reasonably required for the use and operation of the Property for the
purposes expressly permitted under subparagraph 2(A) of the Lease; or

     (2) include any disposal, discharge or other release of Hazardous Substances
from the Property in any manner that might allow such substances to reach surface water or
groundwater, except (i) through a lawful and properly authorized discharge (A) to a publicly
owned treatment works or (B) with rainwater or storm water runoff in accordance with
Applicable Laws and any permits obtained by LRC that govern such runoff; or (ii) any such
disposal, discharge or other release of Hazardous Substances for which no permits are
required and which are not otherwise regulated under applicable Environmental Laws.

Further, notwithstanding anything to the contrary herein contained, Permitted Hazardous Substance
Use will not include any use of the Property (including as a landfill, incinerator or other waste
disposal facility) in a manner that requires a treatment, storage or disposal permit under the
Resource Conservation and Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980,
the Solid Waste Disposal Act Amendments of 1980, and the Hazardous and Solid Waste Amendments of
1984.

     “Permitted Hazardous Substances” means Hazardous Substances used and reasonably required for
the use and operation of the Property by LRC and its permitted subtenants and assigns for the
purposes expressly permitted by subparagraph 2(A) of the Lease, in either case in
compliance with all Environmental Laws and with due care given the nature of the Hazardous
Substances involved. Without limiting the generality of the foregoing, Permitted Hazardous
Substances will include usual and customary office and janitorial products.

     “Permitted Transfer” means any of the following:

     (1) any assignment or conveyance by BNPPLC requested by LRC or required by any
Permitted Encumbrance, by the Purchase Agreement or by Applicable Laws;

     (2) the creation or conveyance by BNPPLC of rights and interests in favor of
Participants pursuant to the Participation Agreement;

     (3) any lien, security interest or assignment covering the Property or the Rents which
is granted by BNPPLC in favor of Participants or an agent appointed for them to

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 24

 

 

secure their rights under the Participation Agreement, and any subsequent assignment or conveyance made
to accomplish a foreclosure of such lien or security interest; provided, however, that in
each case such lien, security interest or assignment and such subsequent
assignment or conveyance made to accomplish a foreclosure must be expressly subject and
subordinate to the Operative Documents and all rights of LRC under the Operative Documents,
including its Purchase Option under the Purchase Agreement;

     (4) any conveyance to BNPPLC’s Parent or to any Qualified Affiliate of BNPPLC of all or
any interest in or rights with respect to the Property or any portion thereof; provided,
however, that any such conveyance must be expressly subject and subordinate to the Operative
Documents and all rights of LRC under the Operative Documents, including its Purchase Option
under the Purchase Agreement; and

     (5) any assignment or conveyance after a Designated Sale Date on which LRC does
not purchase or cause an Applicable Purchaser to purchase BNPPLC’s interest in the Property.

     “Person” means an individual, a corporation, a partnership, a limited liability company, an
unincorporated organization, an association, a joint stock company, a joint venture, a trust, an
estate, a government or agency or political subdivision thereof or other entity, whether acting in
an individual, fiduciary or other capacity.

     “Personal Property” has the meaning indicated on page 2 of the Lease.

     “Plan” means any employee benefit or other plan established or maintained, or to which
contributions have been made, by LRC or any ERISA Affiliate during the preceding six years and
which is covered by Title IV of ERISA, including any Multiemployer Plan.

     “Pledge Agreement” means the Pledge Agreement (Fremont/Building #1) dated as of the Effective
Date executed by LRC and BNPPLC, as such Pledge Agreement may be extended, supplemented, amended,
restated or otherwise modified from time to time in accordance with its terms.

     “Prime Rate” means the prime interest rate or equivalent charged by BNPPLC’s Parent in the
United States of America as announced or published by BNPPLC’s Parent from time to time, which need
not be the lowest interest rate charged by BNPPLC’s Parent. If for any reason BNPPLC’s Parent does
not announce or publish a prime rate or equivalent, the prime rate or equivalent announced or
published by either CitiBank, N.A. or any New York branch or office of Credit Commercial de France
as selected by BNPPLC will be used to compute the rate describe in the preceding sentence. The
prime rate or equivalent announced or published by such bank need not be the lowest rate charged by
it. The Prime Rate may change from time to time after the Effective Date without notice to LRC as
of the effective time of each change in rates

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 25

 

 

described in this definition.

     “Prior Owner” means SELCO Service Corporation, an Ohio corporation doing business
in California as “Ohio SELCO Service Corporation”, which is at the request and direction of
LRC conveying the Property to BNPPLC contemporaneously with the execution of the Operative
Documents.

     “Property” means the Personal Property and the Real Property, collectively.

     “Purchase Agreement” means the Agreement Regarding Purchase and Remarketing Options
(Fremont/Building #1) dated as of the Effective Date between BNPPLC and LRC, as such agreement may
be extended, supplemented, amended, restated or otherwise modified from time to time in accordance
with its terms.

     “Purchase Option” has the meaning indicated in the Purchase Agreement.

     “Qualified Affiliate” means any Person that, like BNPPLC, (i) is one hundred percent
(100%) owned, directly or indirectly, by BNPPLC’s Parent or any successor of such bank, (ii) can
make (and has in writing made) the same representations to LRC that BNPPLC has made in
subparagraphs 4(A) and 4(B) of the Closing Certificate (excluding subparagraph
4(B)(1) of the Closing Certificate), and (iii) is an entity organized under the laws of the
State of Delaware or another state within the United States of America.

     “Qualified Income Payments” means: (A) Base Rent; (B) payments of the following made to BNPPLC
to satisfy the Lease: the Arrangement Fee, Administrative Fees, Increased Cost Charges and Capital
Adequacy Charges; (C) any interest paid to BNPPLC or any Participant pursuant to subparagraph
3(G) of the Lease; and (D) payments by BNPPLC to Participants required under the Participation
Agreements because of BNPPLC’s receipt of payments described in the preceding clauses (A) through
(C).

     “Qualified Prepayments” means any payments received by BNPPLC from time to time during the
Term (1) under any property insurance policy as a result of damage to the Property, (2) as
compensation for any restriction placed upon the use or development of the Property or for the
condemnation of the Property or any portion thereof, (3) because of any judgment, decree or award
for injury or damage to the Property, or (4) under any title insurance policy or otherwise as a
result of any title defect or claimed title defect with respect to the Property. For the purposes
of determining the amount of any Qualified Prepayment and other amounts dependent upon Qualified
Prepayments (e.g., the Lease Balance and the Break Even Price):

     (i) there will be deducted all expenses and costs of every kind, type and nature
(including taxes and Attorneys’ Fees) incurred by BNPPLC with respect to the collection or
application of such payments;

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 26

 

 

     (ii) Qualified Prepayments will not include any payment to BNPPLC by any Participant or
Affiliate of BNPPLC that is made to compensate BNPPLC for the
Participant’s or Affiliate’s share of any Losses BNPPLC may incur as a result of any of
the events described in the preceding clauses (1) through (4);

     (iii) Qualified Prepayments will not include any payments received by BNPPLC that
BNPPLC has paid or is obligated to pay to LRC for the repair, restoration or replacement of
the Property or that BNPPLC is holding as Escrowed Proceeds in accordance with Paragraph 9
of the Lease or other provisions of the Operative Documents; and

     (iv) in no event will interest that accrues under the Purchase Agreement on a past due
Supplemental Payment constitute a Qualified Prepayment.

For purposes of computing the total Qualified Prepayments (and other amounts dependent upon
Qualified Prepayments, such as the Lease Balance and the Break Even Price) paid to or received by
BNPPLC as of any date, payments described in the preceding clauses (1) through (4) will be
considered as Escrowed Proceeds, not Qualified Prepayments, until they are actually applied as
Qualified Prepayments by BNPPLC as provided in Paragraph 9 of the Lease.

     “Real Property” has the meaning indicated on page 2 of the Lease.

     “Remedial Work” means any investigation, monitoring, clean-up, containment, remediation,
removal, payment of response costs, or restoration work and the preparation and implementation of
any closure or other required remedial plans that any governmental agency or political subdivision
requires or approves (or could reasonably be expected to require if it was aware of all relevant
circumstances concerning the Property), whether by judicial order or otherwise, because of the
presence of or suspected presence of Hazardous Substances in, on, under or about the Property or
because of any prior Hazardous Substance Activity.

     “Rent” means Base Rent and Additional Rent. The term “Rent” does not include any Supplemental
Payment required by the Purchase Agreement.

     “Responsible Financial Officer” means the chief financial officer, the controller, the
treasurer or the assistant treasurer of LRC.

     “Royal Bank of Scotland” means The Royal Bank of Scotland Group plc or any of its Affiliates.

     “Secured Spread” means forty basis points (40/100 of 1%).

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 27

 

 

     “Subsidiary” means, with respect to any Person, any Affiliate of which at least a majority of
the securities or other ownership interests having ordinary voting power then exercisable for the
election of directors or other persons performing similar functions are at the time owned
directly or indirectly by such Person.

     “Supplemental Payment” has the meaning indicated in the Purchase Agreement.

     “Supplemental Payment Obligation” has the meaning indicated in the Purchase Agreement.

     “Term” has the meaning indicated in subparagraph 1(A) of the Lease.

     “Transaction Expenses” means costs incurred in connection with the preparation and negotiation
of the Operative Documents and related documents and the consummation of the transactions
contemplated therein.

