Document:

PARTICIPATION AGREEMENT

                                               Exhibit 10.74

PARTICIPATION AGREEMENT

This Participation Agreement, dated as of December 6, 2000 (as amended, modified, extended,
supplemented, restated and/or replaced from time to time, this "Agreement"), is by and among Lam Research
Corporation, a Delaware corporation (the "Lessee" or the "Guarantor"); the Cushing 2000 Trust, a
Delaware business trust (the "Trust," "Borrower" or "Lessor"); Wilmington Trust Company,
a banking corporation organized under the laws of the State of Delaware ("Wilmington Trust Company"); Wilmington Trust
FSB, a federal savings bank (together with Wilmington Trust Company, the "Trust Companies"); Scotiabanc Inc., a
Delaware corporation, and the various banks and other lending institutions which are parties hereto from time to time as holders of
certificates issued with respect to the Cushing 2000 Trust (subject to the definition of Holders in Annex A hereto, individually, a
"Holder" and collectively, the "Holders"); The Bank of Nova Scotia and the various banks and other lending
institutions which are parties hereto from time to time as lenders (subject to the definition of Lenders in Annex A hereto,
individually, a "Lender" and collectively, the "Lenders"); and The Bank of Nova Scotia, as the
administrative agent for the Lenders and with respect to the Security Documents, as agent for the Lenders and the Holders, to the
extent of their interests (in such capacity, the "Agent").  Capitalized terms used but not otherwise defined in this
Agreement shall have the meanings set forth in Annex A hereto.

In consideration of the mutual agreements herein contained and other good and valuable consideration, the receipt
of which is hereby acknowledged, the parties hereto hereby agree as follows:

	THE LOANS.

Subject to the terms and conditions of this Agreement and the other Operative Agreements and in reliance on
the representations and warranties of each of the parties hereto contained herein or made pursuant hereto, the Lenders have agreed to
make Loans to the Trust from time to time in an aggregate principal amount of up to the aggregate amount of the Commitments of the
Lenders in order for the Trust to acquire the Property and for the other purposes described herein, and in consideration of the
receipt of proceeds of the Loans, the Trust will issue the Notes.  The Loans shall be made and the Notes shall be issued pursuant to
the Credit Agreement.  Pursuant to Section 5 of this Agreement and Section 2 of the Credit Agreement, the Loans will be made to the
Trust at the request of the Lessee to acquire the Property, in consideration for the Lessee agreeing pursuant to the Lease to lease
the Property. The Loans and the obligations of the Trust under the Credit Agreement shall be secured by the Collateral.  

	HOLDER ADVANCES.

	Subject to the terms and conditions of this Agreement and the other Operative Agreements, and in reliance
on the representations and warranties of each of the parties hereto contained herein or made pursuant hereto, each Holder shall make
an advance of immediately available funds (a "Holder Advance") on a pro rata basis to the Trust, based on such Holder's
percentage commitment set forth on Schedule 2.1 attached hereto (the "Holder Commitment"), provided, that
Agent shall have received a Requisition from Lessee in accordance with Section 5 hereof.  The aggregate amount of all Holder Advances
shall be four percent (4%) of the amount of all Advances requested; provided, that no Holder shall be obligated to make any
Holder Advance in excess of its pro rata share of the Available Holder Commitment.  The aggregate amount of Holder Advances shall not
exceed the aggregate amount of the Holder Commitments.  No prepayment or any other payment with respect to any Advance shall be
permitted such that the Holder Advances equal less than four percent (4%) of the outstanding amount of the Advances; except in
connection with termination or expiration of the Term, or in connection with the exercise of remedies relating to the occurrence of a
Lease Event of Default.  To the extent the Trust, in its capacity as Borrower under the Credit Agreement, shall have elected to
terminate or reduce the amount of the Lender Commitment pursuant to Section 2.4 of the Credit Agreement, a pro rata election shall be
deemed to have been made with respect to the Holder Commitment.  On any date on which the Lender Commitment shall be reduced to zero
as a result of a Credit Agreement Event of Default, the Holder Commitment shall automatically be reduced to zero and the Trust shall
prepay the Holder Advances in full, together with accrued but unpaid Holder Yield thereon and all other amounts owing under the
Certificates.

	The representations, warranties, covenants and agreements of the Holders herein and in the other Operative
Agreements are several, and not joint or joint and several.

	SUMMARY OF TRANSACTIONS.

	Operative Agreements.  On the Closing Date, each of the respective parties
hereto and thereto shall execute and deliver this Agreement, the Lease, the Credit Agreement, the Notes, the Trust Agreement, the
Certificates, the Pledge Agreement, the Deed of Trust and such other documents, instruments, certificates and opinions of counsel as
agreed to by the parties hereto.

	Property Purchase.  On the Funding Date and subject to the terms and
conditions of this Agreement (a) the Holders will each make a Holder Advance in accordance with Sections 2 and 5 of this Agreement
and the terms and provisions of the Trust Agreement; (b) the Lenders will each make Loans in accordance with Sections 1 and 5 of this
Agreement and the terms and provisions of the Credit Agreement; (c) the Trust will purchase and acquire good and marketable title to
the Land and Improvements identified by the Lessee pursuant to a Deed or Deeds, and grant the Agent a lien on such Property by
execution of the required Security Documents; (d) the Lessee and the Lessor shall execute and deliver separate Lease Supplements
relating to the Land and the Improvements; and (e) the Term shall commence with respect to the Land and the Improvements.

	Interest on Loans.

	Each Loan shall accrue interest computed and payable in accordance with the terms of the Credit Agreement.
Each Loan shall become due and payable at the dates and times provided under the Credit Agreement.

	The Lessor shall distribute, in accordance with Section 13, the Lender Basic Rent and all other amounts due
with respect to the Loans paid to the Lessor by the Lessee under the Lease from time to time.

	Yield on Holder Certificates. 

	The amount of the Holder Advances outstanding from time to time shall accrue yield ("Holder
Yield") at the Yield Rate, calculated using the actual number of days elapsed and, when the Yield Rate is based on the Adjusted
LIBOR, a 360-day year basis and, if calculated at the ABR, a 360-day year basis if the ABR is calculated at the Federal Funds
Effective Rate, and a 365-, or, if applicable, 366-, day year basis if the ABR is calculated at the Base Rate.  

	Each Holder shall receive its pro rata portion of the Holder Yield on Holder Advances from the Trust Estate.
Payment of Holder Yield to each Holder shall be made on each Scheduled Interest Payment Date, or as otherwise provided herein, in the
Trust Agreement, or in the Credit Agreement.  If not repaid sooner, the outstanding aggregate Holder Advances shall be due in full on
the Maturity Date.  On the Maturity Date, the Trust shall pay to each Holder its portion of the Holder Advances then due, together
with all accrued but unpaid Holder Yield and all other amounts due to such Holder from the Trust.

	The calculation of Holder Yield shall be made by the Agent, such calculation being conclusive and binding on
the Trust and the Holders in the absence of manifest error.  The Agent shall distribute, in accordance with Section 13, the Lessor
Basic Rent and all other amounts due with respect to the Holder Advances paid to the Agent by the Lessee under the Lease or the other
Operative Agreements from time to time.

	If all or any portion of the Holder Advances, any Holder Yield payable thereon, or any other amount payable
hereunder shall not be paid when due (whether at stated maturity, acceleration thereof or otherwise), such overdue amount shall,
without limiting the rights of the Holders under any Operative Agreement, bear interest at a rate per annum equal to the Overdue
Rate, in each case from the date of nonpayment until paid (whether before or after judgment).  Upon the occurrence, and during the
continuance of an Event of Default, the amount of, and, to the extent permitted by law, interest on (or Holder Yield on) the Holder
Advances and any other amounts owing hereunder or under the other Operative Agreements shall bear interest, payable on demand, at a
per annum rate equal to the Overdue Rate.

	Interest Period Selection Elections.  By delivering an Interest Period Selection Notice to the Trust
and Agent with respect to Holder Advances and Loans, respectively, the Lessee may from time to time during the Term irrevocably
select, on not less than three (3) nor more than five (5) Business Days' notice (other than the initial Interest Period with respect
to the Advance to be made on the Closing Date, where such Advance is to bear interest at a rate equal to the ABR and notice may be
given on the Closing Date), the duration for the next succeeding Interest Period; provided, however, that (a) in the absence of a
delivery of an Interest Period Selection Notice with respect to any Loan or Holder Advance at least three (3) Business Days before
the last day of the then current Interest Period with respect thereto, the Lessee shall be deemed to have selected that such Loan or
Holder Advance have an Interest Period of one month, (b) each such selection shall be prorated among the applicable outstanding Loans
and Holder Advances of all Financing Parties and (c) the outstanding Loans and Holder Advances may not be apportioned into more than
three (3) separate Interest Periods at any one time.  Each Interest Period Selection Notice so delivered or deemed delivered by the
Lessee shall be deemed an effective election by the Borrower of the method for computing interest on the Loans under the Credit
Agreement.

	Prepayments.

	Voluntary Prepayments.  The Lessee shall have the right to prepay an amount equal to the aggregate
outstanding Land and/or Improvements Balance in whole, but not in part, pursuant to the exercise of the purchase options permitted
under the Lease without premium or penalty.

	Mandatory Prepayments.  If at any time the sum of the aggregate amount of outstanding Loans and Holder
Advances shall exceed the Aggregate Commitment Amount, the Lessee shall immediately make payment on the Loans or Holders Advances in
an amount sufficient to eliminate such excess.  Payments required to be made hereunder shall be applied first to ABR Loans or ABR
Holder Advances and second to LIBOR Loans or LIBOR Holder Advances in direct order of their Interest Period maturities.

	Notice.  The Lessee will provide irrevocable notice to the Agent of any prepayment of Loans or Holder
Advances at least three (3) Business Days prior to the date of prepayment.

	THE CLOSING.

All documents and instruments required to be delivered on the Closing Date shall be delivered at the offices
of Cooley Godward LLP, Palo Alto, California or at such other location as may be determined by the Trust, the Agent and the
Lessee.

	FUNDING OF ADVANCES; PLEDGED COLLATERAL.

	General.  To the extent funds have been made available to or advanced to the Borrower as Loans by
the Lenders and as Holder Advances by the Holders, the Trust will use such funds from time to time in accordance with the terms and
conditions of this Agreement and the other Operative Agreements (i) at the direction of the Lessee to acquire the Property in
accordance with the terms of this Agreement and (ii) to pay Transaction Expenses; and (iii) to pay all other Project Costs.

	Procedures for Funding.

	The Lessee shall designate the date for Advances hereunder in accordance with the terms and provisions
hereof which date shall not be earlier than three (3) Business Days following the Lessee's delivery to Agent of a Requisition in the
form of Exhibit A hereto with respect to any such Advance; provided, however, it is understood and agreed that with
respect to the Advance to be made on the Funding Date, such Advance is to bear interest at a rate equal to the ABR and notice may be
given on the Funding Date. 

	Each Requisition shall:  (i) be irrevocable, (ii) request funds in an amount that is not in excess of the
total aggregate amount of the Available Commitments at such time, and (iii) request that the Holders make Holder Advances and that
the Lenders make Loans to the Trust for the payment of Transaction Expenses, Property Acquisition Costs or other Property Costs that
have previously been incurred or are to be incurred on the date of such Advance to the extent such were not subject to a prior
Requisition, in each case as specified in the Requisition.

	Subject to the satisfaction of the conditions precedent set forth in Section 6.1, (i) the Lenders shall make
Loans based on their respective Lender Commitments to the Borrower in an aggregate amount equal to ninety-six percent (96%) of the
amount specified in any Requisition plus any additional amount of Transaction Expenses as referenced in Sections 8.1(a) and 8.1(b)
and any additional amount respecting any indemnity payment as referenced in Section 12.6, unless any such funding of Transaction
Expenses or any indemnity payment is declined in writing by each Lender and each Holder (such decision to be in the sole discretion
of each Lender and each Holder) up to an aggregate principal amount equal to the aggregate of the Available Lender Commitments; (ii)
the Holders shall make Holder Advances based on their respective Holder Commitments in an aggregate amount equal to four percent (4%)
of the amount specified in such Requisition plus any additional amount of Transaction Expenses as referenced in Sections 8.1(a) and
8.1(b) and any additional amount respecting any indemnity payment as referenced in Section 12.6, unless any such funding of
Transaction Expenses or any indemnity payment is declined in writing by each Lender and each Holder (such decision to be in the sole
discretion of each Lender and each Holder), up to an aggregate amount equal to the aggregate of the Available Holder Commitments; and
(iii) the total amount of such Loans and Holder Advances made on such date shall (x) be used by the Trust to pay Project Costs
including Transaction Expenses or (y) be advanced by the Trust on the date of such Advance to the Lessee to pay Property Costs, as
applicable.  Notwithstanding that the Operative Agreements state that Advances shall be directed to the Trust, each Advance shall in
fact be directed to the Lessee (for the benefit of the Trust) and applied by the Lessee (for the benefit of the Trust) pursuant to
the requirements imposed on the Trust under the Operative Agreements.

	All Operative Agreements which are to be delivered to the Trust, the Agent, the Lenders or the Holders shall
be delivered to the Agent, on behalf of the Trust, the Agent, the Lenders or the Holders, and such items (except for Notes,
certificates, bills of sale, and chattel paper originals, with respect to which in each case there shall be only one original) shall
be delivered with originals sufficient for the Trust, the Agent, each Lender and each Holder.  All other items which are to be
delivered to the Trust, the Agent, the Lenders or the Holders shall be delivered to the Agent, on behalf of the Trust, the Agent, the
Lenders or the Holders, and such other items shall be held by the Agent.  To the extent any such other items are requested in writing
from time to time by the Trust, any Lender or any Holder, the Agent shall provide a copy of such item to the party requesting
it.

	Notwithstanding the completion of any closing under this Agreement pursuant to Sections 6.1 or 6.2, each
condition precedent in connection with any such closing may be subsequently enforced by the Agent (unless such has been expressly
waived in writing by the Agent).

	Allocation of Advances Between Land and Improvements.  In the event the
Fair Market Sales Value of the Land leased pursuant to the Lease as set forth in the Appraisal is greater than twenty-five percent of
the aggregate Fair Market Sales Value of the Property as set forth in the Appraisal, Lessor shall determine a separate Project Cost
for each of the Land and Improvements, and Lessee shall execute and deliver a separate Lease Supplement for each of the Land and
Improvements.

	Pledged Collateral.  

	Mandatory Pledged Collateral.  If as of the last day of any Fiscal Quarter (i) the Lessee's EBITDA equals
an amount less than $200,000,000, or (ii) the Lessee's Cash Balance equals an amount less than $200,000,000, provided, that if
as of the date six (6) months prior to the Maturity Date, the Lessee has not refinanced the Subordinated Notes, there shall be
deducted from the Cash Balance at all times thereafter the principal amount of such outstanding Subordinated Notes in determining the
Cash Balance under this clause (ii), then (x) in the case of clause (i), on or before the third Business Day (or if such date is not
a Business Day, the next succeeding Business Day) (the "Deposit Date") following the date on which financial
statements are delivered pursuant to Section 9.3(b)(i) or (ii) hereof until the third Business Day following the date on which
financial statements are delivered pursuant to Section 9.3(b)(i) or (ii) hereof for the Fiscal Quarter when the Lessee shall satisfy
such tests, and (y) in the case of clause (ii), on such specified date (also, a "Deposit Date") for so long as any
Obligations remain outstanding or until the third Business Day following the date on which financial statements are delivered
pursuant to Section 9.3(b)(i) or (ii) hereof for the second consecutive Fiscal Quarter when the Lessee shall satisfy such tests, the
Lessee shall deliver Pledged Collateral to the Collateral Agent in an amount equal to 100% of the aggregate outstanding Advances.
Thereafter, the Lessee covenants to maintain the Value of the Pledged Collateral at a level equal to 100% of the aggregate
outstanding Advances, and within two (2) Business Days after receipt of notice from the Collateral Agent that the Value of the
Pledged Collateral is less than 100% of the aggregate outstanding Advances, the Lessee shall be obligated to deliver a portion of the
Pledged Collateral in an amount required to maintain the Value of the Pledged Collateral at a level equal to 100% of the aggregate
outstanding Advances.  Each such deposit (collectively, the "Pledge") shall be the property of the Collateral Agent
and shall be held and administered in accordance with the Pledge Agreement.

	Optional Pledged Collateral.  Notwithstanding the requirements of Section 5.4(a), from time to time,
the Lessee may make a deposit of additional Pledged Collateral to the Collateral Agent in an amount equal to not less than 100% of
the aggregate outstanding Advances in order to have a lower Applicable Margin apply to the outstanding Advances.  In order to
maintain a lower Applicable Margin, the Lessee covenants to maintain the Value of the Pledged Collateral at a level equal to 100% of
the aggregate outstanding Advances, and within two (2) Business Days after receipt of notice from the Collateral Agent that the Value
of the Pledged Collateral is less than 100% of the aggregate outstanding Advances, the Lessee shall deliver a portion of Pledged
Collateral in an amount required to maintain the Value of the Pledged Collateral at a level equal to 100% of the aggregate
outstanding Advances.  Each such deposit shall constitute part of the Pledge, shall be the property of the Collateral Agent and shall
be held and administered in accordance with the Pledge Agreement.

	CONDITIONS OF THE CLOSING AND ADVANCES.

	General Conditions to the Closing Date.  The Closing Date is subject to the satisfaction,
immediately prior to or concurrently therewith, of the following conditions precedent:

	Operative Agreements.  Each of the Operative Agreements entered into on
the Closing Date or subsequently shall have been duly authorized, executed, acknowledged and delivered by the parties thereto and
shall be in full force and effect, and no Default shall exist thereunder (both before and after giving effect to the transactions
contemplated by the Operative Agreements), and the Agent, Lenders, Holders and Lessor shall have received a fully executed copy of
each of the Operative Agreements.

	Taxes.  All taxes, fees and other charges in connection with the
execution, delivery, and, where applicable, recording, filing and registration of the Operative Agreements shall have been paid or
provisions for such payment shall have been made to the reasonable satisfaction of the Agent and the Lessor.

	Governmental Approvals.  All necessary (or, in the reasonable opinion of
the Agent, the Lessor and their respective counsel, advisable) Governmental Actions shall have been obtained or made and be in full
force and effect.

	Litigation.  No action or proceeding shall have been instituted before any
Governmental Authority, nor shall any order, judgment or decree have been issued or proposed to be issued by any Governmental
Authority (i) to set aside, restrain, enjoin or prevent the full performance of this Agreement, any other Operative Agreement or any
of the transactions contemplated hereby or thereby or (ii) other than as set forth on Schedule 7.3, which is reasonably likely to
have a Material Adverse Effect.

	Legal Requirements.  In the opinion of the Agent, the Lessor and their
respective counsel, the transactions contemplated by the Operative Agreements do not and will not violate in any material respect any
Legal Requirements and do not and will not subject the Lenders, the Holders or the Lessor to any adverse regulatory prohibitions or
constraints.

	Corporate Proceedings of the Lessee.  The Agent and the Lessor shall have
received a copy of the resolutions or minutes, in form and substance reasonably satisfactory to the Agent and the Lessor, of the
Board of Directors of the Lessee authorizing the execution, delivery and performance of this Agreement and the other Operative
Agreements to which it is a party, certified by the Secretary or an Assistant Secretary of the Lessee as of the Closing Date, which
certificate shall be in form and substance reasonably satisfactory to the Agent and the Lessor and shall state that the resolutions
or minutes thereby certified have not been amended, modified, revoked or rescinded.

	Lessee Incumbency Certificate.  The Agent and the Lessor shall have
received a certificate of the Lessee, dated the Closing Date, as to the incumbency and signature of the officers of the Lessee
executing any Operative Agreement reasonably satisfactory in form and substance to the Agent and the Lessor, executed by the
Secretary or any Assistant Secretary of the Lessee.

	Lessee's Officer's Certificate.  The Agent and the Lessor shall each have
received a Certificate of the President or any Vice President of the Lessee, dated as of the Closing Date, stating that (i) each and
every representation and warranty of the Lessee contained in the Operative Agreements to which it is a party is true and correct on
and as of the Closing Date; (ii) no Default or Event of Default has occurred and is continuing under any Operative Agreement; (iii)
each Operative Agreement to which the Lessee is a party is in full force and effect with respect to it; and (iv) the Lessee has duly
performed and complied with all covenants, agreements and conditions contained herein or in any Operative Agreement required to be
performed or complied with by it on or prior to the Closing Date.

	Good Standing.  The Agent and the Lessor shall have received (i) Certificates of the Secretaries of
State of the State of Delaware and the State of California dated as of a recent date stating that the Lessee is a corporation in good
legal standing under the laws of such states, and (ii) Certificates of the Franchise Tax Boards of the State of Delaware and the
State of California dated as of a recent date stating that the Lessee is in good standing under the laws of such states.

