Document:

Change in Control Severance Agreement

 Exhibit 10.14 
  
 CHANGE IN CONTROL 
 SEVERANCE
AGREEMENT 
  
 THIS AGREEMENT, effective February 1, 2006, is made by and
between Safeco Corporation, a Washington corporation (“Safeco”), and Paula Rosput Reynolds (the “Executive”). 
  
 WHEREAS, Safeco (together with its subsidiaries, collectively, the “Company”), considers it essential to the best interests of its shareholders to foster the
continued employment of key management personnel; and 
  
 WHEREAS, Safeco
recognizes that, as is the case with many publicly held corporations, the possibility of a Change in Control exists and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or
distraction of management personnel to the detriment of the Company and its stockholders; and 
  
 WHEREAS, Safeco has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including the Executive, to their
assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Company and the Executive agree as follows: 
  
 1. Defined Terms. The definitions of capitalized terms used in this Agreement are
provided in Section 15. 
  
 2. Term of Agreement. The Term of this
Agreement shall commence on the date hereof and shall continue in effect until the earlier of (i) the date it is terminated by written agreement between the Company and the Executive and (ii) seventh anniversary of a Change in Control.

  
 3. Company’s Covenants Summarized. In order to induce the
Executive to remain in the employ of the Company and in consideration of the Executive’s covenants stated in Section 4, the Company agrees, under the conditions described herein, to pay the Executive the Severance Payments and the other
payments and benefits described herein. Except as provided in Section 5.1, Section 5.4, Section 6.2(A), and Section 9.1, no amount or benefit shall be payable under this Agreement unless there shall have been a termination of the
Executive’s employment with the Company following a Change in Control and during the Term. This Agreement shall not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the
Executive and the Company, the Executive shall not have any right to be retained in the employ of the Company. 

 4. The Executive’s Covenants. The Executive agrees that, subject to the terms and conditions of this
Agreement, in the event of a Potential Change in Control during the Term, the Executive will remain in the employ of the Company until the earliest of (i) a date which is six (6) months from the date of such Potential Change of Control,
(ii) the date of a Change in Control, (iii) the date of termination by the Executive of the Executive’s employment for Good Reason or by reason of death, Disability or Retirement, or (iv) the termination by the Company of the
Executive’s employment for any reason. 
  
 5. Compensation Other Than
Severance Payments. 
  
 5.1 Salary During Incapacity or
Illness. Following a Change in Control and during the Term, during any period that the Executive fails to perform the Executive’s fulltime duties with the Company as a result of incapacity due to physical or mental illness, the Company
shall pay the Executive’s full salary to the Executive at the rate in effect at the commencement of any such period, together with all compensation and benefits payable to the Executive under the terms of any applicable compensation or benefit
plan, program or arrangement maintained by the Company during such period, until the Executive’s employment is terminated by the Company for Disability. 
  
 5.2 Salary During Term. If the Executive’s employment shall be terminated for any reason following a Change in Control and during the Term,
the Company shall pay the Executive’s full salary to the Executive through the Date of Termination at the rate in effect at the time the Notice of Termination is given or, if higher, the rate in effect immediately prior to the first occurrence
of an event or circumstance constituting Good Reason, together with all compensation and benefits payable to the Executive through the Date of Termination under the terms of the Company’s compensation and benefit plans, programs or
arrangements. 
  
 5.3 Post-Termination Compensation and
Benefits. If the Executive’s employment shall be terminated for any reason following a Change in Control and during the Term, the Company shall pay to the Executive the normal post-termination compensation and benefits as such payments
become due. Such post-termination compensation and benefits shall be determined under, and paid in accordance with, the Company’s applicable retirement, insurance and other compensation or benefit plans, programs and arrangements as in effect
immediately prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason. 
  
 5.4 Incentive Awards. 
  
 (A) Stock Options and SARs. Immediately prior to the Change in
Control, all awards of stock options and stock appreciation rights (“SARs”) previously granted to the Executive shall become fully vested and exercisable. The phrase “immediately prior to the Change in Control” shall be
understood to mean sufficiently in advance of a Change in Control to permit the Executive to take all steps reasonably necessary to exercise all options and SARs and to deal with the shares of stock underlying the awards of stock options and SARs so
that such shares may be treated in the same manner as the shares of stock of other shareholders in connection with the Change in Control. 
  

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 (B) Performance Stock Rights. To the extent deemed earned, each outstanding performance stock
right (“PSR”) previously granted to the Executive shall become immediately payable in cash upon a Change in Control, and the remainder of each outstanding PSR shall be canceled for no value. All outstanding PSRs shall be deemed to have
been earned to the extent of the greater of: 
  

	 	(i)	the number of shares determined by the Committee based on the extent to which the performance goals specified in the PSR award agreement have been achieved during the portion of the
performance period ending on the last day of the last fiscal quarter of the Company ending on or before the date of the Change in Control, and 

  

	 	(ii)	the number of shares equal to the product of the target shares identified in the PSR award agreement multiplied by a fraction with a numerator equal to the whole number of calendar
months beginning with the month in which the PSR was granted and ending on the date of the Change in Control and a denominator equal to the whole number of calendar months in the entire performance period covered by the PSR award agreement and less
any shares previously issued under the PSR award agreement. 

  
 (C) Restricted Stock Rights. All restrictions with respect to restricted stock rights (“RSRs”) shall lapse upon a Change in Control, and all outstanding RSRs of the Executive shall be immediately
settled by a cash payment. 
  
 (D) Leadership Performance
Plan. Executive shall be eligible to receive an incentive award pursuant to the terms of the Leadership Performance Plan. 
  
 (E) Other Incentive Awards. All other restrictions with respect to outstanding incentive awards of the Executive not described in subsections
(A) through (D) of this Section 5.4 shall lapse upon a Change in Control, and such awards shall be fully vested and nonforfeitable. 
  
 (F) Fair Market Value. For purposes of this Section 5.4, with respect to determining the cash equivalent value of an RSR or PSR or the spread
payable upon exercise of an SAR, the fair market value of a share of the Company’s stock shall be deemed to equal the greater of (i) the fair market value of a share of stock as of the date on which a Change in Control occurs and
(ii) the highest price of a share of stock which is paid or offered to be paid, by any person or entity, in connection with any transaction which constitutes a Change in Control. 
  
 5.5 Deferral Election. The Executive may elect to defer all or a portion of the payments that are to be made to the
Executive under Section 6.1(A) and Section 6.2. The Executive may exercise such election by delivering a notice of election (in accordance with Section 10) prior to the occurrence of the Change in Control, which notice shall state the
portion of such payments that is to be deferred (expressed as a dollar amount or as a percentage (“the Deferred Benefit”)), the date the payment of the Deferred Benefit shall commence (“the Deferred 

  

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Benefit Commencement Date”), and the number of equal consecutive monthly installments (not to exceed 120) that the Deferred Benefit is to be paid in. In
no event shall the Deferred Benefit Commencement Date be subsequent to the first day of January of the year immediately following the Executive’s sixty-fifth birthday. In the event such an election is made: 
  
 (A) The amount that would have otherwise been paid under the provisions of
Section 6.1(A) and Section 6.2 shall be reduced by an amount equal to the Deferred Benefit. 
  
 (B) The Deferred Benefit, together with simple interest calculated at an annual rate of ten percent (10%) on the unpaid balance of the Deferred
Benefit from the date that payment of the Deferred Benefit would have otherwise been made, shall be paid in the number of equal consecutive monthly installments selected by the Executive, with the first such installment being made on the Deferred
Benefit Commencement Date and a subsequent payment being made on the first day of each month thereafter. 
  
 (C) If the Executive dies prior to receiving the full amount of the Deferred Benefit, the Company shall continue to pay the Deferred Benefit to the estate
of the Executive in the same manner as the Deferred Benefit would have been paid to the Executive if the Executive had not died. 
  
 (D) The Deferred Benefit shall in no event be set aside or deposited to a separate account or fund, and the rights of the Executive to the Deferred
Benefit shall not be greater than the rights of any other general, unsecured creditor of the Company. 
  
 (E) The Executive, the Executive’s spouse, and any other person or entity claiming through or under the Executive shall not have any power or
authority to commute, encumber, or dispose of any right to receive payment of the Deferred Benefit, all of which payments are expressly declared to be non-assignable. In the event of any attempt at assignment or other disposition, the Company shall
have no further liability to pay the Deferred Benefit. The Deferred Benefit provided for in this Agreement shall not be subject to seizure for the payment of any debts, judgments, alimony, separate maintenance or child support, or be reached or
transferred by operation of law, or in the event of bankruptcy, insolvency or otherwise. 
  
 6. Severance Payments. 
  
 6.1 Severance Payments Enumerated. The Company shall pay the Executive the payments described in this Section 6.1 (the “Severance Payments”) upon the termination of the Executive’s employment following a Change in
Control and during the Term, in addition to any payments and benefits to which the Executive is then entitled under Section 5, unless such termination is (i) by the Company for Cause, (ii) by reason of death, Disability or Retirement,
or (iii) by the Executive without Good Reason. Additionally, during the one-month period beginning with the first day of the month immediately following the first anniversary of the Change in Control, the Executive may voluntarily terminate her
employment for any reason and, upon such termination, the Company shall pay the Executive the Severance Payments and the Gross-Up Payment, in addition to any payments and benefits to which the Executive is then entitled under Section 5. For
purposes of this Agreement, the Executive’s employment shall be 

  

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deemed to have been terminated following a Change in Control by the Company without Cause or by the Executive with Good Reason, if (i) the
Executive’s employment is terminated by the Company without Cause prior to a Change in Control and such termination was at the request or direction of a Person who has entered into an agreement with the Company the consummation of which would
constitute a Change in Control, (ii) the Executive terminates her employment with Good Reason prior to a Change in Control and the circumstance or event which constitutes Good Reason occurs at the request or direction of such Person, or
(iii) the Executive’s employment is terminated by the Company without Cause prior to a Change in Control and the Executive reasonably demonstrates that such termination is otherwise in connection with or in anticipation of a Change in
Control. 
  
 (A) In lieu of any further salary payments to the
Executive for periods subsequent to the Date of Termination and in lieu of any severance benefit otherwise payable to the Executive, the Company shall pay to the Executive a lump sum severance payment, in cash, equal to three (or, if less, the
number of years, rounded to the nearest hundredth of a year, remaining until December 31 of the year in which the Executive attains age 65) times the higher of the Executive’s annual base salary in effect immediately prior to the
occurrence of the event or circumstance upon which the Notice of Termination is based and the Executive’s base salary in effect immediately prior to Date of Termination. 
  
 (B) For the thirty-six (36) month period immediately following the Date of Termination or, if shorter, for the period
commencing immediately following the Date of Termination and ending on December 31 of the year in which the Executive attains age 65 (such applicable period, the “Severance Period”), the Company shall arrange to provide the Executive
with life, disability, accident and health insurance benefits substantially similar to those which the Executive is receiving immediately prior to the Date of Termination; provided, however, that, unless the Executive consents to a
different method (after taking into account the effect of such method on the calculation of “parachute payments” pursuant to Section 6.2), such health insurance benefits shall be provided through a third-party insurer. Benefits
otherwise receivable by the Executive pursuant to this Section 6.1 (B) shall be reduced to the extent comparable benefits are actually received by or made available to the Executive (other than benefits available pursuant to the
Consolidated Omnibus Budget Reform Act of 1985) during the Severance Period (and any such benefits actually received by or made available to the Executive shall be reported to the Company by the Executive). 
  
 (C) Notwithstanding any provision of any annual or long-term incentive plan
to the contrary, the Company shall pay to the Executive a lump sum amount, in cash, equal to the sum of (i) any incentive compensation which has been allocated or awarded to the Executive for a completed year or other measuring period preceding
the Date of Termination under any such plan and which, as of the Date of Termination, is contingent only upon the continued employment of the Executive to a subsequent date, and (ii) a pro rata portion to the Date of Termination of the
aggregate value of all contingent incentive compensation awards to the Executive for all then uncompleted periods under any such plan, calculated as to each such award by multiplying the award that the Executive would have earned on the last day of
the performance award period, assuming the achievement, at the level that would produce the maximum award, of the individual and corporate performance goals established with respect to such award, by the fraction obtained 

  

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by dividing the number of full months and any fractional portion of a month during such performance award period through the Date of Termination by the total
number of months contained in such performance award period. 
  
 6.2 “Gross-Up Payment.” 
  
 (A) Whether
or not the Executive becomes entitled to the Severance Payments, if any of the payments or benefits received or to be received by the Executive in connection with a Change in Control or the Executive’s termination of employment (whether
pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, any Person whose actions result in a Change in Control or any Person affiliated with the Company or such Person) (such payments or benefits,
excluding the Gross-Up Payment, being hereinafter referred to as the “Total Payments”) will be subject to the Excise Tax, the Company shall pay to the Executive an additional amount (the “Gross-Up Payment”) such that the net
amount retained by the Executive, after deduction of any Excise Tax on the Total Payments and any federal, state and local income and employment taxes and Excise Tax upon the Gross-Up Payment, and after taking into account the phase out of the
itemized deductions attributable to the Gross-Up Payment, shall be equal to the Total Payments. 
  
 (B) For purposes of determining whether any of the Total Payments will be subject to the Excise Tax and the amount of such Excise Tax, (i) all of the
Total Payments shall be treated as “parachute payments” (within the meaning of section 280G(b)(2) of the Code) unless, in the opinion of tax counsel selected by the accounting firm which was, immediately prior to the Change in Control, the
Company’s independent accountant (the “Accountant”) and which tax counsel is reasonably acceptable to the Executive (“Tax Counsel”), such payments or benefits (in whole or in part) do not constitute parachute payments,
including by reason of section 280G(b)(4)(A) of the Code, (ii) all “excess parachute payments” within the meaning of section 280G(b)(1) of the Code shall be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel,
such excess parachute payments (in whole or in part) represent reasonable compensation for services actually rendered (within the meaning of section 280G(b)(4)(B) of the Code) in excess of the Base Amount allocable to such reasonable compensation,
or are otherwise not subject to the Excise Tax, and (iii) the value of any noncash benefits or any deferred payment or benefit shall be determined by the Accountant in accordance with the principles of sections 280G(d)(3) and (4) of the
Code. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income tax at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made
and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence on the Date of Termination (or if there is no Date of Termination, then the date on which the Gross-Up Payment is
calculated for purposes of this Section 6.2), net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 
  
 (C) In the event that the Excise Tax is finally determined to be less than the amount taken into account hereunder in
calculating the Gross-Up Payment, the Executive shall repay to the Company, at the time that the amount of such reduction in Excise Tax is finally determined, 

  

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the portion of the Gross-Up Payment attributable to such reduction (plus that portion of the Gross-Up Payment attributable to the Excise Tax and federal,
state and local income and employment taxes imposed on the Gross-Up Payment being repaid by the Executive to the extent that such repayment results in a reduction in Excise Tax and/or a federal, state or local income or employment tax deduction)
plus interest on the amount of such repayment at 120% of the rate provided in section 1274(b)(2)(B) of the Code. In the event that the Excise Tax is determined to exceed the amount taken into account hereunder in calculating the Gross-Up Payment
(including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of such excess (plus any interest, penalties or
additions payable by the Executive with respect to such excess) at the time that the amount of such excess is finally determined. The Executive and the Company shall each reasonably cooperate with the other in connection with any administrative or
judicial proceedings concerning the existence or amount of liability for Excise Tax with respect to the Total Payments. 
  
 6.3 Severance Payments Pay Date. The payments provided in subsections (A) and (C) of Section 6.1 and in Section 6.2 shall be
made not later than the fifth day following the Date of Termination; provided, however, that if the amounts of such payments cannot be finally determined on or before such day, the Company shall pay to the Executive on such day an
estimate, as determined in good faith by the Executive or, in the case of payments under Section 6.2, in accordance with Section 6.2, of the minimum amount of such payments to which the Executive is clearly entitled and shall pay the
remainder of such payments (together with interest on the unpaid remainder (or on all such payments to the extent the Company fails to make such payments when due) at 120% of the rate provided in section 1274(b)(2)(B) of the Code) as soon as the
amount thereof can be determined but in no event later than the thirtieth (30th) day after the Date of Termination. In the event that the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess
shall constitute a loan by the Company to the Executive, payable on the fifth (5th) business day after demand by the Company (together with interest at 120% of the rate provided in section 1274(b)(2)(B) of the Code). At the time that payments
are made under this Section, the Company shall provide the Executive with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations including, without limitation, any opinions or other
advice the Company has received from Tax Counsel, the Accountant or other advisors or consultants (and any such opinions or advice which are in writing shall be attached to the statement). 
  