     “Unfunded Benefit Liabilities” means, with respect to any Plan, the amount (if any) by
which the present value of all benefit liabilities (within the meaning of Section 4001(a)(16) of
ERISA) under the Plan exceeds the market value of all Plan assets allocable to such benefit
liabilities, as determined on the most recent valuation date of the Plan and in accordance with the
provisions of ERISA for calculating the potential liability of LRC or any ERISA Affiliate under
Title IV of ERISA.

     “Unsecured Spread” means one hundred basis points (1%).

ARTICLE II — SHARED PROVISIONS

     The following provisions will apply to and govern the construction of this Agreement and the
other Operative Documents (including attachments), except to the extent (if any) a clear, contrary
intent is expressed herein or therein:

     1. Notices. Any provision of (1) any of the Operative Documents, (2) any other
document which references this provision for purposes of establishing notice requirements (in this
provision, a “Related Document”), or (3) any Applicable Law, that makes reference to any required
payment from LRC to BNPPLC or that makes reference to the sending, mailing or delivery of any
notice or demand will be subject to the following provisions (except that any notice given by
BNPPLC to satisfy any statutory requirement, including any notice of eviction or foreclosure, will
be considered sufficient if it satisfies the statutory requirements applicable to the notice,
regardless of whether the notice or payment satisfies the following provisions):

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 28

 

 

     (i) All Rent and other amounts required to be paid by LRC to BNPPLC must be paid to
BNPPLC in immediately available funds by wire transfer to:

Federal Reserve Bank of New York

ABA 026007689 BNP Paribas

/BNP/ BNP New York

/AC/ 0020-517000-070-78

/Ref/ Lam Research Corporation/Building #1 Lease

or at such other place and in such other manner as BNPPLC may designate in a notice to LRC.

     (ii) All notices, demands, approvals, consents and other communications to be
made under any Operative Document or Related Document to or by the parties thereto must, to
be effective for purposes thereof, be in writing. Notices, demands and other communications
required or permitted under any Operative Document or Related Document must be given by any
of the following means: (A) personal service (including local and overnight courier), with
proof of delivery or attempted delivery retained; (B) electronic communication, whether by
electronic mail or telecopying (if confirmed in writing sent by United States first class
mail, return receipt requested); or (C) registered or certified first class mail, return
receipt requested. Such addresses may be changed by notice to the other parties given in the
same manner as provided above. Any notice or other communication sent pursuant to clause
(A) or (B) hereof will be deemed received upon such personal service or upon dispatch by
electronic means, and, if sent pursuant to clause (C) will be deemed received five days
following deposit in the mail. Notices, demands and other communications required or
permitted by any Related Document are to be sent to the addresses set forth therein; and
notices, demands and other communications required or permitted by under any Operative
Document are to be sent to the following addresses (or in the case of communications to
Participants, at the addresses set forth in Schedule 1 to the Participation
Agreement):

Address of BNPPLC:

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Telecopy: (972) 788-9140

Email: lloyd.cox@americas.bnpparibas.com

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 29

 

 

Address of LRC:

Lam Research Corporation

4300 Cushing Parkway

Fremont, California 94538

Attention: Roch LeBlanc, Treasurer

Telecopy: (512) 572-1586

Email: Roch.Leblanc@lamrc.com

with a copy to:

Lam Research Corporation

4300 Cushing Parkway

Fremont, California 94538

Attention: George Schisler, Director of General Legal Services

Telecopy: (510) 572-2876

Email: George.Schisler@lamrc.com

However, any party to any Operative Document or Related Document may change its address above or in
the Related Document, as applicable, by written notice to the other parties to such Operative
Document or Related Document given in accordance with this provision.

     2. Severability. If any term or provision of any Operative Document or the
application thereof is to any extent held by a court of competent jurisdiction to be invalid and
unenforceable, the remainder of such document, or the application of such term or provision other
than to the extent to which it is invalid or unenforceable, will not be affected thereby.

     3. No Merger. There will be no merger of the Lease or of the leasehold
estate created by the Lease or of the mortgage and security interest granted in subparagraph
4(C)(1) of the Lease with any other interest in the Property by reason of the fact that the same
person may acquire or hold, directly or indirectly, the Lease or the leasehold estate created
thereby or such mortgage and security interest and any other interest in the Property, unless all
Persons with an interest in the Property that would be adversely affected by any such merger
specifically agree in writing that such a merger has occurred. There will be no merger of the
Purchase Agreement or of the purchase options or obligations created by the Purchase Agreement with
any other interest in the Property by reason of the fact that the same person may acquire or hold,
directly or indirectly, the rights and options granted by the Purchase Agreement and any other
interest in the Property, unless all Persons with an interest in the Property that would be
adversely affected by any such merger specifically agree in writing that such a merger has
occurred.

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 30

 

 

     4. No Implied Waiver. The failure of any party to any Operative Document to
insist at any time upon the strict performance of any covenant or agreement therein or to exercise
any option, right, power or remedy contained therein will not be construed as a waiver or a
relinquishment thereof for the future. The waiver of or redress for any breach of any Operative
Document by any party thereto will not prevent a similar subsequent act from constituting a
violation. Any express waiver of any provision of any Operative Document will affect only the term
or condition specified in such waiver and only for the time and in the manner specifically stated
therein. No waiver by any party to any Operative Document of any provision therein will be deemed
to have been made unless expressed in writing and signed by the party to be bound by the waiver. A
receipt by any party to any Operative Document of any payment thereunder (including the receipt by
BNPPLC of any Rent paid under the Lease) with knowledge of the breach by another party of any
covenant or agreement contained in that or any other Operative Document will not be deemed a waiver
of such breach.

     5. Entire and Only Agreements. The Operative Documents supersede any prior
negotiations and agreements between BNPPLC and LRC concerning the Property, and no amendment or
modification of any Operative Document will be binding or valid unless expressed in a writing
executed by all parties to such Operative Document.

     6. Binding Effect. Except to the extent, if any, expressly provided to the
contrary in any Operative Document with respect to assignments thereof, all of the covenants,
agreements, terms and conditions to be observed and performed by the parties to the Operative
Documents will be applicable to and binding upon their respective successors and, to the extent
assignment is permitted thereunder, their respective assigns.

     7. Time is of the Essence. Time is of the essence as to all obligations
created by the Operative Documents and as to all notices expressly required by the Operative
Documents.

     8. Governing Law. Each Operative Document will be governed by and
construed in accordance with the laws of the State of California without regard to conflict or
choice of laws principles that might require the application of the laws of another jurisdiction.

     9. Paragraph Headings. The paragraph and section headings contained in the
Operative Documents are for convenience only and will in no way enlarge or limit the scope or
meaning of the various and several provisions thereof.

     10. Negotiated Documents. All parties to each Operative Document and their
counsel have reviewed and revised or requested revisions to such Operative Document, and the usual
rule of construction that any ambiguities are to be resolved against the drafting party will not
apply to the construction or interpretation of any Operative Documents or any amendments thereof.

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 31

 

 

     11. Terms Not Expressly Defined in an Operative Document. As used in any
Operative Document, a capitalized term that is not defined therein or in this Agreement, but is
defined in another Operative Document, will have the meaning ascribed to it in the other Operative
Document.

     12. Other Terms and References. Words of any gender used in each
Operative Document will be held and construed to include any other gender, and words in the
singular number will be held to include the plural and vice versa, unless the context otherwise
requires. References in any Operative Document to Paragraphs, subparagraphs, Sections, subsections
or other subdivisions refer to the corresponding Paragraphs, subparagraphs, Sections, subsections
or subdivisions of that Operative Document, unless specific reference is made to another document
or instrument. References in any Operative Document to any Schedule or Exhibit refer to the
corresponding Schedule or Exhibit attached to that Operative Document, which are made a part
thereof by such reference. All capitalized terms used in each Operative Document which refer to
other documents will be deemed to refer to such other documents as they may be renewed, extended,
supplemented, amended or otherwise modified from time to time, provided such documents are not
renewed, extended or modified in breach of any provision contained in the Operative Documents or,
in the case of any other document to which BNPPLC or LRC is a party or intended beneficiary,
without its consent. All accounting terms used but not specifically defined in any Operative
Document will be construed in accordance with GAAP. The words “this [Agreement]”, “herein”,
“hereof”, “hereby”, “hereunder” and words of similar import when used in each Operative Document
refer to that Operative Document as a whole and not to any particular subdivision unless expressly
so limited. The phrases “this Paragraph”, “this subparagraph”, “this Section”, “this subsection”
and similar phrases used in any Operative Document refer only to the Paragraph, subparagraph,
Section, subsection or other subdivision described in which the phrase occurs. As used in the
Operative Documents the word “or” is not exclusive, and the words “include”, “including” and
similar terms will be construed as if followed by “without limitation to”. Relative to the
determination of the beginning and end of any time period for which any payment may be required or
accrue, the word “from” means “from and including”, and the word “to” means “to but excluding”.
Similarly, relative to any such determination, the words “begin on” means “begin on and include”,
and the words “end on” means “end on but not include”. The rule of ejusdem generis will not be
applied to limit the generality of a term in any of the Operative Documents when followed by
specific examples. When used to qualify any representation or warranty made by a Person, the
phrases “to the knowledge of [such Person]” or “to the best knowledge of [such Person]” are
intended to mean only that such Person does not have knowledge of facts or circumstances which make
the representation or warranty false or misleading in some material respect; such phrases are not
intended to suggest that the Person does indeed know the representation or warranty is true.