	Lessee's Corporate Documents.  The Agent and the Lessor shall have
received true and complete copies of the certificate or articles of incorporation and bylaws of the Lessee, certified as of the
Closing Date as complete and correct copies thereof by the Secretary or an Assistant Secretary of the Lessee.

	Consents, Licenses and Approvals.  The Agent and the Lessor shall have
received a certificate of the President or a Vice President of the Lessee stating that any consents, licenses and filings required to
consummate the transaction contemplated by this Agreement are in full force and effect, and each such consent, authorization and
filing shall be in form and substance reasonably satisfactory to the Agent and the Lessor.

	Legal Opinion.  The Agent and the Lessor shall have received the executed
legal opinion of Heller Ehrman White & McAuliffe LLP, special counsel to the Lessee.

	Environmental Audit.

	The Lessor and the Agent shall have received not less than ten (10) days prior to the Funding Date an
Environmental Audit with respect to the Property being acquired on the Funding Date, prepared by the Environmental Engineer, and the
results of the Environmental Audit shall be in form and substance satisfactory to the Lessor and the Agent; and 

	the Lessor and the Agent shall have received letters from the Environmental Engineer stating, among other
things, that the Agent, the Lenders, the Holders and the Lessor may rely in all respects on the Environmental Audit and other
environmental reports with respect to the Property which have been prepared by such firm as if they were addressed to
them.

	Survey.  The Lessor and the Agent shall have received, and the Title
Company shall have received, a survey of the Property being acquired on the Funding Date, certified to the Lessor and the Title
Company in a manner satisfactory to them, dated as of a date within three (3) months of the Funding Date, by an independent
professionally licensed land surveyor satisfactory to the Lessor, which survey shall be made in accordance with the Minimum Standard
Detail Requirements for Land Title Surveys jointly established and adopted by the American Land Title Association and the American
Congress on Surveying and Mapping in 1999, and, without limiting the generality of the foregoing, there shall be surveyed and shown
on such survey the following: (i) the locations on such Property of all the buildings, structures and other improvements, if any, and
the established building setback lines; (ii) the lines of streets abutting such Property; (iii) all access and other easements
appurtenant to such Property; (iv) all roadways, paths, driveways, easements, encroachments and overhanging projections and similar
encumbrances affecting such Property, whether recorded, apparent from a physical inspection of the Property or otherwise known to the
surveyor; (v) any encroachments on any adjoining property by the building, structures and improvements on such Property; and (vi) if
such Property is described as being on a filed map, a legend relating the survey to said map.

	Appraisal.  The Lessor and the Agent shall have received an Appraisal of
the Property, which Appraisal shall show as of the Funding Date the Fair Market Sales Value of the Property, and meet the other
applicable requirements set forth in the definition of the term "Appraisal" contained in Annex A.

	Lien Searches.  The Lessor and the Agent shall have received the results
of a recent search by a Person reasonably satisfactory to the Lessor and the Agent, of the Uniform Commercial Code, judgement and tax
lien filings which may have been filed in State of California with respect to personal property of the Lessee, and the results of
such search shall be satisfactory to the Lessor and the Agent.

	Representations.  The representations and warranties of the Lessee and the
Lessor contained herein and in each of the other Operative Agreements shall be true and correct.

	Performance of Agreements.  The parties hereto and thereto shall have performed their respective
agreements to be performed on or prior to the Closing Date contained herein and in the other Operative Agreements on or prior to the
Closing Date.

	Fees.  The Lessor and the Holders  and the Agent and the Lenders shall have received the fees pursuant
to the Fee Letter.

	Lessor Certificate.  The Agent shall have received a certificate, executed by each Trust Company on
behalf of the Lessor, dated as of the Closing Date in such form as is acceptable to the Agent, stating that (i) each and every
representation and warranty of the Lessor contained in the Operative Agreements to which it is a party is true and correct on and as
of the Closing Date, (ii) each Operative Agreement to which it is a party is in full force and effect with respect to it, and (iii)
Lessor has duly performed and complied with all covenants, agreements and conditions contained herein or in any Operative Agreement
required to be performed or complied with by it on or prior to the Closing Date.

	Trust Company Certificates.  The Agent shall have received from each Trust Company (i) a certificate of
the Secretary, an Assistant Secretary, Trust Officer or vice president of the Trust Company in such form as is acceptable to the
Agent, attaching and certifying as to (A) the signing resolutions duly authorizing the execution, delivery and performance by such
Trust Company of each of the Operative Agreements to which it is or will be a party, (B) such Trust Company's articles of association
or other equivalent charter documents, and its bylaws, as the case may be, certified as of a recent date by an appropriate officer of
such Trust Company, and (C) the incumbency and signature of persons authorized to execute and deliver on such Trust Company's
behalf the Operative Agreements to which it is a party, and (ii) a good standing certificate from the Office of the Comptroller of
the Currency.

	Lessor Legal Opinion.  Counsel for the Lessor acceptable to the Agent shall have issued to the Lessee,
the Holders, the Lenders and the Agent its opinion in such form as is reasonably acceptable to the Agent.

	Conditions to Lenders' and Holders' Obligations to Make Loans and Holder Advances.
  The agreement of each Lender to make the Loans to the Borrower, and of the Holders to make the Holder Advances is
further subject to the satisfaction, immediately prior to or concurrently with the making of such Loans and Holder Advances, of the
following conditions precedent:

	Title.  Title to the Property being acquired on the Funding Date shall
conform to the representations and warranties set forth in Section 7.3(w).

	Title Insurance. 

The Lessor shall have received an owner's title policy, or marked up unconditional binder for such insurance,
dated the Funding Date, for the Property being acquired on the Funding Date, insuring the Lessor that the Lien of the Lease is a
first and primary Lien in the Lessee's interest in the Improvements and the Land; and the Lessor shall have received evidence
reasonably satisfactory to it that all premiums in respect of such policy have been paid or provision made therefor.

	The Agent shall have received with respect to the Deed of Trust a mortgage title policy or marked up
unconditional binder for such insurance dated the Funding Date; such policies shall (i) be in an amount equal to the aggregate amount
of the Commitments (with a pending disbursements clause); (ii) be issued at ordinary rates; (iii) insure that the Deed of Trust
insured thereby creates a valid first Lien on the Lessor's interest in the Lease and in the fee title to the Property, free and clear
of all defects and encumbrances, except Permitted Exceptions; (iv) name the Agent for the benefit of the Lenders as the insured
thereunder; (v) be in the form of ALTA Loan Policy - 1992; (vi) contain such endorsements and affirmative coverage as the Agent may
reasonably request; and (vii) be issued by the Title Company; and the Agent shall have received evidence reasonably satisfactory to
it that all premiums in respect of such policy, and all charges for mortgage recording tax with respect to the Deed of Trust have
been paid or provision made therefor.

	Title Documents.  The Lessor shall have received a copy of all recorded
documents referred to, or listed as exceptions to title in, the title policies referred to above.

	Insurance.  The Lessor and the Agent shall have received evidence in form
and substance satisfactory to them that all of the requirements of Article 14 of the Lease shall have been satisfied.

	Lease.  The Lessor and the Agent shall have received each Lease Supplement, executed by the Lessee, and
assuming proper recordation of each Memorandum of Lease, each Lease shall constitute a valid and perfected first lien on the Land and
the Improvements, subject only to Permitted Exceptions.

	Actions to Perfect Liens.  The Lessor shall have received evidence in form
and substance satisfactory to it that all filings, recordings, registrations and other actions, including, without limitation, the
filing of duly executed financing statements on form UCC-1, necessary or, in the opinion of the Lessor and the Agent, desirable to
perfect the Liens created by the Security Documents shall have been completed.

	Bringdown Certificate.  The Lessor and the Agent shall have received an Officer's Certificate on behalf
of the Lessee dated as of the Funding Date (if different from the Closing Date) stating that (i) the representations and warranties
of the Lessee contained herein and in each of the other Operative Agreements are true and correct in all material respects as of the
Funding Date as though made as of the Funding Date, and (ii) no Default or Event of Default has occurred and is continuing.

	Performance of Agreements.  The parties hereto and thereto shall have performed their respective
agreements contained herein and in the other Operative Agreements on or prior to such Funding Date.

	Restrictions on Liens.  On the date the Property is either sold to a third
party in accordance with the terms of the Operative Agreements or, pursuant to Section 22.1(a) of the Lease Agreement, retained by
the Lessor, the Lessee shall cause such Property to be free and clear of all Liens (other than Lessor Liens and such other Liens that
are expressly set forth as title exceptions on the title commitment issued under Section 6.2(b) with respect to such Property, to the
extent such title commitment has been approved by the Agent).

	Payments.  All payments of principal, interest, Holder Advances, Holder
Yield and other amounts to be made by the Lessee under this Agreement or any other Operative Agreement (excluding Excepted Payments
which shall be paid directly to the party to whom such payments are owed) shall be made in Dollars and in immediately available
funds, without setoff, deduction, or counterclaim, to the Agent at the address set forth on Schedule 6.4 hereto.  Subject to the
definition of "Interest Period" in Annex A attached hereto, whenever any payment under this Agreement or any other
Operative Agreement shall be stated to be due on a day that is not a Business Day, such payment may be made on the next succeeding
Business Day, and such extension of time in such case shall be included in the computation of interest, Holder Yield and fees payable
pursuant to the Operative Agreements, as applicable and as the case may be.

	REPRESENTATIONS AND WARRANTIES.

	Representations and Warranties of the Trust Companies.  Effective as of the
Closing Date and the date of each Advance, each Trust Company represents and warrants to each of the other parties hereto as
follows:

	Wilmington Trust Company is a banking corporation organized under the laws of the State of Delaware and
Wilmington Trust FSB is a federal savings bank, each duly organized and validly existing and in good standing under the laws of the
State of Delaware and the United States of America, as applicable, and each has the power and authority to enter into and perform its
obligations under the Trust Agreement and (assuming due authorization, execution and delivery of the Trust Agreement by the Holders)
each has the corporate and trust power and authority to act as a trustee and to enter into and perform the obligations under each of
the other Operative Agreements to which it is or will be a party, and each other agreement, instrument and document to be executed
and delivered by it on or before the Closing Date in connection with or as contemplated by each such Operative Agreement to which
such Trust Company is or will be a party;

	The execution, delivery and performance of each Operative Agreement to which it is or will be a party has been
duly authorized by all necessary action on its part and neither the execution and delivery thereof, nor the consummation of the
transactions contemplated thereby, nor compliance by it with any of the terms and provisions thereof (i) does or will require any
approval or consent of any trustee or holders of any of its indebtedness or obligations, (ii) does or will contravene any Legal
Requirement relating to its banking or trust powers, (iii) does or will contravene or result in any breach of or constitute any
default under, (A) its charter or bylaws, or (B) any indenture, mortgage, chattel mortgage, deed of trust, conditional sales
contract, bank loan or credit agreement or other agreement or instrument to which it is a party, which contravention, breach or
default under clause (B) would materially and adversely affect its ability to perform its obligations under the Operative Agreements
to which it is a party or (iv) does or will require any Governmental Action by any Governmental Authority regulating its banking or
trust powers;

	This Agreement and each other Operative Agreement to which it is or will be a party, if any, have been, or on
or before such Closing Date will be, duly executed and delivered by it, and the Trust Agreement constitutes, or upon execution and
delivery will constitute, a legal, valid and binding obligation enforceable against it in accordance with the terms thereof;

	There is no action or proceeding pending or, to its knowledge, threatened to which it is or will be a party
before any Governmental Authority that, if adversely determined, would materially and adversely affect its ability to perform its
obligations under the Operative Agreements to which it is a party or would question the validity or enforceability of any of the
Operative Agreements to which it is or will become a party;

	Each Trust Company's principal place of business and chief executive office are located at:  

	In the case of Wilmington Trust Company:

Rodney Square North

1100 North Market Street

Wilmington, DE  19890-0001

	In the case of Wilmington Trust FSB:

100 Wilshire Boulevard, Suite 1230

Santa Monica, CA  90401

(f)All documents, accounts and records relating to the transactions contemplated by this Agreement
and the other Operative Agreements shall be located at Rodney Square North, 1100 North Market Street, Wilmington, Delaware, 19890-
0001.

	Representations and Warranties of the Borrower.  The Borrower represents
and warrants to each of the other parties hereto as of the Closing Date and the Funding Date as follows:

	It is a business trust and is duly formed and validly existing and in good standing under the laws of the
State of Delaware and has the power and authority to enter into and perform its obligations under the Operative Agreements to which
it is a party and (assuming due authorization, execution and delivery of the Trust Agreement by the parties thereto) has the trust
power and authority to enter into and perform the obligations under each of the other Operative Agreements to which it is or will be
a party, and each other agreement, instrument and document to be executed and delivered by it on or before the Closing Date in
connection with or as contemplated by each such Operative Agreement to which it is or will be a party;

	The execution, delivery and performance of each Operative Agreement to which it is or will be a party
(assuming due authorization, execution and delivery of the Trust Agreement by the parties thereto) has been duly authorized by all
necessary action on its part and neither the execution and delivery thereof, nor the consummation of the transactions contemplated
thereby, nor compliance by it with any of the terms and provisions thereof (i) does or will require any approval or consent of any
trustee or holders of any of its indebtedness or obligations, (ii) does or will contravene any Legal Requirement relating to its
trust powers, (iii) does or will contravene or result in any breach of or constitute any default under, or result in the creation of
any Lien upon any of its property under, (A) the Trust Agreement or Certificate of Trust, or (B) any indenture, mortgage, chattel
mortgage, deed of trust, conditional sales contract, bank loan or credit agreement or other agreement or instrument to which it is a
party or by which it or its properties may be bound or affected, which contravention, breach, default or Lien under clause (B) would
materially and adversely affect its ability to perform its obligations under the Operative Agreements to which it is a party or (iv)
does or will require any Governmental Action by any Governmental Authority regulating its trust powers;

	The Trust Agreement and, assuming the Trust Agreement is the legal, valid and binding obligation of the
parties hereto, each other Operative Agreement to which the Borrower is or will be a party have been, or on or before such Closing
Date will be, duly executed and delivered by it, and each Operative Agreement to which it is a party constitutes, or upon execution
and delivery will constitute, a legal, valid and binding obligation enforceable against it in accordance with the terms
thereof;

	There is no action or proceeding pending or, to its knowledge, threatened to which it is or will be a party
before any Governmental Authority that, if adversely determined, would materially and adversely affect its ability to perform its
obligations under the Operative Agreements to which it is a party or would question the validity or enforceability of any of the
Operative Agreements to which it is or will become a party;

	It has not assigned or transferred any of its right, title or interest in or under the Lease or its interest
in the Property or any portion thereof, except in accordance with the Operative Agreements; 

	No Default or Event of Default under the Operative Agreements attributable to it has occurred and is
continuing;

	Except as otherwise contemplated in the Operative Agreements, the proceeds of the Loans and Holder Advances
shall not be applied by it for any purpose other than the purchase and/or lease of the Property and the payment of Transaction
Expenses and the fees, expenses and other disbursements referenced in Sections 8.1(a) and 8.1(b) of this Agreement;

	Neither it  nor any Person authorized by it to act on its behalf has offered or sold any interest in the Trust
Estate or the Notes, or in any similar security relating to the Property, or in any security the offering of which for the purposes
of the Securities Act would be deemed to be part of the same offering as the offering of the aforementioned securities to, or
solicited any offer to acquire any of the same from, any Person other than, in the case of the Notes, the Agent, and neither it nor
any Person authorized by it to act on its behalf will take any action which would subject, as a direct result of such action alone,
the issuance or sale of any interest in the Trust Estate or the Notes to the provisions of Section 5 of the Securities Act or require
the qualification of any Operative Agreement under the Trust Indenture Act of 1939, as amended;

	The principal place of business, chief executive office and office where the documents, accounts and records
relating to the transactions contemplated by this Agreement and the other Operative Agreements are located at Rodney Square North,
1100 North Market Street, Wilmington, Delaware, 19890-0001;

	It is not engaged principally in, and does not have as one of its important activities, the business of
extending credit for the purpose of purchasing or carrying any margin stock (within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System of the United States), and no part of the proceeds of the Loans or the Holder Advances will
be used by it to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any such
margin stock or for any purpose that violates, or is inconsistent with, the provisions of Regulations T, U, or X of the Board of
Governors of the Federal Reserve System of the United States;

	The Property is free and clear of all Lessor Liens attributable to it; 

	It is not (i) an "investment company" or a company controlled by an "investment company"
within the meaning of the Investment Company Act, or (ii) a "holding company" as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935; and

	It is not a party to any documents, instruments or agreements other than the Operative Agreements executed by
it.

	Representations and Warranties of the Lessee.  Subject to Schedule
7.3 hereto, the Lessee represents and warrants to each of the other parties hereto as of the Closing Date and the Funding Date as
follows:

	Organization; Powers.  Each of the Lessee and its Subsidiaries (i) is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) has all requisite power
and authority to own its property and assets and to carry on its business as now conducted and as proposed to be conducted, (iii) is
qualified to do business in every jurisdiction where such qualification is required, except where the failure so to qualify would not
result in a Material Adverse Effect, and (iv) has the power and authority to execute, deliver and perform its obligations under each
of the Operative Agreements and each other agreement or instrument contemplated thereby to which it is or will be a party.

	Authorization.  The execution, delivery and performance by the Lessee of
each of the Operative Agreements to which it is a party (i) have been duly authorized by all requisite action on the part of the
Lessee, including, if required, stockholder action and (ii) will not (A) violate (1) any provision of law, statute, rule or
regulation, or of the certificate or articles of incorporation or other constitutive documents or bylaws of the Lessee or any
Subsidiary, (2) any order of any Governmental Authority, or (3) any provision of any indenture, agreement or other
instrument to which the Lessee or any Subsidiary is a party or by which any of them or any of their property is or may be bound,
including, without limitation, the Credit Facility and the Subordinated Notes, (B) be in conflict with, result in a breach of or
constitute (alone or with notice or lapse of time or both) a default under any such indenture, agreement or other instrument, or (C)
result in the creation or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by
the Lessee or any Subsidiary except in accordance with the Operative Agreements.

	Enforceability.  This Agreement and each of the other Operative Agreements
to which the Lessee is a party has been duly executed and delivered by the Lessee and constitutes a legal, valid and binding
obligation of the Lessee enforceable against the Lessee in accordance with its terms, subject, in each case as to enforceability, to
bankruptcy, insolvency, reorganization and other similar laws affecting enforcement of creditor rights generally (insofar as any such
law relates to the bankruptcy, insolvency, reorganization or similar event of the Lessee) and, as to the availability of specific
performance or other injunctive relief, subject to the discretionary power of a court to deny such relief and to general equitable
principles.

	Governmental Approvals.  No action, consent or approval of, registration
or filing with or any other action by any Governmental Authority is or will be required by the Lessee in connection with the
purchase, leasing or financing of the Property (the "Transactions"), except such as have been made or obtained and
are in full force and effect.

	Financial Statements.  The consolidated balance sheet of the Lessee and
its Subsidiaries as at June 25, 2000, and the related consolidated statements of income and cash flows of the Lessee and its
Subsidiaries for the fiscal year then ended, accompanied by an opinion of Ernst & Young LLP, independent auditors, copies of
which have been furnished to the Lessor and the Agent, fairly present the consolidated financial condition of the Lessee and its
Subsidiaries as at such date and the consolidated results of the Lessee and its Subsidiaries for the period ended on such date, all
in accordance with GAAP consistently applied.  Since June 25, 2000, no event has occurred which could have a Material Adverse
Effect.

	No Material Adverse Change.  As of the Closing Date, there has been no
material adverse change in the business, assets, property or condition, financial or otherwise, of the Lessee and its Subsidiaries
since June 25, 2000.

	Title to Properties; Possession Under Leases. 

	Each of the Lessee and its Subsidiaries has good and marketable title to, or valid leasehold interests in, all
its material properties and assets.  All such properties and assets are free and clear of Liens, other than Liens expressly permitted
by any of the Operative Agreements.

	Each of the Lessee and its Subsidiaries has complied with all obligations under all leases to which it is a
party and all such leases are in full force and effect.  Each of the Lessee and its Subsidiaries enjoys peaceful and undisturbed
possession under all such leases, except to the extent that Lessee is a sublandlord under a sublease of premises.

	Litigation, Compliance with Laws.

	There are not any actions, suits or proceedings at law or in equity or by or before any
Governmental Authority now pending or threatened against the Lessee or any Subsidiary or any business, property or rights of any such
person (A) which involve any Operative Agreements or the Transactions or (B) to the Lessee's knowledge, which might have a Material
Adverse Effect.