 6.4 Executive’s Legal Fees. The Company also shall pay to the
Executive all legal fees and expenses incurred by the Executive in disputing in good faith any issue hereunder relating to the termination of the Executive’s employment, in seeking in good faith to obtain or enforce any benefit or right
provided by this Agreement or in connection with any tax audit or proceeding to the extent attributable to the application of section 4999 of the Code to any payment or benefit provided hereunder. Such payments shall be made within five
(5) business days after delivery of the Executive’s written requests for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require. 
  

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 7. Termination Procedures and Compensation During Dispute. 
  
 7.1 Notice of Termination. After a Change in Control and during the
Term, any purported termination of the Executive’s employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with Section 10. For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall state in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the provision so indicated. Further, a Notice of Termination for Cause is required to include a copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters (3/4) of the entire membership of the Board at a meeting of the Board which was called and held for the purpose of considering such termination (after reasonable notice to the Executive and an opportunity for the Executive,
together with the Executive’s counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, the Executive was guilty of conduct stated in clause (i) or (ii) of the definition of Cause herein, and
specifying the particulars thereof in detail. 
  
 7.2 Date of
Termination. “Date of Termination,” with respect to any purported termination of the Executive’s employment after a Change in Control and during the Term, shall mean (i) if the Executive’s employment is terminated for
Disability, thirty (30) days after Notice of Termination is given (provided that the Executive shall not have returned to the full-time performance of the Executive’s duties during such thirty (30) day period), and (ii) if the
Executive’s employment is terminated for any other reason, the date specified in the Notice of Termination (which, in the case of a termination by the Company, shall not be less than thirty (30) days (except in the case of a termination
for Cause) and, in the case of a termination by the Executive, shall not be less than fifteen (15) days nor more than sixty (60) days, respectively, from the date such Notice of Termination is given). 
  
 7.3 Dispute Concerning Termination. If within fifteen (15) days
after any Notice of Termination is given, or, if later, prior to the Date of Termination (as determined without regard to this Section 7.3), the party receiving such Notice of Termination notifies the other party that a dispute exists
concerning the termination, the Date of Termination shall be extended until the earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally resolved, either by mutual written agreement of the parties or
by a final judgment, order or decree of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been perfected); provided,
however, that the Date of Termination shall be extended by a notice of dispute given by the Executive only if such notice is given in good faith and the Executive pursues the resolution of such dispute with reasonable diligence. 

 
 7.4 Compensation During Dispute. If a purported termination occurs
following a Change in Control and during the Term and the Date of Termination is extended in accordance with Section 7.3, the Company shall continue to pay the Executive the full compensation in effect when the notice giving rise to the dispute
was given (including, but not limited to, salary) and continue the Executive as a participant in all compensation, benefit and insurance plans in which the Executive was participating when the notice giving rise to the dispute was given, until the
Date of Termination, as determined in accordance with Section 7.3. Amounts paid under this Section 7.4 are in addition to all other amounts due under this Agreement (other than those due 

  

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under Section 5.2) and shall not be offset against or reduce any other amounts due under this Agreement. 
  
 8. No Mitigation. The Company agrees that, if the Executive’s employment with the
Company terminates during the Term, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 6 or Section 7.4. Further, the amount of
any payment or benefit provided for in this Agreement (other than Section 6.1(B)) shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by the Executive to the Company, or otherwise. 
  
 9.
Successors; Binding Agreement. 
  
 9.1 Safeco
Successors. In addition to any obligations imposed by law upon any successor to Safeco, Safeco will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of Safeco to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Safeco would be required to perform it if no such succession had taken place. Failure of Safeco to obtain such assumption
and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Executive to compensation from the Company in the same amount and on the same terms as the Executive would be entitled to
hereunder if the Executive were to terminate the Executive’s employment for Good Reason after a Change in Control, except that, for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed
the Date of Termination. 
  
 9.2 Executive’s
Successors. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive shall die
while any amount would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate. 
  
 10. Notices. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed, if to the Executive, to the address inserted below the Executive’s signature on the final page and, if to the
Company, to the address stated below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of a change of address shall be effective only upon actual receipt: 
  
 To the Company: 
  
 Safeco Corporation 
 Safeco Plaza 
 Seattle, WA 98185 

Attention: Chief Legal Officer 
  

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 11. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive and an officer of Safeco. No waiver by either party hereto at any time of any breach by the other party hereto of, or of any lack of compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement supersedes any other agreements or
representations, oral or otherwise, express or implied, with respect to its subject matter which have been made by either party. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the state
of Washington. All references to sections of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding required under
federal, state or local law and any additional withholding to which the Executive has agreed. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the
expiration of the Term (including, without limitation, those under Sections 6 and 7) shall survive such expiration. The parties acknowledge that this Agreement may need to be modified in the future to comply with new Section 409(A) of the Code
(added to the Code pursuant to the Jobs Creation Act of 2004) but such modifications will not diminish the benefits to which Executive is entitled unless Executive receives substantially comparable benefits in substitution. 
  
 12. 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, which shall remain in full force and effect. 
  
 13. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute
one and the same instrument. 
  
 14. Settlement of Disputes; Arbitration.

  
 (A) All claims by the Executive for benefits under this
Agreement shall be directed to and determined by the Committee and shall be in writing. Any denial by the Committee of a claim for benefits under this Agreement shall be delivered to the Executive in writing and shall state the specific reasons for
the denial and the specific provisions of this Agreement relied upon. The Committee shall afford a reasonable opportunity to the Executive for a review of the decision denying a claim and shall further allow the Executive to appeal to the Committee
a 

  

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decision of the Committee within sixty (60) days after notification by the Committee that the Executive’s claim has been denied. 
  
 (B) Any further dispute or controversy arising under or in connection with
this Agreement shall be settled exclusively by arbitration in Seattle, Washington in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having
jurisdiction. Notwithstanding any provision of this Agreement to the contrary, the Executive shall be entitled to seek specific performance of the Executive’s right to be paid until the Date of Termination during the pendency of any dispute or
controversy arising under or in connection with this Agreement. 
  
 15.
Definitions. For purposes of this Agreement, the following terms shall have the meanings indicated below: 
  
 (A) “Accountant” shall have the meaning stated in Section 6.2. 
  
 (B) “Affiliate” shall have the meaning stated in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

  
 (C) “Base Amount” shall have the meaning stated in
section 280G(b)(3) of the Code. 
  
 (D) “Beneficial
Owner” shall have the meaning stated in Rule 13d-3 under the Exchange Act. 
  
 (E) “Board” shall mean the Board of Directors of Safeco. 
  
 (F) “Cause” for termination by the Company of the Executive’s employment shall mean (i) the willful and continued failure by the
Executive to substantially perform the Executive’s duties with the Company (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness or any such actual or anticipated failure after the
issuance of a Notice of Termination for Good Reason by the Executive pursuant to Section 7.1) after a written demand for substantial performance is delivered to the Executive by the Board, which demand specifically identifies the manner in
which the Board believes that the Executive has not substantially performed the Executive’s duties, or (ii) the willful engaging by the Executive in conduct which is demonstrably and materially injurious to the Company or its subsidiaries,
monetarily or otherwise. For purposes of clauses (i) and (ii) of this definition, (x) no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not
in good faith and without reasonable belief that the Executive’s act, or failure to act, was in the best interest of the Company and (y) in the event of a dispute concerning the application of this provision, no claim by the Company that
Cause exists shall be given effect unless the Company establishes to the Committee by clear and convincing evidence that Cause exists. 
  

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 (G) A “Change in Control” shall be deemed to have occurred if the event stated in any one of
the following paragraphs shall have occurred: 
  
 (i) any Person
is or becomes the Beneficial Owner, directly or indirectly, of securities of Safeco (not including in the securities beneficially owned by such Person any securities acquired directly from Safeco or its affiliates) representing 25% or more of the
combined voting power of Safeco’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (a) of paragraph (iii) below; or 
  
 (ii) the following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation, relating to the election of directors of Safeco) whose appointment or election by the Board or nomination for election by Safeco’s stockholders was approved or recommended by a vote of at
least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 
  
 (iii) there is consummated a merger or consolidation of Safeco or any direct
or indirect subsidiary of Safeco with any other corporation, other than (a) a merger or consolidation which would result in the voting securities of Safeco outstanding immediately prior to such merger or consolidation continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of
Safeco or any subsidiary of Safeco, at least 75% of the combined voting power of the securities of Safeco or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (b) a merger or
consolidation effected to implement a recapitalization of Safeco (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of Safeco (not including in the securities Beneficially Owned by
such Person any securities acquired directly from Safeco or its Affiliates) representing 25% or more of the combined voting power of Safeco’s then outstanding securities; or 
  
 (iv) the stockholders of Safeco approve a plan of complete liquidation or dissolution of Safeco or there is consummated an
agreement for the sale or disposition by Safeco of all or substantially all of Safeco’s assets, other than a sale or disposition by Safeco of all or substantially all of Safeco’s assets to an entity, at least 75% of the combined voting
power of the voting securities of which are owned by stockholders of Safeco in substantially the same proportions as their ownership of Safeco immediately prior to such sale. 
  
 Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any
transaction or series of integrated transactions immediately following which the record holders of the common stock of Safeco immediately prior to such transaction or series of transactions continue to have substantially the same proportionate
ownership in an entity which owns all or substantially all of the assets of Safeco immediately following such transaction or series of transactions. 
  
 (H) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
  

 12 

 (I) “Committee” shall mean (i) the individuals (not fewer than three in number) who, on
the date six months before a Change in Control, constitute the Compensation Committee of the Board, plus (ii) in the event that fewer than three individuals are available from the group specified in clause (i) above for any reason, such
individuals as may be appointed by the individual or individuals so available (including for this purpose any individual or individuals previously so appointed under this clause (ii)). 
  
 (J) “Company” shall mean Safeco and its subsidiaries, collectively. 
  
 (K) “Date of Termination” shall have the meaning stated in
Section 7.2. 
  
 (L) “Deferred Benefit” shall have
the meaning stated in Section 5.5. 
  
 (M) “Deferred
Benefit Commencement Date” shall have the meaning stated in Section 5.5. 
  
 (N) “Disability” shall be deemed the reason for the termination by the Company of the Executive’s employment, if, as a result of the Executive’s incapacity due to physical or mental illness, the
Executive shall have been absent from the full-time performance of the Executive’s duties with the Company for a period of one hundred and thirty (130) consecutive business days, the Company shall have given the Executive a Notice of
Termination for Disability, and, within thirty (30) days after such Notice of Termination is given, the Executive shall not have returned to the full-time performance of the Executive’s duties. 
  
 (O) “Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended from time to time. 
  
 (P) “Excise Tax” shall
mean any excise tax imposed under section 4999 of the Code. 
  
 (Q) “Executive” shall mean the individual named in the first paragraph of this Agreement. 
  
 (R) “Good Reason” for termination by the Executive of the Executive’s employment shall mean the occurrence (without the Executive’s
express written consent) after any Change in Control, or prior to a Change in Control under the circumstances described in clause (ii) of the second sentence of Section 6.1 (treating all references in paragraphs (i) through
(vii) below to a “Change in Control” as references to a “Potential Change in Control”), of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act
described in paragraph (i), (v), (vi) or (vii) below, such act or failure to act is corrected prior to the Date of Termination specified in the Notice of Termination given in respect thereof: 
  
 (i) the assignment to the Executive of any duties inconsistent with the
Executive’s status as a senior executive officer of the Company or a substantial adverse alteration in the 

  

 13 

 
nature or status of the Executive’s responsibilities from those in effect immediately prior to the Change in Control; 
  
 (ii) a reduction by the Company in the Executive’s annual base salary as
in effect on the date hereof or as the same may be increased from time to time; 
  
 (iii) the relocation of the Executive’s principal place of employment to a location outside of King County, Washington (or, if different, the county in which such principal place of employment is located
immediately prior to the Change in Control) or the Company’s requiring the Executive to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business
to an extent substantially consistent with the Executive’s present business travel obligations; 
  
 (iv) the failure by the Company to pay to the Executive any portion of the Executive’s current compensation, or to pay to the Executive any portion
of an installment of deferred compensation under any deferred compensation program of the Company, within seven (7) days of the date such compensation is due; 
  
 (v) the failure by the Company to continue in effect any compensation plan (including stock option, restricted stock, stock
appreciation right, incentive compensation and bonus plans) in which the Executive participates immediately prior to the Change in Control which is material to the Executive’s total compensation, unless an equitable arrangement (embodied in an
ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to continue the Executive’s participation therein (or in such substitute or alternative plan) on a basis not materially less
favorable, both in terms of the amount or timing of payment of benefits provided and the level of the Executive’s participation relative to other participants, as existed immediately prior to the Change in Control; 
  
 (vi) the failure by the Company to continue to provide the Executive with
benefits substantially similar to those enjoyed by the Executive under any of the Company’s profit sharing, pension, savings, life insurance, medical, health and accident, or disability plans in which the Executive was participating immediately
prior to the Change in Control, the taking of any action by the Company which would directly or indirectly materially reduce any of such benefits or deprive the Executive of any material fringe benefit enjoyed by the Executive at the time of the
Change in Control, or the failure by the Company to provide the Executive with the number of paid vacation days to which the Executive is entitled on the basis of years of service with the Company in accordance with the Company’s normal
vacation policy in effect at the time of the Change in Control; or 
  
 (vii) any purported termination of the Executive’s employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 7.1; for purposes of this Agreement, no such purported termination
shall be effective. 
  
 The Executive’s right to terminate
the Executive’s employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness. The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect
to, any act or failure to act constituting Good Reason hereunder. 
  

 14 

 For purposes of any determination regarding the existence of Good Reason, any claim by the Executive that
Good Reason exists shall be presumed to be correct unless the Company establishes to the Committee by clear and convincing evidence that Good Reason does not exist. 
  
 (S) “Gross-Up Payment” shall have the meaning stated in Section 6.2. 
  
 (T) “Notice of Termination” shall have the meaning stated in
Section 7.1. 
  
 (U) “Person” shall have the
meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) Safeco or any of its subsidiaries, (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of Safeco or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the
stockholders of Safeco in substantially the same proportions as their ownership of stock of Safeco. 
  
 (V) “Potential Change in Control” shall be deemed to have occurred if the event stated in any one of the following paragraphs shall have
occurred: 
  
 (i) Safeco enters into an agreement, the
consummation of which would result in the occurrence of a Change in Control; 
  
 (ii) Safeco or any Person publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control; 
  
 (iii) any Person becomes the Beneficial Owner, directly or indirectly, of
securities of Safeco representing 10% or more of either the then outstanding shares of common stock of Safeco or the combined voting power of the Safeco’s then outstanding securities (not including in the securities beneficially owned by such
Person any securities acquired directly from Safeco or its affiliates); or 
  
 (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred. 
  
 (W) “Retirement” shall be deemed the reason for the termination by the Company or the Executive of the
Executive’s employment if such employment is terminated on or after the date Executive attains age 65. 
  
 (X) “Safeco” shall mean Safeco Corporation and, except in determining under Section 15(G) whether or not any Change in Control has
occurred, shall include any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of law, or otherwise. 
  

 15 

 (Y) “Severance Payments” shall mean the payments so described in Section 6.1. 

 
 (Z) “Severance Period” shall have the meaning stated in
Section 6.1(B). 
  
 (AA) “Tax Counsel” shall have
the meaning stated in Section 6.2. 
  
 (BB) “Term”
shall mean the period of time described in Section 2 (including any extension, continuation or termination described therein). 
  
 (CC) “Total Payments” shall mean the payments so described in Section 6.2. 
  