     13. Execution in Counterparts. To facilitate execution, each of the
Operative Documents may be executed in multiple identical counterparts. It will not be necessary
that the signature of, or on behalf of, each party, or that the signature of all persons required
to bind any

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 32

 

 

party, appear on each counterpart. All counterparts, taken together, will collectively
constitute a single instrument. But it will not be necessary in making proof of any of the
Operative Documents to produce or account for more than a single counterpart containing the
respective signatures of, or on behalf of, each of the parties to such document. Any signature page
may be detached from one counterpart and then attached to a second counterpart with identical
provisions without impairing the legal effect of the signatures on the signature page. Signing and
sending a counterpart (or a signature page detached from the counterpart) by facsimile or other
electronic means to another party will have the same legal effect as signing and delivering an
original counterpart to the other party. A copy (including a copy produced by facsimile or other
electronic means) of any signature page that has been signed by or on behalf of a party to any of
the Operative Documents will be as effective as the original signature page for the purpose of
proving such party’s agreement to be bound.

     14. Not a Partnership, Etc. Nothing in any Operative Document is intended to
create any partnership, joint venture, or other joint enterprise between BNPPLC and LRC.

     15. No Fiduciary Relationship Intended. Neither the execution of the
Operative Documents or other documents referenced in this Agreement nor the administration thereof
by BNPPLC will create any fiduciary obligations of BNPPLC or any other Interested Party to LRC.
Moreover, BNPPLC and LRC disclaim any intent to create any fiduciary or special relationship
between themselves under or by reason of the Operative Documents or the transactions described
therein or any other documents or agreements referenced therein.

[The signature pages follow.]

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Page 33

 

 

     IN WITNESS WHEREOF, this Common Definitions and Provisions Agreement (Fremont/Building #1) 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 	 
	 	 	 	 

 

Common Definitions and Provisions Agreement (Fremont/Building #1) — Signature Page

 

 

	 	 	 	 	 

[Continuation of signature pages for Common Definitions and Provisions Agreement (Fremont/Building
#1) dated as of December 21, 2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a 

Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 

 

 

	 	 	 	 	 

Annex 1

Notice of LIBOR Election

[Date]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Common Definitions and Provisions Agreement (Fremont/Building #1) dated as of December 21,
2007, between you, BNP Paribas Leasing Corporation, and the undersigned, Lam Research Corporation
(the “Common Definitions and Provisions Agreement”). This letter constitutes notice of our
election to make the first Base Rent Period beginning on or after                              , 200      subject to a
LIBOR Election of                                month(s).

     We understand that until a different election becomes effective as provided in definition of
“LIBOR Election” in the Common Definitions and Provisions Agreement, all subsequent Base Rent
Periods will also be subject to the same LIBOR Election.

NOTE: YOU ARE ENTITLED TO DISREGARD THIS NOTICE IF THE NUMBER OF MONTHS SPECIFIED ABOVE IS
NOT A PERMITTED NUMBER UNDER THE DEFINITION OF “LIBOR ELECTION” IN THE COMMON DEFINITIONS AND
PROVISIONS AGREEMENT, OR IF THE DATE SPECIFIED ABOVE CONCERNING THE COMMENCEMENT OF THE LIBOR
ELECTION IS LESS THAN FIVE BUSINESS DAYS AFTER YOUR RECEIPT OF THIS NOTICE. HOWEVER, WE ASK THAT
YOU NOTIFY US IMMEDIATELY IF FOR ANY REASON YOU BELIEVE THIS NOTICE IS DEFECTIVE.

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION, a 

Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

Annex 2

Minimum Insurance Requirements

1. Definitions. For purposes of this Annex and the Agreement to which it is attached
AISO@ means Insurance Services Office.

2. Basic Understandings Regarding Insurance. LRC represents, acknowledges and agrees that:

The insurance coverages required herein represent minimum requirements of BNPPLC and other
Interested Parties and are not to be construed to void or limit LRC’s indemnities or other
agreements in the Agreement to which this Annex is attached or in any other Operative
Document, nor do the coverages required herein represent in any manner a determination of
the insurance coverages LRC should or should not maintain for its own protection.

3. Conditions Affecting All Insurance Required Herein.

	 	A.	 	Maintenance of Insurance. All insurance coverage will be maintained in
effect with limits not less than those set forth below at all times during the term of
the Agreement to which this Annex is attached, and the policies under which such
coverage is provided will contain no endorsements that limit or exclude coverages in
any manner which is inconsistent with these requirements.
	 
	 	B.	 	Status and Rating of Insurance Company. All insurance coverage will be
written through insurance companies admitted to do business in the State of California
and rated upon each renewal no less than A-: VII in the then most current edition of A.
M. Best’s Key Rating Guide.
	 
	 	C.	 	Limits of Liability. The limits of liability may be provided by a
single policy of insurance or by a combination of primary and umbrella/excess policies,
but in no event will the total limits of liability available for any one occurrence or
accident be less than the amount required herein.
	 
	 	D.	 	Claims Against Aggregate. BNPPLC must be notified in writing by LRC at
BNPPLC’s address set forth herein immediately upon knowledge of possible damage claims
that might cause a reduction below seventy-five percent (75%) of any aggregate limit of
any policy required herein.

Annex 2 — Page 1

 

	 	E.	 	Notice of Cancellation, Nonrenewal, or Material Reduction in Coverage. LRC
will not cancel, fail to renew, or make or permit any material reduction in any of the
policies or certificates described herein without the prior written consent of BNPPLC.
	 
	 	 	 	All insurance policies under which BNPPLC is required to be an additional insured or
loss payee must include the following express provision or words of like effect:

In the event of cancellation, non-renewal or material reduction in coverage
affecting the [the additional insured/loss payee], thirty days’ prior
written notice will be given to the [the additional insured/loss payee].

	 	F.	 	Additional Insured Status. Additional insured status will be provided
in favor of BNPPLC and other Interested Parties on all insurance required herein except
workers’ compensation and employer’s liability. Additional insured status on the
general liability insurance will be provided by a form of policy endorsement that does
not limit the coverage provided thereunder to BNPPLC (or any party required by the
Operative Documents to be an additional insured) by reason of its negligent acts or
omissions (sole or otherwise) on or about the Property or by reason of other insurance
available to it. Further, such endorsement must not limit coverage in favor of any
additional insured to claims for which a primary insured has agreed to indemnify the
additional insured.
	 
	 	G.	 	Waiver of Subrogation. All insurance coverage carried by LRC with
respect to the Property, whether required herein or not, will provide a waiver of
subrogation in favor of BNPPLC and other Interested Parties in regard to all
occurrences on or about the Property.
	 
	 	H.	 	Primary Liability. All insurance coverage required herein will be
primary to all other insurance available to BNPPLC and other Interested Parties,
collectively or individually, with BNPPLC and other Interested Parties’ insurance being
excess, secondary and non-contributing. Where necessary, coverage will be endorsed to
provide such primary liability.
	 
	 	I.	 	Deductible/Retention. No insurance required herein will contain a
deductible or self-insured retention in excess of the amounts outlined in Part 7.E
below, unless BNPPLC has given its prior written approval of a higher deductible or
self-insured retention. All deductibles and/or retentions will be paid by, assumed by,
for the account of, and at LRC’s sole risk.

Annex 2 — Page 2

 

     4. Commercial General Liability Insurance.

	 	A.	 	Coverage: Commercial general liability insurance will cover liability
arising from any occurrence on or about the Land or from any operations conducted on or
about the Land, including but not limited to tort liability assumed under any of the
Operative Documents. Further, defense will be provided as an additional benefit and
not included within the limit of liability.
	 
	 	B.	 	Form: Commercial General Liability Occurrence form (ISO CG 0001 dated
12 04, or an equivalent substitute form providing the same or greater coverage, and in
any case written to provide primary coverage to BNPPLC as provided in Part 3.H. above).
	 
	 	C.	 	Amount of Insurance: Coverage will be provided with limits of not less
than:

	 	 	 	 	 	 	 
	i.

	 	Each Occurrence Limit
	 	$	1,000,000	 
	ii.

	 	General Aggregate Limit
	 	$	2,000,000	 
	iii.

	 	Product-Completed Operations Aggregate Limit
	 	$	2,000,000	 
	iv.

	 	Personal and Advertising Injury Limit
	 	$	1,000,000	 

	 	D.	 	Required Endorsements:

	 	 	 	 	 
	i.

	 	Additional Insured.
	 	status as required in 3.F., above.
	ii.

	 	[intentionally deleted]	 	 
	iii.

	 	[intentionally deleted]	 	 
	iv.

	 	Notice of Cancellation,	 	 
	 

	 	Nonrenewal or	 	 
	 

	 	Reduction in Coverage:
	 	as required in 3.E., above.
	v.

	 	[intentionally deleted]	 	 
	vi.

	 	Primary Liability:
	 	as required in 3.H., above.
	vii.

	 	Waiver of Subrogation:
	 	as required in 3.G., above.

     5. Workers’ Compensation/Employer’s Liability Insurance.

	 	A.	 	Coverage: Such insurance will cover liability arising out of LRC’s
employment of workers and anyone for whom LRC may be liable for workers’ compensation
claims.
	 