	Neither the Lessee nor any of its Subsidiaries is in violation of any law, rule or regulation, or in default
with respect to any judgment, writ, injunction or decree of any Governmental Authority, where such violation or default could
reasonably be anticipated to result in a Material Adverse Effect.

	Federal Reserve Regulations.  Neither the Lessee nor any of its Subsidiaries is engaged principally in,
or has as one of its most important activities, the business of extending credit for the purpose of purchasing or carrying any margin
stock (within the meaning of Regulation U of the Board), and no part of the proceeds of the Advances will be used by it to purchase
or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock or for any
purpose that violates, or is inconsistent with, the provisions of Regulations T, U or X of the Board.

	Investment Company Act; Public Utility Holding Company Act.  Neither the Lessee nor any of its
Subsidiaries is (i) an "investment company" or a company controlled by an "investment company" within the meaning
of the Investment Company Act, or (ii) a "holding company" as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

	Agreements.

	Neither the Lessee nor any of its Subsidiaries is a party to any agreement or instrument or subject
to any corporate or other restriction that has resulted or could reasonably be anticipated to result in a Material Adverse
Effect.

	Neither the Lessee nor any of its Subsidiaries is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Indebtedness, or any other material agreement or instrument to which it is a
party or by which it or any of its properties or assets are or may be bound, where such default could reasonably be anticipated to
result in a Material Adverse Effect.

	Tax Returns.  Each of the Lessee and its Subsidiaries has filed or caused
to be filed all Federal, state, local and foreign tax returns required to have been filed by it and has paid or caused to be paid all
taxes shown to be due and payable on such returns or on any assessments received by it, except taxes that are being contested in good
faith by appropriate proceedings and for which the Lessee or such Subsidiary shall have set aside on its books adequate
reserves.

	No Material Misstatements.  No information, report, financial statement,
exhibit or schedule furnished by or on behalf of the Lessee to the Lessor, the Holders, the Agent or any Lender in connection with
the negotiation of any Operative Agreement or included therein or delivered pursuant thereto contained, contains or will contain any
misstatement of a material fact or omitted, omits or will omit to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were, are or will be made, not misleading.

	Employee Benefit Plans.  Each of the Lessee and its ERISA Affiliates is in
compliance in all material respects with the applicable provisions of ERISA and the regulations and published interpretations
thereunder.  No Reportable Event has occurred as to which the Lessee or any ERISA Affiliate was required to file a report with the
PBGC, and the present value of all benefit liabilities under each Plan (based on those assumptions used to fund such Plan) did not,
as of the last annual valuation date applicable thereto, exceed by more than $1,000,000 the value of the assets of such Plan.
Neither the Lessee nor any ERISA Affiliate has incurred any Withdrawal Liability which remains unpaid and that could result in a
Material Adverse Effect.  Neither the Lessee nor any ERISA Affiliate has received any notification that any Multiemployer Plan is in
reorganization or has been terminated within the meaning of Title IV of ERISA, and to the best knowledge of the Lessee no
Multiemployer Plan is reasonably expected to be in reorganization or to be terminated, where such reorganization or termination has
resulted or could reasonably be expected to result, through increases in the contributions required to be made to such Plan or
otherwise, in a Material Adverse Effect.

	Environmental Matters.  To the best of Lessee's knowledge after due
inquiry, the Property is free of contamination from any Release of Hazardous Substances.  Neither the Lessee nor any of its
Subsidiaries has any material contingent liability related to noncompliance with any Environmental Laws, or related to any Release or
threatened Release of a Hazardous Substance or the generation, use, storage or disposal of Hazardous Substances associated with the
Property.  The Lessee and each Subsidiary is conducting its respective business in compliance with all applicable Environmental Laws.
Neither the Lessee nor any of its Subsidiaries has received notice of any failure to so comply.  The Lessee and its Subsidiaries, at
the Lessee's and its Subsidiaries' facilities, do not manage any hazardous wastes, hazardous substances, hazardous materials, toxic
substances, toxic pollutants or substances similarly denominated, as those terms or similar terms are used in the Environmental Laws,
in violation of any such law or any regulations promulgated pursuant thereto.  Neither the Lessee nor any of its Subsidiaries has
caused or suffered to occur any Release with respect to any Hazardous Substance at, under, above or upon any real property which it
owns or leases or to which it transported, disposed or arranged for disposal of Hazardous Substances that would result in a Material
Adverse Effect.  Neither the Lessee nor any of its Subsidiaries is involved in operations which are reasonably likely to result in
the imposition of any material liability on the Lessee or any of its Subsidiaries under any Environmental Law, and neither the Lessee
nor any of its Subsidiaries has permitted any tenant or occupant of such premises to engage in any such activities.

	Insurance.  The Lessee has obtained insurance coverage covering the
Property which meets the requirements of Section 14.1 of Lease and such coverage is in full force and effect.

	Nature of the Property.  The Lessee shall use the Property for office,
manufacturing and research and development purposes.

	Flood Zone.  No portion of the Property is located in an area identified
as a special flood hazard area by the Federal Emergency Management Agency or other applicable agency, or if the Property is located
in an area identified as a special flood hazard area by the Federal Emergency Management Agency or other applicable agency, then
flood insurance has been obtained for such Property in accordance with Section 14.2(b) of the Lease and in accordance with the
National Flood Insurance Act of 1968, as amended.

	Legal Requirements.  The Property being acquired by the Trust complies
with all Legal Requirements (including all zoning and land use laws and Environmental Laws).

	Consents, etc.  All consents, licenses and building permits required by
all Legal Requirements by the time required by such Legal Requirements for occupancy and operation of the Property have been or will
be obtained and are or will be in full force and effect.

	Solvency.  The fair salable value of Lessee's assets exceeds the fair value of its liabilities; the
Lessee is not left with unreasonably small capital after consummation of the transactions contemplated by the Operative Agreements;
and Lessee is able to pay its debts (including trade debts) as they mature.

	[intentionally omitted]

	Title to Property.  As of the Funding Date, the Trust has a valid fee
interest in the Land, subject only to the Permitted Exceptions.  The Trust will at all times have good and marketable title to the
Improvements, subject only to Permitted Exceptions.

	Property-Related Matters.  The Property will comply with all Legal
Requirements (including all applicable zoning and land use laws and Environmental Laws) and Insurance Requirements.  No Improvements
on the Property will encroach in any manner onto any adjoining land (except as permitted by express written easements or variance)
and such Improvements and the use thereof by the Lessee and its agents, assignees, employees, invitees, lessees, licensees and
tenants will comply with all applicable Legal Requirements (including all applicable Environmental Laws and building, planning,
zoning and fire codes).  There are no defects to such Improvements including, without limitation, the plumbing, heating, air
conditioning and electrical systems thereof, and all water, sewer, electric, gas, telephone and drainage facilities and all other
utilities required to adequately service such Improvements for their intended use will be available pursuant to adequate permits
(including any that may be required under applicable Environmental Laws).  There is no action, suit or proceeding (including any
proceeding in condemnation or eminent domain or under any applicable Environmental Law) pending or threatened which adversely affects
the title to, or the use, operation or value of, the Property.  As of the Closing Date, no fire or other casualty with respect to the
Property has occurred which fire or other casualty involves an uninsured loss in excess of $1,000,000.  As of each subsequent Funding
Date, no fire or other casualty with respect to the Property has occurred after the Closing Date which fire or other casualty
involves an uninsured loss in excess of $500,000.  All utilities serving the Property are located in, and in the future will be
located in, and vehicular access to the Improvements on the Property is provided by, either public rights-of-way abutting the
Property or Appurtenant Rights.  All applicable licenses, approvals, authorizations, consents, permits (including, without
limitation, building, demolition and environmental permits, licenses, approvals, authorizations and consents), easements and rights-
of-way, including proof of dedication, required for the use and operation of the Improvements as permitted pursuant to the Lease have
been obtained from the appropriate Governmental Authorities having jurisdiction or from private parties.

	Lease Requirements .  The Improvements will
comply with all requirements and conditions set forth in the Lease and all other conditions and requirements of the Operative
Agreements.

	PAYMENT OF CERTAIN EXPENSES.

	Transaction Expenses.  

	The Lessee agrees to pay, or cause to be paid, on the Closing Date, all Transaction Expenses arising from
the Closing Date, including without limitation all reasonable fees, expenses and disbursements of the various legal counsels for the
Lessor, the Trustees and the Agent in connection with the transactions contemplated by the Operative Agreements and incurred in
connection with such Closing Date, the initial fees and expenses of the Trustees due and payable on such Closing Date, all fees,
taxes and expenses for the recording, registration and filing of documents and all other reasonable fees, expenses and disbursements
incurred in connection with such Closing Date, including syndication expenses and all expenses relating to the Appraisal. 

	All fees payable pursuant to the Operative Agreements shall be calculated on the basis of a year of three
hundred sixty (360) days for the actual days elapsed.

	Brokers' Fees and Stamp Taxes.  Pay or cause to be paid brokers' fees and
any and all stamp, transfer and other similar taxes, fees and excises, if any, including any interest and penalties, which are
payable in connection with the transactions contemplated by this Agreement and the other Operative Agreements.

	Certain Fees and Expenses.  Lessee agrees to pay or to cause to be paid
(a) the initial and annual fee of the Trust Companies and all reasonable expenses of the Trust Companies and any co-trustees
(including without limitation reasonable counsel fees and expenses) or any successor trustee and/or co-trustee, for acting as a
trustee under the Trust Agreement; (b) all costs and expenses incurred by the Lessee, the Agent, the Lenders, the Holders or the
Lessor in entering into any Lease Supplement and any future amendments, modifications, supplements, restatements and/or replacements
with respect to any of the Operative Agreements, whether or not such Lease Supplement, amendments, modifications, supplements,
restatements and/or replacements are ultimately entered into, or giving or withholding of waivers of consents hereto or thereto,
which have been requested by the Lessee; (c) all costs and expenses incurred by the Agent, the Lenders, the Holders or the Lessor in
connection with any exercise of remedies under any Operative Agreement or any purchase of the Property by the Lessee or any third
party; and (d) all reasonable costs and expenses incurred by the Agent, the Lenders, the Holders or the Lessor in connection with any
transfer or conveyance of Property, whether or not such transfer or conveyance is ultimately accomplished.

	Commitment Fee.  From the Closing Date until the Commitment Termination
Date, the Lessee agrees to pay or cause to be paid to the Agent for the account of the Lenders and the Holders, a commitment fee (the
"Commitment Fee") on the average daily undrawn portion of the Aggregate Commitment Amount equal to the Commitment Fee
Percentage for the applicable Pricing Level.

	Other Fees.  Lessee agrees to pay or cause to be paid to the Agent,
Lenders and Holders the fees set forth in the Fee Letter. 

	OTHER COVENANTS AND AGREEMENTS.

	Cooperation with the Lessee.  The Holders, the Lenders, the Lessor (at the
direction of the Majority Secured Parties) and the Agent shall, at the expense of and to the extent reasonably requested by the
Lessee (but without assuming additional liabilities on account thereof and only to the extent such is acceptable to the Holders, the
Lenders, the Lessor (at the direction of the Majority Secured Parties) and the Agent in their reasonable discretion), cooperate with
the Lessee in connection with the Lessee satisfying its covenant obligations contained in the Operative Agreements including without
limitation at any time and from time to time, promptly and duly executing and delivering any and all such further instruments,
documents and financing statements (and continuation statements related thereto) as the Lessee may reasonably request in order to
perform such covenants.  The Lessor agrees that, to the extent it shall obtain actual knowledge of the occurrence of a Default caused
by the Lessor or any of its Affiliates, it shall promptly notify the Lessee describing the same in reasonable detail.  

	Covenants of the Trust Companies, the Trust, and the Holders.  Each of the
Trust Companies, the Trust, and the Holders hereby agrees that so long as this Agreement is in effect:

	Neither the Trust Companies, the Trust nor any Holder will create or permit to exist at any time, and each of
them will, at its own cost and expense, promptly take such action as may be necessary duly to discharge, or to cause to be
discharged, all Lessor Liens on the Property attributable to it; provided, however, that the Trust Companies, the Trust and the
Holders shall not be required to so discharge any such Lessor Lien while the same is being contested in good faith by appropriate
proceedings diligently prosecuted so long as such proceedings shall not materially and adversely affect the rights of the Lessee
under the Lease and the other Operative Agreements or involve any material danger of impairment of the Liens of the Security
Documents or of the sale, forfeiture or loss of, and shall not interfere with the use or disposition of, the Property or title
thereto or any interest therein or the payment of Rent;

	Without prejudice to any right under the Trust Agreement of the Trust Companies to resign (subject to the
requirement set forth in the Trust Agreement that such resignation shall not be effective until a successor shall have agreed to
accept such appointment), or the Holders' rights under the Trust Agreement to remove the institution acting as the trustee (after
consent to such removal by the Agent as provided in the Trust Agreement), each of the Trust Companies and the Holders hereby agrees
with the Lessee and the Agent (i) not to terminate or revoke the trust created by the Trust Agreement except as permitted by Article
X of the Trust Agreement, (ii) not to amend, supplement, terminate or revoke or otherwise modify any provision of the Trust Agreement
in such a manner as to adversely affect the rights of any such party without the prior written consent of such party and (iii) to
comply with all of the terms of the Trust Agreement, the nonperformance of which would adversely affect such party;

	The Trust Companies or any successor may resign or be removed by the Holders as the trustee, a successor
trustee may be appointed and a corporation may become the trustee under the Trust Agreement, only in accordance with the provisions
of Article X of the Trust Agreement and, with respect to such appointment, with the consent of the Lessee (so long as there shall be
no Lease Event of Default that shall have occurred and be continuing), which consent shall not be unreasonably withheld or
delayed;

	The Trust shall not contract for, create, incur or assume any Indebtedness, or enter into any business or
other activity or enter into any contracts or agreements, other than pursuant to or under the Operative Agreements;

	The Holders will not instruct the Trust Companies or the Trust to take any action in violation of the terms of
any Operative Agreement;

	Neither any Holder, the Trust Companies nor the Trust shall (i) commence any case, proceeding or other action
with respect to the Trust under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, arrangement, winding-up, liquidation, dissolution, composition or other relief with respect to it or its
debts, or (ii) seek appointment of a receiver, trustee, custodian or other similar official with respect to the Trust or for all or
any substantial benefit of the creditors of the Trust; and neither any Holder, the Trust Companies nor the Trust shall take any
action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in this
paragraph;

	Each Trust Company and the Trust shall give prompt notice to the Lessee, the Holders and the Agent if such
party's principal place of business or chief executive office, or the office where the records concerning the accounts or contract
rights relating to the Property are kept, shall cease to be located at the addresses set forth in Section 14.2 hereof, or if any such
party shall change its name; and

	The Trust shall take or refrain from taking such actions and grant or refrain from granting such approvals
with respect to the Operative Agreements and/or relating to the Property in each case as directed in writing by the Agent (until such
time as the Loans are paid in full, and then by the Majority Holders); provided, however, that notwithstanding the foregoing
provisions of this subparagraph (h) the Trust Companies, the Trust, the Agent, the Lenders and the Holders each acknowledge, covenant
and agree that neither the Trust nor the Agent shall act or refrain from acting, regarding each Unanimous Vote Matter, until such
party has received the approval of each Lender and each Holder affected by such matter.

	Lessee Covenants, Consent and Acknowledgment.

	Closure of Wells.  Lessee shall, at its sole cost and expense, on or before
February 28, 2001, cause all monitoring wells located on the Property, as more specifically identified in the Environmental Audit, to
be closed in full compliance with all Environmental Laws, and any state, federal and local rules, regulations or ordinances
applicable thereto.

	Information.  The Lessee will deliver to the Lessor and the
Agent:

	as soon as available and in any event within one hundred (100) days after the end of each fiscal year of the
Lessee a statement of financial position of the Lessee and its consolidated subsidiaries as of the end of such fiscal year and the
related consolidated statements of income, shareholder's equity and cash flows for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by independent accountants of nationally recognized
standing, together with an Officer's Compliance Certificate, in the form attached as Exhibit E hereto (the "Compliance
Certificate"), from the chief financial officer of the Lessee substantially containing a computation of, and showing compliance
with, each of the financial ratios and restrictions contained in this Section 9.3 and stating that no Default or Event of Default has
occurred or is continuing or, if any Default or Event of Default has occurred and is continuing, describing it and the steps, if any,
being taken to cure it;

	as soon as available and in any event within fifty (50) days after the end of each of the first three (3)
quarters of each fiscal year of the Lessee, an unaudited consolidated statement of financial position of the Lessee as of  the end of
such period and the related consolidated statements of income, shareholders' equity and cash flows for such period and for the
portion of the Lessee's fiscal year ended at the end of such period, setting forth in each case in comparative form the figures for
the same period in the previous fiscal year, together with a Compliance Certificate of the chief financial officer of the Lessee or
other officer responsible for the financial affairs of the Lessee containing a computation of, and showing compliance with, each of
the financial ratios and restrictions contained in this Section 9.3 and stating that no Default or Event of Default has occurred or
is continuing or, if any Default or Event of Default has occurred and is continuing, describing it and the steps, if any, being taken
to cure it;

	promptly after the filing thereof, if applicable, copies of all reports on Forms 10-K, 10-Q and 8-K (or their
equivalents), prospectuses and registration statements which the Lessee shall have filed with the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as amended; 

	if and when any member of the ERISA Group (1) gives or is required to give notice to the PBGC of any
"reportable event" (as defined in Section 4043 of ERISA) with respect to any Plan which might constitute grounds for a
termination of such Plan under Title IV or ERISA, or knows that the plan administrator of any Plan has given or is required to give
notice of any such reportable event, a copy of the notice of such reportable event given or required to be given to the PBGC; (2)
receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in
reorganization, is insolvent or has been terminated, a copy of such notice; (3) receives notice from the PBGC under Title IV of ERISA
of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee
to administer any Plan, a copy of such notice; (4) applies for a waiver of the minimum funding standard under Section 412 of the
Code, a copy of such application; (5) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such
notice and other information filed with the PBGC; (6) gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a
copy of such notice; or (7) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit
Arrangement or makes any amendment to any Plan or Benefit Arrangement which has resulted or could result in the imposition of a Lien
or the posting of a bond or other security, a certificate of the chief financial officer or the chief accounting officer of the
Lessee setting forth details as to such occurrence and action, if any, which the Lessee or applicable member of the ERISA Group is
required or proposes to take; 

	promptly after the occurrence of any Default or Event of Default, notice thereof in writing by an authorized
officer of the Lessee, together with information regarding the steps, if any, being taken or proposed to be taken to cure it;

	at least ten (10) Business Days prior to the expiration of any policy of insurance required by Section 14 of
the Lease, confirmation of renewal; 

	within three days of the end of each month during which Lessee is required to maintain Pledged Collateral
pursuant to Section 5.4(a)(ii) hereof, a written  certification of the Chief Financial Officer of Lessee as to Lessee's Cash Balance
at the end of such month; and 

	from time to time such additional information regarding the Lessee or the Property as the Lessor or the Agent,
at the request of the Lessor or any Lender, may reasonably request.

	Compliance with Laws.  The Lessee will, and will cause its Subsidiaries
to, comply in all material respects with all applicable laws, ordinances, rules, regulations, orders and requirements of governmental
authorities (including, without limitation, Environmental Laws and ERISA and the rules and regulations thereunder) except where the
necessity of compliance therewith is contested in good faith by appropriate proceedings and such contest is not reasonably likely to
result in a Material Adverse Effect.

	Further Assurances.  The Lessee shall take or cause to be taken from time
to time all action necessary to assure during the Term that title to the Property remains in the Lessor as contemplated by Section
12.1 of the Lease, that the Lessor holds a perfected Lien on the Property securing the Lease Balance as contemplated by Section 7.1
of the Lease, and that the Lessor and the Agent for the benefit of the Lenders hold a perfected Lien on the Pledged Collateral
securing the Obligations.

	Existence; Franchises; Businesses.  Except as otherwise expressly
permitted in this Agreement, the Lessee shall, and shall cause each Subsidiary to (i) maintain in full force and effect its separate
existence and all rights, licenses, leases and franchises reasonably necessary to the conduct of its business, and (ii) continue
doing business as a whole in the substantially the same types of business in which they were engaged on the Closing Date.

	Books and Records.  The Lessee shall, and shall cause each Subsidiary to,
maintain its books and records in accordance with GAAP, and permit the Lessor and the Agent to make or cause to be made inspections
and audits of any books, records and papers of the Lessee and its Subsidiaries and to make extracts therefrom at all such reasonable
times and as often as any such Person may reasonably require.