									
	Safeco Corporation	 	 	 	Executive
				
	By: 	 	/s/ Jay W. Brown	 	 	 	/s/ Paula Rosput Reynolds
	 	 	 	 	 	 	Name: Paula Rosput Reynolds	 	 
	 	 	 	 	 	 	Such address as may appear on the personnel records of Safeco or such other Person as Ms. Reynolds may specify in writing

  

 16Purchase and Sale Agreement

 Exhibit 10.20 
  
 PURCHASE AND SALE AGREEMENT 
  
 BETWEEN 
  
 GENERAL AMERICA CORPORATION 
  
 as Seller 
  
 AND

  
 MICROSOFT CORPORATION 
  
 as Purchaser 
  
 with respect to 
  
 SAFECO REDMOND CAMPUS 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I.
	  	Definitions	  	1
			
	 Section 1.1
	  	Definitions	  	1
	 Section 1.2
	  	References; Exhibits and Schedules	  	6
			
	 ARTICLE II.
	  	Agreement of Purchase and Sale	  	7
			
	 Section 2.1
	  	Agreement	  	7
	 Section 2.2
	  	Indivisible Economic Package	  	7
	 Section 2.3
	  	Special Termination Right	  	7
	 Section 2.4
	  	GAC Lease	  	8
	 Section 2.5
	  	Microsoft Lease Termination	  	8
	 Section 2.6
	  	Data Center Agreement	  	8
			
	 ARTICLE III.
	  	Consideration	  	8
			
	 Section 3.1
	  	Purchase Price	  	8
	 Section 3.2
	  	Method of Payment of Purchase Price	  	8
	 Section 3.3
	  	Independent Consideration	  	8
			
	 ARTICLE IV.
	  	Earnest Money Deposit and Escrow Instructions	  	9
			
	 Section 4.1
	  	The Deposit	  	9
	 Section 4.2
	  	Escrow Instructions	  	9
	 Section 4.3
	  	Documents Deposited into Escrow	  	9
	 Section 4.4
	  	Close of Escrow	  	9
	 Section 4.5
	  	Maintenance of Confidentiality by Title Company	  	10
	 Section 4.6
	  	Investment of Earnest Money Deposit	  	10
	 Section 4.7
	  	Designation of Reporting Person	  	10
			
	 ARTICLE V.
	  	Inspection of Property	  	11
			
	 Section 5.1
	  	Entry and Inspection	  	11
	 Section 5.2
	  	Document Review	  	12
	 Section 5.3
	  	Entry and Inspection Obligations	  	13
	 Section 5.4
	  	Data Center Agreement	  	14
	 Section 5.5
	  	Termination Right	  	14
	 Section 5.6
	  	Sale “As Is”	  	14
	 Section 5.7
	  	Material Defects	  	16
	 Section 5.8
	  	Hazardous Materials Waiver	  	16
			
	 ARTICLE VI.
	  	Title and Survey Matters	  	16
			
	 Section 6.1
	  	Survey	  	16
	 Section 6.2
	  	Title Commitment	  	17
	 Section 6.3
	  	Title Insurance	  	18

  

 -I- 

					
	 ARTICLE VII.
	  	Interim Operating Covenants	  	18
			
	 Section 7.1
	  	Interim Operating Covenants	  	18
	     (a)
	  	Operations	  	18
	     (b)
	  	Maintain Insurance	  	18
	     (c)
	  	Leases	  	18
	     (d)
	  	Service Contracts	  	19
	     (e)
	  	Personal Property	  	19
	     (f)
	  	Notices	  	19
	     (g)
	  	Comply with Governmental Regulations	  	19
			
	 ARTICLE VIII.
	  	Representations and Warranties	  	19
			
	 Section 8.1
	  	Seller’s Representations and Warranties	  	19
	     (a)
	  	Due Formation and Authorization	  	19
	     (b)
	  	Consent	  	19
	     (c)
	  	Suits and Proceedings	  	20
	     (d)
	  	Leases	  	20
	     (e)
	  	Service Contracts	  	20
	     (f)
	  	No Violations	  	20
	     (g)
	  	Insolvency	  	20
	     (h)
	  	Environmental	  	20
	     (i)
	  	Bankruptcy	  	20
	     (j)
	  	Condemnation	  	20
	     (k)
	  	Insurance	  	20
	 Section 8.2
	  	Purchaser’s Representations and Warranties	  	21
	     (a)
	  	Due Formation and Authorization	  	21
	     (b)
	  	Non-Contravention	  	21
	     (c)
	  	Consents	  	21
			
	 ARTICLE IX.
	  	Condemnation and Casualty	  	21
			
	 Section 9.1
	  	Significant Casualty	  	21
	 Section 9.2
	  	Casualty of Less Than a Significant Portion	  	22
	 Section 9.3
	  	Condemnation of Property	  	22
			
	 ARTICLE X.
	  	Closing	  	23
			
	 Section 10.1
	  	Closing Conditions	  	23
	 	  	 Section 10.1.1    Purchaser’s Closing Conditions
	  	23
	 	  	 Section 10.1.2    Seller’s Conditions to Closing
	  	23
	 Section 10.2
	  	Closing	  	23
	 Section 10.3
	  	Purchaser’s Closing Obligations	  	24
	 Section 10.4
	  	Seller’s Closing Obligations	  	25
	 Section 10.5
	  	Prorations	  	26
	 Section 10.6
	  	Delivery of Real Property	  	26
	 Section 10.7
	  	Costs of Title Company and Closing Costs	  	26
	 Section 10.8
	  	Microsoft Tenant Improvement Allowance	  	27
	 Section 10.9
	  	Post-Closing Delivery of Service Contract Notice	  	27

  

 -II- 

					
	 ARTICLE XI.
	  	Brokerage	  	27
			
	 Section 11.1
	  	Brokers	  	27
			
	 ARTICLE XII.
	  	Confidentiality	  	27
			
	 Section 12.1
	  	Confidentiality	  	27
			
	 ARTICLE XIII.
	  	Remedies	  	28
			
	 Section 13.1
	  	Purchaser’s Remedies	  	28
	 Section 13.2
	  	Default By Purchaser	  	29
	 Section 13.3
	  	Consequential and Punitive Damages	  	30
			
	 ARTICLE XIV.
	  	Notices	  	30
			
	 Section 14.1
	  	Notices	  	30
			
	 ARTICLE XV.
	  	Assignment and Binding Effect	  	31
			
	 Section 15.1
	  	Assignment; Binding Effect	  	31
			
	 ARTICLE XVI.
	  	Claims Period	  	32
			
	 Section 16.1
	  	Claims Period	  	32
			
	 ARTICLE XVII.
	  	Miscellaneous	  	32
			
	 Section 17.1
	  	Waivers	  	32
	 Section 17.2
	  	Recovery of Certain Fees	  	32
	 Section 17.3
	  	Time of Essence	  	32
	 Section 17.4
	  	Construction	  	32
	 Section 17.5
	  	Counterparts	  	33
	 Section 17.6
	  	Severability	  	33
	 Section 17.7
	  	Entire Agreement	  	33
	 Section 17.8
	  	Governing Law	  	33
	 Section 17.9
	  	No Recording	  	33
	 Section 17.10
	  	Further Actions	  	33
	 Section 17.11
	  	No Other Inducements	  	34
	 Section 17.12
	  	Exhibits	  	34
	 Section 17.13
	  	No Partnership	  	34
	 Section 17.14
	  	Limitations on Benefits	  	34

  

 -III- 

 EXHIBITS 
  

			
	Exhibit A	  	Personal Property
		
	Exhibit B	  	Legal Description
		
	Exhibit C	  	Service Contracts
		
	Exhibit D	  	Form of Earnest Money Note
		
	Exhibit E	  	Pending Proceedings
		
	Exhibit F	  	Form of GAC Lease
		
	Exhibit G	  	Form of Blanket Conveyance
		
	Exhibit H	  	Form of Deed
		
	Exhibit I	  	Form of Certificate as to Non-Foreign Status
		
	Exhibit J	  	Form of Microsoft Lease
		
	Exhibit K	  	Form of Microsoft Lease Termination Agreement

  

 -IV- 

 PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS 
  
 THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (this
“Agreement”) is entered into and effective for all purposes as of January 13, 2006 (the “Effective Date”), by and between GENERAL AMERICA CORPORATION, a Washington corporation (“Seller”), and
MICROSOFT CORPORATION, a Washington corporation (“Purchaser”). 
  
 In consideration of the mutual promises, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser
agree as follows: 
  
 ARTICLE I. 
 DEFINITIONS 
  
 Section 1.1 Definitions. For purposes of this Agreement, the following capitalized terms have the meanings set forth in this
Section 1.1: 
  
 “Affiliate” means
any person or entity that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with Purchaser or Seller, as the case may be. For the purposes of this definition, “control”
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise, and the terms
“controlling” and “controlled” have the meanings correlative to the foregoing. 
  
 “Authorities” means the various governmental and quasi-governmental bodies or agencies having jurisdiction over Seller, the Real
Property, the Improvements, or any portion thereof. 
  
 “Blanket Conveyance” has the meaning ascribed to such term in Section 10.3(b). 
  
 “Brokers” has the meaning ascribed to such term in Section 11.1. 
  
 “Buildings” means the four (4) office buildings,
commonly known as the Olympic Building, the Adams Building, the Shasta Building, and the Rainier Building, the warehouse building, commonly known as the Pacific Building, and the two (2) parking structures, all located on the Real Property.

  
 “Business Day” means any day other than a
Saturday, Sunday or a day on which national banking associations are authorized or required to close. 
  
 “Cancellation Charges” has the meaning ascribed to such term in Section 2.3. 
  
 “Certificate as to Foreign Status” has the meaning ascribed
to such term in Section 10.4(g). 
  
 “Claims” has the meaning ascribed to such term in Section 5.3(b). 
  

 -1- 

 “Closing” means the consummation of the purchase and sale of the Property contemplated
by this Agreement, as provided for in Article X. 
  
 “Closing Date” means the date on which the Closing occurs, which date will be determined as provided in Section 10.2, or such earlier or later date to which Purchaser and Seller may hereafter agree in writing.

  
 “Closing Surviving Obligations” means the
rights, liabilities and obligations set forth in Sections 5.2, 5.3, 5.6 through 5.8, 8.1, 8.2, 10.5, 10.9, 11.1, 16.1 and 17.2. 
  
 “Commitment” has the meaning ascribed to such term in
Section 6.2. 
  
 “Covenants” means
the Declaration of Covenants, Conditions, and Restrictions recorded under Recording No. 20030307001274 of Official Records. 
  
 “Confidential Information” has the meaning ascribed to such term in Section 5.2(b). 
  
 “Data Center Agreement” means the agreement described in
Section 5.4. 
  
 “Data Center
Property” means Lot 4 of Safeco-Redmond Campus II Binding Site Plan according to Plat recorded in Volume 212 of Plats, at Pages 91 through 95, in King County, Washington. 
  
 “Deed” has the meaning ascribed to such term in
Section 10.4(a). 
  
 “Deposit Time”
has the meaning ascribed to such term in Section 3.2. 
  
 “Development Agreement” means the Development Agreement recorded under Recording No. 9808200229 of Official Records, as amended by instruments under Recording Nos. 20040223002040 and 20040811002099 of Official
Records. 
  
 “Documents” has the meaning ascribed
to such term in Section 5.2. 
  
 “Earnest
Money Deposit” has the meaning ascribed to such term in Section 4.1. 
  
 “Earnest Money Note” means the promissory note in the form attached hereto as Exhibit D. 
  
 “Effective Date” has the meaning ascribed to such term in the opening paragraph of this Agreement. 
  
 “Environmental Laws” means all federal, state and local
environmental laws, ordinances, rules, statutes, directives, binding written interpretations, binding written policies, and regulations issued by any Authorities and in effect as of the Effective Date with respect to or that otherwise pertain to or
affect any portion of the Real Property or the Improvements or the use, ownership, occupancy or operation of any portion of the Real Property or the Improvements, as same have been amended, modified or supplemented from time to time prior to the
date of this Agreement, including, but not limited to, the National Environmental Policy Act (42 U.S.C. 

  

 -2- 

 
§ 4321 et seq.), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.)
(“CERCLA”), as amended by the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.), the Hazardous Substances Transportation Act (49 U.S.C. § 1802 et seq.), the Resource Conservation and
Recovery Act (42 U.S.C. § 6901 et seq.) (“RCRA”), as amended by the Hazardous and Solid Wastes Amendments of 1984 (U.S.C. § et seq.), the Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Safe
Drinking Water Act (42 U.S.C. § 300f et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Clean Water Act (33 U.S.C. § 1321 et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.), the Toxic
Substances Control Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. § 11001 et seq.), the Radon and Indoor Air Quality Research Act (42 U.S.C. § 7401 note, et
seq.), the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), as such laws have been amended and/or supplemented from time to time prior to the date of this Agreement, comparable state and local laws, and any and all rules and
regulations promulgated under any of the above that have become effective prior to the Effective Date under any and all of the aforementioned laws. 
  
 “Escrow Instructions” has the meaning ascribed to such term in Section 4.2. 
  
 “GAC Lease” means the Lease of the Property (exclusive of
Lot 1) from Purchaser to Seller in the form of Exhibit F. 
  
 “Governmental Regulations” means all federal, state and local laws, ordinances, rules, statutes, directives, binding written interpretations, binding written policies, and regulations issued by any
Authorities applicable to Seller, the Real Property or the Improvements, or the use, ownership, occupancy or operation of any portion of the Real Property or the Improvements. 
  
 “Hazardous Substances” means all (a) asbestos, radon gas, electromagnetic waves, urea formaldehyde
foam insulation and transformers or other equipment that contains dielectric fluid containing polychlorinated biphenyls (“PCBs”) of 50 ppm or greater, (b) any solid, liquid, gaseous or thermal contaminant, including smoke
vapor, soot, fumes, acids, alkalis, chemicals, waste, petroleum products or byproducts, asbestos, PCBs, phosphates, lead or other heavy metals, chlorine, or radon gas, (c) any solid or liquid wastes (including hazardous wastes), hazardous air
pollutants, hazardous substances, hazardous chemical substances and mixtures, toxic substances, pollutants and contaminants, as such terms are defined in any Environmental Law, and any and all rules and regulations promulgated under any of the
above, and (d) any other chemical, material or substance, the use or presence of which, or exposure to the use or presence of which, is prohibited, limited or regulated by any Environmental Laws, as the same exist on the Effective Date.

  
 “Improvements” means Seller’s interest
in all buildings, structures, fixtures, parking areas and other improvements located on the Real Property prior to the Closing. 
  
 “Independent Consideration” has the meaning ascribed to such term in Section 3.3. 
  
 “Inspection Period” has the meaning ascribed to such term in
Section 5.1(a). 
  
 “Inspections” has
the meaning ascribed to such term in Section 5.1(a). 
  

 -3- 

 “Invasive Testing” has the meaning ascribed to such term in Section 5.1(a).

  
 “Invasive Testing Plan” has the meaning
ascribed to such term in Section 5.1(a). 
  
 “Licensee Parties” has the meaning ascribed to such term in Section 5.1(a). 
  
 “Licenses and Permits” means all licenses, permits, certificates of occupancy, approvals, dedications, subdivision maps and entitlements
now or hereafter issued, approved or granted by the Authorities in connection with the Real Property, the Improvements, or the Personal Property generally to the extent assignable or transferable (together with all renewals, supplements, and
modifications thereof). 
  
 “Microsoft Lease”
means that certain lease between Seller as landlord and Purchaser as tenant for 218,496 square feet of space in the Olympic Building in the form attached hereto as Exhibit J. 
  
 “Microsoft Lease Termination Agreement” means the instrument
terminating the Microsoft Lease in the form of Exhibit K. 
  
 “Occupants” means the parties currently occupying portions of the Property, being Affiliates of Seller and certain licensees of Seller or such Affiliates. 
  
 “Official Records” means the Official Records of King
County, Washington. 
  
 “Permitted Exceptions”
means and includes all of the following: (a) matters attributable to the acts or omissions of Purchaser or its employees, agents, contractors or consultants; (b) rights reserved in federal patents or state deeds; (c) building and use
restrictions general to the area; (d) building and zoning codes; and (e) the other matters approved or deemed approved by Purchaser pursuant to Section 6.2 hereof. 
  
 “Permitted Outside Parties” has the meaning ascribed to such term in Section 5.2(b).

  
 “Personal Property” means all of
Seller’s right, title and interest in and to all equipment, tools, supplies and other tangible personal property that is or will be attached to, appurtenant to, located in and used exclusively in connection with the use, ownership, occupancy,
or operation of the Real Property, as opposed to the business of Seller, including the items described on Exhibit A attached hereto. 
  
 “Property” has the meaning ascribed to such term in Section 2.1. 
  
 “Purchase Price” has the meaning ascribed to such term in
Section 3.1. 
  
 “Purchaser’s Closing
Conditions” has the meaning ascribed to such term in Section 10.1. 
  
 “Purchaser’s Information” has the meaning ascribed to such term in Section 5.2(c). 
  

 -4- 

 “Real Property” means those certain parcels of real property located in Redmond,
Washington, as more particularly described on Exhibit B attached hereto and made a part hereof, together with all of Seller’s right, title and interest in and to any appurtenances pertaining thereto, including, but not
limited to, Seller’s right, title and interest in and to the adjacent streets, alleys and right-of-ways, and any easement rights, air rights, subsurface rights, development rights, entitlements and water rights appurtenant thereto. 