	 	B.	 	Amount of Insurance: Coverage will be provided with a limit of not
less than:

	 	 	 	 	 
	i.

	 	Workers’ Compensation:
	 	Statutory limits.
	ii.

	 	Employer’s Liability:
	 	$1,000,000 each accident and each disease.

Annex 2
— Page 3

 

6. Umbrella/Excess Liability Insurance.

     A. Coverage: Such insurance will be excess over and be no less broad than all
coverages described above and will include a drop-down provision if commercially available.

     B. Form: This policy will have the same inception and expiration dates as the
commercial general liability insurance required above or a nonconcurrency endorsement.

     C. Amount of Insurance: Coverage will be provided with a limit of not less than
$20,000,000.

7. Property Insurance.

     A Insureds: Property insurance protection will extend to BNPPLC as a Named Insured or
as the loss payee; and the policy will be modified if necessary so that the protection afforded to
BNPPLC not be reduced or impaired by acts or omissions of LRC or any other beneficiary or insured.
Such modification of the policy may be by endorsement comparable to a standard mortgagee clause;
not limited, however, by its terms to BNPPLC ‘s rights “as a mortgagee” and not conditioned upon
rights of the insurer to be subrogated to BNPPLC’s rights under the Operative Documents in the
event of a payment of insurance proceeds to BNPPLC.

     B. Covered Property: Such insurance will cover all Improvements and any equipment
made or to be made a permanent part of the Property.

     C. Form: Coverage will be in “special form” (with coverages at least comparable to
the forms of property insurance formerly called “all risk”) and will include theft and flood and
be provided on a completed-value basis with no co-insurance provision. No protective safeguard
warranty will be permitted. If required during any period of construction to prevent a loss or
impairment of coverage, coverage will be provided under a builder’s risk policy, with an
endorsement to the termination of coverage provision to permit occupancy of the covered property.

     D. Amount of Insurance: Coverage will be provided in an amount equal at all times to
the full replacement value and debris removal exclusive of land, foundation, footings, excavations
and grading.

     E. Deductibles. Deductibles will not exceed the following:

	 	 	 	 	 	 	 
	i.

	 	All Risks of Direct Damage, Per Occurrence,
except flood:
	 	$	500,000	 

Annex 2 — Page 4

 

	 	 	 	 	 	 	 
	ii.

	 	Delayed Opening Waiting Period:
	 	15 Days

	iii.

	 	Flood, Per Occurrence:
	 	$500,000 or excess of NFIP if in Flood Zone A

     F. Termination of Coverage: The termination of coverage provision will be endorsed
to permit occupancy of the covered property being constructed. This insurance will be maintained
in effect, unless otherwise provided for the Operative Documents, until the earliest of the
following dates:

	 	i.	 	the date on which all persons and organizations who are insureds under the
policy agree that it is terminated;
	 
	 	ii.	 	any termination or expiration of the Lease upon the Designated Sale Date, which
is the date upon which final payment is expected under the Operative Documents; or
	 
	 	iii.	 	the date on which the insurable interests in the Covered Property of all
insureds other than LRC have ceased;

     G. Waiver of Subrogation: The waiver of subrogation provision will be endorsed as
follows:

Should a covered loss be subrogated, either in whole or in part, your rights to any recovery
will come first, and we will be entitled to a recovery only after you have been fully
compensated for the loss.

     H. Required Endorsements and Minimum Sublimits. All property insurance policies must
include endorsements and minimum sublimits as necessary to provide coverages not significantly less
than the coverages maintained by LRC under policies covering other significant properties owned or
occupied by LRC. (Note: For purposes of comparing minimum sublimits required by the preceding
sentence, dollar amounts will be considered as percentages of the estimated value of the
improvements and other property insured. Thus, for example, LRC may, without violating this
requirement maintain a minimum sublimit applicable to the Improvements which is one-third the
amount of the same sublimit applicable to another building owned by LRC if the other building has
an estimated value that is three times higher than the estimated value of the Improvements.)

8. Evidence of Insurance.

	 	A.	 	Provision of Evidence. Evidence of the insurance coverage required to be
maintained by LRC, represented by certificates of insurance, evidence of insurance, and
endorsements issued by the insurance company or its legal agent,

Annex 2 — Page 5

 

	 	 	 	must be furnished to BNPPLC prior to the Effective Date. New certificates of insurance, evidence of
insurance, and endorsements will be provided to BNPPLC prior to or concurrent with the
termination date of the current certificates of insurance, evidence of insurance, and
endorsements.
	 
	 	B.	 	Form:

	 	i.	 	All property insurance required herein will be evidenced by
ACORD form 28, AEvidence of Property Insurance@, in each case
completed and interlineated in a manner satisfactory to BNPPLC to show
compliance with the requirements of this Annex. If requested by BNPPLC,
copies of endorsements must be attached to such form.
	 
	 	ii.	 	All liability insurance required herein will be evidenced by
ACORD form 25, ACertificate of Insurance@, in each case completed
and interlineated in a manner satisfactory to BNPPLC to show compliance with
the requirements of this Annex. If requested by BNPPLC, copies of
endorsements must be attached to such form.

	 	C.	 	Specifications: Such certificates of insurance, evidence of insurance,
and endorsements will specify:

	 	i.	 	BNPPLC as a certificate holder with correct mailing address as
provided by BNPPLC.
	 
	 	ii.	 	Insured’s name, which must match that on the Agreement to which
this Annex is attached.
	 
	 	iii.	 	Insurance companies affording each coverage, policy number of
each coverage, policy dates of each coverage, all coverages and limits
described herein, and signature of authorized representative of insurance
company.
	 
	 	iv.	 	Producer of the certificate with correct address and phone
number listed.
	 
	 	v.	 	Additional insured status required by this Annex.
	 
	 	vi.	 	Aggregate limits (per project) required by this Annex.
	 
	 	vii.	 	Amount of any deductibles and/or retentions.
	 
	 	viii.	 	Cancellation, nonrenewal and reduction in coverage
notification as required by this Annex. Additionally, the words
Aendeavor to@ and Abut failure to mail such notice will
impose no obligation or liability of any kind upon Company, it agents or
representatives@ will be deleted from the cancellation provision of the
ACORD 25 certificate of insurance form;
and changes to the same effect will be made in any other certificate or
evidence of insurance provided to satisfy the requirements of this Annex.
	 
	 	ix.	 	Primary status required by this Annex.

	 
	 	x.	 	Waivers of subrogation required by this Annex.

Annex 2
— Page 6

 

	 	D.	 	Failure to Obtain: Failure of BNPPLC to demand such certificate or other
evidence of full compliance with these insurance requirements or failure of BNPPLC to
identify a deficiency in the form of evidence that is provided will not be construed as
a waiver of LRC’s obligation to maintain such insurance.
	 
	 	E.	 	Certified Copies: LRC must provide to BNPPLC copies, certified as
complete and correct by an authorized agent of the applicable insurer, of all insurance
policies required herein within ten (10) days after receipt of a request for such
copies from BNPPLC subject to availability from the insurance company.

Annex 2 — Page 7exv10w118

 

Exhibit 10.118

PLEDGE AGREEMENT

(FREMONT/BUILDING #1)

BETWEEN

LAM RESEARCH CORPORATION

(“LRC”)

AND

BNP PARIBAS LEASING CORPORATION

(“BNPPLC”)

December 21, 2007

 

 

TABLE OF CONTENTS

(Continued)

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 
	1	 	Definitions and Interpretation	 	 	1	 
	 

	 	(A)
	 	Definitions
	 	 	1	 
	 

	 	 	 	Account Office
	 	 	2	 
	 

	 	 	 	Cash Collateral
	 	 	2	 
	 

	 	 	 	Clearing System
	 	 	2	 
	 

	 	 	 	Collateral
	 	 	2	 
	 

	 	 	 	Collateral Imbalance
	 	 	2	 
	 

	 	 	 	Default
	 	 	2	 
	 

	 	 	 	Deposit Account
	 	 	2	 
	 

	 	 	 	Deposit Taker
	 	 	2	 
	 

	 	 	 	Deposit Taker’s Agreement
	 	 	3	 
	 

	 	 	 	Deposit Taker Prerequisites
	 	 	3	 
	 

	 	 	 	Disqualified Deposit Taker
	 	 	3	 
	 

	 	 	 	Eligible Deposit Taker
	 	 	4	 
	 

	 	 	 	Event of Default
	 	 	5	 
	 

	 	 	 	Lien
	 	 	6	 
	 

	 	 	 	Minimum Collateral Value
	 	 	6	 
	 

	 	 	 	Other Liable Party
	 	 	6	 
	 

	 	 	 	Percentage
	 	 	6	 
	 

	 	 	 	Qualified Pledge
	 	 	7	 
	 

	 	 	 	Secured Obligations
	 	 	7	 
	 

	 	 	 	Transition Account
	 	 	7	 
	 

	 	 	 	UCC
	 	 	7	 
	 

	 	 	 	Value
	 	 	7	 
	 

	 	(B)
	 	Other Definitions
	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	2	 	Pledge and Grant of Security Interest	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	3	 	Provisions Concerning the Deposit Takers	 	 	8	 
	 