	Fundamental Changes.  The Lessee shall not, nor shall it permit any
Subsidiary to, enter into any merger, consolidation or amalgamation, where it is not the surviving entity, or liquidate, wind-up or
dissolve itself (or suffer any liquidation or dissolution); convey, sell, assign, transfer or otherwise dispose of all or
substantially all of the property, business or assets of the Lessee and its Subsidiaries; provided, however, that if (i) at
least thirty (30) days prior to the consummation of such transaction the Lessee shall have furnished to the Lessor and the Agent an
Officer's Certificate of the chief financial officer of the Lessee that no Default or Event of Default shall occur after giving
effect thereto, and (ii) no Default or Event of Default shall have occurred before or after giving effect thereto,
then:

	any Subsidiary of the Lessee may be merged or consolidated with or into the Lessee (provided, however,
that the Lessee shall be the continuing or surviving corporation) or with or into any one or more wholly-owned Subsidiaries of
the Lessee (provided, however, that the wholly-owned Subsidiary or Subsidiaries shall be the continuing or surviving
corporation); and

	any wholly-owned Subsidiary may sell, lease, transfer or otherwise dispose of any or all of its assets (upon
voluntary liquidation or otherwise) to the Lessee or any other wholly-owned Subsidiary of the Lessee.

	Liens.  The Lessee shall not create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, except for:

	any Lien existing on property of the Lessee on the Funding Date securing Indebtedness outstanding on such
date;

	any Lien created under any Operative Agreement;

	Liens for taxes, fees, assessments or other governmental charges which are not delinquent or remain payable
without penalty;

	carrier's, warehousemen's, mechanics', landlords', materialmen's, repairmen's or other similar Liens arising
in the ordinary course of business which are not delinquent or remain payable without penalty;

	Liens (other than any Lien imposed by ERISA) consisting of pledges or deposits required in the ordinary course
of business in connection with workers' compensation, unemployment insurance and other social security legislation; 

	Liens on the property of the Lessee securing (A) the non-delinquent performance of bids, trade contracts
(other than for borrowed money), leases, statutory obligations, (B) contingent obligations on surety and appeal bonds, and (C) other
non-delinquent obligations of a like nature; in each case, incurred in the ordinary course of business;

	Liens arising solely by virtue of any statutory or common law provisions relating to banker's liens, rights of
set-off or similar rights and remedies as to deposit accounts or other funds maintained with a depository institution; provided,
however, that (A) such deposit account is not a dedicated cash collateral account and is not subject to restrictions against
access by the Lessee in excess of those set forth by regulations promulgated by the Board, and (B) such deposit account is not
intended by the Lessee or any Subsidiary to provide collateral to the depository institution; 

	Permitted Liens; and

	Liens otherwise permitted under the Credit Facility.

	Change in Name or Location.  The Lessee hereby covenants and agrees that it shall give prompt notice to
the Agent if the Lessee's principal place of business or chief executive office, or the office where the records concerning the
accounts or contract rights relating to Property are kept, shall cease to be located at 4650 Cushing Parkway, Fremont, California
94538, or if it shall change its name.

	Financial Covenants of Lessee.  The Lessee and its Subsidiaries shall maintain, on a consolidated
basis, all of the following financial covenants.  The Lessee agrees and understands that (except as expressly provided herein) all
covenants under this Section 9.3(j) shall be subject to compliance as measured as of the last day of each Fiscal
Quarter.

	Minimum Quick Ratio.  Maintain a Quick Ratio of not less than 1.35 to 1.0.

	Maximum Senior Indebtedness Ratio.  Maintain a Senior Indebtedness Ratio of not greater than 0.25
to 1.0.

	Minimum Tangible Net Worth.  Maintain Tangible Net Worth on any date of determination (such date to be
referred to herein as a "determination date") which occurs after December 27, 1998 (such date to be referred to
herein as the "base date") to be less than the sum on such determination date of the following:  (A)
$350,000,000; plus (B) Seventy-five percent (75%) of the sum of the Lessee's consolidated quarterly net income (ignoring any
quarterly losses) for each quarter ending after the base date through and including the quarter ending immediately prior to the
determination date; plus (C) one hundred percent (100%) of the Net Issuance Proceeds of all Equity Securities issued by the
Lessee and its Subsidiaries during the period commencing on the base date and ending on the determination date; plus (D) one
hundred percent (100%) of the aggregate decrease in the total liabilities of the Lessee and its Subsidiaries resulting from
conversions of convertible Subordinated Indebtedness or other liabilities of the Lessee and its Subsidiaries into Equity Securities
of the Lessee and its Subsidiaries during the period commencing on the base date and ending on the determination date.

	Minimum Debt Service Coverage Ratio. Maintain a Debt Service Coverage Ratio of not less than 3.00 to
1.00

	Agent to Act for Lessor.  The Lessor hereby instructs Lessee and Lessee hereby acknowledges and agrees,
that until such time as the Loans and the Holder Advances are paid in full and the Liens evidenced by the Pledge Agreement, Security
Agreement and the Deed of Trust have been released (i) any and all Rent (excluding Excepted Payments which shall be payable to each
Holder or other Person as appropriate) and any and all other amounts of any kind or type under any of the Operative Agreements due
and owing or payable to any Person shall instead be paid directly to the Agent (excluding Excepted Payments which shall be payable to
each Holder or other Person as appropriate) or as the Agent may direct from time to time for allocation and distribution in
accordance with the procedures set forth in Section 13 hereof, (ii) all rights of the Lessor under the Lease shall be exercised by
the Agent and (iii) Lessee shall cause all notices, certificates, financial statements, communications and other information which
are delivered, or are required to be delivered, to the Lessor, to also to be delivered at the same time to the Agent.

	Appraisals.  The Lessee hereby covenants and agrees to cause an Appraisal or reappraisal (in form and
substance satisfactory to the Agent and from an appraiser selected by the Agent) to be issued respecting the Property as requested by
the Agent from time to time (i) at each and every time as such shall be required to satisfy any regulatory requirements imposed on
the Agent, the Lessor, the Trust Company, any Lender and/or any Holder and (ii) after the occurrence of an Event of Default.

	Supplemental Rent.  The Lessee hereby covenants and agrees that, except for amounts payable as Basic
Rent, any and all payment obligations owing from time to time under the Operative Agreements by any Person to the Agent, any Lender,
any Holder or any other Person shall (without further action) be deemed to be Supplemental Rent obligations payable by the Lessee.
Without limitation, such obligations of the Lessee shall include the Supplement Rent obligations pursuant to Section 3.3 of the
Lease, arrangement fees, administrative fees, participation fees, commitment fees, unused fees, prepayment penalties, breakage costs,
indemnities, trustee fees and transaction expenses incurred by the parties hereto in connection with the transactions contemplated by
the Operative Agreements.

	Appointment of the Agent by the Lenders, the Holders and the Trust.  The
Holders hereby appoint the Agent to act as collateral agent for the Holders in connection with the Lien granted by the Security
Documents to secure the Holder Amount and all other amounts due and owing to the Holders.  The Lenders and the Holders acknowledge
and agree and direct that the rights and remedies of the beneficiaries of the Lien of the Security Documents shall be exercised by
the Agent on behalf of the Lenders and the Holders as directed from time to time by the Majority Secured Parties or, pursuant to
Section 14.4, all of the Lenders and the Holders, as the case may be; provided, in all cases, the Agent shall allocate payments and
other amounts received in accordance with Section 13.  The Agent is further appointed to provide notices under the Operative
Agreements on behalf of the Trust (as determined by the Agent, in its reasonable discretion), to receive notices under the Operative
Agreements on behalf of the Trust and (subject to Section 10.2) to take such other action under the Operative Agreements on behalf of
the Trust as the Agent shall determine in its reasonable discretion from time to time.  The Agent hereby accepts such appointments.
For purposes hereof, the provisions of Section 7 of the Credit Agreement, together with such other terms and provisions of the Credit
Agreement and the other Operative Agreements as required for the full interpretation and operation of Section 7 of the Credit
Agreement are hereby incorporated by reference as if restated herein for the mutual benefit of the Agent and each Holder as if each
Holder were a Lender thereunder.  Outstanding Holder Advances and outstanding Loans shall each be taken into account for purposes of
determining Majority Secured Parties.  Further, the Agent shall be entitled to take such action on behalf of the Trust as is
delegated to the Agent under any Operative Agreement (whether express or implied) as may be reasonably incidental thereto.  The
parties hereto hereby agree to the provisions contained in this Section 9.4.  Any appointment of a successor agent under Section 7.9
of the Credit Agreement shall also be effective as an appointment of a successor agent for purposes of this Section 9.4.

	Release of Properties, etc.  If the Lessee shall at any time purchase any
Property pursuant to the Lease or if any Property shall be sold in accordance with Article XXII of the Lease, then, upon satisfaction
by the Trust of its obligation to prepay the Loans, and Holder Advances in respect of such Property and all other amounts owing to
the Lenders and the Holders under the Operative Agreements, the Agent is hereby authorized and directed to release such Property from
the Liens created by the Security Documents to the extent of its interest therein.  In addition, upon the termination of the
Commitments and the Holder Commitments and the payment in full of the Loans, the Holder Advances and all other amounts owing by the
Trust and the Lessee hereunder or under any other Operative Agreement the Agent is hereby authorized and directed to release such
Property from the Liens created by the Security Documents to the extent of its interest therein.  Upon request of the Trust following
any such release, the Agent shall, at the sole cost and expense of the Lessee, execute and deliver to the Trust and the Lessee such
documents as the Trust or the Lessee shall reasonably request to evidence such release.

	Guaranty.

	Guaranty of Payment and Performance.  Guarantor hereby unconditionally guarantees to each of Agent,
Holders and Lenders (each a "Financing Party") the prompt payment and performance of the Company Obligations in full when
due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) or when such is otherwise to be performed;
provided, notwithstanding the foregoing, the obligations of the Guarantors under this Section 9.6 (i) shall not constitute a
direct guaranty of the indebtedness of the Borrower evidenced by the Notes but rather a guaranty of the Company Obligations arising
under the Operative Agreements, (ii) shall not increase the obligations due under the Lease, and (iii) shall, to the extent
paid or performed by Guarantor under this Section 9.6, offset and be fully credited against Lessee's obligations under the
Lease.  This Section 9.6 is a guaranty of payment and performance and not of collection and is a continuing guaranty and shall apply
to all Company Obligations whenever arising.  All rights granted to the Financing Parties under this Section 9.6 shall be subject to
the provisions of Section 9.4.

	Obligations Unconditional.  Guarantor agrees that the obligations of the
Guarantor hereunder are absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of
any of the Operative Agreements, or any other agreement or instrument referred to therein, or any substitution, release or exchange
of any other guarantee of or security for any of the Company Obligations, and, to the fullest extent permitted by applicable law,
irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a
surety, guarantor or co-obligor, it being the intent of this Section 9.6(b) that the obligations of the Guarantor hereunder shall be
absolute and unconditional under any and all circumstances.  Guarantor agrees that this Section 9.6 may be enforced by the Financing
Parties without the necessity at any time of resorting to or exhausting any other security or collateral and without the necessity at
any time of having recourse to the Notes, the Certificates or any other of the Operative Agreements or any collateral, if any,
hereafter securing the Company Obligations or otherwise and Guarantor hereby waives the right to require the Financing Parties to
proceed against the Lessee or any other Person (including without limitation a co-guarantor) or to require the Financing Parties to
pursue any other remedy or enforce any other right.  Guarantor further agrees that it hereby waives any and all right of subrogation,
indemnity, reimbursement or contribution against the Lessee or any other guarantor of the Company Obligations for amounts paid under
this Section 9.6 until such time as the Loans, Holder Advances, accrued but unpaid interest, accrued but unpaid Holder Yield and all
other amounts owing under the Operative Agreements have been paid in full.  Without limiting the generality of the waiver provisions
of this Section 9.6, Guarantor hereby waives any rights to require the Financing Parties to proceed against the Lessee or any co-
guarantor or to require Lessor to pursue any other remedy or enforce any other right.  Guarantor further agrees that nothing
contained herein shall prevent the Financing Parties from suing on any Operative Agreement or foreclosing any security interest in or
Lien on any collateral, if any, securing the Company Obligations or from exercising any other rights available to it under any
Operative Agreement, or any other instrument of security, if any, and the exercise of any of the aforesaid rights and the completion
of any foreclosure proceedings shall not constitute a discharge of Guarantor's obligations hereunder; it being the purpose and intent
of Guarantor that its obligations hereunder shall be absolute, independent and unconditional under any and all circumstances;
provided that any amounts due under this Section 9.6 which are paid to or for the benefit of any Financing Party shall reduce the
Company Obligations by a corresponding amount (unless required to be rescinded at a later date).  Guarantor waives any and all notice
of the creation, renewal, extension or accrual of any of the Company Obligations and notice of or proof of reliance by any Financing
Party upon this Section 9.6 or acceptance of this Section 9.6.  The Company Obligations shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Section 9.6.  All dealings between
the Lessee and the Guarantor, on the one hand, and the Financing Parties, on the other hand, likewise shall be conclusively presumed
to have been had or consummated in reliance upon this Section 9.6.

	Modifications.  Guarantor agrees that (a) all or any part of the security
now or hereafter held for the Company Obligations, if any, may be exchanged, compromised or surrendered from time to time; (b) no
Financing Party shall have any obligation to protect, perfect, secure or insure any such security interests, liens or encumbrances
now or hereafter held, if any, for the Company Obligations or the properties subject thereto; (c) the time or place of payment of the
Company Obligations may be changed or extended, in whole or in part, to a time certain or otherwise, and may be renewed or
accelerated, in whole or in part; (d) Lessee and any other party liable for payment under the Operative Agreements may be granted
indulgences generally; (e) any of the provisions of the Notes, the Certificates or any of the other Operative Agreements may be
modified, amended or waived; (f) any party (including any co-guarantor) liable for the payment thereof may be granted indulgences or
be released; and (g) any deposit balance for the credit of the Lessee or any other party liable for the payment of the Company
Obligations or liable upon any security therefor may be released, in whole or in part, at, before or after the due date of the
Company Obligations, all without notice to or further assent by Guarantor, which shall remain bound thereon, notwithstanding any such
exchange, compromise, surrender, extension, renewal, acceleration, modification, indulgence or release.

	Waiver of Rights.  Guarantor expressly waives to the fullest extent
permitted by applicable law:  (a) notice of acceptance of this Section 9.6 by any Financing Party and of all extensions of credit or
other Advances to the Lessor or the Lessee by the Lenders pursuant to the terms of the Operative Agreements; (b) presentment and
demand for payment or performance of any of the Company Obligations; (c) protest and notice of dishonor or of default with respect to
the Company Obligations or with respect to any security therefor; (d) notice of any Financing Party obtaining, amending, substituting
for, releasing, waiving or modifying any security interest, lien or encumbrance, if any, hereafter securing the Company Obligations,
or any Financing Party's subordinating, compromising, discharging or releasing such security interests, liens or encumbrances, if
any; and (e) all other notices to which Guarantor might otherwise be entitled.  Without limiting the foregoing, Guarantor expressly
waives, to the fullest extent permitted by applicable law, any defense to the enforcement of its obligations hereunder, and any
rights and benefits which might otherwise be available to Guarantor, under New York law and California Civil Code Sections 2809,
2810, 2819, 2822(a), 2839, 2845, 2848, 2849, 2850, 2899 and 3433.  The Guarantor waives all rights and defenses that the Guarantor
may have because the Company Obligations may be secured by real property.  This means, among other things: (1) the creditor may
collect from the Guarantor without first foreclosing on any real or personal property collateral pledged by the debtor; (2) if a
creditor forecloses on any real property collateral pledged by the debtor: (A) the amount of the debt may be reduced only by the
price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price; (B) the
creditor may collect from the guarantor even if the creditor, by foreclosing on the real property collateral, has destroyed any right
the guarantor may have to collect from the debtor.  This is an unconditional and irrevocable waiver of any rights and defenses the
Guarantor may have because the Company Obligations may be secured by real property.  These rights and defenses include, but are not
limited to, any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the California Code of Civil Procedure.
Notwithstanding anything to the contrary herein, Guarantor's payments hereunder shall be due five (5) Business Days after written
demand by the Agent for such payment (unless the Company Obligations are automatically accelerated pursuant to the applicable
provisions of the Operative Agreements in which case the Guarantor's payments shall be automatically due).

	Reinstatement.  The obligations of the Guarantors under this Section 9.6
shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Person in respect of
the Company Obligations is rescinded or must be otherwise restored by any holder of any of the Company Obligations, whether as a
result of any proceedings in bankruptcy or reorganization or otherwise, and Guarantor agrees that it will indemnify each Financing
Party on demand for all reasonable costs and expenses (including, without limitation, reasonable fees of counsel) incurred by any
Financing Party in connection with such rescission or restoration, including without limitation any such costs and expenses incurred
in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any
bankruptcy, insolvency or similar law.

	Payment of Amounts to the Agent.  Each Financing Party hereby instructs
Guarantor, and Guarantor hereby acknowledges and agrees, that, until such time as the Loans and the Holder Advances are paid in full
and the Liens evidenced by the Pledge Agreement, Security Agreement and the Deed of Trust have been released, any and all Rent
(excluding Excepted Payments which shall be payable to each Holder or other Person as appropriate) and any and all other amounts of
any kind or type under any of the Operative Agreements due and owing or payable to any Person shall instead be paid directly to the
Agent (excluding Excepted Payments which shall be payable to each Holder or other Person as appropriate) or as the Agent may direct
from time to time for allocation and distribution in accordance with the procedures set forth in Section 13 hereof.

	CREDIT AGREEMENT AND TRUST AGREEMENT.

	Lessee's Credit Agreement Rights.  Notwithstanding anything to the contrary
contained in the Credit Agreement, the Agent, the Lenders, the Holders, and the Trust hereby agree that, prior to the occurrence and
continuation of any Default or Event of Default, the Lessee shall have the following rights:

	the right to designate an account to which amounts funded under the Operative Agreements shall be credited
pursuant to Section 2.3 of the Credit Agreement;

	the right to terminate or reduce the Commitments pursuant to Section 2.4 of the Credit Agreement;

	the right to exercise the conversion and continuation options pursuant to Section 2.6 of the Credit Agreement;

	the right to approve any successor agent pursuant to Section 7.9 of the Credit Agreement; and

	the right to consent to any assignment by a Lender pursuant to the Credit Agreement, which consent shall not
be unreasonably withheld or delayed.

	Lessee's Trust Agreement Rights.  Notwithstanding anything to the contrary
contained in the Trust Agreement, the Trust and the Holders hereby agree that, prior to the occurrence and continuation of any
Default or Event of Default, the Lessee shall have the following rights:

	the right to exercise the removal options contained in Article IX of the Trust Agreement; provided, however,
that no removal of either Trust Company and appointment of a successor trustee pursuant to such Article IX of the Trust Agreement
shall be made without the prior written consent (not to be unreasonably withheld or delayed) of the Holders; and

	the right to consent to any assignment by a Holder pursuant to the Trust Agreement, which consent shall not be
unreasonably withheld or delayed.

	TRANSFER OF INTEREST.

	Restrictions on Transfer.  Subject to Lessee's rights under Section 10 above,
each Lender may participate, assign or transfer all or a portion of its interest hereunder and under the other Operative Agreements
in accordance with Section 9 of the Credit Agreement.  The Holders may, directly or indirectly, assign, convey or otherwise transfer
any of their right, title or interest in or to the Trust Estate or the Trust Agreement and in accordance with the terms of Section
11.15 of the Trust Agreement.  The Lessor may, subject to the rights of the Lessee under the Lease and the other Operative Agreements
and to the Lien of the applicable Security Documents but only with the prior written consent of the Agent (which consent may be
withheld by the Agent in its sole discretion) and (provided, no Default or Event of Default has occurred and is continuing) with the
consent of the Lessee, directly or indirectly, assign, convey, appoint an agent with respect to enforcement of, or otherwise transfer
any of its right, title or interest in or to the Property, the Lease, the Trust Agreement and the other Operative Agreements
(including without limitation any right to indemnification thereunder), or any other document relating to the Property or any
interest in the Property as provided in the Trust Agreement and the Lease.  The provisions of the immediately preceding sentence
shall not apply to the obligations of the Lessor to transfer the Property to the Lessee or a third party purchaser pursuant to
Article XXII of the Lease upon payment for such Property in accordance with the terms and conditions of the Lease.  Lessee may not
assign any of the Operative Agreements or any of its rights or obligations thereunder or with respect to the Property in whole or in
part to any Person without the prior written consent of the Agent, the Lenders, the Holders and the Lessor.  Any participation,
assignment or transfer effected in breach of this Section 11 shall be void.