 
 “Records and Plans” means, collectively: (i) books
and records relating solely to the Real Property or the Improvements; (ii) structural reviews, architectural drawings and environmental, engineering, soils, seismic, geologic, architectural, and other consulting reports, studies and
certificates pertaining to the Real Property or the Improvements; and (iii) all preliminary, final and proposed plans, specifications and drawings of the Improvements or the Real Property. The terms “Records and Plans” shall not
include (1) any document or correspondence that is subject to the attorney-client privilege or constitutes work product; (2) any document or item that Seller is bound to keep strictly confidential pursuant to the terms of any Governmental
Regulation that became effective prior to the date of this Agreement or to the terms of any arms-length contract entered into prior to the date of this Agreement with any person or entity that is not an Affiliate of Seller; (3) any documents
pertaining to the marketing of the Property for sale to prospective purchasers; (4) any internal memoranda, reports or assessments of Seller or Seller’s Affiliates relating to Seller’s valuation of the Property; (5) appraisals of
the Property; and (6) records and documents related to the business of Seller. 
  
 “Reporting Person” has the meaning ascribed to such term in Section 4.7. 
  
 “Safeco” means Safeco Insurance Company of America. 
  
 “Seller’s Control” means in the possession of or under the control of Seller or its Affiliates.

  
 “Seller Representatives” has the meaning
ascribed to such term in Section 5.1(a). 
  
 “Service Contracts” means, to the extent assignable or transferable, all service agreements, maintenance contracts, equipment leasing agreements, warranties, guarantees, bonds, open purchase orders and other contracts for
the provision of labor, services, materials or supplies relating solely to the Property and under which Seller is or as of the Closing will be paying for or receiving compensation for services rendered in connection with the Property, including the
contracts and other agreements listed and described on Exhibit C attached hereto, together with all renewals, supplements, amendments and modifications thereof, and any new such agreements entered into after the Effective Date, to
the extent permitted by Section 7.1, except that any leasing, brokerage or management agreements will be terminated at the Closing and are excluded from such term, as are those Service Contracts that Purchaser advises Seller during the
Inspection Period are not be assumed by Purchaser at Closing and which can be terminated at Closing without cost or penalty to Seller. 
  
 “Significant Portion” means, for purposes of Article IX, (i) loss or damage to the Property or any portion thereof such
that the cost of repairing or restoring the premises in question to a condition substantially identical to that of the premises in question prior to the 

  

 -5- 

 
event of damage would be, in the opinion of a qualified unbiased architect selected by Purchaser in its reasonable discretion, equal to or greater than Ten
Million Dollars ($10,000,000); or (ii) any loss due to a condemnation which permanently and materially impairs the current use of any of the Buildings. 
  
 “Survey” has the meaning ascribed to such term in Section 6.1. 
  
 “Termination Surviving Obligations” means the rights, liabilities and obligations set forth in
Sections 5.2, 5.3, 5.6 through 5.8, 11.1, 12.1, Article XIII, and Section 17.2. 
  
 “Title Company” means First American Title Insurance Company, Seattle, Washington. 
  
 “Title Documents” has the meaning ascribed to such term in
Section 6.2(a). 
  
 “Title Objections” has
the meaning ascribed to such term in Section 6.2(b). 
  
 “Title Policy” has the meaning ascribed to such term in Section 6.3. 
  
 “To Seller’s Knowledge” or other similar phrases means only matters actually within the current, actual knowledge with no duty of
due diligence or inquiry of Mark Thunberg and Jeff Hencz and expressly excludes imputed knowledge. Such persons have not undertaken or inquired into (having no duty to undertake or to inquire into) any independent investigation or verification of
the matters set forth in any representation or warranty, including without limitation an investigation or review of any documents, certificates, agreements or information that may be in, or may hereafter come into, the possession of Seller or any
entity affiliated in any manner with Seller. Purchaser acknowledges that the individuals named above are named solely for the purpose of defining and narrowing the scope of Seller’s knowledge and not for the purpose of imposing any liability on
or creating any duties running from such individuals to Purchaser. 
  
 “Trip Cap Agreement” means the Safeco Trip Cap Agreement recorded under Recording No. 9804290364 of Official Records, as amended by instrument recorded under Recording No. 20040811002098 of Official Records, and
as it may be affected by Section 4(c) of the Development Agreement. 
  
 Section 1.2 References; Exhibits and Schedules. Except as otherwise specifically indicated, all references in this Agreement to Articles or Sections refer to Articles or Sections of this Agreement,
and all references to Exhibits or Schedules refer to Exhibits or Schedules attached hereto, all of which Exhibits and Schedules are incorporated into, and made a part of, this Agreement by reference. The words “herein,”
“hereof,” “hereinafter” and words and phrases of similar import refer to this Agreement as a whole and not to any particular Section or Article. 
  

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 ARTICLE II. 
 AGREEMENT OF PURCHASE AND SALE 
  
 Section 2.1 Agreement. Seller hereby agrees to sell, convey and assign to Purchaser, and Purchaser hereby agrees to purchase and accept from Seller, on the Closing Date and subject to the terms and conditions of this
Agreement, all of the following (collectively, the “Property”): 
  
 (a) the Real Property; 
  
 (b) the Improvements; 
  
 (c) the Personal Property; 
  
 (d) all of Seller’s interest under the Development Agreement; 
  
 (e) all of Seller’s interest under the Service Contracts and the Licenses and Permits; 
  
 (f) to the extent assignable or transferable, all of
Seller’s interest in Property names, trade names and telephone numbers used by Seller exclusively in the operation and identification of the Improvements, but expressly excluding the names of Seller and its Affiliates and all derivations
thereof; 
  
 (g) to the extent assignable or
transferable, all of Seller’s interest in all other intangible rights and other interests, privileges and appurtenances related to or used exclusively in connection with the use, ownership, occupancy or operation of the Real Property or the
Improvements; 
  
 (h) the Records and Plans, but
only to the extent such Records and Plans are in Seller’s Control; and 
  
 (i) all of Seller’s interest under all assignable warranties relating to any of the Improvements. 
  
 Section 2.2 Indivisible Economic Package. Purchaser has no right to purchase, and Seller has no obligation to sell, less than all of
the Property, it being the express agreement and understanding of Purchaser and Seller that, as a material inducement to Seller and Purchaser to enter into this Agreement, Purchaser has agreed to purchase, and Seller has agreed to sell, all of the
Property, subject to and in accordance with the terms and conditions hereof. 
  
 Section 2.3 Special Termination Right. Notwithstanding any other provision of this Agreement, Seller shall have the right to terminate this Agreement by written notice of such termination given to
Purchaser on or before the date that is three (3) months after the Effective Date, in the event Seller determines, in its discretion, that it is not prudent to proceed with the development of new buildings on Seller’s University District
campus in Seattle, Washington. Otherwise, Seller’s right to terminate this Agreement pursuant to this Section 2.3 shall automatically lapse. If Seller terminates this Agreement pursuant to the preceding sentence, 

  

 -7- 

 
(i) Title Company shall return the Earnest Money Deposit to Purchaser, (ii) Purchaser shall promptly return the Purchaser’s Information to
Seller, (iii) the parties shall equally share any cancellation charges imposed by the Title Company (“Cancellation Charges”), (iv) Seller shall reimburse Purchaser for all out-of-pocket expenses incurred by Purchaser in
connection with its inspection of the Property pursuant to Article V, and (v) this Agreement shall terminate and be of no further force and effect except for the Termination Surviving Obligations. Purchaser shall provide Seller with
a statement of such out-of-pocket expenses within ten (10) days after Purchaser’s receipt of Seller’s notice of termination pursuant to this Section, and Seller shall reimburse Purchaser for such expenses within ten (10) days
after Seller’s receipt of Purchaser’s statement. 
  
 Section 2.4 GAC Lease. At the Closing, Purchaser and Seller shall execute and deliver the GAC Lease. 
  
 Section 2.5 Microsoft Lease Termination. At the Closing, the parties shall execute and deliver the Microsoft Lease Termination
Agreement. 
  
 Section 2.6 Data Center
Agreement. At the Closing, Microsoft and Seller shall execute and deliver the Data Center Agreement. 
  
 ARTICLE III. 
 CONSIDERATION 
  
 Section 3.1 Purchase Price. The purchase price for the
Property (the “Purchase Price”) will be Two Hundred Nine Million Five Hundred Thousand and No/100 Dollars ($209,500,000.00) in lawful currency of the United States of America, payable as provided in Section 3.2.

  
 Section 3.2 Method of Payment of Purchase
Price. Not later than 3:00 p.m. Pacific Standard Time on the last business day preceding the Closing Date (the “Deposit Time”), Purchaser will deposit in escrow with the Title Company the Purchase Price (subject to
adjustments described in Section 10.5), together with all other costs and amounts to be paid by Purchaser at Closing pursuant to the terms of this Agreement, by Federal Reserve wire transfer of immediately available funds to an account
to be designated by the Title Company. On the Closing Date: (a) Purchaser will direct and instruct the Title Company to (i) pay to Seller by Federal Reserve wire transfer of immediately available funds to an account to be designated by
Seller, the Purchase Price (subject to adjustments described in Section 10.5), less any costs or other amounts to be paid by Seller at Closing pursuant to the terms of this Agreement, and (ii) pay to all appropriate payees the other
costs and amounts to be paid by Purchaser at Closing pursuant to the terms of this Agreement; and (b) Seller will cause the Title Company to pay to all appropriate payees, out of the proceeds of Closing payable to Seller, all costs and amounts
to be paid by Seller at Closing pursuant to the terms of this Agreement. 
  
 Section 3.3 Independent Consideration. Contemporaneously with the execution and delivery of this Agreement, Purchaser has paid to Seller as further consideration for this Agreement, in cash, the sum
of $100.00 (the “Independent Consideration”), in addition to the Earnest Money Deposit and the Purchase Price and independent of any other consideration 

  

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provided hereunder, which Independent Consideration is fully earned by Seller and is not refundable under any circumstances. 
  
 ARTICLE IV. 
 EARNEST MONEY DEPOSIT AND ESCROW INSTRUCTIONS 
  
 Section 4.1 The Deposit. Within five (5) Business Days after the Effective Date, Purchaser shall deposit the Earnest Money Note
with the Title Company. If Purchaser does not exercise its right to terminate this Agreement pursuant to Section 5.5 hereof, then on or before the expiration of the Inspection Period, Purchaser shall deposit cash in the amount of Four
Million and No/100 Dollars ($4,000,000) with Title Company in payment of the Earnest Money Note, and the Earnest Money Note shall be returned to Purchaser. The Earnest Money Note and the cash deposited in payment thereof (together with any
interest earned thereon, are referred to herein as the “Earnest Money Deposit”, which will be held in escrow by the Title Company and disbursed pursuant to the terms of this Agreement. Failure to deposit the Earnest Money Note or
cash in payment thereof in accordance with the terms hereof shall result in the termination of this Agreement. 
  
 Section 4.2 Escrow Instructions. Article IV constitutes the escrow instructions to the Title Company with regard to the
Earnest Money Deposit and the Closing (the “Escrow Instructions”). By its execution of the joinder attached hereto, the Title Company agrees to be bound by the provisions of this Article IV. If any requirements relating
to the duties or obligations of the Title Company hereunder are not acceptable to the Title Company, or if the Title Company requires additional instructions, the parties agree to make such deletions, substitutions and additions to the Escrow
Instructions as Purchaser and Seller hereafter mutually approve in writing, provided that neither party shall be obligated to make any such deletions, substitutions or additions that substantially alter this Agreement or its intent. In the event of
any conflict between this Agreement and such additional escrow instructions, this Agreement will control. 
  
 Section 4.3 Documents Deposited into Escrow. On or before the date that is one (1) business day prior to the Closing Date,
Purchaser will deliver in escrow to the Title Company the funds and documents described and provided for in Section 10.3 below and (c) Seller will deliver in escrow to the Title Company the documents described and provided for in
Section 10.4 below. 
  
 Section 4.4 Close
of Escrow. On the Closing Date, when Purchaser and Seller have delivered the documents required by Section 4.3, the Title Company will: 
  
 (a) If applicable and when required, file with the Internal Revenue Service (with copies to Purchaser and Seller) the reporting statement
required under Section 6045(e) of the Internal Revenue Code of 1986 (the “Code”) and Section 4.7; 
  
 (b) Insert the applicable Closing Date as the date of any document delivered to the Title Company undated, and assemble counterparts into
single instruments; 
  
 (c) Disburse to Seller,
by wire transfer to Seller of immediately available federal funds by 10:00 a.m. Pacific Standard Time on the Closing Date, in accordance with wiring instructions to be obtained by the Title Company from Seller, all sums to be received by 

  

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Seller from Purchaser at the Closing, comprised of the Purchase Price as adjusted in accordance with the provisions of this Agreement, less all amounts paid
by the Title Company in satisfaction of any liens or encumbrances on the Real Property pursuant to the written instructions of Seller or Seller’s counsel, and less all costs and amounts to be paid by Seller at Closing pursuant to the terms of
this Agreement; 
  
 (d) Deliver the Deed to
Purchaser by causing same to be recorded in the Official Records; 
  
 (e) Issue to Purchaser the Title Policy required by Section 6.3 of this Agreement; 
  
 (f) Deliver to Seller all documents deposited with the Title Company for delivery to Seller at the Closing; and 
  
 (g) Deliver to Purchaser (i) all documents deposited
with the Title Company for delivery to Purchaser at the Closing and (ii) any funds deposited by Purchaser in excess of the amount required to be paid by Purchaser pursuant to this Agreement. 
  
 Section 4.5 Maintenance of Confidentiality by Title
Company. Except as may otherwise be required by law or by this Agreement, Title Company will maintain in strict confidence and not disclose to anyone the existence of this Agreement, the identity of the parties hereto, the amount of the
Purchase Price, the provisions of this Agreement or any other information concerning the transactions contemplated hereby, without the prior written consent of Purchaser and Seller (which may be withheld in either party’s sole and absolute
discretion). 
  
 Section 4.6 Investment of Earnest
Money Deposit. When cash has been deposited with Title Company in payment of the Earnest Money Note, Title Company will invest and reinvest the Earnest Money Deposit, at the instruction and sole election of Purchaser, only in (a) bonds,
notes, Treasury bills or other securities constituting direct obligations of, or guaranteed by the full faith and credit of, the United States of America, and in no event maturing beyond Closing Date, or (b) an interest-bearing account at a
commercial bank acceptable to Seller, Purchaser and the Title Company. The investment of the Earnest Money Deposit will be at the sole risk of Purchaser and no loss on any investment will relieve Purchaser of its obligations to pay to Seller as
liquidated damages the amount of the Earnest Money Deposit as provided in Section 13.2, or of its obligation to pay the Purchase Price. All interest earned on the Earnest Money Deposit will be the property of Purchaser and will be
reported to the Internal Revenue Service as income. Purchaser will provide the Title Company with a taxpayer identification number and will pay all income taxes due by reason of interest accrual on the Earnest Money Deposit. 
  
 Section 4.7 Designation of Reporting Person. Title Company
shall comply with all applicable federal, state and local reporting and withholding requirements relating to the close of the transactions contemplated herein. Without limiting the foregoing, pursuant to Section 6045 of the Code, Title Company
shall be designated the “closing agent” hereunder and shall be solely responsible for complying with the Tax Reform Act of 1986 with regard to reporting all settlement information to the Internal Revenue Service. 
  

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 ARTICLE V. 
 INSPECTION OF PROPERTY 
  
 Section 5.1 Entry and Inspection. 
  