	 	(A)
	 	Deposit Taker Agreements
	 	 	8	 
	 

	 	(B)
	 	Qualification of Deposit Takers
Generally
	 	 	9	 
	 

	 	(C)
	 	Substitutions for Disqualified
Deposit Takers
	 	 	9	 
	 

	 	(D)
	 	Other Voluntary Substitutions of
Deposit Takers
	 	 	9	 
	 

	 	(E)
	 	Delivery of Deposit Taker’s
Agreements by LRC and BNPPLC
	 	 	9	 
	 

	 	(F)
	 	Replacement of Participants
Proposed by LRC
	 	 	10	 
	 

	 	(G)
	 	Constructive Possession of
Collateral
	 	 	10	 

(ii)

 

TABLE OF CONTENTS

(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 

	 	(H)
	 	Attempted Setoff by Deposit
Taker
	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	4	 	Delivery and Maintenance of Collateral	 	 	11	 
	 

	 	(A)
	 	Delivery of Cash Collateral by
LRC
	 	 	11	 
	 

	 	(B)
	 	Transition Account
	 	 	11	 
	 

	 	(C)
	 	Allocation of Cash Collateral
Among Deposit Takers
	 	 	12	 
	 

	 	(D)
	 	Status of the Deposit Accounts
Under the Reserve Requirement Regulations
	 	 	12	 
	 

	 	(E)
	 	Acknowledgment by LRC that
Requirements of this Agreement are
	 	 	13	 
	 

	 	 	 	Commercially Reasonable	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	5	 	Withdrawal of Collateral	 	 	13	 
	 

	 	(A)
	 	Withdrawal of Cash Collateral
Prior to the Designated Sale Date
	 	 	13	 
	 

	 	(B)
	 	Withdrawal and Application of
Cash Collateral to Reduce or Satisfy the Secured Obligations to BNPPLC
	 	 	14	 
	 

	 	(C)
	 	Withdrawal and Return of Cash
Collateral Following Satisfaction of all Secured Obligations
	 	 	14	 
	 

	 	(D)
	 	
No Other Right to Require or Make Withdrawals
	 	 	14	 
	 

	 	(E)
	 	BNPPLC’s Covenant Not to
Make Unauthorized Withdrawals
	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	6	 	Representations and Covenants of LRC	 	 	14	 
	 

	 	(A)
	 	Representations of LRC
	 	 	15	 
	 

	 	(B)
	 	Covenants of LRC
	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	7	 	Authorized Action by BNPPLC	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	8	 	Default and Remedies	 	 	17	 
	 

	 	(A)
	 	Remedies
	 	 	17	 
	 

	 	(B)
	 	Recovery Not Limited
	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	9	 	Miscellaneous	 	 	19	 
	 

	 	(A)
	 	Payments by LRC to BNPPLC
	 	 	19	 
	 

	 	(B)
	 	Payments by BNPPLC to LRC
	 	 	20	 
	 

	 	(C)
	 	Cumulative Rights, etc.
	 	 	20	 
	 

	 	(D)
	 	Survival of Agreements
	 	 	20	 
	 

	 	(E)
	 	Other Liable Party
	 	 	20	 
	 

	 	(F)
	 	Termination
	 	 	21	 

(iii)

 

PLEDGE AGREEMENT

(FREMONT/BUILDING #1)

     This PLEDGE AGREEMENT (FREMONT/BUILDING #1) (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

     BNPPLC, as a lessor and prospective seller, and LRC, as a lessee and prospective buyer, have
entered into a Lease Agreement (Fremont/Building #1) and an Agreement Regarding Purchase and
Remarketing Options (Fremont/Building #1) (as from time to time supplemented, amended or restated,
the “Lease” and “Purchase Agreement,” respectively), all dated as of the date hereof. BNPPLC and
LRC have also entered into a Common Definitions and Provisions Agreement (Fremont/Building #1)
dated as of the date hereof (as from time to time supplemented, amended or restated, the “Common
Definitions and Provisions Agreement”), in which defined terms are set forth for incorporation by
reference into the Lease, the Purchase Agreement and other documents. As used in this Agreement,
capitalized terms defined in the Common Definitions and Provisions Agreement and not otherwise
defined in this Agreement are intended to have the respective meanings assigned to them in the
Common Definitions and Provisions Agreement.

     Pursuant to the Lease, BNPPLC is leasing to LRC property described in the Lease, and pursuant
to the Purchase Agreement, LRC may purchase or arrange for a purchase of BNPPLC’s interest in such
property.

     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.

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

AGREEMENTS

	1	 	Definitions and Interpretation.

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

 

 

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

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

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

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

     “Collateral” has the meaning indicated in Paragraph 2.

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

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

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

     “Deposit Taker” means, for BNPPLC or any Participant, an Eligible Deposit Taker
designated by it to act as the Deposit Taker for it under this Agreement. BNPPLC has
already designated BNP Paribas as the Deposit Taker for BNPPLC hereunder. Any

 

 

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

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

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

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

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

     (b) Such Person must have executed and returned to BNPPLC a Deposit
Taker’s Agreement with respect to each such Deposit Account and must have complied
with its Deposit Taker’s Agreements, and the representations set forth therein with
respect to such Person must continue to be true and correct (except that such Person
will not become a Disqualified Deposit Taker because of its failure to comply with
its Deposit Taker’s Agreement, or because any such representation does not continue
to be true and correct, if such failure is cured and
all such representations are made true and correct in all material respects
before the earlier of (i) thirty days after the Deposit Taker is notified thereof,
and (ii) any

 

Pledge Agreement (Livermore/Parcel #1) — Page 3

 

 

date upon which BNPPLC’s security interest in any Collateral maintained
or held by such Deposit Taker is not a Qualified Pledge by reason of such failure to
comply or such representation not being true and correct).

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

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

     “Eligible Deposit Taker” means:

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

     (2) ABN Amro Bank, N.V. or any successor of ABN Amro Bank, N.V., acting through any
branch, office or agency in New York, Illinois or California that can lawfully maintain a
Deposit Account as a Deposit Taker hereunder;

     (3) Royal Bank of Scotland or any successor of Royal Bank of Scotland, acting through
any branch, office or agency in New York, Illinois or California that can lawfully maintain
a Deposit Account as a Deposit Taker hereunder;

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

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

 

Pledge Agreement (Livermore/Parcel #1) — Page 4

 

 

shall be entitled to select and use a comparable ratings systems as a substitute for the S&P
Rating or the Moody Rating, as the case may be, for purposes of determining the status of
any bank as an Eligible Deposit Taker.)

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

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

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

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

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

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

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

Notwithstanding the foregoing, if ever the aggregate Value of Cash Collateral held by
BNPPLC or the Deposit Takers exceeds the Minimum Collateral Value then in effect, a
failure of the pledge or security interest contemplated herein in such excess Cash
Collateral to be a valid, perfected, first priority pledge or security interest shall not

 

Pledge Agreement (Livermore/Parcel #1) — Page 5

 

 

constitute an Event of Default under this Agreement. Accordingly, to provide a cure as
required to avoid an Event of Default under clauses (c) or (e) of this definition, LRC may
deliver additional Cash Collateral to BNPPLC — the pledge of which or security interest in
which created by this Agreement is a Qualified Pledge — sufficient in amount to cause the
aggregate Value of the Cash Collateral then held by BNPPLC or the Deposit Takers subject to
a Qualified Pledge hereunder to equal or exceed the Minimum Collateral Value.

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

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

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

     “Percentage” means with respect to each Participant and the Deposit Taker for such
Participant, such Participant’s “Percentage” under and as defined in the Participation

 

Pledge Agreement (Livermore/Parcel #1) — Page 6

 

 

Agreement for purposes of computing such Participant’s right thereunder to receive payments
of (or amounts equal to a percentage of) any sales proceeds or Supplemental Payment received
by BNPPLC under the Purchase Agreement. Percentages may be adjusted from time to time as
provided in the Participation Agreement or as provided in supplements thereto executed as
provided in the Participation Agreement.

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

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

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

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

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

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

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

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

     (B) Other Definitions. Reference is hereby made to the Purchase Agreement for
a statement of the terms thereof. All capitalized terms used in this Agreement, which are defined
in the Purchase Agreement and not otherwise defined herein or in the Common Definitions and

 

Pledge Agreement (Livermore/Parcel #1) — Page 7

 

 

Provisions Agreement, shall have the same meanings herein as they would have in the Purchase
Agreement. All terms used in this Agreement which are defined in the UCC and not otherwise defined
herein shall have the same meanings herein as set forth therein, except where the context otherwise
requires.