	Effect of Transfer.  From and after any transfer effected in accordance
with this Section 11, the transferor shall be released, to the extent of such transfer, from its liability hereunder and under the
other documents to which it is a party in respect of obligations to be performed on or after the date of such transfer; provided,
however, that any transferor shall remain liable hereunder and under such other documents to the extent that the transferee shall not
have assumed the obligations of the transferor thereunder.  Upon any transfer by the Lessor, a Holder or a Lender as above provided,
any such transferee shall assume the obligations of the Lessor, the Holder or the Lender, as the case may be, and shall be deemed the
"Lessor," or a "Holder" or "Lender," as the case may be, for all purposes of such documents and each
reference herein to the transferor shall thereafter be deemed a reference to such transferee for all purposes, except as provided in
the preceding sentence.  Notwithstanding any transfer of all or a portion of the transferor's interest as provided in this Section
11, the transferor shall be entitled to all benefits accrued and all rights vested prior to such transfer including without
limitation rights to indemnification under any such document.

	INDEMNIFICATION.

	General Indemnity.  The Lessee, whether or not any of the transactions
contemplated hereby shall be consummated, hereby assumes liability for and agrees to defend, indemnify and hold harmless each
Indemnified Person on an After Tax Basis from and against any Claims which may be imposed on, incurred by or asserted against an
Indemnified Person in any way relating to or arising or alleged to arise out of (a) the financing, refinancing, ground lease,
purchase, acceptance, rejection, ownership, design, construction, delivery, acceptance, nondelivery, leasing, subleasing, possession,
use, operation, repair, maintenance, modification, transportation, condition, operation, sale, return, repossession (whether by
summary proceedings or otherwise), or any other disposition of the Property or any part thereof, (b) any latent or other defects in
any property whether or not discoverable by an Indemnified Person or the Lessee; (c) a violation of any Legal Requirement or
Requirement of Law, including any violation of Environmental Laws, the Release, presence or use of Hazardous Substances on, at, under
or emanating from the Property or other loss of or damage relating to the Property; (d) the Operative Agreements, or any transaction
contemplated thereby; (e) any breach by the Lessee of any of its representations or warranties under the Operative Agreements or
failure by the Lessee to perform or observe any covenant or agreement to be performed by it under any of the Operative Agreements;
(f) the invalidation of Lessee's insurance policies related to the Property; (g) personal injury, death or property damage relating
to the Property, including Claims based on strict liability in tort; (h) the existence of any Lien on or with respect to the
Property, the Improvements, the Equipment, any Basic Rent or Supplemental Rent, title thereto, or any interest therein, including any
Liens which arise out of the possession, use, occupancy, construction, repair or rebuilding of the Property or by reason of labor or
materials furnished or claimed to have been furnished to the Lessee, the Lessor, or any of their contractors or agents or by reason
of the financing of the Property or any personally or equipment purchased or leased by the Lessee or Improvements or Modifications
constructed by the Lessee, except Lessor Liens and Liens in favor of the Agent or the Lessor; and (i) the Transactions contemplated
hereby or by any other Operative Agreement, in respect of the application of Parts 4 and 5 of Subtitle B of Title I of ERISA and any
prohibited transaction described in Section 4975(c) of the Code; but in any event excluding (x) Claims to the extent such Claims
arise solely out of events occurring after the expiration of the Term and after the Lessee's discharge of all its obligations under
the Lease and the other Operative Agreements or (y) as to any Indemnified Person, any Claim to the extent resulting from the willful
misconduct or gross negligence of such Indemnified Person.  The Lessee shall be entitled to control, and shall assume full
responsibility for the defense of, any Claim; provided, however, that any Indemnified Person named in such Claim may retain
separate counsel reasonably acceptable to the Lessee at the expense of the Lessee in the event of and to the extent of an actual
conflict.  The Lessee and each Indemnified Person agree to give each other prompt written notice of any Claim hereby indemnified
against but the giving of any such notice by an Indemnified Person shall not be a condition to the Lessee's obligations under this
Section 12.1, except to the extent failure to give such notice materially prejudices the Lessee's rights hereunder.  After an
Indemnified Person has been fully indemnified for a Claim pursuant to this Section 12.1, and so long as no Event of Default shall
have occurred and be continuing, the Lessee shall be subrogated to any right of such Indemnified Person with respect to such Claim.
None of the Indemnified Persons shall settle a Claim without the consent of the Lessee, which consent shall not be unreasonably
withheld or delayed.

	General Impositions Indemnity. 

	Indemnification.  The Lessee shall pay and assume liability for, and does
hereby agree to indemnify, protect and defend the Property and all Indemnified Persons, and hold them harmless against, all
Impositions on an After Tax Basis. 

	Payments.

	Subject to the terms of Section 12.2(f), the Lessee shall pay or cause to be paid all Impositions
directly to the taxing authorities where feasible and otherwise to the Indemnified Person, as appropriate, and the Lessee shall at
its own expense, upon such Indemnified Person's reasonable request, furnish to such Indemnified Person copies of official receipts or
other satisfactory proof evidencing such payment.

	In the case of Impositions for which no contest is conducted pursuant to Section 12.2(f) and which the Lessee
pays directly to the taxing authorities, the Lessee shall pay such Impositions thirty (30) days prior to the latest time permitted by
the relevant taxing authority for timely payment.  In the case of Impositions for which the Lessee reimburses an Indemnified Person,
the Lessee shall do so within twenty (20) days after receipt by the Lessee of demand by such Indemnified Person describing in
reasonable detail the nature of the Imposition and the basis for the demand (including the computation of the amount payable), but in
no event shall the Lessee be required to pay such reimbursement prior to thirty (30) days before the latest time permitted by the
relevant taxing authority for timely payment.  In the case of Impositions for which a contest is conducted pursuant to Section
12.2(f), the Lessee shall pay such Impositions or reimburse such Indemnified Person for such Impositions, to the extent not
previously paid or reimbursed pursuant to subsection (a), thirty (30) days prior to the latest time permitted by the relevant taxing
authority for timely payment after conclusion of all contests under Section 12.2(f).

	Impositions imposed with respect to the Property for a billing period during which the Lease expires or
terminates (unless a Renewal Term is to apply or the Lessee has exercised the Purchase Option or the Maturity Date Purchase Option
with respect to the Property) shall be adjusted and prorated on a daily basis between the Lessee and the Lessor, whether or not such
Imposition is imposed before or after such expiration or termination and each party shall pay or reimburse the other for each party's
pro rata share thereof.

	At the Lessee's request, the amount of any indemnification payment by the Lessee pursuant to subsection (a)
shall be verified and certified by an independent public accounting firm mutually acceptable to the Lessee and the Indemnified
Person.  The fees and expenses of such independent public accounting firm shall be paid by the Lessee unless such verification shall
result in an adjustment in the Lessee's favor of 10% or more of the payment as computed by the Indemnified Person, in which case such
fee shall be paid by the Indemnified Person.

	Reports and Returns.  (i) The Lessee shall be responsible for preparing
and filing any real and personal property or ad valorem tax returns in respect of the Property.  In case any other report or tax
return shall be required to be made with respect to any obligations of the Lessee under or arising out of subsection (a) and of which
the Lessee has knowledge or should have knowledge, the Lessee, at its sole cost and expense, shall notify the relevant Indemnified
Person of such requirement and (except if such Indemnified Person notifies the Lessee that such Indemnified Person intends to file
such report or return) (A) to the extent required or permitted by and consistent with applicable law, make and file in its own name
such return, statement or report; and (B) in the case of any other such return, statement or report required to be made in the name
of such Indemnified Person, advise such Indemnified Person of such fact and prepare such return, statement or report for filing by
such Indemnified Person or, where such return, statement or report shall be required to reflect items in addition to any obligations
of the Lessee under or arising out of subsection (a), provide such Indemnified Person at the Lessee's expense with information
sufficient to permit such return, statement or report to be properly made with respect to any obligations of the Lessee under or
arising out of subsection (a).  Such Indemnified Person shall, upon the Lessee's request and at the Lessee's expense, provide any
data maintained by such Indemnified Person (and not otherwise available to or within the control of the Lessee) with respect to the
Property which the Lessee may reasonably require to prepare any required tax returns or reports.  Each Indemnified Person agrees to
use commercially reasonable efforts to send to the Lessee a copy of any written request or other notice that the Indemnified Person
receives with respect to any reports or returns required to be filed with respect to the Property or the transactions contemplated by
the Operative Agreements, it being understood that no Indemnified Person shall have any liability for failure to provide such
copies.

	Income Inclusions.  If as a result of the payment or reimbursement by the
Lessee of any expenses of any Lessor or the payment of any Transaction Expenses incurred in connection with the transactions
contemplated by the Operative Agreements, the Lessor or any Lender shall suffer a net increase in any federal, state or local income
tax liability, the Lessee shall indemnify such Persons (without duplication of any indemnification required by subsection (a)) on an
After Tax Basis for the amount of such increase.  The calculation of any such net increase shall take into account any current or
future tax savings realized or reasonably expected to be realized by such person in respect thereof, as well as any interest,
penalties and additions to tax payable by the Lessor, the Lender or such Affiliate, in respect thereof.

	Withholding Taxes.  As between the Lessee on one hand, and any Financing
Party on the other hand, the Lessee shall be responsible for, and, subject to the provisions of Sections 12.2(g) and (h), the Lessee
shall indemnify and hold harmless the Financing Parties (without duplication of any indemnification required by subsection (a)) on an
After Tax Basis against, any obligation for United States or foreign withholding taxes imposed in respect of payments with respect to
the Lender Advances or the Lessor Contribution or with respect to Rent payments under the Lease or payments of the Termination Value
or the Purchase Option Price (and, if any Financing Party receives a demand for such payment from any taxing authority, the Lessee
shall discharge such demand on behalf of such Financing Party). 

	Contests of Impositions.

	If a written claim is made against any Indemnified Person or if any proceeding shall be commenced
against such Indemnified Person (including a written notice of such proceeding), for any Impositions, such Indemnified Person shall
promptly notify the Lessee in writing and shall not take action with respect to such claim or proceeding without the consent of the
Lessee for thirty (30) days after the receipt of such notice by the Lessee; provided, however, that, in the case of any such
claim or proceeding, if action shall be required by law or regulation to be taken prior to the end of such 30-day period, such
Indemnified Person shall, in such notice to the Lessee, inform the Lessee of such shorter period, and no action shall be taken with
respect to such claim or proceeding without the consent of the Lessee before two days before the end of such shorter period;
provided, further, that the failure of such Indemnified Person to give the notices referred to in this sentence shall not diminish
the Lessee's obligation hereunder except to the extent such failure precludes the Lessee from contesting all or part of such
claim.

	If, within thirty (30) days of receipt after such notice from the Indemnified Person (or such shorter period
as the Indemnified Person has notified the Lessee as required by law or regulation for the Indemnified Person to commence such
contest), the Lessee shall request in writing that such Indemnified Person contest such Imposition, the Indemnified Person shall, at
the expense of the Lessee, in good faith conduct and control such contest (including, without limitation, by pursuit of appeals)
relating to the validity, applicability or amount of such Impositions (provided, however, that (A) if such contest involves a
tax other than a tax on net income and can be pursued independently from any other proceeding involving a tax liability of such
Indemnified Person, the Indemnified Person, at the Lessee's request, shall allow the Lessee to conduct and control such contest and
(B) in the case of any contest, the Indemnified Person may request the Lessee to conduct and control such contest) by, in the sole
discretion of the Person conducting and controlling such contest, (1) resisting payment thereof, (2) not paying the same except under
protest, if protest is necessary and proper, or (3) if the payment be made, using reasonable efforts to obtain a refund thereof in
appropriate administrative and judicial proceedings.

	The party controlling any contest shall consult in good faith with the non-controlling party and shall keep
the non-controlling party reasonably informed as to the conduct of such contest; provided, that all decisions ultimately shall
be made in the sole discretion of the controlling party.  The parties agree that an Indemnified Person may at any time decline to
take further action with respect to the contest of any Imposition and may settle such contest if such Indemnified Person shall waive
its rights to any indemnity from the Lessee that otherwise would be payable in respect of such claim and shall pay to the Lessee any
amount previously paid or advanced by the Lessee pursuant to this Section 12.2 by way of indemnification or advance for the payment
of an Imposition other than expenses of such contest.

	Notwithstanding the foregoing provisions of this Section 12.2, an Indemnified Person shall not be required to
take any action and the Lessee shall not be permitted to contest any Impositions in its own name or that of the Indemnified Person
unless (A) the Lessee shall have agreed to pay in writing and shall pay to such Indemnified Person on demand and on an After Tax
Basis all reasonable costs, losses and expenses that such Indemnified Person actually incurs in connection with contesting such
Impositions, including, without limitation, all reasonable legal, accounting and investigatory fees and disbursements and the
contested claim if ultimately required to be paid, (B) in the case of a claim that must be pursued in the name of an Indemnified
Person (or an Affiliate thereof), the amount of the potential indemnity exceeds $50,000, (C) the Indemnified Person shall have
reasonably determined that the action to be taken will not result in any material danger of sale, forfeiture or loss of the Property
or the Pledged Collateral, or any part thereof or interest therein, will not interfere with the payment of Rent, and will not result
in risk of criminal liability, (D) if such contest shall involve the payment of the Imposition prior to the contest, the Lessee shall
provide to the Indemnified Person an interest-free advance in an amount equal to the Imposition that the Indemnified Person is
required to pay (with no additional net after-tax cost to such Indemnified Person), (E) the Lessee shall have provided to such
Indemnified Person an opinion of independent tax counsel selected by the Lessee and reasonably satisfactory to the Indemnified Person
stating that a reasonable basis exists to contest such claim (or, in the case of an appeal of an adverse determination, an opinion of
such counsel to the effect that the position asserted in such appeal will more likely than not prevail), and (F) no Event of Default
shall have occurred and be continuing.  In no event shall an Indemnified Person be required to appeal an adverse judicial
determination to the United States Supreme Court.  In addition, an Indemnified Person shall not be required to contest any claim in
its name (or that of an Affiliate) if the subject matter thereof shall be of a continuing nature and shall have previously been
decided adversely by a court of competent jurisdiction pursuant to the contest provisions of this Section 12.2, unless there shall
have been a change in law (or interpretation thereof) and the Indemnified Person shall have received, at the Lessee's expense, an
opinion of independent tax counsel selected by the Indemnified Person and reasonably acceptable to the Lessee stating that as a
result of such change in law (or interpretation thereof), it is more likely than not that the Indemnified Person will prevail in such
contest.

	Documentation of Withholding Status.  Each Financing Party (or any
successor thereto or transferee thereof) that is organized under the laws of a jurisdiction outside of the United States of America
shall:

	on or before the date it becomes a party to any Operative Agreement, deliver to the Lessee any certificates,
documents or other evidence that shall be required by the Code or Treasury Regulations issued pursuant thereto to establish its
exemption from United States Federal withholding requirements, including (A) two (2) valid, duly completed, original copies of
Internal Revenue Service Form W-8BEN or successor applicable form, properly and duly executed, certifying in each case that such
party is entitled to receive payments pursuant to the Operative Agreements without deduction or withholding of United States Federal
income taxes, and (B) a valid, duly completed, original copy of Internal Revenue Service Form W-8 or Form W-9 or applicable successor
form, properly and duly executed, certifying that such party is entitled to an exemption from United States of America backup
withholding tax; and

	or before the date that any such form described above expires or becomes obsolete, or after the occurrence of
any event requiring a change in the most recent such form previously delivered to the Lessee, deliver to the Lessee two (2) further
valid, duly  completed, original copies of any such form or certification, properly and duly executed.

	Limitation on Tax Indemnification.  The Lessee shall not be required to
indemnify any Indemnified Person, or to pay any increased amounts to any Indemnified Person or tax authority with respect to any
Impositions pursuant to this Section 12.2 to the extent that (i) any obligation to withhold, deduct, or pay amounts with respect to
Tax existed on the date such Indemnified Person became a party to any Operative Agreement (and, in such case, the Lessee may deduct
and withhold such Tax from payments pursuant to the Operative Agreements), or (ii) such Indemnified Person fails to comply with the
provisions of Section 12.2(g) (and, in such case, the Lessee may deduct and withhold all Taxes required by law as a result of such
noncompliance from payments made by the Lessee pursuant to the Operative Agreements).  With respect to any transferee of any
Financing Party (including a transfer resulting from any change in the designation of the lending office of a Financing Party), the
transferee shall not be entitled to any greater payment or indemnification under this Section 12.2 than the transferor would have
been entitled to.

	LIBOR Lending Unlawful.  Notwithstanding any other provision herein, if
the adoption of or any change in any Requirement of Law or in the interpretation or application thereof occurring after the Closing
Date shall make it unlawful for any Financing Party to make, continue or maintain LIBOR Loans or LIBOR Holder Advances as
contemplated by the Operative Agreements, (a) such Financing Party shall promptly give written notice of such circumstances to the
Lessee, the Lessor and the Agent (which notice shall be withdrawn whenever such circumstances no longer exist), (b) such Financing
Party shall undertake reasonable efforts to propose a money rate comparable to LIBOR (the "LIBOR Alternative"), (c)
the commitment of such Lender or Holder, as the case may be, hereunder to make, continue or maintain LIBOR Loans or LIBOR Holder
Advances shall forthwith be canceled and, until such time as it shall no longer be unlawful for such Financing Party to make,
continue or maintain LIBOR Loans or LIBOR Holder Advances, such Financing Party shall then have a commitment only to make or maintain
Loans or the Holder Advances based on ABR or the LIBOR Alternative, if any, when a LIBOR Loan or LIBOR Holder Advance is requested
and (d) such Financing Party's Loans and Holder Advances then outstanding as LIBOR Loans or LIBOR Holder Advances, if any, shall be
converted automatically to Loans or Holder Advances based on ABR or the LIBOR Alternative, if any, on the respective last days of the
then current Interest Periods with respect to such Loans and Holder Advances or within such earlier period as required by law.  If
any such conversion of LIBOR Loans or LIBOR Holder Advances occurs on a day which is not the last day of the then current Interest
Period with respect thereto, the Lessee shall pay to such Financing Party such amounts, if any, as may be required pursuant to
Section 12.6.  In any such case, interest and principal (if any) shall be payable contemporaneously with the related LIBOR Loans or
LIBOR Holder Advances of the other Financing Parties.

	Deposits Unavailable.  If any of the Financing Parties shall have
determined that:

	Dollar deposits in the relevant amount and for the relevant Interest Period are not available to the Financing
Party in its relevant market; or

	by reason of circumstances affecting the Financing Party's relevant market, adequate means do not exist for
ascertaining the interest rate or Yield, as the case may be, applicable to such Financing Party's LIBOR Loans or LIBOR Holder
Advances;

then, upon notice from such Financing Party to the Lessee and the other Financing Parties, (x) the
obligations of the Financing Parties to make or continue any Loans or the Holder Advances as, or to convert any Loans or the Holder
Advance into, LIBOR Loans or LIBOR Holder Advances shall be suspended, and (y) each outstanding LIBOR Loan or LIBOR Holder Advance
shall automatically convert into a Loan or Holder Advance based on ABR or the LIBOR Alternative, if any, on the last day of the
current Interest Period applicable thereto.

	Increased Costs, etc.  

	If the adoption of or any change in a Requirement of Law or in the interpretation or application thereof
applicable to any Financing Party, or compliance by any Financing Party with any request or directive (whether or not having the
force of law) from any central bank or other Governmental Authority, in each case made subsequent to the Closing Date (or, if later,
the date on which such Financing Party becomes a Financing Party):

	shall subject such Financing Party to any tax of any kind whatsoever with respect to any LIBOR Loans or LIBOR
Holder Advances made, continued or maintained by it or its obligation to make, continue or maintain LIBOR Loans or LIBOR Holder
Advances, or change the basis of taxation of payments to such Financing Party in respect thereof; or

	shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement
against assets held by, deposits or other liabilities in or for the account of, Loans and the Holder Advances, advances or other
extensions of credit by, or any other acquisition of funds by, any office of such Financing Party which is not otherwise included in
the determination of the Adjusted LIBOR hereunder; or

	shall impose on such Financing Party any other condition (excluding any Tax of any kind) whatsoever in
connection with the Operative Agreements; 

and the result of any of the foregoing is to increase the cost to such Financing Party, by an amount which such
Financing Party reasonably deems to be material, of making, continuing or maintaining LIBOR Advances or LIBOR Holder Advances or to
reduce any amount receivable hereunder in respect thereof, then, in any such case, upon notice to the Lessee from such Financing
Party, through the Lessor or the Agent, in accordance herewith, the Lessee shall pay such Financing Party any additional amounts
necessary to compensate such Financing Party for such increased cost or reduced amount receivable; provided, that, in any such
case, the Lessee may elect to convert the LIBOR Loans or LIBOR Holder Advances made by such Financing Party hereunder to Loans or
Holder Advances based on ABR or the LIBOR Alternative, if any, by giving the Lessor and the Agent at least one (1) Business
Day's notice of such election, in which case the Lessee shall promptly pay to such Financing Party, upon demand, without duplication,
such amounts, if any, as may be required pursuant to Section 12.6.  All payments required by this Section 12.5 shall be made by the
Lessee within ten (10) Business Days after demand by the affected Financing Party. The Lessee shall not be obligated to
reimburse any Financing Party for any increased cost or reduced return incurred more than one hundred eighty (180) days after the
date that such Financing Party receives actual notice of such increased cost or reduced return unless such Financing Party gives
notice thereof to the Lessee in accordance with this Section 12.5 during such one hundred eighty (180) day period. If any Financing
Party becomes entitled to claim any additional amounts pursuant to this subsection, it shall provide prompt notice thereof to the
Lessee, through the Lessor and Agent, certifying (x) that one of the events described in this clause (a) has occurred and describing
in reasonable detail the nature of such event, (y) as to the increased cost or reduced amount resulting from such event, and (z) as
to the additional amount demanded by such Financing Party and a reasonably detailed explanation of the calculation thereof (including
the method by which such Financing Party allocated such amounts to the Lessee).  Such a certificate as to any additional amounts
payable pursuant to this clause submitted by such Financing Party, through the Agent and the Lessor, to the Lessee shall be
conclusive in the absence of manifest error.  This covenant shall survive the termination of this Agreement and the payment of the
Loans and the Holder Advance and all other amounts payable hereunder.