 (a) Subject to the provisions of this Section 5.1 and the obligations set forth in Section 5.3, from and after the Effective Date until 3:00 p.m. Pacific Standard Time on the date that is
thirty (30) days after the Effective Date (the “Inspection Period”), Seller will permit Purchaser and its employees and authorized agents, representatives, contractors and consultants (the “Licensee Parties”)
to enter upon the Real Property at all reasonable times during normal business hours to perform any inspections, investigations, studies, tests, evaluations and assessments of the Property (including, but not limited to, physical, structural,
mechanical, architectural, engineering, soils, geotechnical, and environmental / asbestos tests (generally, “Inspections”) as Purchaser deems necessary, appropriate or prudent in any respect and for all purposes in connection
with Purchaser’s acquisition of the Property and the consummation of the transaction contemplated by this Agreement. Purchaser shall notify Seller of the intention of Purchaser or any Licensee Party to enter the Real Property at least two
(2) business days prior to such intended entry and specify the intended purpose therefor and the Inspections contemplated to be made and/or the service provider, Authorities, or any other person with whom Purchaser or any Licensee Party
contemplates communicating. At Seller’s option, Seller or its employees or authorized agents, representatives, contractors or consultants (the “Seller Representatives”) may be present for any such entry or Inspection. With
respect to any Inspection that will require excavations, borings, drilling, removal or demolition of any portion of the Property, or any other invasive activities on the Property (generally, “Invasive Testing”), Purchaser shall
submit to Seller a written plan describing such Invasive Testing in reasonable detail (an “Invasive Testing Plan”) for Seller’s written approval, which approval may not be unreasonably withheld or delayed. Purchaser may not
proceed with any Invasive Testing unless Seller has expressly approved in writing the relevant Invasive Testing Plan, and Purchaser shall conduct all Invasive Testing in compliance with the Invasive Testing Plan approved by Seller. Seller shall have
the right to have a Seller Representative observe any testing activities and to request and receive split samples of any materials collected for analysis by Purchaser or any Licensee Party; provided, however, that Purchaser’s sole
responsibility shall be to notify Seller when Purchaser’s testing activities will be taking place, and Seller shall be solely responsible for causing a Seller Representative to be present to observe and/or to request and receive split material
samples. Purchaser Party shall repair any damage to the Property caused by any such Invasive Testing and restore it to its pre-existing condition promptly after any Invasive Testing, but in no event later than five (5) days after any
disturbance or damage occurs. 
  
 (b) Solely as
an accommodation to Purchaser in connection with Purchaser’s contemplated ownership and operation of the Property following the Closing and provided Purchaser has not exercised its right to terminate this Agreement pursuant to
Section 5.5, Purchaser shall have the right, after the expiration of the Inspection Period, to continue to perform Inspections regarding the Property provided that Purchaser complies with the provisions of this Agreement. 
  
 (c) Subject to the obligations set forth in
Section 5.3 below, the Licensee Parties shall have the right to communicate directly with Authorities for any good faith 

  

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reasonable purpose in connection with the transaction contemplated by this Agreement; provided, however, Purchaser shall provide Seller notice
at least two (2) business days prior to Purchaser communicating with any Authorities regarding the Property and Seller shall have the right to participate in any such communications. 
  
 Section 5.2 Document Review. 
  
 (a) Purchaser expressly acknowledges and confirms that during the Inspection Period and, if this Agreement
is not terminated, thereafter (but subject to Section 5.1 and this Section 5.2), Purchaser and the Licensee Parties shall have, the right to review, inspect, examine, analyze, verify and photocopy, at either the office of
Seller, Seller’s property manager or at the Real Property, all agreements, contracts, documents, information, reports, books, records and other materials pertinent to the use, ownership, occupancy, or operation of the Property, except those
excluded by the terms of the definition of Records and Plans, that are in Seller’s Control (collectively, the “Documents”), including, but not limited to, the following: (i) assessments (special or otherwise) and ad
valorem and personal property tax bills, covering the period of Seller’s ownership of the Property; (ii) copies of the Service Contracts, the Licenses and Permits, and the Records and Plans; and (iii) current inventories of the
Personal Property. 
  
 (b) Purchaser acknowledges
that information contained in any and all of the Documents may be proprietary and confidential in nature (“Confidential Information”) and that the Documents have been provided to Purchaser solely to assist Purchaser in determining
the feasibility of purchasing the Property. Subject only to the provisions of Article XII, Purchaser agrees not to disclose any Confidential Information to any party outside of Purchaser’s organization other than its attorneys,
partners, accountants, lenders, investors, or any Licensee Parties who need to know such Confidential Information for the purpose of giving advice to Purchaser with respect to the transactions contemplated by this Agreement (collectively, the
“Permitted Outside Parties”). Purchaser further agrees that within its organization, or as to the Permitted Outside Parties, the Confidential Information will be disclosed and exhibited only to those persons within Purchaser’s
organization or to those Permitted Outside Parties who are responsible for determining the feasibility of Purchaser’s acquisition of the Property. Purchaser agrees not to divulge any Confidential Information except in strict accordance with the
confidentiality standards set forth in this Section 5.2 and Article XII. In permitting Purchaser and the Permitted Outside Parties to review the Confidential Information to assist Purchaser, Seller has not waived any
privilege or claim of confidentiality with respect thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created by Seller and any such claims are expressly rejected by Seller
and waived by Purchaser and the Permitted Outside Parties, for whom, by its execution of this Agreement, Purchaser is acting as an agent with regard to such waiver. Notwithstanding any of the foregoing, Confidential Information shall not include
(i) information that is obtained by Purchaser from a third person who is not prohibited from transmitting the information to Purchaser, (ii) information that is available to the general public, or (iii) information that is
independently developed by Purchaser without reliance on any Confidential information. This Section 5.2(b) shall survive any termination of this Agreement but shall not survive the Closing. 
  
 (c) Purchaser will use commercially reasonable efforts to
return to Seller all copies Purchaser has made of the Documents and all copies of any studies, reports or test results 

  

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regarding any part of the Property obtained by Purchaser, before or after the execution of this Agreement, in connection with Purchaser’s inspection of
the Property, excluding (i) any proprietary documents or information (such as internally prepared valuations, projections or budgets or other analyses of the Property) and (ii) any attorney-client communications or other information which
Purchaser is contractually or otherwise legally bound to a third party to keep confidential (collectively, “Purchaser’s Information”) not later than ten (10) Business Days following the time this Agreement is terminated
for any reason. Any obligation to return Purchaser’s Information shall be subject to any legal requirement by which Purchaser may be bound to retain file copies and shall not require the return of any internal analysis of the Documents;
provided, however, that to the extent such analysis reflects any Confidential Information, Purchaser will not divulge any such analysis except in strict accordance with the confidentiality standards set forth in this
Section 5.2 and Article XII. 
  
 (d) Purchaser acknowledges that some of the Documents may have been prepared by third parties and may have been prepared prior to Seller’s ownership of the Property. Purchaser hereby acknowledges that, except as expressly provided in
Section 8.1 below, Seller has not made and does not make any representation or warranty regarding the truth, accuracy or completeness of the Documents or the sources thereof, Seller has not undertaken any independent investigation as to
the truth, accuracy or completeness of the Documents, and Seller is providing the Documents solely as an accommodation to Purchaser. 
  
 (e) Notwithstanding any provision of this Agreement to the contrary, no termination of this Agreement will terminate Purchaser’s
obligations pursuant to this Section 5.2. 
  
 Section 5.3 Entry and Inspection Obligations. 
  
 (a) Purchaser agrees that in entering upon the Property and conducting any Inspections, Purchaser and the other Licensee Parties will not: (i) unreasonably disturb the Occupants or unreasonably interfere with
their use of the Property; (ii) unreasonably or materially interfere with the operation and maintenance of the Real Property or Improvements; (iii) damage any part of the Property or any personal property owned or held by any Occupant or
any other person or entity (except for such damage incident to Purchaser’s or any Licensee Parties’ activities on the Property that is repaired by Purchaser); (iv) injure or otherwise cause bodily harm to Seller or any Occupant, or to
any of their respective agents, guests, invitees, contractors and employees, or to any other person or entity; (v) permit any liens to attach to the Real Property by reason of the exercise of Purchaser’s rights under this
Article V; (vi) communicate with any Occupants, Authorities, or service providers without prior written notice as provided in this Article V; or (vii) reveal or disclose any Confidential Information concerning the
Property and the Documents to anyone outside Purchaser’s organization, except in accordance with the confidentiality standards set forth in Section 5.2(b) and Article XII. Purchaser will: (x) maintain commercial
general liability insurance in an amount not less than $5,000,000 covering any accident arising in connection with the presence of Purchaser or the other Licensee Parties on the Real Property or the Improvements, and deliver a certificate of
insurance verifying such coverage to Seller prior to entry upon the Real Property or Improvements; (y) promptly pay when due the costs of all entry and Inspections done with regard to the Property; and (z) promptly repair any damage to the
Real Property and Improvements caused by any such entry upon the Real Property. 
  

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 (b) Purchaser hereby indemnifies, defends and holds Seller and its partners, agents,
employees, lenders, successors and assigns harmless from and against any and all liens, claims, causes of action, damages, liabilities, demands, suits, obligations to third parties, together with all losses, penalties, fines, costs and expenses
relating to any of the foregoing (including but not limited to court costs and reasonable attorneys’ fees) (generally, “Claims”) arising out of any inspections, investigations, examinations, sampling or tests conducted by
Purchaser or any Licensee Party, whether prior to or after the date hereof, or as a result of any violation of the provisions of this Section 5.3; provided, however, that Purchaser’s indemnity hereunder shall not
include any Claims resulting from the discovery of pre-existing conditions at the Property except to the extent such condition is aggravated by an act of Purchaser or any Licensee Party as a result of the Inspections. 
  
 (c) Notwithstanding any provision of this Agreement to the
contrary, neither the Closing nor a termination of this Agreement will terminate Purchaser’s obligations pursuant to this Section 5.3. 
  
 Section 5.4 Data Center Agreement. During the Inspection Period, Seller and Purchaser shall attempt to agree upon the form of an
agreement between Seller and Purchaser (the “Data Center Agreement”) relating to (i) easements benefiting and burdening the Real Property and the Data Center Property, (ii) the Covenants, (iii) the Development
Agreement, (iv) the Trip Cap Agreement as it relates to the Data Center Property, (v) a right of first offer in favor of Purchaser for the Data Center Property, and (vi) other matters relating to the separate ownership of the Real
Property and the Data Center Property. If the parties are unable to agree on the form of the Data Center Agreement by the expiration of the Inspection Period, either party may, by written notice to the other, terminate this Agreement. If either
party so terminates this Agreement, then the Title Company shall return the Earnest Money Note to Purchaser, Purchaser shall promptly return the Purchaser’s Information to Seller in accordance with Section 5.3, Seller and Purchaser
shall equally share any Cancellation Charges, and this Agreement shall terminate and be of no further force or effect except for the Termination Surviving Obligations. 
  
 Section 5.5 Termination Right. Purchaser, in its sole and absolute discretion, prior to the expiration of
the Inspection Period, may elect to terminate this Agreement and its obligations hereunder for any reason or no reason, without further liability except for the Termination Surviving Obligations. If Purchaser gives Seller written notice prior to the
expiration of the Inspection Period that it is not removing its inspection contingency, then the Title Company shall return the Earnest Money Note to Purchaser, Purchaser shall promptly return the Purchaser’s Information to Seller in accordance
with Section 5.3, Seller and Purchaser shall equally share any Cancellation Charges, and this Agreement shall terminate and be of no further force or effect except for the Termination Surviving Obligations. Otherwise, Purchaser’s
right to terminate this Agreement pursuant to this Section 5.5 shall automatically lapse. 
  
 Section 5.6 Sale “As Is”. THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT HAS BEEN NEGOTIATED BETWEEN SELLER AND PURCHASER,
THIS AGREEMENT REFLECTS THE MUTUAL AGREEMENT OF SELLER AND PURCHASER, AND PURCHASER WILL CONDUCT DURING THE INSPECTION PERIOD ITS OWN INDEPENDENT EXAMINATION OF THE PROPERTY. OTHER THAN THE MATTERS REPRESENTED IN SECTION 8.1 HEREOF OR
THE DOCUMENTS DELIVERED BY 

  

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SELLER AT CLOSING, BY WHICH ALL OF THE FOLLOWING PROVISIONS OF THIS SECTION 5.6 ARE LIMITED, PURCHASER HAS NOT RELIED UPON AND WILL NOT RELY
UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER OR ANY OF SELLER’S AGENTS OR REPRESENTATIVES. SELLER SPECIFICALLY DISCLAIMS ANY REPRESENTATION, WARRANTY OR ASSURANCE WHATSOEVER TO PURCHASER AND NO WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR CHARACTER, EITHER EXPRESS OR IMPLIED, MAY BE RELIED UPON BY PURCHASER WITH RESPECT TO THE STATUS OF TITLE TO OR THE MAINTENANCE, REPAIR, CONDITION, DESIGN OR MARKETABILITY OF ANY PORTION OF THE PROPERTY, INCLUDING BUT
NOT LIMITED TO (a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, (b) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, (c) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS,
(d) THE FINANCIAL CONDITION OR PROSPECTS OF THE PROPERTY AND (e) THE COMPLIANCE OR LACK THEREOF OF THE REAL PROPERTY OR THE IMPROVEMENTS WITH GOVERNMENTAL REGULATIONS, IT BEING THE EXPRESS INTENTION OF SELLER AND PURCHASER THAT, EXCEPT AS
EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING, THE PROPERTY WILL BE CONVEYED AND TRANSFERRED TO PURCHASER IN ITS PRESENT CONDITION AND STATE OF REPAIR, “AS IS” AND “WHERE IS”, WITH ALL
FAULTS. PURCHASER REPRESENTS THAT IT IS A KNOWLEDGEABLE, EXPERIENCED AND SOPHISTICATED PURCHASER OF REAL ESTATE, AND THAT IT IS RELYING SOLELY ON ITS OWN EXPERTISE AND THAT OF PURCHASER’S CONSULTANTS IN PURCHASING THE PROPERTY. DURING THE
INSPECTION PERIOD, PURCHASER WILL CONDUCT SUCH INDEPENDENT INSPECTIONS OF THE PROPERTY AND RELATED MATTERS AS PURCHASER DEEMS NECESSARY, INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND WILL RELY UPON SAME AND
NOT UPON ANY STATEMENTS OF SELLER (EXCLUDING THE LIMITED MATTERS REPRESENTED BY SELLER IN SECTION 8.1 HEREOF OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING) OR OF ANY OFFICER, DIRECTOR, EMPLOYEE, AGENT OR ATTORNEY OF SELLER. PURCHASER
ACKNOWLEDGES THAT ALL INFORMATION OBTAINED OR THAT WILL BE OBTAINED BY PURCHASER WAS OR WILL BE OBTAINED FROM A VARIETY OF SOURCES AND SELLER WILL NOT BE DEEMED TO HAVE REPRESENTED OR WARRANTED THE COMPLETENESS, TRUTH OR ACCURACY OF ANY OF THE
DOCUMENTS OR OTHER SUCH INFORMATION HERETOFORE OR HEREAFTER FURNISHED TO PURCHASER THAT WAS CREATED, PREPARED, COMPILED, OR AUTHORED BY ANY PERSON OR ENTITY OTHER THAN SELLER OR ANY OF ITS AFFILIATES. EXCEPT AS MAY BE EXPRESSLY PROVIDED OTHERWISE IN
THIS AGREEMENT OR THE DOCUMENTS DELIVERED BY SELLER AT CLOSING, UPON CLOSING, PURCHASER WILL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY
PURCHASER’S INSPECTIONS AND SELLER WILL SELL AND CONVEY TO PURCHASER, AND PURCHASER WILL ACCEPT THE PROPERTY, “AS IS, WHERE IS,” WITH ALL FAULTS. PURCHASER FURTHER ACKNOWLEDGES AND 

  

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AGREES THAT SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY
FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON, UNLESS THE SAME ARE SPECIFICALLY SET FORTH OR REFERRED TO HEREIN. PURCHASER, WITH PURCHASER’S COUNSEL, HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET FORTH IN
THIS AGREEMENT, AND UNDERSTANDS THE SIGNIFICANCE AND EFFECT THEREOF. PURCHASER ACKNOWLEDGES AND AGREES THAT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH HEREIN ARE AN INTEGRAL PART OF THIS AGREEMENT. THE TERMS AND CONDITIONS OF THIS
SECTION 5.6 WILL EXPRESSLY SURVIVE THE CLOSING, WILL NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENTS AND WILL BE INCORPORATED INTO THE DEED. 
  

	
	
	 /s/ CRO

	 Purchaser’s Initials

  
 Section 5.7
Material Defects. Purchaser, on behalf of itself, its successors and assigns, hereby releases the Seller and its Affiliates, officers, directors, members, employees, contractors, agents, investment advisors and their respective successors
and assigns (collectively “Indemnitees”) from and against any and all Claims known or unknown, arising out of, or related in any way to the condition of the Property, the condition of the structure of the Improvements or any
equipment, systems and appliances related thereto, including any heating, ventilation, plumbing, electrical and air conditioning systems, wiring, telecommunications systems, paving, roofing and other such aspects of the Property, (including without
limitation any liability of Indemnitees for latent defects). The foregoing shall not apply to any Claims based on a breach of the representations and warranties contained in Section 8.1 or the documents delivered by Seller at Closing.
The provisions of this Section 5.7 shall survive indefinitely any Closing or termination of this Agreement and shall not be merged into the Closing documents. 
  