	2	 	Pledge and Grant of Security Interest.

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

     (a) all Cash Collateral, the Transition Account and all Deposit Accounts; and all cash
and other assets from time to time held in or on deposit in the Transition Account or any
Deposit Account and all general intangibles arising from or relating to the Transition
Account or any Deposit Account or such cash or other assets; and all documents, instruments
and agreements evidencing the same; and all extensions, renewals, modifications and
replacements of the foregoing; and any interest or other amounts payable in connection
therewith; and

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

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

	3	 	Provisions Concerning the Deposit Takers.

     (A) Deposit Taker Agreements. On or prior to the Effective Date, BNP Paribas, as the
designated Deposit Taker for BNPPLC, and each Eligible Deposit Taker designated by any Participant
to act as the Deposit Taker for it under this Agreement, has satisfied the Deposit Taker
Prerequisites. Without limiting the foregoing, BNPPLC Paribas and each Participant’s designated
Deposit Taker has received a completed, executed Deposit Taker’s Agreement from

 

Pledge Agreement (Livermore/Parcel #1) — Page 8

 

 

LRC and BNPPLC and
has executed and returned the same to LRC and BNPPLC.
LRC acknowledges and agrees that (i) BNPPLC and any Participant may designate BNP Paribas or
any other Eligible Deposit Taker as its Deposit Taker, (ii) any Participant may designate itself or
any of its Affiliates as its Deposit Taker so long as the Participant or its Affiliate, as the case
may be, is an Eligible Deposit Taker, and (iii) as provided in subparagraph 3(E), BNPPLC and LRC
must promptly upon request execute and deliver any properly completed Deposit Taker’s Agreement
requested by BNPPLC or any Participant to facilitate the designations of Deposit Takers
contemplated by this Agreement. If any Participant has not already designated an Eligible Deposit
Taker to act as Deposit Taker for it under this Agreement at any time when such a designation is
required, then BNPPLC may make the designation for such Participant; subject, however, to the
Participant’s rights under subparagraphs 3(D) and 3(E).

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

     (C) Substitutions for Disqualified Deposit Takers.

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

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

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

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

 

Pledge Agreement (Livermore/Parcel #1) — Page 9

 

 

promptly execute
and deliver any properly completed Deposit Taker’s Agreement requested by BNPPLC or the applicable
Participant.

     (F) Replacement of Participants Proposed by LRC. So long as no Event of Default has
occurred and is continuing, BNPPLC shall not unreasonably withhold its approval for a substitution
under the Participation Agreement of a new Participant proposed by LRC for any Participant, the
Deposit Taker for whom would no longer meet the requirements listed in clause (3) of the definition
of Eligible Deposit Taker above; provided, however, that (1) the proposed substitution can be
accomplished without a release or breach by BNPPLC of its rights and obligations under the
Participation Agreement; (2) the new Participant will agree (by executing a Supplement and a
supplement to the Participation Agreement as contemplated therein and by other agreements as may be
reasonably required by BNPPLC and LRC) to become a party to the Participation Agreement and to this
Agreement, to designate an Eligible Deposit Taker as the Deposit Taker for it under this Agreement
and to accept a Percentage under the Participation Agreement equal to the Percentage of the
Participant to be replaced; (3) the new Participant (or LRC) will provide the funds to pay the
termination fee required by subparagraph 6(D) of the Participation Agreement to accomplish
the substitution; (4) LRC or the new Participant agrees in writing to indemnify and defend BNPPLC
for any and all Losses incurred by BNPPLC in connection with or because of the substitution,
including the cost of preparing supplements to the Participation Agreement and this Agreement and
including any cost of defending and paying any claim asserted by the Participant to be replaced
because of the substitution; and (5) the new Participant shall be a reputable financial institution
having a net worth of no less than seven and one half percent (7.5%) of total assets and total
assets of no less than $10,000,000,000 (all according to then recent audited financial statements).
BNPPLC shall attempt in good faith to assist (and cause BNPPLC’s Parent to attempt in good faith
to assist) LRC in identifying a new Participant that LRC may propose to substitute for an existing
Participant pursuant to this subparagraph, as LRC may reasonably request from time to time.
However, in no event shall BNPPLC itself, or any of its Affiliates, be required to take the
Percentage of any Participant to be replaced.

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

 

Pledge Agreement (Livermore/Parcel #1) — Page 10

 

 

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

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

	4	 	Delivery and Maintenance of Collateral.

     (A) Delivery of Cash Collateral by LRC. On the Effective Date and each Business Day
thereafter, including each Base Rent Date, LRC must deliver to BNPPLC for deposit directly into the
Transition Account, or (if directed to do so by BNPPLC) deliver to Deposit Takers for deposit
directly into the Deposit Accounts, in either case subject to the pledge and security interest
created hereby, funds as Cash Collateral then needed (if any) to cause the Value of the Cash
Collateral to be no
less than the Minimum Collateral Value. In the case of deliveries required on any Base Rent
Date, each delivery of funds required by the preceding sentence must be received by BNPPLC no later
than 12:00 noon (California time) on the date it is required; if received after 12:00 noon it will
be considered for purposes of the Lease as received on the next following Business Day. At least
five days prior to any date upon which it is expected that LRC will be required to deliver
additional funds pursuant to this subparagraph, LRC shall notify BNPPLC and the Participants
thereof and of the amount LRC expects to deliver to BNPPLC or Deposit Takers as Cash Collateral;
provided, however, such notice will not be required as a condition to the delivery of additional
Cash Collateral to prevent or cure an Event of Default as provided in the last sentence of the
definition of Event of Default above.

 

Pledge Agreement (Livermore/Parcel #1) — Page 11

 

 

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

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

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

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

Further, if for any reason a Collateral Imbalance is determined by BNPPLC to exist, BNPPLC shall,
as required to rectify or mitigate the Collateral Imbalance, promptly reallocate Collateral among
Deposit Takers by withdrawing Cash Collateral from some Deposit Accounts and redepositing it in
other Deposit Accounts or by transferring Cash Collateral directly from some Deposit Accounts to
others; except as otherwise provided in subparagraph 3(B). (If either party to this Agreement
believes that the Value of the Deposit Accounts held by a particular Deposit Taker causes a
Collateral Imbalance to exist, that party will promptly notify the other party to this Agreement
and the Participants.) Subject to the foregoing, and provided that BNPPLC does not thereby create
or exacerbate any Collateral Imbalance which is not excused by subparagraph
3(B), BNPPLC may withdraw and redeposit Cash Collateral or cause it to be transferred directly from
one Deposit Account to another in order to reallocate the same among Deposit Takers from time to
time as BNPPLC deems appropriate. For purposes of illustration only, examples of the allocations
required by this subparagraph are set forth in Exhibit B.

     (D) Status of the Deposit Accounts Under the Reserve Requirement Regulations.
Each Deposit Taker shall be permitted to structure the Deposit Account maintained by it as a
nonpersonal time deposit under 12 C.F.R., Part II, Chapter 204 (commonly known as “Regulation D”).
Accordingly, any Deposit Taker may require at least seven days advance notice of any withdrawal or
transfer of funds from the Deposit Account maintained by it and

 

Pledge Agreement (Livermore/Parcel #1) — Page 12

 

 

may limit the number of withdrawals
or transfers from such Deposit Account to no more than six in any calendar month, notwithstanding
anything to the contrary herein or in any deposit agreement that LRC and such Deposit Taker may
enter into with respect to such Deposit Account. As necessary to satisfy the seven days notice
requirement with respect to withdrawals by BNPPLC when required by LRC pursuant to the provisions
below, BNPPLC shall notify the affected Deposit Takers promptly after receipt of any notice from
LRC described in subparagraph 5(A)(4) or in subparagraph 5(B).

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

	5	 	Withdrawal of Collateral.

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

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

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

     (3) Either:

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

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

     (4) LRC must give BNPPLC notice of the required withdrawal at least ten days
prior to the date upon which the withdrawal is to occur. If such notice applies only

 

Pledge Agreement (Livermore/Parcel #1) — Page 13

 

 

to the
periodic withdrawal of interest accruing on the Deposit Accounts, it may be in the form of
Exhibit C. Otherwise, such notice must be in the form of Exhibit D.

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

     (B) Withdrawal and Application of Cash Collateral to Reduce or Satisfy the Secured
Obligations to BNPPLC. To satisfy the Secured Obligations, and provided no Event of Default
(under and as defined in this Agreement or as defined in the Common Definitions and Provisions
Agreement) has occurred and is continuing, LRC may require BNPPLC to withdraw and retain any Cash
Collateral held by any Deposit Taker on the Designated Sale Date (which retention by BNPPLC shall
be free and clear of all liens and security interests hereunder) as a payment on behalf of LRC of
any amounts then due from LRC under the Purchase Agreement; provided, that by a notice in the form
of Exhibit E, LRC must have notified BNPPLC of the required withdrawal and payment to
BNPPLC at least ten days prior to the date upon which it is to occur.

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

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

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

 

Pledge Agreement (Livermore/Parcel #1) — Page 14

 

 

	6	 	Representations and Covenants of LRC.

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

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

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

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

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

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

     (1) LRC, at LRC’s expense, shall promptly procure, execute and deliver to BNPPLC
all documents, instruments and agreements and perform all acts which are necessary or
desirable, or which BNPPLC may request, to establish, maintain, preserve, protect and
perfect the Collateral, the pledge thereof to BNPPLC or the security interest granted to
BNPPLC therein and the first priority of such pledge or security interest or to

 

Pledge Agreement (Livermore/Parcel #1) — Page 15

 

 

enable
BNPPLC to exercise and enforce its rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the preceding sentence, LRC shall (A)
procure, execute and deliver to BNPPLC all stock powers, endorsements, assignments,
financing statements and other instruments of transfer requested by BNPPLC, (B) deliver to
BNPPLC promptly upon receipt all originals of Collateral consisting of instruments,
documents and chattel paper, and (C) cause the security interest of BNPPLC in any Collateral
consisting of securities to be recorded or registered in the books of any financial
intermediary or Clearing System requested by BNPPLC.

     (2) When applicable law provides more than one method of perfection of BNPPLC’s
security interest in the Collateral, BNPPLC may choose the method(s) to be used. LRC hereby
authorizes BNPPLC to file any financing statements or financing statement amendment covering
all or any portion of the Collateral or relating to the security interest created herein.