	Each Financing Party shall use its reasonable efforts to reduce or eliminate any claim for compensation
pursuant to this Section 12.5, including, without limitation, a change in the office of such Financing Party at which its obligations
related to this Agreement are maintained if such change will avoid the need for or reduce the amount of, such compensation and will
not, in the reasonable judgment of such Financing Party, be otherwise disadvantageous to it.  If any such claim for compensation
shall not be eliminated or waived, the Lessee shall have the right to replace the affected Financing Party with a new financial
institution that shall succeed to the rights of such Financing Party under this Participation Agreement; provided, that such
Financing Party shall not be replaced hereunder until it has been paid in full such claim and all other amounts owed to it
hereunder.

	Indemnifications Provided by the Lessor in Favor of the Other Indemnified
Persons.  To the extent the Indemnity Provider is not obligated to indemnify each Indemnified Person with respect to the
various matters described in this Section 12, the Lessor shall provide such indemnities (but only to the extent amounts sufficient to
pay such indemnity are funded by the Lenders and the Holders) in favor of each Indemnified Person in accordance with this Section
12.6 and shall pay all such amounts owed with respect to this Section 12.6 with amounts advanced by the Lenders and the Holders (a)
to the extent, but only to the extent, amounts are available therefor with respect to the Available Commitments and the Available
Holder Commitments and (b) unless each Lender and each Holder has declined in writing to fund such amount.  Notwithstanding any other
provision in any other Operative Agreement to the contrary, all amounts so advanced shall be deemed added to the Property
Cost.

Whether or not any of the transactions contemplated hereby shall be consummated, the Trust hereby assumes
liability for and agrees to defend, indemnify and hold harmless each Indemnified Person on an After Tax Basis from and against any
Claims, which may be imposed on, incurred by or asserted against an Indemnified Person by any third party, including without
limitation Claims arising from the negligence of an Indemnified Person (but not to the extent such Claims arise from the gross
negligence or willful misconduct of such Indemnified Person itself, as determined by a court of competent jurisdiction, as opposed to
gross negligence or willful misconduct imputed to such Indemnified Person or breach of such Indemnified Person's obligations under
this Agreement, the Lease or any other Operative Agreement) in any way relating to or arising or alleged to arise out of the
execution, delivery, performance or enforcement of this Agreement, the Lease or any other Operative Agreement or on or with respect
to any Property or any component thereof, including without limitation Claims in any way relating to or arising or alleged to arise
out of the matters set forth in Sections 12.1(a) through 12.1(i).

The Trust shall pay and assume liability for, and does hereby agree to indemnify, protect and defend each Property
and all Indemnified Persons, and hold them harmless against, all Impositions on an After Tax Basis, and all payments pursuant to the
Operative Agreements shall be made free and clear of and without deduction for any and all present and future Impositions.
Notwithstanding anything to the contrary in this paragraph, the Excluded Taxes shall be excluded from the indemnity provisions
afforded by this paragraph.

	DISTRIBUTION

	Basic Rent.  Each payment of Basic Rent (and any payment of interest on overdue installments of
Basic Rent) received by the Lessor shall be distributed by the Agent first to the Lenders pro rata for application to the
interest then due and payable on the Loans until such amounts are paid in full, and then to the Lessor in an amount equal to the
Holder Yield then due and payable under the Operative Agreements.

	Purchase Payments by the Lessee.  Any payment received by the Lessor as a
result of:

	the purchase of the Property in connection with the exercise of the Purchase Option or Maturity Date Purchase
Option under Section 20.1 or 20.2 of the Lease; or

	compliance with the obligation to purchase the Property in accordance with Section 17.2 of the Lease;
or

	the payment of the Termination Value in accordance with Section 16.1 of the Lease;

shall be distributed by the Lessor to the Lessor and the Lenders in the following order of priority:

First, to the Lenders, pro rata, to pay the Lease Balance Debt; and

Second, to the Lessor to pay the Lease Balance Equity.

	Payment of Lease Balance Debt.  In accordance with Section 21.1 of the
Lease upon the exercise of the remarketing option, the payment of the Maximum Residual Guarantee Amount received by the Lessor shall
be distributed to the Agent on behalf of the Lenders for application to pay in full the Lease Balance Debt of each Lender, pro
rata among the Lenders without priority of one over the other in the proportion that the Lease Balance Debt of each such Lender
bears to the aggregate Lease Balance Debt of all Lenders.

	Sales Proceeds of Remarketing of Property.  Any payments received by the
Lessor as proceeds from the sale of the Property sold pursuant to the exercise of the remarketing option pursuant to
Article 21 of the Lease, together with any payment made as a result of an appraisal pursuant to Section 21.3 of the
Lease, shall be distributed by the Lessor in the funds so received in the following order of priority:

First, to cover the costs and expenses of such sale;

Second, to the extent not previously paid as required by Section 13.3 hereof, an amount equal to the amount of
the Lease Balance Debt remaining unpaid shall be distributed to the Lenders, pro rata, as set forth in Section 13.3;

Third, an amount equal to the aggregate Lease Balance Equity shall be distributed to the Holders, pro
rata; and

Fourth, the balance, if any, shall be promptly paid to the Lessee.

	Supplemental Rent.  All payments of Supplemental Rent received by the
Lessor (excluding any amounts payable pursuant to the preceding provisions of this Section 13) shall be distributed promptly by the
Lessor upon receipt thereof to the Persons entitled thereto pursuant to the Operative Agreements.

	Distribution of Payments after Event of Default.  

	During the continuance of an Event of Default and subject to clause (b) below, all proceeds received by the
Lessor from the sale of the Property shall be distributed by the Lessor in the following order of priority:

First, so much of such payment or amount as shall be required to pay or reimburse the Lessor and the Agent for
any tax, fees, expense, indemnification or other loss incurred by the Lessor or the Agent (to the extent incurred in connection with
any duties as the Lessor or as the Agent), shall be distributed to the Lessor for its own account and that of the Agent in accordance
with the amount of such payment or amount payable to such Person;

Second, so much of such payments or amounts as shall be required to pay the Financing Parties and the Lessor
the amounts payable to them pursuant to any expense reimbursement or indemnification provisions of the Operative Agreements shall be
distributed to each such Financing Party and the Lessor without priority of one over the other in accordance with the amount of such
payment or payments payable to each such Person;

Third, to the Lenders for application to pay in full the Lease Balance Debt, pro rata among the Lenders
without priority of one over the other in the proportion that the Lease Balance Debt of each such Lender bears to the aggregate Lease
Balance Debt of all Lenders and, in the case where the amounts so distributed shall be insufficient to pay in full as aforesaid, then
pro rata among the Lenders without priority of one over the other in the proportion that the Lease Balance Debt of each such
Lender bears to the aggregate Lease Balance Debt of all Lenders;

Fourth, to the Lessor in an amount equal to the aggregate Lease Balance Equity for application to pay in full
the Lease Balance Equity; and

Fifth, the balance, if any, of such payment or amounts remaining thereafter shall be promptly distributed to,
or as directed by, the Lessee.

	All payments received and amounts realized by the Lessor in connection with any Casualty or Condemnation
during the continuance of an Event of Default shall be distributed by the Lessor as follows:

	in the event that the Lessor elects to pay all or a portion of such amounts to the Lessee for the repair of
damage caused by such Casualty or Condemnation, then such amounts shall be distributed to the Lessee; and

	in the event that the Lessor elects to apply all or a portion of such amounts to the purchase price of the
Property, then such amounts shall be distributed in accordance with clause (a) above.

	Other Payments.

	Except as otherwise provided in Sections 13.1, 13.2, 13.6 and clause (b) below, any payment
received by the Lessor for which no provision as to the application thereof is made in the Operative Agreements or elsewhere in this
Section 13 (including any balance remaining after the application in full of amounts to satisfy any expressed provision) shall be
distributed pro rata among the Lenders and the Lessor for the Holders without priority of one over the other, in the
proportion that the Lease Balances of each, as applicable, bears to the aggregate of all the Lease Balances, as applicable.

	Except as otherwise provided in Sections 13.1, 13.2 and 13.6, all payments received and amounts realized by
the Lessor under the Lease or otherwise with respect to the Property to the extent received or realized at any time after the
indefeasible payment in full of the Lease Balances of all of the Lenders and the Holders and any other amounts due and owing to the
Lenders or the Holders, shall be distributed forthwith by the Lessor, in the order of priority set forth in Section 13.6(a).

	Except as otherwise provided in Sections 13.1 and 13.2, any payment received by the Lessor for which
provisions as to the application thereof is made in an Operative Agreement but not elsewhere in this Section 13 shall be distributed
forthwith by the Lessor to the Person and for the purpose for which such payment was made in accordance with the terms of such
Operative Agreement.

	Casualty and Condemnation Amounts.  Subject to Section 13.6(b), any
amounts payable to and received by the Lessor as a result of a Casualty or Condemnation pursuant to Section 15.1 of the Lease shall
be distributed as follows:

	all amounts payable to and received by the Lessee for the repair of damage caused by such Casualty or
Condemnation in accordance with Section 15.1(a) of the Lease shall be distributed to the Lessee; and

	all amounts that are to be applied to the purchase price of the Property in accordance with Article 16 of the
Lease shall be distributed by the Lessor upon receipt thereof to the Lenders and the Lessor in the following order of
priority:

First, to the Lenders, pro rata, to pay the Lease Balance Debt; and

Second, to the Lessor to pay the Lease Balance Equity.

	Order of Application.  To the extent any payment made to any Lender or the
Lessor for any Holder pursuant to Sections 13.2, 13.3, 13.4, 13.6 or 13.7 is insufficient to pay in full the Lease Balance of such
Lender or Holder, then each such payment shall first be applied to accrued interest and then to principal on the Loans or the Holder
Advances, as applicable.

	MISCELLANEOUS.

	Survival of Agreements.  The representations, warranties, covenants,
indemnities and agreements of the parties provided for in the Operative Agreements, and the parties' obligations under any and all
thereof, shall survive the execution and delivery of this Agreement, the transfer of any Property to the Trust, the acquisition of
the Property, any disposition of any interest of the Trust in the Property or any interest of the Holders in the Trust Estate, the
payment of the Notes and any disposition thereof and shall be and continue in effect notwithstanding any investigation made by any
party and the fact that any party may waive compliance with any of the other terms, provisions or conditions of any of the Operative
Agreements.  Except as otherwise expressly set forth herein or in other Operative Agreements, the indemnities of the parties provided
for in the Operative Agreements shall survive the expiration or termination of any thereof.

	Notices.  All notices required or permitted to be given under any
Operative Agreement shall be in writing.  Notices may be served by certified or registered mail, postage paid with return receipt
requested; by private courier, prepaid; by telex, facsimile, or other telecommunication device capable of transmitting or creating a
written record; or personally.  Mailed notices shall be deemed delivered five (5) days after mailing, properly addressed.  Couriered
notices shall be deemed delivered when delivered as addressed, or if the addressee refuses delivery, when presented for delivery
notwithstanding such refusal.  Telex or telecommunicated notices shall be deemed delivered when receipt is either confirmed by
confirming transmission equipment or acknowledged by the addressee or its office.  Personal delivery shall be effective when
accomplished.  Unless a party changes its address by giving notice to the other party as provided herein, notices shall be delivered
to the parties at the following addresses:

If to the Lessee or the Guarantor, to such entity at the following address:

Lam Research Corporation

4650 Cushing Parkway

Fremont, CA  94538

Attention:  Craig Garber, Treasurer

Telephone:  (510) 572-1875

Facsimile:   (510) 572-1586

If to the Trust, to it at the following address:

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, DE 19890-0001

Attention: Corporate Trust Officer

Telephone: (302) 651-8856

Facsimile:  (302) 651-8882

If to Wilmington Trust Company, to it at the following address:

Rodney Square North

1100 North Market Street

Wilmington, DE  19890-0001

Attention: Corporate Trust Administration

Telephone: (302) 651-8856

Facsimile:  (302) 651-8882

If to Wilmington Trust FSB, to it at the following address:

100 Wilshire Boulevard, Suite 1230

Santa Monica, CA  90401

Attention: Daniel Reser, Vice President

Telephone: (310) 899-7022

Facsimile:  (310) 899-7005

If to the Holder, to it at the following address:

Scotiabanc Inc.

600 Peachtree Street, Suite 2700

Atlanta, GA 30308

Attention:  William Brown, Managing Director

Telephone:  (404) 877-1501 

Facsimile:   (404) 888-8998

If to the Agent, to it at the following address:

The Bank of Nova Scotia

580 California Street, Suite 2100

San Francisco, CA 94104

Attention:  Chris Osborn

Telephone:  (415) 986-1100

Facsimile:   (415) 397-0791

If to any Lender, to it at the address set forth for such Lender in Schedule 2.1 of the Credit Agreement.

From time to time any party may designate additional parties and/or another address for notice purposes by notice
to each of the other parties hereto.  Each notice hereunder shall be effective upon receipt or refusal thereof.

	Counterparts.  This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

	Terminations, Amendments, Waivers, Etc.; Unanimous Vote Matters.  Each
Operative Agreement may be terminated, amended, supplemented, waived or modified only by an instrument in writing signed by, subject
to Article X of the Trust Agreement regarding termination of the Trust Agreement, the Majority Secured Parties and the Lessee (to the
extent Lessee is a party to such Operative Agreement, and to the extent Lessee is not a party to such Operative Agreement but is
expressly accorded rights in a particular provision therein, such provision may be terminated, amended, supplemented, waived or
modified only by an instrument in writing signed by the Majority Secured Parties and Lessee).  In addition, the Unanimous Vote
Matters shall require the consent of each Lender and each Holder affected by such matter.  

Notwithstanding the foregoing, no such termination, amendment, supplement, waiver or modification shall, without
the consent of the Agent and, to the extent affected thereby, each Lender and each Holder (collectively, the "Unanimous Vote
Matters") (i) reduce the amount of any Note or any Certificate, extend the scheduled date of maturity of any Note, extend the
scheduled Expiration Date, extend any payment date of any Note or Certificate, reduce the stated rate of interest payable on any
Note, reduce the stated Holder Yield payable on any Certificate (other than as a result of waiving the applicability of any post-
default increase in interest rates or Holder Yields), modify the priority of or release any Lien in favor of the Agent under any
Security Document, subordinate any obligation owed to any Lender or Holder, elect to decline the funding of any Transaction Expense
with respect to Sections 8.1(a) or 8.1(b), elect to decline the funding of any indemnity payment by the Trust with respect to Section
12.8 or increase the amount or extend the expiration date of any Lender's Commitment or the Holder Commitment of any Holder; or (ii)
terminate, amend, supplement, waive or modify any provision of this Section 14.4 or reduce the percentages specified in the
definitions of Majority Lenders, Majority Holders or Majority Secured Parties, or consent to the assignment or transfer by the Trust
of any of its rights and obligations under any Credit Document or release a material portion of the Collateral (except in accordance
with Section 9.5) or release Lessee from its obligations under any Operative Agreement or otherwise alter any payment obligations of
Lessee to the Lessor or any Financing Party under the Operative Agreements; or (iii) terminate, amend, supplement, waive or modify
any provision of Section 9.1 of the Credit Agreement (which shall also require the consent of the Agent).  Any such termination,
amendment, supplement, waiver or modification shall apply equally to each of the Lenders and the Holders and shall be binding upon
all the parties to this Agreement.  In the case of any waiver, each party to this Agreement shall be restored to its former position
and rights under the Operative Agreements, and any Default or Event of Default waived shall be deemed to be cured and not continuing;
but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon.

If at a time when the conditions precedent set forth in the Operative Agreements to any Loan are, in the opinion
of the Agent, satisfied, any Lender shall fail to fulfill its obligations to make such Loan (any such Lender, a "Defaulting
Lender") then, for so long as such failure shall continue, the Defaulting Lender shall (unless the Lessee and the Majority
Lenders, determined as if the Defaulting Lender were not a "Lender," shall otherwise consent in writing) be deemed for all
purposes relating to terminations, amendments, supplements, waivers or modifications under the Operative Agreements to have no Loans,
shall not be treated as a "Lender" when performing the computation of Majority Lenders or Majority Secured Parties, and
shall have no rights under this Section 14.4; provided that any action taken pursuant to the second paragraph of this Section 14.4
shall not be effective as against the Defaulting Lender.

If at a time when the conditions precedent set forth in the Operative Agreements to any Holder Advance are, in the
opinion of the Majority Holders, satisfied, any Holder shall fail to fulfill its obligations to make such Holder Advance (any such
Holder, a "Defaulting Holder") then, for so long as such failure shall continue, the Defaulting Holder shall (unless the
Lessee and the Majority Holders, determined as if the Defaulting Holder were not a "Holder," shall otherwise consent in
writing) be deemed for all purposes relating to terminations, amendments, supplements, waivers or modifications under the Operative
Agreements to have no Holder Advances, shall not be treated as a "Holder" when performing the computation of Majority
Holders or Majority Secured Parties, and shall have no rights under this Section 14.4; provided that any action taken pursuant to the
second paragraph of this Section 14.4 shall not be effective as against the Defaulting Holder.

	Headings, etc.  The Table of Contents and headings of the various Articles
and Sections of this Agreement are for convenience of reference only and shall not modify, define, expand or limit any of the terms
or provisions hereof.

	Parties in Interest.  Except as expressly provided herein, none of the
provisions of this Agreement are intended for the benefit of any Person except the parties hereto.

	GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL;
VENUE.

	THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED,
INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  Any legal action or proceeding with respect to this
Agreement or any other Operative Agreement may be brought in the courts of the State of New York in the City of New York or of the
United States for the Southern District of New York, and, by execution and delivery of this Agreement, each of the parties to this
Agreement hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the nonexclusive
jurisdiction of such courts.  Each of the parties to this Agreement further irrevocably consents to the service of process out of any
of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to it at the address set out for notices pursuant to Section 14.2, such service to become effective three (3) days
after such mailing.  Nothing herein shall affect the right of any party to serve process in any other manner permitted by Law or to
commence legal proceedings or to otherwise proceed against any party in any other jurisdiction.

	EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY, TO THE FULLEST EXTENT ALLOWED BY APPLICABLE LAW,
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY OTHER OPERATIVE AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

	Each of the parties to this Agreement hereby irrevocably waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Agreement or any
other Operative Agreement brought in the courts referred to in subsection (a) above and hereby further irrevocably waives and agrees
not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an
inconvenient forum.

	The Agent on behalf of the Lenders and the Holders shall have the right to proceed in any court of proper
jurisdiction or by self-help to exercise or prosecute the following remedies, as applicable (i) all rights to foreclose against any
real or personal property or other security by exercising a power of sale granted under any Operative Agreement or under applicable
Law or by judicial foreclosure and sale, including without limitation a proceeding to confirm the sale; (ii) all rights of self-help
including without limitation peaceful occupation of real property and collection of rents, set-off and peaceful possession of
personal property; (iii) obtaining provisional or ancillary remedies including without limitation injunctive relief, sequestration,
garnishment, attachment, appointment of receiver and filing an involuntary bankruptcy proceeding; and (iv) when applicable, a
judgment by confession of judgment.  Preservation of these remedies does not limit the power of an arbitrator to grant similar
remedies that may be requested by a party in a Dispute.

The parties to this Agreement and/or any other Operative Agreement agree that they shall not have a remedy of
special, punitive or exemplary damages against any other party in any Dispute and hereby waive any right or claim to special,
punitive or exemplary damages they have now or which may arise in the future in connection with any Dispute.