 Section 5.8 Hazardous Materials Waiver. Except with regard to any liability on the part of Seller for
breach of Seller’s representations and warranties set forth in Section 8.1 of this Agreement or the documents delivered by Seller at Closing, Purchaser, on behalf of itself, its successors and assigns, hereby releases the
Indemnitees from and against any and all Claims known or unknown, arising out of, related in any way to the presence, misuse, use, disposal, release or threatened release of any Hazardous Substances at the Property and any liability or Claim related
to the Property arising under any Environmental Laws. Purchaser acknowledges that unknown and unsuspected Hazardous Substances may hereafter be discovered on or about the Property, and Purchaser knowingly releases Seller from any and all liability
related thereto. The provisions of this Section 5.8 shall survive indefinitely any Closing or termination of this Agreement and shall not be merged into the Closing documents. 
  
 ARTICLE VI. 
 TITLE AND SURVEY MATTERS 
  
 Section 6.1
Survey. Seller shall deliver to Purchaser a copy of the survey prepared by Entranco Engineers in connection with the 2003 Binding Site Plan, and any later survey of the 

  

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Property in Seller’s possession. Purchaser has ordered an update of the Entranco survey from W&H Pacific (collectively the
“Survey”). 
  
 Section 6.2 Title
Commitment. 
  
 (a) Purchaser has
requested the Title Company to furnish to Purchaser and Seller a preliminary report (the “Commitment”) for an owner’s policy of title insurance in ALTA form, together with legible copies of all documents referenced as
exceptions therein (the “Title Documents”). 
  
 (b) Purchaser shall have until 3:00 p.m. Pacific Standard Time on the date ten (10) days after the Effective Date to object in writing to any exceptions or matters shown on or disclosed by the Commitment, the
Title Documents or the Survey (individually, a “Title Objection” and collectively, the “Title Objections”). Unless Purchaser shall timely object to any exceptions or matters shown on or disclosed by the Commitment,
the Title Documents, or the Survey, all such exceptions and matters shall be deemed to constitute additional Permitted Exceptions. Seller may elect (but, subject to Section 6.2(c), shall not be obligated) to remove or cause to be
removed, or insured over, at Seller’s expense, any Title Objections, and shall be entitled to a reasonable adjournment of the Closing (not to exceed thirty (30) days) for the purpose of such removal, which removal shall be deemed effected
by the issuance of title insurance, in form and substance acceptable to Purchaser, eliminating or insuring against the effect of the Title Objections. Seller shall notify Purchaser in writing within five (5) Business Days after receipt of
Purchaser’s notice of Title Objections whether Seller elects to remove or attempt to obtain title insurance endorsing over the same. If Seller fails to provide such notice, Seller shall be deemed to have elected not to cure such Title
Objections. If Seller elects not to remove or endorse over one or more Title Objections, Purchaser may terminate this Agreement as provided in Section 5.5. If Seller elects to remove or attempt to obtain title insurance endorsing over
the Title Objections and Seller does not remove or endorse over any Title Objections in a manner reasonably acceptable to Purchaser prior to the Closing, then, Purchaser may either (i) terminate this Agreement by giving written notice of such
termination to Seller and the Title Company, in which event the Title Company shall return the Earnest Money Deposit (and any interest accrued thereon) to Purchaser, Purchaser shall promptly return the Purchaser’s Information to Seller in
accordance with Section 5.3(c), the parties shall equally share the Cancellation Charges) and thereafter the parties shall have no further rights or obligations hereunder except for the Termination Surviving Obligations; or
(ii) waive such Title Objections, in which event such Title Objections shall be deemed additional Permitted Exceptions and the Closing shall occur as herein provided without any reduction of or credit against the Purchase Price. Purchaser shall
be deemed to have elected to waive such Title Objections pursuant to clause (ii) of the preceding sentence in the event Purchaser has not terminated this Agreement pursuant to clause (i) of the preceding sentence within two
(2) business days after Purchaser receives notice that such Title Objections will not be cured to Purchaser’s reasonable satisfaction. 
  
 (c) Notwithstanding any provision of this Section 6.2 to the contrary, Seller will be obligated to cure exceptions to title to
the Property relating to (i) liens and security interests securing loans obtained by Seller, (ii) any other monetary liens or security interests not created by Purchaser, (iii) all taxes and assessments due and payable for any period
prior to the 

  

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Closing, and (iv) all exceptions or matters created by Seller after the effective date of this Agreement without the prior written consent of Purchaser
(which consent may be withheld in Purchaser’s sole and absolute discretion). If, prior to the Closing, Seller does not remove any of the foregoing exceptions, then Purchaser may (x) terminate this Agreement by delivering written notice of
such termination to Seller and the Title Company, in which event the Title Company shall return the Earnest Money Deposit (and any interest accrued thereon) to Purchaser, Purchaser shall return the Purchaser’s Information to Seller in
accordance with Section 5.3(c), the parties shall equally share the Cancellation Charges and thereafter the parties shall have no further rights or obligations hereunder except for the Termination Surviving Obligations; (y) waive
Seller’s performance hereunder, in which event such exceptions shall be deemed additional Permitted Exceptions and the Closing shall occur as herein provided, without any reduction of or credit against the Purchase Price except that if the
exception not removed is a lien described in this subsection (c)(i), (ii), or (iii), Purchaser shall be entitled to a credit against the Purchase Price in the amount of such lien, or (z) seek specific performance of this Agreement. 

 
 Section 6.3 Title Insurance. At Closing, the Title
Company shall issue to Purchaser or be irrevocably committed to issue to Purchaser an ALTA Extended Coverage Owner’s Policy of Title Insurance in the amount of the Purchase Price, insuring fee simple title to the Real Property and the
Improvements is vested in Purchaser in the form of, and with the endorsements contained in, the Commitment, subject only to the Permitted Exceptions (the “Title Policy”). Purchaser, at Purchaser’s expense, shall be entitled to
request that the Title Company provide such endorsements to the Title Policy as Purchaser may require, provided that the Closing shall not be delayed as a result of Purchaser’s request for such endorsements. 
  
 ARTICLE VII. 
 INTERIM OPERATING COVENANTS 
  
 Section 7.1 Interim Operating Covenants. Seller covenants to Purchaser that Seller will: 
  
 (a) Operations. From the Effective Date until Closing, continue to operate, manage and maintain the Improvements in the ordinary
course of Seller’s business and substantially in accordance with Seller’s practice as of the Effective Date, subject to ordinary wear and tear and further subject to Article IX of this Agreement. 
  
 (b) Maintain Insurance. From the Effective Date until
Closing, maintain fire and extended coverage insurance on the Property in the amount of the full replacement cost thereof which is at least equivalent in all material respects to the insurance policies covering the Real Property and the Improvements
as of the Effective Date. 
  
 (c) Leases.
From the Effective Date until Closing, not enter into any new leases or any amendments, expansions or renewals of any lease, other than the Microsoft Lease, and not accept any rent from any tenant for more than one (1) month in advance of its
due date without the prior written consent of Purchaser, which consent will be deemed given unless written objection thereto is given within five (5) Business Days after receipt of the relevant written information. Purchaser’s consent may
be withheld in Purchaser’s sole and absolute discretion. 
  

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 (d) Service Contracts. From the Effective Date until Closing, not enter into any
service agreement, maintenance contract, equipment leasing agreement, or other contract for the provision of labor, services, materials or supplies, unless such agreement or contract is terminable on not more than thirty (30) days notice
without penalty or unless Purchaser consents thereto in writing, which consent will not be unreasonably withheld, delayed or conditioned. 
  
 (e) Personal Property. From the Effective Date until Closing, not transfer or remove any Personal Property from the Improvements
except for the purpose of repair or replacement thereof, provided, that, such repair or replacement is completed at Seller’s cost prior to the Closing and any Personal Property so replaced is replaced with such Personal Property of a like kind
and at least equal value to the Personal Property replaced. 
  
 (f) Notices. To the extent received by Seller, from the Effective Date until Closing, promptly deliver to Purchaser copies of written default notices, notices of lawsuits and notices of violations of
Governmental Regulations affecting the Property. 
  
 (g) Comply with Governmental Regulations. From the Effective Date until Closing, not take any action that Seller knows would result in a failure to comply in all material respects with all Governmental Regulations applicable to the
Property, it being understood and agreed, however, that prior to Closing, (i) Seller will have the right to contest any such Governmental Regulations, and (ii) Seller shall have no obligation to make any improvements or complete any
modifications to the Real Property or Improvements or expend any funds with respect to such improvements or modifications or to effect compliance with any Governmental Regulations. 
  
 ARTICLE VIII. 
 REPRESENTATIONS AND WARRANTIES 
  
 Section 8.1 Seller’s Representations and Warranties. The following constitute the sole representations and warranties of Seller. Subject to the limitations set forth in Article XVI of this Agreement,
Seller represents and warrants to Purchaser the following as of the Effective Date: 
  
 (a) Due Formation and Authorization. Seller is duly organized and validly existing under the laws of the state of its formation and
has all requisite power, authority and legal right to execute, deliver and perform the terms of this Agreement. This Agreement has been duly authorized by all necessary action on Seller’s part and constitutes valid and legally binding
obligations of Seller enforceable in accordance with their respective terms. 
  
 (b) Consent. No consent, approval or authorization by any individual or entity or any court, administrative agency or other governmental authority is required in connection with the execution and delivery of
this Agreement or the consummation of the transactions contemplated by this Agreement by Seller other than those consents, approvals and authorizations which shall be obtained by Seller prior to Closing. The consummation of the transactions
contemplated by this Agreement will not result in a breach of, or constitute a default under, any mortgage, deed of trust, bank loan, credit agreement or other instrument to which Seller is a party or by which Seller may be bound or affected.

  

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 (c) Suits and Proceedings. To Seller’s knowledge and except as listed in
Exhibit E, there are no legal actions, suits, or similar proceedings pending, or threatened, against Seller or the Property. 
  
 (d) Leases. There are no leases affecting the Property other than the Microsoft Lease and the rooftop agreement with respect to the
Olympic Building. Except for Purchaser as tenant under the Microsoft Lease, and Seller or Affiliates of Seller, no other party has the right to occupy any portion of the Property other than licensees of Seller or its Affiliates pursuant to licenses
terminable by Seller or such Affiliates on not more than thirty (30) days’ notice and the rooftop agreement with respect to the Olympic Building. 
  
 (e) Service Contracts. Attached as Exhibit C is, to Seller’s knowledge, a complete and accurate schedule of
all Service Contracts affecting the Property to which Seller is a party or by which it or, the Property is bound as of the date hereof. 
  
 (f) No Violations. Seller has not received any written notification from an Authority that the Property is (and Seller has no
knowledge that the Property is) in material violation of any applicable fire, health, building, use, occupancy or zoning laws or any other Governmental Regulation. 
  
 (g) Insolvency. No attachments, execution proceedings, assignments for the benefit of creditors,
insolvency, or other similar proceedings are pending and served, or, to Seller’s Knowledge, threatened, against Seller or the Property. 
  
 (h) Environmental. Except as shown in any environmental reports covering the Real Property and Improvements and any other Documents
delivered or otherwise made available to Purchaser pursuant to Section 5.2(a), to Seller’s Knowledge, Seller has not received prior to the Effective Date written notice from any Authorities, and, to Seller’s Knowledge, the Real
Property and Improvements are not in violation of any Environmental Law which violations have not been corrected. 
  
 (i) Bankruptcy. Seller has not made a general assignment for the benefit of creditors nor been adjudicated a bankrupt or insolvent,
nor has a receiver, liquidator, or trustee for any of Seller’s properties (including the Property) been appointed or a petition filed by or against Seller for bankruptcy, reorganization, or arrangement pursuant to the Federal Bankruptcy Act or
any similar Federal or state statute, or any proceeding instituted for the dissolution or liquidation of Seller. 
  
 (j) Condemnation. To Seller’s knowledge, no condemnation or other taking by eminent domain of the Property or any portion
thereof has been instituted affecting the Property or any portion thereof or its use. Section 9.3 hereof shall govern the parties’ rights and remedies in the event any condemnation or eminent domain proceedings are instituted after
the Effective Date. 
  
 (k) Insurance. To
Seller’s Knowledge, Seller has not received from any insurance company or any board of fire underwriters any letter of non-insurance citing a non-insurable condition at the Property which has not been remedied. 
  

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 If prior to Closing either party to this Agreement (each, a “Party”) comes to have actual knowledge of a
fact or circumstance, that would render a representation or warranty by Seller herein inaccurate in any material respect, when made, that Party shall promptly advise the other Party thereof in writing. Upon receiving or giving such notification,
Seller shall have the right take such action as shall be necessary in order to correct the representation or warranty which was incorrect. If Seller fails to notify Purchaser within ten (10) days after receiving Purchaser’s notice or
giving Purchaser such notice that Seller intends to take such action, then Purchaser’s sole remedy shall be to terminate this Agreement by notice to Seller given within five (5) Business Days after the expiration of such ten (10) day
period, in which case Purchaser shall be entitled to the return of the Deposit; otherwise, Purchaser shall be deemed to have waived any right to terminate this Agreement or to recover from Seller on account of such incorrectness. 
  
 Section 8.2 Purchaser’s Representations and
Warranties. Purchaser represents and warrants to Seller the following: 
  
 (a) Due Formation and Authorization. Purchaser is duly organized and validly existing under the laws of the state of its formation
is qualified to do business in the State of Washington and has all requisite power, authority and legal right to execute, deliver and perform the terms of this Agreement. This Agreement constitutes valid and legally binding obligations of Purchaser
enforceable in accordance with their respective terms. 
  
 (b) Non-Contravention. The execution and delivery of this Agreement and all other documents to be delivered prior to or at the Closing by Purchaser and the consummation by Purchaser of the transactions contemplated hereby and thereby
will not violate any Governmental Regulations or any judgment, order, injunction, decree, regulation or ruling of any court or Authority or conflict with, result in a breach of, or constitute a default under the organic documents of Purchaser, any
note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Purchaser is a party or by which it is bound. 
  
 (c) Consents. No consent, waiver, approval or
authorization is required from any person or entity (that has not already been obtained) in connection with the execution and delivery of this Agreement by Purchaser or the performance by Purchaser of the transactions contemplated hereby.

  
 ARTICLE IX. 
 CONDEMNATION AND CASUALTY 
  
 Section 9.1 Significant Casualty. If, prior to the Closing Date, all or a Significant Portion of the Real Property and Improvements are
destroyed or damaged by fire or other casualty, Seller will notify Purchaser of such casualty and Purchaser will have the option to elect either: (x) to proceed with this transaction and Closing in accordance with this Agreement notwithstanding
such damage or destruction, in which event Seller will have no obligation to repair such damage or destruction, and the Closing shall occur as otherwise provided in this Agreement; in such case, Seller shall assign to Purchaser upon the Closing all
insurance proceeds paid or payable to Seller in connection with such occurrences, other than proceeds expended prior to Closing in restoration and repair undertaken by Seller in its reasonable discretion and 

  

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any proceeds of business interruption or rent continuation insurance applicable to the period prior to Closing, and Purchaser shall receive a credit against
the Purchase Price equal to the amount of any deductible under Seller’s insurance applicable to such occurrences; or (y) to terminate this Agreement. Purchaser’s failure to deliver either of such notices to Seller and Title Company
within such five (5) business day period shall constitute Purchaser’s election to terminate this Agreement under clause (y) above. If this Agreement is terminated under clause (x) above, the Earnest Money Deposit
and all interest accrued thereon will be returned to Purchaser, the parties shall equally share the Cancellation Charges, and thereafter neither Seller nor Purchaser will have any further rights or obligations to the other hereunder except with
respect to the Termination Surviving Obligations. 
  
 Section 9.2 Casualty of Less Than a Significant Portion. If less than a Significant Portion of the Property is damaged as aforesaid, then Seller shall have no obligation to repair such damage or destruction, and the
Closing nevertheless shall occur as otherwise provided for in this Agreement, except that Seller shall, at Seller’s option, either (A) perform any necessary repairs, or (B) assign to Purchaser upon the Closing all insurance proceeds
paid or payable to Seller in connection with such occurrences, exclusive of any proceeds of business interruption or rent continuation insurance applicable to the period prior to Closing, in which event Purchaser shall receive a credit against the
Purchase Price equal to the amount of any deductible under Seller’s insurance applicable to such occurrences. 
  