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

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

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

     (6) Subject to the express rights of LRC under Paragraph 5, LRC shall not surrender or
lose possession of (other than to BNPPLC or a Deposit Taker pursuant hereto), sell,
encumber, lease, rent, option, or otherwise dispose of or transfer any Collateral or right
or interest therein, and LRC shall keep the Collateral free of all Liens (other than Liens
granted under this Agreement). The rights granted to BNPPLC pursuant to this Agreement are
in addition to the rights granted to BNPPLC in any custody, investment management, trust,
account control agreement or similar agreement. In case of conflict between the provisions
of this Agreement and of any other such agreement, the provisions of this Agreement will
prevail.

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

 

Pledge Agreement (Livermore/Parcel #1) — Page 16

 

 

     (8) Without limiting the foregoing, within five days after LRC becomes aware of
any failure of the pledge or security interest contemplated herein in the Transition Account
or any Deposit Account or Cash Collateral to be a valid, perfected, first priority pledge or
security interest (regardless of the characterization thereof as deposit accounts,
securities accounts, instruments or general intangibles under the UCC), LRC shall notify
BNPPLC of such failure.

	7	 	Authorized Action by BNPPLC.

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

	8	 	Default and Remedies.

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

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

     (2) BNPPLC may notify any Deposit Taker to pay all or any portion of Cash
Collateral held by such Deposit Taker directly to BNPPLC up to an amount equal to the then
outstanding Secured Obligations. BNPPLC shall apply any Cash Collateral or proceeds of
other Collateral received by BNPPLC after the occurrence of an Event of

 

Pledge Agreement (Livermore/Parcel #1) — Page 17

 

 

Default to the
Secured Obligations in any order BNPPLC believes to be in its best interest. If any such
Cash Collateral or proceeds received by BNPPLC remains after all Secured Obligations have
been paid in full, BNPPLC will deliver or direct the Deposit Takers to deliver the same to
LRC or other Persons entitled thereto.

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

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

     (i) hold any monies or proceeds representing the Collateral in a cash collateral
account in U.S. dollars or other currency that BNPPLC reasonably selects and invest such
monies or proceeds on behalf of LRC;

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

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

 

Pledge Agreement (Livermore/Parcel #1) — Page 18

 

 

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

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

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

     (B) Recovery Not Limited. To the fullest extent permitted by applicable law, LRC
waives any right to require that BNPPLC proceed against any other Person, exhaust any Collateral or
other security for the Secured Obligations, or to have any Other Liable Party joined with LRC in
any suit arising out of the Secured Obligations or this Agreement, or pursue any other remedy in
their power. LRC waives any and all notice of acceptance of this Agreement. LRC further waives
notice of the creation, modification, rearrangement, renewal or extension for any period of any of
the Secured Obligations of any Other Liable Party from time to time and any defense arising by
reason of any disability or other defense of any Other Liable Party or by reason of the cessation
from any cause
whatsoever of the liability of any Other Liable Party. Until all of the Secured Obligations
shall have been paid in full, LRC shall have no right to subrogation, reimbursement, contribution
or indemnity against any Other Liable Party and LRC waives the right to enforce any remedy which
BNPPLC has or may hereafter have against any Other Liable Party, and waives any benefit of and any
right to participate in any other security whatsoever now or hereafter held by or on behalf of
BNPPLC. LRC authorizes BNPPLC, without notice or demand and without any reservation of rights
against LRC and without affecting LRC’s liability hereunder or on the Secured Obligations, from
time to time to (a) take or hold any other property of any type from any other Person as security
for the Secured Obligations, and exchange, enforce, waive and release any or all of such other
property, (b) after and during the continuance of any Event of Default, apply or require the
application of the Collateral (in accordance with this Agreement) or such other property in any
order they may determine and to direct the order or manner of sale thereof as they may determine,
(c) renew, extend for any period, accelerate, modify, compromise, settle or release any of the
obligations of any Other Liable Party with respect to any or all of the Secured Obligations or
other security for the Secured Obligations, and (d) release or substitute any Other Liable Party.

	9	 	Miscellaneous.

     (A) Payments by LRC to BNPPLC. All payments and deliveries of funds required
to be made by LRC to BNPPLC hereunder shall be paid or delivered in immediately available funds by
wire transfer to the Transition Account in accordance with wiring instructions which

 

Pledge Agreement (Livermore/Parcel #1) — Page 19

 

 

will be
provided by BNPPLC to LRC. Time is of the essence as to all payments and deliveries of funds by
LRC to BNPPLC under this Agreement.

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

	 	 	 	 	 
	 	 	Lam Research Corporation
	 	 	USD Concentration Account B LaSalle Bank NA
	 
	 	 	 	 
	 
	 	Bank Name:	 	LaSalle National Bank
	 
	 	Bank Address:	 	135 S. LaSalle Street
	 
	 	 	 	Chicago, Il 60603
	 
	 	ABA # (Domestic):	 	071000505
	 
	 	SWIFT ID (Int’l):	 	LASLUS44
	 
	 	Account Name:	 	Lam Research Corporation
	 
	 	Account Number:	 	58000-68321
	 
	 	Bank Contact:	 	Juliana Silvestri
	 
	 	 	 	312-904-0445
	 
	 	 	 	juliana.silvestri@abnamro.com
	 
	 	Reference:	 	BNPPLC Lease (Return of Collateral — Livermore/Parcel 6)

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

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

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

     (E) Other Liable Party. Neither this Agreement nor the exercise by BNPPLC or
the

 

Pledge Agreement (Livermore/Parcel #1) — Page 20

 

 

failure of BNPPLC to exercise any right, power or remedy conferred herein or by law shall be
construed as relieving LRC or any Other Liable Party from liability on the Secured Obligations or
any deficiency thereon. This Agreement shall continue irrespective of the fact that the liability
of LRC or any Other Liable Party may have ceased or irrespective of the validity or enforceability
of any other agreement evidencing or securing the Secured Obligations to which LRC or any Other
Liable Party may be a party, and notwithstanding the reorganization, death, incapacity or
bankruptcy of LRC or any Other Liable Party, or any other event or proceeding affecting LRC or any
Other Liable Party.

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

[The signature pages follow.]

 

Pledge Agreement (Livermore/Parcel #1) — Page 21

 

 

     IN WITNESS WHEREOF, this Pledge Agreement (Fremont/Building #1) 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 	 
	 	 	 	 

 

Pledge Agreement (Fremont/Building #1) — Signature Page

 

 

	 	 	 	 	 

[Continuation of signature pages for Pledge Agreement (Fremont/Building #1) dated as of December
21, 2007]

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION,
a
 Delaware corporation

 	 
	 	By:  	/s/ Roch LeBlanc 	 
	 	 	Roch LeBlanc, Treasurer 	 
	 	 	 	 

 

Pledge Agreement (Fremont/Building #1) — Signature Page

 

 

	 	 	 	 	 

Exhibit A

TO PLEDGE AGREEMENT

AGREEMENT RE: BLOCKED ACCOUNT

(FREMONT/BUILDING #1)

     This Agreement (the “Agreement”), among                                          (the “Deposit Taker”), LAM RESEARCH
CORPORATION (“LRC”) and BNP PARIBAS LEASING CORPORATION (“BNPPLC”) pursuant to the Pledge Agreement
(Fremont/Building #1) dated as of December 21, 2007, as amended from time to time (the “Pledge
Agreement”), is dated as of                     , 20___, and shall serve as instructions regarding the
following deposit account established by LRC at the Deposit Taker (the “Deposit Account”):

	 	 	 	 	 
	Account	 	Account	 	Account
	Type	 	Office	 	Number
	 	 	 	 	 
	Time Deposit
	 	_________
	 	_________

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

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

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

 

 

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

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

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

	 	•	 	the Collateral Percentage for the Base Rent Period that includes or
coincides with such Interest Period, times
	 
	 	•	 	LIBID for such Interest Period, times
	 
	 	•	 	the number of days in such Interest Period, divided by
	 
	 	•	 	three hundred sixty.

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

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

     5. Exculpation; Indemnity. Deposit Taker undertakes to perform only such
duties as
are expressly set forth herein. Notwithstanding any other provisions of this Agreement, the
parties hereby agree that Deposit Taker shall not be liable for any action taken by it in

 

Exhibit A to Pledge Agreement (Fremont/Building #1) — Page 2

 

 

accordance with this Agreement, including, without limitation, any action so taken at BNPPLC’s
request, except direct damages attributable to the Deposit Taker’s gross negligence or willful
misconduct. Except for the direct damages specifically described in the preceding sentence, in no
event shall Deposit Taker be liable for any (i) losses or delays resulting from acts of God, war,
computer malfunction, interruption of communication facilities, labor difficulties or other causes
beyond Deposit Taker’s reasonable control, or (ii) for any other damages, including, without
limitation, indirect, special, punitive or consequential damages. LRC and BNPPLC jointly and
severally agree to indemnify and hold Deposit Taker harmless from and against all costs, damages,
claims, judgments, reasonable attorneys’ fees, expenses, obligations and liabilities of every kind
and nature (collectively, “Losses”) which Deposit Taker may incur, sustain or be required to pay
(other than those attributable to Deposit Taker’s gross negligence or willful misconduct) in
connection with or arising out of this Agreement or the Deposit Account (including without
limitation, the amount of any overdraft created in the Deposit Account resulting from a Chargeback
or from debiting the Deposit Account for Charges (defined below) owed to the Deposit Taker), and to
pay to Deposit Taker on demand the amount of all such Losses. Nothing in this Section, and no
indemnification of Deposit Taker hereunder, shall affect in any way the indemnification obligations
of LRC to BNPPLC under the Pledge Agreement or other Operative Documents. The provisions of this
Section shall survive termination of this Agreement.