	Severability.  Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

	Liability Limited.

	The Lenders, the Agent, the Lessee, the Trust Companies, the Trust and the Holders each acknowledge and
agree that the Trust Companies shall not be liable or accountable under any circumstances whatsoever for or on account of any
statements, representations, warranties, covenants or obligations stated to be those of the Trust, Borrower or Lessor except for
their own gross negligence or willful misconduct and as otherwise expressly provided herein or in the other Operative
Agreements.

	Anything to the contrary contained in this Agreement, the Credit Agreement, the Notes or in any other
Operative Agreement notwithstanding, no Exculpated Person shall be personally liable in any respect for any liability or obligation
arising hereunder or in any other Operative Agreement including without limitation the payment of the principal of, or interest on,
the Notes, or for monetary damages for the breach of performance of any of the covenants contained in the Credit Agreement, the
Notes, this Agreement, the Security Documents or any of the other Operative Agreements.  The Lenders, the Holders and the Agent agree
that, in the event any remedies under any Operative Agreement are pursued, neither the Lenders, the Holders nor the Agent shall have
any recourse against any Exculpated Person, for any deficiency, loss or Claim for monetary damages or otherwise resulting therefrom
and recourse shall be had solely and exclusively against the Trust Estate (excluding Excepted Payments) and the Lessee and the
Guarantor (with respect to the Lessee's obligations under the Operative Agreements and the Guarantor's obligations under Section 9.6
hereof); but nothing contained herein shall be taken to prevent recourse against or the enforcement of remedies against the Trust
Estate (excluding Excepted Payments) in respect of any and all liabilities, obligations and undertakings contained herein and/or in
any other Operative Agreement.  Notwithstanding the provisions of this Section, nothing in any Operative Agreement shall:  (i)
constitute a waiver, release or discharge of any indebtedness or obligation evidenced by the Notes and/or the Certificates arising
under any Operative Agreement or secured by any Operative Agreement, but the same shall continue until paid or discharged; (ii)
relieve any Exculpated Person from liability and responsibility for (but only to the extent of the damages arising by reason of):
active waste knowingly committed by any Exculpated Person with respect to any Property, any fraud, gross negligence or willful
misconduct on the part of any Exculpated Person; (iii) relieve any Exculpated Person from liability and responsibility for (but only
to the extent of the moneys misappropriated, misapplied or not turned over) (A) except for Excepted Payments, misappropriation or
misapplication by the Lessor (i.e., application in a manner contrary to any of the Operative Agreements) of any insurance proceeds or
condemnation award paid or delivered to the Lessor by any Person other than the Agent, or (B) except for Excepted Payments, any rent
or other income received by the Lessor from Lessee that is not turned over to the Agent; or (iv) affect or in any way limit the
Agent's rights and remedies under any Operative Agreement with respect to the Rents and rights and powers of the Agent under the
Operative Agreements or to obtain a judgment against the Lessee's interest in the Properties or the Agent's rights and powers to
obtain a judgment against the Lessor or the Lessee or Guarantor (provided, that no deficiency judgment or other money judgment shall
be enforced against any Exculpated Person except to the extent of the Lessor's interest in the Trust Estate (excluding Excepted
Payments) or to the extent the Lessor may be liable as otherwise contemplated in clauses (ii) and (iii) of this Section
14.9(b)).

	Rights of the Lessee.  If at any time all obligations (i) of the Borrower
under the Credit Agreement, the Security Documents and the other Operative Agreements and (ii) of the Lessee under the Operative
Agreements have in each case been satisfied or discharged in full, then the Lessee shall be entitled to (a) terminate the Lease and
the Guaranty and (b) receive all amounts then held under the Operative Agreements and all proceeds with respect to the Property.
Upon the termination of the Lease and Guaranty pursuant to the foregoing clause (a), the Trust shall transfer to the Lessee all of
its right, title and interest free and clear of the Lien of the Lease, the Lien of the Security Documents and all Lessor Liens in and
to the Property then subject to the Lease and any amounts or proceeds referred to in the foregoing clause (b) shall be paid over to
the Lessee.

	Further Assurances.  The parties hereto shall promptly cause to be taken,
executed, acknowledged or delivered, at the sole expense of the Lessee, all such further acts, conveyances, documents and assurances
as the other parties may from time to time reasonably request in order to carry out and effectuate the intent and purposes of this
Participation Agreement, the other Operative Agreements and the transactions contemplated hereby and thereby (including without
limitation the preparation, execution and filing of any and all Uniform Commercial Code financing statements, filings of the Deed of
Trust and other filings or registrations which the parties hereto may from time to time request to be filed or effected).  The
Lessee, at its own expense and without need of any prior request from any other party, shall take such action as may be necessary
(including without limitation any action specified in the preceding sentence), or (if the Trust shall so request) as so requested, in
order to maintain and protect all security interests provided for hereunder or under any other Operative Agreement.  In addition, in
connection with the sale or other disposition of any Property or any portion thereof, the Lessee agrees to execute such instruments
of conveyance as may be reasonably required in connection therewith.

	Financial Reporting/Tax Characterization.  Lessee agrees to obtain advice
from its own accountants and tax counsel regarding the financial reporting treatment and the tax characterization of the transactions
described in the Operative Agreements.  Lessee further agrees that Lessee shall not rely upon any statement of any Financing Party or
any of their respective Affiliates and/or Subsidiaries regarding any such financial reporting treatment and/or tax
characterization.

	Successors and Assigns.  This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

	RENEWALS.

	Extensions of Maturity Date and Expiration Date.  So long as the Lessee has not elected the
remarketing option, and no Default or Event of Default shall then exist, the Lessee may, not earlier than one (1) year after the
Closing Date and not later than one hundred eighty (180) days prior to the Maturity Date, direct a written request to the Lessor and
the Agent that the Expiration Date then in effect under the Lease be extended on terms mutually agreeable to Lessor, Agent, Lenders
and Lessee.  Any renewal term shall be effective only upon the consent of all Financing Parties and each Financing Party may grant or
deny its consent to a renewal of the Lease in its sole discretion. 

[The signature pages follow.]

In Witness Whereof, the parties hereto have caused this Agreement to be duly executed by their respective
officers thereunto duly authorized as of the day and year first above written.

Lessee and Guarantor:Lam Research Corporation, a Delaware corporation, as the Lessee and as the Guarantor

By:  /s/ Craig Garber

Name: Craig Garber

Title: Vice-President, Corporate Finance and

          Treasurer

Trust, Borrower and Lessor:Cushing 2000 Trust, a Delaware business trust

By:   Wilmington Trust FSB, a federal savings bank, not in its individual capacity but solely as trustee
By: /s/ Daniel M. Reser

Name: Daniel M. Reser

Title: Vice President

The Agent and the

Lenders:The Bank of Nova Scotia, as a Lender and as the Agent

By:  /s/ Chris Osborn

Name: Chris Osborn

Title: Director

Fleet National Bank, as a Lender 

By:  /s/ Wm Rurodl

Name: Wm Rurodl

Title:  MD

The 

Holders:Scotiabanc Inc., a Delaware corporation

By: /s/ W.J. Brown

Name: W.J. Brown

Title:  Managing Director

With respect to Section 7.1 of the

Participation Agreement only:

The Trust Companies:Wilmington Trust Company, a banking corporation organized under the laws of the
State of Delaware
By: /s/ Joseph B. Feil

Name: Joseph B. Feil

Title: Senior Financial Services Officer

Wilmington Trust FSB, a federal savings bank

By: /s/ Daniel M. Reser

Name: Daniel M. Reser

Title: Vice President

Schedule 2.1

HOLDER COMMITMENTS AND ADDRESSES

Name and Address of HolderAmount of Holder       Commitment

Scotiabanc Inc.    $1,200,000 - 100%

600 Peachtree Street, Suite 2700    

Atlanta, GA 30308

 

 

Schedule 6.4

AGENT'S PAYMENT ADDRESS

The Bank of Nova Scotia

One Liberty Plaza

New York, NY 10006

Telephone:  (404) 877-1500

Facsimile: (404) 888-8998

Attn:  Eudia Smith

Schedule 7.3

DISCLOSURE SCHEDULE

1.4650 Cushing:  Lessee recently completed various internal alterations to the building at 4650
Cushing Parkway.  The City of Fremont approved the alterations on the condition that the Lessee subsequently complete one or more
firewall or other fire suppression measures in order to remain in compliance with the City of Fremont Building Code.  The
alternatives Lessee is currently evaluating in order to meet City requirements are (1) installation of a deluge system over windows
in a firewall that currently exists in the building, (2) installation of drop shutters over such windows and an upgrade of certain
existing sprinkler lines, or (3) construction of another "functionally equivalent alternative method" of achieving the same
level of fire protection as would be provided by the traditional firewalls under the Building Code.

2.Varian:    In October 1993, Varian Associates, Inc. brought suit against Lessee in the United States
District Court, Northern District of California, seeking monetary damages and injunctive relief based on Lessee's alleged
infringement of certain patents held by Varian.  Lessee has asserted defenses of invalidity and unenforceability of the patents that
are the subject of the lawsuit, as well as non-infringement of such patents by Lessee's products.  A trial date was tentatively
scheduled in the action for March 2000; however, it is likely that that date will be re-scheduled pending the outcome of certain
motions under consideration by the Court.  While litigation is subject to inherent uncertainties and no assurance can be given that
Lessee will prevail in such litigation, or will obtain a license under such patents on commercially reasonable terms or at all if
such patents are held valid and infringed by Lessee's products, Lessee believes that the Varian lawsuit will not have a material
adverse effect on Lessee's consolidated financial statements.

3.Tegal Corporation:   On September 1, 1999, Tegal Corporation brought suit against Lessee in the
United States District Court for the Eastern District of Virginia, seeking monetary damages and injunctive relief based on Lessee's
alleged infringement of certain patents held by Tegal.  Tegal specifically identified Lessee's 4520XL and Exelan products as
infringing the asserted patents.  By recent court ruling, this action is being transferred to the United States District Court for
the Northern District of California.  Lessee has reviewed the asserted patents and believes they do not apply to Lessee equipment.
While litigation is subject to inherent uncertainties and no assurance can be given that Lessee will prevail in such litigation, or
will obtain a license under such patents on commercially reasonable terms or at all if such patents are held valid and infringed by
Lessee's products, Lessee believes that the Tegal lawsuit will not have a material adverse effect on Lessee's consolidated financial
statements. 

 

472718 v02.SF (@4R202!.DOC)

2/6/01 10:10 AM (19594.0012)

 

Distribution List

The Bank of Nova Scotia, as the Agent and a Lender

Fleet National Bank, as a Lender

Scotiabanc, Inc., as a Holder

The various banks and other lending institutions which are parties to the Participation Agreement from time to
time, as additional Holders

The various banks and other lending institutions which are parties to the Participation Agreement from time to
time, as additional Lenders

Lam Research Corporation, as the Lessee and the Guarantor

The Cushing 2000 Trust

Wilmington Trust Company

Wilmington Trust FSB

PARTICIPATION AGREEMENT

Dated as of December 6, 2000

among

LAM RESEARCH CORPORATION,

as the Lessee,

CUSHING 2000 TRUST,

as the Lessor,

WILMINGTON TRUST COMPANY,

WILMINGTON TRUST FSB,

THE VARIOUS BANKS AND OTHER LENDING INSTITUTIONS WHICH ARE PARTIES HERETO FROM TIME TO TIME, as the Holders,

THE VARIOUS BANKS AND OTHER LENDING INSTITUTIONS WHICH ARE PARTIES HERETO FROM TIME TO TIME, as the Lenders,

and

THE BANK OF NOVA SCOTIA,

as the Administrative Agent for the Lenders and the Holders

                              Table Of Contents

	
 

	
 
	
Page

	

SECTION 1.

	

THE LOANS

	

1

	

SECTION 2.

	

HOLDER ADVANCES

	

1

	

SECTION 3.

	

SUMMARY OF TRANSACTIONS

	

2

	

3.1

	
Operative Agreements

	

2

	

3.2

	
Property Purchase

	

2

	

3.3

	
Yield on Holder Certificates

	

3

	

SECTION 4.

	

THE CLOSING

	

4

	

SECTION 5.

	

FUNDING OF ADVANCES; PLEDGED COLLATERAL

	

4

	

5.1

	
General

	

4

	

5.2

	
Procedures for Funding

	

4

	

5.3

	
Allocation of Advances Between Land and Improvements

	

6

	

5.4

	
Pledged Collateral

	

6

	

SECTION 6.

	

CONDITIONS OF THE CLOSING AND ADVANCES

	

7

	

6.1

	
General Conditions to the Closing Date

	

7

	

6.2

	
Conditions to Lenders' and Holders' Obligations to Make Loans and Holder Advances

	

10

	

6.3

	
Restrictions on Liens

	

11

	

6.4

	
Payments

	

11

	

SECTION 7.

	

REPRESENTATIONS AND WARRANTIES

	

12

	

7.1

	
Representations and Warranties of the Trust Companies

	

12

	

7.2

	
Representations and Warranties of the Borrower

	

13

	

7.3

	
Representations and Warranties of the Lessee

	

15

	

7.4

	
Lease Requirements

	

19

	

SECTION 8.

	

PAYMENT OF CERTAIN EXPENSES

	

19

	

8.1

	
Transaction Expenses

	

19

	

8.2

	
Brokers' Fees and Stamp Taxes

	

20

	

8.3

	
Certain Fees and Expenses

	

20

	

8.4

	
Commitment Fee

	

20

	

8.5

	
Other Fees

	

20

	

SECTION 9.

	

OTHER COVENANTS AND AGREEMENTS

	

20

	

9.1

	
Cooperation with the Lessee

	

20

	

9.2

	
Covenants of the Trust Companies, the Trust, and the Holders

	

21

	

9.3

	
Lessee Covenants, Consent and Acknowledgment

	

22

	

9.4

	
Appointment of the Agent by the Lenders, the Holders and the Trust

	

27

	

9.5

	
Release of Properties, etc.

	

27

	

9.6

	
Guaranty

	

27

	

SECTION 10.

	

CREDIT AGREEMENT AND TRUST AGREEMENT

	

30

	

10.1

	
Lessee's Credit Agreement Rights

	

30

	

10.2

	
Lessee's Trust Agreement Rights

	

31

	

SECTION 11.

	

TRANSFER OF INTEREST

	

31

	

11.1

	
Restrictions on Transfer

	

31

	

11.2

	
Effect of Transfer

	

32

	

SECTION 12.

	

INDEMNIFICATION

	

32

	

12.1

	
General Indemnity

	

32

	

12.2

	
General Impositions Indemnity

	

33

	

12.3

	
LIBOR Lending Unlawful

	

37

	

12.4

	
Deposits Unavailable

	

38

	

12.5

	
Increased Costs, etc.

	

38

	

12.6

	
Indemnifications Provided by the Lessor in Favor of the Other Indemnified Persons

	

39

	

SECTION 13.

	

DISTRIBUTION

	

40

	

13.1

	
Basic Rent

	

40

	

13.2

	
Purchase Payments by the Lessee

	

40

	

13.3

	
Payment of Lease Balance Debt

	

41

	

13.4

	
Sales Proceeds of Remarketing of Property

	

41

	

13.5

	
Supplemental Rent

	

41

	

13.6

	
Distribution of Payments after Event of Default

	

41

	

13.7

	
Other Payments

	

42

	

13.8

	
Casualty and Condemnation Amounts

	

43

	

13.9

	
Order of Application

	

43

	

SECTION 14.

	

MISCELLANEOUS

	

43

	

14.1

	
Survival of Agreements

	

43

	

14.2

	
Notices

	

43

	

14.3

	
Counterparts

	

45

	

14.4

	
Terminations, Amendments, Waivers, Etc.; Unanimous Vote Matters

	

45

	

14.5

	
Headings, etc.

	

46

	

14.6

	
Parties in Interest

	

46

	

14.7

	
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial; Venue

	

46

	

14.8

	
Severability

	

47

	

14.9

	
Liability Limited

	

48

	

14.10

	
Rights of the Lessee

	

49

	

14.11

	
Further Assurances

	

49

	

14.12

	
Financial Reporting/Tax Characterization

	

49

	

14.13

	
Successors and Assigns

	

49

	

SECTION 15.

	

RENEWALS

	

49

	

15.1

	
Extensions of Maturity Date and Expiration Date

	

49

SCHEDULES

2.1 - Holder Commitments and Addresses

6.4 - Agent's Payment Address

7.3 - Disclosure Schedule

EXHIBITS

A - Form of Requisition

B - Form of Officer's Certificate - Section 6.1(h)

C - Form of Secretary's Certificate - Section 6.1(f), (g) and (j)

D- Form of Officer's Certificate - Section 6.1(s)

E - Form of Officer's Compliance Certificate - Section 9.3(b)(i)

Annex A - Rules of Usage and Definitions<PAGE>   1

                                                                    EXHIBIT 4.1

                          REGISTRATION RIGHTS AGREEMENT

        THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made and entered
into as of December 29, 2000, between RealNetworks, Inc., a Washington
corporation ("PARENT"), and Ji Shen (the "STOCKHOLDER REPRESENTATIVE"), as agent
for the stockholders listed on Schedule A hereto (the "STOCKHOLDERS") pursuant
to Section 7.4 of the Merger Agreement (as defined below) and the Stockholder
Certificates (as defined in the Merger Agreement) executed by the Stockholders.

                                    RECITALS

        A. Pursuant to an Agreement and Plan of Merger and Reorganization dated
as of December 29, 2000 by and among Parent, Aegisoft Acquisition Corp., a
Delaware corporation and wholly-owned subsidiary of Parent (the "MERGER SUB"),
Aegisoft Corp., a Delaware corporation (the "COMPANY"), the Stockholder
Representative and certain other parties thereto (the "MERGER AGREEMENT"), the
parties thereto have agreed, subject to the terms and conditions set forth
therein, to merge Merger Sub with and into the Company (the "MERGER") and
thereby to convert all shares of capital stock of the Company then outstanding
into Parent Common Stock (as such term is defined in the Merger Agreement) upon
the terms and subject to the conditions described in the Merger Agreement.

        B. The Stockholders desire to have liquidity with respect to the shares
of Parent Common Stock they receive in the Merger.

        C. Parent desires to grant each of the Stockholders registration rights
as provided herein.

        NOW, THEREFORE, in consideration of the promises and the mutual
covenants and agreements herein contained, the Company and the Stockholder
Representative, on behalf of the Stockholders, agree as follows:

        1. Definitions of Certain Terms. As used herein, the following terms
shall have the following meanings. Capitalized terms used but not otherwise
defined in this Agreement shall have the meanings given to them in the Merger
Agreement.

           (a) "BUSINESS DAY" means any day other than a Saturday or Sunday or a
day on which banks in Seattle, Washington are closed.

           (b) "CLOSING DATE" means the Closing Date as defined in Article I of
the Merger Agreement.

           (c) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC issued thereunder, as they may
be in effect from time to time.

<PAGE>   2

           (d) "FORM S-3" means such form under the Securities Act as in effect
on the date hereof or any registration form under the Securities Act
subsequently adopted by the SEC which similarly permits inclusion or
incorporation of substantial information by reference to other documents filed
by the Company with the commission.

           (e) "HOLDER" means any Stockholder holding Registrable Shares and any
other person or entity holding Registrable Shares to whom the registration
rights granted in this Agreement have been transferred pursuant to Section 8
hereof.

           (f) "INITIAL REGISTRABLE SHARES" means 669,345 shares of Parent
Common Stock issued to the Stockholders pursuant to the Merger (excluding shares
held in the Escrow Fund), and any other securities issued by Parent as a
dividend or other distribution with respect to, or in exchange for or in
replacement of, such shares; provided, however, Registrable Shares shall not
include (i) shares of Parent Common Stock which are restricted pursuant to any
Stock Restriction Agreement, or (ii) shares of Parent Common Stock that have
been registered under the Securities Act and disposed of pursuant to the
registration statement used to effect such registration or that can be sold in
any consecutive ninety (90) day period without registration in accordance with
Rule 144 of the Securities Act.

           (g) "REGISTRABLE SHARES" means the Initial Registrable Shares and the
Supplemental Registrable Shares.

           (h) "SEC" means the United States Securities and Exchange Commission,
or any governmental agency succeeding to its functions.

           (i) "SECURITIES ACT" means the Securities Act of 1933, as amended,
and the rules and regulations of the SEC issued thereunder, as they may be in
effect from time to time.

           (j) "SHELF REGISTRATIONS" means, collectively, the Initial
Registration and the Supplemental Registration.