 Section 9.3 Condemnation of Property. In the event that all or any Significant Portion of the Property shall be taken in condemnation
or under the right of eminent domain, Seller shall promptly notify Purchaser thereof. Within five (5) business days after receipt of the foregoing notice, Purchaser shall notify Seller, electing either: (a) to proceed with this transaction
and Closing in accordance with this Agreement notwithstanding such condemnation; or (b) to terminate this Agreement. If Purchaser elects to proceed with this transaction pursuant to clause (a) above, or if there is a taking in condemnation
or eminent domain that does not affect a Significant Portion of the Property, there shall be no reduction in the Purchase Price and Seller shall (x) deliver to Purchaser at the Closing, or as soon thereafter as available, any proceeds actually
received by Seller attributable to the Property from such condemnation or eminent domain proceeding, and (y) transfer and assign to Purchaser any and all rights Seller may have with respect to payments by or from and with respect to recovery
against any party for damages or compensation relating to the Property on account of such condemnation or eminent domain proceeding. A failure by Purchaser to notify Seller in writing within five (5) business days after receiving written notice
of such taking shall be deemed an election to proceed under clause (b) in this subsection. If Purchaser elects to proceed under clause (a) in this subsection, Seller shall not compromise, settle or adjust any claims to such
award without Purchaser’s prior written consent. In the event Purchaser notifies Seller (or is deemed to have notified Seller) of its election to terminate this Agreement pursuant to clause (b) above, the Earnest Money Deposit and
all interest accrued thereon will be returned to Purchaser, the parties shall equally share the Cancellation Charges, and thereafter neither Seller nor Purchaser will have any further rights or obligations to the other hereunder except with respect
to the Termination Surviving Obligations. 
  

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 ARTICLE X. 
 CLOSING 
  
 Section 10.1 Closing Conditions. 
  
 Section 10.1.1 Purchaser’s Closing Conditions. Purchaser’s obligation to consummate the Closing is subject to the following conditions precedent (“Purchaser’s Closing
Conditions”), which conditions may be waived by Purchaser in writing as its option: 
  
 (a) All representations and warranties made by Seller in this Agreement shall be true and correct in all material respects on and as of
the Closing Date, as if made on and as of such date, subject to any updates to the representations of which Seller notifies Purchaser after the Effective Date pursuant to Section 8.1 hereof. 
  
 (b) Seller shall have delivered all of the documents
required to be delivered by Seller pursuant to Section 10.4 and shall have performed in all material respects all of its other obligations, hereunder required to be performed by the Closing Date and complied with all conditions, required
by this Agreement to be performed or complied with by Seller at or prior to the Closing. 
  
 In the event the purchase and sale of the Property are not consummated because any condition precedent to Purchaser’s obligation to close set forth in this Section 10.1.1 has not been satisfied or
waived by Purchaser in writing by the Closing Date, the Deposit shall be returned to Purchaser, this Agreement shall terminate and neither party shall have any further rights or obligations hereunder. 
  
 Section 10.1.2 Seller’s Conditions to
Closing. Seller’s obligation to close the transactions contemplated by this Agreement is conditioned on all of the following, any or all of which may be waived by Seller in writing, at its sole option: 
  
 (a) All representations and warranties made by Purchaser in
this Agreement shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date; and 
  
 (b) Purchaser shall have delivered the funds required hereunder, including the balance of the Purchase Price, and all of the documents
required to be executed by Purchaser and shall have performed in all material respects all of its other obligations hereunder required to be performed by the Closing Date, and complied with all conditions, required by this Agreement to be performed
or complied with by Purchaser at or prior to the Closing. 
  
 Section 10.2 Closing. The Closing of the sale of the Property by Seller to Purchaser will occur on the Closing Date through the escrow established with the Title Company. At Closing, the events set forth in this
Article X will occur, it being understood that the performance or tender of performance of all matters set forth in this Article X are mutually concurrent conditions which may be waived by the party for whose benefit they are
intended. 
  

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 The Closing Date shall be the later of (i) the date ten (10) Business Days after the expiration
of the Inspection Period, and (ii) the date thirty (30) calendar days following: 
  
 (a) Seller receiving an acceptable Master Use Permit Director’s Decision from the City of Seattle Department of Planning and
Development with regard to the construction of Seller’s new corporate headquarters building in Seattle and the expiration of administrative and/or judicial appeal proceeds with no appeals being filed; or 
  
 (b) In the event of any appeals of the Director’s
Decision to the City of Seattle Hearing Examiner or any subsequent judicial appeal therefrom, the final resolution of any such appeals to Seller’s satisfaction; 
  
 but if (a) or (b) has not been satisfied within twelve (12) months after the Effective Date, then either party shall have the
right to terminate this Agreement, effective ten (10) days after written notice to the other Party unless (a) or (b) has been so satisfied prior to the end of such ten day period or Seller waives the protection of this contingency, in
which event Closing shall occur within ten (10) business days thereafter. If either Party terminates this Agreement pursuant to the preceding sentence, (i) Title Company shall return the Earnest Money Deposit to Purchaser,
(ii) Purchaser shall promptly return the Purchaser’s Information to Seller, (iii) the parties shall equally share any Cancellation Charges, (iv) Seller shall reimburse Purchaser for all out-of-pocket expenses incurred by
Purchaser in connection with its inspection of the Property pursuant to Article V, and (v) this Agreement shall terminate and be of no further force and effect except for the Termination Surviving Obligations. Purchaser shall provide Seller
with a statement of such out-of-pocket expenses within ten (10) days after Purchaser’s receipt of Seller’s notice of termination pursuant to this Section, and Seller shall reimburse Purchaser for such expenses within ten
(10) days after Seller’s receipt of Purchaser’s statement. 
  
 Seller shall promptly file, when completed, an application for a MUP for its proposed new Seattle headquarters building and, subject to the responses thereto and implications thereof for the other subsequent
applications and filings, diligently pursue all applications for permits and approvals required for the new Seattle headquarters building, and will, if deemed appropriate and effective, promptly and diligently contest any appeals described in
(b) above. 
  
 Seller agrees to provide to Purchaser a brief
report of the status of such applications and filings no less frequently than monthly after the Effective Date. 
  
 Section 10.3 Purchaser’s Closing Obligations. At least one (1) Business Day prior to the Closing Date (or at such times as
may otherwise be provided herein), Purchaser, at its sole cost and expense, will deliver the following items in escrow with the Title Company pursuant to Section 4.3, for delivery to Seller at Closing as provided herein: 
  
 (a) The Purchase Price, after all adjustments are made at
the Closing as herein provided, by Federal Reserve wire transfer of immediately available funds, in accordance with the timing and other requirements of Section 3.2; 
  
 (b) Two counterparts of the Blanket Conveyance, Bill of Sale, and Assignment and Assumption substantially in
the form attached hereto as Exhibit G (the “Blanket Conveyance”) duly executed by Purchaser; 
  

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 (c) Evidence reasonably satisfactory to Title Company that the person executing the
Closing documents on behalf of Purchaser has full right, power, and authority to do so; 
  
 (d) Two counterparts of the GAC Lease, duly executed by Purchaser; 
  
 (e) The Data Center Agreement, duly executed by Purchaser; 
  
 (f) The Microsoft Lease Termination Agreement duly executed
by Purchaser; 
  
 (g) A replacement bond for the
bond delivered by Seller to the City of Redmond in connection with the water treatment pond on the Property in form sufficient to allow the redelivery to Seller of its bond; and 
  
 (h) Such other documents as may be reasonably necessary or appropriate to effect the consummation of the
transactions which are the subject of this Agreement. 
  
 Section 10.4 Seller’s Closing Obligations. Seller, at its sole cost and expense, will deliver (y) items (a), (b), (c), (d), (e), (f), (g) and (h) in escrow with the Title Company pursuant to
Section 4.3, and (z) items (i), (j) and (k) to Purchaser at the Property: 
  
 (a) A special warranty deed in the form attached hereto as Exhibit H (the “Deed”), duly executed and
acknowledged by Seller conveying to Purchaser the Real Property and the Improvements subject only to the Permitted Exceptions, which Deed shall be delivered to Purchaser by the Title Company causing same to be recorded in the Official Records;

  
 (b) Two counterparts of the Blanket
Conveyance duly executed by Seller; 
  
 (c) Two
counterparts of the GAC Lease, duly executed by Seller; 
  
 (d) The Microsoft Lease Termination Agreement, duly executed by Seller; 
  
 (e) The Data Center Agreement, duly executed by Seller. 
  
 (f) Counterparts of the real estate excise tax affidavit; 
  
 (g) A certificate in the form attached hereto as
Exhibit I (“Certificate as to Foreign Status”) certifying that Seller is not a “foreign person” as defined in Section 1445 of the Code, as well as any form or other document required under
applicable laws to be executed by Seller in connection with any transfer tax applicable to the transaction contemplated by this Agreement; 
  
 (h) Such other documents as may be reasonably necessary or appropriate to effectuate the transaction which are the subject of this
Agreement; 
  
 (i) The Personal Property;

  
 (j) All original Licenses and Permits, and
Service Contracts in Seller’s Control; and 
  

 -25- 

 (k) All keys to the Improvements in Seller’s Control, identified by lock.

  
 Section 10.5 Prorations. 
  
 (a) Subject to the concurrent proration of amounts due under
terms of the Microsoft Lease, real property taxes and assessments; business improvement district charges; vault rent; water, sewer and utility charges; amounts payable under any Service Contracts or other agreements or documents; annual permits
and/or inspection fees (calculated on the basis of the period covered); and any other expenses of the operation and maintenance of the Property shall all be prorated as of 11:59 p.m. on the date immediately preceding the Closing Date (i.e.,
Purchaser is entitled to the income and responsible for the expenses of the day of Closing), on the basis of a 365-day year. Excluded from such pro ratable expenses are all financing costs. 
  
 Seller and Purchaser hereby agree that if any of the aforesaid prorations and
credits cannot be calculated accurately on the Closing Date or in the case of rents or other charges received from tenants, such amount have not been collected, then the same shall be calculated as soon as reasonably practicable after the Closing
Date or the date such amounts have been collected, and either party owing the other party a sum of money based on such subsequent proration(s) or credits shall pay said sum to the other party within thirty (30) days thereafter. Any amounts not
paid within such thirty (30) day period shall bear interest from the date actually received by the payor until paid at the greater of (i) the rate of ten percent (10%) per annum or (ii) the prime rate (or base rate) reported from
time to time in the “Money Rates” column or section of The Wall Street Journal as being the base rate on corporate loans at larger United States money center commercial banks plus two (2) percent. Upon request of either party,
the parties shall provide a detailed and accurate written statement signed by such party certifying as to the payments received by such party from tenants from and after Closing and to the manner in which such payments were applied, and shall make
their books and records available for inspection by the other party during ordinary business hours upon reasonable advance notice. 
  
 (b) The provisions of this Section 10.5 shall survive Closing. 
  
 Section 10.6 Delivery of Real Property. Upon completion of the Closing, Seller will deliver to Purchaser
possession of the Real Property and Improvements, subject to the Safeco Lease and the Permitted Exceptions. 
  
 Section 10.7 Costs of Title Company and Closing Costs. Purchaser will pay (i) all premiums and other costs for the Title Policy in
excess of the premium for a standard owners policy, including, but not limited to, any endorsements and any mortgagee policy of title insurance, (ii) one-half of the Title Company’s closing and escrow fees, (iii) the costs associated
with any updates to the Survey commissioned by Purchaser, and (iv) the recording fees required in connection with the transfer of the Property to Purchaser. Seller will pay (i) the premium for the Title Policy to the extent of the premium
for a standard coverage policy, (ii) one-half of the Title Company’s closing and escrow fees, and (iii) the real estate excise tax and the sales/use tax, if any, due with respect to the Personal Property. 
  

 -26- 

 Section 10.8 Microsoft Tenant Improvement Allowance. Any portion of the
“Allowance” described in Section 8.2 of the Microsoft Lease that has not been disbursed to the tenant under the Microsoft Lease shall be credited to Purchaser at the Closing. 
  
 Section 10.9 Post-Closing Delivery of Service Contract
Notice. Promptly following Closing, Seller will deliver to each of the providers under the Service Contracts being assumed by Purchaser, a letter acknowledging the sale of the Property to Purchaser and the assignment of the obligations under
the Service Contracts to Purchaser. This Section 10.9 shall survive Closing. 
  
 ARTICLE XI. 
 BROKERAGE 
  
 Section 11.1 Brokers. Seller has agreed to pay to Pacific Real Estate Partners, Inc. and Secured Capital
Corp. (“Brokers”) a real estate commission at Closing pursuant to a separate written agreement between Seller and Brokers (the “Broker Agreements”), and Purchaser has agreed to pay a real estate commission to
Trammell Crow Company (“TCC”) pursuant to a separate written agreement between Purchaser and TCC. Other than as stated in the first sentence of this Section 11.1, Purchaser and Seller represent to the other that no real
estate brokers, agents or finders’ fees or commissions are due or will be due or arise in conjunction with the execution of this Agreement or consummation of this transaction by reason of the acts of such party, and Purchaser and Seller will
indemnify and hereby agree to hold the other party harmless from any brokerage or finder’s fee or commission claimed by any person asserting his entitlement thereto at the alleged instigation of the indemnifying party for or on account of this
Agreement or the transactions contemplated hereby. The provisions of this Article XI will survive any Closing or termination of this Agreement. 
  
 ARTICLE XII. 
 CONFIDENTIALITY

  
 Section 12.1 Confidentiality. Seller
and Purchaser each expressly acknowledges and agrees that the transactions contemplated by this Agreement and the terms, conditions, and negotiations concerning the same will be held in the strictest confidence by each of them and will not be
disclosed by either of them except to their respective legal counsel, accountants, consultants, officers, partners, directors, investors, members and shareholders, and except and only to the extent that such disclosure may be necessary for their
respective performances hereunder or as otherwise required by applicable law. Purchaser further acknowledges and agrees that, unless and until the Closing occurs, all Confidential Information obtained by Purchaser in connection with the Property
will not be disclosed by Purchaser to any third persons other than the Permitted Outside Parties without the prior written consent of Seller. Nothing contained in this Article XII will preclude or limit either party to this Agreement
from disclosing or accessing any information otherwise deemed confidential under this Article XII in connection with that party’s enforcement of its rights following a disagreement hereunder, or in response to lawful process or
subpoena or other valid or enforceable order of a court of competent jurisdiction or any filings with any Authorities required by reason of the transactions provided for herein pursuant to an opinion of counsel. The provisions of this
Article XII will survive any termination of this Agreement. 
  

 -27- 

 ARTICLE XIII. 
 REMEDIES 
  
 Section 13.1 PURCHASER’S REMEDIES. IN THE EVENT THE CLOSING OF THE PURCHASE AND SALE TRANSACTION PROVIDED FOR HEREIN DOES NOT OCCUR AS HEREIN PROVIDED SOLELY BY REASON OF MATERIAL DEFAULT OF SELLER, PURCHASER MAY, AS
PURCHASER’S SOLE AND EXCLUSIVE REMEDY, ELECT BY NOTICE DELIVERED TO SELLER WITHIN TEN (10) BUSINESS DAYS FOLLOWING THE SCHEDULED CLOSING DATE, EITHER OF THE FOLLOWING: 
  
 (A) TERMINATE THIS AGREEMENT, IN WHICH EVENT: (I) PURCHASER WILL RECEIVE FROM THE TITLE COMPANY THE EARNEST MONEY
DEPOSIT; AND (II) SELLER AND PURCHASER WILL HAVE NO FURTHER RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT, EXCEPT WITH RESPECT TO THE TERMINATION SURVIVING OBLIGATIONS; OR 
  
 (B) PURSUE SPECIFIC PERFORMANCE OF THIS AGREEMENT SO LONG AS ANY ACTION OR PROCEEDING FOR SPECIFIC PERFORMANCE COMMENCED BY
PURCHASER AGAINST SELLER SHALL BE FILED WITHIN TEN (10) BUSINESS DAYS AFTER THE SCHEDULED CLOSING DATE; PROVIDED, HOWEVER, IF SPECIFIC PERFORMANCE IS NOT AN AVAILABLE REMEDY HEREUNDER, THEN PURCHASER’S SOLE REMEDY SHALL BE AS PROVIDED IN
SECTION 13.1(A) ABOVE, EXCEPT THAT IF PURCHASER IS UNABLE TO PURSUE SPECIFIC PERFORMANCE SOLELY BECAUSE OF SELLER’S SALE OF THE PROPERTY, THEN IN ADDITION TO RECOVERING FROM THE TITLE COMPANY THE EARNEST MONEY DEPOSIT, PURCHASER
SHALL ALSO BE ENTITLED TO RECOVER FROM SELLER CONTRACT DAMAGES EQUAL TO PURCHASER’S ACTUAL, REASONABLE LOSSES AS A RESULT THEREOF, SUBJECT TO SECTION 13.3 BELOW (BUT SUCH DAMAGES WITH RESPECT TO PURCHASER’S LOSS OF THE BENEFIT OF
ITS BARGAIN SHALL NOT EXCEED THE NET EXCESS AMOUNT, IF ANY, THAT SELLER WOULD HAVE REALIZED HAD SELLER SOLD THE PROPERTY FOR ITS FAIR MARKET VALUE ON THE CLOSING DATE TO A BONA FIDE THIRD PARTY PURCHASER OVER THE PURCHASE PRICE), WHEREUPON PURCHASER
AND SELLER SHALL HAVE NO FURTHER RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT EXCEPT WITH RESPECT TO THE TERMINATION SURVIVING OBLIGATIONS. 
  