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

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

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

 

Exhibit A to Pledge Agreement (Fremont/Building #1) — Page 3

 

 

if
any, caused by a withdrawal of funds from the Deposit Account and payment of the same to BNPPLC,
and (B) any such liability of BNPPLC to Deposit Taker shall in no way release LRC from liability to
BNPPLC and shall not impair BNPPLC’s rights and remedies against LRC, by way of subrogation or
otherwise, to collect all such Chargebacks.

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

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

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

     10. Miscellaneous. This Agreement is binding upon the parties hereto and their
respective successors and assigns (including any trustee of LRC appointed or elected in any action
under the Bankruptcy Code) and shall inure to their benefit. Neither LRC nor BNPPLC may assign
their respective rights hereunder unless the prior written consent of the Deposit Taker is
obtained. Neither this Agreement nor any provision hereof may be changed, amended, modified or
waived, except by an instrument in writing signed by the parties hereto. Any
provision of this Agreement that may prove unenforceable under any law or regulation shall not
affect the validity of any other provision hereof. This Agreement shall be governed by, and
interpreted in accordance with, the laws of the state in which the account office identified above

 

Exhibit A to Pledge Agreement (Fremont/Building #1) — Page 4

 

 

is located without regard to conflict of laws provisions. Any action in connection with this
Agreement shall be brought in the courts of the State of Illinois, located in Cook County, or the
courts of the United States of America for the Northern District of Illinois; provided, however,
that with respect to an action brought by BNPPLC to enforce its rights with respect to the
Collateral, such action may be brought in the courts of the State of California, located in the
County of Alameda, or the courts of the United States of America for the Northern District of
California. Each party hereto irrevocably waives any objection on the grounds of venue, forum
non-conveniens or any similar grounds, irrevocably consents to service of process by mail or in any
other manner permitted by applicable law and consents to the jurisdiction of said courts. Each
party hereto intentionally, knowingly and voluntarily irrevocably waives any right to trial by jury
in any proceeding related to this Agreement. This Agreement may be executed in any number of
counterparts which together shall constitute one and the same instrument.

     11. Termination and Resignation. This Agreement may be terminated by agreement of
BNPPLC and LRC upon fifteen (15) days’ prior written notice to Deposit Taker; provided, however,
that this Agreement shall terminate immediately upon notice from BNPPLC that all of LRC’s
obligations secured by the Pledge Agreement are satisfied. Deposit Taker may, at any time upon
thirty (30) days’ prior written notice to BNPPLC and LRC, terminate this Agreement and close the
Deposit Account; provided, however, that a substitute deposit taker has been appointed for [BNPPLC
or name of Participant] [if name of Participant is inserted, then also insert: (in its capacity as
a Participant)] and as described in the Pledge Agreement. Deposit Taker may terminate this
Agreement upon ten (10) days’ prior written notice to BNPPLC and LRC in the event of a material
breach of this Agreement (including non-payment of any Charges or other obligations under this
Agreement), and which constitutes an Event of Default as that term is defined in the Common
Definitions and Provisions Agreement, by either LRC or BNPPLC. Upon termination of this Agreement
any funds in the Deposit Account shall be subject to the direction of BNPPLC, including any
direction given by BNPPLC that such funds be wired to another “Deposit Taker” designated for
[BNPPLC or name of Participant] under and as defined in the Pledge Agreement.

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

 

Exhibit A to Pledge Agreement (Fremont/Building #1) — Page 5

 

 

     Notices shall be addressed as follows:

	 	 	 	 	 
	 

	 	BNPPLC:
	 	BNP Paribas Leasing Corporation
	 

	 	 	 	12201 Merit Drive, Suite 860
	 

	 	 	 	Dallas, Texas 75251
	 

	 	 	 	Attention: Lloyd G. Cox, Managing Director
	 
	 	 	 	 
	 

	 	 	 	Telecopy: (972) 788-9140
	 

	 	 	 	Email: lloyd.cox@americas.bnpparibas.com
	 
	 	 	 	 
	 

	 	Deposit Taker:
	 	                                                            
	 

	 	 	 	                                                            
	 

	 	 	 	                                                            
	 

	 	 	 	Attn:                                                                    
	 

	 	 	 	Telecopy:                                                             
	 
	 	 	 	 
	 

	 	LRC:
	 	Lam Research Corporation
	 

	 	 	 	4300 Cushing Parkway
	 

	 	 	 	Fremont, California 94538
	 

	 	 	 	Attention: Roch LeBlanc, Treasurer
	 
	 	 	 	 
	 

	 	 	 	Telecopy: (512) 572-1586
	 

	 	 	 	Email: Roch.Leblanc@lamrc.com

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

[signature page follows.]

 

Exhibit A to Pledge Agreement (Fremont/Building #1) — Page 6

 

 

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

	 	 	 	 	 
	 	LAM RESEARCH CORPORATION,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BNP PARIBAS LEASING CORPORATION,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	ACCEPTED AND AGREED TO as of this

______ day of _______________, ______.

[DEPOSIT TAKER]

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

Exhibit A to Pledge Agreement (Fremont/Building #1) — Page 7

 

 

	 	 	 	 	 

Exhibit B

TO PLEDGE AGREEMENT

EXAMPLES OF CALCULATIONS REQUIRED

TO AVOID A COLLATERAL IMBALANCE

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

EXAMPLE NO. 1

Assumptions:

	1.	 	Two Participants (“Participant A” and “Participant B”) are parties to the Participation
Agreement with BNPPLC. Participant A’s Percentage is 50% and Participant B’s Percentage is
45%, leaving BNPPLC with a Percentage of 5%.
	 
	2.	 	The Initial Advance was $12,000,000, resulting in a Lease Balance of $12,000,000, allocable
as follows:

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

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

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

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

 

 

EXAMPLE NO. 2

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

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

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

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

 

 

Exhibit C

TO PLEDGE AGREEMENT

NOTICE OF LRC’s REQUIREMENT TO

WITHDRAW AND PAY INTEREST

EARNED ON CASH COLLATERAL

[                                   ,
               ]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

	 	Re:	 	Pledge Agreement (Fremont/Building #1) dated as of December 21, 2007 between Lam
Research Corporation and BNP Paribas Leasing Corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Pledge Agreement (Fremont/Building #1) referenced above (the “Pledge Agreement”). This letter
constitutes notice to you, as secured party under the Pledge Agreement, that pursuant to
subparagraph 5(A) of the Pledge Agreement, LRC requires you to withdraw the interest that has
accrued on, and been added to, the Deposit Accounts on the last day of each Base Rent Period and to
return the same to LRC on the date of withdrawal.

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

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

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

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

 

 

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

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

	 	 	 	 	 
	 	Lam Research Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

Exhibit C to Pledge Agreement (Fremont/Building #1) — Page 2

 

 

	 	 	 	 	 

Exhibit D

TO PLEDGE AGREEMENT

NOTICE OF LRC’s REQUIREMENT TO

WITHDRAW EXCESS CASH COLLATERAL

[                                   ,
               ]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

	 	Re:	 	Pledge Agreement (Fremont/Building #1) dated as of December 21, 2007 between Lam
Research Corporation and BNP Paribas Leasing Corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Pledge Agreement (Fremont/Building #1) referenced above (the “Pledge Agreement”). This letter
constitutes notice to you, as secured party under the Pledge Agreement, that pursuant to
subparagraph 5(A) of the Pledge Agreement, LRC requires you to withdraw from the Deposit Accounts
and return to LRC the following amount:

____________________________ Dollars ($__________)

on the following date:

__________, ____

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

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

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

 

 

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

____________________________ Dollars ($__________).

     (v) Either:

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

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

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

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

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

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

	 	 	 	 	 
	 	Lam Research Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

Exhibit D to Pledge Agreement (Fremont/Building #1) — Page 2

 

 

	 	 	 	 	 

Exhibit E

TO PLEDGE AGREEMENT

NOTICE OF LRC’S REQUIREMENT OF

DIRECT PAYMENT TO BNPPLC

[_________, _____]

BNP Paribas Leasing Corporation

12201 Merit Drive, Suite 860

Dallas, Texas 75251

Attention: Lloyd G. Cox, Managing Director

	 	Re:	 	Pledge Agreement (Fremont/Building #1) dated as of December 21, 2007
 between Lam
Research Corporation and BNP Paribas Leasing Corporation

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings assigned to them in
the Pledge Agreement (Fremont/Building #1) referenced above (the “Pledge Agreement”). This letter
constitutes notice to you, as secured party under the Pledge Agreement, that pursuant to
subparagraph 5(B) of the Pledge Agreement, LRC requires you to withdraw from the Deposit Account
and to retain, as a payment from LRC required by the Purchase Agreement, the following amount:

____________________________ Dollars ($__________)

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

__________, ____

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

 

 

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

	 	 	 	 	 
	 	Lam Research Corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

Exhibit E to Pledge Agreement (Fremont/Building #1) — Page 2

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