           (k) " SUPPLEMENTAL REGISTRABLE SHARES" means up to 300,000 shares of
Parent Common Stock to be issued to the Stockholders in the Merger upon
satisfaction of the conditions set forth in Section 1.7 of the Merger Agreement,
and any other securities issued by Parent as a dividend or other distribution
with respect to, or in exchange for or in replacement of, such shares; provided,
however, Supplemental Registrable Shares shall not include shares of Parent
Common Stock that have been registered under the Securities Act and disposed of
pursuant to the registration statement used to effect such registration or that
can be sold in any consecutive ninety (90) day period without registration in
accordance with Rule 144 of the Securities Act.

           (l) "TERMINATION DATE" means:

               (i) with respect to the Initial Registration (as defined in
Section 2(a)), subject to any extension of time pursuant to Section 4(d) of this
Agreement, 5:00 PM Seattle time on the six month anniversary of the date on
which the Initial Registration is declared effective by the SEC; and

                                      -2-
<PAGE>   3

               (ii) with respect to the Supplemental Registration (as defined in
Section 2(b)), 5:00 PM Seattle time on the day that is thirty (30) days
following the day on which the Supplemental Registration is declared effective
by the SEC.

        2. Shelf Registrations.

           (a) Parent agrees that it shall use its best efforts to cause to be
filed as soon as practicable, but not later than thirty (30) Business Days
following the Closing Date, a registration statement (a "INITIAL REGISTRATION")
on Form S-3 under the Securities Act for an offering to be made on a delayed or
continuous basis pursuant to Rule 415 thereunder or any similar rule that may be
adopted by the SEC and permitting sales in ordinary course brokerage or dealer
transactions not involving any underwritten public offering, covering all of the
Initial Registrable Shares. Parent shall use commercially reasonable efforts
thereafter to cause the Initial Registration to be declared effective by the SEC
as promptly as practicable. Parent may postpone the filing or the effectiveness
of the Initial Registration for a period of up to 90 days if Parent determines
in good faith that the filing or effectiveness of the Initial Registration would
require the disclosure of information that could be materially detrimental to
Parent or its shareholders. Subject to Sections 3 and 4 hereof, Parent shall use
commercially reasonable efforts to keep the Initial Registration continuously
effective until the earlier to occur of (A) the Termination Date of the Initial
Registration, and (B) the first date on which no Initial Registrable Shares
originally covered by the Initial Registration shall constitute Initial
Registrable Shares.

           (b) Parent agrees that it shall use its best efforts to cause to be
filed as soon as practicable, but not later than fifteen (15) Business Days
following the six month anniversary of the Closing Date, a registration
statement (a "SUPPLEMENTAL REGISTRATION") on Form S-3 under the Securities Act
for an offering to be made on a delayed or continuous basis pursuant to Rule 415
thereunder or any similar rule that may be adopted by the SEC and permitting
sales in ordinary course brokerage or dealer transactions not involving any
underwritten public offering, covering all of the Supplemental Registrable
Shares. Parent shall use commercially reasonable efforts thereafter to cause the
Supplemental Registration to be declared effective by the SEC as promptly as
practicable. Parent may postpone the filing or the effectiveness of the
Supplemental Registration for a period of up to 90 days if Parent determines in
good faith that the filing or effectiveness of the Supplemental Registration
would require the disclosure of information that could be materially detrimental
to Parent or its shareholders. Subject to Sections 3 and 4 hereof, Parent shall
use commercially reasonable efforts to keep the Supplemental Registration
continuously effective until the earlier to occur of (A) the Termination Date of
the Supplemental Registration, and (B) the first date on which no Supplemental
Registrable Shares originally covered by the Supplemental Registration shall
constitute Registrable Shares.

        3. Registration Procedures. After Parent commences the registration of
the Registrable Shares pursuant to the Shelf Registrations, Parent shall take
all commercially reasonable actions to permit registration and sale of the
Initial Registrable Shares or Supplemental Registrable Shares pursuant to the
Shelf Registrations, including the following:

                                      -3-
<PAGE>   4

           (a) notify the Holders of the filing of the Shelf Registrations and
each amendment and supplement thereto and furnish to the Holders such number of
copies of the Shelf Registrations, each amendment and supplement thereto (in
each case including all exhibits thereto), the prospectuses included in the
Shelf Registrations (including any preliminary prospectuses) and such other
documents as the Holders may reasonably request in order to facilitate the
disposition of the Registrable Shares owned by the Holders;

           (b) use best efforts to register or qualify such Registrable Shares
under such other securities or "blue sky" laws of such jurisdictions as the
Stockholder Representative reasonably requests in writing and to do any and all
other acts and things that may be reasonably necessary or advisable to register
or qualify for sale in such jurisdictions the Registrable Shares owned by the
Holders; provided, however, that Parent shall not be required (i) to qualify to
do business in any jurisdiction where it is not then so qualified or (ii) to
consent to general service of process in any jurisdiction where it is not then
so subject to service of process;

           (c) use best efforts as promptly as practicable to cause all
Registrable Shares covered by either Shelf Registration to be listed on the
Nasdaq Stock Market or other securities exchange or market, if any, on which
similar securities issued by Parent are then listed; and

           (d) use commercially reasonable efforts to file with the SEC in a
timely manner all reports or other documents required of Parent under the
Securities Act and Exchange Act.

        4. Stop Order; Amendment of Prospectus.

           (a) Parent will notify the Holders promptly of (i) the issuance of
any stop order suspending the effectiveness of either Shelf Registration or (ii)
the receipt by Parent of any notification with respect to the suspension of the
qualification of the Registrable Shares for sale in any jurisdiction.
Immediately upon receipt of any such notice, the Holders shall cease to offer
and sell any Registrable Shares pursuant to the applicable Shelf Registration in
the jurisdiction to which such stop order or suspension relates. Parent shall
use all reasonable efforts to prevent the issuance of any such stop order or the
suspension of any such qualification and, if any such stop order is issued or
any such qualification is suspended, to obtain as soon as possible the
withdrawal or revocation thereof, and will notify the Holders at the earliest
practicable date of the date on which the Holders may offer and sell Registrable
Shares pursuant to such Shelf Registration.

           (b) Parent will notify the Holders promptly if Parent is in
possession of material non-public information that an executive officer of
Parent determines in good faith should not be disclosed because it would be
materially detrimental to Parent or its shareholders but would otherwise be
required to be set forth in the prospectus used in connection with either Shelf
Registration (each a "PROSPECTUS" and, together the "PROSPECTUSES"); provided,
however, that Parent shall not be required to disclose such event or facts, or
the nature thereof, to the Holders. Immediately upon receipt of such notice, the
Holders shall cease to offer or sell any Registrable Shares pursuant to either
of the Prospectuses, cease to deliver or use such Prospectus and, if so
requested by Parent, return to Parent, at Parent's expense, all copies (other
than permanent file copies) of any such Prospectus. Promptly after Parent
determines that the information may be included in an amendment or supplement to
any Prospectus, Parent will use commercially

                                      -4-
<PAGE>   5

reasonable efforts to amend or supplement the Prospectuses as promptly as
practicable in order to set forth or reflect such event or state of facts. In
the event that an executive officer of Parent determines in good faith that the
disclosure of such information would be materially detrimental to Parent or its
shareholders, Parent shall be permitted to delay the filing of such an amendment
or supplement to each Prospectus for a period of time to extend no longer than
ninety (90) days. Parent will promptly furnish copies of such amendment or
supplement to each Prospectus to the Holders and notify Holders when trading may
once again commence.

           (c) Holders that are employees of Parent or any subsidiary of Parent
shall be subject to Parent's Policy on Avoidance of Insider Trading.

           (d) In the event Holders are prevented from selling Registrable
Shares through either Shelf Registration as a result of Section 4(b), then the
Termination Date of such Shelf Registration shall be extended by the number of
days that Holders are prevented from making sales under such Shelf Registration
as a result of Section 4(b). In the event Holders that are employees of Parent
are prevented from selling Registrable Shares through either Shelf Registration
as a result of Section 4(c), then the applicable Termination Date shall be
extended by the number of days that such Holders are prevented from making sales
under such Shelf Registration as a result of Section 4(c).

        5. Information Concerning the Holders.

           (a) The obligations of Parent to take the actions contemplated by
Sections 2 and 3 hereof with respect to an offering of Registrable Shares shall
be subject to the condition that each Holder shall (i) conform to all applicable
requirements of the Securities Act and the Exchange Act with respect to the
offering and sale of securities and (ii) advise each underwriter, broker or
dealer through which any of such Registrable Shares are offered that such
Registrable Shares are part of a distribution that is subject to the prospectus
delivery requirements of the Securities Act. Each Holder shall furnish to Parent
in writing such information and furnish such documents as may be reasonably
required by Parent in the preparation of (A) the applicable Prospectus (or any
amendment or supplement thereto) with respect to any offering of Registrable
Shares and (B) any qualification of such Registrable Shares under state
securities or "blue sky" laws pursuant to Section 3(b) hereof, and shall
promptly notify Parent of the occurrence, from the date on which such
information or documents are furnished to the date of the closing for the sale
of such Registrable Shares, of any event relating to such Holder that is
required under the Securities Act to be set forth in such Prospectus (or any
amendment or supplement thereto).

           (b) The rights of the Holders to sell Registrable Shares pursuant to
the Shelf Registrations shall terminate at the applicable Termination Date.

        6. Expenses of Registration. Parent shall pay all reasonable expenses
incident to its performance of or compliance with this Agreement and
registration of Registrable Shares in connection herewith, including (a) all
SEC, stock exchange or market and National Association of Securities Dealers,
Inc. registration and filing fees, (b) all fees and expenses incurred in
complying with securities or "blue sky" laws, (c) all printing, messenger and
delivery expenses and (d) all fees and disbursements of Parent's independent
public accountants and counsel (all of such expenses herein referred to as
"REGISTRATION EXPENSES"). The Registration Expenses shall not include any

                                      -5-
<PAGE>   6

legal fees of the Holders or any sales or underwriting discounts, commissions or
fees attributable to the sale of the Registrable Shares, which shall be borne by
the Holders.

        7. Indemnification and Contribution.

           (a) Parent agrees to indemnify, to the extent permitted by law and
subject to the terms of this Agreement, each Holder and its directors, officers,
partners, members, employees and agents and each person, if any, who controls
such Holder or other person (within the meaning of the Securities Act) against
any losses, claims, damages, liabilities and expenses (including reasonable
attorneys' fees) arising out of or based upon any untrue or alleged untrue
statement of a material fact contained in the Shelf Registrations (or any
amendment thereto) or the Prospectuses (or any amendment or supplement thereto)
or any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements made therein in the light
of the circumstances under which they were made not misleading; provided,
however, that Parent shall not be liable to any Holder or its directors,
officers, partners, members, employees or agents or each person, if any, who
controls such Holder or other person (within the meaning of the Securities Act)
(i) to the extent that any such loss, claim, damage, liability or expense arises
out of, or is based upon any untrue or alleged untrue statement, or any
omission, if such statement or omission shall have been made in reliance upon
and in conformity with information relating to such Holder or person furnished
in writing to Parent by such Holder or person expressly for use in the
preparation of the Shelf Registrations (or any amendment thereto) or the
Prospectuses (or any amendment or supplement thereto) or (ii) if a copy of any
Prospectus (or any amendment thereto) relating to the Shelf Registrations was
not sent or given by or on behalf of such Holder to a purchaser of the Holder's
Registrable Shares, if required by law so to have been delivered, at or prior to
the written confirmation of the sale of the Registrable Shares to such
purchaser, and if such Prospectus (as so amended or supplemented) would have
cured the defect giving rise to such loss, claim, damage or liability and a copy
of such Prospectus was delivered to such Holder.

           (b) In connection with the Shelf Registrations, each Holder,
severally and not jointly, will indemnify, to the extent permitted by law and
subject to the terms of this Agreement, Parent, its directors, officers,
employees and agents and each person who controls Parent (within the meaning of
the Securities Act) against any losses, claims, damages, liabilities and
expenses (including reasonable attorneys' fees) arising out of or based upon any
untrue or alleged untrue statement of a material fact contained in the Shelf
Registrations (or any amendment thereto) or the Prospectuses (or any amendment
or supplement thereto) or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
made therein in the light of the circumstances under which they were made not
misleading, to the extent that such untrue statement or omission was made in
reliance upon and in conformity with information furnished in writing to Parent
by such Holder expressly for use in the preparation of the Shelf Registrations
(or any amendment thereto) or the Prospectuses (or any amendment or supplement
thereto); provided, that the liability of each Holder hereunder shall be limited
to the proportion of any such loss, claim, damage, liability or expense which is
equal to the proportion that the public offering price of the shares by such
Holder under such registration statement bears to the total public offering
price of all securities sold thereunder, but not in any event to exceed the net
proceeds received by such Holder.

                                      -6-
<PAGE>   7

           (c) Each party entitled to indemnification under this Section 7 (the
"INDEMNIFIED PARTY") shall give notice to the party required to provide
indemnification (the "INDEMNIFYING PARTY") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not be unreasonably
withheld or delayed); and provided, further, that the delay or failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 7, except to the extent
that the Indemnifying Party shall have been materially adversely affected by
such delay or failure. The Indemnified Party may participate in such defense at
the Indemnified Party's expense; provided, however, that the Indemnifying Party
shall pay any such reasonable expense if the Indemnified Party shall have
reasonably concluded that there may be a conflict between the positions of the
Indemnifying Party and the Indemnified Party in conducting the defense of any
such claim or litigation resulting therefrom. No Indemnified Party shall consent
to entry of any judgment or settle any claim or litigation without the prior
written consent of the Indemnifying Party.

           (d) If the indemnification provided for in this Section 7 from the
Indemnifying Party is unavailable to an Indemnified Party hereunder in respect
of any losses, claims, damages, liabilities or expenses referred to therein as a
result of a judicial determination that such indemnification may not be enforced
in such case notwithstanding this Agreement, the Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such losses, claims, damages,
liabilities or expenses in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions which resulted in such losses, claims, damages, liabilities or
expense, as well as any other relevant equitable considerations. The relative
fault of such Indemnifying Party and Indemnified Party shall be determined by
reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of material fact or omission or alleged
omission to state a material fact, has been made by, or relates to information
supplied by, such Indemnifying Party or Indemnified Party, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such action; provided, however, that no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation and no Holder will be required to contribute any
amount in excess of the public offering price (less underwriting discounts and
selling commissions) of all such Registrable Shares offered by it pursuant to
such Shelf Registrations.

        8. Transfer of Registration Rights. The registration rights of any
Holder (and of any transferee of any Holder or its transferees) under this
Agreement with respect to any Registrable Shares may be transferred to any
transferee who is a partner, member or shareholder of a Holder that is a
partnership, limited liability company or corporation, respectively; provided
that Parent is given written notice by the Holder at the time of such transfer
stating the name and address of the transferee and identifying the Registrable
Shares with respect to which the rights under this Agreement are being assigned
and such transferee executes and delivers such agreements as Parent may
reasonably require in order to confirm that such transferee agrees to be bound
by this Agreement.

                                      -7-
<PAGE>   8

        9. Amendment of Registration Rights. This Agreement may not be amended,
modified or supplemented by the parties hereto in any manner, except by a
written instrument that is approved by the Stockholder Representative and is
signed by Parent and the Stockholder Representative.

        10. Termination. This Agreement shall terminate at the earlier of such
time as (i) 5:00 PM Seattle time on the later of the Termination Date of the
Initial Registration or the Supplemental Registration, or (ii) the first date on
which all Registrable Shares originally covered by either Shelf Registration
shall no longer constitute Registrable Shares.

        11. Grant of Additional Registration Rights. The Holders acknowledge
that Parent may acquire other companies and in the course of such acquisitions
or other transactions may grant the equity owners thereof registration rights
with respect to their shares of Parent on terms that would be negotiated at such
time and may be materially different than the terms of this Agreement.

        12. No Waiver. The terms and conditions of this Agreement may be waived
only by a written instrument (a) approved by the Stockholder Representative and
signed by the Stockholder Representative in the case where a Holder or the
Stockholder Representative is waiving compliance and (b) signed by Parent in the
case where Parent is waiving compliance. The failure of any party hereto to
enforce at any time any of the provisions of this Agreement shall in no way be
construed to be a waiver of any such provision, nor in any way to affect the
validity of this Agreement or any part hereof or the right of such party
thereafter to enforce each and every such provision. No waiver of any breach of
or non-compliance with this Agreement shall be held to be a waiver of any other
or subsequent breach or non-compliance. The rights and remedies herein provided
are cumulative and are not exclusive of any rights or remedies that any party
may otherwise have at law or in equity.

        13. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Washington, regardless of
the other laws that might govern under applicable principles of conflicts of
laws thereof.

        14. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered by hand, sent by facsimile
transmission with confirmation of receipt, sent via a reputable overnight
courier service with confirmation of receipt requested, or mailed by registered
or certified mail (postage prepaid and return receipt requested) to the parties
at the following addresses (or at such other address for a party as shall be
specified by like notice), and shall be deemed given on the date on which
delivered by hand or otherwise on the date of receipt as confirmed:

        To Parent:

        RealNetworks, Inc.
        2601 Elliott Avenue
        Seattle, WA  98121
        Attn:  Vice President and General Counsel
        Telephone No.:    (206) 674-2700
        Facsimile No.:    (206) 674-2695

                                      -8-
<PAGE>   9

        with a copy to:

        Wilson Sonsini Goodrich & Rosati, Professional Corporation
        5300 Carillon Point
        Kirkland, Washington
        Attn:  Patrick J. Schultheis, Esq.
        Telephone No.:   (425) 576-5800
        Facsimile No.:   (425) 576-5899

        To the Holders or the Stockholder Representative:

        Ji Shen
        C/o RealNetworks, Inc.
        2601 Elliott Avenue, Suite 1000
        Seattle, WA  98121
        Telephone No.:   (206) 674-2700
        Facsimile No.:   (206) 674-2695

        with a copy to:

        Powell, Goldstein, Frazer & Murphy LLP
        1001 Pennsylvania Avenue, N.W.
        Washington, DC  20004
        Attn:  Joseph M. Berl
        Telephone No.:   (202) 624-7271
        Facsimile No.:   (202) 624-7222

        15. Construction of Agreement. A reference to a Section or Schedule
shall mean a Section in or Schedule to this Agreement unless otherwise expressly
stated. The titles and headings herein are for reference purposes only and shall
not in any manner limit the construction of this Agreement which shall be
considered as a whole. The words "include," "includes" and "including" when used
herein shall be deemed in each case to be followed by the words "without
limitation."

        16. Entire Agreement, Assignability, etc. This Agreement and the Merger
Agreement and the documents and other agreements among the parties hereto and
thereto as contemplated by or referred to herein or therein constitute the
entire agreement among the parties with respect to the subject matter hereof and
supersede in their entirety all other prior agreements and understandings, both
written and oral, between the parties with respect to the subject matter hereof.
This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns. This Agreement is
not intended to confer upon any person other than the parties hereto and the
Stockholders any rights or remedies hereunder, except as otherwise expressly
provided herein and shall not be assignable by operation of law or otherwise,
except as provided in Section 8 hereof.

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

                                      -9-
<PAGE>   10

        18. Counterparts. This Agreement may be executed in one or more
counterparts, all of which together shall constitute one and the same Agreement.

                [REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

                                      -10-
<PAGE>   11

        IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be executed as an agreement under seal as of the date first written
above.

                                     REALNETWORKS, INC.:

                                     By: /s/ Randy Tinsley
                                         --------------------------------------
                                         Name:   Randy Tinsley
                                         Title:  Vice President of Corporate
                                                 Development

                                     STOCKHOLDER REPRESENTATIVE:

                                     /s/ Ji Shen
                                     ------------------------------------------
                                     Ji Shen

                [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

<PAGE>   12

                                   SCHEDULE A

                                  STOCKHOLDERS

Abrams, Larry

Aatz, Franz

Baker, James

Curacao Strategic Technologies, N.V.

Dou, Jinhui

Fan, Xiao-yan

Fang, Daniel

Hein, Oliver

Hu, James

Hu, Jing Shan

Inozemtsev, Igor

Jamieson & Co.

Jia, Zheng Kevin

Klus, Judy

Lee, Jeff

Li, Siqun

Li, Yi

Li, Yi and Hu, Jing Shan

Lynch, William

McDonough, John

Trustees of the John P. McDonough CRNA PC Profit Sharing Plan

Oliver, Andrew

<PAGE>   13

Pang, Chen-li

Reibling, Guenther

Reibling, Lorenz

Rombach, Bernd

Saenger, Alexander

Schrader, Tamus

Shen, Ji

J and L Sherbloom Family LLC

Shi, Song Tao and Zhang, Jing Wen

Staedtler, Friedhart and Inge

Strategic European Technologies, N.V.

Staubli, Thomas

Tan, Patrick

Tang, Chilung

                                      -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]