 IN EITHER EVENT, PURCHASER HEREBY WAIVES ALL OTHER REMEDIES FOR A PRE-CLOSING DEFAULT BY SELLER, INCLUDING WITHOUT LIMITATION, ANY CLAIM AGAINST SELLER
FOR DAMAGES (OTHER THAN AS EXPRESSLY PROVIDED HEREINABOVE) OF ANY TYPE OR KIND INCLUDING, WITHOUT LIMITATION, PUNITIVE DAMAGES. FAILURE OF PURCHASER TO MAKE THE FOREGOING ELECTION WITHIN THE FOREGOING TEN (10) BUSINESS DAY PERIOD (OR IF
PURCHASER TIMELY ELECTED TO PURSUE SPECIFIC PERFORMANCE BUT FAILED TO FILE THE SPECIFIC PERFORMANCE ACTION WITHIN THE FOREGOING TEN (10) BUSINESS DAY PERIOD) SHALL BE DEEMED AN ELECTION BY PURCHASER TO PURSUE THE REMEDY IN
SECTION 13.1(A) ABOVE, WHEREUPON 

  

 -28- 

 
SELLER AND PURCHASER WILL HAVE NO FURTHER RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT, EXCEPT WITH RESPECT TO THE TERMINATION SURVIVING OBLIGATIONS.
NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED IN THIS SECTION 13.1 WILL LIMIT PURCHASER’S REMEDIES AT LAW, IN EQUITY OR AS HEREIN PROVIDED IN THE EVENT OF A BREACH BY SELLER OF ANY OF THE CLOSING SURVIVING OBLIGATIONS AFTER
CLOSING OR THE TERMINATION SURVIVING OBLIGATIONS AFTER TERMINATION. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, PURCHASER SHALL NOT SEEK A PERSONAL JUDGMENT AGAINST SELLER NOR ITS MEMBERS, MANAGERS, EMPLOYEES OR AGENTS, NOR THE SHAREHOLDERS,
OFFICERS, DIRECTORS, EMPLOYEES, INVESTMENT ADVISORS OR AGENTS OF ANY OF THEM FOR ANY CLAIMS UNDER OR RELATED TO THIS AGREEMENT OR THE PROPERTY. 
  

					
			
	 /s/ CRO
	 	 	 	 /s/ PRR

	 Purchaser’s Initials
	 	 	 	 Seller’s Initials

  
 Section 13.2
DEFAULT BY PURCHASER. IN THE EVENT THE CLOSING AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREIN DO NOT OCCUR AS PROVIDED HEREIN BY REASON OF A DEFAULT BY PURCHASER, PURCHASER AND SELLER AGREE THAT IT WOULD BE IMPRACTICAL AND
EXTREMELY DIFFICULT TO FIX THE DAMAGES WHICH SELLER MAY SUFFER AND THAT THE EARNEST MONEY DEPOSIT, EXCLUSIVE OF ANY INTEREST ACCRUED THEREON, IS A REASONABLE ESTIMATE OF SUCH DAMAGES. THE PARTIES THEREFORE AGREE THAT IN THE EVENT THAT THE CLOSING
AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREIN DO NOT OCCUR AS PROVIDED HEREIN SOLELY BY REASON OF ANY DEFAULT OF PURCHASER IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, THE EARNEST MONEY DEPOSIT, EXCLUSIVE OF ANY
INTEREST ACCRUED THEREON, WILL BE SELLER’S FULL, AGREED AND LIQUIDATED DAMAGES AND WILL BE SELLER’S SOLE AND EXCLUSIVE REMEDY (WHETHER AT LAW OR IN EQUITY) IN LIEU OF ANY OTHER DAMAGES, SPECIFIC PERFORMANCE, OR ANY OTHER REMEDY SELLER
MIGHT OTHERWISE HAVE AGAINST PURCHASER, WHEREUPON THIS AGREEMENT WILL TERMINATE AND SELLER AND PURCHASER WILL HAVE NO FURTHER RIGHTS OR OBLIGATIONS HEREUNDER, EXCEPT WITH RESPECT TO THE TERMINATION SURVIVING OBLIGATIONS. THIS SECTION SHALL NOT LIMIT
SELLER’S RIGHT TO RECOVER ITS ATTORNEYS’ FEES ATTRIBUTABLE TO EFFORTS TO OBTAIN THE EARNEST MONEY DEPOSIT OR TO ENFORCE PURCHASER’S INDEMNIFICATION OBLIGATIONS, NOR WAIVE OR AFFECT SELLER’S RIGHTS AND PURCHASER’S INDEMNITY
OBLIGATIONS UNDER OTHER SECTIONS OF THIS AGREEMENT (WHICH ARE NOT LIMITED BY THIS SECTION 13.2). THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY, BUT IS INTENDED TO CONSTITUTE LIQUIDATED
DAMAGES TO SELLER. NOTWITHSTANDING THE FOREGOING, NOTHING CONTAINED HEREIN WILL LIMIT SELLER’S REMEDIES AT LAW, IN EQUITY OR AS HEREIN PROVIDED IN THE EVENT OF A BREACH BY PURCHASER OF ANY OF THE TERMINATION SURVIVING OBLIGATIONS. SELLER AND
PURCHASER ACKNOWLEDGE THAT THEY HAVE 

  

 -29- 

 
READ AND UNDERSTAND THE PROVISIONS OF THIS SECTION 13.2, AND BY THEIR INITIALS IMMEDIATELY BELOW AGREE TO BE BOUND BY ITS TERMS. 
  

					
			
	 /s/ CRO
	 	 	 	 /s/ PRR

	 Purchaser’s Initials
	 	 	 	 Seller’s Initials

  
 Section 13.3
Consequential and Punitive Damages. Each of Seller and Purchaser waive any right to sue the other for consequential, incidental or punitive damages for matters arising under this Agreement. This Section 13.3 shall survive Closing or
termination of this Agreement. 
  
 ARTICLE XIV.

 NOTICES 
  
 Section 14.1 Notices. All notices or other communications required or permitted hereunder will be in writing, and will be given by
(a) personal delivery, (b) professional expedited delivery service with proof of delivery, (c) United States mail, postage prepaid, registered or certified mail, return receipt requested, (d) prepaid telegram or telex (providing
that such telegram or telex is confirmed by the sender by expedited delivery service or by mail in the manner previously described), or (e) by facsimile transmission, sent to the intended addressee at the address set forth below, or to such
other address or to the attention of such other person as the addressee will have designated by written notice sent in accordance herewith and will be deemed to have been given either at the time of personal delivery, or, in the case of expedited
delivery service or mail, as of the date of first attempted delivery at the address or in the manner provided herein, or, in the case of telegram, telex or facsimile transmission, upon receipt. Unless changed in accordance with the preceding
sentence, the addresses for notices given pursuant to this Agreement will be as follows: 
  

			
	 To Seller:
	  	 General America Corporation
 4333 Brooklyn Ave.
NE
 Seattle, WA 98189
 Attn: Corporate Real Estate
 Fax: (206) 545-5477

		
	 And to:
	  	 General America Corporation
 4333 Brooklyn Ave.
NE
 Seattle, WA 98189
 Attn: General Counsel
 Fax: (206) 545-5559

		
	 with copy to:
	  	 Alston, Courtnage & Bassetti LLP
 Attn:
Michael S. Courtnage
 1000 Second Avenue, Suite 3900
 Seattle, WA
98104-1045
 Fax: (206) 623-1752

  

 -30- 

			
	 To Purchaser:
	  	 Microsoft Corporation
 One Microsoft Way
 Redmond, WA 98052
 Attn: Chris Owen, General Manager, Real Estate &
Facilities
 Fax: (425) 936-7329

		
	 with copy to:
	  	 Microsoft Corporation
 Law and Corporate
Affairs
 One Microsoft Way, Building 8
 Redmond, WA
98052-6399
 Attn: Timothy R. Osborn, Senior Attorney
 Fax:
(425) 936-7329

		
	 To Title Company:
	  	 First American Title Insurance Company
 2101 4th
Avenue, Suite 800
 Seattle, WA 98121
 Title Order
No.: NCS-202518-WA1
 Escrow No.: 202518
 Attn: Mike
Cooper
 Fax: (206) 615-3000

  
 ARTICLE XV.

 ASSIGNMENT AND BINDING EFFECT 
  
 Section 15.1 Assignment; Binding Effect. Neither party will have the right to assign this Agreement without the non-assigning
party’s prior written consent, which consent may be withheld in such non-assigning party’s sole and absolute discretion. Any attempted assignment or delegation in violation of this Section 15.1 without the prior written consent
of the other party hereto shall be void, and the purported assignee shall not have any rights hereunder. Notwithstanding the foregoing, Purchaser and Seller may each assign and delegate its rights and obligations under this Agreement to an Affiliate
of such assigning party without the consent of the non-assigning party, provided that (i) as of the effective date of such assignment, such Affiliate assignee expressly assumes, for the benefit of the non-assigning party, all of the assigning
party’s obligations under this Agreement, and (ii) any such assignment shall not relieve the assigning party of its obligations hereunder. Subject to the foregoing, this Agreement will be binding upon and inure to the benefit of Seller and
Purchaser and their respective successors and permitted assigns, and no other party will be conferred any rights by virtue of this Agreement or be entitled to enforce any of the provisions hereof. Whenever a reference is made in this Agreement to
Seller or Purchaser, such reference will include the successors and permitted assigns of such party under this Agreement. 
  

 -31- 

 ARTICLE XVI. 
 CLAIMS PERIOD 
  
 Section 16.1 Claims Period. Notwithstanding any provision to the contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in connection herewith, the maximum aggregate liability of
Seller under this Agreement and any and all documents executed pursuant hereto or in connection herewith (including, without limitation, the breach of any representations and warranties of Seller contained in such documents) for which a claim is
timely made by Purchaser shall not exceed three percent of the final Purchase Price. Purchaser will not have any right to bring any action against Seller as a result of any untruth or inaccuracy of such representations and warranties, or any such
breach, unless and until the aggregate amount of all liability and losses arising out of any such untruth or inaccuracy, or any such breach, exceeds Fifty Thousand Dollars ($50,000). Any action, suit or proceeding brought by Purchaser against Seller
arising from or related to this Agreement must be commenced and served, if at all, on or before the date which is nine (9) months after the date scheduled for the Closing Date. This Section 16.1 shall survive the Closing.

  
 ARTICLE XVII. 
 MISCELLANEOUS 
  
 Section 17.1 Waivers. No waiver of any breach of any covenant or provisions contained herein will be deemed a waiver of any preceding
or succeeding breach thereof, or of any other covenant or provision contained herein. No extension of time for performance of any obligation or act will be deemed an extension of the time for performance of any other obligation or act. 

 
 Section 17.2 Recovery of Certain Fees. In the event a
party hereto files any action or suit against another party hereto relating to or arising out of this Agreement, the transaction described herein, or the enforcement hereof, then in that event the prevailing party will be entitled to have and
recover of and from the other party all reasonable attorneys’ fees and costs resulting therefrom. For purposes of this Agreement, the term “attorneys’ fees” or “attorneys’ fees and costs” shall mean
the fees and expenses of counsel to the parties hereto, which may include printing, photostating, duplicating and other expenses, air freight charges, and fees billed for law clerks, paralegals and other persons not admitted to the bar but
performing services under the supervision of an attorney, and the costs and fees incurred in connection with the enforcement or collection of any judgment obtained in any such proceeding. The provisions of this Section 17.2 shall survive
the entry of any judgment, and shall not merge, or be deemed to have merged, into any judgment. 
  
 Section 17.3 Time of Essence. Seller and Purchaser hereby acknowledge and agree that time is strictly of the essence with respect to
each and every term, condition, obligation and provision hereof. 
  
 Section 17.4 Construction. Headings at the beginning of each article and section are solely for the convenience of the parties and are not a part of this Agreement. Whenever required by the context of this Agreement, the
singular will include the plural and the masculine will include the feminine and vice versa. This Agreement will not be construed as if it had been 

  

 -32- 

 
prepared by one of the parties, but rather as if both parties had prepared the same. All exhibits and schedules referred to in this Agreement are attached
and incorporated by this reference, and any capitalized term used in any exhibit or schedule which is not defined in such exhibit or schedule will have the meaning attributable to such term in the body of this Agreement. In the event the date on
which Purchaser or Seller is required to take any action under the terms of this Agreement is not a Business Day, the action will be taken on the next succeeding Business Day. 
  
 Section 17.5. Counterparts. To facilitate execution of this Agreement, this Agreement may be executed in
multiple counterparts, each of which, when assembled to include an original signature for each party contemplated to sign this Agreement, will constitute a complete and fully executed original. All such fully executed original counterparts will
collectively constitute a single agreement. 
  
 Section 17.6 Severability. If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any rule of law or public policy, all of the other conditions and provisions of this
Agreement will nevertheless remain in full force and effect, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any adverse manner to either party. Upon such determination that any term or other
provision is invalid, illegal, or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement so as to reflect the original intent of the parties as closely as possible in an acceptable manner to the end
that the transactions contemplated hereby are fulfilled to the extent possible. 
  
 Section 17.7 Entire Agreement. This Agreement is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof, and supersedes all prior
understandings with respect thereto. This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written instrument, signed by the party to be charged or by its agent duly
authorized in writing, or as otherwise expressly permitted herein. 
  
 Section 17.8 Governing Law. This Agreement and the rights and obligations of the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of Washington, exclusive of the
conflict of laws principles of such state. The parties consent to jurisdiction of the state courts located in King County, Washington in the event of any litigation arising out of this Agreement. 
  
 Section 17.9 Recording. The parties hereto agree that this
Agreement will not be recorded. However, at Purchaser’s option, a Memorandum of this Agreement will be recorded in King County, Washington, so long as Seller has the right to record a termination of such memorandum, if this Agreement is
terminated, and if Purchaser fails to file a termination of the memorandum within ten (10) days of termination of this Agreement. 
  
 Section 17.10 Further Actions. The parties agree to execute such instructions to the Title Company and such other instruments and to do
such further acts as may be reasonably necessary to carry out the provisions of this Agreement. 
  

 -33- 

 Section 17.11 No Other Inducements. The making, execution and delivery of this
Agreement by the parties hereto has been induced by no representations, statements, warranties or agreements other than those expressly set forth herein. 
  
 Section 17.12 Exhibits. Exhibits A through K, inclusive, are incorporated herein by reference.

  
 Section 17.13 No Partnership.
Notwithstanding anything to the contrary contained herein, this Agreement shall not be deemed or construed to make the parties hereto partners or joint venturers, it being the intention of the parties to merely create the relationship of Seller and
Purchaser with respect to the Property to be conveyed as contemplated hereby. 
  
 Section 17.14 Limitations on Benefits. It is the explicit intention of Purchaser and Seller that no person or entity other than Purchaser and Seller and their permitted successors and assigns is or
shall be entitled to bring any action to enforce any provision of this Agreement against any of the parties hereto, and the covenants, undertakings and agreements set forth in this Agreement shall be solely for the benefit of, and shall be
enforceable only by, Purchaser and Seller or their respective successors and assigns as permitted hereunder. Nothing contained in this Agreement shall under any circumstances whatsoever be deemed or construed, or be interpreted, as making any third
party (including, without limitation, Broker) a beneficiary of any term or provision of this Agreement or any instrument or document delivered pursuant hereto, and Purchaser and Seller expressly reject any such intent, construction or interpretation
of this Agreement. 
  
 IN WITNESS WHEREOF, Seller and Purchaser
have respectively executed this Agreement to be effective as of the date first above written. 
  

			
	 SELLER:

	
	GENERAL AMERICA CORPORATION, a Washington corporation
		
	 By
	 	 /s/ Paula Rosput Reynolds

	 Its
	 	 President and Chief Executive Officer

	
	 PURCHASER:

	
	MICROSOFT CORPORATION, a
Washington corporation
		
	 By
	 	 /s/ Chris R. Owens

	 Its
	 	 General Manager, Real Estate & Facilities

  

 -34-

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